Vehicle Title Fraud: Learn How to Avoid It.
A car title purposely misrepresents the car title history for any number of reasons then vehicle title fraud has occurred. The chief basis for car title fraud being actual is because states lack conformity on what constitutes a “salvaged car”.
As a vehicle is damaged by a natural disaster, involved in a serious collision, or stripped as a result of theft the insurance company can take possession of the car after reimbursing the insured driver and repair it. Then the car gets a new title which includes the type of damage the vehicle sustained and the vehicle is then often sold at an insurance auction.
Vehicle title fraud takes place as the vehicle is purchased at an insurance auction and the following occurs:
• The car is sold at a very low price because of the car’s damaged history.
• The customer re-registers the car in a state that does not recognize the branded title as salvaged. This is referred to as “title washing”.
• The customer of the damaged car which now has a clean title then sells the damaged car for a profit to an unsuspecting person and makes a profit.
So how can you avoid vehicle title fraud?
• There has been a pressure for the federal government to interfere and mandate what is considered a salvaged vehicle so there isn’t a discrepancy between states.
• However, until then you can perform a car title history check by running the vehicle identification number (VIN) of a car made after 1981.
• There are many websites providing car title history checks and in turn assist in preventing car title fraud.
Don’t Let vehicle Title Fraud Happen To You
If you are in the process of buying a used car then take the time in performing a car title history check. Protect yourself and save your money.
If you think you are a victim of car title fraud feel free to contact an experienced Los Angeles car fraud attorney Hovanes Margarian.