7 days ago
Changes to Colorado's lemon law might have unintended consequences
Lemon laws, by nature, are meant to protect consumers, and last year Colorado made changes to the existing law to add further protections. While there were positive changes made through this legislation, one woman is coming forward with her story of how it's left her stranded.
When Rosa Hernandez purchased a brand-new Toyota Corolla Cross, she was ecstatic.
"It has all the bells and whistles, all the great safety features," said Hernandez. "And I was happy. I was very excited until it started having issues."
After putting just 22,000 miles on the vehicle, it began to have serious issues.
"Within that month, you know that this vehicle was in the shop for about 22 days for three different reasons," Hernandez said.
The issues included brake problems, prompting Hernandez to request that Toyota replace or repurchase the vehicle. Under the updated Colorado Lemon Law, manufacturers can decide the remedy. In her case, she says Toyota chose the buy-back option.
"Having to deal with this already, has already caused me a lot of emotional distress," said Hernandez.
Another change in the law establishes a formula for manufacturers to calculate how much they can deduct from a car owner's refund. But Hernandez' attorney says the way the law is written allows manufacturers to inflate numbers.
"It says total contract price," said Shalev Amar of Amar Law Group, representing Hernandez. "The issue is there's a bunch of items that go to the total contract price that have nothing to do with the actual vehicle purchase price. For example, if there's maintenance, service contracts, extended warranties, things of that nature."
Hernandez and the attorneys she's working with say Toyota agreed to pay off the remainder of her loan and take the vehicle back, but she'll have to pay over $5,000 in what they call 'usage fees'.
"Where am I going to even get that money to start off with?" said Hernandez.
Adding in the $15,000 she's already made in payments, Hernandez would be paying over $20,000 toward a vehicle, with no vehicle to show for it.
"Our firm operates in 12 states," said Amar. "Of all the states that we operate in, I would say the Colorado Lemon Law is the worst."
And in the meantime, Hernandez is paying on a car that just sits in the driveway.
"I just want to bring fairness. I just want a fair option, and that's all I'm asking for," she said.
CBS Colorado reached out to the bill's sponsors but hasn't been able to get in touch with them on whether they think the law needs to be modified.
