Righting Your New Car's Wrongs - Maryland Attorney General

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Righting Your New Car's Wrongs - Maryland Attorney General
Righting Your
                                                                                                             Brian E. Frosh
                                                                                                          Attorney General

     New Car’s Wrongs
C o n s u m e r Pr o t e c t i o n D i v i s i o n , M a r y l a n d A t t o r n e y G e n e r a l ’s O f f i c e

             Your Rights Under Maryland’s Lemon Law

   I f your new car spends more time
     in the repair shop than on the
road, you know you have a problem.
                                          tion quickly to receive relief under the
                                          law.
                                          This publication will help you deter-
                                                                                      or replacement vehicle under the
                                                                                      Lemon Law if the car has:
                                                                                      •   A brake or steering failure that
In most cases, the manufacturer’s         mine whether your car is a lemon, tell          was not corrected after the first re-
warranty that comes with your car         you what to do about it, and explain            pair attempt, and that causes the
will provide the coverage you need        how Maryland’s Consumer Protection              vehicle to fail Maryland’s safety
to have your car repaired at no cost      Division can help.                              inspection; or
to you. Your warranty will tell you
what parts and systems of your car        Is It a Lemon?                              •   Any one problem that substan-
are covered and for how long. If you      Maryland’s lemon law applies only to            tially impairs the use and market
need repairs, you must have them          cars, light trucks, and motorcycles that:       value of the vehicle that was not
done by a dealer, although you do not                                                     corrected in four repair attempts;
have to use the same dealer who sold      1. Are registered in Maryland, and
                                                                                          or
you your car.
                                          2. Have been driven less than 18,000
                                                                                      •   Any number of problems that
In some cases, however, the dealer        miles and been owned less than 24
                                                                                          substantially impair the use and
may be unable to fix your car’s prob-     months. (Even if you are not the origi-
                                                                                          market value of the vehicle that
lem. If that is the case, you may have    nal owner, the Lemon Law might apply
                                                                                          have caused it to be out of service
a lemon.                                  to your vehicle if the original owner
                                                                                          for a cumulative total of 30 or
Maryland’s Lemon Law applies to           purchased it less than 24 months ago.)
                                                                                          more days.
new or leased motor vehicles (in-
                                          The law provides that a dealer or manu-
cluding cars, light trucks and mo-                                                    If you suspect your car is a lemon—
                                          facturer must correct a defect within 30
torcycles), registered in Maryland,                                                   for example, if the dealer has tried once
                                          days after the consumer writes to the
that are less than 24 months old and                                                  or twice unsuccessfully to repair the
                                          manufacturer by certified mail. If the
have been driven less than 18,000                                                     problem and you believe the problem
                                          manufacturer or dealer is unable to do
miles. The law provides for consum-                                                   substantially impairs the use and mar-
                                          so, the consumer is entitled to a refund
ers whose cars meet certain criteria to                                               ket value of the vehicle — you should
receive a refund or a replacement ve-                                                    write to the manufacturer imme-
hicle if repair attempts have failed to                                                    diately. You do not need to wait
correct a problem, and the problem                                                            until the dealer has made the
substantially impairs the                                                                       four repair attempts, or until
use and market value                                                                           the car has been out of service
of the vehicle.                                                                               for 30 days.
Not all new cars
with problems
qualify as lemons,
but if yours does,
you must take ac-

Rev. 8/19
What to Do If Your Car Hasn’t Yet Met        What to Do If Your Car Does Meet           What the Manufacturer Must Do
the Definition of a Lemon                    the Definition of a Lemon and              Once It Is Notified About Your Car’s
                                             You Have Not Yet Notified the              Problem
If your car does not yet qualify as a        Manufacturer
lemon, but is still covered by a war-                                                   If your car is a lemon and the manufac-
ranty and is not working properly, you       If your car is a lemon, you are entitled   turer is unable to correct the problem
should take the following steps:             to a replacement vehicle or the manu-      within 30 days of receiving your letter,
                                             facturer must refund the full purchase     the manufacturer must repurchase or
•   Contact your dealer and ask to           price minus an allowance for use, not      replace your vehicle. If you previously
    have the problems repaired under         to exceed 15 percent of the purchase       contacted the manufacturer, you will
    the warranty. If your dealer is not      price.                                     want to send a follow-up letter by certi-
    cooperating or seems to be unable        If you have not yet notified the manu-     fied mail, return receipt requested, outlin-
    to correct the problem, contact an-      facturer and you think your car meets      ing your problem, the steps you have
    other dealer who sells the type of       the definition of a lemon, you should      taken to resolve it and what action you
    car you have purchased. A differ-        immediately notify the manufactur-         want taken. (See sample letter C.)
    ent dealer may be more success-          er by letter, sent certified mail, re-     The manufacturer can replace your
    ful in dealing with your problem.        turn receipt requested. (See sample        vehicle with a comparable one that is ac-
    You should not be charged for this       letter B.) Send a copy of your letter      ceptable to you, or buy it back, whichev-
    work. Keep copies of all receipts        to the Consumer Protection Division        er you prefer. The repurchase price you
    for work done on the vehicle.            along with a completed complaint           are offered should cover the full purchase
                                             form, and keep a copy for your own         price including license fees, registra-
•   Immediately notify the manufac-
                                             files. In your letter, you should:         tion fees and other similar governmental
    turer, in writing, of the problem
    and ask for assistance. Include the      •   List the make, model, year, and        charges. The manufacturer can subtract
    year, make, model and Vehicle                VIN of your vehicle.                   up to 15 percent of the purchase price for
    Identification Number (VIN) of                                                      your use of the vehicle, and a reasonable
    your car and enclose copies of           •   Include the name of the dealer-        allowance for damage not attributed to
    repair orders from the dealer’s at-          ship from which your automobile        normal wear and tear.
    tempts to repair your vehicle. (See          was purchased and the date of          Excise taxes are not refunded by the
    sample letter A.) Send the letter            purchase.                              manufacturer. The Motor Vehicle Admin-
    by certified mail, return receipt                                                   istration will return those to you or apply
                                             •   Describe the problem you are           them against your next vehicle. If you
    requested. Send a copy of your               having.
    letter to the Consumer Protection                                                   have questions about excise taxes, you
    Division with a com-pleted com-                                                     can call the Motor Vehicle Administra-
                                             •   Describe what you have done to
    plaint form, which can be found in                                                  tion’s customer service line at
                                                 address the problem and include
    this publication.                                                                   800-950-1MVA.
                                                 copies of repair orders and dates
                                                                                        If the manufacturer refuses to provide
                                                 of repair attempts.
•   Once the manufacturer receives                                                      you with a replacement vehicle or refund,
    your letter, it has 30 days to fix the        Once the manufacturer receives        or if you need assistance in negotiating
    problem. The manufacturer can            your letter, it has 30 days to fix the     the appropriate refund price or replace-
    authorize the dealer to make the         problem. The manufacturer can autho-       ment vehicle, you may file a complaint
    repair.                                  rize the dealer to make the repair.        with the Consumer Protection Division,
                                                                                        and we will contact the manufacturer to
•   Keep copies of all correspondence                                                   assist you in your negotiations. A special
    with the dealer and manufacturer,                                                   complaint form is included with this
    and keep notes of phone calls,                                                      publication.
    including dates of the calls.
New Vehicle Warranty Complaint Form                                                                              State of Maryland
                                                                                                    Office of the Attorney General
                                                                                                     Consumer Protection Division

Baltimore Office                   Eastern Shore Office             Western Maryland Office          Prince George’s Office
Consumer Protection Division       Consumer Protection Division     Consumer Protection Division     Consumer Protection Division
200 St. Paul Place, 16th Floor     201 Baptist Street, Suite 30     44 N. Potomac St                 9200 Basil Court, Suite 301
Baltimore, Maryland 21202          Salisbury, Maryland 21801        Hagerstown, Maryland 21740       Largo, Maryland 20774
410-528-8662                       410-713-3620                     301-791-4780                     301-386-6200
                               An interactive complaint form is available on our website at
                       www.marylandattorneygeneral.gov/Pages/Complaints/newcarwarrantee.aspx,
                         or you may complete the form below and mail to the office nearest you.

  Last Name                           First Name                      Name of Dealership (where you bought your car)

  Street Address                                                      Street Address

  City, State, Zip                                                    City, State, Zip

  Daytime Phone #                    Evening Phone #                  Phone #

 Email:

   Vehicle:
                Year                     Make (Manufacturer)                                   Model

   Vehicle Identification Number (VIN):                                                     Purchase Date:

   Mileage at Purchase:                                                  Current Mileage:

   Total price you paid for the vehicle: $

   Is Your Vehicle Registered in Maryland?     Yes        No

                                                                  - OVER-
Please describe the problem(s) you have had with your new vehicle using the following chart and attach copies of
all documents that relate to these problems (e.g., invoices, repair orders, etc.) to this form.

                               Problem                                                 Date of Repair        Mileage

Have you notified the Manufacturer of the problems?                         Yes          No
If yes: Please attach a copy of your letter to this form.
         1.   Was the notification sent by certified mail, return receipt requested?          Yes       No
  2.          What, if any, response have you received from the manufacturer?
		            (Please attach any written correspondence)

         ________________________________________________________________________________________________

         ________________________________________________________________________________________________

       Please mail your completed form to the Consumer Protection office nearest you (listed on other side).

Rev. 08/19
Sample Letter A
For notifying manufacturer of on-going problems
(Vehicle has not yet met the definition of a “lemon”)

                                                                    Consumer’s Name
                                                                    Address
                                                                    City, State Zip Code
                                                                    Telephone Number
                                                                    Date

         Manufacturer’s Name
         Address
         City, State Zip Code                                       BY CERTIFIED MAIL

                                                                    RETURN RECEIPT REQUESTED

         Dear Sir or Madam,

         I am writing to notify you of the problems I have been having with my [Year, Make, Model and
         VIN# of car] and to request that you correct this problem within 30 days of your receipt of this
         letter.
         I purchased my car from [Name of Dealership] on [date of purchase.] Approximately [amount of
         time after purchase], I began having trouble with [description of problem]. I took my car back to
         the dealer for repairs on [dates of repair attempts] but, to date, the dealer has been unable to cor-
         rect the problem. Attached are copies of the repair orders that document the dealership’s attempts
         to repair my car.
         This problem substantially impairs both the use and value of my car. Therefore, if you and/or your
         dealer are unable to correct this problem in a “reasonable number of attempts” as that phrase is de-
         fined in Maryland’s Automotive Warranty Enforcement Act (Md. Code Ann., Com. Law, §14-1502
         (d) ), I will expect you to [repurchase or replace] the vehicle pursuant to §14­-1502(c) of the Act.
         Please contact me at the above address or telephone number to arrange a mutually convenient date
         and time for you to inspect my car and make the necessary repairs.

                                                                    Sincerely,

                                                                    [Your Name]

         Enclosures
Sample Letter B
Contacting manufacturer for first time if your vehicle is a “lemon” under the lemon law

                                                                    Consumer’s Name
                                                                    Address
                                                                    City, State Zip Code
                                                                    Telephone Number
                                                                    Date
        Manufacturer’s Name
        Address
        City, State Zip Code
                                                                    BY CERTIFIED MAIL
                                                                    RETURN RECEIPT REQUESTED
        Dear Sir or Madam,
        I am writing to notify you of the problems I have had with my [Year, Make, Model and VIN# of
        car] pursuant to Maryland’s Automotive Warranty Enforcement Act, Md. Code Ann., Com. Law,
        §14-1501 et seq.
        I purchased my car from [Name of Dealership] on [date of purchase.] Approximately [amount
        of time after purchase], I began having trouble with [description of problem]. I took my car back
        to the dealer on [Dates of Repair Attempts] to have this problem corrected but to date, the dealer
        has been unable to do so. Thus far, [my car has been out of service for a total of [number] days
        / a dealership has attempted to repair this problem [number] times.] Attached are copies of the
        repair orders that document the dealership’s attempts to repair my car.
        This problem substantially impairs both the use and value of my car. Therefore, unless you are
        able to correct this problem within 30 days of your receipt of this letter, I request that you [repur-
        chase or replace] my vehicle under the provisions of Md. Code Ann., Com. Law, §14­-1502.
        Please contact me at the above address or telephone number to arrange a mutually convenient
        date and time for you to inspect my car and make the necessary repairs.

                                                                    Sincerely,

                                                                    [Your Name]

        Enclosures
Sample Letter C
For contacting manufacturer if your vehicle is a “lemon” under the lemon law
(use if you have already contacted manufacturer by letter at least once)

                                                                  Consumer’s Name
                                                                  Address
                                                                  City, State Zip Code
                                                                  Telephone Number
                                                                  Date
      Manufacturer’s Name
      Address
      City, State Zip Code
                                                                  BY CERTIFIED MAIL
                                                                  RETURN RECEIPT REQUESTED
      Dear Sir or Madam,
      I am writing to notify you of the continuing problems I have had with my [Year, Make, Model and
      VIN# of car] and to request that you [repurchase or replace] this vehicle pursuant to Maryland’s Au-
      tomotive Warranty Enforcement Act, Md. Code Ann., Com. Law, §14-1501 et seq. As you may recall,
      I previously notified you of these problems in a letter dated [date of prior letter].
      I purchased my car from [Name of Dealership] on [date of purchase.] Approximately [amount of
      time after purchase], I began having trouble with [description of problem]. I took my car back to the
      dealer on [Dates of Repair Attempts] to have this problem corrected but to date, the dealer has been
      unable to do so. Thus far, [my car has been out of service for a total of [number] days / a dealership
      has attempted to repair this problem [number] times.] Attached are copies of the repair orders that
      document the dealership’s attempts to repair my car.
      This problem substantially impairs both the use and value of my car. Therefore, I request that you
      [repurchase or replace] my vehicle under the provisions of Md. Code Ann., Com. Law, §14-1502.
       Please contact me within 14 days to discuss this matter.

                                                                  Sincerely,

                                                                  [Your Name]

      Enclosures
Taking Your Lemon Law                         How We Can Help
                                            Complaint to Court
                                                                                          We hope this information will assist
The Arbitration Option                      If you are not satisfied with the results     you in resolving the problems you
                                            of arbitration, or if you decide not to       are having with your new car. If at
All car manufacturers offer some form       arbitrate, you have the right to file a       any point in the process you want our
of complaint resolution procedure.          lawsuit against the manufacturer of           assistance, please file the complaint
If the manufacturer will not agree          your vehicle. At this point, you should       form included in this publication at
to repurchase or replace your car, it       hire a lawyer if you do not already           the office closest to you.
may offer to submit your dispute to         have one. The Maryland Bar Associa-
arbitration. This is an optional proce-     tion or your county bar association
dure; whether or not you use it is your     can refer you to an attorney in your                How You Can Reach Us
choice. The decision of the arbitrator is   area. You must file your case within                Attorney General’s Offices
binding only on the manufacturer, not       three years from the date the car
the consumer. If you are not satisfied      was delivered to you.                           Downtown Baltimore
with the arbitrator’s decision, you may                                                     Consumer Protection Division
still file a lawsuit against the manufac-   Warranty Adjustment Programs                    200 St. Paul Place, 16th Floor
                                                                                            Baltimore, MD 21202-2021
turer and take your case to court.
If you plan to submit your complaint                                                        •    Complaints General:
                                            When a part has a high failure rate, a               410-528-8662
to arbitration, here are some steps you     car manufacturer will pay for certain                (9 a.m. to 3 p.m., M-F)
should take to prepare:                     repairs even after the original warranty        •    Toll-free:888-743-0023
•   Arrange your records in chrono-         expires. These “warranty adjustment             •    TDD for hearing impaired
    logical order. Prepare a brief          programs” were often referred to                     persons: 410-576-6372
    outline summarizing the events.         as “secret warranties” because the              Send written complaints to:
    Submit copies of records about          manufacturer would notify dealers about         Mediation Unit
    your car’s problem and a copy           the repairs but not consumers. Under            Consumer Protection Division
    of your warranty along with an          Maryland law, manufacturers must now            16th Floor
    arbitration application.                notify consumers about any warranty             200 Saint Paul Place
                                                                                            Baltimore, MD 21202-2021
                                            adjustment programs and, upon request,
•   Ask the arbitration program repre-      provide consumers with copies of the            e-mail: consumer@oag.state.md.us
    sentative to send you copies of all     bulletins sent to dealers about the repair      Branch Offices
    materials submitted in advance                program. Although manufacturers           •    Cumberland
    by the manufacturer so you                          often arrange to reimburse               301-722-2000
    can anticipate and respond                          dealers for the cost of repairs          (9 a.m. to 12 p.m.,
    to its arguments.                                 so that consumers will not be
                                                                                                 3rd Tues. of each month)

                                                    charged, consumers who do pay           •    Frederick
•   You may want to                                                                              301-600-1071
                                                 for repairs covered by the warranty
    have an independent                                                                          (9 a.m. to 1 p.m., 2nd and
                                              adjustment program should seek
    automotive expert examine                                                                    4th Thurs. of each month)
                                            reimbursement from the manufacturer.
    your car. You can submit a writ-                                                        •    Largo
    ten report of the expert’s findings                                                          301-386-6200
    to the arbitrator. You will have to                                                          (9:00 a.m. to 5:00 p.m., M-F)
                                            Consumers may contact the National
    pay for the expert, but the report      Highway Traffic Safety Administration           •    Hagerstown
    might help you make your case.                                                               301-791-4780
                                            (NHTSA) or their car’s manufacturer                  (8:30 a.m. to 4:30 p.m., M-F)
    You can ask the arbitrator to reim-     for more information on recalls and
    burse your expenses in obtaining                                                        •    Salisbury
                                            technical service bulletins. NHTSA may               410-713-3620
    the report, although you cannot         be reached at http://www.nhtsa.gov or                (8:30 a.m. to 4:30 p.m., M-F)
    be assured you will be compen-          toll-free: 1-888-327-4236.                      •    Southern MD, Hughesville
    sated for this expense even if you                                                           301-274-4620
    prevail in the arbitration.                                                                  Toll-free: 1-866-366-8343
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