Three calls came into the 1-800 LEMON LAW hotline this afternoon from folks who were looking to save some money by buying used cars. 

All three people later found out that their cars were in accidents prior to purchase.  In two situations, the accidents were not even listed on carfax.  Of the three, only one asked about the car’s accident history to which the salesman replied the car had ”no accidents that he knows of.”  That client is the only one of the three who has a potential claim for misrepresentation.

When it comes to accidents, unless the car has a salvage or R title,  the dealer does not have to disclose anything unless you specifically ask “was this car in an accident?” 

If you are planning to purchase a used car, you need to ask questions.  Check out our lemon dodger worksheet before you buy and bring it along on your spending adventure.  The right questions now can save you thousands “down the road.”

You may remember a while back, we reported on this lawsuit involving a handicapped senior citizen who was taken for a ride by a local dealer.  We are pleased to offer this follow-up:

HANDICAPPED SENIOR CITIZEN FROM BUCKS COUNTY WINS TENS OF THOUSANDS IN DEALER FRAUD LAWSUIT AGAINST CHERRY HILL TRIPLEX Consumer Sues For Fraud And Deceptive & Unfair Trade Practices

FOR IMMEDIATE RELEASE  A handicapped senior citizen who filed suit against the Cherry Hill Triplex automotive group of Southern New Jersey, claiming deception and theft, has won $13,893, in addition to treble damages of $41,679, plus attorneys fees, and will get to keep his vehicle, a 2005 Kia Sedona.  Craig Thor Kimmel and Melissa K. Fiala of the lemon law and consumer advocacy firm of Kimmel & Silverman, P.C. brought the case on behalf of the consumer.

According to attorney Melissa K. Fiala, the testimony revealed that Cherry Hill Triplex engaged in practices that were unlawful and deceptive. Craig Thor Kimmel says “It is a terrible thing that in these difficult economic times, some businesses feel entitled to take advantage of their customers. Senior citizens are especially vulnerable and should be cautioned never to go it alone when swimming in these shark tanks.’  Both Kimmel and Fiala further say that consumers can’t believe everything they read in mail or print advertisements.  “As the old adage says, if it’s too good to be true, it most likely is.  Mr. Hammel learned the hard way.” says Kimmel.

If you feel that you have been victimized by an automotive dealership, visit www.lemonlaw.com or call 1-800-LEMON-LAW (1-800-536-6652) to learn more about your rights.

Read more about Hammel’s case and the decision by clicking here.

In today’s economy, many folks are purchasing used cars to save a few dollars. We have repeatedly provided tips on how to make sure your used dream car was not previously someone else’s nightmare. You need to do your homework, take a look at our lemon dodger used car buying worksheet, inquire about the car’s repair and accident history, have an outside mechanic check out the car, and lastly invest in a carfax report to insure no hidden secrets about the vehicle’s past. This must all be done BEFORE signing on the dotted line. Buying a used car can be a significant financial gamble and if you don’t take your time, you could end up spending more money than you would on a new car. We have seen it happen many times.

Today, as a public service, we thought we would reach out to any auto retailer out there who thinks it’s okay to roll back an odometer. Throughout the seventeen years we have been in business, we have received well over 1000 calls pertaining to odometer rollback. It remains a common act of dealer fraud. And as we have repeatedly told consumers, it is illegal. There are retailers who never get caught, but if they do, they could find themselves in serious trouble. CBS Marketwatch reports that a 55 year-old man from Georgia has been sentenced to 18 months in prison, six months of home detention and another six months of supervised release for pleading guilty to two counts of odometer rollback.

If you think your odometer has been rolled back, carfax remains one of the best sources to see if your suspicions hold truth. However, even if the carfax comes up clean, your can contact your State’s DMV office to see if they can assist you. If you have proof that your odometer has been rolled back, or if you receive notice from the State (which does happen), you need to contact us at 1-800 LEMON LAW or reach out to another consumer law firm. The Firm should be prepared to use various consumer statutes to ensure cost-free representation.

If you have any questions, or feel you were the victim of odometer rollback, feel free to drop us a line at lemon law.com and we will see if we can help, or direct you to someone in your area.

As our roller coaster economy continues its downward spiral, repo men are unfortunately having their best year ever.  In an article which recently ran in New York Newsday, the number of cars, boats, motorcycles, and trucks being repossessed has been growing as more Americans are struggling to make ends meet. According to a consultant who works for the National Automotive Fiannce Association, “the first quarter of 2008 brought the auto finance industry a significant increase in delinquencies and repossessions.”

So, how can you take control if you are facing repossession?  First, you may want to proactively address the issue with your lender to see if they can restructure the loan or payment schedule.  Banks don’t normally like to repo vehicles; they lose thousands on each vehicle repoed so they will work with you to try and prevent it. You can also enlist the help of a credit counselor to negotiate with the lender. Newsday recommends the National Foundation for Credit Counseling at 800-388-2227.

Lastly, you should look into enlisting a consumer attorney to make sure that your rights were not violated. The creditor may not have the right to repo the car.  For instance, if the seller committed fraud, mispresentation or illegal practices in selling the vehicle, the creditor is responsible for their wrongdoing.  Therefore, the contract may be null and void and they may be prevented from repossessing the car. In addition, the bank may be responsible for compensating the consumer for the seller’s actions. 

Furthermore, repo men may not trespass onto your property or use threats of force. And, while they don’t have to provide prior notice, they must immediately provide you notice in person or via certified mail which outlines the debtor; the vehicle; the location of the car; whether or not the buyer can reinstate the contract; the time, place and manner of resale; an itemized statement of amounts owed; including any repossession charges; and a list of the location and personal property contained in the vehicle. The letter must be sent no less than 15 days before the date of resale.

If your car has been repoed, and you feel your rights have been violated, please contact us and we will be glad to discuss the matter with you.

For more information on help with Vehicle Lender Abuse and Repossession Fraud, please click here.

As we have reported repeatedly on this blog, car sales are down big time! As a result, dealers are doing everything they can to make a sale.  Unfortunately, some dealers are more concerned with getting the cars off the lot immediately than they are about securing financing for their customers.  And as new car sales continue to be more competitive, we are receiving a plethora of calls at 1-800 LEMON LAW regarding a dealer tactic known as spot delivery.

Most folks have heard of this tactic before.  An alleged spot delivery transaction between a NJ consumer and the Brad Benson dealership found its way on National TV (and throughout cyberspace).  Spot Delivery occurs when a dealer puts a consumer in a new car “on the spot,” with the consumer signing a number of documents, including a retail sales agreement.  Later on, the customer starts receiving calls tellling them their financing did not go through. In most cases, they are trying to get the customer to come back to pay more money than they originally agreed to.   Some dealers play dirty when this occurs.  They may threaten repossession, or not pay off a trade-in, or make numerous threatening phone calls. And in most cases, customers feel trapped into paying more money.

So, what should you do? You need to stand your ground.  If you signed purchase doucments and registration applications, obtained insurance, and a new license plate installed or an old plate transferred, the car belongs to you.  Here are some other tips to follow if you find yourself in a spot delivery situation:

• Keep all copies of your paperwork and anything else associated with the sale (including calendars, photographs, advertisements). If the finance manager asks for your papers at any time for any reason, refuse! Keep these documents in a safe place, not the car.
• If you are called back to the dealership to sign additional papers, either do not go or do so in a different car than the one you bought.
• Have a friend or spouse drive you and witness whatever is being told to you. This will prevent the dealer from taking your car as hostage, an all too common happening.
• If a dispute arises with the dealer over the contract and the dealer demands the car is returned, park it in a garage or remote location until the matter is resolved, to prevent it from being taken against your wishes.
• Put together a complete time line of everything that happened from the time you thought of purchasing the car until the car was taken away. Try to remember specific names of dealership personnel and any statements that were made to you during conversations with the sales and finance staff.
• Keep track of all monies you had invested into the purchase, including registration, insurance, down payment and trade. Never pay cash and always get a receipt!

If after reading this, you realize that you are a victim of spot delivery, you may want to contact a consumer attorney to take action. At this time, we are handling spot delivery claims in Pennsylvania and New Jersey. If you are in either state, please contact us via e-mail or by calling Michael Sacks, Director of Client Services at 1-800 LEMON LAW (1-800-536-6652) ext. 131.  If you reside in another state, contact your attorney general or check out our attorney directory.

From www.6abc.com

by Matt Dennis and Bob Monek

January 10, 2007 — Two local auto-dealerships have agreed to pay 250-thousand dollars for deceptive advertising and other illegal practices. The settlement is the result of a civil lawsuit filed by the Pennsylvania Attorney General against Value Kia on Essington Avenue in

Southwest Philadelphia and the Value Kia on East Lincoln Highway in Coatesville.

Investigators said the dealerships made false promises to entice customers. Attorney General Tom Corbett said the ads included claims such as

“Free Vehicle with any vehicle purchase”
“Up to $12,000 off new cars”
“YOU CHOOSE! $1,500 cash with any vehicle purchase or 60″ color projection television just $1 with any vehicle purchase.”

Other ads offered consumers a five carat diamond tennis bracelet, up to 60% off new cars, and free gas for one-full-year with every new and used vehicle sold.

“These ads were designed to lure prospective car buyers to their showrooms with promises of great deals and prizes, however the defendants failed to make good on many of the sales incentives,” Corbett said. “Consumers arrived at the dealerships expecting to receive the free gifts or deals only to be told that they had to meet a host of conditions to qualify for the offers. Very rarely, if ever, were car buyers able to meet all or even some of the conditions to purchase the cars and trucks as advertised. In fact, some of the rebates that the defendants combined to reach the advertised price were neutrally exclusive, such as ‘buyer loyalty’ (second-time KIA buyer) and ‘first-time buyer’.”

The lawsuit also said the dealerships sold defective cars and did not pay off balances on trade-ins.

Anyone who thinks they may be owed money by the dealerships must contact the Attorney General’s Bureau of Consumer Protection within the next 60 days. The number is 1-888-441-2555. You can also file a complaint online at www.attorneygeneral.gov. Consumers must contact the Bureau of Consumer Protection and file a claim for restitution by Friday, March 7, 2008.

Former football star Brad Benson is known for his light-hearted radio and television commercials, however he may have gotten a bit more publicity than he bargained for when his dealership was featured last night on the ABC program “I-Caught.” You can watch the video from YouTube here:

The video does not tell the whole story. A daughter enters Brad Benson Hyundai and returns her mother’s car, citing the fact that the dealership changed the interest rate and caused her mother significant aggravation. As she is leaving the dealership, she warns prospective customers. She records the transaction as proof that they did return the car. The salesman seems caught offguard and completely uninformed about the situation, essentially looking like a deer in headlights. She submits the video to a wonderful website, the consumerist (I love their tag-line: Shoppers Bite Back) and the story caught the attention of ABC producers.

Not one to back down from a fight (He once challenged Rosie O’ Donnell to a mud wrestling fight in one of his ads), Mr. Benson put up his own well-produced video rebuttal:

In his video, he gives a whole other side to this story. Essentially, he is leaving it to the public to serve as judge and jury and judging from the comments, it appears most YouTube viewers are siding with the protective daughter.

While it would be difficult to put together the pieces of this puzzle without reviewing the paperwork, there are a few rules of thumb everyone needs to be made aware of:

1) Once you have a signed sales contract, it is binding and both parties must uphold the terms of the contract. That means that if the dealer guarantees a certain interest rate, they must secure the financing. It also means that customer must agree to buy or lease the car at the stated cost and interest rate.

2) It is therefore imperative that before you sign on the dotted line, you read through the terms of the contract and make sure you understand them. If you have questions, ask! Do not put down false information about yourself, even if the dealer encourages it. If you have to be dishonest to get a certain deal, it is not worth it and we have seen scenarios where dealers use this to pull the rug out from some customers.

3) If you have a signed retail sales agreement, and the dealer calls you to tell you that they can’t secure financing and you have to resign the contract for a higher interest rate/and or cost OR you need a co-signer, STOP! You could be the victim of a dealer fraud scam known as SPOT DELIVERY WITH YO-YO. It is illegal for a dealer to repossess a car if there is a binding sales agreement If you find yourself in this situation, contact us.

4) On the other side of the coin, you can not just return a car. A car is not a shirt or a book. Once you sign a binding agreement, you are responsible for upholding the terms of that agreement. If you sign a blank contract, you are essentially singing a blank check. Your signature is your most valuable possession. Use it wisely. If your car is giving you troubles, contact us or another consumer attorney, but do not just drop off the car. This will be viewed as a voluntary repossession. The dealer can sell the car on the auction block and sue you for the difference between what they received and what you owe them. Plus, your credit will be ruined. PLEASE DO NOT TAKE THE LAW IN YOUR OWN HANDS. This could backfire on you big time.

It remains to be seen how this case will carry out. I am sure this is not the last we have heard regarding this. Stay tuned…..

Lemon Law Attorney Bob Silverman appeared on NBC10′s All That & More” last week to discuss this scandal.  if you feel that you have been a victim of this scam, please contact us to see if we can help.

By WILLIAM BENDER

From The Philadelphia Daily News

At Springfield Ford in Delaware County, “You ALWAYS get more for your dollar,” the car dealer claims on its Web site.

That’s unless, according to U.S. Attorney Pat Meehan, you happen to be black.

The Justice Department announced yesterday that Springfield Ford, and Pacifico Ford in Philadelphia, have agreed to pay a combined $450,000 to African-American customers to whom they allegedly charged higher interest rates on car loans because of their race.

“This type of practice is a serious violation of the law and an insult to the consumer who is entitled to conduct business without fear of discrimination,” Meehan said in a statement, calling the practice “intolerable.”

The civil complaints filed in Philadelphia federal court allege that the dealerships engaged in discriminatory lending practices between 1999 and 2002 by jacking up the interest rate for black customers — a violation of the Equal Credit Opportunity Act.

The differences in the interest-rate markup – a finance charge dealers add to the rate set by the lender – “cannot be explained fully by factors unrelated to race, such as differences in the consumers’ creditworthiness or by differences in the down-payment amounts provided by consumers,” according to the complaints.

“Racial discrimination in lending is wrong and will not be tolerated,” Wan J. Kim, Assistant Attorney General for the Justice Department’s Civil Rights Division, said in a statement.

Representatives for Springfield Ford, located on Baltimore Pike, and Pacifico Ford, on Essington Avenue in Southwest Philadelphia, could not be reached for comment last night. Both companies have agreed to change their markup policy to prevent future discrimination, the department said.

The state attorney general’s office is pursuing separate agreements with the dealerships.

This just into the lemon law newsroom….

A 77-year-old consumer from Bucks County has filed suit against the Cherry Hill Triplex dealership claiming deceptive trade practices, fraud and theft. Read all about it.