Victims of odometer scam take legal action against Quebec dealers
Last Updated: Friday, February 22, 2008 | 3:50 PM ET
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A group of Quebecers who were scammed into buying used cars with rolled-back odometers say they're suing the dealerships that sold them doctored vehicles.
The RCMP said at least 332 people were duped into buying used cars with tampered odometers from several dealers in the Laurentians since 2006.
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Police say at least three dealers were involved in the odometer scam:
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On Thursday, police arrested five men and charged them with 334 fraud counts in connection to the scheme, which investigators say netted more than $6 million.
The cars were bought in other provinces and transferred to Quebec, where the odometers were rolled back an average of 100,000 km, said RCMP Sgt. Claude Piedalue.
The dealers then sold the vehicles at inflated prices.
At least three car dealers in Lachute and St. Eustache were involved in the scam, police said.
Daniel Gobay launched a class action lawsuit along with at least 50 other victims seeking damages from the dealers.
His lawyer, François Lebeau, said victims stand a good chance to recoup their money because even if the dealers can't pay, consumer protection laws allow people to sue banking institutions that financed the car sales.
The group of victims is waiting for the lawsuit to be authorized in court.
Doctored odometers are hard to detect, and drivers need to be vigilant when buying used cars, said Quebec's Consumer Protection Agency.
Consumers should double-check the vehicle's history and its record at the automobile insurance board and identify the car's previous owner, said agency lawyer Marc Migneault.
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