{"id":352632,"date":"2016-04-04T10:42:05","date_gmt":"2016-04-04T15:42:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/lemon-law\/auto-dealer-fraud-enforcing-your-rights.html"},"modified":"2024-05-16T15:12:06","modified_gmt":"2024-05-16T20:12:06","slug":"auto-dealer-fraud-enforcing-your-rights","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud-enforcing-your-rights.html","title":{"rendered":"Auto Dealer Fraud &#8211; Enforcing Your Rights"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Auto Dealer Fraud &#8211; Enforcing Your Rights<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/natalie-moritz\/\">Natalie Moritz<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 16, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>The excitement of purchasing a new car or used car can quickly turn to frustration if you fall victim to auto fraud. Both state and federal laws protect consumers from&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud.html\">auto scams<\/a>&nbsp;and there are ways to enforce your rights under the law.<\/p>\r\n<p>This article will help you understand your options for enforcing your&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions.html\">consumer rights<\/a>&nbsp;if you&#8217;ve been scammed by an auto dealer, including:<\/p>\r\n<ul>\r\n<li>Contacting the dealership<\/li>\r\n<li>How to file consumer complaints<\/li>\r\n<li>When to get help from an attorney<\/li>\r\n<\/ul>\r\n<p>Read on to learn how to defend yourself against auto dealer fraud.<\/p>\r\n<h2>Contact the Car Dealer<\/h2>\r\n<p>In many states, if you believe the auto dealer committed fraud or engaged in&nbsp;<a href=\"https:\/\/www.findlaw.com\/state\/consumer-laws\/details-on-state-deceptive-trade-practices.html\">deceptive practices<\/a>, you must contact the dealership and allow them to correct the problem. You must take this step before you can pursue legal action, such as&nbsp;<a href=\"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit.html\">filing a lawsuit<\/a>.<\/p>\r\n<p>You can initiate this contact yourself, or with&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/getting-an-attorney-s-help-lemon-laws-car-buyer-protections.html\">help from an attorney<\/a>. Either way, the contract should be in writing and clearly illustrate&nbsp;the problem. Some examples of fraudulent selling practices include:<\/p>\r\n<ul>\r\n<li>Failure to disclose certain&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/glossary-financing-terms.html\">financing charges<\/a><\/li>\r\n<li>Misrepresenting&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/automobile-warranties-and-other-buyer-protections.html\">warranty coverage<\/a>&nbsp;or the sales contract<\/li>\r\n<li>Inflating the invoice price of the vehicle<\/li>\r\n<li>Concealing the cost of add-ons, like a service contract or extended warranty<\/li>\r\n<li>Changing the odometer reading<\/li>\r\n<\/ul>\r\n<p>Your written request also must detail what steps you would like the dealer to take to resolve the problem, like a partial refund of the vehicle purchase price.<\/p>\r\n<p>A lemon is a vehicle under a manufacturer&#8217;s warranty with a substantial defect that remains unresolved after a reasonable number of&nbsp;attempts to repair it. Consumers who suspect they&#8217;ve&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/how-the-new-car-lemon-law-can-help-you.html\">purchased a lemon<\/a>&nbsp;must first contact the dealership to report the defect and allow them to attempt to repair it.<\/p>\r\n<p><a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/lemon-laws-state-specific-information.html\">State lemon laws<\/a>&nbsp;determine what type of defect qualifies as&nbsp;substantial&nbsp;and how many repair attempts are reasonable. Some states require arbitration for lemon issues before a car buyer can pursue a lawsuit. Arbitration is a method of&nbsp;<a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/using-arbitration-to-resolve-legal-disputes.html\">dispute resolution<\/a>&nbsp;that is less formal and less expensive than a civil claim.<\/p>\r\n<h2>File Complaints With State Agencies<\/h2>\r\n<p>You can also file a complaint with&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/what-consumer-protection-agencies-do.html\">your state&#8217;s consumer affairs agency<\/a>. For most states, this is a consumer protection division of the attorney general&#8217;s office. Some states have agencies that specifically handle complaints regarding auto dealers.<\/p>\r\n<p>For example, Wisconsin consumers can file a complaint about an auto dealer with the&nbsp;<a href=\"https:\/\/wisconsindot.gov\/pages\/dmv\/cons-protect\/file-cmplnt\/filedealercomplaint.aspx\" target=\"_blank\" rel=\"noopener\">Wisconsin Department of Transportation&#8217;s Dealer Section<\/a>. Nebraskans can submit a&nbsp;<a href=\"https:\/\/mvilb.nebraska.gov\/contact-us\/consumer-complaints\" target=\"_blank\" rel=\"noopener\">complaint form<\/a>&nbsp;to the Nebraska Motor Vehicle Industry Licensing Board.<\/p>\r\n<h2>Report Fraud and File Complaints With Federal Agencies<\/h2>\r\n<p>The Federal Trade Commission (FTC) enforces consumer laws that prevent deceptive business practices. You can report fraud, scams, and unfair business&nbsp;<a href=\"https:\/\/reportfraud.ftc.gov\/\" target=\"_blank\" rel=\"noopener\">directly to the FTC<\/a>.<\/p>\r\n<p>You can also&nbsp;<a href=\"https:\/\/www.bbb.org\/file-a-complaint\" target=\"_blank\" rel=\"noopener\">file a complaint<\/a>&nbsp;with the Better Business Bureau (BBB). The BBB processes complaints within two business days and contacts the business on your behalf. The BBB then notifies the consumer if and when the business responds. The BBB closes most complaints within 30 days.<\/p>\r\n<p>The BBB has a specific division for consumers to file disputes for automotive issues. Use the&nbsp;<a href=\"https:\/\/bbbprograms.org\/programs\/all-programs\/bbb-autoline\" target=\"_blank\" rel=\"noopener\">BBB Auto Line<\/a>&nbsp;to file a claim regarding a misleading vehicle warranty or lemon vehicle.<\/p>\r\n<h2>Get Legal Help From a Consumer Attorney<\/h2>\r\n<p>If you recently bought a new or&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/tips-for-buying-a-used-car.html\">used vehicle<\/a>&nbsp;and suspect the dealer of fraud or misrepresentation, you may want to speak with an attorney.<\/p>\r\n<p>An attorney experienced in&nbsp;<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/consumer-law.html\">consumer protection laws<\/a>&nbsp;can review the aspects of your situation and explain your legal options. If you decide to file a lawsuit against the dealer, your attorney will help ensure the best possible outcome for your claim. This can include securing a legal remedy or compensation.<\/p>\r\n<p>It can be&nbsp;beneficial to work with an attorney if you&#8217;ve exhausted the other options above to remedy your situation. Remember that in some states, you must contact the dealer and allow them to correct the problem before taking legal action.<\/p>\r\n<p>An attorney can also help appeal an&nbsp;<a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/arbitration-rules-and-procedures.html\">arbitration decision<\/a>&nbsp;if you are dealing with a defective vehicle or a lemon.<\/p>\r\n<p>Use FindLaw&#8217;s Attorney Directory to find a&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/consumer-protection\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">consumer protection attorney<\/a>&nbsp;in your area.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n         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               <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--understandable\"\n                        >Easy to understand<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--solved-problem\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Solved my problem\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n\n\n    <\/div>\n    \n    <div class=\"fl-section-sidebar\">\n        <div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Consumer legal issues typically need an attorney&#8217;s support\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    You can hire an attorney to enforce your rights for safe products, fair transactions, and legal credit, banking and related financial matters\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Legal cases for identity theft, scams, or the Equal Credit Opportunity Act can be complicated and slow. An attorney can offer tailored advice and help prevent common mistakes.<\/p>\n\n            <\/div>\n                            <div class=\"fl-editors-summary-content-link fl-flex\" data-testid=\"fl-editors-summary-content-link\">\n                <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                <p class=\"find-attorney\"><a href=\"https:\/\/lawyers.findlaw.com\/consumer-protection\/#USER_GEO\/?fli=esum:0803\" target=\"_blank\" rel=\"noopener\">Find a local attorney<\/a><\/p>\n\n            <\/div>\n            <\/div>\n<\/div>\n\n\n<div class=\"email-subscription fl-mb30\">\n    <div class=\"email-subscription-header\">\n        <div class=\"email-subscription-header-content\">\n            <h3 class=\"fl-callout-sm fl-no-margin\">Stay Up-to-Date With How the Law Affects Your Life<\/h3>\n        <\/div>\n        <div class=\"email-subscription-header-image fl-flex fl-items-end\">\n            <img decoding=\"async\"\n                src=\"https://www.findlaw.com/static/c/images\/images\/w_1200,c_limit,dpr_auto\/f_auto,q_auto:eco\/v1745902396\/ability-law\/wp-prod\/general-components-subscribe-module-Image-subscribeModule_1\/general-components-subscribe-module-Image-subscribeModule_1.png?_i=AA\"\n                alt=\"\"\n                loading=\"lazy\"\n            \/>\n        <\/div>\n    <\/div>\n\n    <div class=\"email-subscription-content fl-flex fl-flex-wrap\">\n        <div class=\"email-subscription-content-text fl-mb25\">\n            <h4 class=\"fl-no-margin\">Enter your email address to subscribe<\/h4>\n        <\/div>\n\n        <form class=\"email-subscription-content-form\">\n            <input type=\"hidden\" name=\"distributionList\" value=\"latl\" \/>\n            <label for=\"email-subscription-content-form-group-input\" class=\"fl-text-sm-bold\">Email (Required)<\/label>\n            <div class=\"email-subscription-content-form-group\">\n                <input 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<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>If you believe that you may be a victim of auto dealer fraud, there are a number of steps you can take to enforce your legal rights. 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