Basic Consumer Law
Training
October 1, 2008
Catherine A. Schneider
Supervising Attorney
CARPLS
cschneider@carpls.org
Fair Debt Collection Practices Act
FDCPA 15 U.S.C sects 1692-1692p.
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Who is Covered
What is Covered
What is Prohibited
Debt Collectors “Musts”
Civil Liability for Non-Compliance
What kind of debt is the
consumer facing:
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Credit Cards
Autos
Payday Loans
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Student Loans
Medical Bills
Home Repairs
Credit Cards
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Breach of written contract claim;
Muni cases, Law cases, Small claims (IL
SCR 281) in Cook County – when answer
or other pleading required;
Summons – P.S., Sub- Service, Small
claim certified mail service IL SCR 284;
Return date v. Trial date;
Default – Vacating a technical default;
Vacating a default: 735 ILCS 5/2-1301 /
735 ILCS 5/2-1401
Credit Cards
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Defenses
Statute of Limitations
– 10 years, but see
Parkis v. Arrow
Financial Services,
LLS, 2008 WL 94798
(N.D. Ill)
Debt has been paid
Not Consumer’s Debt
No contract 735 ILCS
5/2-606
No assignment 735
ILCS 5/2-403
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Counterclaims
Violations of FDCPA
Credit Cards
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Settlement – lump sum / installment
payments
Trial – 30 days – motion to
reconsider: new evidence, new law
or error in application of existing law
(735 ILCS 5/2-1203)
Appeal – 30 days
Credit Cards
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Two other notes
Consumer Credit Protection Act – Credit
Billing (15 USC 1666) – when a consumer
buys goods or services using a credit card,
she can assert against the credit card
issuer and defenses and non-tort claims
eh or she has against the merchant under
certain circumstances;
Under the Fair Credit Billing Act,
consumers are only liable for $50.00 in
unauthorized charges on their credit card
account.
Autos
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Buyer’s Remorse
Financing Problems
Material
Misrepresentations
Service Contracts
Mechanical
Problems /
Warranties
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Leased Vehicles
Co-Signors /
Guarantors
Can’t Afford
Payments
Re-Possessions
Autos
Buyer’s Remorse
 Contract Controls
 No “3 day return period”
 Options
 Obligations
Autos
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Financing Problems
Financing falls through – 815 ILCS 505/2C
(IL Consumer Fraud and Deceptive
Practice Act) – get “stuff” back
Signing a new financing contract –
possible fraud
If credit is rejected
If dealer refuses to give “stuff” back –
attorney’s fees
Autos
Material Misrepresentations
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False advertising
Sales person’s representations
815 ILCS 505/1 - damages
Autos
Service Contracts
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What are they
Scams
Autos
Mechanical Problems / Warranties
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New Cars
Contract governs
Follow use guidelines
Required formal dispute resolution
Demand letter
Contact Consumer Protection agencies
Suit – Magnuson Moss Warranty Act
Lemon Laws
Autos
Mechanical Problems / Warranties
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Used Cars
Power Train Components – Consumer
Fraud Act
FTC Used Car Rule
Warranties and “as is” sales
If there is a written warranty – same as
New Cars
No Lemon Law
Autos
Leased Vehicles
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Consumer Leasing
Act, 15 U.S.C. Sec.
1640 et seq
Default and
possible
repossession
Early Termination
Sales Tax
Mileage Limits
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Interest, down
payments and
insurance
Wrecked or Stolen
Car
Expiring Lease
Auto
Co-signors / Guarantors
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Factors releasing Co-Signors from
responsibility
Co-signor on title
Guarantor's Obligation
Autos
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Can’t afford payments
Is the debt secured? Likely
Negotiate a work-out plan
Sell the Car
Return the Car
Bankruptcy
Autos
Repossession / Deficiency Suit
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Is there a valid
security interest
Is there really a
default – dealer’s
practice of accepting
payments
Breach of Peace 810
ILCS 5/9-503
Is 30% of the
purchase price paid
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Reselling the Car – 2
notices
Commercially
Reasonable Sale
Statute of Limitattions
– 4 years
Payday Loans
Payday Loan Reform Act
(PRLA), 815 ILCS 122/1 et
seq
Student Loans
When does repayment start
 5 repayment plans
 Default
 Bankruptcy?
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Medical Bills
Implied agreement
 Reasonable value
 Over charges
 Insurance
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Home Repairs
Mechanics Lien
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What Is It
Requirements
Perfection
Then What
Credit Reporting /
Credit Access
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Credit Scores
Credit Reports
Improving Credit Scores
Identity Theft
Is the consumer dealing
with multiple debts?
Perhaps Bankruptcy is
going to be the answer.
Chapter 7
Chapter 13
Is the consumer
collection/judgment proof
EXEMPT ASSETS
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Necessary Clothing
Soc. Security
Unemployment
Public Assistance
Veteran’s Benefits
Private pensions
Alimony
Child Support
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Take home pay up to
$348.75 per week
$15,000.00 of home
equity
A car worth $2400 or
less
Tools of trade worth
$1500 or less
Up to $4000 of any
“other property