AG Paxton Issues Consumer Alert: Beware of Flood-Damaged Vehicles in After Hurricane Harvey

A cleaned-up vehicle could be a ticking time bomb with unseen damage posing mechanical and safety risks to the buyer. . . Texas Insider Report: AUSTIN Texas Attorney General Ken Paxton today is advising any Texan considering a used car purchase to be wary of vehicles for sale that might have suffered flood damage from Hurricane Harvey. Its estimated that between 500000 and one million automobiles were submerged in floodwaters during the unprecedented disaster. In Texas a seller is required by law to tell prospective buyers about damage to a vehicle. If the damage is from flooding the words Flood Damage must be included on the vehicles title. Failure to disclose that information may be a violation of the states Deceptive Trade Practices Act.

While most Texas businesses and individuals are law-abiding there are always those looking to take advantage of consumers by selling them flood-damaged vehicles in the months following a hurricane Attorney General Paxton said. A cleaned-up vehicle could be a ticking time bomb with unseen damage posing mechanical and safety risks to the buyer. If you suspect fraud report it to the Consumer Protection Division of my office at 1-800-621-0508. We will aggressively investigate and prosecute cases.

Attorney General Paxton and his Consumer Protection Division offer Texans the following tips to protect against buying flood-damaged vehicles:

• Look for tell-tale signs of flooding. The Texas Department of Motor Vehicles offers a checklist at http://www.txdmv.gov/motorists/buying-or-selling-a-vehicle/title-check-look-before-you-buy/water-damage.
• Have the vehicle inspected by an independent competent automotive technician who has no relation to the seller. Since flood damage is hard to spot paying an expert mechanic for an inspection provides peace of mind.
• Check the vehicle history with a private service that can research insurance claims. Visit the National Motor Vehicle Title Information System for its list of approved providers at  https://www.vehiclehistory.gov/nmvtis_vehiclehistory.html.
• Always review the vehicles paper title before you buy. Check to see if it has been branded as salvaged or damaged.

Report suspected fraud to the attorney generals Consumer Protection Division by calling toll-free 1-800-621-0508 or by filing an online complaint at https://www.texasattorneygeneral.gov/cpd/file-a-consumer-complaint.