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Accusations of Fraud Against a Car Dealership – What to Learn About it?

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Allen Stewart
Accusations of Fraud Against a Car Dealership – What to Learn About it?

You might be able to file a common law fraud lawsuit if your dealership flat-out lies to you according to the Texas consumer protection laws.


Despite the fact that state laws differ, you must typically prove the following:


  • A material fact from the past or the present was falsely represented by the dealer.
  • The dealer either knew or didn't know that their representation was untrue.
  • The dealer wanted to get you to do something.
  • Based on the representation, you take action.
  • You experience foreseeable losses as a result of the misrepresentation.


Be aware that misrepresentation and fraud have different definitions. For a representation to be fraudulent, the dealer must be aware that it is false at the time it is made. This information is not necessary for misrepresentation.


Failure to disclose claims against a car dealership.


Sometimes you find a defect or other hidden issue with your car after buying it. In general, it is more difficult to prove a fraud claim based on a factual omission. These allegations are frequently referred to as false representation by omission or fraudulent nondisclosure.


You must establish the following according to the Texas consumer protection laws:


  • A duty to disclose important information about the vehicle is owed by the dealer.
  • The information is known to the dealer.
  • The salesperson is aware that if you had access to the information, you would use it to support your decision to buy
  • The dealer keeps that information a secret.


Having to prove that the dealership had a duty to disclose is difficult in this situation. In general, one party to a transaction has no obligation to reveal anything to the other party. You might want to talk to an experienced lawyer in your area about your potential claim because state law varies and there are exceptions.


Bringing legal action against an automobile dealer


Vehicle consumer fraud victims will seek compensation for their losses. You might be able to file a lawsuit if you think you are the victim of auto fraud involving misrepresentation.


In order to give the dealer the chance to address the situation or arrange a consultation with a state consumer protection agency, some states mandate that car buyers make contact with them first.


The following are some potential remedies that the victim might be qualified to pursue based on What is deceptive practice:


  • Giving up the car and receiving your money back (including a full refund of all monthly payments made toward the purchase).
  • Eradicating any remaining loan obligations or obligations, both.
  • Obtaining reimbursement for your legal representation fees and court costs.
  • Obtaining punitive damages for particularly egregious behavior

Get in touch with us


Do make sure to call Allen Stewart if you want to know more about What is deceptive practice and get the best lemon law assistance.


Andrew Richardson is the author of this Article. To know more about What does mileage mean please visit our website: allenstewart.com


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