Tampered mileage scam: TM includes restriction on registration certificate of suspect cars

Customers who were sold cars with tampered mileage will be receiving a letter from Transport Malta informing them that their car registration certificate now includes a mileage discrepancy restriction.

The development comes as auto dealers raise the alarm over motorists bitten by the mileage scam who are trying to sell their vehicles to used car dealers or unsuspecting individuals.

"Some of those who were cheated by Rokku Autodealer and Tal-Qasab have reached an out of court settlement with them but are now trying to sell their cars without the odometer reading having been corrected," industry sources told MaltaToday.

Car dealers are witnessing a number of car owners trying to get rid of their much older vehicles with odometer readings that do not match with the JEVIC database, where all car details are listed before being exported from Japan.

“An individual came to us trying to sell us his car. After we carried out the necessary checks on the JEVIC database, we realised the mileage displayed on the odometer did not match,” one dealer who spoke to this newspaper said.

Last week MaltaToday revealed how the dealerships Rokku Autodealer and Tal-Qasab Autosales were behind a racket that saw hundreds of customers cheated when purchasing imported Japanese second-hand cars.

READ ALSO: Hundreds cheated in racket involving tampered mileage on Japanese second-hand car imports

The dealers are believed to have tampered with the vehicles’ mileage and used forged certificates to get Transport Malta’s seal of approval when registering the vehicles. The scammers also took advantage of lax controls by the authorities at the point of import in the Grand Harbour and at the point of registration with TM.

Transport Malta assisting police for weeks

However, Transport Malta has told MaltaToday that when it was informed of the allegations concerning the scam, it instructed its clerks to begin verifying and confirming the mileage for every vehicle registered from a non-EU country with the actual JEVIC webservices. Clerks are also required to print the odometer reading and put it in the file. "This is being done over and above other documentation which is filled in during the process," a TM spokesperson said.

"Transport Malta has been assisting the police in its investigation, weeks before the alleged scam was reported by your newspaper," the regulator said.

When asked about the latest development that sees scammed motorists reaching out of court settlements with their sellers without fixing the odometer reading, the authority said it has acted to curb this abuse.

"Transport Malta has included and effected a restriction (Mileage Discrepancy) to every vehicle’s registration certificate with the mileage scam. In the coming days we will also be sending an official letter to each vehicle owner who has a vehicle with mileage discrepancy," the spokesperson said.

Dealers who spoke to MaltaToday yesterday were unaware of the authority's actions.

"We have already had two persons come to us to try and sell their car. When we checked their car against the database, we found it was tampered. When we told him about it, he asked us what was he supposed to do about it. It might seem unfair, but it’s his problem now. He should not have settled for the cash," the dealer said.

He lamented the lack of direction provided by the authorities, insisting a number of cars with tampered mileage will now be resold to unsuspecting customers or dealerships. "We now have people who have been screwed over, trying to screw other people," he said.

The scam

The two rogue car dealers were using the services of a garage in San Gwann to tamper with the odometer and then falsify documentation issued by the Japan Export Vehicle Inspection Centre (JEVIC), to dupe consumers into believing the second-hand car they are being sold is of low mileage.

Contacted by MaltaToday, one of the mechanics behind the tampering of odometers in a racket which has seen hundreds tricked into buying cars older than as declared by sellers, has also claimed ignorance about the intentions of the dealerships that sought his services.

Since the report was published, customers who were sold the tampered cars have reached out to this newspaper to detail their experience. They found discrepancies which ranged from 20,000 km to 180,000 km.

READ ALSO: Dealers in used car racket offer silence and denials

Out of court settlements

A number of customers told this newspaper that after reaching out to the auto dealers behind the sale of tampered mileage, have managed to reach a settlement. The resolution has seen certain customers returning their car against a cash repayment, while others agreeing on a cash settlement to reimburse the difference.

Following the revelations, Consumer Protection Minister Julia Farrugia Portelli called on duped customers to file a report with the consumer authority with details of their case.

Questioned outside parliament on Monday, Transport Minister Aaron Farrugia said all relevant stakeholders are meeting to ensure a better system is implemented to prevent odometer tampering in the future.

"I am ensuring that Transport Malta (TM), together with these stakeholders, guarantee that any action that needs to be taken is taken, so that the situation is not repeated," he said. "There are ongoing investigations on the subject, but beyond that, there are a number of stakeholders involved in the issue – police, customs and even TM, who all have a role to play."

Meanwhile, police investigations are ongoing.

READ ALSO: Adrian Delia calls for overhaul of Transport Malta controls after mileage scam