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Basic Consumer Law Training

Basic Consumer Law Training. October 1, 2008 Catherine A. Schneider Supervising Attorney CARPLS cschneider@carpls.org. Fair Debt Collection Practices Act FDCPA 15 U.S.C sects 1692-1692p. Who is Covered What is Covered What is Prohibited Debt Collectors “Musts”

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Basic Consumer Law Training

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  1. Basic Consumer LawTraining October 1, 2008 Catherine A. Schneider Supervising Attorney CARPLS cschneider@carpls.org

  2. Fair Debt Collection Practices ActFDCPA 15 U.S.C sects 1692-1692p. • Who is Covered • What is Covered • What is Prohibited • Debt Collectors “Musts” • Civil Liability for Non-Compliance

  3. Credit Cards Autos Payday Loans Student Loans Medical Bills Home Repairs What kind of debt is the consumer facing:

  4. Credit Cards • Breach of written contract claim; • Muni cases, Law cases, Small claims (IL SCR 281) in Cook County – when answer or other pleading required; • Summons – P.S., Sub- Service, Small claim certified mail service IL SCR 284; • Return date v. Trial date; • Default – Vacating a technical default; Vacating a default: 735 ILCS 5/2-1301 / 735 ILCS 5/2-1401

  5. Defenses Statute of Limitations – 10 years, but see Parkis v. Arrow Financial Services, LLS, 2008 WL 94798 (N.D. Ill) Debt has been paid Not Consumer’s Debt No contract 735 ILCS 5/2-606 No assignment 735 ILCS 5/2-403 Counterclaims Violations of FDCPA Credit Cards

  6. Credit Cards • Settlement – lump sum / installment payments • Trial – 30 days – motion to reconsider: new evidence, new law or error in application of existing law (735 ILCS 5/2-1203) • Appeal – 30 days

  7. Credit Cards • Two other notes • Consumer Credit Protection Act – Credit Billing (15 USC 1666) – when a consumer buys goods or services using a credit card, she can assert against the credit card issuer and defenses and non-tort claims eh or she has against the merchant under certain circumstances; • Under the Fair Credit Billing Act, consumers are only liable for $50.00 in unauthorized charges on their credit card account.

  8. Buyer’s Remorse Financing Problems Material Misrepresentations Service Contracts Mechanical Problems / Warranties Leased Vehicles Co-Signors / Guarantors Can’t Afford Payments Re-Possessions Autos

  9. Autos Buyer’s Remorse • Contract Controls • No “3 day return period” • Options • Obligations

  10. Autos Financing Problems • Financing falls through – 815 ILCS 505/2C (IL Consumer Fraud and Deceptive Practice Act) – get “stuff” back • Signing a new financing contract – possible fraud • If credit is rejected • If dealer refuses to give “stuff” back – attorney’s fees

  11. Autos Material Misrepresentations • False advertising • Sales person’s representations • 815 ILCS 505/1 - damages

  12. Autos Service Contracts • What are they • Scams

  13. AutosMechanical Problems / Warranties New Cars • Contract governs • Follow use guidelines • Required formal dispute resolution • Demand letter • Contact Consumer Protection agencies • Suit – Magnuson Moss Warranty Act • Lemon Laws

  14. AutosMechanical Problems / Warranties Used Cars • Power Train Components – Consumer Fraud Act • FTC Used Car Rule • Warranties and “as is” sales • If there is a written warranty – same as New Cars • No Lemon Law

  15. Consumer Leasing Act, 15 U.S.C. Sec. 1640 et seq Default and possible repossession Early Termination Sales Tax Mileage Limits Interest, down payments and insurance Wrecked or Stolen Car Expiring Lease AutosLeased Vehicles

  16. AutoCo-signors / Guarantors • Factors releasing Co-Signors from responsibility • Co-signor on title • Guarantor's Obligation

  17. Autos Can’t afford payments • Is the debt secured? Likely • Negotiate a work-out plan • Sell the Car • Return the Car • Bankruptcy

  18. Is there a valid security interest Is there really a default – dealer’s practice of accepting payments Breach of Peace 810 ILCS 5/9-503 Is 30% of the purchase price paid Reselling the Car – 2 notices Commercially Reasonable Sale Statute of Limitattions – 4 years AutosRepossession / Deficiency Suit

  19. Payday Loans Payday Loan Reform Act (PRLA), 815 ILCS 122/1 et seq

  20. Student Loans • When does repayment start • 5 repayment plans • Default • Bankruptcy?

  21. Medical Bills • Implied agreement • Reasonable value • Over charges • Insurance

  22. Home Repairs Mechanics Lien • What Is It • Requirements • Perfection • Then What

  23. Credit Reporting / Credit Access • Credit Scores • Credit Reports • Improving Credit Scores • Identity Theft

  24. Is the consumer dealing with multiple debts? Perhaps Bankruptcy is going to be the answer. Chapter 7 Chapter 13

  25. Necessary Clothing Soc. Security Unemployment Public Assistance Veteran’s Benefits Private pensions Alimony Child Support Take home pay up to $348.75 per week $15,000.00 of home equity A car worth $2400 or less Tools of trade worth $1500 or less Up to $4000 of any “other property Is the consumer collection/judgment proofEXEMPT ASSETS

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