Lemon Law Protection

How Your State's Lemon Law Can Offer Protection

My question pertains to a charge-off on my credit report for a vehicle.

We purchased a vehicle in 2003 and from about day one we had problems with the steering on it. The dealer said they fixed is numerous of times, but everytime it still wasn't fixed.

The dealer would never try to help, they just kept saying it was us. So my husband just got fed up with it and told the dealer to come and get the car.

So technically he surrendered the vehicle. So they sold it at auction, leaving us owing about 13,000 dollars on it.

GMAC wrote it off as a charge off. Now we have a collection agency trying to collect on this.

Can you tell me how I need to go about resolving this issue. We don't have the money to pay a lump sum on this.

Renee

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You made a major mistake in your handling of this matter. You should have made a claim under your state's "Lemon Law."

The manufacturer would have had fix the car or replace it. In the back of most automobile owner's manuals is a list of the manufacturer's area representatives or phone numbers and web addresses for customer service at the company wide level. This is where you should have appealed when your problems weren't resolved by the dealer.

I don't know how long ago you turned in the car or your state's Lemon Law statute of limitations. I'm afraid that even if the statute of limitations has not run, you have forfeited any protection a Lemon Law would have provided.

I think you should hire a lawyer well versed in consumer protection matters. Call your local bar association's Lawyer Referral Service for names.

In addition to the Lemon Law issue, there is the question as to whether your state allows "deficiency judgments" - claims against the borrower when foreclosed property is sold at auction.

He would also have to check if the auction was at arm's length and that GMAC got a proper wholesale price for the vehicle.

He might be able to negotiate with GMAC or the car manufacturer based on your Lemon Law claim.

Your state might offer other solutions I am not aware of.

If you can't afford a lawyer, try Legal Aid or see if there might be some consumer advocacy group who might be able to supply you with a lawyer.

Other than that you can expect to be sued if you don't make arrangements to repay the loan - or you can consider bankruptcy.

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