• May 18, 2009
Going through the process of having a troubled vehicle legally branded as a 'lemon' is difficult enough, but now, according to The Los Angeles Times, Chrysler's bankruptcy is making seeking recompense even harder for affected owners in California. According to the daily paper, settlement checks for Chrysler vehicles that have already been agreed upon as defective are apparently bouncing, costing already irked consumers additional time and money.

Apparently, the heart of the issue stems from the fact that financial claims made prior to the company's April 30 Chapter 11 filing can only be paid out if the bankruptcy judge approves the action. To date, Chrysler has apparently not requested the court's permission to make good on these lemon law payments, leaving little recourse for affected consumers.

Many affected owners have apparently spoken with attorneys, who apparently can't do much unless the lemon law payback accounts in question are unfrozen by the bankruptcy court. That means consumers could be out anywhere from a couple of thousand dollars to the entire cost of a new vehicle – one attorney, Alex Simanovsky, is quoted as saying that he has "a stack of six or seven checks in my drawer right now from Chrysler that have bounced" – settlement payments ranging from $2,000 on up to $40,000. Some consumers have already turned-in their defective vehicles to Chrysler, compounding the problem.

For its part, the LA Times says that Chrysler is telling customers with lemon law claims to get in line – by filing a claim with the courts, in effect joining the automakers other unsecured creditors seeking payment. In that scenario, however, defective car owners aren't expected to see much more than "pennies on the dollar."

Consumer groups have reportedly met with auto task force members to discuss the matter, but as of yet, there is no word on any remedy in the works. Thanks for the tip, MopePar!

[Source: The Los Angeles Times]


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  • 33 Comments
      • 5 Years Ago
      LOLOLOL
      • 5 Years Ago
      Doesn't anybody in this whole financial mess have any sense of decency?
        • 5 Years Ago
        Nope, people don't give a damn about their neighbours, or anyone else anymore. Imagine these people with no car and no money, probably getting pennies on the dollar. Disgraceful. If I were in that situation, I'd be so screwed, as I'm sure most people would.
      • 5 Years Ago
      This is like feeling sorry for someone who willingly sticks their hand in a fire. It's a Chrysler, what did you expect?
        • 5 Years Ago
        I was hoping someone would say this for me, toché!
        • 5 Years Ago
        LOL!! You said it correctly.
        • 5 Years Ago
        exactly!!!
        • 5 Years Ago
        Y'all wanted a goddamned bankruptcy. Enjoy!
      • 5 Years Ago
      Hmm... as the government is a partial owner of the company, can Chrysler lemon-law returners get the money they lost written off on their income taxes that they owe?
      • 5 Years Ago
      Did PP Cruisers really come with yellow calipers?
        • 5 Years Ago
        Is that pussy magnet yellow?
      • 5 Years Ago
      Karma is visiting Chrysler right now and they deserve every bit of what she's got to serve to them. Chrysler has been making piss-poor vehicles for decades and I'm very certain that they will continue to make up piss-poor vehicles even after this bankruptcy is over. There's no way I would put myself through the torchure of owning a Chrysler product. I feel for those poor folks that bought POS Chrysler lemons (pretty much every vehicle made by Chrysler Corporation). I wish them all the best!
      • 5 Years Ago
      This Chrysler bankruptcy reminds me of the lead up to the famous "Who Shot J.R." episode of Dallas. This company is screwing the dealers, the customers, the taxpayers. It's just a matter of who is going to pull the trigger to kill this godawful company.
      • 5 Years Ago
      The lemon yellow PT Cruiser in the picture looks nice.
      • 5 Years Ago
      In 2003, Chrysler bought back my Dodge Neon that was determined to be a lemon. The procedure, at least in Pennsylvania, was: drop off the car at the dealer, they hand you a check for what you paid less some depreciation. I chose the buyback option rather than cash settlement or a new car.

      The lemon law procedure took a couple of years to run its' coarse. I can't imagine how folks feel after giving their car away for a worthless check. No car and no cash!
      • 5 Years Ago
      Sorry for the Double post, but one more thing.
      Isn't it illegal to bounce a check?
      If i were to write chysler a bad check, i was under the impression i could receive a court appearance and possible jail time.
        • 5 Years Ago
        If you're in a deep, black, financial void/hole/nullspace/anti-matter, and a tree falls on your foot, can anyone hear you?
      • 5 Years Ago
      They better get this fixed quickly.
      As if americans didn't already have enough reason not to buy a chrysler.
      They might as well close up completely.
      • 5 Years Ago
      And Chrysler thinks they will ever have a chance again with the American consumer. Between this the bankruptcy and the dealer closings and layoffs there isnt a chance in hell. Just shut the the doors for good of this worthless company, if fiat was smart they would bail b4 they dig themselves into a deeper hole.
        • 5 Years Ago
        Like I said eons ago - DIE already, Chrysler!
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