Consumer Protection

LOS ANGELES – Attorney General Kamala D. Harris today, along with seven states, sent a letter to the U.S. Department of Veterans Affairs (“VA”), urging the Secretary to use his authority to restore educational and vocational rehabilitation benefits to thousands of veterans victimized by predatory practices carried out by for-profit schools such as Corinthian Colleges, Inc. (“Corinthian”).  The letter also asks VA Secretary Robert McDonald to take steps to ensure that veterans are given full and accurate information about the risks associated with using their benefits at certain schools.

“We honor the service and sacrifice of our veterans by ensuring that when they return home, they have access to benefits that will help them transition to civilian employment and build lives for themselves and their families,” stated Attorney General Harris in the letter.

“Rather than being honored, the veterans who enrolled in Corinthian schools were cheated out of these benefits.  ED has acted to remedy the harms suffered by student borrowers who were defrauded by Corinthian and other unscrupulous institutions—we respectfully urge you to act in harmony with your sister agencies and offer similar relief to student veterans who were harmed by precisely the same misconduct,” the Attorney General added. 

The letter specifically calls on the Department of Veterans Affairs to do three things:

1. Restore Benefits to Veterans Who Attended Institutions that Utilized Erroneous, Deceptive, or Misleading Advertising, Sales, or Enrollment Practices

The letter urges the VA to implement processes to restore G.I. Bill and Vocational Rehabilitation and Employment (“VR&E”) benefits to student veterans who used those benefits at schools found to have engaged in misleading and deceptive behavior.  This relief should be provided when a regulatory or enforcement action is taken by the U.S. Department of Education, a State Approving Agency, or a State Attorney General after a showing of misconduct, or when a court enters a judgment against a school, or upon application by a veteran or group of veterans alleging that an educational program or college has been deceptive or misleading.

2. Ensure that Veterans Have Full and Accurate Information

The letter urges the VA to fully educate veterans about their options and risks when choosing a school.  The VA should inform student veterans about the potential consequences of utilizing educational benefits at schools that have been subject to investigations or lawsuits. Early warnings and information will help veterans make informed choices.

3. Support the Efforts of State Approving Agencies and Attorneys General

Lastly, the signatories urge the VA to support states’ efforts to protect veterans from misconduct by for-profit institutions. Ensuring that the VA works collaboratively with and supports the efforts of the State Approving Agencies and Attorneys General in this context will help protect student veterans from future misconduct.

This letter is a continuation of Attorney General Harris’ efforts to protect and provide relief to students of for-profit schools. In 2013, Attorney General Harris filed a lawsuit against Corinthian for false advertising and deceptive marketing targeting vulnerable, low-income students and misrepresenting job placement rates to potential and current students, investors and accrediting agencies. Corinthian closed all of its California campuses on April 26, 2015.  Attorney General Harris has since called for the U.S. Department of Education to relieve the student loan debt of thousands of students who attended Corinthian.

Attorney General Harris is committed to protecting veterans and the benefits they earned through their dedicated service to our country. Last year, an alarming number of “pension poaching” scams targeting senior veterans and their survivors were reported to the California Department of Justice’s Public Inquiry Unit. Attorney General Harris consequently issued a consumer alert urging veterans to be wary of such schemes.

In November 2015, Attorney General Harris announced a stipulated judgment which resolved allegations that JPMorgan Chase (Chase) committed credit card debt-collection abuses against tens of thousands of Californians.  The Attorney General’s investigation and litigation further revealed that Chase violated the Servicemembers Civil Relief Act and the California Military and Veterans Code when it filed false declarations regarding military service and improperly obtained default judgments against servicemembers on active duty. 

The letter can be viewed here: https://oag.ca.gov/sites/all/files/agweb/pdfs/va-multi-state-letter.pdf. 

SAN FRANCISCO - Attorney General Kamala D. Harris today issued the following statement calling on the United States Department of Education (ED) to do more to protect students defrauded by Corinthian Colleges and other for-profit colleges.  Last week, ED held the second of three negotiated rulemaking sessions to determine how student borrowers can get relief from federal student loans when these loans were used at a school that abused and deceived the students.  Attorney General Harris’s office participated in the session as one of two representatives for state attorneys general and called repeatedly for greater protections for students.

“Too many students defrauded by for-profit colleges remain buried under mountains of student debt,” said Attorney General Harris.  “I call on the Department of Education to revise their proposed regulations to ensure meaningful debt relief is available to any student misled by a predatory college."

In the wake of the recent, public collapse of Corinthian Colleges, a joint investigation by ED and Attorney General Harris’s office found that job placement rates were widely misrepresented to enrolled and prospective Corinthian students.  Thousands of the school’s students have asked ED to discharge their federal loans because they were deceived by Corinthian’s inflated job placement rates. 

This issue is not limited to Corinthian Colleges. Other for-profit institutions have used similar dishonest tactics against their students, and it is expected that many more students will need to utilize this defense. 

Federal law, including ED’s regulations, gives students the right to have their loans discharged when their colleges have engaged in certain kinds of unlawful conduct—this right is referred to as a “defense to repayment.”  Yet current federal regulations provide little guidance on who may be eligible, how they should apply, or how ED will evaluate those applications.  Recently, Attorney General Harris’s office and other agencies have uncovered an extensive pattern of misconduct among many for-profit colleges, particularly regarding deceptive recruitment tactics.  As a result of the sharp increase in the number of student borrowers asserting their rights, ED initiated a “negotiated rulemaking” process for interested parties to provide input on new regulations governing defenses to repayment when a school has abused and deceived them.  As part of the process, ED convened a committee made up of stakeholders—including state attorneys general, students, student advocacy groups, public schools, for-profit schools, and accreditors, among others—to voice their positions on what the new rules should say.  Congress imposes this negotiated-rulemaking requirement whenever ED seeks to issue new regulations about student assistance for higher education.

At the committee’s first meeting in January, Attorney General Harris’s office, along with other state attorneys general and student advocacy groups, stressed the need for meaningful, robust, and streamlined loan-discharge procedures for students who have been victimized by their school.  At a subsequent meeting earlier this month, however, ED unveiled proposed language that contradicts the intent of previous discussions by narrowing, limiting, and delaying student relief in the following ways: 

1. ED’s proposal unreasonably limits the categories of school misconduct that would give rise to a defense to repayment.  The proposal limits students’ rights to circumstances where the colleges either breached a contract or engaged in “substantial misrepresentations,” ignoring other categories of rampant school misconduct that violate state law. 
2. ED’s proposal includes a two-year statute of limitations for borrowers to assert a defense to repayment.  This is patently unfair given that there is no corresponding statute of limitations for debt collectors in going after students for federal student loans. 
3. ED’s proposal does not provide any procedure to grant broad, automatic relief to borrowers, even when it is clear that a predatory school has systematically abused and deceived large numbers of students through widespread practices.  In these clear-cut cases, there is no practical reason to deny relief or to put an additional burden on students to again prove their case. 
4. In cases where the school has not already closed down, ED proposes that the decision to grant a discharge be made by pitting the student against the school in an adversary process, effectively requiring the student to hire a lawyer and allowing the school to interfere with the student's right to obtain relief on a government loan.  Any fair process should be sufficiently simple and straightforward so that a student can navigate it successfully without legal representation.

Attorney General Harris continues to call for changes to the new regulations.  Fair and effective defense-to-repayment procedures (1) must look to state law as a basis to assert a defense; (2) must not be limited by any time period; (3) must provide procedures for automatic, global relief to students where it is clear that they are the victims of rampant school misconduct; and (4) must not permit the school to make the process burdensome and expensive.

Agreement to provide certain California borrowers with loan modifications; foreclosed HSBC loans may be eligible for payments for past abuse 

SAN FRANCISCO – Today Attorney General Kamala D. Harris announced that California will join the U.S. Department of Justice, Department of Housing and Urban Development, and 48 other states in entering into a consent judgment with mortgage lender and servicer HSBC over its faulty mortgage servicing practices. This ruling will address mortgage origination, servicing, and foreclosure abuses perpetuated by HSBC.

“California homeowners worked hard and played by the rules to stay in their homes during the housing crisis, but for too many, their struggle and sacrifice was met by abusive mortgage servicing practices,” said Attorney General Harris. “This settlement holds HSBC accountable for its abusive practices that manipulated people fighting to stay in their homes. I encourage eligible borrowers who receive a claim form and feel they were a victim of HSBC’s practices to file a claim immediately.”      

Under the terms of the agreement, HSBC will pay $100 million in cash, of which $59.3 million will be used to distribute payments to borrowers whose homes were foreclosed upon between 2008 and 2013, and $40.5 million will be paid to the federal government. The agreement also requires HSBC to provide $370 million in other consumer relief, such as loan modifications, principal reductions, and loan refinancing.

Based on foreclosure numbers, it is estimated that California borrowers are eligible for about 10% of the $59.3 million fund for payments to foreclosed borrowers.

This agreement is very similar to the National Mortgage Settlement of 2012, in which Attorney General Harris secured a historic $20 billion for California homeowners affected by the mortgage crisis. In 2014, Attorney General Harris announced several multimillion dollar settlements regarding mortgage fraud crime, including a national settlement with SunTrust Mortgage that provided $40 million in payments and $500 million in consumer relief nationwide; a national settlement with Bank of America in which California recovered $300 million in damages and $500 million in consumer relief credits; and a national settlement with Citigroup in which California recovered $102.7 million in damages and $90 million in consumer relief. 

Additional information concerning today’s announcement is listed below.

Loan Modifications

The HSBC agreement requires the company to provide certain California borrowers with loan modifications or other relief. The modifications, which HSBC chooses through an extensive list of options, include principal reductions and refinancing for underwater mortgages. HSBC decides how many loans and which loans to modify, but must meet certain minimum targets. Because HSBC receives only partial settlement credit for many types of loan modifications, the settlement will provide relief to borrowers that will exceed the overall minimum amount.

Payments to Borrowers

Approximately 7,526 eligible California borrowers whose loans were serviced by HSBC and who lost their home to foreclosure from January 1, 2008 through December 31, 2012 and encountered servicing abuse will be eligible for a payment from the national $59.3 million fund for payments to borrowers. The borrower payment amount will depend on how many borrowers file claims. 

Eligible borrowers will be contacted about how to qualify for payments.

Mortgage Servicing Standards

The settlement requires HSBC to substantially change how it services mortgage loans, handles foreclosures, and ensures the accuracy of information provided in federal bankruptcy court.

The terms will prevent past foreclosure abuses, such as robo-signing, improper documentation, and lost paperwork. 

The settlement’s consumer protections and standards include:

• Making foreclosure a last resort by first requiring HSBC to evaluate homeowners for other loss mitigation options;
• Restricting foreclosure while the homeowner is being considered for a loan modification;
• Procedures and timelines for reviewing loan modification applications;
• Giving homeowners the right to appeal denials; and

Requiring a single point of contact for borrowers seeking information about their loans and maintaining adequate staff to handle calls.

Independent Monitor

The National Mortgage Settlement’s independent monitor, Joseph A. Smith Jr., will oversee HSBC agreement compliance for one year. Smith served as the North Carolina Commissioner of Banks from 2002 until 2012, and is also the former Chairman of the Conference of State Banks Supervisors (CSBS). Smith will oversee implementation of the servicing standards required by the agreement and issue public reports that identify whether HSBC complied or fell short of the standards imposed by the settlement. If HSBC is alleged to have violated terms of the agreement, the states and federal agencies can seek relief through the court.

Additional Terms

The agreement resolves potential violations of civil law based on HSBC’s deficient mortgage loan origination and servicing activities. The agreement does not prevent state or federal authorities from pursuing criminal enforcement actions related to this or other conduct by HSBC, or from punishing wrongful securitization conduct that is the focus of the Residential Mortgage-Backed Securities Working Group. Additionally, the agreement does not prevent any action by individual borrowers who wish to bring their own lawsuits.

The agreement will be filed as a consent judgment in the U.S. District Court for the District of Columbia. 

For more information on how to file a claim against a business/company, visit: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company

LOS ANGELES – Attorney General Kamala D. Harris today announced that she has lodged a lawsuit against Southern California Gas Company for violations of California law in connection with a massive methane leak from its Aliso Canyon natural gas storage facility.  In addition to filing suit in her independent capacity as Attorney General, Harris’s lawsuit also includes her client, the California Air Resources Board. The natural gas leak has caused a public health and statewide environmental emergency, which has sickened residents of Porter Ranch and compelled them to relocate.   

The lawsuit alleges that Southern California Gas Company violated state health and safety laws by failing to promptly control the release of the natural gas and report the leak to authorities. In addition, the lawsuit cites the environmental threat the uncontrolled release of more than 80,000 metric tons of methane into the atmosphere poses to California’s efforts to reduce greenhouse gas (“GHG”) emissions and mitigate the pace and effects of climate change.   

“The impact of this unprecedented gas leak is devastating to families in our state, our environment, and our efforts to combat global warming. Southern California Gas Company must be held accountable,” said Attorney General Harris. “This gas leak has caused significant damage to the Porter Ranch community as well as our statewide efforts to reduce greenhouse gas emissions and slow the impacts of climate change. My office will continue to lead this cross-jurisdictional enforcement action to ensure justice and relief for Californians and our environment.” 

Specifically, the lawsuit alleges claims of public nuisance under California Civil Code section 3479 and violations of California’s Unfair Competition Law (Bus. & Prof. Code, § 17200, et seq.), joining the City and County of Los Angeles’ pending claims. Attorney General Harris’s lawsuit also alleges violations of Health and Safety Code sections 41700 (discharge of air contaminants) and 25510 (hazardous materials release reporting); and Government Code section 12607 (impairment of the State’s natural resources). 

The Attorney General seeks relief in the form of injunction, civil penalties, and restitution.

The leak, which was discovered on October 23, 2015, has yet to be abated.  The primary component of the leak is methane, which is the second largest component of GHG emissions in California behind carbon dioxide.  As of January 8, 2016 – eleven weeks after the leak was discovered – it was estimated that cumulative methane emissions amount to more than two million metric tons of carbon dioxide equivalent (approximately two percent of estimated statewide GHG emissions over the same period), and this cumulative total will grow as the leak continues.  

"Attorney General Harris' action today is a significant step in the ongoing effort to hold Southern California Gas accountable, end this public health emergency and assure it never happens again," said Los Angeles City Attorney Mike Feuer, who filed suit against Southern California Gas Company on December 7. 

"This action recognizes the impacts of this ongoing leak on our climate and ensures there’s accountability,” said California Air Resources Board Chair Mary D. Nichols.

Given the critical nature and magnitude of the release, its negative impact on California’s statewide GHG emissions reduction efforts, and the Attorney General’s broad authority to remedy the harms at issue, the Attorney General’s participation in the enforcement action is necessary to ensure that the interests of the people of the State of California are fully represented.

The Attorney General and the California Air Resources Board are in an ideal position to ensure that effective GHG emission mitigation is achieved.  Additionally, the Office of the Attorney General is uniquely situated to coordinate multiple agency claims and represent the interests of those agencies, conserving state resources.  The Attorney General is already serving a crucial coordinating role, facilitating the exchange of information among the numerous state, federal, and local agencies with jurisdiction over the gas leak.

The Attorney General’s filing complements ongoing actions of the numerous government agencies that are coordinating efforts related to the gas leak.  In addition to the Air Resources Board, these agencies include the California Energy Commission, the California Public Utilities Commission, the Department of Fish and Wildlife, the Division of Oil, Gas and Geothermal Resources, the Governor’s Office of Emergency Services, the Los Angeles Regional Water Quality Control Board, the Office of Environmental Health Hazard Assessment and the South Coast Air Quality Management District. Also included are the U.S. Environmental Protection Agency, Region 9 and Los Angeles County.

SAN FRANCISCO – Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding potential sports ticket scams targeting consumers attending the Super Bowl and related events.  As part of her commitment to modernizing government as well as better serving the visually impaired, Attorney General Harris has also released the first in a series of radio stories on consumer issues across the state.  This feature includes a fan’s perspective plus information and tips from the California Department of Justice, StubHub, Fan Freedom, and the Better Business Bureau, to avoid becoming the victim of a ticket scam.

Radio Story (5:00):  Listen on SoundCloud             

Public Service Announcement (0:30):  Listen on SoundCloud         

Many Californians are no doubt eager to purchase tickets to Super Bowl 50, which will take place on February 7, 2016, at Levi’s Stadium in Santa Clara, California.  The demand for Super Bowl tickets far exceeds the supply.  In light of this, scam artists take advantage of sports enthusiasts by selling counterfeit, void, or stolen tickets.  The Attorney General reminds Californians to purchase tickets through legitimate sellers in order to protect their personal information and ensure the authenticity of their tickets.

Regardless of the sporting event, consumers should be aware that purchasing tickets from individual, third-party sellers could also subject them to identity theft and fraud.  Consumers who purchase tickets online based on classified ads could have their personal information misused.  Additionally, those who buy sports tickets from unguaranteed sources may receive invalid tickets, may not receive tickets on time, or may receive tickets for a different event.  Legitimate ticket resellers typically guarantee that sports tickets are authentic and clearly describe how refunds are handled.  And in the event you are the victim of a ticket scam, even if you do receive a refund from the seller or your credit card company for the cost of the ticket, you may still be stuck with airfare and hotel costs.  This consumer alert offers tips for safeguarding consumers from sports ticket scams. 

What to look out for

The Attorney General offers California consumers the following tips in order to avoid falling victim to sports ticket scams:

• Consumers should attempt to purchase sports tickets from official sources, such as NFL.com, or other official ticket providers, in order to protect themselves from sports ticket scams.
• Utilize credit cards or a PayPal account when purchasing sports tickets online, in order to ensure that you have an opportunity to challenge the charge if the ticket sale is fraudulent.  Sports ticket sellers who require payment via a prepaid card, or who request the wiring of money, may be engaging in a scam.     
• When purchasing sports tickets online, consumers should ensure that the web address begins with https://, which means that the site is secure and your credit card and billing information will be protected from being intercepted by a third party. 
• Research the seller’s reputation by searching online for reviews regarding the seller and any potential consumer complaints regarding prior scams.
• Purchase from resellers who provide authentic sports tickets.  Look into the reseller’s refund policy, and whether the reseller offers a guarantee regarding the authenticity and timely arrival of the tickets.   
• §  Be wary of sports tickets that are advertised at a price that is below market value, or that appear to be an unusually good deal.  Scam artists may advertise tickets that they do not possess, and take money from consumers without providing any tickets at all.
• §  Examine your sports ticket to ensure that the event information is correct, and look out for abnormalities such as illegible text or uneven margins.  Fake tickets may have incorrect information printed on them, and could utilize a photocopied barcode. 
• Be wary of purchasing sports tickets based on an online classified advertisement.  Avoid providing your credit card information to an unknown person, and meet the seller at a safe location such as a local police station, if you intend to pay the seller in person.    

HELPFUL RESOURCES 

The NFL provides tips for purchasing a legitimate Super Bowl ticket, and describes How to Tell if Your Super Bowl Ticket is Legit.

The NCAA Reminds Fans Only to Purchase Tickets from Authorized Sources.

For information on Super Bowl 50 and the availability of tickets for the game, please go to Levi’s Stadium Super Bowl 50, and for more details about the event see Super Bowl 50 Frequently Asked Questions. 

What to do if you are the victim of a SPORTS TICKET scam

The Better Business Bureau (BBB) offers resources for those who have purchased a counterfeit sports ticket.  If you have been a victim of a sports ticket scam, immediately File a Complaint with the BBB.

Finally, the California Department of Justice protects the rights of consumers and collects complaints on sports ticket scams in order to identify patterns of wrongful activity.  To submit a complaint to the California Department of Justice regarding a sports ticket scam, please use one of the following complaint forms:

English: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company. 

En Español: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_sp.pdf? 

中文: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_chin.pdf? 

Tiếng Việt: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_viet.pdf?

SAN FRANCISCO – California Attorney General Kamala D. Harris is commemorating international Data Privacy Day by reminding consumers of three easy steps to take to protect against identity theft in 2016. Attorney General Harris is also partnering with Facebook to share privacy tips for Facebook users, as part of her commitment to incorporating technology into government. The Attorney General’s Facebook video message can be found here: http://on.fb.me/dataprivacydaycalifornia. January 28, Data Privacy Day, is observed in the U.S., Canada and Europe as an opportunity to promote privacy awareness.

Identity theft is a privacy crime that cost individuals and businesses $16 billion in 2014,the last year for which information is available.[1] There were 12.7 million victims of identity theft in the U.S. – that is one victim every 2.5 seconds. Over 1.5 million victims were in California.

The following three Data Privacy Day tips are a good starting point for consumers to begin to protect themselves from identify theft.

1.     Order your credit reports (free).  

Consumers are highly encouraged to regularly monitor their credit files. Proactive credit monitoring can help consumers catch errors and quickly identify potential identity theft issues. Consumers are entitled by law to get a credit report from each of the three major credit bureaus every year, at no cost.

FREE annual credit reports can be ordered online at www.annualcreditreport.com or through the toll-free phone number:  (877) 322-8228. After receiving the reports, make sure to review them thoroughly for information that is not recognized and take action on anything suspicious. For more information, please visit: How to Order Your Free Credit Reports: Tips for Consumers.  All consumers are entitled to one free credit report every 12 months, from each credit reporting company, and should not have to input or share credit card information for these reports.

2.     Protect your electronics with strong passwords (free).

Smartphones and tablets contain a lot of personal information, such as banking, shopping, and location information in apps and emails. Consumers should make a habit of locking their devices just as they lock their homes and vehicles. Additionally, rather than using a 4-digit passcode which can be cracked in minutes, consumers should use a strong password that contains at least 8 characters, including letters, numbers and symbols. Consider using a phrase and substituting numbers and symbols for letters. For example, “how much wood would a woodchuck chuck?” might be Hmww1wcc? (Don’t use that one!)  

Many smartphones, including both Apple and Android phones, provide lock or passcode tools in the “Settings” feature of their devices. Device manufacturers today offer advanced technologies like fingerprint sensors and “lock patterns” that can make it very difficult to access a stolen device.

General screen lock information:

• iPhones and iPads (iOS)

New Apple products protect devices with a thumbprint or a numeric passcode, or a combination of both.

From home screen, select SETTINGS, then TOUCH ID & PASSCODE. On older products, select SETTINGS, then GENERAL, then PASSCODE.  Follow instructions and remember to set how quickly you want the device to lock (one minute, five minutes, etc.)

More on Apple locks: www.support.apple.com/en-us/HT204060 

• Android devices

Depending on your type of device, Android allows you to use a pattern unlock, a personal identification number (PIN), or an alpha-numeric password. Though the language varies in different Android devices, you can generally follow this path:

Select MENU on the home screen. Select SETTINGS, then SECURITY, then CHANGE SCREEN LOCK.

Check the version of your Android device: www.support.google.com/nexus/answer/4457705

More on Android locks: www.support.google.com/nexus/answer/2819522?hl=en

For more information on strong passwords, please visit:  Safe Password Practices - Refresh Here!

3.     Freeze your credit files ($30) – or place a fraud alert (free).

Consumers who believe they may be victims of identity theft should consider freezing their credit files. A credit freeze is the strongest consumer protection against serious types of identity theft that involve Social Security numbers. It prevents the opening of new accounts but does not affect existing credit accounts. Credit freezes remain on accounts until the account holder temporarily or permanently lifts the freeze.

To activate a credit freeze, consumers must contact each of the three credit bureaus. Once the credit bureaus have frozen the requested credit records, a potential thief cannot open a credit account, get a loan, or do certain other things in the account holder’s name. Consumers who need to open a new credit account during the freeze can “lift” the freeze in advance for a limited period of time by contacting the credit bureau (sometimes for a small fee).

Credit freezes are free to victims of identity theft who have a corresponding police report.  Otherwise, freezes cost $10 per credit bureau.  For consumers 65 and older, each freeze is $5. For more information, please visit: How to “Freeze” Your Credit Files

An alternative to a freeze is a fraud alert. Consumers who are in the market for new credit, insurance, or employment may find a credit freeze cumbersome as the freeze must be lifted every time a request is made for new credit. Instead, consumers looking for new credit may want to consider placing a fraud alert on their accounts. Fraud alerts offer a free, fast, and effective way to protect against a potential identity thief opening new credit accounts under an account holder’s identity. A fraud alert signals to credit grantors that requests for new credit accounts or credit extensions may be coming from an identity thief and it requires merchants to take extra steps to verify the identity of the applicant. To place a fraud alert, consumers only need to contact one of the three credit bureaus, which will result in all three placing the alert. A fraud alert lasts 90 days and can be renewed.

For more information on fraud alerts, visit: Breach Help: Consumer Tips from the Attorney General

ADDITIONAL INFORMATION

California Attorney General identity theft information:  www.oag.ca.gov/idtheft

California Attorney General privacy information:  www.oag.ca.gov/privacy

Data Privacy Day: https://www.staysafeonline.org/data-privacy-day/about.

[1] Javelin Strategy & Research, 2015 Identity Fraud Study, available at www.javelinstrategy.com.

LOS ANGELES - Attorney General Kamala D. Harris today announced the kick off of a series of statewide public forums in partnership with Univision Los Angeles, the Service Employees International Union of California and iAmerica to provide Californians applying for U.S. Citizenship with information on the application process and how to avoid immigration services fraud.  

The forums are a continued effort by the Attorney General’s Civil Rights Enforcement Section (CRES), which last year hosted and presented at forums across the state to warn immigrant communities of scams targeting immigrants and con artists perpetrating immigration services fraud. At the forums, CRES will also educate attendees about wage theft, a crime that is often targeted at immigrant populations.

"The first step to protecting immigrant communities from scams is to provide education on how to avoid them,” said Attorney General Harris. “These forums are a crucial opportunity for immigrants to learn about the benefits and responsibilities of U.S. citizenship and learn how to avoid becoming a victim of wage theft and immigration services scams.”

The public forums will be hosted in eight California cities including: Los Angeles, Riverside, Fresno, Sacramento, San Jose, San Marcos, Oakland and Modesto. The statewide public forums will provide community members an opportunity to receive information about the citizenship process, set up an individual appointment for free assistance with citizenship applications, and hear from the Attorney General’s Office on how individuals can avoid being a victim of immigration services scams and wage theft.

“SEIU members are proud to partner with Attorney General Harris to protect Californians and aid immigrant families in achieving their dreams of U.S. Citizenship,” said SEIU California President Laphonza Butler. “Together we are working to break down barriers that stand in the way of immigrants initiating their pathway towards citizenship. We hope that the steps we are taking as a community will help empower the close to 2.5 million immigrants eligible to naturalize in California initiate the process and make their voices heard in our nation’s democratic process.”

Information about more upcoming forums will be announced in the coming days.

UPCOMING FORUM DATES  
Riverside:
April 30, 2016
SEIU 721
6177 River Crest Dr. #B
Riverside CA, 92507

FORUMS ALREADY HELD

Riverside:
Saturday, February 27, 2016 from 9AM to 1PM
Our Lady Of Perpetual Help Church
5250 Central Ave
Riverside, CA 92504

Hayward:
Saturday, March 5, 2016 from 9AM to 4PM
Glad Tidings Church-North Campus
27689 Tyrrell Ave.
Hayward, CA 94844

Los Angeles:
Saturday, January 30 from 9AM to 2PM
Mendez High School
1200 Plaza Del Sol E
Los Angeles, CA 90033

Major changes to United States immigration policy, like those contained in President Barack Obama’s Immigration Accountability Executive Actions announced in November 2014, often lead to con artists emerging to prey on vulnerable consumers seeking help with immigration services.

Attorney General Harris issued a consumer alert informing Californians of these scams and providing tips to help consumers protect themselves. In addition, the Attorney General issued a consumer alert informing Californians about possible scams targeting immigrants attempting to obtain a driver’s license under Assembly Bill 60 (Alejo, 2013).

On December 3, 2015, California, along with 15 other States and the District of Columbia, joined an amicus curiae brief authored by the State of Washington supporting the United States’ petition for certiorari in the U.S. Supreme Court, to overturn a nationwide preliminary injunction blocking President Obama’s November 2014 executive actions on immigration. The court granted review and it will hear the case later this term. The States’ brief argued that, by preventing these policies from going into effect, the injunction harms States by preventing undocumented immigrants from working and generating taxes, by decreasing public safety, and by creating social harms such as displacing the undocumented parents of U.S. citizen children. 

For additional information regarding these forums please contact SEIU's media contacts:

English Language

Michael Roth

Email: Mike@paschalroth.com Phone: 916-444-7170

Spanish Language

Maria Elena Jauregui

Email: mjauregui@servimediainc.com Phone: 818-355-5291

LOS ANGELES – Today, Attorney General Kamala D. Harris, in conjunction with eleven California District Attorneys and the nonprofit Center for Environmental Health, announced a landmark settlement with food industry giant Mondelēz International, Inc., formerly Kraft Foods, for selling ginger snap cookies containing lead in excess of California limits without the warning required by California’s Proposition 65.  A consent judgment was filed Thursday in Orange County Superior Court and is awaiting approval by a judge. 

“The levels of lead found in Nabisco’s Ginger Snap cookies posed a serious public health threat, potentially impacting the brain development of our children,” said Attorney General Harris.  “Parents need accurate information to make educated food choices for their children.  My office will continue to enforce Proposition 65 to guarantee that all Californians are fully informed when hazardous substances and chemicals can be found in consumer products.”

Under the settlement, Mondelēz will agree to strict product sourcing and testing protocols that limit lead in its Nabisco Ginger Snap cookies to no more than 30 parts per billion per serving and will pay approximately $750,000 in civil penalties, costs and attorneys’ fees.  Additionally, the company will hire a food quality auditor to train personnel, will fund ongoing independent auditing of its products to monitor for lead, and will monitor supply chains to ensure raw materials are within acceptable limits. 

Lead is a neurotoxin that primarily affects the central nervous system, putting children with developing brains at a greater risk of suffering from the neurotoxic effects of lead.  While no safe lead exposure threshold has been identified, California’s Proposition 65 requires a warning to consumers if they are exposed to 0.5 micrograms of lead per serving per day. The FDA recommends that children do not ingest candies that contain more than 100 parts per billion of lead.

The Attorney General’s office and District Attorneys began their investigation of Nabisco Ginger Snaps in 2013, after a Center for Environmental Health investigation into these and other cookies containing ginger.  Testing revealed that a serving of Nabisco brand Ginger Snaps contained lead levels up to 9 times the level that requires a warning under Proposition 65.  Mondelēz was not providing any Proposition 65 warnings to its customers.

The ginger snap cookies have since been reformulated.  Lead sources in the cookies were linked to ginger and molasses.  Experts have linked high lead levels in molasses to soil in which sugar is grown, and also to the manufacturing process.  Sources of lead in powdered ginger have also been linked to contaminated soil in which ginger is grown, and to the brining process in which it is dried.

Mondelēz is the world’s largest manufacturer of processed snack foods. Mondelēz brands include Nabisco, Oreo, Cadbury and Trident.  Nabisco brand ginger snap cookies were the subject of the lawsuit.

Proposition 65, "The Safe Drinking Water and Toxic Enforcement Act of 1986,” is California’s landmark law which serves to protect public health and the environment by requiring businesses to provide warnings if they expose individuals to any listed carcinogens or reproductive toxins.  At least once a year, the state must update a list of chemicals known to cause cancer or birth defects or other reproductive harm. This list includes approximately 800 chemicals.  Proposition 65 mandates that businesses notify Californians about significant amounts of chemicals in the products they purchase, in their homes or workplaces, or that are released into the environment.  It also prohibits California businesses from knowingly discharging significant amounts of listed chemicals into sources of drinking water. 

This settlement is part of a series of cases that Attorney General Harris and her predecessors have successfully prosecuted under Proposition 65, in order to remove lead from a wide variety of consumer products, including Mexican candy and soda, artificial turf, jewelry, and vitamins and nutritional supplements.

The eleven District Attorney’s Offices in the action are part of the California Food, Drug and Medical Device Task Force, which prosecutes multi-jurisdictional actions involving product safety and labeling of food, drug and medical devices in California.  Consumer-protection prosecutors from Orange, Santa Clara, Santa Cruz, Alameda, Sonoma, Napa, Shasta, Solano, Marin and Monterey Counties participate in the task force.

In early 2015, Attorney General Kamala D. Harris announced the formation of the Bureau of Children’s Justice (BCJ) at the California Department of Justice.  BCJ’s mission is to protect the rights of children and focus the attention and resources of law enforcement and policymakers on the importance of safeguarding the rights of every child so that they can meet their full potential.  Staffed with civil rights and criminal prosecutors, and working across all sectors of the Department of Justice, including Legislative Affairs, Native American Affairs, the Division of Law Enforcement and other sections, BCJ focuses its enforcement and policy reform efforts on several key areas, including discrimination and inequities in education; systemic reform of foster care, adoption, and juvenile justice systems; and consumer protection relating to services and products for children or families with children.

LOS ANGELES – Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding new requirements for the registration and regulation of drones, also known as small Unmanned Aircraft Systems (sUAS), due to the increased popularity of the technology.  According to the Federal Aviation Administration (FAA), effective December 21, 2015, drone operators who owned their drones prior to December 21 have until February 19, 2016 to register their drones with the FAA; those who purchased a drone on or after December 21 must register their drone prior to flying it outdoors. 

There is a $5 registration fee, however, individuals who register their drone before January 20 will have this fee refunded.  These new requirements apply to drones weighing more than 0.55 pounds; drones under this weight requirement need not be registered.  Drone operators who fail to properly register their drone may be subject to civil and criminal penalties.

These new requirements were issued to address safety concerns stemming from the rising popularity of drones.  It is projected that in 2016, 1 million drones subject to this registration requirement will be sold in the U.S., a 145 percent increase from 2015.  In 2014, according to the FAA, there were 238 total drone incidents reported; in 2015, this number had jumped to over 650 by August.

PROPER REGISTRATION AND SAFE USE OF DRONES

You can find complete directions for registering your drone here: https://registermyuas.faa.gov/.  The Attorney General offers California consumers the following highlights regarding the registration process and the safe use of drones:

• Drone registration should be completed online at https://registermyuas.faa.gov/ when: 1) a drone weighs between 0.55 pounds and 55 pounds, 2) the drone is owned by an individual, and 3) the drone is used for recreation.  Drones that weigh less than 0.55 pounds need not be registered with the FAA.  The weight limit applies only to the flying portion of the drone.
• Drone operators who owned their drones prior to December 21, 2015 have until February 19, 2016 to register their drones.  Those who purchased a drone on or after December 21, 2015 must register their drones with the FAA before flying outdoors.  The drone registration fee is $5.  This fee will be credited back to those who register before midnight, Eastern Standard Time, on January 20, 2016.   
• Drone registration should be done by paper (rather than online) when a drone is greater than 55 pounds, when a drone is used for commercial purposes, or when a drone is used for reasons other than merely a hobby or recreation.  
• A drone operator should always have the FAA registration certificate available, either in print or electronically, when flying a drone.  The registration certificate contains the FAA registration number, the registration’s expiration date, and the name of the drone certificate’s registrant.  
• Consumers who own multiple drones only need to register once with the FAA, and may use the same registration number on all of their drones.  Drone operators should visibly and legibly place their unique registration number on their drones. 
• To register a drone, a person must be at least 13 years old (if a drone’s operator is younger than 13 years of age, a person 13 years of age or older – such as a parent – must register the drone).  Additionally, you must be a U.S. citizen or permanent resident in order to receive a registration certificate from the FAA. 
• If a drone is not registered and is used outdoors, the FAA may impose penalties of up to $27,000.  Criminal penalties for the failure to register a drone include fines of up to $250,000 and/or imprisonment.
• A drone should be flown cautiously and safely.  It should not be flown near crowds of people or stadiums.  The FAA’s Advisory Circular on the use of model aircrafts may be found at http://www.faa.gov/documentLibrary/media/Advisory_Circular/AC_91-57A.pdf, and it provides that operators should fly drones below 400 feet and within their vision.        
• A drone should not impede, and should make way for, any manned aircraft.  Additionally, a drone should not be flown within 5 miles of an airport, unless the airport’s operator and control tower are contacted in advance.  For a list of California airports, go to http://www.faa.gov/airports/airport_safety/airportdata_5010/.  Consumers are also encouraged to review local ordinances that may be applicable to drone usage.

HELPFUL RESOURCES

The FAA’s YouTube videos on safe drone usage and drone registration are available at https://www.youtube.com/watch?v=l38WN5717jc, https://www.youtube.com/watch?v=XF5Q9JvBhxM, and https://www.youtube.com/watch?v=3jwPaFp8nMg.

Information regarding the FAA’s drone registration process is available at http://www.faa.gov/uas/registration/.  

Questions regarding the registration of drones with the FAA may be directed to UAShelp@faa.gov.  Live telephone assistance will be provided starting on December 25, 2015, at (844) 244-3565.  For additional facts regarding the drone registration requirements, go to https://www.faa.gov/uas/registration/faqs/.

What to do if A DRONE VIOLATION OCCURS

The FAA should be contacted immediately if you suspect that a drone violation has occurred.  The FAA’s Western Regional Operations Center may be reached at (425) 227-1999, or at 9-wsa-opsctr@faa.gov.

Additionally, if you suspect that a drone is unregistered, or is being utilized in a hazardous manner, contact your local police department or sheriff’s office.  In the case of an emergency, call 911.

Finally, the California Department of Justice protects the rights of consumers and collects complaints on a wide range of issues, including drone violations to identify wrongful activity.  To submit a complaint to the California Department of Justice regarding the dangerous or unlawful use of a drone, please use one of the following complaint forms:

English: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company.  

En Español: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_sp.pdf

中文: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_chin.pdf? 

Tiếng Việt: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_viet.pdf?

LOS ANGELES -- Attorney General Kamala D. Harris today issued a letter urging the Consumer Financial Protection Bureau (CFPB) to adopt regulations that strengthen protections against harmful payday and small-dollar lending practices. The CFPB is proposing to create the first nationwide regulatory floor for the payday lending industry that can work in harmony with California’s laws and regulations to further protect vulnerable consumers from falling into vicious cycles of debt.

“Together with California’s existing lending laws, the Bureau’s proposals would bring needed protections to vulnerable California consumers who take out small-dollar loans, which too often are predatory and create a debt trap for fixed- and low-income borrowers. Californians who need short-term emergency access to cash are getting stuck in a destructive and unaffordable cycle of repeat high-interest loans that they cannot afford to repay,” Attorney General Harris stated in the letter to the CFPB.

In 2014, 1.8 million California consumers took out 12.4 million payday loans, borrowing $3.38 billion.  There are over 2,000 licensed payday loan locations in California (substantially more than the number of McDonald’s restaurants).  Moreover, many locations are in counties with high poverty rates and low education levels, effectively targeting communities most in need of emergency access to cash and most at risk of becoming trapped in crippling cycles of debt.

In the letter, Attorney General Harris strongly supports the CFPB’s proposals to curb the abuse stemming from traditional, high-cost payday loans and collections and urges the CFPB to consider additional measures that would provide a meaningful alternative for Californians who need small-dollar loans.

Attorney General Kamala D. Harris’ Comments on the CFPB’s Proposed Actions

• Require a meaningful “ability to repay” standard: Attorney General Harris strongly supports the CFPB’s proposed “ability to repay” standard. This would require lenders to make good-faith, reasonable determinations that a consumer has the ability to repay the loan, after satisfying financial obligations and living expenses. Requiring an ability to repay analysis for payday and small-dollar loans would help ensure consumers are provided with loans they can afford without needing to re-borrow or default.

• 60-day “cooling off” period: Attorney General Harris supports the proposed 60-day “cooling off” period between short-term loans, which presumes an inability to repay subsequent loans made within 60 days of another loan, and a mandatory 60-day “cooling off” period after consumers take out three short-term loans in a row. This would help protect consumers from falling into debt cycles.

• Implement an “off-ramp” to taper of indebtedness: If the CFPB decides to allow an alternative to an “ability to repay” standard, Attorney General Harris would support increasing screening requirements, structural protections, and potentially phasing out alternative loans that do not require an “ability to pay” standard over time. Attorney General Harris would support the CFPB’s “off-ramp” proposal, which would allow consumers to repay certain short-term loans over additional installments without incurring additional costs, so they may better avoid taking out additional loans. Lenders should also be required to notify consumers of their right to take the off-ramp, and should not discourage borrowers from using the off-ramp.

• Curbing harmful payment collection practices: Attorney General Harris strongly supports proposals requiring notification before lenders attempt to collect payment from consumers’ accounts. Lenders should also be limited to two attempts to collect payment unless they obtain new authorization. This can help protect consumers from excessive account fees following unsuccessful withdrawal attempts.

• Protect consumer privacy: Attorney General Harris encourages the CFPB to require strict limitations on information entered into databases. Use of this data should be restricted to confirming eligibility for new loans, and access should only be granted to the necessary parties. Borrowers should receive notice that their data will be collected and stored in the database.

• Permit states to adopt more restrictive laws and regulations: The CFPB is strongly encouraged to take the necessary steps to clarify that it does not intend to undermine or preempt stricter state and local laws governing payday and small-dollar loans. Following assessment of need, further regulations may be deemed necessary for certain states and localities. The ability to implement additional restrictions should remain available.