Yesterday, as part of “Operation Loan Lies,” the FTC and 19 states filed 189 lawsuits, cease-and-desist orders, and other legal actions to shut down loan modification consultants who prey on desperate homeowners. The scammers offer to help solve foreclosure problems for a hefty fee; instead, they fail to modify the loan at all while collecting payments for their services, sometimes even encouraging homeowners to stop communicating with their lenders completely or to send payments to the consultants instead of the bank.
Government Policy
Judge Greenlights Class Action Against DirecTV
By 7.16.09
A California Superior Court judge has just been given the go ahead to a class action lawsuit against DirecTV over their practice of charging early termination fees.
Genius TSA Officer & Baggage Handler Caught Stealing From Decoy Luggage
By 7.15.09
Two workers at JFK airport fell into a trap set by Delta Airlines and the TSA, says the Daily News. The two men are accused of stealing a Macbook Air and a T-Mobile Sidekick from decoy luggage. The first man, a TSA officer, was videotaped rummaging through a Miami-bound suitcase in an airport screening room while a baggage handler watched.
$500,000 In Consumer Refunds From Rite Aid After False Cold Remedy Advertising Suit
By 7.14.09
Remember the class-action lawsuit against the makers of cold-and-flu-preventing magic potion Airborne? Airborne claimed that it could prevent or shorten colds and flus, without any actual scientific evidence to back those claims up.
Minnesota Attorney General Punches National Arbitration Forum In The Face
By 7.14.09
Minnesota has filed a lawsuit against the National Arbitration Forum, alleging fraud, false advertising, and deceptive trade practices.
Emailfinder.com Sells Wrong Info, Now Woman Has To Show Up In Small Claims Court
By 7.14.09
Some guy in London fell for an online iPhone scam in January, so he paid $150 to emailfinder.com to track down the identity behind the Hotmail account of the person who scammed him. Now he’s suing Kim, who is completely unrelated to this story (or was, at least), for $4,368 to cover the $1200 he lost on the iPhone scam plus travel expenses for him to show up in small claims court here in the U.S.
By 7.14.09
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Best tweet of the day: “my bank was just held up- with me in it. HSBC 34 and 8. also my whole trackball is GONE!!! im locked in the bank still.” [Gothamist] (Thanks to John!)
Bank Manager Helps Thwart $25K Con Of 80-Year-Old
By 7.14.09
A manager at Chemical Bank in Midland, Michigan, grew suspicious when he saw Marion Case, an 80-year-old customer, withdraw $25k from her account last December. Case told him she was going to mail it to someone who would then pass it along to her son. The manager, Carl Ahearn, “remained suspicious. He followed her as she walked to the nearby post office, where Case bought an Express Mail envelope addressed to a man in New Jersey. Ahearn shared his concerns with postal officials, who opened an investigation and arrested a man Monday for fraud.”
Is Bottled Water Safer Than Tap Water? Please…
By 7.12.09
Bottled water isn’t any safer than tap water, and could actually be more dangerous, according to a report from the Government Accounting Office. The big difference lies in the government regulator: tap water is covered by the Safe Water Drinking Act, administered by the aggressive and powerful Environmental Protection Agency, while bottled water falls under the Food, Drug, and Cosmetic Act overseen by the powerless anything-goes industry-lovers over at the Food and Drug Administration.
Delta Fined $375,000 For Bumping Passengers
By 7.11.09
The Department of Transportation smacked Delta with a $375,000 fine for ignoring federal laws that require airlines to offer bumped passengers adequate compensation and an explanation of their rights. Inside, a listing of your options if an airline tries to bump you off their flight…
Comcast Installer Robs Check Cashing Store
By 7.9.09
Hey dumb crooks, if you’re going to rob a place be sure not to wear a uniform with your company’s name on it and drive a van plastered with a nationally recognized logo. It makes it really easy for the police to catch you. On second thought, do just that, please.
By 7.8.09
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More than one million play yards made by Kolcraft and sold under a variety of names have been recalled. Brands include Kolcraft, Carter’s, Sesame Street, Jeep, Contours, Care Bears and Eric Carle. There’s a problem with the side rail, and children can fall out. Check to see if yours is affected at the CPSC.
By 7.8.09
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The FDA has issued a new ruling that says egg producers must “test regularly for salmonella and buy chicks from suppliers who do the same,” and that eggs “will have to be refrigerated on the farm and during shipment” as well as by wholesalers and in the store. The rule is meant to cut down on the number of egg-related salmonella cases nationwide, which currently are around 142,000 a year. [Washington Post] (Photo: Andreas Kollegger)
Gym Member Catches Thief In The Act; Gym Staff Too Lazy To Help
By 7.8.09
We’re pretty impressed that this member of the Washington Sports Clubs at the DC USA Mall helped catch a thief. We’re a little stunned, however, that the staff at the gym let the guy enter in the first place without making sure he had a membership, or that they did nothing to stop him as he ran out with someone behind him yelling, “Stop! Thief!” Thankfully an off-duty cop pursued and apprehended the guy, and the member got back his wallet. But what’s the point of a gym membership and a staff if you’re completely on your own once you get there?
The Federal Government Has Had Enough With Cell Phone Exclusivity
By 7.7.09
Annoyed by cell phone exclusivity deals? The federal government may agree with you. The FCC and Department of Justice are both looking into the issue, concerned about limitations on consumer choice and good old-fashioned competition.
The Duct Tape Shoplifters: Coming Soon To A Mall Near You?
By 7.7.09
Watch out for organized, highly trained teams of shoplifters in your local mall. They aren’t small-time operators—they stole $23,000 worth of bras and panties from a West Virginia Victoria’s Secret. No, really.
Is The NRA Trying To Trick Its Members Into Paying For This DVD?
By 7.7.09
Arthur, a member of the NRA, received a promotional DVD out of the blue about six months ago. As we’ve discussed before and as Arthur points out, if you’re sent something that you never ordered, you don’t have to pay for it, return it, or acknowledge it. The NRA said as much in their letter to Arthur.
By 7.7.09
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Pez Candy is suing the Pez musuem in Burlingame, CA for copyright infringement. The museum has a 7-foot-tall Pez dispenser that they want destroyed. Maybe Pez should make a new candy flavor called “Copyright Overkill” that tastes like all the joy has been removed. [Laughing Squid] (Thanks to sizer!) (Photo: Hryck.)
