Rolling back the odometers in used vehicles is a common practice among fraudsters from all around the world, but the scale can be much larger when a multinational transport company is involved. FedEx is accused of selling vehicles with inaccurate odometer readings, at high prices that didn’t correlate with their actual condition.
According to the lawsuit document, plaintiffs accuse FedEx of “systematically and surreptitiously replacing odometers on thousands of used diesel fleet delivery vehicles“. The new odometers came with zero miles, making “hundreds of thousands of miles” disappear. After using the delivery vans and trucks for a certain period of time, FedEx allegedly sold them to “unsuspecting small business owners” without disclosing that the mileage reading was inaccurate.
More: Odometer Roll-Backs Have Increased 7% Over The Last Year
In many cases, fleet vehicles were listed with 100k miles, when their actual mileage could be up to four times greater. This means that many of them were “past their useful life expectancy” resulting in unsuspected and costly mechanical issues. The lawsuit also accuses Holman Automotive dealerships of being aware of the odometer fraud, since they had access to FedEx’s monitoring software and detailed vehicle data.
FedEx used to scrap their old fleet vehicles when they went past a certain amount of miles. However, this practice changed around 2011, when the company decided to auction them for profit. While there is nothing wrong with auctioning off beaten-up vans, the seller is required to be open and honest about their history and condition. Odometer fraud is a violation of federal and state law, with the US Justice Department describing it as a “pernicious crime that robs thousands of dollars from each victim it touches”.
The goal of the class action is to seek damages and prevent FedEx and Holman Automotive from continuing to commit the alleged odometer fraud. Cases with rolled-back odometers in former FedEx vans and trucks have been noticed by private buyers in several US states including California, Florida, Nevada, New Jersey, Tennessee, and Virginia.
As reported by Automotive News, FedEx will “vigorously defend the lawsuit” while Holman Automotive refused to comment on pending litigation.
