Odometer Fraud and Rollbacks

Auto fraud laws were enacted to protect consumers from unscrupulous practices and schemes that can affect not just consumers’ pocketbooks, but their safety as well. You might think that electronic odometers make rollbacks more difficult. Unfortunately, the opposite is true. The National Highway Traffic Safety Administration (NHTSA) witnessed an escalation of odometer fraud between 2002 and 2005, and the trend shows no sign of slowing. The agency attributes the uptick to “new car prices, coupled with the increased demand for late-model, low-mileage used cars, [which have] made odometer fraud more profitable than ever.” The bottom line? Consumers are being scammed to the tune of well over $1 billion per year due to odometer fraud.

Federal regulations state that it’s illegal to disconnect, reset, or alter a vehicle’s odometer reading. In addition, the seller or lessee of any vehicle that is less than 16,000 pounds and under 10 years old must accurately disclose the vehicle’s mileage. That’s pure common sense. After all, you certainly would expect to pay more for a vehicle with 20,000 miles on it than you would if the same vehicle had 80,000 miles on the odometer.

How can you tell if you’ve been the victim of odometer fraud? One way is to check the vehicle’s repair history, either through a dealership or through a service like CARFAX. Odometer readings are duly noted when a car is serviced – even if it’s for an oil change at a place like Jiffy Lube. Another way is to contact your state’s motor vehicle department (or those in other states if the vehicle has been transferred between states) and request copies of title and registration documents for the vehicle.

If you’ve been victimized, you do have recourse. The law specifically gives consumers the right to sue if the person or entity that sold you the vehicle changed the odometer reading or falsely reported it in an attempt to defraud you. The law allows you to sue in either state or federal court, which can result in an award of $1,500 or three times the monetary damages you suffered, whichever is greater.

If you’re planning to file suit, proving odometer fraud can be tricky, and an auto fraud attorney has the tools necessary to successfully navigate those waters. It’s important to consult with an attorney, and Lemberg & Associates attorneys are experienced in auto fraud cases, and will help you get justice from an illegal auto fraud sale.