Haw. Code R. § 16-181-31 - Refunds

(a) When an arbitrator awards a refund for a leased car, a manufacturer shall refund to the consumer the following: the cash down payment, any security deposit, all cash charges on signing the lease, all lease payments made, and all collateral and incidental charges, less a reasonable offset for the consumer's use of the motor vehicle[, and less any finance or interest charges]. The security deposit may be refunded through the lessor, if applicable.

(b) The reasonable offset for use shall be equal to one per cent of the lease price for every thousand miles of use. The lease price means the aggregate of the lessor's actual purchase cost; the freight cost, if applicable; the cost for accessories, if applicable; and any other incidental fee paid by the lessor. If this information is not provided at the hearing, the arbitrator may use the "agreed upon value of the vehicle" as stated in the lease to calculate the reasonable offset for use. Reasonable offset for use means the number of miles attributable to a consumer up to the date of the third repair attempt of the same nonconformity which is the subject of the claim, the date of the first repair attempt of a nonconformity that is likely to cause death or serious bodily injury, or the date of the thirtieth cumulative business day when the vehicle is out of service by reason of repair of one or more nonconformities, whichever occurs first.

(c) The manufacturer shall refund to the leasing company the balance of the lease price, as that term is defined in this section, after the consumer's refund has been calculated.

(d) Once a decision for the consumer has been rendered by an arbitrator, the lease is terminated. No early termination penalties under the lease may be collected.

Notes

Haw. Code R. § 16-181-31

[Eff 3/3/97; am and comp 10/8/05] (Auth: HRS § 4811-4) (Imp: HRS § 4811-4)