Fraud and Overcharging

In the 1990s, numerous instances of fraud occurred in car leasing transactions. ABC’s Prime Time reported on an undercover investigation which puts car dealers under surveillance with hidden cameras. Half of the ten dealers surveyed attempted to cheat the undercover investigators. These dealers used various means, such as secretly raising the purchase price or capitalized cost of the vehicle or by quoting low-ball interest rates. In Florida, a probe by the state attorney general uncovered illegal business practices in 23.000 leases which overcharged leasees on an average of $1,450. The terms of the leasing contract are complicated, and fast talking dealers can all too easily mislead unsuspecting customers.

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