Oregon legislature provides consumers with tools to fight bank fraud

Yesterday, the Oregon Senate passed legislation that provides Oregon consumers with a powerful tool to fight bank fraud.  HB 3706 amends the Oregon Unlawful Trade Practices Act so that banking and credit practices are now included in Oregon’s signature anti-fraud law.

The bill previously passed the Oregon House. But there were a few amendments along the way, so I believe that there will need to be a reconciliation process before the governor can consider it.

Rep. Nick Kahl pushed the bill on the house side. He’s proving himself a tireless advocate for working Oregonians. On the senate side, Sen. Suzanne Bonamici (D. Beaverton) championed the bill, continuing her great work for Oregon consumers. News report here. Our Oregon stood up for consumers on this bill. They deserve our appreciation.

The bill is important for consumers because it ends special rights for banks. The Unlawful Trade Practices Act sets modest standards that protects Oregon consumers from fraud. For years, banks and insurance companies have been exempted from it.  Why shouldn’t they be held to the same standards as car dealers and cable TV companies? If a bank engages in fraud, it should have to answer to consumers. This is not particularly difficult.

I’m especially taken by some of the grumbling from those who opposed this legislation. I guess its easy to forget bank bail-outs, CEO salaries, and the lack of meaningful banking reform.  The legislature provides consumers with modest protections against nickel and diming and fraud, and banking industry cheerleaders complain that it will simply cost banks more? Amazing. Maybe they were asleep or comatose when the economy melted down.

So at bottom, it’s a good day for consumers because Salem showed leadership.

Update: Western Culinary Inst. Career Education Corp. class action moves forward

Recently, Multnomah County Circuit Court Judge Richard Baldwin signed this order (pdf) certifying an Oregon consumer fraud class action against Western Culinary Institute and Career Education Corp. It took us a while to get to an order. That’s not unusual in class action cases.

There is a quiet feature to his ruling that has an important impact on the case. Judge Baldwin refused Western Culinary Institute and Career Education Corp’s request to allow an immediate appeal of his decision.

That’s important for class members because each appeal can add years to the life of a case.  Judge Baldwin also ordered the parties to present a proposed notice plan, so the next step on the case should be notice to the class.

It’s good news for Western Culinary Institute alums who are drowning in debt.  For our part, it’s a great day. Brian Campf and I continue to push forward. It’s been a long road. There is still far to go. Onward.

If you attended WCI (now known as Le Cordon Bleu Portland) on or after March 2006, and you haven’t been in touch, feel free to use the contact information to connect. We can answer questions about the status of the case and also get you into our tracking system.

David Sugerman

Comcast late fee class action update–reflections of a consumer class action lawyer

For those interested, here is an update on the Oregon late fee class action against Comcast. The short version is that with my co-counsel, Tim Quenelle, I filed a class action against Comcast for its illegal assessment of cable TV late fees in Oregon.

We filed this case in July 2004. No, that’s not a typo. The case will turn six this summer. More background on the history of the case  here and here.

While Comcast disputes this, the class claims that Comcast illegally billed cable TV late fees in Oregon for years. Comcast claims that it’s done nothing wrong, or if it did, these were simply technical violations. Comcast has many other defenses. That’s their choice, of course.

So the latest–the update–is that Comcast is asking the court to allow it another appeal. This time Comcast wants to appeal the court’s decision to allow the class to seek statutory damages of $200 per person.  Comcast already lost an earlier appeal on whether it could require mandatory arbitration of these claims.

While no one has said this directly to me, it’s pretty apparent that the defense is really to drag this out as long as possible. In that respect, the litigation strategy is ironically the opposite of the speedy internet service that Comcast advertises.  But of course, Comcast makes those choices. I suppose it makes sense if the alternative is facing the prospect of payment of millions to Oregon subscribers.

To hear some self-appointed experts talk, consumer class actions are nothing more than stick-’em-up get-rich opportunities. The damages at issue in this case are calculated in the millions. Comcast billed late fees in six dollar increments. While few consumers lost large sums of money, when you total the numbers you come to realize that billing six bucks a pop from many people is a great way to make money.

Meantime, of course, the lawyers pushing the case soldier on. We get paid if and when we bring the case to a successful conclusion, based on a fee that the court must approve as reasonable and fair. And in the six years we’ve been pushing the case, we’ve invested time and money to move it forward.

If you doubt the wisdom of that, let’s consider the alternatives. We deregulated our economy beginning in the 1980s.  So regulation isn’t an option. Even so, I imagine we can all agree that allowing businesses to illegally collect money is unacceptable.  So what’s left, other than the courthouse, when corporations rip off consumers?

For Comcast Oregon cable TV subscribers who paid late fees, all I can say is that we’ll see this through to the end. That may be another 10 years, but so be it.  My son and I were talking the other day, and he related that he’s been accused of being stubborn. “You come by it honestly,” I replied. The reality of our world is that obstinate consumer class action lawyers are one of consumers’ best weapons against corporate greed running amok.

Update on Western Culinary Institute/Career Education Corp. class action

This is an update on the Oregon consumer fraud class action against Western Culinary Institute and Career Education Corp. that I am handling with co-counsel, Brian Campf.  Lots of background here and here.  I know many people have questions about where we are on this.

We’re in the process of getting an order signed that’s the next step forward. It’s a bit of a slow process. My hope is that we’ll have the formal order entered in the next week or two and will start the process of providing notice to the class.

If you attended Western Culinary Institute/Le Cordon Bleu Portland after March 2006, you may be eligible to particpate in the case. If you haven’t contacted us, it would be helpful to hear from you. Feel free to use the contact button to find us.

I’ll continue to post updates on this site.

David Sugerman