| Volume 49 Number 5 |
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The People’s Lawyer’s Tip of the Day
Writing a post-dated check is a good idea when you don't have the money in the bank but will soon, right? Wrong! As a general rule a post-dated check may be paid by your bank at anytime. My advice: do not write a post-dated check if you don't have the money in the bank. Click here for more.
FTC charges Payday Lender
The Federal Trade Commission has charged payday lender GetCash with violations of the FTC Act, the Fair Debt Collection Practices Act, and the Credit Practices Rule. According to the complaint, the company offered loans of up to $1,000 to be paid by the consumers future paycheck. In order to receive the loan, consumers were required to sign a contract with an inconspicuous statement to allow for wages to be garnished upon default. The FTC is seeking to stop the illegal practices and create a consumer fund. Have you done business with GetCash? Click here for more.
Texas: Cash for Appliances Program
If you were hoping to take advantage of the Cash for Appliances program, you may be out of luck. With the opportunity to save thousands of dollars, its no surprise that Texas consumers would be ready to take advantage of the deal. On Wednesday, the Texas rebate program launched to 2,500 website hits per second and 1,000 phone calls per minute. By 2:00PM, the Texas allotment of $23.3 million was exhausted. Will Texans have another chance to get a rebate? Click here for more.
Forgiven Debt: The Tax Implications
Did you lose your house to foreclosure last year? If so, you may owe taxes for forgiven debt. Forgiven debt is the difference between the total amount a consumer owes and the actual amount the consumer pays. For example, if your lender forgave a portion of your debt because the home sold for less than the amount owed, you may owe additional taxes on the forgiven debt. In general, if you lose your home to foreclosure for less than the amount you owe, the IRS will not require that amount to be included as income. However, there are four major exceptions to the rule! To read more about the Mortgage Forgiveness Debt Act and exceptions, Click here for more.
Your Money
Planning to buy a car or home? Calculate your down payment! Click here for more.
For the Lawyers
High internet service early termination fee may be unlawful penalty. The U.S. District Court in Idaho $200 held that an early termination fee for internet service that cost $14.95 per month on an annual contract might be an unenforceable liquidated damages clause under California law. The court identified the difference between alternatives and liquidated damages: “If one mode of performance had been clearly inferior to the other at the time of the contract, and had existed merely to coerce the owner to choose the first mode, then the element of rational choice would have been lacking.” Click here for more.