Legal Question in Consumer Law in Utah

Auto Dealership raided for drugs and money laundering after vehicle purchase.

In April of 2003 I purchased a vehicle from a dealership in Utah. Two weeks after I made the purchase, the dealership was shut down for drugs and money laundering. I found out that the used vehicle that I purchase was on consignment. The title owner did not have a consignment agreement with the dealership. I financed the entire amount of the vehicle with sales taxes, extended warranty and a gap coverage insurance plan with a bank in Utah.Here is the current standings. Dealership is awaiting for trial for drug and money laundering charges. There are two cases against them, one from the Federal Gov. and one from the State of Utah. Title owner of the vehicle lives in Utah, and has not received the money due to him for the sale of his vehicle. I have a contract with a Bank in Utah. Dealership collected all the funds from the bank and never redistributed the funds properly. Extended warranty company was never paid. I was never reimbursed the money for sales tax. Gap coverage plan was never paid. Now the Bank has attatched a charge off to my credit report, although I have been paying the monthly payment.Does this fall under consumer law? I have been victomized as an innocent consumer. What steps should I take to resolve these issues?


Asked on 12/27/03, 12:41 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Auto Dealership raided for drugs and money laundering after vehicle purchase

It does not make sense that the bank would charge off your account if you made timely payments. You should contact the bank to see if they are going to enforce the loan against you. The bank may have had some sort of deal with the dealer, and may have contingent liability. You have a complicated matter here and should consider getting an attorney who can assist you in negotiating and perhaps suing the dealer (he may have a bond against which you can recover some of your loss) as well as working something out with the true owner of the car.

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Answered on 12/27/03, 1:37 pm


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