Sand Car Association pays $600,000 for illegal vehicle sales
Penalties apply to 37 manufacturers

SACRAMENTO – Last month the California Air Resources Board fined a consortium of sand car sellers $600,000 for its members’ illegal engine and vehicle sales between 2006 and 2008.

ARB investigators found that illegal engines and vehicles were being sold in California by several sand car manufacturers. The penalties from this case apply to 37 members of the newly formed association that were selling uncertified products.

“Industries that cater to off-road enthusiasts must also consider their product’s impact on the environment,” said ARB Chairman Mary D. Nichols. “Uncontrolled emissions from these vehicles add to California’s already serious smog problems.”

As a result of the investigation, most major sand car manufacturers and some engine suppliers located in California formed the Sand Car Association. to ensure that its members build compliant products. The association’s formation has resulted in industry self-enforcement and California certification of three engines for use in sand cars.

For a complete list of the 37 manufacturers included in the settlement, click here.

ARB is still investigating other sand car manufacturers that are producing and selling illegal non-California certified vehicles.

Sand cars are off-road vehicles popular at state and federal recreation areas like Pismo Beach and Glamis Dunes. The Department of Motor Vehicles can revoke registrations of illegal vehicles; therefore, it is important that dealers and purchasers ensure that the vehicles are legal in California.

Clean vehicle engines cut smog-forming emissions and improve fuel economy, reducing harmful greenhouse gases. Smog can cause respiratory problems, including asthma, and effects the lung function growth of children.

The Air Resources Board is a department of the California Environmental Protection Agency. ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

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Car dealership fined $175,000 for installing unapproved aftermarket parts

SACRAMENTO – The Air Resources Board fined Sunrise Ford, a car dealership with outlets in North Hollywood and Fontana, $175,000 last month for illegally modifying 2005 through 2007 model year light- and medium-duty vehicles with an aftermarket device before the vehicles were sold.

The part, called a Fuel Maximizer, is intended to improve gas mileage and performance in cars by changing the flow of air as it mixes with the gasoline before combustion. Discovery of the unapproved parts was made during a routine dealer inspection.

“We expect dealers to follow the law, which requires that certified aftermarket parts only be installed after a vehicle is sold,” said ARB Chairman Mary D. Nichols. “Our air quality can suffer when careless mistakes are made, so we hope this fine sends a strong message.”

It is illegal in the state of California to perform modifications on a new car prior to sale. Modifying car engines can increase harmful emissions and may lead to the vehicle failing California’s smog test.

Per the terms of the settlement, Sunrise Ford will pay a total of $175,000 to the California Air Pollution Control Fund which supports research and programs intended to reduce California’s carbon footprint.

California’s air quality measures are in place to prevent excessive emissions that can negatively affect public health. Ozone, also known as urban smog, can cause difficulty breathing, shortness of breath, coughs, heightened asthma rates, cardiopulmonary ailments and premature deaths.

The Air Resources Board is a department of the California Environmental Protection Agency. ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

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AutoZone Settlement Totals $90,000

SACRAMENTO – The California Air Resources Board reached a settlement with AutoZone West, Inc. for $90,000 in March for selling non certified aftermarket catalytic converters from AutoZone stores in California.

An ARB investigation showed that AutoZone, headquartered in Memphis, TN, sold non-certified catalytic converters from its California stores between January and March of 2009.

“Vehicle emissions are the main contributor of smog-forming pollutants in California,” said Chairman Mary D. Nichols. “Automotive retailers are required to stock products that meet California’s clean air goals.”

As of January 1, 2009, all new aftermarket catalytic converters sold or installed in California must be able to comply with certification emissions standards for five years or 50,000 miles. Manufacturers must first demonstrate through emission testing that the catalytic converters meet the required performance levels and obtain ARB approval before they can legally offer units for sale in California.

AutoZone paid $90,000 in penalties to the California Air Pollution Control Fund for funding projects and research to improve California’s air quality. In addition to the penalties, AutoZone took quick action to remove any remaining non-certified product from its California stores, and it is enhancing its restricted product system to prevent similar violations in the future.

California’s air quality measures are in place to prevent excessive emissions that can negatively affect public health. Ozone, also known as smog, can cause difficulty breathing, shortness of breath, coughs, heightened asthma rates, cardiopulmonary ailments and premature deaths.

The Air Resources Board is a department of the California Environmental Protection Agency. ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

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ARB investigation leads to $1.875 million judgment against Viva Motor Sports, Inc. for selling non-California certified vehicles

Sacramento – Thanks to an investigation launched by the ARB in 2006, the Los Angeles County Superior Court in June issued a $1.875 million judgment against several companies for importing and selling non-California certified motorcycles and off-road recreational vehicles.

Defendants in the case include Viva Motor Sports, Inc., of Los Angeles, along with DEC 26, Inc., BH Motorsports, Inc., Nitro Motorsports, Inc, and their associated businesses, all based in the Los Angeles area.

“There are plenty of great motorcycles that meet clean air standards. Most dealers know this and carry only bikes that have their California smog certificate. Those who try to cut corners put themselves in a lose-lose situation,” said ARB Chairman Mary D. Nichols. “Violators pay penalties and damage their reputations while putting public health at risk.”

The companies will pay a total of $268,000 and the balance of the fine will be stayed, pending no further violations. In addition, the defendants are permanently enjoined from acquiring, offering for sale, or selling uncertified motor vehicles for use, registration, or resale in California and falsely representing that a vehicle is certified.

During routine inspections of area retail establishments in 2006, ARB investigators observed a variety of all-terrain vehicles and on-road motorcycles for sale that were not certified to California’s strict emissions standards. Investigators traced the models to their importers, Viva Motor Sports, and the other cited companies. Hundreds of the vehicles had already been sold to California residents. While many purchasers returned them for refunds, those who chose to keep them are subject to “registration stops” which prevent future registration in California.

Vehicles that do not meet California’s tough emission requirements create higher amounts of smog-forming pollutants, which can then exacerbate respiratory ailments and negatively affect other health conditions.

The Air Resources Board is a department of the California Environmental Protection Agency. ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

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ARB investigation leads to $33,000 judgment against Bay Area dealer of “pocket bikes”
Vehicles were uncertified, illegal to sell in CA

SACRAMENTO – An investigation by the Air Resources Board has led to a $33,000 judgment issued in June by the Alameda Superior Court against Alameda-based Scooter Importers for selling uncertified off-road vehicles and “pocket bikes.”

Despite their resemblance to legally certified motorcycles, these pocket bikes, which are small enough to be picked up and stored in the trunk or back seat of an average car, did not meet State safety or emissions standards for on-road vehicles and cannot be sold in California. All the uncertified vehicles were manufactured in China.

“Breaking clean air laws costs violators money,” said ARB Chairman Mary D. Nichols. “But more than that, it costs millions of Californians their health. These pocket bikes may be cute but they can produce 100 times the emissions of a clean new car.”

Scooter Importers was issued three Notices of Violation for selling the uncertified vehicles. A settlement was not reached, so the case was referred to the Alameda County District Attorney’s Office for prosecution. A judgment was ultimately entered in Superior Court in the amount of $33,000 for Health and Safety Code violations. The Air Resources Board will receive $7,000, while the Alameda County District Attorney’s Office will receive $8,000 and the Alameda County Treasurer $18,000.

In addition, Scooter Importers was permanently enjoined from acquiring, offering for sale, or selling uncertified motor vehicles for use, registration, or resale in California.

Vehicles that do not meet California’s tough emission requirements pose real danger to residents. They create higher amounts of smog-forming pollutants, which can then exacerbate respiratory ailments and negatively affect other health conditions.

The Air Resources Board is a department of the California Environmental Protection Agency. ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

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private party sales

require the owners name on title to match the sellers name

ALWAYS check and verify the sellers ID when making

a private party purchase

the seller must ALWAYS provide a current smog certificate

if the seller is not on title

and there is no smog certificate with the car

BUYER BEWARE

WALK AWAY FROM THE DEAL

new california law ( Jan. 2009 )

imposes seizure and impound rules

on private party sales if the seller is not the owner on title

( You may sell up to 5 private party vehicles per year )

unlicensed car dealers, known as curbstoners

are in a grace period

dmv and local law enforcement have been advised

on this new law

POST ADVISORY from a law enforcement bulletin:

VEHICLE REMOVAL
Vehicle Code Section 22651
Chapter 736 / Assembly Bill 2042

SUMMARY: This new law authorizes a peace officer to
remove a vehicle when the driver is cited for a
violation of acting as a dealer,
manufacturer, or transporter without
the required license or temporary permit
issued by the Department of Motor Vehicles (DMV)
while the vehicle is being offered for sale.

HIGHLIGHTS:
Section 22651 VC was amended
to allow a peace officer
to remove a vehicle after issuing a citation for a
violation of Section 11700 VC,
if the vehicle is being offered for sale.

WHAT THIS BILL MEANS TO LAW ENFORCEMENT:
This new law authorizes a peace officer to remove
a vehicle upon issuing a citation to an individual
who is conducting business as a vehicle dealer for profit
without having a valid license or permit from the DMV
if that vehicle is being offered for sale.

The purpose of this bill is to deter persons from
fraudulently acting as a car dealer
without the appropriate license.
Unlicensed dealers create potential harm for buyers
who purchase vehicles without the protection against
unpaid back fees, unpaid parking tickets,
lack of appropriate smog certificates,
or who unsuspectingly
purchase vehicles that were previously stolen or salvaged.

……………………………………………………..

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Auto Dealer Fraud
Did you know Auto Dealer Fraud is ranked as the number one consumer complaint throughout the nation? Dishonest car dealers are deceitfully swindling average consumers of thousands of dollars. You may be a victim and not know it. For an average consumer it is often difficult to determine whether or not they have been victimized. Since there are so many forms of Dealer Fraud, an average person can easily be defrauded. Auto Dealer Fraud categories include: misrepresentation of title, false advertisement, misrepresentation of vehicle history, financing fraud, packing payments, negative/trade-in equity, contract confusion, and selling prior rental, wrecked, or marked vehicles without disclosure or as new vehicles.

Contract Confusions
Contract fraud is perhaps the most discrete form of auto fraud. Since an average consumer is unaware of the many deceptive tactics that dealers use, they could be bound into paying hundreds of dollars. An average consumer is manipulated through various tricks, including rewriting/backdating contracts; signing more than “one” document in an attempt to charge a higher down payment, higher APR (Annual Percentage Rate), etc.; forging customers’ signatures; failing to provide translations of the completed lease or purchase contract in the applicable language; packing the contract with add-ons such as a service contract, warranty options, and accessories including alarms, GAP insurance, paint/fabric protection, window etching or low jack, items the customers don’t need.

Rewritten Contracts/Backdating: This occurs when a customer does not qualify for financing under initial contract terms. Therefore, the customer may have to consent to increase in down payment, higher APR, etc. in order to qualify for a loan. The dealership deceitfully has the customer sign a second contract with different terms and backdates the second contract with the date of the initial contract, thereby, charging interest for a time period in which the contract is not yet in effect. Not only is the act of backdating illegal, it is also a violation of the Automobile Sales Finance Act (ASFA), which requires that all parties sign one document.

Financing Fraud
Consumers are routinely billed hundreds and sometimes thousands of dollars by fraudulent car dealers. These schemes are designed to extort the highest possible profit from each sale. Dealers use many tactics, including negative equity/trade-ins which a transaction where the consumer is falsely led to believe that the dealership is valuing the trade-in vehicle at the same amount as what is owed. However, in reality the actual cash value of the vehicle in trade-in is less than the amount owed. This difference is added to the cash price of the new vehicle and as a result consumers ends up paying more in taxes and registration. The consumer is also duped when they are told they do not qualify for a loan under the original contract terms and therefore must pay a higher down payment or APR. Often customers end up paying for add-ons (such as alarms, service contracts, GAP insurance, paint/fabric protection, window etching, lo-jack, etc.) that they don’t necessarily need.

Used Car Fraud
Used Car Fraud occurs when the seller fails to disclose prior vehicle history (such as prior accidents, or rentals, etc); misrepresents title (often by selling a “salvage” title); or odometer fraud, where an odometer is illegally rolled back, replaced, or started over.

Negotiating in a Foreign language
California law provides that if a customer negotiates a lease/purchase of a vehicle primarily in Spanish, Chinese, Korean, Tagalog or Vietnamese, the dealer must give consumer a translation of the final contract in the applicable language before the contract is signed.

Odometer Fraud
Odometer fraud is the most prevalent form of auto fraud, resulting in costs of thousands of dollars. Odometer fraud occurs when illegal changes are made to the mileage shown on a used vehicle’s title and odometer. Examples of odometer fraud include roll back, replacement, or having an odometer rolled through all digits and started over.

http://www.carlawyer.com/whatwedo.htm

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BEWARE OF SPOT DELIVERY!
DON’T BE PUT “ON THE SPOT.”

So you purchased a beautiful new car, signed all the necessary paperwork and drove it right off the lot with a big smile on your face. The dealer got you approved on the “spot”. Or so you thought.

A few days or weeks later, the dealer calls and asks you to return to “sign a few more papers”. “Mr. Smith”, they say, “we couldn’t get the car financed and you need to sign a new loan with another bank” or “you need someone to co-sign”, or “give us another $1000 and we can do the deal”, or “Mr Smith, we need to increase your monthly payment to get this done”. The dealer may even have delayed paying off a traded vehicle loan or refused to mail registration papers, all to place additional pressure on the consumer to do as they are instructed or to face dire consequences to their credit.

Sound familiar? It gets worse.

If you refuse, the dealer may threaten to repossess the car, tell you that you have no legal entitlement to keep it or even make you wait for hours at the dealership under some excuse, to wear you down. This situation is most common involving consumers with bad credit, since dealers perceive that such people are vulnerable and easy to take advantage of.

Most consumers assume the dealer is telling the truth and will do whatever the dealer says, resulting in higher payments, additional money being spent over the life of the loan and/or thousands of dollars in increased “hidden” costs. Those who refuse, see their cars repossessed.

What is happening here? It’s a Scam. Dealer Fraud. Unlawful. Illegal. Call it what you will. The industry has given it a name: Spot Delivery, a description which refers to the dealer placing a consumer in a car “on the spot”, to get the sale, only to “yo-yo” them back at a later date for additional funds. Played to perfection, a dealer can reap thousands of dollars in unearned fraudulent gain.

What to know about Spot Delivery: If you signed purchase documents and registration applications and if you obtained insurance for the vehicle, had a new license plate put on the car and/or had your old plate transferred, the car belongs to you.

Spot Delivery happens to unsuspecting consumers throughout the United States. It is very popular with dealers in Pennsylvania, New Jersey and Delaware. If you find yourself in this situation, the chances are good that you have legal remedies available to right this wrong.
Tools to Protect Yourself from Spot Delivery or Dealer Fraud:

* Remember that if you have signed papers, you own the car, regardless of whether the vehicle has been financed.
* Your credit was good or the dealer would not have delivered the car to you at the price you agreed to pay
* A finance document showing payments, deposit, interest rate and other financial items is a binding contract, giving you specific legal rights.
* You own the car subject to making payments only. The dealer cannot change that once you take possession.
* Keep all copies of your paperwork and anything else associated with the sale (including calendars, photographs, advertisements). If the finance manager asks for your papers at any time for any reason, refuse! Keep these documents in a safe place, not the car.
* If you are called back to the dealership to sign additional papers, either do not go or do so in a different car than the one you bought.
* Have a friend or spouse drive you and witness whatever is being told to you. This will prevent the dealer from taking your car as hostage, an all too common happening.
* If a dispute arises with the dealer over the contract and the dealer demands the car is returned, park it in a garage or remote location until the matter is resolved, to prevent it from being taken against your wishes.
* Put together a complete timeline of everything that happened from the time you thought of purchasing the car until the car was taken away. Try to remember specific names of dealership personnel and any statements that were made to you during conversations with the sales and finance staff.
* Keep track of all monies you had invested into the purchase, including registration, insurance, down payment and trade. Never pay cash and always get a receipt!

If you believe you are a victim of a Spot Delivery scam and wish to discuss it with a consumer attorney, call 1-800-LEMON-LAW (1-800-536-6652) or contact us by e-mail. Remember to leave a daytime telephone number where you can be reached. Based on the information you provide us, an attorney will meet with you to discuss your claim. If we do decide to represent you, the process will be cost-free.

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Auto Dealer Fraud FAQ

Q: What is “auto dealer fraud”?

A: “Auto dealer fraud” is a term that describes deceptive and unlawful practices used by automobile dealers, at almost any stage of the vehicle purchase process — from advertising, to negotiation of vehicle pricing and financing terms. Examples of auto dealer fraud include “bait and switch” advertising practices, deceptive inflation of vehicle prices, and failure to disclose information about a vehicle.

Q: How does a “bait and switch” occur?

A: “Bait and switch” sales tactics are a form of false or deceptive advertising, in which a car dealer lures potential buyers to the dealership by advertising one vehicle at a certain price, then tells the customer that the particular vehicle is no longer available before using aggressive tactics to sell a different, more expensive vehicle (or the advertised vehicle at a price higher than the advertised price).

Q: What kinds of things must used car dealers disclose about a used vehicle that is being offered for sale?

A: In most states, car dealers must disclose whether a used vehicle has incurred significant damage in an accident, has been designated “salvaged”, or has been flood-damaged.

Q: What is a mileage “rollback”?

A: A form of auto dealer fraud, a “mileage rollback” or “odometer rollback” occurs when the odometer of a used vehicle (which indicates the total miles the vehicle has been driven) is altered (or “rolled back”) to display a number that is lower than the vehicle’s actual mileage.

Q: How do auto dealer fraud cases differ from Lemon Law cases?

A: Although both involve motor vehicles, auto dealer fraud cases are very different from Lemon Law cases. In auto dealer fraud cases, improper tactics used by a car dealer during the vehicle sale process are the focus, while lemon law cases arise from problems or defects with the vehicle itself.

Q: Should I contact the dealer if I feel that a car salesman committed fraud when I bought a car?

A: You may be required to do so. In many states, you (or your attorney) must contact the auto dealer and give them an opportunity to correct the problem to your satisfaction, before taking any legal action for possible auto dealer fraud. This contact should be in writing, and should clearly illustrate both the problem (i.e. the dealer’s failure to disclose certain financing charges), and what steps you would like the dealer to take to resolve the problem (i.e. a partial refund of the vehicle purchase price).

Q: Can I file a lawsuit for auto dealer fraud?

A: In most cases, yes. If you recently purchased a vehicle and you suspect that the dealer may have committed fraud in the sales process, you may want to speak with an experienced Auto Dealer Fraud Attorney. An Auto Dealer Fraud attorney will evaluate all aspects of your case and explain all options available to you — including filing a lawsuit for your damages — and will work with you to ensure the best possible outcome for your case. Remember that in some states, you are required to contact the dealer and give them an opportunity to correct the problem before you take any legal action.

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good car dealer education helps reduce car dealer license fraud

to file a complaint against a car dealer license holder in california:

http://www.dmv.ca.gov/forms/inv/inv172.htm

to speak with a dmv attorney regarding car dealer license fraud:

www.civilizedlaw.com

to check the current license status of any california dealer:

https://mv.dmv.ca.gov/olinq2/welcome.do

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Douglas man arrested,

charged with acting as

car dealer without license

( CURBSTONER IN CAR DEALER LICENSE SLANG )

November 18, 2009

A 54-year-old Douglas County man was arrested Wednesday on a warrant charging him with selling cars with bogus odometer readings and acting as a car dealer without a license.

Nevada Department of Motor Vehicle’s Compliance Enforcement Division investigators said they had received several complaints alleging William Wilkins was selling cars in which odometer readings were not accurate, and that he was not a licensed car dealer.

Investigators worked with the Douglas County District Attorney’s Office which resulted in Wilkins being charged in a warrant with six counts of obtaining money under false pretenses, one count of concealment of a salvage brand on a title and one count of being an ex-felon in possession of a firearm.

No further details were known about the allegations, or the nature of how the cars were being sold.

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Posted: November 19th, 2009
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