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Dealer Fraud: Certified Procedural Scams

On Behalf of | Jun 14, 2016 | Dealer Fraud

This will be the first in a series of blogs explaining the procedural aspects of Certified Pre-Owned programs. I have written about Certifications scams before. You all know it is my experience and opinion that all Certification programs are scams. They are long on promises of rigors and standards, but very short on oversight and accountability.

I have written about how vehicles that should be disqualified are way too often Certified. I have not written about or sufficiently explained how the programs fail so often on strictly procedural grounds.

To sell a vehicle as Certified, the vehicle must not only qualify and be inspected and Certified properly, but the whole sale process must be conducted in accordance with the Certified rules.

Each manufacturer sets forth the rules for its dealers in a Certified Operations Manual. The manuals set forth all of the rules from beginning to end in excruciating detail. The rules dictate what vehicles may be certified, how they must be inspected, reconditioned, certified, advertised and sold.

The Certified Operations Manual also dictates who vehicles must be decertified, if they are found to have been certified in violation of the program.

And the Certified Operations Manuals also dictate what is supposed to happen to dealers who violate the program. Especially those dealers that violate the program frequently.

The violating dealers can be fined, suspended or terminated. But I have yet to see that happen to any dealer.

In the next blog, I will pick up with specific types of procedural violations that I often see.

If you believe you have been the victim of Dealer Fraud, you should contact a qualified attorney right away.

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