Chrysler ’s Chapter 11 bankruptcy is already having an impact on the automaker’s resale values, but those unlucky enough to be stuck with a Chrysler-made lemon are suffering even worse. Despite lemon laws intended to protect consumers, those with defective Chrysler products are getting nothing as the automaker fights through bankruptcy court.
Lemon laws are intended to protect consumers from vehicles that are inherently flawed – typically defined as vehicles that can’t be repaired after four attempts or have been out of service for more than 30-days during a warranty period – but Chrysler hasn’t been holding up its end of the deal since its April 30th bankruptcy filing. Any lemon claims against Chrysler must now go through bankruptcy court, with several of the automaker’s already cut lemon checks bouncing.
Lemon law attorney Alex Simanovsky told the Los Angeles Times he has “a stack of six or seven checks” in his drawer right now from Chrysler that have bounced. Lemon law settlements can range from as little as $2,000 all the way up to the value of a new car — $40,000 or more in some cases.
Despite the obvious problem, Chrysler says it isn’t doing anything to remedy the situation. “This is a complex process and there are a lot of issues being discussed,” Chrysler spokesman Mike Palese told the LA Times. “This could be one of those issues that comes up in the course of the bankruptcy, but I can’t say that we have any plans to present it at this time.”
Simanovsky says Chrysler lemon owners will be “lucky to get pennies on the dollar.†In some cases, consumers have already returned their Chrysler product but have received nothing back, leaving them without a car or the money to purchase a new one.
