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Date:         Thu, 20 Apr 1995 15:06:36 -0400
Sender:       Vanagon Mailing List <vanagon@vanagon.com>
From:         drew@interport.net (Derek Drew)
Subject:      Re: FTC, VWOA, Head Replacement Questions

>I volunteer to archive the composite tales of woe/terror/ripoff/etc= regarding >head replacement, leaking seals, etc. =20 > >If we gather the info correctly we will have a strong case for presenting >VWOA with either a "make it right via FTC" or a potential Class Action= lawsuit.

Wow. Great idea.=20

Here is a reproduction of a private message I just sent off to one of our list members.

Derek

>Derek: We have an '85 Westy that was given to us by my inlaws 2 years=20 >ago, Do you know if we would be covered since we aren't the original=20 >purchasers under this? We apparently have a colent leak at the head=20 >gasket. Also. how do you go about filing to have this done? And do you=20 >need complete service records from when the vehice was purchased? Thanks= =20 >for the info!!!!

In the event that there is paperwork or other signs that the car has more than 50,000 miles on it, then:=20

1. Ask that a DSM look at the car and see what he will offer you in the way of "assistance."

2. If you want to get more "assistance" then go through the FTC process. Your case is really iron clad since this is a fault of VWs and everybody has it. You need to prove this by going to the archive of the vanagon list and downloading all the tales of woe.

The fact that your car was obtained used is irrevelant here and nobody is likely to even mention it to you.

Here is the FTC infomration:=20

I found this today on the Federal Trade Comission site. It appears to mean that we can all go mob VW to pay for all our engine repairs *even if we have already paid for those repairs!*

That is, I bet the collective expense among members of this list for engine repairs is in the multi millions of dollars over the years. Apparently, this thing gives us the right to go to the BBB and try to get VW to refund to us the amount we spent in the past, even for VWs sold in the 1970s. It costs us nothing and it could be a bonanza.

I bet nobody on the list has ever taken advantage of this program but it is hanging right out there.=20

Enjoy. I wonder if any of us has the initiative to actually take advantage of this. Anyone who had a leaking head gasket seal would be a prime candidate. If you had more than 50,000 miles on your engine, VW billed you for part of the repair. But one could argue that they should have set the threshhold higher, say, at 100,000 miles.

Derek Drew 90 Syncro Westy

=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D Facts for Consumers from the Federal Trade Commission

VW Mediation/ Arbitration Program -- July 1994

Under the terms of a 1988 Federal Trade Commission order, Volkswagen of America (VWoA) has established a mediation/arbitration program for all owners and lessees of VWoA or Audi cars and light trucks with engine problems. Through this informal program, operated by the Better Business Bureau (BBB), you may seek one of the following settlements: a refund for the money you spent on repairs; repairs to be made by VWoA at no charge to you; or a VWoA buy-back of your car.

To participate, you must contact the nearest BBB or VWoA and request an arbitration package that includes, among other things, a settlement request form, which you must complete and return. The BBB toll-free number is 1-800-955-5100. You can contact VWoA by writing:

Volkswagen of America, Inc. Customer Services Department 888 West Big Beaver P.O. Box 3951 Troy, MI 48007-3951

or by calling: #1-800-822-8987 (VWoA owners) #1-800-822-2834 (Audi owners)

This arbitration program covers two categories of problems -- specified claims and internal engine component claims.

Specified claims can be filed by owners or lessees who experienced oil consumption-related problems in water-cooled gasoline engine Volkswagen and Audi vehicles from model years 1974 through 1979. If you have had such oil consumption problems, you need not still own or lease the car to be eligible to participate in the program.

Internal engine component claims involve all other engine problems. All owners or lessees who experienced internal engine component problems with any Volkswagen or Audi vehicle, regardless of the model year and engine type, can file claims. However, you still must own or lease your car to be eligible.

Mediation

The arbitration program, which is offered to you at no charge, has two phases: mediation and arbitration. First, the BBB will try to mediate a settlement between you and VWoA without having an arbitration hearing. For example, BBB staff may ask you to talk to the dealer one more time. Or they may suggest that you contact your VWoA regional office about your problem. Sometimes, the BBB talks to each party and tries to arrange a settlement. This mediation process may result in VWoA making an offer that satisfies you.

If you accept the VWoA offer, you give up your right to arbitrate this particular problem (unless the problem happens again, of course). If you are not satisfied with the VWoA offer, you have the right to an arbitration hearing. Make sure you notify the BBB if you want to have a hearing. Keep a record of the date you contacted the office.

Arbitration

Arbitration is the next step when mediation fails. It differs from mediation in that the parties do not settle the problem between themselves. They present their claims to an impartial third party called the arbitrator, who is the decision maker.

Arbitration is informal; you do not need a lawyer and there are no complicated legal rules. The arbitrator listens to both sides, asks questions, and ultimately makes a decision that he or she believes is fair. The arbitrator may decide for or against your claim. You do not have to accept the arbitrator's decision (see page 7). However, VWoA must accept the arbitrator's decision as final if it's accepted by you. If you decide to arbitrate, your local BBB will give you further explanations about the program's rules.

The Award Request

On your arbitration form, you will be asked to state exactly what you want to receive from VWoA through the arbitration process. If you already have had your car repaired, you may wish to ask for the amount of your bill. If your car has not been repaired, you may wish to ask the arbitrator to order VWoA to make the repairs at no charge to you. Or, if your case justifies it, you might ask for a combination of these.

You are eligible to file a claim and have an arbitration hearing regardless of your vehicle's age or mileage. However, age and mileage are factors that can be taken into consideration by the arbitrator in arriving at a decision.

In an extraordinary case -- for example, if the dealer has been unable to fix serious problems with the car after several tries -- you may wish to ask the arbitrator to order VWoA to buy back the car. In this case, VWoA may ask the arbitrator to deduct an amount from the cost of the car for mileage or use. The arbitrator does not have to make any deduction from the award, but may do so based on individual circumstances. The arbitrator cannot give you more than you have asked for on the award request.

The Arbitrator

Arbitrators are community volunteers whom the BBB has recruited and trained. VWoA does not take part in selecting an arbitrator. An arbitrator is never paid, except for occasional travel expenses.

If you live far from the BBB office, the staff will try to arrange a hearing location closer to your home. Once the arbitrator is appointed, the BBB will set a date for the hearing.

The Arbitration Hearing

The arbitration hearing is an informal proceeding where you have an opportunity to tell your story. You can present any documents and witnesses you want. Essentially, you have to convince the arbitrator that what you are asking is fair.

VWoA will have the same opportunity. If necessary, the arbitrator may decide to ask the BBB to supply and pay for an expert, or you can bring, at your expense, your own expert -- for example, the mechanic who worked on your car. You do not need a lawyer.

Preparing for an Arbitration Hearing

A key factor in the outcome of arbitration is preparation. If you are well-organized, your case will be easier for the arbitrator to understand.

Documents, such as receipts for car maintenance and repair, are usually the best type of information to present at the hearing. But letters from anyone who is familiar with the details, such as the mechanic who repaired the car, are good substitutes. At the hearing, of course, you or others can tell the arbitrator about any relevant details, even if you do not have documents.

Repair Information. You should list all of the details about the car and each problem for which you are seeking a refund or repair:

* the identification of the car by VIN (Vehicle Identification Number);

* the make, model, and year;

* the mileage on the car;

* the date(s) of any repair(s) and the mileage at which any repair(s) were made;

* the car part(s) that were repaired;

* the cost(s) of any repair(s); and

* if repairs were paid, some indication that you (rather than someone else) paid the bill(s).

As suggested above, a receipt often can show much of the necessary information. If you no longer have a receipt, you can ask your mechanic for a copy of the repair record or ask the repair mechanic to come to your hearing or write a letter. In reporting information, the mechanic should include:

* what was wrong with the car;

* what caused the failure; and

* if you have properly maintained your car.

If the repair work has not yet been done, an estimate or work order providing such information would be important.

If you no longer own the vehicle but are arbitrating an oil consumption-related problem covered by the specified claims program, you should have proof of past ownership for your arbitration hearing, such as a copy of the title, registration, an insurance policy, a purchase contract, or financing documents. The repair receipt itself may show ownership, as well as the necessary repair information.

Maintenance and Driving Habits

VWoA may argue at the hearing that your problem was caused by poor maintenance or improper driving habits. If you can show that you followed the recommended maintenance schedule and that you avoided driving practices the owner's manual cautions against, you have a better chance of winning. For example, if the problem involves an internal engine part such as a camshaft, it would be helpful to show that you changed the engine oil at the recommended intervals for the type of driving you do and that you used the type of oil recommended in the owner's manual.

To demonstrate maintenance, written records -- such as receipts, door stickers, or personal notes -- usually are=7F=7F the best. On the other hand, to show proper driving practices, your statements to the arbitrator may be the only evidence possible.

Other Information

Sometimes, showing the arbitrator that others have had similar car failures can help indicate that the problem was with the car rather than with your maintenance or driving habits. For example, your mechanic may know of similar failures; you may have seen (or be able to find) articles about similar problems in your local newspaper or in car magazines (check columns written by expert mechanics); and your state or city consumer protection offices may be aware of others with similar car problems or may have additional information.

Also, VWoA sends service bulletins about certain problems to its dealers. Although many service bulletins simply update the dealers about changes in part numbers, other bulletins may indicate that your car repair was a common problem. Therefore, if you can obtain a copy of an appropriate service bulletin and find a mechanic who will verify that the bulletin applies to your car problem, you might want to show it to the arbitrator.

For information about how to order some or all of the bulletins that may apply to your car, call 1-800-544-8021. You also may be able to look at copies of the bulletins at local VWoA dealers.

If your complaint involves an oil consumption-related problem in a 1974 through 1979 water-cooled gasoline engine VW or Audi vehicle, when you receive your specified claims arbitration forms, you also will get "background statements" prepared by the FTC and VWoA. You can present these statements to the arbitrator. They may help the arbitrator reach a decision.

The Arbitrator's Decision

Usually a few days after the hearing, the arbitrator will write a decision, called an "award." It is binding on VWoA, but not on you. You can accept or reject it. If you accept the award, VWoA must do what the arbitrator decides. For example, you might ask for $700 but only be awarded $500 by the arbitrator. You can accept the $500 award, which ends=7F your claim, or you can reject the $500 award and pursue your case through other avenues, such as a small claims court.

If you have problems or questions about the arbitration program, contact your local BBB or the FTC at any of their offices listed on the next page.

For a list of all the FTC's free consumer and business publications, contact: Public Reference, Federal Trade Commission, Washington, DC 20580; 202-326-2222. TTY (202) 326-2502. Ask for a copy of Best Sellers.=7F=7F

6/88; 8/89 .. =20 ___________________________________ Derek Drew drew@interport.net (main address for e-mail) derekdrew@aol.com (alternate/backup address, checked infrequently)=20


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