Consumer Law

Minnesota Attorney General Sues 6 Debt Settlement Companies

Posted on February 22, 2010
Minnesota Attorney General (AG) Lori Swanson has sued 6 debt settlement companies on the grounds they were not licensed to do business in Minnesota and overcharged consumers by hundreds of thousands of dollars. She commented: “People who are swimming in debt are often desperate for a life preserver, but they should know that debt settlement companies [...

Bereavement Fares Aren?t Always Fair

Posted on February 18, 2010
When an out-of-town family member dies, you only have a few days to hop on a plane for the funeral. Thus, the idea of a bereavement fare, which—in theory—enables grieving family members to pay their last respect without paying airlines’ extremely high last-minute fares...

FTC: Watch Out for Job Scammers

Posted on February 17, 2010
From the Federal Trade Commission: If you?re looking for a job, you may see ads for firms that promise results. Many of these firms may be legitimate and helpful, but others may misrepresent their services, promote out-dated or fictitious job offerings, or charge high fees in advance for services that may not lead to a job...

Facebook Page Makes Wells Fargo Waive Fees

Posted on February 16, 2010
Wells Fargo has bowed to angry internet users and has agreed to refund and waive 3% transaction fees charged on certain donations to Haiti. College student Heather Lynn was angered by Wells Fargo’s insistence on charging a 3% foreign transaction fee on certain types of donations to Haiti...

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Don?t Be Promiscuous with Your Passwords

Posted on February 04, 2010
According to a study by Trusteer, a security firm, 73% of internet users use the same password for online banking and other sites. This is not a good idea. If you use the same password to access multiple accounts, so can an identity thief. I recommend generating long, complex random passwords for your bank accounts, and [...

Maryland Judge Dismisses ?Tens of Thousands? of Mann Bracken Lawsuits

Posted on February 02, 2010
Mann Bracken, the enormous debt-collection law firm, recently closed its doors, leaving hundreds of thousands of consumers unable to resolve their debts. Since Mann Bracken sues on many of its debts, the sudden closure also left courts in confusion. One Maryland judge decided to take drastic measures...

What Credit Card Security Codes Are For

Posted on January 27, 2010
Credit card security codes (CVV2 codes) are not stored on your card’s magnetic strip, and merchants may not keep them. Providing it ensures that you have the actual card in your possession. Maryland consumer rights lawyer Sonya-Smith Valentine explains:

What Debt Collectors Can and Cannot Do

Posted on January 26, 2010
The Federal Trade Commission has posted a video on their website and YouTube outlining consumers’ rights when contacted by debt collectors. If you have been contacted by a debt collector, watching the video is a good place to start learning about your rights...

I Don?t Believe in Imaginary People

Posted on January 23, 2010
Corporations may be imaginary people, but last week, the U.S. Supreme Court held that imaginary people are entitled to free speech. Along with trolls and gnomes, presumably. President Obama’s nails the problem in his weekly address: Weekly Address: President Obama Addresses This Week’s Supreme Court Decision | WhiteHouse...

Attorney Refuses to Pay Bank of America Credit Card Debt

Posted on January 20, 2010
California attorney Ben Pavone refuses to pay his credit card debt until Bank of America lowers his interest rate. Pavone has also threatened to sue Bank of America if they try and ruin his credit because of his non-payment. Pavone asked BOA for an increased credit limit a few months ago, when he needed the extra [...

Comparing Total Cost of Ownership for T-Mobile, AT&T, and Verizon

Posted on January 18, 2010
When T-Mobile threw a $9.99 charge on my bill, I was ready to ditch T-Mobile and never look back. But in the comments to that post, as well as the comments to a similar post on Consumerist, I learned there was nowhere to go. All the major cell phone carriers engage in preacquired account marketing—or [...

Judge Blasts Bank of America in SEC Trial

Posted on January 14, 2010
Note to banks accused of misleading investors: hypocritical defenses will not fly. Bank of America told its investors that it would not pay bonuses to Merrill Lynch executives as part of the merger. At the same time, BOA authorized Merrill Lynch to pay up to $5...

Block Third-Party Billing on Your Cell Phone Account

Posted on January 13, 2010
Whether or not you have been burned by your cell-phone provider’s shady business relationships, a little preventative maintenance of your account is in order. What I call a scam, they call “third-party billing.” But you can stop it. One Consumerist commenter was successful in asking T-Mobile to block third-party billing...

Sprint Owes $$$ to Minnesota Customers

Posted on January 11, 2010
Because of a recent settlement between the Minnesota Attorney General’s office and Sprint, customers who think they were misled by Sprint about their contract can apply to Sprint for refunds. Sprint warns, however, that merely applying for a refund does not ensure you will get one...

T-Mobile Charges You For Things You Don?t Buy

Posted on January 07, 2010
When I wrote about preacquired account marketing for Consumerist back in October, I never dreamed I would fall victim to the scam. I also never dreamed the company who screwed me would be T-Mobile, a company I have had a relationship with since February 11, 2004 (I checked), and from which I have always received [...

Revised Comment Policy

Posted on January 05, 2010
We get all kinds of comments here. Some are helpful and relevant, others are barely-coherent, ad hominem diatribes. Lots are somewhere in between. Until now, I have approved nearly every non-spam comment. No more. In an effort to keep things on-topic and productive, I will be more pro-active in moderating comments, and I have culled the [...

Is Mann Bracken Out of Business?

Posted on December 22, 2009
I got the word a few days ago that gigantic debt collection law firm Mann Bracken was going under. Atlanta consumer lawyer Tim Cook says Mann Bracken’s lawyers are out of work and the phones are instructing callers to contact their creditors. Could it be? It could...

Subprime Credit Cards Adapt to New Regulations

Posted on December 18, 2009
New regulations designed to stop credit card lending abuses cap the first-year fees a credit card issuer may charge at 25% of the credit limit. So First Premier Bank is doing just that, charging $75 for a credit card with a $300 limit. But since the new law does not limit interest rates, First Premier [...

Citigroup Says Bah Humbug

Posted on December 17, 2009
Despite accepting taxpayer’s bailout money, Citigroup refuses to show sympathy to consumers. A local parking attendant bought a television on credit with Citigroup back in 2007. At the time of purchase, the receipt mentioned a deferred interest promotional offer, with no further explanation on the receipt or from the salesperson...

Avoid Identity Thieves on Facebook

Posted on December 14, 2009
Take a moment to look over your Facebook profile, and consider all the information your friends have access to. Your name, address, and date of birth? How many of the answers to your “security” questions for your financial websites are contained within your profile or updates? Only friend people you know...

Credit Card Companies Make it Hurt Before New Laws

Posted on December 10, 2009
Despite the new credit card laws go into effect in February, credit card companies are putting the financial hurt on customers. According to a report from Safe Credit Card Project: 99.7% of bank cards allowed card issuers to boost rates on outstanding balances...

Finding a Low-Fee 529 College Savings Plan

Posted on December 08, 2009
One of the first things you should do when you have a child—or even before—is to set up a 529 college savings account. Earnings from money in a 529 plan are not taxed as long as they go towards qualified education expenses. But the maintenance fees can add up over time...

How to Get a Free Credit Report (That is Actually Free)

Posted on December 02, 2009
To get a free credit report, visit annualcreditreport.com. Stay away from the misleading “free”creditreport.com, which is not free, but somehow still doing business despite its incredibly misleading name.

Free Phones Cost You Plenty

Posted on November 24, 2009
Most cell phone service providers offer a “free” phone when you sign up for a two-year contract. The phones are not free, of course, you just pay for them over time. How much? Nobody knows, but T-Mobile just gave a clue. T-Mobile recently introduced a plan where you cannot get a “free” phone, and it costs [...

More Consumer Rights On the Way?

Posted on November 18, 2009
A new report from the Government Accountability Office (GAO) urges legislators to revise the Fair Debt Collection and Practices Act (FDCPA) to give consumers more rights. Debt defaults are at the highest level in 18 years, which has presumably led to more people than ever being contacted by debt collectors...

TCF Bank To Curb Overdraft Fees

Posted on November 16, 2009
Jumping ahead of proposed federal legislation, TCF Bank is attempting to curb its own overdraft fees, starting early next year. Under the current system, customers can get hammered with multiple overdraft fees in the same day once their balance drops below zero...

Americans for Financial Reform and the Showdown in Chicago

Posted on October 22, 2009
The movement for consumer justice has gotten bigger and stronger, and if you?re in Chicago next week you can experience it firsthand.  Americans for Financial Reform (AFR), a big coalition of which AFFIL is a member, is organizing a series of demonstrations on October 25 ? 27...

The New Debtors? Prison

Posted on October 21, 2009
Debtors’ prison was supposedly eliminated in the United States in the 19th century, but in the 21st, people are still being arrested and tossed into jail for debts. It just takes an extra step these days. This morning, I sat in court and watched a debt collector get six bench warrants for debts under $1,000...

White House on the Proposed CFPA

Posted on October 09, 2009
White House economic adviser Austan Goolsbee on the proposed Consumer Financial Protection Agency: (via Consumerist)

Reverse Mortgages Threaten Seniors? Wealth

Posted on October 09, 2009
A new report from the National Consumer Law Center explains in detail how ?[a]buses and abusers from the subprime mortgage industry have begun showing up in the reverse mortgage market, putting at risk the equity and savings of millions of seniors.? (Report is here (pdf); press release is here (pdf)...

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