Vehicle Sales and Loan Fraud

Central California Loan Fraud Attorney

Many dealers engage in deceptive and unsavory practices in connection with the purchase and financing of motor vehicles. The area of automotive fraud is very broad and encompasses numerous federal and state consumer protection laws. If you believe you have been a victim of auto or loan fraud, contact William M. Krieg & Associates for a free consultation to discuss your rights.

The most common forms of auto fraud include the following:

• Some dealers falsify the information in the purchasing contract about your income, work history, down payment, loan interest rates, or trade-in. As a helpful tip, always read over the documents you sign to verify the accuracy of the information.
• Some dealers overcharge by charging you for more than the advertised price of the vehicle or charging for items you did not agree to buy, such as extended service agreements, paint and fabric protection, GAP insurance, Tire Guard, or alarms already on the vehicle.
• The dealer may not tell you that a vehicle is defective or misrepresent its history. The vehicle may have been previously wrecked, returned as a lemon, been a rental, or in a flood, for instance. The dealer is required to perform a safety inspection before selling the vehicle and in many instances knowingly sells the consumer a vehicle without disclosing the above problems.
• The dealer may tell you that the lender won't allow an extended service agreement, or that you must have one to qualify for the loan. The dealer may tell you that you have to sign another contract for some reason or other.
• The dealer may give you documents in English only, although you do not speak English and negotiated for the vehicle in another language. If you speak Spanish, Tagalog, Vietnamese, or Chinese, the dealer must give you completed documents in your own language.
• You may be sold a vehicle with a rolled back odometer or an odometer that has exceeded its mechanical limits. The dealer is required by federal law to disclose the proper mileage.

How to Protect Yourself from Vehicle Loan and Sales Fraud

Before you sign anything, have the vehicle inspected by a qualified mechanic. Run a Carfax to find out about the vehicle history. But be aware that a Carfax may not disclose wreck damage, due to the nature in which Carfax receives its information. However, Carfax will tell you if the vehicle was a rental, a previous lemon, has an accurate odometer reading, and whether it came from out of state, which could mean an altered title.

Contact William M. Krieg & Associates for a free consultation with an experienced vehicle sales and loan fraud protection lawyer.