Credit FAQ

Q.	Can my furniture be used as collateral for a debt?
A.	Only if the debt is for buying the furniture. If you refinance or get a loan, the creditor cannot use your furniture or appliances as collateral.

Q.	What happens if I get behind on my payments to a creditor?
A.	MAYBE NOTHING. If you are more than ten (10) days late in making a payment, the creditor may send you a letter giving you twenty (20) days to catch up. This letter is called the Notice of Right to Cure. If you have not caught up your payments within those twenty days, the creditor CAN repossess anything used as collateral, OR sue you for the balance owed on the debt.

Q.	Can creditors sue me or repossess without sending me a Notice of Right to Cure?
A.	NO, if you have not already received a Notice of Right to Cure for the same debt. The creditor must give you only ONE Notice of Right to Cure. If you catch up your payments and later get behind again, the creditor can immediately sue you for the balance owed or repossess the collateral, without giving you ANY further notice.However, if you refinance with that same creditor, you will be entitled to a new Notice if you miss payments. WARNING: You are NOT entitled to a Notice of Right to Cure if you have broken your contract some other way than missing payments. For example, if the creditor can prove that the collateral is in danger or that you are moving it out of state with the collateral without his permission, he may repossess it without sending you any notice.

Q.	What happens if the creditor tries to repossess my car, mobile home, or household goods?
A.	The creditor CAN ask you for the goods (but you do not have to turn them over); Take your car from the driveway or from the street if you do not object or protest; Sue you to get the goods or the car.The creditor CANNOT enter your home without your permission or a court order, even if the contract says he can.

Q.	Can I be put in jail just for missing my payments?
A.	NO, as a general rule. But you might go to jail for writing bad checks or disobeying court orders to pay money (including child support orders). You can also go to jail for selling or giving away the collateral for the debt.

Q.	Does South Carolina has a lemon law? If so, when did it become effective?
A.	Yes, South Carolina does have a lemon law which the General Assembly passed during the 1989 legislative season. It became effective October 3, 1989.

Q.	When is a car considered a lemon under the new law?
A.	The new law defines a lemon as a new motor vehicle (passenger car, van or truck) that:
	-- -- --	was bought on or after October 3, 1989; has a defect that impairs its use or will lower its market value substantially; and which the manufacturer cannot repair within a reasonable time.

Q.	What is covered in the law?
A.	Defects which do not substantially impair the vehicle's use, market value an safety. Also not covered are defects caused by the consumer's abuse, neglect or unauthorized alteration of the car, or defects that do not show within the first 12,000 miles or 12 months, whichever occurs first.

Q.	Does the lemon law cover anything other than new motor vehicles?
A.	No. It only covers passenger motor vehicles (cars, vans, small trucks).

Q.	If I discover a defect what do I need to do?
A.	You must notify the manufacturer (or its agent) of the defect during the term of the express warranty. The manufacturer must make any repair efforts at no cost to the consumer and within a reasonable amount of time. The law presumes a reasonable amount of time to be either three repair attempts for the same defect or thirty days out of service for repairs. The 30 days do not have to be consecutive.

Q.	What happens if the manufacturer is unable to repair the defect?
A.	If the defect can not be repaired, the manufacturer has the option of whether to replace the vehicle or rescind the agreement and refund the money. If the manufacturer elects to rescind the agreement and refund the money, the refund must be for the full purchase price of the vehicle, less a reasonable allowance for the consumer's use. The full purchase price includes: 1) applicable finance charges and 2) all governmental fees, such as sales tax, license fees and registration fees.

Q.	Describe the steps I must take in getting a refund or replacement for my vehicle.
A.	Before you request a refund or replacement you must first participate in any arbitration procedure the manufacturer may have established (the decisions are binding on the manufacturer). This type mediation is know as an "informal dispute settlement procedure." The "informal dispute settlement procedure" must:
	--	set up requirements for consumer notification;
	--	be free from the manufacturer's influence
	--	be free of charge to the consumer;
	--	generally settle the dispute within 40 days

Q.		What can I do if I am not satisfied with the mediation decision?
A.		If after arbitration, you remain unsatisfied, you can then file suit in the courts. Consumers should remember to buy cars only from reputable dealers and should read the warranty carefully and save all documentation related to the car and to any repair work for their records. If you have problems with your new car you should begin to keep the following records: a description of defects and details of contacts (including the date and name of the person you spoke with); a log of the amount of time the car was out of service and complete written records of routine service.

Q.		If the lemon law does not cover the car I purchased do I have any other recourse or protection?
A.		Possibly. The general law of sale, including warranty law may still apply. In addition, you can always file a complaint with the S. C. Department of Consumer Affairs.

SOUTH CAROLINA DEPARTMENT OF CONSUMER AFFAIRS

SOUTH CAROLINA DEPARTMENT OF
CONSUMER AFFAIRS