Car theft is a major issue. The Federal Trade Commission aka FTC estimates that just 10% of vehicle fraud victims report their experiences. Consumers can lose a lot of money due to auto fraud, and dealers and sellers can be sued. According to lawyer Nathan DeLadurantey, auto fraud may be illegal and subject to criminal prosecution by law authorities.
Automotive Fraud Includes Overpricing And Misrepresenting Vehicles
Exaggerated prices and misrepresenting car conditions are classic symptoms of automobile fraud. If you’re buying a used car, study the local market value of similar autos. Before buying, acquire an independent vehicle history report.
Fraudulent sellers often do not want to provide this information because they do not want potential buyers to know about problems with their vehicles’ histories or previous ownerships; therefore, if someone refuses this information or gives excuses why it cannot be provided.
Consumers May Sue Dealers Or Sellers For Auto Fraud
Auto fraud can cause financial hardship for consumers and lead to legal action against the dealer or seller. For example, a consumer may be required to pay thousands of dollars in repairs after purchasing a defective vehicle. In this situation, the consumer rights lawyer Nathan DeLadurantey can help recover their money by:
• Investigating car sales fraud.
• Helping regulators file paperwork.
Law Enforcement May Prosecute Auto Fraud
Law enforcement may prosecute auto fraud in some instances. Thus, to report a crime or retrieve your money, you must contact your state’s police or district attorney’s office.
These agencies may not help private seller-defrauded consumers. They can prosecute fraud against firms or other entities they have a relationship with. If you think you were cheated by a private car seller but don’t know where they live or work, call your state’s attorney general, as most jurisdictions have one who handles consumer protection problems.
Credit Scores Drop Due to Auto Fraud
Auto fraud can also damage a consumer’s credit score and make it more difficult to obtain financing for a new car in the future. If you have been victimized by auto fraud, your credit score may be damaged as well. A low credit score can make it more difficult for you to secure financing when purchasing a new car or home, among other things.