Consumer fraud claims filed against Fisker Finance (aka JP Morgan Chase)
California consumers (and consumers from other states) who financed their Fisker vehicle purchase using “Fisker Finance” – a trade name operated by JP Morgan Chase – can get out of their failed Fisker Ocean vehicles.
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. Such a claim can be filed in arbitration, which may be a faster and potentially more efficient option for some consumers.
Fisker Ocean recalls and known defects.
Fisker made more than 11,000 Fisker Ocean vehicles before it stopped production and went bankrupt earlier this year.
Many Ocean owners have encountered never-ending problems and failures, including recalls for malfunctioning brakes and defective water pumps. They have also experienced enormous difficulties trying to get repairs completed on time. However, with the now-settled bankruptcy, Fisker owners are left to gamble that proposed fixes for safety recalls like the defective brakes and water pumps will be fixed.
Other problems with service, repair, and maintenance require faith that Fisker’s cloud server for over-the-air software updates will remain effective and will continue to be provided by a business that has agreed to take over the Fisker server.
Fisker’s bankruptcy plan was approved in October. The company is now winding down its operations and trying to develop plans to provide services for such vehicles.
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.
Consumer lemon law rights.
California’s consumer protection law is one of the strongest in the nation. If it is determined that your Ocean vehicle was a lemon, you can get out of the loan and get your monthly payments back.
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 their car loan:
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, in the case of restitution, 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 . . . and including any collateral charges such as sales tax, license fees, registration fees, and other official fees, plus any incidental damages . . . including but not limited to reasonable repairs, towing, and rental car costs actually incurred by the buyer.
By using the Lemon law and FTC Preservation Rule, consumers can make JP Morgan Chase pay them back for all payments made to Chase. Chase may also be made to cancel and pay off the car loan.
The Act also allows consumers to get legal fees in addition to such remedies.
Consumer fraud claims may also be available under the California Consumers Legal Remedies Act (Cal. Civ. Code Section 1750 et seq.), which provides the same attorney fee recovery potential as Lemon Law. This may provide for recovery in addition to breach of warranty claims.
The court approved Fisker’s liquidation plan and sale.
Fisker filed for Chapter 11 bankruptcy protection in June 2024 after unsuccessful negotiations with potential partners and significant financial challenges.
In October 2024, the U.S. Bankruptcy Court in Delaware approved Fisker’s liquidation plan. This plan includes selling its remaining Ocean SUVs to American Lease for $46 million. American Lease agreed to pay an additional $2.5 million over five years to maintain essential services such as software updates and diagnostic data access for all Fisker Ocean owners.
The bankruptcy proceedings are ongoing, with Fisker working to liquidate its assets and repay creditors.
The company has faced scrutiny over its handling of vehicle recalls and customer support during this period. With the bankruptcy proceedings coming to a close, Fisker Ocean owners who financed their vehicles through Fisker Finance / JP Morgan Chase are encouraged to seek legal advice without delay.
Free claim review.
California and other states’ consumers have been victimized by Fisker’s violations of various state lemon laws. Speaking with a lawyer about your legal rights is critical, particularly if you have experienced problems with your Ocean vehicle.
The Act offers powerful consumer protections, but navigating the process can be complex. A free legal consultation can help determine whether you are eligible for compensation, a replacement vehicle, or other remedies.
Don’t wait. Legal rights have deadlines.
Complete the form below for a free consultation to discuss your options under California’s Lemon Law or other consumer protection laws.
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