Attorney Sergei Lemberg: Chrysler Bankruptcy Trustee Must Protect Consumers with Lemon Law Claims

"Chrysler is bouncing checks, consumers are being ripped off, and the government is looking the other way," said Sergei Lemberg, an attorney specializing in lemon law. That's why Lemberg & Associates LLC (www.LemonJustice.com) on Wednesday urged the U.S. Trustee for Chrysler to appoint a committee of Statutory Law and Warranty Claim Holders for the duration of the automaker's bankruptcy proceeding.

Stamford, CT (PRWEB) May 14, 2009 -- "Chrysler is bouncing checks, consumers are being ripped off, and the government is looking the other way," said Sergei Lemberg, an attorney specializing in lemon law. That's why Lemberg & Associates LLC (http://www.lemonjustice.com) on Wednesday urged the U.S. Trustee for Chrysler to appoint a committee of Statutory Law and Warranty Claim Holders for the duration of the automaker's bankruptcy proceeding.

According to Lemberg, "In its bankruptcy, Chrysler is not honoring claims for the tens of thousands of consumers who purchased defective vehicles and are entitled to lemon law relief, nor for the thousands of people who have breach of warranty claims but do not technically qualify for lemon law relief."

Chrysler is bouncing checks, consumers are being ripped off, and the government is looking the other way

Chrysler is bouncing checks, consumers are being ripped off, and the government is looking the other way

In its bankruptcy, Chrysler is not honoring claims for the tens of thousands of consumers who purchased defective vehicles and are entitled to lemon law relief, nor for the thousands of people who have breach of warranty claims but do not technically qualify for lemon law relief.

In these difficult economic times, consumers who are targeted to receive little or nothing for their claims can't afford to retain bankruptcy attorneys to represent their interests in Chrysler's proceedings, yet every other entity with a significant interest is represented by counsel

The U.S. trustee must fill this gaping hole by forming a committee for Statutory Law and Warranty Claim Holders.

If the government doesn't step in and assist consumers through the appointment of an Official Committee under the Bankruptcy Code, state lemon laws and the federal Magnuson-Moss Warranty Act aren't worth the paper they're printed on

While it appears that Chrysler is consoling customers on radio and TV ads by saying that all is well and that's it's okay to buy Chrysler cards, in reality the company is playing a high-stakes 'gotcha' game with consumers.

He noted that, although Chrysler's bankruptcy filing indicated that the automaker's warranty and return vehicle obligations would be assumed, pending settlements are not being honored, and that Chrysler intends to challenge lemon law and breach of warranty claims as unsecured claims that will receive little, if any, recovery in the Chrysler Chapter 11 case. Last Friday, Lemberg received an email from Chrysler's consumer claims counsel for the Northeast, which read in part:

"All settlement checks in our possession should not be mailed because they will not be honored by Chrysler's bank. All checks that have bounced will not be replaced nor honored. If you have a specific client with whom Chrysler had agreed to repurchase the vehicle and the vehicle is no longer in your client's possession and the checks have bounced, I can attempt to unwind the transaction and at least get the car back in your client's possession (maybe)."

Lemberg is incensed that Chrysler seemingly has no intention of honoring its pre- and post-bankruptcy commitments, and has called on the U.S. Trustee to step up and appoint an official committee to ensure consumers are protected. "In these difficult economic times, consumers who are targeted to receive little or nothing for their claims can't afford to retain bankruptcy attorneys to represent their interests in Chrysler's proceedings, yet every other entity with a significant interest is represented by counsel" he said. "The U.S. trustee must fill this gaping hole by forming a committee for Statutory Law and Warranty Claim Holders."

Lemberg noted that people shouldn't be burdened with paying car loans on defective vehicles that they can't drive. "If the government doesn't step in and assist consumers through the appointment of an Official Committee under the Bankruptcy Code, state lemon laws and the federal Magnuson-Moss Warranty Act aren't worth the paper they're printed on," he said. Lemberg concluded, "While it appears that Chrysler is consoling customers on radio and TV ads by saying that all is well and that's it's okay to buy Chrysler cards, in reality the company is playing a high-stakes 'gotcha' game with consumers."

About Lemberg & Associates, LLC
The attorneys at Lemberg & Associates, LLC are experts in warranty and lemon law, and practice in New York, Connecticut, New Jersey, Massachusetts, Pennsylvania, Maryland, California, and Washington, D.C. Sergei Lemberg can brief you about the impact of Chrysler's bankruptcy filing on consumers, state Lemon Laws, and other protections afforded car owners.

For more information and the full text of the letter to the U.S. Trustee, contact:
Sergei Lemberg
Lemberg & Associates, LLC
www.LemonJustice.com
203.653.2250

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