| Volume 77 Number 6 |
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The People’s Lawyer’s Tip of the Day
Always use a credit card when shopping online or by mail. Federal law allows you to refuse to pay the credit card bill if the goods are never delivered. Click here for more.
Problems With Credit Card Debt Collection
In the midst of the recent foreclosure crisis, investigators found that many of the foreclosures were based off fraudulent documents, incorrect information, and "robo-signing." Ultimately, the improper foreclosure practices prompted a multi-billion dollar settlement with the big banks. According to a report out of the New York Times, many credit card companies are now making the same mistakes. According to one judge, many of the collection suits rely on erroneous documents and incomplete records. In fact, he estimates that "roughly 90 percent of the credit card lawsuits are flawed and [the creditor] can’t prove the person owes the debt." Many credit card companies litigate bad debts in bulk. In most cases, the defendant doesn't appear, and the creditor is granted a default judgment. To read about the problems plaguing credit card collections, Click here for more.
Google to Pay $22.5M for Privacy Charges
The Federal Trade Commission (FTC) is making companies live up to their privacy policies. According to the FTC, Google violated its own privacy policy when it "misrepresented to users of Apple Inc.’s Safari Internet browser that it would not place tracking 'cookies' or serve targeted ads to those users." After Google represented that it would not track users, Google specifically found ways to circumvent Safari's default cookie-blocking setting. As a result, Google must now pay $22.5 million to settle the FTC charges. Do you trust Google with your private information? Click here for more.
GE Recalls 1.3M Dishwashers
After receiving reports of heating failures and fires, GE Appliances has issued a recall for about 1.3 million dishwashers under a variety of brand names. The affected dishwashers were sold from March 2006 through August 2009 for anywhere from $350 to $850 per unit. For a list of model and serial numbers of the recalled dishwashers, Click here for more.
Your Money
Do you have too much debt? Click here for more.
For the Lawyers
Arbitration clause doesn’t cover job applicant. The First Circuit held that a mandatory arbitration clause in an employment application was unenforceable against a pregnant woman who brought suit after being denied a job. The employer argued that the arbitration clause unambiguously covered all disputes with job applicants. The court disagreed, holding that because the clause was ambiguous, and because the party that drafted it had all the bargaining power, it should be construed against the employer. “[N]othing in the arbitration clause refers to ‘applicants.’” “Instead every reference is to ‘your employment,’ ‘the employment process,’ or ‘pre-employment disputes.’ Accordingly, there is a reasonable basis for [the applicant’s] belief that she would only be bound by the arbitration clause if ultimately hired.” Click here for more.