Class action risks
December 29, 2005 9:58 AM Subscribe
Might a business blacklist customers for participating in a class-action settlement?
posted by rolypolyman to law & government (11 answers total)
I suppose that "legally" they can't, but I know many megacorps don't play by the rules or they wouldn't be in trouble in the first place. Lately I seem to get a settlement announcement almost monthly regarding one company or another. I wouldn't have any bones with participating if it was GM or a toy company, because they don't keep track of customers and will just sell you more of their product. But what if it's a business you have a close relationship with?
For example, the latest settlement came against my merchant bank. I'd get $80, but I rely on them to process a lot of my income. Merchant banks currently operate in a free-wheeling fashion like Visa and Mastercard did in the 1960s and 1970s -- they have considerable license to shaft customers with things like MATCH (formerly TMF). To me, this is more risk than I can swallow. But what happens if I participate against my credit card issuer, my regular bank, my insurance company, and so forth? I can't help wondering if I'd be put in their "high risk" tiers, kind of like what TXU was trying to do
with credit scores.