Consumer Fraud Archive

Overdraft Fee Irony: Bank Causes Overdraft, Then Charges for it

July 29th, 2010. By Hunter West

File this one under “WTF”.

Devon Donovan was just a kid with some cash and a savings account. Cash from hours worked as a lifeguard, when she could have been swimming. Hours working as a babysitter, when she could have been hanging out with her friends. When she was given money for her birthday and at Christmas, she put it away to save towards school trips.

In other words, Devon was a kid who got it right. She didn’t spend wildly. She saved her money. And when she went off to college, she kept what she assumed was a couple of hundred bucks or so in that account to save for a rainy day.

That’s what savings accounts are for.

Instead, a bank unjustly robbed her of her savings and the message was clear: we don’t care about your laudable savings habits, we couldn’t give a flying fig that you’re a kid with the right idea and we couldn’t be bothered to acknowledge such good behavior.

Legally, Citizens Bank was in the clear. But morally, is it right? Is it fair for any bank to do what Citizens Bank did to a citizen who deserved better?

Citizens Bank decided, starting in 2007, that it would begin charging a monthly fee of $5 for balances under $500. The notification, as it turned out, was a small line at the bottom of a statement from November 21^st, 2006 referring to the new policy taking effect on January 8^th of the New Year.

There were also new limits on monthly transactions and fees for what were described as ‘excessive transactions.’

Obviously, Devon did not see the innocuous notification on her bank statement. Besides, she Read the rest of this entry »

Tags: Banking, Citizens Bank, Overdraft fees
Posted in Consumer Fraud, Emerging Issues | 4 Comments »

Lawyers Beware – Devious Scam Can Cost You Big Time

July 15th, 2010. By AbiK

Seems there’s a new and not-so-little lawyer scam going on. No calling a law firm about a package found on a subway, here. This one’s more devious and it involves some big cash.

According to a report out of wbztv.comin NH, two lawyers were targets of an international internet scam recently. The scammers used internet messages, fake companies and counterfeit checks in order to retain–albeit fraudulently–the lawyers.

Here’s how it worked:

It’s sort of like a Moneygram scam, actually. The lawyers were told that the fake checks were either settlement money or retainer fees. The lawyers were then instructed deposit the “money” and to then wire some money to someone else involved with the case.

The scammers were even doing things like using faux law firm stationery to make it look like it was opposing counsel who had sent the check.

One of the lawyers targeted was fortunate enough to have raised an eyebrow—he did some snooping around and found out that the check was counterfeit. He then contacted the attorney general’s office and state banking officials.

The other lawyer was not so lucky. He went and deposited the check and wired half the amount of it, a whopping $240,000, to a fake client of the company that retained him. Guess what? The $240k was yanked from his account and now it’s bye-bye. His loss. And a big one it is.

According to wbztv.com, Assistant Attorney General Karen Gorham said no arrests are anticipated.

No surprise.

Unfortunately, with scams like these—just as withMoneygram scams—it’s very difficult to track down the perpetrator.

So lawyers beware…

Tags: Fraud, Lawyers, scam
Posted in Consumer Fraud | 2 Comments »

KFC Free Chicken Lawsuits – Let’s do Chicken Right

July 13th, 2010. By LucyC

KFC and Yum! Brands Inc got hit with some bad news this week—a judge in Chicago has ruled that four lawsuits filed against them can proceed. What’s the beef? A bunch of crow. (Be warned, this could get worse…I’m on a roll). 

In fact, it’s all about chicken—free chicken—KFC grilled chicken meals with two sides and a biscuit, in fact. Cast your mind back to May 2009, when Oprah Winfrey announced that KFC was making coupons available across the country for the free meal. Well, no surprise—KFC was inundated. I recall this making the national news—people lining up for their free meals—with coupons in hand—only to be provided with a ‘rain check’ coupon when they got the counter. 

It should be noted that KFC printed more than 10 million coupons, according to a story in BusinessWeek. A spokeswoman for KFC is quoted in the BusinessWeek article, saying “Due to the overwhelming response, we distributed millions of rain check coupons for the holders of valid coupons who we were unable to serve during the offer period.” 

The promotion was supposed to run for two weeks and instead got shut down after two days. Some 5.7 million people were allegedly denied their free meals, which apparently retail for $3.99. 

So, a class action lawsuit has been filed. The judge in Chicago believes the allegations have grounds for common law fraud. 

Well. I’m in two minds about this. First of all, it was a nice gesture of KFC to offer these Read the rest of this entry »

Tags: Free Chicken, Kentucky Fried Chicken, KFC, Oprah
Posted in Consumer Fraud | 2 Comments »

Need a Job? What about Full-Time Plaintiff? Cha-ching!

July 6th, 2010. By Hunter West

Today, I am embarking on a career change: 

FULL-TIME PLAINTIFF.

I may not be around as much, as I will always be in court—and my name will be in the news a lot, so at least you’ll know what I’m up to. I won’t have to blog as frequently, to keep you apprised of life in the Hunter household. 

You will salivate at the size of my bank account, even after legal fees are deducted. Of course, the strategy is to sue for legal fees, too. 

What set me on this course to dramatically improve my fortune? 

Look north, to Canada, and you will see what opened my eyes. 

Last week, two sets of parents sued the Greater Toronto Hockey League, one of its clubs and four coaches for $25,000 each for the heinous act of cutting their sons from a midget junior ‘A’ team during tryouts in April. 

“Their direct actions have caused irreparable psychological damage to [plaintiff’s] self esteem as an impressionable teenager and demoralized [plaintiff] as an athlete and team hockey player with his peers,” one claim reads. “The conduct by all defendants destroyed the dignity of my son, whom in good conscience gave his team nothing but his best efforts.” 

Statement of claim 2: “When [plaintiff] was advised of his termination by my wife and I, he vowed never to play the game he loved since childhood. And, moreover, his misguided group of defendants demoralized my wife and I, whom had gone well beyond the call of duty as parents in support of the [defendant] for two seasons.” 

That was the clincher, dear friends—although I’ve been giving this career change serious thought for some time…ever since I heard of the Canadian lawsuit back in the winter by a woman who is suing her mobile phone service provider for ruining her life. How? Well, due to a billing change by the service provider, the plaintiff’s husband Read the rest of this entry »

Tags: Defective Product, Lawsuit, Lex Levity
Posted in Consumer Fraud, Lex Levity | No Comments »

How to Scam A Lawyer…?

July 2nd, 2010. By AbiK

This is priceless. I’m doing my morning download/debrief from all the media and legal sites I follow and I come across a gem from over at ABAJournal.com. It’s a story about a 50-year old con artist who—and here’s the priceless part—was SCAMMING LAW FIRMS.

You have to take pause with this one.

Not because the perp was charged with second-degree forgery and petit larceny—hopefully he wasn’t engaging in such activity as his catch-up plan for boosting retirement savings—but because of the nature of the scam itself.

Here’s the deal: apparently this guy calls law firms, says he’s “Jimmy” (aka James Hill) and that he “found” a package—on the subway–that was addressed to the aforementioned firm. Ok, perhaps Good Samaritan, right? But here’s where the scam part comes in. He tells whoever’s on the phone at the law firm that he will deliver the package if the firm pays for his cab fare. 

Now, no, this is not some case of “please get a Moneygram wired to me at the corner of Walk and Don’t Walk” (yes, a nod to Lily Tomlin). No—this guy actually had a package that he would deliver. And then the law firm would reimburse “Jimmy” for his cab fare—and according the the abajournal post, sometimes that included tips!

That’s the low-down, and here’s my list of what’s wrong with this picture…

1. Crime scene is NYC. Is there any true, native New Yorker that would not raise an eyebrow upon receiving such a call?

2. It’s a law firm. These guys litigate this stuff all the time. Hello?

3. “Jimmy” “finds” the package on a subway. Ok, you could argue Read the rest of this entry »

Tags: law firms, New York, package scam, scam
Posted in Consumer Fraud, Emerging Issues | No Comments »