Cases of people being scammed for their car history are on the rise. The reality is that it can happen to anyone who decides to sell a car. Once you post an ad on the internet on any site, you become a target for them. If you are lucky, you will get an honest buyer. However, most of the times especially on sites such as Craigslist and Oodle, you are likely to get a scammer posing as an ‘interested buyer’. The interested buyer will find a way to make you pull up your car history from some website that they refer you to. The ultimate goal for the scammer is to get you to the site of which they get a commission from the lead. Once that’s done, they pretend to have changed their mind after you’ve bought your car history from their site.
And that’s not all. Many of the existing companies that provide data about used cars are also caught in the web of this violation of the law. Such a company is Carfax which is one of the biggest commercial suppliers of vehicle history reports to individuals and businesses on used cars. Carfax has always claimed to have information about the accidents for all the 50 states in the US. However, in 2006 it turned out that they were not able to check the information about accidents in 23 states. Even though the lawsuit was settled in May 2007 in the Trumbull County Common Pleas Court in Ohio, the fight against car history scams still continues. Carfax representative revealed that more than 10 million consumers were affected. The company asserts that it has major accident information from all 50 states and it backs up its claim with a buyback guarantee. The settlement in the West v. Carfax, Inc lawsuit was overturned and the lawyers for the class never pursued the case after that.
These are some of the problems Vinchain will solve through the decentralized vehicle database. With the help of this blockchain system, such situations are impossible to happen due to the decentralized system and absolute clarity of information.
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