| Volume 144 Number 53 |
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The People’s Lawyer’s Tip of the Day
In honor of Hispanic Heritage Month, the FTC will focus on ways to come together to help spot, stop, and report frauds that target Latino communities. Today kicks off their month-long series with advice they hope you’ll share with others on how to recognize and avoid scams. Click here for more.
Consumers finding more opportunities to buy now, pay later
For years credit card companies have reaped the benefits of consumers’ shift to online shopping — this is because nearly all virtual shoppers pay with a credit card. But, lately, consumers have found an alternative.
Buy now, pay later (BNPL) services are growing in popularity, and industry analysts say they're now competing with credit cards for consumer spending. There are a growing number of BNPL apps, and more merchants, including Amazon, are embracing the payment plan.
BNPL is actually an old-fashioned concept. In the days before credit cards, consumers often financed major purchases on the installment plan. Today, most BNPL services allow consumers to pay for a purchase over several weeks, making interest-free payments every two weeks until the purchase is paid for.
Some personal finance experts have praised the concept as a way for consumers to manage their money. Not only do they avoid high interest rates, but they also avoid adding to growing balances since the purchase is paid for in a short amount of time. Click here for more.
Your Money
With mortgage interest rates remaining low compared to historic averages, many people are financing their home purchases – a move that makes a lot of financial sense. Whenever you buy a property and intend to take out a mortgage on it, whether it be a house, condo or cooperative, all mortgage lenders will require an appraisal, which is an unbiased estimate of the true or fair market value of the property. All lenders order an appraisal during the mortgage loan process so that there is an objective way to assess the home's market value, and ensure the amount of money requested by the borrower is appropriate. However, getting a mortgage, or accepting an offer that is contingent on financing (many offers are), complicates a purchase transaction. It can potentially place both the buyer and seller in a unique circumstance: an appraisal gap. Many buyers and sellers are blissfully unaware of what this term means and the possible complications, and delays, it can cause for a contingent sales transaction. Click here for more.
For the Lawyers
Arbitration agreement unenforceable under TAA or FAA. The court first considered whether the agreement was valid under the Texas Arbitration agreement. The court stated, the TAA " does not apply to . . . an agreement for the acquisition by one or more individuals of property . . . in which the total consideration to be furnished by the individual is not more than $50,000" unless the arbitration agreement is in writing and "the agreement is signed by each party and each party's attorney." In the instant case, each of Thomas's purchases was for less than $50,000, but it is undisputed that there is no written arbitration agreement signed by Thomas and her counsel. The court also found the arbitration clause invalid under the federal Arbitration because there was no written agreement to arbitrate. Nationwide Coin & Bullion Res., Inc. v. Thomas, 2020 Tex. App. Click here for more.