Consumer Law

FTC Threatens to Sue Pre-Paid Legal Services Over ID Theft Program

Alleging that Pre-Paid Legal Services Inc. made misleading claims to consumers concerning its identity-theft protection service, the Federal Trade Commission has threatened to file suit over the issue. Pre-Paid disclosed the FTC’s threat today, saying that it had received a proposed draft complaint from the federal agency seeking to halt…

Nov 19, 2009 9:17 PM CST

After ABA Wins ‘Red Flags’ Suit Over ID Theft Rules, Accountants Sue, Too

After apparently taking note of an American Bar Association win last month in a federal case contending that the Federal Trade Commission exceeded its authority by applying the so-called Red Flags Rule to lawyers, a trade association for accountants has filed a similar suit. Just like lawyers, accountants also send…

Nov 12, 2009 7:55 PM CST

Shill Bids for Domain Names Made by Auction Company Exec, Suit Alleges

Shill bids for tens of thousands of domain names were secretly made by a former executive of the company that auctioned the domain names, a lawsuit alleges. An unidentified former vice-president of SnapNames.com, which is a subsidiary of Oversee.Net, Inc., manipulated the auction and drove up prices for domain name…

Nov 9, 2009 5:57 PM CST

Plaintiffs Lawyers to Earn Up to $28M in Risky Wal-Mart Wage & Hour Litigation

Although Wal-Mart Stores Inc. has agreed to pay as much as $85 million to settle 39 consolidated wage-and-hour class action lawsuits involving more than 3 million employees, it wasn’t at all clear when the litigation began to unfold that the case would be a big winner. Now a hot litigation…

Nov 4, 2009 8:26 PM CST

Sandwich Suit Says Jimmy John’s was Too Fast With the Tuna

A Chicago man has sued Jimmy John’s, contending that restaurant, which advertises its speedy sandwich service, it was too fast with the tuna, mayonnaise and cheese. The problem was, not only had plaintiff Mackenzie Seiler ordered a turkey sandwich from a Jimmy John’s in Champaign, Ill., he is severely allergic…

Nov 2, 2009 6:46 PM CST

Ex-Client Sues Seyfarth, Seeks Treble Damages & Legal Fees

In a legal malpractice suit filed against Seyfarth Shaw and four current and former lawyers of the law firm, a former client is seeking not only standard-issue relief but treble damages and attorney fees under a Massachusetts consumer protection statute. Plaintiff PCG Trading contends Seyfarth withdrew from its representation of…

Oct 30, 2009 8:56 PM CDT

Fed’l Judge Rules From Bench for ABA: ‘Red Flags’ Doesn’t Apply to Lawyers

Updated: In a surprise ruling from the bench today, a federal judge in Washington, D.C., agreed with the American Bar Association that the Federal Trade Commission exceeded its authority by applying its “red flags rule” to practicing lawyers. Congress did not intend lawyers to be considered “creditors” under the Fair…

Oct 30, 2009 12:33 AM CDT

Many Online Credit Card Offers ‘Unfair or Deceptive,’ Pew Report Says

As federal lawmakers continue to work to close loopholes allowing banks to impose onerous terms on credit card users, the Pew Charitable Trusts reports that many continue to offer credit cards online in a manner that the Federal Reserve considers “unfair or deceptive.” Reviewing almost 400 cards and comparing Internet…

Oct 28, 2009 7:20 PM CDT

Dad’s Dumpster Dive Led to $1.8M Win in Phone Records ‘Pretexting’ Case

Saleswoman Kathy Lawlor got into a dispute with her employer four years ago over a big incoming commission, and she said the company fired her when she wouldn’t agree to sign a document changing her compensation schedule. The pay dispute soon wound up in court, and her ex-employer, North American…

Oct 20, 2009 12:26 AM CDT

Is Boa Constrictor a Service Animal? Proposed DOJ Standard Says No

Daniel Greene says his almost 5-foot boa constrictor is a service snake. The reptile, who rides around town on Greene’s neck, helps alert the 46-year-old Washington man to impending seizures by squeezing him more tightly when he’s about to have one, Greene tells the Seattle Times. This gives him time…

Oct 19, 2009 9:20 PM CDT

Messy Foreclosure Cases Likely to Make a Lot of Work for Lawyers

Refusing to vacate a landmark ruling in March that is likely to create a lot of work for real estate lawyers, a Massachusetts judge today held banks accountable for failing to timely file all the foreclosure paperwork that he said is required by state law. By doing so, however, Land…

Oct 14, 2009 10:56 PM CDT

Court Fines 2 Cos. $6.4M for Unauthorized Law Practice, Bans Them From State

The Ohio Supreme Court has fined two “trust mill” companies $6.4 million for the unauthorized practice of law and banned them from doing business in the state. Its ruling this morning imposed $6,387,990 in penalties against American Family Prepaid Legal Corporation; Heritage Marketing and Insurance Services Inc.; and co-owners Jeffrey…

Oct 14, 2009 8:36 PM CDT

More Courts are Now Deciding Credit Card Disputes

Once a dominant method of resolving credit card disputes between consumers and banks, mandatory arbitration of such cases could eventually be eliminated throughout the industry if Congress acts to prohibit forced resolution outside the courts. After two major arbitration groups stopped handling credit card cases earlier this year, several major…

Oct 14, 2009 7:23 PM CDT

Unlucky in Med Mal & Law Firm Suits, Woman Wins Case re ‘Frivolous’ $6K in Costs

Allegedly misdiagnosed with breast cancer, Victoria Kremen had a double mastectomy. Then she sued her doctors for malpractice–and lost, because the statute of limitations had run. Then she sued her lawyers for malpractice—and lost again. Now, however, she’s finally scored something of a legal victory, reports the New York Law…

Oct 13, 2009 7:37 PM CDT

Sotomayor Joins Conservatives to Raise Class-Action Cost Concern

U.S. Supreme Court Justice Sonia Sotomayor has joined with two conservative justices to raise constitutional concerns about forcing a dating service to pay the costs of notifying class members in a lawsuit over failed matchmaking. The Supreme Court denied certiorari in the case, but Justice Anthony M. Kennedy wrote that…

Oct 13, 2009 6:35 PM CDT