Be Wary Of Extra Fees

Everywhere we turn, it seems that we’re being assaulted with extra fees; $1.50 to use an ATM machine that’s not affiliated with your bank, $10 disconnect fee to change television service providers, $2.50 “fuel surcharge” on home delivery of the daily newspaper, $3.00 “surcharge” on in-room food service at a leading hotel, $50 for a second checked bag on a commercial airline, and the list goes on and on.   But have you ever stopped to consider whether these fees are actually permitted by the business that’s imposing them?   Have you ever stopped to ask “Did I agree to this when I accepted the service that’s being provided to me?”   Unfortunately, the “cost” of asking these questions and seeking to challenge the imposition of such fees is often not worth the aggravation and time that’s required to pursue it.   To many, the thought process goes something like this:  “20 minutes on hold with a customer service representative who, after listening to my plight, only passes me off to another rep, or pay the $2.00 fee?  Pay the $2.00 fee.”   And that’s where a class action comes in.

 

By aggregating the small claims of a great many people, the business practices of an otherwise large, corporate concern can effectively be challenged.  Class actions are successfully prosecuted when the barriers of entry to filing small, individual claims are high, and the injuries suffered by class members arise from a common course of treatment perpetrated by the business whose charges are being contested.   For instance, if the filing fee to commence an individual lawsuit would dwarf the damages that an individual consumer seeks to recover, then there’s an obvious disincentive to bringing an action on one’s individual behalf.   But if a class of persons who suffered the imposition of the same fee can be bundled, then the cumulative weight of such aggregated claims can be leveraged to obtain a recovery for consumers.   As a law firm that prosecutes consumer fraud class actions throughout the country, we’d welcome your input, feedback, comments and experiences if you encounter the imposition of fees or other business practices that offend your consumer’s sense of fair play.   We can be contacted at mdpcelaw.com or by telephone at 914-517-5000.

Heartland Payment Systems Discloses Credit and Debit Card Data Breach

One of the country’s largest credit and debit card payment processing companies, Heartland Payment Systems (“Heartland”) based in Princeton, New Jersey, announced on Monday, January 19, 2009, that credit and debit card numbers, expiration dates and cardholders names were stolen after its computer systems were hacked. Although the Heartland breach exposed the personal data of 600 million or more cardholders, and Heartland became aware of the breach in fall, 2008 -- and may even have been aware of the breach as early as May, 2008 -- it did not publicly reveal the breach until just two days ago, exposing millions of cardholders to the possibility of fraud for many months.

The Heartland data breach could wind up rivaling some of the largest data thefts in history. In January, 2007, the retail chain TJ Maxx (“TJX”) admitted that confidential credit and debit card data on more than 45 million customers had been compromised. Avivah Litan, a data security analyst interviewed by the New York Times, said that the Heartland breach may dwarf the TJX breach and could result in hundreds of millions in losses and other expenses. “If you add it all up . . . it could cost as much as half a billion dollars in losses – or twice as big as TJX,” she said.

Cardholders are advised to examine their credit and debit card monthly statements closely for any evidence of fraudulent unauthorized charges. Should you find unauthorized charges on your credit or debit card statements, and you believe that your credit or debit card information was stolen as a result of the Heartland breach, please contact us immediately to discuss your legal options.