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

Mississippi's Motor Vehicle Warranty Enforcement Act covers motor vehicles sold in Mississippi for use on public roads, including demonstrators; motorcycles, mopeds, off-road vehicles, golf carts, low-speed vehicles and certain motor home parts are excluded. A reasonable number of repair attempts is presumed if, within the warranty term or one year from delivery (whichever ends earlier), the same defect was repaired three or more times and still exists, or the vehicle was out of service a total of 15 or more working days. The consumer must give the manufacturer written notice, and the manufacturer then has 10 working days after delivery to its repair facility to fix the problem. If it cannot, the consumer may choose a comparable replacement or a refund of the full purchase price plus collateral charges, minus 20 cents per mile driven. A lawsuit generally must be filed within one year after the warranty expires or 18 months after delivery, whichever is earlier (or within 90 days after an informal dispute panel's final action). A consumer who prevails may be awarded costs and attorney fees.

In a home solicitation sale, the buyer may cancel until midnight of the third business day after signing the agreement by giving the seller written notice at the address in the agreement; any written statement that the buyer does not intend to be bound is enough. The right does not apply if the buyer requested immediate service because of an emergency, the seller in good faith substantially began work before the notice, and any goods cannot be returned in substantially the same condition.

The Mississippi Consumer Protection Act prohibits unfair methods of competition and unfair or deceptive trade practices in or affecting commerce. A person who buys or leases goods or services mainly for personal, family or household use and suffers a loss may sue to recover the money or property lost, but must first make a reasonable attempt to resolve the claim through an informal dispute settlement program approved by the Attorney General. Class actions are not allowed under the Act. A business may recover its attorney fees if the court finds the suit frivolous or filed to harass or delay.

When a state or local emergency is declared, prices for goods and services sold in the emergency area may not exceed the prices ordinarily charged for comparable goods or services in the same market area at or immediately before the declaration. Sellers may add necessary costs incurred in obtaining goods during the emergency. A knowing and willful violation totaling $500 or more in a 24-hour period is a felony (1 to 5 years and/or a fine up to $5,000); under $500 is a misdemeanor (fine up to $1,000 and/or up to 6 months in jail). A knowing and willful violation is also an unfair or deceptive trade practice.

Under the Mississippi Debt Management Services Act, no one may act as a debt management service provider for Mississippi residents without a license from the Commissioner of Banking and Consumer Finance. "Debt management service" includes receiving and distributing a consumer's payments to creditors, acting as an intermediary to settle, compromise or reduce a consumer's debts, and improving or offering to improve a consumer's credit record, history or rating. Providers must file a bond, sign a dated written agreement with the consumer before providing services (including a description of services and fees, the consumer's right to cancel by written notice, and the Department's contact information for questions or complaints), and may charge only the fees the Act allows: a maintenance fee of up to $30 per month after a free initial counseling session, a one-time setup fee of up to $75, a credit report fee of up to $15 (individual) or $25 (joint), up to $50 for optional educational courses, and, for nonprofit credit counseling agencies approved by the U.S. Trustee, a bankruptcy consultation fee of up to $50. Licensed attorneys practicing law are among those excluded.

The Mississippi State Board of Contractors requires a license for new residential construction over $50,000, residential remodeling or additions over $10,000, and residential roofing over $10,000. The Board investigates complaints against contractors, but it says an investigation does not guarantee restitution; consumers seeking money back may need to go to court.

A person doing business in Mississippi that owns, licenses or maintains residents' personal information must notify affected individuals without unreasonable delay after a breach of unencrypted personal information (name plus Social Security number, driver's license or ID number, or financial account number with access code). Notice is not required if, after an appropriate investigation, the business reasonably determines the breach will not likely result in harm. Notice may be delayed for a law enforcement investigation. Notice may be written, by phone or electronic. Violations are enforced by the Attorney General as an unfair trade practice; the law does not create a private right to sue.

The Attorney General's Consumer Protection Division takes complaints through an online consumer complaint form and offers help from consumer mediators. The office's general phone line is 601-359-3680.

1) Written notice: before using the lemon law, the consumer (or a representative) must give the manufacturer written notice of the need to repair the defect so it has an opportunity to fix it. The manufacturer must list its zone or regional service office addresses in the owner's manual. 2) Final repair attempt: the manufacturer must immediately tell the consumer of a reasonably accessible repair facility, and then has 10 working days after the vehicle is delivered there to fix it. If the consumer then reports that the vehicle still is not fixed, the manufacturer must say whether it has an informal dispute program and give the consumer a copy of the lemon law (unless it already gave notice of the program). 3) Arbitration: Mississippi 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 refund/replacement remedy does not apply to a consumer who has not first used it; but if the manufacturer failed to tell the consumer about the program, that requirement does not apply. 4) Deadline: a lawsuit must be started within one year after the express warranty expires or within 18 months after original delivery, whichever is earlier; if the consumer used the manufacturer's program, within 90 days after the panel's final action. A consumer who finally prevails may be awarded costs and attorney's fees.