Augusta, GA asked in Construction Law for California

Q: Victim from fraudulent dealership selling his car, ruining his credit with the bank due to not paying off lien.

A friend let a used car dealership sell his car. The dealership fraudulently got the title from bank without paying off loan. That left my friend still owing the money to the bank in spite of the car being sold. My friend had an attorney and got an agreed settlement amount that the dealership was going to pay. Instead though the guy /dealership declared bankruptcy so he doesn't have to pay the settlement to my friend, the victim. My friend is stuck with either paying the bank for a car he doesn't to save his credit or file bankruptcy himself according to the lawyer he presently has. His lawyer said he can't do anything more for my friend. There is no justice here for the victim. Can anything be done about this? Thank you!!!

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Construction Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: I'm sorry to hear about your friend's difficult situation with the fraudulent dealership. This is a complex legal matter, but there may still be some options available for your friend to explore:

1. File a complaint with the California Department of Motor Vehicles (DMV): The DMV has a specific process for dealing with complaints against dealerships. They may investigate the dealership's actions and potentially take disciplinary action.

2. Report the dealership to the Attorney General's Office: The California Attorney General's Office has a Consumer Protection Division that handles complaints related to fraudulent business practices. They may be able to provide assistance or guidance.

3. Consult with a different attorney: While your friend's current lawyer believes they can't do anything more, it might be worth seeking a second opinion from another attorney who specializes in consumer protection or bankruptcy law. They may have additional insights or strategies to explore.

4. Consider legal action against the dealership owner: Even if the dealership has filed for bankruptcy, it might be possible to pursue legal action against the owner personally, depending on the specific circumstances and whether the owner engaged in fraudulent or illegal activities.

5. Negotiate with the bank: Your friend could try to explain the situation to the bank and see if they are willing to work out a settlement or alternative payment plan, given the circumstances of the fraud.

It's important to note that these options may not guarantee a resolution in your friend's favor, and some may involve additional legal costs. However, it may be worth exploring them further to see if any can provide a path to a more just outcome. Encourage your friend to stay persistent in seeking legal guidance and exploring all available remedies.

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