Auto Fraud, Lemon Law and Warranty Issues

Auto fraud can take many forms. Dealerships may misrepresent the vehicle or fail to disclose prior collision damage. They may fail to honor warranties, or sell a new vehicle with mechanical defects. If you purchased a defective used vehicle with a warranty or service contract, you may have the right to revoke acceptance of the vehicle and dealer arranged financing. If you have experienced any of these problems, you need to contact us for a free consultation.

  • Rebuilt Wrecks and Salvaged Vehicles. The most common and severe auto fraud occurs when a dealer sells a rebuilt vehicle that has been crashed, damaged, or was perviously salvaged. Many times these vehicles are sold as “certified preowned vehicles” that supposedly were thoroughly inspected. Auto dealer engage in auto fraud when they sell a vehicle they knew or should have known had significant prior collision damage, but they fail to disclose the prior damage. It may be difficult for a consumer to discover they are purchasing a previously wrecked vehicle, although an experienced professional or our auto fraud expert will have little or no problem discovering prior collision damage. A consumers might begin to notice frequent and recurring mechanical issues, but may not discover the prior wreck damage until informed by a mechanic, it is revealed in a vehicle history report, or they are informed when they try to trade the vehicle in and find out it is worth far less than the consumer thought. Of particular concern are vehicles sold with significant safety issues such as defective air bags or structural issues. There have been cases where deployed air bags were replaced by stuffing the air bag compartment with newspapers. If you are in a collision, you do not want your vehicle delivering your newspaper–you would prefer a working air bag. If you find your vehicle has significant undisclosed collision damage, contact the Johnson Law Firm for a free initial consultation.
  • Warranty Issues. The dealership must make adequate repairs under a warranty that covers those repairs. The salesperson may unknowingly create additional warranties when making statements about the vehicle’s condition or fitness for a particular purpose. The Magnuson-Moss Warranty Act is a federal law protecting consumers, including consumer’s with auto or recreational vehicle warranties that are not being honored. The Johnson Law Firm may be able to assist any owner of a defective Winnebago regardless of the state you live in.
  • Odometer Rollbacks and Odometer Fraud. Odometer fraud occurs when dealerships fail to disclose an odometer reading or the disclosure is not the actual mileage of the vehicle. Dealerships may also rollback the odometer in order to sell the vehicle for a higher price.
  • Lemon Law. Motor vehicle manufacturers must provide vehicles that are free of defects and conform to the requirements set forth by the manufacturer’s written warranty. The Lemon Law protects purchasers when their new vehicle suffers from defects and immediate, recurring problems. In warranty cases and particularly in lemon law cases, there are hoops a consumer must jump through before having a claim. In particular the dealer/manufacturer must be given reasonable opportunity to repair the vehicle and certain WRITTEN notices must be given. If you think you have a lemon law claim, or if you are experiencing problems and you might have a lemon law claim in the future, you should go to the web site of the Iowa Attorney General for more information and for forms for required letters. Keep in mind that failing to provide required letters to the manufacturer giving it a final opportunity to repair the vehicle will defeat a lemon law claim. If the manufacturer has a “certified” arbitration program, you must first avail yourself to that program before filing a lawsuit in district court. The Johnson Law Firm will do a free initial consultation with you to assist with your Lemon Law claim.
  • Illegal Repossessions. Illegal repossessions are common and involve a variety of complex situations and legal issues. Please go to our Automobile Repossessions page for more information.