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Title Fraud: Seminal Issues and Citations

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Title Fraud Issues

Dealer Required to Have Valid Title In Its Immediate Possession
MCLA 257.235(1)

Dealer Must Show Reassigned Title(s) to Consumer
MCLA 257.233a(3)

Dealer May Only Issue 1 Temporary Tag Per Vehicle
MCLA 257.226a(1)

Dealer May Not Use Dealer Plate for More Than 72 Hrs
MCLA 257.244(8)

Dealer Must Submit Application for Title within 15 days of Sale/Lease
MCLA 257.217(4)

Dealer Transfer to Another Dealer – Must Warranty Title and Fill in Odometer Statement
MCLA 257.235(3)

Dealer Cannot Sign Odometer as Transferor & Transferee
MCLA 257.233a(3)

Must Provide Copies of ALL documents signed at the time
MCLA 257.251a

Sec. 248a. A motor vehicle dealer shall not advertise or represent a motor vehicle to be a demonstrator, executive or manufacturer's vehicle, leased vehicle, new motor vehicle, or used or secondhand vehicle unless the vehicle so described is as defined in this act.

Title Fraud Remedies

  • UCC Sec. 2-608 (Michigan MCLA 440.2608)
  • Sale in violation of Motor Vehicle Code is “void and … monies paid under the terms of such a void contract can be recovered by the purchaser.”
    • Waldron v Drury’s Van Lines, Inc, 1 Mich App 601, 608, 137 NW2d 743, 746 (1965).
    • Moreover, the fact that Plaintiff has had use of the vehicle does not affect his ability to void the sale.
      • Roe v Flamegas Industrial Corp, 16 Mich App 210,  167 NW2d 835 (1969) (no offset for use)
Statutory Damages – Odometer Statute

Michigan Consumer Protection Act

Unfair Deceptive Practices
MCLA 445.903

Statutory Damages & Attorney Fees
MCLA 445.911

Equitable Relief Permitted (i.e., revocation, credit reporting injunction
MCLA 445.911(1)(b)

This resource appears courtesy of Attorney Dani Liblang