Winterize Your Finances

Now that a new year is upon us and the news years resolutions hopefully are still in progress, its a good time to take some financial inventory. To help keep your "financial machine" well oiled consider the following:

1. Start early gathering up all necessary information necessary to do your taxes.

2. Obtain and review a free copy of your credit report. You are entitled to one free credit report every year. The official online site is www.annualcreditreport.com. Dispute errors in writing -sample letters can be found on the FTC website.

3. If you carry balances on your credit cards develop a plan to pay them in full and then pledge to yourself that you will pay card bills in full every month. If necesary seek the help of a local and reputable non-profit credit counseling organization.

4. Take some time to evaluate your estate plan or develop one if you have none. A simple will may be all that you need and most lawyers charge very reasonable fees to prepare one. Some things that may trigger the need to revise your estate plan include the birth of a new child, getting married or divorced, death of a beneficiary and an increase in your assets.

5. Start building or adding to your "rainy day" fund. Many experts recommend an amount equal to a minimum of 6 months living expenses be kept in liquid, safe investments. With today's uncertainty a full year is even better.

6. Re-evaluate and assess your investment and retirement portfolio with your investment advisor.

7. Set aside $30 dollars so that when you are finished with "winterizing" your finances, you and your spouse or significant other can take in a good movie on a drab winter day.

Credit Report Errors: Patience and Persistence

Having errors on your credit report can be a frustrating experience. In today's financial world your credit report is the financial equivalent of your resume. It is one key in enjoying a financially stable life.

In my practice I am getting an increasing numbers of calls about credit report errors. These potential clients often have clear errors on their reports and attribute some type of adverse decision to those errors whether it be a denial of a loan from the local bank or an increase in their insurance. These potential clients want and need help sooner than later.

The problem is that under the Fair Credit Reporting Act, no action can be taken against a credit reporting agency until a dispute letter has been written. Even then, if the error persists, bringing a legal action may not be a good option if legitimatly negative information is on the credit report that arguably caused the problem. Thus, to effectively confront an error on your credit report may require a series of correspondence and also phone calls to establish a clear trail of trying to correct the problem. When a consumer is facing denial of a loan or other adverse action, this may seem like a frustrating requirement - after all they did not cause the problem. However, in the end this documentation not only will satisfy a requirement of the FCRA but also could yield significant damages in the appropriate. Ultimately, the best resolution will be a correct credit report. For some sample dispute letters see the FTC website.

2010 NCLC Consumer Rights Conference

I recently came back from the 2010 NCLC Consumer Rights Conference which was held in Boston this year. Boston was a wonderful city, very clean, friendly and accessible, even if expensive. Sherry and Sara really enjoyed the many museums and we all enjoyed the Cambridge area. As usual, the folks at NCLC put on a great conference. I especially enjoyed some of the break out session on the Fair Credit Reporting Act (FRCA). Many FRCA violations occur in consumer transactions and often go unnoticed.

Documenting Your Case

One of the main reasons lawyers do not take cases involves lack of proper documentation. Many consumers who have been the victim of some type of wrongdoing are able to adequately describe what happened during the initial interview but come up short with the documentation to back up and support their complaint. At a minimum here is what I like to see in the way of documentation:

1. The original purchase agreement or bill of sale.
2. Any warranty documentation.
3. All correspondence.
4. Pictures if applicable.
5. Notes or diary of all phone conversations (who, what, when, where & why).
6. Receipts for all out of pocket expenses.
7. Names and addresses of all potential witnesses.

Health Insurance or Discount Program?

With so much attention focused on the Obama health care plan, it seems like more and more ads have sprung up peddling cheap health insurance programs. As the old saying goes, if it sounds to good to be true, it probably isn't. Many of these so called "health care programs" are nothing more than a proposed discount program that claim certain discounts are available through various participating doctors, pharmacies and hospitals etc. Sadly, some of the more fast talking salespersons for these companies tout them as "health insurance". Only in the fine print do you learn that it is a discount program and not health insurance. If no providers in your area participate in the program then it is of no real value and even if some do the number of procedures or services covered are often very restrictive.

The real storm begins: Citizens United v. FEC

After being sick most of December with my first ever bout with bronchitis and the start of session, it is hard to find time to blog. However, with the recent decision in Citizens vs. Federal Elections Commission I feel compelled to vent my thoughts. This decisison has the potential to go down as one of the worst decision by the Court. Time will tell, but clearly corporations as well as unions, now have the greenlight to raid their treasuries for use in influencing elections. They no longer have to go through the process of setting up separate PAC's and following rules pertaining to those. Interestingly, this decision is seen as primarily mostly benefiting Republicans who are perceived to be aligned more with "business." However, some quick research shows that a variety of groups filed amicus curie (friend of the court) briefs in support of Citizen's United. These include the U.S. Chamber of Commerce, AFL-CIO, NRA and the Cato Institute not to mention various individuals such as Senator Mitch McConnell. Those filing briefs in support of the Federal Elections Commission (and presumably arguing for the constitutionality of the campaign finance laws at issue) include Senator John McCain, League of Women Voters, and American Independent Business Alliance.

Desite this list of "odd bedfellows", the decision is bad for Republicans, Democrats, Liberals, Conservatives, Joe the plumber, and for everyone else to boot. This is not a free speech issue. This is a "corporate issue". Corporations are not natural born individuals - they are creatures of statute. To say they have a virtually unfettered right under the First Amendment to get involved in elections is to misunderstand the very nature of these entities. As creatures of statute (and born of ink and paper) they exist because we say they can exist. We endow them with certain rights and special powers (such as liability protection for shareholders and the ability to exist perpetually) to help further our citizens - the natural born ones- in the pursuit of economic activity. Corporations are a tool for furthering the public good. This decision enables the "tail to wag the dog." Corporations will now be able to turn their attention even more to politics and use their massive wealth (which we enable through our corporate and tax laws) to influence elections for the benefit of their own commercial ends. As former Justice Sandra Day O'Conner noted, we are now likely to see an escalating "political arms race". We will all be the worse off.

NCLC Conference

This past week I attended the National Consumer Law Center's consumer law conference in Philadelphia. The conference provided three days of intense education on a variety of consumer law issues. It was well worth my time and money. I especially enjoyed the various session on the Fair Credit Reporting Act (FRCA). Credit report errors and identity theft is such a growing problem and the presenters on this important topic really knew their stuff. I can't wait to be able to use some of the tips and tactics I learned in my own practice. There were approximately 800 attendees from all over the country including 300 first time attendees such as myself.

Lemon Law Update

Its been a very busy summer with work and vacation so I have been remiss about posting to the blog. The good news is that GM and Chrysler have both done the right thing for consumers with lemon law complaints. GM and Chrysler have both picked up (and continue to settle) lemon law complaints pending prior to their bankruptcy filings. For the "New Chrysler" you have to go through a process of substituting the successor company in place of the "old car" company as a party to the lawsuit. Moreover, you agree that only lemon law claims survive and not claims for punitive or exemplary damages.

Good news for Chrysler and GM lemons

It now looks like both Chrysler and GM will continue to work through lemon law complaints in spite of their respective bankruptcy's. With respect to GM, I am still working with their Business Resource Center on settling cases as well as one of their main outside firms. They even honored an arbitration award I obtained at a hearing just prior to the bankruptcy filing (even though the arbitrator's decision was not filed until afterwards).

With respect to Chrysler, things are looking up but still a little unclear. Chrysler has filed a motion with the bankruptcy court asking for permission to allow the "new Chrysler" to assume pending lemon law cases under certain conditions. One of the conditions is that punitive damages will not be available.

Stay tuned for further developments but kudos to these companies for honoring these important obligations. Please remember, if you have a lemon, don't trade it in for a loss or pass off the problem to someone else. Call me and learn about your rights.

Bankruptcy and Lemons

Hmmm. Maybe the bankruptcy of Chrysler and GM will not be the end of pending lemon law claims against these two manufacturers after all. I have read some articles indicating that the new Chrysler entity will continue on with these type of claims as well as product liabilit claims. Moreover, I filed a case against GM about two weeks ago and despite the bankruptcy filing I received a letter from their dispute resolution center about resolving the case? Stay tuned.

Good tips for good consumers.

The internet is packed full of information to help consumers in all types of situations. Information overload is easily contagious. Thus, I thought I would list some general tips that could be of benefit in almost any circumstances. These are my "Rules" as developed through years of law practice and my own personal experience:

1. Read and understand before you sign. This seems obvious, yet I regularly have clients in my office who did not realize they had signed various documents such as arbitration agreements. Any reputable business person will respect and patiently accomodate you desire to read through the documents you will be signing and will gladly answer your questions.

2. Ask questions. Don't be afraid to ask questions. If you always find yourself having trouble asking questions then try remembering the 5 W's: Who, What, When, Where and Why. Simply use one of these words to begin your question, for example: "What does arbitration mean" or "Why is that model being discontinued" or "Who do you have for references."

3. Get copies. Get and keep copies (or where applicable originals) of everything you sign as well as all other items such as invoices, estimates, payment stubs or receipts, work orders, warranties, owners manuals, letters etc.

4. Document problems and issues. In addition to always following Rule #3, you can help assure that any problems or issues are properly documented by taking pictures or video and even keeping a small diary or calendar of the matter. It is often a good idea to follow-up important phone calls or meetings with a letter confirming what took place.

5. Get proper advice. Do your homework. This may include researching matters on the internet or calling up friends or family to get their input. However, don't be cheap with your time or money. Deciding whether to buy a $200 lawn mower may not merit seeking professional advice but entering into a home improvement contract or dealing with a harassing creditor does.

BONUS RULE

6. DO NOT CO-SIGN A LOAN. Think long and hard before you help out a family member or friend by co-signing a loan for them. I have personally witnessed the financial and emotional havoc that occurs when these loans go bad.

Bankruptcy Watch Part II

As most readers know by now, Chrysler filed for Chapter 11 bankruptcy protection on April 30. This certainly comes as no surprise. Chrysler does have a nice website you can link to for information on the bankruptcy including court filings. I am still reading throught the many docket entries but there may be some glimmer of hope for lemon law cases settled just prior to the bankruptcy filing but not yet consumated and even for those cases still in litigation. Stay tuned.

Looming Auto Bankruptcy: What now?

It now looks like we may know by next Thursday whether Chrysler will seek bankruptcy protection - check out the following article: http://www.msnbc.msn.com/id/30388152/?ocid=MSNToolbar130. What can consumers, lemon law attorneys and others do to protect themselves. Some of the following options come to mind:

1. If your vehicle is still covered under the manufacturer's warranty and you have ongoing defects - get the car in for service asap - it may be the only "benefit" you see.

2. For cases that are in the process of settling - needless to say get them wrapped up quickly. In fact, it may already be too late for Chysler.

3. Whether it is Chrysler or GM it would seem prudent to insist in a buy-back case, that any loan payoff checks come directly to the attorney's office or given to the client at the time of turning in the car. This was they can be immediately deposited and then sent to the finance company to payoff the loan once the check clears. I am going to be cautious about having a consumer turn in the car and then rely on the manufacturer to send the check to the finance company afterword. What a disaster it would be if the consumer turned in the car and then say GM filed for bankruptcy BEFORE the check made it to the finance company?!!!

Auto Bankruptcy Fallout

I have practiced lemon law since approximately 1997. I never imagined I would see a time when the bankruptcy of Chrysler and General Motors was a real possibility. General Motors in particular was just too big, too iconic and just plain too American to fall so far that such an option would even be considered. Yet, here we are on the brink.

General Motors has certainly been an important part of my life both professionally and personally. On a professional level, I have successfully handled dozens of lemon law claims and lawsuits against GM, who in my opinion is one of the fairest automakers to deal with. On a personal level, my families current two vehicles (Pontiac Bonneville and Chevy Avalanche) are both GM vehicles as were the two we owned before them.

I have to say that I believe a double standard is being applied to the automakers. As many have pointed out the Government can not seem to funnel enough money to AIG because among other things, "they are too big to fail." Bankruptcy, however, is seen as a good choice for these autmakers because it will allow them to force concessions out of their workers and suppliers, not to mention debt holders. Yet clearly neither GM nor Chrysler acted with the same recklessness as AIG and many banks. Where have our priorities gone? What is to come of the thousands of dedicated workers and their families employed by the automakers and their suppliers.

Moreover, what is too come of the thousands of people who currently own GM and Chrysler vehicles that still have remaining warranties? My understanding of the Government's plan for backing the automakers warranties is that it only applies to those vehicles purchased after March 30. This apparently leaves people like myself (my Avalanche is only 17 months old) in the cold, having to absorb repair costs out of our own funds. I guess we are not part of the overall recovery plan? What is to come of my current clients who have pending litigation against one of the automakers? Will the Government intervene when their cases come to a grinding halt? What about the thousand of new car dealers who face not only dismissal sales but now may be the only party "left standing" for some period time. Are they to be expected to make warranty repairs out of their own pockets? Do they now become necessary parties to lemon law cases under other possible legal theories even though the original purpose of lemon laws was to hold only manufacturers responsible?

God bless General Motors and Chrysler and their employees and dealers. This is one lemon law attorney who is praying and hoping the make the greatest comeback of all time - for all of our sakes.

Up and running.

Welcome to my new (and first) blog. As the title states, this blog is intended to be all about the study and practice of consumer law. I greatly enjoy practicing various types of consumer law including lemon law, debt collection abuse, predatory lending and bankruptcy. I also enjoy criminal defense work. I hope to write many informative articles on this blog that will be of interest to consumers and other lawyers. I welcome all tasteful discussion on this important subject.