Vehicles; dealers; consumer protection
SB 729, c. 437
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SB 729, c. 437: Vehicles; dealers; consumer protection. As of July 1, 2008, creates the Consumer Motor Vehicle Recovery Corporation and the Consumer Recovery Fund, with a board of directors with certain powers and duties, in order to provide payments to consumers on specified eligible claims when a vehicle dealer (1) fails to remit license or registration fees, (2) fails to pay off a trade-in's sale or lease balance owed, or (3) fails to make payment on a consignment sale agreement. Eligible claims include claims where the dealer/lessor has ceased selling or leasing vehicles or is in bankruptcy.
This bill was sponsored by the California District Attorneys Association, and supported by the Automobile Club of Southern California, the California Motor Car Dealers Association, the California State Automobile Association , the Congress of California Seniors , the Independent Automobile Dealers of California, and the Office of the Attorney General.
The author and sponsor of this bill state that often when a dealer or lessor-retailer goes out of business or enters bankruptcy, that dealer or lessor-retailer fails to meet its obligations to the consumer, including failure to pay license and registration fees, balances due on trade-ins, and payments due pursuant to a consignment agreement. This bill creates a consumer restitution fund to address these problems.
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