Consumer Education is Key When Considering Bankruptcy

July 17th, 2009 at 08:57am Under Consumer Law

Only a few short years ago, it used to be fairly easy to file bankruptcy, almost as easy as it is in the board game of Monopoly, where the ramifications of doing so were about the same as in Monopoly. But it was determined that so many people were taking advantage of bankruptcy to compensate for a lack of financial skills, a lack of money management, and basically attempting to lead a champagne lifestyle on a beer budget that the bankruptcy laws were recently changed.

To be sure, the bankruptcy laws still vary from state to state, but there are some things that even state legislature cannot disagree on if they conflict with the federal bankruptcy laws. Even at this, some people have attempted to file bankruptcy in a state that may have more lenient bankruptcy laws than the state in which they have listed as their address of residence, and one of the things that the new bankruptcy laws is doing is ensuring that people who file bankruptcy do so in the state in which they live.

Another requirement of bankruptcy with the new laws is that the person filing bankruptcy is required to attend credit counseling sessions and financial education courses. While this is still part of the law and you can expect that requirement into the foreseeable future, studies are starting to show that such a requirement has so far failed to deliver the positive results that were expected, and in fact have delivered very few significantly measurable benefits to the consumer.

Is there a value to requiring consumers to spend (or as some say, “waste”) their time on credit counseling and financial education courses before being allowed to file bankruptcy? Many are saying it makes no sense at all. On one hand, the advocates who say it makes little sense are right, since by the time a person is so far in financial distress that bankruptcy is their most viable option, the time for financial education and credit counseling has long since passed. But on the other hand, how do you require someone to attend those classes and counseling sessions BEFORE they get into a bankruptcy situation, since the vast majority of people are unwilling to admit, even to themselves, that they are heading in the wrong financial direction.

Good consumer information about bankruptcy is one answer. While the government or the state cannot protect each and every consumer from financial folly, nor can they force the consumer to attend courses or counseling, they can put the monkey on the consumer’s back by making information about bankruptcy available, perhaps even at no charge. The vast majority of consumers have no clue about the various chapters of bankruptcy and which one they should choose if they get into a bankruptcy situation.

Moreover, most consumers think of bankruptcy as their only option, when in reality the act of declaring bankruptcy should be the option of last resort. There are many viable alternatives to bankruptcy, most of which do not have the long-lasting negative impact on the consumer, such as the fact that bankruptcy stays on one’s credit report for the next 7 to 10 years. Consumers should be taught about the options that are available before considering the “act of last resort”, which is bankruptcy. For example, debt consolidation firms can pull a consumer out of the financial fire without requiring bankruptcy in many situations.

Consumer education about bankruptcy is paramount, and every consumer should make a point to understand at least the basics of bankruptcy, what it means, how it works, and most of all, what viable alternatives to bankruptcy are available.

Consumer Protection and the Role of Class Action Lawsuits

July 17th, 2009 at 02:56am Under Consumer Law

Consumer protection laws exist to protect regular folks just like you and me. They’re there to give consumers a way to remedy situations where there has been an outright scam, advertising that is misleading (or a flat out lie), bad service, failure of a service company to fulfill a contract and the likes.

Consumer Protection Laws

One way that these consumer protection laws are upheld is through consumer protection class action lawsuits. These are lawsuits that are brought against companies or individuals who have broken the consumer protection laws. Basically, the idea is to have a mechanism in place that makes manufacturers and businesses do and provide what they say that they’re going to, when we pay them our hard earned money. So what are some situations that might demand a consumer protection class action lawsuit?

Well, let’s take a look at three common scenarios where consumer protection laws are violated and class action lawsuits may be warranted:

You buy something at a national chain store like K-mart or Walmart … you expect it to be and do what it has been marketed to do, right? But wait, that Martha Stewart glass top table that you purchased just shattered and you sure haven’t used it inappropriately. Hopefully, no one was hurt in the process, but still your table didn’t hold up to normal wear and tear …

In a case like this, it’s worth checking around to see whether this was a one-time fluke or if it’s a manufacturer’s defect. If it’s a defect, a consumer protection class action may be in order.

Or maybe you’ve finally decided it’s time to join the rest of the world online and you sign-up for a well known Internet service provider … everything’s going along just fine until BAM … you get your bill and they’ve gone ahead and billed you during their “free trial”. Think it’s a mistake? Think again … they’re actually making a killing off of unsuspecting computer newbies. And what’s worse? They’re nearly impossible to reach by phone!

In situations like this, companies are just plain cheating the public and they know it. You’ll notice that so-called ‘accounting and billing mistakes’ are never made in favor of the consumer.

How about this situation … have you ever had a lender (of any kind) request that you sign a consumer credit contract without full disclosure of the terms of the agreement? Or maybe you’ve purchased something on credit and the base price has been raised because you aren’t paying cash?

These are clear violations of the Truth in Lending Act. If you and others have had the same bad experience, a consumer class action is perhaps the only way to stop these people from doing what they’re doing and to collect any damages due you.

Consumer protection laws are in place to protect the public from these and many more instances of fraud. Maybe it’s time you looked into that problem you’ve been having with a product or service provider and see if there isn’t already a consumer protection class action lawsuit in play that addresses your needs.

Great News for Garden State senate Looks to Expand Nj Lemon Law

July 16th, 2009 at 08:56pm Under Consumer Law

Jim Griffin from Politicer.com is reporting that the Senate Commerce Committee approved legislation that would better protect consumers under the New Jersey Lemon Law for new car purchases by expanding coverage from 18,000 miles to 24,000 miles. The Bill was sponsored by Senators Barbara Buono and Nicholas Scutari.
The Committee approved Bill S-454, which would amend the “Lemon Law,” which protects purchasers of new automobiles and motorcycles. The Bill would expand the law from 18,000 miles to 24,000 miles or two years of ownership, whichever comes first. In addition, for those defects that are likely to cause death or serious bodily injury, the manufacturer would have just one chance to fix the defect before the car would have to be replaced. For non-lethal defects, dealers would be held to the current standard which allows three attempts to fix the defect before replacing the vehicle. This is similar in nature to the Maryland Lemon Law, with the exception that Maryland requires four attempts for non-lethal repairs.
“When safety is a concern, three repair attempts are two too many,” explained Senator Scutari to Griffin. “There is a major difference between an inconvenient oversight like a malfunctioning radio and the possibility that your car won’t stop when you hit the brakes. Our drivers shouldn’t have to put themselves at risk two or three times before they get a car that provides the safe transportation we expect when buying a new car.”
The Bill also requires that dealers make sure consumers receive the State’s “Lemon Law” protection Owner’s Warranty Rights Notification booklet. The bill passed the Committee by a vote of 5-0 and now awaits consideration by the full Senate. This is great news for New Jersey consumers, which already has one of the strongest lemon laws in the Nation, according to the Center for Auto Safety. The Center for Auto Safety ranked the NJ Lemon Law as the second most effective lemon law in the Country and in a letter to state legislators, CAS Executive Director Clarence Ditlow specifically said the state could strengthen their Lemon Law provision by requiring only one repair attempt if a defect threatens death or serious bodily injury, covering a vehicle that has many different problems at once, and penalizing auto manufacturers who willfully violate the Lemon Law.
The New Jersey Lemon Law also provides fee-shifting provisions which enable consumers to receive 100% cost-free legal representation. If the consumer prevails, the manufacturer must pay all attorneys fees and legal costs on top of what the consumer receives.

Tarlow, Breed, Hart & Rodgers Outlines the Potential Impact of Upcoming Massachusetts Sjc Ruling on the State’s Consumer Protection Act

July 16th, 2009 at 02:56pm Under Consumer Law

 

DATELINE:  BOSTON, MA…

An upcoming ruling by the Massachusetts Supreme Judicial Court (SJC) has the potential to be a very significant case not only for consumers, but also for the Commonwealth as a whole according to Attorney Lee M. Holland of Tarlow, Breed, Hart & Rodgers.

 

At issue in Joseph Iannacchino & others v. Ford Motor Company & another is the extent to which a plaintiff must sustain a demonstrable injury or loss before looking to the courts for relief from allegedly unfair or deceptive practices under Chapter 93A.  Once they clear this hurdle, for instance, they can access the statute’s powerful treble damages provisions.  Accordingly, the answer is important to anyone who does business in Massachusetts and may potentially face such claims.

 

The Case in a nutshell.

In the Iannacchino case, the plaintiffs are contending that the defendants violated the Consumer Protection Act by failing to recall and fix certain vehicles that allegedly have a defect in their door latching mechanisms that exposes consumers to the risk of serious injury or death. The defendants evaluated the latch mechanisms and decided against initiating a recall.

 

The Superior Court granted the defendants’ motion to dismiss the plaintiffs’ claim since the plaintiffs had been able to use the allegedly defective vehicles, and had not suffered any direct personal or economic injury as a result of the alleged defect. In the pending SJC appeal, the plaintiffs challenge the trial court’s dismissal of the claim.

 

Pros and Cons.

Notes Holland, “Several strong but competing arguments exist for the SJC to consider. On one hand, consumer advocacy groups argue that the ultimate goal should be improved consumer safety, and that it would be perverse to interpret existing law to require a consumer to suffer physical injury as a prerequisite to bringing a claim where it can establish that a defect exists which reasonably poses an increased risk of causing harm to consumers.

 

Conversely, it can be argued that consumers are adequately protected under existing law, but even more so by demand for improvements in safety. Manufacturers have an economic interest in achieving safe products where the market demands them, such as in the consumer automobile industry. Litigation regarding an alleged safety defect that has not resulted in any physical injury consumes resources that manufacturers might otherwise invest in product research and development, thereby hindering efforts to advance safety.

 

Broader societal costs may exist as well. For instance, an unanticipated increase in the litigation risks to which corporations doing business in the Commonwealth are exposed could operate as a disincentive to economic growth . . . .”

 

Stay tuned for the verdict.

It is true that the Iannacchino plaintiffs have been able to use their vehicles and have not suffered any direct injury. Assuming a defect exists in the door latches, however, it is also true that the Iannacchino plaintiffs face an elevated risk of injury every time they go for a drive. Does that elevated risk mean they can sue under the state’s Consumer Protection Act? Stay tuned for the SJC ruling, expected in June 2008.

 

Tarlow, Breed, Hart & Rodgers, P.C.

Formed in 1991, Tarlow, Breed, Hart & Rodgers, P.C. is committed to providing high quality, comprehensive legal services to its clients. Featuring a breadth and depth of experience and perspective usually found only at larger law firms, Tarlow, Breed, Hart & Rodgers, P.C. offers sophisticated legal counsel to entrepreneurs, businesses, individuals, families, and institutions.

The firm’s areas of expertise include litigation and dispute resolution, corporate law, employment matters, mergers and acquisitions, estate planning, taxation, real estate, bankruptcy, and municipal law.

 

The expertise and collegiality of the firm’s fifty plus members, associates, and support staff has consistently resulted in the building of lasting relationships of trust and confidence.

 

The offices of Tarlow, Breed, Hart & Rodgers, P.C. are located at 101 Huntington Avenue, Prudential Center, in Boston, MA 02199. For additional information, or to arrange for a consultation, please call 1-617-218-2000, e-mail info@tbhr-law.com, or visit www.tbhr-law.com.

 

 

Consumer Credit Law – Your Credit Report is Wrong!

July 16th, 2009 at 08:57am Under Consumer Law

Consumer credit law. Just the name sounds ominous. It brings up images of debtors prisons and courtrooms where credit attorneys argue about your worth as a person just because you are not able to pay your debts as agreed. Don’t worry. There aren’t any more debtors prisons. But a low credit score might make you feel like you’re in one.
Listen, things happen. Circumstances change. Creditors sometimes wear blinders. All they want is their money. Credit law is daunting and complicated. I know I constantly preach about how you can settle your debts yourself, and I believe that you can. You need the right education, the right tools and above all the commitment. In some cases, you are going to need someone specializing in consumer credit law.
Even after you have negotiated and settled your debt, marks and blemishes can remain on your credit file for years. This can (and it’s frankly certain in this economic climate) prevent you from getting home and auto loans. Even if you are able to borrow, you will get the highest rates and end up spending money on increased fees and charges to offset what the lender perceives at an increased risk.
Even if the negatives on your credit report aren’t your fault, as in the case of identity theft. The majority of credit reports contain errors of some kind. And even if the entry is accurate, but negative, you need to try to get it removed.
You have debt rights. You have the law on your side. The FDCPA ( Fair Debt Collection Practices Act) protects you from unscrupulous creditors. But you do have to have a foundation, a basic knowledge of debt law. I don’t usually speak too highly of lawyers, I mean, who does. But the truth is that we all hate ‘em, until we need ‘em.
Debt laws are made to protect you. But a good credit lawyer can’t hurt. These guys have taken on creditors and collection agencies before. They know what the credit bureaus can and can’t do. They know the procedures that can quickly get negatives removed from your credit report.
I’m not singing their praises. I’m just saying that the time comes for a little help, when you may not feel you know enough about credit law. You may need to turn to a professional who is experienced at dealing with credit bureaus and can make sure your credit rights are not violated!
If you have issues like a credit judgment or two on your credit report, there are procedures to get this removed. Getting a judgment vacated is not easy, but it can be done. It’s really the experience factor that I think is important here. Credit lawyers have done this before. They already know what we as consumers would have to learn. And even after we learn it intellectually, we are still completely unfamiliar with the court procedures. If you are unable to get the debt judgment vacated, it can remain on your credit file for 10 or more years.
Practicing credit report law takes time to learn. While there are a lot of simple things you can do to correct your report, not all reports are simple. Many, in fact most, have numerous errors. In the case of identity theft, the errors and negative information can be almost insurmountable. Identity theft is definitely an area where you are going to need to contact an attorney who practices consumer credit law to correct the issues on your credit report.

Credit, the law and you

July 16th, 2009 at 02:57am Under Consumer Law

Whenever you make use of Bank credit, you are creating a liability and by doing this you lose our financial freedom until it is gone. There is nothing called good credit – all credit is bad. We realise this fact only when we are faced with a change in our circumstances and we can keep up with the payments. It is then that lenders turn less than congenial and adopt unfair and coercive means to extract money from us. Sometimes we realise a bit late that some lenders create unreasonable and legally unenforceable clauses in the contract when extending loans. Most of the time debtors don’t even know that they have legal recourse when confronted with such highly distressing demands. This is where debt write-off specialists come into the picture. With the assistance of these firms you can successfully get out of debt. But before jumping to that topic, it is relevant to understand the legal position of debtors in case of default. According to some estimates most credit agreements taken out before April 6th 2007 are illegal and therefore unenforceable under the law. The Consumer Credit Act 1974 lays down strict rules for banks, credit card and loan companies and ways to protect yourself in case of situations where these rules have been broken. In other words the law was enacted to provide legal protection to both consumers as well as lenders.

What are the salient features of Consumer Credit Act 1974? The act covers many of the issues which a debtor is likely to encounter while procuring a loan. The most important point to remember is to take loans from lenders who are licensed. This means they must obtain a consumer credit licence from the Office of Fair Trading. This does not mean that the licensees follow fair practices at all times but at least they are bound by the rules as per the Consumer Credit Act 1974. Obviously unlicensed lenders (commonly known as “loan sharks”) rarely care about any rules as they are generally outside of the legal framework of the Consumer Credit Acts. But we are now talking about getting out of debt so it is time therefore to have a closer look at the agreement including interest rates. Due to the complexity of the Consumer Credit Act it was not uncommon for lenders fudge the details and include terms which are outside those permitted within the Act. Under such circumstances, debtors have a legal recourse. Of course it is advisable to consult professionals and obtain guidance. Legal representation is important if one desires proper relief and freedom from debt, but there have been a number of individuals that have taken the time to study the law and successfully write off their debts.

Consumer Credit Act 2006 Consumer Credit Act 2006 is the most significant change in the law since Consumer Credit Act 1974. It was felt that over a period of time the provisions under the original act had either been diluted or become irrelevant. For example the financial limit of £25,000 was felt to be insufficient keeping in mind the current value of money (the result of rising debt without the backing of tangible assets). The key implementation dates were 6th April 2007 and 6th April 2008. The changes to the original act have been made to empower the individual borrower against the all powerful Banks, whilst at the same time making the requirements on the bank easier for them to follow. The provisions under the law can be evoked to become totally debt free.

Debt Write-off Writing off debts through litigation or negotiation has become big business, with many, many legal firms and claims handling agencies getting in on the act. It has therefore become really difficult for many ordinary people to define which company to use. In general these firms fall into three categories:

1. Firms that work exclusively on a purely conditional fee basis, seeking to extract there profits from the bank.

2. Firms that work on a partially conditional fee basis, whereby the initial costs are covered by the customer, but the main area of profit comes from extracting money from the bank.

3. Firms that charge sufficient from the customer that they can negotiate with the bank to avoid litigation, thereby offering the bank a means to avoid excessive court costs.

Generally speaking the banks are more likely to accept a settlement that means they have no additional costs to pay rather than fight, when there is a high likelihood of increasing their losses. Unfortunately, most customers seek the lowest cost option, which also generally means the lowest likelihood of success. This is because there are limited funds available for the firm to use to investigate a case and get it insured against loss. This in turn has resulted in many individuals being advised to pay when the case could have actually been won. Negotiating the debt write-off industry is a bit of a minefield and for many the intricacies of the Consumer Credit Acts to complex to decipher alone. Not knowing which companies have the specialist knowledge to trust is a big problem for many. The best advice is to do your research, find out what the success rate of the firm is and make sure you are not underselling yourself. It’s your credit that you are clearing, not theirs.

Email Marketing Laws and How They Apply to your Business

July 15th, 2009 at 08:57pm Under Consumer Law

Email marketing is a very effective way of reaching your target market. It is less expensive than other marketing methods, whilst allowing you to reach huge volumes of potential customers. In fact, by 2008, it is expected to be the most used method of advertising. Are you aware of the various email marketing laws that are in effect throughout the United States and other countries? It is important that you take the time to educate yourself on this topic before you proceed with an e-mail marketing campaign, 36 of the 50 U.S. states have privacy laws in place regarding e-mail marketing tactics. There are also laws in Europe, Australia, and Asia. Larger businesses will often retain the services of a specialist lawyer. But for the small business it is usually just sufficient to make yourself aware of the law, and how they affect you.

The CAN-SPAM Act was implemented in the United States to protect the privacy of consumers on January 1st 2004. CAN-SPAM is short for controlling the assault of non-solicited pornography and marketing act. The act prohibits the use of misleading to and fro headers in the email. Marketers are required to include their physical address in the email (this can be a registered office). There must also be an opt out link in every email, giving the consumer the ability to request removal from the senders list. The sender is required to remove the consumer from their database within 10 working days. Any email containing sexual content must be clearly identifiable before the recipient opens it. Marketers must obtain permission from the consumer in order to sell their email address.

Internet regulators are getting much tougher on marketers who violate these laws. They are imposing massive fines, and in some cases jail sentences of up to five years. These harsher regulations are to protect the users of the internet and mail services, who felt their privacy was being violated as their email continued to be clogged up with hundreds of unsolicited emails that were being randomly sent, with no particular target market in mind. As the use of email marketing continues to grow we can expect the regulations to be futhur enforced.

In addition, marketers who continue to send email marketing messages to consumers who have requested to be removed from their list may well decide to sue. This can be very scary. The law does however protect you also. You will not be found liable if a spammer has used your business as a cover, as long as you are unaware of the situation. You are also not liable if a virus is found in your marketing emails, just so long as you did not place it there, or know it was there, prior to sending out the emails.

The Coalition Against Unsolicited Emails is a non-profit organisation helping consumers to know their rights, to stop unfair email marketing practices, and also to provide businesses with answers to their questions before they engage in such activities. They also work closely with members of Congress to get laws passed that will be in the best interests of both consumers and business. Their website is a great place to get information www.cauce.org

Email marketing is a great opportunity to keep your business in the mind of the consumer, as well as encouraging them to make fresh purchases. However, it is important that you abide by the regulations and stay within the bounds of the law. Whilst most businesses do this, many don’t, others just simply are not educated and aware in the legislation, and so break the law unintentionally (no excuse in law). The Internet is a great place to get information regarding these laws and fair email practices. Check regularly for any updates. Keep within the legislation and your business will stand out and grow accordingly.

Insights Into Chapter 7 Bankruptcy Law

July 15th, 2009 at 02:57pm Under Consumer Law

When an individual consumer, not a business or corporation, is looking to file for bankruptcy, it is almost always most appropriate for them to either file under Chapter 7 bankruptcy law or Chapter 13 bankruptcy law. The majority of consumer bankruptcies are filed under Chapter 7. In Chapter 7 bankruptcy, the consumer is able to get rid of almost all his debts, thereby providing them with the chance to start over again, where their focus would be on rebuilding their severely tarnished credit report.

That last sentence is important to realize for anyone considering filing bankruptcy under any chapter or code. If your bankruptcy is approved by the federal bankruptcy courts after an extensively and detailed look at your current financial situation, the bankruptcy will be highlighted and readily visible on your credit report from each of the major credit bureaus for the next seven to ten years. This is a big reason why it is important to consider the act of bankruptcy as a last resort option, where you have thoroughly examined and evaluated each of your bankruptcy alternatives and found that proceeding with the bankruptcy petition is really your best option in your circumstances.

Even with the drastic changes in the bankruptcy laws in recent years, it should be noted that the underlying PUPOSE of filing Chapter 7 bankruptcy has not changed. But with that said, be aware that the changes in the bankruptcy laws have significantly changed the method and procedure for doing any kind of bankruptcy, including Chapter 7.

For the consumer considering chapter 7 bankruptcy, this is most often caused by a huge pile of debt, usually credit card debt and usually with high interest rates, where the consumer is unable to pay even the minimum amount due each month. Note that “fault” is not assigned in a bankruptcy hearing. The financial situation of the consumer may have come about due to things out of the control of the consumer, not due to the financial mismanagement of the consumer. The most frequent causes that lead up to this situation are a job layoff, high unexpected medical expenses that are not covered under one’s health insurance plan, a hotly contested divorce settlement, and too many other things which are out of the consumer’s direct control to list here.

This can be a problem. Most consumers really want to pay off their debt if they had the ability to do so. But a consumer with, for example, $60,000 or more in debt could find themselves continuing to pay on that debt for the next 20 years or more, even if they did not acquire additional debt and even at low or no interest rate being assessed.

After the bankruptcy petition is filed, the consumer needs to show up in court on a specified date, a date of which all his creditors have been notified of, and each side presents their case. The creditors, if they show up (they often do not) may argue that money was loaned to the consumer with fair expectations of repayment. It is ultimately up to the bankruptcy judge to decide how to proceed, and there is not a set or established standard for how this plays out, since each individual case is different.

Although Chapter 7 bankruptcy could conceivably be done without a bankruptcy lawyer, this is strongly not recommended. With the changes in the bankruptcy laws, compounded with variations of the law from state to state, the consumer could find himself spending more time and money that what the lawyer fees would have come to, and it is almost always worth the investment in a bankruptcy lawyer to guide you through the process, since they have a very thorough understanding of bankruptcy law and what the variations are in your state.

Consumer Protection & Law– a General Study From India’s Perspective

July 15th, 2009 at 08:57am Under Consumer Law

THE CONSUMER PROTECTION ACT, 1986, a basic focus-

The Consumer Protection Act, 1986 (68 of 1986) is a milestone in the history of socio-economic legislation in the country. The main objective of the new law is to provide for the better protection of the consumers unlike existing laws, which are punitive or preventive in nature. The Act intends to provide simple, speedy & inexpensive redresses to the consumer’s grievances.

In India various Acts intended to protect the consumers against different forms of exploitation were enacted, such as, the Indian Penal Code, I860; Indian Contract Act, 1872; Drugs Control Act, 1950; Industries (Development and Regulation) Act, 1951; Indian Standards Institution (certification marks) Act, 1952; Drug and Magic Remedies (Objectionable Advertisement) Acts, 1954; Prevention of Food Adulteration Act, 1954; Essential commodities Act, 1955; Trade and Merchandise Marks Act, 1958; Hire purchase Act, 1972; Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975; Prevention of Black marketing and Maintenance of Supplies of Essential Commodities Act, 1980: Essential commodities (Special Provisions) Act, 1981; Multi-State Cooperative Societies Act, 1984; Standard of Weights and Measures (Enforcement) Act, 1985; and Narcotic Drugs and Psychotropic Substances Act, 1985. Some significant consumer protection enactments of pre-independence time are the Sale of Goods Act, 1930; Agriculture Produce (Grading and Marketing) Act, 1837 and Drugs and Cosmetics Act, 1940.

The Consumer Protection Act is an alternative and cheapest remedy already available to the aggrieved persons/consumers by way of civil suit. In the complaint/appeal/petition submitted under the Act, a consumer is not required to pay any court fees or even process fee. Proceedings are summary in nature and endeavor is made to grant relief to the parties in the quickest possible time keeping in mind the spirit of the Act, which provides for disposal of the cases within possible time schedule prescribed under the Act.

Who is a Consumer?

A consumer is any person who buys any goods for a consideration and user of such goods where the use is with the approval of a buyer, any person who hires/avails of any service for a consideration & any beneficiary of such services, where such services are availed of with the approval of the person hiring the service. The consumer need not have made full payment. Goods mean any movable property and also include share, but do not include any actionable claims. Service of any description is covered under C.P.Act & includes Banking, financing, insurance, transport, processing, housing, construction, supply of electrical energy, entertainment, amusement, board and lodging, among others.

Who can file a complaint?

A complaint on a plain paper either handwritten or typed, can be filed by a consumer, a registered consumer organization, central or State Government & one or more consumers, where there are numerous consumers having the same interest. No stamp or court fee is needed.

Consumers can make complaints against which of the things?

A) Any unfair trade practice or restrictive trade practice adopted by the trader.

B) Defective goods.

C) Deficiency in service.

D) Excess price charged by the trader.

E) Unlawful goods sale, which is hazardous to life and safety when used.

Where to file a complaint?

The Consumer Protection Act has provided for a three tier system popularly known as “Consumer Courts” :-

A) District Forum: For claims up to Rs.20 lakhs.

B) State Commission: For claims above Rs.20 lakhs but less than Rs.1 crore.

C) National Commission: For claims above Rs. 1 crore.

The nature of complaint must be clearly mentioned as well as the relief sought by the consumer. It must be filed in quadruplicate in District Forum or State Commission (as the case may be) if there is only one opposite party. Otherwise, additional copies are required to be filed. Generally complaint should be decided within 90 days from the date of notice issued to the opposite party. Where a sample of any goods is required to be tested, a complaint is required to be disposed off within 150 days.

What are the reliefs available to consumers?

Consumer courts may grant one or more of the following reliefs:-

A) Repair of defective goods.

B) Replacement of defective goods.

C) Refund of price paid for the defective goods or service.

D) Removal of deficiency in service.

E) Refund of extra money charge.

F) Withdrawal of goods hazardous to life and safety.

G) Compensation for the loss or injury suffered by the consumer due to

negligence of the opposite party.

H) Adequate cost of filing and pursuing the complaint.

I) Grant of punitive damages.

What Is The Legislation That Ensures All These Rights?

It is the Consumer Protection Act, 1986. The act seeks to promote and protects the interest of consumers against deficiencies and defects in goods or services. It also seeks to secure the rights of a consumer against unfair or restrictive trade practices, which may be practiced by manufacturers and traders. There are various levels of ad judicatory authorities that are set up under the Act, which provide a forum for consumers to seek redressal of their grievances in an effective and simple manner.

What Are The Other Advantages To The Consumer Under This Law?

The consumer under this law is not required to deposit advalorem court fees, which earlier used to deter consumers from approaching the Courts. The rigors of court procedures have been dispensed with and replaced with simple procedures as compared to the normal courts, which helps in quicker redressal of grievances. The provisions of the Act are compensatory in nature.

So we can see that The Act has come as a panacea for consumers all over the country and has assumed the shape of practically the most important legislation enacted in the country during the last few years. It has become the vehicle for enabling people to secure speedy and in-expensive redressal of their grievances. With the enactment of this law, consumers now feel that they are in a position to declare “sellers be aware” whereas previously the consumers were at the receiving end and generally told “buyers be aware”.

What Are the Legal Requirements of the Lemon Law?

July 15th, 2009 at 02:56am Under Consumer Law

Manufacturers have for years been putting out false propaganda that a consumer does not have a lemon law claim unless he or she has four repair attempts for the same defect within the first 18,000 miles. This is simply incorrect. It is an effort by car manufacturers to discourage otherwise worthy consumers from pursuing claims for defective products.
The correct standard is whether the consumer has given the manufacturer a reasonable opportunity to repair the vehicle within the warranty period. A reasonable opportunity usually involves more than one repair attempt; I have seen few cases succeed with two repair attempts unless it’s a very serious defect which threatens the safety of the occupants of the car. “Within the warranty period” means exactly what it says: if your car has a drive train warranty for 70,000 miles and the drive train is defective, then you have 70,000 miles to have the manufacturer make the necessary repairs effectively. If they don’t fix the drive train, and if you have given the manufacturer a reasonable number of repair attempts, then you have a lemon law claim.
Also, if the manufacturer cannot fix the problem within the warranty period, and you notify the manufacturer or its dealership representative in writing within 60 days after the last failure to repair the problem, then the warranty does not expire as to that defect. Thus, if the consumer above had notified the manufacturer of its failure to repair the vehicle within 60 days after the last unsuccessful repair attempt, then the warranty does not expire as to that drive train defect.
There is something called the “lemon law presumption”, and this is the only part of the lemon law where there is a requirement of 4 repair attempts within the first 18,000 miles. This is a legal presumption affecting the burden of proof in a lemon law lawsuit. Normally, the plaintiff bears the burden of proving that he or she has given the manufacturer a reasonable number of repair attempts to fix the vehicle. If, however, the consumer proves that he or she brought the vehicle in for repairs for the same defect four times within the first 18,000 miles, or if he or she proves that the vehicle was out of service 30 or more days within the first 18,000 miles, then the law shifts the burden of proof to the manufacturer to prove that it was not given a reasonable opportunity to fix the vehicle.
The consumer gets the benefit of the presumption if he or she has two or more repair attempts for a serious safety issue within the first 18 months or 18,000 miles. The safety issue must be a serious safety issue which threatens the safety of the occupants of the car.
As a practical matter, plenty of lemon law cases go forward without the lemon law presumption. The only requirement upon the consumer is that he or she give the manufacturer a reasonable number of repair attempts within the warranty period. If this is done, and the vehicle still is not repaired, the consumer has a lemon law case.