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by Commander Tansin A. Darcos 06/11/2013, 5:21am PDT |
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Jerry Whorebach wrote:
Microsoft is converting from Microsoft Points to a purely cash-based marketplace. Because they are such nice guys, Microsoft is going to convert any Microsoft Points remaining in your account to cash credit. However, that cash credit will expire exactly one year after the conversion.
That may not be completely legal any more, although it's well known that Microsoft doesn't care much about legality, just what they can get away with. The use of what I call "absorption fees" has been made illegal. That's where they charge you a fee for not using your account, with prepaid bank cards it was something like $2 or $3 a month that the company absorbed back starting the sixth month after issue. To encourage people to use their prepaid (stored value) Mastercard or Visa cards so the number could be recycled, and having the card expire in a couple of years. FTC rules now prohibit "absorption fees" and the card has to last for a while, I think it's at least five years.
That's why cards issued before the absorption rule prohibition now included a note saying the provision that your card was docked $2 a month after six months was dropped. And all prepaid cards got something like a minimum 3 year extension. But once you do use it up, then they can recycle the number, which is reasonable.
But if Microsoft does this sort of thing I expect either a blowback in terms of potential class-action lawsuits, or, if their contract prohibits class actions, the FTC is likely to come after them. Then they'll claim they had no idea it was wrong, promise not to do it again, and some people might get some of their money back or get some form of extra credit. And if it's not the FTC that goes after them, some lawyer is probably to be the one to make out like a bandit.
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