| Volume 126 Number 4 |
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The People’s Lawyer’s Tip of the Day
Many courts look closely at and rely on any document you sign. Read and understand any contract or legal document you are asked to sign. Make sure there are no blank spaces. Insist that any extras you are promised are put in writing. Click here for more.
Delta Cancels Hundreds of Flights Due to Outage
Early this morning Delta Air Lines flights were grounded because of a global computer system outage. Hundreds of thousands of passengers were left stranded. The second largest airline stated that the problem was caused by a power outage at its Atlanta hub. Law enforcement has not found any evidence that the outage was intentional. This comes three weeks after Southwest Airlines canceled more than 1,000 flights due to a system outage. Click here for more.
Your Money
If you have racked up debt on a high-interest credit card, transferring the balance to a card with a lower interest rate can simplify multiple debt payments and save you high interest charges. A typical fee for a balance transfer is 3 percent, so if you transfer a $10,000 debt from another card, you'll incur a $300 fee. Depending on how much money you'll save on interest it may or may not be worth it. However, you should not rely on balance transfers to avoid payments. When you continue to open new low-interest accounts, but maintain high debt levels, lenders may see you as a risk, which will make it hard for you to borrow money for big-ticket items such as a home or car. Click here for more.
For the Lawyers
Individual members of law firm may be liable for violations of FDCPA. The U.S. District Court for the Western District of Wisconsin ruled that the Consumer Financial Protection Bureau (CFPB) may hold the owners of two law firms offering debt relief services liable for alleged violations of federal consumer protection laws. The court also ruled that the defendants misrepresented their services to consumers and charged consumers impermissible advance fees. In its opinion, the court punted on the question of whether the defendant law firms' debt relief services qualified as the practice of law and thus were outside of the CFPB's authority. The court also held that the individual defendants may be liable not just for illegal profits, but for all of the revenue generated by the defendants' alleged illegal practices. Consumer Finance Protection Bureau v. The Mortgage Law Group, LLP, et. al. (W.D. Wisc). Click here for more.