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

Nebraska's lemon law covers new motor vehicles sold in Nebraska, excluding recreational vehicles. A "consumer" includes a buyer of a vehicle normally used for personal, family, household or business purposes. Problems must be reported to the manufacturer, its agent or dealer during the warranty or within one year of original delivery, whichever is earlier. A reasonable number of repair attempts is presumed if the same problem has been repaired four or more times in that period and still exists, or the vehicle has been out of service for repairs a total of 40 or more days; the presumption applies only if the manufacturer received prior written notice by certified mail and a chance to fix the defect. If a defect that substantially impairs use and market value cannot be fixed, the manufacturer must replace the vehicle with a comparable one or take it back and refund the full purchase price, including sales tax, license and registration fees, less a reasonable allowance for use. If the manufacturer has a dispute settlement procedure certified by the Director of Motor Vehicles, the consumer must use it before seeking a refund or replacement.

The Attorney General states that Nebraska's lemon law applies only to new vehicles and that there is no three-day right to cancel the purchase of a vehicle. A used car sold "as is" is bought in its current condition with no express or implied warranty from the seller, and once the sale is complete the seller has no obligation to make repairs. Complaints about vehicle dealers can be filed with the Motor Vehicle Industry Licensing Board.

Under Nebraska's Home Solicitation Sales law, a buyer may cancel a home solicitation sale until midnight of the third business day after the seller gives the required notice of the right to cancel. Notice of cancellation must be in writing and mailed to the seller; it counts as given when mailed, and it can be in any written form showing the buyer does not want to be bound. The Attorney General explains that the law covers sales in the home or at a location other than the seller's regular place of business (such as rented rooms, restaurants or home parties), that contracts must include a "BUYER'S RIGHT TO CANCEL" notice, and that the business has 10 days after cancellation to refund the money. It does not cover vehicle purchases, sales under $25, sales from prior negotiations at the business's permanent location, certain emergency purchases, or home repair the homeowner initiated, among other exceptions.

The Nebraska Consumer Protection Act makes unfair methods of competition and unfair or deceptive acts or practices in trade or commerce unlawful. Any person injured in their business or property by a violation may sue in district court for an injunction, actual damages, or both, plus costs and a reasonable attorney's fee. The court may increase the award to an amount reasonably related to actual damages that cannot be measured in ordinary money terms, but for a deceptive-practices violation that increase may not exceed $1,000.

Nebraska does not ban gift card expiration dates or fees outright, but requires disclosure. A gift certificate or gift card subject to a fee must clearly state on the card whether there is a fee, the amount, how often it applies, that it is triggered by inactivity, and when it is assessed. A card with an expiration date must clearly state that date on the card. These statements must be visible to the buyer before purchase. A card with no fees and no expiration date is not presumed abandoned; one with an expiration date or fees that goes unredeemed for three years from issuance is presumed abandoned (unclaimed property). The rules do not apply to general-use prepaid cards.

Credit services (credit repair) organizations must file a registration statement with the Secretary of State before doing business, may not charge before fully performing all services unless they have a surety bond or surety account, may not charge in advance for obtaining credit, and may not make false claims such as guaranteeing to "erase bad credit." Debt management businesses must be licensed. A licensed debt manager's total fee may not exceed 15% of the money paid through the licensee, with an initial payment of no more than $25; fees must be spread over the contract, no fee may be charged until the program is arranged and approved by the debtor, and on cancellation the licensee may keep no more than 25% of the remaining unamortized fee.

The Nebraska Contractor Registration Act requires contractors and subcontractors doing business in the state to register with the Nebraska Department of Labor, which offers an online search of registered contractors and a phone line (402-471-2239). The Attorney General advises insisting on a written contract that describes the work, materials and completion date, and notes that a contract signed at home or at a contractor's temporary location can be cancelled within three days.

A person or business that conducts business in Nebraska and owns or licenses computerized personal information about Nebraska residents must, on becoming aware of a breach, promptly investigate in good faith. If the investigation finds that the information has been or is reasonably likely to be used for an unauthorized purpose, the business must notify affected residents as soon as possible and without unreasonable delay (law enforcement may request a delay). It must also notify the Attorney General no later than when residents are notified. Notice may be written, by phone, electronic, or substitute notice in some cases. Personal information includes a name combined with an unencrypted Social Security number, driver's license or state ID number, or account or card number with an access code, among other items.

File a consumer complaint with the Attorney General's Consumer Affairs Response Team online, or print the PDF complaint form (also available in Spanish) and mail it to the Consumer Affairs Response Team, Nebraska Attorney General's Office, 2115 State Capitol, Lincoln, NE 68509. You must contact the business first to try to resolve the problem. The office's dispute resolution process is voluntary and requires cooperation from both the consumer and the business; the Attorney General does not represent individual consumers. Phone: 402-471-2785; email ago.consumer@nebraska.gov.

1) Report the problem: the consumer must report the defect to the manufacturer, its agent or an authorized dealer during the express warranty term or within one year after original delivery, whichever ends first. 2) Written notice: the presumption that the manufacturer had a reasonable number of repair attempts does not apply unless the manufacturer first received written notice sent directly to it by certified mail, from or on behalf of the consumer, and had an opportunity to fix the defect. 3) Arbitration: the Director of Motor Vehicles sets standards for informal dispute settlement programs based on federal rules (16 C.F.R. part 703). If the manufacturer has or takes part in a program certified by the Director, the consumer must use that program first before the refund-or-replacement remedy applies. The statute does not set a fee for the consumer. 4) Deadline to sue: a lawsuit under the lemon law must be filed within one year after the express warranty expires or two years after original delivery, whichever is earlier. A consumer who wins in court is awarded reasonable attorney's fees.