Fighting for Victims of Fraud In Auto Financing
A car is one of the most expensive consumer items a person will purchase, aside from a home. And it can be both an exciting and intimidating experience. The greatest challenge for most consumers is setting up affordable financing. And when purchasing a used car, there is the added challenge of knowing whether you can trust the condition of the vehicle as advertised. Problems can arise in the form of deception or fraud, where the salesperson or vendor misinforms, tricks, or confuses the consumer regarding the condition of the car, the amenities included, or the price the consumer will be paying.
Fraud in Auto Financing:
Fraudulent overcharges and bogus fees are particularly common in financed transactions. Every consumer should know that they are entitled to a complete and clear explanation of every cost associated with the purchase and financing of their vehicle. Federal Consumer protection law requires that a dealership provide a contract at the time of purchase that spells out in detail the total cost of the vehicle and the rate and amount of interest, among other things. Many people, however, feel pressured and rushed during the process and might not ask important questions. And dealership representatives might offer a barrage of information and numbers that leave a consumer confused about just what they are paying for the vehicle.
The Truth in Lending Act, a federal statute, provides powerful protections designed to ensure accurate disclosure of all costs, fees, and interest in financed transactions, including auto purchases. Using this critically important consumer statute, Kakalec & Schlanger, LLP regularly holds auto dealers and auto finance companies accountable for misconduct. Other statutes are available in cases of warranty fraud, odometer tampering and illegal repossessions.
Fraud Regarding Vehicle Condition or History (e.g. the “certified pre-owned vehicle”):
Another type of fraud our consumer protection lawyers often see is when dealerships misrepresent the true condition and accident history of a vehicle. As a result a consumer might end up buying a car that is worth much less than they were led to believe. This type of fraud can occur even when the vehicle is sold as “certified pre-owned”. Again, there are important legal protections in these situations that many people, even many lawyers, are not aware of.
Why hire Kakalec & Schlanger, LLP?
Auto fraud is a core part of our practice.
We regularly pursue auto fraud claims on behalf of consumers against dealerships, banks, and finance and warranty companies, providing skilled, zealous representation and achieving outstanding results both in federal court and before arbitrators.
To read about our pending auto fraud litigations, click here.
If you feel that you have been taken advantage of in the process of purchasing a vehicle, we would be happy to speak with you regarding your case.