California Lemon Law Blog

A Los Angeles woman won a Small Claims Court judgment for $9,867.00 against American Honda Motor Co. on February 1, 2011. The women contended that the Company’s claims about the gas mileage capabilities for the Honda Civic Hybrid were misleading entitling her to damages. According to The Los Angeles Times, the woman purchased a 2006 Honda Civic Hybrid after relying on advertising by the company that the vehicle could get a maximum of 50 miles per gallon of gasoline, a level the women’s car never reached.

During the lawsuit, the woman claimed that the maximum mpg that the car ever reached was 42 and that a software update that was done dropped the mileage to below 30 mpg. The Civic owner decided to file her own lawsuit after learning that a proposed settlement from a class action lawsuit would leave owners with an average of $100 plus rebate coupons for a new car.

Additionally, Honda has acknowledged that batteries for 2006 through 2008 Civic Hybrids are deteriorating faster than expected. As such, batteries eventually will not charge to full capacity, the vehicles will rely more on gasoline and gas mileage will get worse.

Consumers have the right to be told the truth about the vehicle they are buying, and when they are deceived, they have the right to restitution for their losses. If you find yourself in this position, Howard D. Silver, Los Angeles unfair business practices lawyer, can help . For more information, call us today at (866) 49-LEMON and receive a free complimentary consultation about your case.

The latest in a series of scams targeting automobile buyers online was reported by Kelley Blue Book (KBB), a widely respected source on used and new car prices. The company cautions that a number of dishonest individuals and companies are targeting car buyers with a scam that hijacks the Kelley name and promotes fake deals via the internet.

This scam usually involves a “buyer protection program” or comparable false deal. The fraudulent individuals and companies typically trick car buyers into paying a fake seller via a Pay Pal account or the like for a service that does not exist. As part of a KBB report, the company cites FBI figures stating that approximately $1,000 each hour is lost by car buyers due to rackets like these.

Always triple check a seller’s information before buying. Do extensive web research and background checks before purchasing any service. Also, when you are buying a car, be especially vigilant when shopping online. If you can, meet the seller in person to inspect the car for yourself and get a read on the situation. If it seems too good to be true, or if something about the seller seems suspicious, that’s a perfect cue to step away from the deal. If you’ve lost money as the result of a deceptive business scam, contact Los Angeles deceptive business practices attorney Howard D. Silver at 1-866-49-LEMON to learn more about how to protect yourself.

In the wake of destruction caused by natural disasters, many types of property need repair. Unfortunately, however, some people see this as an opportunity to take advantage of others. Thus, it’s important to be informed and vigilant when hiring professional help. For example, after Hurricane Irene hammered the East Coast, Allstate Insurance issued some of the following tips to avoid deceptive business practices. We added a few warnings of our own as well.

• Do not deal with traveling door to door salesmen using high pressure tactics or who demand money upfront at the first meeting.
• Spend sufficient time when choosing a contractor to rebuild, repair, or perform cleanup on your home or property.
• Obtain several estimates from licensed, bonded contractors. Closely examine their licenses and proof of liability insurance.
• Research each contractor’s credentials with your local Better Business Bureau or Home Builders Association. Do online searches for consumer feedback regarding their work.
• Steer clear of paying money up-front. That said, some established businesses will ask for a partial, up-front payment. However, this should never be greater than the cost of materials, or 20 percent of the total.
• Pay professionals by check. Avoid cash payments to unverified sources.
• Adhere to local building codes and inspection protocol.
• Never sign over an insurance settlement check to the contractor.
• If anyone does unauthorized work on your home or property and then demands payment, alert the local authorities. Report any suspect business actions to your local police, sheriff’s department or your state’s Department of Insurance.

If you think you’ve been the victim of fraudulent or deceptive business practices in California, contact deceptive business practices attorney Howard D. Silver in California at 1-866-49-LEMON for guidance on what to do.

The Baltimore Sun reports that the Maryland Attorney General’s office has ordered a Missouri-based company and its owners to pay approximately $25 million in penalties and restitution to close to 17,000 customers in Maryland.

According to the article, consumers bought extended vehicle warranties that the company alleged would offer “bumper to bumper” repair coverage from 2005 through 2010. The company contacted consumers via letter or telephone notifying them that even though their existing warranty was about to expire, they could extend the expiration date for $2,000 to $4,000. According to the State Consumer Protection Division, however, the company was offering third-party repair contracts with serious exclusions and limitation. The company was also found to have violated both the Maryland Consumer Protection Act and Telephone Solicitations Act by inflating the extent of the warranties’ coverage and misleading consumers regarding the relationships the company had with automakers.

If you believe you have been the victim of wrong or unfair business practices, a consultation with a deceptive business practices attorney in California can help you understand what legal options are available to you, based upon the specifics of your case. To learn more about your rights, call 1-866-49-LEMON to speak with attorney Howard D. Silver.

The Columbus Dispatch reports that the Ohio Attorney General is suing a car dealer for breaking several consumer protection laws. According to the article, the company allegedly sold vehicles without divulging financial terms, tampered with a vehicle’s odometer in at least one case, and failed to provide dated sales receipts.

Action was taken after the Attorney General’s office received several complaints from consumers regarding the car dealer. Most of the complaints involved problems with repossessions, certificates of title, and vehicle repairs and services. The company is also accused of regularly using a one-page contract to explain to buyers the financial terms of vehicle sales that did not fully disclose financing costs. The lawsuit also accuses the company of regularly failing to apply for vehicle certificates of title within 30 days of sale, as well as selling a vehicle that had an odometer reading of 125,000 miles when the vehicle’s actual mileage was over 270,000 miles. The lawsuit seeks restitution on behalf of consumers as well as a $25,000 fine for each violation of the law. Additionally, the car dealer is to stop doing business until they have paid all penalties, fines, and restitution.

All California consumers are entitled to be treated honestly and fairly, particularly when making a large purchase such as buying a vehicle. When someone is a victim of deceptive business practices in California, it is important to remember they are given certain rights under law. Attorney and consumer advocate Howard D. Silver has protected the rights of consumers in California for more than 20 years. To find out more about your legal rights, call 1-866-49-LEMON today.

WIVB News reports that two men from Niagara County were charged recently for their alleged involvement in a car dealership scam in Pendleton, New York. The men were allegedly selling customers fake extended warranties for their motor vehicles.

According to the article, the two men were charged by New York state police with second-degree schemes to defraud and falsifying business records, and fourth-degree larceny. The men were charged after an investigation was conducted by the state Insurance Fraud Bureau along with the Niagara County DA.

The investigation was prompted after a man, who purchased a used vehicle and an extended warranty, needed the vehicle repaired. He then went to a shop but was told that the warranty company did not have a record of his vehicle and had not received a contract or payment for the warranty that he had purchased. After reporting the incident to the authorities, the investigation revealed additional victims and that the dealership’s employees were selling extended warranties without processing them with the warranty company.

If you believe you have been taken advantage of by a car dealership in relation to repairs or warranties, contact attorney Howard D. Silver. Mr. Silver is an unfair business practices attorney in Los Angeles who has represented clients throughout Southern California that have been victimized by deceptive business practices. To find out how Mr. Silver can help you, please call 1-866-49-LEMON today.

WSAV.com in Savannah, Georgia, reports that the results are in from a survey taken in 2010 by the National Association of Consumer Agency Administrators (NACAA), the Consumer Federation of America (CFA), and the North American Consumer Protection Investigators (NACPI). The survey listed the most common, worst, and fastest growing complaints received in 2010 by local consumer agencies throughout the United States. Over 252,000 complaints that were filed in 2010 were reviewed in the survey, which resulted in over $208 million dollars in savings and restitution for consumers.

The survey found that complaints regarding credit and debt are second only to complaints that are auto-related. The results were the same in the 2009 survey. Auto-related complaints included lemon vehicles, advertising or sales misrepresentation of new and used cars, faulty repairs, and towing and leasing disputes.

In relation to auto-related complaints, new types of complaints in the 2010 survey included failing to pay off liens on trade in vehicles or “NSF” checks issued to consumers.

If you believe you have been taken advantage of by a dishonest car dealer in relation to car or repair fraud, you may find it beneficial to consult with Howard D. Silver, an unfair business practices attorney in California who protects the rights of wronged consumers throughout Southern California. Mr. Silver will investigate your situation to determine whether you have a meritorious claim. To get started with Mr. Silver, call 1-866-49-LEMON today.

Recently, SB 132, a bill before the Missouri Senate, was signed by Governor Jay Nixon. The bill addresses fraudulent motor vehicle warranties and contracts, reports The Wentzville Patch. The legislation also deals with vehicle licensing, the suspension and revocation of licenses, the registry of motor vehicles, and deceptive business practices. The new law takes effect January 1, 2012.

According to the article, motor vehicle warranty fraud is a big problem in Missouri. The attorney general’s office has received hundreds of complaints from consumers in the state who have been scammed by deceptive salespeople who are unregistered and blatantly lied to consumers about their vehicle warranties. The bill will allow consumers to confirm that they are buying an honest, and fair motor vehicle warranty and requires certain documentation to be filed at the time of purchase. Consumers must also receive a copy of the terms prior to the sale. Additionally, the bill bans companies or individuals from using false, misleading, or deceptive practices in relation to motor vehicle extended service contract programs. Restitution is available for victims of these practices. The bill also clarifies the rights of consumers if they decide to cancel a motor vehicle service contract.

The attorney general’s office worked extensively with the Service Contract Industry Council (SCIC) to create and implement new for the licensing of businesses and individuals that sell motor vehicle service contracts. The state has become a target for deceptive telemarketing and direct mail campaigns, which will be monitoring the sale of service contracts to make sure individuals and businesses are in compliance with the new law.

Businesses are required to treat consumers fairly and honestly, but unfortunately, many attempt to take advantage of consumers for their own gain. Lawyer Howard D. Silver can help you understand your legal rights if you believe you are a victim of deceptive business practices in California. Call 1-866-49-LEMON to get started with Mr. Silver now.

According to FortBendNow.com, the Texas Attorney General has charged a telemarketing company based in California and its owner with selling fraudulent auto vehicle warranties.

Investigators with the office of the Texas Attorney General allege the company made thousands of unsolicited phone calls to residents in Texas to market its vehicle coverage services. They also allege the company’s marketing plan relied upon deceptive direct mail solicitations that did not disclose details about certain exclusions and limitations in their service contracts. In addition, while the company claimed they offered extended vehicle warranties, the warranties were actually expensive vehicle service contracts. The company claimed their service would give vehicle owners coverage up to 250,000 miles. However, the company did not disclose that any claim that was paid under a service contract could not surpass the vehicle’s cash value. According to the Texas Attorney General’s office, it is important for companies to disclose this information since used vehicle owners buy the warranty coverage to increase the viability of the vehicle by making sure repairs are made at costs that are reasonable and affordable. Without this type of disclosure, necessary information is not given to vehicle owners to help them conclude whether it is worthwhile to invest in a vehicle service contract.

The Texas Attorney General’s office alleges that the company utilized sale tactics that were unlawful and fraudulent to sell their product. For example, consumers were assured that a contract could be cancelled readily, and that quick refunds would be granted. However, investigators found that it was enormously difficult to obtain a refund, if not impossible. The company has been charged with violating the Texas Deceptive Trade Practices Act, in addition to other charges, and is seeking penalties of $20,000 per violation, as well as attorneys’ fees.

If a consumer believes they have been the victim of unfair or deceptive business practices, contact a California deceptive business practices lawyer to have their rights properly restored. Since 1987, Howard D. Silver has exclusively focused on protecting consumers from vehicle fraud, lemon cars, and other forms of unfair business practices. Call 1-866-49-LEMON to learn how Mr. Silver can help you.

Purchasing a new or used vehicle is often an exciting and enjoyable experience that many consumers look forward to. However, two men in West Virginia are far from happy. According to a wvrecord.com article, two men who signed a motor vehicle purchase contract with American Suzuki Motor Corporation, Wells Fargo Auto Finance and Logan Chrysler-Dodge-Jeep-Suzuki for a 2008 Suzuki Forenza, are now suing these companies and a car dealership for multiple infractions, some of which include fraud, misrepresentation, unfair and deceptive practices, and violation of lemon law.

According to the article, the plaintiffs allege they were denied advertised vehicle credit terms of no money down and $99 a month. After agreeing to submit a credit application and attempting to buy the vehicle, they were told the original terms were not an option and “just a promotional gimmick.”

Continue reading "Multiple Parties Sued for Auto Fraud, Misrepresentation, and Violation of Lemon Law" »

A recent U.S. News & World Report article discusses certain “deal breakers” that a consumer should look out for when buying a used car. According to the article, some of the “red flags” that consumers need to pay attention to include frame damage and models that have persistent problems or constantly fall short of quality and functionality standards (a.k.a. a lemon vehicle). The article also mentions that a car with water damage, a missing or altered Vehicle Identification Number (VIN), or a history of being used by police or as a taxi should be avoided when buying a used vehicle. It is also important for a potential car owner to spend time examining a car and to consider having a mechanic conduct a pre-purchase inspection.

In comparing purchasing a car to getting married, the report acknowledges that the process of buying a used car, and the subsequent use and care of that vehicle, involves legal, financial, and time commitments. Although many consumers rely on vehicle history reports when deciding whether or not to buy a particular car, if a previous owner did not report an accident to the police or their insurance, then it is not going to be on the history report. As a consequence, a vehicle could be damaged even if that does not appear to be the case.

While discovering that your used car has more problems than you were initially led to believe is not a pleasant experience, fortunately, consumers are protected when adversely affected by used car fraud, unfair business practices, or a lemon vehicle. For more information about how you may be able to receive a full refund or replacement vehicle, contact attorney Howard D. Silver. Call 866-49-LEMON today for a free consultation. You can also refer to Howard D. Silver’s Consumer’s Guide to Buying a Used Car in California for additional information.

Source article: http://usnews.rankingsandreviews.com/cars-trucks/The-Worst-Used-Cars-You-Can-Buy/

In addition to the Consumer Legal Remedies Act of California, which protects consumers by prohibiting used-car dealers from using deceptive and unfair business practices to sell their cars, new legislation (Senate Bill 95 and Assembly Bill 647) advocated by criminal justice officials and consumer protection groups will go into effect in January 2010.

Senate Bill 95, also referred to as the California Car Buyers Protection Act, will require auto dealers to have outstanding liens (legal claims on a vehicle as security for a debt) completely paid off before trading or selling a used car. Additionally, Assembly Bill 647 gives consumers access to a national database containing title, theft and other important vehicle information.

One State Senator commented that Senate Bill 95 will assist consumers who are already battling the tough economy. In fact, some car dealers have gone out of business due to the economy, leaving consumers with unpaid liens on vehicles that they traded in. Based on the article, the president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety stated that SB 95 “will help law enforcement agencies crack down on violations before hundreds of car buyers have their credit ruined at a single dealership.”

Continue reading "New Legislation to Protect Used-Car Buyers in California" »

An article from latimes.com reported that Robert G. Beverly, a well-known lawyer and Republican who worked in the state Legislature for almost 30 years, passed away on Wednesday, October 14, 2009 from complications connected to Parkinson’s disease. He was 84-years-old. According to the report, one of Robert G. Beverly’s major contributions was the creation of the Song-Beverly Consumer Warranty Act. His innovative consumer-protection legislation led to what so many consumers know today as our California lemon law statute. What many consumers don’t know is that the Song-Beverly Act dates back to 1970 and is the foundation for the consumer protections we now enjoy.

Thanks to the hard work of Mr. Beverly, citizens are protected from unscrupulous car dealers selling “lemons” and manufacturers that are unaware that their vehicles are flawed in some way. Pursuant to the lemon law, consumers may receive their money back or a replacement vehicle when the vehicle they purchased is defective.

Continue reading "Creator of the Song-Beverly Act Remembered" »

There are many different kinds of fraud associated with motor vehicles. Although consumers are typically more concerned with used car fraud or auto repair fraud in California than they are with auto insurance fraud, insurance schemes also have the potential to affect the wallets of consumers. A recent article from insurancejournal.com reported that a 56-year-old San Jose man was arrested for auto insurance fraud and faces criminal charges for filing a counterfeit motor vehicle claim, perjury, and falsely reporting a crime.

According to the story, this particular man went as far as reporting his “stolen” vehicle to the San Jose Police Department and filed a stolen vehicle claim with his insurance company. Sentry Insurance suspected the claim was fraudulent and reported the incident to the Department of Insurance. An investigation conducted by the California Department of Insurance (CDI) discovered that before the man reported his vehicle to be stolen, he purportedly tried to use the car as collateral for a loan. This incident serves as an important reminder that although our economy is struggling, turning to fraudulent actions is not a solution and there is no excuse for such behavior.

Based on the article, the California Department of Insurance received approximately 300 more vehicle theft and arson claims in 2008 than 2007. For consumers who really have had their vehicles stolen, fraudulent cases do nothing more than make the recovery process that much more difficult.

Continue reading "California Man Arrested for Auto Insurance Fraud" »

There has been much controversy lately regarding California Assembly Bill 1200, also known as “the steering bill”, which did not pass this week in a 19-17 Senate vote. California Assembly Bill 1200 would remove restrictions against an insurer to require or suggest that a vehicle be repaired at a specific auto repair dealer. If the bill had been approved, insurers would have apparently had more leeway in steering customers to their preferred shops. According to a report, it is possible that the bill may be reintroduced.

At the heart of the criticism is the notion that it does not give consumers the protection they need or require. A California-based consumer advocacy group that opposes the Bill, Consumer Watchdog, has published multiple insurance company documents that are said to show evidence of anti-consumer practices and direct repair programs (DRPs) that do not really help consumers. In fact, one contract between an insurance company and its desired group of body shops revealed that the auto body shop was being pressured into maintaining lower costs, at the expense of having their contract terminated if they did not comply.

The executive director of Consumer Watchdog said that these questionable contracts create “reverse competition.” Instead of competing for customers, body shops are fighting for insurer referrals, which are ultimately determined by the shop’s capability of cutting its rates, thus leading to poor auto repair work stemming from those cut-rate prices. In addition, another document revealed that a body shop was reprimanded for using more factory parts than an insurance company preferred. Also, it was recommended by the insurance company that the body shop use more after-market parts to lower costs.

Continue reading "California Steering Bill Drives Off the Beaten Path: Senate Does Not Approve" »

Thousands of consumers rely on auto repair shops to help them get their vehicles back up to par, but some consumers do not realize that they have the right to choose which shop to go to. Apparently, according to a Connecticut Attorney General, there are a number of auto insurers displaying questionable behavior, requiring consumers to go to particular body repair locations that auto insurers deem acceptable. In opposition to the notion, the regional manager for the Property Casualty Insurers Association of America (PCI) has said that these claims are not accurate.

So what should consumers do? The simplest answer is that consumers are not obligated under any law to go to a certain car repair service; it is your right as a consumer to make that decision. However, the recent challenge against insurer practices raises the question of whether or not laws have in fact been violated, and for how long these violations have been taking place. Essentially, consumers may have been fooled into believing that the decision is not within their power. One of the accusations being made against insurance companies is that they are not adhering to a 1963 consent decree.

Connecticut’s Attorney General stated, “Almost 50 years later, insurer steering is still a scourge…this outpouring of complaints shows that problematic practices persist.”

As the federal government works with state officials to look deeper into the matters surrounding these possible deceptive business practices, it can’t hurt for consumers to be suspicious of suggestions pertaining to body shop referrals made by their insurer. When getting your vehicle repaired, no matter what a shop’s reputation, it is important to do your research and be aware of common forms of car repair fraud in California so that you don’t become a victim of it.

Continue reading "Insurance Procedures for Auto Repair in Question: Where Should Consumers Go?" »

A recent article from searchautoparts.com reported that more and more cases of auto insurance fraud have been committed across California, perhaps brought on by the downtrodden economy. In fact, the California Department of Insurance (CDOI) reported a 25 percent increase in the number of suspected vehicle arson fraud cases from 2007 to 2008 and a rise in auto theft fraud referrals as well.

A CDOI Commissioner stated, “Many Californians are facing a host of financial challenges in today’s economy, but I want to remind everybody that you will only compound your problems if you break the law and commit fraud in search of a quick fix…our enforcement experts are working hard to crack down on anyone attempting to skirt the law for financial gain.”

The CDOI Commissioner said that enforcement officers examine every case brought to the Department’s attention and that referrals have been received from local law enforcement agencies, directly from consumers, and from insurance companies. The department obtained almost 300 more suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007.

Continue reading "California Auto Insurance Fraud Has Made a Notable Increase" »

We informed our readers when the Car Rebate Allowance System (CARS) program under the management of the National Highway Traffic Safety Administration (NHTSA) was launched, but no one could quite calculate its paramount affects. It didn’t even take a complete week for car dealerships to receive a flood of consumers that soaked up the $1 billion financial plan’s set-up for “clunkers” to be exchanged for vehicles with more fuel efficiency. Who could blame them? Having the chance to save money in the long run with a more environmentally friendly car by obtaining $3,500 or up to $4,500 rebates is quite irresistible.

Based on a recent report, in response to positive feedback of the program, on June 31, 2009, the House granted $2 billion more for CARS, giving more consumers the chance to join in. It’s not certain at this time how long the new funds will last, but while they do, it is bound to make lots of consumers happy now and for a good amount of time into the future.

From what we have seen up until this point in the year, auto sales in the United States have been extremely low; however, with the overwhelming response and utilization of the CARS program, auto sales have been the highest for 2009. Although this is an exciting fact that has been quite an asset to the auto industry, car fraud may be an issue for concern in some rebate sales and it is something that hopefully consumers can avoid experiencing.

Continue reading "Cash for Clunkers Car Rebate Allowance System Re-Fueled by Additional Funds " »

A body shop owner and the shop’s manager have been arrested for their role in a series of alleged car repair frauds in California. This article said that according to California insurance commissioner Steve Poizner, the two men arrested on July 1, 2009, were charged with multiple counts of auto insurance fraud. Both the 52-year-old owner and the 32-year-old manager were held on a $50,000 bail.

"Insurance fraud costs everyone money when it's passed on to consumers in the form of higher rates," says Poizner. "If you defraud an insurance company, the Department of Insurance will find you and help prosecute you."

The men were charged as a result of a California Department of Insurance Urban Auto Fraud Task Force investigation in conjunction with Farmers Insurance. The insurance company conducted inspections of repair work performed by two Choice Auto Body repair shops in Newark and Santa Clara. The 52-year-old defendant was the owner of both shops and the 32-year-old was the manager of the Santa Clara shop. After conducting 28 inspections of repairs the shops performed, the insurance company found that the shops had overbilled the company for repairs on 20 of the vehicles.

The two men allegedly repaired old parts but billed the insurance company for new parts or used parts of inferior quality in the repairs. The insurance company estimates that the alleged fraud cost them thousands of dollars. The car repair fraud case is currently being prosecuted by the Santa Clara District Attorney’s Office.

Although Farmers Insurance was the victim of the car repair fraud in this case, thousands of Californians are the victims of car repair fraud every year. Most victims of car repair fraud are unaware they have been victimized as this type of fraud can be easily hidden.

Continue reading "Body Shop Owner and Manager Arrested for Auto Insurance Fraud" »

A recent story in The Wall Street Journal’s Marketwatch highlights the growing problem of car dealerships that fail to forward consumer payments. During the economic downturn, more dealerships are failing to pass on consumer payments for taxes, title fees and other costs. In some cases, dealers are refusing to fulfill their obligations to pay off the remaining balance on trade-in cars, making consumers responsible for thousands of dollars in hidden costs.

Although car dealer fraud is not a new phenomenon, the economic situation has contributed to these activities. According to figures cited by the news story, the California Department of Motor Vehicles has seen the number of open cases against dealers for failing to transfer customer payments double since the beginning of 2007.

Why do car dealerships fail to pass on consumer payments? While a small percentage of dealerships may actively withhold customer payments out of a desire to commit fraud, in times of economic difficulty, plummeting cash flow may contribute to a number of these cases. If a dealership finds its flow of ready cash dwindling, anxious creditors may freeze the dealership’s funds.

Given this problem, a strange Catch-22 arises for California car buyers. Although many troubled dealerships are offering incredible discounts for new and used vehicles, these very same dealerships are the ones most likely to be unable to forward your taxes, title fees and other costs. Thus, a great sticker price could deliver a nasty surprise after the sale is complete.

For struggling dealerships, this situation can lead to a downward spiral as concerned consumers stay away from deals offered by troubled car sellers, which chokes off their cash flow and leads to the dealers being unable to pass on consumer payments.

Continue reading "Dealers Not Passing the Buck in Hard Times" »

One scam that is commonly encountered in both new and used car sales is the forced warranty. Basically, the dealer tells the buyer that financing for the car will not be approved unless the buyer purchases an extended warranty. Usually this is passed of as protection for the buyer should anything go wrong with the car. What the dealer isn't telling you is how much profit he or she is making on the deceptive business practice deal.

Extended warranties are huge money makers for car dealers. In an interview with the New York
Times, Consumer Reports automotive editor Rik Paul revealed that extended warranties for new
cars are "major profit centers" for auto dealers. Even worse, when buyers fall for this unfair
business practice, the warranty charges are often rolled into the financing arrangements. This makes it difficult to tell exactly how much the warranty really costs, and the extra cost hits their wallets again and again throughout the lifetime of the loan.

Continue reading "Forced Warranty Scam" »

Family Feud over Online Honda Sales

For years, the owners of Saccucci Honda (located in Middletown, Rhode Island) struggled to compete with behemoth dealerships, such as Boch Honda, the most famous Southern New England Honda dealership. The owners of Saccucci Honda, an 83-year-old grandmother and her two adult (50s) daughters, were using traditional means to drum up business – to little success. Then the family struck upon a brilliant idea -- empower a grandson of the clan, computer geek and entrepreneur Gardiner Reynolds, to sell extended warranties over the web at sites like www.hondapartsdealer.com and www.myhondawarranty.com.

Gardiner’s intuitive plan helped put Saccucci Honda on the map. By leveraging the power of the web and implementing unique and cost-effective strategies to optimize volume, Reynolds stole business from much bigger dealerships that felt were the victim of an unfair business practice.

Saccucci Honda's success online did not sit well with all members of the extended Honda family. The company's National Dealer Advisory Board voted to stop Saccucci Honda from selling volume-extended service contracts over the web. But the “Little Dealership That Could” fought back and got a restraining order, and the internecine battle continued.

If you’ve been having difficulties dealing with an automobile dealership, mechanic shop, or online retailer, you do have options. Trust the law offices of Howard D. Silver to unpack your legal alternatives and help you develop a strategy to recover damages lost due to unfair practices, unethical conduct, fraud, or defective products. Howard Silver and his California unfair business practice attorney colleagues have fought and won complex cases for decades, and we have the resources and experience to help you get a square deal. Contact us today at 1-866-495-3666 for a free analysis of your legal options.

Fife, Washington Dealer Violates Lemon Law Resale Rules

McCann Motors, a used car dealer based in Washington State, was recently dinged by the WA Attorney General's Office for selling Hummers and Escalades to over six dozen customers in a violation of rules regarding lemon law disclosures. The dealership originally purchased the vehicles under a California Lemon Buyback Law. However, through deceptive business practices, McCann Motors failed to notify buyers of potential defects or to provide disclosure notifications.

A settlement was reached in which the dealership paid out approximately $12,000 to cover the costs and fees associated with the customers’ suit. Doug Walsh, a consumer protection advocate, went on record saying that the people who bought these used Cadillac Escalades and Hummers probably paid significantly more for their used vehicles than they would have, had they been allowed to review the Lemon Law disclosures.

According to Washington state law, used car dealers must place yellow flyers in the windows of trucks or autos that reveal previous defects or damage done to the vehicles. This is because said damage may portend mechanical problems to come and can influence insurance costs and the future selling value of the vehicles.

If you've been defrauded by a used auto dealer and you want legal assistance to get compensation, look to the expert California auto lemon law attorneys at the law offices of Howard D. Silver. We're a results-driven law firm with a plethora of experience handling Lemon Law cases. Whether you lost money as a result of a dealer’s failure to disclose defects or you or a family member suffered injuries as a result of faulty parts or bad service or maintenance, you may be entitled to monetary compensation. Browse www.california-lemon-law-blog.com for more information, or call/e-mail to get a free assessment of your legal options.

McCann Motors, a Cadillac, Hummer and Saab auto dealer based in Fife, Washington, is being investigated by the Washington Attorney General regarding cars the dealership bought at a California auction after the vehicles were flagged as having possible auto defects. According to an article in the Business Examiner, the state Attorney General accused the dealership of selling the defective vehicles without providing all of the disclosure documentation mandated by state law. The investigation involved 79 cars that were bought in California and resold in Washington.

State attorneys and dealership officials reached an agreement in which the dealership agreed to pay $12,000 in fees and contact buyers to resolve the matter – all without admitting any wrongdoing. While those who purchased the vehicles signed paperwork that included notices that the cars had been repurchased under a California Lemon buyback law, the extent of the notification did not apparently include all the disclosures required by the law in Washington State.

Used car fraud is forbidden in this state by the California Consumer Legal Remedies Act, which prohibits used vehicle dealers from using unfair and deceptive business practices to sell their products. Not disclosing that the car is a “lemon buyback” or that the original owner returned the vehicle for a refund is a common type of used car fraud.

Victims of used car fraud in California should approach the dealer first for a resolution of the problem relating to the contract or warranty. If you are not successful with the dealer you may have to file a lawsuit to get your money back. In a used car fraud lawsuit, you may be able to recover the cost of the car, cost of repairs, rental car coverage, attorney’s fees or any other expenses related to the lemon vehicle. If you or someone you know has been a victim of used car fraud, please call the Law Office of Howard Silver for a free consultation.

A series of investigative articles by ABC News is revealing that despite a study pointing to a mounting number of deaths and injuries attributed to old and aging tires, the federal safety agency, National Highway Traffic Safety Administration (NHTSA) has not done much about warning consumers about the dangers of these tires and the deceptive business practice of them being sold by major retailers such as Wal-Mart and Sears. According to this report, tires as old as 12 years are being sold as new.

The problem with aging tires is that as they get old, they can dry out and become brittle leading to catastrophic tire tread separations. When a tire tread separation occurs, it usually ends up in serious auto accidents because it causes the driver to lose control of the vehicle. It is a serious safety issue – what experts call “a ticking time bomb.” But NHTSA apparently refused a request from Ford Motor Co. to impose a six-year shelf life on tires. A private safety research firm called Safety Research and Strategies has so far tracked 167 vehicle crashes that may be attributed to old tires causing 192 injuries and 139 deaths.

What we need at this time is for our retailers to stop stocking these old, dangerous tires in their stores. These are defective products that must be taken off the shelves before they can cause more harm, injury or deaths. What is even more dangerous is that consumers are completely unaware about the dangers of these aged tires.

If you or someone you know has been stuck with a defective auto or a lemon, call the California Lemon Law lawyers at the Law Office of Howard Silver for a free consultation.

In an example of the type of protection California’s laws attempt to provide consumers from unfair and deceptive business practices, a Santa Cruz County Superior Court judge ruled that U-Haul engaged in “unlawful and fraudulent business practices” when they advised agents to book reservations of trucks and trailers without knowing if it will have the equipment available when and where customers need it.

In his class action ruling, Judge Stevens declined to award monetary damages to U-Haul customers but ordered the rental giant to stop promoting “confirmed reservations” for one way moves in California. U-Haul agents have long been instructed to accept every reservation – a policy known to employees as “just say yes”, and although the company almost always supplies the equipment (98% of the time according to U-Haul representatives), the customer may face long waits or have to travel long distances to pick up the rentals.

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