Steve Moskos' Blog

How has COVID Affected Lawyers?

2/23/2021

Like other businesses, law firms are experiencing huge challenges as they learn to adjust and adapt to the COVID-19 pandemic. Many areas of law are struggling while others are in high demand. With most courts closed, business is not going as usual.

When the pandemic first started, many law offices took precautionary steps to protect their staff and their clients. Travel was banned to hot spots, and employees were asked to work from home. When the crisis got worse, staff were let go; many support workers lost their jobs. Law offices were among those considered “non-essential” and had to close for several weeks.

Litigators and those who work on contingency cases were the most drastically affected by the pandemic. Since courts were closed, no hearings, trials, or depositions could occur. Those offices are still facing an uncertain financial future as the crisis shows no signs of ending soon.

Also affected are lawyers who specialize in business mergers and acquisitions. Their clients are too nervous about an uncertain future to make any large financial decisions. Businesses are waiting for the pandemic to be over before spending large amounts of money.

However, there are certain branches of law that are seeing a large increase in clients. Attorneys who specialize in insurance are needed to help clients understand coverage and exclusions. Employment lawyers are advising companies in regards to employee safety and layoffs. Attorneys who specialize in cyber security are in high demand now due to the number of businesses that are working remotely. These three types of attorneys are expected to be desperately needed for the foreseeable future even as the pandemic comes to an end.

Law firms are making changes to how they serve their clients while the COVID crisis goes on.
Many are serving their clients through video calls and virtual meetings. Lawyers are still writing letters and briefs to help their clients.

When the COVID crisis is over, lawyers will, most likely, be deluged by both old and new cases. Most experts agree that the skills lawyers used to weather the pandemic, such as working remotely, using videoconferencing, and keeping a smaller staff, will continue for months or years after the crisis is over.

How to Find your Credit Reports and Why you Should Dispute Incorrect Information

2/16/2021

Knowing your credit score before you apply for a loan or credit card can help you receive the best interest rates. The information in your credit report can also be used by your employer, if you apply for insurance or if you want to rent an apartment or a car. With identity theft becoming a bigger problem due to the pandemic, it is even more important that you check your credit reports and correct any wrong information.

Checking your credit reports is easy. You can request a copy of your report from any credit reporting agency and they must provide it to you. When you request your credit report, consumer reporting companies will need to make sure you are who you say you are. Be ready to provide personal information.

Most companies allow one free report per year, but policies have changed due to COVID and you may be able to get more than one free report a year. Contact the consumer report provider and ask about their policies.

When you get your report (and be aware that each provider may have different information – it’s a good idea to get a copy from each of the national providers), look it over carefully and compare any debts to your records. Make sure your name, birthday and Social Security number are correct. If you find incorrect information, the agency you received that report from must start an investigation at no cost to you.

Mistakes are easily made, but a mistake on your credit report could cost you a job or cause you to be turned down for a loan or insurance. This is why it is a good idea to check your report if you will be applying for a loan in the future. A good report can help you get the loan and a lower interest rate. If someone has stolen your identity, you may realize it sooner if you are checking your reports often.

Consumer reporting companies can provide information about you to insurance companies, utility companies, gaming casinos that extend credit, landlords, lenders, and retail stores, just to name a few. Remember, you rarely know in advance that a business is going to be checking your credit report so you want it to be free of errors at all times.

The three big national providers of consumer reports are TransUnion, Experian and Equifax. These agencies collect information about how much credit you have and use, your payment history and other personal information. Most people only think of these three providers when they are thinking about their credit report, but there are many more consumer report providers.

Employment Screening – these companies provide information such as salary, education, professional license verification, and credit history to your employers and other people.
Tenant Screening – these businesses provide reports to landlords and property management companies. If the information they have is negative, such as past due rent, you may not be able to sign a lease.
Personal Property Insurance – these companies collect information on your home, personal property and vehicle.
Medical – if you signed a release of information to an insurance company, these businesses may have your medical information to share.
Bank and Check Screening – these agencies collect information about your checking account applications, accounts you have opened or close and provide check verification services.
Supplementary Reports – the information they have can include public records, such as a divorce, and identification verification to help businesses manage fraud and credit risks.
Subprime and low-income – these businesses provide information to companies that sell products and services that are for people with low income or negative credit reports.
Gaming – these companies share information associated with check cashing settlement services to help gaming establishments (casinos or racetracks) with risk management.
Utilities – these consumer reporting companies gather all of the information in regards to all of your utilities, such as electric, phone, internet, gas, and others to help utility companies manage customer relations.
Retail – these businesses collect data related to retail product returns and exchanges to help prevent fraud.

To find a complete list of companies that provide consumer reports, go to https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/consumer-reporting-companies/. Remember, they must provide you with a copy of the information they have about you. Contact the company to correct information and ask them to investigate your claim. If you feel the consumer report provider is not investigating or you don’t agree with their final report, you can contact the Consumer Financial Protection Bureau or a lawyer for more help.

What do I Need to do if My Lease is Expiring during the Pandemic?

12/7/2020

With all of the uncertainty in the world during the pandemic, dealing with your car lease expiring may seem like a giant obstacle in your life, but most dealerships are offering several options for your expiring lease. Car dealerships have taken a huge hit during the corona crisis and are doing whatever they can to keep repeat customers happy.

With so many people being laid off from their jobs, they may be struggling to make their payments each month. Some financial companies are offering payment deferrals to help their customers. If you are in this position, contact your leasing company as soon as you realize you may have trouble with your payments. Do not wait until you have a late payment or have missed one. Companies are often more likely to offer deals to people who ask before they miss payments.

If you want to return your leased vehicle when your lease expires, you may be able to do that, even with many dealerships closed. Call your dealership and let them know you want to return the car. Many automakers are making this as easy as possible and are offering ways to complete the return online. They may even offer home pickup of your car so you don’t have to go to the dealership at all. If the dealership is closed, you may be able to return the car to their service department as those are considered essential.

Before you return your car, spend time researching your next car and looking for the best lease deals. Contact dealers directly as you may get a better offer on the phone than you can get on their website. Ask if the dealer can deliver the vehicle to your home and if the necessary paperwork can be completed online.

You may also have the option of extending your lease. Again, contact your dealer and explain that you would like to extend your lease but aren’t comfortable going to the dealership. Many companies are offering online lease extensions so you won’t have to leave your home. If you do decide to extend your lease, make sure to discuss the mileage cap. Will it be increased, or do you have to stick to the original limit?

With some research and a few phone calls, handling an expiring lease during the pandemic shouldn’t be a big issue for you.

How COVID – 19 has Changed the Car Buying Market

11/30/2020

Although many businesses and industries suffered greatly when COVID-19 hit, the mobility and the automotive industries were part of the hardest hit. Even though many businesses have reopened, consumers are still suffering from financial and health concerns and a worry about the future.

There have been significant improvements in the automotive industries financial outlook in the last few months. Across the country, car purchases are still 14% below averages before COVID, but that shows a four point percentage improvement since earlier this spring.

Purchase intent is increasing across the country, especially in homes with higher incomes. The numbers are still below pre-COVID, but show increases from last spring and summer. Many consumers are planning to spend less on their new or used car than before and are taking advantage of discounts offered by dealerships and automakers.

A big factor consumers are looking for is the ability to conduct all of the purchase online or with very little contact at the dealership. Many dealers are offering test drives with no sales person in the car and may even bring the vehicle to your home for you to drive. Some consumers are willing to pay extra for this service if it isn’t offered at their dealership.

People are also traveling less and while they are likely to return to pre-COVID habits, it is believed that walking and biking as much as possible will become more popular. Many consumers are still concerned about public transportation and are choosing to commute and travel by private vehicle rather than by plane or bus. Younger consumers want constant access to a private vehicle and this will likely drive car sales higher when people feel more financially secure.

Tips from People Who’ve Bought Cars during the Pandemic

11/16/2020

Buying a car during the COVID-19 pandemic will most likely be unlike any other time you have purchased a vehicle. Dealerships may not be open, or if they are, they are open for shorter periods of time with fewer sales people. Their inventory of used cars may be smaller, as fewer people are trading in cars right now. Check out these videos of people just like you who found cars during COVID – 19.

Buying a car during the pandemic could be a great deal. “Be prepared for surprises and don’t get discouraged!”

How to buy a car in a pandemic. “Make a plan before you need to buy a car.”

What I learned buying a car in a pandemic “Don’t be afraid to speak about safety concerns. Expect the sales process to take longer than usual because dealerships are often using only a skeleton staff.”

Buying a car during the pandemic: what to expect “Test drives look a lot different. Here are tips to stay safe while looking at a new vehicle.”

Pros and Cons of Car Buying during Covid- 19 Pandemic “Try to buy something in stock as custom orders could take several months.”

When you are ready to purchase a new vehicle, do your research on what incentives may be available and how other people handled buying a car during the pandemic.

Assignment of a contract

11/9/2020

Most people think that when they can’t afford to pay cash for a car, a financing institution, like a bank or credit union, gives them a loan to buy the car. If you go to the bank and you are given a check, you would be right. When financing occurs at the dealership, the dealership is actually extending you credit so you can buy the car over time. It is sort of like layaway at a department store. Outside your presence, the dealership enters into negotiations with a bank, credit union, or subprime lender to sell the financing contract to the financial institution. If the bank buys the contract, you get the car, the dealer gets its money, and the bank gets payments over time.

Next time you buy a car or truck, look for language like this at the bottom of the financing paperwork: Seller assigns its interest in this contract to (name of financial institution like FMCC, GMAC, etc) (Assignee) under the terms of Seller’s agreement with Assignee.

This provision makes it clear the dealer is financing the sale of the car and then selling its right to repayment to a financial institution.

Arbitration and the Assignment of a Contract

10/26/2020

On October 21, 2020, the South Carolina Court of Appeals issued an opinion stating that if a car dealer finances a sale and then assigns (sells) the financing contract to a third party. The dealer cannot enforce any arbitration agreement in the contract.

In this case, Rick Hendrick Dodge allegedly sold a car under fraudulent circumstances. It then sold the retail installment sales contract to Santander. When the buyer sued Rick Hendrick Dodge, the dealer asked the court to force the parties into arbitration, a private proceeding usually held in a conference room not a court room. The lower court found that Rick Hendrick Dodge did not have any rights to compel arbitration. Rick Hendrick Dodge appealed. The Court of Appeals determined, “Because Rick Hendrick Dodge assigned the RISC to Santander, we find all alleged rights arising from the contract, including the right to have an arbitrator determine the arbitrability of the action and the right to arbitrate, were extinguished as to Appellants.”

The court’s ruling confirms the rule that contracts are to be enforced as written and when you assign all a contract to another party, you do not retain any rights to enforce any of the contract’s provisions.

Should I be Concerned about Buying a Car from China during the Pandemic?

10/5/2020

While many parts of vehicles are produced in China, there are very few cars actually manufactured there. The popular 2020 Buick Envision is, but most dealers have a large supply that has been in the United States for several months. Some Kia and Hyundai models are produced in Korea, but the most popular models are manufactured in the United States.

Since the COVID – 19 virus is spread by droplets when someone who has it sneezes or coughs, it is highly unlikely that purchasing a car shipped from overseas would be contaminated. The CDC does believe you can get the virus from touching a surface that has been contaminated, but the length of time it takes for a vehicle to be shipped from overseas should kill any germs on the vehicle.

Even cars that are manufactured in the USA take a long time to get from factory to dealerships so any contaminated surfaces should be fine before anyone purchases the car. However, any time someone gets into the car, it is possible that they are spreading germs.

It is more likely that you will get the corona virus from someone who drove the car than from the manufacturer. For this reason, you should always ask the dealership about their disinfecting process and whether the vehicle has been sanitized before you test drive it.

There is little reason to be concerned about where your vehicle was manufactured as the COVD-19 germs will not survive the trip from another country or sitting in a warehouse in the United States waiting to be shipped.

How the Pandemic is Affecting the Number of Cars being Manufactured

9/28/2020

For nearly two months, car production plants around the country were closed due to the pandemic and the need for social distancing. There have also been supply interruptions for parts that are manufactured in China. Starting in mid-July, auto manufacturers were producing again, but some are still running at a reduced production rate due to restrictions.

Most automotive manufacturers cannot produce new cars like they used to. With social distancing restrictions, many have had to lower the number of employees that are in the plant at the same time, and they simply can’t keep up with normal production with a reduced work force.
Even with car manufacturers producing again, it is possible that another outbreak of the COVID-19 virus could disrupt production again. A single supplier of needed parts that has to shut down could cause widespread disruption in production across the country. Also, many automakers stopped producing vehicles and made essential medical equipment, such as ventilators, respirators, and face shields. Some manufacturers are still making the medical equipment instead of vehicles. When the medical equipment is no longer needed, it will take time to get the plants ready to produce cars again.

Supply issues have also been an issue to getting car production back up to full speed. Manufacturers no longer stockpile needed components for their vehicles so they simply don’t have everything they need to start building cars again. They have to wait until parts are shipped, often from out of the country. With concerns about receiving parts from China still very high, many parts are sitting in warehouses until they are deemed “safe” for employees to handle.

Chevrolet, Ford, and Lincoln all canceled or postponed the delivery of new models. Even when production is back up to normal, design and testing facilities are still minimally staffed so it may take several months for new models of cars to be available to the public.

How Can I Make Sure a Used Car has been Properly Disinfected before I Test Drive It?

9/21/2020

When the corona pandemic began, many companies sent letters or emails to their customers that shared what they were doing to keep their employees and customers safe. Often, these procedures are posted on the doors as you enter a business. If you visit a dealership that has not posted their guidelines, feel free to ask what they are and be ready to visit another dealership if you aren’t comfortable with what you are told.

Every dealership has a different idea of what sanitizing a car means. For one, it may mean that the driver’s side interior has been wiped with disinfecting cloths, while another will completely sanitize the interior of the vehicle. Some dealerships insist their mechanics sanitize under the hood after they finish working on a car, while others do nothing for the engine.

The reality is, unless you actually see someone disinfect the car, you can’t be sure it has been done. For that reason, it is perfectly fine for you to ask that the vehicle be cleaned while you watch. If a dealership won’t accommodate you, then go somewhere else.

For some customers, the threat of COVID-19 is so worrisome that they take their own sanitizing wipes and clean the car themselves before they test drive it. They can be sure any area that they may touch has been cleaned to their satisfaction and they feel safer when they test drive a car. If you are looking at a car being sold outside a dealership, you should definitely clean the car yourself as a private citizen has no guidelines that they have to follow when selling a car.

When the sales person disinfects the car, make sure they wipe all of the buttons and knobs on the car, the steering wheel, gear shift and mirrors. Before you take the key or key fob from them, ask for it to be disinfected, too. Remember to wipe the door handles, seat belts, and seat adjustment buttons. For your safety, either wash your hands or use hand sanitizer before and after your test drive and keep your hands away from your face while in the car.

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