Automobile fraud encompassesmany illegal practices, as well as automobile dealership scams, thatoften cause financial damage to clients. While there is an administrative proceeding available under what is commonly known as Lemon Laws, consumers also have rights that they can assert in court. Many consumers think that Lemon Laws will cover a used vehicle. Unfortunately, once a car is sold more than once, it no longer qualifies under the Lemon Laws. There is still recourse available under warranty provisions, and a consumer might still bring a lawsuit for breach of warranty. In other words, there are legal remedies available for individuals stuck spending an exorbitant amount of money making repairs to a vehicle that has undisclosed damage. Whether the problems are associated with new vehicle or used vehicle, sales, warranty as well as financing process seem to be quite confusing for the customers.
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It is wrong to think that there are hardly any rights that exist against unfair and deceptive trade practices. Often the customers complain that they askedthe right questions, but in the end they do not get clear answers from the car dealer or the finance manager. Plus, there are instances where automobile dealers misrepresent the true features of a car that may often lead to cancellation of agreement. The Texas Deceptive Trade Practices Act is a consumer rights statute that exists for the protection of consumers in situations involving scamming car dealers. Often consumers are not aware of them at all. Here lies the importance of consulting with an experienced auto fraud attorney who can offer valuable suggestions to consumers and try to help them to handle auto fraud case in the best possible way.
Frauds related to used vehicle
Auto fraud related to the purchase or sale of used vehicles is rampant. Used car dealers and not obligated to run a thorough check of every feature of a car they are selling. At the same token, a car dealer cannot misrepresent the condition of a vehicle, especially if it has not undergone a particular inspection. Often times, consumers are asked to sign a document that indicates they are purchasing the vehicle “as-is” without any particular warranty. While an “as-is” purchase cancels many rights to sue, it does not allow the dealer to make misrepresentations to induce a customer into buying the car. For a small number of items, the dealer may be liable to the consumer for damages, whether they inspected the vehicle and the car’s title history, or not. One example involves odometer roll backs. Consumers have valuable rights under the Federal Odometer Act to recover damages, including attorney fees, if they discover that the odometer reading on their vehicle is inaccurate. Odometer rollbacks may impact other areas of the consumer’s rights. Often warranty related fraud is reported where a vehicle dealer tells a potential customer that a car is still covered under warranty, when in reality the coverage has expired a long time back.
Frauds associated with new cars
When it comes to the sale of new cars, and often in the sale of used cars, finance agreements can get complicated. Auto dealers are required to comply with particular state and federal laws including the Texas Deceptive Trade Practices Act and the Federal Truth In Lending Act, commonly known as the DTPA and TILA, respectively. For consumers who have a problems with credit, car dealers may prey on the consumer’s desire to get into a more expensive car than the consumer can actually afford. It is often illegal for a dealership to enter into a contract with financing, and then to ask the consumer to come back to sign yet another contract, with new terms – maybe a higher interest rate, or a larger down payment. If you are in the process of buying a vehicle and you feel as though the bargaining terms became extremely one-sided, in favor of the dealership at your expense, you should consult with an attorney to determine your rights.
Repossessions
It is not uncommon for car owners to fall on hard times. Many people think that by voluntarily returning a car to the dealership or to the finance company, they can avoid the harsh ramifications of repossession. Whether you return your car voluntarily, or if the finance company hires a company to repossess your vehicle, you still have rights related to that repo. Under Texas law, the finance company is obligated to send you written notice before they sell your vehicle. Once the car is sold, the finance company is also obligated to send the consumer a written accounting of the amount that might be owed, also known as the deficiency. If your vehicle has been repossessed, you should consult with an attorney.