“Often, the first strategy is to deny the claim and hope the consumer goes away.”
The statement comes from Michael Brooks, executive director of the Center for Auto Safety, who recently revealed how some automakers handled a situation after a Pennsylvania couple’s warranty claim was wrongly denied.
According to CBS News, Jamie and Debbie Rekasie’s 2019 Kia Optima comes with a 100,000-mile powertrain warranty. But when the engine failed at 80,000 miles, the couple said the automaker insisted the car had not been properly maintained and denied their warranty claim(1). The Rekasi, on the other hand, believe their vehicle has been properly maintained, and they have the receipts to prove it.
This story points to a worrying development, as many vehicle owners may not realize that their warranty claims may be denied due to reasons such as insufficient documentation or consumer protection laws being on their side. Here’s what you need to know about your rights under federal warranty laws and how to challenge a denied vehicle warranty claim.
As they explained to CBS News, the Rekasasi believe they are doing everything right when it comes to maintaining their vehicles.
“I have a record,” Jamie said. “Fourteen oil changes, two sets of brakes, two sets of tires.”
However, Kia reportedly refused to pay for the replacement engine even after the Rekasi couple provided receipts. The couple’s son, a mechanic, performed an oil change on the car, but Kia claimed the receipt it provided did not include the vehicle’s VIN number or odometer reading, causing the automaker to deny the warranty claim due to insufficient information.
Kia also said the oil change the couple received violated its coverage policy; as the company revealed to CBS News, Kia only approves home oil changes if the receipt lists the vehicle’s mileage, date, oil quantity and oil filter.
The Magnuson-Moss Warranty Act is a federal law designed to protect consumers of a variety of products, including vehicles (2).
Its purpose is to ensure that manufacturers fairly honor their warranties, and even provides that if a consumer sues a company for failing to honor its warranty, the manufacturer must also pay the consumer’s attorney fees if the case is successful(3).
According to Brooks, this law makes it illegal for a manufacturer to deny a warranty claim on a car for home maintenance or work by an independent mechanic as long as proper procedures and good record-keeping practices are followed (1). Additionally, Brooks said the onus is on the automaker to prove that a lack of maintenance was the cause of the car’s failure and claim denial.
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Additionally, every state has “lemon laws” or consumer protection laws that ensure that people who purchase a defective vehicle have the right to have it repaired during the vehicle’s warranty period.
For example (4), the Pennsylvania Auto Lemon Law states, “The manufacturer must repair or correct at no charge to the purchaser any defect that substantially impairs the use, value, or safety of the vehicle that occurs within one year after delivery, or 12,000 miles of use, or the terms of the manufacturer’s express warranty, whichever occurs first.”
While not every driver will be in a situation like Rekasie’s, it’s important to understand your rights and responsibilities before your car breaks down.
To do this, car owners must always keep detailed records of car maintenance and not put off any routine maintenance tasks, such as oil changes or tire rotations.
If a breakdown occurs, your manufacturer may want to know the last time a mechanic inspected your car, and may want to review any receipts you may have to prove that proper maintenance procedures were followed. When you go to a mechanic, be sure to ask for detailed records of the work done.
If you’re already struggling with a warranty claim being denied, you have a few options. First, ask the manufacturer for the details of the denied claim in writing, then you can share this report with your mechanic to get a second opinion. If the mechanic disagrees with the manufacturer’s decision, request a written report and use it to appeal to your vehicle’s manufacturer (5).
You can also contact a local attorney who handles these types of cases and file a report with your state’s attorney general if the manufacturer denies your appeal.
While it’s impossible to predict whether a potential warranty claim will be denied, you can make it as difficult as possible by familiarizing yourself with your coverage, including extended warranties, and knowing what situations to avoid in order to stay within your policy.
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CBS News (1); Federal Trade Commission (2); Weisberg Consumer Law Group (3); Pennsylvania Department of Transportation (4); Car Talk (5).
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.