Indiana Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Indiana's lemon law covers self-propelled vehicles under 10,000 pounds sold to buyers in Indiana and intended for highway use (not conversion vans, motor homes or farm tractors). The "term of protection" ends 18 months after delivery or at 18,000 miles, whichever comes first; defects reported in that time must be repaired even after it ends. A reasonable number of attempts is considered made if the defect was repaired at least four times and still exists, or the vehicle was out of service for repairs at least 30 business days and the defect still exists. If the defect cannot be corrected, the manufacturer must take the vehicle back and, at the buyer's option, within 30 days refund the full contract price (minus a reasonable allowance for use) or provide a comparable replacement, and must reimburse necessary towing and rental costs.

A consumer may cancel a home consumer transaction with a cash price of $25 or more by giving the supplier written notice before midnight of the third business day after the later of when the supplier gives the required cancellation notice or when the parties finally agree to the contract. The supplier must give two copies of a separate written notice, in at least 10-point bold type, explaining the right and how to cancel.

The Indiana Deceptive Consumer Sales Act (Ind. Code § 24-5-0.5) prohibits deceptive acts in consumer transactions. A consumer who relies on an uncured or incurable deceptive act may sue for actual damages or $500, whichever is greater; for a willful deceptive act, the court may increase damages up to the greater of three times actual damages or $1,000, and may award reasonable attorney's fees to the prevailing party. This private remedy generally does not apply to real estate transactions or construction-defect claims.

Indiana's price-gouging law covers fuel. During a declared emergency (and the 24 hours before the Governor's declaration), it is price gouging to charge a consumer an unconscionable amount for fuel, meaning a price that grossly exceeds the average price in the retailer's trade area during the 7 days before the declaration and is not due to the retailer's costs (such as replacement, tax and transportation costs). The Attorney General investigates price gouging complaints.

It is a deceptive act for a credit services organization to charge or receive payment before fully performing its services unless it has a surety bond or irrevocable letter of credit, to charge for referrals to lenders offering ordinary terms, or to make or advise false or misleading statements about a buyer's creditworthiness to a credit bureau or creditor. A license from the Department of Financial Institutions is required to operate a debt management company in Indiana.

Under the Home Improvement Contracts Act, a real property improvement contract (to alter, repair or modify residential property) for more than $150 must be provided to the consumer in completed form before signing and must include required details, such as the supplier's name, address and contact information and the people to whom problems can be directed. The supplier must give the consumer a fully signed and dated copy immediately after signing. Violations are deceptive acts actionable by the Attorney General or the consumer under the Deceptive Consumer Sales Act.

A database owner must notify Indiana residents whose unencrypted personal information (or encrypted information with the key) was or may have been acquired by an unauthorized person, if it knows or should know the breach could result in identity deception, identity theft or fraud. Notice must be made without unreasonable delay and no more than 45 days after discovering the breach, with limited reasonable delays (to restore the system, determine the scope, or at law enforcement's or the Attorney General's request). The Attorney General must also be notified, and if more than 1,000 consumers are notified, the consumer reporting agencies too.

File an online Consumer Complaint (also available in Spanish) with the Attorney General's Consumer Protection Division. Separate online forms exist for licensing enforcement, homeowners protection (home improvement and mortgage), gas gouging, identity theft and do-not-call complaints. The division mediates and investigates consumer complaints against businesses, but by state law cannot act as an individual's private attorney or give legal advice.

1) Written notice: the buyer must first notify the manufacturer of a claim if the manufacturer clearly disclosed in the warranty or owner's manual that written notice of the defect is required before a refund or replacement, and gave the name and address to send it to. If the manufacturer did not make that disclosure, the buyer does not have to notify it. 2) Final repair attempt: no separate final-repair step is described. 3) Arbitration: Indiana has no state-run lemon law arbitration program. The lemon law does not apply to a buyer who has not first used a manufacturer's informal dispute program if the Attorney General has certified it as fully complying with federal rules (16 C.F.R. Part 703) and state certification rules, and the buyer received adequate written notice of it (for example, in the written warranty). 4) Deadline: a lawsuit must be started within 2 years after the buyer first reports the defect to the manufacturer, its agent or authorized dealer; that period is paused while a certified manufacturer program is handling the dispute.