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,
_____________
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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.
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