Debt Collection

The Fair Debt Collection Practices Act (FDCPA) was passed in 1977 to combat abusive, unfair, and deceptive practices commonly used by debt collectors to collect debts.  Unfair debt collection practices wreak havoc on American families, causing personal bankruptcies, marital problems, job losses, and invasions of personal privacy.  There are a relatively few number of consumers that have no intention of paying their debts at the time they obtain credit.  When a consumer is unable to pay their debts, there is usually an adequate and unforeseeable explanation involving unemployment, overextension, serious illness, or marital difficulties.   Unfortunately, despite the passage of the FDCPA, complaints about debt collectors using abusive methods to collect debts continue to increase.  There are many improper methods that debt collectors use to try to extract money from consumers, including the use of abusive, profane, or threatening language.  If you are a victim of abusive debt collection practices, you should keep records of the offending telephone calls and/or dunning notices and contact me for a free consultation.

Repossessions

Sellers retain a “security interest” in many items that consumers purchase on credit.  This means that, until the consumer made the last payment on the item, the seller reserves the right to repossess the item.  A seller may be able to repossess an item for a reason other than late payments, including the consumer’s failure to obtain insurance on the item in question.  The seller does not have to go to court or even provide a warning that they intend to repossess the item. 

Sellers that intend to repossess an item must comply with Minnesota laws that protect consumers.  If the seller violates a consumer’s rights, the consumer may be able to bring a lawsuit against the seller, seeking monetary compensation.  If a consumer files bankruptcy, the creditor cannot repossess an item unless the Bankruptcy judge permits the creditor to do so.  Sellers may not enter a consumer’s premises unlawfully or commit a breach of the peace by, for example, using or threatening violence. 

A creditor cannot repossess an item unless the consumer’s agreement with the creditor allows them to take the item.  If a creditor repossesses an item that they were not allowed to take, the consumer can sue the creditor and get the item back, regardless of whether the creditor took the item intentionally or accidentally.  In addition, most items that are necessary for survival cannot be repossessed, including clothing and food.  In addition, household goods, such as your television, furniture, and appliances are protected, unless you purchased them on credit and did not pay the bill.

Foreclosures

In recent times, the number of foreclosure actions filed against homeowners has risen dramatically and the number of mortgage brokers is also increasing.  Many mortgage brokers are not familiar with lending laws.  If you are facing a foreclosure, an attorney who specializes in consumer law may be able to help you.  There are many important issues to consider when faced with a foreclosure, including what you can do to keep your house, whether you will be forced into bankruptcy, whether you will still be in debt to the lender after the foreclosure, and whether the lender violated any of your legal rights.

I am a consumer law attorney who will sit down with you, analyze the facts of your case, and determine the best course of action for your situation.  There are state and federal laws that lenders must adhere to.  If you believe your lenders are breaking the law or engage in predatory lending practices, you should contact me so I can help you protect your legal rights. 

Loans, Credit, Banking

Under Truth in Lending laws, you are permitted to sue a creditor that does not disclose certain loan-related information to you before you accept a loan, gives you inaccurate information concerning payments or finance charges, or commits other violations of the law.  If your rights have been violated, you can sue for any loss you suffer as a result of the violation.  Getting a lawyer probably won’t cost you anything; the law allows you to seek reimbursement for your attorney’s fees from the wrongdoer.  In other words, if a creditor violates your rights and you successfully sue the creditor, the creditor may be required to pay your attorney’s fees!

Other federal laws protect consumers from credit reporting agencies and lenders.  For example, the Fair Credit Reporting Act permits consumers to sue a credit agency that releases the consumer’s credit report to an unauthorized party or fails to conduct an investigation into the accuracy of disputed information in the consumer’s credit report.  The Equal Credit Opportunity Act permits a consumer to sue a creditor that engages in discriminatory practices.  Many of these laws permit the victim to sue the business that violates the law for actual damages, punitive damages, and attorney’s fees.

Arbitration Agreements

Courts have held various provisions that commonly appear in arbitration agreements unenforceable.  An example of an unconscionable provision includes one that limits a prevailing plaintiff’s ability to recover attorney’s fees.  Other examples of unconscionable terms include terms limiting the clause to claims brought by buyer but not to claims brought by the seller, prohibiting class action suits, requiring the buyer to bear some of the costs of arbitration, limiting some remedies that would otherwise be available to the buyer, allowing the seller to unilaterally terminate or modify the agreement, and imposing a one-year statute of limitations on an buyer’s claim. 

In addition, an arbitration clause that restricts the types of remedies available to a prevailing plaintiff in a discrimination action is more likely to be considered unconscionable than a non-restrictive clause.  For example, an arbitration agreement that prevents an arbitrator from awarding punitive damages probably tips the scales of justice in favor of unconscionability.  If an arbitrator fails to reform such remedial limitations, the arbitrator’s action may be overturned by a court.

Deception and Fraud

Fraud comes in many forms.  A person commits fraud when he/she intentionally deceives another person in a business transaction.  Misrepresenting the quality of a product for sale is one form of fraud.  A business that changes the language and terms of a contract after a party signed the contract is liable for fraud.  In addition, using high-pressure sales tactics or attempting to collect a debt not owed is also fraud.  Any type of person or business can commit fraud, including private parties, banks, insurance companies, car dealers, and retail salespeople.  If you believe your rights have been violated, you should contact me for advice.

Auto Fraud / Lemon Law

If you believe you purchased a lemon and you want to sue, it is important to prepare and keep adequate records.  For example, under the Magnuson-Moss Act (lemon law), if a dealer unsuccessfully attempts to repair a material defect 4 times within the first 2 years of ownership, the dealer must refund the purchase price or provide the buyer with a replacement vehicle.  However, the buyer has the burden of proof when showing that 4 repair attempts were made.  For this reason, it is important to keep receipts and repair orders.  It is also important to verify that the repair orders accurately state the date and describe the material defect; if each repair order describes a different defect, the buyer will have a difficult time bringing a lemon law action.  If you believe you bought a lemon and would like free advice, please contact me.

Warranties

The Federal Trade Commission, which regulates warranties, requires that warranties on items that cost more than $15.00 be made available to consumers prior to purchase.  All applicable warranties must be made available to a potential buyer, regardless of whether the warranty is offered by the retailer, manufacturer, or wholesaler.  This means different things to different types of sellers.  For example, shopkeepers must place a written warranty near the item in question for buyers to evaluate.  In the alternative, a shopkeeper may post signs in his/her shop that indicate that the shopkeeper will allow a potential buyer to read a copy of the warranty upon request.  Manufacturers must provide copies of their warranties to retailers who, in turn, must make the warranties available to potential buyers.  Mail order companies and door-to-door salespeople must also make applicable warranties available prior to a potential sale.  Mail order companies must print applicable warranties in their catalog or at least print information that explains how a consumer can obtain warranty information while door-to-door salespeople must carry warranties with them and offer the warranties to all potential buyers prior to any purchase.

If a salesperson failed to make warranties available to you prior to your purchase or refused to honor a warranty, you may want to contact an attorney to enforce your rights.

Predatory Lending

Predatory lending is the practice of tricking unsophisticated consumers into accepting unfair and abusive loan terms.  While unscrupulous predatory lenders take advantage of anyone they can, their favorite targets are minorities, uneducated people, the poor, and/or people in financial trouble.  Predatory lenders trick consumers into accepting a secured loan with unfair terms that the consumer clearly cannot repay.   The loan is always backed by a high-value item, like an automobile or home.  When the consumer defaults on the loan, the predatory lender benefits by selling the foreclosed property, and stripping the consumers of the equity earned over the years.

Besides equity stripping, other common abusive lending practices include risk-based pricing, single premium credit insurance, failing to inform the consumer that the loan terms are negotiable, and short term loans with disproportionately high fees.  If you or a loved one has been victimized by a predatory lender, I would like to evaluate your case and discuss your rights with you.