Go Back   DealershipForum.com > Regional Forums > Southwest Region > Automotive Discussions

Notices

Reply
 
Thread Tools Display Modes
Old 02-28-2008, 11:30 AM   #1
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default California to establish fund for victims of Bankrupt Dealerships

According to Consumer Reports, the State of California is setting up a fund to assist consumers that are victims of Bankrupt Dealerships. The fund will be established to assist owners in situations where a dealership has failed to pay-off a lien on a trade-in vehicle and then goes bankrupt.

The report indicates that the problem is so widespread that it has affected hundreds of California consumers for millions of dollars.

Here's a link to the story: http://blogs.consumerreports.org/mon...ans_payof.html

A couple of questions for the California Dealers:
Is the problem really that widespread?
Where is the State going to get the money for the fund?
XDCX is offline   Reply With Quote
Old 03-19-2008, 01:31 PM   #2
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default Dealers are paying for the Bankruptcy Protection Fund

I guess that this shouldn't be a big surprise, I just read a report indicating that the dealers are paying for the Bankruptcy Protection Fund.

Apparently the law requires that the dealers pay $1 per vehicle sale to a maximum of $2500/year until the Fund reaches $5 Million. The law, which will go into effect in July, also stipulates that the dealers cannot pass this fee along to the consumer.

Here's a copy of the news report: http://www.insidebayarea.com/trivall...ews/ci_8623348
XDCX is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Four GMC Pontiac Buick Dealerships close in Northern California XDCX Automotive Discussions 10 02-26-2009 04:31 PM
40% of GM Dealers could fail if GMAC goes Bankrupt XDCX Sales 1 12-14-2008 10:50 PM
Doing business with a bankrupt dealer? XDCX Automotive Discussions 10 10-15-2008 10:34 AM
Public Dealerships -vs- Private Dealerships XDCX Automotive Discussions 11 07-24-2008 10:25 AM


All times are GMT -7. The time now is 01:00 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016