A Plain English Guide

NOTE: This is intended to be a simplified digest of the Act, as amended effective January 1, 1996. Please refer to the actual language of the law (C.R.S. 42-9-101) when necessary. MVRA DOES NOT APPLY TO:

• Trucks over 8,500 lbs.
• farm vehicles
• motorcycles
• antique cars (25 or more years old)
• collector's items.

I. Written Consent and Estimate Provisions

A written estimate MUST be provided when costs of labor and parts will be $100 or more (excluding towing and sales tax).

The estimate MUST include:

• total cost of repairs
• completion date
• amount that will be charged for storage (not to exceed $10 per day) if vehicle not picked up within three business days after the owner has been notified
• whether the customer wants replaced parts returned
• cost of reassembly (if customer chooses not to have the work done) and replacement of parts destroyed in disassembly

Exception: Consent to repair must be written unless:

• the customer signs a waiver of the estimate right
• the estimate is after a diagnostic disassembly which is necessary to determine the initial problem
• the estimate is for additional charges
• the vehicle is towed in or left before/after business hours, in which case NO MORE THAN $100 WORTH OF WORK IS ALLOWED without getting owner consent.

To give up the right to an estimate, the customer must sign a statement printed in BOLD type: "I DO NOT WISH TO RECEIVE ANY ESTIMATE, EITHER WRITTEN OR ORAL, TO WHICH I AM ENTITLED BY LAW, BEFORE REPAIRS ARE AUTHORIZED." The customer's signature is needed to authorize repairs, in addition to the customer's signature on the estimate waiver.

If no written consent is given at the outset, the garage must ORALLY communicate the estimate to the customer, which must then be recorded in writing in specific detail (date, time of the call, manner of consent, who gave the consent, initials of the employee calling and phone number called) on the invoice and/or repair order.

In the case where ADDITIONAL REPAIRS are found to be needed after the original job is begun, the repair garage must get the customer's consent, written or oral, BEFORE the work is performed. Without written or oral consent for the additional repairs, a garage may charge only the estimated costs plus 10% or $25, whichever is LESS. The cost of sub-contract labor and/or parts beyond the control of the garage to correctly estimate may be charged in addition to the estimate.

DIAGNOSTIC CHARGE: If a diagnosis must be done before an estimate for repair can be given, the customer must be given an estimate which includes:

1. any charges for the diagnosis
2. the cost involved in disassembly
3. the cost of reassembly in the event the owner does not want to proceed with repairs, and
4. the cost of the parts needed to replace those destroyed in disassembly in order to restore the vehicle to its former condition. After the diagnosis is done, an estimate must be given orally to the vehicle owner, following the above procedure for oral consent to repairs.

II.Parts

Use of Used, Reconditioned or Rebuilt Parts: Either written or oral consent must be given BEFORE used, reconditioned or rebuilt parts can be installed. A garage cannot charge for new parts if they are not new. The garage must note on the work order what type of parts the vehicle owner wants installed.

Return of Replaced Parts: If requested at the outset, all parts except those warranty and exchange parts that must be returned to the manufacturer, must be given to the customer.

III. Completion Date

The first change in any original completion date must be written on the invoice and orally communicated to the customer no more than 24 HOURS after the original date has been missed.Any additional delays must be consented to by the customer and recorded under the rules for oral estimates. If no notification is given, or timely notification is violated, or consent refused, the contract may be cancelled and reassembly without cost is required, unless the customer was previously notified that reassembly is not possible. The customer pays only for those repairs that have been completed.Reassembly shall be completed within three days (a customer can specify a lesser condition of reassembly).

IV.Warranty Work

When doing additional work under a warranty given for a previous repair, a written notice with the completion date must be given to the customer.

V. Invoice and Other Charges

Invoice:
The invoice must be legible and a copy must be given to the customer. The garage must retain a copy of the customer invoice for three years. The invoice must include:

• customer's name and address
• vehicle year, make, license number, odometer reading (when brought into garage)
• date vehicle brought in
• itemization of charges for storage, taxes, service and handling, shop supplies, etc.
• identification of any subcontracted repairs
• part description (a name and number) and whether new, used, reconditioned or rebuilt and the charge for each part ** (see below)
• labor amount
• full name or employee number of every mechanic involved and which portion of the repairs done by each **

**If flat-rate price basis (menu-pricing structure) is used and price list is posted for customer viewing, these items may be left off the invoice.

A COPY OF THE ESTIMATE MUST BE ATTACHED TO THE INVOICE.

Storage Charges:
If the customer has been notified that repairs have been completed, storage charges may be charged beginning on the fourth day if the vehicle is not picked up. The following must be printed in BOLD type on the estimate: A STORAGE FEE OF NOT MORE THAN $10 PER DAY, BEGINNING ON THE FOURTH DAY, MAY BE CHARGED IF A MOTOR VEHICLE IS NOT REMOVED WITHIN THREE DAYS AFTER THE CUSTOMER IS NOTIFIED THAT REPAIRS HAVE BEEN COMPLETED, EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL HOLIDAYS.

VI. Penalties

Criminal Penalties:

1. For failure to provide the written or oral estimate required or failure to give a correct and complete invoice - MISDEMEANOR (fine from $500 to $2,000).
2. For committing a prohibited act (C.R.S. 42-9-111) such as: to charge for repairs without consent, to charge in excess of the estimate (plus 10% or $25, whichever is less, to misrepresent the necessity of repairs,to misrepresent that a vehicle is in a dangerous condition to misrepresent that repairs were done when they weren't to perform emissions repairs when such repairs are not indicated by the identified emissions failure to fail to give appropriate notice of a change in completion date to prepare incorrect work orders (without odometer reading)- MISDEMEANOR (fine from $500 to $1000).
3. For a violation of any other provisions of the MVRA - MISDEMEANOR (fine up to $500).
4. If convicted three times under the MVRA, the provisions of the Colorado Consumer Protection Act can be imposed, including injunctive relief and fines. This is a civil statute co-enforced by district attorneys and the Attorney General.

Customer's Right to Sue:
If a garage breaks the law, a customer may sue in Small Claims Court, and if the customer wins, may recover THREE TIMES the actual damages, but no less than $300.Small Claims Court limit is $5000 (beginning 1-1-96). A customer may sue in a higher court if the customer wishes to claim more. Attorney's fees may also be awarded.

The customer must send, by certified mail, a WRITTEN notice giving the garage 10 days to settle before the customer can file any action in court. A customer does not give up the right to sue when the bill is paid to get the vehicle back. This does not mean that the customer has consented to the charges. The customer must begin any action within one year.

Garage's Lien:
(C.R.S. 38-20-106.5) If a customer stops payment on a check written in payment of repairs or that check bounces, a garage must give written notice by certified mail in which the customer has 12 days to settle any dispute. If not resolved, the garage may repossess the vehicle if this can be done without a breach of the peace.

Prepared through a cooperative effort of the Colorado District Attorney's Consumer Sections and the Automotive Service Association of Colorado, Inc. (October, 1995)

The Motor Vehicle Repair Act from [http://www.co.boulder.co.us/index.htm]

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