Louisville Kentucky Lemon Auto Mediation Information

Louisville Kentucky Lemon Auto Mediation Information

 

 
 

 

 

 

 

Louisville Kentucky Lemon Auto Mediation Information

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The Federal Trade Commission has stated that no auto manufacturer  has in place a "mediation program" which complies with Federal minimum  standards. What this means is that the FTC has found that the lemon auto mediation programs are unfair to consumers and that these lemon auto mediations are designed to fail to inform you or give you what the law requires. 

The Kentucky Mediation statute says that either the lemon auto buyer or the car manufacturer can ask for mediation.  Under systems like the BBB, the car manufacturer hires the mediator.  This often leaves the car owner in despair when the buyer invests time and money for a mediation hearing where he can't get a fair offer for his car.  In settlement awards, the BBB often uses a 30 cent or more allowance for mileage, whereas the GM and Chrysler legal offices normally allow 17cents per mile as a deduction.   Other BBB deduction formulas may prorate your car at 100,000 miles and deduct for mileage when cars with 100,000 miles may still have substantial value left.

Mediation can become a stall or "kangaroo" court where the mediator is paid by the car manufacturer to hand down the decision the auto manufacturer determines.  Lemon auto mediators are not judges and mediation is not a trial.  However, if you agree to mediation, the decision may be binding and you may have signed away your right to a full refund for the lemon auto.  

Mediation is not always required to file a car warranty case in Kentucky.  At the mediation stage, you should consult an attorney.  Often the auto manufacturer is only hoping that after time that you will go away in frustration of mediation.   Mediators and mediation rarely recommends a full refund of the auto's purchase price from the manufacturer.