VOL. 1 NUMBER 4
CARMAX, OTHERS SELL CARS AS SAFE WITHOUT FIXING RECALL ISSUES
From faulty Takata airbags to “exhausting” Audi/VW recalls to everything in between, used car resellers
such as CarMax, can still market recalled cars as “Certified Pre-Owned” despite potentially dangerous safety issues. CarMax successfully argued to the Federal Trade Commission that since they are not authorized to do the recall repairs they would need to bring numerous vehicles to a competing dealer. They further argued that these dealers would likely turn away from handling the recalls for competitive reasons.
As a result, CarMax and other used car dealers, make the buyer responsible for handling the vehicle’s recall repairs. Meanwhile, CarMax and others can sell their used vehicles as “Certified Pre-Owned,” which instills a false confidence as to the quality and safety of the purchased vehicle.
Prior to purchasing a used vehicle, consumers should check safercar.gov to discover the recalls on the vehicle of interest, as well as obtain a copy of the Carfax (https://www.carfax.com).
Federal Trade Commission: Debt Relief and Credit Repair Scams
For more information about the fraudulent and deceptive practices of some debt consolidators, click on the following link: https://www.ftc.gov/news-events/media-resources/consumer-finance/debt-relief-credit-repair-scams
Warning: Many Debt Consolidation Plans Are SCAMS
One of the best sources for my debt relief and or bankruptcy clients are so-called debt consolidation operations. Many of them promise that creditors, such as credit card companies, are forced to accept pennies on the dollar to settle claims. They convince the consumer to pay monthly into an “escrow” account from which they promise to settle all outstanding debts for a fraction of the amount. Meanwhile, the fee to the debt consolidator is being syphoned from that escrow account monthly though no actual settlement occurred.
To be clear, creditors are not mandated under law to accept pennies on the dollar on debt owed, whether as a settlement on the debt their owed specifically or through some alleged consolidation of all the consumer’s debts. Additionally, even if a few creditors may agree to a reduced payment, the other creditors can file a lawsuit against the consumer if the consumer is in default for not making the required minimum monthly payments.
Lastly, since these debt consolidators are typically not lawyers, they don’t have the legal knowledge and experience to determine whether the consumer has defenses to paying the debt, such as the creditor waited too long to collect the debt, or the interest and fees were illegally determined and calculated; or there has been a credit set-off of the account; or whether the account belongs to someone else with a similar name or social security number. Therefore, they may be attempting to negotiate a debt the consumer doesn’t even owe!
After about six months of making payments into the escrow account, much of which goes to pay the debt consolidator, consumers start realizing they may be throwing good money after bad!
“The red flags: creditors are still harassing them; interest continues to mount as well as late fees; settlement negotiations stall or never gained traction by one or more of the creditors; and the consumers credit rating (FICO) score continues to spiral.”
That’s when the Mobile Law Center receives calls from consumers seeking a thorough debt analysis, including the legitimacy of each debt, and strategic options to take control over their financial situation.