Scam alerts from NADA

Scam alerts from NADA

NADA is warning dealers to be on the lookout for possible fraudulent activity related to dealers’ retail loan portfolios.

Certain individuals have recently targeted dealers with a scam promising to bundle a dealerships car loans and market them to investors,” essentially selling the car dealers collectible debt. The individuals then require dealers to pay car buyers first two to three months payments up front. These individuals collect the fees, but then never market the loans. One such group of individuals in the state of Washington was recently sentenced in federal court for its role in such a scheme. This group operated under several names, including Auto Credit Solutions, Sub-Prime Financial Services, Easy Credit Store, Instant Funding Systems, Great Northwest Financial Services, and Western Empire Financial Services.

Dealers are encouraged to be diligent in selecting business partners, and if a dealer suspects that fraud is afoot it should contact the Internal Revenue Service Criminal Investigation, U.S. Postal Inspection Service, or local police.

NADA’s legal affairs department is also investigating an email, Web site, and survey that falsely claim to have a connection to NADA. Dealers and others may have received email messages from “NADA Dealer Services” (nadanews@nadadealerservices.com) referring to an “AdTrack” survey described as an “NADA program” that rates automotive direct mail companies. NADA did not conduct such a survey, and NADA does not have an “AdTrack” program. NADAs legal affairs department is taking the necessary steps to stop these misrepresentations.

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