When Taking Your Car in for Warranty Service, You MUST Control the Contents of the Repair Order!

July 19th, 2010

Hello Readers,

Quite some time ago, manufacturers discovered that they can derail lemon law cases by slight twists of language on the repair orders. It works like this: vehicle owner is having transmission problems, and brings it in first time for “hard shifting”, which is what the dealer’s service writer writes down on the repair order. Then, two months later, owner brings car back in again for “hard shifting”. The manufacturers now have a “flag system,” wherein any customer who brings a vehicle in for warranty service for the same problem a second time has their vehicle “flagged” on the computer screen. The purpose of this system is to alert the dealer technicians and service writers that there is the potential of a lemon law claim with this vehicle.

So, the service writer hears “hard shifting” as a complaint; perhaps he writes it down on the repair order because the vehicle has not yet been “flagged”; perhaps the vehicle is already flagged, or gets flagged as he’s entering data into the manufacturer’s online warranty repair system. Either way, the service writer knows, or learns, that this vehicle is a potential lemon law claim. On this visit, or on the next one, he no longer writes down the customer’s complaint as “hard shifting”; instead, he thinks of another way to express it which diverts attention away from the transmission, such as “gas pedal sticking,” or “engine over-rev”, whatever alternative words that the dealer’s service writer chooses instead of “hard shifting”.

The purpose? When the customer goes to file his or her “lemon law” claim after five or six repair attempts for “hard shifting”, he is surprised to discover that he has only two repair orders which mention “hard shifting,” whereas he has five other repair orders that talk about different problems. The manufacturer can then argue that they did not have enough repair attempts for the “hard shifting,” and so can give themselves an unfair advantage in the lemon law claim.

How to you protect against this? You write out your complaints before you go to the dealership (or type them out on a computer), copy them and present your own written description of the problems to the service writer. Insist that they attach your written sheet to the repair order. That way, you ensure that YOUR description of the problem is what appears on the repair order. This leaves no room for the service writer to play any games. Obviously keep copies of everything in its own file, so you have a clear record of what you have handed to the service writer.

I hope this short blog entry is of use to you.

Bob Brennan

TOYOTA RECALLS AND YOUR RIGHTS

March 17th, 2010

TOYOTA RECALLS AND YOUR RIGHTS

UNDER CALIFORNIA’S LEMON LAW:

“FOOLS DON’T RUSH IN”.

Robert F. Brennan, Esq.

BRENNAN, WIENER & ASSOC.

La Crescenta, Ca. 91214

Copyright © 2010 by Robert F. Brennan

All Rights Reserved

Hollywood produced a movie a few years ago, “Fools Don’t Rush In,” in which a guy fell in love with Selma Hayek but played it cool and coy, and ultimately won her heart.

The movie’s title is my theme for advising people about their rights under California’s lemon law with respect to the many Toyota vehicles that have been recalled. Those of you who have been following have, as of today’s date (March of 2010) observed that Toyota has decided to fight these cases. The most dramatic recent case involves the driver in San Diego who accelerated to pass another car and his Prius thereafter speeded up to 94 mph and would not slow down. One would imagine that Toyota would “roll over” and settle the case quickly, but instead it sent its engineers to a local dealership and tried to replicate the defect. The engineers could not reproduce the defect, whereupon Toyota kicked its public relations machine into high gear to flood the internet with stories challenging the driver’s credibility and competence as a driver.

Simultaneously, a YouTube video has gone viral, showing a guy wearing a balaklava (full-face ski mask) with sunglasses, using excessive profanity and describing how to turn off a runaway Prius, should it happen to you. Do ya really think Toyota didn’t have something to do with that? If so, I have some choice swampland in southern Mississippi which I’ll sell to you at a firesale price…

The PR and the marketing jousting aside, this short article gives you what you need to know about your rights under California’s lemon law as it bears upon the recalled Toyota vehicles.

1. A Recall Is Essentially Independent of a Lemon Law Claim: the two are essentially independent of each other. No recall—voluntary or involuntary—deprives you of your rights under California’s lemon law. If any dealership tries to get you to sign something waiving any of your rights under California’s lemon law, don’t sign it. You need not sign anything, and you need not give away any of your rights, to obtain recall service.
2. If You Have Not Had the Acceleration or Braking Problems, Get The Recall Work Done and Insist That It Be Done: I have studied the interview of the fellow in San Diego, who, allegedly, just barely escaped with his life when his Prius accelerated to 94 mph and would not slow down. With the assistance of the California Highway Patrol, he was eventually able to stop his vehicle and get out safely. When the press interviewed him, they asked if he’d had the recall work done and he responded that he took it to a Toyota dealership last month but was told his vehicle was not covered by the recall. So, he did not have any of the recall work done. If you own a Prius or one of the other affected vehicles, take it to a dealership and insist that the recall work be done!
3. You Do Not Have a California Lemon Law Case Simply Because You Are Afraid to Continue Driving Your Car: California’s lemon law, like most lemon laws, is triggered by repair attempts. It is not triggered by widespread media coverage of a recall or of problems with the vehicles. You need to have repair attempts before you invoke the California lemon law. In general, the legal standard is that you have given Toyota a reasonable opportunity to fix the defects, and the defects have persisted or have manifested so often that you “have reached the end of your rope”. If you have repair attempts for any of the problems covered by the recalls, particularly if you have repair attempts for these problems after you have had the recall work done, then you most probably have a lemon law claim and we would gladly review your case free of charge and advise you whether you have a lemon law claim.
4. If You Have One of the Vehicles that Has Exhibited the Defect Dramatically, Toyota Will Likely Repurchase The Car Without a Lemon Law Claim: if you have one of the cars that has accelerated dangerously on the highway and/or has had a dangerous brake failure, and it is documented (i.e. there is a recorded call with 9-1-1 or with the California Highway Patrol), my sense is that Toyota will likely buy the car back, quietly, as a goodwill/public relations gesture, and may even offer you some additional money, if you contact them directly. You can contact Toyota through your dealer or at the address given in your warranty booklet. If your Toyota has manifested the defect or defects and Toyota refuses to deal with you in good faith, contact our law firm for a free case review at: info@brennanlaw.com or at (818) 249-5291.
5. If You Have Suffered Injury or Death Because of Toyota’s Defects, You Need to Contact an Attorney: Be advised: if you or family members have suffered injuries or death because of the defects, then you need to go through an attorney to handle the situation. A serious injury or death claim is not a lemon law claim and needs special attention and evaluation by attorneys and by mechanical experts. If you were to try to contact Toyota directly, Toyota would likely not give you what your case is worth and will have you sign a release foreclosing any future claims. If you have any questions in this regard, contact our law firm at info@brennanlaw.com or at (818) 249-5291.
6. If You Are Contacted by a Class Action Firm, I Would Advise Against Joining the Class if Your Vehicle Has Manifested the Defects: in general, class members get a lot less in class actions than consumers who pursue their claims on an individual basis. If you join a class, remember that you will likely be limited to what the attorneys negotiate for the entire class, even if your case is stronger than that of other class members. For instance, let’s say your car has manifested the defect even after you had the recall work done. You would likely have a very strong lemon law claim wherein you could obtain your full purchase price, any additional money you put into the case and have your attorney’s fees paid by Toyota. However, as a class member, you would likely get a small monetary award or a coupon of some sort towards an oil change or your purchase of your next Toyota vehicle.
7. Short Recap of What You Need to Do: My advice to the many Toyota owners who have contacted us is, first, to have the recall work done. Obviously document every non-optimum thing your car does, particularly with regard to the acceleration or braking systems. If your car does not manifest any of the problems, I would not necessarily worry about the car but I would learn what there is to be learned about shutting your car off in the event of a sudden acceleration or a braking failure. If you are contacted about a class action lawsuit and you have not experienced any problems with your car, I see no reason not to participate with the class and I would “opt in” to the class. If your car has experienced any of the defects which are the subjects of the recalls, I would not participate in any class action and instead would consult an attorney concerning a potential lemon law claim. If you or your family members have suffered injuries or death as a result of the defects, I would consult with a products liability attorney.

I hope this short article is of use to you. Thanks for reading.

Robert F. Brennan

Are You Driving a Lemon In California?

March 8th, 2010

Should You Participate in a Class Action Against Toyota for the Recalled Toyota Cars?

February 10th, 2010

Toyota Recall and Your California Lemon Law Rights

February 10th, 2010

Fighting Back against “Tampering” Defense in Lemon Law Cases

January 13th, 2010

What You Need to Know to Prevent Car Dealers, and Other Finance Sources, From Accessing Your Credit Reports Without Your Permission

June 4th, 2008
June 4th, 2008

June 4th, 2008
Dear Readers,

More and more, people arrange for their own financing before buying cars or other big-ticket consumer items (boats, refrigerators, etc.) In my own opinion, this is a superior idea. However, such consumers then fill out credit applications at the dealership, which in turn pulls the consumer’s credit and lowers the consumer’s credit score with a “hard pull”. This is entirely unnecessary.

I have received many calls over the years from consumers who tell me (and I generally believe them) that they verbally told the dealership not to pull the credit report, but the dealer does anyway. Can they do anything? Usually, no. I address this problem in a very recent correspondence with a woman named Rebecca, which follows:

“Dear Mr. Brennan, I have a questions I went to a dealership to buy a car, did not do business with them financially I already had my loan from the credit union and I told them this, thy promised me they wouldn’t pull my credit or touch anything like that. Once I signed the paper work from them to send the buyers order and sticker to my credit union etc. I came to work the next morning had got notice that the dealership pulled my credit regardless and its showing on all 3 bureu’s what can I do? Signed, Rebecca”

“Dear Rebecca, if you signed something from the dealer authorizing them to pull your credit, there’s not a lot you can do. Unfortunately at many car lots, etc., the authorization to pull your credit is in small print and you would not normally notice it unless you were specifically looking for it. I usually advise consumers to specifically look for and cross out the language giving the dealer the right to pull a credit report, if indeed the consumer is not going to be applying for financing through the dealer. If the consumer already has his or her own loan, there’s absolutely no reason for the dealer to pull credit, but dealers will often pull credit anyway to find out how much they can upcharge the consumer with worthless add-ons on their loan, such as window etchings, leather treatment, etc.

“However, the moral of this story is, don’t rely on verbal assurances that the dealer will not pull credit. You need to read through the purchase contract, or other dealer documents, and find the language allowing them to pull credit, and cross it off. Or, give them a letter with your signature stating that you positively do not grant them permission to pull credit, and obviously keep a copy for yourself. It needs to be in writing to get anywhere with an unauthorized credit access claim.”

Thanks for taking the time to read & hope this helps you. Bob Brennan

Maserati and Transmissions

May 9th, 2008
May 9th, 2008

It’s now public: Maserati re-tooled its transmission in its Quattroporte luxury sedans because the manual and the automatic modes simply did not work well together. This tranny problem particularly affects the 2004 to 2006 model years.

“Didn’t work well together” is a serious understatement. One of our clients was nearly killed on the freeway when the car stalled on shifting repeatedly at freeway speeds. This was one of but many failures by this vehicle’s transmission.

If you have one of these cars and you need to work with someone who already knows the Maserati transmission story, please don’t hesitate to call us & thanks for reading.

Bob Brennan

What Are Your Rights When You Buy a Used Car “As-Is”?

April 2nd, 2008
April 2nd, 2008

Hello again.

When I started doing consumer protection law, the only dealerships which would sell used cars “as-is” were the smaller dealerships, never the major franchise dealerships. Now we’re seeing more and more major franchise dealerships selling used cars “as-is”, so it’s worth writing to you so that you have an accurate idea of what your rights are in an “as-is” transaction. Here is a list of the pertinent “rules of the road” for “as-is” transactions, under California law:

1. If the dealer or manufacturer gives or sells you ANY kind of a warranty or a service contract in connection with the sale of the vehicle, the sale is not “as-is” even if you sign an “as-is” statement (called a “Buyer’s Guide” in the industry). At the very least, you would have an implied warranty that the vehicle is “merchantable”, i.e. would pass as acceptable in the industry under the circumstances of the sale, if the vehicle is sold with a service contract or any kind of warranty.
2. Any “as-is” disclosure must be very conspicuous. On a Buyer’s Guide, you’ll commonly see the “as-is” box in minimum 20-point bold type, easy for the eye to see. If you have signed a contract with a “small-print” or concealed “as-is” clause, that “as-is” clause is probably not valid.
3. An “as-is” transaction, if done properly, gets rid of any express or implied warranty on the vehicle, but it does not excuse the dealer or manufacturer for fraud or nondisclosure. We’re seeing more and more cars with undisclosed collision damage or tampered odometers being sold to consumers at major dealerships. These dealerships believe they are insulating themselves from liability by having the consumer sign an “as-is” disclosure, but this simply is not true. “As-is” eliminates the warranty and the specific legal rights arising from the warranty, but it does not eliminate a consumer’s claim for fraud or causes of action in California which resemble fraud, such as the Consumer Legal Remedies Act.

The long and short of it: I always recommend that consumers get at least some kind of warranty because it will give them rights down the road if the car is a complete lemon. However, if you buy a car “as-is”, it is not the end of the road for you in terms of making a claim against the dealer or manufacturer for fraud or nondisclosure. There are particular situations, such as undisclosed collision damage, tampered odometers and “lemon law buyback” vehicles, where my firm has an excellent record of success even though we sometimes have to bring such actions over an “as-is” clause. The “as-is” clause also does not affect claims of finance fraud or lease fraud, as elsewhere covered in this blog.

Thanks for taking the time to read this. I hope it is of use to you and your family and friends.

Bob Brennan

Lemon Law and Leases

April 2nd, 2008
April 2nd, 2008

Two posts in one day? What, too much caffeine, Bob? No, I’m just addressing some of the questions we’ve been hearing frequently from consumers contacting us for assistance or advice.

Evidently some dealers and manufacturers have been telling consumers of leased vehicles that they do not have the same “lemon law” rights when they lease cars. This is not accurate. The fact of a lease does have some impact upon a consumer’s lemon law rights, but the consumer yet retains substantially the same lemon law rights as purchasers of vehicles. Here are the points you need to know:

1. In a lease, you really do not have any equity in the car so your damages are usually limited to your inception payment and your payments into the vehicle. If the manufacturer or dealer agrees to unwind the lease, you need to make sure that the lease is being paid off in the settlement so this does not remain an obligation which ultimately could affect your credit.
2. Many manufacturers argue for a larger “mileage offset” for leases, because, they claim, the mileage on the vehicle is a greater percentage of the more limited period of the lease as opposed to the longer period of “permanent ownership” in the event of a sale. This is a negotiation point to be worked out on a case-by-case basis, depending upon the total circumstance.
3. In general, if you wait until late into the lease to bring your lemon law claim, the manufacturers will more than likely ignore you on the basis that your lease is substantially used up. So, for instance, if you have a three-year lease and you bring your lemon law claim after 18 months, you stand a far greater chance of getting a good result than if you wait until 28 months into the lease. The longer you wait, the more likely the manufacturer will just sit back and say, “The lease is almost up–let’s ignore this lemon law claim.”
4. Many leases include a “residual value” (agreed-upon value upon lease expiration, most frequently used to calculate the cost of purchasing the vehicle) as a part of the lease. If the residual value is less than the total lease payoff, some manufacturers try to “sucker” consumers into believing that the manufacturer is only responsible for paying the residual value, not the lease pay-off, when the case settles. Ignore this crap. If you win your lemon law claim, you have a right to have your lease completely paid off. Settlements may vary and, depending on the circumstances, may or may not accomplish complete payoff of the lease, but this is no reason to buy into this poor argument from manufacturers that the residual value has anything to do with settling the case.
5. If you exceed your mileage allotment significantly, this will negatively affect the strength of your lemon law claim. As with all lemon law cases, if you can afford to limit your driving of the vehicle, or even park it, this will improve chances of winning and of getting full compensation.
6. Whether you buy the car at lease expiration is up to you, and you can continue with your lemon law claim on a leased vehicle even if the lease is expired and you have had to turn in your car. However, since you no longer have the car, the case is obviously worth less total money and it usually makes more sense to settle for some cash compensation once the vehicle’s lease has expired.
7. If you have a lease fraud or a finance fraud claim, this normally is not treated as a lemon law claim and involves a whole different set of rights about which you should consult us directly.

I hope these brief pointers help out with those of you out there who have leased their vehicles. Thanks for reading.

Bob Brennan