False or Worthless Warranty Claim

Woman with broken car

A lawsuit claims that a New Jersey-based auto dealer that specializes in high-end used cars sold customers warranties that did not exist and pocketed the thousands of dollars customers paid for them.

The suit alleges that the firm and its employees pushed and sold the warranties to unsuspecting car buyers for years. Some customers claim they only learned the warranties were no good when they tried to use them after their vehicles developed problems.

Complaints about worthless or deceptive warranties are common.

Several laws can be violated,

1) New Jersey Consumer Fraud Act prohibiting deception, unconscionable practices, and fraud,

2. New Jersey Used Car Lemon Law,

3. Federal Magnuson Moss Act.

Call (973) 598-1980 for a Free Consultation on Your Warranty Claim

Business call

Failure to Disclose Prior Lemon

machinery of engineering parts

What happens if a car is declared a lemon.  Many consumers do not realize the vehicle can be resold.  Claims may be fraud

  1. Failure to comply with the Disclosure Statute 

    417-a. Mandatory disclosures by sellers prior to resale. (New York State Consolidated Laws : Vehicle & Traffic)

Some dealers violate the disclosure law which says the following

“Certificate of prior nonconformity by manufacturer or dealer. Upon the sale or transfer of title by a manufacturer, its agent or any dealer of any second-hand motor vehicle, previously returned to a manufacturer or dealer for nonconformity to its warranty or after final determination,  the manufacturer or dealer shall execute and deliver to the buyer an instrument in writing in a form prescribed by the commissioner setting forth the following information in ten point, all capital type:
“IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER OR DEALER BECAUSE IT DID NOT CONFORM TO ITS WARRANTY AND THE DEFECT OR CONDITION WAS NOT FIXED WITHIN A REASONABLE TIME AS PROVIDED BYNEW YORK LAW.” Such notice that a vehicle was returned to the manufacturer or dealer because it did not conform to its warranty shall also be conspicuously printed on the motor vehicle`s certificate of title.
Private Remedy. A consumer injured by a violation of this section may bring an action to recover damages. Judgment may be entered for three times the actual damages suffered by a consumer or one hundred dollars, whichever is greater. A court also may award reasonable attorneys` fees to a prevailing plaintiff buyer.”

businessman signing a contract

A popular fraud in New York is to prepare the required disclosure, but not give the consumer a copy or even forge his name.
See our presentation under the lemon law.

2. Breach of warranty

The disclosure suggests the problem has been corrected but sometimes vehicle problems persist.  Then a claim may be filed.

3. New York Deceptive Practices Statute

Finally a claim can be filed for violation of the New York Deceptive Practices Statute.

Free Consultation on Your New York or New Jersey Undisclosed Lemon and Fraud Claim,  Call (973) 598-1980 

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