| Volume 57 Number 3 |
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The People’s Lawyer’s Tip of the Day
Looking for a stocking stuffer? Consider my newest book, the 8th edition of “Know Your Rights! Answers to Texas Everyday Legal Questions.“ It is available at your local bookstore, or through my website. Click here for more.
Come "Hell or High Water"
Back in the day, scammers would rely on the holder-in due-course doctrine to enforce promissory notes against consumers who purchased worthless or defective goods. Today, it is the “hell or high water” lease of Article 2. Preying mostly on small businesses, the scam involves “leasing” equipment to a business, paid for through a finance lease or Equipment Rental Agreement [ERA]. The lease is either assigned to a third party or set up as a separate transaction, and the lessor claims no liability when the vendor delivers defective goods, fails to deliver, or files bankruptcy The lease contains provisions precluding any warranty liability, a choice of law clause and a forum selection clause. Under the provisions of the lease, the consumer is required to pay hundreds of dollars a month for several years, for a product that was either never delivered or never functioned. Click here for more.
ATM Fraud on the Rise
Thiefs are getting creative. Scammers have been attaching sophisticated devices, including card readers, to ATM machines to harvest consumer account information. The practice isn't limited to ATM machines. Thiefs often attach the "skimmers" to gas pumps and vending machines. Skimmers allow a person to collect information from a cards magnetic strip and transmit that information through Bluetooth or cellular technology (text messages). According to a recent FTC report, a consumer is now more likely to be a victim of "skimming" rather than a direct, physical crime. How can you protect yourself? Click here for more.
Holiday Foreclosure Freeze
Several mortgage companies are caught up in holiday spirit. Freddie Mac and Fannie Mae plan to freeze all foreclosure evictions on mortgage loans from Dec. 20 through Jan.3. Eviction comes at the end of the foreclosure process, after the home is sold at foreclosure auction. According to Anthony Renzi, an executive vice president at Freddie Mac, "if the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays." Click here for more.
Your Money
Should I buy a tax-exempt or taxable bond? Click here for more.
For the Lawyers
Arbitration clause found unenforceable. The U.S. District Court in Montana held a mandatory arbitration clause in an internet service provider's terms of service—which was presented in capitalized text in the ninth paragraph of the unsigned document—was an inconspicuous part of a contract of adhesion and unenforceable under Montana law. Click here for more.