Consumer Protection · Auto Fraud
Auto Fraud
California dealer fraud — CLRA · Song-Beverly · Vehicle Code 11713
California has some of the strongest consumer-protection laws in the country when it comes to car dealers. Undisclosed accident history, rolled-back odometers, unauthorized add-ons, contract switches, curbstoning, and 'yo-yo' financing may raise legal issues. Available remedies depend on the conduct, applicable statute, proof and procedural requirements.
Background
What this litigation is about.
California regulates auto dealers through a dense set of statutes designed to protect buyers. The Consumer Legal Remedies Act (CLRA) prohibits deceptive practices in consumer transactions and allows recovery of actual damages, punitive damages, and attorneys' fees. Song-Beverly (California's 'lemon law') provides remedies when a new or certified pre-owned vehicle can't be repaired within a reasonable number of attempts.
The Automobile Sales Finance Act (Rees-Levering) governs installment contracts and requires strict disclosures — a defective contract can be rescinded and financing charges recovered. Vehicle Code § 11713 lists prohibited dealer conduct, including failing to disclose prior damage, rolling back odometers, and misrepresenting vehicle history.
Common fact patterns include prior-accident non-disclosure (often surfaced through Carfax/AutoCheck comparisons), 'yo-yo' financing (dealer calls the buyer back weeks later demanding a higher rate or a different car), backdated contracts, forged signatures, packed add-ons (GAP, service contracts, theft deterrents) the buyer never agreed to, and curbstoning by unlicensed sellers.
Reported injuries
Reported concerns and potential losses.
Undisclosed accident or salvage history
The dealer failed to disclose prior collision damage, frame damage, or a salvage/rebuilt title.
Odometer rollback
The mileage on the dashboard or contract does not match the vehicle's actual history.
Contract swap / yo-yo financing
The dealer changed the deal terms after you drove the car home.
Packed add-ons
GAP, service contracts, or theft-deterrent products added to the contract without your agreement.
Forged or altered documents
Signatures, income figures, or trade-in values changed without your knowledge.
Curbstoning
An unlicensed seller flipping cars while pretending to be a private-party seller.
Individual review
Facts that may be relevant.
You bought a vehicle from a California-licensed dealer (new or used).
You have your sales contract, financing documents, and any window-sticker or Carfax on hand.
You have identified a specific misrepresentation, omission, or contract defect.
Transaction and discovery dates must be reviewed under each potential claim’s rules; do not assume a four-year filing period applies.
Compare what was promised with what was signed
A disputed charge or disappointing purchase is not automatically fraud. The wording of the representation, what the dealer knew, the contract, and the resulting loss all matter. Possible issues worth documenting include:
- Concealed taxi, Uber, Lyft or other commercial-use history where the representations and applicable disclosure rules support a claim.
- Inflated vehicle license or registration fees: compare the contract charges with receipts and DMV records.
- Undisclosed lemon-law buybacks, warranty returns or branded titles; the required disclosures depend on the vehicle history and law.
- Title-transfer or registration problems that prevent normal use, sale or proof of ownership.
- Refusal to honor a written warranty or a misleading advertised price; preserve the actual terms and communications.
- Keep dated advertisement screenshots, messages, each contract version, add-on forms, payment records and inspection findings.
Key events
A timeline of what has happened so far.
1970
California Consumer Legal Remedies Act enacted (Civ. Code § 1750 et seq.).
1970
Automobile Sales Finance Act (Rees-Levering) enacted (Civ. Code § 2981 et seq.).
1970
Song-Beverly Consumer Warranty Act enacted (Civ. Code § 1790 et seq.).
Ongoing
California Vehicle Code § 11713 regularly amended to expand prohibited dealer conduct.
Frequently asked
Questions answered plainly.
This page is for general information only, is not legal advice, and does not create an attorney-client relationship. Case statuses, MDL orders, and settlement terms change; call our office for a current review of your specific situation.
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