Legal columnist Mark Rasch recently received a $25 debit card as an honorarium for giving a speech. To "activate" the gift card from GreenDot.com, he had to give them his name, address, telephone number, Social Security number, user ID, PIN, and answer to three security questions – all that just for 25 bucks. In fact, what he really did was to open a bank account with $25 and a monthly maintenance fee of $4.95. He apparently agreed to all of this on the website of GreenDot.com under their terms of service. But that’s not all he agreed to.
Years ago, he got a Wachovia stored value card, which similarly had outrageous fees – fees for putting money in, taking it out, checking the balance, loading the card, not loading the card, as well as an annual fee, monthly fees, etc. It amounted to usurious interest rates and fees of over 3000 percent. When he called to dispute one of the fees, the person on the other end told him that his wife (who had just handed him the phone) had authorized the fee–she did not, and he knew this because he was standing right there. That's when Wachovia said they had recorded the call. To a litigator, them's fightin' words.Read more...