Colorado's revised lemon law could potentially trigger unexpected outcomes
In Colorado, a new Lemon Law aimed at providing fairer refunds for consumers has sparked controversy, as evidenced by the case of Rosa Hernandez.
Rosa, a resident of Colorado, purchased a brand-new Toyota Corolla Cross, hoping for a reliable and enjoyable driving experience. However, after putting 22,000 miles on the vehicle, it began to have serious issues, including brake problems that required the car to spend about 22 days in the shop for three different reasons.
Rosa expressed a desire for fairness and a fair option in dealing with her vehicle issues. Unfortunately, the total amount she would have paid for the vehicle, including payments and usage fees, is over $20,000. Despite the persistent problems, Toyota chose the buy-back option as the remedy for the vehicle's issues, agreeing to pay off the remainder of Rosa's loan and take back her Toyota Corolla Cross.
However, Rosa is still paying over $5,000 in 'usage fees' for the vehicle that is sitting in her driveway. This financial burden, coupled with the emotional distress caused by the prolonged process of dealing with the vehicle's issues, has left Rosa feeling frustrated and disappointed.
The updated Colorado Lemon Law establishes a formula for manufacturers to calculate how much they can deduct from a car owner's refund. This formula includes items unrelated to the vehicle purchase price, such as maintenance, service contracts, and extended warranties. This approach has raised concerns among consumer advocates and attorneys, who argue that it inflates the amounts manufacturers can deduct, potentially reducing the refund the owner receives unfairly.
Rosa's attorney, Shalev Amar of Amar Law Group, claims that the new law allows manufacturers to inflate refund calculations. He goes further to state that the Colorado Lemon Law is the worst among the 12 states where his firm operates.
As the debate continues, it remains unclear whether the Colorado Lemon Law needs to be modified to better protect consumers. Our Colorado reached out to the bill's sponsors but hasn't been able to get in touch with them on this matter.
If you have a story to share about your experience with the Colorado Lemon Law, Chierstin Susel, a reporter for News Colorado, would love to hear from you. You can reach her at [email protected].
- The controversy surrounding the new Lemon Law in Colorado has led some in the automotive industry to question its fairness, with attorneys arguing that it could potentially reduce the refund consumers receive.
- In the health sector, consumer advocates express concerns that the updated Lemon Law allows manufacturers to inflate refund calculations, which could have financial implications for car owners.
- The debate over Colorado's Lemon Law also touches on the finance industry, as consumers face financial burdens like usage fees even after their vehicles have been bought back, leading to emotional distress and frustration.
