FedEx has been accused of the largest odometer return scam in history using used trucks

Once FedEx trucks reach the end of their package-delivery life, they are resold and repurposed. Many are being converted into food trucks, as their boxy size and shape are ideal for mobile kitchens. However, FedEx is facing a lawsuit for selling such trucks, being accused of the largest odometer rollover scam in history.

The suit accuses FedEx of replacing the odometers on many of its trucks with new ones that read zero miles, using the trucks for a little longer after that, and then selling them at auction with 100,000 miles or less on the new odometers. With such low miles indicated, business owners have been buying trucks for top dollar, thinking there are still pretty new ones. However, the actual mileage was sometimes up to four times the odometer reading, which led to countless mechanical problems that would cost customers much more money. In some cases, the problems would be very serious, the trucks were useless, and the companies would go bankrupt.

according to KTNV Las Vegas, Tom Layton of Henderson, Nevada first noticed the odometer bounce at FedEx 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 to the mark. When he sold the truck, the buyer hooked it up to a computer that told them the real mileage was about 400,000 miles. Layton filed his own lawsuit at the time, which is separate from the class action lawsuit FedEx is currently facing.

FedEx hasn’t always sold its retired trucks. Once they hit about 350,000 miles, they usually ditch the pickups. It wasn’t until 2011 that FedEx began auctioning older trucks through its fleet company, Holman Fleet Leasing (also a defendant in the lawsuit). The suit alleges that both FedEx and Holman knowingly replaced the odometers to artificially inflate the trucks’ values, so they were selling at higher prices at various auctions across the United States. Then, according to the charges, the two companies will split the profits.

The lawsuit states that “FedEx, with the knowledge and assistance of Holman, has replaced thousands of odometers on FedEx/Holman vehicles.” “Although odometers, as components of automobiles, sometimes wear out or fail and need to be replaced, there was no good reason for this widespread replacement of odometers on FedEx/Holman vehicles, other than their continued approval of the commission of odometer fraud.”

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

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

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

Drive has reached out to FedEx for comment and will update this statement if we receive one.

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