I have heard some reports of a new scam that is being used in Phoenix and the surrounding area. If you are answering an ad through the newspaper, Green sheet or craigslist and the price seems too good to be true, it probably is. A person buys a car. Gets the car titled and registered in his name. A few days later he goes to MVD and says he has lost the title. He now gets a duplicate title, but has the original also. Now he has two titles to the same car. He uses the duplicate title to get a title loan on the car. The amount usually is around 50% of the cars wholesale value. He gives the title loan store the duplicate title, because the title loan store will check to see if they are lending money on the most recent title. The individual now has a loan on the car and he also has a clear title on the car. He sells the car to an unsuspecting buyer, when this person tries to transfer the title, he finds out he doesn't have a good title. There is not a lot he can do outside of going to MVD and filing a complaint on the seller. If he has a good address and phone number for the seller he can contact him, and file charges. If the person doesn't transfer the title right away, he will find out about the other title later on when the title loan store has filed a stolen car report on the car after the loan wasn't paid.
I have friends at a 2nd party title company. They tell me that they have had car dealerships take these cars in trade with titles that are not the most current title and have liens on them. If you are looking at a car from an individual take down the sellers name, address and phone number and the ID number, and the title number they have for the vehicle in question. The ID number is on the dash board on the drivers side of the car. Make sure the ID # on the car matches the one on the title. It will cost $8.00 at MVD and a little more at a 2nd party title company to do a search to find out if there is a more recent title issued on the car. If it comes back that there has been another title issued after the one you had looked at, It is the cheapest insurance you ever bought. In that case you can walk away from the deal and be happy that you saved a lot of money and trouble.
If you are public spirited and want to do the right thing, call the police dept in the city you are in, tell them what is happening and they will probably go over undercover to try to buy the car, if they buy it, they will then arrest the seller for fraud and possible other charges.
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Warranty Ripoff
P.T. Barnum said “There is a sucker born every minute.” 150 years later Guardian Warranty and Simmons-Rockwell are proving him right.
I bought a used car from Simmons-Rockwell and they sold me a Guardian Warranty deal for $1699.
My air conditioning quit working and they said Sorry, AC metal tubing is not covered. My $1699 didn't do me any good. Apparently which parts are covered is a crap shoot. I never did get a contract, but I assume GWC got their share of my $1699.
Simmons-Rockwell also sold me "electronic corrosion protection" for $799 and there is a small box with red lights in the engine compartment that does the trick. I later found out this is pure snake oil and completely worthless. A friend who owns a body shop said to leave the red lights connected to remind me how dumb I am and they might increase my gas mileage by 25 per cent and my penis size by 10 per cent. Again no contract.
These so-called "protection agreements" are easy sucker money for GWC and S-R. And they are playing you for a fool.
Stay away from Guardian Warranty Corporation of Avoca-Wilkes-Barre, PA and Simmons-Rockwell of Big Flats, New York.
Stay away from these guys.
For more insight into the warranty scam racket, GOOGLE "US Fidelis".
Yours truly, Tom Thurber Gillett, Pennsylvania
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