Lemon Law Blog

As our roller coaster economy continues its downward spiral, repo men are unfortunately having their best year ever.  In an article which recently ran in New York Newsday, the number of cars, boats, motorcycles, and trucks being repossessed has been growing as more Americans are struggling to make ends meet. According to a consultant who works for the National Automotive Fiannce Association, “the first quarter of 2008 brought the auto finance industry a significant increase in delinquencies and repossessions.”

So, how can you take control if you are facing repossession?  First, you may want to proactively address the issue with your lender to see if they can restructure the loan or payment schedule.  Banks don’t normally like to repo vehicles; they lose thousands on each vehicle repoed so they will work with you to try and prevent it. You can also enlist the help of a credit counselor to negotiate with the lender. Newsday recommends the National Foundation for Credit Counseling at 800-388-2227.

Lastly, you should look into enlisting a consumer attorney to make sure that your rights were not violated. The creditor may not have the right to repo the car.  For instance, if the seller committed fraud, mispresentation or illegal practices in selling the vehicle, the creditor is responsible for their wrongdoing.  Therefore, the contract may be null and void and they may be prevented from repossessing the car. In addition, the bank may be responsible for compensating the consumer for the seller’s actions. 

Furthermore, repo men may not trespass onto your property or use threats of force. And, while they don’t have to provide prior notice, they must immediately provide you notice in person or via certified mail which outlines the debtor; the vehicle; the location of the car; whether or not the buyer can reinstate the contract; the time, place and manner of resale; an itemized statement of amounts owed; including any repossession charges; and a list of the location and personal property contained in the vehicle. The letter must be sent no less than 15 days before the date of resale.

If your car has been repoed, and you feel your rights have been violated, please contact us and we will be glad to discuss the matter with you.  

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The Northeast has been hit with some wet, wild weather in the past 48 hours. As a result, our lemon law mailbox  has been “flooded” with questions like this:

“I bought a Chevrolet Aveo about a month and a half ago. Yesterday we had a rain storm and I went out to my car, the entire windshield on the inside was dripping wet…what are my options?”

The day after a storm, many distressed drivers discover leaks in their vehicles. And, if those leaks are not immediately addressed and repaired, your car will soon be a nesting ground for mold and mildew.  So, what should you do if you find puddles on your passenger floor (or elsewhere in the car)?

**Make a service appointment with your dealership immediately. Make sure the service manager understands the severity of the situation.

**Try to track down where the leak or mildew scent is coming from. If you can point your service manager in the right direction, they may be able to fix it immediately. Also, let the service manager know when the scent is the strongest (i.e. when starting up the car, when turning on the heater to high, when turning on the rear defroster, when it rains.) The more information you can provide your service manager, the better!

**Make sure you receive a repair invoice outlining your problem and their solution. Do not let them mail the invoice. Have them print out the invoice when you pick up your car.

**If you still smell the fumes after your service, you need to bring the car back to an authorized dealership for another repair attempt. If you feel your dealership is not handling the problem correctly, take your car to another authorized manufacturers dealership.

**If your car is under manufacturer’s warranty, you should not have to pay any extra monies for treatments or ventilation services. This problem should be covered under both the original and extended manufacturer’s warranties.

**If your car is under manufacturer’s warranty and you have given the manufacturer 3 or more chances to fix the problem, you can assert your rights to cost-free legal representation under State Lemon Laws or Federal Warranty Laws.

Don’t let your manufacturer leave you hanging out to dry. Take action if necessary.

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As the comments continue to pour in regarding our entry on paint defects with 2000-2005 Ford vehicles (54 so far, but who’s counting?), we thought now would be a good time to discuss when a paint problem can turn into a lemon law or breach of warranty claim. 

We frequently receive calls from distressed drivers who are quite peeved over their paint.  If the dealer is making any effort to fix the problem, either by buffing, or compounding, or painting certain components, you may have grounds to file a claim. Make sure that you ask for a repair invoice after each visit.  These invoices should outline your complaint and what was done to fix the vehicle.  Depending on the invoices, we may be able to argue that the paint problem has diminished the value of the vehicle and therefore, the consumer is entitled to remedy under State Lemon Law or Federal Warranty Law.

Unfortunately, many folks call to complain of paint chips on their hood.  These chips are often caused by road debris and while it’s extremely frustrating, these repairs are not covered under warranty. However, repairs that may be covered include paint peeling, rust, and blotches or scratches in the finish.

It’s important to ask questions.  If you feel that your paint defect may be affecting the value of the vehicle (and you are still covered under a manufacturers warranty), bring the issue to your service manager. And, if they can’t fix the problem after a couple attempts, you should certainly consult a lemon law attorney.  You can always ask us a question by here.  Remember, never be afraid to fight for your rights!

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Yes, I know we are in the middle of a hot, humid Summer….no better time to surprise you with a pop quiz on your knowledge relating to the lemon law and car buying.  No matter what time of year, it’s important to be prepared when either buying a new or used car, or filing a lemon law claim.  So, grab that #2 pencil and let’s see how much you know….

1) TRUE OR FALSE: If I buy a car and something goes wrong with it, I have three days to return the car.  It’s the law. 

2) TRUE OR FALSE: Once I have driven the car off the lot and signed a sales agreement, there is no way a dealer can change the price on me.

3) TRUE OR FALSE:  If I purchase a car and later figure out that I can’t afford to make the payments, I can return the car and it won’t affect my credit as long as I can prove financial hardship.

4) TRUE OR FALSE: I can ask the dealer to show me what he paid for the car he is selling.

5) TRUE OR FALSE: If I buy a used car and the car has been in an accident, the dealer must tell me that prior to sale.

6) TRUE OR FALSE: The Lemon Law not only applies to major problems, such as the transmission and engine, but also to electrical problems, water leaks, rattles and paint.

7) TRUE OR FALSE: If a new car is in the shop for 30 days in the first year, regardless of whether it’s for the same or different problems, the driver can file a lemon law claim.

8 ) TRUE OR FALSE: If I have a manufacturers warranty and something goes wrong with my car, I have to take it to the dealer when I purchased the car, even if it is far from my home.

9) TRUE OR FALSE: Used cars are covered under the State Lemon Laws.

10) TRUE OR FALSE:  A consumer under the age of 25 may be denied a loaner while their car is in service because of their age.

Click here to see how well you did!

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From “All That & More” on NBC10 in Philadelphia (7/14): Councilman Darrell Clarke has listened to his fair share of stories from constituents telling him about how they’ve been duped by used car dealers.

“One lady in particular, she came in, she clearly had her paperwork, the vehicle was clearly damaged, but it was sold to her and she had no recourse,” says Clarke.

Councilman Clarke wanted to change that. We found out that we locally could impact the law that would allow a person to have some recourse if they bought a used vehicle that had structural damage,” says Clarke.

And so Philadelphia’s first used car lemon law was born!

Under the new law Philadelphia used car buyers get the opportunity to have the car inspected by a mechanic within 72 hours of purchase.

If a major problem is found, the buyer can either return it for repair or get a full refund.

Craig Kimmel is a lemon law attorney.

He says the new law is very much needed because consumers make a lot of mistakes when buying used cars.

Like, buying without a manufacturer’s warranty.

Kimmel says, “Dealers specialize in re-conditioning vehicles to look as good as they possibly can when you see them. If you don’t know how a car works and you’re not able to inspect it as a mechanic, the chances are that you’re gambling if you buy a car without a warranty.”

In some cases, Kimmel says people make the mistake of buying a car without asking questions about the car’s accident history.

“Accident history is very important because how a car is put back together not only determines how it performs but also determines whether or not certain problems that may arise later are going to be covered by the warranty,” says Kimmel.

It is important to always run a vehicle history report, and if you don’t understand the report, ask questions!

Kimmel says that’s one of the mistakes people make, they don’t bring the car to an outside mechanic to look it over before they buy.

“They’ll test drive the car, check for fluids they’ll make sure the fluids are the right colors so they don’t show signs of contamination or further engine problems,” says Kimmel.

Kimmel continues, “They’ll give you an idea of what your expecting in the future with this car the same way a home inspector would tell you if the new house you’re buying needs a new roof.”

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This morning, while taping a segment for the CW talk show “Speak Up,” we met up with one of our former clients, John Bryant.  John, an accomplished attorney himself, had endured several significant problems with his Cadillac. The battery kept dying, again and again, and he found himself back at the dealer on five different occasions.  He thought that General Motors would certainly do the right thing and exchange his car with a new one under the Pennsylvania Lemon Law.  When they refused, he upped the ante and told the dealer he would pay them $10,000 and turn in his car in exchange for a new car and he was still getting the run-around.  It was around that time that his daughter got involved.  She had heard about Kimmel & Silverman and she looked up lemon law.com on-line.  Once John contacted us, we started representation and shortly after, John received an MSRP to MSRP swap, exchanging his 2003 Cadillac for a 2008 Cadillac.  He paid NO attorney fees (as you know, if we can help, it is completely free) and only paid $2,400 in mileage and upgrade offset, MUCH LESS than what he offered the dealer.   Needless to say, he was thrilled.

So, what’s the moral of the story?  Dealers can only do so much to help the consumer.  When dealing with a lemon law or breach of warranty issue, the defendant is NOT the dealer; it is the manufacturer. Many a dealer has whispered “1-800-LEMON-LAW’ to their customers over the years.  They do this because they know they have no control, and really want to help.  If you find yourself in a similar situation, don’t bend the dealer’s ear, hoping that he will come to your rescue.  Instead, research your lemon law and breach of warranty rights, make sure you keep all of your repair invoices, and look into hiring a lemon law attorney.  It is cost-free and risk-free.

For those in the Delaware Valley, “Speak Up” will air this Sunday morning at 8am on CW57. In addition to John, the program will feature lemon law attorney Amy Bennecoff and Director of Communications & Automotive Consumer Advocate Michael Sacks.

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