New Hampshire Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

New Hampshire's lemon law covers new passenger vehicles, other four-wheel vehicles and motorcycles under 11,000 pounds gross weight, plus off-highway recreational vehicles and snowmobiles, while still under the manufacturer's express warranty. Purchasers and lessees are covered; government buyers are not. The defect must substantially impair the vehicle's use, value or safety and must be reported during the warranty term. It is presumed the manufacturer had a reasonable number of tries if the same defect was repaired at least 3 times and still exists, or the vehicle was out of service for a total of 30 or more business days during the warranty. The manufacturer gets one final chance to repair. Disputes go to the state's New Motor Vehicle Arbitration Board, which must hold a hearing within 40 days of receiving a complaint. At the consumer's choice, the remedy is a comparable replacement vehicle or a refund of the full purchase price, minus an allowance for the consumer's use of the vehicle.

The lemon law does not cover used-car dealers. Under the state's used-vehicle law, a dealer must do a safety inspection if the customer asks (and may charge a reasonable fee), and must give the buyer a written statement saying whether the vehicle meets state equipment requirements, listing defects, or saying no inspection was done. A dealer may sell an unsafe vehicle only with a written notice saying it is unsafe for highway use and listing the defects, and must notify the buyer of these rights in advance and get a written acknowledgment. Violations are unfair or deceptive practices under the Consumer Protection Act. Under New Hampshire's version of the Uniform Commercial Code, for goods bought for personal, family or household use, a merchant's disclaimer of implied warranties does not limit its liability unless the buyer signs, before or at the sale, a conspicuous writing that says in plain language the goods are sold "as is" or "with all faults," that the buyer bears the entire risk of quality and performance, and that the buyer pays for all repairs if the goods prove defective.

For a home solicitation sale—a sale of goods or services priced at $150 or more made anywhere other than the seller's permanent place of business—the buyer may cancel any time before midnight of the third business day after the transaction, by written notice mailed to the seller or by returning the goods in person during that period. After a cancellation, the seller must return the buyer's payments within 15 days. A seller can instead meet the law by guaranteeing in writing, on the sales ticket, receipt or contract, that the buyer may return the goods for a full refund. Separately, a buyer may cancel a contract with a credit services organization within 5 days after signing.

The New Hampshire Consumer Protection Act (RSA 358-A) bans unfair methods of competition and unfair or deceptive acts or practices in trade or commerce in the state, and lists specific examples. Consumers can sue. A winning plaintiff recovers actual damages or $1,000, whichever is greater; if the violation was willful or knowing, the court must award between two and three times that amount. A prevailing plaintiff also gets court costs and reasonable attorney's fees. The Attorney General can sue, seek restitution for injured people, and seek civil penalties of up to $10,000 per violation.

Upon request, a motor vehicle repair facility must give a written estimate before starting work, itemizing the work, the estimated price for labor and parts, and an estimated completion date. It may not do the estimated work without the customer's permission (oral permission is allowed if a written estimate is impractical), and it must tell the customer the estimated cost of unrelated additional work and get permission first. A facility may not charge more than 10 percent over the estimate without the customer's written consent. If the customer asks before the work is done, replaced parts must be returned, except parts that must go back to a manufacturer or distributor under a warranty or exchange arrangement. The final invoice must itemize the work, parts over $.50, and labor, state any guarantee, and disclose used or rebuilt parts. A facility that violates the law on a job is not entitled to any payment for that work.

Selling gift certificates with a face value of $250 or less that have expiration dates is an unfair or deceptive practice. Gift certificates over $250 expire only when turned over to the state as abandoned property. Dormancy fees, latency fees and other administrative fees or service charges that reduce the amount the holder can redeem are prohibited. The rule does not apply to season passes.

Debt adjusters (including debt management and debt settlement services) must be licensed by the New Hampshire Banking Department. A licensee may not collect any fee until the debtor signs the contract, and for debt management and debt settlement plans not until the contract has been in effect for at least 30 days. Total fees are capped: 10%, 12.5% or 15% of the total debt for debt management plans (depending on length) and 15% for debt settlement plans, and fees must be spread equally over the contract. Credit services (credit repair) organizations may not take payment before fully performing the services unless they have a surety bond or trust account in place, must use a signed written contract, and must let the buyer cancel within 5 days of signing without penalty.

A person doing business in New Hampshire that learns of a security breach must promptly determine whether personal information has been or will be misused. If misuse has occurred or is reasonably likely, it must notify affected individuals as soon as possible; notice may be delayed at the request of law enforcement. The notice must describe the incident in general terms and state the approximate date of the breach, the type of personal information involved, and a phone number for contact. Businesses not regulated by another state agency must also notify the New Hampshire Attorney General's office, and if more than 1,000 consumers must be notified, the nationwide consumer reporting agencies must be told as well.

1) Report the problem during the warranty term and keep the written repair orders (the dealer must give one each visit). 2) Written notice and election: after the third repair attempt, or after the vehicle has been out of service 30 or more business days, the consumer notifies the manufacturer (and lessor, if leased) in writing on the form the manufacturer must provide at delivery. In that notice the consumer chooses either the manufacturer's dispute settlement program or the state's New Hampshire New Motor Vehicle Arbitration Board; choosing one rules out the other. 3) Final repair attempt: within the 40-day arbitration period, the manufacturer gets one final chance to repair the defect; if the consumer is satisfied, the arbitration ends. 4) Arbitration: the hearing must be held within 40 days after the notice is received, unless an extension of up to 30 more days is granted for good cause. The state board (attached to the Department of Safety) charges the consumer a $50 filing fee; the manufacturer pays $250. The board decides within 30 days after the hearing. Its decision is final unless appealed to superior court within 30 days, on limited grounds such as fraud, partiality or the board exceeding its powers. 5) Deadline: any proceeding under the lemon law must be started within one year after the later of the express warranty's expiration or the manufacturer's final repair attempt.