“Often the first tactic is to deny the claim and hope the consumer disappears.”
That statement comes from Michael Brooks, executive director of the Center for Auto Safety, who recently shed light on how automakers deal with warranty claims after a Pennsylvania couple was mistakenly denied their warranty claim.
As CBS News reports, Jamie and Debbie Rekasie’s 2019 Kia Optima came with a 100,000-mile powertrain warranty. But when the engine failed at 80,000 miles, the couple says the automaker insisted the car had not been properly maintained and denied their warranty claim (1). Rekasies, on the other hand, believes their vehicles are properly maintained and they have the receipts to prove it.
This story marks a worrying development; Because many vehicle owners are probably unaware that warranty claims can be rejected for 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 law and how to appeal a denied warranty claim for your vehicle.
As they explained to CBS News, the Rekasies believe they’re doing everything right when it comes to vehicle maintenance.
“I have records,” Jamie said. “Fourteen oil changes, two sets of brakes, two sets of tires.”
However, after Rekasies provided the receipts, Kia reportedly still refused to pay for the engine replacement. The couple’s son, a mechanic, performed oil changes on the car, but Kia claimed the receipts provided did not include the vehicle’s VIN number or odometer reading; This led the automaker to deny the warranty claim due to insufficient information.
Kia also stated that the oil changes the couple received were against its own coverage policy; As the company shared with CBS News, Kia approves at-home oil changes only if receipts indicate the vehicle’s mileage, date, amount of oil and oil filter.
The Magnuson-Moss Warranty Act is a federal law designed to protect consumers for a variety of products, including vehicles (2).
It is designed to ensure that manufacturers fairly honor their warranties and even provides that if a consumer sues a company for not honoring the warranty, the manufacturer will also have to pay the consumer’s legal fees if the lawsuit is successful (3).
According to Brooks, this law makes it illegal for a manufacturer to deny a warranty claim because a car was serviced at home or because that service was performed by an independent mechanic, as long as proper procedures and good documentation practices are followed (1). Moreover, Brooks said, the onus is on the automaker to show that lack of maintenance was the reason the car broke down and the claim was denied.
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Additionally, every state has a “lemon law,” or consumer protection law, that ensures that the purchaser of a defective vehicle is entitled to repairs under the vehicle’s warranty.
For example (4), the Pennsylvania Automobile Lemon Law states: “The manufacturer must, at no cost to the purchaser, repair or correct any defect that substantially impairs the use, value, or safety of the vehicle and occurs within one year after delivery or after 12,000 miles of operation or during the period of the manufacturer’s express warranty, whichever occurs first.”
While not every driver faces a situation like Rekasie’s, it’s important to know your rights and responsibilities before your car breaks down.
To this end, it is important that vehicle owners always keep detailed records of their vehicle’s maintenance and do not postpone routine maintenance tasks such as oil changes or tire rotations.
In the event of a breakdown, your manufacturer will likely want to know when your car was last inspected by a mechanic and will likely want to see any receipts you have proving that proper maintenance procedures were performed. When you go to the mechanic, be sure to request a detailed record of the work performed.
If you’re already dealing with a denied warranty claim, you have a few options. First, ask the manufacturer in writing for the details of the denied claim, and then you can share that report with a mechanic for a second opinion. If the mechanic disagrees with the manufacturer’s decision, request a written report and use it to appeal the decision with your automaker (5).
You can also talk to a local attorney who handles these types of cases and file a report with your state’s attorney general’s office if the manufacturer rejects your appeal.
While there’s no way to predict whether a potential warranty claim will be denied, you can make this as difficult as possible by becoming familiar with your coverage, including extended warranty, and understanding what you need to avoid to stay within your policy’s limits.
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We rely only on vetted sources and reliable third-party reports. For details, see editorial ethics and guidelines.
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 construed as advice. It is provided without any warranty.
