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Southeast Louisiana Legal Services 2017 Annual Report

Protecting Vulnerable Consumers

Mr. H had been working at Wal-Mart for years. There was
no reliable bus service in his rural community, so he
walked back and forth about a mile every day. Now in his
50’s, this was getting hard for him. He saved his money
to buy a car. The salesman at a used car dealership
assured him that the car he picked out was in good
condition and had never been in an accident. Mr. H.
bought it for $5,000. The salesman persuaded Mr. H. to
spend $2,000 more for an extended warranty. Mr. H.
made a $2,000 down payment and financed the rest.

About two weeks later, the car became inoperable. Mr. H.
took it to a mechanic who gave him bad news -- the car was in a previous accident and needed expensive
repair work. To top that off, the $2,000 warranty he purchased was no good. Why? The car had more
100,000 miles on it as it had at the time of sale so repairs were excluded under the warranty. On learning
this, Mr. H got in touch with the finance company. The company told him they would investigate and that
the monthly note payments would be suspended while the investigation was underway. The car was in the
repair shop for months. Then the finance company repossessed the car and sued Mr. H for the balance
owed threatening to garnish his wages.

Mr. H sought SLLS' help after he was sued for over $10,000 in principal, interest, and attorney fees. We
sued the car dealership for unfair trade practices and represented him against the finance company. We
obtained a $5,000 judgment against the dealer, got the balance paid off, avoided garnishment of his wages,
and helped him avoid future credit problems stemming from this improper lawsuit. Mr. H. has now saved up
for another car and decided to have us review things first.

Safeguarding Hard-Working Taxpayers

A retired couple sought the help of SLLS’ Low-Income
Taxpayer Clinic. They faced a large tax liability for two
years. This occurred because the husband had a business
which dissolved when he retired. His last business return
was audited. The tax preparer promised to send the
business records to the IRS for the audit. The tax preparer
failed to do so and also did not inform the couple about
their appeal rights. The result was that they owed the IRS
and the state of Louisiana over $50,000. In addition, the
state of Louisiana suspended the husband’s driver’s
license.

SLLS submitted financial information to the IRS and the state to show that our clients had limited income
and no valuable assets. As a result, both the IRS and the state agreed to settle the liability for $1 each and
the husband’s driver’s license was reinstated. Now the couple can enjoy their golden years.

2017 Annual Report