The manufacturer may reach out to the consumer before the hearing to settle the case without arbitration.
Are pre-hearing settlements allowed?
Yes. You are free to reach a settlement between you and the manufacturer before the case is closed. Manufacturers must put the offer in writing with full terms of agreement (including compliance date). Before signing, the agreement must be reviewed by DCP for statutory requirements.
NOTE: Before you accept an agreement from the manufacturer make sure all costs are written. This will avoid any problems or "hidden costs" when the exchange takes place.
Pre-hearing settlements must include:
1. The full terms of the offer, including all dollar amounts to be refunded or any out-of-pocket expenses the consumer may have to pay. Examples of refunds may include floor mats, extended warranties, or maintenance plans. NOTE: The consumer may have to pay the MSRP or the Manufacturer's Suggested Retail Price differences.
2.The offer must include a compliance date, this must be a fixed date. (It cannot have a loose timeline such as 60 or 90 days)
3. If the consumer accepts the offer, it must be signed by all parties and sent to the department to cancel the hearing.
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