Although it was hoped that the introduction of the digital odometer would end with changing readings, the truth is that this did not happen. On the contrary, it has become even easier and faster to commit this type of scam and reset the odometer. With that in mind, it`s no surprise that a number of individuals and dealers tend to alter mileage readings and earn more by selling used cars. Odometer manipulation involves several interrelated activities. Recent models, vehicles with high mileage are bought cheaply. Vehicles are “overhauled” or “detailed” to remove many exterior appearances from long use. Finally, the odometer is reset and usually removes more than 40,000 miles. The federal penalty for odometer handling is up to $10,000 and/or 3 years in prison. CPB works with NHTSA odometer fraud personnel, the FBI, the U.S. Postal Inspection Service, the IRS, and numerous government agencies to track odometer fraud. NHTSA`s Small Odometer Fraud Team acts as both lead investigator and partner with other investigative agencies in many of these cases. The cases pursued by CPB typically involve networks that buy and sell hundreds and often thousands of used cars each year. The main defendants in major odometer fraud proceedings have been sentenced to prison terms of up to seven years under current penal guidelines that do not allow parole.
Penalties ranging from 18 months to three years are common. UAOs should contact PWCB when an odometer fraud investigation is initiated so that information on potential overlaps with other cases can be shared. CPB should also receive a copy of the proposed fee and information at least one week prior to submission or filing in order to obtain the necessary approvals. Not only are they helping other people, but the person or trader who committed the fraud is also held responsible for their illegal actions. They can be legally punished for their illegal behavior. Changing the mileage of a motor vehicle is a crime. Effective July 5, 1994, the odometer handling laws of Title 15, U.S.C., were recoded as Title 49. The change was not substantial, although the statutes were reformulated. Here are some of the old and new laws: Scammers use digital devices that connect directly to a vehicle`s internal computer system to change mileage. In fact, a quick search for “odometer rollback tool” yields a number of “mileage correction” devices: a person who knowingly and intentionally committed odometer fraud can be sentenced to up to three years in federal prison.
After consulting with NHTSA odometer fraud staff, PWCB developed a series of forms and form letters for use in an investigation of odometer fraud or title changes. These forms, which are essential for tracing the “paper side” of an odometer fraud or modified securities investigation, have been compiled into an “Investigative Resources” manual. A copy may be obtained from the CPB from federal and state investigative authorities. No, odometer restoration is not legal. Manipulating the odometer to distort the condition of a vehicle is considered a criminal offense in the United States. In fact, it has been illegal since 1972. And since the introduction of the Truth in Mileage Act in 1986, mileage disclosure is required upon transfer of ownership. If you have been the victim of an odometer scam, you can prosecute the offender in accordance with the law. If you win the case, the court must award you $10,000 or three times your actual damages, whichever is greater.
In addition, the defendant must pay your lawyer and court fees. Who doesn`t remember the infamous odometer dismantling system from the popular 1986 film Ferris Bueller`s Day Off? If not, here`s a summary: Three teenagers ride around in their parents` sports car. The problem? They realize that they have added more than 100 miles to the odometer and try to “fix” it by resetting the odometer. It doesn`t work, of course, but as innocent as it sounds, it`s a federal crime and can land the perpetrator in jail. According to the U.S. Department of Transportation`s Office of Odometer Fraud Investigation[2], odometer fraud is a serious crime and a major consumer fraud problem. In the National Highway Traffic Safety Administration`s (NHTSA) 2002 mileage fraud study, NHTSA found that 450,000 vehicles were sold each year with incorrect mileage, resulting in annual costs of more than $1 billion for U.S. car buyers. [3] In the UK, the Office of Fair Trading estimates the annual cost at £500 million. [4] Not surprisingly, individuals who change mileage often tend to alter or falsify documents containing vehicle mileage readings. This offence is considered a separate offence in the eyes of the law.
Often, these types of crimes are committed as part of a larger human operation that spans multiple states. Some common crimes related to odometer manipulation may include: Keep in mind that it can be difficult to determine if odometer readings are incorrect. Unfortunately, digital odometers don`t have visible moving parts, making it even harder to know if they`ve been tampered with compared to mechanical parts. Therefore, it is important to learn how to recognize the odometer restoration scam and report it. Read on, and we`ll explain everything you need to know to protect your business from dealers and individuals trying to trick you into buying vehicles at inflated prices. Until the early 2000s, the manual odometer dominated the market. These simple devices consisted of a set of gears and were turned by a series of flexible cables. These cables, which connect the odometer and transmission, normally rotate in a protective metal tube. Odometer fraud, also known as “busting miles” (US) or “clock” (UK, Ireland and Canada), is the illegal practice of resetting the odometer to make it look like vehicles have a lower mileage than they actually have. Odometer fraud occurs when the seller of a vehicle incorrectly tells the buyer the actual mileage of a vehicle. [1] With respect to the penalty for odometer tampering, it is important to note that these charges are often accompanied by other crimes such as misrepresentation of a vehicle`s mileage.
Digital odometers that have been tampered with are even harder to detect than traditional mechanical odometers (because they have no visible moving parts). The condition of a vehicle and a detailed history report are the best clues a buyer has to determine if fraud has occurred. Considering all the facts we`ve covered in this article, if you need a fleet of vehicles, the best way to protect and optimize your business is to ditch the outdated system. The digital odometer made no difference in the odometer`s backtracking statistics. On the contrary, they are even easier to handle! Odometer fraud is the process of disconnecting, resetting, or changing a vehicle`s odometer for the purpose of changing the specified number of kilometers. NHTSA estimates that more than 450,000 vehicles are sold each year with incorrect mileage. This crime costs U.S. car buyers more than $1 billion a year.
We want consumers to know how to spot odometer fraud, how to protect themselves from it and who to contact if they think they are a victim of this illegal behaviour. Odometer fraud is a serious problem with an estimated annual loss of between $4 billion and $10 billion annually, according to the National Highway Traffic and Safety Administration (NHSTA).