January 23 2007

Fairfax, VA: A class action lawsuit was filed against CarFax for allegedly providing services which were unfair, false, deceptive, and materially misleading. The suit claimed the vehicle history report provider could not check accident reports in 23 states and that the company's information was only updated every six months, so consumers could not find the truth regarding the history of the car they were purchasing. The class action was filed on behalf of car buyers who purchased a CarFax vehicle history report before Oct. 27, 2006. The lawsuit claimed CarFax violated state consumer protection laws by not properly disclosing terms and conditions for, and limitations of, CarFax vehicle history reports. Under the terms of the proposed class action settlement, consumers who bought CarFax reports could get free or reduced price reports, or they could choose to have CarFax pay part of the cost of having cars inspected for signs of past problems. (Jan-22-07) [CONSUMER REPORTS: CARFAX SETTLEMENT]

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Reader Comments

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My husband purchased a car in fall 2004. At that time the dealer presented him with a CarFax report that was clean. We went to trade in his car a few days ago and suddenly it shows undercarriage damage occuring in Feb 2004. But on the report it says CarFax did not start reporting this until Feb 2007. Also, a Ford garage did some work on wiring in his car and recorded the wrong milage and now CarFax will not allow the Ford garage to correct this. So dealers will not accept his car as a trade in. So we are out $18,000 because they didn't report the undercarriage damage in a timely manner and because they won't let the dealer correct a mistake.

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