There is no doubt that you expect to avoid being taken advantage of while buying or leasing a new car from a dealership. You should be fully aware of what is deceptive practice when buying a car from a dealership.
Auto dealer fraud refers to dishonest and illegal actions taken by car sellers. This kind of fraud can happen at any point during the buying process for a car, from advertising to negotiating the price and terms of the loan.
This article explains a few common auto fraud practices and how Texas consumer protection laws can aid you.
1 - Fraud and forgery
Sending a bank a second set of finance documents with forged signatures, a higher selling price, and a lower interest rate is one of the most serious forms of auto dealer fraud. To maintain the consumer's monthly payment, the interest rate is decreased.
The amount the customer has to transfer to the bank to pay off their loan is much larger than anticipated when they try to sell the car or trade it in.
2 - Bait and switch promotion
When a dealer says that an advertised price is no longer valid, he can be engaging in bait and switch. If it turns out that the quoted price was never truly available for the autos, the dealer may have committed fraud.
Always study the small print in advertisements, confirm the offer over the phone, and carry the advertisement with you to the dealership. You might have a fraud case if he won't honor the ad.
3 - Misleading claims about the cost.
After looking at models and negotiating a bottom line price, you can discover that the total cash price on the contract is higher than what you agreed to or what was advertised for that car or product. The salesperson might have hidden fees in the hopes that you wouldn't challenge them.
Walk away from the dealership, report the salesperson and/or manager to the Federal Trade Commission, and retain a record of the inflated price and the originally agreed-upon price if they refuse to honor it.
How can Texas consumer protection laws help?
The Texas Deceptive Trade Practices Act (DTPA) gives customers a wide range of protections. It covers consumer transactions, including deception or fraud. Vehicle dealer fraud and dishonest auto repair firms are the sources of several consumer protection cases.
The sum paid, property damage and additional repair costs can all be recovered in a lawsuit filed under the DTPA, in addition to legal fees.
Ending note
Texas consumer protection laws are designed to shield customers against dishonest and illegal actions taken by merchants at any point in the transaction. You need to have a clear understanding of what is deceptive practice when it comes to automobile fraud. For assistance with automobile fraud and consumer protection laws, please contact Allen Stewart.
Andrew Richardson is the author of this Article. To know more about Odometer reading exempt please visit our website: allenstewart.com
Listed along with seven other rules to be notified under the Consumer Protection Act, 2019, the draft rule also wants to prevent the players from giving fake reviews and present counterfeit goods in their platforms.
“An e-commerce entity shall not
Directly or indirectly influence the price of the goods or services and shall maintain a level playing field.
Adopt any trade practice which for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, or composite supply, adopts any unfair methods or unfair or deceptive practice that may influence transactional decisions of consumers in relation to products and services.
Falsely represent themselves as consumers or post reviews about goods and services in their name; or misrepresents or exaggerates the quality or the features of goods and services,” reads the draft rule.
The draft rule demands e-commerce players to be transparent on return, refund, exchange, warranty, guarantee, delivery, shipment, mode of payments, grievance redressal mechanism and display the terms of contract with sellers.
