By Linsey B. Knerl

Many times, class-action lawsuits get a bad rap for being frivolous, reaching, or just plain unnecessary. They can usually take forever, and sometimes don’t even offer up any monetary or tangible compensation. Then there are the lawsuits that leave me scratching my head, wondering why these people weren’t arrested. This is one of those lawsuits.

If you had money debited from a checking account as a result of a telemarketing phone call between 2003 and 2007, you may be included in this recent settlement. All the details can be found at www.restitutionpayment.com but I’ll provide them anyway.

During the course of several telemarketing companies’ phone business interactions, personal bank account information was obtained and allegedly provided to “third-party payment processors,” who then used the info to create unsigned checks in the names of the people who were originally called. To make matters worse, the lawsuit alleges that Wachovia opened back accounts for these payment processors, and accepted deposits of these same unsigned checks. Processors who are being named in the lawsuit include Payment Processing Center, Netchex, Guardian Marketing Services Corp., and YMA Company (also known as “Your Money Access”).

The lawsuit refunds money to those who were affected by the transactions in one of two ways: 1) It refunds money that was withdrawn from bank accounts; and 2) It reimburses for bank fees that may have been charged as a result of the transactions (i.e. overdraft fees, bounced check fees, etc.). You don’t need to do anything to get money if affected in the first way, but to get money for the fees, you will need to file a claim.

The process is very simple, and if you don’t want to provide hard copies of bank records, you can apply for the “Easy Refund” for a flat $35 refund. (You most likely received a settlement letter if you are eligible, and you will need this for your online claim process.) If you feel that you are eligible for more than the $35, as a result of multiple fees, you can fill out the long form, attach documentation from your bank, and send it through the mail. (All the forms you will need are available at the official website.)

The fairness hearing will be held on January 22, 2009, and you have until March 4, 2009 to submit a claim form for refund of fees. If you are only eligible for the refund of funds that were originally withdrawn, you should automatically receive a check, with no action needed on your part.

I can only assume that during the 4-year period covered in this lawsuit there were many cases of unsigned checks being generated and deposited. I hope that this action has led to more stringent regulations for the use of bank information and how checks are written in the future. If you are ever uncertain, don’t give out your information over the phone. Ask to have a copy of your bill or statement sent to you in the mail, and refer to the FDCPA (Fair Debt Collection Practices Act) for all the legal ways that telemarketers and debt collectors are allowed to conduct business.