Auto Repairs,Warranties, and Your Rights

Summertime is the height of vacation season, and for many Americans that means taking a road trip by car. 

It is always advisable to keep your car properly maintained and road-ready, and that means getting it repaired from time-to-time. Of course the bill for car repair can range from a few hundred dollars into the thousands, and many consumers do not understand what their rights are once they have paid for those repairs.  

Here are a few points to keep in mind.

Know About Warranties:  A warranty is simply a promise made by a company or manufacturer to stand behind a product, or to fix certain problems, defects or malfunctions over a period of time.  Warranties require the company or manufacturer to pay for any repairs or replacement of parts during the warranty period, which can range from a few days to many months or miles.

Dealer Warranties:  A dealer must honor the warranty that came with your new car, even if someone else does the routine maintenance and repairs.  It is illegal for the dealer to deny your warranty coverage simply because you had someone perform routine maintenance ,such as an oil change, brakes, inspections, tire rotations, etc. Under the Magnuson-Moss Warranty Act, which is enforced by the FTC, dealers and manufacturers cannot deny you coverage.  However, be aware that if the work performed elsewhere is improperly done or causes additional damage, some repairs may not be covered.

Parts: "Aftermarket" parts are those made by a company other than the vehicle manufacturer or original equipment manufacturer.  "Recycled" parts are those that were made for, and installed in, a new vehicle by the manufacturer and later removed from the vehicle and made available for reuse or resale in another vehicle. Using an aftermarket or recycled part in your car does not void your warranty.

Tips to Avoid Warranty Issues:

• Read your warranty--Check your owner's manual, or find a copy of the manual online.
• Remember the warranty period--Warranties, by design, are made to last for a definite period of time. Be aware of your warranty expiration period.
• Service your car regularly--Regular maintenance will highlight any repair issues that may or may not be covered under warranty.
• Keep good records--Diligently keep all of your service records for any work performed on your call, no matter how routine.
• Don't be afraid to complain--If you believe the dealer or repair shop did not treat you fairly, you can contact the Better Business Bureau, the FTC, or your state Attorney General with a complaint.

Remember, you have a right to be treated fairly and honestly by every single dealer and auto repair shop. Auto repair is big business, and when it comes to looking out for the consumer in this area, the law is on your side.

Banks--Let Go of My Money

Putting a Hold on Funds Deposited to Your Account

It happened to me just the other day, and I decided to review the law on how long a bank can place a "hold" on money deposited into your account.

In my case, a check was deposited into my account, and my bank decided it would put a hold on the "uncollected funds" from that check, before I could have use of the money.  My bank told me it was going to release $200 from the check for my use immediately, but most of the funds would not be available for another 2 business days.  My bank also told me that the remainder of the funds would be available in about 5 days.  When I asked about the policy, the branch manager told me the matter was out of his hands, and there was nothing he could do about it.

But I believe there is more to the story.

Under the Expedited Funds Availability Act (EFAA), effective 1988, and  the Check Clearing for the 21st Century Act, effective 2003 (Check 21), a bank generally must make all funds available to the account holder by the second business day.

These laws were passed to stop the once-widespread practice by banks of "floating"depositor funds to finance the banks' own investments and earn lots of money from the interest of other people's money.  With today's digital technology, there is no rational justification for banks keeping depositors' funds away from them for more than 48 hours, and a strong case can be made that banks should make funds available even more quickly. This practice should be whether the account holder has 100 dollars or 100 thousand dollars in her account.

Today, banks must follow the law and regulations in this area, but most consumers do not know that the law is on their side when it comes to funds available sooner, not later, than most banks advise.  According to the Federal Reserve, here are the rules:

Banks can place "holds" on checks for a variety of reasons. Most commonly, banks hold a check because the collection of the money may be in doubt or the check looks suspicious for some reason. Holds may also be placed when a large dollar amount (more than $5,000) is deposited or when funds are deposited into a new customer's account.

A federal law, the Expedited Funds Availability Act (EFA), contains rules that allow banks to delay or "hold" funds deposited by check. You may want to review the account agreement you received when you opened your account for details about your bank's funds availability policies and procedures. A bank must give you a copy of its deposit availability disclosure upon request.

When Will Your Funds Be Available

Type of Deposit	When Available **
Direct deposits	Day of deposit
Wire transfers	Next business day (Mon-Fri)
First $200 of any non-"next-day" check deposited	Next business day (Mon-Fri)
Cash*	Next business day (Mon-Fri)
U.S. Treasury checks (deposited in person or at ATMs owned by your financial institution)	Next business day (Mon-Fri)
U.S. Postal Service money orders*	Next business day (Mon-Fri)
State or local government checks*	Next business day (Mon-Fri)
Cashier's, certified, or teller's checks*	Next business day (Mon-Fri)
Checks and money orders drawn on another account at the same financial institution	Next business day (Mon-Fri)
Federal Reserve Bank and Federal Home Loan Bank checks*	Next business day (Mon-Fri)
Any other checks and non-U.S. Postal Service money orders	Second business day (after the day of deposit)
Deposits (of items noted by "*") made at an ATM owned by your financial institution	Second business day (after the day of deposit)
Deposits made at an ATM not owned by your financial institution	Fifth business day (after the day of deposit)

* Deposited in person
** Maximum hold allowed; your funds may be available sooner - check with your financial institution

So if your bank tells you something different, don't be afraid to ask them whether they are in compliance with the Expedited Funds Availability Act, as amended by the Check 21 law.

That should get their attention--and maybe even loosen up some of your own money  in your bank account, sooner than expected. Remember, when it comes to banking, the law is on your side.

Your Credit Card Rights

Millions of Americans use their credit cards every day to buy gas, fast food, groceries, clothing and entertainment products, to name a few.  As a nation, we love our little plastic cards, because they allow us to walk into any store, anywhere in the world, and swipe.  With the flick of a wrist, and the wonders of modern digital technology, we can purchase just about anything we put our hands on.

With all of the freedom associated with credit cards, there also comes a lot of responsibility.  Of course, we as consumers have the responsibility of paying our debts, and keeping our credit in good working order. But what about the credit card companies?  What kind of responsibility do they have in today's world, when it comes to the rights of consumers? 

Not very long ago, Congress enacted the Credit Card Accountability Responsibility and Disclosure (CARD) Act.  This new law brought about sweeping protections for consumers and required card companies to do a few things differently.  Here are some of the changes brought about by the CARD Act:

Your credit card company must comply with the rules below:

Fees

• The company cannot change rates or fees without sending you a notice 45 days in advance in most cases.
• The company cannot charge you a late payment fee of more than $25, regardless of how much you owe—unless one of your last six payments was late or the credit card company can justify a higher fee based on the cost of late payments

Payments

• The company has to tell you how long it will take to pay off your balance if you make only minimum payments.
•  The company must mail or deliver your credit card bill at least 21 days before your payment is due.

Interest Rates

• The company cannot increase your rate for the first 12 months after you open an account unless you have a variable interest rate or an introductory rate; you are more than 60 days late paying your bill; or you are in a workout agreement and don’t make payments as arranged.
• The company cannot charge higher rates for purchases made before you receive notice of a new rate.

In addition, a credit card company can grant credit cards to consumers under age 21 only if they can show they are able to make payments or have a cosigner for the card. 

There are more rights and responsibilities relating to the lawful use of credit cards.  More information about CARD Act protections is available from the Federal Reserve.  

(c) Adonis E. Hoffman  2013.

Claiming Government Money

We all have heard stories about people getting lucky and finding unclaimed money. And most of us, perhaps secretly, wish we could be so lucky as to get in on the good fortune.  But beyond the myth and legend of unclaimed money, are rules and regulations as to how people actually can claim money that has been lost to them, or belongs to them due from any number of financial institutions and government agencies.

Here is a little background for your information.

What is Unclaimed Money?

If the government owes you money and you do not collect it, then it is unclaimed.  This can also happen with banks, credit unions, pensions, and other sources.  Beware of unclaimed money scams.  There are people who pretend to be the government and offer to send you unclaimed money for a fee.  Government agencies will not call you about unclaimed money or assets.  Learn how to spot these types of scams.

Where to Look for Unclaimed Money

Currently, the government does not have one website for finding unclaimed money by name, social security number or state.  To find it, you will need to visit each site separately, and conduct an online search. 

Here are some of the best sites to search.

States Unclaimed Money-- Search your state's listing of unclaimed funds and property. 

Retirement -- Pensions from Former Employers-- Search for unclaimed pension money from companies that went out of business or ended a defined pension plan.

Taxes-- Tax Refunds -- The IRS may owe you money if your refund was unclaimed or undelivered for some reason.

Taxes--Check the Status of Your Federal Tax Refund--You can check your refund status online.

Banks--Search the Federal Deposit Insurance Corporation (FDIC) for unclaimed funds from failed financial institutions.

Credit Unions -- Find unclaimed deposits from credit unions.

Investments -- The Securities and Exchange Commission lists enforcement cases where a company or person owes investors money.

Damaged Money -- The U.S. Treasury Department will exchange mutilated, old or damaged U.S. currency.

I wish you the best of success in claiming government money.