Last updated: January 16, 2024, BVN
Phyllis Kimber-Wilcox
California has long been identified with car culture.
Here in California, clogged highways, long commutes, traffic jams, and more are all commonplace.
But there’s more to cars. . . Where people cruise, lowride, and turn corners. It’s the car culture that is often depicted in movies, television, and radio. Thinking of media separately, even though it used to be the case, is no longer correct. Because now everything is in the stream. This just goes to show how long California’s love affair with cars has lasted. Long before there were rivers, potash and cars were special.
Another sign of where you are on the time continuum is that the very thing you are known for becomes obsolete and ceases to be. Not without good reason, of course. Walkable neighborhoods and places that allow you to get around without a car are highly desirable right now. Depending on where you live, with a credit card and enough money, you can ride a bike, ride a scooter, or drive a rental car parked on the street. But for many Californians, a private car is the only way to get where they want to go, and many of those places are not walkable.
Although cars are expensive, they remain one of the most important purchases a buyer makes. Unfortunately, some car dealers and dealers are taking advantage of the public by committing so-called car retail fraud. These types of scams and scams cost consumers billions of dollars each year.
In response, the Federal Trade Commission (FTC), which protects the public from unfair business practices, created the Automotive Retail Fraud Control (CARS) rule. This rule protects the public from retail auto fraud and scams when purchasing a vehicle.
The regulations require transparency in the vehicle purchase process and include important provisions regarding pricing, additional products and services, and buyer consent.
fraud or fraud
For most people, the words fraud and fraud are used interchangeably, and Malini Mittal, associate director of the Financial Practices Division of the Federal Trade Commission (FTC), agreed, saying, “There’s really no big difference.” ” he explained. “If someone is lying about a product, it’s often a scam. It’s a scam. [and] It can also be called fraud. The reason we use the term fraud is that sometimes it is used in a slightly broader sense. ”
According to Mittal, when it comes to scamming the general public, the intent of the scammer is not the focus. “Sometimes people think that the word fraud must imply intent to do something intentionally, which is not necessarily required by FTC law. It’s very focused on what the consumer thinks, whether or not it was intended to be something.”
Mittal said some people think fraud is more of a legal term, but acknowledges that courts have different legal standards. However, in our everyday language, fraud is a “broad term that includes fraud and other illegal activities.”
What is the CARS rule?
Explaining the CARS rule, Mittal said the rule addresses two very harmful practices consumers experience, starting with “bait-and-switch” tactics in which dealers advertise certain deals, such as low prices, to get people to come in for lots. He shared that he is focusing on But when you actually go there and spend some time on the premises, you realize that the car is much more expensive than what is advertised.
The second type of fraud that the new rules seek to combat is “junk fees,” which primarily refer to hidden fees that dealers and consumers have never talked about, that consumers don’t want, and that are often hidden in contracts. is easy. This includes things like extended warranties, guaranteed vehicle or asset protection, so-called “GAP” contracts, VIM etching, coatings to protect your vehicle, and many other items.
Mittal went on to say that this rule will save money and time. Honest car sellers and dealers will also be helped by the new rules, as they will no longer have to compete with scammers and fraudsters and their fraudulent activities.
The rules state that dealers cannot lie about the terms of a contract, dealers must tell consumers the asking price, which is the actual price at which anyone can buy the car, and consumers must buy add-ons. There is no need to purchase. Consumers must also explain the purpose of each fee and agree to pay the fee.
Fraud is a preventable crime
Elderly people are often targeted by unethical car dealers. In addition to the deceptive tactics detailed above, such dealers frequently hide the poor condition of their used cars and can lure consumers with advertisements for cars they do not own or intend to sell. It happens often. These are other examples of “bait and switch” tactics. Other dealer scams include attempts to increase the interest rate on a loan.
The Consumer Fraud Investigation Unit of the Riverside County District Attorney’s Office advises that in order to prevent fraud, the public must educate themselves: “As the first line of defense against fraud, consumers must remain vigilant.” are doing.
Consumer fraud is a uniquely preventable crime, and the Riverside County Fraud Unit advises on its website: Riverside Consumer. ” The new FTC CARS rule will become effective on July 30, 2024.