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 (Advertiser Talk) 30-Jul-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:


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