Michael

Proposed Rule Stops Colleges From Stripping Students Of Their Right To Sue

A recent study found that almost all of the nation’s largest for-profit college chains have enrollment agreements that block students from suing the school and prevent them from joining in class actions against these colleges. Following the 2015 bankruptcy and collapse of mega-chain Corinthian Colleges Inc., the sagging numbers at University of Phoenix, last week’s death knell for Brown Mackie College, and pending investigations and lawsuits against ITT and others, the Department of Education has decided that maybe these schools — which reap billions in federal aid each year — should probably have to be held accountable in a court of law when they screw students over. [More]

Adam Fagen

210 Law Professors Agree: Banks Should Not Be Able To Sidestep Legal System When They Break The Law

Earlier this month, the Consumer Financial Protection Bureau proposed rules that would make it more difficult for banks, credit card companies, and other financial services to stripping customers of their constitutional right to file lawsuits against these companies. The 90-day public comment period has finally opened on this rule, and the first one comes from a chorus of 210 law professors who all agree that consumers deserve the right to their day in court. [More]

University Of Phoenix To Stop Stripping Students Of Their Right To Sue School

University Of Phoenix To Stop Stripping Students Of Their Right To Sue School

A recent study found that student enrollment agreements at virtually all of the nation’s biggest for-profit colleges have forced arbitration clauses that strip students of their rights to file a lawsuit against the school, and in most cases bar students from joining their similar or identical disputes together. Under pressure from lawmakers and consumer advocates who questioned how these schools could continue to take billions in federal aid while trying to avoid accountability in the courtroom, the nation’s biggest for-profit educator has decided to stop using the controversial arbitration clauses. [More]

Ronald M. Eikelenbloom

The 3 Myths Banks Are Using To Defend Their “Get Out Of Jail Free” Cards

Earlier this month, the Consumer Financial Protection Bureau proposed rules intended to restore some of those constitutionally granted rights that the Supreme Court has stripped away in recent decades. Faced with the possibility of having to be held responsible for their bad actions, some industry groups are coming out in force against the rules, presenting the same laughably thin argument that consumers ultimately benefit by not being able to sue the companies they do business with. [More]

TLFagan

Proposed Rules Would Take Away Banks’ “Get Out Of Jail Free” Card

Many bank accounts, and almost all credit cards, wireless services, private student loans, and payday loans contain clauses in their contracts that strip consumers of their right to sue these companies, and their right to join others in a class action, effectively allowing businesses to sidestep the legal system. While lawmakers in Congress debate the issue, and the U.S. Supreme Court has repeatedly given its approval to these practices, the Consumer Financial Protection Bureau is making good on its pledge to restore consumers’ constitutional right to having their day in court. [More]

Screwed Over By A For-Profit College? You Probably Signed Away Your Right To Sue

Screwed Over By A For-Profit College? You Probably Signed Away Your Right To Sue

When Corinthian Colleges Inc. collapsed, leaving thousands of students in the lurch with student loan debt and credits that they didn’t know would be usable at other schools, they were generally unable to sue the failed for-profit educator because the students had unwittingly signed away their right to a jury trial or class action. CCI wasn’t the only for-profit operator with this anti-consumer practice, and a new report tries to get a grasp on the scope of the problem. [More]

Take This Weight-Loss Supplement And Give Up Your Right To A Jury Trial

Take This Weight-Loss Supplement And Give Up Your Right To A Jury Trial

If you wanted to get an idea on the ridiculous overuse of forced arbitration, here’s one of the more absurd examples we’ve seen — a weight-loss supplement with the added non-benefit of stripping users of their right to sue the company that made the pills. [More]

New Bill Could Stop Cable & Phone Companies From Taking Away Customers’ Right To Sue

Kat Northern Lights Man

Five years ago today, the U.S. Supreme Court sided with AT&T, ruling that companies could use a couple paragraphs of legalese buried deep in unchangeable user agreements to strip customers of their right to file a lawsuit. An upcoming piece of legislation seeks to restore that right for telecom customers. [More]

You Can Now Opt Out Of Snapchat’s Arbitration Clause — Here’s How

You Can Now Opt Out Of Snapchat’s Arbitration Clause — Here’s How

Popular messaging service Snapchat has had a binding arbitration clause — which takes away a user’s right to sue the company — in its user agreement since 2014. Yesterday, Snapchat updated its terms to give users 30 days to opt out of this anti-consumer restriction on their legal rights. [More]

Court Reminds Us All: You Have No Right To Sue Your Phone Company

jetsetpress

If you don’t like your wireless company’s service, or your current rate plan, you’re free to change providers. But if you think your wireless provider is breaking the law, you can’t sue the company; and it doesn’t matter which of the four major carriers you have, because they all strip their customers’ of their legal rights. [More]

GrubHub/Seamless Hates Its Customers, Strips Them Of Legal Right To Sue

GrubHub/Seamless Hates Its Customers, Strips Them Of Legal Right To Sue

If you have a legal dispute with online food delivery portal GrubHub (or its Seamless subsidiary), you will soon lose the ability to resolve that matter in a court of law. And if there are others out there with the same problem as you, you’ll each have to fight GrubHub on your own because the company has decided to view its all of its customers as potential litigants. [More]

Sapurah Lashari

Advocates: Schools Using Forced Arbitration Shouldn’t Receive Federal Aid

For-profit colleges that require students to sign away their legal rights, forcing them into arbitration in order to enroll in classes should not receive federal financial aid, a coalition of 47 consumer advocacy groups urged acting Secretary of Education John King on Friday.  [More]

You Will No Longer Need To Go To Seattle To Resolve A Starbucks Card Dispute

The current terms of the Starbucks Card agreement say that Starbucks can force customers to travel to Seattle to have their disputes resolved.

As things stand now, if you have a legal dispute with Starbucks about your Starbucks Card, the coffee company could force you to travel to Seattle to resolve the matter — not in court, but through the shadowy, unfair process of binding arbitration. However, Starbucks is about to adopt new policies to be more flexible about the location, and give you 30 days to opt out of signing your rights away. [More]

Are You Unintentionally Signing Away Your Elderly Parents’ Right To Sue Their Nursing Home?

Are You Unintentionally Signing Away Your Elderly Parents’ Right To Sue Their Nursing Home?

When an elderly parent is no longer able to make sensible medical decisions for themselves, an adult child is often named a medical proxy to handle these important calls. But does this life-or-death authority over a parent’s medical care carry over to things like signing legally binding contracts, and possible signing away your, or your parent’s, right so sue their nursing home? [More]

Senators: No More Federal Funding To For-­Profit Colleges That Strip Students Of Legal Rights

Senators: No More Federal Funding To For-­Profit Colleges That Strip Students Of Legal Rights

If your college breaks the law, you should be able to pursue a legal action in court. But ­­following the lead of banks, wireless providers, and cable companies some for-profit colleges have been stripping students of their legal rights and forcing them into arbitration. These schools should not receive federal funding, says one group of lawmakers. [More]

(afagen)

Bill Aims To Restore Consumers’ Legal Rights Stripped Away By Supreme Court Rulings

In recent years, a narrow majority of the U.S. Supreme Court has repeatedly sided against consumers’ access to the justice system, concluding that a 90-year-old law gives companies the authority to effectively skirt the legal system by preempting customers’ lawsuits. That’s why some legislators have decided it’s time to change that law. [More]

Adam Fagen

Got A Fitbit Or Other Gadget For Christmas? It’s Time To Opt Out Of Mandatory Arbitration!

Customers have filed a class action suit against Fitbit, claiming that the company’s Charge HR and Surge fitness bands don’t accurately measure users’ heart rate during vigorous exercise. We’ll keep an eye on the lawsuit and let you know if it goes anywhere, but it probably won’t, and that’s what got our attention. The users filed a class action against Fitbit despite signing (well, clicking) away their right to do so when they registered their devices. [More]

Debt Collectors Can Sue You, But Court Might Not Let You Sue Debt Collector Back

Debt Collectors Can Sue You, But Court Might Not Let You Sue Debt Collector Back

A new report claims that a growing number of debt collectors are trying to exploit a legal loophole that allows them to bring potentially frivolous lawsuits against alleged debtors, but bars those defendants from bringing their own legal action against the debt collector. [More]