Recently, a Federal Trade Commission (FTC) hearing was held to discuss the problems that Marines, sailors, and other U.S. service members encounter when they attempt to purchase and finance a motor vehicle. There has been an increasing amount of attention paid to the consumer problems members of the U.S. military and their families face. It is believed service members are targeted by car dealers because they have a guaranteed salary and can ensure payment.
Consumer advocates argue that purchasing or financing a vehicle can be a very confusing process that has the potential for fraud. In some cases it has been found that salespeople employ bait-and-switch tactics and charge hidden fees. On the other hand, car dealers and their advocates argue that transactions are typically straightforward, and “rip-offs” are rare. At the hearing, several examples of deceptive business practices that target service members were discussed, such as manipulating them into purchasing warranties that were close to being expired, or charging for overpriced add-ons. One example discussed was a service member who was duped by a dealership into paying $2,700 for a GPS system that retailed for only $200. The dealership allegedly hid the financing costs by using two sets of paperwork.
If you have been a victim of fraud or deceptive business practices in California, you may find it beneficial to consult with an attorney to learn more about the legal options available to you. Howard D. Silver has dedicated his practice to helping wronged consumers since 1987, and can help explain your legal rights to you. Call 1-866-49-LEMON for a free consultation with Mr. Silver today.
The Omaha World-Herald recently featured an article that discussed a study conducted by the Better Business Bureau (BBB) that analyzed the auto warranty industry in the United States after receiving a large number of complaints regarding vehicle service contracts. According to the study, 92 percent of the 660 people surveyed reported they found the tactics used by those selling warranties misleading or otherwise improper.
Many consumers reported paying for a warranty contract and then having their claim refused for items they believed the warranty would cover. The study found that misled consumers ended up spending an average of $1,480 on “uncovered” repairs.
The study found that the industry’s multi-tiered nature confuses many consumers, as there are warranty sellers, providers, insurers, administrators, and financing entities. Sixty-four percent of those surveyed reported they did not know the name of the company that was responsible for paying their claims. For example, one complaint filed by a consumer in Alabama described a seller in Missouri, the provider in North Carolina, administrator in Texas, contract insured in South Carolina, and finance company in Illinois.
A good auto warranty can provide consumers with excellent benefits, and not all companies engage in unfair or deceptive business practices. If you are considering purchasing a vehicle service contract, the BBB recommends consumers follow these tips to avoid being taken advantage of:
- Carefully read the contract before buying, and understand fully what is and is not covered.
- Check the companies involved with the BBB.
- Check whether the cost of the contract exceeds the value of the vehicle
- Find out from the seller the names and locations for the administrators, providers, and insurers, and exactly how claims are processed.
- If your phone number is on the national “do not call” list, yet you receive solicitations, report these violations to the Federal Trade Commission (FTC) or Attorney General.
Howard D. Silver has been protecting consumers in California from lemon vehicles, fraud, and other forms of unfair business practices related to cars since 1987. To learn how Mr. Silver can help restore your legal rights, call 1-866-49-LEMON.
Recently, an article in NASDAQ.com provided information for consumers looking to purchase a used car. Paying attention to these useful tips can help you avoid unfair or deceptive business practices by a private seller or used car dealer.
First and foremost, a consumer looking to purchase a used vehicle needs to understand they will need to do a little legwork to ensure they are purchasing a quality vehicle. First, you should obtain a vehicle history report using the vehicle identification number (VIN). Typically, these reports cost about $35, but they are well worth it. The report will contain the vehicle’s ownership history, accident(s), and odometer readings. The report can also tell you if the vehicle has a fraudulent title. However, even if the car appears okay on the report, you should have it inspected by a mechanic. You should also test-drive the vehicle and takes photographs, taking careful note of the vehicle’s VIN, damage, and take odometer readings. Only when you are certain the vehicle is not defective or misrepresented should you begin negotiating the price with the seller.
If you are considering purchasing a used vehicle in California, read the Consumer’s Guide to Buying a Used Car in California by Howard D. Silver to help you avoid buying a lemon vehicle. Mr. Silver is a lemon law attorney in California who has been protecting the rights of consumers since 1987. Call 1-866-49-LEMON to learn how Mr. Silver can assist you with your lemon law claim today.
Every year, Consumer Reports magazine issues a ranking of the most reliable cars based on an intricately tailored set of criteria. The magazine analyzes data from a combination of cumulative tests on automakers’ models and predicted reliability based on reader responses. The magazine’s 2009 findings produced some surprising insights that may run counter to public thought.
Japanese and Korean cars dominate in reliability, with 36 of the top 48 highest reliability scores. All Hondas and Acuras scored above average reliability, while larger companies like Toyota and Nissan produced very few vehicles scoring below average. American brands Dodge, Cadillac and Chrysler rounded out the bottom of the pack.
Perhaps the most unexpected finding from the study was that many luxury brands proved less reliable than more affordable models. Inexpensive small cars and mid-sized family sedans proved to be the most reliable vehicles by category. Luxury brands BMW, Audi and Mercedes-Benz fell within the bottom third.
Although cars are never guaranteed to run flawlessly, many states have consumer protection laws to protect and help those who have been sold a sub-standard vehicle. Consumers should seek the guidance of an experienced California lemon law attorney to educate them about their rights. If you suspect you’ve been sold a lemon, call the Law Offices of Howard D. Silver for a free consultation about your case at 866-49-LEMON.
Protecting consumers is always important; however, in times of financial crisis, ensuring that buyers are receiving quality products and services is even more crucial. A Yakima Herald-Republic story reports that Washington State lawmakers have passed a series of consumer protection laws. The story mentions that these new laws aim to dissuade individuals from trying to scam or defraud those who are already struggling financially due to the economy.
One of the new consumer protection laws in Washington relates to used car buyer protection against lemon vehicles. This law was introduced after the Attorney General’s Office detected an alarming trend of used car dealers burying lemon cars at auctions for relatively low prices and reselling them at higher prices throughout Washington State. Before the new law, Washington State’s lemon law only covered new cars. Now, used car dealers in Washington State will be required to disclose when a used car was repurchased under the lemon law of a different state.
With this additional protection, used car buyers will also have access to a vehicle’s title information to determine if the car has ever formally been returned to the manufacturer for a problem. Obviously, a title that reflects a used vehicle history of being totaled, reconditioned, salvaged, junked, damaged, rebuilt, or a lemon law return, may affect the vehicle’s resale value.
Even though lemon laws vary from state to state, consumer rights are a major concern across the board. If you believe that your used car may have a different history than what the used car buyer revealed to you, you may be entitled to your money back plus other expenses.
