Category Archives: Consumer Litigation

ABA Issues Formal Ethics Opinion on Prosecutors Who Rent Out their Letterhead to Debt Collectors

by Deepak Gupta Since its inception, this blog has covered the pernicious practice of prosecutors who rent out their name and authority to private for-profit debt collectors. As readers may recall, these debt collectors use official-looking letterhead to threaten consumers who have accidentally bounced checks for household purchases  — consumers are told they'll face criminal […]

For the Third Time, Supreme Court Takes Up Disparate-Impact in Fair Housing

by Deepak Gupta Perhaps betting that the third time's a charm, the Supreme Court this morning once again granted a petition over whether disparate-impact claims — based on seemingly neutral practices with discriminatory effects — are cognizable under the Fair Housing Act. The case, Texas Deparatment of Housing and Community Affairs v. The Inclusive Communities […]

Bounceback, Inc. Sued for Using Seal and Letterhead of Prosecutors to Collect Debts

by Deepak Gupta When Roz Terrill wrote a $41 check at the local Goodwill store to buy clothes for her two special-needs children, she had no idea it would lead to threats of criminal prosecution against her. Because of a banking mix-up, Roz’s check did not clear. Months later, she received a letter that looked […]

New lawsuit by payday lending industry challenges “Operation Choke Point”

by Deepak Gupta The payday lenders' main trade association, the Community Financial Services Association, brought an unusual lawsuit this week against three federal regulators — the Fed, the FDIC, and the OCC — in an effort to challenge a controversial federal initiative known as "Operation Choke Point." The case was filed in federal district court […]

Media Matters Talks to Paul Bland about Class Actions and Justice

Co-blogger Paul Bland, the new Executive Director of Public Justice, was recently interviewed by Media Matters.  In an engaging interview in his office Paul discusses his singular career as a champion for consumer rights, the importance of class actions as a means of challenging corporate wrondoing, and the pro-corporate bent of the Roberts Court. It's a […]

NACA adopts Third Edition of its Standards and Guidelines for Litigating and Settling Class Actions

by Stephen Gardner The Board of Directors of the National Association of Consumer Advocates adopted the Third Edition of its Standards and Guidelines for Litigating and Settling Class Actions on May 13 (Download here), continuing a tradition of setting high standards for the ways consumer class actions are handled that began with the first Guidelines adopted in […]

Fourth Circuit: FDCPA Gives Consumers the Right to Oral Disputes

Does federal law require debt collectors to give consumers the right to make oral disputes (as the Second and Ninth Circuits have held), or may debt collectors insist that any disputes be made in writing (as the Third Circuit has held)? Today, the Fourth Circuit issued a short published opinion agreeing with the Second and […]

Should substantive due process stop courts from enforcing excessive penalties in consumer contracts?

For years now, some have argued that if substantive due process prohibits disproportionately large punitive damages awards against major corporations, it also should stop courts from enforcing excessive contract damages against consumers. See Seana Valentine Shiffrin, Are Credit Card Late Fees Unconstitutional?, 15 Wm. & Mary Bill Rts. J. 457, 460 (2006). Two Ninth Circuit judges […]

AARP, Center for Science in the Public Interest, and Consumer Attorneys of California file amicus briefs in Ninth Circuit Supple appeal

I recently discussed the Ninth Circuit appeal in Cabral v. Supple, a fascinating case about consumer fraud class actions, infomercials, snake oil, the placebo effect, and behavioral economics. Our opening brief was filed last week. Yesterday, three organizations filed amicus briefs supporting us: AARP focused on the effect of marketing techniques aimed at making false health-benefit claims to […]

Snake oil, the placebo effect, and status quo bias: Should evidence of “satisfied customers” defeat a consumer fraud class action?

by Deepak Gupta Should a defendant in a consumer fraud class action be able to defeat certification through evidence that its customers say they are "satisfied," even when the the allegation is that the product is snake oil?  Or would that transform the placebo effect into a defense to fraud? That's the question the Ninth […]