Posts Tagged ‘ Visa ’

Gift Cards a Real Gift for VISA…Cha Ching

November 24th, 2010. By LucyC

So—just when you think that banks and credit card companies cannot—could not—would not?—come up with or instigate any further deceptive business practices, they have. Are you sitting down?

A man and a woman in Illinois have filed a class action this week against VISA, Services Credit Union and 1st MidAmerica Credit Union alleging that the companies failed to disclose administrative fees for gift cards. Now, before you blow this off because it doesn’t sound like a big deal—let me tell you, it stinks.

Short version—Karen Rhodes bought her father-in-law, Gene Rhodes, a gift card with a stated value of $50 valid through several months. However, by the time her father-in-law went to use the gift card it was only worth $2! Why? Undisclosed fees charged against the gift card.

The complaint states: “Defendants placed the valid thru date conspicuously on the front of the GiftCard with the intent that plaintiff and all those similarly situated will rely on the valid thru date when, in fact, defendants knew that, due to defendants’ application of Administration Fees, the GiftCard would not retain its stated value through the valid thru date.”

And ”On information and belief, and unknown to Ms. Rhodes, at the time of her purchase of the GiftCard, the actual cash value of the GiftCard was only $35.00, due to the Defendants’ application of administrative fees of $2.50 per month prior to the date of purchase.”

In other words the ‘undisclosed fees’ are deducted from the value of the gift card on a monthly Read the rest of this entry »

Tags: 1st MidAmerica Credit Union, Credit Card fees, Services Credit Union, Visa, VISA Gift Cards
Posted in Emerging Issues | 5835No Comments »2010-11-24+17%3A38%3A33LucyC

Week Adjourned: 10.23.09

October 23rd, 2009. By LucyC

Top Class Actions

Wynn Gambling with Employees Health? After all the noise about second hand smoke being a known risk factor for cancer, you would think the last thing an employer would want to do is wilfully expose its employees to the carcinogen. At the very least, why risk the lawsuit, right?

Wrong. The employees at Wynn Las Vegas Hotel and Casino filed a class action lawsuit this week, alleging that Wynn failed to provide a safe work environment for its employees and failed to protect them from the effects of second-hand smoke.

According to the suit, the risks are exacerbated for employees because not only is smoking permitted 24 hours a day, 7 days a week, but it is also encouraged. In some cases the casino gives cigarettes away to gamblers on the casino floor. What? That’s bad judgement no matter how you look at it.

The suit further claims employees that complain about the smoke risk losing their jobs. So, let’s see, you have to choose between risking your health or your livelihood. Or sue. Well—I’d choose the last option as well.