With consumer confidence in the economy dropping to an all time low as worries of a possible recession linger, the cost of filing your gas tank reached another new record averaging $3.23 a gallon for regular unleaded gasoline and $3.83 a gallon for diesel.
FEDERAL LEGISLATIVE ACTIVITY
Dealer-Customer Calls Not Affected by "Do Not Call" Extension
Consumers who have placed phone numbers on the "Do Not Call" registry since it took effect in 2003 will not need to re-enter their numbers five years later to avoid receiving unwanted solicitations. The newly enacted legislation removed the five-year limit on the time numbers can remain on the registry. The legislation has no effect on a motor vehicle dealers’ ability to access the registry or call consumers with whom they have an "established business relationship" nor does it affect customers who have given dealers written permission to call them at a designated phone number.
FEDERAL REGULATORY ACTIVITY
NHTSA Publishes 2008 Insurance Cost Information Booklet
The National Highway Traffic and Safety Administration has released its 2008 insurance cost information booklet that includes comparative information regarding differences in vehicle collision loss experience that could affect auto insurance costs.
2008 Insurance Cost Information Booklet
Penalties for Odometer Law Violations Adjusted for Inflation
NHTSA has adjusted for inflation the maximum penalties for violations Federal Odometer Act.
The maximum penalty for a single violation of the Act was increased from $2,200 to $3,200 and is now in effect.
OTHER ACTIVITY OF INTEREST
Should the Goal for Carbon Emissions Be Less Than Zero?
Researchers worldwide have been asking themselves that question and working on technologies to reach that goal. The end result would be the ultimate green business, one that produces fuel whose emissions are more than offset by carbon dioxide stored during production. Such a business would be successful if Congress were to put a tax on emissions or start a trading plan that makes carbon credits valuable. For some experts, it’s not a question of whether businesses will go carbon neutral, or even carbonless negative, but when.
CASE OF THE MONTH
In re J. M. & J. L. Schwalm, was filed in the United States Bankruptcy Court in Florida. The facts show that the debtors bought 2 new cars on November 13, 2005 for their personal use. Both cars were purchased from the same dealer using the same form of Retail Installment Contract. The dealer assigned the contracts to the lenders Bank of America and GMAC.
The debtors filed a joint petition for relief under Chapter 13 on May 29, 2007, within the 910 day period referenced in what has become known as the “hanging paragraph” at the end of Section 1325(a) of the Code. Bank of America filed proof of claim asserting a current balance of $27,730.78 while the debtors Chapter 13 plan provided for a total secured claim of only $15,000. GMAC also filed a proof of secured claim in the amount of $20,275.38 while the debtors’ plan provided for a total secured claim of only $15,600. The debtors contend that the total amount financed on the Retail Installment Contracts included the negative equity from trade-ins, plus premiums for gap coverage, and the cost of a service contract. In short, the debtor’s contention was that the “hanging paragraph” does not apply.
The court found that the debtors negotiated packaged financing in compliance with the state motor vehicle finance laws and the Federal Truth in Lending Act and Regulation Z. The Court stated that under these laws, the items complained of were of “close nexus” to the vehicle and lawfully permitted to be included in the “amount financed” in a motor vehicle retail installment contract, therefore giving the two creditors “purchase money security interests”. Accordingly, the Court held that the debtors attempt to bifurcate these items for purposes of a loan cram down was not permissible.