Automobiles-Frequently Asked Questions
by: Texas RioGrande Legal Aid - Austin & Lone Star Legal Aid - Houston
Q.) How long do I have to file a lemon law complaint?
A.) Remember: the lemon law applies only to new cars. You
must file a lemon law complaint within the shortest of the following
time periods:
? 30 months after you bought the car;
? or, 6 months after the warranty on the car expires;
? or, 6 months after 24,000 miles.
For a complaint form and a free booklet that explains your rights under
the lemon law call: 1-800-622-8682. You can also go to the following
website for more information or to print out a complaint form: http://www.dot.state.tx.us/mvd/lemon/lemonlaw.htm
Consumers represented by attorneys tend to have more success in filing
lemon law complaints
Q.) I bought a used car. I have discovered that the sales person
intentionally didn't tell me about some major problems, including prior
wreck damage. What are my rights?
A.) Under the Texas Deceptive Trade Practices Act (DTPA), it is not
lawful for a seller to not tell you about a known fault, in order to get
you to buy the car. This law must be followed by everyone, not just used
car dealers.
Under this law, a seller who knows about a problem with the car and
doesn't tell you, or who tries to cover up the problem, may have to pay
you up to three times your damages (for example, the cost of the
repairs) plus court costs and attorneys' fees.
To use the Trade Practices Act you have to write the seller a letter
telling him about the problem and the amount of your damages. In your
case, the damages will be either what it will cost to get the car
repaired or the difference between what you paid for the car and what it
is really worth. If this amount is less than $10,000.00, you might want
to file in small claims court. You don't need a lawyer to represent you
in small claims court. If you wish to file in any other courts, though,
your chances of success improve when you are represented by counsel.
Q.) My car has been repossessed. How can I still owe money when
they have the car?
A.) When a car is repossessed, the finance company or bank will usually
sell the car for whatever they can get for it in its present condition.
The money from that sale will first go to pay for the cost of the
repossession, with any remaining money going to pay off what is owed on
your car loan. If the money from the sale of your car is not enough to
pay off your loan, the finance company may attempt to collect the
"deficiency" (which is the unpaid balance owed on your car loan,
including unpaid interest and late charges). Sometimes, the finance
company or bank may even sue to collect the deficiency.
Q.) I bought a car 3 months ago, the car dealer has gone out of
business, and I never received title, nor was trade-in off. What can I
do?
A.) When you buy a vehicle from a licensed Texas car dealer, the dealer
is required to complete all the papers that are necessary to title and
register the vehicle in your name. The dealer must also file them with
the county tax assessor-collector's office within 20 working days of the
date you bought the vehicle.
If you do not receive the title within a month, you can file a complaint
with the Texas Department of Transportation. When you file the
complaint, you must show you had proof of insurance at the time of sale
and send that proof when you return the form. To get a complaint form,
you can write: Texas Department of Transportation, Motor Vehicle
Division, Enforcement Section - New Complaints, P.O. Box 2293, Austin,
Texas 78768 or call: (512) 463-8588. You may also go to the following
internet link to print a form: ftp://ftp.dot.state.tx.us/pub/txdot-info/mvd/dealerform.pdf
In addition, you may sue the defunct dealer in court and seek a judgment
for the cost of paying off any liens to obtain a clean title. You can
then seek to collect this judgment from the dealer?s $25,000 bond. If
there are a number of similar claims against the dealer, however, the
bond may not cover your damages. If the bond is not available, your
attorney may be able to sue your lender, if you purchased under a retail
installment contract.
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