On November 11, Tennessee Attorney General Herbert H. Slatery III and the Tennessee Division of Consumer Affairs announced that it had settled allegations against credit card payment processor Elavon, Inc. to resolve claims that it violated state consumer protection laws by misrepresenting the cancellation policy of its credit card processing equipment leases, the duration of credit card processing equipment leases, and the compatibility of credit card processing equipment.  Elavon and its subsidiary, Ladco Financial Group, LLC, provide products and services that enable retailers to process credit card transactions. 

The settlement required Elavon to accept the cancellation of services of the return of goods as promised and to issue timely refunds or credits.  It also mandates that the company clearly disclose the basic terms of its offers to customers including the contract length, the cancellation policy, and the customer’s monthly payment amount.  Additionally, the settlement requires Elavon to resolve disputes regarding equipment incompatibility within 15 days of receipt and allow the customer to terminate without penalty and receive a refund should the problem go unresolved. 

Most notably, the settlement also set aside funds to compensate Tennessee residents who previously filed complaints against Elavon, or who file complaints by February 27, 2016, with the Tennessee Division of Consumer Affairs, the Better Business Bureau, or the Federal Trade Commission.

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Photo of H. Scott Kelly H. Scott Kelly

Scott is a consumer data and privacy specialist. He regularly defends against data breach lawsuits and class action claims asserted under federal and state consumer-protection statutes (FCRA, FDCPA, TCPA, UCC, UDAAP, RICO). Scott represents companies on an array of data privacy issues, including

Scott is a consumer data and privacy specialist. He regularly defends against data breach lawsuits and class action claims asserted under federal and state consumer-protection statutes (FCRA, FDCPA, TCPA, UCC, UDAAP, RICO). Scott represents companies on an array of data privacy issues, including background screening, consumer reporting, data breaches, ransomware attacks, and related regulatory investigations by the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state attorneys general.

Photo of Michael E. Lacy Michael E. Lacy

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO,

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO, and state UDAP laws. He has significant experience litigating and trying corporate governance disputes, including shareholder derivative claims, corporate dissolution cases, and corporate divorce matters. Michael also represents public utility companies in litigation and regulatory matters, including condemnation and land use cases.