Consumer Protection

SACRAMENTO -- Attorney General Kamala D. Harris today announced her support for State Senator Bob Wieckowski’s Economic Equity and Financial Stability Initiative, a three-bill package to protect consumers from abusive debt buyer practices and help struggling Californians manage their personal debt and gain a fresh financial start.

“This legislation will help many Californians manage their debt without being abused,” said Attorney General Harris. “Low-wage earners fighting to pay down debt are often harmed by abusive debt collection practices that keep them from reaching financial stability. This legislation will offer consumers a path to getting their finances back on track and give them the tools to fight back against predatory practices.”

The initiative consists of SB 308, SB 501, and SB 641:

• SB 308 – Allows debtors to retain enough of their assets so that they can get back on their feet after a bankruptcy.
• SB 501 – Establishes a tiered garnishment rate to lower the unjustly high percentage of income currently taken from low-income workers’ paychecks.
• SB 641 – Provides low-income consumers with legal recourse to avoid being forced to pay off someone else’s debt or a debt they have already paid.

“Attorney General Harris is fearless when it comes to standing up to some of the abuses of banks and debt collectors, whose sloppy work and misconduct puts consumers in harm’s way and threatens their financial futures,” Wieckowski said. “She is a tireless fighter for consumers and I am proud to join countless working families throughout California in welcoming her support for this initiative.”

All three bills have passed the state Senate and SB 501 and SB 641 are on the Assembly floor.  SB 308 is currently in the Assembly Appropriations Committee.  The bills enjoy a broad array of support from a diverse coalition of organizations ranging from AARP to labor to legal aid groups.

LOS ANGELES – Attorney General Kamala D. Harris today issued a consumer alert to Californians based on an increased number of complaints regarding student loan debt consolidation scams received by the Attorney General’s Public Inquiry Unit. Often times purporting to offer “student debt management” or “student loan consolidation” plans, private companies are charging borrowers upfront or monthly fees for FREE federal loan benefits. These companies may claim that they have a special relationship with the Department of Education or that a special governmental loan consolidation will be ending soon and will urge students to use their services in obtaining student loan consolidation or relief. Many times these companies will charge an initial application fee as well as a monthly service fee. 

Consolidating federal student loans is FREE and can only be done through the Federal Direct Consolidation Program. A Direct Consolidation Loan will combine multiple federal student loans into one loan, resulting in a single monthly payment. Most Direct Consolidation Loans will be eligible for alternative payment plans, including income-driven repayment plans that can lower monthly payments according to income levels. Private education loans are not eligible for the Federal Direct Consolidation Program.

Applying for a Direct Consolidation Loan can be completed online:

Step 1:  Find out more information on the eligibility requirements, benefits, and potential warnings against federal loan consolidation at the Department of Education’s Federal Student Aid website here: https://studentaid.ed.gov/sa/repay-loans/consolidation. 

Step 2:  Make a list of all of your federal student loans. You can get a complete list of all of your federal loans here: https://nslds.ed.gov/nslds/nslds_SA/.

Step 3:  Apply for a Direct Consolidation Loan by completing and submitting the FREE Federal Direct Consolidation Loan Application and Promissory Note found here: https://studentloans.gov/myDirectLoan/consolidationPaper.action.  

Step 4:  Choose and apply for a Repayment Plan option. If you are having trouble making your student loan payments, you may want to consider an income-driven repayment plan such as the Income Based Repayment Plan, Pay As You Earn Plan, Income Contingent Repayment Plan, or the Income Sensitive Repayment Plan: https://studentaid.ed.gov/sa/repay-loans/understand/plans. The online Repayment Estimator may be helpful in determining the best repayment plan for your needs: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action.  

If You Are a Current Servicemember with Federal Student Loans:

As a current servicemember you may be eligible for special benefits and repayment options for your federal student loans. More information can be found here: https://studentaid.ed.gov/sa/sites/default/files/military-student-loan-benefits.pdf.  

For More Information on Federal Loan Consolidation: 

If you have questions about consolidating your federal student loans, you can contact the Department of Education’s Loan Consolidation Information Call Center at: (800) 557-7392 or visit www.studentloans.gov/. 

To File a Complaint About a Possible Student Loan Debt Relief Scam, Contact:

The Attorney General’s Public Inquiry Unit: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company

Consumer Financial Protection Bureau: http://www.consumerfinance.gov/complaint/

LOS ANGELES -- California Attorney General Kamala D. Harris today announced that California and 47 other states and the District of Columbia have reached a $71 million settlement with pharmaceutical company Amgen Inc. to resolve allegations that Amgen unlawfully promoted biologic medications Aranesp and Enbrel. California will receive $4.6 million from the settlement.

Aranesp is used to treat certain types of anemia by stimulating bone marrow to produce red blood cells.  Enbrel is used to treat a number of conditions, including plaque psoriasis. 

“Amgen’s false marketing denied consumers the ability to make educated decisions about their healthcare,” said Attorney General Harris. “This settlement will hold the company accountable for its deceptive marketing and prevent it from using misleading practices in the future.”

In documents filed today, Attorney General Harris and the other attorneys general allege that Amgen violated state consumer protection laws by: (1) promoting Aranesp for dosing frequencies longer than the FDA approved label without competent and reliable scientific evidence to substantiate the extended dosing frequencies; (2) promoting Aranesp for anemia caused by cancer without having FDA approval or competent and reliable scientific evidence to support it; and (3) promoting Enbrel for mild plaque psoriasis even though Enbrel is only approved by the FDA to treat chronic moderate to severe plaque psoriasis.

The consent judgment requires Amgen to reform its marketing and promotional practices.  For example, under the terms of the consent judgment, Amgen may not make false, deceptive, or misleading written or oral claims in promoting Enbrel or any drug in the same class as Aranesp.

The other states participating in the settlement are Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming, as well as the District of Columbia. 

SAN FRANCISCO – Attorney General Kamala D. Harris today announced that Capital Sweepstakes Systems, Inc. (Capital Sweepstakes), a major sweepstakes gambling software provider, will pay $700,000 in civil penalties and costs and admit that it violated state gambling laws, in a case brought by the joint state and local Sweepstakes Gambling Task Force.

This settlement resolves allegations that Capital Sweepstakes violated state laws governing illegal gambling and unfair competition.  In addition to the $700,000 it will pay, Capital Sweepstakes is barred from conducting any kind of sweepstakes operations in the state for 10 years.

“Capital Sweepstakes profited by targeting low-income communities, misrepresenting their slot-machine style operations as legal enterprises and creating magnets for crime,” said Attorney General Harris. “My office is dedicated to combatting and dismantling illegal and unregulated gambling operations statewide. I thank our Gambling Task Force and the Bureau of Gambling Control for their tireless investigative work.”

This case stems from a joint investigation conducted by the Federal Bureau of Investigation (FBI) and the California Department of Justice, Bureau of Gambling Control that included extensive undercover work and multiple search warrants being served on Capital Sweepstakes’ California operations.  Additionally, cash and accounts totaling more than $3,000,000 were seized in the investigation. 

As a result of the joint investigation, Capital Sweepstakes and co-defendant Kevin Freels pled guilty to federal felony gambling charges and agreed to forfeit $1.6 million to the federal government, in addition to the $700,000 in civil penalties and costs paid to resolve the state’s suit, for a total of $2.3 million. 

Software developers like Capital Sweepstakes design software systems that create interactive gambling-themed games that they represent as lawful promotional sweepstakes for play at sweepstakes cafés, but they constitute illegal gambling under state law.  These illegal operations often are magnets for other crime at the local level and generally target a vulnerable low-income clientele. 

Sweepstakes gambling enterprises are a nationwide problem and are estimated to earn over $10 billion a year.  Attorney General Harris recently filed an amicus brief in the California Supreme Court in support of several cases that the Kern County District Attorney’s Office brought against sweepstakes gambling operations.  The Supreme Court ruled unanimously that these sweepstakes gambling operations are illegal.  

Attorney General Harris continues to take the lead in the battle against these illegal gambling operations, having been involved in seizures of illegal sweepstakes gambling equipment and funds across the state and pioneering the use of the Unfair Competition Law to provide stronger monetary remedies against them. 

The Sweepstakes Gambling Task Force was formed to bring an end to illegal sweepstakes gambling operations in California and includes the California Attorney General’s Office, Contra Costa County District Attorney Mark A. Peterson, Fresno County District Attorney Lisa A. Smittcamp, Kern County District Attorney Lisa S. Green, Merced County District Attorney Larry Morse II, Riverside County District Attorney Michael A. Hestrin, San Diego County District Attorney Bonnie M. Dumanis, Sonoma County District Attorney Jill R. Ravitch, Tulare County District Attorney Timothy Ward, and Los Angeles City Attorney Michael N. Feuer.

LOS ANGELES — Attorney General Kamala D. Harris and the U.S. Department of Labor’s Wage and Hour Division (WHD) have signed a cooperative agreement to crack down on employer wage theft and other illegal labor practices. The Memorandum of Understanding signed by both agencies will facilitate the sharing of information and enhance enforcement of labor violations.

“Wage theft is a crime that hurts our economy and robs hard working Californians of their livelihoods,” said Attorney General Harris. “This agreement allows our agencies to better investigate and prosecute those who exploit workers and deny them the pay and benefits they deserve. I thank the Department of Labor for their partnership and commitment to protecting the rights of workers.”

“As host to one of the largest underground economies and immigrant populations in the United States, it makes sense that we begin our quest to combat wage theft. This partnership with the State AG's office is long over due,” said Ruben Rosalez, regional administrator for the western region for the U.S. Department of Labor.

The agreement will establish a collaborative partnership between the Attorney General’s Office and the U.S. Department of Labor to coordinate enforcement efforts. Specifically, the agreement will enhance both agencies’ ability to investigate and prosecute cases of wage theft and other labor violations through the exchange of investigative information and resources.  

The collaborative agreement will work to combat illegal labor practices such as wage theft, which includes violations of minimum wage and overtime laws.  In addition, the agreement will help both agencies combat employee misclassification, which denies workers important protections such as overtime pay and unemployment insurance.

Industries most impacted by wage theft include restaurants, janitorial work, the garment industry, retail, construction and car washes.

The Attorney General’s Underground Economy Unit is dedicated to protecting workers’ rights, bringing civil and criminal actions against persons engaged in the underground economy. The Unit's enforcement efforts are directed at deterring underground economy violations, recapturing lost revenues, and protecting workers and legitimate businesses from illegal and predatory enterprises.

U.S. Department of Labor Regional Administrator for the Western Region Ruben Rosalez and California Department of Justice General Counsel Brian Nelson sign the memorandum of understanding. 

Photo Credit: Office of the Attorney General. For high resolution copies of the image, please contact agpressoffice@doj.ca.gov

LOS ANGELES — Attorney General Kamala D. Harris today issued a consumer alert in response to the reported breach of UCLA Health, which has impacted up to 4.5 million people. The reported breach compromised the personally identifiable information and medical records of patients and providers at UCLA Health.

Individuals who believe they may have been impacted can contact UCLA Health at 877-534-5972 or visit http://www.myidcare.com/uclaprotection for more information and options to sign up for free services offered by UCLA.

This breach may pose a risk of sensitive information being compromised, including social security numbers (SSNs), separate health insurance IDs, diagnosis and treatment records, and payment information. Both SSNs and health insurance IDs create the potential for medical identity theft, which is the use of someone’s identity to obtain medical services or products or for financial gain. Medical identity theft can affect both the victim’s finances and medical records. Potentially impacted individuals should closely watch the Explanation of Benefits statements they receive from their health insurer. If the statement includes a service or product you did not receive, contact the insurer and ask for details. For more information, see First Aid for Medical Identity Theft: Tips for Consumers by clicking here. These Tips are also available in Spanish.

The Attorney General’s Breach Help: Tips for Consumers has simple instructions for consumers who have been affected by a breach and includes what to do in response to a Social Security number breach. Breach Help is also available in Spanish.

Steps for Responding to Social Security Number Breach: 

1. PLACE A FRAUD ALERT.

Contact the three major credit bureaus and place a 90 day “fraud alert.” This helps protect you against the possibility of an identity thief opening new credit accounts in your name. When a merchant checks the credit history of someone applying for credit, the merchant gets an “alert” that there may be fraud on the account.

Experian       1-888-397-3742

Equifax         1-800-525-6285

TransUnion  1-800-680-7289

You will reach an automated telephone system. You will also be sent instructions on how to get a free copy of your report from each of the credit bureaus. Order the reports.  

2. REVIEW YOUR CREDIT REPORTS.

Look through each one carefully. Look for accounts you do not recognize, especially accounts opened since December 2014, when the Anthem breach occurred. Follow the instructions in the report for disputing any questionable information.

3. CONSIDER A SECURITY FREEZE.

Placing a security freeze on your credit files offers longer-term protection. For information on how to do this, see “How to Freeze Your Credit Files” at www.oag.ca.gov/privacy/info-sheets

4. BE WARY OF PHISHING ATTEMPTS.

If you get an email or call from someone claiming to be from Anthem and asking for your personal information, do not provide it. Scammers often take advantage of breaches by offering to help and actually seeking to steal your information. Check with Anthem through the phone number you usually use or one from the phone book, if you want to confirm that such a contact is legitimate.

More consumer information from the Attorney General:

First Aid for Medical Identity Theft: Tips for Consumers
https://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis_16_med_id_theft.pdf

En Español: Primeros auxilios para el robo de identidad médica: Consejos para los consumidores
http://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis_16_med_id_theft_sp.pdf

Breach Help: Tips for Consumers
www.oag.ca.gov/sites/all/files/agweb/pdfs/privacy/cis-17-breach-help.pdf?

En Español:  Ayuda en caso de robo de datos confidenciales
www.oag.ca.gov/sites/all/files/agweb/pdfs/privacy/sp-cis-17-breach-help.pdf?

How to Order Your Free Credit Reports
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_11_free_annual_doj...

En Español:  Cómo encargar sus informes de crédito gratuitos
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis11spanish.pdf?

How to "Freeze" Your Credit Files
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_10_credit_freeze_d...

Identity Theft Victim Checklist
http://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/CIS_3_victim_checkl...

En Español: Lo que deben hacer las víctimas de robo de identidad

Top 10 Tips for Identity Theft Protection
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_1_top_10tips_doj.pdf?

En Español:  Los 10 consejos para protegerse contra el robo de identidad 
www.oag.ca.gov/sites/all/files/agweb/pdfs/idtheft/cis_1_top_10tips_doj_s...
 

SAN FRANCISCO – Attorney General Kamala D. Harris today released an enhanced interactive tool to help former Corinthian Colleges, Inc. students  learn about new expanded loan relief options granted to students by the U.S. Department of Education. As a result of the Department’s announcement, a large majority of former California Heald College students are now eligible for a streamlined process for loan forgiveness, with an estimated $500-$600 million worth of loans made to approximately 40,000 former Heald students since 2010. 

Corinthian students should utilize the interactive tool created by the Attorney General’s office to learn more about their new relief eligibility and to connect with free resources near them. 

Students will be prompted to answer a short series of questions, which will result in a personalized resource sheet that can be downloaded or emailed for future reference. The personal resource sheet will provide students with information about types of relief they may be eligible for, information on free local legal aid organizations that may provide advice and assistance in applying for relief, and can optionally provide information on cost-effective educational opportunities near them.   

This week, the U.S. Department of Education announced expanded debt relief options for Corinthian students, which will result in many more students being eligible for relief. Specifically, the Department expanded eligibility for students to apply for a closed school discharge, extending the eligibility window back to June 20, 2014 for students who withdrew from a Corinthian College. With the recent closure of all of Corinthian’s California campuses, students in the state will greatly benefit from the Department of Education’s expanded relief effort.  Additionally, the Department announced a streamlined process for many former Heald students to apply for relief through a borrower defense to repayment.   Ten of the thirteen former Heald Colleges were located in California.

The Department of Education’s announcement comes after continuous calls from Attorney General Harris for substantive relief for students suffering from crippling debt.

In May, Attorney General Harris sent a letter to U.S. Department of Education Secretary Arne Duncan, asking the Department to exercise its authority under closed school discharge regulations to provide aid to students affected by Corinthian’s predatory practices.   

In April, Attorney General Harris and eight other state Attorneys General also sent a letter to the U.S. Department of Education urging immediate debt relief for the students who attended Heald College and other CCI campuses. 

Attorney General Harris filed a complaint in 2013 alleging that CCI misrepresented job placement rates and school programs and intentionally targeted low-income, vulnerable Californians through persistent internet, telemarketing and television ad campaigns. In addition, the complaint alleges that Corinthian executives knowingly misrepresented job placement rates to investors and accrediting agencies, harming students, investors and taxpayers.

Students can access the interactive tool here: http://oag.ca.gov/corinthiantool

SAN FRANCISCO –  Attorney General Kamala D. Harris released the following statement today, following the U.S. Department of Education’s announcement that many more Corinthian Colleges, Inc. students will now be eligible for student loan relief.  Corinthian Colleges, Inc. (CCI) recently closed its remaining campuses in California.

“Corinthian profited by preying on the educational dreams of vulnerable people and then left them under a mountain of debt,” said Attorney General Harris. “I applaud the Department of Education for answering our call to relieve students from this crippling debt Corinthian imposed upon them through its lies and deception. This action has the potential to give students new hope and the opportunity to achieve their educational goals and rebuild their lives.”

Attorney General Harris filed a complaint in 2013 alleging that CCI misrepresented job placement rates and school programs and intentionally targeted low-income, vulnerable Californians through persistent internet, telemarketing and television ad campaigns. In addition, the complaint alleges that Corinthian executives knowingly misrepresented job placement rates to investors and accrediting agencies, harming students, investors and taxpayers.

In April, Attorney General Harris and eight other state Attorneys General sent a letter to the U.S. Department of Education urging immediate debt relief for the students who attended Heald College and other CCI campuses. View the letter here: https://oag.ca.gov/sites/all/files/agweb/pdfs/letter-asg-arne-duncan-04-09-2015.pdf. 

LOS ANGELES–Attorney General Kamala D. Harris issued the following statement on the announcement by Corinthian College, Inc. (CCI) that it will close all of its California campuses.

"Corinthian continued to deceive its students to the end.  Closure of these campuses should help students get out from under the mountains of debt Corinthian imposed upon them through its lies.  Federal and state regulators rightly acted to prevent taxpayer dollars from flowing to Corinthian, which preyed on the educational dreams of vulnerable people such as low-income individuals, single mothers and veterans by misleading students and investors about job placement rates and course offerings.  My office will work closely with our state and federal partners to ensure that students get the relief they deserve, providing them with a new path to achieve their educational goals and rebuild their lives.”

Current students attending Corinthian’s WyoTech, Everest or Heald College campuses can visit www.oag.ca.gov/Corinthian to find information on eligibility for debt relief, available resources and the closure status of a specific campus.

Students are also encouraged to utilize an interactive tool created to help current and former Corinthian students learn more about their rights and how to protect them. Students will be prompted to answer a series of questions, which will result in a personalized resource sheet that can be downloaded or emailed for future reference. The personal resource sheet will provide students with information about types of relief they may be eligible for, as well as information on local organizations that can provide help and advice regarding their legal rights and educational options.

In 2013, Attorney General Harris filed a complaint alleging that CCI intentionally targeted low-income, vulnerable Californians through deceptive and false advertisements and aggressive marketing campaigns that misrepresented job placement rates and school programs. The complaint alleged that CCI deployed these advertisements through persistent internet, telemarketing and television ad campaigns. The complaint further alleged that Corinthian executives knowingly misrepresented job placement rates to investors and accrediting agencies, which harmed students, investors and taxpayers.

On April 9, 2015, Attorney General Harris and eight other state Attorneys General sent a letter to the Department of Education urging the federal government to immediately relieve the debt burden of thousands of students who attended Heald College and other Corinthian Colleges, Incorporated campuses. View the letter here: https://oag.ca.gov/sites/all/files/agweb/pdfs/letter-asg-arne-duncan-04-09-2015.pdf.

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

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

中文/Chino :  http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_c...?

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

También puede visitar el sitio web http://www.uscis.gov/avoidscams (Inglés) o http://www.uscis.gov/eviteestafas (En español) para aprender como reconocer y evitar las estafas de inmigración, y como encontrar servicios legales autorizados.