| Volume 128 Number 2 |
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The People’s Lawyer’s Tip of the Day
Prepaid debit cards are a good way to avoid the interest and fees associated with credit cards, right? Wrong! Many prepaid cards include fees to activate them up, review your account, use an ATM or reload the card. Be sure to shop around and read the terms before signing up for any prepaid card. Click here for more.
ATM Fees Reach a Record High
In the tenth straight year of increases, the average fee to use an out-of-network ATM is now $4.57. As less people use ATMs, companies have to make the cost of maintaining ATMs over fewer transactions. "Paying the fee every once in a great while isn't going to make or break you, but it's the habit of routinely paying these types of fees that is going to put you in the poor house," said Greg McBride, chief financial analyst at Bankrate. The fee is also avoidable. Bank customers can either use their debit card to make a purchase or use a bank phone app to find the closest in-network ATM. Click here for more.
Your Money
You have likely been told to watch out for IRS scammers who call you, because the IRS never initiates communication through a phone call. Well that’s about to change. The IRS has enlisted private debt collectors to call debtors about their back taxes starting next year. The IRS will send written notices to taxpayers that their accounts will be sent to a collection agency. The private collectors will be able to identify themselves as contractors of the IRS. The legislation that created this program requires that the collectors abide by the Fair Debt Collection Practices Act. Collectors will not ask for payment on a prepaid debit card. Click here for more.
For the Lawyers
Defendant’s offer to satisfy Plaintiffs’ individual claims does not moot the action as a whole. Plaintiff filed a class action complaint against Allstate for alleged violations of the Telephone Consumer Protection Act. Allstate deposited $20,000 in escrow and proposed entry of judgment favorable to Plaintiff's individual claims for damages and injunctive relief. In Allstate's view, "[o]nce the defendant offers to satisfy the plaintiff's entire demand, there is no dispute to litigate, and a plaintiff who refuses to acknowledge this loses outright, under Fed.R.Civ.P. 12(b)(1), because he has no remaining stake." The 9th Circuit rejected Allstate’s argument and followed the Supreme Court case, Campbell-Ewald, which states that a lawsuit — or an individual claim — becomes moot when a plaintiff actually receives all of the relief he or she could receive on the claim through further litigation. Chen v. Allstate Insurance Company (9th Cir. 2016). Click here for more.