Unfair trade practice laws can help in ensuring that consumers are protected from being victimized by automobile dealer fraud, used vehicles with lemon or salvage titles, and odometer rollback. With odometer rollback, the mileage might be altered on the odometer to make it seem as though the vehicle has less wear and tear on it than it does, which is fraudulent. People should be able to know exactly what they are paying for and how much ‘wear and tear’ is on a vehicle.
Automobile dealers and financing companies might also fraudulently misrepresent the Annual Percentage Rate of the vehicle at the time of sale, so that the consumer ends up paying more than they should, in violation of the federal Truth In Lending Act, which can entitle you to statutory damages, and your attorney’s fees and costs to be paid. In some states, it can also entitle you to not have to pay any interest on the vehicle.
Yo-yo scams also victimize consumers. Dealers permit consumers with weak credit to take possession of a vehicle before financing has been completed on the vehicle, and in many cases a short time later the consumer is back at the dealership due to the financing having faltered. The consumer is then told that he/she has to pay fees and higher interest rates and sometimes a larger down payment than what they were told before in order to retain the vehicle.
These yo-yo scams are sometimes an unfortunate result of the process of spot delivery, where vehicles are sold ‘on the spot’ to consumers with weak credit, at night and on weekends when banks and lenders are unable to approve loan applications. When the applications are declined and the vehicle has to be returned, consumers often are very embarrassed. However, it is to no fault of their own. The fault lies with the dealership. The consumer then feels more need to purchase a vehicle that they would not have otherwise to retain some sense of pride and the dealers know this, which is why they use spot deliveries to consumers with weak credit.
A state might have a law requiring that any down payment or trade-in under the purchase and sale contract be returned to the vehicle, as some dealerships do not wish to return the trade-in amount and only want to keep said ‘credit’ at the dealership to force the consumer to get another vehicle with them, while others might not return any cash down payment that the consumer paid.
Depending on the state, some of the above conduct by dealerships – or all of it – might be illegal. Please contact our Firm as soon as possible for a quick and free consultation in regards to Auto Fraud. We would love to assist you and determine whether you are entitled to monetary damages.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_column_text el_class=”contactsidebar”]