| Volume 63 Number 13 |
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The People’s Lawyer’s Tip of the Day
If you have reason to believe your personal information has been compromised and you may become a victim of identity theft, put in a fraud alert with the credit bureau. Federal law requires that the credit bureau keep this alert on your file for 90 days. To learn more about preventing identity theft, Click here for more.
Phone Bill: Spot Unauthorized Charges
Take a look at your phone bill. What do you see? To many, a phone bill reads like a foreign language. From "miscellaneous charges" to "subscriptions," what does it all mean? In many cases, "miscellaneous charges" and "subscriptions" might actually be unauthorized charges. It is a practice called "cramming" and the federal government is trying to crack down on it. According to the Federal Communications Commission, most people have know idea that they're paying for things they don't want or use. Most of the charges are so small that people ignore them. Moreover, they're extremely difficult to fight, so even if they challenge the charge, many will give up. After-all, time is money and that's the balancing act that "crammers" hope a consumer will make. Recently, the FCC fined a company more than $11 million for placing unwarranted charges on phone bills. When you look at your phone bill, make sure you understand what you're being charged for and why. If you see something fishy, report it immediately. Click here for more.
Red Light Camera Controversy Heats Up
In 2004, Houston passed a red light ordinance, placing cameras at many intersections throughout the city. The city entered into a contract with American Traffic Solutions to run the program, taking pictures of vehicle license plates and issuing tickets to drivers who run red lights. The city trumpeted favorable accident statistics and more time for officers to focus on other duties. Many citizens weren't happy with the program. First, the tickets weren't like traditional traffic tickets. Rather than go to jail if an offender didn't pay, the ticket would be sent to private collections. Secondly, since the tickets were treated as quasi-civil offenses, citizens wouldn't have the opportunity to make the city prove its case in criminal court. As a result, Houstonians got enough signatures to put the red light cameras up for vote, ultimately forcing the city to turn the cameras off. The only problem? The city still had a contract with American Traffic Solutions. American Traffic Solutions got a cut of the money for every ticket issued. A dispute between the city and American Traffic Solutions would end up in federal court, where a judge recently overturned the citizen vote and ordered the city to turn the cameras back on. Now, the City of Houston is in a tough spot. If they ignore the judges ruling, they could owe millions of dollars to American Traffic Solutions. If they turn the cameras back on, they'll be ignoring the vote of the people. Other major cities throughout the United States (who contract with the same company) are watching closely to see what happens in Houston. Will the city turn the cameras on again? Click here for more.
Bad Deal Alert: Rent-to-Own
Are you in the market for a new computer or a washer? Would you pay the equivalent of up to 311 percent interest to own it? If you go to a rent-to-own company, that's exactly what you'll be doing. A $600 computer can cost $1,900 after only a year of payments. A $1000 washer/dryer combo could cost $2,700 after two and a half years of payments. With some rent-to-own companies, it isn't just the high prices, but the questionable business practices. Texas-based Rent-A-Center recently settled charges with the State of Washington relating to the company's aggressive collection tactics and other deceptive trade practices. What did the state allege? How can you protect yourself? Click here for more.
Your Money
Should you pay down your debt or invest in your monthly surplus? Click here for more.
For the Lawyers
Telephone message may violate FDCPA. The District Court for Minnesota held that leaving a phone message that was overheard by the consumer’s children may violate the FDCPA’s prohibitions on communication with third parties. The court also noted that the Act does not require an intent element to establish a violation of section 1692c(b). Click here for more.