Car Dealer Scams
Suzanne Potter, producer/reporter, California News Service, a bureau of Public News Service.
Experts in California consumer law are warning car buyers about “yo-yo” scams, in which people take the car home but are called back to the lot a few days later to sign new financing paperwork, often at a higher rate.
Many buyers don’t realize that the dealer can cancel the contract within 10 days. They’re supposed to give people their money back. Still, attorney Gregory Babbitt, a partner at the Auto Fraud Legal Center in San Diego, said some may be untruthful, telling clients the financing fell through, or pressuring people who resist a new offer…