The Fed has contributed to the explosion of sub-prime lending due to their activities.
Sub-prime lending encompasses “customers with an average credit score of 556 and average annual income of $38,393, according to the pitch book. These borrowers pay an average interest rate of 21.4 percent a year. (Median U.S. household income was an inflation-adjusted $50,054 in 2011, according to the Census Bureau. On the widely used FICO credit-scoring scale, produced by Fair Isaac Corp, 640 or less is considered subprime.)” Read more at: http://www.reuters.com/article/2013/04/03/us-usa-qe3-subprimeauto-special-report-idUSBRE9320ES20130403
Learn MoreThe U.S. Consumer Financial Protection Bureau has told at least four banks that it may sue them over vehicle loans and interest-rate markups by auto dealers that appear discriminatory, according to three people briefed on the matter.
At least four banks received letters from the CFPB last week giving them 15 days to provide an explanation, said the people, who asked not to be identified because the plans aren’t public. The letters indicate the bureau believes the banks may have violated the Equal Credit Opportunity Act, a 1974 law that bars discrimination in lending.
Learn MoreThe FTC’s proposed Buyer’s Guide rule is not pro-consumer.
A move by the Federal Trade Commission to modify its buyers’ guide for used cars is being panned by consumer groups, who say the current guide is ineffective and proposed changes are even worse.
The FTC guide gives consumers critical information about who will pay for repairs if something goes wrong with a purchased car, the FTC says. But consumer groups say the guide actually gives misleading information, for example telling buyers that dealers aren’t responsible for repairs to vehicles sold “as is.”
That’s not completely accurate, according to Rosemary Shahan of the California-based Consumers for Auto Reliability and Safety, one of the groups opposing current and proposed FTC wording.
More accurately, a vehicle sold “as is” may still have an implied warranty on it under federal law, she said. But the agency’s blunt language can mislead buyers and give dealers a shield when denying future repair work.
More at: http://www.southcoasttoday.com/apps/pbcs.dll/article?AID=/20130217/NEWS/302170358/-1/NEWS0503
Learn MoreThe Auto Fraud Legal Center brought a number of suits against Classic Chariots on behalf of servicemembers who were taken advantage of. In addition to favorably resolving the cases, The Auto Fraud Legal Center alerted the Marine Corps directly. Thanks in part to the AFLC’s efforts, MCCS chose not to renew Classic Chariot’s commercial sponsorship. THis had the effect of kicking Classic Chariots off the base.
The AFLC supports our troops. If you have problems with a vehicle you purchased, please call us.
Learn MoreAFLC Attorney Angela Smith was quoted in Automotive News, an industry news magazine, in an article concerning an appeal that was recently decided in our client’s favor.
“A California dealership cannot force a customer to arbitrate his individual and class-action allegations of illegal fee collection and other claims, a state appellate panel has ruled.
Plaintiff’s lawyer Angela Smith of San Diego said the decision means dealers ‘can’t just slap stuff on the back of a contract and hope it flies.’ In addition, she said, the arbitration provision as written would have prevented her client from pursuing class-action claims and would have exposed him to high upfront costs and, potentially, would make him liable for the dealership’s legal costs.” Read more: http://www.autonews.com/article/20130123/LEGALFILE/301239996#ixzz2IpL6iGHH
Learn MoreAccording to an annual Gallup poll, car dealers once again win the race to the bottom with the lowest honesty rating amonst a variety of professions in the United States. Over the past 36 years of the poll, car dealers have consistently bottomed out the list, with the exception of last year. From the survey:” Car salespeople have been at the bottom of the list every year except 2011, when they tied members of Congress with a 7% honesty rating. Car salespeople’s perceived honesty has never climbed out of the single-digit range in the history of the list.”
You can find more about the numbers (and how lawyers fared) here: http://www.gallup.com/poll/159035/congress-retains-low-honesty-rating.aspx.
Learn More“It’s a one-sided system. The corporations write the clauses and they decide who the arbitrator is, and a consumer has no say in the process whatsoever,” Ellen Taverna, legislative director for the National Association of Consumer Advocates (NACA) said. “It’s privatizing justice without any legal protection. There’s no meaningful appeal, there’s no judge or jury making the decision, there’s no public review of the decision, there’s no requirement that arbitrators have legal training or even follow the law.” More at: https://www.walletblog.com/2012/12/class-action-bans/
Learn MoreUsed-car dealers would need to give customers more information on warranties under changes to window sticker rules that the Federal Trade Commission proposed recently.
Read more: http://www.autonews.com/article/20121204/RETAIL07/121209946/ftc-proposes-additions-to-used-car-window-stickers
Learn More“A 2012 study by the Pew Charitable Trusts’ Safe Checking in the Electronic Age Project found 66 percent of checking account agreements at the nation’s largest banks had mandatory arbitration clauses tucked away inside. Even if the customer agreement allows you to use the court system to challenge your bank, you’ll probably still find some restrictions. Of the banks surveyed, a whopping 98 percent had clauses waiving a jury trial; 32 percent had clauses requiring customers to pay some or all legal losses, costs and expenses.”
Read more: http://www.bankrate.com/finance/banking/bank-mandatory-arbitration-1.aspx#ixzz2EgcvXLx7
Learn More
ES
