Car dealer sued for the 4th time for forgery and fraud. In this case, a young woman went to a dealership to purchase a new car along with GAP coverage that she wanted. She was taken advantage of terribly, including (1) the finance manager lied and forced her to buy an extended warranty because “the bank required it for approval”, and (2) her signature was forged on a second contract that removed the GAP coverage and increased the cost of the vehicle service on the forged contract by the cost of the GAP coverage. When the car was totaled a year later she discovered the dealer had cancelled her GAP coverage . . . Lawsuit time.
Common car dealer problems and scams I help car buyers with include:
1. Car dealer forged the buyer's signature on a second finance contract.
2. Dealers selling a car without having the title. happens all the time
3. Changing the monthly payment and amount financed after the deal is done.
4. False online price advertising when the online price increases at the dealership.
5. Bogus reconditioning and inspection fees for illegal profits.
6. Selling vehicles that did not pass state inspections.
7. Forcing customers to buy extended warranties and vehicle service contracts.
8. Spot Delivery Violations - when financing is not approved:
9. Dealer keeps the down payment although financing is not approved;
10. Dealer sells the trade although financing is not approved;
11. Dealer forces customer to sign a contract with worse terms; and
12. Dealer forces customer to keep the contract and not allow them to cancel.
13. Charging illegal finance charges and passing along exorbitant bank fees.
14. Car dealer does not disclose rental history or other prior commercial use.
15. Credit Application fraud - creating fake jobs or inflating salary.
16. Car dealer runs credit without permission.
17. Car dealer refuses to cancel the extended warranty or steals the refund money.
18. Car dealer uses out of state sister dealership and charges illegal fees and interest.
Common resolutions to car dealer cases once dealers are sued include:
1. Financial restitution including actual damages (meaning actual money the buyer spent).
2. Unwinding the deal, meaning the buyer returns the car and gets all of their money back.
3. Dealer buys the car back for the remaining payoff and returns the down payment and fees.
4. Cancelling a warranty or service contract and getting the refund.
5. Getting the trade-in back.
6. Having the down payment returned.
7. Dealers pay the buyer's attorney's fees.