Articles Posted in Auto Fraud

Buying a used car is always a risky business. You can never really know what the car went through in the hands of previous owners. In order to put customers’ minds at ease, car dealerships started offering “certified pre-owned” vehicles. The “certified” label is supposed to ward off consumers’ suspicion by providing a guarantee that the vehicle had to pass an inspection before going up for sale again. In exchange for this peace of mind, certified pre-owned vehicles are usually sold for a much higher price than a standard used car. But what exactly does this inspection consist of?

It turns out there are currently no legal requirements for selling a certified pre-owned vehicle. Instead, each manufacturer and car dealer has its own requirements, which can range from a 32-point inspection to a 300-point inspection. Continue reading ›

No sooner does Toyota recover from the fallout of its defective brake lawsuits, then the company is faced with more consumer class action lawsuits. This time consumers allege the company installed defective dashboards in its automobiles that melt when exposed to the sun over long periods of time. The lawsuits allege that the melting dashboards took on a glossy surface that limited driver visibility. The lawsuits also allege that, because the damage took place over time, the drivers were not made aware of the defect until after the warranty on their vehicles had already expired, leaving them to pay for Toyota’s mistake.

The most recent lawsuit against the car company was filed by Melissa Graham in South Carolina and includes model years 2007 through 2009 Camrys, as well as 2006 through 2008 Lexus IS and ES vehicles. Another lawsuit dealing with the same defect had already been filed in Florida, but that lawsuit deals only with the Lexus models. Continue reading ›

When buying a car, there are many aspects to consider before deciding what to buy. Aside from cost, car buyers tend to be most concerned with safety and performance. No one wants to drive a car they don’t feel safe in. The reputation of the company making the car is also a factor, but when a car company sacrifices the safety of its vehicles to maintain its reputation, it can lose big in the long run.

Such is allegedly the case with GM, which, according to a recent class action lawsuit, allegedly failed to recall faulty vehicles the company allegedly knew were unsafe to drive. The lawsuit accuses GM of being overly concerned with cutting costs and making a profit, a factor that allegedly resulted in the neglect of the safety of its cars.  GM denies the claims.

The lawsuit is petitioning the court for consolidation of 68 cases from around the country on behalf of owners of newer-model GM cars. The lawsuit is seeking compensation for car owners for the lost value of their cars that allegedly resulted from the safety issues coming to light. According to the complaint, the “new GM” that emerged after the 2009 bankruptcy “produced an inordinate number of vehicles with serious safety defects,” which it allegedly ignored until 2014, when it recalled about 27 million vehicles in the United States.

The lawsuit only covers cases of alleged economic loss involving cars bought or leased after July 10, 2009, the day GM emerged from bankruptcy, because the company’s restructuring agreement protects it from liability claims that stem from incidents before that date. GM is currently petitioning Judge Robert E. Gerber, who presided over the company’s bankruptcy proceedings, to enforce that provision by dismissing the pre-bankruptcy cases. Continue reading ›

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