Car Dealer Harassment for Lost Cashier’s Check – $30,000 Settlement

A Maryland car dealer harassment claim was filed by Whitney, LLP after a car dealer threatened its customers with criminal charges over a $17,000 cashier’s check the dealership’s employee lost. Instead of following Maryland law to resolve the missing check, the dealer launched an escalating harassment campaign targeting a son and his 75-year-old mother over the Christmas holiday, complete with voicemail threats, insults, and repeated threats of police involvement. Whitney, LLP’s attorneys who sue car dealers in Maryland settled this dealership harassment and consumer fraud lawsuit for $30,000 after filing the claim in arbitration.  We know that Maryland car dealers often behave lawlessly and often do not care about their customers

If a Maryland car dealer threatened you, harassed you, or used intimidation to try to force payment, you have significant legal rights and can fight back. Whitney, LLP can help.

Call us now at 410-583-8000 or use our Quick Contact Form for your Free Case Evaluation. We represent clients across Maryland including Baltimore, Towson, Columbia, Annapolis, Silver Spring, Waldorf, Rockville, Salisbury and Hagerstown.

Whitney, LLP has successfully represented many clients who were abused and harassed by car dealers and their employees.

Watch our YouTube Channel for more information on some of our other lawsuits and arbitrations against car dealers.

Car Dealer Lost a Cashier’s Check, Then Harassed Their Customers

Our clients went to a Maryland car dealership to purchase a used vehicle.  During the sales process, the agreed price was raised by $2,000. When our clients pushed back, the finance manager lied and claimed the increase was due to a mandatory “Certified Pre-Owned fee” because “the bank required the car to be certified to get the loan.” The price was partially reduced, but the customers were still charged an extra $1,252.50 for a fee that, upon information and belief, no lender actually required. This type of hidden fee is one of the most common auto fraud schemes Whitney, LLP sees at Maryland dealerships.

The mother then provided a $17,000 cashier’s check as a down payment that was handed directly to the dealership’s finance manager. The dealership lost the cashier’s check.

Rather than follow Maryland’s established legal process for lost cashier’s checks, which requires the payee to file a sworn declaration of loss with the issuing bank and wait 90 days before the claim becomes enforceable, the dealer took matters into its own hands and launched a car dealer harassment campaign against its own customers to try and force a replacement check.

Many Maryland car dealers do not follow the law, and instead try to force their customers to make unwanted decisions that benefit the dealer and violate Maryland and federal law.

How a Maryland Car Dealer Harassed and Threatened Customers

What followed was an escalating pattern of dealership harassment and threats, all targeting their customers who had done absolutely nothing wrong:

• First, a dealership employee called and threatened to cancel the deal and repossess the vehicle if another $17,000 check wasn’t immediately produced, despite having no legal right to do either.
• Another employee called our client, called him “stupid,” and repeated the repossession threat.
• The dealership’s attorney left voicemails claiming he was conducting an internal investigation into money given to an employee who “did not provide the money” to the dealership.
• On Christmas Eve, the attorney left a voicemail threatening to “seek law enforcement’s assistance” and warned that if our client did not call back by a specific deadline, he would “go to the authorities.”
• On December 26, the attorney called the mother and threatened criminal charges against both her and her son, referenced the son’s past criminal record, and claimed to have surveillance video of the transaction.
• On December 27, the attorney texted and called again, repeating the criminal charge threats and demanding the check be delivered the very next day.

When the son explained that Maryland law required a 90-day waiting period before a cashier’s check could be cancelled and replaced, the dealership’s attorney called him a liar,  even though the son was exactly right about what the law requires. When the son asked to see the surveillance video the attorney claimed to have, the attorney refused to provide it.

The mother ultimately had to return to her bank, explain the entire harassment campaign, and only then did the bank agree to cancel the original cashier’s check early so a replacement could be issued.

The good news is that consumers who are faced with car dealer abuse have many legal rights and can fight back.

Maryland and Federal Laws the Dealership Violated

Maryland and federal law give car dealer harassment victims significant legal rights. Whitney, LLP’s attorneys who sue car dealers for harassment, fraud, and consumer protection violations  brought claims under multiple statutes:

Maryland Consumer Protection Act (CPA): Maryland’s CPA prohibits deceptive and abusive trade practices. The dealer was alleged to violated the CPA as follows: misrepresenting why the price increased, failing to repair the vehicle as promised, running an unauthorized credit inquiry, and using intimidation and threats to coerce payment. Read more about how Maryland car dealer fraud works and what victims can do.

Maryland Consumer Debt Collection Act (MCDCA): The MCDCA specifically prohibits a dealer or its attorney from threatening criminal prosecution to collect a debt unless the consumer actually violated a criminal statute. Threatening police involvement, referencing a past criminal record, and using repeated harassing contact to pressure payment are all prohibited.

Maryland Statute Against Financial Exploitation (SAFE Act): The mother was 75 years old, well above the SAFE Act’s threshold of 68, making her an “older adult” with enhanced legal protections. The SAFE Act prohibits using intimidation, coercion, and threats to obtain an older adult’s money.  Threatening an elderly woman with criminal prosecution to force a $17,000 payment, over a check the dealership’s own employee lost, is within the conduct the SAFE Act was designed to address.  Whitney, LLP’s SAFE Act attorneys have experience successfully representing older adults and disabled adults who are taken advantage of by dishonest businesses. 

Fair Credit Reporting Act (FCRA): The day after the sale was finalized and financing had already been approved, the dealership ran a hard credit inquiry on the son without his knowledge or consent. Whitney, LLP has handled multiple Maryland car dealer credit pull cases, including a $60,000 settlement after a dealer ran a client’s credit 24 times without authorization.

Whitney, LLP Filed in Arbitration and Settled the Case for $30,000

After Whitney, LLP brought a claim in arbitration against the dealership, our clients were willing to settle their claims in order to get enough money to pay off the vehicle’s loan. The lost cashier check andcar  dealer harassment case settled for $30,000.  Of course, all cases are different, and past results do not guarantee future performance.

Read about more of our Maryland car dealer lawsuits, complaints, and settlements, including summaries of over 50 cases Whitney, LLP has handled against Maryland dealerships.

What Maryland Law Requires When a Car Dealer Loses a Cashier’s Check

When a car dealer, or any business, loses a cashier’s check, Maryland law provides a clear and specific process that protects the consumer under MD Code, Commercial Law § 3-312 as follows:

The business, not the customer, must file a sworn declaration of loss. The payee (the dealer that received and lost the check) must provide a sworn written declaration of loss to the bank that issued the cashier’s check. The consumer who provided the check has no legal obligation to immediately produce a second one.

There is a mandatory 90-day waiting period. The claim does not become enforceable until the later of (1) the date the claim is asserted, or (2) the 90th day after the check’s date. This waiting period protects consumers from the very real risk of the original check surfacing and being cashed, which would leave them having paid twice with no recourse.

The customer who gave the business a cashier’s check bears no fault and no immediate obligation. Once you hand over a cashier’s check and receive a receipt or take delivery, you have fulfilled your obligation. A dealer or business that loses a cashier’s check has no right to and cannot demand immediate replacement on its own timeline.

Threatening a customer to force an early replacement is not a legal remedy. Using threats, intimidation, false accusations, and harassment to pressure a consumer into skipping the 90-day process and provide another check can violate Maryland and federal debt collection law. This issue is not limited to car dealers – no business can force its customer to violate Maryland law.

Frequently Asked Questions: Maryland Car Dealer Harassment and Lost Cashier’s Checks

This case illustrates several critical points for anyone who has been threatened or harassed by a Maryland car dealer:

• A car dealer cannot threaten you with criminal charges to collect a debt. Whether the threat comes from a salesperson, finance manager, or the dealership’s own attorney, threatening undue criminal prosecution to force payment violates Maryland and federal law.
• A car dealer cannot threaten to repossess a vehicle it already sold you even if they lose the down payment check. No. Once a vehicle sale is finalized and financing is approved, the dealer has no legal right to take the vehicle back simply because it lost paperwork. Threatening repossession under these circumstances can itself violate Maryland and federal debt collection law.Once the deal is done and financing is finalized pursuant to Maryland law, the dealer has no legal right to take the vehicle back. Learn more about Maryland wrongful repossession.  Many dealers engage in unlawful repossessions.
• If a dealer lost your cashier’s check, you do not have to immediately write another one. Maryland law gives the dealer a legal path to follow. You are protected during the 90-day window, and you do not have to risk double-payment by providing another cashier’s check.
• If you are 68 or older, the SAFE Act provides additional remedies including treble damages. A dealer or its attorney that violates the SAFE Act may face liability of up to three times actual damages plus attorney’s fees.
• Car dealer fraud and deception frequently involves more than one violation.  During our initial case evaluations, Whitney, LLP often finds multiple violations that our clients are not aware of.
• Price increases above the advertised price, and illegal fees, are illegal.  If your price changed between the online price, showroom and the finance office, those practices may also violate the Truth in Lending Act (TILA) and the Maryland Consumer Protection Act.
• Can I sue for car dealer harassment in Maryland? Yes. Maryland law provides multiple avenues for victims of car dealer harassment, including claims under the Maryland Consumer Protection Act, the Maryland Consumer Debt Collection Act, and the federal Fair Debt Collection Practices Act. Whitney, LLP’s Maryland attorneys have filed hundreds of legal actions to sue car dealers, including for harassment, threats, fraud, and consumer protection violations.
• How much can I recover if a Maryland car dealer harassed or threatened me? Maryland and federal law allow for compensatory damages, emotional distress damages, statutory damages, punitive damages, and attorney’s fees in many cases. Whitney, LLP has recovered millions of dollars in compensation for our clients.

Daniel W. Whitney, Jr. and Daniel W. Whitney of Whitney, LLP

Maryland Attorneys Who Sue for Car Dealer Harassment, Threats, and Fraud

Whitney, LLP has extensive experience bringing claims against Maryland car dealerships for car dealer harassment, threats, deceptive practices, abusive debt collection, unauthorized credit inquiries, and consumer protection violations. See some of our past case results and learn about the types of auto fraud claims we handle.

If a Maryland car dealer threatened you with criminal charges, lost your cashier’s check and demanded another one, harassed you, or deceived you, you have legal rights and can fight back. Whitney, LLP can help. 

Call us now at 410-583-8000 or use our Quick Contact Form for your Free Maryland Car Dealer Fraud Case Evaluation.

We represent clients across Maryland including Baltimore, Towson, Columbia, Annapolis, Silver Spring, Waldorf, Rockville, Salisbury and Hagerstown.

CONTACT WHITNEY, LLP

Daniel W. Whitney, Jr., Esq.

Whitney, LLP

409 Washington Ave, Ste 750

Towson, MD 21204

Phone: 410-583-8000

Email: info@whitneyfirm.com

Website: https://www.whitneyfirm.com

This blog is for informational purposes only and does not constitute legal advice. Prior results do not guarantee future results, and all cases are different.