How to verify class action settlement notices and safely claim what you're owed
HOUSTON - Verizon, Google, Fortnite. Those are just a few companies that are settling class action lawsuits for alleged wrong doing against their customers.
But when you receive notices to claim a settlement check or join a suit, do you respond? Millions of dollars get left on the table every year.
Some class action lawsuits and settlements with companies can pay off for customers, some not so much. Here are steps to determine whether you should join one, and how to do it safely.
Maybe you received an email about claiming part of Verizon's $100 million settlement over allegedly undisclosed fees.
Or a notice that Apple may owe you up to $30 for a settlement over its Family Sharing Feature.
When companies are sued for things like data breaches, overcharging, or product defects, class action lawsuit and settlement notices are sent to customers. But many customers don't respond, wondering if it is real or a scam.
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So check it out first. Simply do an online search for the company name and the words "lawsuit" or "settlement."
"Look up the law firm, make sure it’s legitimate. Call them, don’t just rely on a postcard you get in the mail," suggested Kim Palmer with Nerdwallet.
You can also look up class action lawsuits and settlements on the sites ClassAction.org or Consumer-Action.org.
Once you know a suit is legitimate, ask the next question: is it worth your time?
"There’s really no downside to joining. You have to enter some information about yourself, usually share some personal details about yourself. And you want to set realistic expectations. In general, these are really small payouts, and it can take years to get that money," said Palmer.
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Often payouts are just a few dollars, but sometimes they are more. Apple just sent plaintiffs $92.17 each to settle allegations of slowing down iPhones.
But even if a payout is small, consumer advocates say joining suits can help other consumers get justice and help deter businesses from harmful consumer practices.
"As a consumer, it’s always a good idea to make your voice heard," said Palmer.
Consumers can also opt not to join a class action and file their own suit against the company, which is usually done in small claims court. You won't have to hire an attorney to represent you in small claims court, but it's a good idea to consult one first.
Consumers who sued Equifax individually over the 2017 data breach received larger individual verdicts than plaintiffs in the class action.