Car Fraud

Lemon Law Attorney Serving Los Angeles, Riverside, Ventura and San Bernardino Counties and Other Areas in California

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In an example of the type of protection California’s laws attempt to provide consumers from unfair and deceptive business practices, a Santa Cruz County Superior Court judge ruled that U-Haul engaged in “unlawful and fraudulent business practices” when they advised agents to book reservations of trucks and trailers without knowing if it will have the equipment available when and where customers need it.

Purchasing a new or used vehicle is often an exciting and enjoyable experience that many consumers look forward to. However, two men in West Virginia are far from happy. According to a wvrecord.com article, two men who signed a motor vehicle purchase contract with American Suzuki Motor Corporation, Wells Fargo Auto Finance and Logan Chrysler-Dodge-Jeep-Suzuki for a 2008 Suzuki Forenza, are now suing these companies and a car dealership for multiple infractions, some of which include fraud, misrepresentation, unfair and deceptive practices, and violation of lemon law.

WIVB News reports that two men from Niagara County were charged recently for their alleged involvement in a car dealership scam in Pendleton, New York. The men were allegedly selling customers fake extended warranties for their motor vehicles.

According to the article, the two men were charged by New York state police with second-degree schemes to defraud and falsifying business records, and fourth-degree larceny. The men were charged after an investigation was conducted by the state Insurance Fraud Bureau along with the Niagara County DA.

After continued controversy and debate, new legislation has been passed in California to regulate used car dealers commonly known as Buy Here Pay Here lots. As reported by The Los Angeles Times, Governor Jerry Brown signed two bills into law on September 29th dictating the use of warranties and prices by these dealers.

While there are many ways in which a used car dealer can commit fraud, a new form of fraud, known as title washing (hiding past damage), is beginning to emerge in cases across the United States.

Title washing can be done in two ways. First, dealers use vehicle documentation laws from other states to hide information such as flood damage and salvaged titles. By hiding this information, dealers can trick consumers into believing the car is in much better shape than it truly is.