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Know your Texas consumer protection codes, Part two of series

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Texas has some surprising (and very agreeable) consumer protection codes on the books that you as a consumer should be aware of. Most of these codes are “tie-in statutes,” which means that they can be brought under the Texas Deceptive Trade Practices Act (DTPA). Since the DTPA allows very favorable remedies, this is a definite advantage to the consumer. Scutt Law, PLLC will be presenting and explaining a few of the tie-in statutes at a time in installments, so that you the consumer are aware of the protections afforded to you under these Acts. This installment covers the removal of unauthorized vehicles from parking facilities, rent-to-own agreements and self-storage facility liens.

Removal of Unauthorized Vehicles from Parking Facility or Public Roadway Act [Tex. Trans. Code Ann. Section 684.086]: This Act protects consumers against the wrongful towing of a motor vehicle, or the charging of unreasonable fees for such towing. The Act applies to any public or private property that is used for restricted or paid parking of motor vehicles.

Under the Act, a parking facility owner may remove a vehicle from a facility only if the owner provides actual notice to the consumer. Notice requires that signs be posted on the property, and must comply with the requirement of the Act regarding size, location and content. For example, the sign must state “unauthorized vehicles will be towed at owner’s expense,” and contain the international symbol for towing and a telephone number that is answered 24 hours a day. Additionally, a parking facility owner may not accept anything of value from a towing company in connection with the removal of a vehicle from a parking facility, and he or she may not have a monetary interest in that towing company.

The Rental-Purchase Agreements Law [Tex. Bus. & Com. Code Chapter 92, Sections 92.001-92.202]: This law is designed to regulate rent-to-own agreements and the advertising of such agreements. The main goal of this law is to make sure that consumers are fully informed of the true nature of the transaction and the real costs involved. Think of an agreement with a rental outlet that allows a consumer to rent a television set. That agreement would be subject to this law if, for instance, the agreement provides that after a period of 24 consecutive monthly payments, the consumer will become the owner of the television set.

The law protects consumers by requiring that rent-to-own agreements be written in plain English (without legal jargon) and in any other language used by the merchant in an advertisement related to the agreement. The agreement must make full disclosure to the consumer of the terms of the agreement, and limits certain unconscionable clauses that may be inserted into the agreement by the merchant. The agreement also must disclose whether the merchandise is new or used, the amount and total of payments, the cash price of the merchandise, and the amount the consumer may be responsible for if the merchandise is damaged or destroyed.

Self-Storage Facility Liens Act [Tex. Prop. Code Ann. Sections 59.001-.046]: This Act is designed to protect consumers by regulating the process by which a consumer’s property is sold to satisfy unpaid rent at a self-storage facility. The Act provides that a lien (an official claim or charge against property or funds for payment of a debt or an amount owed for services rendered) attaches to stored property from the date the tenant places the property in the self-storage facility. This lien takes priority over all other liens on the same property, so even if the consumer still owes money for the purchase price of that property (for instance, for a bedroom set), the self-storage facility may seize the property, anyway. The consumer may redeem the property that has been seized prior to its sale by the storage facility by paying the amount owed the facility plus any reasonable expenses incurred by the seizure.

However, the storage facility may not seize the consumer’s property without a court judgment unless the original contract between the consumer and the facility includes a provision authorizing the seizure and sale in conspicuous bold or underlined print. If the provision is present in the original contract, the storage facility must deliver a notice to the consumer prior to seizing the consumer’s property. It is important to note that the requirements under this Act may not be waived by the consumer.

Texas has some very beneficial consumer protection laws, and it is to your advantage as a consumer to know your rights and to act on them. Therefore, you should contact an attorney if you feel you have a claim under the DTPA or any of the tie-in statutes.

*Disclaimer: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

Texas consumers: Know your rights

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Consumers in Texas are protected by the Texas Deceptive Trade Practices and Consumer Protection Act (hereinafter “DTPA”). The purpose of the DTPA is to “protect consumers against false, misleading, and deceptive trade practices, unconscionable actions, and breaches of warranty and to provide efficient and economical procedures to secure such protection.” [DTPA §17.44] This means that Texas consumers are not limited to recourse under contract law or common law fraud, which often lead to insignificant remedies.

Are you a consumer? Yes, if you are “an individual, partnership, corporation, this state, or a subdivision of this state who seeks or acquires by purchase or lease any goods or services.” [DTPA §17.45(5)] However, you are not a consumer for purposes of the DTPA if you are a business consumer with assets of $25 million or more. It is important to be aware that the consumer does not have to be the one who actually pays for the the goods or services. Therefore, a child can be a consumer with respect to goods and/or services paid for by the parent, and an employee can be a consumer with respect to goods and/or services paid for by the employer.

“Goods” includes tangible property, inventory and real estate. “Services” excludes merely lending money as well as the rendering of a professional service, the essence of which is the providing of advice, judgment or opinion. However, the professional service exemption does not apply to express misrepresentations, breaches of express warranties, failures to disclose, or unconscionable actions or courses of action. Therefore, a plastic surgeon who tells his patient that his face will look exactly like George Clooney’s face after the operation can be sued under the DTPA for breach of an express warranty, if after the surgery the patient does not look exactly like Mr. Clooney.

It should be noted that the DTPA does not apply to a cause of action arisng out of a transaction, a project, or a set of transactions relating to the same project that involves a total consideration provided by the consumer of more than $500,000. However, this does not apply to a residence, so the DTPA can apply to a home worth more than $500,000.

Keep in mind that there are some prerequisites to a DTPA claim. The consumer must give the defendant 60 days written notice before filing a claim, and the defendant must be given 60 days from receipt or 90 days after answering to propose a settlement offer to the consumer. Also, an action under the DTPA must be brought within two years after the date on which the false, misleading, or deceptive act or practice occurred or within two years after the consumer discovered or should have discovered the occurrence. Therefore, it is important that consumers know their rights and act quickly.

There are many more nuances to the DTPA, too many to mention here. However, the most important point is that consumers need to be mindful that the Texas legislature has a very effective consumer protection act on the books, and legal counsel can assist consumers in protecting their rights under the DTPA. Keep in mind when deciding whether or not to contact an attorney that in addition to damages and equitable relief, the DTPA mandates the award of attorney’s fees if the consumer prevails. So, if you are a consumer and you feel that you have a claim under the DTPA, you should contact an attorney to explore your options.

*Disclaimer: The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.