Car Dealer Fraud? Did You Know the Lender / Finance Company Is on the Hook for the Consumer’s Damages and Attorney’s Fees?
In the recent case, Medina v. South Coast Car Company, Fourth App. Dist., Div.5, 2017 DJDAR 939 (Sept. 25, 2017), a California Court of Appeal affirmed a trial court’s judgment that Veros Credit, the lender on a fraudulent car sale, was held responsible for consumer damages and attorney’s fees through the “holder clause” that is at the bottom of all Calfornia consumer installment sales contracts. This is an important fact for consumers who are often ripped off by corner car lots that are in bad shape financially or run by crooks who try to escape judgments by hiding assets. The lenders who take assignment of these contracts know they are on the hook for the seller’s wrongdoing, and now the California Courts have re-affirmed this responsibility.