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AG Asks For Chrysler Lemon-Law Assurance

Blumenthal Raises Concerns Amid Bankruptcy Proceedings

POSTED: 3:00 pm EDT May 21, 2009
UPDATED: 7:29 pm EDT May 21, 2009

Attorney General Richard Blumenthal called on the U.S. Department of Treasury Wednesday to assure that Connecticut's lemon law will be fully honored by Chrysler's new owners and the federal government.

"A car that's a clunker or defective that's bought today may not be protected because these companies are saying, 'We're in bankruptcy. We may not respect those obligations,'" he said.

In a letter to Treasury Secretary Timothy Geithner, Blumenthal said he's concerned that no one in the Chrysler bankruptcy proceedings has unequivocally agreed to assume liability for claims brought under state lemon laws for vehicles purchased during the bankruptcy proceedings.

Connecticut's lemon law provides additional protection, beyond the manufacturer's warranty, to consumers who purchase seriously defective new vehicles, the attorney general said.

Blumenthal said Chrysler consumers may be unaware that they could be denied important protections available under the lemon law, which could impact a person's decision to buy a Chrysler.

Issues relating to product liability claims also remain unresolved, he said.

"We are asking the federal government for an airtight promise of consumer protection for Chrysler car buyers, in the face of disturbing uncertainties," Blumenthal said. "Our state lemon law, designed to safeguard consumers from defective vehicles, deserves full respect.

"Chrysler's new owners or the federal government should explicitly acknowledge and own the responsibilities that go with the product," he said. "Lemon-law and liability protections for Chrysler consumers are imperative to maintain consumer confidence in this economy."

President Obama assured in March that warranties from Chrysler and General Motors would be safe and that the federal government will stand behind warranties, Blumenthal said.

But the attorney general admits he is concerned about hurting already sluggish Chrysler sales, but he says full disclosure for consumers is more important.

"Chrysler or Fiat or the federal government must guarantee explicitly that those rights will be provided," Blumenthal said. "Otherwise, they should tell consumers that the law may not cover you."

Blumenthal asked Geithner to clarify the Treasury Department's position with respect to lemon-law claims, including whether the federal government or Chrysler's new owners will be held accountable for lemon vehicles.


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