Our Auto Dealer Fraud Practice and Representative Cases

On Behalf of | Apr 17, 2013 | Firm News


In our experience, consumers have more problems involving motor vehicles than with any other type of purchase.  State and federal laws provide consumers who lease or purchase motor vehicles with many protections, and an alarming percentage of motor vehicle sales or leases violate those laws.  In most cases, a consumer who successfully brings suit under these laws can obtain a court order requiring the dealership or the finance company to pay the consumer’s attorney’s fees.
  Consumer Law Group has handled hundreds of cases involving auto dealer fraud or violations of credit disclosure requierments.  Although our past successes in no way guarantee that a similar result could be obtained in other matters, our representative cases include:
Krack v. Action Motors Corp. – An auto dealership sold the plaintiff a used sport utility vehicle that had previously had a salvaged title.  The consumer initially brought the action in small claims court, where the most she could have obtained was $3,500.  The dealership transferred the case to the regular docket, and the consumer retained Consumer Law Group to handle her claim.  Following a trial, the court awarded the plaintiff over $9,000– the difference in value between the amount paid for the SUV and its fair market value, plus all of her attorney’s fees.  
Benham v. Wallingford Auto Park – The dealership advertised that if a customer was not satisfied with their vehicle, they could exchange it for another car.  The consumer attempted to exchange a car but was told that she could receive only the trade-in value rather than the amount that she had paid for the vehicle.  The consumer returned the car to the dealership and sued to recover her money.  Following a trial, the court awarded the consumer $5,000– the amount that she had paid to the dealership– plus $35,000 in punitive damages, plus attorney’s fees.  
In re Shoreline Motors Corp. – Consumer Law Group mediated and settled the claims of more than 120 consumers who had purchased vehicles from a dealership that was convicted in federal court along with multiple employees.  
Drayton v. New Britain Auto Sales – A consumer prevailed in an arbitration against a dealership that had violated federal law by not properly disclosing the finance terms in a motor vehicle sale.  The consumer was awarded a return of all amounts paid for the vehicle plus $1,000 for violating federal credit disclosure law and attorney’s fees despite his use of the vehicle for more than a year.  
Tirado v. James Motor Cars – A consumer brought suit against a car dealership and motor finance company for not properly disclosing the finance terms for a contract and for refusing to repair when it broke down after one week.  Following a trial, the court awarded a return of the purchae price, $5,000 in punitive damages, $1,000 for violating federal credit disclosure law, and attorney’s fees.  
Consumer Law Group has also settled hundreds of cases against auto dealerships and finance companies for violating various consumer protection laws, and it has assisted hundreds of its clients in cancelling their motor vehicle contracts.