Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Rench v. TD Bank, N.A.

United States District Court, S.D. Illinois

January 2, 2018

SABRA RENCH, individually and on behalf of all others similarly situated, Plaintiff,
v.
TD BANK, N.A., A-1 ALLERGY RELIEF, INC., and HMI INDUSTRIES, INC., Defendant.

          MEMORANDUM AND ORDER

          STACI M. YANDLE, United States District Judge

         Plaintiff Sabra Rench, filed a six-count Amended Complaint against Defendants TD Bank[1], A-1 Allergy Relief, Inc.[2] and HMI Industries, Inc. (“HMI”), alleging violations of the Federal Truth in Lending Act, the Illinois Prizes and Gifts Act, and the Federal Racketeer Influenced and Corrupt Organizations Act (Doc. 73). Now pending before the Court is Plaintiff's Motion for Class Certification (Doc. 68). HMI filed a response in opposition (Doc. 90) and Plaintiff filed a reply (Doc. 95). For the following reasons, Plaintiff's motion is GRANTED.

         Background

         HMI is a corporation engaged in the manufacture, marketing and in-home sales of FilterQueen brand vacuums and air filters to consumers. HMI products are sold to consumers throughout the United States exclusively through in home demonstrations (Doc. 70-1 p. 10).

         In 2010, HMI engaged TD Bank's services to finance consumer purchases of HMI products. Specifically, in October 2010, TD and HMI agreed to use TD's Renovate Card Program to facilitate HMI's sales to consumers (Doc. 70-2 p. 2). Under the Renovate Card Program, HMI distributors provided consumers with Renovate Card Applications to finance the purchase of HMI products (Doc. 70-3 p. 2). Once a sale was made, the HMI distributor submitted the information to TD who transferred funds to the distributor and debited the consumer's Renovate credit card account (Doc. 70-4 pp. 2-3).

         From 2009 to 2014, A-1 sold HMI products to 2, 482 consumers, including 693 consumers in Illinois. During the same period, HMI distributors, including A-1, sold HMI products to 1, 224 Illinois consumers (Doc. 69-41 pp. 3-5). From 2010 to 2012, TD, through A-1, financed the purchase of HMI products by 333 consumers, including 117 consumers in Illinois (Doc. 69-42 pp. 3-4).

         HMI developed and utilized promotional materials, including scratch cards (Doc. 70-1 pp. 15-16, 38). The scratch cards were mailed to consumers (Doc. 68-45 pp. 2-7). The back of the card instructed recipients to “CALL IMMEDIATELY” the “Winners Hotline” to learn which prize they had won (Doc. 68-44 pp. 2-3). The scratch cards were designed to induce consumers to allow HMI sales associates into their homes - “entry approval” - to sell HMI products (Doc. 70-1 pp. 21-22, 43).

         Plaintiff received a scratch card in the mail sometime between August and September 2012 (Doc. 69-1 ¶ 4). She scratched a winning hand and called the “Winners Hotline” to see what prize she had won (Doc. 69-1 ¶ 5). Without telling Plaintiff what prize she had won, the individual answering the hotline call told her that she had to agree to an in-home product demonstration in order to receive her prize (Doc. 69-1 ¶ 6).

         Pam Williams, a sales associate with A-1, visited Plaintiff in her home on September 7, 2012 (Doc. 69-1 ¶ 7). Williams proceeded with a sales pitch for a FilterQueen vacuum and filter that lasted several hours, during which time she instructed Plaintiff to complete a single-page TD Bank Credit Card Account Application. The application included Plaintiff's age (72), occupation (“server”) and monthly gross income ($1, 690) (Doc. 69-9 p. 2). At the conclusion of the visit, Williams left the air filter with Plaintiff. Although Plaintiff had not purchased anything, TD charged $970.00 to her Renovate credit card account on September 10, 2012 (Doc. 69-49 pp. 2-4).

         On September 14, 2012, Williams came back to Plaintiff's home, at which time Plaintiff told Williams that she did not want to purchase the filter or vacuum (Doc. 69-1 ¶ 11-12). Nevertheless, Williams proceeded with a second demonstration of the vacuum that again lasted several hours (Id.). During the second presentation, Williams offered Plaintiff several “deals” to entice her to purchase the products on a TD Renovate credit card with 0% financing and a two-month “trial period” during which Plaintiff could return the products at no cost (Doc. 69-1 ¶ 13). After several hours, Plaintiff signed the Sales Memorandum and Bill of Sale Receipt, which showed a price of $2, 798.00 charged to Plaintiff for the vacuum and filter. Plaintiff never received any documents disclosing the finance charges or interest rates related to the Renovate Account (Doc. 69-1 ¶ 14-15). She wrote to A-1 in October 2012 and requested that they come and pick up the air filter (Doc. 69-1 ¶ 10)).

         Plaintiff now moves for class certification under Rules 23(a) and 23(b)(3) of the Federal Rules of Civil Procedure. She seeks to represent three classes:

The RICO Class:
- All individuals in the United States who, within the four years preceding the filing of this Complaint: (A) received in the mail a promotional sweepstakes “scratcher” ticket in the form of or substantially similar to Exhibit A (attached to Plaintiff's Complaint or amendments thereto) identifying A-1 Allergy Relief, Inc. and/or Simple Air Solutions and not identifying HMI Industries, Inc. and/or TD Bank, N.A., ; and (B)(i) purchased a Filter Queen product; or (ii) incurred a charge for a Filter Queen product on a Renovate Credit Card Account.
The IPGA Subclass:
- All individuals who are citizens of Illinois and who, within three years prior to the filing of this Complaint: (A) received a promotional sweepstakes “scratcher” ticket in the form of or substantially similar to Exhibit A (attached to Plaintiff's Complaint or amendments thereto) identifying a distributor of HMI Industries, Inc., and not identifying HMI Industries, Inc. and/or TD Bank, N.A., ; and (B)(i) purchased a Filter Queen product; or (ii) incurred a charge for a Filter Queen product on a Renovate Credit Card Account.
The ICFA Subclass:
- All Illinois consumers who, within three years prior to the filing of the Complaint, received a promotional sweepstakes “scratcher” ticket in the form of or substantially similar to Exhibit A (attached to Plaintiff's Complaint or amendments thereto) identifying a distributor of HMI Industries, Inc., and not identifying HMI Industries, Inc. and/or TD Bank, N.A., ; and (B)(i) purchased a ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.