Motor vehicle insurance law
California Consumer Law Blog
- Lemon Law Arbitration Not Recomended
Here's a cautionary tale against using the California Arbitration Certification Program and not hiring an attorney who specializes in California Lemon law to deal with your defective vehicle:
A potentially dangerous problem has been found with some 2007 Toyota Tacoma trucks, causing numerous truck owners to file complaints with the National Highway Traffic Safety Administration. All said their trucks suddenly accelerate or lurch forward while stopped.
"If you are in severe traffic, your car isn't going to slow down," Victor Downin of Foresthill, CA has reported. "It's going to be a real problem not rear-ending another car." Downin tried to work with his Toyota dealership first to get the problem corrected or to get Toyota to buy back the truck under California's lemon law. He said Toyota told him to take it to three different dealerships for inspection. All three noted no problem.
Downin then headed to the California Arbitration Certification Program, a third-party arbitration process approved by the Department of Consumer Affairs and sponsored by the manufacturers. Downin's arbitration was not successful. The arbitrator said there was not enough evidence to support his complaint. It was reported that he could try to get another warranty repair and go through arbitration again, or take his claim to court.
Downin claims in news reports that he does not plan to contact an attorney. He is waiting for the outcome of a National Highway Traffic Administration investigation into the surging problem. Toyota has said it was unaware of complaints but will fully cooperate with federal investigators if asked to do so.
Arbitration may work for some consumers who fear the legal system. But consumers usually do not win. Last year there were 2,049 consumer requests for arbitration. Consumers won repair in 17 percent of cases. Consumer won return or restitution 15 percent of the time. But in 60 percent of cases, consumers got nothing.
Moreover, participating in the process may actually harm your future legal claims against the manufacturer. You are giving the manufaucturer full access to your documents, statements, your vehicle without assistance of counsel. You may unwittingly make a disclosure or statement which can, and likely will, be used against you in a later lawsuit.
I'm sorry that Mr. Downin has such a poor opinion of the justice system that he feels compelled to wait for a federal agency to take action rather than hiring an attorney who specializes in California Lemon Law. Under the current administration, I am afraid Mr. Downin will be waiting a long time. I hope for Mr. Downin's safety and the safety of others, he parks the vehicle.
Word to the wise: Don't get stuck with a lemon. Sometimes all it takes is a letter from an attorney to get a manufacturer to realize it is going to have to buy back the vehicle. Don't wait for the manufacturer to do the right thing. It could mean your life or livelihood.
- Top 10 Consumer Scams
The Federal Trade Commission has released a statistical survey of fraud in the United States that shows that 30.2 million adults – 13.5 percent of the adult population – were victims of fraud during the year studied. More people – an estimated 4.8 million U.S. consumers – were victims of fraudulent weight-loss products than any of the other frauds covered by the survey.
Fraudulent foreign lottery offers and buyers club memberships tied for second place in the survey. Lottery scams occur when consumers are told they have won a foreign lottery that they had not entered. Victims supplied either personal information such as their bank account numbers or paid money to receive their “winnings.” In the case of buyers clubs, victims are billed for a “membership” they had not agreed to buy. An estimated 3.2 million people were victims of these frauds during the period studied.
Fraudulent prize promotion schemes ranked fourth in the fraud survey, with an estimated 2.7 million victims reporting making a purchase, a payment, or attending a sales presentation to receive a prize that either was never delivered or was not what the consumer expected.
Work-at-home programs, in which the purchaser earned less than half of the income the seller had promised, ranked fifth among the fraudulent schemes covered by the survey. An estimated 2.4 million individuals fell victim to these schemes, and many purchased more than one fraudulent work-at-home program.
Twenty percent of African Americans and 18 percent of Hispanics are estimated to have been victims, while the rate for non-Hispanic whites was 12 percent. In addition, the survey found that younger consumers, those who did not complete college, and those with high levels of debt were more likely to be victims of fraud. Consumers between 65 and 74 years of age were 32 percent less likely to report having experienced fraud than those between 35 and 44.
The top 10 frauds listed in the report include:
* Fraudulent Weight-Loss Products (4.8 million victims)
* Foreign Lottery Scams (3.2 million victims)
* Unauthorized Billing - Buyers Clubs (3.2 million victims)
* Prize Promotions (2.7 million victims)
* Work-at-Home Programs (2.4 million victims)
* Credit Card Insurance (2.1 million victims)
* Unauthorized Billing - Internet Services (1.8 million victims)
* Advance-Fee Loans (1.7 million victims)
* Credit Repair Scams (1.2 million victims)
* Business Opportunities (.8 million victims)Consumers also reported falling victim to other specific scams, including pyramid schemes.
Print advertising – direct mail, including catalogs, newspaper and magazine advertising, and posters and flyers – was used to pitch fraudulent offers in 27 percent of reported incidents. The Internet, including Web sites, auction sites, and e-mail, was used to make 22 percent of the fraudulent pitches. Television or radio accounted for 21 percent of the pitches, and telemarketing accounted for nine percent.
Makler & Baker LLP offers these tips for consumers:
* Know who you’re dealing with: Do business only with companies that plainly provide their name, street address, and phone number.
* Protect your personal information: Share credit card and other personal information only with companies you know and trust; never share it in email, regardless who is asking for it.
* Take your time: Resist the urge to act now. Most any offer that’s good today will be good tomorrow, too.
* Read the small print: Get all promises in writing and read all paperwork before paying any money or signing any contracts.
* Free means free: Throw out any offer that says you have to pay to get a gift or for something that’s called “free.” If something is free or a gift, you shouldn’t have to pay for it.
* Report fraud: If you think you’ve been a victim of fraud, report it. It’s one way to get even with a scam artist who cheated you. Complain online at ftc.gov.; report to your local law enforecement agencies.
* Contact a reputable and experienced consumer protection law firm. If you think you have been a victim of fraud, call Makler & Baker LLP at 866-985-3666 to evaluate your legal options.
- Consumer Organizations Support 'Right to Repair Act'
"Thanks to America's five major consumer organizations, which have dedicated their work to keeping consumers safer, competition alive and the environment clean, 'The Motor Vehicle Owners' Right to Repair Act' will have an additional boost for passage," stated David Parde, president, The Coalition for Auto Repair Equality (CARE).
The letter of the consumer groups' endorsement, jointly signed by the Advocates for Highway and Auto Safety; Center for Auto Safety; Consumers for Auto Reliability and Safety; Consumer Federation of America; and Public Citizen, have endorsed HR 2694, The Motor Vehicle Owners' Right to Repair Act, by stating that, "the ability to quickly and easily repair computerized vehicle systems is crucial for the safe operation of a vehicle.
"Under the bill, vehicle owners will also be able to choose, on cost and reliability grounds, between competing repair facilities and aftermarket parts. Consumer and independent service sector access to vehicle maintenance information will in turn greatly enhance overall public safety and the environmental effort to clean up our air," continued the joint statement.
Parde added to the consumers organizations' statement by stating that: "'The Right to Repair Act' is about the ability of motoring consumers to actually own their vehicles' repair information, which should have been included with the purchase of the vehicle. Vehicles that are now out of warranty should not be forced back to the higher-priced car dealerships for repair work unless the consumer chooses that venue."
The consumer organizations' endorsement of 'The Right to Repair Act' says, "we request that FTC Chairman Deborah Platt Majoras, uphold her commitment to American consumers through the development of sound antitrust policy and strict enforcement in this area. We are committed to work with Chairman Majoras in order to provide to American consumers the advantages of robust competition in access to automotive repair facilities," contin
