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Chrysler’s stiffed a member of our Best and Brightest:
When I purchased my ’09 300C I traded in an ’05 that had a Chrysler extended service contract with time and mileage remaining. I called Chrysler and they gave me all of the information for obtaining a pro-rata refund as per the contract. I faxed it over and got very quick service. I had a check from Chrysler in the amount of $363.62 in under two weeks. I cashed it at my bank and today my bank mailed it back to me: Insufficient Funds! The check was drawn on a JP Morgan Chase account. I guess the bankruptcy is going to strike close to home.
23 Comments on “Bailout Watch 524: C11 Chrysler Busy Bouncing Checks...”
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Countdown to Carmegeddon in Tminus 5…4…3…
They have been bankrupt for 6 months… what do you expect? Even the MSM reported that…
And you bought another Chrysler after eating the depreciation of a 2005 Chrysler model?
So you gambled, got a new car, probably with huge discount, of course there is some risk besides being stuck with a Chrysler.
Whatever Chrysler is doing is really wrong, but my sympathy towards people who still buy their products is limited. If i buy something heavily discounted from a bankrupt electronics store, I ran some risk… hence the discount.
I feel more sorry for the taxpayers (me) since they know supporting Chrysler is pretty stupid but have no choice. You had a choice, probably the knowledge about their situation, and thought you can take advantage of a good deal. Go figure!
My only hope is that more people learn about that and don’t buy Chrysler/GM anymore so it will end sooner.
I’d be off to the dealership to see the General Manager… see if he’s willing to foot the bill or at least pour you a stiff double from the whiskey bottle he’s got (to have) in his desk drawer.
Strange things happen in bankruptcies.
I once received a check for less than $2.00 from a bankruptcy attorney firm in Chicago (I live in California).
It turned out that, many years prior, I had ordered some extra shelves for some bookshelf units that my mother had purchased.
For whatever reason, we never remembered to pick them from the furniture store.
Fast forward a few years, and the store goes bankrupt. As a secured creditor (I had already paid for the shelves), I was entitled to a share of the proceeds.
The fact that the bankruptcy attorneys probably billed $200 to send me my $2.00 check tells you just how irrational this process can get.
A sad illustration of how the the taxpayers are contributing billion$ to save the banking and automotive industries, but to no avail.
Enough with sadness already.
Start getting angry, very angry….
We all get to pay… This goes way beyond the auto industry… The trillions being used to bail everyone is real money from real people.
The taxes from my entire family and the next 10 generations that follow wouldn’t be enough to cover the bailout of even a small bank.
Sucks that it hits home for you with a bounced check… Let’s hope that’s all you get hosed for.
And I hope you enjoy the new wheels… The 300 is a wicked cool ride.
Remember how Rick Wagoner et al. used to argue that filing for chapter 11 was “not an option” because no one would buy from a bankrupt carmaker, well, this is a good illustration of why.
However, stiffing customers in the normal course of business (the point of Ch. 11 is to maintain the company as a going concern) should not happen regardless. In fact, the court’s screwing over of Chrysler’s secured creditors is based on the premise that Chrysler is worth more as a going concern than in liquidation. If Chrysler, with the approval of the court, isn’t careful to uphold its basic obligations to its customers then they’ll go down the drain no matter what the U.S. Treasury and the Judge say or do. They’re playing Russian roulette every time they fail a customer like this.
You’re mad about a $350 check bouncing, but you ate what, $15-20K in depreciation only to buy another chrysler?!?
Yes, you should be angry at Chrysler, but not because a dinky check bounced
I cannot offer sympathy to a person who bought a Chrysler product. To do it twice over? Yikes… Learn from your mistakes, do not add to them!
This, on top of the stories of bounced checks from Chrysler on cars that they bought back under lemon laws.
http://www.latimes.com/business/la-fi-lemonlaw9-2009may09,0,3217006.story
The person whose bounced check was for only $363.62 got off easy.
According to a lawyer in the news story, the people who sold their cars back to Chrysler under lemon laws ended up with neither a car or any money at all!
It does not give me any confidence in Chrysler.
The new Chrysler is likely to have the same problems as the old Chrysler:
http://www.heraldnet.com/article/20090510/BIZ/705109920
With so many other cars out there being given away, you have to be nuts to buy, rent, drive or park next to a Chrysler.
Chrysler’s bouncing checks now? Sheesh. I don’t think even Dan Bricklin did that……..
Profits will soar when you get rid of that pesky and evil “Accounts Payable” department.
Dear Mr. Farago:
I don’t want to flame you on your recent car purchasing decision—so consider this reply ‘helpful advise’.
Your Kids have a right to protect their inheritance and the only way to protect their investment is to have you committed. This is for your own good. So when the nice men in the White coats come for you this evening, be sure to stand up straight and cross your arms in front of your chest—it will make things go quicker!!!
LET ME GET THIS STRAIGHT?!!!
1. You work for TTAC, Yes?!!
2. You were there when TTAC put together the 2008 Worst cars on the Road in America list. Yes?!!
3. As you may recall, CRYCO scored SIX clunkers out of ten (actually SEVEN if you count the VW badged Dodge Caravan)
4. YOU OWNED a 2005 300c (Known as the CHRYSLER ‘Gangsta’ (Hip-Hop edition) with a functioning (Chrysler and functioning is like military and justice) extended warrantee. You could have easily hidden the shame and purchased a Ti-yoder Camery or something
5. You then COMPOUNDED the error by running out and buying ANOTHER Chrysler 300c, taking a $10K haircut on your resale value (there I go again, mixing Chrysler and Resale Value in the same sentence).
6. Surprise, Surprise, the $300.00 cheque they give you bounces.
7. PUNCH LINE: As they come to take you away, tell your children not to worry. Your Rebate cheque now makes you a BONDHOLDER and American Bankrupcy Law means you are first in line to get repaid!!! CPTG
CPTG :
Robert does not own a Chrysler product, he is just posting a message from a reader/commentator. When he says “Best and Brightest” he’s referring to the commentators.
My credit union sent a note with the statement this month teling me they would put a 3-5 day hold on any check drawn from a long list of banks. It’s very telling when banks don;t trust each other anymore.
I thought they were referring to account numbers or check numbers but when I looked closer it was actually the bank ABA they spelled out.
This is huge, as it indicates my credit union, who like most has a great deal of liquidity, is concerned about giving me cash and getting stuck with bad paper. If an account holder hands me a bad check, they can screw me with charges. But if the whole damn bank is faulty then they can’t blame the individuals nor the account holders. It’s above their paygrade.
We are heading into a financial abyss.
CPTG:
Screw off… We all piss away cash to buy things we desire.
For this guy it was a 2009 300C… I dropped $100K+ on an RV when gas was @ $4
So maybe you live in a one room cabin with a black and white TV set? I hear those new color TVs are pricey…
Just because you don’t want something, doesn’t mean other people shouldn’t want something.
Get a hobby.. Get laid… Get drunk.. but most of all GET OFF THIS GUYS BACK!
My credit union sent a note with the statement this month teling me they would put a 3-5 day hold on any check drawn from a long list of banks.
If I were you, I’d be worried about your credit union, moreso than the other banks. It may not be as liquid as you think.
GS650G:
More likely the banks on that list do business in areas with high unemployment.
To avoid the cost of bounced checks, they are likely targeting the banks that have clients who are bouncing checks.
No banks will have liquidity problems. The FDIC prevents it.
On another blog I read, a guy was denied a credit card based on his zip code. The letter from Capital One said that they didn’t even run his credit score.. They just looked at the zip code and said no thanks.
If I were you, I’d be worried about your credit union, moreso than the other banks. It may not be as liquid as you think.
Considering CU have far more in reserves than banks, are not part of the FDIC rather the FCUA instead, and were prohibited and restricted from getting involved with all the risky nonsense the banks did,
I’ll stay with the CU. Banks have tried to kill off crdit unions for years, through restrictive regulations, appeals to congress to allow them to buy credit unions, all sorts of things.
CU issue their own notes backed by deposits. The vast majority are profitable as the depositors own shares. The credit cards are self backed too.
if you are not in a credit union it might be time to look for one.
If Chrysler shirks its warranty and service obligations (that would include lemon law buybacks, as well as all existing warranties–including those which predate the Obama guarantee), they might as well close down their plants. Same goes for GM.