Attorney Blog

Hyundai Ranks Highest in Customer Retention among 33 Automotive Brands

blog@www.theconsumerlawgroup.com (News Author)29491 — Thu, 19 Jan 2012 08:00:00 EST

Car Buyer Rights in Virginia Extended Warranties

blog@www.theconsumerlawgroup.com (News Author)29419 — Tue, 17 Jan 2012 08:00:00 EST

Selling Cars on Consignment

blog@www.theconsumerlawgroup.com (News Author)29258 — Tue, 10 Jan 2012 08:00:00 EST

Selling Cars on Consignment in Richmond, Virginia.

Is Your Car a Lemon? Top 10 Car Maintenance Mistakes

blog@www.theconsumerlawgroup.com (News Author)29036 — Wed, 28 Dec 2011 08:00:00 EST

Is your car a lemon? Here are 10 maintenance mistakes that people often make. If your car is not a lemon here are some tips to make it last longer.

115 Cars Made 2012 Top Saftey Picks' List

blog@www.theconsumerlawgroup.com (News Author)28727 — Thu, 15 Dec 2011 08:00:00 EST

Here is a list of the Safest Cars for 2012 as rated by the Insurance Institute for Highway Safety. We know you want to be safe.

Debt Settlement Definitions

blog@www.theconsumerlawgroup.com (News Author)28134 — Fri, 18 Nov 2011 08:00:00 EST

Here is a definition and explanation of Debt Settlement. It is not the same thing as Debt Consolidation!

We also have a Questionnaire on our Website you can fill in and send to us.

We can help you with your Debts.

Leased Cars Instead of Clunkers are Popular for High Schoolers

blog@www.theconsumerlawgroup.com (News Author)26802 — Tue, 27 Sep 2011 08:00:00 EST

Should you lease a car for your high schooler instead of buying a clunker? More parents are doing just that according to a nationwide leasing business. The number of one-year leases for high school seniors is up 17% from a year ago, says LeaseTrader.com, a short term leasing marketplace. The reason: demand for leased cars shot up this year after Japan's earthquake and tsunami shrank the number of new cars available, making used cars pricier and harder to find.

Rather that enter a new full-term lease, parents typically take over the remaining 12 to 14 months of an existing lease.

Pros:
* No long-term commitment on car payments.
* Most vehicles are only 1 to 2 years old, with excellent saftey records.
* No down payment.
* Lease contract expires around the same time son or daughter heads off to college.

Cons:
* No car after a year.
*Insurance costs are higher for newer cars. And leasing companies often require additional insurance to cover their losses if the car is damaged.
* Mileage limit restrictions result in extra charges if you exceed the remaining allotted miles outlined in the lease terms, which typically run from 8,000 to 14,000 miles.
*Upkeep costs could be higher than on a car you own, because this is the bank's vehicle and you will be held to certain standards fro regular maintenance.

Avoid Credit Card Fraud

blog@www.theconsumerlawgroup.com (News Author)26586 — Tue, 20 Sep 2011 08:00:00 EST

Avoid Credit Card Fraud
Mistakes to avoid in becoming a victim of debit or credit card fraud:
Failing to look for skimmers:
Check to make sure skimming devices have not been put on ATM or point-of-sale terminals requiring a PIN.
Banking online in a public place:
An open wireless network makes it easier for hackers to intercept online transactions, passwords and other private business.
Responding to phishing messages:
If you receive a text message on your phone from your bank, and it asks you to log in to your card account immediately but you didn't contact the bank, raise your mental drawbridge.
Ignoring your rights and responsibilities:
If you've lost your credit or debit card, call your card issuer immediately.
Not using free fraud protection:
Fraud protection is available by card issuers and financial institutions.

Guide To Summer Road Travel

blog@www.theconsumerlawgroup.com (News Author)24342 — Fri, 01 Jul 2011 08:00:00 EST

Guide To Summer Road Travel

Best Ways to Save Gas

blog@www.theconsumerlawgroup.com (News Author)23718 — Fri, 10 Jun 2011 08:00:00 EST

Gas Pumping Tips

blog@www.theconsumerlawgroup.com (News Author)21660 — Mon, 21 Mar 2011 08:00:00 EST

TIPS ON GAS PUMPING:

Only buy or fill up your car or truck in the early morning when the ground temperature is still cold.　Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role.

When you're filling up do not squeeze the trigger of the nozzle to a fast mode. If you look you will see that the trigger has three (3) stages: low, middle, and high. You should be pumping on low mode, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some of the liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.

One of the most important tips is to fill up when your gas tank is HALF FULL. The reason for this is the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.

Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up; most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom.

2011 Automotive Hot List: The Departed...

blog@www.theconsumerlawgroup.com (News Author)18435 — Thu, 21 Oct 2010 08:00:00 EST

If there’s one constant in this world, it’s this: We live in a world of constant flux. In the automotive world, however, we’ve all grown accustomed to seeing the same group of manufacturers introduce new models each year. You know the names. But for the 2011 model year—thanks largely to the huge economic downturn that began in late 2008—four well-known American nameplates have gone the way of the Edsel, so to speak.

Of these four, the Hummer brand was the most short-lived. The original Hummer H1 (or Hum-Vee) was a celebrity of the Persian Gulf War. In 2002 came a smaller and (slightly) more manageable version, the Hummer H2. Exactly what made suburbanites decide they needed a four-wheeled facsimile of a machine-gun toting, troop-hauling war machine parked in their driveway is best left to future generations to explain. Perhaps the supersized and fuel-guzzling excess of the Hummer brand will someday look as quaint as towering tailfins from the late-1950s? Or perhaps not.

Pontiac and Mercury always maintained a far more balanced product portfolio during their much longer life-spans. First introduced in 1926 as a model in GM’s Oakland lineup, Pontiac was established as its own make in 1929, to prop up sales at its parent division. Pontiac immediately outsold and eventually far outlived Oakland, which faded away in 1931. Pontiac’s historical highlights include the 1964 Pontiac GTO (the car that defined the muscle-car era) and the Firebird sports coupe.

Mercury was introduced in 1939, not to boost another brand’s sales, but to fill the price gap that had emerged between Ford and its upscale sibling, Lincoln. Cars like the 1949 Mercury Coupe driven by James Dean in Rebel Without a Cause all but guarantees the brand immortality – even if the nameplate itself has finally driven into the sunset. Years of badge engineering eventually dissolved Mercury’s identity, squeezing the brand out of the Ford Motor Company family tree.

Perhaps the biggest surprise – at least in terms of positive automotive karma – is the loss of Saturn. Created by GM to take the fight to imports, Saturn was marketed as “a different kind of car company,” thanks to a lineup of fuel-sipping small cars and no-haggle pricing policy. If only the cars lived up to the feel good dealership experience. A lack of development and new models left Saturn spinning out of orbit. A list ditch effort to market vehicles built by GM’s German-based Opel division as Saturns proved too little too late.

1. Pontiac In theory, it was GM’s performance brand. We’ll miss cars like the G8, GTO and Solstice GXP; we wish we could erase the Aztek from our memory (as did Pontiac, no doubt).

2. Mercury Founded in 1939 by Henry Ford’s son, Edsel, Mercury most recently served as an example of poor badge engineering.

3. Saturn Originally known for its plastic-bodied cars and “no-haggle” dealer model; severely held back by a lack of new and unique product.

4. Hummer Thrust into pop culture by a muscle-bound Austrian-born actor/governor, these off-road-biased trucks proved far too bulky and inefficient for the times.

How to sue telemarketers in small claims court

blog@www.theconsumerlawgroup.com (News Author)17809 — Wed, 22 Sep 2010 08:00:00 EST

By Gray Hall - bio | email

RICHMOND, VA (WWBT) – Most of us have gotten those annoying calls from telemarketers. If you have received the calls and have tried all you can to make them stop, lawyers say you can take legal action.

If telemarketers are constantly harassing you, attorneys say you may be entitled to hundreds of dollars. You can actually sue telemarketers if it's proven they are breaking the law by constantly calling.

Attorney, John Gayle is in the business of helping people. As a Consumer Attorney with The Consumer Law Group, he's gotten lots of calls for his help -- some of those from people complaining that telemarketers just won't stop calling.

He says, "the calls, contacts, and communications and solicitations for business became so annoying that Congress decided we had to put some restrictions on them."

That's where the no call registry comes in. It was created to help stop the annoying calls. People sign up and tele-marketers are supposed to stop calling. But if the calls don't stop coming in, legal experts say you have the power to take action -- and you could make some money in the process if telemarketers don't stop calling you.

Gayle says, "they are allowed one violation for free, it's kind of like every dog gets one bite." He says, if they surpass the one, so called "oops call" then you can take them to small claims court, and possibly cash in.

He says, "you are entitled to $500 per call, if they did this willfully it's up to $1,500 per call."

Gayle says before you get too excited about a chance to make some cash, you need to make sure you are prepared. He says, first log the calls -- note the date, time and name of the company that keeps calling.

Next, make sure you have a full understanding of the law for small claims court. Finally, prepare to present your case before a judge.

Martin Wegbreit, with the Central Virginia Legal Aid Society says, "it's simply a matter of educating yourself -- education is power."

He says the process to sue in small claims court is not difficult. He says you'll need about $53, fill out a couple of forms and you are ready.

The court even has an interactive web site that will walk you through the process. Wegbreit says you may get paid before you even step into a courtroom.

He says, "in the overwhelming majority of these cases, I think the matters will settle out of court before a trial date ever takes places." Gayle says if you don't want to deal with preparing a case -- you can always contact an attorney and charge their fees to the company you are suing.

We didn't find any local cases, but we did find one case back in 2005 from Newport News, where the state sued a company called real time international for violating the Telephone Consumer Protection Act . The company lost -- a judge ordered them to pay $200,000 for breaking the law.

Gayle says as people learn that they can sue, we may see more cases against tele-marketers in court.

He says, "the idea is not to make me money or the make the caller $500 but that if enough people start exercising their rights under the Federal and Virginia Law maybe these people will stop."

It usually takes about 21 days before you can get your case in front of a judge in small claims court. One thing to note is that there is a statue of limitations -- you have four years to file the suit.

Know what your contract says

blog@www.theconsumerlawgroup.com (News Author)17539 — Wed, 08 Sep 2010 08:00:00 EST

Posted: May 06, 2010 7:16 PM EDT
Updated: May 06, 2010 7:16 PM EDT

By Diane Walker - bio | email
Posted by Terry Alexander - email

RICHMOND, VA (WWBT) - What happens when your contractor wants to change the price after the contract is signed? Are they required to do the work for the price in the original contract? 12 On Your Side looked into a homeowner's complaint.

It depends on what's spelled out in the contract. In this case though, a consumer law attorney says, no.

George May hired 'AAPCO of Richmond, LC' to demolish his porch and build a brick veneer one with sand filler, vinyl rails, and post columns. Total cost, $6,000. The written contract called for a $2,000 down payment which George paid. Before the crew broke ground, AAPCO found a problem with the price.

"He said the measurement is right but the problem is with the brick. They didn't charge enough for the bricks," said George.

The job would cost $10,000 instead of $6,000; not what George agreed to when he and the salesman signed the contract.

"That's the price I should be paying not an extra $4,000," George said.

AAPCO's GM said, "We want the work. We don't like surprises, but a company can go under on the 'unexpected'." It also says it's a 3rd party contract, which is "not" binding to either party until a company official does a pre-job inspection and signs - accepting the agreement. That line is blank on George's contract.

"I think the attempt to say it's a 3rd party contract & they're not obligated is a clear example of a misrepresentation," said Consumer Law Attorney John Gayle.

Gayle says AAPCO should honor the contract.

"I don't see where the contract does give them the power to change the deal," Gayle said.

Unexpected things do crop up, through no fault of the contractor, who then may be able to draw up an addendum depending on what's in the contract. The Department of Professional and Occupational Regulation says a contract should state - price changes must be done in writing, and signed by all parties and include a ‘buyer's right to cancel'.

AAPCO's contract has those elements, but if May's contract isn't official -- then when does his right cancel take affect?

"My opinion is it is a way for them to stonewall and talk people who are not lawyers into changing the terms of a contract," said Gayle.

AAPCO chose not to talk on camera. The homeowner and AAPCO have reached a compromise, which keeps the job at the original price. Meantime, it's smart to ask the contractor -- if the 'unexpected' happens, what will this contract do for you?

Stop aggressive debt collectors: You have rights

blog@www.theconsumerlawgroup.com (News Author)17162 — Mon, 23 Aug 2010 08:00:00 EST

As seen on WWBT, NBC12 News, on July 25, 2010:

By Gray Hall - bio | email

RICHMOND, VA (WWBT) – If you are the victim of constant aggressive debt collection calls, you do have rights. If the harassing calls don't stop and debt collectors are violating the law, they could end up owing you money.

Many Americans are overwhelmed with debt and are being flooded with calls from debt collectors. While you may owe the money, attorney's we talked to say there is a legal and an illegal way to try and collect the money.

Like many Americans, William Brewer fell on hard times and got behind on his bills, not soon after the Debt Collectors started calling. Things got so bad, he was thinking of extreme measures.

"The crazy thing. I am sitting here telling my mom, 'mom should I go out and rob somebody?' She says 'oh Lord, no, pray', and I am going they want get off my back," he said.

John Bennett, with Clear Point Financial Services says Brewer is not alone; more people are coming to organizations like his for help.

"We have seen job loss, reduction income, people don't know how to manage their money in tough times," Brewer said.

Brewer says he got behind on his cell phone bill it topped a $1,000. He says the harassing collectors were relentless.

"Even on Sunday's, I was like 'gees, on God's day they call,'" he said. Brewer's Landlord got sick of the calls and put him out.

When he tried to explain his financial situation -- the aggressive debt collectors didn't want to hear it.

"It was at the point they even called and I said look, jobs are not that great right now and they said you need to come up here and work, you need to get out and do something," Brewer said.

In the act of desperation, Brewer went to the Internet looking for help. He stumbled on The Consumer Law Group and Attorney John Gayle.

"Once I get involved, the harassment stops," Gayle said.

Gayle says many consumers don't realize they have rights under the Fair Debt Collection Practices Act. The law is set up to protect you from aggressive tactics.

"Calling people names, verbal abuse, threats of imprisonment, calling third parties who are not involved in it," he said.

The law limits when and how often debt collectors can call. Gayle says there is also a statue of limitations on re-payment of a debt -- five years from the date of default on written contracts, and three years for unwritten.

"In other words, it is so old they can't pursue this debut in further legally," he said. If it's proven the debt collectors broke the law they could actually end up paying you a thousand dollars or more.

"I had one client who lost her hair because of all the calls so on top of the damages of a statutory one thousand dollars you can get actual damages," said Gayle.

Brewer now has a job and the collectors have stopped calling. From now on, he's hoping future calls are only from family and friends.

"My intention is to pay all my bills. I want to get my credit back on line and my life back online and everything else," Brewer said.

Remember, while there are limitations, it's not against the law for debt collectors to call you -- and if you don't pay they can take legal action against you, but can not threaten legal action unless they actually plan to follow through.

3 Auto Dealer Tactics the Overhaul Missed: By RON LIEBER

blog@www.theconsumerlawgroup.com (News Author)16542 — Tue, 27 Jul 2010 08:00:00 EST

As reported in The New York Times, the dealers won out, and now that they have, it’s worth examining some of the practices that had consumer groups so exercised. Think of this as a guide to the issues that the new agency may have tackled if it had only been able to.

3 Auto Dealer Tactics the Overhaul Missed

The $555,000 Student-Loan Burden: provided by The Wall Street Journal

blog@www.theconsumerlawgroup.com (News Author)14750 — Fri, 14 May 2010 08:00:00 EST

By Mary Pilon:

When Michelle Bisutti, a 41-year-old family practitioner in Columbus, Ohio, finished medical school in 2003, her student-loan debt amounted to roughly $250,000. Since then, it has ballooned to $555,000.

It is the result of her deferring loan payments while she completed her residency, default charges and relentlessly compounding interest rates. Among the charges: a single $53,870 fee for when her loan was turned over to a collection agency.

"Maybe half of it was my fault because I didn't look at the fine print," Dr. Bisutti says. "But this is just outrageous now."

To be sure, Dr. Bisutti's case is extreme, and lenders say student-loan terms are clear and that they try to work with borrowers who get in trouble.

But as tuitions rise, many people are borrowing heavily to pay their bills. Some no doubt view it as "good debt," because an education can lead to a higher salary. But in practice, student loans are one of the most toxic debts, requiring extreme consumer caution and, as Dr. Bisutti learned, responsibility.

Unlike other kinds of debt, student loans can be particularly hard to wriggle out of. Homeowners who can't make their mortgage payments can hand over the keys to their house to their lender. Credit-card and even gambling debts can be discharged in bankruptcy. But ditching a student loan is virtually impossible, especially once a collection agency gets involved. Although lenders may trim payments, getting fees or principals waived seldom happens.

Yet many former students are trying. There is an estimated $730 billion in outstanding federal and private student-loan debt, says Mark Kantrowitz of FinAid.org, a Web site that tracks financial-aid issues -- and only 40% of that debt is actively being repaid. The rest is in default, or in deferment, which means that payments and interest are halted, or in "forbearance," which means payments are halted while interest accrues.

Although Dr. Bisutti's debt load is unusual, her experience having problems repaying isn't. Emmanuel Tellez's mother is a laid-off factory worker, and $120 from her $300 unemployment checks is garnished to pay the federal PLUS student loan she took out for her son.

By the time Mr. Tellez graduated in 2008, he had $50,000 of his own debt in loans issued by SLM Corp., known as Sallie Mae, the largest private student lender. In December, he was laid off from his $29,000-a-year job in Boston and defaulted. Mr. Tellez says that when he signed up, the loan wasn't explained to him well, though he concedes he missed the fine print.

Loan terms, including interest rates, are disclosed "multiple times and in multiple ways," says Martha Holler, a spokeswoman for Sallie Mae, who says the company can't comment on individual accounts. Repayment tools and account information are accessible on Sallie Mae's Web site as well, she says.

Many borrowers say they are experiencing difficulties working out repayment and modification terms on their loans. Ms. Holler says that Sallie Mae works with borrowers individually to revamp loans. Although the U.S. Department of Education has expanded programs like income-based repayment, which effectively caps repayments for some borrowers, others might not qualify.

Heather Ehmke of Oakland, Calif., renegotiated the terms of her subprime mortgage after her home was foreclosed. But even after filing for bankruptcy, she says she couldn't get Sallie Mae, one of her lenders, to adjust the terms on her student loan. After 14 years with patches of deferment and forbearance, the loan has increased from $28,000 to more than $90,000. Her monthly payments jumped from $230 to $816. Last month, her petition for undue hardship on the loans was dismissed.

Sallie Mae supports reforms that would allow student loans to be dischargeable in bankruptcy for those who have made a good-faith effort to repay them, says Ms. Holler.

Dr. Bisutti says she loves her work, but regrets taking out so many student loans. She admits that she made mistakes in missing payments, deferring her loans and not being completely thorough with some of the paperwork, but was surprised at how quickly the debt spiraled.

She says she knew when she started medical school in 1999 that she would have to borrow heavily. But she reasoned that her future income as a doctor would make paying off the loans easy. While in school, her loans racked up interest with variable rates ranging from 3% to 11%.

She maxed out on federal loans, borrowing $152,000 over four years, and sought private loans from Sallie Mae to help make up the difference. She also took out two loans from Wells Fargo & Co. for $20,000 each. Each had a $2,000 origination fee. The total amount she borrowed at the time: $250,000.

In 2005, the bill for the Wells Fargo loans came due. Representatives from the bank called her father, Michael Bisutti, every day for two months demanding payment. Mr. Bisutti, who had co-signed on the loans, finally decided to cover the $550 monthly payments for a year.

Wells Fargo says it will stop calling consumers if they request it, says senior vice president Glen Herrick, who adds that the bank no longer imposes origination fees on its private loans.

Sallie Mae, meanwhile, called Mr. Bisutti's neighbor. The neighbor told Mr. Bisutti about the call. "Now they know [my dad's] daughter the doctor defaulted on her loans," Dr. Bisutti says.

Ms. Holler, the Sallie Mae spokeswoman, says that the company may contact a neighbor to verify an individual's address. But in those cases, she says, the details of the debt obligation aren't discussed.

Dr. Bisutti declined to authorize Sallie Mae to comment specifically on her case. "The overwhelming majority of medical-school graduates successfully repay their student loans," Ms. Holler says.

After completing her fellowship in 2007, Dr. Bisutti juggled other debts, including her credit-card balance, and was having trouble making her $1,000-a-month student-loan payments. That year, she defaulted on both her federal and private loans. That is when the "collection cost" fee of $53,870 was added on to her private loan.

Meanwhile, the variable interest rates continue to compound on her balance and fees. She recently applied for income-based repayment, but she still isn't sure if she will qualify. She makes $550-a-month payments to Wells Fargo for the two loans she hasn't defaulted on. By the time she is done, she will have paid the bank $128,000 -- over three times the $36,000 she received.

She recently entered a rehabilitation agreement on her defaulted federal loans, which now carry an additional $31,942 collection cost. She makes monthly payments on those loans -- now $209,399 -- for $990 a month, with only $100 of it going toward her original balance. The entire balance of her federal loans will be paid off in 351 months. Dr. Bisutti will be 70 years old.

The debt load keeps her up at night. Her damaged credit has prevented her from buying a home or a new car. She says she and her boyfriend of three years have put off marriage and having children because of the debt.

Dr. Bisutti told her 17-year-old niece the story of her debt as a cautionary tale "so the next generation of kids who want to get a higher education knows what they're getting into," she says. "I will likely have to deal with this debt for the rest of my life."

Beware the Rip-Off Sticker: Provided by edmonds.com

blog@www.theconsumerlawgroup.com (News Author)14179 — Wed, 21 Apr 2010 08:00:00 EST

By Ronald Montoya, Consumer Advice Associate

As we ventured onto the dealer lot to purchase a Ford Fusion Hybrid for our long-term fleet, we noticed a small sheet of paper listing additional costs, posted next to the window sticker. It caught us off guard, since we hadn't seen these additional charges when we viewed the car on the dealership's Web site.

This seemingly harmless sheet of paper, containing two additional dealer add-ons, inflated the price of the vehicle by $600. Worse yet, it complicated our negotiations. In the industry, this list of add-ons is called the "supplemental sticker." We call it the rip-off sticker.

Added Dealer Profit

The rip-off sticker adds high-profit items for a dealer that hold little or no value to the consumer. In our case, the sticker added two products: an interior "protection" package, and an "Express Code Marking System."The interior protection package is a chemical sprayed on the vehicle's upholstery to waterproof it and protect it from stains. The dealer was charging $195 for this service. We performed a quick search online and found a bottle of 3M Scotchgard Auto Interior Fabric Protector for about $9 on 3M's Web site. This product promises the same advantages as the stuff sprayed onto your upholstery at the dealership, but costs $186 less.

The second product was the Express Code Marking System. This marking system consisted of a special label placed on key body parts of the vehicle that if removed, would leave the imprint of an ultraviolet identification number. It wouldn't notify the police, ruin the part or make any sort of noise. The dealer was charging $400 for this product.

Your Items May Vary

Products added to the rip-off sticker vary by dealership. Somewhere else it might be chrome wheels, paint sealant or a "protection package." A dealership near our offices had its own list of add-ons to many of the new vehicles it sold. One vehicle's rip-off sticker added nearly $1,200 to the price of the vehicle. On one car, the sticker listed two add-ons: an applied sealant package and a protection package.

According to the salesman we spoke to, the applied sealant is a special layer that protects the car's paint and is backed by a warranty. Since every new car comes from the factory with a protective "clear coat" layer, it might be difficult to prove if this product is working. If your car's paint looks good after a few years, would you credit the sealant or the factory clear coat?

The $595 protection package consisted of a rubber cargo tray, wheel locks and splash guards. We called the parts and service department and asked for the same items over the counter. Individually, the price totaled $375, installed. If we installed the parts ourselves (not hard to do), we could save an additional $70. We knew that the items were less expensive à la carte, but few buyers know these items are negotiable — or that you could ask to have them removed.

The Choice Is Yours

"Most customers never bothered to remove the add-ons," said Hector Moreno, a former Honda dealership employee. "When they put the addendum near the Monroney [window sticker] it looks official, and most people just assumed it came with the car."

During negotiations for our long-term Fusion we told the assistant sales manager that we weren't interested in the extras. "I'll let them know," he said, referring to his managers, "but they're going to give me some pushback on this." The assistant manager came back with a reduced price for the add-ons. Things were starting to get complicated. Not only were we negotiating the price of the vehicle, but the add-ons as well.

Each offer we made brought down the cost of the add-ons, but kept us distracted from our primary goal of getting the best price on the vehicle itself. This is exactly what they wanted. The negotiation kept going in circles, and the dealer's last offer was $300 higher than where we began, so we walked away. We eventually bought the car online at another dealer, and avoided all the hassle.

Stickers Everywhere

After the fact, we found other customers who had had similar experiences at this dealership. One stated in an online review: "I purchased a 2010 Mustang from this dealership. Before they even had the car on their lot, I asked them if there would be any additional fees. The salesman told me 'yes, we will add interior protection [$295] and VIN etching [$495].'" I adamantly stated I did not want either service, and was told that this is mandatory on all vehicles that enter the lot. The services hadn't been rendered and they refused to oblige my request. Due to the circumstances I couldn't choose another dealer. Had things been different I would have gone elsewhere in a heartbeat."

This is a widespread issue, and in no way isolated to the local dealerships we visited. If you come across a dealer that uses a rip-off sticker, how should you handle it? On our CarSpace forums, Dave from Manassas, Virginia, has a strategy we agree with: "A good dealership will present these offers and let the consumer decide for him/herself whether they need/want them. The bad ones force [the products on] them. Me, I don't need any of this stuff. I'm convinced I can go without, do it myself, or find it MUCH cheaper elsewhere."

If you see the rip-off sticker, it might be an indication of how the dealership operates. But if they have the vehicle you want, remain firm about having the products removed or not paying for them. By telling a dealer that you aren't interested in add-ons, you'll send a message that these items hold no value to you. If they are persistent, don't be afraid to walk away from the deal.

Secret tips for buying a new car: Provided by CNNMoney.com

blog@www.theconsumerlawgroup.com (News Author)13749 — Tue, 30 Mar 2010 08:00:00 EST

NEW YORK (Fortune) -- Want to know the best day to buy a car next month? It's April 12th, the Monday before taxes are due, according to a new study. Since shoppers will be preoccupied and feeling poor, dealers will be eager to make a deal so they can move some inventory.

The worst day will be likely Easter Sunday, April 4th. Shoppers will be out in abundance and eager to celebrate the holiday by buying with a new model. Dealers can sit back and just take order.

Which cars carry the biggest discounts as a percentage of sticker price? The survey says two of them are Chevies: the Cobalt and the Malibu both sport $3,000 incentives. But there is also $6,000 on the hood of the Volvo XC70, and a whopping $10,000 for the customer who can afford the $80,000 BMW 6 Series.

This kind of data has long been difficult to collect and, when it is, rarely disseminated. It is the rawest kind of competitive information and it can dictate the shape of marketing and incentive campaigns costing hundreds of millions of dollars.

A new service called TrueCar says it has acquired transaction information for more than 43% of all the new cars and trucks sold in the U.S. For the first two months of the year, that represented more than 600,000 sales.

TrueCar has massaged the data to show which vehicles sell for the greatest variability from the sticker price. That lets analysts know which models are resonating in the marketplace -- and informs the customer where the best deals are.

Want to know which brands are offering the largest incentives? TrueCar ranks Ford and Hyundai first and third. Ford is offering discounts that are 13% off the sticker price and Hyundai 12%. These two makes have been heralded for their sales results this year, but, if the data is accurate, their success may be coming at the expense of profits. Chrysler and Jeep rank second and fifth, which is no surprise, because both are short of new models, and their dealers have been in revolt.

Some of the TrueCar data requires an extra layer of analysis. For instance, the service lists five 2010 models with the largest discounts below sticker price. Four of them, however, are being replaced this year or are being phased out -- the Hyundai Sonata, Jeep Grand Cherokee, Jeep Commander, and Chevrolet Cobalt -- which means they are being discounted more heavily to clear out inventory in the path of new models.

The same goes for the list of cars with the least flexibility in their transaction prices. Topping the list is the Mercury Grand Marquis, an old-fashioned body-on-frame sedan that hasn't been updated since the first Bush administration. The Grand Marquis is in short supply and is sold primarily to older buyers, who are presumably set in their ways and aren't inclined to dicker over price.

Likewise the Mazda MX-5 Miata and Chevrolet Corvette are listed as among the models with the most price flexibility. That presumably will change when spring arrives and demand surges for convertibles and sports cars.

Still there is a boatload of data here that provides new insights:

Which manufacturer does the best job of managing its end of the year sell-down? Subauru, where only 0.3% of its sales came from 2009 models.
Which vehicles move fastest off the lot? The Mercedes GL550, BMW 335D and Chevy Equinox. Blame limited production for the two German makes and a hot new model for the Equinox.
Which sit around the longest? Among the top five are the Ford Mustang, Chevy Malibu and Dodge Grand Caravan.
Sometimes reports like these have the effect of altering consumer behavior. So if an army of shoppers hit the showrooms on April 12 looking for a deal, the discounts will dry up

Car buying just got a bit more interesting.

'No evidence of failure' after US recall fixes: Toyota

blog@www.theconsumerlawgroup.com (News Author)13300 — Tue, 09 Mar 2010 08:00:00 EST

Fri Mar 5, 2:09 am ET

TOKYO (AFP) – Embattled Toyota said Friday it had found no evidence of failure in vehicles it had fixed for accelerator problems after some 60 post-recall complaints were sent to US authorities.

US regulators said Wednesday they were looking into complaints from Toyota drivers who say they experienced sudden spikes in speed in vehicles that had been repaired under the auto giant's recall.

However, Toyota said it took the reports "extremely seriously" but had found no evidence that the problem was persisting.

The company said it "moved quickly to evaluate the vehicles and interview the owners", stressing that the reports "involve a tiny fraction of the more than one million vehicles dealers have repaired to date".

With US authorities "now reviewing the results of our evaluations, it is inappropriate for Toyota to provide specific information about the company?s conclusions," said a statement by Toyota Motor Sales USA.

"However, the evaluations have found no evidence of a failure of the vehicle's electronic throttle control system, the recent recall remedies or the brake override feature," said the statement released from California.

Toyota said it would continue verifying all such cases after the US National Highway Traffic Safety Administration said it received dozens of complaints from Toyota drivers even after their cars were repaired.

The Japanese auto giant has recalled more than eight million cars and trucks worldwide, including six million in the United States, to address potentially deadly defects blamed for incidents of sudden, unintended acceleration.

U.S. satisfied with Toyota recall remedy: By John Crawley John Crawley

blog@www.theconsumerlawgroup.com (News Author)12802 — Fri, 12 Feb 2010 08:00:00 EST

Safety regulators are satisfied with a Toyota Motor Corp. plan for fixing a sudden acceleration problem that is part of a massive recall and unprecedented sales and production halt, a government official said on Saturday. (Read More)

GM to make its own electric motors in 2013: By DEE-ANN DURBIN, AP

blog@www.theconsumerlawgroup.com (News Author)12393 — Tue, 26 Jan 2010 08:00:00 EST

The automaker said Tuesday that starting in 2013, it plans to build its own electric motors for hybrid and electric vehicles. GM has been getting electric motors for those vehicles from suppliers, but wants to make the motors in-house in order to lower costs and improve quality and reliability. (Read more.)

Ford, Subaru, VW Win Insurance Industry Picks: By Ken Thomas

blog@www.theconsumerlawgroup.com (News Author)12067 — Tue, 05 Jan 2010 08:00:00 EST

Provided by: Associated Press. The insurance industry's annual list of the safest new vehicles.
http://autos.yahoo.com/articles/autos_content_landing_pages/1168/ford-subaru-vw-win-insurance-industry-picks/

10 SUVs That Keep Going and Going and Going...: by Eric Mack Monday, July 20, 2009

blog@www.theconsumerlawgroup.com (News Author)11811 — Mon, 21 Dec 2009 08:00:00 EST

See Vehix.com Article.

Most Popular Cars of 2009: By Jeff Voth, CarNews Media

blog@www.theconsumerlawgroup.com (News Author)11618 — Mon, 07 Dec 2009 08:00:00 EST

The year 2009 will go down in history as a watershed moment for the automotive industry. American icons General Motors and Chrysler filed for bankruptcy protection, seizing as much taxpayer money as possible in their efforts to fend off impending doom. Both survived, but under much different circumstances than anticipated decades earlier.

Going or almost gone from the GM’s portfolio were Hummer, Saturn, Pontiac and Saab along with a myriad of employees. Chrysler, sold to Italian automaker Fiat SpA, was now under the control of Canadian-born chief executive Sergio Marchionne and harboured an immediate need for new product. A summer launch of the Cash for Clunkers program would help both, but for how long?

Ford was in amazingly good shape, declining offers for government aid in an effort to keep its counterparts from going under. Ford realized, without a healthy GM and Chrysler, it too would be out of business, not large enough on its own to keep afloat the supply network necessary to run an entire industry. New products were streaming full speed into the market, with Taurus, Fusion and Flex leading the way.

Not surprisingly, Yahoo! Autos most searched for car brands in 2009 represent the strengths and sometimes failures experienced in the auto industry this past year. Toyota and Honda placed first and second on our list. Both companies shared the spotlight with successes in new products, the 2010 Toyota Prius, and continuing sales of mainstays such as the Honda Civic and Accord. Not all was roses, however, Toyota suffered from unexpected recalls while both companies encountered downward trends and the need to exit racing, specifically Formula 1, to conserve cash and develop new products faster.

Ford ranked third, with Nissan fourth and BMW fifth. Nissan did feel the pinch of a tighter economy, but under the strong leadership of CEO Carlos Ghosn, it seemed well positioned to tread carefully while others succumbed to economic pressures. BMW continued their A-plan of designing new and exciting vehicles such as the 535i Gran Turismo, and for the most part, consumers responded. With additional product set to launch, both Nissan and BMW appear poised for additional success in 2010.

When it came to ranking the most searched for individual models, it turns out that the enduring popularity of the iconic American muscle car, such as the Chevy Camaro and Ford Mustang, is still tough to beat. In fact, five of the top 10 most searched cars are American made. However, smaller, fuel-efficient models are still top of mind with consumers as evidenced by the continued popularity of the Honda Civic, Mini Cooper and Smart ForTwo.

Volkswagen Steals Toyota's Crown as World's Largest Automaker: By Sean Tucker

blog@www.theconsumerlawgroup.com (News Author)11405 — Mon, 23 Nov 2009 08:00:00 EST

The people want an empire, apparently, with that unassuming little black VW bug at the head of it.

The U.K.’s Guardian explains, "Volkswagen-Porsche has overtaken Toyota to become the world's largest car manufacturer as the German group benefits from state-backed stimulus packages around the globe." VW has "produced 4.4 million vehicles so far this year, outstripping its Japanese rival which has seen four million cars roll off production lines since January."

Ironically, VW reached the milestone in part by taking over Porsche – which it was forced to do after Porsche failed in an attempt to take over VW earlier this year.

"Of course," Autoblog notes, there is "some number play involved" in the Guardian’s numbers. "We're talking about the combined entity VW-Porsche, which has built 4.4 million cars to date, which is roughly 400,000 beyond Toyota's mark. However, Toyota halved its production earlier this year and shut down all its plants in February." VW also "benefited much more than Toyota from the European cash-for-clunkers programs," though Toyota saw more sales than VW spurred by the U.S. version of the car-swap program.

The news doesn’t just push Toyota down a notch. Jalopnik notes that VW has "passed Toyota and GM at the top of the heap." America’s largest automaker – the world’s largest just three years ago – now sits in third globally.

The change may not be permanent. The Guardian notes that Toyota "has the capacity to make 10 million vehicles a year but it expects to make seven million vehicles in 2009" as production picks back up. VW, however, may see its production increase long-term enough to stay ahead, or at least to take the title again even if it loses it later this year.

After all, Autoblog notes, "VW's also got the edge on Toyota" in the huge Chinese market, "where it has spent years introducing models."

6 Car Buying Mistakes You Might Have Made: by Katrina Ramser

blog@www.theconsumerlawgroup.com (News Author)11222 — Tue, 10 Nov 2009 08:00:00 EST

A vehicle owner is likely to find less than two issues with their new car in the first three months of ownership, states a J.D. Power sales satisfaction study. Small things surface, such as the climate control knob not feeling just right or the stitching on the leather seats appearing cheap. But is something more serious gnawing at your investment?

Hopefully it's not the transmission, but more or less uncommon buying mistakes. No one likes to be pointed out the auto you so proudly acquired through hours of careful research and tough negotiations could actually be taking you for a long and tiring ride. If we don't learn from our mistakes we're destined to repeat – and pay huge monthly sums year in and year out for them – so here's 6 big ones.

Mistake # 1: Didn't hold your cards long or close enough

You traded your old car in before you settled on a final price for the new one. When the salesman asked what you wanted to pay each month, you named a figure. You didn't wait to purchase at the end of the year when dealers need to sell cars the most to make not just monthly and quarterly but annual goals. If any of the above sounds familiar, you took a few dings.

Mistake #2: Paid extra for too many new standards

There was a day when power windows came at an extra cost, but this oh-so-standard feature is a given – as are many other flashy new standards many carmakers are sticking the cost to you. Great buys honoring new standards as part of the overall vehicle package include an economic buy like the Subaru Impreza WRX, where the GPS navigation system, leather steering wheel and heated mirrors are built in the price; or an upscale Acura TSX offering a healthy size of features at one affordable price. Your knowledge of new standards could have been a negotiating chip.

Mistake #3: Bought way too small (or big) for your lifestyle

To slim down your transportation budget, you went with micro-wheels. But you failed to calculate long destination drives in small cars stink and now airplane rides add astronomical carbon emissions and costs. Breakthroughs on the mid-size SUV front include the Toyota Highlander Hybrid garnering an average of 24-mpg and a huge cut in greenhouse gases. Solo commuters stuck in traffic with half-ton, big-engine vehicles are also feeling their own private regrets.

Mistake #4: Erred on calculating unexpected costs of ownership

You did your homework and narrowed in insurance, gas and maintenance costs on top of your monthly car payment before you signed. But did you figure you'd tire of washing your big truck and need bi-monthly professional washes at $50 a pop, expensive accessories like roof racks or a Yakima, or gas prices would get goofy? The only way to accurately trace what your personal total monthly car budget looks like is to track receipts and tally up on a spreadsheet – unfortunately you’re now the defining experiment.

Mistake #5: Deal was short on cash, but long on an assortment of payments

Car loans are a necessity, but not payments blown into 72-month long oblivion. You'll pay thousands on interest no matter the rate. Always shoot for a three to four-year loan. Signing up for an extended warranty has proven itself to be a colossal a waste of dollars. Also, making a 20 percent down payment on big purchases is how society used to deal with these financial issues 30 years ago – its time for cash to make a comeback.

Mistake #6: Had your heart set on just this one car

To reach objectivity or simply a state of blasé, you've got to test cars like an auto journalist. That means inspecting dozens of cars, inside and out, for what attracts you and what doesn't. I've loved the looks of many rides only to change my opinion once seated inside them; I've also detested first appearances only to be sold after a week long driving affair. There might be brands more reliable as a whole than others, but lesser-than-thou makers do come out with some outstanding cars.

Don't feel like a chump if any of the above mistakes made contact with your ego and pocketbook. Fortunately, there are a lot of moves you can make today to ease the financial and emotional burden these 6 unforeseen mistakes caused.

The 5 Best Low-Cost, High-Mileage Cars: By Ron Amadon

blog@www.theconsumerlawgroup.com (News Author)10912 — Wed, 21 Oct 2009 08:00:00 EST

This article is part of a series related to being Financially Fit

Readers ask 'what would you buy' and I tell them

In the blogs, in reader email and on the street I hear it all the time. And the question goes something like this. "What car would you buy that is well made, gets good gas mileage, and doesn't cost much?"

There are many well–made small compact cars on the market right now, and there are more to come. Some will get the best mileage possible because they are all electric and do not use any gas. Yet there is still that big question of range.

So bloggers, warm up your keyboards! Here are my top five picks based on cars tested in the current calendar year.

1. Volkswagen Jetta Diesel
The Volks and the Prius were separated by less then the depth of snow the last time the white stuff fell on Phoenix. In the end, it was the Jetta's fun–to–drive factor that moved it to the top spot. The handling is good, the performance is spot on (as the Brits would say), and virtually no one riding with you will ever know it is a diesel –– the new generation is that good. The test car, with just one option, bottom–lined at $23,169. The diesel Jetta is EPA rated at 30 to 41 miles per gallon. I got 32.2 in city, country and interstate travel while not babying the throttle. Many Jetta owners have told me they routinely get over 40 mpg on a trip. Europeans love their diesels and the Jetta is one very good reason why.

2. Toyota Prius
Updated substantially for 2010, especially on the inside, this granddad of the hybrids is a winner. Quiet out on the interstates and nimble around town, the Prius has rung up an enviable durability record over the years. The new one carries an EPA rating of 48 mpg on the highway, and 51 around town. I loved the interior styling with the beautiful, swooping integration of the center console with the dash. A Prius plug–in hybrid made its debut at the Frankfurt auto show. With five levels of trim available, the Prius starts at $21,000.

3. Ford Escape Hybrid
I just love the size of this vehicle, especially when there is a long list of things to do around town. Another advantage is that the Escape's interior is always a cheery place to settle into. The EPA rates the Hybrid with front–wheel drive at 31 miles per gallon on the highway, and 34 around town. The base price is $20,515 but load up on options and it is easy to crack $30,000.

4. Kia Soul
From downtown Washington to the Maryland suburbs, the fun little Soul turned heads with its styling. It is EPA rated at 24/30 mpg with a starting price of just under $14,000. The Soul was named a top safety pick by the Insurance Institute for Highway Safety and a 10–year, 100,000–mile warranty should not be overlooked. Plus, you can put a surprising amount of stuff out back with the seats down.

5. Honda Insight
With a sporty flair lacking in many gas sippers, the Insight is EPA rated at 40 mpg in the city and 43 on the highway. The test car was a top–of–the–line EX with a navigation system and sold for $23,770. A base model starts at $19,800. This new hybrid carries Honda's promise of long life and economical operation. If that price is too high, the Honda Fit, at a starting price of $14,900, is a good way to go.

Hub Caps

The fun continues in October when a 2010 Mustang GT heads this way. I will have a full road test on the site as soon as possible.
For 2010, Chrysler will put the owner's manual and all the other stuff that fills up the glove box on a DVD.
It was sad to hear of the financial troubles of Chrysler's Jim Press. He is one of the truly nice guys in the auto industry.
J.D. Power thinks September auto sales will be very low, now that "cash for clunkers" is gone. It sees September sales at a yearly rate of just 7.5 million, the lowest selling rate of the year.
Yet, Ford's CEO Alan Mulally thinks auto sales will increase here in the U.S. over the next two years. And GM will step up production of three hot sellers, including the new Camaro.
I love the new Ferrari 458 Italia. Sleek styling, 562 horsepower, zero to 60 in under 3.4 seconds, and did I say it was gorgeous? The price? Well if you have to ask...

Vehicles tested in this column are on loan from the auto companies through local distributors.

Ron Amadon is an auto writer and morning news anchor on the MarketWatch Radio Network, based in Washington.

Toyota to recall 3.8M vehicles over floor mats: By By Ken Thomas, Associated Press Writer

blog@www.theconsumerlawgroup.com (News Author)10736 — Wed, 07 Oct 2009 08:00:00 EST

WASHINGTON (AP) -- Toyota Motor Corp. said Tuesday it will recall 3.8 million vehicles in the United States, the company's largest-ever U.S. recall, to address problems with a removable floor mat that could cause accelerators to get stuck and lead to a crash.

The recall will involve popular models such as the Toyota Camry, the top-selling passenger car in America, and the Toyota Prius, the best-selling gas-electric hybrid.

Toyota said it was still working with officials with the National Highway Traffic Safety Administration to find a remedy to fix the problem and said owners could be notified about the recall as early as next week. Toyota spokesman Irv Miller said until the company finds a fix, owners should take out the removable floor mat on the driver's side and not replace it.

"A stuck open accelerator pedal may result in very high vehicle speeds and make it difficult to stop a vehicle, which could cause a crash, serious injury or death," Miller said.

NHTSA said it had received reports of 102 incidents in which the accelerator may have become stuck on the Toyota vehicles involved. It was unclear how many led to crashes but the inquiry was prompted by a highspeed crash in August in California of a Lexus barreling out of control. As the vehicle hit speeds exceeding 120 mph, family members made a frantic 911 call and said the accelerator was stuck and they couldn't stop the vehicle.

"This is an urgent matter," Transportation Secretary Ray LaHood said in a statement. "For everyone's sake, we strongly urge owners of these vehicles to remove mats or other obstacles that could lead to unintended acceleration."

The recall will affect 2007-2010 model year Toyota Camry, 2005-2010 Toyota Avalon, 2004-2009 Toyota Prius, 2005-2010 Tacoma, 2007-2010 Toyota Tundra, 2007-2010 Lexus ES350 and 2006-2010 Lexus IS250 and IS350.

Toyota's previously largest U.S. recall was about 900,000 vehicles in 2005 to fix a steering issue. The company declined to say how many complaints it had received about the accelerator issue.

The Japanese automaker warned owners that if they think their vehicle is accelerating out of control, they should check to see whether their floor mat is under the pedal. If a driver can't remove the floor mat, Toyota advises drivers to step on the brake pedal with both feet until the vehicle slows and then try to put it into neutral and switch the ignition to accessory power.

For vehicles with engine start/stop buttons, Toyota said the engine can be shut off by holding the button down for three seconds.

In the August incident near San Diego, the fiery crash of a 2009 Lexus ES 350 killed California Highway Patrol Officer Mark Saylor, 45, and three members of his family on State Route 125 in Santee. The runaway car was traveling at more than 120 mph when it hit a sport utility vehicle, launched off an embankment, rolled several times and burst into flames. One of the family members called police about a minute before the crash to report the vehicle had no brakes and the accelerator was stuck. The call ended with someone telling people in the car to hold on and pray, followed by a woman's scream.

NHTSA investigators determined that a rubber all-weather floor mat found in the wreckage was slightly longer than the mat that belonged in the vehicle, something that could have snared or covered the accelerator pedal.

Toyota spokesman John Hanson said the final report had not yet been submitted in the California case.

"We don't know what the actual cause was of that accident other than preliminary reports that have been published so it's impossible for us to comment on that particular incident," Hanson said.

In mid-September, Toyota ordered 1,400 Toyota and Lexus dealers nationwide to ensure that each new, used and loaner vehicles had the proper floor mats and that the mats were properly secured.

In September 2007, Toyota recalled an accessory all-weather floor mat sold for use in some 2007 and 2008 model year Lexus ES 350 and Toyota Camry vehicles because of similar problems.

For more information, consumers can contact the National Highway Traffic Safety Administration's hotline at (888) 327-4236, Toyota at (800) 331-4331 or Lexus at (800) 255-3987.

Toyota Motor Corp.: http://www.toyota.com

Lexus: http://www.lexus.com.

Car Safety Recalls: What You Need to Know: By Lauren DeAngelis

blog@www.theconsumerlawgroup.com (News Author)10447 — Tue, 22 Sep 2009 08:00:00 EST

If you own a car, you've probably received a safety recall notice in the mail at some point. Manufacturers are required to attempt to notify owners of recalled products and to provide a free remedy. You may be inclined to ignore a recall notification letter - especially if it contains confusing jargon or seems like it concerns something minor.

But here's a newsflash: In the realm of safety recalls, nothing is minor. According to Rae Tyson, spokesman for the National Highway Traffic Safety Administration (NHTSA), the federal agency that issues automotive recalls, every recall has a serious safety implication. "A defect exists that is a safety issue and it needs to be corrected," Tyson says. "There are some worse than others, yes, but in some way they all have potential to lead to injury or death."

A Cautionary Tale

In 1996, Ford issued a recall on the cruise control switch in models throughout its line-up The recall affected about 16 million vehicles and became one of the largest vehicle safety recalls on record. Though Ford sent out notification letters, relatively few people actually took their cars in to be fixed right away. NHTSA's Tyson speculates that owners probably read that the recall affected the cruise control and assumed it wasn't a big deal because their cruise control was working just fine.

But a little more attention to detail would reveal that the recall was quite serious. "The problem was manifesting itself after the vehicle was shut off and parked," Tyson explains. "The defect caused the vehicle to catch fire." As a result, some owners' cars caught fire in their garages in the middle of the night and subsequently led to their houses catching fire.

Today, attorneys are still advertising for potential clients who where injured or lost personal property due to the fires. According to the law firm Lieff Cabraser Heimann & Bernstein LLP, "NHTSA has reported receiving 1,472 complaints connected to the defect, including 65 fires."

The moral of the story is clear: There are no small or insignificant safety recalls. "What seems to be really innocent and innocuous can turn out to be a real tragedy," Tyson says. "And that's why people need to respond to a recall notice and take their car in to get fixed right away."

Recall Apathy

In fact, according to Tyson, recall completion rates show car owners are quite apathetic when it comes to responding to recalls. In some cases, the rates of completing the recall repairs are only 20 to 40 percent.

The only outstanding success (completion-wise) was the Firestone tire recall of 2001, which became one of the most tragic recall-related events. In that case, a design flaw causing tread separations in specific Firestone tires led to more than 174 deaths and 700 injuries. The tragedy of the situation led to so much publicity that drivers couldn't ignore the recall and most of them took their tires in to be replaced.

Recall Trends

So, how can you avoid a safety recall? The answer is simple: You can't. There's really no rhyme or reason to vehicle recalls. Since millions of cars are built each year, something, no matter how minor or major, will probably go wrong at some point.

In 2008, NHTSA logged 684 vehicle recalls affecting more than 10 million vehicles. That number is the highest on record, although the number has hovered around that point for several years. In 2007, 587 recalls were filed (by contrast, only 58 vehicle recalls were filed when record-keeping began in 1966). The number of vehicles affected for each recall also varies. Some recalls only involve a few hundred cars, while others, like the Ford cruise control switch, may involve millions.

There's no trend regarding manufacturers or models, either. Naturally, the larger manufacturers report the most recalls, since they make more vehicles than smaller manufacturers. In 2008, Ford Motor Company reported 11 recalls affecting 1,604,819 vehicles. By contrast, Hyundai Motor Company, a much smaller automaker, reported three recalls affecting 293,910 vehicles.

Note that recalls have nothing to do with quality. Manufacturers with good quality ratings are affected by recalls just as often as those with poor quality ratings. Even expensive exotics have safety recalls. Bentley Motors LTD reported three recalls affecting more than 13,000 vehicles in 2008, while Ferrari North America Inc. reported one recall affecting 366 vehicles.

If A Recall Happens to You

You've received a recall notification in the mail. Now what? First, make sure to read the letter carefully. According to NHTSA, each letter must contain the following: A description of the defect; a note about the risk or hazard posed, including warning signs; a description of the free repair, including when it's available and how long it will take; and a description of what you can do if you're unable to have the problem corrected within a reasonable time and without charge.

Your next step is to take the car in to be repaired, following the instructions in the letter, as soon as possible. If you're confused or need more information, you can always call NHTSA toll-free at (888)DASH-2-DOT (1-888-327-4236).

Better yet, don't even wait until you get a letter in the mail -- where it could get lost or mistaken for junk mail. You can routinely check to see if there are recalls on your car using NHTSA's online Recall Search, which allows you to search by year, make and model.

Win at the Credit Scoring Game: by Carla Fried provided by CNNMoney.com

blog@www.theconsumerlawgroup.com (News Author)10195 — Mon, 31 Aug 2009 08:00:00 EST

To get the best deal on a loan, you need some new strategies to bump up your score - and keep it there.

Borrowing money today requires impressing an increasingly hard-to-please crowd. With creditors of all kinds more cautious than ever, you need an A+ application to land the best terms -- and that means an A+ credit score, the number lenders use to judge your risk of default.

The most commonly used credit scoring system, called FICO, rates people from a very risky 300 to a pristine 850. And right now we're in the middle of a credit score crunch: "You need a 750 or better today to have the same treatment you got with a 700 two years ago," says John Ulzheimer, president of consumer education at Credit.com.

John D'Onofrio, CEO of Autoloandaily.com, seconds that: "Two years ago a 680 was enough to get a great car loan rate. Today it's often the minimum to qualify at all."

Think you're still in the clear? Don't be so sure. Lenders have been making changes that could cause your score to slip from excellent to average. Improve and protect your number with these strategies:

Learn Your Score. You have three FICO scores, based on your credit reports at the three credit bureaus: Experian, Equifax, and TransUnion. The numbers tend to be in the same ballpark, so pony up $16 to get one representative score at myfico.com. You can get an estimate free at Creditkarma.com. But the FICO score gives you a better sense of what lenders see.

Scout for Mistakes. Your scores are only as good as the information they're based on. And a third of people who've pulled their reports have found errors, according to a Zogby poll. That's good reason to read your report.

When you buy your FICO score, you'll get a copy of the report it was based on. Get gratis histories from the other bureaus via annualcreditreport.com (you're entitled to one free from each bureau every 12 months).

Spot an error? Request a correction, following the instructions on the bureau's website. Let's say the size of a credit line was misstated or an account was mistakenly marked delinquent. Getting the error fixed could raise your score as much as 200 points, says Ulzheimer, who has also worked for Equifax and FICO.

Never, Ever Be Late. As you'll see in the pie chart on the right, the biggest chunk of your credit score comes from your payment history. Just one late payment can shave 100 points off a 750-plus credit score, says Ulzheimer. Lenders can't tattle on you to the bureaus until you're 30 days past due, adds credit expert Gerri Detweiler. But don't risk it. For all your bills, enter recurring due-date reminders on your computer calendar.

Missed a payment? Get back on track within the next 30 days, and you should "get back the lion's share" of points lost, Ulzheimer says. More than 90 days late? The damage can stick for years. If it was a one-off lapse, call your issuer and plea for a good-will adjustment to your credit report. (It's a long shot.)

Remember the Magic 20%. The second-biggest factor in your score is how much you owe vs. how much credit has been extended to you. The part of this that's easiest to finesse is your credit card utilization rate, or your total card balances compared with your total credit limits, as well as each card's balance relative to its limit.

Example: If you've charged $5,000 on cards and have $50,000 in credit, your rate is 10%. For the best score today, 10% is ideal, but you can probably creep up to 20% and keep a high rating.

Unfortunately, with banks lowering credit limits and canceling unused cards, it's harder to maintain such a low percentage. In the previous example, if your available credit is cut to $20,000, your rate shoots to 25%. That could sink your score by as much as 50 points, says Ulzheimer. The lesson: Know your limits, watch for changes, and stay under 20% on each card and in total (0% if you'll be applying for a loan soon).

Already above 20%? Paying down debt is the obvious way to lower your utilization rate, but another strategy is to apply for an additional credit card to increase your overall credit limit. That may cause you to lose a few points in the short term -- so don't do it if you're about to apply for a mortgage -- but it should pay off in the long run.

Keep Oldest Cards in Play. As noted, credit issuers these days are eagerly canceling cards that are not in use. Besides reducing your limit and increasing your utilization ratio, having an account closed can hurt you in another way, especially if it's among your older ones.

See, 15% of your score rides on the length of your credit history. The longer you ably manage revolving debt, the better you look. So don't cancel your oldest cards. And don't let them get canceled on you: Move a recurring charge to each so they stay active.

Already ditched or been ditched? A new card (see previous) can help with your utilization rate, but there's little you can do to help the "history" component of your score, except to keep other old accounts in use.

Accept Fate on the Rest. There are other factors involved in your score, but they're not so easy to manipulate. For example, 10% is based on how well you manage a mix of credit types, such as mortgages, car loans, and credit cards. But you don't want to go out and, say, finance a car just for a score boost; besides, you can easily get 750-plus with just a few well-tended credit cards.

Along the same lines, 10% is based on "new credit," but the effects of a new application can be positive or negative, depending on your history.

In other words, if you want to be among the crème de la credit crème, accept what you can't change, and focus on what you can.

How to Avoid the 'Cash for Clunkers' Snarl: By Rick Newman from U.S. News

blog@www.theconsumerlawgroup.com (News Author)10025 — Thu, 20 Aug 2009 08:00:00 EST

By Rick Newman Rick Newman – Wed Aug 19, 12:19 pm ET

When car dealers start doing business with the federal government, whaddya expect? Perfect harmony?

Of course not. Several weeks into the "cash for clunkers" program it turns out that delivering a couple of billion dollars worth of rebates to hundreds of thousands of car buyers can generate a few flat tires. The Department of Transportation's latest update on the Car Allowance Rebate System shows that the government has received applications for about 412,000 rebates totaling $1.7 billion. But so far, the feds have approved only a fraction of those, leaving dealers furious.

[See which carmakers have been hurt most and helped most by the recession.]

The Transportation Department won't say exactly what the rejection rate is, but in an Automotive News survey, some dealers said up to 80 percent of their rebate applications had been rejected. Some dealers are waiting for payments totaling as much as $200,000, the survey found. About 13 percent of dealers said they've suspended clunker deals because of red tape and concern about getting paid by the government.

Prediction: They'll be back. Buyers, meanwhile, should make sure the dealer isn't putting the burden of obtaining a rebate on them. And those still looking for a clunker deal should be able to find plenty of dealers continuing to play along.

It's obvious that the National Highway Transportation Safety Administration, the agency administering CARS, has been overwhelmed by the popularity of a program that has surprised just about everybody, including the masterminds in Congress who had to triple the funding a week after clunkers kicked in. NHTSA initially detailed 225 people to processing those 400,000 claims; it's in the process of assigning 1,000 more to the program to help speed up the rebates.

To put this in context, there are only about 635 full-time workers at the entire agency, and their principal job is to set safety standards, perform crash tests, conduct research, and regulate the automakers. So NHTSA is swelling to nearly twice its regular size--by borrowing workers from other agencies--to manage a program that will come and go within six weeks. I guess they'll get back to worrying about safety after Labor Day, when CARS expires.

[See 5 downsides to the cash for clunkers program.]

NHTSA also has to make sure nobody's claiming that a rusty tricycle constitutes a clunker worth $4,500 toward a new ride. Don't get me wrong, I'm not suggesting that anybody would ever attempt to take advantage of wanton congressional spending and defraud the U.S. government. But do we trust car dealers and their customers enough to go by the honor system? Many of the rejected clunker claims are being sent back to dealers because of paperwork snafus like unsigned sales agreements, mismatched serial numbers, and forms that fail to include the make, model, and year of the clunker being traded in. Hmmmm. Those are all harmless mistakes, no doubt. But if people at NHTSA weren't eyeballing every application, chances are that there would be a newspaper headline somewhere declaring "Man Gets Clunker Rebate for Matchbox Car." It still might happen.

Dealer groups have been meeting with NHTSA to straighten out the foul-ups and make sure their own members are following procedures and playing by the rules. Odds are this will all get sorted out soon, the pace of rebates will pick up, and dissident dealers will quiet down and rejoin the program.

Meanwhile, delayed rebates have caused tension between some dealers and their customers. Just like money to ruin a beautiful relationship.

[See 8 industries that will sit out a recovery.]

The government has gotten complaints about a few dealers who seem to be putting their customers on the hook in case there's a problem with the CARS rebate coming through. Now, in a negotiated deal it's always a good idea to put the financial risk on the other guy. Except that in the CARS program, dealers aren't allowed to do that. Banned practices include forcing the buyer to leave a deposit for the amount of the clunker rebate, in case the government doesn't cough it up, and forcing the buyer to sign an agreement to pay the dealer the rebate amount if the government rejects the application. In general, the burden is on the dealer, not the car buyer, to dicker with the feds and make sure the paperwork is correct (unless you lie on the application, which could invalidate the whole deal). Consumers can see the complete list of rules at Cars.gov (look under the FAQ), and buyers can report suspicious dealer activity to the government by calling 866-CAR-7891.

The popularity of the program has also caught manufacturers by surprise, one reason they've run short of some vehicles that clunker traders want to buy. Some dealers have sold out of models like the Jeep Patriot and the Ford Focus, for instance. Buyers were left wondering whether they can still get a clunker deal when the next shipment arrives or should pick another vehicle. So the government has tweaked the rules to include new cars that aren't on dealer lots but are in the production pipeline. As long as the dealer can identify an actual vehicle and its vehicle identification number, or VIN, the clunker deal can go through, even if the car is delivered after the program expires. Buyers need to make sure the VIN of the car they ultimately take home is the same as the VIN on the original sales agreement and watch out for any other kind of bait-and-switch.

[See why GM is ready to rebound.]

If the nearest dealer has bailed out of the program, look for another. Despite the problems, there are plenty of reasons for dealers to stay involved with CARS until it expires. With the government subsidizing the cost of so many new cars, the program is obviously boosting sales. But it's also drawing other shoppers who end up buying a car even though they don't qualify for a clunker deal, and it's generating business in dealers' service departments as well. And with many buyers who qualified for a clunker deal already enjoying their new ride, the frenzy is starting to subside. That should give the government time to catch up and placate the dealers. A little haggling is just part of the process.

America's Most Overpriced Cars: By Hannah Elliott

blog@www.theconsumerlawgroup.com (News Author)9410 — Mon, 13 Jul 2009 08:00:00 EST

These days, car buyers have the upper hand when they walk into the showroom. They have access to dealer invoice prices and day supply data on the Internet--not to mention a recession that has spurred lowest-ever financing deals and unprecedented cash-back incentives.

But that doesn't mean every vehicle is a bargain; plenty are still overpriced. Right now, according to Vincentric, a firm that tracks vehicle ownership costs for the auto industry, several cars on sale now have market values far below their manufacturer's suggested retail price.

The Jeep Liberty, for example, has a true market value 20.9% lower than its MSRP; the Dodge Ram 2500 is worth 26% less; and the Chevrolet Trailblazer is worth 16.4% less than its MSRP.

Those three models, in particular, tell the story of the most overpriced autos currently on the market: Our entire list is comprised of vehicles manufactured by Detroit's Big Three. No foreign brands make the list, as those automakers' cars tend to be priced fairly when considering supply and demand as well as their high rankings on consumer-satisfaction surveys.

Behind the Numbers:

To find America's most overpriced vehicles, we first looked at market price figures supplied by Vincentric. These are updated each month to reflect marketplace inventory, demand, rebates and incentives, and to represent the price that a buyer typically pays. We ruled out any vehicles where the gap between market price and MSRP was less than 10%--a natural breaking point in the data that left a list of about 150 overpriced vehicles to pare down.

We then used two pieces of customer-satisfaction information to better determine whether certain vehicles meet the expectations their brands promise--essentially, whether they justify their sticker price.

We used J.D. Power's 2008 Automotive Performance, Execution and Layout (APEAL) survey results, and ruled out vehicles that won their segments or scored better than two-and-a-half stars out of five: Any vehicle that scores less than 50% is likely not delivering on the thousands a consumer must shell out to buy it.

The list was further shortened by Consumer Reports' Owner Satisfaction results, data from a survey that asks owners--considering a wide range of factors, including price--whether they would buy a particular car again. Vehicles that scored less than 50 (on a scale of 100) made our list. We then ranked the remaining 15 vehicles by the amount overpriced (the difference between market price and MSRP).

The three most overpriced cars are the Dodge Ram pickup (worth 26% less than its MSRP), Mercury Grand Marquis (worth 21.4% less) and Jeep Liberty (worth 20.9% less).

Close the Gap:

When it comes to the price of a car, the most important factor to consider is market value vs. MSRP, says Dave Freed, a managing partner for Vincentric. Even big cash rebates or 0% financing won't ensure you're getting the best deal on the lot, he says, and Vincentric's true-value information should give you a sense of how tough a negotiator you can be.

After that, research the top factors that cause a price to balloon out of proportion: availability, depreciation and gas prices. These points, in particular, are why American-made models comprise our entire list. Fleet sales and overproduction by GM and Chrysler has led to a dilution of resale value--and to dealers' lots overflowing with identical models. The Dodge Nitro is one of the worst offenders of this, according to Ward's, an automotive data and analysis firm.

Some cars tend to be overpriced partly because of their weakened brand image, which can lead to poor resale value. Vehicles that have this problem include the $17,430 GMC Canyon pickup truck, which has a resale value of 11.9% less than its MSRP; as well as GMC Envoy, with a resale value of 16.1% less than its MSRP.

"Where you might pay a higher price for a Honda Civic, you get it back at the end because it has a high resale value," says David Zoia, the editorial director for Ward's.

Lack of Luxury:

While luxury vehicles cost thousands more than their non-luxury counterparts, none made our list. They all invariably receive extremely high satisfaction rates and APEAL scores. A Mercedes-Benz CL550 may cost a lot ($107,900 to be exact), and the E-Class costs a more reasonable $48,000, but the people who drive these cars think they're worth the price. It doesn't hurt that Mercedes keeps a tight rein on production levels too--you won't see a CL550 at your local Enterprise office anytime soon.

The $29,270 Mercury Grand Marquis sedan, however, is one to watch. Its market value is 21.4% lower than its MSRP, and it received low APEAL (2) and satisfaction (43) scores as well. So someone with her heart set on this vehicle shouldn't--in theory--pay more than roughly $23,000.

The Grand Marquis is the victim of a general move in the market away from larger, heavier sedans, says James Clark, general manager of Automotive Lease Guide, a California company that compiles automotive residual values. Those cars get worse gas mileage and cost more to insure, meaning they cost more to own in the long run. Similarly, U.S. consumers' move away from trucks and SUVs--also prominent on our list--has driven down those vehicles' true market values as well.

"It's a shift that we've experienced this past year due to the high gas prices we had last summer," says Clark. "With trucks and SUVs, a lot of those are showing up at the top of the list in terms of the highest cost to own."

America's Five Most Overpriced Cars:

1. Dodge Ram 2500

2. Mercury Grand Marquis

3. Jeep Liberty

4. Dodge Nitro

Final Frontier: Below Dealer Cost: by Jonathan Welsh

blog@www.theconsumerlawgroup.com (News Author)9081 — Mon, 22 Jun 2009 08:00:00 EST

provided by

Plunging auto sales are making this one of the worst times ever to sell cars. But if you're one of the relatively rare consumers shopping for a new vehicle, you're already in the driver's seat.

7 Ways to Be a Dolt About Credit: By Sheyna Steiner

blog@www.theconsumerlawgroup.com (News Author)8935 — Mon, 08 Jun 2009 08:00:00 EST

Debt: The next big American crisis? By Chris Hansen, Correspondent Dateline NBC

blog@www.theconsumerlawgroup.com (News Author)8109 — Thu, 09 Apr 2009 08:00:00 EST

6 Used-Car Traps and How to Avoid Them: By Jada A. Graves

blog@www.theconsumerlawgroup.com (News Author)7881 — Wed, 25 Mar 2009 08:00:00 EST

For some used car shoppers it can be hard to be sure you got the best price, and only time will tell whether the car is dependable.

Although most used car sales go off without a hitch, sometimes there's miscommunication or purposeful deception that can sour the experience. However, you can prepare yourself for some of the common pitfalls used-car shoppers face when closing the deal. Keep these pointers in mind as you shop.

Better Business Bureau starts rating businesses with letter grades: By Eileen Ambrose -- Personal Finance

blog@www.theconsumerlawgroup.com (News Author)7718 — Thu, 12 Mar 2009 08:00:00 EST

Recently, the Better Business Bureau scuttled its system of rating businesses and replaced it with letter grades.

Instead of a "satisfactory" or "unsatisfactory" rating, the BBB now issues grades F to A+. The BBB says using letters makes ratings easier to understand.

But the change has sparked controversy across the country.

Virginia Lawyers Weekly, January 26, 2009 - Lemon Law Verdict

blog@www.theconsumerlawgroup.com (News Author)7232 — Mon, 02 Feb 2009 08:00:00 EST

Richmond, Va., September 5, 2008 - A Henrico County Circuit Court jury issued a verdict that Chrysler L.L.C., violated Virginia’s Lemon Law. The fees were paid on December 17, 2008.

An article about the verdict appeared in Virginia Lawyers Weekly on January 26, 2009. Read our article here.

Chrysler Violates Lemon Law, Has To Repurchase the Vehicle And Pays Over $70,000 in Legal Fees

blog@www.theconsumerlawgroup.com (News Author)6786 — Tue, 23 Dec 2008 08:00:00 EST

Chrysler Violates Lemon Law, Has To Repurchase the Vehicle And Pays Over $70,000 in Legal Fees

Richmond, Va., September 5, 2008 - A Henrico County Circuit Court jury issued a verdict that Chrysler L.L.C., violated Virginia’s Lemon Law. The Plaintiff’s 2006 Jeep Commander had a bad odor from the a/c and heating vents causing the plaintiff serious nosebleeds and exacerbation of her allergies. The Plaintiff’s husband and several other people that rode in the car also complained of various ailments, such as light headedness, sinus drainage, and upper respiratory problems. Chrysler initially tried to fix the complaint of a "musty smell" or bad odor coming from the vehicle’s dash vents by cleaning it with chemicals, but then, according to the Plaintiffs, the chemical treatment caused such a bad odor, that it resulted in respiratory problems and the Plaintiff refused to drive it. Chrysler and its expert claimed the problem had been corrected and that there was no abnormal odor in the vehicle at any time during its inspections.

After two years of litigation, the Henrico jury found that Chrysler LLC had violated the Virginia Lemon Law and that it had to reimburse the Plaintiffs for all lease payments made to date, in the amount of $11,898.09, plus $2000 for their trade in, plus $1,613.91 for rental charges, plus $2,777.50 for the extra mileage they put on a substitute vehicle, plus payoff Chrysler Financial the remaining balance due on the lease, but that Chrysler was entitled to $986.27 for the mileage put on the Jeep Commander up to the date of the first notice of the problem to the Chrysler. Under the Lemon Law Chrysler was responsible for the Plaintiffs’ reasonable legal and expert fees, which, by agreement was to be heard in a separate, bifurcated hearing in front of trial judge on a later date if they were contested.

Chrysler did not agree that the trial fees of $69,000 were reasonable, and initially offered to pay $45,825.00. The disagreements continued, with fees continuing to increase. Chrysler’s attorney offered his "full authority" of $60,000, Plaintiffs’ countered with a final offer of $65,000, which was rejected. Plaintiffs’ filed their Motion For Expert and Legal Fees, and requested $76,680.00 in legal fees, plus their expert fees of about $4,000.00. Further negotiations continued, with Chrysler eventually agreeing to pay $75,250.00 for the fees and costs within thirty days, in addition to the jury award. These fees were paid on December 17, 2008.

John Cole Gayle, Jr., of The Consumer Law Group, P.C., in Richmond, Va., noted the fees incurred were avoidable since the Plaintiffs had offered to accept another comparable vehicle, an offer Chrysler not only rejected, but in when he asked if Chrysler wanted to settle, Chrysler’s attorney said, "John, that ship sailed long ago", but I will accept a nonsuit." Mr. Gayle estimates that this two year battle over a $30,000 Jeep cost Chrysler between $125,000.00 to $200,000.

CONSUMER WATCH: The downside of voluntary repossession

blog@www.theconsumerlawgroup.com (News Author)2049 — Thu, 24 Jul 2008 08:00:00 EST

IRIS TAYLOR

TIMES-DISPATCH COLUMNIST

Sunday, January 14, 2007

Nedra Peyton of Richmond, a working mother of two small children, purchased a used car in October.

She agreed to make payments every two weeks for three years. She had no experience buying cars. The car came with a 180-day limited warranty.

Within the first month, Peyton said, the car broke down twice and had to be towed to the place she bought it for repair. It also was missing a heating and air-conditioning part and she said the front end was making a rubbing noise.

Each time she took the car back, the repairs were made but she was given a hard time, she said. The second time it was towed, she angrily told them to keep the car and refund her money.

She was told that if she left it, it would be a voluntary repossession and she'd still have to pay the note.

A voluntary repossession means the person voluntarily gave the vehicle back for whatever reason as opposed to it being involuntarily repossessed.

. . .

If this happens to you or someone you love, what should you do?

John C. Gayle Jr. of The Consumer Law Group on Libbie Avenue in Richmond responded.

Gayle cautioned against abandoning a newly purchased car at the dealership. "It doesn't make any sense," he said. For one reason, "it goes on their books as a voluntary repossession." That negatively impacts a person's credit score.

Steve Katz of the credit reporting agency TransUnion in Chicago and Rod Griffin of Experian in Dallas said whether it's a voluntary or involuntary repossession, a person's score will be impacted equally.

A repossession is "very, very bad," Griffin said. Another reason not to abandon the vehicle is the dealer may have misrepresented its condition at the time of sale.

If you've given it back, "How are you going to prove anything?" Gayle said.

Dealers resell repossessed vehicles at auction for whatever they can get, then come after the one it was repossessed from to collect the difference.

If a newly purchased used car turns out to be a clunker, you can sue under Virginia's so-called "Lemon Law" only if you bought it while there was still time left on the original manufacturer's warranty.

You have up to 18 months from the date that the warranty first went into effect to sue, Gayle said.

If you've purchased a used car that turns out to be a heap:

• Read your contract. If it says you purchased the car "as is," you're responsible for repairs and the dealer has no obligation to assist with repairs.

• Stay current on your payments. If you're late, the dealer has the right to take back the vehicle and sell it.

• You may be able to rescind the sale. "You really ought to get an attorney's advice" before doing this, Gayle said.

But, if you can't, stop driving the car and put the dealership on notice, by certified mail, that in 30 days you intend to rescind the sale unless it corrects the problem.

• Read your rights. Go to www.theconsumerlawgroup.com.

If you're planning to, but haven't yet purchased a used vehicle, run its vehicle identification number, or VIN, through Carfax.

It might be free through the dealership or $24.99 at www.carfax.com.

If possible, have it checked out at a body shop and by a mechanic.

What happened with Peyton?

She did not leave her car at the place she bought it. "I believe I have an oil leak" and the check engine light was on but "just went off," she said.

However, "I haven't had any major problems recently"

Peyton said she looked up the car's book value after buying it. "I am stuck with a $20,000 car worth only $7,000 [$13,000 for the car, plus interest]," she said.

Contact staff writer Iris Taylor at itaylor@timesdispatch.com or (804) 649-6349.

Misrepresentation costly for Norfolk dealership

blog@www.theconsumerlawgroup.com (News Author)2706 — Thu, 24 May 2007 08:00:00 EST

Virginia Lawyers Weekly, Volume 21, Number 36, February 12, 2007 Sunshine Hardison told the salesman at Checkered Flag Motor Car Co. in Norfolk that she wanted a one-owner vehicle in her price range that had not been wrecked. The salesman assured her that the 2000 Hyundai Elantra she bought for $6,400 was just what she had asked for. In fact, the car had had several owners. It had been in a major front-end collision, and it had been repossessed. The salesman did not disclose that the car had been repossessed, as Virginia Code §59.1-200 requires. The transaction proved to be very expensive for the dealership. Retired Judge John E. Clarkson arbitrated Hardison's claims of fraud and violations of the Virginia Consumer Protection Act and awarded her a total of $114,400 - $2,500 in actual damages trebled under the VCPA because of what Clarkson found to be the willful and fraudulent misrepresentations of the dealership, $50,000 in punitive damages for fraud, $60,400 in attorneys' fees and costs and $4,700 in arbitration costs, less a $7,500 offset for the duplication of the VCPA willful misconduct and punitive damage awards. John Cole Gayle Jr. Of Richmond, who represented Hardison along with John M. Barrett of Virginia Beach, said the attorneys' fees reflected extended litigation before the arbitration. Hardison won a $10,000 judgment in general district court, which the dealership appealed to circuit court. The sales contract required arbitration of any claims, and the trial court finally decided to enforce the clause after several hearings on the issue. The parties agreed the The McCammon Group would arbitrate the claim, Gayle said. Gayle said the dealership contended that it was unaware of the vehicle's history. That contention was refuted by the company's own records, which showed multiple owners and the repossession, and the testimony of the owner of the car when it was wrecked. She said she had bought it from Checkered Flag and sold it back to the dealership after the wreck.

USED-VEHICLE PURCHASE

blog@www.theconsumerlawgroup.com (News Author)1300 — Thu, 09 Mar 2006 08:00:00 EST

The following article appeared in The Virginian-Pilot on February 23, 2006: Bill is dropped over consumer concerns A bill that opponents called "a wolf in sheep's clothing" has been dropped before it could be considered in the House of Delegates. The legislation, SB153 , required auto dealers to inform potential buyers about the right to request an inspection before purchasing a used vehicle. The legislation also would have given legal protection to a car dealer if the buyer later contended that he or she was not informed of mechanical problems. It was that part of the proposal that drew criticism from a coalition of statewide poverty advocacy groups, consumer protection lobbyists, and Richmond-based used car dealer CarMax. In a press conference Wednesday, John Gayle, the Virginia coordinator for the National Association of Consumer Advocates, said the bill's death was a victory for poor people. At a time when a large number of hurricane-damaged vehicles are appearing on the market, residents need protection from dealers who might pass off salvaged cars as perfectly fine, he said. "Virginia would become a dumping ground for those vehicles," Gayle said. "This bill is terrible for Virginia consumers. The only people it would help is disreputable car dealers." The bill had passed the Senate 31-8, but Sen. Thomas Norment , R-James City, withdrew it from consideration this week after stronger opposition arose. Norment, who is part owner of a car dealership, had said the bill would have given drivers an unprecedented legal right to an inspection. He also had said that buyers were better off knowing a car's defects before the purchase, rather than going to court for damages after buying the vehicle. - Meghan Hoyer

J. Smith v. Casey Chevrolet, Circuit Court of Newport News, Virginia:

blog@www.theconsumerlawgroup.com (News Author)564 — Thu, 21 Jul 2005 08:00:00 EST

Virginia has a statute called the "3% Rule," which permits car dealers to sell vehicles that have been damaged and repaired, without having to disclose the damage and repair, if the retail cost of repair is less than 3% of the vehicle's MSRP (Manufacturer's Suggested Retail Price). In this case, in which Mr. Gayle is co-counsel for the Plaintiff, the Plaintiff bought a new Corvette, which he later discovered had been damaged prior to sale. When the Plaintiff confronted the dealer, Casey, it said the repairs were from "lot" damage, that they were minor, and that it did not have to tell him about them. Casey said the repairs cost less than $1,500, but the Plaintiff's expert said the cost to repair the car properly would be over $5,000.00. The court has ruled that the 3% Rule was not meant to allow car dealers to conceal any type of damage, such as "lot" damage, but only applies to pre-delivery factory damage or in-transit damage. Thus, Casey Chevrolet can not use the 3% Rule as a defense in this case unless the damage was from pre-delivery factory damage or in-transit damage. Car dealers in Virginia, and in other states that have similar rules, have been using this rule to conceal any damage done to new vehicles, whether from accidents in transit or on the lot. As is alleged in this case, sometimes a car dealer will make sure that the repairs it makes are half measures, keeping the cost under 3% of the "MSRP," and then not mentioning anything to the new car buyer.

Charlie Falk Auto Wholesale, Inc. Pays Judgments

blog@www.theconsumerlawgroup.com (News Author)353 — Fri, 08 Apr 2005 08:00:00 EST

Serna Laury v. Charlie Falk Auto Wholesale, Inc.; Stephanie Cruz v. Charlie Falk Auto Wholesale, Inc. In these cases, John Cole Gayle, Jr., of The Consumer Law Group, obtained two judgments against Charlie Falk Auto Wholesale, Inc. ("Falk"), a Virginia used-car dealer. The judgments amounted to approximately $90,000, which included punitive damages for fraud in the sale of automobiles. Falk refused to pay these judgments, claiming lack of funds and that the company was going out of business. The dealership then re-opened under another name. Mr. Gayle then applied to a fund established by the state of Virginia for compensation of our client's compensatory damages and attorney fees. This fund is set up to partially compensate consumers when dealerships go out of business after judgment for fraud. The maximum recovery is $20,000 per case. On the eve of receiving an award from the fund, and after Mr. Gayle advised Falk that he was filing another suit for fraudulently transferring assets during litigation, Falk capitulated and paid a compromise settlement of $81,000 to satisfy these judgments.

CONSUMER WATCH: Looking for options in tough cases

blog@www.theconsumerlawgroup.com (News Author)322 — Tue, 08 Mar 2005 08:00:00 EST

In a recent Richmond Times Dispatch article, Iris Taylor wrote about two arbitration rulings against Charlie Falk's Auto Wholesale that John Cole Gayle, Jr. of The Consumer Law Group, won. Please be sure to read about Case Number 2 in the article.

Fine Print Binds Car Buyers

blog@www.theconsumerlawgroup.com (News Author)306 — Tue, 01 Mar 2005 08:00:00 EST

On February 23, 2005, John Cole Gayle, Jr., of The Consumer Law Group, appeared on ABC World New Tonight. ABC news was covering a story about the binding arbitration clause that many consumers are forced to sign when they purchase a vehicle. The story was called "Reading the Fine Print...The legal rights you may be signing away without knowing it." To view a copy of the story, please go to:

Consumer Watch: Couple gets some relief in warranty case

blog@www.theconsumerlawgroup.com (News Author)228 — Mon, 13 Dec 2004 08:00:00 EST

CONSUMER WATCH: Couple gets some relief in warranty case IRIS TAYLOR RICHMOND TIMES-DISPATCH POINT OF VIEW Sunday, December 12, 2004 In January 2003, I wrote about Jerry and Angie Barnes' extended warranty ordeal with Haynes Jeep Chrysler on West Broad Street. The couple had purchased a used Jeep Grand Cherokee from Haynes and then paid $1,247.45 for a five-year extended warranty. They wound up saddled with about $4,000 worth of repairs on the Jeep, which should have been covered by the warranty, they said. To their surprise, the five-year contract expired in only two years. A five-year contract should last for five years, they said. When they asked that the warranty be reinstated for the remainder of the five years, Haynes balked and refused to reinstate it, or to reimburse them for repairs. The manager said the warranty expired five years from when the car was delivered to the original owner, not - as the Barneses understood it - five years after the vehicle's limited warranty expired. The two sides eventually deadlocked and Haynes stopped returning their calls and mine. So, the Barneses took their case to John Cole Gayle Jr. of The Consumer Law Group PC in Richmond. This week, Angie Barnes confirmed that Haynes Jeep Chrysler settled with them out of court for $8,000. Haynes Jeep Chrysler had no comment for this article. "I guess it's like David beating Goliath," said Angie Barnes. "I feel like we were able to stop Goliath a little bit and get some concessions where normally people would not have gotten any. I've got this feeling of satisfaction." Haynes Jeep also did not get the "gag order" that it sought, she said - another victory, of sorts. A gag order would have kept the details of the settlement private. It was not a full victory, though. "We never got our warranty rein stated and we're stuck with a car that has so many problems," said Barnes. "We can't afford to buy another car. That's why we had to hang on to it. We'd have to put so much into it to get anything on a trade-in. Also, the Barneses had to split the settlement down the middle with the lawyer. "I guess I'm glad we at least got almost $4,000 to go toward what needs to be done," she said. "But, we're still out $4,000" for repairs already paid for. Having gone through the ordeal, Barnes has this advice for consumers: Have a lawyer review the warranty contract. Be sure the warranty begins when you think it begins. Don't buy a warranty until after you've read the contract. The Barneses signed the sales agreement, but said the contract was not mailed to them until about a month later. Gayle, the lawyer, said the Barneses' persistence paid off. "The message is, if you're persistent and make complaints and force merchants such as car dealers to live up to their promises, even if it involves litigation, often you will get some - but, not necessarily all - of what you want in settlement." He advises consumers who may be considering purchasing an extended vehicle warranty to, "as difficult as it is, read the extended warranty's language" and don't simply rely on discussions with the dealer's employees.

Virginia Lemon Law - Motor Vehicle Warranty Enforcement Act

blog@www.theconsumerlawgroup.com (News Author)225 — Fri, 10 Dec 2004 08:00:00 EST

TYPE OF ACTION: Virginia Lemon Law - Motor Vehicle Warranty Enforcement Act Type of Damages: Full refund of money paid towards price of car, costs, attorney fees Name of Case: W. and C. Williams v. Daimler Chrysler Corporation Court: Henrico County Circuit Court Name of Judge: The Honorable Daniel T. Balfour Settlement: Last demand was to take the car and agree to payoff the loan which was approximately $15,000 plus pay attorney fees accumulated to that point (estimated to be about $10 -15K at that point). Chrysler refused, offered the client $5K while keeping the car. Jury Award: $55,028.59 Breakdown: $33,829.76 for payments made to date, payoff of the lien and court costs, $23,250.00 in attorney's fees (a compromised amount agreed upon by the parties), minus $2,051.17 for mileage). Plaintiff returned the vehicle Attorney for Plaintiffs: John Cole Gayle, Jr. Other Useful Information: This vehicle, a 2002 Jeep Liberty, resided in the Tidewater area and was used by Mr. Williams primarily for commuting. Plaintiffs first consulted counsel in March, 2003, when the Jeep had about 50,000 miles on it, but by the time of trial, in June 2004, it had over 90,000 miles. Counsel knew a car with 50,000K miles was a risk, but decided to take the case anyway. Mrs. Williams refused to drive it after it was purchased for her since she alleged the speedometer and odometer would fluctuate wildly on occasion and the air bag light coming on scared her. Both plaintiffs alleged that at times the engine ran rough, there was a banging and clanging in the engine, the engine would stall out, and the engine light would come on, and the air bag light would come on for a while then go out. Some of these problems began with the purchase of the car, and, despite numerous repair attempts both before the warranty expired and afterwards, some of the problems continued to exist up to the present mileage of 90,000 miles. At trial the only problem that Mr. Williams, the primary driver, testified to experiencing was the engine banging and air bag light, however Mrs. Williams claimed the electrical problems continued to exist. Chrysler's expert could find nothing wrong with the vehicle. No expert for plaintiffs testified at the trial. Shortly before trial Chrysler moved for a continuance since its expert could not appear in person, to which counsel for plaintiffs objected, which motion was denied. Prior to trial the court granted DaimlerChryler's motion that any repairs made to the vehicle after the warranty ran out at 36,000 miles would not be admissible at trial, but on motion of plaintiffs' counsel also ruled that, since no repair after warranty expiration at 36K miles was admissible, whatever happened to the vehicle after 36k miles, including the current mileage , was not be relevant and thus was not admissible. The court also ruled that the Lemon Law's remedies are mandatory, and thus the jury's only decision was that of liability. If the jury found the Lemon Law had been violated, then the remedy would be imposed by the court, along with a determination of what the reasonable attorney fees and costs would be. The trial lasted one day, and the jury returned a verdict for the plaintiffs.

Dealership Found Guilty of Fraud, Jury Awards Punitive Damages

blog@www.theconsumerlawgroup.com (News Author)184 — Fri, 12 Nov 2004 08:00:00 EST

Richmond, Va., October 6, 2004. - A Henrico County jury has found a Henrico County car dealership guilty of intentionally misrepresenting a vehicle as never having been in an accident when it knew it had a "Salvage History." The Circuit Court jury on Thursday, October 7, 2004, found that Windsor Auto Sales committed intentional fraud and violated the Virginia Consumer Protection Act when it described the 1996 Ford Bronco to the plaintiff as undamaged even though Windsor Auto had purchased the vehicle with an invoice that stated "Salvage History." Windsor Auto's owner testified that he told the plaintiff that the vehicle had been in an accident. The jury awarded the plaintiff, Faye Teets, $6,000 in damages and awarded $34,000 punitive damages as well, Gayle said. The lawsuit was based on intentional fraud and a violation of the Virginia Consumer Protection Act. "Ms. Teets was unaware that the vehicle had been in an accident. She even thought that car dealers had a duty to disclose whether a car they are selling has been in a wreck. Unfortunately, dealers most of the time do not volunteer this information," Gayle said, "...and the buyer who trusts dealers to disclose damage during negotiations, is living in a dream world." "Many dealers either will not advise of any damage, or will disclose some damage claiming it is minor, and intentionally not check the rest of the car in order to remain 'wilfully blind' about the other damage in the car so they can claim ignorance if the vehicle is returned due to prior wreck damage. When a car has any damage, that is a red flag that there may be some hidden damage lurking in a less than obvious place, and that a detailed inspection is necessary. When a car dealer learns of any damage the reputable ones will inspect the car to see if there is other accident damage, and if they find significant damage, then they should return it to the previous owner," Gayle observed. "This should be a warning to car dealers to stop selling cars unless they have done a thorough inspection, and if they find some damage, either return the car, or be honest to customers and take less of a profit." Gayle commented, "State inspections, nor the new fad, Car Fax reports, are no guarantee that a car has not been significantly damaged. The best way to avoid what happened here is to ask if the car has ever been damaged, and even if the answer is 'No,' demand that a body shop of your choice inspect it; if a dealer refuses to allow this, leave." The two-day case was tried before Circuit Judge Gary A. Hicks.