Righting Your New Car's Wrongs - Maryland Attorney General
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Righting Your Brian E. Frosh Attorney General New Car’s Wrongs C o n s u m e r Pr o t e c t i o n D i v i s i o n , M a r y l a n d A t t o r n e y G e n e r a l ’s O f f i c e Your Rights Under Maryland’s Lemon Law I f your new car spends more time in the repair shop than on the road, you know you have a problem. tion quickly to receive relief under the law. This publication will help you deter- or replacement vehicle under the Lemon Law if the car has: • A brake or steering failure that In most cases, the manufacturer’s mine whether your car is a lemon, tell was not corrected after the first re- warranty that comes with your car you what to do about it, and explain pair attempt, and that causes the will provide the coverage you need how Maryland’s Consumer Protection vehicle to fail Maryland’s safety to have your car repaired at no cost Division can help. inspection; or to you. Your warranty will tell you what parts and systems of your car Is It a Lemon? • Any one problem that substan- are covered and for how long. If you Maryland’s lemon law applies only to tially impairs the use and market need repairs, you must have them cars, light trucks, and motorcycles that: value of the vehicle that was not done by a dealer, although you do not corrected in four repair attempts; have to use the same dealer who sold 1. Are registered in Maryland, and or you your car. 2. Have been driven less than 18,000 • Any number of problems that In some cases, however, the dealer miles and been owned less than 24 substantially impair the use and may be unable to fix your car’s prob- months. (Even if you are not the origi- market value of the vehicle that lem. If that is the case, you may have nal owner, the Lemon Law might apply have caused it to be out of service a lemon. to your vehicle if the original owner for a cumulative total of 30 or Maryland’s Lemon Law applies to purchased it less than 24 months ago.) more days. new or leased motor vehicles (in- The law provides that a dealer or manu- cluding cars, light trucks and mo- If you suspect your car is a lemon— facturer must correct a defect within 30 torcycles), registered in Maryland, for example, if the dealer has tried once days after the consumer writes to the that are less than 24 months old and or twice unsuccessfully to repair the manufacturer by certified mail. If the have been driven less than 18,000 problem and you believe the problem manufacturer or dealer is unable to do miles. The law provides for consum- substantially impairs the use and mar- so, the consumer is entitled to a refund ers whose cars meet certain criteria to ket value of the vehicle — you should receive a refund or a replacement ve- write to the manufacturer imme- hicle if repair attempts have failed to diately. You do not need to wait correct a problem, and the problem until the dealer has made the substantially impairs the four repair attempts, or until use and market value the car has been out of service of the vehicle. for 30 days. Not all new cars with problems qualify as lemons, but if yours does, you must take ac- Rev. 8/19
What to Do If Your Car Hasn’t Yet Met What to Do If Your Car Does Meet What the Manufacturer Must Do the Definition of a Lemon the Definition of a Lemon and Once It Is Notified About Your Car’s You Have Not Yet Notified the Problem If your car does not yet qualify as a Manufacturer lemon, but is still covered by a war- If your car is a lemon and the manufac- ranty and is not working properly, you If your car is a lemon, you are entitled turer is unable to correct the problem should take the following steps: to a replacement vehicle or the manu- within 30 days of receiving your letter, facturer must refund the full purchase the manufacturer must repurchase or • Contact your dealer and ask to price minus an allowance for use, not replace your vehicle. If you previously have the problems repaired under to exceed 15 percent of the purchase contacted the manufacturer, you will the warranty. If your dealer is not price. want to send a follow-up letter by certi- cooperating or seems to be unable If you have not yet notified the manu- fied mail, return receipt requested, outlin- to correct the problem, contact an- facturer and you think your car meets ing your problem, the steps you have other dealer who sells the type of the definition of a lemon, you should taken to resolve it and what action you car you have purchased. A differ- immediately notify the manufactur- want taken. (See sample letter C.) ent dealer may be more success- er by letter, sent certified mail, re- The manufacturer can replace your ful in dealing with your problem. turn receipt requested. (See sample vehicle with a comparable one that is ac- You should not be charged for this letter B.) Send a copy of your letter ceptable to you, or buy it back, whichev- work. Keep copies of all receipts to the Consumer Protection Division er you prefer. The repurchase price you for work done on the vehicle. along with a completed complaint are offered should cover the full purchase form, and keep a copy for your own price including license fees, registra- • Immediately notify the manufac- files. In your letter, you should: tion fees and other similar governmental turer, in writing, of the problem and ask for assistance. Include the • List the make, model, year, and charges. The manufacturer can subtract year, make, model and Vehicle VIN of your vehicle. up to 15 percent of the purchase price for Identification Number (VIN) of your use of the vehicle, and a reasonable your car and enclose copies of • Include the name of the dealer- allowance for damage not attributed to repair orders from the dealer’s at- ship from which your automobile normal wear and tear. tempts to repair your vehicle. (See was purchased and the date of Excise taxes are not refunded by the sample letter A.) Send the letter purchase. manufacturer. The Motor Vehicle Admin- by certified mail, return receipt istration will return those to you or apply • Describe the problem you are them against your next vehicle. If you requested. Send a copy of your having. letter to the Consumer Protection have questions about excise taxes, you Division with a com-pleted com- can call the Motor Vehicle Administra- • Describe what you have done to plaint form, which can be found in tion’s customer service line at address the problem and include this publication. 800-950-1MVA. copies of repair orders and dates If the manufacturer refuses to provide of repair attempts. • Once the manufacturer receives you with a replacement vehicle or refund, your letter, it has 30 days to fix the Once the manufacturer receives or if you need assistance in negotiating problem. The manufacturer can your letter, it has 30 days to fix the the appropriate refund price or replace- authorize the dealer to make the problem. The manufacturer can autho- ment vehicle, you may file a complaint repair. rize the dealer to make the repair. with the Consumer Protection Division, and we will contact the manufacturer to • Keep copies of all correspondence assist you in your negotiations. A special with the dealer and manufacturer, complaint form is included with this and keep notes of phone calls, publication. including dates of the calls.
New Vehicle Warranty Complaint Form State of Maryland Office of the Attorney General Consumer Protection Division Baltimore Office Eastern Shore Office Western Maryland Office Prince George’s Office Consumer Protection Division Consumer Protection Division Consumer Protection Division Consumer Protection Division 200 St. Paul Place, 16th Floor 201 Baptist Street, Suite 30 44 N. Potomac St 9200 Basil Court, Suite 301 Baltimore, Maryland 21202 Salisbury, Maryland 21801 Hagerstown, Maryland 21740 Largo, Maryland 20774 410-528-8662 410-713-3620 301-791-4780 301-386-6200 An interactive complaint form is available on our website at www.marylandattorneygeneral.gov/Pages/Complaints/newcarwarrantee.aspx, or you may complete the form below and mail to the office nearest you. Last Name First Name Name of Dealership (where you bought your car) Street Address Street Address City, State, Zip City, State, Zip Daytime Phone # Evening Phone # Phone # Email: Vehicle: Year Make (Manufacturer) Model Vehicle Identification Number (VIN): Purchase Date: Mileage at Purchase: Current Mileage: Total price you paid for the vehicle: $ Is Your Vehicle Registered in Maryland? Yes No - OVER-
Please describe the problem(s) you have had with your new vehicle using the following chart and attach copies of all documents that relate to these problems (e.g., invoices, repair orders, etc.) to this form. Problem Date of Repair Mileage Have you notified the Manufacturer of the problems? Yes No If yes: Please attach a copy of your letter to this form. 1. Was the notification sent by certified mail, return receipt requested? Yes No 2. What, if any, response have you received from the manufacturer? (Please attach any written correspondence) ________________________________________________________________________________________________ ________________________________________________________________________________________________ Please mail your completed form to the Consumer Protection office nearest you (listed on other side). Rev. 08/19
Sample Letter A For notifying manufacturer of on-going problems (Vehicle has not yet met the definition of a “lemon”) Consumer’s Name Address City, State Zip Code Telephone Number Date Manufacturer’s Name Address City, State Zip Code BY CERTIFIED MAIL RETURN RECEIPT REQUESTED Dear Sir or Madam, I am writing to notify you of the problems I have been having with my [Year, Make, Model and VIN# of car] and to request that you correct this problem within 30 days of your receipt of this letter. I purchased my car from [Name of Dealership] on [date of purchase.] Approximately [amount of time after purchase], I began having trouble with [description of problem]. I took my car back to the dealer for repairs on [dates of repair attempts] but, to date, the dealer has been unable to cor- rect the problem. Attached are copies of the repair orders that document the dealership’s attempts to repair my car. This problem substantially impairs both the use and value of my car. Therefore, if you and/or your dealer are unable to correct this problem in a “reasonable number of attempts” as that phrase is de- fined in Maryland’s Automotive Warranty Enforcement Act (Md. Code Ann., Com. Law, §14-1502 (d) ), I will expect you to [repurchase or replace] the vehicle pursuant to §14-1502(c) of the Act. Please contact me at the above address or telephone number to arrange a mutually convenient date and time for you to inspect my car and make the necessary repairs. Sincerely, [Your Name] Enclosures
Sample Letter B Contacting manufacturer for first time if your vehicle is a “lemon” under the lemon law Consumer’s Name Address City, State Zip Code Telephone Number Date Manufacturer’s Name Address City, State Zip Code BY CERTIFIED MAIL RETURN RECEIPT REQUESTED Dear Sir or Madam, I am writing to notify you of the problems I have had with my [Year, Make, Model and VIN# of car] pursuant to Maryland’s Automotive Warranty Enforcement Act, Md. Code Ann., Com. Law, §14-1501 et seq. I purchased my car from [Name of Dealership] on [date of purchase.] Approximately [amount of time after purchase], I began having trouble with [description of problem]. I took my car back to the dealer on [Dates of Repair Attempts] to have this problem corrected but to date, the dealer has been unable to do so. Thus far, [my car has been out of service for a total of [number] days / a dealership has attempted to repair this problem [number] times.] Attached are copies of the repair orders that document the dealership’s attempts to repair my car. This problem substantially impairs both the use and value of my car. Therefore, unless you are able to correct this problem within 30 days of your receipt of this letter, I request that you [repur- chase or replace] my vehicle under the provisions of Md. Code Ann., Com. Law, §14-1502. Please contact me at the above address or telephone number to arrange a mutually convenient date and time for you to inspect my car and make the necessary repairs. Sincerely, [Your Name] Enclosures
Sample Letter C For contacting manufacturer if your vehicle is a “lemon” under the lemon law (use if you have already contacted manufacturer by letter at least once) Consumer’s Name Address City, State Zip Code Telephone Number Date Manufacturer’s Name Address City, State Zip Code BY CERTIFIED MAIL RETURN RECEIPT REQUESTED Dear Sir or Madam, I am writing to notify you of the continuing problems I have had with my [Year, Make, Model and VIN# of car] and to request that you [repurchase or replace] this vehicle pursuant to Maryland’s Au- tomotive Warranty Enforcement Act, Md. Code Ann., Com. Law, §14-1501 et seq. As you may recall, I previously notified you of these problems in a letter dated [date of prior letter]. I purchased my car from [Name of Dealership] on [date of purchase.] Approximately [amount of time after purchase], I began having trouble with [description of problem]. I took my car back to the dealer on [Dates of Repair Attempts] to have this problem corrected but to date, the dealer has been unable to do so. Thus far, [my car has been out of service for a total of [number] days / a dealership has attempted to repair this problem [number] times.] Attached are copies of the repair orders that document the dealership’s attempts to repair my car. This problem substantially impairs both the use and value of my car. Therefore, I request that you [repurchase or replace] my vehicle under the provisions of Md. Code Ann., Com. Law, §14-1502. Please contact me within 14 days to discuss this matter. Sincerely, [Your Name] Enclosures
Taking Your Lemon Law How We Can Help Complaint to Court We hope this information will assist The Arbitration Option If you are not satisfied with the results you in resolving the problems you of arbitration, or if you decide not to are having with your new car. If at All car manufacturers offer some form arbitrate, you have the right to file a any point in the process you want our of complaint resolution procedure. lawsuit against the manufacturer of assistance, please file the complaint If the manufacturer will not agree your vehicle. At this point, you should form included in this publication at to repurchase or replace your car, it hire a lawyer if you do not already the office closest to you. may offer to submit your dispute to have one. The Maryland Bar Associa- arbitration. This is an optional proce- tion or your county bar association dure; whether or not you use it is your can refer you to an attorney in your How You Can Reach Us choice. The decision of the arbitrator is area. You must file your case within Attorney General’s Offices binding only on the manufacturer, not three years from the date the car the consumer. If you are not satisfied was delivered to you. Downtown Baltimore with the arbitrator’s decision, you may Consumer Protection Division still file a lawsuit against the manufac- Warranty Adjustment Programs 200 St. Paul Place, 16th Floor Baltimore, MD 21202-2021 turer and take your case to court. If you plan to submit your complaint • Complaints General: When a part has a high failure rate, a 410-528-8662 to arbitration, here are some steps you car manufacturer will pay for certain (9 a.m. to 3 p.m., M-F) should take to prepare: repairs even after the original warranty • Toll-free:888-743-0023 • Arrange your records in chrono- expires. These “warranty adjustment • TDD for hearing impaired logical order. Prepare a brief programs” were often referred to persons: 410-576-6372 outline summarizing the events. as “secret warranties” because the Send written complaints to: Submit copies of records about manufacturer would notify dealers about Mediation Unit your car’s problem and a copy the repairs but not consumers. Under Consumer Protection Division of your warranty along with an Maryland law, manufacturers must now 16th Floor arbitration application. notify consumers about any warranty 200 Saint Paul Place Baltimore, MD 21202-2021 adjustment programs and, upon request, • Ask the arbitration program repre- provide consumers with copies of the e-mail: consumer@oag.state.md.us sentative to send you copies of all bulletins sent to dealers about the repair Branch Offices materials submitted in advance program. Although manufacturers • Cumberland by the manufacturer so you often arrange to reimburse 301-722-2000 can anticipate and respond dealers for the cost of repairs (9 a.m. to 12 p.m., to its arguments. so that consumers will not be 3rd Tues. of each month) charged, consumers who do pay • Frederick • You may want to 301-600-1071 for repairs covered by the warranty have an independent (9 a.m. to 1 p.m., 2nd and adjustment program should seek automotive expert examine 4th Thurs. of each month) reimbursement from the manufacturer. your car. You can submit a writ- • Largo ten report of the expert’s findings 301-386-6200 to the arbitrator. You will have to (9:00 a.m. to 5:00 p.m., M-F) Consumers may contact the National pay for the expert, but the report Highway Traffic Safety Administration • Hagerstown might help you make your case. 301-791-4780 (NHTSA) or their car’s manufacturer (8:30 a.m. to 4:30 p.m., M-F) You can ask the arbitrator to reim- for more information on recalls and burse your expenses in obtaining • Salisbury technical service bulletins. NHTSA may 410-713-3620 the report, although you cannot be reached at http://www.nhtsa.gov or (8:30 a.m. to 4:30 p.m., M-F) be assured you will be compen- toll-free: 1-888-327-4236. • Southern MD, Hughesville sated for this expense even if you 301-274-4620 prevail in the arbitration. Toll-free: 1-866-366-8343
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