Category

Unfair Deceptive Trades

Discover Card & Capital One Pay Settlements for Telemarketing Fraud

By | Class Action, Consumer protection, Uncategorized, Unfair Deceptive Trades

Published October 16, 2012 by LawsuitInformation.org

Discover Card & Capital One Pay Settlements for Telemarketing FraudLate last month, a settlement was reached in a lawsuit between Discover Card and the Consumer Financial Protection Bureau and the FDIC. Discover Card had been charged by federal regulators and consumers of fraudulent business practices.

In the federal regulators’ investigation, they discovered that the credit card company’s telemarketers would use ambiguous and vague language when introducing credit card customers to Discover Card’s various programs. Often, these telephone marketing strategies would employ the technique of speaking quickly so as to become unintelligible.

Often, fast speech was used when discussing the fees and terms and conditions of Discover Card programs. In addition to deliberately unintelligible speech, telemarketers gave a false impression to customers of these Discover Card products and programs being free and delivering certain benefits, which ultimately, was understood to be far from the truth.

These Discover Card programs included payment protection, credit score monitoring, identity theft protection, and the like. In their investigation, it became clear to federal regulators that, without the approval of their customers, Discover’s telemarketers were often adding these programs and various other fees attached to them onto their customers’ credit card statements.

As a result of employing such deceptive marketing strategies, Discover Card will pay a fine to the Consumer Financial Protection Bureau and the FDIC in the amount of $14 million. Approximately 3.5 million Discover Card customers will receive recompense in the amount of $200 million for the losses incurred via enrollment in these fraudulent credit programs. It is estimated that about 2 million customers will receive compensation for all fees charged by Discover over the period of December 7, 2007 through August 31, 2011.

Moreover, Discover Card has agreed that it will reform its telemarketing strategy. Also, the credit card company has agreed to hire a nonpartisan auditor whose responsibility it will be to insure that Discover Card does not engage in fraudulent and misleading marketing tactics.

Back in July of this year, Capital One settled a similar lawsuit regarding claims filed against the credit card company and their deceptive telemarketing strategy. The Capital One settlement amounted to $150 million to compensate two million of their customers. In addition to the consumer recompense, Capital One paid the Consumer Financial Protection Bureau a fine of $25 million. Furthermore, the credit card company agreed to pay another fine in the amount of $35 million due to the Office of the Comptroller of Currency.

If you feel that you have been the victim of such unfair and deceptive trade practices, contact a consumer protection lawyer at Carey Danis & Lowe.

New York Woman Granted Second Chance to Fight Debt Collector’s Fraudulent Tactics

By | Predatory Lending, Uncategorized, Unfair Deceptive Trades

Published September 11, 2012 on Carey & Danis

New York Woman Granted Second Chance to Fight Debt Collector's Fraudulent TacticsIn the lawsuit, Easterling v. Collecto, Inc., a judge ruled last month that the debt collection company based in Massachusetts known as Collecto , Inc., used deceptive trade practices in an effort to convince the plaintiff, Berlincia Easterling, that her student loans could not be dissolved when filing for bankruptcy. The debt collection company sent Easterling a letter with language stating that her student loan debt was nondischargeable, and thus, must still be paid to Collecto, Inc.

A U.S. Court of Appeals in New York ruled that the methods used by Collecto, Inc. in an effort to collect student loan debt payments from Easterling proved misleading, and as a result, stand in violation of the Fair Debt Collection Practices Act (FDCPA).

The federal court stated in the ruling that student loan debt can be discharged if the plaintiff can demonstrate that continuing payments of student loan debt after filing for bankruptcy would significantly impact the debtor’s standard of living, driving it below what is termed a “minimal” standard of living. In response to this ruling, Easterling and her attorney will file a class action lawsuit against Collecto, Inc., as information has surfaced that the debt collection company sent out letters similar to the one Easterling received to approximately 181 individuals.

This federal court decision protects the consumer, in this case the consumer as debtor. Though Easterling has the onus of presenting convincing evidence in her forthcoming class action lawsuit, she has been given the opportunity to fight deceptive trade practices that undermine consumer protection and federal laws, such as the Fair Debt Collection Practices Act. If you feel that you or someone you love has been the victim of unfair, deceptive, and misleading trade practices, contact an attorney at Carey Danis & Lowe. Our experienced trial lawyers will provide you with a free legal consultation, and can assist you in determining if you have a case.

Bank of America Credit Protection Plus Class Action

By | Predatory Lending, Uncategorized, Unfair Deceptive Trades

Bank of America Credit Protection Plus Class ActionCarey Danis & Lowe is currently investigating claims that Bank of America is engaging in unfair and deceptive trade practices in connection with the sale and administration of their Credit Protection Plus program, which is a debt suspension / debt cancellation plan offered to its card members for a fee.

In particular, CD&L is investigating claims that Bank of America enrolls card members into their payment protection plan without first determining whether the consumer is qualified to ever receive benefits under the program. The result is that card members are paying fees even though they can never receive benefits.

In addition, the lawyers at CD&L are investigating whether Bank of America is enrolling card members into the Credit Protection Plus program without their consent or authorization and subsequently charging them a recurring monthly fee.

If you were enrolled into a payment protection plan or program without your consent, please contact us today.

Banana Republic Card Security Program Class Action

By | Predatory Lending, Uncategorized, Unfair Deceptive Trades

Banana Republic Card Security Credit Card Payment Protection Plan Scam Class Action LawsuitCarey Danis & Lowe is currently investigating claims that Banana Republic is engaging in unfair and deceptive trade practices in connection with the sale and administration of their Card Security Program, which is a debt suspension / debt cancellation plan offered to its card members for a fee.

In particular, CD&L is investigating claims that Banana Republic enrolls card members into their payment protection plan without first determining whether the consumer is qualified to ever receive benefits under the program. The result is that card members are paying fees even though they can never receive benefits.

In addition, the lawyers at CD&L are investigating whether Banana Republic is enrolling card members into the Card Security Program without their consent or authorization and subsequently charging them a recurring monthly fee.

If you were enrolled into a payment protection plan or program without your consent, please contact us today.