Topics Archives - Page 14 of 14

End-of-contract vehicle ‘clocking’ on increase

A growing number of vehicles are being handed back at the end of a contract hire or personal contract purchase (PCP) agreement having been clocked. Fleets and individuals eager to avoid excess mileage charges are turning to mileage correction companies to clock the vehicle before they return it. And the problem is causing so much concern within the industry that the Vehicle Remarketing Association (VRA) is calling for companies that undertake the procedure to be better regulated. A string of businesses advertise their services online from £50 and, while problems with an odometer may require the use of their services legitimately, many companies are turning to them to avoid end-of-contract charges. Used car history expert HPI says it has seen the number of used cars showing an ‘inconsistent mileage’ increase by more than 10% since 2007. It identified more than one million clocked cars in 2011 – one in every 20 it checked. An employee at a major leasing company, who wished to remain anonymous, said: “How prevalent the problem is it’s difficult to say, but we know it is happening and it appears to be a growing issue. “At the end of 2008/09 there were a lot of brokers doing two-year, 20,000 mile, non- maintained contracts on higher-value vehicles which looked very attractive from a monthly rental perspective. “It appears the problem started there with people wanting to avoid end-of-contract excess mileage charges. “I’ve even heard a guy in my local pub openly admit to clocking the mileage on vans he’s operating every year before the annual service so this clearly isn’t an isolated problem.” David Tomes, senior investigator at iCompli, told Fleet News he had analysed 16 cars believed to have been leased to an accident management company on a 20,000-mile contract. They were returned to the leasing … Continue Reading

Senate passes highway bill

The bill would also dramatically hike fines for odometer fraud to up to $1 million from a current maximum of $100,000 for some fraudulent actions. The U.S. Senate on Wednesday approved a two-year, $109 billion bill to pay for highway construction and boost auto safety regulations. The bill was approved by a 74-22 vote and now goes to the House. Sen. Carl Levin, D-Detroit, praised the bill, saying it “will improve the mobility of people and commerce while reducing traffic congestion and improving air quality.” Levin said the bill will help state transportation agencies that “need to be able to do long-term planning, and a two-year bill helps that cause, and is surely better than the short-term extensions we have been living under.” Levin said Michigan will get more than $1.1 billion per year for two years for highways, “slightly more than under the current bill.” Under the transit formulas, Michigan will get $131.3 million per year for two years in mass transit, “a little more than we got last time in formula funds.” In 1978, Michigan was getting around 75 cents back on every dollar in federal gas taxes paid. That went up to about 80 cents in 1991, 90.5 cents in 1998 and 92 cents in 2005, Levin said. “Unfortunately, there simply isn’t enough money this time around to improve the rate of return for donor states,” Levin said. The current authorization to collect the 18.4-cent federal gasoline tax expires on March 30; that tax currently raises about $100 million a day to repair the nation’s roads and fund other projects. White House Press Secretary Jay Carney praised the bill’s passage. “We are pleased that Senators have continued the tradition of working across the aisle to pass a bill that keeps Americans at work maintaining our nation’s vital … Continue Reading

Dealer Says Odometer-Rollback Charges Are Due to Mechanical ‘Glitch’

The Daily Times of Deleware, Pa., reported this past weekend that one local used-car dealer charged with rolling back the odometer on a 1998 Jeep Cherokee has a different story to tell. The dealer and his attorney are claiming that a mechanical defect was the cause of the erroneous mileage reading. The report stated that David Gill, general manager of DiFilippo Brothers Motor Cars, is being charged with alteration of true mileage statement, deceptive business practices and the misdemeanor charge of tampering with public records. And Gill’s attorney, Michael Malloy, disputes the allegations, blaming the odometer readings on what he called a “mechanical glitch.” Highlighting the background on the case, Gill sold a Jeep Cherokee to customer Rodney Gilmore in December 2010 for $9,295, with an odometer that showed 67,189 miles — according to the affidavit of probable cause written by Pennsylvania State Trooper Louis Vitali. But the PennDOT records painted a different picture: the records obtained by Vitali showed the Jeep’s last reported mileage as 84,210, reported the Daily Times. Malloy apparently said, “We know for a fact now the (odometer) is now back further than when the complainant drove it. “We can’t say why it’s happening,” he was reported saying. But according to the affidavit, Gilmore ran a Carfax report on the Jeep shortly after he bought the unit. And this report showed apparently showed the mileage on the vehicle was much higher. “Gilmore called the dealership and spoke with a woman who confirmed the mileage on the title was in fact 84,210, not 67,189, according to the affidavit,” the Daily Times reported. But Gill claims that on the date of sale, the vehicle title was unavailable and he took the mileage from the odometer to complete the paperwork. According to a report from Vitali, Gill also told him the mileage on the … Continue Reading

The dangers of buying a “clocked car”

Over 1 million cars checked by HPI had a mileage discrepancy in 2011 www.hpicheck.com Consumers need to protect themselves from the risk of buying a clocked car, warns vehicle history expert HPI. Latest figures from HPI reveal an increase of more than 10% over the last 5 years in the number of used cars it checks recording a mileage discrepancy. According to figures from HPI’s National Mileage Register (NMR), over 1 million cars it checked in 2011 had an inconsistent mileage reading, leaving buyers vulnerable to paying over the odds for a vehicle. An HPI Check includes a mileage check as standard, offering used car buyers a safeguard against the growing danger of clocking. “It is simply too easy for sellers to hike up the value of a car by turning back the miles on the odometer, making clocking one of the biggest risks for consumers,” explains Kristian Welch, Consumer Director for HPI. “Worryingly, we are seeing a new trend whereby some owners are clocking a car regularly throughout their ownership, making it even harder for buyers to establish if a vehicle’s mileage is correct. We also know there are people who are returning leased cars to the leasing company, having adjusted the vehicle’s mileage so that they meet the terms of their PCP (personal contract plan/leasing) agreement, which is further adding to the problem. With 1 in 20 cars we check recording a discrepant mileage, buyers need to take steps to be sure their potential purchase really is everything it seems.” Modern digital odometers make it easier than ever for clocked vehicles to evade detection. Whilst altering a car’s mileage is not illegal itself, not declaring that mileage change to a potential buyer is. Clocking a vehicle can add potentially hundreds of pounds to the perceived value of a car. The real worry … Continue Reading

Georgia court orders $11,474 in restitution for car odometer fraud

WILDER,v.THE STATE.A11A2223. Court of Appeals of Georgia. Decided: March 19, 2012. DOYLE, Presiding Judge. Richard Keith Wilder was convicted of forgery1 after entering a guilty plea pursuant to Alford v. North Carolina.2 The trial court entered a restitution order from which Wilder now appeals. For the reasons that follow, we vacate the order of restitution and remand with direction. The proper amount or type of restitution shall be resolved by the ordering authority by the preponderance of the evidence. And the burden of demonstrating the amount of the loss sustained by a victim as a result of the offense shall be on the [S]tate. On review of a restitution order, the appellate court has the duty of reviewing the transcript to determine whether each party has met his or her specified burden and determining whether a restitution award was supported by the preponderance of the evidence. So viewed, the record reveals that Wilder was indicted on two counts of first degree forgery for allegedly forging the names of two previous owners on a motor vehicle title and one count of alteration of an odometer.4 Wilder agreed to plead guilty to one of the two forgery charges in exchange for the State moving for entry of an order of nolle prosequi as to the remaining forgery charge and the alteration of an odometer charge. At the guilty plea hearing, the State contended that Wilder sold a used vehicle to Andrea Berlin with a forged signature of a previous owner and an incorrect odometer for $7,900. The car immediately showed signs of disrepair, and Berlin invested $3,574 in repairs before attempting to resell the vehicle to another used car establishment, which offered her $1,700 for the vehicle. At the guilty plea hearing, the State asked for a separate hearing on restitution and … Continue Reading

Used Car Dealer Facing Charges After Odometer Investigation

Dave Gill is facing felony charges after complaints by an NBC10 viewer who bought a car at the lot he manages in Prospect Park. A used car manager is facing felony charges after the NBC10 Investigators looked into complaints that he tampered with the odometer on one of his Jeeps. A Prospect Park used car manager is facing felony charges after the NBC10 Investigators looked into complaints by an NBC10 viewer who bought a Jeep at his lot. Dave Gill is accused of rolling back the odometer on the Jeep. “The charges will be dropped then I’m coming after you,” Gill told NBC10’s Harry Hairston as he was going into court for his preliminary hearing. Gill insists he’s done nothing wrong. He’s the manager of DeFilippo Brothers. Pennsylvania State Police have charged him with Prohibited Activities Relating to Odometers, one of two felony charges leveled against him. This all comes months after the NBC10 Investigators brought you the story of Rodney Gilmore. Gilmore bought a 1998 jeep from DeFelippo Brothers in December of 2010. He says he started to have problems with the car immediately. “It started to over heat, it wouldn’t start, it had issues with the cooling, brakes — there were a lot of issues,” Gilmore said. Gilmore says that prompted him to get a Car Fax. According to state police documents, the report showed the Jeep had 84,000 miles on it when the used car company bought it, which is a lot more than the 67-thousand plus miles on the odometer when Gilmore bought the Jeep. “Somebody, at some point along the line, tampered with the odometer, decreasing the mileage, the shown mileage, which would then be able to provide them an avenue to sell the vehicle at a higher price,” said state police officer Lou … Continue Reading

Four Men Sentenced To Prison For Conspiracy For Rolling Back Car Odometers

United States Attorney Jenny A. Durkan Western District of Washington Four Men Sentenced To Prison For Conspiracy For Rolling Back Car Odometers Seventy-five Cars Sold with Falsified Mileage Four men from Puyallup, Washington were sentenced today in U.S. District Court in Tacoma to prison terms for conspiracy to sell used cars after tampering with the odometers, announced U.S. Attorney Jenny A. Durkan. RICKY RISTICK, 23, and his father ROBERT “BOB” RISTICK, 42, conspired to roll back the odometers on 36 different automobiles. RICKY RISTICK was sentenced to 18 months in prison and ROBERT RISTICK was sentenced to two years in prison. MILLER STEVENS, 32, and his brother STANLEY STEVENS, 28, conspired to roll back the odometers on 39 different vehicles. MILLER STEVENS and STANLEY STEVENS were each sentenced to two years in prison. At sentencing U.S. District Judge Ronald B. Leighton said there was a significant safety problem created by the defendants’ crime. The four men operated entities buying and selling cars under the names One Stop Auto and RSV Auto. The RISTICKs are responsible for restitution for $144,000 in fraud losses. The STEVENs are responsible for $156,000 in restitution for fraud losses. According to records in the case, the men would purchase high mileage vehicles from both private sellers and used car dealers in Washington and Oregon. The men would then have the odometers rolled back, so the new purchaser would think it was a low mileage vehicle. The plea agreements describe examples of the scheme. The RISTICKs admitted that in 2006, they bought a 2000 Chevrolet Silverado with 192,000 miles from a private seller in Oregon for $7,800. In early 2007, they requested that an auto repair shop roll the odometer back to 64,521. They then sold the Silverado to a car dealer in Wenatchee for $15,000. In … Continue Reading

Four Sentenced in Federal Court in Odometer Fraud – Craigslist Crime Ring

Gary MitchellMarch 5, 2012 Four Sentenced in Federal Court in Odometer Fraud- Craigslist Crime Ring Investigation conducted by USDOT-NHTSA, Seattle PD, IRS-CID, WA Dept. Licensing Prosecution by USDOJ Consumer Protection Branch and United States Attorney Office-Seattle WA TACOMA — Four Puyallup men are headed to federal prison for their roles in a scheme to roll back odometers on cars and then sell them on Craigslist. In federal court in Tacoma, prosecutors said the group lopped off an average of 95,000 miles on each car they sold and handed to unsuspecting buyers the keys to potentially dangerous vehicles. Robert Ristick, Miller Stevens and Stanley Stevens were each sentenced to two years in prison Friday. Ricky Ristick was sentenced to 18 months in prison. All the men live in Puyallup and many of the vehicles were sold in that area. Justice has been a long time in coming for many victims. Charging documents state the men rolled back the mileage on 75 cars but authorities believe the number actually involved hundreds, if not thousands, of cars and trucks. Posted by Gart Mitchell

Raleigh man charged with selling vehicles with altered odometers

RALEIGH, N.C. — A Raleigh man has been arrested and charged with selling vehicles with altered odometers out of his home. Officials with the NC Division of Motor Vehicles License and Theft Bureau say Francis Marimo had been under investigation for months after a customer reportedly purchased a 2005 Honda Odyssey through an ad on Craigslist. The victim later discovered that the vehicle mileage had been changed. During the investigation, agents learned Marimo would travel to different states to purchase the vehicles, then return to Raleigh where he would allegedly change the odometer cluster and then place the vehicle on Craigslist for sale. On Tuesday inspectors seized four Honda odometer clusters, $17,200 in cash, keys to different vehicles, motor vehicle titles, and paper work pertaining to the sale of vehicles. Marimo was charged with two counts of odometer fraud, two counts of obtaining property by false pretenses, and one count of acting as a motor vehicle dealer without a license. He was placed in jail under a $3,000 secured bond. Bureau officials say they continue to look into how long Marimo had been making such sales and says more charges are possible. Anyone who thinks they may have been a victim of the fraud is asked to call the Bureau at (919)816-9194, ext. 2. Posted by Gary Mitchell

In loan case, jury awards Independence woman more than $1 million

An Independence woman recently won a $1,198,512 court judgment, with jurors finding that a finance company had misled her into making car payments she wasn’t obligated legally to pay. The case, her lawyers said, pointed to an abusive lending practice that cuts particularly deep during tough economic times. Lawyer Bernard Brown, who represented the woman, said the Missouri Merchandising Practices Act protects consumers who are unable to obtain car titles when their dealers go out of business. The law views such sales as “fraudulent,” and purchasers are not required to keep making payments if they cannot obtain the titles, Brown said. “Consumers don’t know that they don’t have to pay, and in fact are entitled to all their payments back and their credit cleaned up,” Brown said. How many consumers get stuck with such cars after dealers go out of business is difficult to say, acknowledged Brown, whose law practice specializes in automotive issues. But Missouri Department of Revenue figures show a 9 percent decline in the number of car dealer licenses issued in Jackson County between 2006 and 2010. The problems for Brown’s client, Carrie Peel, began in August 2008 after she purchased a 2005 Ford Taurus for $12,450 the previous month, paying $3,500 down and financing the rest. Her 30-day temporary license tag was expiring and she went to the Department of Revenue to license the car. Her dealer paperwork didn’t include the title, which she needed for the license. But she got a shock when she returned to the dealer. “When I went back up there, they were closed for business,” Peel said recently. “I’m looking in the window, and they’ve closed.” The dealership had, however, sold her installment contract to Credit Acceptance Corp., a Michigan lender that is one of its industry’s leaders. In her suit, … Continue Reading

NOTFEA

Working to deter odometer and title fraud

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