Dear Consumer Ed: 

I purchased a brand new 2012 car, and when I got home I noticed it had been previously damaged and repaired (paint runs/different bolts), which the dealer never disclosed to me. I have talked to the dealer three times since discovering this. They keep saying they will replace the vehicle but refuse to put it in writing. It's been two weeks now. What can I do?

Consumer Ed says: 

There could be two kinds of problems in connection with a new car. First, there could be a defect in the car that occurred during the manufacturing process. In that case, you would be protected under the Georgia Lemon Law. However, it doesn't sound as though that's what your issue is. It sounds as though you're dealing with damage to the car that happened after the car got to the dealership.  A dealer is required by law to inform the buyer of any damage to a new vehicle that the dealer is aware of, if the cost to repair it was more than 5 percent of the manufacturer's suggested retail price of the car.  The dealer is also required to disclose any damage to the paint that he is aware of which costs more than $500 to repair.  On the other hand, a dealer is NOT required to disclose damage to glass, tires, wheels, bumpers, radio, or in-dash audio equipment, regardless of cost, so long as the item is replaced with original or comparable equipment. If a dealer does not follow these disclosure requirements he is in violation of Georgia’s Fair Business Practices Act.

If you think the dealer violated the law, you should speak with an attorney.  In addition, you can file a complaint with the Governor’s Office of Consumer Protection at www.consumer.ga.gov or by calling 404-651-8600 or 1-800-869-1123.

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Dear Consumer Ed:

I wrecked my car and it needs major body work. I saw an advertisement for an auto body shop that said they would pay my insurance deductible.  Is that legal?

Consumer Ed says: 

While having the auto body shop pay for your insurance deductible might not be illegal at face value, we would strongly caution you against it.  First, you should look carefully at the specific terms of the contract you have with your insurance provider.  Allowing the auto body shop to pay the insurance deductible may violate the terms of your policy (frequently, insurance contracts state that the policy holder must pay the deductible).  Also, it is likely that the auto body shop will want to recoup the extra cost of the deductible somehow.  It can do this in one of two ways:  by charging the insurance company more than what the repairs would actually cost, which would constitute insurance fraud; or, by spending less money and time on repairing your car, which could lead to more problems in the future (as well as a depreciation of the value of your car). Or, it could do a combination of both of these things. The fact that a practice may not technically be illegal doesn’t make it a good idea, especially if it’s an offer that seems too good to be true!

For more information, you should contact Georgia’s Office of Insurance and Safety Fire Commissioner by visiting www.gainsurance.org, or by calling 800-656-2298.

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Dear Consumer Ed:

My brother wrecked his car on a state highway and was taken to the hospital by ambulance. Thankfully, he is okay.  His car ran off the road onto private property and was towed by a firm that the police called.  The tow company charged over $400 to tow the vehicle three miles. Who allows towing companies to charge this much?

Consumer Ed says: 

For regulating purposes, Georgia law divides the towing industry into two categories:  consensual and nonconsensual. Consensual towing is when the owner of the vehicle authorizes the towing service.  Typically, towing is consensual when you are involved in an accident.  The State does not specifically regulate this type of towing.  Instead, counties and municipalities have the authority to enact ordinances to regulate consensual towing services.  Therefore, you should check the local ordinances for the county or municipality where the vehicle was towed.

In contrast, the Georgia Public Service Commission (PSC) regulates nonconsensual towing from private property.  Nonconsensual towing occurs when an improperly parked or trespassing vehicle is towed from private property without the consent of the vehicle owner.  Georgia law requires a license to engage in nonconsensual towing.  Additionally, the PSC requires that signs be posted at each designated entrance of the property to lawfully tow a vehicle without the owner’s consent.  These signs must include the following information: warning that unauthorized vehicles will be towed at the owner’s expense; wrecker service name, address, and telephone number; towing fees and daily storage fees; hours of operation; and an acceptable method of payment.  Georgia law prohibits businesses offering nonconsensual towing services from charging the owner of a towed vehicle more than the maximum rates published in the Nonconsensual Towing Maximum Rate Tariff.  The PSC prescribes these rate caps, however, counties and municipalities can further limit the maximum rates charged for nonconsensual towing services.

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