How to Report Suspected Odometer Fraud After Buying a Used Car

What is odometer fraud?

Federal law prohibits disconnecting, resetting or altering a motor vehicle's odometer with intent to change the mileage registered by the odometer. Federal law also regulates mileage disclosures when vehicle ownership is transferred.

NHTSA describes odometer fraud as a crime and maintains an Office of Odometer Fraud Investigation that investigates potential federal violations and assists state agencies enforcing odometer laws.

A mileage discrepancy does not by itself prove fraud. An odometer may have been repaired or replaced, records may contain mistakes, and federal disclosure rules include exemptions for certain vehicles and transfers. Preserve the evidence and let the appropriate enforcement authority determine whether a violation occurred.

What should you check before reporting suspected fraud?

Start by building a mileage timeline. NHTSA recommends comparing several independent records rather than relying only on the number currently displayed on the dashboard.

• Vehicle title: compare the mileage recorded on the title with the odometer and inspect the title closely if the mileage notation appears altered, obscured or difficult to read.
• Maintenance and inspection records: compare dated mileage entries with the current reading.
• Service stickers: look for oil-change or maintenance stickers on windows, door frames, in the glove compartment or under the hood.
• Vehicle history: NHTSA recommends requesting a vehicle-history report and checking it for mileage discrepancies.
• Vehicle condition: compare the reported mileage with wear on components such as the gas, brake and clutch pedals. NHTSA also notes that tire condition can provide another clue.

Keep copies of the sales advertisement, purchase contract, title, odometer disclosure and communications with the seller when available. These records can help establish what mileage was represented when the vehicle was sold.

Where should you report an individual odometer fraud case?

NHTSA directs individual odometer fraud cases to the appropriate state enforcement agency. NHTSA maintains an official state-by-state directory identifying the agency and contact information for each state.

The responsible authority is not the same nationwide. Depending on the state, it may be a department of motor vehicles, attorney general's consumer-protection office, state police, transportation department or another enforcement unit. Use the NHTSA directory rather than assuming that your local DMV is always the correct investigative agency.

Because the complaint procedure and evidence requirements are determined by the state agency handling the case, there is no single national complaint form, submission method or processing time for an individual odometer-fraud complaint.

When should you contact NHTSA directly?

NHTSA distinguishes an individual case from information concerning a large-scale odometer fraud scheme. For a large-scale scheme, NHTSA instructs consumers to contact its Vehicle Safety Hotline at 888-327-4236. The listed TTY number for individuals with hearing impairments is 888-275-9171.

NHTSA's Office of Odometer Fraud Investigation conducts criminal investigations for potential prosecution by the U.S. Department of Justice and assists state agencies with enforcement. The Department of Justice Consumer Protection Branch has primary responsibility within DOJ for prosecuting federal odometer-fraud cases.

What mileage information should a seller disclose?

Federal law generally requires mileage information to be disclosed in connection with the transfer of ownership of a covered motor vehicle. The federal disclosure form warns that if the odometer reading does not represent the vehicle's actual mileage, the transfer document must identify an odometer discrepancy.

Federal regulations contain exemptions, so the disclosure obligation is not identical for every vehicle. Among the exemptions, vehicles manufactured in or before model year 2010 can become exempt based on the federal 10-year rule, while vehicles manufactured in or after model year 2011 generally use a 20-year period under 49 CFR 580.17. Other exemptions also exist. An exemption from a particular disclosure requirement should not be treated as proof that intentionally altering an odometer to deceive a buyer is lawful.

Can a buyer seek damages for odometer fraud?

Reporting suspected fraud to an enforcement agency is separate from pursuing compensation. Under 49 U.S.C. 32710, a person who violates the federal odometer chapter or its regulations with intent to defraud is liable for three times actual damages or $10,000, whichever is greater.

The statute allows a private action in an appropriate U.S. district court or another court of competent jurisdiction. The federal action must be brought no later than two years after the claim accrues. When judgment is entered for the claimant, the statute provides for costs and a reasonable attorney's fee.

State law may provide additional rights or remedies. The federal odometer statute generally does not displace state odometer-tampering law unless the state law is inconsistent with the federal chapter. Because filing deadlines and legal claims depend on the circumstances, a buyer considering a civil claim may wish to obtain legal advice promptly.

What should you do if you still own the vehicle?

Keep the evidence of the suspected discrepancy with the vehicle records. Do not alter documents or attempt to make the odometer match an earlier mileage record yourself.

If you later transfer the vehicle, comply with the mileage-disclosure rules that apply to that transfer. Federal odometer disclosure forms provide a specific warning for cases in which the displayed reading is not the vehicle's actual mileage.

Is odometer fraud the same as a safety defect or recall?

No. Odometer fraud concerns false or manipulated mileage and related disclosure requirements. A manufacturer safety recall or a vehicle defect follows a different NHTSA process.

If you also need to determine whether the vehicle has an unresolved recall, use the Helpydo guide to check the car's VIN for an open safety recall. For a safety problem that may represent a defect, see how to report a vehicle safety defect to NHTSA.

Common mistakes to avoid

• Do not report an individual mileage dispute only as a general vehicle safety complaint. NHTSA specifically directs individual odometer-fraud cases to state enforcement agencies.
• Do not rely only on the current dashboard reading. Compare it with the title and dated maintenance, inspection and vehicle-history records.
• Do not discard the sales advertisement, title, disclosure statement or purchase documents after discovering a discrepancy.
• Do not assume every mileage discrepancy proves intentional fraud. Preserve the evidence and report the facts accurately.
• Do not assume the same agency handles individual complaints in every state. Use NHTSA's state enforcement directory.
• If you are considering a federal civil claim, do not overlook the two-year statutory deadline after the claim accrues.