Title issues for used vehicles

Licensed Ohio used motor vehicle dealers participate in a program called the Title Defect Rescission (TDR) Fund. Participating in the TDR Fund allows dealers to sell vehicles before obtaining the titles for those vehicles.

If a used car dealer fails to obtain a title in your name within 30 days after the sale, file a consumer complaint with the Ohio Attorney General’s Office at www.OhioAttorneyGeneral.gov/ConsumerComplaint or 800-282-0515.

What is the purpose of the TDR Fund?

The TDR Fund was created to maintain and administer refunds to retail purchasers of motor vehicles who suffer damages from motor vehicle dealers who fail to provide a valid certificate of title in the purchaser’s name within the statutorily required period of time. For more information, see R.C. 4505.181 and R.C. 1345.52. If the Ohio Attorney General pays a consumer on behalf of a dealer as a result of a TDR payout, then the dealer must obtain a surety bond.

Under the law, the retail purchaser has an unconditional right to rescind the transaction and the dealer has an obligation to refund to the retail purchaser all monies paid, if one of the following applies:

• The dealer fails to obtain a certificate of title in the consumer’s name after 40 days from the date of the purchase;
• The certificate of title for the vehicle indicates that it is a rebuilt salvage vehicle, and that fact was not disclosed to the consumer in writing before the execution of the purchase agreement; or
• The certificate of title for the vehicle indicates that the dealer has made an inaccurate odometer disclosure to the consumer.

When can a consumer apply for relief under TDR?

The consumer may apply to the Attorney General for payment from the TDR Fund of any monies paid for the purchase of the vehicle if:

• The consumer notifies the dealer of one or more of the circumstances listed above; and
• The dealer fails to refund the consumer all monies paid for the purchase of the vehicle or fails to reach a satisfactory compromise within three business days.