When John signed up for a Discover card a few months ago, he noticed an interesting item in the fine print—he could opt out of binding arbitration if he sent in a written request that contained a few lines of necessary info and his signature. John followed the instructions, but Discover rejected it. Since then they’ve rejected his request a second time, failed to call him back when promised, and transferred him to CSRs who don’t know what the word means. The latest news: now that 30 days have passed, he’s no longer eligible to opt out. John’s thinking about canceling the card.
lawsuits
AT&T's Arbitration Clause Strips Consumers Of Their Rights
By 9.3.08
We just love the word unconscionable. You know who doesn’t love it? AT&T. Their mandatory binding arbitration clause was ruled unconscionable by the state Supreme Court of Washington, after AT&T tried to prevent a consumer who believed he was being systematically overcharged from filing a class action lawsuit.
Tired Of Telemarketers? Try Suing Them
By 8.29.08
In yesterday’s post on rude telemarketers and the people who hang up on them, reader/advice giver Amy Alkon said she just successfully sued a telemarketer in Santa Monica Small Claims Court—and won! If you’re one of those unlucky people who can’t get the calls to stop, here’s how she did it.
Front Loading Washers Have A Love Affair With Mold
By 8.28.08
Consumer Reports says that despite the fact that front-loading washers are more efficient than traditional top-loading washers, they do have one major drawback. Mold. And the problem is severe enough that there have been several class action lawsuits filed against LG, Whirlpool, and Sears, whose Kenmore front-loaders are made by Whirlpool.
So-Called PBS "Production Company" Sues Blogger For $20 Million
By 8.26.08
Don’t blog about how a shady production company tried to rip you off for $25,000 or they’ll sue you for $20 million. Vision Media Television is one of several different alleged ripoff artists who frequently target non-profit and socially-aware groups, promising a big TV special aired on PBS and/or other major networks showcasing the group. The show is supposedly anchored by ex-20/20 anchor Hugh Downs and will reach millions upon millions of people. The catch? The organization has to pay for the production costs up-front, which run into the tens of thousands of dollars…and the show never goes on TV.
Homeowners Sue Countrywide!
By 8.25.08
Who isn’t suing Countrywide lately? Phuong Cat Le from the Seattle Post-Intelligencer says that a group of homeowners are now suing Countrywide, alleging that the lender steered them toward high-risk loans without disclosing the inherent risks.
Sixth Circuit Overturns Arbitrator Who "Showed A Manifest Disregard Of The Law"
By 8.21.08
Earlier this week, the Sixth Circuit Court of Appeals overturned an arbitration decision in a dispute between Coffee Beanery and a franchisee. The court found that the arbitrator, hired by the American Arbitration Association, “showed a manifest disregard of the law” by siding with Coffee Beanery.
Waiter, There's A 9-Foot Tapeworm In My Salmon/Digestive Tract!
By 8.19.08
A Chicago man is suing Shaw’s Crab House after passing a 9-foot tapeworm he contends came from consuming undercooked fish. Anthony Franz claims he became violently ill after eating the salmon salad at Shaw’s, and is suing the restaurant and its parent company, Lettuce Entertain You Enterprises, for $100,000.
FDA Declares Bisphenol A Safe
By 8.15.08
Bisphenol A, or BPA, is the chemical used in various plastic bottles and can linings that Canada recently banned, consumers in Arkansas, California, and Ohio have filed lawsuits over, and Playtex and Nalgene have stopped using. The fear is that it’s toxic—studies on animals in Canada have shown that it’s damaging, and some tests in the U.S. suggest it’s harmful to humans as well. Critics of the anti-BPA movement point out that the human studies rely on super high dosages that never occur in real life, and that making safety decisions based on the general public’s fears isn’t exactly scientific.
Hey, How Do I Sue Telemarketers Who Ignore The Do Not Call List?
By 8.14.08
We’ve been getting a lot of emails lately from people who are fed up with telemarketers ignoring the Do Not Call list and want to take the bastards to court. Now, to be fair, sometimes the people who email don’t fully understand what is and what is not allowed under the law.
Man Files Antitrust Suit Against Time Warner Over Forced Cable Box Rentals
By 8.13.08
Matthew Meeds of Fairway, Kansas, doesn’t want to pay Time Warner Cable a monthly rental fee for his cable box—he’d rather own one outright. He’s filed suit against the cable provider and its parent company, Time Warner, Inc., accusing them of establishing an illegal tying arrangement by making the box rental a condition of the subscription agreement. He’s seeking class-action status for all TWC premium customers in Kansas.
Suing? Settle.
By 8.8.08
Would-be coffee spillers take note: If you’re ever suing and get offered a settlement, take the deal. A new study shows that plaintiffs who turn down settlements and go to trial end up getting less than if they had settled.
Settlement In BA-VA Price-Fixing Class Action
By 8.6.08
You’re entitled to a small refund if you bought tickets for a long haul flight on British Airways or Virgin Atlantic between August 11, 2004 and March 23, 2006. The amount is $7-$34 per flight taken. This is the settlement in a class action lawsuit contending the two airlines colluded to fix the price of fuel surcharges. More info at airpassengerrefund.com. [via RickSeaney]
WaMu Tells You To Stop Paying Your Mortgage And Apply For Help, Then Forecloses On You
By 8.5.08
WaMu, despite all their big talk about helping homeowners avoid foreclosure, is apparently too overwhelmed with a tsunami of defaulted loans to call their customers back, let alone help them stay in their homes. Meet Lori and Mark Pestana. They have a $275,000 fixed rate mortgage with WaMu as their servicer. In August 2007, the Pestanas could not make a payment on their loan. They considered dipping into their retirement savings, but WaMu’s website offered an alternative:
Judge Rules That Early Termination Fees Are ILLEGAL In California
By 7.31.08
A California Superior Court judge has ruled that cellphone early termination fees are ILLEGAL and that Sprint must pay $18.2 M as part of a class action lawsuit. Of course, the decision could be appealed, but in the meantime…. (drum roll, please) the judge ordered Sprint to stop trying to collect the fees from customers in California who were refusing to pay them!
Sprint Loses Early Termination Fee Case In California
By 7.29.08
A California judge has issued a tentative ruling against Sprint regarding early termination fees. Although Sprint has two weeks to respond before the judge issues a final ruling, if the ruling stands then Sprint will have to pay $73 million in refunds to former customers. That Verizon settlement for $21 million earlier this month must be looking pretty sweet to Sprint’s investors right about now.
Attorneys Convince Monster That Consumers Can Tell The Difference Between A Deer Lick And An Audio Cable
By 7.22.08
According to the Minneapolis Star-Tribune, attorneys filed a dismissal motion on behalf of Denco, an ethanol producer in Morris, Minn. that had been selling a product called “Monster Deer Block” since 2005. What were they trying to dismiss? A trademark lawsuit from Monster Cable, of course.
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Google: Of Course [Our Advertisers] Are Seeking To Hijack Or Divert Consumers
By 7.22.08
American Airlines has dropped its trademark infringement lawsuit against the all-powerful Google Inc. The lawsuit stemmed from the fact that the search engine allows search terms like “AAdvantage,” the trademark name of its frequent flier program, to be linked competitors’ sites that have no connection with American. If there was ever any doubt that Google sells out “proper” net searches to the highest bidder, let that doubt be forever melted away.
