Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, July 30, 1990 TAG: 9007280307
SECTION: EXTRA PAGE: 9 EDITION: METRO
SOURCE: Tammy Poole
DATELINE: LENGTH: Long
A new law relating to\ check cashing states that merchants no longer can record a consumer's credit card number on his check during a sales transaction. A business may require a customer to show a credit card as proof of credit-worthiness, financial responsibility or identification. In such cases, the type of credit card, the issuer, and the expiration date may be recorded on the check. Businesses also have the right to deny a consumer's check if he or she refuses to present a credit card.
A new consumer law on \ hearing aids gives consumers the right to return a hearing aid for any reason within 30 days, provided it is still in satisfactory condition. The consumer is entitled to a replacement or refund of all charges paid. The hearing aid specialist may, however, deduct reasonable costs for medical, audiological, and hearing aid evaluation services.
The new\ Health Spa Act requires health spas to pay higher registration fees and to post larger bonds or letters of credit with the state. Also health spas selling memberships of less than three months now are subject to provisions of the act. Such spas had been excluded in the previous law. The new law also strengthens the state's investigative powers in this area, and requires a designated location to be named by each health spa where all contracts are to be kept. Spas selling contracts on a prepayment basis must disclose in the contract the date on which the spa will open. The date must not be more than 12 months from the signing of the contract. If the owner previously owned a spa which closed and didn't refund members' money or provide alternate facilities, this information must be disclosed in large bold-faced type on the front of the contract.
The law relating to\ pre-need burial contracts and perpetual care funds now requires cemeteries to register with the division. Cemeteries owned and operated by cities, counties, towns, churches or nonstock corporations are excluded from this provision.
A new area of consumer fraud is\ third-party auto leasing in which a middleman charges two consumers exorbitant fees for setting up a deal between them. Typically this deal involves one consumer who wants to get out of making payments and someone who cannot afford the financing for a car. While the middleman makes a tidy profit, the two consumers may be experiencing a number of problems including responsibility for paying for the car's title and tags, insurance, property tax and pressure from the financing company or lien holder, many of whom balk at transferring a loan. The new law requires the middleman to obtain written permission from the lien holder or creditor unless he tells both parties that he has not gotten this permission.
The law relating to\ motor vehicle buyer's orders was amended to entitle each consumer who purchases an automobile to receive a buyer's order from the dealer. Each prospective buyer should be given a copy of the buyer's order form during the negotiating phase of a sale and before any sales agreement is made. The buyer's order must contain:
The name and address of the person to whom the vehicle was sold or traded.
The date of the sale or trade.
The name and address of the motor vehicle dealer selling or trading the vehicle.
The make, model year, vehicle identification number and body style of the vehicle.
The sale price of the vehicle.
The amount of any cash deposit made by the buyer.
A description of any vehicle used as a trade-in, and the amount credited the buyer for the trade in.
The amount of any sales and use tax, title fee, uninsured motor vehicle fee, registration fee, or other fee required by law. Each tax and fee must be listed separately.
The balance due at settlement.
Any processing fees, and the amount charged by the dealer, if any, for processing the transaction.
Any type of dealer's business license tax, and the amount charged by the dealer (if any.)
If the sale or exchange of the automobile doesn't include a motor vehicle liability insurance policy, the dealer must mark on the face of the bill of sale "No liability insurance included."
The Department of Motor Vehicles must approve a buyer's order form. Each dealer must file its buyer's order form, on which the processing fee should be stated, along with its license application or renewal.
If a processing fee is charged, the dealer must disclose this fact and the amount of the processing fee to its customers by posting a sign. The sign must be posted clearly and conspicuously in the public sales area of the dealership. It must be at least eight and one-half inches by 11 inches.
For more information about these laws, contact the division at (800) 552-9963 and ask for a copy of the "There is a law" flier explaining the particular law you are interested in.
by CNB