6 Easy Tips to Avoid A Lemon Car

This summer, you will undoubtedly see advertisements for new and used cars on billboards, flyers, newspapers and at your local NYC car dealerships. Perhaps the sight of the inflatable wavy wacky tube man will entice you to look at the shiny red convertible parked in front of the dealership. So, how do you avoid buying a lemon car?  Here are 6 easy tips to avoid a lemon car.

1. Ask Questions. More Questions,The Better.  

  • “How many miles does it have?” If the mileage is higher than 20,000 per year or lower than 5,000, ask why. A high-mileage car used on a long highway commute is better than if it did a lot of short trips or stop-and-go driving.
  • “How is it equipped?” Transmission type; A/C; antilock brakes; airbags; audio system; power windows, locks, seats, and mirrors; cruise control.
  • “What’s the car’s condition?” Start broad to see if the seller brings up something you did not think to ask.
  • “How about the body and interior?”
  • “Has it been in an accident?”
    • If yes, ask about the extent of the damage, the cost of repairs, and the shop that did the work. Serious accidents should be a red flag.
  • “Do you have service records?”
    • You want a car that has had maintenance performed at regular manufacturer-specified intervals. Ask for maintenance receipts for any new muffler, brakes, tires, or other “wear” parts that have been replaced. Receipts should note the odometer reading.
  • “Has the car been recalled?
    • Was any safety-recall work performed? When?
  • Are you the first owner?
    • If buying from a private seller, you want to know how owners the car has had.
  • Who is the primary driver?
    • Is it the private seller who seems responsible or their teenager with a need for speed.

2. Inspect the Exterior

  • Inspect the ENTIRE car for dents, rust, scratches and anything that could indicate a repair.
  • Cracked windows are expensive to replace.
  • Suspension should be sitting level and the car should not be bounce. Tip: Pull on the top of each tire. If the tire feels loose or there is a clunking metallic sound, the wheel bearings and/or suspension joints may need service.
  • Headlights and reflectors should not have cracks and not have any foggy moisture.
  • Tires should have even wear across the treads on all tires.
  • Tires must have at least 1/16 inch of tread to be legal. Insert a quarter into the tread groove, with Washington’s head down. If you can see the top of Washington’s head, the tire needs to be replaced.
  • Wear on the outside shoulder of the front tire, edge of the sidewall indicates heavier aggressive driving.
  • More wear on the middle of the tire than the side of the tire indicates overinflated tires.
  • Spare tire should be in good shape with jack and lug wrench. 

3. Inspect the Interior

  • Does interior smell like a new car or an ashtray? Odors caused by smoke and mold from water damage may be expensive to get rid of.
  • Do ALL the seats work properly?
  • Gas and brake pedal worn or lightly used? Check the rubber on the pedals for wear.
  • Dashboard instruments and controls.
  • Make sure all the dashboard lights – especially check engine light – work by starting the car.
  • Do the AC and heat controls work properly? Does the AC quickly cool the car or does the AC need to be recharged? How does the air smell when the heat is on high?
  • Speakers and sound system.
  • Check if your phone or other devices connect and work properly with the car. Does the bluetooth work? How about the AUX cable port?
  • Roof Upholstery
    • Does the roof sag or are there any water spots? Sunroof or windows that improperly close may leaks and cause water damage.

4. Pop the Hood

  • Check the battery condition
  • If the battery has filler caps, clean the caps, unscrew the caps and look at the liquid level. If the level is low, the battery may be working too hard and a mechanic may need to conduct a load test on the battery.
  • Some batteries have a charge indicator. Green indicates a full charge while Yellow or Black indicates that the battery needs to be replaced.
  • Belts and hoses are in proper working condition if the rubber is firm and flexible, not dry, cracked or too soft. Perform the check by squeezing up and down the rubber belt and hoses.
  • Engine oil should be dark brown or black with no grit. If the dipstick has water droplets on it, grey or foamy oil, then there may be serious issue with a cracked engine block or blown gasket.
  • Transmission fluid should be pinkish, not brown with no metallic particles on the dipstick. It should smell like oil, not burnt. Automatic Transmission fluid must be tested with the engine warmed up.  
  • Brake and power-steering fluids should be within the marked safe levels.
  • Radiator coolant should been greenish or orange, not a milky or rusty color. Also check the rubber hose connecting the radiator to the plastic reservoir.

 5. Check Under the Car

  • If you can get under the car, check for oil leaks, red or green engine fluid leaks.
  • Touch the tailpipe, the smudge on your hand should be dry and dark grey. If it is black and greasy, that indicates oil burning and the car producing higher emissions.
  • Check the exhaust system line for rust. It is not uncommon for cars from colder climates to have mufflers fall off due to rust.
  • Welding and fresh undercoating may indicate past structural repairs.
  • On a front wheel drive car, examine the constant velocity joint boots inboard of the front wheels. They are round black-rubber bellows at the end of the axle shafts. If they are split and greasy, this indicates a bad CV joint that is a very expensive repair.

6. Get a Diagnostic from an Independent Mechanic

  • Before you sign off on the buying the car, ask the dealership to lend you the car to have an independent mechanic to check it out. A common practice is to leave your identification with the dealership. If buying from a private seller, offer to follow the seller to the mechanic for inspection.
  • Diagnostic jobs are approximately $100 depending on the mechanic. Using the diagnostic repair, you are in a better position to negotiate the price of the car.

Protect Yourself from Lemon Cars

The bottom line is, cars are a big life investment and fighting for your rights can be complicated.  Make sure you get everything in writing and keep all of the documents from the deal.  If something doesn’t make sense, have the dealership explain it.  If you think you are being taken advantage of or if the car is having problems that just don’t seem right for a car you just bought, contact a lawyer because you may be able to do something about it.

For more information or to schedule a consultation, please email me at David@KasellLawFirm.com or call (718) 404-6668. I look forward to working with you!

This material may be viewed as attorney advertising and does not constitute legal advice. This information does not create an attorney-client relationship between you and the author. This article strictly represents the personal views of the author on the date it was written and such views are subject to change without notice. 

Scam: Yo-Yo Car Sales Trap

You just signed the sales contract to buy your dream car. You were promised low rate financing by the car dealership’s manager of Finance and Insurance. You drive your new car home and show it off to your friends, family, coworkers and neighbors. Everything is going great until you receive the “yo-yo” car scam phone call from the car dealership.

On the “yo-yo” phone call, the dealership tells you that you did not qualify for the financing rate agreed upon on the sales contract that you signed. Further, they tell you to come back to the dealership with your new car. At the dealership, they tell you that you need to sign a new contract with a higher interest rate and/or pay an even bigger down payment.

Today, car buyers – especially those with bad credit – are falling prey to a scam known as “yo-yo,” “bait-and-switch” and “spot financing.”

The “yo-yo” or “spot financing” scam means that the buyer is sold the car on the spot and drives off the lot before loan financing approval is complete. Dealerships know that when a buyer drives home with the new car, posting pictures of it on Facebook, showing it off to coworkers, the buyer grows attached – it would be humiliating to be forced to return the new car simply because the financing fell through. Further, most consumers are not savvy about negotiating with banks and lenders for the best financing rates. Knowing this, dealers prey on consumers eager to drive off with a new car without first securing a loan from a third-party lender.

Dealers will try to make you pay a bigger down payment and sign a new contract with higher interest rates by:

  • Making it seem like signing the dealer’s new contract is your only option.
  • Threatening to…
    • Destroy your credit by reporting you to credit agencies.
    • Repossess the vehicle.
    • Report the vehicle as stolen, leaving you stranded at the dealership.
    • Report you to your employer.
    • If you are in the military, threaten to report you to your base command.
  • Claim that…
    • Your credit is lower than it it really is, making the dealer’s new contract with a bigger down payment and higher interest rate seem like the best deal you can get.
    • They did everything to obtain a loan with a loan rate even though the dealership did not submit the paperwork to third-party lenders.

4 Ways to Avoid “Yo-Yo” Financing Scams

    1. Save up for your next car and pay in cash, instead of taking out a loan.
    2. Buy a used car for a better deal and value–New cars rapidly depreciate when driven off the lot.
    3. Shop around at reputable banks and credit unions for a loan. Get pre-approved for a loan before car shopping. Third-party lenders pay dealerships more for high interest rate loans. Never let a dealer arrange a loan financing.
    4. Avoid advertisements saying,“Bad Credit? No Problem! 0% Financing!” . Dealerships use these advertisements to lure in unsuspecting buyers, especially those with bad credit or low-income.

4 Things To Do If A Dealership Attempts Yo-Yo Scam and Demands Return of the Car

    1. Have a friend follow you to the dealership in another car. If the dealership demands that you sign a “new contract” with a higher interest rate, do not sign and have your friend drive you home.
    2. Get everything in writing. Have the dealership put in writing that you failed to qualify for financing under the original contract. By putting it in writing, the dealership is admitting that the original contract is no longer valid due to lack of financing. If the dealership refuses to put it in writing, leave the car at the dealership and write a letter to the dealership explaining that they refused to put in writing that the original financing was not approved and the original contract is no longer valid.
    3. Never sign a new contract with higher interest rates or a larger down payment. The “yo-yo” scam takes advantage of the buyer’s attachment to the new car and uses intimidation tactics to force the buyer to agree to worse terms than the original contract.
    4. Stay calm and contact an attorney specializing in auto law. Dealerships may pressure you into signing a new contract by threatening your credit, reputation and reporting the car as stolen. Stay calm, leave the car and keys at the dealership. The dealers may even refuse to return your down payment. Stay calm and contact an attorney.

Protect Yourself from Yo-Yo Financing and other Scams

The bottom line is, cars are a big life investment and fighting for your rights can be complicated.  Make sure you get everything in writing and keep all of the documents from the deal.  If something doesn’t make sense, have the dealership explain it.  If you think you are being taken advantage of or if the car is having problems that just don’t seem right for a car you just bought, contact a lawyer because you may be able to do something about it.

For more information or to schedule a consultation, please email me at David@KasellLawFirm.com or call (718) 404-6668. I look forward to working with you!

This material may be viewed as attorney advertising and does not constitute legal advice. This information does not create an attorney-client relationship between you and the author. This article strictly represents the personal views of the author on the date it was written and such views are subject to change without notice. 

CFPB Proposed Rule Aims to End Forced Arbitration in Class Actions for Financial Products and Services

On May 5, 2016, the Consumer Financial Protection Bureau (CFPB) proposed a new rule that consumer contracts with arbitration requirements must include a notice to consumers that class actions can be brought to court because they are not affected by arbitration requirements. As the CFPB only has jurisdiction over consumer financial products, the proposed rule grants consumers the right to file or participate in class action lawsuits concerning financial products and services.

Today, companies generally include arbitration requirements in consumer contracts, “forcing” consumers to waive their rights to bring or participate in a class action lawsuit. By signing the contract, often without reading the fine print, consumers “consent” to resolve any future dispute with the company in arbitration proceedings. Additionally, companies choose the arbitration company named in the contract. As arbitration proceedings are outside of the legal system, it is private, without a right to appeal, public review, judge, or a jury to ensure a fair and just outcome. Further, arbitrators do not need to take the law or legal precedent into account in making decisions.

In 2015, the CFPB study concluded that “arbitration agreements are being widely used to prevent consumers from seeking relief from legal violations on a class basis, and that consumers rarely file individual lawsuits or arbitration cases to obtain such relief.” See  CFPB Proposed Rule 1040 here. Congress directed the CFPB to study pre-dispute arbitration agreements under the Dodd-Frank Wall Street Reform and Consumer Protection Act to protect consumers and the public interest, CFPB crafted proposed rule 1040 so that consumers can file or participate in class actions concerning financial products and services. Therefore, as some companies primarily use arbitration clauses to prevent class action lawsuits, the proposed rule may motivate companies to stop using arbitration clauses in consumer contracts altogether.

To submit your comment on CFPB Proposed Rule 12 CFR 1040, identified by Docket No. CFPB-2016-0020 or RIN 3170-AA51, use any of the following methods:

  • Email: FederalRegisterComments@cfpb.gov. Include Docket No. CFPB-2016-0020 or RIN 3170-AA51 in the subject line of the email.
  • Electronic: http://www.regulations.gov. Follow the instructions for submitting comments.
  • Mail: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1700 G Street, NW., Washington, DC 20552.
  • Hand Delivery/Courier: Monica Jackson, Office of the Executive Secretary, Consumer Financial Protection Bureau, 1275 First Street, NE., Washington, DC 20002.

CAR DEALERSHIP RIPOFF: MANDATORY BINDING ARBITRATION AGREEMENT

Car dealerships have yet another way to rip you off – mandatory binding arbitration agreements. Today, mandatory arbitration agreements are frequently found in financing contracts and car dealership contracts for new and used cars.

What is arbitration?

Arbitration is also known as an “alternative dispute resolution” method where, instead of suing in court, two parties agree to present their claims and have their dispute settled by a neutral arbitrator or arbitration panel.

What is mandatory binding arbitration?

In mandatory binding arbitration, companies like car dealerships require consumers to sign contracts with a mandatory binding arbitration agreement  in the contract where the consumer agrees to give up their right to sue in court and are bound to use the arbitration process to settle any future disputes.

Why is mandatory binding arbitration bad for consumers?

Arbitration agreements are designed to preserve the seller’s right to sue consumers in court while preventing consumers from suing sellers in court by binding them to mandatory arbitration. Arbitration supporters say that arbitration proceedings are faster and more cost efficient than handling disputes in the court system. However, arbitration supporters fail to consider that the secrecy of arbitration proceedings hides fraudulent and unethical companies from public knowledge.  Further, arbitration businesses often claim to be fair and impartial to consumers like the now defunct National Arbitration Forum that was sued in 2008 by the City of San Francisco for running an “arbitration mill, [and] churning out arbitration rewards in favor of debt collectors… without regard to whether consumers actually owe the money sought.”

To keep your legal rights, consumers should only purchase cars from dealerships and financing companies that utilize a fair consumer contract that does not contain a mandatory binding arbitration agreement.

8 Ways Car Dealerships Use Mandatory Arbitration Agreements To Rip Off Consumers:

  1. Consumers usually do not know they are agreeing to a mandatory binding arbitration agreement – Consumers usually sign a ton of paperwork when they are ready to buy, sign and drive their new car home. Dealers use different tactics to keep consumers from making an informed decisions such as, hiding mandatory arbitration agreements in fine print or at the end of contract, briefly mentioning the arbitration agreement late in the signing process, or not mentioning the mandatory binding arbitration agreement to the consumer at all.
  2. Arbitration follows Arbitrary laws and procedures – Arbitration does not follow court procedures that are set in place to ensure fairness. For example, “discovery” is used in courts to ensure complete information for opposing parties by allowing parties to request information from the other party, is not followed in arbitration. As a result, consumers disputing their defective car are often not able to request information from dealerships and car manufacturers to support their claim. If the right to obtain documents is available, consumers sometimes must pay for the document production.
  3. Consumers are bound to arbitration but not dealerships – many mandatory arbitration agreements are written so that the seller retains the right to sue in court while consumers can only use arbitration for settling disputes.
  4. Dealerships Choose the Arbitration Company – Although arbitrators are supposed to be neutral, their bias may be with business clients because the arbitrators income is dependent on businesses choosing their company for arbitration. For example, the now defunct National Arbitration Forum, which provided arbitration services for various states, always ruled in favor of businesses when the business filed the claim with National Arbitration Forum.   
  5. Consumers Fight Blind – Even though a consumer lacks the necessary evidence from the car dealership and manufacturer to support their claim, arbitrators will proceed with the arbitration.
  6. Arbitrators Not Legally Trained – Consumers face a high risk of arbitrators misunderstanding and misapplying the law since arbitrators are not required to have legal training.
  7. Consumers are required to bring the defective car to arbitration – A defective car becomes a lemon if  the defect exists during the time period that the law provides. The condition of the defective car at the time of arbitration is irrelevant and a burden for consumers. “It’s fixed now” is not a valid defense to the lemon law. However, arbitrators can, and do require consumers to bring the car to arbitration for a test drive, regardless of the consumer having already met their legal burden.
  8. Consumers always pay legal fees – win or lose. Currently, there are no mechanisms for consumers to recover legal fees, even if they win!

2 Ways To Protect Yourself from Mandatory Binding Arbitration

  1. Read all documents for a mandatory binding arbitration agreement before signing anything.
  2. Ask dealerships if they require mandatory binding arbitration agreements. If the dealership requires an agreement, then do not sign anything, tell them why you refuse to buy a car from them, and take your business elsewhere.

Protect Your Lemon Law Rights

The bottom line is, defective cars are expensive and fighting for your consumer rights under New York can be complicated.  Make sure you get everything in writing and keep all of the documents from the deal.  If your car keeps on breaking down despite repeated repairs, check your warranty coverage. If it doesn’t make sense, have them explain it.  If you think you are being taken advantage of or if the car is having problems that just don’t seem right for a car you just bought, contact a lawyer because you may be able to do something about it.

For more information or to schedule a consultation, please email me at David@KasellLawFirm.com or call (718) 404-6668. I look forward to working with you!

 

This material may be viewed as attorney advertising and does not constitute legal advice. This information does not create an attorney-client relationship between you and the author. This article strictly represents the personal views of the author on the date it was written and such views are subject to change without notice. 

FEDERAL PROTECTION FOR DEFECTIVE CARS NOT COVERED BY NEW YORK LEMON LAW: THE MAGNUSON-MOSS WARRANTY ACT

After many expensive auto repair bills and wasted company time at the mechanic’s, your car is certainly a “lemon”. Does your defective commercial or personal car fall outside the protections of New York’s Lemon law? The federal Magnuson-Moss Warranty Act may offer protection for consumers with defective cars that do not qualify as a “lemon” under New York state law. Further, the federal lemon law act can better assist commercial consumers with defective cars used for commercial rather than personal use because New York’s Lemon law does not apply to commercial vehicles. Now is the time to act!

What is the Magnuson-Moss Warranty Act?

Magnuson-Moss is a federal law that protects consumers that purchase any product that costs more than $25 and has a written warranty. A warranty is a promise from a manufacturer or seller that a product is sound, that the manufacturer or seller guarantees to correct product failures. Under the federal act, Manufacturers and Sellers that provide written warranties on consumer products must provide consumers with detailed information about warranty coverage and allow consumers the opportunity to compare warranty coverage before buying the product.

How does the federal Magnuson-Moss Act apply to car consumers?

To qualify under the Magnuson-Moss Act, a vehicle purchaser must have a written warranty on their car that is still defective despite numerous repairs, in order to sue the manufacturers for breach of warranty. Unlike New York lemon law, the federal lemon law does not place mileage restrictions on cars for consumers to obtain protection. In other words, the Magnuson-Moss Act offers protection to consumers with car defects outside of the New York Lemon law provisions.

Does New York Lemon law apply to my car?

New York Lemon Law has a four year statute of limitations from the delivery date of the car to the start of a filing a claim under the law. Consumers should check if their new or used car is protected subject to limitations of New York Lemon law listed below:

New Cars Covered by NY Lemon Law Used Cars Covered by NY Lemon Law
  • Covered by a warranty at original delivery;
  • Was purchased, leased or transferred within the earlier of 18,000 miles or two years from the date of original delivery; AND
  • Was either purchased, leased or transferred in New York State or is presently registered in the state; AND
  • Is used primarily for personal purposes.
  • At least 4 repairs or 30 days out of service within 18,000 miles or 2 years, whichever comes first.
  • Purchased, leased or transferred after the earlier of 18,000 miles or two years from original delivery; AND
  • was purchased or leased from a New York dealer; AND
  • had a purchase price or lease value of at least $1,500; AND
  • has been driven less than 100,000 miles at the time of purchase/lease; AND
  • is used primarily for personal purposes.
  • 3 repairs; or 15 days out of service within:
    • 90 days or 4,000 miles for vehicles with 18,001 – 36,000 mile at time of delivery.
    • 60 days or 3,000 miles for vehicles with 36,001 – 79,999 miles at time of delivery.
    • 30 days or 1,000 miles for vehicles with 80,000 – 100,000 miles at time of delivery.

Protect Yourself and Your Lemon Law Rights

The bottom line is, defective cars are expensive and fighting for your consumer rights under New York or federal law can be complicated.  Make sure you get everything in writing and keep all of the documents from the deal.  If your car keeps on breaking down despite repeated repairs, check your warranty coverage. If it doesn’t make sense, have them explain it.  If you think you are being taken advantage of or if the car is having problems that just don’t seem right for a car you just bought, contact a lawyer because you may be able to do something about it.

For more information or to schedule a consultation, please email me at David@KasellLawFirm.com or call (718) 404-6668. I look forward to working with you!

This material may be viewed as attorney advertising and does not constitute legal advice. This information does not create an attorney-client relationship between you and the author. This article strictly represents the personal views of the author on the date it was written and such views are subject to change without notice. 

Car Loans and The Truth In Lending Act

What is TILA?

Truth In Lending Act cases are complicated and require competent legal representation. If you believe you have a Truth In Lending Act case, consult an attorney for more information.

The Truth in Lending Act (TILA) is a federal law that protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans. Also, TILA allows parties bringing a TILA claim to have their cases heard by federal district judges.

Car Loans and the Truth In Lending Act

In Pierre v. Planet Auto. Inc., Plaintiff Pierre (“Buyer”) agreed to purchase the car, a 2012 Suzuki Kizashi, for around $25,000.  However, in order to secure an automobile loan from Planet Automobile (“Dealer”), the Dealer required the Buyer to “buy down” the interest rate of her loan by purchasing additional products for the car.  As a result, the final purchase price was almost $34,000, an eye-popping $9,000 above the agreed price of $25,000.  During the sale, the Dealer gave the Buyer four documents, each with a different listed price. The Buyer was concerned that the different prices on the four documents illegally increased the price of the car and inaccurately disclosed the cost of the loan.

So, the Buyer sued both the Dealer and American Suzuki Financial Services (“Suzuki”) for federal law violations in the Truth in Lending Act and Magnuson Moss Consumer Warranty Act, along with New York state-law claims of fraud and false advertising.
Suzuki filed a summary judgment motion asking the magistrate judge for a decision before the trial began. The magistrate judge granted summary judgment, deciding in favor of Suzuki on both federal and state law claims. Since only Suzuki filed a summary judgment motion, the magistrate judge’s decision meant that the lawsuit was now between the Buyer and Dealer. Seeking justice against Suzuki, the Buyer appealed the magistrate’s decision and the case went up to the United States District Court of the Eastern District of New York for review.
District court judge Margo K. Brodie had to decide whether or not to uphold the magistrate judge’s decision. Judge Brodie concluded that the factors of “economy, convenience, fairness, and comity” weighed in favor of reversing the magistrate’s decision to allow the Court to review the Buyer’s state law claims against Suzuki. Further, Judge Brodie reserved decision on the dismissal of the federal Truth In Lending Act claim, which means she may well reverse given what appears to be a fairly clear-cut TILA violation.  If so, what once looked like a defeat for the Buyer could turn out to be a victory.
Act Now! 

If you don’t bring your Truth in Lending Act case within one year from when you enter into the contract, any lawsuit would be time-barred, meaning you can’t sue.

Protect Yourself and Your Rights from Deceptive Dealers

The bottom line is, cars are expensive and financing a car can seem complicated.  Make sure you get everything in writing and keep all of the documents from the deal.  If the dealer or its salesperson is telling you something but refusing to document it walk away.  If it doesn’t make sense, have them explain it.  If you think you are being taken advantage of or if the car is having problems that just don’t seem right for a car you just bought, contact a lawyer because you may be able to do something about it.

For more information or to schedule a consultation, please email me at David@KasellLawFirm.com or call (718) 404-6668. I look forward to working with you!

This material may be viewed as attorney advertising and does not constitute legal advice. This information does not create an attorney-client relationship between you and the author. This article strictly represents the personal views of the author on the date it was written and such views are subject to change without notice. 

3 Common Consumer Securities Arbitration Claims

What is Securities Arbitration?

Different from lawsuits with a judge and jury, arbitration allows parties to resolve disputes through a neutral third-party called an arbitrator who has knowledge in the areas of disagreement. Arbitrations are now frequently used by commercial businesses as a fast and inexpensive process to resolve complicated disputes.

The Financial Industry Regulatory Agency (FINRA) is a regulatory agency that oversees the securities industry. Every brokerage firm, their representatives and stock brokers are all registered with FINRA. Under the registration agreement, brokers are bound by the FINRA Code of Arbitration Procedure to arbitrate disputes with customers and further, a customer can force brokers to arbitrate disputes.

The Top 3 Common Consumer FINRA Claims:

  1. Unsuitable Investments
    FINRA rules require that your broker must have a reasonable basis to believe that a transaction or investment strategy that your broker recommends is suitable for you. Sometimes called “Know Your Customer” rules, your broker must know the particulars of your finances. Using industry knowledge and litigation experience we can help determine if you were victimized by unsuitable investments.
  2. Churning
    Churning occurs when a broker buys and sells securities in an account mainly for the purpose of generating commissions that benefit the broker. It may not matter if the trades are profitable for you if they were undertaken for the purpose of generating commissions. We can help evaluate whether you were a victim of account churning and what amount of damages you suffered as a result.
  3. Mutual Fund Abuses
    It is widely understood that mutual funds are not suitable for use as short term trading vehicles but that may not stop an unscrupulous broker. Sometimes a mutual fund held for several years can be the subject of abuse because of back-end loads — fees charged where mutual fund shares are sold before they have been held for a certain length of time. Other abuses can come from failing to advise a customer about breakpoints for certain dollar amounts of investment transactions. If any of these things happened to you, you may be able to recover from the broker or his firm.

For more information or to schedule a consultation, please email me at David@KasellLawFirm.com or call (718) 404-6668. I look forward to working with you!

This material may be viewed as attorney advertising and does not constitute legal advice. This information does not create an attorney-client relationship between you and the author. This article strictly represents the personal views of the author on the date it was written and such views are subject to change without notice.