Extended warranties, extended service contracts, maintenance agreements are a huge profit center for car dealerships. For consumers, however, it is like buying soda and popcorn at the movie theatre to take home: a great way to overpay! (Keep in mind that you can usually buy the same or similar products elsewhere for FAR less.) Now,…
If the dealership says on the purchase contract that you paid money down when you didn’t, the dealership has violated the Truth-in-Lending Act, among other laws. A Connecticut dealership that listed a fictional down payment on a customer’s sales contract has recently been found to owe the consumer damages. Don Mallon Chevrolet Inc. in Norwich,…
Automotive News reports on an alleged scam regarding lease turn-in charges for consumer vehicles and an ongoing court case. The case started with Ford Credit’s assessment of $2,658 for excess wear and use on a Windstar that a consumer leased from 2000 to 2003 through Ford Credit’s Red Carpet program. Ford Dealerships conducted lease-end inspections…
The Detroit News reports that federal safety regulators have opened an investigation into 830,000 Toyota vehicles over complaints of fires sparked by power window switches. The National Highway Traffic Safety Administration said Friday it was opening a preliminary investigation into the 2007 Camry and RAV4 after receiving six consumer complaints alleging a fire in the…
Odometer fraud is huge problem for California Used-Car Buyers. Consumer protection groups have estimated at least 20% (or more) of all used cars sold have the odometers “rolled.” Of course, odometers are electronic/digital now and are not actually manually rolled back. Computers are used now. Many of these vehicles have “washed” titles running through Texas…
The Consumer’s Friend recently posted a story about a retired lawyer taking on Honda over mileage in small claims court. She’s won, for now. The Torrance Small Claims Court Commissioner ruled that American Honda Motor Co. misled the woman by claiming the hybrid could achieve as much as 50 miles per gallon, the Los Angeles…
For GMAC, AmeriCredit, GM Financial, or any other auto finance company operating in California, they must provide a thorough and fair Notice of Intent to Sell to consumer’s whose vehicles they have repossessed. You have the right to reinstate or pay off your contract, and if that is not provided, they can’t come after you…
As part of its report over the increase in Small Claims jurisdiction from $7500 to $10000 dollars, the Los Angeles Consumer Affairs Department recognized that “Legal representation by an attorney can be difficult to find for minor disputes involving less than $25,000 in damages. ” This is one reason why class actions and consumer protection…
AB 125 – Chapter 24 – Ins. Code §§1758.96 & 1758.992 Effective on May 10, 2011 (Urgency Bill) Summary: Clarifies that insurance deductibles may be covered by GAP insurance, expands the types of vehicles that can be covered by GAP insurance, and clarifies the role of “waiver” clauses. Background: When a car is totaled in…
This new law establishes a misdemeanor penalty for repair dealers who fail to properly repair and restore an airbag to its original condition after preparing a written estimate. Background: At least 30,000 car repairs are performed each year where a deployed airbag is not replaced. Nationally, 20% of all deaths in crashes caused by an…
