Monthly Archives: October 2008

Is your odometer costing you money?

There was a recent lawsuit settlement that revealed that all car odometers manufactured are not equal. There were some odometers that will lose its factory or extended warranty sooner than the actual time frame.

The lawsuit involves a lawyer from Arkansas. He was in his Honda Odyssey minivan and noticed that the miles seemed to be clicking faster. He checked the odometer against some measured mileposts along the highway and found that the odometer was off by at least 5 percent. He reviewed his complaint with few other Honda Odyssey minivan owners and found that they were also having similar problems.

If your odometer is off by 5% or more, you could actually be within the warranty period even if the odometer indicates otherwise. A manufacturer will sound tough towards your complaint and he will not cover the repair.

For warranties that extend to 100,000 miles, the mileage difference becomes more significant, especially if it is an expensive repair.

This complaint resulted in a class action lawsuit against the manufacturer that was later settled. Honda admitted that they were not doing anything wrong, but agreed to lengthen the mileage warranties by 5% for 2002 to 2006 Hondas and Acuras, and 2007 Honda Fit models. They have also resolved the issues in all the newer models.

The lawyers who brought this class action lawsuit noticed similar complaints against Nissan as well as other manufacturers.

If you are concerned about your car odometer, it is important that you check the miles on your odometer on the highway with the mileposts installed by the state of federal government. If you also notice that your car odometer is showing a 5 percent off, you should bring it to the attention of the dealer’s service department to see if the odometer can be adjusted. If they are not willing to fix the problem or they don’t want to, write a letter to the dealer and the manufacturer to point out the problem and how it is going to impact your warranty period. You need to have all documentations before filing a warranty claim when the vehicle is just few miles over the limit.

How the foreclosure scam works?

It can be a terrifying dream of loosing your home because of a foreclosure. It can get even more frightening when the con artists are preying on the desperate homeowners who have got their homes foreclosed. They will give all assurances to rescue your home and get your money. Once they have scammed you, it will be a nightmare to have nothing left.

Most of the scam artists use half truths and outright lies to win your trust and promise relief. Their main intention is to collect the money from you that you are putting towards the repayment plan to your lenders. They will pocket that money and will never pay your lenders. If you are too innocent, they will make you believe that they have got the ownership of your property from the lender and you just need to pay them back in your convenient ways. The fact is that you have already lost your home to foreclosure even though you had the best intentions to pay back.

Know the ways of how a con artist will try to deceit you when you are facing a foreclosure. There are legitimate options to save your home even if the foreclosure process has already started. Foreclosure rescue firms will advertise on the internet, or through public files at local government offices. Once you have contacted them, they will send personalized letters and get most of your attention. Beware of the scam artists who use very simple and straight forward messages like “Stop foreclosure now. We guarantee our services and you can save your home.” They can even personalize the letter to the extent that they have contacts with your lenders and they can work out arrangements. They will convince you to send payments to them and then they will forward it to your lender. It’s just that simple, but the fact is its not. They are digging you deeper into the hole.

If you are about to face a foreclosure, your best bet is to contact your lender immediately and explain them your situation. You will be able to work out some kind of arrangements because they want their money back and they don’t want to incur additional costs. You can negotiate with them for a new repayment plan.

Enroll in a debt management program and keep your credit good

The best thing that you can do for your credit is to make timely and full payments to your creditors. Whenever you carry forward any balance to the next billing cycle with your creditor, you will be charged an interest rate and the financial fees on the remaining balance. It is always suggested that you should be making larger payments on the total balance so that you spend less on interests and fees. If you are making just the minimum payments, the credit card companies are chargi

ng their highest interests and fees on every billing cycle. There are many of us who find it hard to make ends meet and are living on paycheck to paycheck.

If you are on the verge of not being able to make the minimum payments, it is time to get some serious help. In order to keep your credit in good standing, you should never get late in your monthly payments. But that means that you will have to make at least the minimum payments. And the minimum payments will also continue to get higher on every billing cycle. The credit card companies are making the maximum money from people in such financial crunch and penalize them heavily.

There is a way to fix this financial problem and not hurt your somewhat good credit. You need to enroll in a debt management program and combine all your bills under one monthly payment. Instead of paying to a number of creditors on a different due dates, you will have one monthly payment in the debt consolidation/debt management program. The debt management company will negotiate with your creditors to reduce the current APR. When you are paying directly to your creditors, most of the money is eaten just in interests and fees. In the debt consolidation program, you can afford to pay the same amount and see the maximum portion going towards the principal balance and less in interests. The debt management company will be negotiating with your creditors to reduce the current APR and waive off most of the financial fees. You will have a reduced balance to pay in the debt management program to all your creditors. If you have decide to enroll in the debt consolidation program, be sure that you will stick to the same repayment plan and if possible, pay any extra amount towards the principal balance on a certain month, thereby bringing down the total balance. The repayment plan in the debt consolidation program will be much lower that what you have been already paying to your creditors. However, you can always increase it according to what you can afford in the program. If you want to lower the payment plan in the debt consolidation program, the creditors will charge you their interests and fees again. Whatever may happen, do not default in your monthly payments in the debt consolidation program until you have completed it.