The Illinois Personal Injury Weblog of Schaeffer & Lamere P.C.

Are You Being Manipulated?

From the Los Angeles Times via Yahoo! News: "TV Ads for Drugs Help Boost Prescriptions, Researchers Say," by Alan Zarembo

Doctors are easily persuaded to prescribe antidepressants — often unnecessarily — when patients mention having seen them in television advertisements, researchers reported Tuesday.

In an unusual experiment in which actresses posed as patients, doctors were five times more likely to write them prescriptions after the patients inquired about a specific antidepressant, Paxil. The actresses pretended to have a mild form of depression, a condition that does not require antidepressants.

The study, published in the current issue of the Journal of the American Medical Assn., suggests that direct-to-consumer advertising — on which pharmaceutical companies spend roughly $3 billion a year — can trump medical need in influencing how doctors prescribe drugs.

--Posted by Madison County Illinois class action attorney T. Evan Schaeffer of Schaeffer & Lamere, P.C.

Say No to Arbitration Clauses!

From the St. Louis Post-Dispatch: "Consumer groups decry growing use of arbitration," by Michael D. Sorkin and Ed Ronco--

On Thursday, opponents of binding arbitrations launched a nationwide campaign to stop them. They said such arbitration clauses have started to pop up just about everywhere, including in contracts for cell phones, credit cards, home repairs, automobiles and with physicians and HMOs.

The "Give Me Back My Rights!" campaign brings together more than 20 major consumer organizations and several lawyers' groups. Among them: Consumer Reports, Consumer Federation of America and the U.S. Public Interest Research Group.

They are calling upon consumers to close credit card accounts with companies that use binding arbitration, and calling upon the companies to remove those clauses from their contracts.

--Posted by Illinois personal injury attorney T. Evan Schaeffer of Schaeffer & Lamere, P.C.

Top 10 Consumer Protection Issues

From Yahoo! Finance: "Michigan Attorney General Mike Cox Announces 2004 Top 10 Consumer Protection Issues"--

As part of National Consumer Protection Week, Attorney General Mike Cox announced today the top consumer complaints of 2004 and urged Michigan residents to fight identity theft through action and education. Banking and credit complaints -- including identify theft -- continue to lead the annual list, followed by telecommunication and cable or satellite TV complaints, with complaints related to Internet use coming in third.

"Identity theft dominates the Top 10 list and I want to prevent identity theft by educating and empowering consumers," Cox said. "On March 1, Michigan residents will have access to free credit reports and I encourage them to obtain this important identity theft prevention tool. Through the continuation of the Attorney General's 'It's MI Identity' campaign, the office will educate consumers on how to obtain and understand their free credit reports, the importance of other identity theft prevention measures, and what to do if they are victimized."

--Posted by llinois Personal Injury Attorney T. Evan Schaeffer of Schaeffer & Lamere, P.C.

It Could Happen Here

From the Sacramento Business Journal: "AG issues warning on tax refund loans"--

The state's attorney general is warning California taxpayers to avoid "refund anticipation loans," which some tax preparers dangle as "instant" cash, but which often come with high interest rates.

"These short-term loans are a classic too-good-to-be-true product," said Attorney General Bill Lockyer in a prepared statement. "They're not instant cash. They're instant, costly, unnecessary debt. To enjoy illusory benefits, consumers have to pay interest and fees that can drive the effective annual interest rate higher than 700 percent. What's worse, these loans are aggressively marketed to low- and moderate-income families who are most vulnerable to sales pitches that promise quick cash."

--Posted by Alton Illinois Workers' Compensation Attorney Evan Schaeffer of Schaeffer & Lamere, P.C.

Illinois AG Files Suit Over Credit Card Scam

From the Illinois Attorney General: "Lawsuits Allege Two Florida Companies Targeted Illinois' Latino Residents with Credit Card Scam"--

Saying that two Florida companies preyed on Illinois Latinos who have had a difficult time obtaining traditional credit cards or sending money to relatives in Mexico, Attorney General Lisa Madigan has filed lawsuits against two Florida-based corporations and their owners for deceptive advertising campaigns.

In recent months, the two companies have bought time on Illinois Latino television and radio stations to air advertisements trumpeting that the providers of Latin Card and Pro Line Card are “… here to help out our fellow Hispanics.” Additionally, among other claims, the advertisements say that to obtain a card, “You do not need to have a Social Security number or the need to have a good credit history. All that is in the past...”

--Posted by Alton llinois Personal Injury Lawyer T. Evan Schaeffer of Schaeffer & Lamere, P.C.

Beward Tsunami Scams

From the Washington Times: "Tsunami scams beset Internet"--

Internet scammers have pounced on the outpouring of good will toward the victims of the Asian tsunami in their latest scheme to con people out of their money.    

Fake fund-raising messages have landed in the e-mail boxes of Internet users in the United States and other countries since the Dec. 26 catastrophe. Some of the messages appear to be direct appeals from the survivors; others are made to look as if they came from the organizations assisting the victims.   . . .      

"We would encourage people to make their donations directly to recognized charities and aid organizations to ensure that they are used for the intended purpose," said Andrew Lee, chief technology officer of Eset Software, a San Diego online-security firm.

Capital One Sued Over Marketing Practices

From MSNBC: "Capital One sued over marketing practices," by Bob Sullivan--

The Minnesota state attorney general’s office has sued one of the nation's largest credit card issuers, claiming it is misleading consumers with promises of “fixed“ interest rates, then hiking their rates as much as 400 percent.

Capital One and its subsidiaries are using bait-and-switch sales tactics, according to Attorney General Mike Hatch.  While the firm markets credit cards as having the nation's lowest “fixed rates,“ rates can and often do change, the lawsuit alleges.  In fact, 40 percent of Minnesota residents who've signed up with a Capital One card thinking their rate is fixed have hit a “tripwire,” causing an overnight rate hike, Hatch said.

Use Those Gift Cards Quickly

From Scripps Howard via the Quad-City Times: "If Santa brings a gift card, make sure you use it quickly"--

The 75 percent of shoppers who will buy gift cards this holiday must learn to scan the fine print . . . because the cards can carry all kinds of fees and rules including time limits for redemption, warns Bill Hampel of the Credit Union National Association.

Often the story here is use it or lose it,” he says. “Ask the vendor how long the gift card is good for, if it carries fees to check balances and the like and if the card will cost the recipient anything. If the answer is yes ... get something else.”

Help is on the way for gift card buyers, expected to spend $45 billion on cards this year, by consultant Bain & Co.’s estimate. The National Retail Federation predicts $17.34 billion worth to be sold this month.

States have begun policing gift card practices for hidden fees and other requirements that can erase the face value of the cards. Starting with California in 1996, a number of states have enacted laws extending expiration dates and prohibiting hidden fees, and a dozen more have proposed similar legislation.

Holiday Shopping Tips

Tips for consumers from the California Attorney General, beginning with this one: Returns and Exchanges--Know the Rules Before Buying.

Beware Holiday Scams

From the Arkansas Newport Independent:  "Attorney General warns of holiday scams"--

Each year, an increasing number of holiday shoppers use the Internet to buy gifts. While many Arkansans take advantage of the convenience of online shopping, Attorney General Mike Beebe wants to remind all consumers that scam artists also take advantage of the Internet in order to steal people's money or their identities.

"The online scams we expect to see during the holiday-shopping season are similar to ones we see the rest of the year," Beebe said. "However, we believe the volume of these scams will multiply to coincide with the increase of Internet use for holiday shopping. The best way to foil these opportunities for Cybercrime is to be a savvy Internet consumer."

This advice is as applicable in Illinois as it is in Arkansas.