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New Type of Car scam ! Gives the Scammer the car and its title !

Discussion in 'Off Topic' started by thevaibhav, Dec 10, 2016.

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  1. thevaibhav

    thevaibhav Member

    Joined:
    Dec 10, 2016
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    Location:
    West palm beach
    Sorry for having to paste this here, request admin to move it to the right forum.. but needed to spread the message !

    I wanted to upgrade my 2015 Honda Accord V6 that was leased from Honda
    Financials and hence took to a few dealerships for evaluation. Most
    quoted numbers far less that the payoff value and hence decided to
    list the car on various websites including Edmunds / Cars.com and
    KBB.com

    I am keep names, email address and phone numbers confidential as the
    case is currently being investigated by the police. I am posting this
    to help other seller be aware of this possibly type of Scam and also
    protect them from the thousands towards lawyers fees they might have
    to spend to possible recover.

    Mr XX called me and expressed interest in buying my car given that I
    had a very detailed description on the site, he said he is willing to
    make a full price offer. I had mentioned it was a lease and hence he
    offered to make direct payments to Honda and once I receive the payoff
    confirmation and title that he would have the car picked up.. He
    mentioned he lived in another state but his sister and brother lived
    45 miles from where i am at.. we executed a bill of sale with the
    details that included that once Honda get the money and once title is
    release to me, he can collect the car..

    Seemed like a fair deal and hence i called Honda and explained the
    situation and authorized them to speak to Mr. XX to make a payoff.. MR
    XX called Honda, provided his Bank information and made the payoff
    payment. He then called me and gave me the confirmation number.. I
    called Honda and they confirmed that payoff instruction was received
    and that i should get the titles in a few days..

    I called Honda a few days later when i observed that they payment had
    reversed and was told that this was a result of a BANK error and that
    they were in touch with MR XX.. MR XX also messaged me that a bank
    error caused the payment to be returned and that a new payment was
    made.. Honda confirmed a new payment was received..

    A few days later, I get the payoff letter, odometer statement and my
    title in the mail..its a weekend so could not call Honda, but I check
    online and my account says paid off.. I inform Mr. XX that the title
    has arrived and he confirms that his sister would pickup the car the
    next day.. Given that he made the payoff and his sister was to collect
    the car, i asked him to send me an authorization confirming that his
    sister would collect the car.. I also asked him to send a bank
    confirmation letter confirming funds were collected from his account !

    Miss YY arrives at the said time with the Bank letter and Mr XX emails
    me the authorization to hand over the car.. Honda website says the
    account is paid off and hence I remove my tag, Cancel my insurance and
    then hand over the car to miss YY. I also go to the DMV and transfer
    the car over...

    A few days later I am informed by Honda that the 2nd payment made has
    also been rejected by the bank! I just could not believe this ! I
    asked Honda why they sent me the title and payoff if the payment was
    not confirmed and was told that it is as per process that once payoff
    is requested a title and payoff letter is sent without confirming
    funds were received ! This was a shock to me .. a very rude and
    expensive shock..

    Mr XX and Miss YY has since disappeared and i am left with a 25000
    dollor bill.. money that i just dont have !

    I made a police complaint and also following up with a demand
    notice... this is a new type of SCAM.. One that give the Scammer not
    only the car but also a clean title to sell the car..

    Please be aware... I will as soon as the investigation is complete
    release the names, email address, photos and other information to
    all..

    Please help forward this..
     
    • Informative x 6
  2. Maximapolak

    Maximapolak Member

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    Nov 13, 2016
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    Location:
    North NJ / SouthCentral PA
    I don't trust Anyone that doesn't haggle on the price. No one in their right mind would pay full asking price without offering less first.

    Red flag right there. However, Honda sending you the title is strange if they never actually received the money.

    You did ID the buyers (and keep record), didn't you?
     
    • Like x 2
  3. Frank Schwab

    Frank Schwab Member

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    Location:
    Arizona
    Wow. Sounds like you did everything I'd do. Banks sure have rigged the game in their favor - "What? I told you three days ago that payment was good? Well, my rules give me four days to revoke it, so I'm going to do that...".
     
    • Like x 1
  4. aesculus

    aesculus Still Trying to Figure this All Out

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    Location:
    Northern California
    Seems Honda would be out the $25k. They released the title to you on the auspices the funds were good. Their error IMHO but I am no lawyer. I suggest you get one.
     
    • Like x 3
  5. dhcp

    dhcp Member

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    Location:
    San Mateo, CA
    Yikes, so sorry to hear this and it sounds like you did _everything_ right. What is the insurance situation since you had canceled it? It seems like it could be considered "theft" but of course the insurance company will try to be slippery.

    Is there anything you could possibly have done different to protect yourself in this situation? It seems like you made all the right moves.

    Thanks for sharing your story with the community and please keep us updated on the outcome, I'm sure a lot of people will want to follow it.
     
  6. thevaibhav

    thevaibhav Member

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    Location:
    West palm beach
    For now my only hope is the police ! given that insurance was cancelled before i handed over the car does not help :(
     
  7. thevaibhav

    thevaibhav Member

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    They have my account now in pending.. Speaking to a Manager at honda, just praying something works out !
     
  8. thevaibhav

    thevaibhav Member

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    Funny, but in a sense that is exactly what they said using legal language of course !
     
  9. kort677

    kort677 Active Member

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    Location:
    florida.
    what a shame for the OP.
    this is why when some people say that they get low balled by tesla on their trade in I always reply the 2 thousand or so you could possible make by selling it privately is not always worth the effort and risks involved. YMMV
     
    • Like x 3
  10. thevaibhav

    thevaibhav Member

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    I did ID the person ! but will have to see what the SO called miss YY will have to say when the cops speak to her !
     
  11. thevaibhav

    thevaibhav Member

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    I know, looking back i wonder if that would have been cheaper :(
     
  12. thevaibhav

    thevaibhav Member

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    If any one here know of any TV reporters i could share this with, please do let me know or please do forward them this story.. Would like to help others..
     
  13. BluestarE3

    BluestarE3 Active Member

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    #13 BluestarE3, Dec 10, 2016
    Last edited: Dec 10, 2016
    Many local TV stations have a consumer affairs investigative unit that will follow up on a case and then air the story on the news program. If the "sister" actually still lives 45 miles away, they may show up at her front door with camera in tow and shame her into providing some type of response. But I get the feeling the "sister's" name/address are fictitious too? Anyway, check with your local stations. At the very least, you can get your story aired as a public service to warn others to be on the lookout.
     
  14. whitex

    whitex Active Member

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    IAMAL but if Honda released the title, it's their problem. The loan was secured by the car, they let it go. At most they can try to get the DMV to take the title back, and maybe try to repossess the car - neither hurts the OP.

    Btw, what state DMV sent you the title so quickly. I've paid off cars in few states and it always took at least 2-3 weeks to get the title after the payoff.
     
    • Like x 2
  15. brkaus

    brkaus Active Member

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    I've read about variations of this, but never with bad transfers to release a title. Wow. They've worked the timing down to the hour.
     
    • Helpful x 1
  16. thevaibhav

    thevaibhav Member

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    Well the sister and brother have social profiles.. they did not expect me to remember the name nor did they think i was able to get the license copy of the sister from the building security.. I was able to track her phone number too.. but none of this has yet helped close the case..

    I tried reaching out to a few tv stations.. guess i need to work on my presentation skills ! None of them for now wanted to cover.. Standard response was send us an email and we will come back to you ..
     
  17. thevaibhav

    thevaibhav Member

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    I live in Florida ! also Honda does all of this from their CA office ! For now they did tell me i am on the hook for payments.. i am new in the country with almost no US credit.. any negative would kill what little i have :(
     
  18. thevaibhav

    thevaibhav Member

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    Well funny i remember one of his( Mr XX) texts to me read "I am a hard working man, i work 16 hours a day" .. Now i know that was true :(
     
  19. Alex D

    Alex D Member

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    Seems strange to me that Honda released the title so quickly. When I sold my Durango right after taking delivery of my MS, I also had the buyer paying of the loan on the Durango, very similar to your situation. But the financing institution did not release the title until 15 business days after the payoff for exactly this reason. I definitely would get a lawyer, clearly Honda dropped the ball here.
     
  20. SageBrush

    SageBrush Active Member

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    I'm not following something here: OP wrote
    The typical story is that the seller's bank credits the funds before actual receipt and the transaction occurs during this interval. This story is different.
     

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