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Vehicle
Fraud and Unlawful Sales and Financing Scams |
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Automobile fraud claims such as odometer tampering, auto dealer financing scams and
vehicle history misrepresentations are outlawed by state and federal consumer protection
laws. If you suspect your car dealer or other provider of consumer products have
engaged in ANY of the following acts or practices, contact our offices immediately to preserve your legal rights.
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Odometer Tampering or Roll Back – check for maintenance and oil change/lube stickers and/or receipts that could contain mileage information greater than odometer mileage. You
MUST be provided with a written statement of the actual mileage disclosed on the odometer at the time of purchase, if you are not provided this at time of purchase, contact us immediately.
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Failure to Disclose Prior Accident or Vehicle Damage History - Used vehicles have an unknown history of ownership. You should always ask the salesperson questions about the vehicle’s history, which includes prior accident or damage history. If they tell you the vehicle is damage free and you determine otherwise after purchase conduct our offices immediately because their conduct is considered fraudulent. Another option is to obtain a used car history report from www.carfax.com before making the purchase.
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Spot Delivery Scams – the consumer is allowed to leave
the dealership with vehicle after signing the contract but before financing
has been approved. If dealership requires customer to return and sign
a new agreement altering the terms of original agreement, dealer must
disclose to the consumer that the agreement can be rescinded, with return
of down payment and/or trade-in vehicle.
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Rewritten/Backdating of Sales Contracts - Often a consumer will not initially qualify for financing upon the terms on the first contract. The customer may be required to increase a down payment, incur a higher APR, etc. in order to qualify for a loan. The dealership requires the customer to return and sign a second contract with the different terms but backdates the second contract with the date of the first contract. This is unlawful because the customer is being charged interest for a time period in which the contract is not yet in effect. Further, many consumers are not told that they do not have to sign a second contract, instead they can choose to cancel the contract and return the new vehicle and have the down payment and trade in vehicle refunded. This is fraudulent and you should contact us immediately to determine your legal rights.
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Changes to the Advertised Vehicle Price - Most state laws provide that a dealership cannot sell a vehicle for more than the advertised price (even if the customer is unaware of the advertised price.) What is an advertisement is broadly defined to include window stickers as well as the usual media ads. If a dealer inflates the cash price of vehicle, this would result in a higher than the advertised price. A higher price affects the amount the customer is charged for taxes, licensing & registration fees and finance charges. This is fraudulent.
Collision Repairs and Replacement Parts – Many collision service centers are repairing damaged vehicles with used replacement parts but are charging consumers the cost for new parts. This is unlawful. Even more outrageous, many collision shops are repairing collision damage by “pounding out” the damages and using a “bondo” spackling agent but instead are charging the customer for new parts and materials. This is not only unlawful, but it negatively affects the vehicle’s warranty agreement with the manufacturer and decreases the vehicle’s resale value. Contact us immediately if you suspect you have been a victim of these unlawful business practices.
Click HERE to contact us.
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