| Volume 126 Number 8 |
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The People’s Lawyer’s Tip of the Day
Layaway is becoming more and more popular, but there is no special layaway law in Texas. That means how much you pay to set up the plan and how much you lose if you don’t complete the payments is determined by your agreement. Carefully review your contract and determine what it might cost you, before you sign. Click here for more.
Department of Justice Finds Volkswagen Liable for Criminal Wrongdoing
Aside from the civil settlement and penalties that Volkswagen must pay for the emissions scandal, the auto company is now facing criminal liability. On Monday, the Department of Justice found Volkswagen liable for criminal wrongdoing for violating the Clean Air Act by installing software on vehicles that violates environmental standards. Volkswagen is currently negotiating a settlement with the federal government. The software at issue was installed on almost 500,000 diesel vehicles and concealed the cars' emissions of nitrogen oxide, which contributes to smog and health issues. In June, the auto company agreed to pay $10 billion to repurchase cars from consumers and $4.7 billion on environmental remediation. Click here for more.
Your Money
It may make sense to cancel a credit card that has annual fees or a high interest rate or to avoid unnecessary spending. However, before closing a credit card account consider the impact on your credit score. Closed accounts with zero balances and no associated negative information remain on a credit history for 10 years from the date they are closed. And under the Fair Credit Reporting Act, negative data, such as late payments, are removed from your credit report after 7 years. Once you are ready to cancel a credit card, ensure that the balance is $0 and redeem any rewards. Click here for more.
For the Lawyers
Filing proof of claim in bankruptcy on a stale debt does not violate FDCPA. The Seventh Circuit, recognizing a split among the circuits, held that filing a proof of claim for a debt barred by limitations does not violate the Fair Debt Collection Practices Act. The court recognized possible harm that could be caused to the consumer and other creditors, but stated, “the risk of this outcome in such cases is not sufficient to support a FDCPA claim in the cases currently before us, where plaintiffs’ attorneys successfully objected to proofs of claim that were neither false nor misleading.” Owens v. LVNV Funding, LLC (7th Cir). Click here for more.