Making customers pay for Fisker vehicle recall repairs is illegal, DOJ says By Reuters

(Reuters) – The U.S. Justice Department said in a court filing on Monday that bankrupt electric vehicle maker Fisker’s ( OTC: ) plan to pass on the costs of vehicle recalls to customers is illegal.

Fisker filed for bankruptcy protection in June with plans to sell assets and restructure debt in an attempt to save operations.

The company has also issued several recalls this year to address issues with door handles, faulty software and non-compliance with safety standards.

As part of Fisker’s bankruptcy plan, the manufacturer is required to fix defective and non-compliant vehicles “without charge when the vehicle … is presented for repair,” the filing said.

Fisker did not immediately respond to a Reuters request for comment.

The Justice Department also said the part of the plan where vehicle owners could be reimbursed for paying for out-of-pocket repairs also violates the National Motor Vehicle Safety and Traffic Act.

Fisker is also under investigation by the US Securities and Exchange Commission, which objects to the liquidation plan, citing a lack of clarity about how and whether Fisker plans to keep its corporate records.