Lawmakers propose car buyer's act

March 31, 2009 4:17:10 PM PDT
Buyers are concerned about car dealers that go out of business.

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A senate committee in Sacramento started the wheels in motion for a new 'Car Buyer's Protection Act.' The idea is to make sure consumers who trade in their cars and buy warranties get what they paid for.

The bill was sponsored by Senator Ellen Corbett of San Leandro.

"We want to create a situation where consumers know if you trade in a car that has negative equity it's going to be paid off and that will happen before your credit is ruined," said Senator Corbett.

The law would require dealers to pay off liens on trade-ins. and post a $100,000 bond to cover claims. Car dealers oppose the bill saying current laws already protect consumers.

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