Next to buying a home, a vehicle is the biggest purchase most people will make. Furthermore, once you sign a contract, there is typically no turning back. Virginia, like many other states, has no cooling off period. This means that, once you sign the purchase paperwork, the vehicle is yours. Thus it is critical that you do your research beforehand. It is even more important to perform research when purchasing a used car, as many used cars may be sold "as is," meaning that, once you sign the contract, the dealer is not required to repair the vehicle or allow you to cancel the contract if you encounter problems with the vehicle.

Attorney John Cole Gayle, Jr. is a consumer law attorney who specializes in auto dealer fraud and Lemon Law in Virginia, and he has created this guide, to help you. Here are some important tips that Mr. Gayle encourages you to keep in mind, before you start your car-purchasing journey.

Perform preliminary research of makes and models.

Compare different year, makes, and models online, to see how various vehicles are rated for reliability, safety, and performance. You may want to check Consumer Reports, Edmunds, and Kelley Blue Book. Car Complaints is another good site (https://www.carcomplaints.com/). 

Choose a car dealership with care.  

Ask family members and friends if they can recommend a dealership with whom they had a positive experience. You may also research dealerships by visiting the Better Business Bureau's website (www.bbb.org) to see how they rate the dealership, how many consumer complaints have been made against the dealership, and how many of those have been resolved. Read online reviews on  Yelp. (Note: when dealers know you are shopping around at other dealerships, they may be more willing to negotiate a lower price.) 

Narrow your vehicle search to a few vehicles you’re interested in.  

Once you have found a reputable dealership(s), go to their website and find a couple of vehicles you are interested in buying. 

Take a screen capture of the advertisement. 

Capture the ad by either taking a screenshot, saving it as a PDF, or printing it out on paper. You would be surprised at how FAST dealerships take down ads after the sale. Just to be safe, we recommend you save the ads of all the vehicles you are thinking of purchasing. 

Always bring a witness with you.

If you ever run into problems down the road, it is imperative that you have a trusted family member or friend (who is 18 or older) to accompany you, when you purchase a vehicle. Make sure that your witness hears everything that is said during the entire buying process, from the give and take between you and the salesperson when you ask questions to the test drive to signing the purchase paperwork. The witness can be a spouse or co-signer.

Ask questions.

Take a pad of paper, pen, and a list of questions. Ask your witness if they can write down the questions and resultant answers. If you are unsure of a response from the salesperson, ask him/her to repeat the answer.

Ask questions that are based on fact, that can either be proven or disproved. For instance, “Has this vehicle even been in an accident or been damaged?” is a fact-based question. “Is this vehicle a good car?” is an opinion-based question and cannot be proven as false. In the salesperson’s mind, the car may be a good car—even if the car has significant problems. Maybe what they consider to be a good car is drastically different than what you do.

Fact-Based Questions to Ask a Seller

• Has this vehicle been in an accident and/or been damaged? [It is vital to know about either.]
• Has this vehicle ever had a branded title?
• Has this vehicle ever been in a flood?
• Does the vehicle have any rust on it? If so, where?
• How many owners has the vehicle had?
• What repairs have been done to this vehicle?
• Where did you obtain this vehicle from?
• Did you purchase this vehicle from an auction?
• In what state was this vehicle last registered in?
• Are you aware of the vehicle having any problems?
• Does this vehicle have any engine problems? Transmission problems? Brake problems?
• Is this vehicle in need of any major or minor repairs?
• Does this vehicle have any structural issues? Frame damage?

Know your budget

Before you venture out to the first dealership, sit down and figure out what your budget is. You may even consider applying and obtaining pre-approval for financing. If you keep your financing separate from the vehicle purchase, you may feel less pressure to impulsively buy a vehicle from a dealer that promises to obtain financing for you. Furthermore, the dealer makes more on the financing. For instance, the higher the interest rate that the dealership gets you to agree to, the more money the dealer makes. The dealership may also quote you an interest rate or monthly payment that is higher than the amount that was approved by the lender.

Also remember to contact your insurance company to get a quote on car insurance based on the year, make, model and mileage of the vehicle and include that cost in your overall budget. Consider the amount of your down payment, the trade-in value of your old car, the length of the loan, the interest rate, and what the amount of your monthly payment will be. Here are two helpful calculators: How much car can I afford? and Estimate monthly payment.

Be very careful before allowing them to run your credit

Be cautious about allowing a dealership to run your credit. If you must have them run your credit, only allow to run your credit a limited amount of times (put it in writing) and only for a specific vehicle (do not give them blanket permission to run your credit). If you allow a dealer open ended permission to run your credit, they could seriously your credit by running it numerous times.

Research the history and value of the vehicle, yourself 

Pull a Carfax.com and an AutoCheck.com report of the car yourself, if the dealership does not produce one for you. You will need the vehicle’s VIN number. The report may show whether the car has been in any accidents, whether it is a flood-damaged, salvaged or repurchased Lemon vehicle, what the odometer reading was at last service, whether it was previously a leased or Fleet vehicle, whether the car was sold at auction, and how many previous owners there have been. Keep in mind that occasionally the reports may lag or not contain complete information; however, they are useful resources for better understanding a vehicle’s history.

Please be aware that the two companies listed above use different databases and, even if a report is clear, that does NOT mean that the car has never been damaged in the past.

We also recommend checking out the VIN on the National Motor Vehicle Title Information System (NMVITAS) website. This website contains a list of links where you can obtain vehicle history reports. CarsForSale (https://www.carsforsale.com/free-vehicle-history-reports) provides consumers with a limited number of searches per day. In addition, you may try searching the internet for the VIN. You may also want to search the internet to see if there are any recalls on the vehicle by visiting https://vinrcl.safercar.gov/vin/. 

Ask the dealership to provide service records. Ideally, the dealer will provide all the records from the life of the vehicle, as that would demonstrate they have kept it in good shape. Read the records carefully; make sure they belong to the vehicle you are thinking of buying. Take pictures of the records (as the dealer may ultimately break their word and not provide the records after the sale has gone through). 

Find out the actual market value of the vehicle

Check Kelly Blue Book, National Automobile Dealers Association, or Edmunds for the market value of the car you want to buy. You'll need to know the year, make, model, and mileage of the vehicle in question. Print that out and bring it with you to the dealership so you can use it in your negotiations.

Visually inspect the vehicle

Open the car doors and look at the door jams, to see if it has been repainted. If you suspect the vehicle had been in an accident, then ask another person to drive the car drive straight and then stand behind the vehicle and look at it. The frame should look like a rectangle. If it looks like a parralelagram, then it may have been in accident. Drive the car until you reach at least 60 MPH for a couple of miles (maybe take it from one exit on the highway to the next).

Take the vehicle out for a test drive

If there are issues with the vehicle that seem major, then be certain you are willing to fix the issues. If the dealership promises to fix the issues, ask them if they will put that promise in writing—and consider if you honestly want to go through the hassle of making sure they hold true to their promise.

Pause before purchasing a vehicle with significant warning lights.

If you see any warning lights pop up on the dash board, especially a check engine light or another significant system light, then reflect before buying the vehicle. If you have issues later, related to those warning lights, then you knew about the issues and bought the vehicle anyway.

Take the vehicle to a mechanic and a body shop to be inspected. 

This may be the most important step of all. If you have followed all the previous steps and are pretty sure you are going to buy the car, then the final tip is to take the car to a trusted mechanic and a body shop, to have it looked over. The mechanic should not be affiliated with the dealership. Yes, you will pay the inspector for his/her time, but it may save you thousands of dollars and headache in the long run. The money you pay to avoid buying a problematic car will be money well spent, if you avoid costly and possibly dangerous problems in the future. If the mechanic finds something wrong, but you are still interested in buying the vehicle, you can share the defects that the mechanic found with the dealer–and ask for the price to lowered.

Take pictures of the vehicle, inside and out

Document the condition of the vehicle at the time of purchase (before you drive off the lot). Take pictures of various aspects of the car including the odometer, the exterior of the vehicle (noting any signs of accident damage), under the hood, and the general interior (noting tears and other damage), and under the vehicle to determine if there is any rust or bondo hiding rust). When photographing under the vehicle, take note of anything hanging as well. If you notice serious issues, you may want to walk away from the sale. 

Negotiate the price.

These days you can negotiate a price online and over the phone. Ask them to confirm the negotiated price in writing via fax or email. 

Negotiating over the phone and online may give you an advantage, since you have more time to consider an offer and make a counter-offer without feeling pressured.

While advertised vehicle prices are supposed to include everything except for tax, tag, title and Lemon Law fees, many dealerships nevertheless state prices that do not include the dealer fee or certain add-ons. So, in your negotiations, always insist that the dealer give you the out-the-door price and show you the breakdown of that price. In addition, make sure that the price given is the one that corresponds to the financing terms you want.

Read the purchase paperwork carefully before signing.

Take your time and review the paperwork very carefully. This cannot be stressed enough. Get all verbal promises in writing. Don’t buy what you don’t want or need. Additional options (such as paint sealants, additional undercoating, fabric treatments and anti-theft parts etching) and additional services (such as extended warranties or service contracts, routine maintenance packages, credit life or credit disability insurance) should be evaluated carefully as they may not be necessary or worth the price.

Take your time.

Don't give in to high-pressure tactics. You can walk away. You can sleep on it. You can go look at another car at another dealership and then come back (or not). There will always be good cars/good deals. Relax, breathe and remember to listen to your gut. 

Before you buy the vehicle, sleep on the decision. 

If you sleep on the purchase decision, then you are less likely to buy on impulse.

Forcing yourself to sleep on a car purchase may mean that you are limited to buying the vehicle closer to home, as it is not always practical to drive two hours away, inspect a vehicle, and then go home, sleep on it, and then return the next day. However, the benefit of pausing before buying a vehicle is that you may save yourself a lot of stress, issues, and money in the future. In fact, it may be wise in general to purchase vehicles closer to home. Consider this: if you experience issues with the vehicle and live far away, consider the cost and inconvenience of returning to the dealership to have problems resolved. Is the “deal” that much better than possible inconvenience?

Bottom line: Don't give in to high-pressure tactics. You can walk away. You can go look at another car at another dealership and then come back (or not). There will always be good cars/good deals. Relax, breathe and remember to listen to your gut. 

Attorney John Cole Gayle, Jr. of The Consumer Law Group, P.C. hopes you will follow these steps and are able to buy a safe, reliable used car in the Commonwealth of Virginia. 

Edited by Jennifer Gruber. 

If a vehicle is abandoned on your property in Virginia, you have the right to title it and sell it after a certain amount of time. However, before the vehicle can be titled, the person who is in possession of the car needs to follow a specific process as dictated by the commonwealth of Virginia. You may learn more about steps involved in this process by visiting this link: https://www.dmv.virginia.gov/apps/avp/intropage.aspx

Step 1

Initiate an Abandoned Vehicle Record Request search for the car's owner. Virginia requires that individuals, businesses and government agencies in possession of an abandoned vehicle perform an Abandoned Vehicle Record Request search on it. Go the Virginia DMV office nearest to you and provide the agency with the vehicle's VIN number to initiate a records request search. You may also perform this search online by visiting https://www.dmv.virginia.gov/apps/avp/RequestRecord.aspx?type=VA

The point of the records request search is to legally document your attempt to locate the owner or lien holder of the vehicle. As of 2021, this process requires paying a $25 fee to the DMV.

Step 2

Wait for the DMV to contact the vehicle's owner and notify them that the vehicle needs to be removed from your property within 15 days. The DMV will contact owners who are located in Virginia for you. If the owner is located out of state, then you will have to send a certified letter to them. Keep all paperwork and receipts from these actions.

Step 3

Go to the Online Transactions section of the Virginia DMV's website (https://www.dmv.virginia.gov/apps/avp/IntentToAuction.aspx) and post your intent to sell the vehicle at auction per the provided DMV standards and guidelines.

You can only do this if the car owner does not respond to the request to have the vehicle removed within the 15-day time limit. You will need to register online as a member of the DMV's website and then click the appropriate links under the Online Transactions section of the website to submit your posting. Posting should include pertinent legal information about the car, such as the make, model and VIN. The auction posting will remain active on the DMV's website for 21 days. Keep all paperwork, forms and receipts provided to you by the DMV during this process. If the forms and receipts arrive in your email, remember to print them out for safekeeping. After 21 days, you may title the vehicle yourself, sell it or scrap it.

Be sure to post your Intent to Auction within 30 days from the “Must Claim By Date” displayed on your AVP receipt or your vehicle will be inactivated in the AVP process.

Step 4

Fill out the Application for Certificate of Title (https://www.dmv.virginia.gov/webdoc/pdf/vsa17a.pdf) and take it to your local DMV office along with the other documents you received during the previous steps. These documents include your Vehicle Removal Certificate and the Abandoned Vehicle Record Request Receipt—you will have received it after you paid the fee for the Abandoned Vehicle Record Request search. You will also need to provide insurance paperwork showing the vehicle is insured and proof of compliance with any other local registration requirements—such as emission inspection certificates—to your local DMV office. Be prepared to pay tax, tag, and title fees. Fees will vary depending on the approximate value of the car and whether or not you already own a tag or have to purchase one. You can expect to receive the title to the car in the mail within a few weeks of submitting the necessary paperwork.

For help other than do it yourself thru DMV, contact an attorney or a private company like Wisdom & Authority Title Solutions, LLC  at (757) 494-1298 or (757) 494-1299.

Adapted from How to Get an Abandoned Title for a Car in VA by Jen Davis

Source: https://itstillruns.com/abandoned-title-car-va-7403749.html

Why You Should Monitor TSBs for Your New Car

Just because a TSB has been issued for a problem with the make and model you own, it does not mean your car will develop the problem. Automakers usually issue them when they have received a large number of customer complaints about the same issue. Unlike a recall notice, a TSB does not entitle you to a free repair of your car, but it is sometimes a precursor to a recall. For example, General Motors released a TSB in 2005 for the ignition switch defect that eventually caused 124 deaths and led to the 2014 recall of 30 million cars worldwide. TSBs are sent to service technicians, not car owners, so you will have to seek out the information yourself.

How to Get TSBs for Your Car

The National Highway Traffic Safety Administration (NHTSA) provides a summary of many TSBs on the same website that tracks recall notices. By entering your car’s make and model, you can see if any TSBs have been issued for your car. You can order a copy from the website for a nominal fee, but it can take four to six weeks to actually receive it. Some repair shops will show TSBs to customers, particularly if you ask about a specific issue. You may even be able to get a copy from the automaker, but there may be a significant fee. Companies such as All Data DIY sell subscriptions to past TSBs for people maintaining older cars but do not have access to TSBs as they are released from the manufacturer.

How a TSB Could Help Your Lemon Law Claim

A TSB provides evidence that the problem you are having with your car is known to the manufacturer and has been experienced by other owners.  It can be evidence the problem exists if they claim they could not duplicate the problem.   If you are still within the warranty period and the dealer has been unable to fix the problem after several tries even with a TSB, you could have a strong Lemon Law claim. If you need assistance proving a Lemon Law claim, call our Richmond office.

 FiveSteps to Take Now to Protect Your Personal Data

The reality is, those whose information was stolen are at risk of identity theft for the rest of their lives. Checking your credit reports from all three credit reporting agencies every year is more important than ever, as is taking the following steps:

• Being aware of potential scams. Trying to take advantage of nervous and vulnerable people, new scam artists have emerged. Posing as Equifax employees, these crooks call people and ask for personal information to verify records. Don’t fall for it. Never give personal information to someone who calls you.

• Avoiding robocalls. Fraudsters are also using robocall technology to reach more people, offering “protection” to consumers whose data was breached. Remember that robocallers often mask their phone numbers to make it look like a number you recognize.

• Scrutinize your statements. You can sign up for various fraud protection services, but nothing beats being vigilant yourself. Review credit reports and credit card statements each month—even small charges can be warning signs.

• Change all your passwords. It is a simple but effective step to give you an added measure of protection. Use secure passwords for bank accounts, credit card accounts, and other important sites and change them every 30-60 days.

• Freeze your account.  If you think something is suspicious, you can "freeze" your credit report which will prevent landlords, employers, etc. from accessing your credit report in response to a credit application.  It will stay on your credit report until you contact the 3 credit bureaus to temporarily lift or remove it.  

The Consumer Law Group, P.C.  is dedicated to keeping our clients and neighbors safe from identity theft and fraud. Feel free to browse our website for more helpful information on cyber security and the Fair Credit Reporting Act.

Identity Fraud Can Happen Anywhere

Identity fraud, also called identity theft, is a crime where one person uses the personal data of another person to commit fraud, usually for financial gain. We provide personal data to a range of industries and each one of them is vulnerable to fraud. Here are common ways identity theft occurs in four major industries:

• Financial services. Identity fraud in the financial services industry may involve credit cards, loans, checking accounts, debit cards, mortgages and other financial services products. Identity fraud can occur either by using stolen personal data to open a new account or by taking over an existing account and making unauthorized transactions. This type of fraud cost consumers $15 billion in 2015.

• Retail. What used to involve the theft and unauthorized use of a physical credit card has become a much more sophisticated form of fraud. Criminals now hack into retailers’ databases to steal information, including credit card numbers. In 2016, in-store fraud accounted for only 12 percent of retail fraud. Major retailers are increasing security measures to protect their customers, but consumers must be prepared for more complicated online transactions.

• Insurance fraud. As more consumers look to get insurance quotes and to even purchase insurance online rather than in person with an agent, the industry is becoming more vulnerable to identity fraud. The insurance industry must keep up with this demand by implementing identity verification tools and consumers must be cautious about providing sensitive information online.

• Healthcare. With the increase in online portals to submit and monitor sensitive medical information, more patient information is available to be stolen than ever before. Not only could this result in insurance fraud, but it could compromise a person’s medical diagnosis or treatment. Healthcare providers must ensure that safeguards are in place to protect their patients.

While much of the responsibility for protecting your identity falls with the retailers, insurers, financial companies, and healthcare providers who store your information, being aware of the potential for identity fraud can help you protect yourself as a consumer.

How Does Neighbor-Spoofing Work?

Robocallers have had the ability to mask their numbers using Voice over Internet Protocol (VoIP) software for years. This is how call centers in India can make their calls look like they are coming from within the U.S. In this latest twist, however, the software mimics the area code and prefix of the number it is calling, making the recipient think it is a local caller. People are much more likely to answer a number from within their area code and a number with the same prefix feels even safer. That is exactly how the scam artists and telemarketers want you to feel and that is why this tactic works.

Does it Really Work?

When you are in the business of making sales, soliciting payments, or committing a scam over the phone, you need the person you are calling to answer. Often these callers—even the recorded messages—are very convincing, so once they have someone on the phone, they have won the battle. Elderly people and non-native English speakers are particularly vulnerable to such phone calls. You may be savvy enough to avoid a telephone scam—even if you are tricked into answering your phone—but many others are harassed and cheated every day.

What Can Be Done About it?

The easiest way to avoid an unwanted solicitation by phone is to not answer your phone if you do not recognize the number—even if it is similar to your own number. If it is a legitimate caller, they will leave a voicemail and you can return the call. The Federal Trade Commission (FTC) is taking action to crack down on robocalls, but it is difficult to keep up with the technology and tactics used by call centers. Protect yourself and your loved ones by using the FTC’s Do Not Call registry and remember to never give personal or financial information out to unsolicited callers.

Ban on Forced Arbitration Was Passed in 2016

The Consumer Financial Protection Bureau (CFPB), issued a proposed rule to ban forced arbitration clauses for class action claims in all consumer contracts in 2016. The rule was set to take effect in March of 2018. However, this ruling is very unpopular with corporate leaders and with many Republican lawmakers. This summer, the House of Representatives voted in favor of overturning the ban, which sent the proposal to the Senate. While it looked for a time like the Senate would have enough votes as well, efforts were stalled in the wake of the Equifax data breach.  The Senate has now passed this bill and President Trump has promised to sign it.  

What’s So Bad About Forced Arbitration?

The bottom line is that consumers who are forced to go into arbitration when they have a dispute with a company fare much worse than consumers who are free to file a lawsuit or join a class action. In fact, the average arbitration outcome is just seven percent the size of a court ruling. When consumers can’t get their day in court, corporations win. A ban on forced arbitration is very popular with voters, which is why Republican lawmakers are trying to stop the ban before it takes effect. The less the voters know, the better.

If You Have a Serious Dispute, Call The Consumer Law Group, P.C.

Even if you are forced into arbitration, you should have an attorney with you. If you have a dispute with a credit card company, loan holder, or service provider, contact our consumer attorneys before you go to arbitration. We will let you know if we can help.

You Are Not Alone

The first thing to realize is that you are not alone. While a bill collector may make you feel like a criminal, you are certainly not the only person with medical bills they cannot pay. In fact, people are often contacted about medical debt that is not even theirs to begin with. According to a study conducted by the Public Interest Research Group (PIRG), most of the medical debt complaints received by the Consumer Finance Protection Bureau (FFPB) were about mistakes made by the debt collector. The study found that:

• Sixty-three percent of the complaints about medical debt collection received by the CFPB claimed either that the debt was never owed in the first place, it was already paid or discharged in bankruptcy, or it was not verified as the consumer’s debt.

• Many of the complaints accused debt collectors of aggressive tactics, such as frequent or repeated calls, calls to friends and family, threats of a lawsuit, or the use of abusive language.

• Thirty-five percent of the medical debt complaints received asserted that false medical debt had affected their credit reports.

So, what can you do about mistaken debt or abusive debt collection practices?

You First Need to Understand Your Rights

The federal Fair Debt Collection Practices Act affords you certain rights, even if you do legitimately owe the debt. Review your rights here so you know if a debt collector is violating them. Other steps you should take include the following:

• Send a certified letter to the collection agency asking for an itemized accounting of the debt.

• If you are disputing the validity of the debt, notify the collection agency in writing within 30 days.

• Starting September 15, 2017, the three major credit reporting agencies - Experian, Equifax and TransUnion - will set a 180 day waiting period before including medical debt on a consumer's credit report.  The 6 month period in intended to ensure there is enough time to resolve disputes with insurers and delays in payment.   In addition, the credit bureaus will remove medical debt from a consumers' credit report once it is paid by an insurer.  Some credit scoring models don't penalize paid medical debt from any source.  

• Understand the statute of limitations in your state. In general, you cannot be sued for medical debt that is more than five years old. Knowing if you are past this date will help your bargaining position.

• Contact an attorney if the harassment continues after you have sent official notice that the debt is not yours.

How Much Can a Crook Actually Make by Altering an Odometer?

According to the National Highway Traffic Safety Administration (NHTSA), more than 450,000 vehicles are sold each year with false odometer readings. They estimate that this fraud costs consumers over $1 billion a year. The scam is a common one. High-mileage used cars are purchased at various locations and their odometers are altered to show lower mileage, thus increasing the value of the car. Mechanical odometers on older cars can be manually dialed back, but the digital odometers in newer cars must be hacked and reprogrammed. Neither of these methods is particularly difficult, making this an attractive crime for unscrupulous used car dealers.

Detecting Odometer Fraud

The NHTSA warns consumers to inspect used cars carefully for signs of odometer fraud. It offers the following tips for detecting when an odometer has been tampered with:

• Compare the mileage on the title with the vehicle’s odometer. Take a close look for signs of tampering on the title as well.  Most dealers do not want to show you the title they have for the car you are buying.  Insist on seeing it even if the dealer agrees to do the work to have the title issued in your name.  You want to see any odometer descrepancies or brands on the title like salvage or flood damage that may be on the old title.

• Check the vehicle’s maintenance or inspection records, if there are any, and compare mileage notations to the odometer. You can also look for oil change stickers noting the mileage on windows or door frames.

• With a mechanical odometer, you can sometimes see if the numbers have been tampered with. If they are crooked or contain gaps, walk away from the purchase.

• Low-mileage vehicles should have the original tires, so take a careful look at them. If they are not original or have more wear and tear than they should, the odometer reading is probably false.

• Inspect the gas, brake, and clutch pedals for wear and tear. Make sure it is consistent with the number of miles displayed on the odometer.

• Use the car’s VIN to order a CARFAX vehicle history report online and an Autocheck report and check for odometer discrepancies in the vehicle’s history as well as prior accidents.

If you see any signs that the odometer has been tampered with, walk away. In fact, go to a different used car lot altogether.

How to Fight Odometer Fraud

If you have evidence that the odometer of a car you have already purchased has been tampered with, you may be able to take legal action against the seller of the car.  Fill out the form on this page to get in touch with us today and we will let you know if we can help.  The law provides for legal fees of up to $10,000 in damages.  

What TransUnion Did Wrong

The complaint filed in Ramirez vs. TransUnion was that the CRA provided incorrect information about the plaintiffs when creditors requested consumer reports. By mixing up the plaintiff’s files with others who had similar names or characteristics, TransUnion mistakenly reported to creditors that the plaintiffs were the subject to Office of Foreign Assets Control (OFAC) alerts, indicating that they were on a list of Specifically Designated Nationals and Blocked Persons, a list that includes people who are subject to sanctions, such as terrorists and narcotics traffickers, with whom U.S. persons are generally prohibited from doing business. These actions, according to the jury, violated the following three provisions of FCRA:

• Following “reasonable procedures to ensure maximum possible accuracy of the information”

• Clearly and accurately disclosing all of the information in the plaintiffs’ consumer reports upon their request

• Providing plaintiffs with a summary of their rights under the FCRA

While agencies that violate the FCRA are subject to statutory damages of $100-$1000, the jury in this case decided to also award punitive damages in the amount of $6,353.08 to each plaintiff in the class action suit, in addition to a $984.22 per person statutory fine. All told, damages amounted to $60 million.

Why This Case Matters to You                        

This case sets an important precedent. When agencies that collect, manage, and share your financial information fail to protect your rights under FCRA, they will be held accountable. If you are struggling to have misinformation removed from your credit report or your credit report has been shared with an unauthorized party, you may need legal representation to address the situation. Use the form on this page to contact us today.

Bill Collectors Have Several Options

With Experian’s announcement in April 2017 that it will be launching a digital debt collection platform called eResolve, they became the latest to join a growing service. These companies negotiate with consumers on the client’s behalf through email and web contact, rather than through phone calls. Advantages to consumers of digital debt collection include the following:

• Dealing with payment requests on their own terms, any time of day or night

• Avoiding receiving phone calls that can become aggressive and threatening

• Easily informing the collector that they have been the victim of identity theft or have filed for bankruptcy

Under the Fair Debt Collection Practice Act, debt collectors are barred from certain tactics, most of which relate to phone calls and home visits. Going digital not only protects consumers from harassment, but also protects businesses collecting debt from violations by employees. Any time there is human interaction, there is the potential for frustration and misunderstanding. This doesn’t happen with a computer. Providers determine the best way to contact consumers and offer options for resolving the debt quickly and easily.

Contact The Consumer Law Group If You Are a Victim of Debt Harassment

If the agency trying to resolve a past-due payment from you has not yet gone digital, you may face harassment and other illegal tactics. If you are continuing to receive phone calls after asking that they stop, have been threatened over the phone, or have had your employer or family members contacted by a debt collector, you may be able to take legal action to stop the harassment and collect damages. Contact us through the link on this page to find out if we can help.

What You May Be Entitled to

The Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive behavior from debt collectors. The law prohibits collectors from calling late at night, from calling your place of employment, and from threatening you over the phone, among other things. When you have been the victim of debt harassment, you may be able to sue for the following damages:

• Physical distress. If the constant harassment has affected your physical well-being, you may be able to sue for the cost of treatment for the headaches, heart problems, skin rashes, or other stress-related conditions you have suffered.

• Emotional distress. Relentless phone calls demanding money you do not have can cause a great deal of mental anguish. Debt harassment can affect relationships, employment status, and your general mental health. If you can prove a connection between your emotional suffering and the debt collector’s actions, you may be able to recover damages.

• Lost wages. If a debt collector calls you at work and disrupts your productivity or calls your employer directly—which is illegal—you may suffer a loss in wages. You can recover these lost wages in a lawsuit against the collector.

• Statutory damages. Regardless of the other damages, you are able to prove, you are also entitled to up to $1000 in statutory damages. You do not have to prove actual financial losses to get these damages, but the amount you are awarded will be up to the judge.

• Attorney fees and legal costs. If you successfully prove that a FDCPA violation occurred, the judge will order the defendant to pay all of your legal costs on top of other damages.

If you have a question about whether you are being harassed by a debt collector, contact our consumer attorneys at 804.282.7900. We are here to answer your questions and will help you take action against an unscrupulous debt collector if we feel you have just caused.

How Careful Are You Online?

In the early days of the internet, most consumers were wary of entering personal information on computer forms and were cautious about using credit cards for online purchases. However, many of us have become complacent about our cyber security. We shop at all kinds of sites, connect to WiFi wherever we are, and use easy-to-remember passwords. These bad habits could be putting our confidential information at risk.

Tips to Protect Your Identity

The Office of Homeland Security, along with the National Cyber Security Alliance, wants citizens to do their part to protect themselves and others online. While you may not be able to stop a criminal from stealing your information from a third party, you can do plenty to make sure they can’t steal it from you. This October, take a few minutes to do the following to shore up your online protections:

• Update security software. Make sure you have the latest versions of your security software, web browser, and operating system and that they are all set to update automatically, if that is an option. This is your best defense against viruses and malware.

• Change passwords. Use a different password for every one of your accounts and make it complicated—using a sentence that is at least 12 characters long is a good idea. If other authentication tools, such as biometrics or security keys, are available, use them. Write down your passwords and store them in a safe place—or use a password storage app.

• Connect cautiously. Be careful about following links in social media or online ads. When using a WiFi hotspot or other public WiFi, be careful about the business you conduct. Remember that others may be able to access your information when you are on a public connection. Make sure your shopping site web addresses begin with “https” or “shttp” (the “s” stands for “secure”); never shop on an “http” site.

• Be smart. Even though being online is second nature these days, you still have to be smart about what you click and pay attention to news about viruses and data breaches. Be proactive about cybersecurity just like you are about your personal safety.

• Freeze your credit.  If you have serious concerns about ID theft consider a "credit freeze" request to the credit reporting agencies.  There may be a charge, but it prevents any new accounts from being opened in your name.  You can request a temporary lift for a particular creditor you want to deal with.

Check Your Credit Reports

We have said it before and we will say it again, take advantage of your free annual credit reports to make sure you have not already been robbed of your personal information. If there is a problem with your credit report and you have trouble with the credit reporting agency, contact us with your legal questions.

Start With the Vehicle Identification Number

The first thing to do is to check the Vehicle Identification Number (VIN) to see if the car is from Texas, Louisiana, or Florida and to see if the title has been branded as water damaged. You can check the VIN for free at the following sites:

• National Insurance Crime Bureau

• National Motor Vehicle Title Information System

• CARFAX usually charges $40 for a vehicle history report, but is waving the fee following Harvey and Irma. You can check the electricians in Sterling Heights vehicle for flood damage at carfax.com/flood

However, even if the VIN comes back clean, the report may not be accurate. Flood-damaged cars can be cleaned, taken out of state, retitled, and given a VIN from an undamaged car. To be sure the car you are buying is not damaged, you should have it inspected.

How to Spot Water Damage

Ideally, the used car dealership will allow you to have the car inspected by a qualified mechanic, who will be able to spot signs of water damage on the body and in the engine. If this is not possible, CARFAX recommends looking for the following telltale signs of a flood-damaged car:

• A musty odor in the interior, which can sometimes be covered with a strong air-freshener

• Upholstery or carpeting which is loose, new, stained or doesn’t match

• Damp carpets

• Rust around doors, under the dashboard, on the pedals or inside the hood and trunk latches

• Mud or silt in the glove compartment or under the seats

• Brittle wires under the dashboard

• Fog or moisture beads in the interior lights, exterior lights or instrument panel

Even if a car seems to run fine at first, flood water damages the computer systems that control everything from the gas pedal to steering.

Once You Own the Car, It’s Probably Too Late

CARFAX estimates that there are currently 325,000 flood-damaged cars on the road today and this number is certain to grow. It is important that you take these steps to avoid buying a flood-damaged car because if you discover the water damage after you have bought it, there will be very little you can do about it. Used cars are sold “as-is” and it is up to you to determine the condition before you pay and take possession. If you have questions about your car, call The Consumer Law Group today. 

What the TCPA Prohibits

In general, the TCPA limits when and how often a telemarketer can call and bans the use of pre-recording automated robocalls. Following are the key provisions of the TCPA:

• Calls to consumers must be made between the hours of 8 a.m. and 9 p.m.

• Companies must maintain a “Do Not Call” list and honor any request from a consumer to not be called again.

• Marketers may not send unsolicited advertisements by auto-dialer, prerecorded voice message, or fax to anyone without prior express consent.

• Customers must be able to opt-out of future robocalls during a robocall. If there is an opt-out requested, the call must be disconnected immediately and no future calls can be made to that consumer by that organization.

As this act was written before cell phone technology was fully developed, the original text does not include text messaging, but that has since been included as well. Calls that are exempt from the TCPA include calls made on behalf of a non-profit organization, calls not made for commercial purposes, and calls that do not include an unsolicited advertisement. For example, inquiries about a lady bird deed in Michigan are exempt since they do not involve unsolicited advertisements.

What Consumers Can Do to Protect Their Rights

The first step in stopping telemarketers is to place your name on the Federal Communications Commission’s (FCC’s) Do Not Call list. If, after that, you continue to receive unsolicited calls—or you suspect a company of illegal robocalls—you may take legal action, including the following:

• File suit in local court for damages for each violation. The TCPA sets damages at $500 per violation, but, in some cases, the courts can triple those damages. Similar suits may be filed for violations of the TCPA’s provisions regarding faxes, auto-dialers, and artificial or prerecorded messages.

• File a complaint with the FCC, which has the power to assess penalties against parties in violation of the TCPA.

If you have taken these actions and are still being harassed by a telemarketer, fill out the form on this page to see if we can help. We will get back to you as quickly as possible.

What Can Go Wrong With Your Suspension?

A car’s suspension is a fairly complicated system, involving many parts. Usually, it is an accident or wear and tear that damages one of these parts and ruins your suspension, but it is possible that your brand new car has a defect that compromises the suspension. If your dealer cannot fix one of the following problems in three or fewer attempts, you may be entitled to a refund or a brand new car:

• Poor wheel alignment. When your steering wheel is straight, but your car is pulling to one side, your wheels may be misaligned. Often caused by hitting potholes or curbs, a new car could be misaligned due to factory-damaged springs or control arms.

• Bad shock absorbers. New shocks should not cause you any problems, but if you are experiencing shaking or bounciness in your new car, you may have defective shock absorbers.

• Bad springs. A defective spring on one side of the car will cause it to sag and may cause a clunking noise when you go over a bump. This should be easy to diagnose and fix, but if it is not fixed promptly, you may have a claim.

• Damaged ball joints. If your new car squeaks and creaks around a turn, you may have bad ball joints. These should be replaced before they break and damage your entire suspension system.

• Defective control arms. Loose, imprecise steering could be a sign of a defective or broken control arm. You might also hear clunking and rattling as the wheels move back and forth when they should not.

Suspension problems can sometimes be tricky to diagnose. Your dealer may want to leave an open repair order as they try to figure out the problem, but you should insist on a new repair order each time you have to bring the car in. If you have to bring it in more than three times for the same problem, you may have a Lemon Law claim. Contact The Consumer Law Group, P.C. to learn more.

Load Capacity Limits You Need To Know About

 Seems like a merchantability issue to me.  According to the to the Center for Disease Control, in 2010, the average weight of an American male was 196 lbs and the average weight of an American woman was 166 lbs. Put them together, and they're 22 lbs over capacity. How can these 2-seater cars be marketed to consumers who are going to assume that the car will accommodate two adults of average weight?  PC tells me that the dealership claimed that they didn't know about the limit and that they told him that have a 300 lb salesman who's been riding with prospective customers in test drives.
 
Be aware of weight capacities when buying a car or vehicle.  Overweighted vehicles can cause problems with longevity and safety of your vehicle. 
 
My guess is that these Miata breach the warranty of merchantability which comes with every vehicle unless properly disclaimed, and the law does not permit a disclaimer if the vehicle is accompanied by a written warranty from the manufacturer or seller. If you have a question about a vehicle that you have purchased without a proper disclaimer contact The Consumer Law Group today at 804.282.7900. 

How to Save Money and Take Out a Smaller Auto Loan

Car buyers are often tempted to buy more car than they should, thinking that the monthly payment plan will make it affordable. If you are not realistic about what you can actually afford, however, you risk losing the car and the money you have already put into it. The next time you are looking to buy a car, follow these tips:

• Consider a used car. Many dealers offer barely used, certified pre-owned cars at significant savings over a brand new car. Shop around to find the best deal. With a low-mileage used car, you will not lose much on the life of the car, but you could save a lot of money.

• Do not trade in your old car. You can make more money off your old car by selling it yourself than by negotiating a trade-in whilemy elderly mother is consuming my life. A dealer cannot pay what a trade-in is really worth or he won’t be able to turn a profit. Find out what your old car is worth, clean it up, and then list it in an auto sales publication or website.

• Stick with a mid-level model. If you are determined to buy new, don’t fall for the bells and whistles offered on high-end models. You can often get the same car for a lot less by forgoing fancy options.

• Buy from the lot. You may be able to save money by choosing a car that the dealer already has in stock. Salespeople are often more willing to negotiate with you if it gets a car off their lot than if you are placing a special order.

• Look for outside financing. Sometimes dealerships offer good financing arrangements, but you can often get a better deal by going to your own bank or credit union. Secure financing before you shop and that will give you a better idea of your ideal price range.

• Do not buy the extended warranty or service contract.  They often have exclusions that will not pay for repair cost for problems the warranty company claims existed at the time of the sale.

Remember—the dealer is not your friend. It is his goal to move cars and make money. Do not allow him to lock you into more than you can afford. When you are honest with yourself about what you can afford, you will end up with loan payments you can afford. If you believe you have encountered auto fraud, call The Consumer Law Group in Richmond, VA today at 804.282.7900. 

How Minimum Payments Cause Problems

You get your credit card bills each month and, right there on the payment coupon, it says, “Minimum Amount Due: $25.” So you write out a check for $25 and mail off the payment. After all, you don’t have much more than that in your savings account anyway. The problem with this practice is that it is not helping you get out of debt. In fact, only paying the required minimum can hurt you in the following ways:

1. It will take much longer to pay off your debt. While paying the minimum allows you to avoid paying a late fee, it doesn’t reduce the debt you owe. In fact, the amount you owe will steadily increase due to interest charges if you only pay the minimum. By paying double the minimum, you can reduce the repayment period by half.

2. You will pay more in interest. Even if you make the minimum payment, you will still be charged interest on the unpaid debt. If you never pay down the debt, you could end up owing more in interest than your original debt.

3. It can lower your credit score. The closer you are to maxing out your credit cards, the higher your credit utilization ratio will be, which is factored into your credit score. A poor credit score will affect your ability to get a car loan, mortgage approval, or even rent an apartment.

Our best advice is to stop using your credit cards and start paying off as much as you can—at least double the minimum amount due. This will prevent future harassment by debt collectors and debt settlement companies.

One would think we would learn from these mistakes, but it appears that we may be allowing a similar problem to unfold in the auto loan industry.

Fraudulent Applications Add to the Problem

According to a study conducted by data analytics firm Point Predictive, auto loan fraud is at an all-time high and may top $6 billion in 2017. So, how is this related to the housing bubble crisis? Part of the fraud, according to experts, is that buyers are being approved for auto loans they cannot afford. In some cases, dealers and lenders are lengthening loan terms and loosening their standards in order to approve buyers who wouldn’t normally be approved.

In an increasing number of cases, however, fraudulent applications are being submitted in order to sell more cars. False information about the car buyer may be entered—without the buyer’s knowledge—or the value of the car being purchased is misrepresented. In many cases, a few employees are perpetrating the fraud for individual gain. While it appeared that we were experiencing auto loan growth as a sign of improving economic times, it now seems that much of that growth is due to fraud. Like the mortgage lending crisis, these car buyers are not likely to be able to continue making payments and may eventually lose their cars.

Auto Loan Fraud Not Likely to Lead to Crisis

While this fraud, even if it does reach predicted levels, will not lead to a major national recession, car buyers should still pay attention. If you are looking to buy a car, make sure you are only borrowing what you can afford to pay off. If you are approved for more than you can afford, you may be the victim of fraud and you will pay in the long run.  Always check your loan application before it is sent to any potential lender to make sure the information is correct, your signature on the application means you agree to the information contained on it.  If it is wrong, the dealer may claim you committed the fraud.  If you have questions, consult one of our consumer attorneys.