The People's Lawyer Consumer News Alert
Center for Consumer Law
  Volume 61 Number 13

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The People’s Lawyer’s Tip of the Day

In Texas, your landlord cannot just throw you out, even if you don't pay rent. A landlord may change the locks on your door but must make a key available to you 24 hours a day. To evict you, he must go to court.  Click here for more.


Texas AG Gets $14M Verdict in Debt Scam

Texas Attorney General Greg Abbott's office got a huge victory for consumers this week after a Houston jury rendered a $13.8 million verdict against Robert M. Lindsey, Jubilee Financial Management LLC, The Credit Card Solution and Freedom from Debt Alliance. According to the lawsuit, the "credit repair" companies falsely claimed that debts would be eliminated and credit ratings improved by simply filing lawsuits. Over 700 consumers paid more than $3,000 each for the fraudulent services. To read the official Texas Attorney General press release, Click here for more.


PS3: 77 Million Sony Accounts Hacked

Last week, consumers on the Sony PlayStation network were locked out of their accounts without warning. Sony said it was investigating the issue and would release a statement at a later date. Six days after the network first stopped working (Tuesday), Sony finally released the results of its investigation, which vaguely detailed the hacking of 77 million user accounts. What was taken during the breach? Name, username, password, address, birthday, and (probably) credit card information. Consumers quickly became livid, taking to online forums to vent their frustrations with Sony. Why did Sony wait six days after the network went down to tell consumers what happened? Are you a member of the PlayStation network? Do you or your children use a PS3? Find out everything you need to know about the breach, and what you can do to protect yourself if your information is used. Click here for more.


Gas Station in Legal Battle With Distributor

A Houston gas station owner is in a battle with ExxonMobil and its distributors after he unilaterally decided to reduce his gas prices. By choosing to accept only cash, he claims that he is able to discount gas by $0.10 per gallon. The oil company objected and the distributors stopped filling the tanks, all because he was selling gasoline "below market price." After considerable back-and-forth, the gas station owner revealed some interesting "insider" information on gas branding. Why does this man claim that ExxonMobil sells more than just ExxonMobil gas? Why did he lower prices in the first place? Click here for more.


Doctors Attempt to Silence Patients

Next time you go to your doctor, you might be asked to sign a confidentiality agreement. Why? Because doctors are upset with patients taking to internet forums and medical rating sites to vent their frustrations. According to many physicians, it only takes one or two bad apples to destroy an entire career. Moreover, those patients can often post "anonymously," leaving them without any accountability for what they say. Consumer advocates say the agreement amounts to nothing more than a "gag order." Already, about one half of all Medical Justice member physicians require the confidentiality agreement to be signed before any medical services are rendered. Will you be asked to sign an agreement next time you go to the doctor? Click here for more.


Your Money

Does your current situation make home equity a sensible borrowing option or not? Click here for more.


For the Lawyers

States cannot not void class action arbitration ban based on unconscionability. The U.S. Supreme Court ruled on AT&T v. Concepcion that companies can use arbitration clauses in consumer and employment contracts to block class actions. The Court found that the Federal Arbitration Act preempts California contract law, specifically the California Supreme Court's 2005 decision in Discover Bank v. Superior Court of Los Angeles. The practical effect of this decision is to allow any business or employer to ban the use of class actions against it by imposing arbitration upon its customers or employees, and including a class action ban within that agreement. Click here for more.

 

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