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Diamond II Auto Sales and Colonial Finance Company Settle Auto Fraud Lawsuit

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Our client purchased a used Dodge Ram pickup truck, and was told it was being sold with a warranty.  Although the truck was being sold at Bargain Auto Center, the paperwork showed the dealer to be Diamond II Auto Sales.  Despite promising the warranty and providing him a copy of the written warranty, Diamond II Auto Sales also required our client to sign documents stating that it was being sold without a warranty.

        

Diamond II Auto Sales then assigned the contract to Colonial Finance Company.  Diamond II Auto Sales and Colonial Finance company were located at the same address, had the same president and director, and used the same registered agent.

Our client took good care of the truck.  However, less than a month after buying it, the truck’s engine completely failed.  When he informed Diamond II Auto Sales about the problem and asked for it to be covered under the warranty, Diamond II Auto Sales refused to cover the cost of the required repairs.  Instead, while the truck was in the shop for diagnosis of the engine problem, Colonial Finance Company repossessed the truck, and later turned it back over to Diamond II Auto Sales.

After our client’s attempts to resolve this issue were unsuccessful, he hired us.  Our investigation found numerous legal claims against both Diamond II Auto Sales and Colonial Finance Company for violating consumer protection and other laws, and not just for the warranty issue.  We then filed our lawsuit.  After the Judge denied the Defendants’ motion to dismiss the case, we obtained a favorable settlement for our client, including a refund of all payments he had made on the truck.

If you have suffered problems with your car, truck or van and the dealer refuses to honor your warranty, or if you have any other problems with a car dealer or finance company, contact us to learn about your consumer rights.  We can help you seek justice when you run into unexpected problems with your vehicle, and will keep you informed every step of the way throughout your case.  As a former automotive engineer and now as a consumer protection lawyer, Taras has sued many car dealerships and car manufacturers on behalf of our clients.  Even if you the dealer claims you bought your car “as is” and even if you signed a warranty disclaimer, you should still call us to find out about your rights.  You can reach us at 407-333-0001 or click here to send us an email.