Dealership fraud is possible through a number of company activities and actions. One is when the vehicle for sale was totaled and the insurance company signed a salvage warrant for the unrepairable or defective car. This condition must be disclosed very clearly to the prospective customer.

This means that the person will either be notified in writing or informed by the employees selling the car. Any attempt to hide this information may result in legal action. This also means that the dealer cannot say that he does not know the salvage title.

The history of the vehicles and the titles issued are readily available to dealerships and this means they are responsible for detailing that a salvage title has been issued to a car. The company has a duty of care to disclose the residual value right to the customer. Many companies that sell vehicles may try to hide these matters in a variety of ways. However, if the car works and there are no problems, they can get away with these practices. If the driver is harmed due to defects or previously damaged cars, litigation may ensue. It is important to seek out an attorney who understands these matters for possible lawsuits against the car company.

Details of the salvage title

If a vehicle has been damaged beyond the standard repair, it will go through several processes. The insurance agency usually declares the car beyond repair and can be considered a total loss. A salvage title is issued so that if used in the future, the background is known that someone was involved in an accident that caused immense damage to the car. Some car companies take these cars and repair them to a usable level. Unfortunately, many are not fully repaired and various defects may be present due to the previous accident. If this causes harm to the new owner, they may have an opportunity to take legal action.

After some repairs are completed on salvage-titled vehicles, the car company sells them well above what they were worth before or after the incident. However, to ensure a sale, these companies may intentionally hide the fact that the car has previously been damaged beyond standard repair. While this is cheating, it becomes a serious problem when it leads to further damage to the car and injury to the driver or passenger. The company then faces charges and a civil suit for damages. Compensation and additional funds may be required for medical treatment and loss of transportation.

Fraud and Recourse

Any secrecy that could affect a deal could be considered fraud. However, if a dealership has knowingly not disclosed that a vehicle has been issued with a salvage title, the company faces legal consequences, fines and even possible suspension of its license to sell cars. Confidentiality is considered bad business practice, and many reputable companies find these activities unethical and morally reprehensible. Local and state regulations are explicit in that most businesses are required to disclose certain facts about products or services sold to customers. This even extends to the auto industry for cars sold with a story. This is usually not possible for vehicles of the same year of manufacture.

If you are affected by these measures, you have the option of taking recourse. This can be through a contractual release from the dealer, a refund and a breach of contract or compensation for injury after driving the recovered vehicle. It is important to contact an attorney to determine what to do once the salvage title is discovered. The evidence should be collected and explained to a legal representative so that a case can be created with the possibility of litigation against the company. When physical harm has been done to the driver, the matter becomes more serious.

The Dealership Fraud Attorney

Most lawyers are sought after someone has been harmed. However, if this is due to the customer being involved in a fraudulent activity, it is possible to more easily claim compensation or other remedy as the evidence is readily available. Unless the company engages in other criminal activities such as file shredding, it may be possible to bring a successful case against the merchant in the event of fraud.

Disclaimer: Every effort has been made to ensure the accuracy of this publication at the time of writing. It is not intended to provide legal advice or to suggest a guaranteed result, as individual situations may differ and the law may have changed since publication. Readers considering legal action should consult an experienced attorney to understand applicable laws and how they may affect a case.