In an effort to reduce fraud, California residents may start to pay more in document fees when purchasing a motor vehicle, reports The Sacramento Bee.
According to the article, the new legislation is receiving support from both Democrats and Republicans. Assembly Bill 1215 would permit car dealers to increase their maximum fee for document processing from $55 to $80 starting in July of 2012. The fee increase applies to both new and used vehicles.
The good news for consumers is that the bill would also require dealers to obtain a report from the National Motor Vehicle Title Information System when selling a used vehicle. Further, it would be mandatory for dealers to post a sticker on the vehicle informing the consumer that the vehicle had been salvaged or junked, or branded as rebuilt, non-repairable, or flooded.
According to the president of the Consumers for Auto Reliability and Safety (CARS), the legislation is the first of its kind in the U.S. The goal is to discourage car fraud. Often, consumers pay much more than a vehicle is worth because they are unaware of its history. The legislation would also require dealers to electronically register vehicles through the Department of Motor Vehicles (DMV) to reduce the lengthy registration process. Consumers would also be required to obtain and install new license plates on the vehicle within 90 days of purchase.
If you believe you have been a victim of used car fraud in California or other deceptive and illegal business practices, lawyer Howard D. Silver may be able to help you. As an attorney who has spent over 20 years protecting the rights of wronged consumers, Mr. Silver can launch a thorough investigation into the purchase of your vehicle to determine whether you have a valid claim. Schedule your free consultation with Mr. Silver today by calling (855) 341-2611.