Odometer Fraud

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Odometer fraud is a type of auto fraud that involves tampering with the odometer so that its reading is less than the actual mileage of the automobile. Odometer fraud can also refer to a failure to disclose the fact that an odometer has exceeded its mechanical limits. For example, the car shows 55,000 miles on the five-digit odometer, but the car has really traveled 150,000 miles.

The Federal Trade Commission recently improved the protection of this law by increasing the minimum damage amount for proven violations to $10,000.00. This will make it more advantageous for consumers to enforce the law than the old $1,500 minimum amount. Hopefully, the $10,000 amount will also discourage dealers from rolling back odometers.

Federal and state laws regulate what mileage information must be available to the consumer and how that information should be disclosed. The law also requires that the disclosure be made on the title, if available. The law is designed to allow the consumer to actually see the title. However, auto dealers frequently do not allow their customers to see the title even when it is available. The automobile history is hidden from the customer.

Other Types of Auto Dealer Fraud

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