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Category Archives: Used Car Fraud


The Statute of Limitations in Used Car Fraud Cases

By Louis S. Schwartz, Attorneys at Law |

Consumers who purchase used vehicles from Pennsylvania dealerships and are defrauded during the process, can hold the at-fault parties liable for damages by filing a claim against them in court. Unfortunately, even those with valid claims could have their cases dismissed if they fail to file before a certain deadline, or to comply with… Read More »


Car Kiting: Dealers Selling Vehicles that They Don’t Actually Own

By Louis S. Schwartz, Attorneys at Law |

Most people have heard of the term check kiting, but few are aware that the same type of fraudulent scheme can be and is regularly used by car dealers across the country. Car kiting involves selling a vehicle that has been traded in before first paying off any outstanding liens. This type of activity… Read More »


Undisclosed Add-on Products

By Louis S. Schwartz, Attorneys at Law |

Under both Pennsylvania and federal law, used car dealers are prohibited from engaging in fraudulent sales practices when advertising or selling used vehicles. Unfortunately, many dealerships still attempt to get away with unscrupulous business practices, such as adding products and services to a buyer’s contract without being asked to do so. These products are… Read More »


The Buyers Guide

By Louis S. Schwartz, Attorneys at Law |

Under federal law, used car dealerships are required to post a disclosure document, also known as a Buyers Guide, that gives consumers information about their purchase and any warranties on all vehicles being offered for sale. Used car dealers who fail to post these disclosures, or who alter them in such a way that… Read More »


The Used Car Rule

By Louis S. Schwartz, Attorneys at Law |

While many of the laws that protect consumers from fraud when purchasing used cars are passed by state legislatures, a number of rules were also put in place by the federal government. For instance, the Federal Trade Commission (FTC) enforces a federal regulation known as the Used Car Rule, which requires dealerships to disclose… Read More »


Non-Disclosure and Affirmative Misrepresentations by Used Car Dealers

By Louis S. Schwartz, Attorneys at Law |

Most fraudulent activity that takes place during the sale of used vehicles falls under one of two categories: non-disclosure or affirmative misrepresentations. The first occurs when a dealer purposely withholds information that affects the value or desirability of the vehicle, while the latter involves taking a more active role in misleading customers. Fortunately, both… Read More »


Yo-Yo Financing Tactics

By Louis S. Schwartz, Attorneys at Law |

Of the many fraudulent tactics used by unscrupulous used car dealers, yo-yo financing is perhaps the most common and devastating to buyers. Yo-yo financing occurs when a buyer signs a contract, takes the car home, but then is notified weeks later that his or her financing wasn’t actually approved, and the car must be… Read More »


The Dangers of Odometer Fraud

By Louis S. Schwartz, Attorneys at Law |

Recently, the owner of an Arizona used car dealership was arrested for selling vehicles with false odometer readings to unsuspecting consumers. During its investigation, the Arizona Department of Transportation discovered that in addition to altering the mileage on its vehicles, the dealership had also removed the letter “C” designation from many of their titles,… Read More »

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