You have rights when borrowing money to buy a new or used car or truck. Two federal agencies, The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), have information to help you make smart moves when using loans to pay for new or used cars or trucks.
https://www.consumerfinance.gov/consumer-tools/auto-loans/
https://consumer.ftc.gov/shopping-and-donating/buying-and-owning-car
There are two kinds of car loans, Direct Lending and Dealership Financing.
Direct lending car loans come from a bank, finance company, or credit union. You will pay the amount loaned to you plus a finance charge. The finance charge is the interest on the loan.
The loan usually lasts somewhere from three to seven years. You may see this written in months, like 36 to 84 months.
See what kind of loans your bank offers. It may save you money over what a car lot offers.
You can shop around with other lenders for a better deal on a loan. Here are the advantages of a direct loan:
You apply for dealership financing through the dealer selling the car or truck you want to buy. Your loan with the dealer will say how much you agree to pay, the finance charge on the borrowed money, and how long the loan lasts.
The car dealership usually sells your car loan to a bank, finance company, or credit union. The company that buys your loan will service the account and take payments from you.
The advantages of dealership financing are:
If you get a loan, make sure you understand what you are agreeing to before signing any papers. You should know the following:
Yes. Shop around. It should be free to get a loan offer. You should get a few and compare the financing offers. Focus on more than just the monthly payment amount.
The Louisiana Motor Vehicle Sales Finance Act (La. R.S. 6:969.1) has rules for car and truck loans. It decides how high the interest can be on a loan. The most you can be asked to pay in interest is between 18% and 33%, depending on things like how old the car is. If you have good credit, your interest rate should be much less.
Find out more at La. R.S. 6:969.10.
Add the cost of the car loan on top of everything else you pay for every month, like your rent, mortgage, utilities, food, or other bills.
Example:
You have $1,500 to spend each month. After you pay your rent, utilities, food, and other debt payments, you have $150 left over. That means you cannot afford a $300 monthly car loan payment.
Owning a car has other monthly costs like gas, car insurance, and repairs. Insurance on a newer car is often higher than on an older one.
One rule of thumb: spend at most 10% of monthly take-home pay on a car loan payment and 20% monthly for total car expenses.
Here are more resources on figuring out what you can afford to pay for a car loan:
It’s a good idea to create a budget worksheet before starting the loan process: https://www.consumer.gov/sites/default/files/pdf-1020-make-budget-worksheet_form.pdf.
Most car loans are for 3 – 5 years. Creditors may offer longer-term loans, like 72 or 84 months, i.e., 6 or 7 years. Longer-term loans may also have higher rates (APR).
The more time you take to repay the loan, the more money the loan will cost you. Cars quickly lose value once you drive off the lot. Paying back money over a long time may mean you end up owing more money than the car is worth.
No, it is up to you. Add-on insurance is not required by law. It’s against the law for a lender to put credit insurance in your loan without your knowledge or permission. If you buy it, get a copy of the policy and keep it.
Be aware that buying insurance will increase the total cost of the loan to you since it will likely be financed in the loan. Consider the price and if it’s worth it.
Check your existing insurance policies to avoid duplicating benefits.
No. If you do, get all the details, including price, time of coverage, limits of coverage, and a copy of the policy.
Yes. You should try to get the best deal for yourself. By negotiating for better terms on your loan, you can reduce the amount of money you pay over time. For example:
If you do not like the loan terms, you can walk away.
If your credit history is limited or needs improvement, a co-signer with good or excellent credit could help lower your interest rate and may be required by the lender.
Some people have a parent, family member, or friend co-sign. Beware, the person who co-signs is legally saying that they are just as responsible as you are to repay the loan.
You both should think carefully about this decision. If you default on the loan, the co-signer will be sued like you since they are also responsible for the debt. This is true even if the co-signer does not use the vehicle.
Federal law generally prohibits a lender from requiring you to have a co-signer if you apply for a loan individually, and you can qualify under the lender's standards for creditworthiness for the loan.
No. In Louisiana, once the parties have agreed to the sales contract, it can be valid.
You can contact the local Better Business Bureau in your area to see if they can resolve your issues. In the Greater New Orleans area, their number is 504-581-6222.
For a new vehicle sale, you should contact the vehicle manufacturer.
See our other blog post about used car warranties here.
If it is a used vehicle, the Louisiana Used Motor Vehicle Commission “LUMVC” may be able to offer assistance. Call the office at 800-256-2977 or fill out a complaint form at: https://lumvc.louisiana.gov/wp-content/uploads/2019/02/Consumer-Complaint-Process.pdf.
You can’t stop making payments on the loan if there are problems with the vehicle. Payments are due until the loan is canceled.
A court can take money from your paycheck if you are working or order money to come out of your bank account or other money you have. This is called garnishment.
Garnishment can happen if someone sues you for money and you lose in court. If you are sued for a debt, take steps to protect yourself!
You will almost always lose if you do not reply to the case in court. If you lose the case in court, there will be a judgment against you. The winner can file papers to ask the court to “garnish” your money. They will look at your money situation and decide how much money to make you pay.
The Garnishment Judgment will order your job or bank to take money from your paycheck or bank account. The money collected this way will be more than you owe.
Louisiana law says how much of your money goes to pay the debt.
The amount depends on how much is left over in your pay after what your employer must take out for federal and state taxes, Medicare, Social Security, health insurance, and retirement.
Sometimes your employer takes money from your check for things not required by law, like optional insurance. That money is not safe from a court order taking it to pay a debt.
You earn $450 a week. If your employer takes out $120 for taxes and another $20 for optional dental insurance. ($450 - $120 = $310)
That leaves you with $310 each week. The law does not require dental insurance, so the $20 a week is not protected from garnishment. Only $330 is protected.
Then the court will look at the amount of money leftover in your pay in two ways and use the one that takes less from your paycheck.
The court must pick the smaller number after looking at the two examples above. In our example, it garnishes $82.50.
The court uses a different number for unpaid child support! The court picks half instead of a quarter of the money left after things like taxes.
Here is a link to a tool to help you figure out your garnishment amount: https://goodcalculators.com/wage-garnishment-calculator/
Most creditors cannot garnish any federal benefits, like Social Security. Only the federal government can take money out of a federal check to pay back a debt.
For more info: https://www.consumerfinance.gov/ask-cfpb/can-a-debt-collector-garnish-my-federal-benefits-en-1441/
Garnishment is different for student loans, taxes, and other things.
If you have unpaid federal student loans, the U.S. Department of Education or anyone collecting for it can only take up to 15% of your earnings after money is taken out for taxes and other things required by law. 20 U.S.C. § 1095a(a)(1).
If you have unpaid taxes, the Internal Revenue Service (IRS) can take money out of your paycheck without suing in court first. They do this by something called a “levy."
This amount of garnishment is based on your tax filings.
See here for more info: https://www.irs.gov/businesses/small-businesses-self-employed/information-about-wage-levies
There are ways that state and local government agencies can collect what you owe. Contact the agency that you owe to find out more.
The amount of the Garnishment Judgment will include the amount you owed, plus court costs, interest, and usually attorney fees from when the court made its Judgment against you.
You will also be charged:
These extra costs can be double or triple the amount of money you owed at the beginning.
The garnishment will continue until all the money owed has been paid. This can take years.
Garnishment will temporarily stop if you are no longer working for an employer. Once the person or company you owe (the creditor) finds out you are working again, they can start the garnishment again.
A bankruptcy filing will stop all garnishments right away. Bankruptcy may be able to get rid of the whole debt. Learn about bankruptcies here: https://www.uscourts.gov/services-forms/bankruptcy
Other resources can be found here:
https://www.dol.gov/general/topic/wages/garnishments
https://www.consumerfinance.gov/ask-cfpb/what-is-a-garnishment-en-1385/
For information on Louisiana State garnishments: https://revenue.louisiana.gov/Faq/Details/1293
If you own your home and are 62 or older, a reverse mortgage loan could help you with significant bills, renovation costs, and other living expenses.
If you are interested in one, please take your time to review and fully understand it. This may not work for everyone. You should also discuss this decision with your family and your heirs, usually your children.
Yes, it differs from other mortgages, but it is also similar. Like other mortgages, it allows homeowners to borrow money using their home as security for the loan. The title stays in your name, but your property will have a loan against it.
Like other mortgages, you could lose the home to foreclosure if you fail to pay for required items such as property taxes and insurance (homeowners or flood).
But unlike other mortgages, you do not make monthly mortgage payments to the lender. The loan gets repaid when you no longer live in the home, usually after your death or sooner, if you sell the property. If one spouse dies, the repayment usually occurs after the second spouse dies. But certain papers may have to be completed promptly when the first spouse dies.
Because interest and fees are charged to the loan each month, the amount owed on the home grows over time. As the amount you owe grows, the amount of equity (what you can get by selling the house) goes down. This is unlike most mortgages, where the amount owed goes down because you pay each month.
A reverse mortgage loan is NOT free money. It is a loan on your house. If you want to fully own the house, you will have to pay back the entire loan amount, including the interest that has been charged.
If your heirs want the house, they will have to pay off all that is owed, including the interest charged over time. Most reverse mortgages give them a year to pay the amount.
NOTE: Most of this information only applies to Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage loans.
In addition to being at least 62 years old, there are a few other requirements:
Only one spouse needs to be 62 years old to qualify.
Before taking out a reverse mortgage, make sure you understand this type of loan. You may want to look at other borrowing and housing options, such as:
Other resources can be found here:
https://www.consumerfinance.gov/consumer-tools/reverse-mortgages/
https://www.aarp.org/money/credit-loans-debt/reverse_mortgages/
You should check your bank statements carefully every month. Contact your bank or credit union right away if you see a problem. A problem could be money taken out without your permission or purchases you did not make.
Do not wait. Contact the fraud department of your bank or credit union right away. If you wait too long, you might be stuck with the bad charge.
You may have more rights to challenge the problem if you tell the bank or credit union within 60 days after the statement that shows the problem. If you report it later, you still may be able to get a charge removed unless your bank has a reason why notice within 60 days would have made a difference.
Your bank or credit union must look into the issue within ten business days after you tell them about the problem. They have 20 days to look into it if your account has been open for less than 30 days.
If they find a mistake, they one business day after that to fix the error. They have 3 business days after that to contact you and report their findings. If they on time, they must give you a temporary credit.
This temporary credit is for the amount of the bad charge, minus no more than $50. It stays there while the bank or credit union looks into the problem.
The bank or credit union doesn’t always have to issue a temporary credit. If you alert the bank or credit union by phone, they can make you send this information in writing. If they say to report it in writing and you don’t send the information within 10 business days, they don’t have to give you the temporary credit.
The bank or credit union has at least 45 days to resolve the problem. They get up to 90 days if the money changed hands in a foreign country, if the problem happened within 30 days of opening the account, or if the problem deals with a debit card purchase.
The bank or credit union may find that the transaction was correct. They must tell you in writing that they are taking back the money credited to your while they looked into it.
Yes, it is a good idea to contact the store and dispute the purchase.
Tell your bank or credit union right away or at least within two business days of finding out about the loss or theft. If you meet the deadline, they cannot charge you for more than $50 that gets charged after the card was stolen or lost. If you miss the deadline, you could be responsible for up to $500 of the charges.
You cannot be charged for any of the charges if you report your card as lost or stolen before it is used by someone else.
Never write your PIN on your debit card. Do not keep the PIN in your wallet. This can help protect you if your card or wallet is lost or stolen. Use a PIN that only you can remember and no one else would know.
Most credit card companies will not make you responsible for any charges after loss or theft.
Contact your bank or credit union as soon as you can and contact the merchant to cancel the service. Tell them that you are taking back authorization for these charges.
Include information to help the bank identify the charges. Tell them the name of the merchant, your account number with the merchant, and the amount(s) and date(s) of the charge(s).
You can also ask your bank to place a stop payment on a pre-authorized transaction at least 3 business days before the next payment is scheduled to be made. They may charge a fee. You should ask for the stop payment in person at the bank or in writing.
You can file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB is a federal government consumer protection agency.
More info is here: https://www.consumerfinance.gov/complaint/process/
If your bank is licensed in Louisiana, you can also file a complaint with the state here: http://www.ofi.state.la.us/complaints.htm
Other resources: https://www.helpwithmybank.gov/help-topics/bank-accounts/index-bank-accounts.html
New rules can help people cancel federal student loans in bankruptcy. The law calls this getting a debt “discharged.” The U.S. Department of Justice and the U.S. Department of Education will help with the new rules. This applies to bankruptcy cases filed after November 17, 2022. Bankruptcy is complicated. Get a lawyer to help you if you can. You may qualify for free legal help from Southeast Louisiana Legal Services.
The law makes it hard to discharge federal student loans in bankruptcy court. A person must prove that repaying the loans creates “undue hardship.” It is hard to prove “undue hardship.”
The Justice Department will help United States Bankruptcy Courts find cases where federal student loans should be discharged.
There are multiple kinds of bankruptcy cases. You must file for bankruptcy under Chapter 7 or Chapter 13. For more about bankruptcy, see our other post on “Bankruptcy Basics.”
Find a lawyer to help you if you don’t know if you should file for bankruptcy or what kind of bankruptcy case to file. It is always best to have a lawyer if you can.
In the bankruptcy case, you or your attorney have to file for an “Adversary Proceeding” to have the bankruptcy court consider canceling your federal student loan.
The Justice Department will ask the person filing for bankruptcy (the “debtor”) to complete a form. Your answers will help the Justice Department review your federal student loan discharge claim.
The form will ask about the money situation for you and your household. Most of your income and expense information is probably already in the bankruptcy court papers.
The Justice Department and the Department of Education will review your federal student loan claims and money situation and use the “undue hardship” test mentioned above.
The government will decide whether to ask the court to discharge your student loans. Even if your situation does not seem to meet the test, the government can still ask the court to discharge the loans.
Not if you use bankruptcy court. There are no additional court costs once you have filed in U.S. Bankruptcy Court.
The new rules cover Direct Loans and other loans held by the U.S. Department of Education.
So far, the new rules do not apply to Federal Family Education Loans (FFEL) held by guarantors or to Perkins Loans still held by the school.
The new rules do NOT apply to any private student loans.
Pay attention to the news. The Department of Education may change rules for FFEL and Perkins loans. Or you can get an attorney to help you review your student loans and determine if a Chapter 7 bankruptcy is right for you.
The United States Supreme Court states that Bankruptcy is meant to provide "a new opportunity in life, unhampered by the pressure and discouragement of pre-existing debt." It is intended to give people a fresh financial start. It allows them to free themselves of current debt and to start new productive lives unhampered by past financial problems.
Filing bankruptcy cannot cure every financial problem and is not appropriate for every individual. But it may make it possible for financially distressed families to obtain relief from debt.
Individuals can either file Chapter 7 or Chapter 13
A Bankruptcy may end your having to pay much or all of your debt. This is called “discharging” the debt. You are no longer legally obligated to pay debts when they are discharged.
It may stop foreclosure proceedings on a home and allow you to catch up on payments.
It may force a creditor to accept less payment on a secured debt when the creditor has demanded payment in full.
It will immediately stop any garnishment of your wages and debt collection harassment.
It will immediately stop all current legal proceedings about whether you owe money, such as lawsuits.
A Bankruptcy might not allow you to keep things you have that are pledged in a note (such as your home for a house note or car for your car note).
It will not allow you to get out of debts owed to some government agencies, like child support, alimony, most student loans, criminal fines, and most taxes.
It will not protect co-signors when only the person who made the loan files for bankruptcy. Your co-signor still owes the full amount.
It will not end any debts obtained through fraud or intentionally injuring someone.
Under current bankruptcy law, the debtor's "current monthly income" will determine if they can file under Chapter 7 or must file under Chapter 13. This is known as the “means test.” Each state has a table used to decide this. In Louisiana, for a household of 2, the yearly income limit to file a Chapter 7 is $61,042. So, if your gross income is below this amount, you can file a Chapter 7.
But as noted above, how much you own in secured assets and other issues can also make you need a Chapter 13.
Did Road Home sue you?
Was the suit about an Elevation Grant?
Is the suit still active, or do you still owe money?
If the State of Louisiana, Office of Community Development (OCD) sued you after getting up to $30,000 from Road Home to elevate your home, there is important news.
On February 16, 2023, the State, OCD, and federal agency (HUD) announced that all lawsuits to return these funds would be dropped. Soon you or your attorney should be notified by OCD about this news.
The State will stop all collection on these Road Home grants. If a lien was placed on your property because of the suit, the State will release and remove it.
You will not get back any money you already paid. But if you are on a monthly repayment plan, you can stop making payments now.
You can learn more:
https://www.hud.gov/press/press_releases_media_advisories/hud_no_23_036
You have rights when you buy a used car, truck, or other vehicle. The text below uses the word used “car,” but many of your rights apply to purchasing used trucks or other vehicles.
Know your rights when buying from a dealer or a private person. Some rules apply only to dealers.
Take steps to protect yourself and do your homework before you buy! Test, inspect and check the history of the car.
Get the Vehicle Identification Number (VIN) for the used car you want to buy.
Keep the VIN in a safe place.
You can use the VIN to find out about the used car you want to buy.
Take the car on a test drive. Drive the car on hills, highways, and in stop-and-go traffic.
Examine the used car you want to buy. Use an inspection checklist when going over a used car inside and out.
You can find used car inspection checklists in magazines, books, and trustworthy websites dealing with used cars.
You might want to hire a mechanic to inspect the car. You will need to pay to have a mechanic inspect the used car.
Get the car’s maintenance and repair records. You can ask for maintenance or repair records from the owner, the dealer, or the repair shop.
Check out reviews of the car’s history. Use only reliable websites or trustworthy databases.
Below is a government website that can tell you more about the used car you want to buy and the legal title for the car.
The federal government uses a “recall” to tell the public about car safety problems.
Find out before you buy if there is a recall on the car you want. You can use the VIN to find out if the car has a recall.
You can ask the dealer if the car has a recall. If there is a recall on the used car you want, you can find out if it was fixed. Do not rely on what the dealer says; use the car’s VIN to check for recalls yourself.
Enter the VIN on this website: https://www.nhtsa.gov/recalls. You can also call the National Highway Traffic Safety Administration’s (NHTSA) Vehicle Safety Hotline at 1-888-327-4236.
If there is a recall, ask the dealer to fix it or give you proof that the safety problem covered by the recall was fixed. Federal law does not require dealers to fix recalls on used cars. That means you might need to fix the recall issue yourself.
If you buy the car, fix a problem listed in a recall immediately. The National Highway Traffic Safety Administration (NHTSA) warns that all safety recalls pose safety risks. Unfixed recall issues might cause accidents.
Usually, a dealership that sells new cars for the make or brand you want to buy will fix a recall issue for free. This is another thing to check before you buy.
Before you buy or put money down, find out what the car is worth. Only talk about the price once you have an idea of a fair price for that car.
There are free websites with pricing information for used cars. Here are some examples of sites with used car prices:
The cost of owning a used car includes repairs and regular maintenance. Use trustworthy websites to find out how reliable the make and model of the used car might be.
Some sites can tell you what repair problems happen with the type of car you want.
You can use the VIN to get this information and search online for companies that sell vehicle history reports. If the report isn’t recent or it seems that things are missing or untrue, the information may not be complete. You may want to get a second report from a different reporting company. Some dealer websites have links to free reports.
The Federal Trade Commission, or “FTC,” is a government agency with rules about car sales, including used car sales. One rule says dealers must post a Buyer’s Guide on every car for sale.
The Buyer’s Guide is important and must tell you these things:
When you buy a used car from a dealer, get the original Buyer’s Guide that was posted on the car. If you can’t get the original buyer’s guide, get a copy of the original Buyer’s Guide.
The Buyer’s Guide must tell you if there are any negotiated changes in warranty coverage. Negotiated means worked out between the buyer and seller. The Buyer’s Guide becomes part of your sales contract.
The Buyer’s Guide controls if there is a different term in the sales contract. Watch out for language about Warranties. If the Buyer’s Guide says the car comes with a warranty and the contract says the car is sold “as is,” the dealer must give you the warranty described in the Buyer’s Guide.
Louisiana law does not give buyers the same rights as they may have in another state.
For Example: In Louisiana, car dealers are not required to give used car buyers a three-day right to cancel. Before you buy from a dealer, ask about the dealer’s return policy. Get the return policy in writing. Read it carefully. You do not have any automatic right to cancel the sale at all.
You only have a right to return the car in a few days for a refund if the dealer gives you this right. Dealers may describe the right to cancel as a “cooling-off” period, a money-back guarantee, or a “no questions asked” return policy.
Ask about and read the dealer’s return policy before you put any money down or buy the car. Get the return policy in writing. Read it carefully.
In Louisiana, the sale is not “as is” unless the Buyer’s Guide says so. A dealer must check the box next to “As Is – No Warranty” on the Buyer’s Guide to sell a car “as is.”
What if the dealer says it will repair a car sold “As is – No Warranty”? Do not rely on what the dealer says. Get any promise about repairs to a car sold “as is” added in writing as part of the Buyer’s Guide. If you don’t get the dealer’s promise in writing in the Buyer’s Guide, forcing the dealer to keep its word can be tough.
If you have a written warranty that doesn’t cover your problems, you might be covered by an “implied warranty.”
When a dealer sells a car with a written warranty or service contract, implied warranties are included automatically. There are some exceptions to this rule listed below.
Louisiana law says that cars sold by dealers must meet reasonable quality standards. This is called an implied warranty. An implied warranty is an unspoken, unwritten promise from the seller to the buyer.
Warning: dealers can add terms to the sale to undo the implied warranty. Dealers can write a notice with the words “as is” or “with all faults” to undo the implied warranty.
There is no set time limit to act on an implied warranty. There is more than one kind of Implied Warranty.
The most common type of implied warranty is called a “warranty of merchantability.” This kind of warranty means the seller promises that the car will do what it’s supposed to do.
For example, a warranty that the car will run. The Warranty of Merchantability covers basic things a car is supposed to do but does not cover everything that could go wrong with the car. Breakdowns and other problems after you buy do not prove the seller violated the warranty of merchantability.
The buyer must show that the problem was already there at the time of the sale. A problem after the sale might not be because of a defect at the time of sale.
A ''warranty of fitness for a particular purpose” covers a sale based on the dealer’s advice that the car is fit for a particular use.
For Example, the dealer suggests you buy a specific car to haul a trailer. That means the dealer promises that the car can haul a trailer.
Any limit on an implied warranty’s time limit must be included in the written warranty.
Dealers may offer a full or limited warranty on all or some of a car’s systems or parts. Most used car warranties are limited. What a limited warranty covers varies.
A full (not limited) warranty includes the following terms and conditions:
If any of the things listed above are missing or excluded, the warranty is limited. A full or limited warranty doesn’t have to cover the entire car. The dealer may say that only certain things about the car are covered.
Some parts or systems may be covered by a full warranty. Other things about the car may have only a limited warranty. The dealer must check the appropriate box on the Buyers Guide to show if the warranty is full or limited. Look for this information in the Buyer’s Guide.
The dealer must include the following information in the “Warranty” section of the Buyer’s Guide:
You have the right to see a copy of the dealer’s warranty before you buy. Review the dealer’s warranty carefully to find out what is covered. Things to look for:
You can contact the local Better Business Bureau (BBB) in your area to see if they can help you solve the problem. In the Greater New Orleans area, the BBB number is 504-581-6222.
The Louisiana Used Motor Vehicle Commission “LUMVC” is responsible for licensing and regulating independent used car dealers. The LUMVC also investigates complaints about used motor vehicle sales, auctions, crushers, automotive dismantlers, rent with the option to purchase, daily rentals, and used parts and accessories.
The LUMVC only covers dealerships. The LUMVC does not cover sales between individuals.
You can call the office at 800-256-2977. Or you can fill out a complaint form found at: https://lumvc.louisiana.gov/wp-content/uploads/2019/02/Consumer-Complaint-Process.pdf.
The top of this form has information on where to send it to. Or you can file a LUMVC complaint online at: https://lumvc.louisiana.gov/complaint-form/.
Yes, you can sue. If you paid $5,000 or less for the car, you could sue the seller in Small Claims Court. For most parishes, Small Claims Court is in the Justice of the Peace Court.
For more information about Small Claims Court, check here: https://lasc.libguides.com/c.php?g=583267&p=4027476.
In Orleans Parish, Small Claims Court is in First Parish Court.
If you live in Algiers, Orleans Parish Small Claims Court is in Second Parish Court. Learn more here: https://www.orleanscivildistrictcourt.org/first-city-court-clerk
Learn more about buying a used car on this site from the State of Louisiana: https://lumvc.louisiana.gov/facts-for-consumers-about-buying-a-used-car/
Whether the law calls your mobile home moveable or immovable can affects your finances. This is because it can affect your ability to get loans and affects your property taxes. You may be able to switch the legal label for your mobile home from “moveable” to “immoveable, ” through something called an “Act of Immobilization.” Learn more about the Act of Immobilization document at this link: Act of Immobilization.
After recordation, the owner, or the owner’s agent, must file a certified copy with the Secretary of the Department of Public Safety and Corrections, who creates an Internet-accessible searchable database providing a public record.
You must also submit other required documents to the OMV. Find out more here on the site of the Louisiana OMV: Mobile Home Immobilization.
Louisiana classifies property as either immovable or movable.
Mobile homes are called movable property unless the mobile home is immobilized.
Immobilizing means the home is made a part of the land, both physically and legally. If made immovable, it is legally treated like land and other buildings on the land.
A mobile home is not immobilized if the land and the home are owned by different people. (If the mobile home is owned, but the land is leased, the mobile home is considered moveable under the law and is treated like cars and boats.)
A mobile home is not immobilized if it is not permanently attached to the land, it can usually be made an immovable property.
A mobile home is not immobilized unless an Act of Immobilization has been notarized and officially recorded.
If you do not know if an Affidavit of Immobilization has been done and filed you can search the parish land records, the Louisiana OMV database, and also.
The parish Clerk of Court’s office can tell you where to check for an “Act of Immobilization.” If you find an Act of Immobilization recorded with the conveyance or mortgage records, then your mobile home is labeled immovable unless there is also an “Act to De-Immobilize a Manufactured Home” there.
That should mean your mobile home is classified as moveable.
You can sign something called an Act of Immobilization to have your mobile home labeled as “immovable” under the law.
Warning: If you sign this you are swearing that the mobile home will remain permanently attached to the land listed in it.
If you want to move your immovable mobile home, you need to change it from immovable to moveable. There are steps you can take.
A major purchase may come with a warranty. The warranty may come from the seller or the manufacturer. A “warranty” is a promise to stand behind the thing sold to you. The law says that you must be allowed to read what the warranty says before you buy. The warranty law covers purchases in person, online, or with a catalog. Warranties might cover a lot or a little. Look into the details before you buy. You may be given the option to buy an extended warranty. An extended warranty would cover some repairs after the regular warranty expires. Buying an extended warranty is up to you.
Look up the company’s name on the Internet.
Try using words like “complaint” or “review.”
See what other people think of the company or product.
It depends. The warranty period could be days, months, or years.
Read over the fine print on the warranty to find out how long the warranty lasts.
If specific parts or repairs that are not listed in the warranty, you should assume they aren’t covered.
Some warranties make you pay for labor or to ship the product back for repairs.
This could be expensive for heavy items.
Again, read the warranty.
Do you need to send in a product registration card to get warranty service?
Some limited warranties require that.
Other warranties only cover problems that happen when you maintain or use the product according to the directions.
Many warranties won’t cover problems that happen if you misuse a product or change the way it works.
Federal law states that a manufacturer can’t make you use specific parts and services to keep warranty coverage, unless the warranty provides those parts and services for free, or if the company offering the warranty gets permission from the FTC to make that requirement.
You may have to contact the manufacturer for help or the seller.
The company could repair it, replace it, or refund the money you paid for it.
“Consequential damages” are damages the product causes.
Few warranties cover them, or the time and money you spend to repair such damage.
All the things listed above should be in the warranty document. Read the warranty before you buy. Keep a copy of both the warranty and your receipt of the purchase. If the purchase was online, remember to print a copy of the receipt. If any warranty is stated to you verbally by the seller, get it in writing.
Almost everything you buy is covered by an implied warranty. This is so even if there is no written warranty. All states have implied warranties. Here are some common implied warranties:
Merchantability means that the seller promises that a product will do what it’s supposed to do.
For example, a car will run and a toaster will toast.
This warranty covers what happens when you buy a thing because the seller said it is fit for a particular use.
For example, a seller says a certain sleeping bag is good for zero-degree weather.
That means the seller is giving an implied warranty to buyers that the sleeping bag will is fit for use in zero-degree weather.
In Louisiana, the main implied warranty is called “redhibition.” Redhibition covers problems that come up with the product that make the thing so useless or inconvenient that you would not have purchased it or would have purchased it for a lower price. Even if your purchase doesn’t come with a written warranty, it’s still covered by implied warranties. Big exception: the implied warranty protects you unless the seller gives a written notice that there’s no warranty, or the product is marked "as is".
An extended warranty or a service contract is different from the initial warranty that may automatically come with a product. An extended warranty will cost extra. It may cover different issues than a warranty. It is sold separately. Before you buy an extended warranty or service contract, compare it to the warranty to see if you’ll get any extra benefits for the extra cost. You do not have to buy extended warranties.
Having a warranty doesn't mean you’ll automatically get a refund if a product is defective. The company may have a right to try to fix it before it gives you a refund. But if you report a defect to the company during the warranty period and the product isn’t fixed properly, the company must correct the problem, even if your warranty expires before the product is fixed.
If your letter or emails don’t resolve the issue, report problems with a company to the Federal Trade Commission at ReportFraud.ftc.gov
You can contact the local Better Business Bureau in your area to see if they can resolve your issues. In the Greater New Orleans area, their number is 504-581-6222.
Finally, you can speak to an attorney.
¿Qué es la "regla de los tres días"? ¿Qué cubre la regla de los tres días?
La regla de los tres días también se llama la "Regla de enfriamiento".
Esta regla cubre los contratos de venta realizados en persona en su hogar, trabajo u otros lugares inusuales.
La regla es proteger a las personas contra ser presionadas para una venta, contrato o trato.
Algunos de estos pueden involucrar a personas que van de puerta en puerta para tratar de que las personas compren cosas o servicios.
La regla se aplica a los siguientes contratos de venta:
Sin embargo, esta regla NO cubre la venta si fue:
¿Qué información debe decirte el vendedor?
En el momento de la venta, el vendedor tiene que informarle sobre su derecho a cancelar la venta.
El vendedor también debe darte:
o Nota: El contrato o recibo debe estar en el mismo idioma que se utilizó en la presentación de ventas.
¿Cuándo puedo cancelar el contrato?
Su derecho a cancelar para un reembolso completo dura hasta la medianoche del tercer día hábil después de la fecha en que se realizó la venta o firmó el contrato. El sábado se considera un día hábil, pero los domingos y los días festivos federales no lo son. Así que:
¿Necesito una razón para cancelar la venta?
No tiene que dar una razón para cancelar.
Tiene derecho a cambiar de opinión.
¿Cómo cancelo la venta?
¿Qué pasa después? ¿Qué tiene que hacer el vendedor después de la cancelación?
El vendedor tiene 10 días para
Dentro de los 20 días, el vendedor debe recoger los artículos que quedan con usted o reembolsarle los gastos de envío si acepta devolver los artículos.
Si el vendedor le dio algún artículo, debe ponerlo a disposición del vendedor en tan buenas condiciones como cuando lo obtuvo. Si no pones los artículos a disposición del vendedor, o si aceptas devolverlos, pero no lo haces, aún tienes que pagarle al vendedor.
¿Qué pasa si el vendedor no sigue las reglas?
Si usó una tarjeta de crédito, puede disputar los cargos de la tarjeta de crédito en función de la violación de la "regla de enfriamiento de la FTC". Vea nuestra publicación sobre esto aquí.
También puede reportar la violación a la FTC en ReportFraud.ftc.gov.
En algunos casos, es posible que pueda usar la violación como parte de una demanda.
Hable con la compañía de agua o energía si se retrasa en su factura.
No ignore las facturas impagas.
Las facturas impagas pueden llevar a cortes.
¿Qué pasa si no puedo pagar mi factura de Entergy?
Primero - póngase en contacto con Entergy.
Hay información en línea sobre la asistencia de pago de Entergy aquí/here.
También puede llamar a Entergy al 1-800-ENTERGY (1-800-368-3749)
Tienes algunas opciones de pago de Entergy:
¿Cómo solicito obtener dinero para ayudar a pagar estas facturas?
LIHEAP (el Programa de Asistencia de Energía para Hogares de Bajos Ingresos) tiene dinero federal para ayudar a las personas a pagar las facturas de energía y otros gastos relacionados con la energía.
Total Community Action (TCA) conecta a las personas con la ayuda de LIHEAP.
Para ver si califica para LIHEAP, llame a TCA.
(504) 324-8609.
También puede utilizar el sitio web de TCA aquí/ here.
¿Qué pasa si no puedo pagar mi factura de alcantarillado y agua?
Primero, comuníquese con la Junta de Alcantarillado y Agua (SWB).
SWB tiene información en línea sobre la ayuda con los pagos aquí.
También puede llamar a SWB.
(504) 529-2837
Vea si califica para el Programa de Ayuda de Agua / Asistencia de Plomería de la Junta de Alcantarillado y Agua.
El programa ayuda a los clientes ancianos, discapacitados y de bajos ingresos a pagar sus facturas de agua y hacer reparaciones menores de plomería.
Total Community Action (TCA) conecta a las personas con la ayuda de este programa.
Usted presenta su solicitud en persona en:
Acción comunitaria total
1424 South Jefferson Davis Parkway
Nueva Orleans, LA 70125
(504) 324-8609
Para obtener esto:
Traiga lo siguiente para aplicar:
Para obtener más información, puede llamar a TCA: (504) 324-8609.
Otras opciones para su factura SWB.
Pregúntele a la Junta de Alcantarillado y Agua sobre un plan de "Arreglo de pago".
Puede calificar para un plan de pago para ayudar a pagar su factura.
El plan le permitirá pagar lo que debe durante varios meses.
Otra ayuda para pagar las facturas de agua y electricidad.
La Ciudad de Nueva Orleans puede ayudar a los inquilinos cuyos ingresos cayeron debido al COVID. La Oficina de Política de Vivienda y Desarrollo Comunitario de Nueva Orleans dirige este programa de ayuda.
Hay algunos pasos para calificar.
Debe haber sido aprobado antes para este tipo de ayuda. Esa aprobación habría sido para el programa de Asistencia de Alquiler de Emergencia de Nueva Orleans ("ERA").
Debe tener facturas de servicios públicos vencidas. Esas facturas vencidas solo pueden remontarse hasta el 13 de marzo de 2020.
Verifique si califica. Vaya a esta página o aquí para solicitar en línea: https://nola.gov/community-development/utility-assistance-program/
Caridades Católicas de Nueva Orleans - Utility Aid
Llame al (504) 523-3755.
Sitio web: https://www.ccano.org/
Departamento de Servicios Humanos de la Ciudad de Nueva Orleans (anteriormente City Welfare)
Ayuntamiento de Nueva Orleans
Habitación 1W30
Nueva Orleans, LA 70112
(504) 658-3310
Consejo Parroquial de Orleans sobre el Envejecimiento (COA)
2475 Canal Street (4º piso)
Nueva Orleans, LA 70119
(504) 821-4121