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

Montana's lemon law (the New Motor Vehicle Warranty Act) covers new motor vehicles bought or leased for personal, family or household use, including the non-residential part of a motor home, but not trucks of 15,000 pounds or more gross vehicle weight rating. The warranty period for the law is 2 years from original delivery or the first 18,000 miles, whichever comes first. The consumer must notify the manufacturer in writing during that period; repairs reported in time must be made even after the period ends. A reasonable number of attempts is presumed if the same defect has been repaired four or more times during the warranty period and still exists, or the vehicle has been out of service for a total of 30 or more business days during the warranty period after notice. If the defect substantially impairs use and market value or safety and cannot be fixed, the manufacturer must replace the vehicle with a new one of the same model and equal value, or may instead refund the full purchase price plus reasonable collateral charges and incidental damages, less a reasonable allowance for use based on miles driven. A consumer who wants a refund or replacement and is refused must first use a dispute settlement program certified by the Montana Department of Justice.

Montana's lemon law applies to new motor vehicles. The Office of Consumer Protection's used-vehicle guide tells buyers to read and understand the warranty, which may be full, limited or "as-is," and explains that an "as-is" sale means there is no warranty at all.

A buyer in a personal solicitation sale (a sale of goods or services over $25 that follows a seller's contact by phone or in person away from the seller's place of business, with some exceptions) may cancel until midnight of the third business day after signing the agreement. For a sale made by telephone, the buyer may cancel any time before signing. Cancellation is by written notice to the seller in any form that shows the buyer does not want to be bound; a mailed notice counts when mailed. The seller must return payments and trade-ins within 10 days; a seller who refuses is liable for the entire down payment, and a buyer who wins in court also gets $500 plus attorney fees and costs. Goods that cannot be returned in substantially the same condition cannot be cancelled.

The Montana Unfair Trade Practices and Consumer Protection Act makes unfair methods of competition and unfair or deceptive acts or practices in trade or commerce unlawful. A consumer who suffers an ascertainable loss of money or property may bring an individual lawsuit (not a class action) for actual damages or $500, whichever is greater; the claim may be filed in justice's court. The court may not award punitive damages but may award up to three times actual damages if actual damages do not exceed $100,000, and may award the prevailing party reasonable attorney fees (capped at $250 an hour and not available if the consumer recovers $100,000 or more).

A gift certificate is valid until redeemed and does not expire. It may not be reduced in value by any fee, including a dormancy fee. The value belongs to the person holding it, and the issuer may redeem it for someone whose name does not match the certificate. If the original value was more than $5 and the remaining value is less than $5, the holder may ask for the remainder in cash. A gift certificate is treated as the holder's trust property if the issuer goes bankrupt.

Debt settlement providers must carry at least $100,000 of fidelity insurance, file an annual financial statement with the Attorney General (with a $250 fee), give the debtor specific written disclosures in at least 12-point type before signing, and have a written contract. Total fees other than setup fees may not exceed 20% of the principal amount of the debt, and setup fees may not exceed 5%. If the debtor cancels before completion, the provider must, on request, refund 50% of collected service fees on a pro rata basis for accounts that have not received a settlement offer (setup fees are not refundable). Credit counseling services offering debt management plans must be licensed by the Department of Justice, keep a trust account and surety bond, and may not advertise or operate without a license.

A person or business may not work as a construction contractor in Montana without a current license from the Department of Labor and Industry. The Office of Consumer Protection notes that registration is not a guarantee of good work and does not mean the contractor is bonded, and advises consumers to get at least two or three written bids and a written contract. It also warns that under Montana law a homeowner can be responsible for unpaid supplier costs, and a supplier may file a lien on the home, even if the contractor was already paid.

A person or business that conducts business in Montana and owns or licenses computerized personal information must notify any Montana resident whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person, without unreasonable delay (subject to law-enforcement delay and the time needed to determine the scope of the breach). Personal information includes a name plus a Social Security number, driver's license, state or tribal ID number, financial account or card number with its access code, medical record information, taxpayer ID number, or IRS identity protection PIN. Notice may be written, electronic, by phone, or substitute notice in some cases. A business that must notify residents must at the same time send an electronic copy of the notice, and the date and method of distribution, to the Attorney General's Office of Consumer Protection.

The Office of Consumer Protection asks consumers to contact the business first. If that does not resolve the problem, file a complaint online, or download the complaint form and mail or fax it. Include the business's name and address, a detailed explanation, what you have done, and copies (not originals) of receipts, contracts and other documents. Investigators review the complaint and, if it falls under the office's authority, send it to the business for a response and to try to resolve the problem; otherwise it may be referred to another agency. Phone: 406-444-4500 or 800-481-6896.

1) Written notice: the consumer must notify the manufacturer or its agent in writing during the warranty period (2 years or 18,000 miles) that the vehicle does not conform to the warranty. The manufacturer must say in the warranty or owner's manual that written notice is required and give the name and address to send it to. The repair presumption does not apply against a manufacturer that has not received prior written notice and had a chance to fix the defect. 2) Arbitration: if the manufacturer has an informal dispute settlement program certified by the Montana Department of Justice as meeting federal rules (16 C.F.R. part 703), the consumer must use it first before the refund/replacement remedy can be enforced; that program must decide within 60 days. If the manufacturer has no certified program, the consumer can request arbitration through the Department of Justice by filing a notice and returning the department's form with a $100 filing fee within 5 days of receiving it (the fee is refunded if the department finds no warranty violation is alleged). The arbitrator must decide within 60 days after the department accepts the complaint. A consumer hurt by a manufacturer program that does not follow the required procedures can ask for a new (de novo) arbitration by a department arbitrator, with the same filing procedure and fee. If a decision is not accepted, the parties follow Montana's Uniform Arbitration Act (Title 27, chapter 5). 3) Deadline: the lemon law sections reviewed do not state a separate deadline to file a claim or lawsuit.