FedEx accused of largest odometer reset scam in used van history

When FedEx vans reach the end of their package delivery lives, they are resold and reused for various purposes. Many of them have been converted into food trucks, as their size and shape are perfect for mobile kitchens. However, FedEx is facing a lawsuit over the sale of such vans, as it is accused of the largest odometer rollback fraud in history.

The lawsuit accuses FedEx of replacing the odometers in many of its vans with new ones that show zero miles, using the vans a little longer after that, and then selling them at auction with 100,000 miles or less on the new odometers. With such low indicated mileage, business owners bought the vans for top dollar, thinking they were still pretty fresh. However, their actual mileage was sometimes as much as four times the odometer reading, leading to countless mechanical problems that would cost customers much more money. In some cases, the problems would be so severe that the vans were unusable and businesses went bankrupt.

In accordance KTNV Las Vegas, Tom Layton of Henderson, Nevada first noticed FedEx’s odometer recall in 2017. Layton, who has been buying and selling trucks and vans for 36 years, bought a FedEx Freightliner truck with about 180,000 miles on it. When he sold the truck, the buyer hooked it up to a computer that told them the real mileage was around 400,000 miles. Layton filed his own lawsuit at the time, which is separate from the class action lawsuit FedEx is facing.

Since then, customers from California, Tennessee, New Jersey, Florida and Virginia have noticed rolling back odometers on former FedEx vehicles.

FedEx didn’t always sell its retired vans. Once they’ve done about 350,000 miles, they usually scrap the vans. It wasn’t until 2011 that FedEx began auctioning off old vans through the fleet company Holman Fleet Leasing (also a defendant in the lawsuit). The lawsuit alleges that both FedEx and Holman intentionally changed the odometers to artificially inflate the values ​​of the vans so that they would sell for higher prices at various auctions throughout the United States. Then, according to the charges, both companies would share the profits.

“FedEx, with the knowledge and assistance of Holman, replaced thousands of odometers on FedEx/Holman vehicles,” the lawsuit states. “Although odometers, like automotive components, occasionally wear out or malfunction and must be replaced, there was no valid reason for this extensive replacement of the odometers on FedEx/Holman Vehicles other than to uphold their agreement to commit odometer fraud.”

It is not illegal to replace odometers, and it is not even illegal to sell vehicles with odometers that have inaccurate mileage readings. But to do so, a disclaimer must be made by the seller, indicating to the buyer that its mileage reading is inaccurate and that the odometer was replaced. According to the lawsuit, neither FedEx nor Holman did.

“The defendants willfully failed or refused to attach such a warning because they intended to mislead potential purchasers of the vehicles.”

However, FedEx denies the allegations. “We are aware of the allegations in the complaint and will vigorously defend the lawsuit,” a FedEx representative said Spectrum News.

Drive contacted FedEx for comment and will update this statement if we receive one.

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