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Subprime Lending on Cars

8/31/2018

We are almost out of the woods regarding the mortgage debacle, right? I mean, the banks are stronger. They aren’t handing out loans to just anyone any more. They are being responsible, right? Well sort of.

The banks and investors have moved away from real estate. Now they are into auto loans. They have moved from loaning money on something that doesn’t move and will hopefully go up in value to loaning money on something that moves a lot and definitely goes down in value each month. Banks and lending institutions are moving into sub-prime lending on cars. That’s right. What they did before with real estate, they are now doing with automobiles. The banks and lending institutions loan money to lots of sub-prime folk. They stretch out the loans longer than before. (It used to be loans were for no more than 5 years (60 months). Now they are moving towards 72 months and longer.) These lenders bundle these loans then take them to Wall Street where they are sold as securities. If the economy falters, what is going to happen with these loans? What will happen if a bunch of these cars get repossessed?

Take a look at the Truth About Cars http://www.thetruthaboutcars.com/2013/06/all-is-fine-in-sub-prime-land-says-some-with-a-vested-interest-in-its-success/ citing the Detroit Free Press at http://www.freep.com/article/20130620/BUSINESS0104/306200121/auto-sales-lending-subprime. The credit and car folk say there is nothing to worry about. Can you believe that? Do you believe that? People are spending money, yes. Is it wise? That remains to be seen. Have people paid down their debts? Has the government? Remember, when the banks started to fail, they went to the government...to us. We bailed them out. Now it appears they want to do it again. What will happen this time?

What are the most common types of consumer complaints in south carolina?

8/24/2018

What do you think are the most common types of complaints that consumers file with the government? Everyone has frustrating experiences with housing, health insurance, and other industries, but some South Carolina residents might be surprised (or not) to learn that vehicles are the number one complaint category in the state. According to the South Carolina Department of Consumer Affairs (SCDCA), about 19.5% of their cases in 2017 revolved around cars – used cars, repairs, and credit issues were some of the biggest problems. In fact, cars make up the majority of complaints nationally, too.

But vehicles have only become a problem for consumers in recent years. "As the economy continues to rebound, more consumers are becoming active in the marketplace, especially purchasing vehicles," according to SCDCA Administrator Carri Grube Lybarker. South Carolina has protected consumers for years, though, as the state introduced a lemon law in 1989 to prevent the sale of defective cars (along with vans and small trucks – as long as they are passenger motor vehicles). Under the lemon law, consumers who purchase a car and find that its defects cannot be repaired are entitled to a refund. In order to get that refund, a South Carolina resident would have to participate in an arbitration procedure with the manufacturer (free of charge to the consumer) and if that process doesn’t help, only then can the purchaser go to court.

The SCDCA’s job is to ensure the auto industry complies with these minimum requirements, especially in regards to flood-damaged cars which are often sold to people who have no idea of the car’s history. Indeed, the SCDCA addressed 105 violations of motor vehicle advertising laws and issued several fines in 2015, leading to justice for wronged consumers.

Have you ever had issues with a car you recently purchased? Were you able to resolve them through the dealer or manufacturer, and if not, how did you deal with them?

Does the lemon law apply to manufactured homes?

8/17/2018

a mobile home is a practical and flexible option for a lot of homeowners. However, mobile home owners are among the least protected by housing laws because they own the home but not the land beneath it. So what happens if you purchase a new mobile home and shortly thereafter realize you have a major problem like mold that you can’t easily fix? You need to determine whether your mobile home is protected under Lemon Law.

In some states, the answer is a clear yes, but if your state’s answer is no, you may have to look for recourse elsewhere – for example, some states may offer protections against deceptive trade practices instead through a consumer protection entity. Either way, it’s important to contact a lawyer as soon as possible because dealing with mobile homes can be tricky legally. Your best bet to get the most money back on your defective purchase is with an attorney through a Lemon Law or warranty case, rather than through another route like small claims court.

If your state does clearly consider mobile homes protected under the federal Magnuson–Moss Warranty Act, then you are more likely to have a strong case. Make sure you always keep a clear copy of your original purchase contract, any work repair orders you have made, as well as photos and videos to document damage or needed repairs. This way, when you do contact an attorney, they can help you determine quickly if you have a case.

Have you ever purchased a mobile home and dealt with costly repairs?

Is A Voice-Controlled Co-driver Right for You?

8/10/2018

Voice-controlled co-drivers are the latest innovation to hit the auto market in response to voice automated technology. An interactive voice-controlled co-driver can set GPS directions, locate the nearest coffee shop or other restaurant choice, pinpoint the next rest area, and much more.

Similar to Amazon's Alexa, these features give you the convenience of a smart phone without having to touch or look at a screen. Since the Insurance Institute for Highway Safety, Highway Loss Data Institute (IIHS) states 94 percent of car crashes are caused by distracted driving, a voice-controlled assistant sounds perfect. But there are a couple of instances where you might want to reconsider this feature, or, at the very least, be prepared to overcome some challenges.

If you're not technologically savvy, this may not be for you. You have to program the feature before you start, and there is a learning curve. If you have difficulty with Alexa or other voice-activated features around your house, you might want to reconsider utilizing the voice control feature.

If you have a thick accent, you may have to forego a voice-controlled co-driver. While the units are programmed to understand over a hundred languages, if you speak English as a second or third language, the system may not be able to recognize your accent. The same goes for rural or regional accents which would cause you to be misunderstood. The frustration might be more time-consuming than it’s worth.

But if you fall into one of these categories and love the idea of voice control, you don't have to discard the idea of a co-driver altogether. Improvements are being made every year, and you can take steps to embrace this new technology. In the meantime, if you’re determined to use this feature now, you can always ask your dealer or a friend to help you set up your system, and you can ask your car dealer to let you try a system to see if it understands your accent. This will enable you to make a better purchase.

It's estimated 67 million voice-assisted devices will be in use in the United States alone by 2019. So despite some obstacles, you can still let your voice be heard.

What can you do if there is false information on your credit report?

8/3/2018

While you can go on line and get your credit report, you have to understand the impact of what you are doing. First, you may or may not be able to get your report cleaned up. You need to request a copy of your report by sending a request through the mail, not the internet. You need to look on the Credit Reporting Agencies’ websites for a physical address to use. Once you get the address, prepare a letter to the CRA. You may have to provide your full name, current address, birthday, and social security number. Send your request by certified mail so you know the CRA received it.

Once you get your report, go through it carefully. If it contains wrong information, you will have to write back asking that the wrong information be removed. You should provide copies of any proof the information is wrong.

You should then write a letter to the company that gave the CRA the information (the furnisher). Let it know the information is wrong, and it should tell the CRA to take the information off your report. Remember, the company probably doesn't know who you are. Do not assume the person who opens your letter will know your account number or what you are talking about. Be very clear in your explanation of what is going on and what you want them to do.

You will then have to wait to see what the CRA and the furnisher will remove from your report. If everything you want removed comes off, then that is all you can do. As I said in the beginning, you have to understand the impact of your actions. You see, under the law, you cannot receive any damages until you have given the CRA an opportunity to fix the mistakes. They have to do a "reasonable investigation". If they do so and take the wrong information off your report, they are not liable for any damages. If you tell them the report is wrong, they don't take it off and then you try to use your credit but are turned down or you get a higher interest rate, then you may have the right to sue the CRA and the furnisher.

Here is another rub. Your request for a reinvestigation has to be to the CRA. When you go to a website for your report, you may actually be going to another company. If you complain to the company and then sue the CRA, the real CRA will say you never gave it the opportunity to fix the report so your lawsuit will get thrown out. Thank Congress and the CRAs for this neat trick.

I hope this helps. Good luck.

Subprime Lending on Cars

What are the most common types of consumer complaints in south carolina?

Does the lemon law apply to manufactured homes?

Is A Voice-Controlled Co-driver Right for You?

What can you do if there is false information on your credit report?

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