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Fraud at Car Dealerships

Description

The most common ways consumers are deceived

Consultation

The most common ways of deceiving Consumers

  • Inflated price – the price of the vehicle is higher than the average market price or the price set by the Manufacturer for official dealers of the particular brand.
  • The terms of the loan agreement do not match those agreed during the paperwork – a scheme for deceiving Consumers in which documents are substituted during signing.
  • Imposed additional services – under clause 2 of Article 16 of the Law of the Russian Federation "On Consumer Protection", it is prohibited to make the purchase of certain goods (works, services) conditional on the mandatory purchase of other goods (works, services). Accordingly, Insurance policies and various Subscription agreements imposed at a car dealership violate Consumers' rights and are subject to termination.
  • Defective goods – a vehicle purchased at a car dealership must be fit for the purposes of its use and comply with the terms of the Agreement, regardless of whether it is new or used. Information about defects in the goods must be communicated to the Buyer in full and in an accessible form.
  • The vehicle sale and purchase agreement was concluded under pressure – a scheme for deceiving Consumers in which the Buyer pays money to the Car Dealership's cash desk before signing the final Sale and Purchase Agreement, and is later told that the money was paid as a deposit, which is non-refundable if the buyer withdraws from the transaction.
  • Failure to provide complete and accurate information about the goods – used cars are often sold at Car Dealerships with the mileage rolled back (altered odometer readings); in addition, cases of selling cars subject to restrictions on registration actions are not uncommon.

Procedure for legal assistance in consumer protection cases relating to the sale and purchase of vehicles:

Legal analysis

– Review of the available documents in order to identify real legal grounds for satisfying the Consumer's claims.
– Selection of the regulatory and legal framework, as well as case law, for the specific situation, taking into account the particular features of the dispute.
– Determining the position in the case and the work plan.
– A set of measures for collecting evidence, including requests to authorised organisations and state authorities, conducting (where necessary) an automotive technical, handwriting or other expert examination, and requesting written evidence that the Consumer does not have.

Pre-trial dispute settlement procedure

– The procedure, provided for by Law, of approaching the Defendant out of court with a demand to restore the Consumer's violated rights. The Seller is obliged to satisfy the Consumer's lawful demands within 10 days of receiving the relevant application. After this period expires, the Consumer is entitled to recover a penalty of 1% of the claim amount and a fine of 50% of the sum awarded to the Consumer by the Court.

Court proceedings

– Representing the Consumer's interests in Court, carrying out the full range of actions aimed at achieving a positive outcome: drafting procedural documents, filing the necessary motions and involving the necessary persons in the proceedings.

Enforcement of the Court decision:

– Obtaining a writ of execution and subsequently applying with the relevant application to the Bank where the Car Dealership's settlement account is held. The funds are transferred directly to the Consumer's bank details.