{"id":352656,"date":"2016-11-29T15:42:22","date_gmt":"2016-11-29T20:42:22","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/lemon-law\/odometer-fraud.html"},"modified":"2024-05-14T15:17:54","modified_gmt":"2024-05-14T20:17:54","slug":"odometer-fraud","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/lemon-law\/odometer-fraud.html","title":{"rendered":"Odometer Fraud"},"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\">Odometer Fraud<\/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 14, 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>Odometer fraud is a type of consumer fraud with an estimated consumer loss of more than $1 billion annually. The&nbsp;<a href=\"https:\/\/www.nhtsa.gov\/vehicle-safety\/odometer-fraud\" target=\"_blank\" rel=\"noopener\">National Highway Traffic and Safety Administration<\/a>&nbsp;(NHSTA) also reports that car buyers unknowingly buy more than 450,000 vehicles with altered odometer readings each year.<\/p>\r\n<p>Odometer fraud is a serious crime&nbsp;<a href=\"https:\/\/codes.findlaw.com\/us\/title-49-transportation\/49-usc-sect-32709.html\" target=\"_blank\" rel=\"noopener\">carrying penalties<\/a>&nbsp;of up to a $1 million fine and prison time.<\/p>\r\n<p>This article covers key information on odometer tampering, including<\/p>\r\n<ul>\r\n<li>How the law establishes liability<\/li>\r\n<li>Associated crimes<\/li>\r\n<li>What to do if you suspect odometer tampering<\/li>\r\n<li>Getting legal help if you believe a dealership or seller has committed odometer fraud<\/li>\r\n<\/ul>\r\n<p>See FindLaw&#8217;s&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/buying-a-car.html\">Buying a Car<\/a>&nbsp;section for more information and guidance on the vehicle buying process.<\/p>\r\n<h2>Odometer Fraud Defined<\/h2>\r\n<p>Odometer fraud is more common in&nbsp;<a href=\"http:\/\/findlaw.com\/consumer\/lemon-law\/tips-for-buying-a-used-car.html\" target=\"_blank\" rel=\"noopener\">used car sales<\/a>&nbsp;as opposed to new car and new vehicle sales, despite used car lemon laws.<\/p>\r\n<p>Both federal and state laws prohibit odometer tampering. While&nbsp;<a href=\"https:\/\/www.findlaw.com\/state.html\">each state<\/a>&nbsp;has its own statute,&nbsp;<a href=\"https:\/\/codes.findlaw.com\/us\/title-49-transportation\/49-usc-sect-32703.html\" target=\"_blank\" rel=\"noopener\">federal law<\/a>&nbsp;prohibits disconnecting, resetting, or altering a vehicle&#8217;s odometer with the intent to change the number of miles indicated.<\/p>\r\n<p>When you&#8217;re&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/buying-a-car.html\">buying a vehicle<\/a>, the seller must issue a written disclosure of the mileage registered on an odometer to the purchaser. If the odometer mileage is incorrect, the law requires the seller to furnish a statement to that effect on the vehicle title. This applies to used car dealers as well.<\/p>\r\n<p>For example, California law requires car sellers to complete a&nbsp;<a href=\"https:\/\/www.dmv.ca.gov\/portal\/handbook\/vehicle-industry-registration-procedures-manual-2\/odometer-mileage-reporting\/vehicle-vessel-transfer-and-reassignment-form-reg-262\/\" target=\"_blank\" rel=\"noopener\">Vehicle\/Vessel Transfer Form<\/a>&nbsp;(REG 262) and declare the correct mileage on the title. However, if the vehicle is over 10 years old, the seller is exempt from providing any written disclosures or disclaimers regarding mileage.<\/p>\r\n<h2>How Odometer Fraud Happens<\/h2>\r\n<p>These are&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud-faq.html\">a few ways<\/a>&nbsp;car sellers commit odometer fraud. It occurs when a car dealer or seller alters or \u201crolls back&quot; the odometer of a car before reselling it to a buyer.<\/p>\r\n<p>Scammers attempting to sell consumers &quot;newer&quot; cars with high mileage at a higher purchase price do so by resetting the odometer. Sellers mask signs of normal wear-and-tear by reconditioning or detailing many outward appearances of long-term use on the vehicle.<\/p>\r\n<p>Another way odometer fraud occurs is online or through classified advertisements. A seller buys a high-mileage vehicle, resets the odometer, and then attempts to resell it on popular sites like Craigslist or eBay.<\/p>\r\n<p>It&#8217;s not always the seller who commits odometer fraud. Some car owners attempt to roll back their odometers to cheat&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/automobile-warranties-and-other-buyer-protections.html\">on their warranties<\/a>&nbsp;or evade mileage penalties on their&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/leasing-a-car.html\">car leases<\/a>. Either tactic can void your manufacturer&#8217;s warranty, along with other penalties.<\/p>\r\n<p>Odometer tampering is just one form of&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud.html\">auto dealer fraud<\/a>. Dealers also engage in fraud by using&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/bait-and-switch.html\" target=\"_blank\" rel=\"noopener\">bait-and-switch<\/a>&nbsp;tactics, add-on concealment, charging above the advertised price, and other deceptive practices.<\/p>\r\n<h2>Odometer Rollbacks and Associated Crimes<\/h2>\r\n<p>Odometer fraud crimes occur as part of a larger criminal operation that can&nbsp;<a href=\"https:\/\/www.findlaw.com\/criminal\/criminal-procedure\/extradition-law---state-to-state-extradition-process.html\">span across states<\/a>. Some common crimes associated with odometer tampering can include:<\/p>\r\n<ul>\r\n<li><a href=\"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/conspiracy.html\">Conspiracy<\/a><\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/wire-fraud.html\">Mail or Wire Fraud<\/a><\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/counterfeiting.html\">Counterfeiting<\/a><\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/forgery.html\">Forgery<\/a>&nbsp;(title)<\/li>\r\n<li><a href=\"https:\/\/www.findlaw.com\/criminal\/criminal-charges\/money-laundering.html\">Money Laundering<\/a><\/li>\r\n<li>Other types of auto fraud, like&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/private-used-car-sales.html\">curbstoning&nbsp;<\/a>(misrepresentation of vehicle ownership or reselling a used vehicle for more than its worth)<\/li>\r\n<\/ul>\r\n<h2>Remedies and Penalties<\/h2>\r\n<p>Those who commit odometer fraud face criminal penalties. The law penalizes those convicted with fines&nbsp;<a href=\"https:\/\/codes.findlaw.com\/us\/title-49-transportation\/49-usc-sect-32709.html\" target=\"_blank\" rel=\"noopener\">of $10,000 per vehicle and up to three years in prison<\/a>. Sellers can also lose their dealer&#8217;s license, among other consequences.<\/p>\r\n<p>For example,&nbsp;<a href=\"https:\/\/codes.findlaw.com\/nj\/title-2c-the-new-jersey-code-of-criminal-justice\/nj-st-sect-2c-21-8.html\" target=\"_blank\" rel=\"noopener\">New Jersey&#8217;s statute<\/a>&nbsp;states that the Department of Motor Vehicles can revoke the license of any motor vehicle dealer&#8217;s license due to an odometer fraud conviction.<\/p>\r\n<p>Federal law also affords consumers the right to&nbsp;<a href=\"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/civil-cases-the-basics.html\">civil remedies<\/a>&nbsp;against scammers. Civil penalties include&nbsp;<a href=\"https:\/\/dictionary.findlaw.com\/definition\/treble-damages.html\" target=\"_blank\" rel=\"noopener\">treble damages<\/a>&nbsp;or $1,500 (whichever is greater) and actual damages.<\/p>\r\n<h2>Avoiding Odometer Fraud<\/h2>\r\n<p>The best way to avoid odometer fraud is to do your research. Before signing the sales contract, check the vehicle history report through a reputable platform like&nbsp;<a href=\"https:\/\/www.carfax.com\/vehicle-history-reports\/\" target=\"_blank\" rel=\"noopener\">CARFAX<\/a>&nbsp;or&nbsp;<a href=\"http:\/\/www.autocheck.com\/vehiclehistory\/?siteID=0\" target=\"_blank\" rel=\"noopener\">AutoCheck<\/a>.<\/p>\r\n<p>Familiarize yourself with common&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/car-ads-reading-between-the-lines.html\">car advertising scams<\/a>&nbsp;to help you recognize red flags during the sales process. For instance, if the monthly payment seems to good to be true, there&#8217;s a good chance it is.<\/p>\r\n<p>For resources and information specific to defective vehicles or lemons, see FindLaw&#8217;s&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/lemon-law-basics.html\">Lemon Law Basics<\/a>&nbsp;section.<\/p>\r\n<h2>What To Do if You Discover Odometer Tampering<\/h2>\r\n<p>There are ways to&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud-enforcing-your-rights.html\">enforce your consumer rights<\/a>&nbsp;if you suspect odometer fraud with your recent vehicle purchase.<\/p>\r\n<p>First, check the vehicle&#8217;s documentation. Look for odometer discrepancies on the&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/sample-sales-contract.html\">sales contract<\/a>&nbsp;and the title. Examine the odometer for signs of tampering, like scratches or other marks. Compare the odometer reading with the mileage listed on the vehicle&#8217;s documentation. You can also consult a mechanic you trust to assess the odometer and inspect the vehicle.<\/p>\r\n<p>If you find discrepancies, contact the seller or dealership and ask for an explanation. If you are unsatisfied with the seller&#8217;s response and still suspect fraud, you can:<\/p>\r\n<ul>\r\n<li>Make a fraud report with the&nbsp;<a href=\"https:\/\/reportfraud.ftc.gov\/\" target=\"_blank\" rel=\"noopener\">Federal Trade Commission<\/a>&nbsp;(FTC)<\/li>\r\n<li>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>&nbsp;or attorney general&#8217;s office<\/li>\r\n<li><a href=\"https:\/\/www.bbb.org\/scamtracker\" target=\"_blank\" rel=\"noopener\">Report a scam<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.bbb.org\/file-a-complaint\/search\" target=\"_blank\" rel=\"noopener\">file a complaint<\/a>&nbsp;with the Better Business Bureau (BBB)<\/li>\r\n<li>Report the suspected fraud to local law enforcement<\/li>\r\n<\/ul>\r\n<p>If your issue remains unresolved, you may want to contact an attorney with experience in&nbsp;<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/consumer-law.html\">consumer law<\/a>. An attorney can review the details of the car sale to determine if you have a fraud claim. If so, they can advise on the next best steps and advocate for a fair legal remedy.<\/p>\r\n<h2>Find Legal Help With Odometer Fraud<\/h2>\r\n<p>If you&#8217;ve noticed signs of odometer tampering with your recent car, truck, or motorcycle purchase, professional legal help is available. Use FindLaw&#8217;s Attorney Directory to find a skilled&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<p>An attorney can help can help you gather evidence to support your claim, including reviewing contracts and consulting experts. They can also negotiate with the seller for appropriate compensation and, if necessary, represent you in a civil lawsuit.<\/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\" 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<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               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  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. 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<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Tampering with or changing the odometer is both a state and federal crime. 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