California Lemon Law Blog

According to an edmunds.com article, a man received a full refund of $240,000 for his 2008 Lamborghini Gallardo Spyder after repeatedly visiting dealers in both Seattle, Washington and Scottsdale, Arizona to seek a repair for the high-pitched brakes in his car. Neither dealer was able to fix the problem, even after Lamborghini had technicians fly out to work on the Gallardo. The owner still complained that the brakes were making too much noise.

This refund may seem shocking especially to those of us who do not own a luxury car, but the Lamborghini-owner’s story is encouraging in that lemon laws throughout the country should be upheld under qualifying circumstances to protect consumer rights.

The state of Washington’s lemon-law arbitration program was updated earlier this year so that it is more wide-ranging, applying to a greater number of vehicles. Due to the value of the man’s car in this particular case, the panel met and ruled in his favor, saying that Lamborghini must give the vehicle owner his money back. Their decision was based on Washington law, which states that the customer can get his or her money back for a vehicle that has been taken in unsuccessfully for repairs at least twice within 12 months.

Although this incident took place in the state of Washington, California's lemon law is just as important in ensuring that consumers’ rights are secured. In California, if during the first 18 months of vehicle ownership or 18,000 miles, there have been at least two unsuccessful attempts at fixing a problem that makes the vehicle unsafe, it is presumed that the vehicle is a lemon qualifying for a refund. Compensation may also be given after four or more attempts that prove to be unsuccessful for the same problem, or after 30 or more days out of service during that same time period.

Continue reading " Lemon Law Full Refund Applied to Lamborghini with Shrill Brakes " »

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There has been much controversy lately regarding California Assembly Bill 1200, also known as “the steering bill”, which did not pass this week in a 19-17 Senate vote. California Assembly Bill 1200 would remove restrictions against an insurer to require or suggest that a vehicle be repaired at a specific auto repair dealer. If the bill had been approved, insurers would have apparently had more leeway in steering customers to their preferred shops. According to a report, it is possible that the bill may be reintroduced.

At the heart of the criticism is the notion that it does not give consumers the protection they need or require. A California-based consumer advocacy group that opposes the Bill, Consumer Watchdog, has published multiple insurance company documents that are said to show evidence of anti-consumer practices and direct repair programs (DRPs) that do not really help consumers. In fact, one contract between an insurance company and its desired group of body shops revealed that the auto body shop was being pressured into maintaining lower costs, at the expense of having their contract terminated if they did not comply.

The executive director of Consumer Watchdog said that these questionable contracts create “reverse competition.” Instead of competing for customers, body shops are fighting for insurer referrals, which are ultimately determined by the shop’s capability of cutting its rates, thus leading to poor auto repair work stemming from those cut-rate prices. In addition, another document revealed that a body shop was reprimanded for using more factory parts than an insurance company preferred. Also, it was recommended by the insurance company that the body shop use more after-market parts to lower costs.

Continue reading " California Steering Bill Drives Off the Beaten Path: Senate Does Not Approve " »

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Posted In: Car Repair Fraud , Law & Information , Unfair/ Deceptive Business Practices

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