Business Bankruptcies
Denny Hecker Automotive Group, formerly one of Minnesota’s largest car dealers, went bankrupt earlier in the continuing American financial crisis and now they are under a criminal investigation. Minnesota State Patrol launched the investigation this week after receiving reports from consumers that the defunct automobile car dealership failed to pay off liens on vehicles that were traded in and that the titles and license plates for vehicles purchased were never received. This scenario is being seen in troubled businesses throughout the country. As more auto businesses continue to fail in the domino effect from the cuts made by the auto industry giants in their bankruptcy throws the wholesale disregard and lack of ethical business behavior is trickling down to the everyday consumer in yet another form of financial woes. The old adage, “Buyer beware!” has to be the by-word in all purchases made today.
Chrysler, who went under bankruptcy proceedings in April, will be resuming automobile production within the next two weeks in seven plants. On May 4, 2009 Chrysler shut down all of the Chrysler plants shortly after officially declaring bankruptcy. Chrysler says June 29, 2009 is the restart date for parts-stamping , engine and transmission factories as well as the Sterling Heights and Warren, Michigan; St. Louis; Toledo, Ohio; Brampton and Windsor, Ontario, Canada; and Toluca, Mexico factories.
Consumer Bankruptcies
Child Support Services is feeling the effects of the bankrupt American epidemic in the form of unpaid child support. The San Mateo, California contempt orders against parents that failed to pay court ordered child support has increased over 125% in the six month period ending in the first quarter of 2009 over the same time period in 2008. With the jobless rate continuing to climb that figure is estimated to exceed 130% now. New Hampshire and Texas are seeing similar figures. Unemployment checks are a leading source of child support withholdings and when the unemployment benefits run out there is often no other resource to draw from. The parent with custody of the children are filing for child support increases to offset loss of income from their jobs at the same time the paying parents are filing for modified payments due to their lack of income. Arkansas has seen a 47% increase in the number of parents who have received approval to modify payments from July 2008 to March of 2009.
Identity Theft and Fraud News
Louisiana had a proposal before their Senate this week that reflects the concern across the nation on how to fund the online crime investigations needed to stem the rampant fraud and identity theft schemes currently populating the World Wide Web. The proposal asked for a 10 cent charge to be added the monthly internet service bills. Money collected from the charge would go to the state attorney general’s office to be used for the investigation of internet based crimes that include identity theft and other scams that bilk naive Americans of millions of dollars. The Louisiana Senate’s commerce committee voted to defer the bill. The question remains, how are the investigations into these crimes going to be funded?
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