North Carolina Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

North Carolina's New Motor Vehicles Warranties Act covers new motor vehicles sold or leased in North Carolina, except house trailers and vehicles weighing more than 10,000 pounds. Replacement or refund rights apply to a defect (nonconformity) that substantially impairs the vehicle's value and occurs within 24 months or 24,000 miles after original delivery, if the manufacturer cannot fix it after a reasonable number of attempts. A reasonable number of attempts is presumed if the same defect was presented for repair four or more times and still exists, or the vehicle was out of service for a total of 20 or more business days during any 12-month period of the warranty. For the presumption to apply, the consumer generally must notify the manufacturer directly in writing and give it up to 15 calendar days to fix the problem (if the manufacturer disclosed this requirement). At the consumer's option, the manufacturer must replace the vehicle with a comparable new one or take it back and refund the contract price, collateral charges and certain other costs, minus an allowance for use. A consumer must give written notice of intent to sue at least 10 days before filing, and damages can be trebled if the manufacturer unreasonably refused to comply.

The Attorney General's guide to buying a used car says that while most used car dealers sell their cars "as is," some are willing to provide limited warranties, and suggests checking whether any warranty is guaranteed by the dealer or by an outside party. The same guide states there is no three-day right to cancel or other cooling-off period for a used car purchase. The state lemon law applies to new motor vehicles.

In a home solicitation sale, the buyer may cancel until midnight of the third business day after signing the agreement or offer. Cancellation is done by giving written notice to the seller at the address in the agreement; a mailed notice counts when it is deposited in the mail, properly addressed and postage prepaid. Unless the seller provided the required form, any written statement showing the buyer does not want to be bound is enough. The right to cancel does not apply in certain cases where the buyer asked in a separate writing for urgent or emergency service and the seller has already begun work in good faith. If the seller, through its own fault, does not deliver within 30 days of signing (unless a later date was agreed in writing), the buyer may cancel before accepting the goods or services and get a refund.

North Carolina's Unfair and Deceptive Trade Practices Act declares unlawful unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce (professional services by members of a learned profession are excluded). A person injured by a violation may sue, and any damages awarded are trebled (tripled). The judge may award reasonable attorney fees if the business willfully engaged in the practice and refused to fully resolve the matter, or against a person who brought a frivolous and malicious case. A lawsuit generally must be filed within four years after the claim arises.

Under the Motor Vehicle Repair Act, a repair shop must give a written estimate before diagnostic or repair work when the cost will exceed $350. The shop must promptly notify the customer before charges go over the estimate by more than 10%, and the customer may then authorize, modify or cancel the work. The estimate must let the customer say whether replaced parts should be saved, and a customer who asks when authorizing the work may inspect removed parts; the shop may discard them if they are not collected within two business days after the repaired vehicle is delivered. The shop must give an itemized invoice and post a sign telling customers about these rights. An injured customer may sue for damages, court costs and reasonable attorneys' fees.

Yes. After a triggering event, such as the declaration of a state of emergency or a finding of abnormal market disruption declared by the Governor, it is illegal to sell or rent goods or services knowing and intending to charge a price that is unreasonably excessive under the circumstances. Factors considered include whether the price reflects added costs from suppliers and whether it exceeds the seller's average price in the 60 days before the triggering event. The prohibition is time-limited (generally up to 45 days after the triggering event unless the Governor extends it). A violation is treated as an unfair or deceptive trade practice.

A business may not charge any maintenance fee (including a service or inactivity fee) on a gift card for one calendar year after the card is purchased. Any maintenance fees must be conspicuously disclosed at the time of purchase and must be visible on the gift card itself. This rule does not apply to gift cards issued by a financial institution that can be used at multiple unaffiliated sellers. A violation is an unfair trade practice.

Debt adjusting is illegal in North Carolina (a Class 2 misdemeanor), and the Attorney General can sue to stop it as an unfair or deceptive trade practice. Debt adjusting includes debt settlement and foreclosure assistance services that collect fees before the settlement is completed or all agreed services are provided. There are exceptions, including licensed North Carolina attorneys not employed by a debt adjuster and qualifying credit counseling/debt management organizations that charge only nominal fees (a setup fee of up to $40 plus up to 10% of each monthly payment, capped at $40 a month). Credit repair businesses may not charge or receive any money before fully and completely performing the agreed services, and may not make untrue or misleading statements about their services.

A state general contractor license is required for anyone who, for pay, bids on, builds or manages construction of a building or other improvement where the job costs $40,000 or more. Owners building or altering a building on their own land for their own use are exempt if they meet the statute's conditions, as are farmers building on their own farmland.

A business that owns or licenses personal information about North Carolina residents must notify affected people without unreasonable delay after discovering a security breach (a delay is allowed if law enforcement says notice would impede a criminal investigation). Whenever notice goes to affected people, the business must also notify the Attorney General's Consumer Protection Division; if more than 1,000 people are notified at one time, it must also notify the nationwide consumer reporting agencies. The notice must describe the incident and the types of information involved, and give contact information for the credit bureaus, the Federal Trade Commission and the Attorney General's Office. A business that only maintains data for another must notify the owner immediately after discovering a breach. A violation is an unfair or deceptive trade practice.

File a consumer complaint with the Attorney General's Consumer Protection Division online, or call 877-5-NO-SCAM (919-716-6000 from outside North Carolina; 919-716-0058 en español). The office reviews the complaint, usually forwards it to the business for a response, and works with both sides toward a resolution through mediation. It cannot act as your personal attorney or sue just to recover your money; if mediation fails it may suggest small claims court or a private attorney, and a pattern of complaints can lead to legal action on the public's behalf.

1) Report the problem to the manufacturer, its agent or an authorized dealer during the warranty period (at least one year, or the warranty term if longer). 2) Written notice and final repair chance: for the presumption that the manufacturer had a reasonable number of repair attempts, the consumer must notify the manufacturer directly in writing of the defect and allow it a reasonable period, not more than 15 calendar days, to fix it. The manufacturer must clearly disclose this requirement, with the address for the notice, in the warranty or owner's manual; if it does not, the notice is not required. 3) Arbitration: North Carolina's lemon law does not set up a state-run arbitration program. A manufacturer may require the consumer to use its informal dispute settlement procedure before suing, but only if that procedure substantially complies with the federal Magnuson-Moss Warranty Act and rules, and the requirement is stated clearly in the written warranty and warranty instructions. 4) Before suing: the consumer must give the manufacturer written notice of intent to sue at least 10 days before filing. The lemon law sections do not state a separate deadline to file the lawsuit.