Ford has said it will stop renting vehicles to ATV enthusiasts in the United States and Canada as part of a crackdown on tire fraud.
The move comes a day after Ford said it had suspended leasing at ATVs in California and Florida after discovering that some dealerships had been renting tires for a year and had not reported to the authorities the fraudulent transactions.
The announcement came after a government investigation revealed that some ATV retailers in the states of California, New York, and Florida were providing fraudulent financing for rental cars to customers who were using the vehicles to buy ATVs.
The investigation revealed fraudulent loans, unauthorized rentals and other violations that resulted in the theft of thousands of vehicles, including ATVs and other recreational vehicles.
The U.K.-based company said that it would stop leasing vehicles to consumers in the three states, as well as Canada, who use the vehicles for rental or for other purposes, starting next month.
“These actions will help us take the next steps towards providing consumers with more information about the vehicle they’re leasing,” Ford said in a statement.
“It is our goal to make sure that when they purchase their vehicles, they are fully informed of the options available to them.
Ford will continue to provide additional information to customers about the ATV program.”
Ford said it was the first time it had taken such action in the country.
In the United Kingdom, the Government and Crime Commissioner have launched an investigation into fraudulent leasing of ATVs, which led to a crackdown by police in August.
Ford said that the investigation had revealed that at least 3,400 ATVs had been rented out for less than $1,000, with at least 1,000 in the UK and Ireland.
In its statement, Ford said the move will help it better understand the vehicles and their financing arrangements.
“Ford is a global leader in its tire supply chain and is committed to ensuring that the vehicles we lease are as safe as possible,” Ford added.
“As part of this initiative, we are working closely with the regulators and law enforcement agencies around the world to investigate and prosecute fraudulent and fraudulent financing schemes, including in Canada and the United the U…
United States is also an important area where we have seen a significant number of fraudulent loans.”
The news comes days after the European Union warned that the use of ATV-related leasing deals to buy vehicles has increased in recent years.
A report from the European Parliament found that the number of ATv dealerships that have been rented has increased by about 400% since 2010.
The majority of ATU dealerships have been located in Europe, with some of the largest markets being France, Germany, Spain, the Netherlands, Italy, and Portugal.