The Law Office of Alan M. Roughton, PLLC
Washington, NC Divorce, Child Custody and Consumer Protection Law
CONSUMER PROTECTION FREQUENTLY ASKED QUESTIONS
1. What is fraud?
2. Why did my credit card rate increase?
3. When may my landlord refuse to give back my security deposit?
4. My landlord locked me out. What can I do?
5. What can I do when my landlord won't do necessary repairs?
6. I bought a car last week and now it does not run. What can I do?
7. I've been sued. What should I do?
8. Debt collectors keep calling me. Is there anything I can do about this?
9. A debt collector threatened me. Is that legal?
10. A debt collector called someone else about my debt. Is that legal?
11. My debts were discharged in bankruptcy but a debt collector is still calling about it. What can I do?
12. Does the statute of limitations provide me with a defense to a debt collection suit?
13. Should I contact one of the credit card debt consolidation companies that I see on television?
14. What is the Fair Debt Collection Practices Act?
15. What is the Fair Credit Reporting Act?
16. What is the Truth in Lending Act?
17. What are "unfair and deceptive acts and practices" (UDAP)?
18. Does North Carolina law provide me with additional protections?
19. Is The Law Office of Alan M. Roughton, PLLC a bankruptcy law firm?
20. How does The Law Office of Alan M. Roughton, PLLC get paid for handling my consumer protection case?
1. What is fraud?
Fraud happens when someone misrepresents or conceals material facts from a person who in turn relies on that misrepresentation and is harmed by it. Fraud is a common law concept used to negate the existence of a contract. This takes many forms. Odometer fraud takes place when someone rolls back the odometer on a car in order to sell it. Other kinds of automobile fraud take place when a seller lies or conceals the car's history about accidents and the like. Fraud can occur in almost any contractual situation, such as real estate, mortgage lending, etc. Often, there are specific statutory definitions that may apply to your situation. Furthermore, various federal and state statutes apply to most situations and you should discuss those with an attorney.
2. Why did my credit card rate increase?
Credit card companies are governed by state law, federal law, and the cardholder agreement between you and the issuer. Your interest rate, including any changes, will be determined in the legal context. Most credit card companies are in states without usury laws (such as Delaware) so their interest rates have no limit imposed by state law. The agreement will often provide a formula to determine your interest rate-usually the "prime rate" plus a certain percentage. The contract often places both a minimum and maximum rate. It will often provide the circumstances under which your rate will change. One cause is the end of an introductory rate period. Another is the trigger of a "default rate" after a missed payment.
It is important to read your cardholder agreement. While your credit card company may be in a state with no interest rate limit, if it increases the rate about what is permitted in your agreement you may have a claim for usury. North Carolina law provide strong protections for consumers who are the victim of usury and you should contact Alan M. Roughton to explore your options if you have been the victim of usury.
Federal law is changing and credit card companies will soon be more restricted in how they increase credit card rates.
3. When may my landlord refuse to give back my security deposit?
A residential landlord may only use a tenant's security deposit to satisfy unpaid rent or to repair the unit. The security deposit cannot be used to perform repairs caused by reasonable wear and tear. Otherwise, a landlord must either refund or provide an accounting for a security deposit within thirty (30) days of the end of the lease. If a landlord refuses to refund a security deposit when required, it can be recovered by filing a civil suit. If the landlord willfully refuses to refund the security deposit, a court can consider awarding reasonable attorney's fees to the tenant.
4. My landlord locked me out. What can I do?
Landlords are not permitted under North Carolina to lock out tenants because they have not paid rent-this is called "self help" eviction. Landlords must go through the summary ejectment process. Another example of self-help eviction is turning off utilities-and there are others. If your landlord has locked you out, you need to act immediately. Sometimes a phone call will clear up the matter. Other times, you may need to retain a lawyer to seek a temporary restraining order (TRO) requiring the landlord to open the unit.
If you have been locked out by your landlord and there has been no summary ejectment action, you need to know that the law is on your side and that your landlord has violated the law. Making this clear to the landlord will help. If it does not work, you will need to take legal action immediately.
5. What can I do when my landlord won't do necessary repairs?
Your landlord's duties are determined by your lease and North Carolina law. Landlords are not permitted to lease premises that are not habitable. Examples of inhabitable units include exposure to the elements, rat infestation, severe mold, unrepaired sewage problems, etc. The remedy to this is what is called "rent abatment," in which a judge or magistrate orders the landlord to refund the difference between the fair market value of the unit and the actual rent paid. The landlord may have also committed an "unfair and deceptive act or practice," which is in violation of Chapter 75 of the North Carolina General Statutes. It is important to note that if you think your apartment is uninhabitable you must continue to pay rent-failure to do so will give your landlord the ability to sue for summary ejectment (eviction).
Other issues to look to include the lease. What did the landlord agree to maintain or repair? If the landlord has not done what he agreed to, you have a breach of contract claim.
Another important issue is whether the landlord was notified of the issue. If repairs are needed, you need to let your landlord know. It only makes sense that the landlord be held accountable for undone repairs only if he or she knew they were needed. If your landlord is not responding to your request, you should contact Neighborhood Services or other local agencies that inspect housing. Their records may need vital to prove your case.
6. I bought a car last week and now it does not run. What can I do?
It depends. If you bought the car because you were told certain things about it that were untrue, you may have a fraud claim. There are other issues related to warranties. It is important to know whether you bought your car "as is" or subject to a warranty. It is important that you gather every document you have related to your car purchase and bring them to an attorney's attention. North Carolina has a lemon law that may apply. The federal Magnuson-Moss Warrantly Act may apply as well.
7. I've been sued. What should I do?
In North Carolina, you have thirty (30) days to file an answer to the lawsuit after you have been served. If it is a small claims action, you will need to appear at the date and time on the Magistrate's Summons. If you do not answer the complaint or appear in small claims court, the person or company that sued you will likely get what they ask for through a default judgment. If you allow a judgment to be entered against you, your options will be severely limited as it is rather difficult to have a judgment set aside.
Often, it is necessary to retain a lawyer to respond to the lawsuit and protect your rights.
If you have been sued for "collection on an account" by a credit card company or a debt buyer, click on Debt Defense to the left or contact Alan M. Roughton at (252) 940-1300 to schedule a free consultation.
8. Debt collectors keep calling me. Is there anything I can do about this?
You should send a letter via certified mail to the collection agency requesting that they stop contacting you. Federal and state law prohibits collection agencies from continuing such contact after you have made such a request. Debt collectors are also prohibited from harassing debtors. These activities would include calling numerous times a day, calling in the middle of the night, etc. Creditors may continue to send regular statements to you.
9. A debt collector threatened me. Is that legal?
It depends what it has threatened to do. A debt collector cannot threaten to do something it neither intends to do or is not permitted to do by law. In North Carolina, for example, most creditors cannot garnish wages so a threat to garnish wages violates North Carolina law. They also cannot threaten physical harm. They cannot yell at you. They cannot threaten you with arrest or criminal charges as it is not a crime to be a debtor. Many people would be surprised at what some debt collectors do and say in order to coerce payment.
You should take detailed notes and save voicemails and other correspondence from the debt collector. Do not write on letters from the collector. Be sure to make a note of what was said, who said it, and when the conversation took place.
If you have questions about whether a debt collector has crossed the line, contact Alan M. Roughton at (252) 940-1300.
10. A debt collector called someone else about my debt. Is that legal?
Generally speaking, a debt collector cannot communicate about your debt to a third party. It can communicate with third parties to find out where you are, though. It cannot call your employer, friends, or family members, however, and tell them about your delinquency.
11. My debts were discharged in bankruptcy but a debt collector is still calling about it. What can I do?
This is likely a violation of North Carolina and federal law. Contact Alan M. Roughton to schedule a consultation.
12. Does the statute of limitations provide me with a defense to a debt collection suit?
Many times, yes. Usually, the relevant statute of limitations in North Carolina is three years, beginning when you because delinquent. If it is a contract under seal, the statute of limitations is ten years. You may need to consult a lawyer to determine whether the statute of limitations has expired.
If the statute of limitations has expired, you have an "affirmative defense" that you must assert or else you will have waived it. You may also have counterclaims related to the statute of limitations and your lawsuit. Contact Alan M. Roughton for an analysis of your situation.
13. Should I contact one of the credit card debt consolidation companies that I see on television?
Probably not. These are usually run by the credit card companies who do not want you to file bankruptcy because they are likely lower priority creditors. The Federal Trade Commission has information about these companies here.
14. What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act is a federal law that governs how debt collectors do business. It does not govern most creditors collecting their own debts. Click here for the act. It prohibits many activities and provides powerful protections for debtors because it provides for a right to sue collection agencies.
15. What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act is a federal law that governs the collection and use of consumer information. It governs what kind of negative information can appear on your credit report, how long certain information appears on your credit report, and provides mechanisms for disputing incorrect information. Click here for the act.
16. What is the Truth in Lending Act?
The Truth in Lending Act (TILA) is a federal law that governs consumer credit transactions by requiring clear disclosures of key terms such as the Annual Percentage Rate so that consumers can make informed decisions regarding credit. The act is implemented through a complex regulatory framework known as "Regulation Z." TILA also outlaws certain practices in loans secured by a consumer's primary residence. Click here for a lengthy explanation of the act.
17. What are "unfair and deceptive acts and practices" (UDAP)?
Chapter 75 of the North Carolina General Statutes regulates acts in commerce in North Carolina. "Unfair and deceptive acts and practices" are a broad array of acts by businesses that are harmful to consumers. Many of these acts are also violations of other consumer protections.
18. Does North Carolina law provide me with additional protections?
Yes. North Carolina law governs debt collectors, debt buyers, and creditors collecting their own debts. In many ways, North Carolina law provides greater protections-including increased money damages. Contact Alan M. Roughton to find out how North Carolina law applies to your situation.
19. Is The Law Office of Alan M. Roughton, PLLC a bankruptcy law firm?
No.
20. How does The Law Office of Alan M. Roughton, PLLC get paid for handling my consumer protection case?
It depends on the type of case. In most cases, the firm gets paid by winning your cases, either through a percentage of the recovery, a statutory attorney's fee provision, or both.
2. Why did my credit card rate increase?
3. When may my landlord refuse to give back my security deposit?
4. My landlord locked me out. What can I do?
5. What can I do when my landlord won't do necessary repairs?
6. I bought a car last week and now it does not run. What can I do?
7. I've been sued. What should I do?
8. Debt collectors keep calling me. Is there anything I can do about this?
9. A debt collector threatened me. Is that legal?
10. A debt collector called someone else about my debt. Is that legal?
11. My debts were discharged in bankruptcy but a debt collector is still calling about it. What can I do?
12. Does the statute of limitations provide me with a defense to a debt collection suit?
13. Should I contact one of the credit card debt consolidation companies that I see on television?
14. What is the Fair Debt Collection Practices Act?
15. What is the Fair Credit Reporting Act?
16. What is the Truth in Lending Act?
17. What are "unfair and deceptive acts and practices" (UDAP)?
18. Does North Carolina law provide me with additional protections?
19. Is The Law Office of Alan M. Roughton, PLLC a bankruptcy law firm?
20. How does The Law Office of Alan M. Roughton, PLLC get paid for handling my consumer protection case?
1. What is fraud?
Fraud happens when someone misrepresents or conceals material facts from a person who in turn relies on that misrepresentation and is harmed by it. Fraud is a common law concept used to negate the existence of a contract. This takes many forms. Odometer fraud takes place when someone rolls back the odometer on a car in order to sell it. Other kinds of automobile fraud take place when a seller lies or conceals the car's history about accidents and the like. Fraud can occur in almost any contractual situation, such as real estate, mortgage lending, etc. Often, there are specific statutory definitions that may apply to your situation. Furthermore, various federal and state statutes apply to most situations and you should discuss those with an attorney.
2. Why did my credit card rate increase?
Credit card companies are governed by state law, federal law, and the cardholder agreement between you and the issuer. Your interest rate, including any changes, will be determined in the legal context. Most credit card companies are in states without usury laws (such as Delaware) so their interest rates have no limit imposed by state law. The agreement will often provide a formula to determine your interest rate-usually the "prime rate" plus a certain percentage. The contract often places both a minimum and maximum rate. It will often provide the circumstances under which your rate will change. One cause is the end of an introductory rate period. Another is the trigger of a "default rate" after a missed payment.
It is important to read your cardholder agreement. While your credit card company may be in a state with no interest rate limit, if it increases the rate about what is permitted in your agreement you may have a claim for usury. North Carolina law provide strong protections for consumers who are the victim of usury and you should contact Alan M. Roughton to explore your options if you have been the victim of usury.
Federal law is changing and credit card companies will soon be more restricted in how they increase credit card rates.
3. When may my landlord refuse to give back my security deposit?
A residential landlord may only use a tenant's security deposit to satisfy unpaid rent or to repair the unit. The security deposit cannot be used to perform repairs caused by reasonable wear and tear. Otherwise, a landlord must either refund or provide an accounting for a security deposit within thirty (30) days of the end of the lease. If a landlord refuses to refund a security deposit when required, it can be recovered by filing a civil suit. If the landlord willfully refuses to refund the security deposit, a court can consider awarding reasonable attorney's fees to the tenant.
4. My landlord locked me out. What can I do?
Landlords are not permitted under North Carolina to lock out tenants because they have not paid rent-this is called "self help" eviction. Landlords must go through the summary ejectment process. Another example of self-help eviction is turning off utilities-and there are others. If your landlord has locked you out, you need to act immediately. Sometimes a phone call will clear up the matter. Other times, you may need to retain a lawyer to seek a temporary restraining order (TRO) requiring the landlord to open the unit.
If you have been locked out by your landlord and there has been no summary ejectment action, you need to know that the law is on your side and that your landlord has violated the law. Making this clear to the landlord will help. If it does not work, you will need to take legal action immediately.
5. What can I do when my landlord won't do necessary repairs?
Your landlord's duties are determined by your lease and North Carolina law. Landlords are not permitted to lease premises that are not habitable. Examples of inhabitable units include exposure to the elements, rat infestation, severe mold, unrepaired sewage problems, etc. The remedy to this is what is called "rent abatment," in which a judge or magistrate orders the landlord to refund the difference between the fair market value of the unit and the actual rent paid. The landlord may have also committed an "unfair and deceptive act or practice," which is in violation of Chapter 75 of the North Carolina General Statutes. It is important to note that if you think your apartment is uninhabitable you must continue to pay rent-failure to do so will give your landlord the ability to sue for summary ejectment (eviction).
Other issues to look to include the lease. What did the landlord agree to maintain or repair? If the landlord has not done what he agreed to, you have a breach of contract claim.
Another important issue is whether the landlord was notified of the issue. If repairs are needed, you need to let your landlord know. It only makes sense that the landlord be held accountable for undone repairs only if he or she knew they were needed. If your landlord is not responding to your request, you should contact Neighborhood Services or other local agencies that inspect housing. Their records may need vital to prove your case.
6. I bought a car last week and now it does not run. What can I do?
It depends. If you bought the car because you were told certain things about it that were untrue, you may have a fraud claim. There are other issues related to warranties. It is important to know whether you bought your car "as is" or subject to a warranty. It is important that you gather every document you have related to your car purchase and bring them to an attorney's attention. North Carolina has a lemon law that may apply. The federal Magnuson-Moss Warrantly Act may apply as well.
7. I've been sued. What should I do?
In North Carolina, you have thirty (30) days to file an answer to the lawsuit after you have been served. If it is a small claims action, you will need to appear at the date and time on the Magistrate's Summons. If you do not answer the complaint or appear in small claims court, the person or company that sued you will likely get what they ask for through a default judgment. If you allow a judgment to be entered against you, your options will be severely limited as it is rather difficult to have a judgment set aside.
Often, it is necessary to retain a lawyer to respond to the lawsuit and protect your rights.
If you have been sued for "collection on an account" by a credit card company or a debt buyer, click on Debt Defense to the left or contact Alan M. Roughton at (252) 940-1300 to schedule a free consultation.
8. Debt collectors keep calling me. Is there anything I can do about this?
You should send a letter via certified mail to the collection agency requesting that they stop contacting you. Federal and state law prohibits collection agencies from continuing such contact after you have made such a request. Debt collectors are also prohibited from harassing debtors. These activities would include calling numerous times a day, calling in the middle of the night, etc. Creditors may continue to send regular statements to you.
9. A debt collector threatened me. Is that legal?
It depends what it has threatened to do. A debt collector cannot threaten to do something it neither intends to do or is not permitted to do by law. In North Carolina, for example, most creditors cannot garnish wages so a threat to garnish wages violates North Carolina law. They also cannot threaten physical harm. They cannot yell at you. They cannot threaten you with arrest or criminal charges as it is not a crime to be a debtor. Many people would be surprised at what some debt collectors do and say in order to coerce payment.
You should take detailed notes and save voicemails and other correspondence from the debt collector. Do not write on letters from the collector. Be sure to make a note of what was said, who said it, and when the conversation took place.
If you have questions about whether a debt collector has crossed the line, contact Alan M. Roughton at (252) 940-1300.
10. A debt collector called someone else about my debt. Is that legal?
Generally speaking, a debt collector cannot communicate about your debt to a third party. It can communicate with third parties to find out where you are, though. It cannot call your employer, friends, or family members, however, and tell them about your delinquency.
11. My debts were discharged in bankruptcy but a debt collector is still calling about it. What can I do?
This is likely a violation of North Carolina and federal law. Contact Alan M. Roughton to schedule a consultation.
12. Does the statute of limitations provide me with a defense to a debt collection suit?
Many times, yes. Usually, the relevant statute of limitations in North Carolina is three years, beginning when you because delinquent. If it is a contract under seal, the statute of limitations is ten years. You may need to consult a lawyer to determine whether the statute of limitations has expired.
If the statute of limitations has expired, you have an "affirmative defense" that you must assert or else you will have waived it. You may also have counterclaims related to the statute of limitations and your lawsuit. Contact Alan M. Roughton for an analysis of your situation.
13. Should I contact one of the credit card debt consolidation companies that I see on television?
Probably not. These are usually run by the credit card companies who do not want you to file bankruptcy because they are likely lower priority creditors. The Federal Trade Commission has information about these companies here.
14. What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act is a federal law that governs how debt collectors do business. It does not govern most creditors collecting their own debts. Click here for the act. It prohibits many activities and provides powerful protections for debtors because it provides for a right to sue collection agencies.
15. What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act is a federal law that governs the collection and use of consumer information. It governs what kind of negative information can appear on your credit report, how long certain information appears on your credit report, and provides mechanisms for disputing incorrect information. Click here for the act.
16. What is the Truth in Lending Act?
The Truth in Lending Act (TILA) is a federal law that governs consumer credit transactions by requiring clear disclosures of key terms such as the Annual Percentage Rate so that consumers can make informed decisions regarding credit. The act is implemented through a complex regulatory framework known as "Regulation Z." TILA also outlaws certain practices in loans secured by a consumer's primary residence. Click here for a lengthy explanation of the act.
17. What are "unfair and deceptive acts and practices" (UDAP)?
Chapter 75 of the North Carolina General Statutes regulates acts in commerce in North Carolina. "Unfair and deceptive acts and practices" are a broad array of acts by businesses that are harmful to consumers. Many of these acts are also violations of other consumer protections.
18. Does North Carolina law provide me with additional protections?
Yes. North Carolina law governs debt collectors, debt buyers, and creditors collecting their own debts. In many ways, North Carolina law provides greater protections-including increased money damages. Contact Alan M. Roughton to find out how North Carolina law applies to your situation.
19. Is The Law Office of Alan M. Roughton, PLLC a bankruptcy law firm?
No.
20. How does The Law Office of Alan M. Roughton, PLLC get paid for handling my consumer protection case?
It depends on the type of case. In most cases, the firm gets paid by winning your cases, either through a percentage of the recovery, a statutory attorney's fee provision, or both.
The Law Office of Alan M. Roughton, PLLC
P.O. Box 454
155 N. Market Street, Suite 219
Washington, NC 27889
(252) 940-1300
Fax: (252) 946-5800
The Law Office of Alan M. Roughton, PLLC proudly protects consumers in Greenville, Washington, Tarboro, Williamston, Plymouth, Columbia, Manteo, Swan Quarter, New Bern, Havelock, Elizabeth City, Windsor, Edenton, and throughout eastern North Carolina.