Consumer Protection

SAN FRANCISCO – California Attorney General Kamala D. Harris today issued a consumer alert on location services used by mobile applications (apps).

With a tap on your smartphone or tablet, you can get a list of nearby restaurants, directions to a friend’s home or a local weather forecast.  Location services on your device make a variety of convenient apps work. Location services take your geographic information from satellites (GPS), WiFi and cell-tower networks. What you may not realize is that some apps can access your location all the time, even when you’re not using them. Your location might be “always on.”  

Broadcasting your location can sometimes expose you and your family to risk of theft or physical harm. For instance, you may be unknowingly revealing your location if your phone is “geo-tagging” your photos. When you take a photo, the location where it was taken may be inserted into the image file, along with the date/time stamp. If you post the photo online, you are revealing your location at a point in time. Sharing a “selfie” without disabling geo-tagging can be dangerous,  especially for victims of stalking or domestic abuse.

How mobile location services work may be technical, but you do not have to be an engineer to have more control. By adjusting the settings on your mobile device, you can control location services to  protect your  privacy on today’s “always on” frontier.

Android Phones and Devices

• Go to Settings, then Location and uncheck the boxes. When an app asks for access to your location, you can chose to grant it or not.
• To disable geo-tagging of photos, open the camera and then click on the gear icon and set location to “No.” You may have to click the gear icon on several screen layers.
• You can also choose how accurate you want your location reporting to be, whether it is determined based on GPS plus WiFi and cellular networks or just one or the other. The higher degree of accuracy uses more of your battery, so protecting your privacy will protect your battery life too. 

iPhones and iPads (iOS 6 and later)

• Go to Settings, then Privacy, then Location Services. You can turn it off. Or you can choose which functions and apps to give access to your location.
• To disable geo-tagging of photos, deny location access to the camera, in Location Services.
• You may get notifications from apps asking to use your location in the background. For privacy, select “Don’t Allow.”

For more mobile privacy tips, including how to control location information on other mobile platforms, see the California Department of Justice’s information sheets Getting Smart About Smartphones: Tips for Consumers and Getting Smart About Smartphones: Tips for Parents. For tips on safe social networking, see Staying Private in Public: How to Limit Your Exposure on Social Network Sites. All are available online at www.oag.ca.gov/privacy/info-sheets. 

En Español

SAN FRANCISCO – Attorney General Kamala D. Harris today issued a consumer alert to Californians about possible scams targeting immigrants and their families. 

Under a new California law, Assembly Bill 60 (AB 60), California residents will be eligible to get a driver license regardless of their immigration status.  This law takes effect on January 1, 2015.  In preparation for AB 60, the Department of Motor Vehicles (DMV) has hired additional employees, held department-wide training, and is opening new, temporary offices to handle extra driver license appointments.

Individuals applying for a driver license under AB 60 must show satisfactory proof of identity, proof of California residency, and meet all other qualifications for getting a driver license, including passing a knowledge test, vision test, and behind-the-wheel driving test, which will be taken after getting a temporary driver permit.

When major changes to laws affecting immigrants are passed, con artists often emerge to prey on vulnerable consumers.  This consumer alert will give you tips on how to avoid and report driver license scams.

Do not pay anyone to complete your driver license application:

The Attorney General recommends that you complete your driver license application alone or with the help of trusted family or friends.  The process is simple and the DMV provides free resources to guide you.  You should not pay anyone to help you complete driver license documents!

Beginning January 1, 2015, it will be illegal for anyone to accept money solely for completing a driver license application for another person.  Be wary of anyone who says they have “connections” with the DMV.  They are likely lying; no one can speed up the process of getting a driver license for you! 

Driver license examinations are available in many languages and can be given orally by a DMV employee on request.  If you need an interpreter, call 1-800-777-0133 and indicate that foreign language assistance is needed.  Do not pay anyone who offers to translate documents for you;  the DMV offers free translation services!

The cost for completing the application for a Class C (most cars) or Class M (motorcycles and scooters) license is $33.  A driver license under AB 60 is the same price as other licenses.  Only pay this fee to the DMV directly; any payment to someone else is likely a scam.

HELPFUL RESOURCES:

To learn more about getting your driver license, visit http://apps.dmv.ca.gov/ab60/ (English) or https://apps.dmv.ca.gov/ab60/index_es.html (Español). 

For a list of accepted proofs of identify, visit https://apps.dmv.ca.gov/ab60/doc_req_matrix.pdf (English) or http://apps.dmv.ca.gov/ab60/docreqmatrix_span.pdf (Español). 

For a sample driver license application, visit: https://apps.dmv.ca.gov/teenweb/permit_btn1/dl44sample.pdf.  However, your application (Form DL 44) must be completed at the DMV. 

California Driver Handbooks and sample driver license examinations are available in English, Spanish, Arabic, Armenian, Chinese, Farsi, Korean, Punjabi, Russian Tagalog, and Vietnamese.  For a copy of the California Driver Handbook and sample driver license examinations in any of these languages, visit:  http://apps.dmv.ca.gov/ab60/#handbooks. 

To schedule a visit to the DMV, visit  https://www.dmv.ca.gov/foa/clear.do?goTo=officeVisit.

WHAT TO DO IF YOU ARE THE VICTIM OF A SCAM:

The California Department of Justice, in its role as the state’s enforcer of consumer protection, collects complaints on scams in order to detect patterns of wrongdoing. By submitting a complaint, you are contributing to California’s ability to investigate and prosecute known offenders and stop scammers from victimizing others. To file a complaint with our office, use one of the following complaint forms:

English: 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_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 – Attorney General Kamala D. Harris today issued tips on how Californians can protect themselves from identity theft and make the most of their charitable giving on Giving Tuesday and throughout this holiday season.

Tips for safe shopping:

• Review your bank and credit card statements frequently for unusual and unfamiliar transactions.
• In the event of a security breach involving your credit card, monitor your account and contact your bank promptly if you see any suspicious transactions.
• If the security breach involves your debit card, the best way to protect yourself is to cancel the card immediately and get a replacement with a different number.
• Try to avoid making purchases in free Wi-Fi hotspots, such as a coffee shop, which can put your passwords and other information at risk.
• Shop on secure websites. One indicator of a secure website is the presence of a yellow padlock icon in the browser bar. Another indicator is ‘https’ in the web address.
• Never send sensitive personal or financial information, such as a social security or bank account number, through e-mail. Legitimate companies will not ask you to do so because it is not a secure way to transfer sensitive information.
• If you are receiving text messages on your cell phone saying you have won a prize or gift card, do not click on the link in the message – it is most likely a scam and may install a virus on your phone.
• Know the return policies of the retailers you shop with before you leave the store or conclude an online transaction. Many retailers will give you a refund if you have a receipt and your return is prompt, but some may only give store credit. Ask a clerk if the policy is not posted at the register.

Tips for donating wisely:

• The best way for many donors to select worthwhile charities is to work with a local charity as a volunteer. This helps provide first-hand knowledge about programs that benefit your community.
• Do your research before giving. Charities operating in California are required to register with the Attorney General’s Registry of Charitable Trusts.  You can review the charity’s purpose and financial records at www.oag.ca.gov/charities.
• Don’t assume that charity recommendations on Facebook, blogs, or other social media have been vetted. Research the charity yourself.
• If you are contacted by a solicitor on behalf of a charity, ask if he/she works for a commercial fundraiser and what percentage of donations goes directly to the charity. You may prefer to contact the charity directly to make a donation.
• Don’t fall for pressure tactics and ask questions before donating. You have the right to reject the appeal and if you feel pressured or threatened, just hang up.
• If you receive an email or text message asking for a donation to a charity, contact the charity directly and confirm that the request is legitimate.
• Make charitable contributions directly on a charity's website. If donating by check, use the full name of the charity rather than initials or an abbreviation. Do not give your credit card number to a telephone solicitor or in response to any unsolicited phone call you receive.
• Protect your identity.  Never give your social security number or other personal information in response to a charitable solicitation.  Never give out credit card information to an organization unfamiliar to you. Look at the charity’s privacy policy and learn who the charity might share your information with before you provide it.

Additional consumer tips, information, and lists of resources are available at:

• The California Attorney General’s consumer tips on identity theft and other privacy issues, https://oag.ca.gov/privacy/info-sheets
• The California Attorney General’s tips on making charitable donations, http://oag.ca.gov/donations
• www.ftc.gov, or toll free nationwide at (877) 382-4357
• www.give.org, for additional information about a specific charity

English: 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_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

Attorney General Kamala D. Harris today issued the following statement:

“This Veterans Day, the California Department of Justice honors the servicemembers, veterans, and families who have made tremendous sacrifices on behalf of our country and our state. Their courageous service will always be remembered by a grateful California and her people.”

California is home to more than 2 million veterans. The California Department of Justice is committed to providing these heroes and their families with the strongest possible consumer protections. These efforts include:

• Securing $20 billion in relief for California homeowners and foreclosure victims, including military families, which are especially vulnerable to mortgage fraud and abuse.

• Sponsoring the California Homeowner Bill of Rights, which required banks to notify servicemembers of their rights under the Servicemembers Civil Relief Act before initiating a foreclosure. Under the Act, active-duty homeowners are eligible for various mortgage-related protections, including a capped interest rate and possible deferment of payments.

• Establishing a working group to fight scams and other predatory conduct that uniquely targets servicemembers.

• Providing training on consumer protection law to Army, Navy, Air Force, Marine Corps, Coast Guard, and California National Guard JAG legal assistance attorneys and financial counselors at installations throughout California. 

• Prosecuting a for-profit college for allegedly targeting servicemembers through the unlawful use of official Army, Navy, Air Force, Marine Corps and Coast Guard seals in mailings and on websites.

• Prosecuting corrupt veterans’ charities for fiscal abuse, recovering millions of dollars in settlement fees.

Additional information on consumer protections for servicemembers and veterans is available at: http://oag.ca.gov/consumers/general/military.

SAN FRANCISCO – Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding a recent scam involving fake newspaper subscription mailings. Individuals throughout California have recently received deceptive mailings that claim to be bills, invoices or renewal notices for newspaper subscriptions. The mailings may appear to be legitimate renewal notices from a local newspaper, but they are most likely a scam and should be ignored and reported. Seniors should be especially wary, as they are frequently targeted by scams of this nature.

WHAT TO LOOK FOR:

The deceptive notices may contain the following information:

• The words “Notice of Renewal,” or “New Order”;
• A company name that has words such as “Publishers,” “Billing,” “Services,” “Payment,” or “Circulation” in its name;
• A official-looking “Control Number”;
• Statements encouraging consumers to lock in their “low rates”;
• Small print on the back of the invoices stating that they come from someone other than the publisher;
• A self-addressed, postage unpaid envelope bearing a Post Office box or other mailing address that is located in a different state than the publisher;
• The notices offer renewals and new subscriptions at highly inflated prices —in some cases nearly twice the actual renewal cost;
• Subscribers have reported receiving these deceptive notices outside their regular billing periods, and sometimes after they have already renewed their subscriptions.

WHAT TO DO:

• If you receive a suspicious subscription notice, do not pay it.  Consider canceling the order if you believe you may have already paid a suspicious renewal notice.
• If you have a question about whether your subscription is expiring or needs to be renewed you should contact your newspaper publisher directly. Contact information is generally available in your newspaper, and on the newspaper’s official web site. 
• Consumers who receive a deceptive renewal notice should file a complaint with their newspaper.  They can also file a complaint with the U.S. Postal Inspection Service at http://ehome.uspis.gov/fcsexternal/default.aspx and with the Federal Trade Commission at https://www.ftccomplaintassistant.gov/.
• California consumers can also file a complaint with the California Attorney General’s Office at: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company.  Be sure to attach a copy of the deceptive notice to your complaint.

LOS ANGELES – Attorney General Kamala D. Harris today announced a $28.4 million settlement with Aaron’s, Inc., the second largest rent-to-own business in the nation, to resolve allegations that the company violated California consumer protection and privacy laws.

“Aaron’s concealed its illegal privacy and business practices from customers in a deceptive attempt to avoid California’s robust consumer protection laws and increase its profits,” Attorney General Harris said. “This settlement provides millions of dollars in restitution to consumers and requires Aaron’s to make significant changes to its business practices.”

The settlement requires Aaron’s to refund $25 million to California customers who signed lease agreements between April 1, 2010 and March 31, 2014 and to pay $3.4 million in civil penalties and fees.

Approximately 100,000 California customers will be eligible for restitution.

The complaint alleges that Aaron’s violated California’s Karnette Rental-Purchase Act, which is the strongest rent-to-own law in the country, by charging improper late fees, overcharging customers who paid off contracts early, and omitting important contract disclosures.

In addition, the complaint alleges that Aaron’s violated California state privacy laws by permitting its franchised stores to install spyware on laptop computers rented to its customers. A feature in the spyware program called ‘Detective Mode’, which was installed without consumers’ consent or knowledge, allowed the Aaron’s franchisees to remotely monitor keystrokes, capture screenshots, track the physical location of consumers and even activate the rented computer’s webcam. The installation of this software without customer consent violated California law.

Aaron’s, which is headquartered in Atlanta, GA, rents household merchandise, including furniture, appliances and electronics for a monthly or semi-monthly fee. The company operates approximately 75 stores across California (http://www.aarons.com/storelocator.aspx).

According to a Federal Trade Commission report on the rent-to-own industry, nearly all rent-to-own customers have a household income below $50,000 and the vast majority have attained a high school education or less.

Customers who are eligible for restitution will receive notice at their last known mailing address. Customers who believe they are eligible for restitution can also proactively submit a claim by visiting www.rent-to-own-settlement.com or calling 877-449-8548.

It is expected that restitution notices and payments will be mailed in early 2015 and individual restitution payments will vary based on each consumer’s contract.

As part of a stipulated judgment filed this week in Los Angeles County Superior Court, Aaron’s has agreed to full compliance with the Karnette Act in all respects and is prohibited from using or installing spyware on rented computers.

The Los Angeles County Department of Consumer Affairs provided assistance with the investigation.

Tips for consumers regarding rent-to-own businesses:

• Know your rights. Under California law, you have many important protections if you enter into a rent-to-own agreement.  For example, you may be entitled to a reduction in the amount of your lease payment if you suffer a hardship like losing your job. For more information: http://www.dca.ca.gov/publications/legal_guides/s-10.shtml.

• Read your contract carefully before signing. Make sure you understand your obligations under the agreement, including the length of time specified in the contract, and not just the cost of your monthly lease payment.

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

San Francisco – Attorney General Kamala D. Harris, along with the U.S. Department of Justice and state partners, today announced a settlement with Bank of America to resolve federal and state civil claims related to Bank of America’s conduct in the packaging, securitization, marketing, sale, and issuance of residential mortgage-backed securities prior to January 1, 2009.

Nationally, the settlement totals $16.65 billion including cash and credit for consumer relief. California will recover $300 million in damages, which will reimburse the state’s pension funds, CalPERS and CalSTRS, for losses on investments in mortgage-backed securities of Bank of America and its affiliates. California is also guaranteed at least $500 million in consumer relief credits.

“Bank of America profited by misleading investors about the risky nature of the mortgage-backed securities it sold,” Attorney General Harris said. “This settlement makes our pension funds whole for the financial losses caused by these misrepresentations and brings help to hard-pressed homeowners and communities in California.”

Nationwide, the bank will pay a total of $9.65 billion in cash, and provide $7 billion in consumer relief credits.  The consumer relief includes loan forgiveness to lessen the burden on underwater homeowners and distressed borrowers, help to affected communities through donation of properties, financing of affordable rental housing, and support for housing counseling and legal aid.  The consumer relief to California includes at least $380 million of credit in first lien principal forgiveness.

As part of the settlement, Bank of America acknowledged it made serious misrepresentations to investors about the mortgage loans it securitized in residential mortgage-backed securities. The settlement does not absolve Bank of America or its employees from facing any possible criminal charges.

An investigation conducted by Attorney General Harris showed that the offering documents for the securities failed to accurately disclose the true characteristics of many of the underlying mortgages, and that due diligence to weed out poor quality loans had not been adequately performed.

The settlement with Bank of America arises from the investigation into mortgage-backed securities by Attorney General Harris’ Mortgage Fraud Strike Force, which was formed in May 2011 to comprehensively investigate misconduct in the mortgage industry. The Attorney General's additional efforts to investigate the mortgage crisis include securing an estimated $20 billion for California in the National Mortgage Settlement and sponsoring the California Homeowner Bill of Rights, a package of laws instituting permanent mortgage-related reforms.

In July 2014, Attorney General Harris announced a settlement with Citigroup Inc. of nearly $200 million over its misrepresentations in residential mortgage-backed securities sold to CalPERS and CalSTRS. In November of last year, a settlement with J.P. Morgan Chase & Co. recovered  $300 million for CalPERS and CalSTRS.

Bank of America customers can call 877.488.7814 for more information.

For more information on the U.S. DOJ settlement visit: http://www.justice.gov/