Report: Chrysler Lemon Law Claim Checks Are Bouncing

As Chrysler's "quick-rinse" bankruptcy progresses, all sorts of nagging little issues are bound to pop out of the woodwork. For instance, what do you think might happen if Chrysler bought your vehicle back under your state's lemon law and you try to go deposit your payout check?

For several buyers in California, the answer is that check's going to bounce, the Los Angeles Times reported today.

Financial claims made before the automaker sought Chapter 11 protection on April 30 can only be paid out with approval of the bankruptcy judge, and says the Times, "Chrysler has not asked for permission to make payments on lemon law complaints."

So what recourse do you have? File a proof of claim with the bankruptcy court and join the long line of unsecured creditors hoping to collect.

Los Angeles Times