Expert: Jack Toomey - 5/29/2008

Question
Greetings, Jack! Thank you, in advance, for your feedback. I'll give you the Reader's Digest (condensed) version of the story and get straight to my question.

2 years ago, I purchased an 03 BMW 325i from a used car lot, that is prominent and only sells high-end cars. I was  given a Carfax report, which showed MINOR damage. I later learned thru a Auto-check report (similar or affiliated with Carfax) that my car was reported to the AUCTION as SEVERELY FRAME DAMAGED. This was NEVER disclosed to me. I investigated the previous one owner and located her in New York. I called and got a copy of the acc. report......very minor rear end damage. I even called the woman that owned it and her story matched. When u look under the car, it is obvious that there was front end damage..........the repair was halfway done. This dealership is NOT registered with the BBB and already has 14 complaints against them. They have changed names, but still operate the same type of business and at the same location. They bought the car from auction for about $8K and sold it to me for $26K....full price! I have documentation showing the Carfax report, dated two years ago that they gave me. I have the 2nd report, from a different car lot that shows the documented SEVERE damage. Is there a statute of limitations, in Georgia, for fraud? They clearly defrauded me, as they knew the car was sold, and reported as damaged by the auction. I have that in writing. I do not know which auction they used......yet. Thoughts? I have been lied to and fraud is obvious, because they knew!!!!! They intentionally led me to believe there was no other damage. Yes, I asked.

Any thoughts on next step?

Many thanx in advance!!!!!!!

Answer
Deidre,

  Let me start out by telling you that I have never been in Georgia in my life except to pass through on the way to Florida so I have no idea about their laws, statute of limitations, etc.

   I can tell you that if this scenario had played out in MY state (and of course you know that the law is different in every state) that if the state could show that the dealership had engaged in a continuing course of conduct to defraud people by these same actions then it would be against the law and someone would be arrested.  If it happened one time and the state could prove that they took these actions with the express intent to defraud YOU then it would also be against the law.  But then again YOU might be told that it is a civil matter since it involves a contract.  Not every "fraud", as perceived by the buyer, is against the law.

  I don't see where you have been in touch with the authorities in your state.  I would recommend that you do that since for all you know that these people could have been arrested before or are already under investigation for the same type of activities.

   Now please do NOT be telling the Georgia police that I said that this was against the law.  I am telling you what would most likely happen in MY state.