Welcome to the 2017 ILF Annual Conference

Welcome to the 2017 ILF Annual Conference

SCAMS, DEBT COLLECTION, & BANKRUPTCY How Libraries Can Help Patrons Make Good Consumer Choices, And Avoid Bad Ones John E. Brengle Director of Consumer Law Indiana Legal Services, Inc. November 14, 2017

Part One: Your Rights A brief summary of some of the work Indiana Legal Services does in Consumer Law Followed by resources libraries can use to help people gain more information about consumer protection, scams, debt collection and bankruptcy

I. Consumer Protection Focus is on: [1] bad deals that consumers may encounter, and [2] outright scams consumers need to be aware of

A. Bad Deals What rights do consumers have? Will discuss three common complaints: Used cars Home repairs Payday loans

1. Used Cars Most used cars are sold As Is. This means: Buyer beware. Buyer may inspect the vehicle before purchasing, but will take all risks of hidden defects. Seller is not required to make or pay for repairs Seller has not offered any warranties Warranties may be purchased at additional cost to the buyer

Buyers may still have rights: Fraud by the seller Unfair and deceptive sales Federal law (E.g. Truth in Lending, Equal Credit Opportunity Act) Unlawful repossession / breach of the peace Breach of sales contract by the seller Yo yo sales Breach of warranty

2. Home Repairs and Improvements If more than $150, must include a written and signed contract which includes a detailed description of the work, starting / completion dates, price Right to cancel Consumer may cancel by delivering a written notice within three business days, and receive any money paid within ten business days Consumer must receive a clear and conspicuous notice of the right to cancel Consumer may have a claim to money damages and attorneys fees for violations

3. Payday Loans Payday Loans are regulated in Indiana under the Small Loans Act $605 maximum; 14 day minimum No multiple loans if the total exceeds $605 Limits on finance charges (e.g. $77.50 on a $605 loan); still very high APR Right to cancel on the next business day After four consecutive loans, lender must offer repayment plan Lender may not threaten or bring criminal prosecution if check is returned unpaid

B. Consumer Scams Scammers prey on vulnerable consumers with alarming frequency, most often by telephone or spam e mail Tactics used most often are: Promise of quick and easy money Threats (especially of criminal prosecution) Gaining access to people s account numbers, bank information, Social Security numbers, and other financial information

1. Get Rich Quick scams Promises of vast amounts of money, in exchange for an up front fee The fee is paid, and the victim gets nothing in return Worse, the scammer has often obtained the person s financial information, leaving the person vulnerable to further financial abuse Examples: Foreign officials promising great wealth in exchange for moving money out of the country Huge profits for minimal work (investment, work at home, business opportunities) Requests to update bank / financial information ( phishing )

2. Family Emergency scams Scammer claims to be a relative (or friend) Call or message says they need emergency money, e.g. Hospital bill Getting out of jail or legal trouble Needing to leave a foreign country Sometimes accompanied by a third person claiming to be law enforcement, an attorney, or a medical professional Victim is asked to wire money immediately, and may be asked not to go to law enforcement or other family members the victim not to call police or contact other family members.

3. Tax scams Calls, emails, or texts, supposedly from the IRS, saying you have been audited, demanding money, or threatening prosecution IRS does not initiate contact by email, phone or text; contact is done by mail The IRS does not threaten to incarcerate people Calls, texts or emails saying you are entitled to a refund Requesting a processing fee Asking for personal / financial / account information Identity thieves who get someone s personal information and use it to get tax refunds

C. Identity Theft How People Find out about ID Theft IRS Receive a bill that is not theirs Fraudulent use of the person s credit card Credit report Denied credit or loan Denied employment Arrest Remedies include: Credit Freeze ID Theft Court Order (Establishes the person as a victim of ID theft) Legal Protections for victims of ID theft (e.g. denial of credit, utility service) Prosecution (felony) against perpetrators Source: Indiana Attorney General, Identity Theft Unit

II. Your Money And You Indiana Legal Services assists a large number of low income clients who are overwhelmed by debt, usually brought on by circumstances beyond their control, such as loss of job or income injury, illness, or disability, divorce, domestic violence victims of fraud Libraries can help by providing information about agencies and organizations that can provide assistance or advice to persons in difficult financial circumstances

A. Small Claims Court Small claims Courts exist in every Indiana county, to handle claims in which the amount a person wishes to recover is $8,000 or less. Small Claims Court has speedier and less formal procedures than those in other types of civil cases Case is filed in the county (or in Marion County, the township) where the transaction or incident took place, or where a debt or obligation was incurred or was to be performed, or where the defendant (person sued) lives or works. Examples of Small Claims cases include property damage, contract or business disputes, defective products, landlord tenant disputes, unpaid debts, or minor accidents

B. Debt Collection By far the largest number of debt collection cases ILS gets are from people on the receiving end of collection.

1. Debt Collection Harassment Examples of Debt Collection that may give rise to legal claims include: Calls at inconvenient times or places Calling friends, family, neighbors, employers or others about a person s debt Threats of violence, obscene or profane language False statements about the collector s identity or about the debt Threats to arrest a person, or to seize property not authorized by law Threats to take actions which are not permitted by law Threats to take actions which the collector does not intend to take Attempting to collect fees or charges not authorized by law

2. Debt Collection Lawsuits Assistance or advice to persons who have been sued upon a debt include: Preserving the right to dispute the debt Protection of a person s income or property from garnishment or seizure Challenging a court judgment if the person was not properly notified of the lawsuit Challenging a lawsuit filed in the wrong county Bringing counterclaims against the party who filed suit Negotiating a reasonable settlement with the creditor

C. Bankruptcy Bankruptcy is a proceeding in federal court which provides both immediate protection from debt collection and long term debt relief Most consumer bankruptcies are either: Chapter 7, providing discharge (elimination) of most debts, or Chapter 13, which is a court supervised repayment plan in which the person repays some or all debts over 3 5 years Bankruptcy debtors may get to keep all their property, or may have to surrender some of it, depending on the value and type of property A person may receive a Chapter 7 discharge only once every eight years. (Different rules apply for Chapter 13).

Bankruptcy, Continued Whether to file bankruptcy involves a careful analysis of a person s assets, debts, income, expenses, and legal circumstances (e.g. lawsuits against the person) People can file bankruptcy without a lawyer, but this is not recommended

Part Two: Resources Where to Find Help Information that Libraries should have to direct consumers to the agencies or people who can help National State and Local Legal Services

I. National Resources National resources for consumer problems include National Consumer Law Center Federal Trade Commission Consumer Financial Protection Bureau National Association of Consumer Advocates Other services and organizations

A. National Consumer Law Center (NCLC) Since 1969, the nonprofit National Consumer Law Center (https://www.nclc.org) has used its expertise in consumer law and energy policy to work for consumer justice and economic security for low income and other disadvantaged people, including older adults, in the U.S.

NCLC Publications The NCLC has several valuable publications and online information to help persons struggling with financial difficulty. These are available at: https://www.nclc.org/for consumers/for consumers.html Guide to Surviving Debt great advice on how to deal with heavy debt loads Numerous consumer brochures, e.g. credit cards, credit reporting, utilities, payday loans, identity theft, bankruptcy Projects https://www.nclc.org/special projects/special projects.html e.g. Domestic Violence Survivors Student Loan Borrower Assistance Military Personnel Working Cars for Working Families Links to other legal resources and consumer information

B. Federal Trade Commission (FTC) The Federal Trade Commission (FTC) has numerous consumer education materials, dealing with identity theft, practical tips and resources on credit, jobs, and financial issues, and dealing with debt collection, debt relief services, credit repair, advance fee loans, and repossession. Go to www.ftc.gov/consumer, www.ftc.gov/moneymatters, and www.ftc.gov/idtheft for more information. The FTC is also a law enforcement agency which investigates and pursues complaints for unfair, deceptive and anti competitive practices, and shares its expertise with federal and state legislatures, and government agencies, and develops policy and research tools through hearings, workshops, and conferences

C. Consumer Financial Protection Bureau (CFBP) The CFPB serves to educate consumers against abusive practices, supervise lending institutions, to enforce consumer protection laws, and to gather and analyze information to better understand consumers, financial institutions, and markets. The CFPB has helpful information about money basics, debt collection, auto loans, bank accounts and services, mortgages, money transfers, credit reports and scores, student loans, and payday loans, and other topics. You can access this information at http://www.consumerfinance.gov/askcfpb/, or file a complaint if you have problems with financial products or services, at: http://www.consumerfinance.gov/complaint.

CFPB Toolkits for Consumer Organizations Your Money Your Goals: a set of financial empowerment materials for organizations that help people meet their financial goals by increasing their knowledge, skills, and resources. Behind on Bills: offers tools that can help you work through issues with people who are having a hard time making ends meet.

D. National Association of Consumer Advocates NACA NACA (http://www.consumeradvocates.org) is a nationwide membership organization of more than 1500 attorneys who represent consumers victimized by fraudulent, abusive, and predatory business practices.

E. Other National Resources AARP Consumer Reports, http://blog.aarp.org/tag/consumerreports Not for Profit Credit Counseling Agencies e.g. Cricket Debt Counseling, (866) 719 0400 www.cricketdebt.com Hummingbird (800) 645 4959 www.hbcce.org Money Management, Inc. (877) 918 2227 www.moneymanagement.org AVOID For Profit Debt Settlement Agencies on the internet

II. State and Local Resources Indiana Attorney General Indiana Supreme Court Self Help Website NACA Indiana Other resources

A. Indiana Attorney General The Office of the Indiana Attorney General, Consumer Protection Division(IndianaConsumer.com) pursues complaints against companies and individuals for consumer frauds and scams, and has helpful information and services for consumers.

1. Consumer Complaints Individuals who have complaints arising out of a purchase or other consumer transaction can file a complaint with the Attorney General s office, at https://www.in.gov/attorneygeneral/2434.htm The A.G. files complaints on behalf of the state. The A.G. may refer the consumer to other agencies if The only purpose of the complaint is to recover money or property for the individual, or Another federal, state or local agency has more expertise to handle the problem

2. Identity Theft Unit The Identity Theft Unit (https://www.in.gov/attorneygeneral/2853.htm) provides investigative services to help in the prosecution of identity thieves, and has educational resources to help people protect themselves from this crime. Services include Information and assistance for credit freezes, protected person security freezes (for children and disabled adults), and fraud alerts Videos and self help toolkits Prosecution of complaints against identity thieves

3. Other consumer assistance Do Not Call List Licensing of, and complaints against medical and other professionals Information and assistance regarding charities, nonprofits, credit services / foreclosure prevention organizations Numerous consumer fact sheets (finances, purchases, telephone and internet fraud, business scams) Links to other agencies (e.g. FTC)

B. Indiana Supreme Court Self Service Legal Center The Self Service Legal Center (https://www.in.gov/judiciary/selfservice/2390.htm) has information to help persons help themselves, such as court forms and instructions (including documents in Spanish) The website also has information on how to find an attorney, on mediation (with a list of certified mediators), and on preparing for court, and links to legal materials, Indiana and U.S. courts, and to other self service sites. Court forms include Small Claims, protection orders, expungement, and family and general civil law The website cautions that these forms aren t intended to be a substitute for an attorney, and recommends people contact an attorney wherever possible.

C. NACA Indiana You can find Indiana licensed members of the National Association of Consumer Advocates by going to http://www.consumeradvocates.org/find an attorney and searching Indiana

D. Other Resources Indiana Areas on Aging (Regional offices in 15 locations in Indiana); https://www.in.gov/fssa/da/3478.htm Local Bar Associations see comprehensive list of county bar association presidents, provided by the Indiana Bar Association, at http://www.inbar.org/?page=local_bars Apprisen Credit Counseling (Indianapolis) https://www.apprisen.com Better Business Bureau (https://www.bbb.org/indy) complaints and reviews Angie s List, consumer reviews https://www.angieslist.com

III. Legal Services Resources State, Regional and Local organizations which provide legal assistance to low income residents, including: Indiana Legal Services, Inc. Other Legal Aid Organizations Pro Bono (Volunteer) Organizations Law School Legal Clinics

A. Indiana Legal Services, Inc. Indiana Legal Services: http://indianalegalservices.org: Statewide organization which provides legal representation and assistance to low income and senior Hoosiers ILS has branch offices located in Indianapolis, Merrillville, South Bend, Fort Wayne, Lafayette, Bloomington, Evansville and New Albany, covering all 92 counties Satellite offices in Yorktown, Columbus

ILS Special Projects Consumer Law Center (statewide) Consumer Advocacy Project (Indianapolis area) Senior Law Project LAVA Project (Legal Assistance for Victimized Adults) Low Income Tax Clinic Housing Law Center Community and Economic Development Project Homeless Project Immigrants and Language Rights Center Migrant Farmworker Law Center Family Justice Center (South Bend / St. Joseph County)

B. Other Legal Aid Organizations Neighborhood Christian Legal Clinic (Indianapolis and Ft. Wayne), https://www.nclegalclinic.org Legal Aid Societies Indianapolis Legal Aid Society http://www.indylas.org Legal Aid Society (Evansville Vanderburgh County) http://www.evansvillegov.org Elkhart Legal Aid Services Legal Aid Corp. of Tippecanoe County, Lafayette http://tclegalaid.org Indianapolis Bar Association (legal and bankruptcy help lines)

C. Pro Bono (Volunteer) Attorneys The Coalition for Court Access coordinates Indiana Supreme Court programs designed to provide civil legal aid to those with limited financial resources, including pro bono referrals There are 12 Pro Bono Districts throughout Indiana which refer lowincome individuals with civil legal needs to volunteer attorneys. http://www.in.gov/judiciary/selfservice/files/selfservice probonodistrict contact info.pdf Locations include Hobart, South Bend, Fort Wayne, Lafayette (2 districts), New Castle, Indianapolis, Bloomington, Columbus, Lawrenceburg, Evansville and Jeffersonville The 12 Districts cover all 92 counties in Indiana

D. Law School Legal Clinics Indiana s four Law Schools have legal clinics which provide certain kinds of legal assistance. This may include assistance by law students under the supervision of faculty or licensed attorneys. Indiana University Robert H. McKinney School of Law, Indianapolis (accepts certain civil cases by referral from Indiana Legal Services, Inc.) Indiana University Mauer School of Law, Bloomington Student Legal Services Notre Dame Law School Economic Justice Clinic Valparaiso University Law Clinic

IV. Other Resources I prepared this list of resources from my own materials and from others throughout Indiana Legal Services It is, of course, a work in progress! I would welcome your input, if you re aware of other resources and links Indiana Libraries might have to assist Indiana consumers! Today, or later at john.brengle@ilsi.net Thank You!

This year s NEW conference app is downloadable in both the Apple and Google app stores. Just search for ILF Conference. Post your conference pics to Twitter straight from the app! Use #INlibraries17 or post to @ilfonline Please remember to turn in your LEU and Conference Evaluation forms at the Registration Desk before you head home.