New Rule Could Give Consumers Back the Right to Take Their Fight to Court
By: Scott D. Gilchrist, Attorney
On May 5, 2016 the federal Consumer Financial Protection Bureau announced a proposed rule that would prevent financial service companies from barring class actions in contracts with their customers. For the past several years, the CFPB has been studying so-called “forced arbitration” clauses in consumer contracts, which require customers to give up their right to take claims to court and prohibit either filing or participating in class actions. In a lengthy report to Congress last year, the CPFB made several findings critical of forced arbitration in consumer contracts.
NFL Concussion Settlement: COA Affirms Compensation for Former Football Players
By: Daniel S. Chamberlain, Attorney
On April 18, 2016, the Third Circuit Court of Appeals affirmed the largest class action settlement in United States history. The class action involved allegations that professional football players were knowingly put at risk of repetitive brain trauma, including dementia, Parkinson’s and other degenerative brain conditions by their employer, the National Football League (NFL). Retired NFL players alleged that the NFL suppressed information about the link between brain injury and football. The NFL settled the case without admission of fault.
Identity Theft on 2015 Top Five Consumer Complaint List
By: Lynn A. Toops, Attorney
Complaints about identity theft rounded out the top five consumer complaints received by the Indiana Attorney General in 2015. This comes as no surprise given the increase in data breaches over the past few years. One of the first major data breaches occurred at Target stores. In 2013, Target stores announced approximately 40 million customers had their personal information compromised after hackers accessed debit and credit card information. This was considered one of the largest data breaches in history as cyber thieves accessed information stored on the magnetic strip on the back of these payment cards including names, card numbers, and three-digit security codes putting these consumers at a high-risk for identity theft.
Mediation Assistance Program Provides Valuable Experience to Attorneys While Helping the Underserved
By: Aaron J. Williamson, Attorney
The Indiana State Bar Association (ISBA) encourages attorneys to promote equal access to justice through pro bono work for underserved residents. The United
States District Court for the Southern District of Indiana has a growing need for volunteer attorneys to assist pro se litigants. This Court also provides a vehicle for volunteer lawyers to help; it is called the Mediation Assistance Program (MAP). The MAP program allowed me to fulfill ISBA’s charge.
Is My 401(k) Plan Ripping Me Off?
By: Lynn A. Toops, Attorney
Do you know whether your 401(k) plan administrator is making decisions in the best interests of your financial well-being? One group of Indiana employees has asked that question and now is taking action to protect themselves.
In December 2015, some Indiana residents with 401(k)s alleged in a class action lawsuit that Anthem breached the fiduciary duty owed to 401(k) plan participants by allowing the charging of unreasonable fees to 401(k) accounts. The Anthem plaintiffs contend that, even though cost-effective options exist, Anthem selected high-cost and badly-performing investments.
Consumer Privacy Violations: Hackers Aren’t the Only Threat
By: Lynn A. Toops, Attorney
So much attention has been focused on cybersecurity and data breaches that consumers are focused now more than ever about the privacy of their personal information. Forbes Magazine recently reported on the 20 major consumer data breaches of 2014. Many of the companies on the list were retailers whose customer payment systems were compromised. Customers took action by having credit accounts frozen and cards reissued.
A Consumer’s Guide to Medical Identity Theft
By: Lynn A. Toops, Attorney
It’s an unfortunate circumstance that we need to have a discussion about medical identity theft. Media reports about computer hackers and data breaches are on the rise and millions of unsuspecting consumers are finding themselves as victims of identity theft and dealing with the resulting hassle.
Consumer data breaches on the rise
Earlier this year, Forbes Magazine reported on 20 of the major consumer data breaches of 2014. Most of these breaches involved consumer credit and debit card information. Businesses including Neiman Marcus, Target Stores, Michael’s Craft Stores, and many others announced data breaches that exposed to cyber thieves sensitive customer information that often included names, payment card information, and in some cases, addresses and email addresses. Hackers sell this stolen information to others who use it to obtain fraudulent credit accounts.
The Fairness in Class Action Litigation Act Can Strip Your Rights
By: Lynn A. Toops, Attorney
A bill was recently proposed in the House of Representatives targeted at class action lawsuits. The bill HR 1927 is titled the Fairness in Class Action Litigation Act but a quick read of the document demonstrates otherwise.
What is a class action?
Class action lawsuits serve to protect consumers from scams, unfair practices, and events that could cause harm. Sometimes the costs to litigate an individual lawsuit may outweigh the damages done to an individual consumer. But when many people are harmed by the same circumstance, a class action lawsuit can help. Dozens or thousands of people who have suffered similar damages can band together into a single lawsuit to seek justice. Class action lawsuits are more cost-effective for the consumer and create a more efficient process in the courts.
Class Action Settlement Funds Free Consumer Lawyer for the Poor
By: Vess A. Miller, Attorney
As a class action lawyer, I spend most of my time trying to get money back for consumers and businesses that have been victims of a scam or unfair practice or event. One little-known benefit of the job though is that sometimes I also get to use a class action to help fund a charity or cause, through what is known in legal terms as the cy pres doctrine. The Indianapolis Star recently ran a pair of stories (1 and 2) about how one of Cohen & Malad’s class action cases is helping fund a free consumer lawyer for the poor, and I think it is worth sharing how the cy pres doctrine works in class actions and how it worked in that case.
Anthem Data Breach and Concerns About Fraudulent Tax Returns
By: Lynn A. Toops, Attorney
Identity theft has a lasting impact on consumers. Approximately 80 million people were immediately faced with the reality of identity theft after the nation’s second-largest health insurer, Anthem, announced a massive data breach of its computer system on February 4, 2015. Thieves stole customer names, birthdates, social security numbers, addresses, and employment information from an Anthem database that contained information about current and former Anthem customers–Everything a hacker needs to get fraudulent credit card accounts, loans, and even tax refunds.