THE DANDELION CONNECTION
Ellicott Square Building., 295 Main Street Room 495, Buffalo, New York 14203
(716) 847-0655 ext. 402  www.nls.org

In this issue:
New York's Lemon Law
Tax exemptions for Homeowners
Community spotlight: Society of Saint Vincent DePaul
  “Back on Track” Program
Earned Income Tax Credit
Student loans

        The New Car Lemon Law (General Business Law §198-a) provides a legal remedy for consumers who are buyers or lessees of new cars and certain used cars that turn out to be lemons. If the car does not conform to the terms of the written warranty and the manufacturer or its authorized dealer is unable to repair the car after a reasonable number of attempts during the first 18,000 miles or two years, whichever comes first, the consumer can choose a full refund or a comparable replacement car.

        The law covers both new and used cars, including “demos,” which satisfy the following 4 conditions:

1. The car was covered by the manufacturer's new car warranty at the time of original delivery; and

2. The car was purchased, leased or transferred within the earlier of the first 18,000 miles or two years from the date of original delivery; and

3. The car either: (a) was purchased, leased or transferred in New York, or (b) is presently registered in New York; and

4. The car is primarily used for personal purposes.

        A car is primarily used for personal purposes when its principal use is for personal, family or household purposes. Such purposes include, using the car for household errands or to drive to and from work. A car may be used for both personal and business use provided that the personal use is predominant (more than 50% of the usage).

        Motor homes are also covered under the law, except as to defects in systems, fixtures, appliances or other parts that are residential in character. However, motor home complaints are subject to special notification requirements.

        Motorcycles and off-road vehicles are not covered by the law.

        The law covers only those leased cars where the lessee is responsible for repairs of the car.

        Yes, provided the car is primarily used for personal, family or household purposes.

        With respect to those covered cars sold and registered in New York, the law imposes a duty upon the manufacturer to repair, free of charge and without any deductible, any defect covered by warranty, if the consumer notified the manufacturer or its authorized dealer of such defect within the first 18,000 miles of operation or two years from the original delivery date, whichever comes first. Once timely notice of the defect is given, the manufacturer may not charge for the repairs, regardless of when the repairs are performed. Any consumer who has been charged for such repairs or a deductible during such period should contact the Attorney General's office.

        The consumer should immediately report any defect or “condition” either directly to the manufacturer or to its authorized dealer. A “condition” is a general problem, such as a difficulty in starting, repeated stalling, or a malfunctioning transmission, that can result from a defect of one or more parts. If the consumer reports the problem to the dealer, the law requires the dealer to forward written notice to the manufacturer within seven days. Under the law, notice to the dealer is considered notice to the manufacturer.

        Unless otherwise advised by their lawyer, consumers should continue to make their monthly payments if the car is financed or leased. Failure to do so may result in a repossession which may adversely affect a consumer's lemon law rights.

        If the dealer refuses to make repairs within seven days of receiving notice from the consumer, the consumer should immediately notify the manufacturer in writing, by certified mail, return receipt requested, of the car's problem and that the dealer has refused to make repairs.

        The manufacturer or its authorized dealer must commence repairs within 20 days from receipt of the consumer's notice of the dealer's refusal to make repairs.

        If the problem is not repaired after a reasonable number of attempts, or the manufacturer or the dealer refuses to commence repairs within 20 days from the manufacturer's receipt of the “refusal to repair” notice from the consumer, and if the problem substantially impairs the value of the car to the consumer, the manufacturer, at the consumer's option, must either refund the full purchase or lease price, or offer a comparable replacement car.

        It is presumed that there have been a reasonable number of attempts to repair a problem if, during the first 18,000 miles of operation or two years from the original delivery date, whichever comes first, either: (1) the same problem has been subject to repair four or more times and the problem continues to exist; or (2) the car is out of service by reason of repair of one or more problems for a cumulative total of 30 or more calendar days and the problem continues to exist.

        The manufacturer does not have a duty to make a refund or provide a replacement car if: (1) the problem does not substantially impair the value of the car to the consumer, or (2) the problem is a result of abuse, neglect or unauthorized alteration of the car.

        The consumer must be able to document repeated repair attempts. Therefore, it is very important to keep careful records of all complaints and copies of all work orders, repair bills and correspondence. A dealer is required by Department of Motor Vehicles (DMV) regulations to provide a legible and accurate written work order each time any repair work is performed on a car, including warranty work. Consumers may contact the DMV in Albany at 518-474-8943 if they have a problem obtaining their repair orders.

        The refund should include the price of the car (cash plus trade-in allowance), including all options, plus title and registration fees and any other governmental charges, less any lawful deductions.

        The manufacturer may deduct an amount for mileage in excess of the first 12,000 miles. No deductions may be made for the first 12,000 miles of use. The law states that such deduction shall be calculated by taking the mileage in excess of 12,000 miles times the purchase (or lease) price, divided by 100,000. For example, if a defective car has 15,000 miles on its odometer and cost $10,000, the deduction for use would be $300 (3,000 multiplied by $10,000 divided by 100,000). In addition, a reasonable deduction may be taken for any damage not due to normal wear.

        The refund by the manufacturer is the same whether the car was financed or not. However, when the car is financed, instead of the entire refund going to the consumer, the refund must be divided between the consumer and the lender (the bank or finance company). Generally, the lender will calculate how much is still owed by the consumer and apply the refund to that amount. The balance of the refund will then go to the consumer.

        When the car is leased, the refund due from the manufacturer is divided between the consumer/lessee and the leasing company (the company to which the consumer makes lease payments) according to a formula provided by the law. The lease price to be refunded to the consumer/lessee is the total of the lessee's down payment (including any trade-in allowance) plus the total of monthly lease payments, minus interest charges and any other service fees. For example, suppose that a consumer leases a new car under a three-year lease, makes a $1,500 down payment, and pays a monthly lease payment of $300. Of the $300 monthly payment, $75 is allocated as interest charges. After making twelve monthly payments, the lessee is granted a refund under the lemon law. The refund will be $4,200 calculated as follows:

Deposit . . .                                       $1,500
= Monthly Payments                         $3,600
(12X300)                                         $5,100
- minus interest (12X75)                        900
Total Refund                                    $4,200

If the monthly payment includes other service fees, such as insurance or other costs, paid for the benefits of the lessee, such amounts will be deduced from the lessee's refund. The leasing company's portion of the refund is the balance of the “lease price,” as that term is defined by the law.

        Once a determination has been made under the lemon law that a car is a lemon, the lease is terminated. As a result, no early termination penalties under the lease may be collected.

        State and local sales taxes are refunded directly by the New York State Commission of Taxation and Finance who will determine the appropriate amount to be refunded under the law. Consumers must complete and submit an “Application for Refund of State and Local Sales Tax” (Form AU-11) to the New York State Department of Taxation and Finance, Central Office Audit Bureau - Sales Tax, State Campus, Albany, N.Y. 12227. (Such form may be obtained through the manufacturer or directly from the Commissioner of Taxation and Finance.) A consumer has three years from the date a refund is received from the manufacturer to apply for the tax refund.

        Appellate courts have ruled that the lemon law does not entitle a consumer who elects to receive a “comparable replacement vehicle” instead of a refund, to receive a new vehicle. Rather, the consumer is entitled to receive a car of the same year and model and which has approximately the same mileage as the car being replaced.

        A consumer has the choice of either participating in an arbitration program or suing the manufacturer directly in court. If a manufacturer has established an arbitration procedure which complies with federal regulations and the state's lemon law, the manufacturer may refuse to provide a refund until the consumer first participates in such procedure or in the state-run arbitration program. Any action under the lemon law must be commenced within four years of the date of original delivery.

        An arbitration proceeding is much less complicated, time consuming and expensive than going to court. The arbitration hearing is informal and strict rules of evidence do not apply. Arbitrators, rather than judges, listen to each side, review the evidence and render a decision.

        Consumers may participate in the New York State Lemon Law Arbitration Program (“New York Program”), established by the lemon law. The New York Program is administered by the New York State Dispute Resolution Association (“NYSDRA”) under regulations issued by the Attorney General . Decisions under the New York Program are binding on both parties. Consumers may also choose to participate in arbitration programs established by auto manufacturers. Decisions under manufacturer programs are not binding on consumers. Consequently, consumers who have gone through the manufacturer's program and are not satisfied may still apply for arbitration under the New York Program. However, any prior arbitration decision may be considered at any subsequent arbitration hearing or court proceeding. The law permits manufacturers to require that consumers first participate in the manufacturer's program, if it complies with federal regulations and the state's lemon law, before suing in court for relief under the lemon law.

        A consumer must first complete a “Request for Arbitration” form, which may be obtained from any of the Attorney General's regional offices. The completed form must be returned to the Attorney General's New Car Lemon Law Arbitration Unit, Office of the Attorney General, 120 Broadway, New York, New York 102171.

        The Lemon Law adds to the consumer's arsenal of existing legal remedies

        Any contract clause which seeks to waive a consumer's rights under the Lemon Law is void.

        A used car buyer must be given a written, conspicuous disclosure statement by the dealer reading:

IMPORTANT: This vehicle was returned to the manufacturer or dealer because it did not conform to its warranty and the defect or condition was not fixed within a reasonable time as provided by New York law.

This disclosure must also be printed on the car's certificate of title by the New York State Department of Motor Vehicles.

Do any of these homeowner tax exemptions apply to you? Make sure you are getting all the exemptions that you may be entitled to!

You have served on active duty during a period of war. (Reservist annual active duty for training purposes does not apply.)

• 15% exemption for service in other than a war zone
• 10% additional exemption for service in a combat zone or as the recipient of an expeditionary medal.
• Service connected disability: one-half of the percent of disability verified by the Veteran's Administration.

Senior Citizen Exemption ( 467)

• All owners must attain 65 years of age prior to December 31

Exemption for Persons with Disabilities and Limited Income (RPTL 459c)

• Must be Primary residence of disabled person
• Must be owner of dwelling or hus band/wife or sibling of owner
• All income for calendar year 2002 must be less than $29,900.00
• Must be disabled as determined by the Social Security Administration, or Railroad Retirement Association, or Certified as legally blind by the Blind Administration.

Basic STAR Exemption

• No age restriction No income restriction Must be the owner
• Must be the primary residence

Enhanced STAR Exemption

• All owners must be 65 years of age prior to December 31
• Exception: husband/wife or siblings
• Must be the owner (no length of time restriction)
• Must be primary residence only
• income from all owners cannot ex ceed $63,750.00

EIC (Earned Income Credit) is a tax credit for people who worked in 2003, but who don't earn high salaries.

• If you qualify, you could reduce or eliminate your income taxes – or even get money back, if you owe no tax
• You may be eligible, even if you've never paid taxes or had taxes withheld
  

The answer is YES if you have

*In New York, the State EITC is equal to 30% of the Federal EITC

*The EIC will not count as income or as a resource for public assistance. It will not count as a resource for food stamps as long as it remains identifiable.

Co-Sponsors: D'Youville & Hilbert College

Loss of Self Confidence
Employment Concerns?

Our all-volunteer FREE Confidence Building “BACK ON TRACK” program is available to WNY community. Classes begin in Sept. 2004.

Fran Schmidt, Coordinator, Back On Track-D'Youville College Career Services, 881-7688
Larry Gatti, Assistant Coordinator, Volunteer
Nancy Ann Shatzel, Coordinator-Marketing/Volunteers, Back on Track, D'Youville College, Career Services Center 882-7688
Mark Zirheld, Executive Director, St. Vincent dePaul Society, Inc. 882-9193

Do you need help with student loans?

Did you pay for a vocational school, and never complete the course? Are you delinquent with your payments? Are you in default? Project Dandelion can help.

Income eligible clients can get free advice and assistance. Call to register for one of our free clinics. Clinics are held on the first TUESDAY of every month. Register today. We meet at 2:00 p.m. Call 847-0650 for more information.

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