Straightline

The car enthusiasts news blog from Inside Line

Report: Chrysler Lemon Law Claim Checks Are Bouncing

DSCF4837.jpg As Chrysler's "quick-rinse" bankruptcy progresses, all sorts of nagging little issues are bound to pop out of the woodwork. For instance, what do you think might happen if Chrysler bought your vehicle back under your state's lemon law and you try to go deposit your payout check?

For several buyers in California, the answer is that check's going to bounce, the Los Angeles Times reported today.

Financial claims made before the automaker sought Chapter 11 protection on April 30 can only be paid out with approval of the bankruptcy judge, and says the Times, "Chrysler has not asked for permission to make payments on lemon law complaints."

So what recourse do you have? File a proof of claim with the bankruptcy court and join the long line of unsecured creditors hoping to collect.

Los Angeles Times

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3 Comments

msdaisy says:

07:34 AM, 05/19/09

And the hilarity ensues...

redliner says:

09:12 AM, 05/19/09

WOW. You get screwed twice, once for buying a caliber and then again when you wanna get rid of it.

redgeminipa says:

05:02 AM, 05/20/09

If Chrysler wasn't building the worst garbage of the big 3, they wouldn't be where they are today. I've owned 5 Chrysler products over the years, each used and newer than the last. None were very good. My current Intrepid will be the LAST piece of Chrysler JUNK I'll EVER own.

I'm glad I got my Lemon Law check cashed back in 2006 for the '06 Chevy HHR I bought back in 2005. I liked my HHR. I would've been happy with an exact replacement, but that wasn't an option. So, I settled for a partial refund and extension of electrical warranty under PA Lemon Law, then I traded it in.

If I could find out if the timing chains in the new 2.4 Ecotec are better than the chains used in the '02 2.2 Ecotec, I'd take my chances with a new Malibu. I'd also like to find out if the electric power steering is improved from that in the Cobalt and Ion. I've heard of those failing just after the 3/36 warranty expiration. I got 35 MPG out of my 2.4 HHR once. I'd be I could get at least that in the Malibu with the same engine and 6-speed tranny.

My former roommate had an '02 Grand Am w/ a 2.2 Ecotec that experienced a broken timing chain at 87k. Had to replace the engine.

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