California Lemon Law Blog

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.