Texas Lemon Law Blog

Often times, potential clients will call me with a set of facts that meets the minimum requirements of the Texas Lemon Law. However, once I ask the potential client to fax me the repair invoices, I learn that the receipts were either inaccurate or unavailable.

Many dealerships, in preparation for a lemon law claim, would find ways to set up the situation against the consumer's favor. For example, the repair invoice always includes the legal jargon that the "customer states...." so-and-so. It never states that "we the dealership found or discovered a serious defect: -- because that would be considered an admission to liability.

Other times, the dealerships will merge two separate repair visits onto one invoice. In the eyes of most Texas Lemon Law administrative judges, one repair invoice equals only one visit. The rule of thumb is that once you've driven the car off the lot for a repair invoice and the same problem re-manifests itself, then you should turn around, have the dealership attempt to repair the defect and request a separate repair receipt.

Another inaccurate repair invoice situation is when the dealership mis-types that mileage in and mileage out area of the repair invoice. I have had a client that noticed that the odometer had 400 miles added to it when it was in the possession of the dealership. The repair invoice indicated that only 4 miles were driven.

Like anything, if you notice that the repair invoice is not accurate, then DO NOT sign the repair invoice.

Although this article is related to used lemon cars, please understand that my office does NOT handle used lemon car cases. Please do not contact our office for legal advice regarding a used car -- you may want to look for an attorney that handles used car cases at NACA.net.

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Automobiles come in a variety of shapes, sizes and colors, and we buy them for a variety of reasons. Some of us look at the snob appeal and buy nothing but the best and most flashy cars in the market while others are more down to earth and prefer practical cars that offer good mileage and a comfortable driving experience. There are times though when we have to settle for a secondhand car, one that has already been driven by someone else and put through a considerable amount of wear and tear. The thing is, although your expenses are considerably lower, buying a used or “pre-owned” car is not as easy as buying a new one because you never know what you are going to get. If you want to protect your money and make sure you get bang for your buck, the Texas lemon law blog has these tips to offer:

* Choose a trustworthy dealer: Although consumers are protected from being stuck with used cars that are lemons, the law is not as supportive or pre-owned cars as it is of new ones. So if you must buy a used car, ensure that you choose a dealer who is reputable and known for their trustworthiness and dependability. Ask around, talk to other customers, and check out the reputation of the dealer before you do business with them.

* Never buy from people you know: At least not without a written agreement and warranty. Even so, if you do discover later that the car is a lemon and that you’ve been taken for a ride, it could get complicated and awkward because you cannot take to court someone you know pretty well. You’re also not able to recoup your investment and end up finding yourself out of a huge chunk of your savings.

* Always use a trusted mechanic to check out the car before you buy: If you know everything there is to know about cars, examine it thoroughly before you buy it. If not, get a mechanic you trust to check it out and test drive it before you put down any money on the table.

* Never buy cars that are advertised “AS IS”: This basically means that you’re not going to be covered by a warranty and that you’re taking the car as it is. These cars most definitely have something seriously wrong with them, so steer clear from them and put your money on something that has more value.

By-line:
This article is written by Kat Sanders, who regularly blogs on the topic of court reporter school online at her blog Court Reporter Schools. She welcomes your comments and questions at her email address: katsanders25@gmail.com.

With the downturn of the economy, a lot of people are now purchasing used cars and vehicles in order to save money. Generally speaking, new vehicles depreciate so aggressively that purchasing a pre-owned car makes a lot of financial sense.

I have previously written an article about how the Texas Lemon Law treats used car cases (go here for the article). Here's a paraphrase on the limitations of Texas Lemon Law for used cars on TXDOT's website:

A used vehicle may be covered under the Lemon Law. However, the coverage applies if your used vehicle is still covered by the manufacturer's original warranty. Keep in mind that extended service contracts do not apply. Coverage also applies if the problem started while under warranty and it continues to exist, but the remedies are limited to repair assistance of the warranty-related problem,...and not a repurchase or replacement.

Since buying a vehicle is arguably the second most expensive purchase that most consumers make, it is necessary to do your homework and to be observant of potential red flags that indicates that the used car is a lemon. See this blog post for some personal nonlegal tips on how to avoid buying a used lemon car.

Because of this recent growth in purchasing more used cars due to the economy, my lemon law practice also notices an exponential growth in potential clients calling to seek information about their lemon used cars. PLEASE NOTE that my office rarely accepts pre-owned car cases. However, we do accept some Chrysler car cases -- if you have used lemon Chrysler car that is at least a 2005 model, then please call my office.

In December of 2008, I posted a blog article about my experience with helping my friend, at the last minute, attend a Texas Department of Transportation Lemon Law hearing.

It was then discovered that my friend relied on the incorrect information provided by TexasDOT's representative (he called (800) 622-8682) and did not send the car manufacturer a notice letter by certified mail. The case was dismissed due to this reason alone.

My friend then asked me about what could be done at that point. Once a case has been referred by the administrative judge to be dismissed, the claimant has the option of appealing the decision, provided that he or she does so in writing and within the specified period of time. Alternatively, the consumer may elect to forgo the appeal process and hire a lemon law attorney to file a lawsuit under the Texas Deceptive Trade Practices and Federal Magnusson Moss Act.

My friend elected to hire my office to represent him. As of last week, the case was successfully settled for a monetary cash settlement. The lesson to be learned here is that you do have second chances if you are unsuccessful with your original lemon law hearing with TxDot. Having a lemon law attorney represent you could help you attempt to get a repurchase or replacement the second time around, or help you get a cash settlement in damages.

This is a continuation on last week's post, on how to avoid your chances of purchasing a lemon pre-owned/used car. The same disclaimer applies; this is not legal advice, but are mere suggestions. Although I handle Texas lemon law cases, I do not handle pre-owned or used car cases.

Tip #4: Get a mechanic's inspection. Purchasing a vehicle is arguably the second most costliest item that most consumers buy in their lifetime. As a consumer, you do not purchase vegetables at your local grocery with blindfolds on,...the same logic applies in purchasing lemon cars. Without a mechanic's expert opinion, it is difficult to determine the condition of the vehicle underneath the hood. My lemon law office gets at least one call a day of unsuspecting car owners who subsequently learn that their 2007 Dodge Caravan has a 2005 engine or component on it.

Tip #5: Bring a friend during your visit to the dealership. During my pre-lasik surgery days, my friends always advise that four eyes are usually better than two. Buying a vehicle can be stressful and it is a good idea to have your friend look for potential red flags and defect cover-ups while you talk to the used car salesman.

All in all, good luck!

Four months ago, a friend of mine called my office four days before his scheduled administrative hearing with the Texas Department of Transportation regarding his lemon vehicle. I asked him to forward the documents to my office before I agreed to attend the hearing with him.

Upon receiving the documents, I noticed that my friend's file did not include a copy of the notice letter to the car manufacturer. I asked my friend about this and he told me that when he called the 1 800 lemon law number to the Texas Department of Transportation, he spoke with a representative from the department and the person on the phone told him that he did not need to mail the manufacturer any.

I ended up attending the hearing with my friend anyways. At the hearing, the administrative judge focused on the fact my friend failed to provide written notice to the manufacturer. Further, the administrative judge stated that because of the failure to provide the manufacturer with a 30 day notice, that my friend also did not provide the manufacturer with a final opportunity to cure.

Several days ago, my friend told me that he received the proposed decision from the administrative judge in the mail. It looks like the proposed decision is to dismiss the case simply due to my friend's failure to send a written notice demand letter. At the end of the day, the lesson to be learned by this is that all consumers who plan on filing a case with the DOT should send a written notice letter to the manufacturer as soon as possible. I recommend making a copy of the notice letter and sending is USPS certified mail with return receipt requested (RRR).

Regardless of whether you are scheduled to attend either the Better Business Bureau's (BBB) Arbitration or the Texas lemon law administrative hearing (in order to get a lemon vehicle buyback or replacement), it is important to be prepared with essential documents that will help you win your case.

Before proceeding further, I must caution you that although I am an attorney who concentrates my practice to Texas lemon law related cases, that the information found here is not and should not be treated as legal advice. The reason is because every case, regardless of how similar, is different. Therefore, this information is simply a public service presentation and you should contact a Texas lemon law attorney as soon as possible in the event that you have recently purchased a new lemon car.

Because both of the above-mentioned programs generally do not have an attorney fee shifting provision that requires the car manufacturer to pay for your attorney fees if you prevail -- having an attorney represent you in these hearing can be cost prohibitive. Under Texas lemon law, the only time the attorney fee shifting can be invoked by the consumer is when the automobile manufacturer is represented by an attorney at the hearing.

Documentation is key at the hearing. You must have written proof that your car meets the rebuttable presumption of the program. For example, if you are arguing that your car is a lemon because it has been subject to repairs for the illumination of the check engine light, then having for documented repair invoices issued by the service center will solidify your case, rather than relying on the arbitrator or administrative judge to take your word for it.

Continue reading "Essential documents to bring at the Better Business Bureau's (BBB) Arbitration or the Texas lemon law administrative hearing" »

The single most important information that consumers need to know about the Texas lemon law is the deadline to filing a timely claim. Unfortunately, the law does not require car dealers or manufacturers to affirmatively disclose this information. Therefore, new car buyers often find themselves ineligible for the Texas lemon law because they rely on the dealer's promise that the car is fixed and have waited to long to assert their rights.

Under Texas lemon law, a consumer must open a case with the Texas Department of Transportation (DOT) within 24 months from the automobile's date of purchase or within 24,000 miles, whichever occurs first. Please note that there is a 6 months grace period after the expiration of the deadline, but such grace period is very difficult to assess.

It is recommended that if you suspect that you have a lemon car, that you contact a Texas lemon law attorney as soon as possible -- or, at minimum, open a claim with the DOT immediately.

Too often, when faced with a new broken car, consumers are unfamiliar with their lemon law rights. Burdened with frustration and the runaround from car dealerships and the manufacturer, some consumers resort to trading in their vehicle at a substantial loss.

Recently, the Fort Worth Star Telegram wrote a brief summary about the Texas lemon law. Personally, I think that this public announcement is a very commendable thing that our local newspaper is doing.

In summary, the newspaper article accurately states that a consumer with a suspected lemon should contact the Texas Department of Transportation by calling the local toll free number immediately. In addition, there is a $35 fee, which is refundable to the consumer if the consumer wins the lemon case via the Texas DOT.

However, the article is silent on the deadline for filing a lemon law complaint. The statute of limitation for Texas lemon cases is usually 24,000 miles or 24 months from the date of purchase, whichever occurs first. If you have missed this deadline, then all hope is not lost, as other laws such as the Texas Deceptive Trade Practices Act (DTPA) or Magnuson-Moss Warranty Act may still help you.

Please contact a local Texas lemon law attorney for more information. Most lemon law attorneys practice statewide. For example, although my office is based in Dallas and a consumer with a problem car may live in Weatherford or Hillsboro, as long as the vehicle was purchased in Texas, then my office may be able to assist.

In Texas, most car manufacturers participate in the Better Business Bureau (BBB) Lemon Law Arbitration program. Because this arbitration program does not award consumer attorney fees, a car owner may often find himself/herself going through the arbitration process on his or her own. If this is your situation, then below are some helpful suggestions on how to win your lemon law arbitration hearing.

* Please note that the information below and on this website are not legal advice. Contact a lemon law attorney for information that is specific to your situation. These suggestions are based on my experience with the BBB lemon law arbitration program here in Dallas, other locations may vary. If you are in Dallas or anywhere in Texas, then feel free to contact my office.

Tip number 1: Take a deep breathe. Most arbitrations are less formal than a trial. The arbitrator understands that this will be your first time.

Tip number 2: Bring the lemon vehicle to the hearing. The arbitrator will most likely want to test drive it to verify the problems with the vehicle. Make sure that the vehicle is clean so that the arbitrator does not get the impression that you are not following all maintenance schedules for the vehicle.

Continue reading "Dallas, TX: How-to prepare for your Better Business Bureau (BBB) Lemon Law Arbitration Hearing" »