Mandatory Informal Dispute Settlement Procedure (BBB Auto Line) in Michigan

Michigan is one of several states where consumers may be required to participate in a manufacturer’s informal dispute settlement procedure (typically BBB Auto Line) before filing court action. The requirement comes from MCL § 257.1407(1).

When BBB Auto Line is mandatory

If the manufacturer has established an informal dispute settlement procedure that:

• Meets the federal requirements of 16 C.F.R. Part 703; AND
• Is certified under MCL § 257.1407(1);

then the consumer must complete that procedure before pursuing Lemon Law remedies in court. Failure to comply bars the Lemon Law action.

How to verify a certified program exists

• Owner’s manual — manufacturers must disclose certified IDS programs.
• Warranty book.
• Manufacturer’s customer-relations line.
• BBB Auto Line’s participating-manufacturer list (bbb.org/auto-line).

If your manufacturer doesn’t have a certified program, you can go directly to court action.

How BBB Auto Line works in Michigan

1. Consumer files online or by mail with BBB Auto Line (free).
2. BBB collects records from consumer and manufacturer.
3. Scheduling typically within 40 days.
4. Hearing telephone or in-person, 1-3 hours.
5. Written decision typically within 40 days of the hearing.

Total timeline: typically 60-100 days.

Decisions can include

• Refund under MCL § 257.1403.
• Replacement vehicle.
• Additional repair attempts.
• Denial.

Decision is binding on the manufacturer if the consumer accepts. Not binding on the consumer — if the consumer rejects, they can pursue court action.

What BBB Auto Line does NOT provide

• Attorney fees — no fee shifting through arbitration.
• Magnuson-Moss federal-court remedies — only available in federal court.
• MCPA damages (where applicable) — only available in civil court.
• Punitive damages.

For these remedies, court action is required after BBB Auto Line completes.

Magnuson-Moss informal dispute procedure overlap

Magnuson-Moss § 2310(a)(3) permits manufacturers to require federal-claim consumers to use a qualifying IDS procedure before filing Magnuson-Moss litigation. For BBB Auto Line participating manufacturers, the same arbitration step satisfies both Michigan Lemon Law and Magnuson-Moss IDS requirements.

When BBB Auto Line is the right resolution

• Clean refund or replacement case.
• No significant misrepresentation facts.
• Self-representing.
• Want fast, free resolution.
• Lower-value vehicle.

When to reject the BBB Auto Line decision and go to court

• Want federal Magnuson-Moss mandatory attorney fees.
• High-value vehicle.
• Manufacturer’s records suggest deceptive practices warranting MCPA exploration.
• BBB Auto Line decision is materially below expected court recovery.

Procedurally — what to expect at the hearing

• Brief opening statements by both sides.
• Consumer presents the case — repair orders, certified-mail notice, photos/videos.
• Manufacturer responds — often with a technical witness from the regional service office.
• Panel questions both sides.
• Closing arguments.

No formal evidence code. The panel weighs documentation pragmatically.

After BBB Auto Line — what if you reject the decision

If you reject the arbitration decision:

• You can still pursue court action — including federal court under Magnuson-Moss.
• The arbitration decision is not binding on the court (de novo review).
• However, prior arbitration positions can become discoverable.

Bottom line

BBB Auto Line is a mandatory procedural step in many Michigan cases — but its narrow remedies make it incomplete for cases where the consumer wants federal Magnuson-Moss attorney-fee recovery. For those cases, BBB Auto Line is a procedural box to check before federal-court action.

Get a free case review before deciding.

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