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

Maryland's lemon law covers new passenger vehicles, motorcycles, multipurpose vehicles and trucks with a rated capacity of 3/4 ton or less registered in Maryland; motor homes and fleet purchases of five or more vehicles are excluded. The protection period is the first 18,000 miles or 24 months after delivery, whichever comes first. The consumer must report the defect during that period by written notice to the manufacturer by certified mail, return receipt requested, and give the manufacturer a chance to fix it; repairs must be completed within 30 days of the manufacturer receiving the notice. A reasonable number of attempts is presumed if the same defect was repaired 4 or more times and still exists, the vehicle was out of service for repairs for a total of 30 or more days, or a brake or steering failure was repaired once without bringing the vehicle into compliance with state safety inspection laws. If a defect that substantially impairs the vehicle's use and market value cannot be fixed, the manufacturer must, at the consumer's option, replace the vehicle with a comparable one acceptable to the consumer or refund the full purchase price, including license and registration fees and similar charges, minus a reasonable allowance for use (no more than 15% of the purchase price) and for damage beyond normal wear. A lawsuit must be filed within 3 years of original delivery, and a court may award attorney's fees to a winning plaintiff.

Maryland generally does not allow sellers of consumer goods to disclaim the implied warranties of merchantability and fitness, so "as is" language in consumer sales is unenforceable. For used cars, this rule does not apply to a titled vehicle that is more than 6 model years old and has been driven more than 60,000 miles, if the seller gives the buyer notice on the form prescribed under the Transportation Article; in that case any exclusion of implied warranties must be in writing, conspicuous, mention merchantability (for that warranty), and be separately signed by the buyer.

Under the Maryland Door-to-Door Sales Act, for a sale, lease or rental of consumer goods or services of $25 or more where the seller personally solicits the sale and the buyer agrees somewhere other than the seller's place of business, the seller must give the buyer a contract or receipt stating the buyer may cancel before midnight of the third business day after the transaction, plus a "Notice of Cancellation" form in duplicate. After cancellation, the seller must return payments, trade-ins and any note within 10 business days. If the seller does not comply, the buyer may cancel by notifying the seller in any manner. A seller who violates the Act is liable for damages and reasonable attorney fees, and violations are unfair or deceptive trade practices.

The Maryland Consumer Protection Act prohibits unfair, abusive or deceptive trade practices, including false or misleading statements, in the sale, lease or offer of consumer goods, services, realty and credit and in debt collection. In addition to enforcement by the Attorney General's Consumer Protection Division, any person may sue to recover for injury or loss caused by a prohibited practice, and a person awarded damages may also be awarded reasonable attorney's fees. A court may order a party who brings a suit in bad faith or for frivolous reasons to pay the other side's attorney's fees.

Before starting repair work that will cost more than $50, an automotive repair facility must, if the customer asks, give a written estimate with the estimated completion date, the estimated price for parts and labor, any surcharge, and a statement about the shop's responsibility for damage to the vehicle. A shop may charge a reasonable fee for the estimate only if it discloses the fee beforehand. A shop may not charge more than 10% above the written estimate without the customer's consent. The shop must give an invoice describing all work and parts, stating whether any used, rebuilt or reconditioned parts were supplied, and must offer to return all replaced parts to the customer unless they must be returned to the manufacturer or distributor under a warranty.

During a state of emergency declared by the Governor, in the area covered by the declaration, no one may sell or offer goods or services the Governor designates as essential at a price 15% or more above the highest price the seller charged between 60 days and 4 days before the emergency. During the emergency and for 90 days after it ends, repair or reconstruction services for emergency cleanup may not be priced 15% or more above the seller's average price in the 30 days before the emergency. A larger increase is allowed if the seller can prove it is directly attributable to added supplier costs (including replacement costs), added labor or material costs, or normal seasonal pricing over the past 3 years. Violations are unfair, abusive or deceptive trade practices enforced under the Consumer Protection Act (but not its criminal penalties), and the Attorney General must give at least 20 days' notice before filing an action.

A gift certificate or gift card (including store credit for returned goods) may not expire or carry any fee or charge of any kind within 4 years after the date of purchase. Any expiration or fee terms that take effect after 4 years must be printed clearly in at least 10-point type on the card, a permanently attached sticker or the envelope, and cannot be changed after purchase unless the change benefits the consumer. A card sold in violation of these rules stays valid with no expiration or fees. The rules do not cover prepaid phone, technical support or Internet cards, discount coupons, free promotional or loyalty cards, or network-branded cards usable at many unaffiliated sellers. Violations are unfair or deceptive trade practices.

Credit services (credit repair) businesses must be licensed by the Commissioner of Financial Regulation and may not take any payment before fully completing the promised services, make false or misleading statements to credit bureaus or creditors, or help a consumer create a new credit identity. Debt settlement providers must register with the Commissioner each year. They may not charge for consultations or credit reports, and may not charge a settlement fee until a written agreement is signed, at least one debt has been settled or reduced, and the consumer has made at least one payment under the agreement. Consumers may withdraw from a debt settlement agreement at any time without penalty; any dedicated account must be owned by the consumer at an unaffiliated insured institution and refunded within 7 days of a withdrawal request, less fees properly earned. Violations are unfair or deceptive trade practices.

Home improvement contractors and salespeople must be licensed by the Maryland Home Improvement Commission. Each home improvement contract must be in writing, legible and signed by both parties, and must include the contractor's name, address, phone and license number, the salesperson's name and license number, approximate start and completion dates, a description of the work and materials, the price and payment terms, and notices about the Commission and the right to buy a performance bond. If the contract creates a lien on the home, it must include a notice of the right to rescind within 3 business days. The owner must receive a signed copy before work begins. No payment may be taken before the contract is signed, and the deposit may not exceed one-third of the contract price. Contractors may not offer gifts or bonuses (beyond small promotional items) as an inducement to sign.

A business that owns or licenses computerized personal information of Maryland residents must promptly investigate a breach in good faith and, unless it reasonably determines that misuse of the information is not likely, notify affected individuals as soon as reasonably practicable but no later than 45 days after discovering or being notified of the breach. Notice may be delayed for a law enforcement or national security investigation or to determine the scope of the breach. Before notifying individuals, the business must notify the Office of the Attorney General. The notice must describe the information involved and include contact information for the business, the major credit bureaus, the FTC and the Attorney General. A business that decides notice is not required must keep records of that decision for 3 years. A service provider that maintains the data must notify the data owner within 10 days.

Consumers can file a complaint with the Attorney General's Consumer Protection Division online through its complaint portal, or by mail, email or fax, sending copies (not originals) of documents. A mediator works with both sides by phone and in writing to try to reach a resolution, but the office cannot force a business to cooperate and cannot give legal advice or act as a private attorney. If mediation fails, the Division offers free, binding arbitration if both parties agree; otherwise consumers are referred to small claims court. Health care billing disputes go to the Division's Health Education and Advocacy Unit.

1) Written notice: if a new vehicle does not conform to its warranties during the warranty period (the first 18,000 miles or 24 months after original delivery, whichever comes first), the consumer must report the defect during that period by written notice to the manufacturer or factory branch, sent by certified mail, return receipt requested. The seller must clearly disclose this procedure in writing at the time of sale or delivery. 2) Opportunity to cure: the consumer must give the manufacturer or its agent an opportunity to fix the defect, and the repairs must be completed within 30 days after the manufacturer receives the notice. 3) Arbitration: Maryland has no state-run lemon law arbitration program. If the manufacturer has an informal dispute program that fully complies with federal rules (16 C.F.R. Part 703), the consumer may use it, and doing so does not prevent the consumer from seeking other legal remedies. 4) Deadline: any action under the lemon law must be started within 3 years after the vehicle was originally delivered to the consumer. A court may award reasonable attorney's fees to a winning plaintiff.