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1.2.15 Sublease Scams

The automobile sublease scam involves a firm taking over, for a fee, and without the lessor’s or creditor’s permission, an automobile lease or car installment payment from a consumer who wants to get out of their automobile lease or credit agreement obligations. The firm then subleases the car to another consumer.

  • • About half the states have laws prohibiting the subleasing of motor vehicles. See § 4.8.2, infra.
  • • Subleasing scams may also violate state dealer or broker licensing laws. See § 4.8.2, infra.

The scammer as an arranger of a lease may have to comply with the federal Consumer Leasing Act. See § 4.8.2, infra.