New Legislation to Protect Used-Car Buyers in California

Serving Los Angeles, Riverside, Ventura, San Bernardino Counties & Nearby Areas of California

In addition to the Consumer Legal Remedies Act of California, which protects consumers by prohibiting used-car dealers from using deceptive and unfair business practices to sell their cars, new legislation (Senate Bill 95 and Assembly Bill 647) advocated by criminal justice officials and consumer protection groups will go into effect in January 2010.

Senate Bill 95, also referred to as the California Car Buyers Protection Act, will require auto dealers to have outstanding liens (legal claims on a vehicle as security for a debt) completely paid off before trading or selling a used car. Additionally, Assembly Bill 647 gives consumers access to a national database containing title, theft and other important vehicle information.

One State Senator commented that Senate Bill 95 will assist consumers who are already battling the tough economy. In fact, some car dealers have gone out of business due to the economy, leaving consumers with unpaid liens on vehicles that they traded in. Based on the article, the president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety stated that SB 95 “will help law enforcement agencies crack down on violations before hundreds of car buyers have their credit ruined at a single dealership.”

The author of Assembly Bill 647 stated that the bill would give consumers access to the National Motor Vehicle Title Information System, or NMVTIS, and oblige the State Department of Motor Vehicles to comply with federal law. The availability of NMVTIS, an electronic vehicle-history database run by the U.S. Department of Justice, to the public will allow states, law enforcement agencies, and consumers the chance to exchange information and verify vehicle titles and determine if an automobile has been salvaged, flooded, stolen, or junked. The assemblywoman emphasized the significance of this new Bill stating, "As more people look to buy used cars during this financial downturn, this legislation gives California car buyers access to life-saving data at a competitive price.”

At the Law Offices of Howard D. Silver, our California used car fraud attorneys are pleased with the new legislation, especially since the Justice Department speculates that once all states are fully participating in the database, it should help save U.S. citizens between $4 billion and $11.3 billion annually by helping restrict salvage fraud, vehicle theft, odometer fraud, and other related crimes.

If you believe that you have been a victim to used car fraud or any other kind of deceptive or unfair business practice, please contact the Law Offices of Howard D. Silver. Call (855) 341-2611 today for a free consultation.

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Posted Date: 
Wednesday, February 18, 2015