Since the 1980’s, the NHTSA has been allowing a type of recall which lets automobile manufacturers restrict notices and repairs to a few states rather than making them nation wide. These “Regional Recalls” are usually due to the defect becoming a problem because of environmental conditions such as hot and cold climates or because of corrosion caused by road salt used in certain areas. Regional recalls can save automakers money, but consumer advocates have complained for years that because people are moving more frequently and driving in many different conditions, affected vehicles can be missed. Continue reading

The National Highway Traffic Safety Administration (NHTSA) faced criticism during a consumer protection subcommittee last week as Senator Clair McCaskill questioned the agencies effectiveness in protecting consumers from defective automobiles. Deputy Administrator, David Friedman was grilled about the agencies roll in the delay of General Motors’ recalls, including defective ignition switches which have been linked to 20 deaths. Continue reading

Customer satisfaction campaigns, also known as secret warranties or silent recalls, is a practice used by automobile manufacturers to correct relatively minor issues that could affect driver’s comfort or the vehicle’s appearance. Instead of dealing with thousands of customers, the manufacturer deals with complaints on a case by case basis. In many cases, those who are unaware that a satisfaction campaign exists, end up paying for the manufacturing mistake. Continue reading

Predatory lending is unfair, deceptive, or fraudulent lending practices, usually backed by collateral that can be repossessed or foreclosed on if the borrower defaults on their loan. Lenders are often accused of tricking the borrower into thinking that their interest rate is lower than it actually is and that they will be able to repay the loan. Although predatory lenders tend to target the less educated, the poor, racial minorities, and the elderly, anyone can be a victim of this practice. Predatorial lending may not always be illegal, but it can leave victims with bad credit and unmanageable debt. Continue reading

A consumers report published this month could have some Tesla Model S drivers wondering if their cars could be lemons. When ConsumerReports.org first tested the Model S, they described the vehicles as a revolutionary car from an innovative automaker. In May 2013, they gave the Model S a score of 99 %, receiving a Consumer Reports’ recommendation. But over the last 15,743 miles, their test car developed some minor problems. These problems include: Continue reading

According to a report in the New York Times, the city hopes to implement legislation that will address the problem of vehicles being sold with unfixed recalls on them. Federal legislation to address the problem has been stalled in Congress for years as dealers say it would cost companies and consumers unnecessary time and expense to implement the guidelines. Continue reading

Federal regulators are putting pressure on Chrysler to accelerate production of trailer hitches needed to repair an estimated 1.6 million Jeep SUV’s. In June 2013 Chrysler and the NHTSA reported that the fuel tanks in these vehicles are more susceptible to leaks and fire during certain rear impact accidents because of the location of the tank behind the rear axle, slightly below the rear bumper. Chrysler’s repair of installing a trailer hitch for extra protection has been approved by the NHTSA despite criticisms from consumer advocates who say that hitches will only incrementally improve the performance in certain low speed rear impacts. The initial Jeep recall involved approximately 2.7 million vehicles, but Chrysler says that, given the age of some of them, only about 1.6 million remain on the road. Continue reading