Consumer Protection

LOS ANGELES - Attorney General Kamala D. Harris today announced a stipulated judgment resolving allegations that JPMorgan Chase (Chase) committed credit card debt-collection abuses against tens of thousands of Californians. The settlement specifically addresses debt collection wrongdoing that includes collecting incorrect amounts, selling bad credit card debt, and running a debt collection mill that involved illegally “robo-signing” thousands of court documents and improperly obtaining default judgments against military servicemembers.

As part of the settlement, Chase will pay $50 million in restitution to consumers nationwide, including an estimated $10 million to California consumers, and significant restitution to servicemembers in California, some of whom were on active duty when Chase obtained illegal default judgments against them.  Chase will also pay $50 million in penalties and other payments to California, through the Office of the Attorney General.  The judgment includes injunctive terms that fundamentally change Chase’s credit card debt-collection practices to prevent similar misconduct in the future.

“Abusive and illegal debt collection practices will not be tolerated in California,” Attorney General Harris said.  “This settlement provides real relief to tens of thousands of Californians, including servicemembers, and prevents JPMorgan Chase from continuing  these deceptive and illegal debt collection practices.”

Between 2009 and 2013, Chase filed more than 125,000 credit card collection lawsuits against California consumers relying on illegally robo-signed sworn documents and provided an additional 30,000 robo-signed sworn statements in support of lawsuits filed against California consumers by third-party debt-collectors.  Chase also made systematic calculation errors regarding the amounts owed, and sold “zombie debts” to third-party debt-collectors that included accounts that were inaccurate, settled, discharged in bankruptcy, not owed, or otherwise not collectable.

The Attorney General’s investigation and litigation further revealed that Chase sent letters to consumers that contained illegal threats and were signed by attorneys who did not review the accuracy of the information, determine if litigation was appropriate, or intend to follow through on some of the threats made, in violation of California’s Rosenthal Fair Debt Collection Practices Act.  Chase also filed false declarations regarding military service and improperly obtained default judgments against servicemembers on active duty, in violation of the Servicemembers Civil Relief Act and the California Military and Veterans Code.

The judgment requires Chase to document and confirm debts before filing credit card collections lawsuits or selling credit card debts to debt-collectors.  Chase is barred from robo-signing court and other documents, and also must prohibit debt buyers from reselling the credit card debts owed to Chase.  Chase is also barred from selling certain debts, and is required to permanently stop all attempts to collect, enforce in court, or sell more than 528,000 consumer accounts valued at hundreds of millions of dollars. 

This stipulated judgment resolves litigation filed by the Attorney General against Chase on May 9, 2013.  Chase separately agreed to pay additional penalties and other payments to the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau and other states in related actions.

Copies of the complaint and stipulated judgment are attached to the online version of this release at www.oag.ca.gov/news.

LOS ANGELES - Attorney General Kamala D. Harris today issued a consumer alert to warn Californians about debt collectors giving consumers inaccurate information about the amnesty program for unpaid traffic and non-traffic infraction tickets.  The amnesty program offers eligible Californians who have unpaid infraction tickets the opportunity to have their debt reduced by half or more and to have their driver’s license reinstated.  Each county has its own rules related to the amnesty program, so you must contact the county that issued your ticket to see if you qualify.  The program, which started October 1, 2015, continues through March 31, 2017.

This consumer alert is being issued because of complaints made against debt collectors managing the amnesty program for some counties, claiming that they are not telling eligible consumers about the program or are providing misleading information.  The Attorney General’s Office has received complaints about:

• Debt collectors incorrectly telling eligible consumers that they don’t qualify for amnesty;
• Debt collectors not telling eligible consumers about the program;
• Debt collectors pressuring consumers to make “good faith” payments but not telling them that such payments will make them ineligible for debt reduction; and
• Debt collectors failing to ensure that the Department of Motor Vehicles (DMV) receives notice that consumers have completed their payments under the amnesty program.  

Here is what you should know about the amnesty program:

When will the amnesty program be available?

The program started October 1, 2015, and ends March 31, 2017.

What tickets are eligible for amnesty?

• Unpaid tickets and related “failure to appear” violations with an initial payment due date on or before January 1, 2013 are eligible.
• Some misdemeanors may qualify.  Contact the Superior Court in the county that issued the ticket to see if your misdemeanor qualifies.  You can find a list of superior courts with phone numbers and links to their amnesty program website here: https://www.dmv.ca.gov/portal/dmv/detail/home/amnestyproginfo

What tickets are not eligible for amnesty?

• Parking tickets
• Citations for reckless driving
• Citations for driving under the influence (DUI)

Who cannot participate in the debt reduction portion of the amnesty program?

• People whose ticket had an initial due date of January 2, 2013 or later.
• People who owe victim restitution on any case in the county where the ticket was issued.
• People with certain outstanding misdemeanor or felony warrants in the county where the ticket was issued.
• People whose ticket had an initial due date of January 1, 2013 or earlier, but who made a payment on the ticket after September 30, 2015.  You may, however, still be able to have your driver’s license reinstated under the amnesty program even if you do not qualify for debt reduction.

How much will I have to pay?

Under the amnesty program, eligible participants will not have to pay any civil assessments.  Once the civil assessments are deducted, the remaining balance owed will be reduced by 50% or 80%, depending on income or whether you receive public assistance.

• The discount will be 80% for those who receive public assistance or certify that they make 125 percent or less than the federal poverty level.  This number is currently $14,712 for individuals, $19,912 for a family of two, $25,112 for a family of three, and $30,312 for a family of four.
• The discount will be 50% for all other eligible participants.

How do I participate in the amnesty program?

Contact the Superior Court in the county where you received the ticket to see if you qualify for the amnesty program.  If you have more than one ticket in more than one county, you will have to contact the Superior Court in multiple counties.

Will there be a fee to participate?

A $50 fee may be charged by the Superior Court, county, or third party collection agency.

The DMV will also charge a $55 fee for reinstatement of your driver’s license, as it does for any license reinstatement.

Will there be an installment payment option?

Yes, a payment plan option will be available through the Superior Court, county, or third party collection agency.  Payments will be based on the ability to pay.

To File a Complaint and for More Information:

If you have information about a debt collector giving people misleading information about the program, you can file a complaint with the Attorney General’s Office online here (https://oag.ca.gov/contact/consumer-complaint-against-business-or-company), or by sending a letter to:

Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550 

The Judicial Council has also posted information about the amnesty program, available at: http://www.courts.ca.gov/trafficamnesty.htm.

LOS ANGELES - Attorney General Kamala D. Harris today announced a new collaboration between the Office of the Attorney General and AARP California to protect seniors from abuse and fraud. The collaboration will focus on educating seniors, their families and the general public about elder abuse and fraud laws designed specifically to protect those who are 50 and over. 

“Seniors are one of the most vulnerable and targeted populations in our state. My office is committed to holding accountable those who defraud, abuse, or neglect our senior citizens,” said Attorney General Harris.  “I am pleased to collaborate with AARP California to deepen our engagement with seniors and to ensure their protection from those who prey upon them.”

Specifically, the collaboration will include hosting tele-town halls and webinars, developing and disseminating consumer and educational resources to protect against scams and schemes, and continuing to vigorously prosecute those who mistreat the elderly population in violation of state law.

“AARP California, through its AARP Fraud Watch Network, is very pleased to join forces with the Office of the Attorney General so together we can further arm Californians with the tools they need to spot and avoid scams,” said Nancy McPherson, AARP CA State Director. “The Fraud Watch Network is a free resource for people of all ages that offers real-time alerts about the latest scams in our state, along with a scam tracking map where people can report on scams to alert their friends and neighbors. Additionally, the AARP Fraud Watch Network provides advice to outsmart con artists, and a helpline where Californians can talk to a trained volunteer for advice if they or someone they love has been scammed,” added McPherson.

Upon coming into office, Attorney General Harris reinstituted the Operation Guardian program under the Bureau of Medi-Cal Fraud and Elder Abuse (BMFEA), which helps protect and improve the quality of care for California's elder and dependent adult residents living in skilled nursing facilities and which had been suspended as a result of budget cuts.  BMFEA is charged with investigating and prosecuting Medicaid provided fraud, the abuse and neglect of patients in Medicaid-funded residential health care facilities, and investigating fraud in Medicaid program administration. 

BMFEA is headquartered in Sacramento with five field offices (including Sacramento regional, Burbank, Laguna Woods, San Diego, and West Covina).  The Bureau maintains a toll-free number (1-800-722-0432) for referrals or complaints and offers a simple-to-use complaint form online: http://ag.ca.gov/bmfea/reporting.php.

BMFEA also participates in community events, such as health fairs and neighborhood crime prevention meetings, and provides elder abuse and fraud training to law enforcement and regulatory agencies.

In addition to consumer resources to protect seniors, Attorney General Harris’ office and AARP California are exploring ways to engage AARP members in the Attorney General’s 3rd grade reading campaign to ensure children are reading at grade level by third grade and on track to graduate from high school.  The initiative is a core priority for Attorney General Harris and is a central tenet of her “smart on crime” approach, as those who regularly attend school from a young age are less likely to drop out of school, fail to graduate, and come into contact with the criminal justice system.  The AARP Foundation Experience Corp program engages adult aged 50-plus as tutors and mentors to increase literacy and engagement among children in grades K-3.

En Español 

中文

LOS ANGELES - Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding potential scams targeting seniors during Medicare’s open enrollment period, from October 15 through December 7.  During this time, senior citizens who are 65 years old and older should assess their Medicare plans and consider various plan options.  Any Medicare plan changes that are made during open enrollment will be effective on January 1, 2016.  In the course of evaluating Medicare plans, seniors should vigilantly ensure that they are not taken advantage of by Medicare scam artists who may misguide them, or attempt to obtain and misuse their personal information. 

What to look out for

The Attorney General offers California consumers the following tips in order to protect themselves during Medicare’s open enrollment period:

•  Consumers should not provide social security numbers or account information to callers who claim to be Medicare employees.  Medicare employees will not call and request such information by phone.

•  Seniors should not provide personal information to callers who claim to be calling on behalf of a doctor, hospital, or health agency.  When seniors are uncertain about the identity of a caller, they should directly contact the organization in question.

•  Medicare does not have door-to-door sales representatives.  Seniors should be cautious of individuals posing as door-to-door sales representatives for Medicare, and should not allow such individuals into their homes.   

•  Be wary of offers to provide free medical exams or supplies.  Dishonest companies may use these offers to obtain and misuse your personal information. 

•  Be careful of marketing promotions where a free lunch is offered to seniors in exchange for attending a presentation or signing up for a plan.  Since federal law does not permit a free meal to be provided during the marketing of Medicare health or drug plans, anyone offering this arrangement should not be trusted.

•  If a representative demands that billing information be provided by phone or on the web, refuse to provide such information and request a bill in the mail.  Medicare plan representatives are not allowed to ask you for payment over the phone or web. 

•  A salesperson should not use aggressive sales tactics to force a senior into purchasing a Medicare product or plan that is unnecessary or unsuitable.  If you encounter such tactics, do not make a decision until you have had a chance to discuss it with a trusted friend or relative who can assist you with determining what best suits your needs. 

What to do if you are the victim of a Medicare scam

If you believe you are a victim of Medicare fraud, call and file a report at the Inspector General’s hotline:  1-800-447-8477.  You can find more information here: www.stopmedicarefraud.gov. 

The Centers for Medicare and Medicaid Services have prepared a convenient YouTube video titled “Medicare & You” that explains how to protect yourself from becoming a victim of Medicare fraud:  To watch the video, please go to: https://www.youtube.com/watch?v=fY9lmEKlu88. 

The California Department of Insurance provides insurance protection for Californians and collects complaints on Medicare plans that are underwritten by insurance companies.  To submit a complaint to the California Department of Insurance regarding a Medicare fraud or scam, please visit: https://www.insurance.ca.gov/01-consumers/101-help/index.cfm.

The California Department of Justice protects the rights of consumers and collects complaints on scams in order to identify patterns of wrongful activity.  To submit a complaint to the California Department of Justice regarding a Medicare fraud or 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

HELPFUL RESOURCES

To learn more about Medicare, visit the official U.S. Government site for Medicare at https://www.medicare.gov (English) or https://es.medicare.gov (Español).

The California Department of Insurance regulates health plans that are underwritten by insurance companies.  Information regarding the various health care options for seniors is available at http://www.insurance.ca.gov/0150-seniors/0300healthplans.  

The California Department of Aging’s Health Insurance Counseling and Advocacy Program (HICAP) offers information on Medicare and assistance with Medicare benefits.  Learn more about HICAP at https://www.aging.ca.gov/HICAP. 

SAN FRANCISCO - Attorney General Kamala D. Harris is urging California T-Mobile customers and T-Mobile account applicants to immediately place fraud alerts on their credit records in the wake of the massive breach of T-Mobile customer data housed at Experian, one of the nation’s major credit reporting agencies. Placing a fraud alert on your credit records protects consumers from identity theft by requiring that businesses verify your identity before issuing credit.

Up to 15 million T-Mobile customers’ and account applicants’ Social Security numbers, names, addresses, dates of birth, and identification numbers (such as driver’s license, military ID or passport number) were exposed in the cyber attack on Experian. According to Experian, the breach compromised data that was used by T-Mobile in connection with credit checks of individuals who applied for T-Mobile services from September 1, 2013 through September 16, 2015.  In the wrong hands, it could be used for identity theft, particularly “new account fraud,” or opening up new accounts in the victim’s name.

Unlike credit monitoring, which notifies individuals when activity has occurred on their credit records, a fraud alert is a preventive measure. When a fraud alert is in place, a merchant or other credit issuer checking the credit history of someone applying for credit gets a notice that there is a fraud alert. This alerts the merchant to take extra steps to verify the identity of the applicant. A fraud alert lasts 90 days and can be renewed.

A longer-lasting protection is a security freeze, which prevents the opening of new credit accounts unless the consumer has taken steps to temporarily lift the freeze. A freeze costs $10 per credit bureau or $5 for Californians over 65; it is free to victims of identity theft.  For instructions on how to place a freeze on your account, please see “How to ‘Freeze’ Your Credit Files: Tips for Consumers” under “Helpful Links” below.   

You can place a fraud alert with all three major credit bureaus by calling just one of the toll-free fraud numbers below. You will reach an automated telephone system that allows you to flag your file with an alert at all three bureaus. You will also be sent instructions on how to get a free copy of your report from each of the credit bureaus.

Experian 1-888-397-3742

Equifax 1-800-525-6285

TransUnion 1-800-680-7289

Helpful Links:

T-Mobile Breach Notice: https://oag.ca.gov/ecrime/databreach/reports/sb24-58079

For additional information on “Breach Help: Consumer Tips from the California Attorney General”, visit:  http://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis-17-breach-help.pdf

For additional information on “How to ‘Freeze” Your Credit Files: Tips for Consumers”, visit: http://oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_10_credit_freeze_doj.pdf

SAN FRANCISCO - Attorney General Kamala D. Harris today announced changes to regulations implementing Proposition 65, the landmark law requiring businesses to provide warnings if they expose individuals to any listed carcinogens or reproductive toxins.    

The proposed amended regulations are the product of nearly five years of analysis and have been drafted in consultation with business and environmental groups.  They are intended to protect public health and the environment while helping to stem abuse of the law’s mechanism to allow for enforcement by private parties.  The amendments mark the first substantial change to the Attorney General’s Proposition 65 regulations since their adoption in 2001-2003. The 45-day public comment period is open until November 9.

“California has led the nation for decades in protecting our residents and the environment from pollutants and toxic chemicals,” said Attorney General Harris.  “These proposed changes maintain the intent of Proposition 65 and our vital legacy of public health and environmental protections while eliminating incentives to abuse the system.  Good public policy means rejecting the false choice that suggests we must sacrifice our commitment to the environment and public health for California businesses to thrive.”

In 1986, California voters approved the initiative to address their growing concerns about exposure to toxic chemicals. These regulatory changes will help restore public confidence that Proposition 65 is used for its proper health-protective purposes and not abused for private gain.  The proposed amendments focus on increased transparency and accountability to ensure that civil penalties in litigation brought by private enforcers under Proposition 65 are used for purposes that are clearly defined, relevant to the violations which prompted the settlement, and beneficial to Californians. 

The proposed regulations would also increase accountability by capping “in lieu of penalties” payments to ensure that the Office of Environment Health Hazard Assessment receives revenues necessary to continue its work of implementing Proposition 65 and protecting public health, as intended by the statute.  The proposed changes also raise the bar for demonstrating that settlements requiring reformulation confer a significant public benefit, instead making individual cases fact-specific and stating that payments under a settlement “may” confer public benefit.

For information on submitting public comments, click here.

Attorney General Harris has a long history of taking action to protect the health and well-being of California communities.  She has filed lawsuits to enforce Proposition 65 and other environmental laws, protecting local communities from diesel emissions, hazardous electronic waste, and other harmful pollutants.  She has also supported the Environmental Protection Agency’s efforts to curb greenhouse gas emissions from coal-fired power plants and led a coalition of states in intervening to defend the EPA from attacks and legal challenges.

SAN FRANCISCO - Attorney General Kamala D. Harris today issued a consumer alert to inform Californians that tomorrow, Saturday September 26, is the 10th National Prescription Drug Take-Back Day, an initiative led by the U.S. Drug Enforcement Administration in partnership with local law enforcement. Take-Back Day serves to provide individuals with accessible, responsible, and safe options for disposing of prescription drugs.  Unwanted, unused, and/or expired prescription drugs can be disposed, with no questions asked, at more than 325 collection sites throughout California.

Prescription drugs in the home are highly susceptible to abuse. Studies have shown that as much as 70% of persons who first misuse prescription drugs obtained the medication from their friends or relatives. Prescription drugs are also a leading cause of accidental poisoning and overdose. Data compiled by the Centers for Disease Control indicate that 51.8% of drug overdose deaths in the United States in 2013 were related to prescription drugs.

By clearing out medicine cabinets of unwanted and expired prescription drugs, Californians can actively combat prescription drug abuse by reducing availability and thus minimizing the risk of abuse. Not all medications can be safely disposed at home, and consumers should always check the labels on their medicines for instructions on the safe disposal of unused medication. But consumers can eliminate any uncertainty over how to dispose of their medication by bringing it to a take-back day event. They can anonymously dispose of prescription drugs and ensure that they will be safely discarded.

Drug Drop-Off Locations

On Saturday, September 26, from 10pm-2pm, special collection sites will be open across California. Last year, over 56,695 pounds (28 tons) of prescription drugs were dropped off at Take-Back Day collection sites in California alone.

This service is free and anonymous for consumers. For more information and to find the closest collection site to you, please visit: www.deadiversion.usdoj.gov/drug_disposal/takeback/index.html and click on “Locate a Collection Site.”

Additional Information and Resources

For information on year-round options for recycling medication, please visit: http://www.calrecycle.ca.gov/HomeHazWaste/Medications/household.htm

For information on disposing unused medication, please visit: http://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/EnsuringSafeUseofMedicine/SafeDisposalofMedicines/ucm186187.htm#Flush_List . 

SACRAMENTO - Attorney General Kamala D. Harris released the following statement today in response to Governor Jerry Brown’s signing of Assembly Bill 556, legislation authored by Assemblymember Jacqui Irwin (D-Thousand Oaks) and sponsored by Attorney General Harris that will help increase consumer confidence in charitable giving.

“I applaud Governor Brown for signing AB 556, our legislation to increase transparency and accountability in charitable fundraising,” said Attorney General Harris. “This law empowers Californians to donate wisely by providing clear information about how charities use their donations. I thank Assemblymember Irwin for introducing the legislation and for her leadership on this important issue.”

AB 556 closes loopholes in disclosure laws for paid commercial fundraising campaigns by modifying the definition of “commercial fundraiser” to include fundraising counsel that use deceptive tricks to evade registration and fundraising transparency requirements. Fundraising campaigns involving these for-profit companies will now have to disclose whether a portion of donor contributions will be directed to the paid fundraiser.  The bill also expands the existing 10-year statute of limitations for charitable enforcement cases to include for-profit fundraising firms and other third parties who engage in misconduct, extending the window of time to investigate and prosecute violations of charitable law by for-profit fundraisers.

“I’m pleased that Governor Brown signed AB 556, a collaborative effort with Attorney General Kamala Harris to increase transparency in charitable donations,” said Assemblymember Irwin. “This bill will support consumer confidence for the more than 70,000 active nonprofit organizations doing great work in California.”

The bill was supported by a diverse coalition of nonprofits operating in California and received unanimous support in both the Assembly and the Senate.

Attorney General Harris’ office recently released a report summarizing the results of charitable solicitation campaigns conducted by commercial fundraisers in 2013, which found that commercial fundraisers collected approximately $361.5 million in charitable contributions in 2013, an increase of $67.2 million over the amount reported in 2012. Read the report here: https://oag.ca.gov/sites/all/files/agweb/pdfs/charities/publications/2013cfr/cfr2013.pdf.

LOS ANGELES - California Attorney General Kamala D. Harris today issued a consumer alert on reports of price gouging by businesses, namely hotels, during the devastating wildfires that have swept our state. The Attorney General also issued a warning that the California Department of Justice is prepared to investigate and prosecute those that attempt to wrongfully profit from the destructive fires that are driving Californians out of their homes.

"As first responders fight to save communities from raging wildfires and thousands of Californians face devastation and hardship, it is exploitative and also unlawful for businesses to engage in price gouging," said Attorney General Harris.

California’s anti-price gouging statute, Penal Code Section 396, becomes effective immediately after the Governor or a local official declares a state of emergency. Governor Jerry Brown declared a state of emergency in Calaveras and Amador counties on September 11, 2015, and in Lake and Napa counties on September 13, 2015.  

California law generally prohibits charging a price that exceeds, by more than 10%, the price of an item before the declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline.  The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing.  Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials have increased for the business.

Violations of the price gouging statute are subject to criminal prosecution that can result in one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $5,000 per violation, injunctive relief and mandatory restitution.  The Attorney General and local district attorneys can enforce the statute.

Anyone who has been the victim of price gouging, or who has information regarding potential price gouging, is encouraged to immediately file a complaint with the Attorney General's Office by going to the Attorney General's website or by calling (800) 952-5225.