June 24, 2009

Pennsylvania joins 36 states with objections in GM bankruptcy; Attorney General Corbett moves to protect PA consumers & businesses

HARRISBURG - Attorney General Tom Corbett today announced that Pennsylvania has joined with 36 other states in filing objections in the bankruptcy proceedings involving General Motors.

"We have serious concerns regarding the rights of consumers and businesses being impacted by the GM bankruptcy, ranging from 'Lemon Law' claims and warranties to state laws concerning car dealerships," Corbett said.  "It is important that the bankruptcy process not be used to ignore or violate state laws and that all of these issues be addressed before any final court approval of GM's plan."

Corbett noted that the Attorneys General who joined in this filing do not necessarily oppose the planned sale of General Motors, but they have expressed concern that the current agreement is unclear or ambiguous about many important consumer issues, including:

• Lemon Law claims and warranty issues
• Personally identifiable information of consumers
• Workers compensation claims
• Tax claims
• Environmental claims

Additionally, Corbett said that there are serious concerns regarding the methods being used in the termination of dealer franchises, along with the terms that continuing dealers are being forced to accept.

"Pennsylvania law specifically prohibits manufacturers from coercing dealers and allows dealers to formally protest any substantial modifications to their franchise agreements," Corbett said.  "Our community-based businesses are being asked to sign away important protections they have under state laws."

A hearing regarding General Motors is currently scheduled for June 30th, in the United States Bankruptcy Court for the Southern District of New York.

Pennsylvania joined with Arkansas, Arizona, California, Connecticut, Colorado, Delaware, Georgia, Idaho, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North Carolina, North Dakota, New Jersey, New Mexico, Nevada, Ohio, Oklahoma, Rhode Island, Utah, Virginia, Vermont, Washington, and West Virginia in filing the objections.

In addition to the filing in bankruptcy court, Corbett said that the Attorney General's Bureau of Consumer Protection is working closely with similar agencies in other states to monitor other car-related consumer issues, including warranty work and the availability of parts and service as General Motors reorganizes.

"There are millions of General Motors owners who were promised ongoing support for their vehicles and we are working to see that those services continue in the long run," Corbett said. "We encourage consumers to contact us if they are having difficulty with manufacturers honoring "Lemon Law" claims; issues related to factory warranties or problems obtaining parts or factory-authorized services because of changes in dealerships."

Corbett said that consumers with problems or concerns related to vehicle warranties, Lemon Laws, factory service or other related issues can call the Attorney General's Consumer Protection Hotline: 1-800-441-2555 or file an online complaint.