A new Legal Services Plan opened on January 25, 2017 for eligible FCA, Ford, and General Motors members. It is called UAW-FCA-Ford-General Motors Legal Services Plan. An eligible member can open a new case by calling 1-800-482-7700. Under this new Plan, an eligible UAW member can receive "office work" legal services for a variety of legal matters including wills, deeds, powers of attorney, credit reporting, consumer contract questions, real estate advice relating to buys and sales and advice on uncontested divorces and family matters. In addition low cost referrals will be provided on some other types of cases such as bankruptcy, probate, guardianship and litigation matters. The old Legal Services Plan (which has not been able to open new cases since January 1, 2014) is continuing to work to conclude those cases that remain open. It is important to understand that the new Legal Services Plan has a new name and different benefits. |
Monday, January 30, 2017
The New UAW Legal Services Plan is open
About a year behind schedule, the new UAW Legal Services Plan is open and taking cases as of January 25, 2015. The following paragraph is take directly from their websit at www.uawlsp.com.
I appreciated the opportunity to serve UAW members and retirees as a staff attorney for UAW Legal Services Plan for 16 years, and for another 2+ years as a private attorney after the Plan closed to new cases. Even though I might be losing some business for things where the UAW families can use the new plan, I'm glad that they have some prepaid legal services available. I don't have any official relationship with the new plan ,but I wish them well.
Fighting Telecheck and Chexsystems
There are a number of "special purpose" credit reporting agencies that people may run into from time to time. There are agencies that specialize in reporting to landlords about tenants. There are business credit reporting agencies. Finally, there are Telecheck and Chexsystems.
These last two are the ones I want to talk about. Telecheck provides info to merchants at point of service regarding taking a patron's check. As far as I can tell, with actual paper checks going the way of the dodo bird, Telecheck seems to also be fading into the background. I had gone years without a complaint about Chexsystems also until recently. Banks use Chexsystems to screen applicants for new checking accounts. Banks report on history with checking accounts much like merchants report on the history of a consumer using credit.
Understand these key points about special purpose credit reporting agencies. When you are turned down for writing a check (Telecheck) or opening a bank account "Chexsystems", the party that turns you down has to give you written notice of the reason you were turned down, and give you information on the party they got the information from and the address where to get a copy of the report and how to dispute it. Firms that turn you down are not very good about giving you this notice, and when they don't, you may be able to sue them under the Fair Credit Reporting Act. You aren't going to break the bank. ($1000 or less in most cases), but you can sue. If this happens to you, and you are in Indiana, feel free to give me a call at 317-662-4529 or If you are out of Indiana, go to the NACA find an attorney page, at http://www.consumeradvocates.org/find-an-attorney
You can get a free copy of your Chexsystems report from Chexsystems' dedicated site, You should NOT file your dispute online though. You should file it by certified mail with confirmation of delivery.
I strongly suggest that you get your report and review it before you submit your dispute. If you don't you're guessing about what is on the report, and there is no need for that.
When I have time, I will try to supplement this post. In the meantime I'm going to give you some links to outside sites.
Here's the consumeraffairs.com for general information on Chexsystems.
https://www.consumeraffairs.com/chexsystems-news
Stikedebt.org has some letter sthat you can send to Telecheck and Chexsystems. I haven't vetted these letters, but they might be useful
http://strikedebt.org/drom/appendix-b/
You can complain about the special purpose credit bureaus, and the companies that turn you down without notice or the opportunity to challenge the decision to the Consumer Financial Protection Bureau. Here's the CFPB's complaint page.
http://www.consumerfinance.gov/complaint/
Here's a link to a page that touts 9 banks that don't use Chexsystems. These pages come and go, and the lists seem to go out of date quickly. If this list ends up being inaccurate, go on Google and look for another one.
https://www.gobankingrates.com/banking/9-banks-dont-use-chexsystems/
Do not pay for a list of non-chexsystems banks! Even the paid lists have a reputation for being inaccurate.
Here's a local Television Story on Chexsystems
Third Indystar/NACA/Call-For-Action "Ask a lawyer" Night was a success
Last Thursday, Indiana's NACA members teamed up with The Indianapolis Star and Call-for-Action, and had a "ask a lawyer" call in night. Six NACA volunteer lawyers spent over three hours answering questions for free on all legal topics from people who called in. I want to thank Tim Evans of the Indianapolis Star and Call-For-Action for working with me to set this up as all the Call-for-action volunteers plus my fellow Indianapolis-area consumer Lawyers
Robert Duff
Crystal Francis
Keith Hagan
Cherl Koch Martinez
Jerry Smith
We hope to continue doing this on approximately a quarterly basis, with the next one in April or May.
http://www.indystar.com/story/news/2017/01/30/lawyers-help-hoosiers-questions/97182402/
Robert Duff
Crystal Francis
Keith Hagan
Cherl Koch Martinez
Jerry Smith
We hope to continue doing this on approximately a quarterly basis, with the next one in April or May.
http://www.indystar.com/story/news/2017/01/30/lawyers-help-hoosiers-questions/97182402/
Saturday, January 28, 2017
Ten Year Old Used Cars are NOT Lemons
I have virtually stopped taking used car cases, and I have stopped advertising for them. Why? It's the 10-year-old vehicle problem. In short, a lot of people are buying 10 year old vehicles from used car lots, sometimes paying half what the vehicles cost new, and expecting them to be as problem-free as new cars. In short: they aren't, and the law doesn't expect them to be.
I think part of the problem is that 10 year old vehicles of today are in better shape than they were 10 years ago, and they look a LOT better. People tend to have bigger appitites than they have budgets. A lot of people want a fancy luxury vehicle or SUV. These vehicles cost $40,000 or more new, and people don't make wages to pay that much. A salesman shows them a 10 year old SUV that looks spotless, but has 150,000 miles but costs less than half as much as a new model, and it's an easy sale. The problem is that these vehicles have used up a lot of their of their problem-free life. They can be nursed to last quite a few more years, but only with maintenance and replacement of quite a few worn out parts, and the buyers of these vehicles haven't budgeted for the ongoing maintenance cost.
These cars aren't lemons. A lemon is a car that is bad from the beginning. A typical state lemon law labels a car a lemon if with 18 months or 18,000 miles after it is delivered to its FIRST buyer, the vehicle has the same problem subject to three or more repair attempts or is out of service 30 days or more within that first 18 months. That's a lemon. A vehicle that has gone 150,000 miles but now has problems is just an old car. (By the way, in Indiana, the mileage adjustment on vehicles that you give back to the manufacturer under the lemon law is based on depreciating the entire vehicle price over 100,000 miles. Under lemon law standards all of these 10 year old vehicles have been fully depreciated.)
Buying a 10 year old vehicle is a form of gambling. Perhaps in the majority of cases, especially if you don't put a lot of miles on the vehicle, driving a 10 year old car can be very inexpensive. You might go several years with just normal maintenance. On the other hand, You could have five or more things go wrong in a year that each costs $1,000 or more to fix. You could have engine or transmission problems that cost $5,000 to $10,000 to fix - and much more for a lot of foreign and luxury vehicles.
Guessing wrong on a 10 year old vehicle can ruin your financial life for years. A new engine for a Chevrolet Tahoe can cost $6,000 before installation. Somebody who put a 10 year old Tahoe on 4 year payment at 15% interest, not only doesn't have $10,000 for a repair bill; he/she doesn't have the credit to finance a 10,000 repair bill. The vehicle ends up being repo'd and sold at auction for $1000 The finance company adds finance charges, repossession charges, court costs and attorney fees and sues the buyer for over $20,000. In most states, if you are employed, you can get garnished for 25% of your wages. That's bad, but that's the price of the dice and taking the risk on an old car that you can't afford to repair. (Warranties on these old cars arent' that helpful. They cost more than the likely repairs. They exclude more than they cover, and they have deductibles that sometimes still renders the repairs unaffordable.) You are likely to be stuck in subprime credit for 7 years. In Indiana, judgments can be collected for 20 years, and more in some cases. For some people guessing wrong on a used car leads to a bankruptcy.
Sometimes car dealers engage in fraudulent or illegal conduct, but most of the time they don't, or if they do the violations are minor and technical, and don't justify undoing a car deal. I used to review all the documents for anyone who called me for a car case at no charge. I found that over 90% of the time there was nothing to sue on. Now I charge for case reviews and get a lot less of that business.
The bottom line is that you are considering buying a 8 to 12 year old vehicles that cost $15,000 or more, you ought to either have a financial reserve to cover repairs or you should rethink your plan and buy a new or nearly new (under manufactuer's warranty) vehicle for the same money. Your vewhicle may be smaller and have less frills, but you will be the beneficiary of the problem-free period of the vehicle's useful life.
I think part of the problem is that 10 year old vehicles of today are in better shape than they were 10 years ago, and they look a LOT better. People tend to have bigger appitites than they have budgets. A lot of people want a fancy luxury vehicle or SUV. These vehicles cost $40,000 or more new, and people don't make wages to pay that much. A salesman shows them a 10 year old SUV that looks spotless, but has 150,000 miles but costs less than half as much as a new model, and it's an easy sale. The problem is that these vehicles have used up a lot of their of their problem-free life. They can be nursed to last quite a few more years, but only with maintenance and replacement of quite a few worn out parts, and the buyers of these vehicles haven't budgeted for the ongoing maintenance cost.
These cars aren't lemons. A lemon is a car that is bad from the beginning. A typical state lemon law labels a car a lemon if with 18 months or 18,000 miles after it is delivered to its FIRST buyer, the vehicle has the same problem subject to three or more repair attempts or is out of service 30 days or more within that first 18 months. That's a lemon. A vehicle that has gone 150,000 miles but now has problems is just an old car. (By the way, in Indiana, the mileage adjustment on vehicles that you give back to the manufacturer under the lemon law is based on depreciating the entire vehicle price over 100,000 miles. Under lemon law standards all of these 10 year old vehicles have been fully depreciated.)
Buying a 10 year old vehicle is a form of gambling. Perhaps in the majority of cases, especially if you don't put a lot of miles on the vehicle, driving a 10 year old car can be very inexpensive. You might go several years with just normal maintenance. On the other hand, You could have five or more things go wrong in a year that each costs $1,000 or more to fix. You could have engine or transmission problems that cost $5,000 to $10,000 to fix - and much more for a lot of foreign and luxury vehicles.
Guessing wrong on a 10 year old vehicle can ruin your financial life for years. A new engine for a Chevrolet Tahoe can cost $6,000 before installation. Somebody who put a 10 year old Tahoe on 4 year payment at 15% interest, not only doesn't have $10,000 for a repair bill; he/she doesn't have the credit to finance a 10,000 repair bill. The vehicle ends up being repo'd and sold at auction for $1000 The finance company adds finance charges, repossession charges, court costs and attorney fees and sues the buyer for over $20,000. In most states, if you are employed, you can get garnished for 25% of your wages. That's bad, but that's the price of the dice and taking the risk on an old car that you can't afford to repair. (Warranties on these old cars arent' that helpful. They cost more than the likely repairs. They exclude more than they cover, and they have deductibles that sometimes still renders the repairs unaffordable.) You are likely to be stuck in subprime credit for 7 years. In Indiana, judgments can be collected for 20 years, and more in some cases. For some people guessing wrong on a used car leads to a bankruptcy.
Sometimes car dealers engage in fraudulent or illegal conduct, but most of the time they don't, or if they do the violations are minor and technical, and don't justify undoing a car deal. I used to review all the documents for anyone who called me for a car case at no charge. I found that over 90% of the time there was nothing to sue on. Now I charge for case reviews and get a lot less of that business.
The bottom line is that you are considering buying a 8 to 12 year old vehicles that cost $15,000 or more, you ought to either have a financial reserve to cover repairs or you should rethink your plan and buy a new or nearly new (under manufactuer's warranty) vehicle for the same money. Your vewhicle may be smaller and have less frills, but you will be the beneficiary of the problem-free period of the vehicle's useful life.
Tuesday, January 24, 2017
Have You Had A Vehicle Repossessed by Consumer Portfolio Services?
I am processing a new claim of an outrageous repossession by a contractor for Consumer Portfolio Services. Have you recently had a car or truck repossessed by this company? If so, please contact me.
You should be aware that Consumer Portfolio Services, Inc. (CPS) entered into a $5.5 million dollar consent decree with the Federal Trade Commission in 2015 to settle claims relating to a number of unfair practices. You can read about the settlement here.
You should be aware that Consumer Portfolio Services, Inc. (CPS) entered into a $5.5 million dollar consent decree with the Federal Trade Commission in 2015 to settle claims relating to a number of unfair practices. You can read about the settlement here.
Simple Dispute Letter to Send to Debt Collectors under the FDCPA
One of my new year's resolutions was to put a simple dispute letter on my blog for people to send to debt collectors to dispute debts. I suggest you send this to the collector BY FAX and retain a fax confirmation sheet. You may have to call the debt collector first to get the right fax number.
Once the collector receives this letter, the collector may not contact you until the collector sends you validation of the debt. What validation is is complicated. The more specific you are in your dispute, the more specific the debt collector must be in validating.
-------
Once the collector receives this letter, the collector may not contact you until the collector sends you validation of the debt. What validation is is complicated. The more specific you are in your dispute, the more specific the debt collector must be in validating.
-------
To:
Debt Collector Name
Debt Collector Fax
number VIA
FAX
DATE
From:
Consumer Name:
Consumer Address:
City State Zip:
Consumer Phone Number:
Account Number:
Original Creditor:
Basis of the Dispute:
Dear Sir or Madam
I am the above-named consumer. I dispute this debt and demand that you
obtain validation before continuing communications.
Basis of the Dispute:
Further, you do not have permission to call me on the cell
phone number listed above. If I previously granted permission, that permission is
revoked. I ask that all communications
be in writing.
Sincerely,
_____________
----------
Sunday, January 22, 2017
Call for Action and Indiana NACA Presents another "Ask a Lawyer" Night January 26, 2017
Indiana's NACA attorneys will volunteer to staff the Call for Action consumer hotline at the Indianapolis Star offices to give free answers to legal questions from 5:30 to 8:M on Thursday, January 26, 2017. The call in # is (317) 444-6800. This is the third time we've done this, and it has proven to be a popular event. Thanks to Tim Evans, the Call for Action coordinator for assisting in the coordination of this event. Here's a link to the Indianapolis Star info page.
By the way, when we are not having attorney call in nights, folks can call that same number from 11:00AM-1:00 weekdays and talk to non-attorney volunteers.
By the way, when we are not having attorney call in nights, folks can call that same number from 11:00AM-1:00 weekdays and talk to non-attorney volunteers.
Saturday, January 21, 2017
Loan Star Funds and Caliber Home Loans Accused of Stiffing a Contractor for $2.9 Million
My most popular posts in this blog have been about Loan Star Funds, and in particular its LSF9 Master Participation Trust fund and its servicer Caliber Home Loans. I've gotten emails from more people than I can count, and almost all of them are complaining that they can't get a hold of anyone at Caliber to talk about their mortgage or the condition of their property, or they can't get LSF9 to even consider modifying their mortgage. I CAN'T GIVE THESE PEOPLE ANY RELIEF. There is no remedy for not answering phone calls, and LSF9 doesn't have to modify the mortgages.
All that being said, I think this company deserves all the bad press its conduct generates. That's why I'm linking this article about accusations that Caliber refused to pay a contractor, Chronos Solutions that was hired to fix up houses that Caliber foreclosed upon. Hmm, where have we heard before that a billionaire refused to pay contractors?
Anyway, feel free to vent on Lone Star - Caliber in the comments. Please don't email me because Caliber won't modify your mortgage or won't give you information on how you can buy a foreclosed house. You can complain to the CFPB, unless the Republicans have gotten rid of it by then. If you value the CFPB as the only federal agency that is really working in the public interest relating to the financial industry, please send a message to your United States Senators and ask them to preserve a strong, independent Consumer Financial Protection Bureau, preferably with Richard Cordray as Director.
All that being said, I think this company deserves all the bad press its conduct generates. That's why I'm linking this article about accusations that Caliber refused to pay a contractor, Chronos Solutions that was hired to fix up houses that Caliber foreclosed upon. Hmm, where have we heard before that a billionaire refused to pay contractors?
Anyway, feel free to vent on Lone Star - Caliber in the comments. Please don't email me because Caliber won't modify your mortgage or won't give you information on how you can buy a foreclosed house. You can complain to the CFPB, unless the Republicans have gotten rid of it by then. If you value the CFPB as the only federal agency that is really working in the public interest relating to the financial industry, please send a message to your United States Senators and ask them to preserve a strong, independent Consumer Financial Protection Bureau, preferably with Richard Cordray as Director.
Friday, January 20, 2017
There's no such thing as a free movie - OR IS THERE? - FOUR LEGAL WAYS TO WATCH MOVIES AND TV FOR FREE
I thought I'd do a change-of-pace post from consumer law to good old-fashioned consumerism. According to Fortune magazine, the cable TV bill for the average US household reached $103/month last year. My family cut the cable 19 years ago when our cable bill reached the outrageous level of $25/month. It's no big deal, between broadcast TV using an antenna, yes an antenna, the web, streaming video plus DVDs and Blu-Rays, we have more entertainment options than ever.
These days we splurge, spending about $30/month for streaming video on Hulu, Netflix and Amazon Prime, but we still pay less than a third of the average household's bill. The truth be told though, even without the three paid streaming services above, there are several places to find movies and television programs legally for free. This doesn't even count Youtube where a lot of stuff that technically shouldn't be there is. I will list them in reverse order of quality. By the way, if you have one to add, please comment at the end of the blog post.
#4 Yahoo Streaming Video
Once upon a time, Hulu had a free tier which included the most recent seasons of most of the television shows and a few old movies. Then Hulu went to $8.00/month and improved its movie and TV content greatly, but the free tier went away - well, partially, because a limited version of Hulu is still available free at Yahoo.com. Yahoo has a decent selection of recent and classic TV programs. Its movie selection is really bad.
#3 VUDU "Movies on Us"
VUDU is Walmart's streaming video site. It has a section called "movies on us" that surprised me with its quality when I checked it out. The "movies on us" have commercials, but that's no big deal. The free movies include relatively recent movies such as "Slum Dog Millionaire" and some classics such as Clint Eastwood's "The Good, the Bad, and the Ugly". Vudu "Movies on Us" is definitely worth checking out. There isn't much TV content here, but that is readily available elsewhere.
#2 CRACKLE
Crackle.com is Sony's ad-supported streaming service. It has a solid line-up of both television shows and movies, though the content does tend to skew decidedly towards male tastes. Older TV programs include "Seinfeld" and "Married with Children" is heavy on action and adventure, plus a lot of anime but with comedies like "Animal House" and "Harold and Kumar go to White Castle", I probably watch Crackle almost as much as the Netflix that I pay for.
#1 YOUR PUBLIC LIBRARY - INCLUDING HOOPLA STREAMING
Almost all public libraries rent DVDs and Blu-Rays now and have for a long time. Typically, you can go online and reserve your discs and have them brought to your local library branch. The selection at my library is broader and deeper than any of the streaming services, and now many libraries offer streaming video to card-holders as well. There are a few different streaming services that libraries use. My library, Indianapolis Public Library, uses a service called Hoopla. (hoopladigital.com). Hoopla has some differences from the services above. You can only "check out" 10 items per month, BUT you can download the movies to your device and watch them offline for 3 days, after which time they automatically expire. You may have to sign up for hoopla using your library card information at your public library website, but once you do, you may be surprised at the amount of stuff you can check out through Hoopla. Hoopla's collection seems more diverse than Crackle's, but it isn't outstandingly large. It has a surprising number of newer titles and movies that are hard to find elsewhere. For example, I just watched Michael Moore's 2016 documentary, "Where to Invade Next" on Hoopla. It isn't available on any of the free or subscription streaming services. (It seems like Hoopla also has a lot of things that have rotated off Netflix.) Hoopla by itself would not earn the top spot on this list, but Hoopla combined with the physical DVDs & Blu Rays easily makes the public library the top spot for free movies and TV.
How do you find what you are looking for? If you have an idea of what program or movie that you want to watch, but you don't know where it might be streaming for free, try going to justwatch.com. Using the search function on Justwatch, you can find which services have the program you are looking for, including the paid services.
Tuesday, January 17, 2017
Generic Credit Report Dispute Letter with Tips
How to dispute information on your credit report:
You shouldn't have to pay someone or a company to dispute items on your credit report. Anything a third party could dispute for you, you can dispute for yourself.
There is actually more than one way to dispute. the credit bureaus will have you believe that you can dispute the items over the telephone or over their website. That sometimes works, but when it doesn't, the credit bureaus (which we in the biz call "Credit Reporting Agencies" or "CRA"s) often claim that you never disputed the items in the first place. for that reason, consumer lawyers suggest that you dispute in writing by certified mail. I have put together a very simple request form with the mailing addresses for the three main CRAs, Experian, Equifax, and Trans Union. All you have to do is cut and paste the text below the dashes into a word processing file, then fill in your identifying information and information about your disputed accounts.
----------
Experian
701 Experian Pkwy
Allen, TX 75013
Some tips:
Make sure your name matches the name as is currently showing on your credit report. If they have your name wrong, you need to list your name as a corrected item. Similarly, if they have your address wrong or your place of employment or other general info, you can dispute that as well. Don't worry about giving them your social security number. They already have it. Same with your date of birth.
When possible make your description of the basis for the dispute simple. For example, "not my account", "I don't recognize this account", "incorrect balance", "uncredited payments", "incorrect date of last payment", "liability disputed with creditor" (Note, if you have disputed liability with the creditor, send a copy of your dispute letter.), "account is out of date" (Negative items for the most part can only stay on your credit report 7 years from the date the item went in default. There are exceptions. Also, seedy collectors often "re-age" obsolete accounts, changing the date of delinquency or date of last activity to keep the item on your report.)
Some of the most common credit reporting issues include mixed files - where your information is mixed up with that of someone with the same or similar names, including Jr./Sr. mixups, Failure of the information provider to update records when paid, and transposed figures. Identity theft problems are serious, but they are comparatively rare.
If you dispute an item or items with a CRA, but the item is not corrected on your subsequent credit report, you will likely benefit by talking with a consumer lawyer about your options. You can find one at www.consumeradvocates.org, the website for the National Association of Consumer Advocates. If you are in Indiana, you can call me at 317-662-4529 or reach me through my website www.hoferlawindy.com.
Don't make a blanket dispute of every (or virtually every) item on your credit report, at least don't without having a good faith reason why the item should be corrected. Blanket disputes rarely yield good results
You want to begin the dispute process several months before you expect to be purchasing a home or expensive item on credit. This gives you time for the dispute letter, a reply from the CRA and your follow-up response to the CRA.
In the case of consumer transactions where you have a dispute with the merchant, before you go through the credit report process, you want to have already sent a written dispute to the merchant and to have received a reply.
Copyright 2017 by Steven R. Hofer. Free redistribution is preauthorized if redistributed with attribution and copyright notice intact. Linking is expressly permitted.
You shouldn't have to pay someone or a company to dispute items on your credit report. Anything a third party could dispute for you, you can dispute for yourself.
There is actually more than one way to dispute. the credit bureaus will have you believe that you can dispute the items over the telephone or over their website. That sometimes works, but when it doesn't, the credit bureaus (which we in the biz call "Credit Reporting Agencies" or "CRA"s) often claim that you never disputed the items in the first place. for that reason, consumer lawyers suggest that you dispute in writing by certified mail. I have put together a very simple request form with the mailing addresses for the three main CRAs, Experian, Equifax, and Trans Union. All you have to do is cut and paste the text below the dashes into a word processing file, then fill in your identifying information and information about your disputed accounts.
----------
Date
Equifax
1550 Peachtree St NW
Atlanta, GA 30309-2468
1550 Peachtree St NW
Atlanta, GA 30309-2468
Experian
701 Experian Pkwy
Allen, TX 75013
Trans Union
555 West Adams
Chicago, IL 60661
555 West Adams
Chicago, IL 60661
Consumer Dispute: Name
Address
DOB
ID
Dear Sir or Madam:
I am the above-named
consumer. I dispute the following
information on my credit report .Please
reinvestigate the following items and send an updated report to my attention at
the address above. If applicable, supporting information is attached.
Creditor Account# Reason for the Dispute
Sincerely
___________________________ __________________________
Consumer Signature Date
----------
Some tips:
Make sure your name matches the name as is currently showing on your credit report. If they have your name wrong, you need to list your name as a corrected item. Similarly, if they have your address wrong or your place of employment or other general info, you can dispute that as well. Don't worry about giving them your social security number. They already have it. Same with your date of birth.
When possible make your description of the basis for the dispute simple. For example, "not my account", "I don't recognize this account", "incorrect balance", "uncredited payments", "incorrect date of last payment", "liability disputed with creditor" (Note, if you have disputed liability with the creditor, send a copy of your dispute letter.), "account is out of date" (Negative items for the most part can only stay on your credit report 7 years from the date the item went in default. There are exceptions. Also, seedy collectors often "re-age" obsolete accounts, changing the date of delinquency or date of last activity to keep the item on your report.)
Some of the most common credit reporting issues include mixed files - where your information is mixed up with that of someone with the same or similar names, including Jr./Sr. mixups, Failure of the information provider to update records when paid, and transposed figures. Identity theft problems are serious, but they are comparatively rare.
If you dispute an item or items with a CRA, but the item is not corrected on your subsequent credit report, you will likely benefit by talking with a consumer lawyer about your options. You can find one at www.consumeradvocates.org, the website for the National Association of Consumer Advocates. If you are in Indiana, you can call me at 317-662-4529 or reach me through my website www.hoferlawindy.com.
Don't make a blanket dispute of every (or virtually every) item on your credit report, at least don't without having a good faith reason why the item should be corrected. Blanket disputes rarely yield good results
You want to begin the dispute process several months before you expect to be purchasing a home or expensive item on credit. This gives you time for the dispute letter, a reply from the CRA and your follow-up response to the CRA.
In the case of consumer transactions where you have a dispute with the merchant, before you go through the credit report process, you want to have already sent a written dispute to the merchant and to have received a reply.
Copyright 2017 by Steven R. Hofer. Free redistribution is preauthorized if redistributed with attribution and copyright notice intact. Linking is expressly permitted.
Monday, January 16, 2017
Are You a Victiim of Wage Theft?
Is your employer making you "work off the clock"? Are you getting hours docked from your pay? Are you forced to do work when you are clocked out? Did you go through unpaid training or orientation? Wage theft is especially common in the fast food, trucking and retail industries. If you are in INDIANA and you have an issue of unpaid wages or overtime, please contact my office.
Have You been Sued by Nextgear Capital, Inc.?
Many car dealers and guarantors of auto floorplan loans are sued in Indiana by Nextgear Capital, Inc. Most of the people sued don't know how to defend themeselves. Some think that just because the dealership owes money on the loan, there is nothing they can do. This is not necessarily the case, and this is especially true if the lawsuit alleges fraud. If you are sued by Automotive Finance Corporation, we urge you to call us. We will talk to you on the phone at no charge.
If you guaranteed an auto floorplan loan you may have defenses that you don't know about. That's why it is very important for you to contact a lawyer as soon as you are sued.
If you guaranteed an auto floorplan loan you may have defenses that you don't know about. That's why it is very important for you to contact a lawyer as soon as you are sued.
Have You Been Sued by Automotive Finance Corporation?
Many car dealers and guarantors of auto floorplan loans are sued in Indiana by Automotive Finance Corporation (AFC). Most of the people sued don't know how to defend themeselves. Some think that just because the dealership owes money on the loan, there is nothing they can do. This is not necessarily the case, and this is especially true if the lawsuit alleges fraud. If you are sued by Automotive Finance Corporation, we urge you to call us. We will talk to you on the phone at no charge.
If you guaranteed an auto floorplan loan you may have defenses that you don't know about. That's why it is very important for you to contact a lawyer as soon as you are sued.
If you guaranteed an auto floorplan loan you may have defenses that you don't know about. That's why it is very important for you to contact a lawyer as soon as you are sued.
Sunday, January 15, 2017
My Accidental Practice Area Representing Out-of-State Dealers against Floorplanning Companies
The vast majority of my practice involves representing consumers bringing claims under consumer protection statutes like he Fair Debt Collection Practices Act, Fair Credit Reporting Act, Credit Services Organizations Act, Telephone Consumer Privacy Act, and more. Recently, as it so happens I have been contacted by multiple individuals who have needed help because were alleged to have signed personal guarantees on behalf of car dealers on Floorplanning contracts, and I have built up some experience in this area. As a member of the National Association of Consumer Advocates, I have pledged not to represent corporations against consumers, but I have no problem representing businesses and individual proprietors in cases where a business is on the other side.
A floorplanning company provides financing to auto dealers for their inventory, taking a lien on the vehicles and releasing the liens as the vehicles are sold. The financing of the lot of cars is called a "floorplan". As it so happens, two of the most important floorplanning companies in the United States are based immediately to the north of my homebase in Indianapolis, Indiana, in the northern suburbs of Hamilton County. These copanies are Automotive Serices Corporation (AFC) and Nextgear Capital, Inc. (Nextgeer). The floorplan contracts issued by these companies often have provisions that suits are to be brought in Hamilton County, Indiana. This gives the companies the ability to sue dealers and personal guarantors from all over the country in Noblesville, Indiana.
If you are a dealer or a personal guarantor of a dealership that gets sued by ASC in Indiana, you should be aware that even if you or your dealership legitimately owes money to the floorplanner, you may still find it in your interest to hire a lawyer to contest the suit. For one thing, there may be the opportunity to settle short or to get favorable payment plans. Another thing is that the lawsuit against you may include a claim that payments owed to the dealer were fraudulently diverted. Fraud is hard to prove when contested, but it is easy for them to get a default judgment for fraud. If they get a judgment for fraud, you likely will not be able to discharge that judgment in bankruptcy.
The bottom line is that if you are sued by ASC or Nextgear in Indiana, you should strongly consider hiring an attorney to defend you. For a retainer less than the amount owed on one car, you may be able to protect yourself from much higher liability.
Note that if you are an Indiana dealer sued by ASC or Nextgear, I will probably not personally represent you, I will probably refer you to another attorney; however if you are from out-of-Indiana I can provide you affordable options for defense of floorplanning suits.
A floorplanning company provides financing to auto dealers for their inventory, taking a lien on the vehicles and releasing the liens as the vehicles are sold. The financing of the lot of cars is called a "floorplan". As it so happens, two of the most important floorplanning companies in the United States are based immediately to the north of my homebase in Indianapolis, Indiana, in the northern suburbs of Hamilton County. These copanies are Automotive Serices Corporation (AFC) and Nextgear Capital, Inc. (Nextgeer). The floorplan contracts issued by these companies often have provisions that suits are to be brought in Hamilton County, Indiana. This gives the companies the ability to sue dealers and personal guarantors from all over the country in Noblesville, Indiana.
If you are a dealer or a personal guarantor of a dealership that gets sued by ASC in Indiana, you should be aware that even if you or your dealership legitimately owes money to the floorplanner, you may still find it in your interest to hire a lawyer to contest the suit. For one thing, there may be the opportunity to settle short or to get favorable payment plans. Another thing is that the lawsuit against you may include a claim that payments owed to the dealer were fraudulently diverted. Fraud is hard to prove when contested, but it is easy for them to get a default judgment for fraud. If they get a judgment for fraud, you likely will not be able to discharge that judgment in bankruptcy.
The bottom line is that if you are sued by ASC or Nextgear in Indiana, you should strongly consider hiring an attorney to defend you. For a retainer less than the amount owed on one car, you may be able to protect yourself from much higher liability.
Note that if you are an Indiana dealer sued by ASC or Nextgear, I will probably not personally represent you, I will probably refer you to another attorney; however if you are from out-of-Indiana I can provide you affordable options for defense of floorplanning suits.
Thursday, January 5, 2017
A change in Focus in Defective RV Cases - Sending a "Shot Across the Bow" Letter to the Dealer or Manufacturer
I've been listening to what peopel have to say who have problems with defective RVs. In the past, my approach was to give some initial advice to the RV owners when they call at no charge, advice regarding self help in dealing with the RV dealer or manufacturer. In some cases, that is all the buyer needs to work things out, and they never have to hire the attorney. In other cases, the RV is so bad, the dealer or manufacturer is so nonresponsive, or both that court litigation is required that costs thousands of dollars.
In the past, I have mostly stayed out of these cases until there was no alternative to litigation. This saves the buyers money in the short run in giving the other party multiple chances to avoid litigaiton. It does, however expose the buyer to a lot of headaches in the short run. I have therefore changed my philosophy, and I think that maybe in the average case a "shot across the bow" attorney letter after first repair attempt (or sometimes request) may be most efficient thing over all. Perhaps the client has to pay for an hour of attorney time in sending the letter, but the letter buys better treatment in the follow-up repair attempts that justifies the money. Given the headaches in carting a Defective RV across the country for service, if the shot-across-the-bow eliminates the need for even one fruitless trip, the early attonrey intervention is worthwhile.
In the past, I have mostly stayed out of these cases until there was no alternative to litigation. This saves the buyers money in the short run in giving the other party multiple chances to avoid litigaiton. It does, however expose the buyer to a lot of headaches in the short run. I have therefore changed my philosophy, and I think that maybe in the average case a "shot across the bow" attorney letter after first repair attempt (or sometimes request) may be most efficient thing over all. Perhaps the client has to pay for an hour of attorney time in sending the letter, but the letter buys better treatment in the follow-up repair attempts that justifies the money. Given the headaches in carting a Defective RV across the country for service, if the shot-across-the-bow eliminates the need for even one fruitless trip, the early attonrey intervention is worthwhile.
Tuesday, January 3, 2017
Did you get a call from (585) 993-9949 "Secrets of the Wealthy" "Coach Bob"?
I got a call from this number to my business phone. Apparently you are going to make a lot of money if you leave your cell phone number and email address. They don't say what the name of the company is, but you are going to make a lot of money, so trust them, right? Yeah, uh-huh. These calls to your cell phone likely violate the Telephon Consumer Privacy Act. This company is so blatant that they are likely so outside US jurisdiction that they don't fear legal action. It appears to me that this is a ploy to get your cell number and email to sell on a "suckers list" on the dark web. If I am wrong, post in the comments.
Monday, January 2, 2017
Have you been getting Telemarketing Calls from (317) 548-4319?
I have received a complaint about spam telemarketing calls from 317-548-4319. The automated voice associated with these calls asks the callee if he/she is interested in a home security system and offers to transfer them to a live operator. You should be aware that unless you gave specific permission for this company to call your cell phone, or if this company calls your landline after you have added your number to the "do not call" list, thate caller could be violating the Telephone Consumer Privacey Act, and you can sue the caller fro $500 to $1500 per call. Please contac tmy office at hoferlawindy.com for more information.
New York Times Spotlights Problems in the Rent-to-own Housing Market
The New York Times has brought attention to growing problems in the rent-to-own housing market. Because many former homeowners had their credit ruined because of a foreclosure during the mortgage crisis, they have been driven into nontraditional housing markets includinge rent-to-owns.
As the NYT points out, rent-to-own deals can be worse than traditional rentals and worse than traditional mortgages due to fewer consumer protections than either. Habitibility rules that apply to rental housing may not apply to certain rent-to-owns, also the applicability of laws concerning refundability of damage deposits and other restrictions on eviction are iffy.
The disclosure protections that apply to home mortgages also may not apply to rent-to-own contracts. Because rent-to-own contracts often/usually shift the burden of repair and rehabilitation of the property to the tenant, the costs of a rent-to-own house are often unpredictible.
All of that being said, rent-to-own contracts are not all bad, and they can work for some people, especially people who have the time and ability to do a lot of repair work. The devil is in the details.
If you have a problem with a rent-to-own or contract-for-deed house, contact a NACA lawyer in your area through the NACA find an attorney list. Even if that NACA lawyer is not familiar with rent-to-own issues he or she has access to the wisdom of all the other NACA lawyers, so there's still a great chance that your problems can be addressed.
As the NYT points out, rent-to-own deals can be worse than traditional rentals and worse than traditional mortgages due to fewer consumer protections than either. Habitibility rules that apply to rental housing may not apply to certain rent-to-owns, also the applicability of laws concerning refundability of damage deposits and other restrictions on eviction are iffy.
The disclosure protections that apply to home mortgages also may not apply to rent-to-own contracts. Because rent-to-own contracts often/usually shift the burden of repair and rehabilitation of the property to the tenant, the costs of a rent-to-own house are often unpredictible.
All of that being said, rent-to-own contracts are not all bad, and they can work for some people, especially people who have the time and ability to do a lot of repair work. The devil is in the details.
If you have a problem with a rent-to-own or contract-for-deed house, contact a NACA lawyer in your area through the NACA find an attorney list. Even if that NACA lawyer is not familiar with rent-to-own issues he or she has access to the wisdom of all the other NACA lawyers, so there's still a great chance that your problems can be addressed.
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