Buying a car is not like buying a radio; you cannot return it to the store for a refund if you do not like it, or if it has a manufacturing defect. In fact, for many years, if you purchased an automobile that came from the factory with defects, you were just stuck. You could try to get the dealer to repair the problem, but if the problem continued and the dealer could not repair it, you were out of luck.
In 1982, the luck of owners of so-called “lemons” changed for the better, as California and Connecticut passed the nation’s first “lemon laws.”
These laws, spawned by consumers who had waged tireless battles against major auto companies, allowed owners of defective automobiles to seek compensation or replacement with the help of their respective states. These laws swept like wildfire throughout the country, and now all 50 states have some form of the lemon law.
The specifics of the lemon laws will vary from state to state, but in general, they define a “lemon” as a vehicle that:
The length of the warranty period also varies; coverage typically runs anywhere from one year or 12,000 miles to two years or 24,000 miles. As previously stated, the specifics vary from state to state, particularly the number of repair attempts that constitute “reasonable” and the number of days that the vehicle must be out of service in order to qualify. In some states, repairs that affect the brakes or other safety equipment need only one repair attempt to qualify as “reasonable.”
Restitution is fairly consistent from state to state; it usually requires the manufacturer to either replace the vehicle with one of comparable value, or refund the purchase price, along with taxes, registration and delivery fees. Some states leave the option of replacement or refund to the manufacturer, but most give the option to the consumer.
What should you do if you think you have a lemon? You should:
You may have to go through an arbitration process; this involves both you and a representative of the manufacturer explaining your respective situations to a panel that will then provide a ruling. The arbitration ruling is usually binding on the manufacturer; they will have no recourse should the panel rule in your favor. Generally, if you don’t agree with the panel’s ruling, you still have the option of filing a lawsuit in court.
You may wish to hire an attorney to represent you; there are plenty of lawyers who specialize in lemon law cases, and they can probably bring the case to a solution more quickly than if you handle the case yourself. Be sure to contact your state’s Attorney General’s office regarding the specifics of your own state’s lemon law. You don’t want to miss a deadline, or you could be stuck with your lemon for a long time.
Home Loans – Identity Theft Protection Could Hurt Home Sales
Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravel the problems created when someone’s identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a “freeze” on their credit reports. Those in the real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.
Debt Consolidation – How to Protect Your Credit Accounts from Theft
Last week, a security exploit at CardSystems Solutions, Inc, a credit card processor, may have allowed thieves to obtain as many as 40 million credit card numbers from unsuspecting victims. The theft was brought about though a virus introduced into the CardSystems that allowed external hackers to obtain access to the account information. Adding to the problem was the fact that CardSystems wasn’t supposed to have the account information at all. It appears that CardSystems “inappropriately” held onto the information after clearing the credit card transactions. At that point, the account information should have been deleted. CardSystems held onto the account information for supposed “research purposes.” Fortunately for those involved, the compromised information only included account numbers and not Social Security numbers, which would have assisted the thieves in identity theft scams. This latest security breach at a credit card processor outlines how anyone can be vulnerable to account or even identity theft. Is there anything that can be done about it?
New Bankruptcy Law – Targeting the Wrong People?
Last April, President Bush enthusiastically signed into law the oddly-named Bankruptcy Abuse and Consumer Protection Act. This bill, representing the biggest overhaul of bankruptcy law in twenty-five years, was written in order to discourage “bankruptcy of convenience.” Proponents of the bill, which included the credit card industry, say that the bill is necessary in order to stop an avalanche of bankruptcy filings by drug users and compulsive shoppers and gamblers. The law makes it harder to have debts wiped away, requires credit counseling for those considering bankruptcy, and holds attorneys responsible for paperwork errors by their clients in bankruptcy cases. The net result will probably be chaos, as fewer attorneys will handle bankruptcy cases, credit counselors will raise their fees, and more consumers with problem debt will be clueless as to what they should do next. Adding to the confusion are some new statistics that suggest that a large number of bankruptcies that are thought to be personal are actually business bankruptcies. As a result, the new law may be unfairly targeting consumers for punishment when they are not actually the biggest part of the problem. Worse, it could be harming small businesses.
