The January 26, 2012 edition of the Navajo Times reported on a situation that is becoming all too common and a consumer who decided that she was not going to take it any more.

The article reports on a class-action law suit filed against Credit Acceptance Corp., a Michigan-based finance company, that is alleged to be electronically disabling vehicles on the a Navajo reservation when the owners fall behind on their payments, in violation of Navajo law.

The lead plaintiff alleges that she missed a vehicle loan payment and then found herself stuck five hours from home in the vehicle the lender had disabled by remote control.

According to the report and law suit, the issue is whether these devices can be used while a vehicle is on the reservation. Evidently, consumer protections are stronger under Navajo Nation law. Navajo law requires that the lender get approval from a tribal court or get a voluntary release signed by the buyer before repossessing a vehicle.

I have had to deal with this sort of situation involving Philadelphia area dealers and finance companies who require customers to agree to the installation of GPS, vehicle starter interruption or remote shut-off systems as a condition of the sale. All of these systems facilitate repossession.

You can see the full article by pointing your browser here: http://www.navajotimes.com/news/2012/0112/012612loan.php

If this has happened to you, I’d like to hear about it.

A recent article reveals that physicians often are not open or honest with their patients. The full article can be found by pointing your browser here: http://content.healthaffairs.org/content/31/2/383.abstract

The article points out that the “Charter on Medical Professionalism,” endorsed by more than 100 professional groups worldwide and the US Accreditation Council for Graduate Medical Education, requires physicians to be open and honest with patients. I’m quite sure that most of us would expect nothing less.

However, according to the article, data from a 2009 survey of 1,891 practicing physicians nationwide showed that approximately one-third of physicians did not completely agree with disclosing serious medical errors to patients, almost one-fifth did not completely agree that physicians should never tell a patient something untrue, and nearly two-fifths did not completely agree that they should disclose their financial relationships with drug and device companies to patients. Just over one-tenth said they had told patients something untrue in the previous year.

The authors of the article stated that the findings raised concerns that some patients might not receive complete and accurate information from their physicians, and doubts about whether patient-centered care is broadly possible without more widespread physician endorsement of the core communication principles of openness and honesty with patients.

If you believe you or someone close to you has been harmed by a physician, then you should contact an attorney right away. It is important to prosecute negligence cases to stop it from happening again and stop others from being harmed.

Two repo-men stand accused of grand theft larceny for helping themselves to an expensive car part when repossessing another car. The Sun Herald in Southern Mississippi reported on the charge in its January 30, 2012 edition. The investigating officers tracked down the repossessed vehicle and found the missing car part inside of it. The officers identified the repo-men and then arrested them. The full report can be seen by pointing your browser here:

http://www.sunherald.com/2012/01/29/3719424/tow-truck-operators-accused-of.html

I get frequent calls about the theft of property from or in connection with repossessions. In PA, as in most jurisdictions, repossessors must maintain personal property for at thirty (30) days following repossession. They must provide a written notice providing information about how you can retrieve your property.

If you think a repossessor has stolen your property, or will not return it, then you should contact the police and an attorney right away.

The CBS affiliate in Atlanta Georgia exposed a used car dealer with a reputation for wrecks as if they were accident free. Here’s the kicker. The TV station caught the same dealer doing the same thing in 2009.

In 2009, hidden cameras caught the dealer doctoring Carfax reports to deceive customers into buying wrecked cars. Readers of this blog know that I have warned that dealers are using Carfax and Autocheck to scam consumers.

This year, Hidden cameras caught the dealer buying cars that they knew had been in accidents, and the selling them without disclosing this information to customers.

“It’s an awesome car, great price. Clean as a whistle,” the salesman said to the undercover reporter.

The salesman used the same pitch over and over, about multiple cars that the station documented had been in accidents.

“If the car has frame damage, accidents reported, I report all of that to you,” the salesman said.

“No accidents on either of these cars?” the undercover reporter asked.

“No,” the salesman replied.

The Autocheck history reports told a different tale. Those reports showed the cars were announced at auction as having major frame damage. And even though this information was provided to company, the salesman failed to disclose these potentially dangerous defects.

“I could tell he was lying to me about certain things,” said a customer. “I went home and ran an Autocheck report and it came back as having frame damage,” the customer said. “If you get in another accident to the point where the car already has frame damage, or unibody damage, it’s not going to hold up as well in another accident.”

This is why civil justice is so important. Dealers are politically powerful, especially locally. Law enforcement has other priorities. The market depends on aggrieved consumers and their lawyers punishing the bad dealers. The bad dealers make it harder for the good dealers.

The affiliate is to be commended for its work. You can see the full report by pointing your browser here: http://www.cbsatlanta.com/story/15560541/used-car-owner-caught-on-hidden-camera-selling-dangerous-crashed-cars-again

The August 1, 2011 edition of the Baltimore Sun contains a great article on Yo-Yo vehicle sales fraud. It’s one of the most common forms of sales fraud. It’s a wonder it has taken this long to get some exposure. The Baltmore Sun should be applauded.

The articles sets the stage by asking a simple question.

Imagine showing off your new car to friends and family only to get a call from the dealer — sometimes weeks later — saying your financing has fallen through.

You’re given the option of returning the car or signing a new sales agreement with terms that are likely less favorable. If you’re like many buyers, consumer lawyers say, you will be too embarrassed to send the car back and opt to pay more instead.

The article quotes a MD assistant attorney general: “It’s a major problem in our state and other states.”

The article appreciates that more protections are necessary. Although most state laws prohibit dealers from trying to force consumers to renegotiate signed finance agreements, most consumer don’t know this. If you don’t know your rights, then they might as well not exist.

Dealers are very good at overcoming any resistance. Dealers in PA are not supposed to use supplemental forms or contract that appear to make the deal contingent in any way and appear to require the consumer to return the vehicle, but many, many dealers do this.

Often dealers do not sign the finance agreement, then claim it was never approved, so you have to do what they say. This is not permissible under PA law. The dealer must sign before the consumer signs and may not use their own failure against the consumer.

Dealers will also claim that they never transferred the Title, so the vehicle is still theirs. Dealers are required to transfer the Title at the time of the sale, and, again, may not use their own violation against the consumer.

Dealers often will threaten to call the police to report the vehicle stolen. Dealers actually often follow thru on the threat. This is beyond wrong and unlawful.

Why do dealer yo-yo consumer? A yo-yo usually arises out of two circumstances. One involves a consumer without enough credit and the other involves a consumer with too much credit.

In the first circumstance, the dealer does not want to let a consumer walk off the lot without buying, because he does not want to lose a sale. The dealer knows that he cannot sell the deal to a bank, but figures he can sweeten it by pulling back the consumer at a later time.

In the second circumstance, the dealer finds out from a bank that it would have bought an even bigger or more expensive deal for a particular consumer than the dealer actually made with the consumer. The dealer want to pack more into the deal, usually in the form of GAP insurance, extended warranties, window etching, credit disability insurance, etc., so that it can make more money.

The article recounts a particular transaction and lawsuit.

Ozell Carter of Temple Hills says he’s one of them. He lost his car after two months because the dealer said the financing fell through. Carter is now suing.

In his lawsuit filed in April, Carter says he was offered a deal to buy a 2004 Mercury Sable for $10,175 in late October from Car Center in Waldorf. Carter signed a contract to pay $278 a month over 54 months. And a few days later got insurance and temporary tags for the car and drove off.

About a week later, according to the suit, a Car Center agent called Carter to tell him of a better deal at $235 a month over 5 years. Carter signed a new contract. Believing the car was his, he says, he sold his old auto.

But more than a month went by, and Carter hadn’t received his payment book. He says the agent told him not to worry. On Dec. 23 with still no payment book, Carter went into the dealership to pay in person. That’s when he was told that he didn’t get financing.

Carter says he was told that to keep the car, he would now need a co-signer and his monthly payment would jump to $375 over three years. He couldn’t find a co-signer and couldn’t afford the higher payment. He returned the Mercury Sable on Christmas Day.

“It was devastating,” says the 53-year-old. “I cried. I cried because it was a major setback.”

Carter says without a car he missed work at his part-time job, and ended up renting a vehicle for a month.

As the article points out, dealers make fun of and laugh at their antics. They jokings call these devasting fraud “MacArthur agreements,” referring to Gen. Douglas MacArthur who vowed “I shall return” when ordered to evacuate the Philippines in World War II.

You can see the entire article by pointing your browser here:

http://www.baltimoresun.com/business/money/bs-bz-ambrose-yo-yo-20110731,0,5647735,full.story

Fewer people are being diagnosed with colorectal cancer according to a new study from the Centers for Disease Control and Prevention.  It shows that the number of cases slipped 3.4% from 2003 to 2007, an annual decrease of about 66,000.  The number of people dying from colorectal cancer also is declining - by 3% a year, the study finds.

CDC director Dr. Thomas Frieden calls this “significant progress.”

“This is good news. We now understand that colon cancer screening can save your life, and more and more Americans are taking advantage of it.”

The report attributes half of the lives saved to an increase in screening (primarily by colonoscopy) and about one-third (35%) to people reducing their risk factors by losing weight and kicking the smoking habit, for instance.

Colorectal cancer is the second leading cause of cancer among men and women combined, according to the American Cancer Society, which estimates about 49,380 deaths from it will occur this year.

Frieden says nearly two-thirds of Americans aged 50 to 75 had some form of colon cancer screening.  The report shows the number of Americans getting screened has been going up steadily since 1985.

Frieden calls the increase “remarkable” but he says he is “concerned it is beginning to level off.”

Beginning at age 50, both men and women of average risk for developing colorectal cancer should get screened according to the American Cancer Society.

Frieden says he has a family history of colon cancer, so he had his first colonoscopy 10 years ago at age 40. During his next scheduled screening, which occurred sometime since the end of 2010,  Frieden says, his doctor found “four polyps, all of them were removed, two of them were rather large, but none of them were cancerous [yet].”  He credits the procedure with saving his life.

Polyps are small growths that are common in adults. Many are harmless, but most colon cancer starts as a polyp. Removing the polyps prevents them from becoming  tumors.

One-third of Americans who should be screened for colon cancer aren’t, so there is room for improvement there, according to the CDC.  Frieden says  many of the 22 million people aged 50 to 75 who have not been screened have never been asked to take the test by their physician.

“Doctors, nurses and other health care providers can do a lot in making colon cancer screening routine,” Frieden says.  “As more people understand that colon cancer screening can save your life, I think the resistance to colon cancer screening goes down.”

Another factor preventing people from getting screened is what a patient needs to do before a colonoscopy.

“There is no doubt the preparation is unpleasant… but it’s a whole lot more unpleasant to die young from a preventable illness,” Frieden says.  “Screening works and the more people get screened the lower death rates are going to go.”

The July 23, 2011 edition of the Commercial Appeal told the story of another repo-man facing assault charges for doing what repo-men do. I wonder if I’m the only one who imediately thinks of the old expression, “boys being boys,” when I hear or see another story of a repo-man acting bad.

Before moving on to the details of this story, I think I should emphasize that there are some really good, really professional repossession agencies and agents working today. I wish that was the norm. The good guys don’t like the bad guys anymore than consumers do. The true leaders in the repossesion industry are pushing for better training, better licensing, and better enforcement.

The acknowledged problem is that banks are always looking for the cheapest not the best. Banks often end up hiring someone who’s only credential is that they own or have access to a tow truck. Most banks do not inquire about much less restrict their hiring to repo-agencies with proven track records, certified agents, careful training, and approved protocols that exclude any form of intimidation, trespass or utilization of the police.

Now back to our story. The story reported about a repo-man who had been with aggravated assault after police said he dragged a man 85 feet down a driveway while repossessing a car in Marshall County Thursday. The repo-man was arrested on the felony assault charges.

According to the authorities incident occurred about 3 a.m. According to investigators, the repoman went to the victim’s home to repossess his 1992 Cadillac Deville. In an attempt to stop the tow truck driver from taking his car, the victim ran after the truck, fell and was dragged under his car down his gravel driveway.

According to authorities, the repo-man never stopped!!! The victim was later found by family members in the driveway. He was taken to the hospital and underwent surgery for head injuries, and also suffered a broken arm and shoulder and several other injuries.
We’d all be much, much safer if the bad repo-agencies and agents were punished both by the criminal authorities and Judges and juries for actions such as these.

We’d all be much, much safer if the bad repo-agencies and agents were punished both by the criminal athorities and Judges and juries, when they act inappropriately and confrontations, even if they do not developed, are thereby threatened or made more probable.

The whole rational behind the “breach of peace” concept – that repo-agents are supposed to stop and go away upon demand, and are not supposed to intimidate, touch, or force a repossession – is to avoid a confrontation in the first place.

It’s no different than drunk driving. You don’t only punish the drunk driver, if they have an accident or hurt someone. You punish the drunk driver for driving drunk, regardless of whether anyone was hurt, because the danger is created by drnk driving in the first place. You want to try to prevent injuries so you try to eradicate the danger.

You can see the full story by pointing your browser here:

http://www.commercialappeal.com/news/2011/jul/23/repo-man-facing-assault-charges/

According to a recent press release, the Pennsylvania Attorney General recently arrested a health care worker in an alleged Medicaid Fraud scheme. This seemed like an opportune time to comment on how we can all help in combatting Medicaid and Medicare fraud. The more we combat Medicare and Medicaid fraud the more we all benefit indirectly.

Importantly, you report suspected Medicare or Medicaid fraud, you may be entitled to a percentage of any money recovered by the government. The government often recovers hundreds of millions of dollars. Therefore, you may be entitled to millions of dollars.

In 2008, the federal government collected $1.34 billion in settlements and judgments and paid whistleblowers over $198 million dollars. In 2009, the government recovered more than $2.4 billion. Payments to whistleblowers since 1986 have reached over $1 Billion.

The alleged scheme reported in the press release is all too typical. A worker allegedly submitted bills treatment to several different patients during the same period of time, or billed for treatment that he could not have provided, because he was out of town, or because he was working at his other full-time job. A person charged with a crime is presumed innocent until proven guilty.

Although the alleged scheme reported by the Attorney General involves a singled health-care worker, the large schemes often involve large health systems and fortune five-hundred companies who submit fale billings in a much more methodical and systematic fashion.

If you think you have discovered an ongoing Medicare or Medicaid fraud, you should contact an attorney right away. You can call me anytime.

In the future I will write more about how to report a possible fraudulent scheme. We all have a role to play in the effective operation of our government and the delivery of government services. It is our government and our jobs are not done when we leave the voting booth. I, for one, would not have it any other way.

The full press release can be seen by pointing your browser here: http://www.attorneygeneral.gov/press.aspx?id=6139

The Pennsylvania Attorney general recently announced that it had reached a settlement with a Georgia advertising firm, Action Integrated Marketing (AIM) related to claims that it designed and sold misleading advertising campaigs and promotions to car dealerships.

More specifically, the AG claimed that the advertisements included newspaper and radio spots touting sales events featuring repossessed cars and other vehicles that were not part of normal dealer inventory.

Examples of these events include: “The Repo Joe Sale,” “National Vehicle Disposal,” “Government Vehicle Disposal,” ”Police Seized Vehicle Selloff” and “Company Car Fleet Disposal.”

This advertising allegedly gave consumers the impression that the vehicles offered for sale were not part of a dealer’s normal inventory, were being brought in from outside sources and, as a result, were being sold at substantially discounted prices.

One of the ads, the “Repo Joe Sale” ad allegedly showed a character driving a car carrier truck-indicating that he was delivering inventory to a dealer’s lot. In fact, the vehicles available for sale through these events were the standard used vehicles available on a day-to-day basis.

According to the AG’s complaint, the advertising AIM produced not only misrepresented the origin of vehicles offered for sale, but also created a false sense of urgency and failed to adequately disclose prices and terms.

Ryan said that AIM advertised that many vehicles were available for purchase at specific low monthly payments with a specific down payment. However, the ads failed to adequately indicate that the payments were contingent on the creditworthiness of the consumer.

Under the terms of the settlement, AIM agreed to comply with the Pennsylvania Consumer Protection Law and the Automotive Industry Trade Practices Regulations and: not make false or misleading claims in an advertisement regarding the origin of vehicles offered for sale; not make or imply a false premise for a sale of motor vehicles; and clearly and conspicuously disclose all material terms, limitations, exclusions, conditions and restrictions relating to any offer in close proximity to any terms or conditions to which they relate.

Additionally under the terms of the agreement AIM will pay $150,000 to the states for future public protection purposes.

You may be asking yourself the same question I find myself asking, “Well, what about the dealerships?” They ran the false and misleading ads. They benefited from the false and misleading ads. They are subject to the same laws. They surely knew that the ads were false and misleading. Why weren’t the dealers prosecuted and punished as well?

I’m afraid I cannot offer any logical explanation for the dealerships evidently getting off scot-free once again. It might be a good idea to direct that question to the AG through its Website.

The Attorney General is entitled to our gratitude for pursuing this action against AIM. All Pennslylvania consumers are beneficiaries of the AG’s efforts.
If you want to see the entire press release, point your browser here: http://www.attorneygeneral.gov/press.aspx?id=6039

Debt counseling and debt relief scams are very prevalent at the moment. You need to be on guard. You need to realize that many of these agencies cannot fulfill their grandiose promises. Worse, many will take your money and will not even try. Watch out! There are many scammers out there.

Many of the agencies are actually owned by the very banks and credit card companies that have scammed and abused them from the beginnin. These agencies were not created to help you – as a true debt counsel should do – but to help the banks.

Many of the people who call me about a fraudulent car deal, about an abusive debt collector, or about an unlawful repossession, really have a need for comprehensive debt counseling. Unfortunately, it is not unusual to learn that they have already been scammed.

Many of the scammers will promise to lower your monthly payments, cut your debts, lower your interest rates or get your creditors off of your back. They may even offer a guarantee. They are excellent salespeople as are all scammers. The other thing you have to watch out for are their fees. They are often misleading and substantial.

What should you do. First, you should call an attorney like me. Go to the National Association of Consumer Advocates (NACA) Website where you can find a qualified consumer protection attorney in your area. He or she will probably be able to recommend a true, local non-profit. In the Philadelphia area I recommend contacting Consumer Credit Counseling of Delaware Valley (215-563-5665).

Check them out with the Better Business Bureau or your local consumer protection office. By doing your homework you should be able to find a service that doesn’t over-charge or over-promise. Here’s a good place to start: The National Foundation for Credit Counseling. They’ll help you find a certified counselor near you.