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Overview

Odometer fraud occurs when someone disconnects, resets, or alters a vehicle's odometer to display a false mileage reading, or provides a false odometer disclosure statement. This is a serious federal crime and civil offense that costs American car buyers over $1 billion annually.

Key Protection: Under the Federal Odometer Act (49 USC 32710), victims can recover three times their actual damages or $10,000, whichever is greater, plus attorney's fees and costs. California law provides additional protections under Vehicle Code 28050-28051.

Odometer fraud is commonly perpetrated by:

  • Used car dealers: Rolling back mileage to increase resale value
  • Title-washing operations: Moving vehicles across state lines to obscure history
  • Private sellers: Tampering before private party sales
  • Auction houses: Vehicles with altered odometers entering wholesale channels
  • Rental/fleet companies: High-mileage fleet vehicles with reduced readings
  • Curbstoners: Unlicensed dealers posing as private sellers
Safety Risk: Odometer fraud isn't just financial - it can be dangerous. A vehicle with 150,000 actual miles displayed as 50,000 miles may have worn brakes, suspension, timing belts, and other critical components that appear not to need service but actually require immediate attention.

Red Flags of Odometer Fraud

Watch for these warning signs that a vehicle's odometer may have been tampered with:

🚨 Wear Inconsistent with Mileage

Heavily worn brake/gas pedals, steering wheel, or driver's seat on a "low mileage" vehicle

🚨 Missing Service Records

No maintenance history or large gaps in service records

🚨 Title Discrepancies

Title shows "exempt" or "not actual" mileage, or multiple out-of-state titles

🚨 Carfax/AutoCheck Alerts

Mileage inconsistency warnings or rollback alerts on vehicle history reports

🚨 Loose or Misaligned Dash

Dashboard components that don't fit properly or show signs of removal

🚨 Oil Change Stickers

Oil change stickers showing higher mileage than current odometer reading

🚨 Digital Odometer Issues

Flickering display, uneven digit alignment, or digits that don't match style

🚨 Too Good to Be True

Price significantly below market value for a vehicle with stated low mileage

Before You Buy: Always obtain a vehicle history report (Carfax, AutoCheck), request service records, and have an independent mechanic inspect the vehicle. The NMVTIS (National Motor Vehicle Title Information System) can also reveal title history.
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Evidence Checklist

Gather this evidence to prove odometer fraud:

Vehicle History Reports

Carfax, AutoCheck, and NMVTIS reports showing mileage discrepancies or rollback alerts

Service Records

Maintenance records from dealers, shops, or state inspection stations showing higher prior mileage

Odometer Disclosure Statements

The written disclosure provided at time of sale (required by law)

Title History

All prior titles and registrations showing mileage at each transfer

Purchase Documents

Sales contract, financing documents, and all paperwork from the transaction

Photos of Wear

Document worn pedals, steering wheel, seats, and other wear inconsistent with stated mileage

Mechanic Inspection Report

Professional assessment of wear consistent with actual (higher) mileage

Dashboard Inspection

Photos/videos showing signs of dash removal or odometer tampering

Oil Change/Service Stickers

Stickers inside door jamb or windshield showing prior higher mileage readings

ECU/Computer Data

Some vehicles store mileage data in ECU modules that can't be easily changed

NMVTIS Search: The National Motor Vehicle Title Information System (vehiclehistory.bja.ojp.gov) is a federal database that tracks title history. It may reveal mileage discrepancies not shown on commercial reports.
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Calculate Damages

Calculate your potential recovery for odometer fraud:

Vehicle Value at Stated 50,000 Miles $18,000
Vehicle Value at Actual 150,000 Miles -$8,000
Actual Damages (Overpayment) $10,000
Treble Damages (3x) $30,000
Attorney's Fees (Recoverable) + Fees
Minimum Federal Recovery $30,000+
How to Calculate Actual Damages

Actual damages in odometer fraud cases are calculated as:

  • Method 1 - Overpayment: Price paid minus fair market value at actual mileage
  • Method 2 - Per-Mile Depreciation: (Actual miles - Stated miles) x Per-mile value
  • Method 3 - Comparable Sales: Compare prices of similar vehicles at stated vs. actual mileage

For example, if IRS standard mileage rates show vehicles depreciate approximately $0.10 per mile: 100,000 rolled-back miles = $10,000 in damages.

Federal Treble Damages

Under 49 USC 32710, victims recover:

  • Three times actual damages - Not discretionary; if you prove the violation, trebling is mandatory
  • OR $10,000 minimum - Whichever is greater
  • Plus attorney's fees - Reasonable costs and fees

Example: If actual damages are $5,000, you get $15,000 (3x). If actual damages are only $2,000, you still get $10,000 (minimum).

Additional State Law Damages

California state claims may provide additional recovery:

  • CLRA Damages: Actual damages plus up to 3x for willful violations
  • Punitive Damages: Available for fraud claims with malice or oppression
  • Rescission: Full refund of purchase price plus incidental costs
  • UCL Restitution: Disgorgement of ill-gotten gains

Note: You cannot double-recover for the same damages, but different claims may provide different types of relief.

Who Can Be Held Liable

Multiple parties may be liable for odometer fraud:

  • The Seller: Whoever sold you the vehicle with false odometer
  • Prior Owners: Anyone in the chain of title who tampered with or knew of tampering
  • Dealers: Dealers have higher duty to verify accuracy
  • Title Services: Companies that facilitated title washing
  • Auction Houses: May be liable if they knew or should have known

Joint and several liability may apply - you can recover from any responsible party.

Attorney's Fees: Under the Federal Odometer Act, prevailing plaintiffs recover reasonable attorney's fees. This makes it economical to hire an attorney even for moderate claims, as the defendant pays your legal costs if you win.
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Sample Letters

Use these templates for your odometer fraud demand letter:

Federal Odometer Act Demand Letter
[Your Name] [Your Address] [City, State ZIP] [Phone Number] [Email] [Date] VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED [Seller/Dealer Name] [Address] [City, State ZIP] Re: Federal Odometer Act Violation - Demand for Damages Vehicle: [Year Make Model] VIN: [VIN Number] Purchase Date: [Date] Stated Mileage at Sale: [XXX,XXX] Dear [Seller/Dealer Name]: DEMAND UNDER FEDERAL ODOMETER ACT (49 U.S.C. 32701-32711) On [Purchase Date], I purchased the above-referenced vehicle from you. At the time of sale, the odometer displayed [XXX,XXX] miles, and you executed an Odometer Disclosure Statement certifying this mileage as accurate. DISCOVERY OF ODOMETER FRAUD I have discovered that this odometer reading was false. Evidence demonstrates the vehicle's actual mileage at the time of sale was [XXX,XXX] miles or higher - a discrepancy of at least [XXX,XXX] miles. Evidence of odometer tampering includes: 1. [Carfax/AutoCheck report dated [Date] showing [higher mileage] on [earlier date]] 2. [Service records from [Source] dated [Date] showing [higher mileage]] 3. [State inspection record dated [Date] showing [higher mileage]] 4. [Excessive wear on vehicle components inconsistent with stated mileage] 5. [Oil change sticker showing next service at [higher mileage]] 6. [Other evidence] VIOLATIONS OF LAW Your conduct violates the Federal Motor Vehicle Information and Cost Savings Act, specifically: 1. 49 U.S.C. Section 32703(2) - Operating a vehicle knowing the odometer is nonfunctional or displays incorrect mileage 2. 49 U.S.C. Section 32705(a) - Providing false odometer disclosure 3. [California Vehicle Code Section 28050 - Selling vehicle with tampered odometer] 4. [California Vehicle Code Section 28050.5 - Odometer tampering] DAMAGES CALCULATION Under 49 U.S.C. Section 32710, I am entitled to recover THREE TIMES my actual damages, or $10,000, whichever is greater, plus reasonable attorney's fees and costs. Actual Damages: - Fair market value at stated [XXX,XXX] miles: $[Amount] - Fair market value at actual [XXX,XXX] miles: $[Amount] - Overpayment/Actual Damages: $[Amount] Statutory Damages: - Treble damages (3 x $[Actual]): $[Amount] - [OR $10,000 minimum, if greater] DEMAND Pursuant to the Federal Odometer Act, I demand payment of $[Amount] within thirty (30) days of your receipt of this letter. If this demand is not satisfied, I will file suit in [Federal District Court/State Court] seeking: - Treble damages or $10,000 (whichever is greater) - Reasonable attorney's fees and costs - Any additional remedies available under California law I have also reported this matter to: - National Highway Traffic Safety Administration (NHTSA) - California Department of Motor Vehicles - Federal Trade Commission You may contact me at [phone/email] to discuss resolution. Sincerely, [Your Signature] [Your Printed Name] Enclosures: - Vehicle History Report (Carfax/AutoCheck) - Odometer Disclosure Statement from purchase - Service records showing mileage discrepancy - [Other evidence] cc: [Attorney, if retained]
Demand to Dealer (Combined Federal + California Claims)
[Your Name] [Your Address] [Date] VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED [Dealership Name] ATTN: General Manager and Legal Department [Address] Re: Odometer Fraud - Federal and California Law Violations Vehicle: [Year Make Model], VIN: [VIN] Purchase Date: [Date] Dear [Dealer]: NOTICE OF ODOMETER FRAUD CLAIMS This letter serves as formal notice of claims arising from the sale of the above vehicle with a tampered odometer. BACKGROUND On [Date], I purchased the vehicle from your dealership. The odometer read [XX,XXX] miles, and your employee provided an Odometer Disclosure Statement certifying this reading. I have now discovered the odometer was rolled back. Evidence shows the vehicle actually had [XXX,XXX] miles at the time of sale: EVIDENCE OF ROLLBACK 1. Carfax Report: Shows [XX,XXX] miles on [earlier date] 2. AutoCheck Report: Mileage rollback alert 3. Dealership Service Record: [Date] service at [XX,XXX] miles (obtained via FOIA/dealer inquiry) 4. Physical Inspection: Wear patterns consistent with [higher] mileage 5. [Additional evidence] LEGAL VIOLATIONS Your dealership has violated: Federal Law: - 49 U.S.C. 32703 (Odometer tampering/knowledge) - 49 U.S.C. 32705 (False odometer disclosure) California Law: - Vehicle Code 28050 (Sale of vehicle with tampered odometer) - Vehicle Code 28050.5 (Odometer tampering) - Civil Code 1770(a)(5)(7) (CLRA - misrepresentation) - Business & Professions Code 17200 (Unfair competition) DAMAGES Federal Odometer Act (49 U.S.C. 32710): - Actual damages: $[Amount] (value at stated miles - value at actual miles) - Treble damages (mandatory): $[Amount] - Attorney's fees: [TBD] California Claims (Civil Code 1782 Notice - CLRA): This letter also serves as the required 30-day notice under Civil Code Section 1782. You have 30 days to cure the violation before I may seek CLRA damages. DEMAND Within thirty (30) days, you must either: OPTION 1 - RESCISSION: 1. Accept return of the vehicle 2. Refund full purchase price of $[Amount] 3. Cancel/pay off financing with [Lender] 4. Reimburse incidental costs of $[Amount] 5. Compensate for treble damages OR OPTION 2 - MONETARY SETTLEMENT: 1. Pay Federal Odometer Act damages of $[Amount] 2. Pay additional California law damages 3. Pay attorney's fees if counsel retained CONSEQUENCES OF FAILURE TO RESOLVE If not resolved, I will: 1. File suit in [Court] for all available damages 2. Report to California DMV for dealer license investigation 3. Report to California Attorney General 4. File NHTSA complaint 5. Report to Federal Trade Commission Your dealership's failure to verify odometer accuracy before sale is inexcusable. I expect a prompt response. Sincerely, [Your Name] [Phone] [Email] Enclosures: [List]
Demand to Private Seller
[Your Name] [Your Address] [Date] VIA CERTIFIED MAIL [Seller Name] [Address] Re: Odometer Fraud - [Year Make Model] VIN: [VIN] Dear [Seller Name]: DEMAND FOR DAMAGES - ODOMETER FRAUD On [Date], I purchased the above vehicle from you for $[Amount]. You represented that the vehicle had [XX,XXX] miles and signed an Odometer Disclosure Statement to that effect. I have discovered this mileage representation was false. EVIDENCE 1. A Carfax report reveals the vehicle had [XXX,XXX] miles recorded on [earlier date] - proving the odometer was rolled back by at least [XX,XXX] miles 2. Service records from [Source] confirm the higher mileage 3. The vehicle's wear is consistent with the higher actual mileage FEDERAL LAW VIOLATION Under the Federal Motor Vehicle Information and Cost Savings Act (49 U.S.C. 32701 et seq.), commonly known as the Federal Odometer Act: - Rolling back or tampering with an odometer is illegal (49 U.S.C. 32703) - Providing a false odometer disclosure is illegal (49 U.S.C. 32705) - Victims are entitled to THREE TIMES their damages, or $10,000, whichever is greater, plus attorney's fees (49 U.S.C. 32710) MY DAMAGES - I paid $[Amount] for a vehicle I believed had [XX,XXX] miles - The vehicle's actual value at [XXX,XXX] miles is only $[Amount] - My actual damages (overpayment): $[Amount] - Treble damages: $[Amount] DEMAND I demand payment of $[Amount] within 30 days. If I do not receive payment, I will file suit seeking treble damages, attorney's fees, and all other available relief. Federal odometer fraud is also a crime punishable by up to $100,000 in fines and 3 years imprisonment - I have not yet filed a criminal complaint. Please contact me at [phone/email] to arrange payment. Sincerely, [Your Name] Enclosures: - Carfax Report - Odometer Disclosure Statement - [Other evidence]

Next Steps

After discovering odometer fraud, take these steps:

1. Gather Evidence Immediately

Document the fraud before evidence disappears:

  • Order Carfax, AutoCheck, and NMVTIS reports
  • Request service records from manufacturer, dealers, and shops
  • Photograph the odometer and all wear items
  • Preserve the Odometer Disclosure Statement from purchase
  • Get an independent mechanic to document wear
  • Check for oil change stickers with prior mileage
  • Request title history from DMV
2. Send Demand Letter

Prepare and send your demand:

  • Calculate your actual damages (overpayment)
  • Demand treble damages or $10,000 minimum
  • Send via certified mail with return receipt
  • Keep copies of everything
  • Set 30-day deadline for response

Note: The Federal Odometer Act does NOT require pre-suit demand, but it may help settle quickly. CLRA claims DO require 30-day notice.

3. File Regulatory Complaints

Report the fraud to authorities:

  • NHTSA: File at nhtsa.gov/report-a-safety-problem (select odometer fraud)
  • California DMV: Complaint against dealer license at dmv.ca.gov
  • California AG: Consumer complaint at oag.ca.gov
  • FTC: Report at reportfraud.ftc.gov
  • Local DA: Contact consumer fraud unit
4. Consult an Attorney

Consider hiring a consumer protection attorney:

  • Many take odometer cases on contingency
  • Attorney's fees are recoverable under federal law
  • Attorneys can access records you can't obtain yourself
  • Most offer free consultations for odometer fraud
  • Experienced attorneys know how to maximize recovery
5. File Lawsuit if Necessary

If the seller won't pay, file suit:

  • Federal Court: Federal question jurisdiction for Odometer Act claims
  • State Court: State claims can be filed in California Superior Court
  • Small Claims: Up to $10,000 limit (no attorney allowed)
  • File in county where you bought the vehicle or where seller is located

Federal Odometer Act claims can be filed in federal court regardless of amount, giving access to more formal discovery procedures.

Act Quickly: The Federal Odometer Act has a 2-year statute of limitations from the date you discover (or should have discovered) the fraud. California fraud claims have a 3-year limitation. Don't delay - evidence can be lost and time limits are strict.

Victim of Odometer Fraud?

Consumer protection attorneys can help you recover treble damages and the $10,000 federal minimum - often at no upfront cost.