| Volume 79 Number 2 |
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The People’s Lawyer’s Tip of the Day
More and more stores are again using lay-away to let you make weekly payments. But be careful, Texas has no law regulating lay-away. Read your contract carefully before you sign. Be sure to check how much money you will get back if you change your mind and don't make all your payments. Click here for more.
CFPB: AmEx to Pay $85M to Cardholders
According to the Consumer Financial Protection Bureau, approximately 250,000 consumers will share in a $85 million refund as a part of a settlement with American Express. According to CFPB Director Richard Cordray, American Express engaged in deceptive practices from 2003 to 2012 at every stage of the consumer experience. Violations include consumers who were deceived to believe that they would receive a $300 bonus if they signed up for the "Blue Sky" credit card, charged unlawful late fees, and unlawfully discriminated against on the basis of age.
As part of the settlement, American Express has agreed to end the illegal practices, make a full repayment to consumers, inform consumers of debt collection rights, offer up to independent audit, and pay a civil fine of $27.5 million.
To read about the latest win for consumers and the Consumer Financial Protection Bureau, Click here for more.
Pennsylvania Judge Blocks Voter ID Law
Last March, Pennsylvania Governor Tom Corbett signed a voter identification requirement into law. Expected to be rule of law in the upcoming November elections, it was quickly challenged by various groups, including the Homeless Advocacy Project and League of Women Voters.
This week, a Pennsylvania judge ruled to block enforcement of the law on the grounds that the changes occurred too close to the November elections, leaving in question whether there was appropriate time to allow for liberal access to voting.
With several states eyeing Voter ID requirements, what impact will the Pennsylvania ruling have on the future of ID laws?
Click here for more.
Your Money
Should I pay or charge monthly, quarterly or annually? Click here for more.
For the Lawyers
Customer not bound by arbitration provision emailed after completing online sale. The Second Circuit held that an internet merchant cannot compel arbitration with a consumer, when it only emailed the consumer the arbitration agreement after the consumer agreed to the purchase, without any requirement that the consumer affirmatively assent to the term. The court summarized applicable contract law by saying that where plaintiffs were not on actual notice of the arbitration provision (because it was not on the sign up page), they can only be bound by it if they were on “inquiry notice” of the term and assented through their conduct. In this case, the Second Circuit concluded “[w]e do not think that an unsolicited email from an online consumer business puts recipients on inquiry notice of the terms enclosed in that email . . . and that a failure to act affirmatively to cancel the membership will, alone, constitute assent.” Click here for more.