《AUTO FRAUD》.pdf

March 15, 2012 American Bar Association Standing Committee on Legal Assistance for Military Personnel AUTO FRAUD ANALYZING THE PURCHASE AGREEMENT AND REMEDYING COMMON FRAUDS by Thomas Domonoske Of Counsel The Legal Aid Justice Foundation 461 Lee Avenue Harrisonburg, VA 22802 (540) 442-7706 I. INTRODUCTION Given the nearly universal need for transportation, almost all people end up purchasing cars at several times in their lives. Most people’s lack of knowledge about cars coupled with this need to purchase a car makes ordinary people prime targets for several types of predatory practices. This risk is significantly increased when the sale is financed by the dealer or a related finance company. Young enlisted people and their families are some of the easiest targets for unscrupulous dealers to abuse. Their relative lack of sophistication combined with a steady income make them prey for economic predators. For car cases, a knowledge of what to look for in the transaction is important because in many cases the legally relevant problems will not be what the consumer complains about. In many cases, the predatory practice will also not be shown on the face of the documents in the consumer’s possession. To fully advise clients about their legal remedies requires understanding the whole process by which car dealers sell and finance cars.