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BLAW_Unit_3_Study_Guide - All Highlighted Below is...

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All Highlighted Below is Important (New Stuff) Everything at the Very Bottom is Important (Old Stuff) Unit 3 Chapter 11 Creditors and Debtors I. Credit Cards and ATM Cards a. Liability for lost cards i. Credit cards- congress passed consumer law protecting us, which limited the liability of a lost credit card to $50. 1. Could be less if you notify your bank prior to fraudulent charges 2. If the bank doesn’t believe that you truly lost the card, you will be liable for more. The losing of the card must be in good faith. 3. If you didn’t actually lose it, you are more liable – be ready to argue! ii. ATM Cards 1. Of no value without PIN 2. Don’t write it on the card! You will be liable! 3. Liability is limitless iii. Debit Cards are the same liability as ATM Cards 1. Liability is limitless iv. Hybrid cards (debit/ATM cards) 1. It is dependent upon the use of the card that determines how liability will be determined. v. Bank Marketing Tools 1. Sometimes banks will have limits to lure customers. But this is not a required norm. For test purposes, the federal limit on credit cards is $50 and limitless for ATM/Debit cards. b. Errors in billing i. Credit card companies cannot accrue interest on the disputed billings ii. All it takes is one phone call to the company, and a written document may need to be filed thereafter. iii. In Credit Cards , there is a provision about disputes. (stop payments) 1. Quality of goods or services a. To qualify the service or good must have taken place in the home state or within 100 miles of the cardholder’s home address. b. The credit card company will investigate the matter. II. Collection by creditors a. Mechanic’s Lien: (basically collateral) i. In almost every state, circumstances where the creditor has the right to seize property if they are not paid. Mechanic’s Lein has to do with services done on personal property.
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ii. If you do not pay for services on your car, the mechanic can seize/repossess your car to obtain payment iii. DO not have to maintain possession of the object. 1. They are able to go into your driveway and take your car, but they cannot “break the peace” b. Garnishment: i. Garnishment of wages: once papers have been filed, a certain % of your wages will be withheld and paid to the creditor to pay off the debts. ii. Statutory maximum: 25%, some states differ though c. Artisan’s Lien: for personal property, they must maintain possession throughout. (They cannot go into your house and take your TV, it must be in their possession to qualify for the ability to take possession of it.) d. Mortgages/Self Help Doctrine i. Mortgages are a type of lien. ii. Self Help: under laws of state, the creditor can repossess property through court process or by going to get it himself, or by hiring someone to get it
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