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BMW Auto Dealer Fraud Deceptive Trade Practices

Case Type:   Auto Dealer Fraud / Deceptive Trade Practices Alleged
Case:   Carlson Fabre v. Auto Gallery Imports
Date:   April 23, 2017
Plaintiff Attorney(s):   Anthony T. Ballato, Esq., Massapequa, NY
Defendant Attorney(s):   John at Auto Gallery Imports
Facts:   April 23, 2017, Consumer Carlson Fabre purchased a used 2014 BMW X3 from Auto Gallery Imports of Westbury, New York. The consumer was sold by the dealer an extended warranty through Diamond Warranty Corp.. While driving the vehicle on May 22, 2017, the consumer alleges that he heard a loud clanking noise coming from the engine. The engine shut down and blue smoke was coming from the rear of the vehicle. The vehicle had to be towed to BMW. The technician found excessive oil underneath the vehicle. There was large chunks of engine parts on the lower engine cover. The oil pan was blown out from internal use failure. The consumer alleged that when he called the warranty company they told him the dealer never submitted the paper work or money and thus he had no warranty. On June 22, 2017 the vehicle was towed to the consumer’s home and picked up by TNT Automotive Corp. on behalf of the dealer. On July 13, 2017 TNT had told the consumer that the parts were ordered, but then declined to do further repairs.
Verdict:   After several attempts to fix the vehicle and over fifty-two (52) days out of service, the consumer hired Anthony T. Ballato, Esq. of Massapequa, NY to represent him. On May 30, 2017 Mr. Ballato sent a demand letter to the dealer Auto Gallery Imports demanding that they repurchase the vehicle pursuant to Notice of Revocation of Acceptance and Demand for Rescission Uniform Commercial Code Article 2; Fraud in the Inducement and Execution of the Contract; Truth in Lending Act (TILA) Violations; Deceptive Trade Practices General Business Law Articles 22-A and 26, and Section 349; Notice Pursuant to Used Car Lemon Law New York General Business Law Article 11-A Sections 198-B, Et Seq.; Notice of Breach of Contract and Demand for Rescission Uniform Commercial Code Article 2; Claims Under Dealer’s Warranties and Magnusson-Moss Warranty Act; Violations of DMV Regulations 15 NYCRR §78.13 and Vehicle Traffic Law Section 417 Warranty of Serviceability and Penal Law; Demand For All Sales, Financing and Service Documents; and Fraud in Failing to Pay for Extended Warranty Sold to Consumer. On June 16, 2017, Sean from Auto Gallery Imports called Mr. Ballato to settle the matter. They offered to pay for all repairs free of charge and will provide proof of extended warranty. On July 11, 2017 the consumer picked the vehicle up from TNT Automotive Corp.. On July 14, 2017 while driving the vehicle the consumer alleges that he heard a clanking noise and that the vehicle shakes after starting in the morning. Consumer brought the vehicle to TNT Automotive Corp.. The technician ordered the part to fix both problems. In total the consumer received over $10,000.00 in repairs and a replacement engine.

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