| Volume 67 Number 3 |
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The People’s Lawyer’s Tip of the Day
Are you responsible for damage caused by your children? In most cases a parent is not automatically liable for things done by a child. Generally, for the parent to be responsible, it is necessary to show the parent negligently supervised the child, and that is why the damage occurred. Kids will be kids and when something goes wrong, parents are usually not responsible. Click here for more.
Debt Collectors on Verge of Cell Access
In an unusual move, President Obama has expressed a desire to ease restrictions on private debt collectors by allowing collectors to contact consumers on their cell phones. By making the change, the administration hopes to increase collections on delinquent student loans and other government-backed debt obligations. A representative from the National Consumer Law Center says the move will only lead to "more harassment and abuse" and will not help the government's collection efforts. Will debt collectors soon be able to contact you on your cell phone?
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Senators Introduce Bill to Ban Arbitration
Senators Richard Blumenthal and Al Franken have introduced legislation to eliminate mandatory binding arbitration clauses from cell phone and mobile data contracts. Arbitration clauses are common in cell phone contracts and prevent consumers from resolving disputes using the court system. Arbitrators are not required to render formal written opinions or follow the rules of procedure or evidence. Appeal is only available in extremely limited circumstances. To read about the legislation to eliminate cell phone arbitration clauses, Click here for more.
Your Money
Do you have too much debt? Click here for more.
For the Lawyers
Fair Credit Reporting Act preempts state law claims. The 7th Circuit held that the Federal consumer protection law completely preempts state claims brought by a borrower who claimed that her bank falsely reported to credit agencies that she was behind on her loan payments. The plaintiff sued in state court, alleging that Bank of America told credit agencies that she was behind in payments on a loan, even though the bank knew that she wasn’t. Her complaint asserted claims for willful violations of Indiana consumer protection law as well as violations of the Fair Credit Reporting Act [FCRA]. The FCRA generally provides that no requirement may be imposed under the “laws” of any state with respect to the furnishers of information to consumer reporting agencies. In finding complete preemption, the court rejected the plaintiff’s argument that the Act only prohibits claims brought under state statutes and not common-law causes of action, suggesting that such a conclusion was contrary to legislative-drafting manuals used by the House and the Senate. Click here for more.