California’s lemon law, officially known as the Song-Beverly Consumer Warranty Act, has long been considered one of the strongest consumer protection laws in the country. For decades, this law has allowed consumers who purchase defective vehicles to either receive a refund or a replacement. However, a new piece of legislation—Assembly Bill 1755 (AB 1755)—aims to update California’s lemon law. If passed, this bill will introduce significant changes that could affect both consumers and automakers.
Below, we’ll break down what AB 1755 proposes, why it’s causing a stir among consumer advocates and automakers, and, most importantly, what these updates could mean for you as a vehicle owner in California.
What Is AB 1755?
Assembly Bill 1755, introduced by Assembly Member Ash Kalra, D-San Jose, seeks to address some of the challenges that have emerged under the current legal framework. According to supporters, the bill’s goal is to streamline the process for consumers seeking refunds or replacements for their defective vehicles and to relieve pressure on California’s courts.
The key provisions of AB 1755 include:
- Faster Resolution: Automakers would be required to repurchase or replace defective vehicles within 60 days of receiving notice from the consumer. Currently, the timeline for resolution can be unclear, and consumers often face long delays.
- New Filing Deadlines: Consumers would have up to six years from the date they purchased the vehicle to file a lemon law claim. Additionally, they would need to file their claim within one year of the expiration of the vehicle’s warranty.
- Written Notice Requirement: The bill would require consumers to submit a formal written complaint to the automaker before pursuing civil penalties. Under current law, this is not a requirement, allowing consumers more flexibility in how they report defects.
- Court Deadlines: AB 1755 sets stricter timelines for legal proceedings, aiming to resolve disputes more quickly.
Why Is This Causing Controversy?
While AB 1755 claims to benefit consumers by speeding up the lemon law process, not all consumer advocacy groups are convinced. In fact, several organizations, including Consumers for Auto Reliability and Safety (CARS) and the Consumer Federation of America, have come out strongly against the bill. They argue that the proposed changes would weaken consumer protections and create new hurdles for vehicle owners dealing with defective cars.
- Statute of Limitations: One of the most contentious parts of the bill is the shortened statute of limitations for filing a claim. Under current law, consumers have up to four years to take legal action after they discover their vehicle is a lemon. AB 1755 would reduce this to just one year after the vehicle’s warranty expires, potentially leaving some consumers without recourse if they don’t act quickly enough.
- Shifting Burden to Consumers: Critics argue that requiring consumers to submit written notice to automakers before pursuing penalties places an unfair burden on them. Many consumers may not be aware of this requirement, especially if they are unfamiliar with the legal process. This could result in legitimate claims being denied because of procedural issues, not the merits of the case.
- Negative Equity: Another major concern involves negative equity, or the difference between the value of the vehicle and what the consumer still owes on it. Currently, the law requires manufacturers to pay off the full loan balance when repurchasing a lemon. However, under AB 1755, automakers would only need to pay for the car’s diminished value. This means that consumers could be left to cover the remaining loan amount, even though the vehicle is defective.
What Does This Mean for You?
If you’re a vehicle owner in California, understanding how AB 1755 could affect your lemon law rights is essential. Here’s what to consider:
1. Faster Process—With Some Caveats
One of the bill’s primary goals is to expedite the lemon law process, which could benefit consumers by getting them a refund or replacement vehicle more quickly. However, the bill also introduces stricter deadlines that could catch some owners off guard. Suppose you own a vehicle and suspect it might be a lemon. In that case, it’s crucial to act fast and familiarize yourself with the new requirements, especially if the bill becomes law.
2. Be Prepared to File in Writing
Under AB 1755, consumers would need to file written complaints with the manufacturer before seeking civil penalties. This adds an additional step to the process that doesn’t currently exist, so it’s important to keep detailed records of any defects and repair attempts.
3. Statute of Limitations Could Impact Your Claim
The new six-year window for filing claims could be helpful to some consumers, but the reduction of time after a warranty’s expiration may limit others. If your warranty is set to expire soon and your vehicle has unresolved issues, it may be wise to consider initiating a claim sooner rather than later.
4. Negative Equity Deductions
If your car is financed, be aware of the changes related to negative equity. Under AB 1755, automakers would only be required to refund the vehicle’s current value, not the full loan balance. This could leave you financially responsible for paying off the remaining loan balance on a defective car. If this bill passes, car owners may need to reevaluate their loan terms and consider potential impacts on their finances.
For now, the bill’s future is uncertain. It must pass both houses of the California Legislature and be signed by Gov. Gavin Newsom before it becomes law. Until then, consumers and advocates are watching closely to see how these proposed updates will shape the state’s lemon law landscape.
How Can Johnson & Buxton Help?
At Johnson & Buxton – The Lemon Law Guys, we’re dedicated to protecting the rights of California consumers. If you believe your vehicle may qualify as a lemon, it’s critical to understand your rights under the law and how these potential updates might affect your case. Our experienced lemon law attorneys are here to guide you through the process, ensuring you get the compensation or replacement you deserve.If you have any questions or concerns about your vehicle, or if you want to learn more about how AB 1755 might impact your rights, contact Johnson & Buxton – The Lemon Law Guys today. We’ll help you navigate California’s lemon law, ensuring you’re equipped to handle any changes that may come.
