8 Illegal Things That Card Dealers Do And Most Of The Time They're Getting Away With It. I'm Kevin Hunt of The Homework Guy here today with Amazing Elizabeth, The Homework Gal. Listen up friends, this is far from being an all-inclusive list of illegal activity done by Card Dealers. Shoot, we'd need three or four shows to cover those bases. But today's show is designed to give you a taste of just how much dealers do that's illegal and they get away with it anyway. This begs the question, why do dealers get away with illegal activity? The answer is pretty simple because the agencies enforcing the rules aren't big enough nor do they have enough resources to be everywhere watching this. And the second reason they get away with it is because car buyers, and I'm talking about you, our viewers, lack the intestinal fortitude to call it out when it happens and then hold them accountable. Why? Well, probably because the confrontation makes you a little uncomfortable. So today friends, we are looking for each of you to help us hold dealers accountable for a number of illegal actions and help bring the strong arm of the law down on the offending dealerships. We'll also give you some tips on what to do when this stuff happens so you can help. Alright, here we go. Illegal activities a dealer does, but gets away with it. Number one on the list, bait and switch price advertising and advertising misrepresentations. In general, dealers use the bait and switch advertising scam in order to get customers into the car dealership by advertising a low price or low payments on a particular vehicle. However you learn the vehicle in question is not on the lot at the dealership. You show up there and they say things like, oh, that vehicle just sold, but look over here, we have this vehicle for you. That's the most common form of bait and switch. But here's another one. It pertains to the offering price and the FTC explains that offering price of a vehicle means the full cash price for which a dealer will sell or finance the motor vehicle to any consumer, excluding only required government charges. When you finally agree to show up and the price is not the same as the advertising price, you become the target of still another form of an illegal bait and switch tactic. Illegal activity a dealer does, but gets away with it. The dealer plays games with your written outdoor pricing request. The law says that if a consumer requests an outdoor price and riding, the dealer must also respond in riding. That means they have no choice in the matter. They can't call you or email you back to say, just come in, yet they do it anyway. Like this viewer reports, I won't read the entire comment just the things that apply here. Identifying themselves as Google user GP. The viewer states, I never set foot in the car dealership until I have a clear price and riding down to the penny. What I do is use a non-descript name like Carbire or Mr. Byer and use a relay of phone number so they don't have your real number and screen any calls. Not a bad idea. Then it's a give me a call or you have to come to the dealership message, I delete them and either reply back with, no that's not acceptable. I do not negotiate in the sales office. You must give me an outdoor price in riding before I come to the dealership. Most of this point stop contacting you, but now that your video highlights that's potentially illegal for them to make those statements, I'm going to see if the FTC angle takes it to the next level with them. The bottom line is if they can't commit to a price in riding, given though you give the macro information, then that's not a place to do business with. So it should be the price of the car and that's it. Google user is dead on the money. The FTC regulations make two crystal clear statements about this. First, with regard to asking price, you should know that well ahead of drafting the new regulations, the FTC has brought many cases involving huge fines concerning misrepresentations regarding key pricing aspects of a vehicle purchase. Illegal activity a dealer does, but gets away with it. Number three, add-ons. Many dealers use on lawful practices relating to add-ons. A direct quote from the FTC says, another key consumer protection concern is the sale of add-on products and services in a deceptive or unfair manner. Commonly offered add-ons include extended warranties, service and maintenance plans, payment programs, gap insurance, emergency road service, vignetching and other theft protection devices, and undercoding. Who hasn't been told that one or more of these products was already installed on the car? It's not optional, they say, but it's mandatory. In actions the FTC took to fine or penalize dealers they did so because dealers represented that add-ons are required when in fact they are not. You cannot be legally required to buy their add-ons, no matter what they say, yet dealers will still insist you have to buy the stuff they installed on the car. Illegal activity a dealer does, but gets away with it. Number four, keeping your cash deposit on a vehicle. Dealers are prohibited from keeping your cash deposit when you've made a decision that you do not wish to engage them in a transaction. But dealers routinely make misrepresentations about keeping cash down payments or even your trade in vehicle, charging you fees for canceling or initiating some form a legal process if a transaction is not finalized or if the customer does not wish to engage in a transaction. All of this nonsense is a violation of law, yet dealers do it all the time. Back with the illegal activity number five right after this message from Mary Jo. Hello, I'm Mary Jo from the Homework Guy team. Hello Kevin and Elizabeth, do a great job. We are so proud of every show our team puts out, carefully researched for accuracy and design tell part bars just like you. If you're new here, don't forget to hit the subscribe button below and ring the bell so you get notifications about coming shows. Thank you for listening. And by the way, if you haven't already noticed, check out the live pattern on our ceiling. Pretty cool, huh? Illegal activity a dealer does, but gets away with it. Number five. Charging junk fees. Junk fees are perhaps one of the most popular categories of abuse by dealers. We have a list of fees on our website, the homework guy dot com, but dealers never stop inventing more. We've even seen a sales commission fee with the dealer claiming we have to pay our sales man. Don't get too tied up trying to understand all the different fee names. Most are a hoax. If you're wondering what exactly is a junk fee, it's any fee the dealer charges a car buyer that is taxable to look at it. Another way, the only fees that are not taxed are the title, transfer and license fees collected by the dealer, but go directly to the state. Those are the only fees that are not junk fees illegal activity. A dealer does, but gets away with it. Number six, paperwork falsification falsifying paperwork to get a loan approval or forging customer signatures on documents is just fraud. Yet stories of dealers doing this kind of stuff commonly hits the news. We can promise you that it happens hundreds of times a day all across the country. One way to make sure you weren't a victim of falsified signatures is to take a copy of every document with you that you sign in dealer finance and then contact your lender to ask for the car contract copy that they funded the loan with. When the two don't match up, you need to contact a consumer protection attorney in your state immediately. Don't worry about attorney fees because a dealer will be court ordered to pay them. Illegal activity, a dealer does what gets away with it. Number seven. This representation is regarding financial terms. Consumer complaints have included offers by the dealer pertaining to either a purchase or a lease when a dealer improperly discloses the finance terms or misstates the interest rate. The dealer has violated the Truth and Lending Act. This could give rise to claims for statutory damages, actual damages, and the dealer would have to pay your attorney fees and court costs. So go for it folks, when this happens. Some dealers have also lured potential buyers through financial incentives that are incidental to the purchase, such as the promise of a valuable prize. Friends, if there's a prize involved, never visit that deal. Never. Only a scammer offers a prize like that. This reminds me of a joke my friend Patrick used to say years ago. I'm not getting into the van until I see the candy. Illegal activity, a dealer does what gets away with it. Number eight. Failure to pay off a lien. This situation is common sadly. The dealer takes your car in untried, but it still has a loan on it, right? They say we'll pay it off for you, but what happens when they don't? The sad news is that regardless of the reason the dealership failed to pay off your loan, you are still the one responsible to the lien holders. So don't forget that. As a result, you could end up with two loans to pay and not enough money or the willingness to do so. You need to know that if you do not continue to make your payments, your car could be repossessed. And yes, you'd have legal recourse against the dealer, but unfortunately, you'd be financially hurt in the meantime. Many of these illegal activities we've discussed by dealers have been observed by law enforcement agencies in the motor vehicle marketplace and have persisted for years in the face of repeated federal and state enforcement actions, suggesting there is the need for additional measures to deter, deceptive and unfair dealer practices. And remember, friends, you're part of the solution for fixing the problem. Definitely. So many times a day, there aren't enough law enforcement people to stay on top of it. You have to report it when it happens. Maybe we scared you a bit, but if you enjoyed today's show and you want to make sure you don't miss our future shows, please subscribe and hit the notification bell. You can also connect with us on Facebook. And if you want more in-depth information, please visit our website, the homerckguy.com. A lot of frequently asked questions can be answered on our website. When you get there, scroll down the main page to find tons of free downloads designed to help you get through the process of buying a car without getting ripped off. And lastly, if we've helped you save time and money finding a car, consider showing us some love by leaving a tip to help us help the next person. You'll see a super thanks button just below the video and there are links for making a tip in the description box. And you can easily find those by clicking on the Read More button scene below. Thanks everyone. Alright, if you're new here to the homerguy channel, as Mary Jo said and Elizabeth just reminded you, don't forget to subscribe and ring that bell. Join our fast-growing group of subscribers and become a part of our YouTube family. Thanks everyone for coming back and to all of our faithful subscribers out there, you guys rock. God bless you all. I'm Kevin Hunter, the homerckguy signing off with amazing Elizabeth, the homerck gal. The homerckguy team is serving truth and justice in the car business. We gotta go.