California Lemon Law Blog

A recent story in The Wall Street Journal’s Marketwatch highlights the growing problem of car dealerships that fail to forward consumer payments. During the economic downturn, more dealerships are failing to pass on consumer payments for taxes, title fees and other costs. In some cases, dealers are refusing to fulfill their obligations to pay off the remaining balance on trade-in cars, making consumers responsible for thousands of dollars in hidden costs.

Although car dealer fraud is not a new phenomenon, the economic situation has contributed to these activities. According to figures cited by the news story, the California Department of Motor Vehicles has seen the number of open cases against dealers for failing to transfer customer payments double since the beginning of 2007.

Why do car dealerships fail to pass on consumer payments? While a small percentage of dealerships may actively withhold customer payments out of a desire to commit fraud, in times of economic difficulty, plummeting cash flow may contribute to a number of these cases. If a dealership finds its flow of ready cash dwindling, anxious creditors may freeze the dealership’s funds.

Given this problem, a strange Catch-22 arises for California car buyers. Although many troubled dealerships are offering incredible discounts for new and used vehicles, these very same dealerships are the ones most likely to be unable to forward your taxes, title fees and other costs. Thus, a great sticker price could deliver a nasty surprise after the sale is complete.

For struggling dealerships, this situation can lead to a downward spiral as concerned consumers stay away from deals offered by troubled car sellers, which chokes off their cash flow and leads to the dealers being unable to pass on consumer payments.

Continue reading "Dealers Not Passing the Buck in Hard Times" »

A Los Angeles Times article reports that many car owners receiving California lemon law settlement checks from Chrysler are getting an unpleasant surprise when they cash them at the bank. Due to bankruptcy proceedings and other financial complications, many of these checks are bouncing.

In recent weeks the financial bailouts of the Big Three automakers have been the subject of intense media attention. Amid all of the coverage, very little attention has been paid to the economic “ripple-effect” created as these large companies struggle for their existence.

During bankruptcy proceedings, pre-existing expenses such as outstanding lemon law claims cannot be paid unless given “the okay” by the judge in charge of the proceedings. The sources cited in the Los Angeles Times story state, that up to this point, Chrysler has not asked for court approval so it can begin making payments.

The result is clear to see—buyback checks that do not clear the bank and innocent consumers bewildered and frustrated by an automaker’s failure to uphold its obligations. For many of those consumers waiting for rebate checks, Chrysler’s inaction on this issue affects them on multiple levels. For example, the auto manufacturer has taken their defective vehicle and these consumers may not have access to a working vehicle. Without a lemon law refund check, these same unfortunate consumers are also unable to purchase another car. Although they have the option of pursuing their claim as a creditor, under bankruptcy proceedings, the consumers may only recover a fraction of the amount owed.

The irony of this situation is that car manufacturers cannot afford the public relations damage resulting from failing to pay lemon law settlements. Manufacturers and dealers need Californians to buy new cars. However, the knowledge that a car company may not have the financial means to replace defective vehicles, heightens the uncertainty that most consumers are feeling about making large purchases.

Continue reading "Chrysler Failing to Pay Lemon Law Claims?" »

On April 30, 2009, the United States Department of Transportation (DOT) announced in a report that the roof strength standard for light vehicles has been raised. The announcement comes as a reaction to concerns about rollover safety.

According to figures cited by the DOT, rollover accidents account for over 10,000 fatalities on America’s highways. One solution to this problem is better vehicle design and safety standards.

Currently, the roof of light vehicles (vehicles with a gross weight under 6,000 pounds) must be able to withstand a force equal to one and one half times the weight of the vehicle. The new standard doubles this amount to three times the weight of the vehicle. Additionally, both the passenger side and driver side of the roof must be able to meet this standard. In the past, only one side had to pass the test in order to meet the roof safety standard.

The DOT regulations will also be extended to heavier vehicles, which have not been required to meet any roof strength standards. Vehicles between 6,000 and 10,000 pounds will have to have roof structures capable of supporting at least one and one half times the vehicle weight without collapsing.

The new standards will be phased in beginning September 2012, and will be in full effect for 2017 models.

If you have any questions about how these new DOT standards impact the responsibility of manufacturers to provide reasonably safe vehicles to consumers, please contact the California Lemon Law Offices of Howard D. Silver. Howard D. Silver represents consumers in California who have been victims of used car and auto repair fraud, unfair and deceptive business practices, and automobile lemon law. Call us today at 866-49-LEMON.

Sometimes, finding the owner of a used vehicle can be a little more difficult than expected. A DMV report states that multiple re-sales, repossessions and other events can leave you without a clear trail to follow to the owner of the car. One resource you can use to track down a car’s legal owner is a financial institution master list.

A financial institution’s master list compiles contact information about banks, credit unions and other professional lending entities into one location—speeding up the process of finding the legal owner of a used car. Although financial institution master lists may differ in content, most will give you a certain amount of contact information:

• Financial institution’s name


• Financial institution’s address


• Financial institution’s telephone number

Because banks, credit unions and other lenders may merge with other businesses or go out of business altogether, a good financial master list may include updated contact information.

Continue reading "Using Financial Institution Lists" »

The United States Department of Transportation (DOT) will review the safety of motorcoaches. The review is being made with the intention of developing a department plan for improving the safety of multipassenger transport vehicles.

The call to action comes from the department after a tragic 2008 Utah motorcoach crash which killed nine passengers and injured over 40 others. In the aftermath of that crash, an investigation revealed that both mechanical and human factors contributed to the crash, including driver fatigue, lack of seat belts and other issues. DOT Secretary Ray LaHood made the call for the review public on April 30, 2009.

Although motorcoach crashes are uncommon, several factors make the cost of these accidents unacceptably high in both human and financial terms. The factors are:

• Lack of safety restraints put passengers at risk


• Long periods between stops induce driver fatigue


• The design of motorcoaches can lead to rollover accidents


• Weak roof structures fail to support vehicles in the event of a rollover

Several agencies within the DOT will be involved in the review, including the Federal Motor Carrier Safety Association, the Federal Highway Administration and the National Highway Traffic Safety Administration. The review is expected to be finished by August 2009. Once finished, the findings of the multiagency review will be used to make recommendations to manufacturers and motorcoach operators in order to improve safety.

If you have any questions about the safety of motorcoaches, please contact the Law Offices of Howard D. Silver. Our California lemon law attorneys help protect the rights of consumers from unfair, vague, or deceptive business practices, automobile lemons and auto repair fraud. Call us today at 866-49-LEMON.

Under the California lemon law, if a manufacturer fails to fix a defective vehicle within a reasonable number of attempts, the manufacturer may be forced to purchase the vehicle from the consumer. When this happens, the vehicle is now the property of the car manufacturer, who understandably wants to realize some profit from the vehicle.

In order to re-sell the vehicle, the manufacturer is required by California law to clearly identify the vehicle as a lemon law buyback.

The California Department of Consumer Affairs has created a website with information about lemon law buybacks and how to identify them on a car dealer’s lot. Here is an overview of what the manufacturer is required to include for the lemon buyback vehicle:

• Title must be in the manufacturer’s name
• Certificate of Title and Registration Certificate must be marked Lemon Law Buyback
• A Lemon Law Buyback Decal should be attached to either the left door frame, left side of vehicle, or the frame of a major entry

If you are sold a lemon law buyback vehicle, you are required to receive a hard copy notification of the defect status of the vehicle. This notification must contain the following information:

• Year, make and model of the vehicle
• VIN Number
• Title is marked Lemon Law Buyback
• Known defects experienced by previous owner
• Repair attempts made to address the known defects

If you have any questions or concerns about the California lemon laws or lemon law buybacks, please contact the Law Offices of Howard D. Silver. Call 866-49-LEMON for a free consultation with a skilled California lemon law attorney with over twenty years of experience representing consumers.

Although being stuck with a lemon car in California can be frustrating, it is important that you stay calm and keep good records of all details. The rules and regulations that surround California defective vehicles have to be followed if you wish to be compensated for your car troubles.

Document Repairs

A vital component for surviving a California lemon vehicle and getting compensated for your troubles, is keeping good records of repair efforts made on your vehicle. Here are a couple of key things to remember when documenting repair efforts:

• List specific problems for each repair attempt
• Include the dates that the vehicle is sent in for repair and when it is returned
• Get a copy of the mechanic’s repair assessment for each repair attempt

In California, a vehicle is presumed to be a lemon if:
• There are at least two safety (and four non-safety) related repairs in the first 18 months or 18,000 miles of ownership or at least 30 days in service to repair these defects in the same period of time.

If you have any questions of concerns about the California lemon law, please contact the Law Offices of Howard D. Silver. Call 866-49-LEMON for a free consultation with a skilled California lemon law attorney.

Brands are descriptions of conditions in a vehicle’s history usually placed on the vehicle’s Certificate of Title or registration card. Brand information should be clear and specific to ensure that vehicle owners and prospective buyers are aware of what has happened to the vehicle in the past.

California Vehicle Title Brands

Currently the state of California recognizes a handful of vehicle history brands that are required by the California Department of Motor Vehicles to be disclosed on the title:

• Non-USA: Not all countries have the same vehicle standards as the USA that repairs/retrofitting that has been performed on the vehicle must be disclosed.
• Original Taxi (Prior Taxi): Vehicle used for hire and may have extensive mileage
• Remanufactured: Car has been rebuilt with used or reconditioned parts
• Salvage: Car extensively damaged, possibly junked. Cars with this brand can be repaired and returned to the roads; if so, they will bear a Revived Salvage brand.
• Warranty Return/Lemon Law Buyback: Car returned to dealer or manufacturer under the terms of the California Lemon Law. Defects may still be present.

For more information about branded titles and the California Lemon Law, please contact the Law Offices of Howard D. Silver. Call 866-49-LEMON for a free consultation with a skilled California lemon law attorney.

The California Department of Motor Vehicles reports that an auto dealer and his wife have been arrested for their part in an alleged multimillion-dollar auto loan scheme.

This California auto fraud case underscores the need for consumers to be very careful with the information that they give to an auto dealer who also provides financing. Unscrupulous dealers can use that information to apply for additional car loans or home loans, potentially putting an innocent car buyer on the hook for more than he or she bargained for.

Tips for Safe Auto Financing

• Never sign a loan application with blank spaces for the dealer to “fill in later.”
• Always read any financial application form completely before signing
• Never sign backdated financial forms, including auto loan applications

If you have any questions or concerns about auto loan fraud or fraudulent auto dealer practices, please contact the Law Offices of Howard D. Silver. Call 866-49-LEMON for a free consultation with a skilled California used car fraud attorney.

According to a 10News report dated February 17, 2009, a 21-year-old Marine named Bradley Waterman was killed on Route 66 after his motorcycle spun out of control. CHP and Military authorities have yet to determine the cause of the accident. The Indiana native apparently lost control of his bike and drove into an oncoming pickup truck. The driver of the truck responsibly stopped and attempted life saving measures, but resuscitation attempts failed at the scene.

Despite his relatively young age, Waterman had received numerous decorations from the Marine Corps and Navy, including medals for serving in the Iraq campaign. He was based out of Camp Pendleton.

The death of a vital young 21-year-old Marine would be tragic in any context. In fact, given that so many motorcycle crashes are preventable, the situation seems even more frustrating and saddening.

Finding the ultimate cause of a bike crash can be an involved business. Automotive forensic science has made strides in the past decade, there is still much we don’t know about why crashes occur when they do.

If you believe your injuries or a loved one’s injuries may have been caused by a lemon motorcycle, call Howard Silver, skilled California lemon law attorney for help at 866-49-LEMON.

According to the California Department of Motor Vehicles, the Vehicle License Fee (VLF) that the state charges car owners is slated to nearly double on May 19, 2009. The VLF is a value-based tax charged to vehicle owners when they renew their vehicle registration with the DMV each year.

Currently the VLF is set at 0.65 percent of the purchase price of the vehicle (65 cents per 100 dollars of the sale price). New legislation pushed through to combat California’s budget deficit will increase this fee to 1.15 percent, or $1.15 per 100 dollars of the purchase price of the vehicle. The increase is earmarked for the state’s general fund with a portion going towards the Transportation Tax Fund.

The fee increase will target certain smaller vehicle classes—namely automobiles, motorcycles, trailer coaches and commercial vehicles with a gross weight under 10,000 pounds. Commercial vehicles weighing more than 10,000 pounds and vehicles currently exempt from paying VLF will be exempt from the increase.

Please keep in mind that the fee is based on the due date of your vehicle’s California registration fees. Paying your fees early will not exempt you from the increase. On the bright side, paying your fees late will not make you liable for the increased amount, provided your registration fee due date is before May 19, 2009.

The increased VLF fees are scheduled to remain in place until June 2011.

If you have any questions or concerns about California vehicle laws, please contact the Law Offices of Howard D. Silver. Call 866-49-LEMON for a free consultation with a skilled California lemon law attorney.

According to a March 8, 2009 article in the Pasadena Star News, Sheriff’s Deputy, Isaac Zaldivar, was killed in Pico Rivera on Rosemead Boulevard, after his bike hit a Toyota Camry. The 21-year-old Deputy was wearing a helmet and was riding with his younger brother when he was hit by a 75-year-old woman. According to local traffic analysts, the stretch of Rosemead Boulevard where the accident occurred has long been notorious for motorcycle and auto crashes.

Zaldivar passed away at LA County USC Medical Center from numerous traumatic injuries. His younger brother was treated and released with only minor injuries. The day after the accident, dozens of mourners from the area and from Zaldivar’s Department, paid tribute to the fallen motorcyclist.

Unfortunately, Zaldivar’s tragedy is all too common on California’s roads. Innumerable factors go into every motorcycle accident. And it is too soon to determinate precisely what went wrong in this case. However, analysts at the Motorcycle Safety Foundation, The California Highway Patrol, and other independent groups, concur that poorly maintained or under-performing bikes contribute to a sizable percentage of bike accident fatalities.

In these types of accidents, aggrieved claimants may be able to hold certain parties liable for injuries and damages. For instance, a motorcycle dealer who sells a lemon motorcycle to a customer -- who then crashes as a direct result of a bike’s poor, lemon-like performance -- can potentially be held liable for medical bills, pain and suffering, wages lost and some legal expenses.

If you think that your injuries or a loved one’s injuries were caused by a lemon motorcycle, call experienced California lemon law attorney Howard Silver at 866-49-LEMON.