Rest assured, it is not the timing belt. Like the others said, you can't see it just by opening the hood. If you have not gone 80,000 miles in it, it should be covered. I WOULD ask them for a loaner car though. Most dealerships will give you a loaner, especially for warranty work. Then they can take all the time they want, Right?
I would ask them why they think the engine is seized up if your husband only saw a belt fraying.
ADDITIONAL DETAILS:
I have been searching for information on 4 cylinder engines for your car to see if it is an interference engine. This is all I have come up with:
Chrysler rep Steven’s note: “The 2.4 Liter (148 cu. in.) in-line four cylinder engine is a double over head camshaft with hydraulic lash adjusters and four valve per cylinder design. The engine is free-wheeling; meaning it has provisions for piston-to-valve clearance. However valve-to-valve interference can occur, if camshafts are rotated independently.”
PS:
CHRYSLER INTERFERENCE ENGINE LIST
1993-95 1.5L Colt
1987-88 1.5L Colt
1992-95 1.5L Eagle Summit
1987-88 1.6L Colt
1989-92 1.6L Eagle Summit
1994-98 2.0L Neon Stratus
1990-95 2.0L Eagle Talon