Dealer Fraud

Friday, July 21, 2017

Ugly Accusations Against Honda in Defective Starters Lawsuit

Q: Is your Honda Accord or Crosstour not starting?

Sometimes it takes a New Jersey Consumer Fraud Act lawsuit to get an auto manufacturer’s attention regarding a defective product or system. Hey there, Honda!

At least that’s what a number of Honda Accord and Crosstour owners who joined together in a proposed class-action lawsuit against the automaker claim was necessary after their individual complaints regarding defective starters were not satisfactorily resolved.

The lawsuit also reportedly accuses Honda of Read more . . .

Wednesday, March 15, 2017

Navigating the Used Car Sales Minefield

Q: What are the risks of knowingly buying a used car with an open safety recall based on the dealer’s promise to repair it when the replacement parts become available?

Historically, buying a used car was never a particularly pleasant experience. Many Americans felt distrustful of aggressive salesmen and worried about overpaying. Plus they wondered if they were buying a shiny “junker” that would break down two blocks from the sales lot.

Read more . . .

Saturday, March 11, 2017

When You Have to Watch the Watchdog

Q:  Can used car buyers assume that certified preowned means recall-free?

Dealer fraud, which is prohibited in New Jersey and Pennsylvania, can happen in certified vehicle misrepresentations as well as the following instances where dealers misrepresent the status or history of a vehicle:

  • Car Misrepresentations
  • Prior Accidents
  • “Yo-yo" Financing
  • Backdating
  • Negative Equity Nondisclosure
  • Odometer Fraud
  • Failure to Provide Paperwork

If you've been following the “certified preowned-open recall” issue in the news or in our recent blog post you’ll know that a recent Federal Trade Commission (“FTC”) ruling affected the advertising practices of General Motors and two other large used car dealers.
Read more . . .

Friday, February 17, 2017

Pennsylvania Statewide Auto Dealer Investigation Uncovers Fraud

Q: How does the law protect car buyers and what can buyers do to protect themselves from dealer fraud?

There's a reason used car salesman have historically had a less than favorable reputation. It's called dealer fraud.


Read more . . .

Sunday, February 12, 2017

Russian Citizens Claim $2M Fraud by New Jersey Dealership

Q: What action can I take against a dealer who takes my money but fails to deliver the vehicle?

Although exile to Siberia is not an option, a consumer fraud attorney can help people defrauded by unscrupulous auto dealerships.

Recently, a Pennsylvania man operating a dealership in New Jersey was accused of scamming a slew of Russian citizens in a $2 million fraud case.

Reportedly, the dealer, Global Auto Group, in Elizabeth New Jersey, allegedly advertised autos online below market value and then failed to deliver them to Russian consumers who had wired the purchase price payment for the vehicles.

Read more . . .

Sunday, January 22, 2017

Used Car Buyers –Not Dealers--are Responsible to Check and Repair Safety Recalls

Q: Is there dealer fraud or false advertising in the used car industry?

This is the kind of thing that gives used car salesman that stereotypical shyster reputation.

Is it right that large used car dealerships can claim in advertising that their ‘certified’ preowned vehicles have been "careful carefully inspected and repaired" even when there could be outstanding unrepaired safety recalls for the vehicles?

Well that's with the Federal Trade Commission (FTC) recently decided was acceptable advertising in a settlement with General Motors (GM) and two other large used car dealers. Not only do the used car dealers not have to make recall repairs, but they don't even have to specify any recall problems.

Read more . . .

Saturday, May 14, 2016

Did You Get Scammed by a Used Car Salesman?

There is a reason why “used car salesmen” frequently tops the list of most hated professions. Although there are some honest dealers out there, many used car salespeople offer deals that turn out to be no good. For example, a dealer up in Lodi, NJ was recently busted a dealer for selling cars with rolled back odometers and undisclosed accidents. That same dealer was also hiding the details of their financing and fees in fine print that was nearly impossible to read, or not disclosing this information at all! Unfortunately, these illegal sales gimmicks are all too common.


Did you buy a used car the dealer assured you was in great shape only to discover it needs major repairs? Did the check engine light turn on the minute you pulled out of the dealer’s lot? If the car you bought is not in as good of shape as the seller promised, you may be able to return it or get the seller to pay for necessary repairs.

Read more . . .

Monday, August 3, 2015

NJ Audi & VW Dealerships Accused of Lemon Law Violations

What kind of activity by a dealership could give rise to a New Jersey Lemon Law violation? 

The New Jersey Lemon Law is designed to protect consumers from the unnecessary and inflated costs of constant vehicle repairs for a brand new automobile. In order to qualify for coverage under the law, a consumer must prove the following factors to be true: 
• The vehicle was purchased or registered in New Jersey;
• The vehicle must be less than two years old, or have less than 24,000 miles – whichever comes first;
• The consumer has taken the vehicle for an unreasonable number of repairs; and
• The problems substantially impact the use or safety of the vehicle.
When the above factors are met, a Lemon Law attorney can help the consumer pursue not only a refund of the price of the vehicle, but comprehensive damages to compensate for repairs, rental expenses, and any other costs incidental to the situation. 

Under the Lemon Law, manufacturers are required to work with the consumer to try and rectify problems as quickly and efficiently as possible. In addition, New Jersey’s consumer protection laws also prevent dealerships from engaging in unscrupulous practices against car buyers. 

Sometimes, however, dishonest dealerships and manufacturers engage in unfair and deceptive practices, including those recently alleged against two Sussex County outfits accused of the following: 
• Charging consumers $350.00 to unnecessarily have a VIN “etched” into a vehicle;
• Failure to timely provide consumers with permanent license & registration to replace the temporary tags issued at the time of sale;
• Selling vehicles with an existing lien;
• Charging a ‘New Car Tire Fee’ to consumers purchasing a used automobile;
• Failure to timely pay off trade-in loans; and
• Publishing advertisements with deceptive or misleading information.

Whether you are facing unreasonable repairs, or believe you may have been assessed unnecessary or bogus fees by a dealership, you should contact a reputable Lemon Law attorney. 

Sunday, May 17, 2015

Tougher Lemon Laws Needed?

Interesting discussion as to why Australia needs tougher lemon laws. If you can't watch the whole video start at the 5:42 mark for the most relevant portions: 

- Ford Focus

The Ford Focus's dual clutch transmission remains an embarrassment - but what is worse is the way Ford Focus owners are routinely, systematically brushed off by Ford Dealers.

- Ashton Wood's Jeep Cherokee

Mr Wood had no less that 22 critical defects in his $50,000 Jeep Cherokee. The first started on day one, and the last ended when he destroyed his Jeep very publicly as a publicity stunt to highlight the need for tougher lemon laws.

- Audi's 2.0 TFSI engine

When Audi mis-managed the design of the 2.0 TFSI engine to the extent that it drinks oil excessively, did they apologise and repair it? No - they merely said the vehicle's thirst was the new 'normal' and gave affected customers the brush

Monday, December 1, 2014

Tesla Settles Lemon Law Case

Lemon law cases have the potential to become contentious, especially when the subject of the suit is an exotic car with a high price tag.  Also, if the automaker starts making allegations against the consumer, the case might become more adversarial in nature.  The California auto-maker Tesla has recently been involved in a lemon lawsuit where allegations of tampering were made against a purchaser.

Robert Montgomery, a Wisconsin doctor, purchased an electric Tesla Model S in March of 2013.  Within a short period of time the car was out of service for 66 days. Montgomery claimed that the car would not start or shift into gear.  He also claimed that the battery cooling system was faulty and that the door handles did not work, among other things.  Every time the car needed to be repaired it had to be brought to Chicago as there are no Tesla service centers in Wisconsin. 

Montgomery retained a Milwaukee attorney and brought a lemon law case against the automaker.  While the defendant was initially quiet, they eventually made a statement on the manufacturer website claiming that the owner tampered with the car.  The defendant claimed that Montgomery tampered with a fuse in the vehicle causing electrical problems.  The automaker has also claimed to do everything they could to assist the consumer.  

Montgomery and his attorney denied all of the tampering accusations and continued to pursue a settlement.  Their efforts paid off as Tesla recently agreed to a repurchase.  The automaker agreed to buy back the vehicle for almost $127,000 and to pay attorneys fees of almost $19,000.  

If you believe that your car is a lemon, you should contact an experienced attorney to evaluate your claim.  While lemon law cases can be pursued without the assistance of an attorney, they rarely go far without legal counsel.   

Thursday, August 21, 2014

New Jersey Roads Awash in Title-Washed Cars

Two years after Hurricane Sandy flooded their homes, thousands of New Jersey residents now face a new disaster—unwittingly driving flood-damaged cars. 

Data from CarFax, the company that compiles vehicle histories on used cars and trucks, shows that New Jersey leads the nation in "title-washing." 

In this scam, professional con men don't just remove outward signs of damage from cars—they also remove all indications of damage from cars' titles.  According to CarFax, they move cars from state to state and are, ultimately, able to present a buyer with an unblemished title.  Sold to unsuspecting consumers, the cars may have serious hidden damage. 

There may be as many as 80,000 title-washed cars on New Jersey roads.  Not all were damaged by Hurricane Sandy.  The scam encompasses all types of accidents and wrecks.  But a spokesperson for the state Motor Vehicle Commission blamed the storm for the increase in title-washing incidents in the state.   

CarFax recommends purchasing from a reputable dealer and having a reliable mechanic take a look at the car.  More research to a car's history can also uncover attempts at fraud. 

Since February 2013, New Jersey motorists have been able to consult an online database.  The site enables consumers to search for cars by Vehicle Identification Number, make, model and year to determine whether it was in a flood or accident. 

Dealer fraud, misrepresenting a car's history, concealing water or collision damage, and other types of deceptive business practices, are illegal under Pennsylvania and New Jersey law.  If you have been a victim of misrepresentations about the condition of your vehicle, an experienced Lemon Law attorney can help you gain the upper hand.

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25 Regency Plaza, Glen Mills, PA 19342
| Phone: 888-830-1474
309 Fellowship Road, East Gate Center, Suite 200, Mt. Laurel, NJ 08054

301 Grant Street, One Oxford Center, Suite 4300, Pittsburgh, PA 15219

101 Eisenhower Pkwy, Suite 300, Roseland, NJ 07068

About Us | Our Team | Do I Have A Case? | Auto Recalls


25 Regency Plaza, Glen Mills, PA 19342 | 309 Fellowship Road, East Gate Center, Suite 200, Mt. Laurel, NJ 08054
301 Grant Street, One Oxford Center, Suite 4300, Pittsburgh, PA 15219 | 101 Eisenhower Pkwy, Suite 300, Roseland, NJ 07068
Phone: 888-830-1474