Lemon law loophole could cost you thousands

PROVIDENCE, R.I. (WPRI) -- Eyewitness News has uncovered a lemon law loophole that could cost you thousands. It's an issue with used cars that's so big, two state lawmakers are stepping up to change the law.

In this economy, a lot of people buy used cars. But we've been hearing from many of you who claim those cars end up breaking down just days or weeks later. The state's lemon law is designed to help protect you, but we've discovered a big difference in how the law protects those who buy new, and those who buy used. If you think you've bought a lemon the only way you can get recourse, if the dealer won't help you, is to hire an attorney, go to court and hope you win.

• Interactive: Is Your Vehicle a Lemon?
• More: Call 12 For Action Consumer Guide

It didn't take Eyewitness News long to track down three frustrated used car buyers who say they got lemons. "It's disheartening," says Melvin Crum of Providence. Plain and simple, Ronald Boone of Providence says, "I have a lemon."

All three people believe they bought lemons, and are fighting to get their money back from the dealers that sold them the cars. But it's not that easy.

Rhode Island does have a lemon law. A new vehicle qualifies if within one year or 15,000 miles the car has been serviced four times for the same defect. The dealer or manufacturer must refund the full contract price of the car or give the consumer a comparable vehicle. The Attorney General's office handles new car lemon law complaints at no cost to you.

A used vehicle qualifies if it's been in for service three times for the same defect within its dealer warranty period , or if it's out of service for 15 days. The dealer is then by law required to take the car back and refund the full purchase price. And for used car lemon law complaints, according to the Attorney General's office, if a dealer fails to honor a warranty, "consult an attorney." That means you have to use your own money to prove the case.

"I don't think it's fair," says Ronald Boone. "Because not a lot of people have money to go to court. I have to raise money and I'm out working two jobs dealing with this particular dealership."

Eyewitness News brought this lemon law loophole to the attention of lawmakers. Representative Chris Blazejewski of Providence and Representative Charlene Lima of Cranston agree; used car buyers should have the same protections as new car buyers.

"It seems to me that hearing from my constituents," says Blazejewski, "and hearing from the folks that are making complaints, and your hard work have brought up, that we need to take a serious look at this and see if we can't move things forward at the state level."

Right now the two are drafting legislation to close this lemon law loophole for good. As the used car lemon law stands now, if you win your case in court, the dealer may be ordered to pay you back any attorney fees. But they have four years to do it.

Helpful Links:

• RI Used Car Lemon Law
• RI Attorney General's Lemon Law Definitions
• Consumer Rights if Dealer Does Not Show Warranty
• Mass. Used Car Lemon Law