Newsbreak: Washing Machines Grow Mold [Video]
If you get a check in the mail, no matter how small the amount – be careful before you cash it.
A Brooklyn, N.Y., couple is suing the country’s largest subprime loan servicer, Ocwen, in federal court. They say Ocwen and financial company Cross Country Home Services send customers a $2.50 check that looks like a mortgage refund. But in small print homeowners are notified that by cashing the check, they will be enrolled in a $500 per year home warranty, which increases their monthly mortgage payments. The plaintiffs say people get locked into services they never use because they don’t know they are buying them.
If you’re looking to bring a new front loading washing machine home, ask questions.
The largest manufacturers – LG, Sears and Whirlpool – are being sued in a class action that alleges design defects. The plaintiffs say unlike top loading washers, front loaders must be air tight. This causes growth of mold and mildew that makes washed clothes smell foul.
The manufacturers have refused to honor warranties, saying people just need to clean out the drum after each use and to leave the door open.
Finally, Home Depot is accused of shaking down its customers accused of shoplifting, according to Bloomberg Businessweek. Jimin Chen paid for more than $1,400 of goods from a San Leandro, Calif., store. He used a pair of $3.99 work gloves to load up lumber. When he checked out, he added the gloves to the top of the pile, but they were not scanned.
Security detained Chen for theft. Home Depot later sent two letters, first demanding $350, then $625 to settle the shoplifting claim.
Chen filed a class action lawsuit. He claims Home Depot intimidates customer with false threats of criminal charges and civil claims. Chen’s attorney says the company sends out hundreds or thousands of these letters as a fraudulent business practice, collecting big money.
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