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Indiana Attorney Robert Duff has seen a surge in cases related to car dealership fraud. He receives about 10 calls a day from individuals who have been scammed by car dealers. The Federal Trade Commission has also reported a significant number of complaints related to motor vehicle sales, financing, service, warranties, and leasing. The auto industry consistently ranks high as a source of consumer complaints.
Common types of auto fraud cases include odometer fraud, salvage fraud, bait-and-switch tactics, and junk fees. These schemes can cost consumers significant amounts of money and lead to frustration and distrust in the industry. To combat these issues, consumers are advised to take certain precautions when purchasing a vehicle.
One of the key pieces of advice from Duff is to get the car inspected by a third-party mechanic before making a purchase. This can help uncover any hidden issues with the vehicle and prevent buyers from falling victim to fraud. Additionally, obtaining a vehicle history report and looking for red flags in the report can also help consumers make informed decisions.
The Lemon Law, also known as Indiana’s Motor Vehicle Protection Act, is in place to protect consumers who purchase vehicles that do not meet basic standards. If a buyer discovers defects in their vehicle within a certain timeframe, they may be eligible for a refund or replacement. The law aims to provide recourse for consumers who find themselves with a defective vehicle.
Despite existing consumer protection laws, loopholes still exist that allow dealers to engage in fraudulent practices. Consumer protection groups are working to strengthen policies and make language more specific to hold dealers more accountable. The Combating Auto Retail Scams (CARS) Rule, if implemented, could provide clearer guidelines for dealers and help consumers make more informed decisions.
Robert Duff acknowledges the challenges of taking on consumer protection cases, especially for low-income individuals who may not have the resources to pursue legal action. He hopes that policy changes can help address these issues and hold dealers accountable for their actions. Ultimately, the goal is to protect consumers from falling victim to fraud and ensure a fair and transparent car-buying process.