Blumenthal To Geithner:

Protect Chryslers Under State Lemon Law

HARTFORD — Attorney General Richard Blumenthal — after uncertainties were raised during the Chrysler bankruptcy proceeding May 21 — called on the US Department of Treasury to assure consumers that Connecticut’s lemon law will be fully honored for Chrysler cars by Chrysler’s new owners or the federal government.

In a letter to Treasury Secretary Timothy F. Geithner, Mr Blumenthal said he is deeply concerned that no party in the 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, like those of many other states, provides additional protection, beyond the manufacturer’s warranty, to consumers who purchase seriously defective new vehicles.

Mr Blumenthal said Chrysler consumers may be unaware that they could be denied important protections available under the lemon law — a fact which could be critical to a decision about whether or not to buy a Chrysler. Issues relating to product liability claims also remain unresolved.

“We are asking the federal government for an airtight promise of consumer protection for Chrysler car buyers, in the face of disturbing uncertainties,” the AG said. “Our state lemon law, designed to safeguard consumers from defective vehicles, deserves full respect. Countless Chrysler consumers have bought new cars, trusting that state law would protect them. Consumers expect and deserve full legal protection — the same as any new car owner — or else advance disclosure if the federal government plans to selectively strip state law.

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

Mr Blumenthal wrote, “Leaving consumers who have relied upon the statements of the President and have placed a vote of confidence in Chrysler by purchasing a vehicle during the bankruptcy without appropriate relief under state lemon laws neither engenders good will nor validates consumers’ confidence. I urge you to act promptly to resolve these concerns, so that consumers can be assured that a Chrysler remains a safe purchase for careful consumers.”

Mr Blumenthal noted that President Obama assured in his March 30 statement that warranties from Chrysler or General Motors would be safe — even better because the federal government will stand behind warranties.

The attorney general asked Secretary 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.