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2004 SESSION

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SB 324 Motor vehicle purchases; cure offers for consumer disputes.

Introduced by: Kenneth W. Stolle | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED SENATE:

Virginia Consumer Protection Act; admissibility of cure offers. Permits a supplier to introduce a cure offer into evidence in a proceeding for damages under the Consumer Protection Act if the cure offer is delivered prior to the filing of the supplier's initial responsive pleading. If the damages awarded in the proceeding do not exceed the value of the cure offer, the supplier will not be liable for the person's attorneys' fees and court costs. A cure offer is an offer to remedy a loss claimed to be suffered as a result of a consumer transaction, which includes an additional amount of at least 10 percent or $500, whichever is greater; however, the minimum additional amount need not exceed $4,000. This bill is identical to HB 231.

SUMMARY AS INTRODUCED:

Virginia Consumer Protection Act; cure offers for consumer disputes involving motor vehicle purchases. Defines "cure offer" as a written offer of one or more things of value made by a supplier, and the offer is delivered to a person, or an attorney representing the person, claiming to have suffered a loss as a result of a consumer transaction for the purchase of a motor vehicle from the supplier. A cure offer must be reasonably calculated to remedy a loss claimed by the person, and it must include a minimum additional amount equaling 10 percent of the value of the cure offer or $500, whichever is greater, as compensation for inconvenience, fees, expenses, or other costs that such person may incur in relation to such loss. However, the minimum additional amount need not exceed $2,500. The bill prohibits the admission of a cure offer in any proceeding initiated under the Virginia Consumer Protection Act unless the cure offer is delivered by a supplier to the person, or an attorney representing the person, claiming loss prior to the filing of the supplier's initial responsive pleading in such proceeding. If the requirements of the definition of cure offer are met and the cure offer is delivered by the supplier as required, the cure offer shall be admissible when offered by the supplier. The supplier shall not be liable for such person's attorney's fees and court costs incurred following delivery of the cure offer unless the actual damages found to have been sustained and awarded, without consideration of attorney's fees and court costs, exceed the value of the last cure offer that was not accepted by the person claiming loss.