Whirlpool Ordered to Pay $581 Million in Major Alabama Consumer Fraud Case

A jury has ordered Whirlpool Financial National Bank to pay $581 million in damages after it was found liable in a widespread satellite dish financing scheme that misled thousands of Alabama consumers. The case is one of the largest consumer fraud verdicts in the state’s history and a major milestone in the fight against predatory lending.

Deceptive Satellite Dish Financing Scheme

The lawsuit revealed that Whirlpool Financial backed a door-to-door sales operation that targeted vulnerable consumers, many of them elderly or living on fixed incomes. Sales representatives promised free satellite dish installation and low monthly payments, but the contracts were filled with hidden fees, high interest rates, and misleading terms.

Whirlpool Financial was found to have knowingly supported these deceptive practices, profiting from agreements that left consumers trapped in unfair financial arrangements.

A Landmark Verdict for Consumer Protection

The $581 million verdict not only compensates victims but also sends a strong message to corporations engaging in unethical business practices. It underscores the importance of transparency in consumer finance and reinforces the legal protections available to those who are misled.

“This case was about protecting people who were taken advantage of,” said attorney Tom Methvin, who led the case. “We’re proud to have helped bring justice to families who were misled and financially harmed.”

Long-Term Impact on Alabama Consumers

Following the verdict, Whirlpool Financial exited the Alabama market. The case has since been cited as a turning point in consumer protection law and has helped raise awareness about the dangers of predatory lending and deceptive sales tactics.

The National Consumer Law Center also features the case as a landmark example of consumer advocacy. Their publication is available here (PDF).

What Consumers Should Know

• Always read the fine print before signing any financing agreement.
• Be cautious of door-to-door sales, especially those involving long-term contracts or high-interest financing.
• If you believe you’ve been misled or defrauded, consult a consumer protection attorney.