NHADA has been warned by a NH Dealer of a potential scam that’s been going around the New England area including New Hampshire. There is a company, or companies with an alias, going around looking for repos on dealer’s lots, using fake paperwork and picking those units up. They are either representing they are from the lender with generic bill of lading that are seemingly legit. They try to get the lease company or lien holder to pay large storage fees or they attempt to get titles thru the state of NH.
The dealership is constantly busy and there are lots of tow companies that come and go. Dealership personnel need to take the time to verify the legitimacy of a tow/repo company prior to signing off on the vehicle being released.
Here is one example:
In August, a dealer had a voluntary repo for his Captive Finance Company on his lot , a tow company came in with fake credentials saying they were there to pick unit and did. The dealer later got calls from his Captive Finance Company looking for the unit.
A local auction had the title, but the unit never made it to auction. They spoke to the NH State Police who said this is a known scam. Per the NH DMV Title Bureau a lienholder is the only authorized party to apply an affidavit of repossession using the TDMV16 form and a title. The abandoned vehicle statute does not apply for vehicle repossessions.
The dealer did some investigating to try and locate the unit themselves, and thanks to a CARFAX, he was able to find out they had done a NH state inspection on the unit. He filed police report with the CARFAX and NH state police were able to get the unit back.
As we find out more information about this developing scam, we will continue to keep you up to date. If you know anything about this issue, or would like to report a scam of your own, please call the NHADA office at 603-224-2369 or send us a note.