Lemon Law Blog

1-800 LEMON LAW attorneys Bob Silverman and Amy Bennecoff have received a significant amount of exposure and kudos this past week for working with Chrysler’s and Fiat’s attorney to ensure lemon law and breach of warranty protection for Chrysler, Dodge and Jeep drivers.  Kimmel and Silverman was the only lemon law firm in the Nation to be involved in these meetings.  

In addition to interviews with Comcast, Philadelphia Inquirer, and Automotive News, Bob Silverman and our client Bob Buchecker were featured in this Action News segment which aired Friday night on WPVI TV in Philadelphia.

Get the full story by clicking here.

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Kimmel & Silverman Lemon Law Attorneys Robert M. Silverman and Amy L. Bennecoff spent a large portion of last week in New York working with Chrysler counsel Jones Day and Fiat counsel Sullivan Cromwell to include specific language regarding consumer protection in the Master Sales Agreement between the two companies, scheduled to take effect Monday, June 15.

The new amendment, in paragraph 19 of the order, specifically outlines that the New Chrysler will be responsible for all existing and future lemon law and breach of warranty claims filed by consumers who suffer repetitive non-conformities with their Chrysler, Dodge or Jeep vehicles.   This means that our numerous clients whose claims were stayed or whose settlements were stalled as a result of the filing will be taken care of, and we will be able to continue to provide cost-free lemon and breach of warranty representation to all Chrysler, Dodge and Jeep consumers who need our services in the future.  Both counsel attributed Silverman and Bennecoff as the only lemon law attorneys in the Nation who were directly responsible for helping to make this amendment a reality.

If you are suffering problems with your Chrysler, Dodge or Jeep vehicle, or if parts have been on back order resulting in your vehicle being in the shop for a long period of time, contact us to discuss your rights to remedy or recourse.

You can read all about the big news by clicking here.

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No doubt you have read all about the Chrysler bankruptcy in the headlines.  It has been covered by print outlets and blogs throughout the Country, or perhaps you heard Kimmel and Silverman attorney Bob Silverman discuss the situation on the local news.  All current Chrysler, Dodge and Jeep owners and anyone who intends to purchase one of these cars in the near future has hit a pothole when it comes to their consumer rights under State Lemon Law and Federal Warranty Law. 

As a result of the manufacturer filing in bankruptcy court, all lemon law and breach of warranty claims currently in litigation have been “stayed” or stalled until we receive instruction from the court on how to proceed.  But that’s not all; we have over 20 consumers waiting for complete repurchases or refunds, agreed upon before the manufacturer filed for bankruptcy, who are now stuck.  These folks each have signed releases from the manufacturer.  One client is a handicapped woman who desperately needs her Dodge conversion van to get around, and it has been in the shop numerous times for transmission problems. Another client, who has faced tough financial problems himself, already turned his car in and was waiting for his repurchase, and now he has no car, and no money. Plus, being that his creditor was never paid, he is facing the prospect of his lemon car being repossessed and ruining his credit.  Dozens of other folks have received checks which have bounced and these checks were dated prior to the 4/30 filing.

Currently, Kimmel and Silverman is working extensively on efforts to make sure Chrysler, Dodge and Jeep consumers are protected.  The manufacturers stance (and the PR statement we have heard from Washington DC and DCC headquarters) is your cars will be fully covered under warranty.  But, that’s not really the case.  If you can find a dealer that hasn’t closed, and they do have the part you need in stock (doubtful as a result of the closed factories and stop in production), what happens if they still can’t fix the problem?  If the check engine light keeps coming on?  If the water leak keeps reoccurring, resulting in mold?  If the windows still don’t go down?  If the car still won’t start?  And you are back one, two, three, four times?  Well, under normal circumstances, you would be able to use your rights under State and Federal Law to seek recourse, either a complete buyback, a new vehicle, or monetary damages to reflect the diminished value of the car as a result of the problems that occurred.  But that’s not the case right now.  Right now, Chrysler feels you are entitled to nothing other than continuous repair.  And, the new company that is looking to take over Chrysler is NOT interested in taking over these responsibilities; they do not want to compensate all the distressed drivers who have suffered defects or are currently suffering defects with their products.  The language in their motion is very unclear and contradicts itself.

We are currently working on a motion in an attempt for Chrysler to establish a litigation trust for those people who were entitled to recourse under warranty claims.  We will keep you abreast of our progress. In the meantime, we encourage you to reach out to your State’s consumer protection division and attorney general office and make sure they are aware of this situation.  Ask them what they are doing to advocate for consumers in perhaps one of the most troubling situations we have ever seen.

Confused? No doubt.  if you feel you have a potential DCC lemon law or breach of warranty claim and you would like to discuss this situation and your rights further, please e-mail us or call 1-800 LEMON LAW (1-800-536-6652). (Our firm handles claims in Pennsylvania, New Jersey, Ohio, Delaware, Maryland, Connecticut,  Massachusetts, New York and New Hampshire.  For other states, please visit www.lemonlawamerica.com.) We will be more than happy to go over your matter with you. 

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If you have been watching the news today, I am sure you have heard the news that President Bush will be lending Chrysler and General Motors up to $17.4 billion in short term loans from the US government.  The package does come with strings attached; they expect the manufacturers to be viable by the end of March and they put significant limits on executive pay and prohibit either company from issuing new dividends.  

So, what does this mean exactly?  It seems the ball is back in the manufacturers’ court and they have to figure out a way to significantly cut company debt.  Expect to see dealerships continue to close, service personnel to dwindle significantly, and the quality of warranty repairs, coupled with time allotted to warranty repairs, to be severely threatened.  But what is the alternative?  As the President pointed out this morning in his address, if either company declared bankruptcy, their service contracts and warranty obligations would not be a main priority.

Automotive Consumer Advocate and 1-800-LEMON LAW Communications Director Michael Sacks will be discussing the bleak auto industry outlook and answering automotive warranty questions tomorrow morning at 11am on Consumer Hotline on WDEL AM, 1150 on the dial in Wilmington, Delaware.  Last time, Michael appeared on the program, a caller phoned in with a Volvo problem and ended up $7,000 richer, so it pays to listen. 

Also, everyone’s a member of Facebook these days, even the gang at 1-800 LEMON LAW. If you are a client, former client, or just a fan of our services, we invite you to our new Facebook page and become a fan.  

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As we await word on if/how the government will bail out the big three, we continue to see car dealers close their doors in record numbers as a result of this troubling economy.  And these are not fly-by-night agencies mind you; these are long-standing, highly respected dealerships that have been running in some cases for decades.  It’s a sad state of affairs for the automotive industry and now more than ever, it is important that you protect yourself in case your selling dealer closes. 

Pennsylvania Lemon Law Attorney Craig Thor Kimmel appeared on FOX 29 News in Philadelphia earlier this week to discuss how to deal with the dealers closing around us.

FIRST, when buying a car, make sure you keep all of your paperwork.  With dealers closing, you need to make sure you have all agreements in writing.  We recently saw a case where the dealer was supposed to pay off the loan of a trade-in as part of the sale.  Then, the dealer closed and the consumer received a call from the bank asking for payment.  You need to get everything in writing. 

SECOND, make sure you understand the warranty you are purchasing.  It is highly recommended that you purchase a vehicle that has a manufacturers warranty and that any extended warranties purchased are also backed by the manufacturer.  Manufacturers warranties allow you the freedom of taking the car to any authorized manufacturers dealership.  Dealer warranties prohibit this.  Also, if your problems continue under the manufacturers warranty, you may be able to seek recourse under State and/or Federal Laws.

THIRD, make sure when taking your car in for service that you be as specific as possible regarding repairs needed.  Dealers that are not closing are still cutting back, letting go of service personnel and not spending nearly the time on repair visits that they used to.  Make sure you are as specific as possible in terms of what noise you heard and when you heard it, what sensor light popped on, and where you felt that water leak.  The more clues you give, the better chance the service personnel have of solving the problem.  And if you continue to once again feel like you are getting the run around, either a dealer constantly saying no problem found, or the problem not being fixed properly, you need to look into legal action.

FOURTH, if you feel your car is giving you problems, you need to do something.  When Daewoo was purchased by GM following economic problems, the acquired all the assets but none of the headaches. They were not responsible for any Daewoo warranty claims.  If a bankruptcy was to hit one of the big three, there is a good chance hundreds of thousands of people would no longer have warranties on their vehicles.  If something is wrong with your car, you need to get it addressed NOW. And if you feel that you may have a breach of warranty or lemon law claim, you need to address it with a consumer lawyer as soon as possible to protect yourself.  Under State and Federal Laws, help is free in these situations.  You have absolutely nothing to lose and everything to gain. 

For more information regarding this matter, visit www.lemonlaw.com and if you have any specific questions, e-mail Client Services Director Michael Sacks at msacks@lemonlaw.com,  Include your name and daytime phone number, including area code.  We may include your question in a future blog.

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As the big three continue their quest for the $34 billion bailout, Chrysler and GM are being pressured by lawmakers to revisit the possibility of merging.   Edmunds is reporting that a number of dealers, suppliers and others staged a rally in favor of the merge this morning near the steps of the U.S. Capital.

Lawmakers argue that if Chrysler and GM do merge, they will require less federal aid and speed up industry consolidation. There is a chance a merger would be a condition if they receive federal aid.

Lemon Law Attorney Bob Silverman appeared on WYOU Interactive News Wednesday Night in Wilkes Barre, PA and discussed the bailout. While many folks are against the rescue plan, there is no question that a bankruptcy would not only continue to wreak havoc on our economy and add millions to those on the unemployment line, but also cause many more dealerships to close.  These dealer closures are already leaving many drivers stranded, travelling hundreds of miles for warranty repairs, and waiting for inspection stickers and registration renewals. Next week, we will be providing tips on how to deal with the dealers during this difficult time.

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