The key facts
- The scheme: a loan secured by the car — sale — a police report of coercion
- Until the pledge is recorded in the registry, the car looks legally clean
- If the court recognizes the seller as a victim, the car may be returned to them, and the buyer will have to sue for the money
How the scheme works
Buying a used car at a noticeably reduced price can result in losing both your money and the car itself. Lawyer Evgenia Sabitova told RIA Novosti about a new fraud scheme. The seller first takes out a loan secured by the vehicle, then sells the car, and after receiving payment goes to the police claiming they entered the deal under pressure from fraudsters.
Why the buyer turns out to be vulnerable
The scammers' calculation relies on the fact that information about the pledge does not always appear in the registry right away. While the encumbrance is not reflected in the database, the owner assures the buyer that the documents and legal history are all in order and offers a below-market price. Having received the money, the former owner reports coercion. Law enforcement may seize the car for the duration of the inspection, and the buyer themselves may be checked for involvement in the crime.
How the dispute ends and what the lawyer advises
The most unfavorable outcome is if the court recognizes the seller as a victim: then the car may be returned to the former owner, and the buyer will have to seek reimbursement of the money paid. According to Sabitova, similar disputes also arise in cases where elderly people sell their carsand then claim they did so under the influence of phone scammers. The lawyer advises, before buying, to check the car by VIN in the registry of notifications of pledges of movable property on the website of the Federal Notarial Chamber; if the car is under pledge, transfer the money directly to the bank, indicating the purpose of the payment. If the seller reports coercion after the deal, the buyer, in her opinion, should pay attention to the possible abuse of rights and demand that the circumstances of the police report be examined.
