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What Should I Do If I’ve Been Scammed by a Car Dealership?


Experiencing car dealer fraud can be a frustrating and stressful situation, especially when it involves significant financial loss or deception. If you’ve been scammed by a car dealership in Texas, knowing the steps to take can help you navigate the aftermath and seek resolution. Here's a comprehensive guide to help you address the issue effectively.

Recognize the Signs of Car Dealer Fraud

Before diving into specific actions, it’s important to identify whether you’ve indeed fallen victim to car dealer fraud. Some common signs include the ones below.

  • Misrepresentation of vehicle details: The dealer might have misrepresented the car’s condition, mileage, or history.

  • Overcharging: You might have been charged more than the agreed price or were surprised by hidden fees.

  • False promises: The dealer might have made promises about the car’s features, financing terms, or warranties that weren’t honored.

Recognizing these red flags is crucial in determining whether you should take further action.

Understand Your Consumer Rights in Texas

Understanding your consumer rights in Texas can significantly empower you when dealing with car dealer fraud. Texas has specific laws designed to protect consumers from deceptive business practices, including those related to automotive purchases. Here’s a breakdown of your rights and protections.

  • Texas Deceptive Trade Practices-Consumer Protection Act (DTPA): This law protects consumers from false, misleading, or deceptive business practices. If a dealership engaged in fraudulent activities, you might be able to file a claim under the DTPA.

  • Right to a written contract: In Texas, all significant terms of a vehicle purchase, including price, financing, and warranties, should be detailed in a written contract. If the dealership failed to honor the terms of the contract or altered them without your consent, this could be a violation of your rights.

  • Right to a vehicle history report: If you purchased a used vehicle, the dealer is generally required to provide a vehicle history report. Failure to do so, or providing a falsified report, could be grounds for a fraud claim.

Familiarizing yourself with these rights can help you better understand the basis for your complaints and improve your ability to seek redress.

Gather All Relevant Documentation

If you suspect car dealer fraud, start by collecting all relevant documents related to the transaction. This includes the documents below.

  • Purchase agreements: Any signed contracts or purchase agreements.

  • Financing documents: Documents related to any loans or financing arrangements.

  • Communication records: Emails, texts, or any written communication with the dealership.

  • Receipts and invoices: Proof of payments made and any additional charges.

Having a comprehensive record of the transaction will support your case when you report the fraud or seek legal recourse.

Contact the Dealership

Your first step should be to address the issue directly with the dealership. Sometimes, fraud may result from misunderstandings or errors that can be resolved through direct communication. Here’s how to approach this.

  • Document your complaint: Clearly write out your complaint and provide specific details about the fraud you believe occurred.

  • Request a resolution: Ask for a specific resolution, such as a refund, repair, or correction of the fraudulent charges.

  • Follow up: If you don’t receive a satisfactory response, follow up in writing and keep a record of all interactions.

File a Complaint With the Texas Attorney General

If the dealership doesn’t resolve the issue to your satisfaction, you can escalate the matter by filing a complaint with the Texas Attorney General's Office. Here’s how to proceed.

  • Visit the Attorney General’s website: Go to the Texas Attorney General’s website and navigate to the consumer protection section.

  • Submit a complaint form: Fill out the online complaint form with detailed information about the car dealer fraud.

  • Provide documentation: Attach copies of all relevant documents to support your complaint.

The Attorney General’s office can investigate the issue and potentially take legal action against the dealership if they find evidence of wrongdoing.

Seek Assistance From Consumer Advocacy Groups

In addition to government agencies, various consumer advocacy groups can provide support and resources for victims of car dealer fraud. These organizations often offer advice and assistance with filing complaints. Consider reaching out to the following types of organizations.

  • Consumer protection agencies: Local or national agencies focused on consumer protection can offer guidance and resources. They might also assist in mediating disputes between consumers and dealerships.

  • Non-profit organizations: Nonprofits dedicated to consumer rights can provide educational resources and advocacy support. Look for organizations focusing on automotive fraud or general consumer protection.

  • Automobile associations: Associations like the American Automobile Association (AAA) sometimes offer resources or advice related to automotive purchases and fraud. They may also have insights into reputable dealerships and common fraud practices.

These groups can provide valuable assistance in navigating the process of addressing car dealer fraud and may help amplify your voice if you need to take further action.

Report the Fraud to the Better Business Bureau

The Better Business Bureau (BBB) can also be a valuable resource in addressing car dealer fraud. Here’s what you should do.

  • Find the Dealership’s BBB profile: Search for the dealership on the BBB website to see if they have a profile.

  • File a complaint: Submit a formal complaint through the BBB’s online portal.

  • Monitor the resolution: The BBB will forward your complaint to the dealership and work to mediate a resolution.

The BBB’s involvement can sometimes prompt the dealership to address the issue more promptly.

Notify the Federal Trade Commission

The Federal Trade Commission (FTC) oversees a wide range of consumer protection issues, including car dealer fraud. Here’s how to notify the FTC.

  • Visit the FTC website: Go to the FTC’s complaint assistant page.

  • Submit a complaint: Fill out the online form with details about the fraud.

  • Include evidence: Attach any relevant documentation to support your claim.

While the FTC doesn’t resolve individual disputes, they use the information to monitor and address broader patterns of fraud.

Seek Legal Advice

If the above steps don’t resolve the issue, it might be time to consult with a lawyer who focuses on consumer protection or automotive fraud. Here’s how to approach this.

  • Find the right attorney: Look for attorneys with experience in handling car dealer fraud cases in Texas.

  • Consult for free: Take advantage of the fact that many attorneys offer free initial consultations to discuss your case.

  • Prepare your case: Provide your attorney with all relevant documents and information to help them assess your situation.

A legal professional can offer advice on your rights and options, and potentially represent you in pursuing legal action against the dealership.

Prevent Future Scams

Once you’ve dealt with the immediate aftermath of car dealer fraud, it’s important to take steps to protect yourself from future scams. Here’s how.

  • Research dealerships: Before making a purchase, check reviews, ratings, and any complaints against the dealership.

  • Understand your rights: Familiarize yourself with consumer protection laws and your rights as a buyer.

  • Inspect vehicles thoroughly: Always inspect a vehicle and obtain a vehicle history report before finalizing a purchase.

Being proactive and informed can help you avoid falling victim to car dealer fraud in the future.

Call a Reliable Attorney 

Dealing with car dealer fraud can be overwhelming, but taking prompt and organized action can help you resolve the issue and seek justice. From gathering documentation and contacting the dealership to filing complaints with regulatory bodies and seeking legal advice, each step plays a crucial role in addressing the fraud and protecting your rights. By following these steps, you can increase your chances of achieving a favorable resolution and safeguarding yourself against future scams.

Remember, staying informed and vigilant is your best defense against car dealer fraud. If you’ve been scammed, don’t hesitate to use the available resources and legal channels to seek redress and make sure you get the resolution you deserve. Contact me today at the Tabak Law Firm to work with an expert attorney. I serve clients throughout the Houston area, including Richmond, Katy, Cypress, Spring, Humble, Louetta, Howellville, and beyond. Call today to schedule an appointment