| Volume 39 Number 10 |
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The People’s Lawyer’s Tip of the Day
In most cases, buying an extended warranty is a bad deal. Most stores try hard to sell you an extended warranty for almost anything and it is because of their profit not your needs. Before buying an extended warranty do some research. Most products do not break down during the extended warranty period, and most repairs cost less than the warranty. Click here for more.
AAA Exits Consumer Arbitration
According to the Wall Street Journal, the American Arbitration Association will no longer handle consumer debt collection disputes. The move comes just a few short days after the NAF agreed to exit consumer arbitration completely. Some suggest the move may simply be strategic positioning to prevent congress from making arbitration "truly voluntary." Regardless, most will agree AAA's exit from arbitration is a win for consumers. Find out why! Click here for more.
Homeowners Beware: Look Out for the Yield Spread Premium
Are you using a mortgage broker to get a home loan? If you are, make sure that you know about the “yield spread premium” (frequently abbreviated as “YSP” on closing documents) that lenders pay mortgage brokers to put you in a loan with a higher interest rate than you deserve.
While some reputable brokers disclose the YSP as part of a legitimate “no-cost” loan, many other brokers use the YSP as a way to get a kick-back for putting consumers in bad loans.
Click here for more.
Back to School 2009
Another academic year is right around the corner. Whether it is college, high school, or grade school, Consumer Reports has compiled a list of useful resources. Click here for more.
Your Money
Gas budget calculator - how much will it cost to drive a car for one year? Click here for more.
For the Lawyers
Class action waiver unenforceable despite "opt-out." A California court has held that the mere presence of an opt-out clause in a class action waiver provision does not save the provision from being unenforceable under California law as an unconscionable contract of adhesion. The court noted that putative class members did not make an informed choice to not "opt-out," because, "[T]he members of the putative class received nothing that explains the disadvantages of consenting to the arbitration and class waiver provisions; nothing clearly explaining the costs of arbitration; and nothing explaining the practical consequences of a class action waiver." Click here for more.