Articles Posted in Investigations


The New Jersey Consumer Fraud Act should be liberally construed to effectuate its remedial purpose. The New Jersey Consumer Fraud Act was passed in 1960 to permit the Attorney General to combat the increasingly widespread practice of defrauding the consumer. Cox v. Sears Roebuck & Co., 138 N.J. 2, 14 (1994) (quoting Senate Committee, Statement to the Senate Bill No. 199 [1960].) The New Jersey Consumer Fraud Act, N.J.S.A. 56:8-2, states:

“Any act, use or employment by any person of any unconscionable commercial practice, deception, fraud, false promise, misrepresentation, or the knowing concealment, suppression or omission, of material fact with intent that others rely upon such concealment, suppression, or omission in conjunction with the sale . . . or with the subsequent performance of such person as aforesaid, whether or not any person has, in fact, been misled, deceived or damaged thereby, is declared to be an unlawful practice.

Damaged Cars and Suing the Lender.

You can collect from the lender for defective cars under the HOLDER RULE.

Since the contract that the lender is holding permits the buyer to sue the lender, the lender can be sued up to the amount paid on the contract. The lender is in the position to allocate the risk for such losses and defray the risk.

What happens if the dealer sells you a damaged car? Have they violated the New Jersey Consumer Fraud Act?


The law in New Jersey is no longer “buyer beware” and New Jersey has taken the more ethical approach to the sale of goods. The dealer is charged with knowing the goods that they sell, such as cars. If they make a promise that the car has not been in an accident they must make good on the affirmative representation. If their statements are false then the dealer can be sued for a violation of the Consumer Fraud Act, NJSA 56:8-2.

I had a client call me today with complaints against Craftmatic. The allegation was that he forwarded a payment on time and was not credited until there was a TREMENDOUS late fee that was activated by the late payment and an increase in the interest rate. I did some research and found a Craftmatic complaint site on the web AND it appears that there are many unhappy customers.

It appears that there was also an investigation by West Virginia and a large settlement.

If you have a Craftmatic bed and you have any complaints please contact me for a free consultation.

The Asbury Park Press is reporting that there have been indictments of Michael Kouvaras, 55, of Maplewood and Salvatore Rivello, 56, of Matawan. They were indicted for theft by deception, identity theft, deceptive business practices and defrauding secured creditors. I will be getting a copy of the indictment form the Prosecutor’s Office so as to comment further. The dealership was Chrysler of Eatontown, according to the Press. I will follow up with details.

You have a range of choices, none of which are really attractive.

Return to the dealership and confront the management. You need to be very confident and have the ability to negotiate against skilled salesmen and do it under stress. You don’t have a chance. You know it and the dealer knows it. STAY AWAY. Not recommended.

File a complaint with the Better Business Bureau or the Consumer Affairs Office in your county. They have no ability to force the dealership to do anything. I’ts all voluntary. Just a further waste of your valuable time.

I have a pending class action suit in Superior Court of New Jersey alleging that Saturn of Toms River is not providing the employee discount to those who should receive the General Motors employee discount. If you have acquired a car from Saturn Toms River and think that you should have received the employee discount, please call my office.
The Law Office of Jonathan Rudnick, 262 HWY 35, Red Bank, NJ 07701 (732) 842-2070 Continue reading ›

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