Fisker Ocean owners seek loan cancellations under California law

Is Your Fisker Ocean SUV Giving You Fits?

California consumers, both in San Diego and throughout the State, may be able to get out from under their failed Fisker Ocean vehicles and financing agreements.

The FTC’s “Preservation Rule” allows consumers to directly sue JP Morgan Chase Bank, Fisker’s financing arm, for violating California lemon law, consumer fraud statutes, and other wrongdoing.

Consumers who financed their Fisker vehicle purchases using “Fisker Finance” – a trade name operated by JP Morgan Chase – can seek relief in court or arbitration, which may be a faster and potentially more efficient option.

Fisker Ocean defects and bankruptcy

Fisker made more than 11,000 Fisker Ocean vehicles before filing for bankruptcy earlier this year.

The bankruptcy court approved Fisker’s plan in October. Fisker is winding down its operations and trying to develop plans to provide services for the vehicles sold to consumers.

Many Fisker Ocean owners have encountered numerous problems and mechanical failures, including trying to get proper and timely repairs for known defects in the vehicle’s brake and water pump systems.

Other problems with service, repair, and maintenance include Fisker’s cloud server for over-the-air software updates, which is supposed to be provided by a business that has agreed to take over the Fisker cloud server.

In addition, it appears Fisker did not intend to provide the warranty services they promised. The California Bureau of Automotive Repair has investigated why Fisker failed to get facilities certified to offer repairs in California, which is required under California law. One report indicated that the Bureau has called this an “open and shut case” for failing to have such facilities.

Now that the bankruptcy plan has just been approved, Fisker owners are left to hope that other companies will do the proposed fixes for safety recalls, like the defective brakes and water pumps. However, owners may have another viable option available.

Your legal rights as a California consumer

The Song-Beverly Consumer Warranty Act (the “Act”), California Civil Code §§ 1790 et seq., provides options for consumers that JP Morgan Chase took on when it financed car loans through Fisker Finance:

If the manufacturer or its representative in this state is unable to service or repair a new motor vehicle . . . to conform to the applicable express warranties after a reasonable number of attempts, the manufacturer shall make restitution in the amount equal to the actual price paid or payable by the buyer, including any charges for transportation and manufacturer installed options actually incurred by the buyer.

California’s consumer protection laws are the strongest in the country. If your Fisker Ocean vehicle was a lemon, you can file a claim to get out of your car loan and get back your monthly payments.

Using the Lemon law and FTC Preservation Rule, consumers can make JP Morgan Chase pay them back for all payments they made to Chase. Chase may also be made to cancel and pay off their car loan.

The Act also allows consumers to get legal fees in addition to the remedies mentioned above. However, navigating your legal options can be complex.

Legal counsel can help determine whether you are eligible for compensation. Speaking with a lawyer about your consumer rights is critical, particularly if you have experienced problems with your Fisker Ocean vehicle.

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