Cleveland Law Library Weblog

Customers Suing Over Odometers

As part of an investigation, News Channel 5 has discovered possible inaccuracies in the way some car odometers measure mileage. Although the condition of your tires can apparently have an effect on whether your odometer records your miles accurately, the investigation revealed that lawyers are claiming that certain cars regularly overstate mileage by 4%. This has some consumers mad, and they have already brought suits against 2 big automakers. Some of their claims relate to consumers having to pay for extra miles over their limits when they turn in their cars. According to the article, the National Highway Traffic Safety Administration does not regulate the accuracy of odometers.

Ohio AG Focusing on Unlicensed Colored Contact Sales

Yesterday, on behalf of the Ohio Optical Dispensers' Board, Ohio Attorney General Marc Dann filed requests for TROs and injunctions against 6 businesses that are allegedly dispensing colored, cosmetic contact lenses without a license. Dann's office has issued a detailed Press Release on the actions, which name Two Cousins and Two Cousins Beauty Supply, both of which are located in Cleveland. The dockets in the cases (Nos. CV-07-639798 and CV-07-639799) can be viewed on the Cuyahoga Common Pleas Court's docket and have been assigned to Judges Eileen Gallagher and Joan Synenberg, respectively. According to the Press Release, four (4) other defendants have been sued in Athens, Canton, Columbus and Toledo.

Profs at OSU Sue Over Credit Card Offers

The Attorney General has sued 2 credit card companies, claiming that they baited hungry college students at Ohio State University with free food in order to get them to sign up for credit cards. According to Columbus Business First, the faculty members are suing Citibank (Case No. 07 CV 012591) and Campus Dimensions Inc. (Case No. 07 CV 012592) under Ohio's Consumer Sales Practices Act for failing to disclose the 'catch' that came with the free food they were offering at Potbelly Sandwich Works and OSU La Bamba, 2 restaurants in Columbus, Ohio near the OSU campus. In what sounds like a sting operation, the article reports that students and faculty at OSU's Moritz College of Law have been monitoring the credit card activity for over a year.

Only Nautural Persons Can Sue Under Ohio Consumer Sales Practices Act

The Ohio Supreme Court has issued an opinion in Culbreath v. Golding Ents., LLC holding that only natural persons have standing to pursue a cause of action under Ohio's Consumer Sales Practices Act. The case was brought by a Columbus law firm that received an unsolicited fax from a "gentleman's club." The firm sued under both the federal Telephone Consumer Practices Act and the Ohio CSPA, and the Court held that it lacked standing under both sets of laws.

Ohio Attorney General Pursues Mortgage Lenders

Ohio Attorney General Marc Dann has sued 10 mortgage lenders as part of an initiative to enforce Ohio's predatory lending laws, which were effective on January 1, 2007. Dann's suit alleges that the lenders pressured appraisers to inflate property values, causing borrowers to pay more than their homes were worth. Dann is asking for injunctions, civil penalties, and reimbursement for affected consumers. Two of the lenders who were sued are from the Northeast Ohio area- First Ohio Banc & Lending Inc. of Independence and Island Financial LLC of Twinsburg. Five of the complaints were filed in Franklin County, 3 were filed in Belmont County, and 1 were filed in each of Butler and Hamilton Counties. Click here to read the Columbus Dispatch's article on the lawsuit. You can also check out the Crain's Cleveland Business article. Click here to reach Ohio's Office of Consumer Affairs.

Public Citizen Group Objects to Carfax Settlement

A consumer class action lawsuit against a provider of vehicle history reports is pending in the Trumbull County Court of Common Pleas.  The case is West v. Carfax, Inc. , Trumbull County Case No. 04-CV-1898.  For a claim form, copy of the proposed settlement order, notice to consumers and more information go to: West v. Carfax Settlement Website . The docket can be viewed at the Trumbull County Case Search.

Carfax.com provides vehicle history reports on used cars for a fee.  The information comes from title checks and other sources.  The reports show if the car has ever been in an accident, flood or fire; odometer problems or whether the car is a buyback/lemon.  The report shows the type of owner (individual, fleet, rental car, leased, taxi, police) but does not provide the names of previous owners.

Carfax was sued because while their database used to contain complete information from all fifty states, they lost access to complete police accident records from 22 states and the District of Columbia from the National Crime Insurance Bureau database in 1998. Consumers were never told that some crashes from these states may not appear in the database.  See  Deal in Carfax Lawsuit Draws Fire by David Shepardson, The Boston Globe, Apr. 16, 2007.

A tentative settlement has been approved in the case, where customers would get $20.00 off an auto inspection and receive free and discounted Carfax reports over the next three years.  Public Citizen objects to the settlement, because vehicle inspections typically cost $100, a consumer may not need Carfax reports over the next three years, and inadequate notice was sent to customers.  The judge is considering Public Citizen's objections at a May 11 hearing.

Ohio AG Sues Public Records Provider

The Ohio Attorney General sued Courts Online for failing to deliver purchased services, misrepresenting the services offered in advertising, and failed to properly inform consumers about refund policies.  Courts Online provides unlimited access to public records and private databases for conducting background checks for $29.99 annually. The business is located in Miami County, but is not properly registered with the Ohio Secretary of State.  The AG seeks to shut down the company's operations until they remedy the violations and pay restitution to customers.    Source: Ohio Attorney General Marc Dann Sues Ohio Internet Company for False Advertising and Failure to Deliver , AG Press Release, Mar. 23, 2007.

AG Sues to Shut Down Alleged Predatory Lender

The Ohio Attorney General wants to shut down New Century Financial, a subprime lender accused of predatory lending.  The complaint, filed in Cuyahoga Common Pleas Court, alleges numerous violations of the violations of the Consumer Sales Practices Act, Ohio Mortgage Loan Act and Ohio Mortgage Brokers Act. Source:  Attorney General Dann Moves to Shut Down New Century Financial in Ohio, Attorney General Press Release, Mar. 14, 2007.  The press release has links to the complaint, motion for temporary restraining order and order granting the tro.   The case is State ex rel. Marc Dann v. New Century Financial, Cuyahoga Common Pleas Case No. 07-618660.

Secretary of State Moves to Dismiss Strickland Veto Lawsuit

Attorney General Marc Dann, representing Secretary of State Jennifer Brunner, moved to dismiss the action against her, filed by republican legislators seeking to overturn Governor Strickland's controversial veto of Am. Sub. SB 117.  Dann asserts that the republican legislators and the General Assembly lack standing to file the mandamus action.  The 126th General Assembly no longer exists and the legislators did not personally suffer any injury.  Dann also argues that mandamus is not an appropriate remedy. See Secretary of State's Motion to Dismiss.  See our prior posts:  1945 OAG Opinion Gives Insight into Strickland Veto Dilemma and Republican Legislators Sue to Overturn Strickland Veto.

Source: Dann Files Motion to Dismiss Veto Lawsuit, The Hannah Report, Feb. 28, 2007. 

New Credit Report Freeze Bills

The credit report freeze bills failed to pass in the last legislative session, so new versions have been introduced in the current session. The legislation will protect consumer's credit when they suspect they are the victims of identity theft.   HB 46 allows consumers to place a security freeze on their credit report for up to $10.00 fee.  Credit reporting services can charge up to $10.00 to lift the credit report freeze.  Consumer advocate Sheryl Harris has expressed dismay over the charges, because there are three credit reporting services, and the total cost of freezing and unfreezing reports may be prohibitive for some.  See "Bills to Allow Credit-Report Freeze" by Sheryl Harris, The Plain Dealer, Feb. 25, 2007. 

SB 6 is part of a larger privacy bill which specifies that Social Security numbers are confidential, specifies that certain personal information is not a public record and requires a public office to redact from a document that is otherwise a public record certain personal information.  (Summary from Ohio Capital Connection).   This bill allows charges of up to $5 for placing and removing a freeze.