Has anyone noticed that consumers have little protection, and we often end up paying the price for it?
When auto warranties expire, manufacturers can stop making parts, leaving some vehicles unrepairable. Aftermarket companies aren’t required to step in either, leaving car owners stranded. I personally spent over $15,000 on a 2016 Jeep, only to find it unfixable and forced into buying a new car, which cost me my home and left me homeless for a time.
When lenders violate contracts, there’s little recourse unless you sue them, and finding lawyers for lender liability cases is difficult. Meanwhile, financial institutions have plenty of legal representation. Even federal agencies like the CFPB and FTC only forward complaints without truly helping individual consumers.
Why is it called “consumer protection” if it only works for large groups, like in class action lawsuits? State and federal agencies might take administrative action against wrongdoers but don’t help consumers recover their money.
This is just a surface-level look at the lack of consumer protection. Despite state and federal laws, individual consumers often have no real recourse, and we shouldn’t have to bear the costs of fraud.
1. Extend Manufacturer Part Supply Requirements
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Legislation mandating part availability: Require auto manufacturers to continue producing essential parts for a minimum period (e.g., 7 years) after discontinuing a vehicle model.
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Partnerships with aftermarket suppliers: Encourage or mandate collaboration with aftermarket parts manufacturers to ensure continued supply after the manufacturer halts production.
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Stricter penalties for non-compliance: Impose harsher penalties on auto manufacturers that fail to provide replacement parts or repairs within a reasonable timeframe.
3. Consumer Restitution and Compensation
- Consumer restitution fund: Mandate that both state & federal Establish a state or federal fund to compensate individuals affected by fraud or defective products, with funding derived from penalties levied on companies that violate consumer protection laws.
- Mandatory refunds or replacements: Require companies found guilty of fraud or non-compliance with regulations to offer full refunds or product replacements to affected consumers.
4. Stronger Aftermarket Regulations
- Mandated aftermarket support: Ensure that third-party aftermarket parts companies are obligated to continue producing parts after a vehicle’s warranty period ends, or facilitate partnerships between manufacturers and aftermarket firms.
5. More Robust Enforcement by Federal Agencies
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Increased authority for agencies like the CFPB and FTC: Empower agencies to take stronger action in individual cases, including issuing fines and forcing companies to compensate consumers.
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Mandatory follow-up investigations: Require agencies to thoroughly investigate consumer complaints and take meaningful action rather than simply forwarding complaints to the company.
6. Improved Legal Resources for Consumers
- Lender liability reform: Introduce legislation to level the playing field by providing more resources for individuals pursuing legal action against lenders.
7. Increased Transparency and Accountability
- Mandatory disclosure requirements: Require companies to inform consumers when they plan to discontinue parts production and provide viable alternatives.
- Consumer access to surety bonds: If a company is found guilty of defrauding consumers, allow individuals to claim compensation through the company’s surety bond.
8. Mandatory Insurance for Auto Manufacturers
- Insurance-backed warranties: Require auto manufacturers to carry insurance to cover repair costs if they fail to provide parts for vehicles they’ve manufactured, ensuring that consumers aren’t left stranded with unrepairable cars.
9. Enhanced Consumer Protection Laws
- Broader anti-fraud statutes: Strengthen consumer protection laws at both state and federal levels to specifically address fraud in the auto industry, finance, and other sectors.
- Improved recourse for individual complaints: Create avenues for consumers to file claims and seek compensation for individual losses due to fraud or defective products without needing to join class-action suits.
10. Regular Monitoring and Reporting
- Annual reporting requirements: Implement mandatory reporting for auto manufacturers on part availability and recall effectiveness, to ensure that parts remain available for a set time after a vehicle’s release.
- Third-party audits: Require periodic third-party audits of auto manufacturers to ensure compliance with part supply regulations and consumer safety standards.
By implementing these measures, both state and federal governments could provide more comprehensive protections for consumers, preventing situations where individuals are left without recourse or facing heavy financial burdens due to manufacturer or lender failures.
In 2024 alone between just these two instances I have lost over $227k in a lack of consumer protections. It’s no wonder I lived in a rv with no septic for a time and finally had to take a loan out to address this, thus no longer being considered homeless…and all for the sake of lack of consumer protection. Having been a homeowner of several homes throughout the years to living in an rv on land, all due to lack of consumer protection…this is not the American dream.
And this is part of where I also do not agree with parts of the Chevron deference because in this case, it’s an absolute failure when states do nothing and the federal can’t do anything.
I think there needs to be some kind of guideline where we as individuals also get representation via consumer protection. i.e. if the perpetrator costs the consumers money, the states or fed govt should have a rule that the state or fed govt make it a requirement of these companies to pay it back, vs us having to spend thousands on attorney fees, paying for consumer protection…that or just do away with it.