Public Defender: Jeep accused of being cheap with customers

ANGRY Jeep owners claim they are being let down by the ‘redress’ program that was meant to compensate them over dud cars. This one has burnt the paltry cheque he was sent.

JEEP owners say they have been let down — again — this time by the ACCC’s “redress” program meant to deal with their car woes.

A year after the scheme was set up only 60 or 70 owners have received compensation cheques, typically for less than $1000.

The largest cheque has been for about $5000, with Jeep’s parent, Fiat Chrysler Australia (FCA), offering to buy back vehicles on a few occasions. This is the first time results have been made public.

Owners believe the redress program is drastically undercooking their losses, leading some to pursue the carmaker legally instead.

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“I got a cheque for $1300 and set fire to it,” said Ashton Wood, who set up the Destroy My Jeep Facebook page after bashing and burning his dud Cherokee, for which he paid $49,000.

Jeep owner Ashton Wood burns a cheque he got from the official ACCC "redress" program. Supplied

The redress program was announced by the Australian Competition and Consumer Commission in September last year as part of its new model of dispute resolution. It followed the success former Victorian premier Jeff Kennett had on the ACCC’s behalf in brokering improved outcomes for suppliers who had been rorted by Coles.

But Mr Wood said FCA’s mediator had made errors calculating compensation. He said his payment was based on being without his car for 7.5 days when the correct figure was 68. Other owners had reported the same problem.

Ashton Wood destroys his ‘lemon’ Jeep. Picture: Megan Slade

FCA would not comment on Mr Wood’s allegations or any other aspect of the redress program.

ACCC chairman Rod Sims said: “If we heard of a lot of people being dealt with factually wrongly we would certainly be knocking on the door (of FCA). We haven’t had that evidence.”

Ms Sims revealed the ACCC is investigating car makers over claims they denied customers their “consumer guarantee” rights. He wouldn’t name the makers.

Mr Wood said he had referred about 20 owners to a law firm which had recently begun taking on dealers who sold defective Jeeps.

“I can confirm we act for multiple parties,” Brisbane-based Certus Legal co-founder Darryl Richards said.

Mr Wood said it had not been possible to run a class action under Queensland law.

Ford Australia has been facing action from as many as 70,000 owners. Bannister Law was initially chasing refunds or the difference between the purchase price and the true value of the vehicles, as well as aggravated damages.

That changed earlier this week, with the firm deciding to no longer pursue refunds.

A WHEELY SAD STATE OF AFFAIRS

WE get more complaints about Jeep than any other brand, but Mazda owners are in a tight tussle with Ford buyers for second place and the numbers show the ACCC’s investigation of the whole industry is unquestionably warranted.

Darren May and Mel Williams at their home in Cranebrook with their Mazda CX5 / Picture: Richard Dobson

A recent issue: Darren May and Mel Williams bought their first-ever new car, a Mazda CX5, and discovered a paint imperfection.

The dealer said it would be fixed but the smash repairer crashed their car. The couple sought redress for the car’s value being reduced but got nowhere. Following our intervention they will get mag wheels, roof racks and seat covers, plus two services free.