LAFLA: Consumer Law

Immediate Help

The Consumer Law unit can provide legal assistance to consumers with problems such as:

Bank account levies
Banking practices
Creditor harassment
Debt collection harassment
Equity Loans
Loans or installment purchase agreements
Unfair sales practices
Vehicle Repossession
Wage garnishment

If you need to speak with someone, call the Consumer line at (323) 801-7989 ext #5250 or contact us.

To be eligible for LAFLA services, you must meet certain income requirements. You must also meet certain citizenship and immigration requirements.

Los Angeles Homeowners’ Rights Project
Our Los Angeles Homeowners’ Rights Project can help you if you have a problem with:

Bail bond lien
Faulty home improvement work performed
Foreclosure
Home equity loan
Home improvement loan
Mechanics or other types of liens against your home
Transaction involving your home

Consumer Complaint
If you would like to file a complaint about a business that has treated you in an illegal, unfair, or deceptive manner, contact the LA County Department of Consumer Affairs at (213) 974-1452.

If you have a complaint about auto repairs, you should contact the California Bureau of Automotive Repairs at (800) 952-5210.

If you have a complaint related to the repossession of an automobile, you should call the California Bureau of Security and Investigative Services at (800) 952-5210.

If you have a complaint about the repair of a major home appliance or electrical equipment, call the California Bureau of Electronic and Appliance Repair at (800) 952-5210.

If you have a complaint against an electrician, plumber, painter, roofer, or other home improvement contractor, call the Contractors State license Board at (800) 321-2752.

If you have a complaint against an insurance company, an insurance agent, and insurance broker, or a title insurance company, call the California Department of Insurance at (800) 927-4357.

If you have a complaint about mail order or postal fraud, call the U.S. Postal Inspector at (800) 275-8777.

If you have a complaint about telemarketing fraud, call the California Attorney General at (800) 952-5225.

Auto Vehicle Repossession
This information concerns vehicle purchases financed by the dealer, or loans the dealer has arranged. If you arranged your own financing through your bank or credit union, different rules will apply.

Your vehicle can be repossessed when you are late with your payments or have failed to obtain insurance coverage. If you are behind on your loan payments, the lender does not have to tell you in advance that they intend to repossess your vehicle. Whoever takes your vehicle, however, cannot use unlawful means such as abusive language, physical violence, threats, or breaking into a locked garage. If this conduct occurs you should immediately report it to a law enforcement agency or the Bureau of Security and Investigative Services at (800) 952-5210.

If the motor vehicle is repossessed, you have the right to reinstate the contract and get the vehicle back by paying all past due amounts, late charges, and repossession costs and fees.

You do not have the right to get the vehicle back if you:

Falsified your credit application
Tried to avoid repossession by hiding the vehicle or taking it out of state
Used the vehicle in commission of a crime
Acted violently against the seller of the vehicle
Caused damage to the vehicle which reduced its value

If you are unable to pay the overdue payments, costs, and fees, the vehicle will be sold. Within 60 days after the repossession and at least 15 days before the repossessed vehicle is sold the lender must give you written notice informing you of the following:

Date, time, and place of the intended sale
Your right to redeem the vehicle and to reinstate the contract or the reasons why you have lost those rights
Your right to request a 10-day extension

Within 48 hours, the repossessor must give you written notice which contains an inventory of personal items and inform you how to get them back. A storage fee can be charged before giving back your personal belongings.

The repossessed vehicles are sold at auctions. You have the right to bid on the vehicle. If the amount the seller gets is less than you owe, the seller can sue you and receive a deficiency judgment. If a lender has not followed the correct repossession procedures, by providing proper notices and conducting a commercially reasonable sale, they are not entitled to a deficiency judgment.

Used Car Sales
In general, a used car dealer must give you a document entitled "Buyer's Guide" which should be posted on the vehicle and will let you know if you are buying the car "As Is" or with a warranty. If you are purchasing a warranty or service contract, the Buyer's Guide must tell you which repairs the dealer will make under the contract.

f you took out a loan to purchase a vehicle, the contract must give you certain information such as the interest rate, the finance charges, the monthly payments, and the total sales contract. If information is missing or the amounts do not add up properly, you may be able to cancel the sale.

California law does NOT provide for a three-day cooling off period to cancel the sale of a used car. If the dealer has arranged financing for you, but you have complaints about the car or the dealer, you are still responsible for making all your payments to the finance company until the dealer agrees, IN WRITING, to refund all the money paid to the dealer by the financing company for the purchase of your car.

Bankruptcy
The right to file bankruptcy is an important tool for people with debt problems. In the short term, bankruptcy can prevent efforts by creditors to continue to collect debts. In the long term, bankruptcy can completely eliminate your debts so that you can get a fresh financial start.

Filing for bankruptcy is often the "last resort" for people in financial trouble who feel they must choose between repaying their creditors or buying the necessities of life, such as food, clothing, and shelter.

The decision to file for bankruptcy is a personal one that should be made only after you have carefully reviewed your entire financial situation and have fully explored all other options. An experienced bankruptcy specialist or financial advisor can help you to decide whether bankruptcy is right for you. Paralegal or notary services that offer to file a bankruptcy for you merely to delay your creditors should be avoided.

Credit Reports
To obtain a copy of your credit report, you may call or write to one of the major credit, reporting agencies, Experian, TransUnion, or Equifax. Each agency charges for a copy of your report. However, if you have recently been denied credit for any reason, the agency that supplied information to the potential creditor must supply you with a free copy of your report.

Write to Equifax at
PO Box 105851
Atlanta, GA 30347
Tel: (800) 685-1111

Write to Experian (formerly known as TRW) at
PO Box 2002
Allen, TX 75013-2002

Write to TransUnion at
2 Baldwin Plaace
PO BOX 1000
Chester, PA 19022

The credit reporting agency will request your full name, address, previous addresses, social security number, date of birth, and your spouse's name. The agency may also request a copy of your driver's license. To protect your privacy, you should request a copy of your report in writing.

Credit Report Errors
Once you have obtained a copy of your credit report, you may have errors or other information that you need to investigate. Your credit report may have information on how to dispute or correct errors. In general, you may take the following steps to clean up your credit report:

Take a photocopy of the report, highlight the errors, and send the copy to the company with a letter of explanation
If you have not received a corrected copy of your report within 30 days, the errors should be dropped from your record
However, if a creditor responds within a reasonable time after the 30 days stating that the information is correct, the credit reporting agency can add the information to your report once again
Should this happen, the credit reporting agency will notify you of this action in writing and send you a new copy of your corrected report

Inquiries stay on a report for two and half years. Delinquencies, garnishments, repossessions, court orders, eviction for nonpayment, and missed child support stay on for seven years. Chapter 13 bankruptcy stays on your credit report for seven years. If something is on there for longer than that time, send a highlighted copy and a letter requesting the company to update your account. Check on it in 30 days.

Creditor Harassment
Collection Agencies and Creditors cannot:

Call or contact you between 9:00 p.m. and 8:00 a.m. or any time they know is inconvenient, without your permission
Threaten or use physical force or violence or any criminal means to cause harm to you, your reputation, or your property
Call or contact you after you have, in writing, refused to pay or requested that they do not contact you
Use obscene language or harass you

Wage Garnishment
Wage garnishment is one of the methods a creditor may use to enforce a court judgment against you. The law allows a maximum of 25 percent of your wages to be garnished. If your employer has received an "earning withholding order," you can file a "claim of exemption" which must be filed with the sheriff's office within 10 days after your employer received and earnings withholding order.

If you need to file a "claim of exemption" you should immediately visit the sheriff's office at the address indicated on the top right hand corner of the earnings withholding order and ask for copies of the forms you will need to file your "claim of exemption."