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Consumer groups blast bill to change California Lemon Law

Suzanne Potter

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(California News Service) Consumer groups are calling for the withdrawal of a bill that would change the way California's auto lemon law works - before the legislative session ends this week. Assembly Bill 1755's backers say it would reduce delays in getting reimbursed for a defective new car.

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Rosemary Shahan, president of Consumers for Auto Reliability and Safety, said it would also mean if a problem arises more than six years after the sale, the lemon law no longer applies.

"It would shorten the statute of limitations for filing a lemon-law case to just one year after the warranty expires. Right now it's four years after you find out you have a claim," she explained.

The bill would also require consumers to file a formal written complaint instead of simply calling the dealer. Bill co-author State Senator Tom Umberg said in a statement that the bill "is a necessary step towards streamlining and strengthening California's 'Lemon Law' to get drivers out of the judicial system and back on the road more quickly."

General Motors is the biggest backer of the bill. Shahan suggests car manufacturers are looking for ways to avoid paying to repair or replace vehicles.

"What they're trying to do is reduce their warranty compliance costs, like last year alone, Ford paid out $1.9 billion in warranty repairs, and they're under pressure by Wall Street to reduce their warranty costs," she continued.

She added the bill would also mean that manufacturers would no longer have to pay off the amount people may still owe on a lemon car. So some people may not be able to get a buy-back unless they can come up with thousands of dollars up front.