Today’s outrageous social media story concerns Patrick Snay, who settled a lawsuit against his former employer for $80,000. The settlement agreement contained a confidentiality clause that he apparently violated by telling his daughter that “he’d settled and was happy with the results,” and that his daughter apparently violated when she posted this on Facebook:
Mama and Papa Snay won the case against Gulliver. Gulliver is now officially paying for my vacation to Europe this summer. SUCK IT.”
Gulliver, the defendant, saw the posting, refused to pay the settlement due to the breach of the agreement, and now the whole thing is front-page news.
Bankruptcy is sort of a relief valve for the economy. When financial pressure (debt) builds up to a certain point, the relief valve opens and people use bankruptcy to discharge their debt. Then, they go back to being consumers and the economy can return to a healthy state. There are other relief valves, of course, but bankruptcy is really the only one available to consumers. Bailouts are for too-big-to-fail banks, not the little guy.
If consumers cannot declare bankruptcy, they cannot go back to being consumers. That means the pressure stays high and the economy has trouble returning to a healthy state.
Two weeks ago, it was big news when a Salt Lake City school took lunches away from students when their card was declined at the register. (Students at many schools use a card to buy lunches, and parents are responsible for depositing money to the student’s lunch card account through the school’s website.)
It turns out that many Minnesota schools do the same thing. According to the StarTribune:
A majority of public school districts in this state deny hot lunch — or any lunch at all in some cases — to children who can’t pay for them. Some schools take the meals from students in the lunch line and dump them in the trash when the computer shows a deficit in their lunch accounts.
Pretty striking. Can we all agree this is a problem, even if we can’t all agree on the solution?
From insideARM, the recommendations include:
Under the terms of the settlement reached in several class actions against Midland Funding for its (apparently past) practice of employing robo-signers to execute affidavits for debt buyer lawsuits, each class member would receive under $20 — and that’s it. The Sixth Circuit rightly decided this was unfair (pdf).
Unfortunately, the Sixth Circuit seemed to think the settlement was unfair primarily because the named plaintiffs (i.e., those whose names actually appeared on the complaints) would receive $8,000 plus the elimination of their debts. The class members who opted into the settlement just got $17.38 each, and still owed their debts:
While there are a lot of people you can blame for the state of the US economy, government regulators are at the top of the list. So it’s satisfying that someone has finally taken them to task. Elizabeth Warren, finally on the Senate Banking Committee where she belongs, had some hard questions for banking regulators yesterday, specifically on why they are happy to accept pennies on the dollar to settle claims against banks.
What she got in response was a lot of hemming and hawing by the spineless regulators in question, none of whom seemed to know the last time anyone took a bank to trial.
I’m a little concerned that too big to fail has become too big for trial.
Right now, you have a right to a free credit report, but not a free credit score. That’s annoying, because the score is what really matters whenever you apply for credit. Consumer Union wants to make it easier for consumers to get their score, and is putting in motion a grass-roots campaign to put free credit scores on Congress’s agenda.
So contact your representatives, and let them know you want a free credit score. Here’s where you can find out how to contact them:
Americans spend nearly $6 billion on digital music every year, and that number is growing fast. That is an already-huge and fast-growing pile of digital things. But there is a problem with all those digital assets. Even though you can take your digital music, movies, and books with you everywhere you go, they are much harder than the physical version to give to someone else.
That is because digital things and physical things are treated differently. When you buy a digital thing, it’s more like you are paying for the right to use it in ways specified by the creator of that thing. When you buy a physical thing, on the other hand, you own that thing. You can sell it, loan it, or give it away. Eventually, we all die and give everything away. Maybe our kids aren’t thrilled to get a complete set of Fleetwood Mac records, but someone else might want them — and be willing to pay money for them.
But you cannot pass on most of your digital assets. Not legally, anyway.