California Lemon Law Blog

In addition to the Consumer Legal Remedies Act of California, which protects consumers by prohibiting used-car dealers from using deceptive and unfair business practices to sell their cars, new legislation (Senate Bill 95 and Assembly Bill 647) advocated by criminal justice officials and consumer protection groups will go into effect in January 2010.

Senate Bill 95, also referred to as the California Car Buyers Protection Act, will require auto dealers to have outstanding liens (legal claims on a vehicle as security for a debt) completely paid off before trading or selling a used car. Additionally, Assembly Bill 647 gives consumers access to a national database containing title, theft and other important vehicle information.

One State Senator commented that Senate Bill 95 will assist consumers who are already battling the tough economy. In fact, some car dealers have gone out of business due to the economy, leaving consumers with unpaid liens on vehicles that they traded in. Based on the article, the president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety stated that SB 95 “will help law enforcement agencies crack down on violations before hundreds of car buyers have their credit ruined at a single dealership.”

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Posted In: California Lemon Law , Law & Information , Unfair/ Deceptive Business Practices , Used Car Fraud

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An article from latimes.com reported that Robert G. Beverly, a well-known lawyer and Republican who worked in the state Legislature for almost 30 years, passed away on Wednesday, October 14, 2009 from complications connected to Parkinson’s disease. He was 84-years-old. According to the report, one of Robert G. Beverly’s major contributions was the creation of the Song-Beverly Consumer Warranty Act. His innovative consumer-protection legislation led to what so many consumers know today as our California lemon law statute. What many consumers don’t know is that the Song-Beverly Act dates back to 1970 and is the foundation for the consumer protections we now enjoy.

Thanks to the hard work of Mr. Beverly, citizens are protected from unscrupulous car dealers selling “lemons” and manufacturers that are unaware that their vehicles are flawed in some way. Pursuant to the lemon law, consumers may receive their money back or a replacement vehicle when the vehicle they purchased is defective.

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Consumers and citizens throughout the U.S. were shocked to hear that 3.8 million vehicles were being recalled by Toyota Motor Corp. due to poorly designed removable floor mats that increased the likelihood of accelerators getting stuck, cars accelerating out of control, and subsequent car accidents. According to a huffingtonpost.com article, this is Toyota’s largest recall to ever take place in the U.S. According to a Toyota spokesman, "A stuck open accelerator pedal may result in very high vehicle speeds and make it difficult to stop a vehicle, which could cause a crash, serious injury or death."

As Toyota works with officials from the National Highway Traffic Safety Administration (NHTSA) to find a solution for the faulty floor mat issue, owners of these vehicles have reportedly already been notified of the recall. Also, until the problem is fixed, consumers have been advised to take the removable floor mat out from the driver’s side of the vehicle and not substitute it with a replacement.

So what triggered this recall in the first place? Sadly, a high-speed collision took place in California in August involving an out-of-control Lexus automobile exceeding speeds of 120 mph due to a stuck accelerator. In addition to this tragic accident, NHTSA stated that 102 other incidents were reported regarding accelerators on Toyota vehicles that also may have become stuck due to the faulty floor mats.

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Posted In: Auto Product Recalls , California Lemon Law , Law & Information

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There are many different kinds of fraud associated with motor vehicles. Although consumers are typically more concerned with used car fraud or auto repair fraud in California than they are with auto insurance fraud, insurance schemes also have the potential to affect the wallets of consumers. A recent article from insurancejournal.com reported that a 56-year-old San Jose man was arrested for auto insurance fraud and faces criminal charges for filing a counterfeit motor vehicle claim, perjury, and falsely reporting a crime.

According to the story, this particular man went as far as reporting his “stolen” vehicle to the San Jose Police Department and filed a stolen vehicle claim with his insurance company. Sentry Insurance suspected the claim was fraudulent and reported the incident to the Department of Insurance. An investigation conducted by the California Department of Insurance (CDI) discovered that before the man reported his vehicle to be stolen, he purportedly tried to use the car as collateral for a loan. This incident serves as an important reminder that although our economy is struggling, turning to fraudulent actions is not a solution and there is no excuse for such behavior.

Based on the article, the California Department of Insurance received approximately 300 more vehicle theft and arson claims in 2008 than 2007. For consumers who really have had their vehicles stolen, fraudulent cases do nothing more than make the recovery process that much more difficult.

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

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