Legal Question in Consumer Law in California

Auto Dealer Fraud

I bought a car from a dealer after going to an auction with him. I paid cash for the car. After 90 days, I called the dealer back since my title and plates had not arrived. I then filed a complaint with the DMV. I was refer to an investigator who informed me that this dealer failed to pay the flooring company thus the lienholder was still the flooring company. This dealer has done this more than once (who knows how many).

What are my rights? what can I do to protect them? should I be very worried? Do I have a case to claim title since I have proof of payment?

Thank you in advance.


Asked on 10/02/08, 8:09 pm

1 Answer from Attorneys
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Auto Dealer Fraud

It's a complicated area of the law, but - assuming he was a retailer and not just a wholesaler - you should be fine if you can show proof of payment. You may have to apply for a duplicate title or engage in some other red tape before you can get registration, but you should ultimately be okay. If you paid less than the full purchase price for the car, that will complicate things a little but it should not result in you losing the car or having to pay twice.

Good luck!

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Answered on 10/02/08, 8:14 pm


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