| Volume 124 Number 12 |
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The People’s Lawyer’s Tip of the Day
Before you travel abroad check whether your credit card has foreign transaction fees. Issuers take fees of 1% to 3% of the amount charged on every purchase outside the U.S. Ensuring you can use your credit card without these fees can save you money during travels abroad. Click here for more.
Volkswagen Reported to Offer Thousands of Dollars in Compensation to Car Owners
Two months ago, the EPA and a San Francisco judge approved a settlement that would allow Volkswagen owners to choose to have their cars fixed or bought back. Back then the official amount was unknown, but in recent days—ahead of the official court announcement tomorrow—sources told the AP that the settlement amount will be about $10.2 billion. It is expected that all owners of the affected cars will receive an average of $5,000 in compensation. The settlement doesn’t include fines Volkswagen is facing for violating the Clean Air Act, which could result in as much as $48 billion. Volkswagen is also being sued by its shareholders, because the scandal eroded the company’s value. The emissions scandal started when the EPA ordered Volkswagen to fix nearly half a million of its vehicles because of installed “defeat devices” intended to cheat emissions testing. Click here for more.
Your Money
Most people are familiar with FICO, the company that gives out your credit score. However, VantageScore Solutions, has been emerging in the field as a dominant credit score provider. In fact, Vantage was the result of a combined effort by the three major credit bureaus, Experian, Equifax, and TransUnion. A move to VantageScore could be good news for consumers, particularly those with a weak credit history. VantageScore 3.0, the most current version, looks back 24 months at a person’s credit history, a feature that allows it to score more people who have little or no recent credit history. Click here for more.
For the Lawyers
Supreme Court Holds That “Actual Fraud” Under Section 523(a)(2)(A) of the Bankruptcy Code May Include Fraudulent Transfers That Occur Without False Representations. The United States Supreme Court held that the phrase “actual fraud” under section 523(a)(2)(A) of the Bankruptcy Code may include fraudulent transfer schemes that were effectuated without a false representation. Section 523(a)(2)(A) provides that an individual debtor will not be discharged from certain debts to the extent that those debts were obtained by false pretenses, false representations, or actual fraud. The Court’s decision resolves a conflict in the interpretation of actual fraud under section 523(a)(2)(A) between the Fifth and Seventh Circuits. Husky Int'll Electronics v. Ritz. Click here for more.