Consumer Protection

LOS ANGELES -- Attorney General Kamala D. Harris issued the following statement on today’s ruling by the Ninth Circuit upholding a key decision made by the Federal Energy Regulatory Commission (FERC) regarding California’s energy crisis:

“I am gratified that the Court upheld FERC's determination that large energy companies, such as Shell, manipulated California's energy markets during the 2000-2001 energy crisis, leading to blackouts and exorbitant prices for the customers of California's investor owned utilities.  The decision upholds the findings on which FERC has ordered the payment of more than $200 million in damages from sellers that have not settled.  My office will continue to pursue compensation from those who gamed the market and profited from the skyrocketing prices that resulted.”

More information is available here: https://oag.ca.gov/cfs/energy and here: https://oag.ca.gov/cfs/energy/money.

SAN DIEGO - Attorney General Kamala D. Harris today announced that California has reached a $252,000 settlement with two privatized military housing contractors over the companies’ unlawful evictions of 18 military servicemembers and their families from private military housing complexes in San Diego and Orange Counties. 

Attorney General Harris argued that these evictions violated the California Military and Veterans Code, the Servicemembers Civil Relief Act, and other state debt collection laws which protect servicemembers who are sued while serving on active military duty and are therefore unable to appear and defend themselves in court.  These laws prevent the entry of a default judgment unless a lawyer has been appointed to represent the interests of the absent servicemember, and they prohibit the use of false statements to collect a debt.  In addition, the contractors allegedly violated California privacy laws by filing court documents that included unredacted Social Security numbers, birth dates, or other personal information of nearly 100 servicemembers and military family members.

The defendants, Lincoln Military Property Management LP and San Diego Family Housing LLC and their eviction law firm, Kimball, Tirey & St. John LLP, are required to pay $200,000 in civil penalties, as well as provide $52,000 in debt relief for the servicemembers harmed by their conduct and assist victims with restoring and repairing credit history.  The settlement also requires the defendants to provide privacy protections to victims, including identity theft repair and mitigation services for one year following notification.  In addition, any default judgment evicting a servicemember and his or her family that was unlawfully obtained will be dismissed.

“It is unconscionable that companies would prey upon and illegally evict servicemembers and their families from their homes,” said Attorney General Harris. “This agreement holds these contractors accountable for their unlawful conduct – including illegal evictions and privacy violations – and ensures that veterans’ rights under the law are protected.  I want to thank the Navy Region Legal Service Office (RLSO) Southwest of San Diego for helping us secure justice for the servicemembers harmed by these companies.”

The complaint, filed today in San Diego Superior Court, alleges that Lincoln routinely evicted tenants from its private military housing complexes while failing to file affidavits that accurately reflected the military status of the servicemembers.  The defendants also violated California privacy laws by disclosing the personal information of servicemembers, exposing at least 100 victims to a risk of identity theft.  

The United States Department of Justice is filing a parallel complaint in the U.S. District Court for the Southern District of California alleging violations of federal law.

This is Attorney General Harris’s second action against a company that violated the Servicemembers Civil Relief Act.  The first was against JP Morgan Chase, which violated the Act in obtaining default judgments against servicemembers on credit card debt.  The Attorney General also obtained a $1.1 billion judgment against Corinthian Colleges, which illegally used the official seals of the military services in advertisements to entice servicemembers and veterans to enroll in its programs. 

The Attorney General’s office has provided training and technical support to JAG legal assistance attorneys at military installations throughout California.  The Attorney General has also issued multiple consumer alerts to help members of the military protect themselves from fraud and scams.  Her most recent alert for servicemembers and veterans, issued in honor of Memorial Day, provides tips on how to avoid common scams including rental scams, pension scams, predatory auto sales and financing, and education rip-offs.

A copy of the complaint is attached to the online version of this news release at www.oag.ca.gov/news.

LOS ANGELES - Attorney General Kamala D. Harris, along Attorneys General from 16 states and the District of Columbia today submitted official comments to the United States Department of Education, urging the Department to do more to create and implement fair, streamlined, and efficient processes to enable students harmed by predatory for-profit colleges to access student loan debt relief.  The Attorneys General also praised the significant strides already made by the Department of Education through its recently proposed borrower-defense regulations. 

“We must create rules that will prevent predatory for-profit schools from continuing to cheat and mislead our students and taxpayers,” said Attorney General Harris.  “Education goes hand-in-hand with the American Dream. With new and improved federal protections for students, both current and future students defrauded by for-profit companies will finally have a meaningful opportunity for federal student loan forgiveness and the chance to pursue a higher education.” 

Department regulations in place since 1995 allow borrowers to apply for discharge of federal student loans if their college violated state law in its conduct toward them, a right referred to as “defense to repayment.”  Until recent years, this right had been invoked only a handful of times. When Attorney General Harris and other law enforcement agencies exposed Corinthian Colleges, Inc. (“Corinthian”) for extensively falsifying its job-placement rates to potential and enrolled students, tens of thousands of students became eligible for full debt relief under this process.  Other for-profit institutions may have used similarly dishonest tactics in their dealings with students, so many more borrowers may need to utilize this defense in the future.

Existing regulations have proven inadequate for handling situations of extensive fraud like in the case of Corinthian.  The Department’s existing rules provide little guidance on who may be eligible, how they should apply, or how the Department will evaluate applications. 

On June 16, 2016, the Department published its new, proposed defense-to-repayment rules after a negotiated rulemaking session earlier in the year failed.  Attorney General Harris’ office, as the negotiator on behalf of attorneys general, advocated for a number of measures in the earlier sessions that have now been included in the Department’s proposed rules, including: (1) the creation of a group-discharge process that would allow the Department to grant automatic relief to wide swaths of students similarly wronged by a predatory school, like Corinthian; (2) limitations on schools’ use of binding pre-dispute arbitration agreements and class-action waivers, common devices that predatory schools employ to undermine the legal rights of students and prevent wrongdoing from coming to light; and (3) an expansion of the time frame during which defrauded students may seek full relief from the Department.  These hard-fought gains mark major steps forward in remedying the egregious mistreatment of students and holding predatory schools accountable to taxpayers, but more remains to be accomplished.

By submitting today’s comments, Attorney General Harris and the Attorneys General of Massachusetts, Illinois, Maryland, Kentucky, Connecticut,  Delaware, Hawaii, Maine, Minnesota, New Mexico, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, District of Columbia, and the State of Hawaii, Office of Consumer Protection now call on the Department to do more to protect students and taxpayers:

1. Under the Department’s proposed rules, there is no formal process for a state attorney general to invoke the defense-to-repayment process when he or she has evidence a group of students was abused by a school.  As chief law enforcement officers of their respective states, state attorneys general are uniquely positioned to investigate school misconduct and bring it to the Department’s attention.  The final rules should recognize this expertise by allowing state attorney general referrals. 
2. Under the current proposal, after establishing that his or her school violated the law, the student must then separately show that he or she is entitled to more than partial loan forgiveness.  This places an unfair and unnecessary burden on students.  The final rules should provide that once a student has demonstrated the kind of egregious conduct required to obtain debt relief in the first place, there should be a presumption that the student is entitled full relief—not the other way around.
3. The final rules should expand the categories of school misconduct that would give rise to a defense to repayment.  Absent a litigated judgment, the current proposal limits students’ ability to seek relief from the Department to situations in which the school has either breached a contract or engaged in “substantial misrepresentations.”  This ignores other categories of rampant school misconduct that violate state law and render a student’s education worthless.  This is an unwelcome retreat from the Department’s 1995 regulations, which recognize violations of state law as a basis for defense to repayment.
4. The Department’s proposed rules make significant strides toward eradicating mandatory pre-dispute arbitration provisions and class-action waivers in enrollment agreements.  But to give those measures the best chance of succeeding, the Department’s final rules should further clarify that schools cannot request at enrollment that students “opt out” of the bans on mandatory pre-dispute arbitration provisions and class-action waivers, and that the claims covered by these bans are broad.

The Department will publish final regulations by November 1, 2016.

In October 2013, Attorney General Kamala D. Harris led the charge against Corinthian Colleges, Inc. and its schools in California (Everest, Heald, and Wyotech colleges), seeking to put an end to abusive practices that left tens of thousands of students with useless degrees and tens of thousands of dollars in debt.

Attorney General Harris remains committed to protecting vulnerable students.  A copy of the letter is attached to the electronic version of this release at www.oag.ca.gov/news.

SACRAMENTO - Attorney General Kamala D. Harris today issued a consumer alert advising Californians to use care when playing location-based virtual games, such as the Pokémon Go treasure hunt app, just released this month.

Pokémon Go is an augmented reality application that generates a virtual treasure hunt taking place in the real world. Consumers of all ages, including minors, play it on their mobile devices. Using the forward-facing camera on a mobile device, players search for Pokémon characters in their vicinity, including at local parks, landmarks, and retail locations.

For Pokémon Go to work, a player must grant the app access or “permission” to his or her mobile device’s GPS function, location, and camera when downloading the app. To play and “capture” the virtual Pokémon creatures, the player must then go to physical locations, called “Pokéstops” or “gyms,” where other players may also be gathering.   

Consumers should be aware that the virtual experience in Pokémon Go can expose players to physical danger. For example, there have been reports of predators and thieves adding beacons or “Lure Modules” to Pokéstops to bait individuals playing the game to certain locations in order to steal from them. Recently in Southern California, two men were so distracted that they fell off a cliff while playing Pokémon Go, and another man playing the game alone late at night in a park in Anaheim was stabbed multiple times by a group of men when he was distracted.

The Attorney General offers consumers the following tips to help them better ensure their physical safety and protect sensitive location data while still having fun playing Pokémon Go:

• Stop and think before you share your personal information with an app.
• If you elect to download Pokémon Go and therefore allow the app access to the location function of your device, you should deactivate the app’s location access when you are not using it. This prevents Pokémon Go from “running in the background” and having access to your location when you are not playing.-On Android phones, review the permissions tab on app pages in Google Play store, which displays the information and features that the app can access on your phone.
  -On iPhones, review the permissions you have already granted by viewing Pokémon Go in iPhone Settings. Make sure you are operating the updated version of the app to protect the security of your mobile device and privacy of your data.
• Consumers and parents should take the time to review the privacy settings on their mobile devices and the permissions within the app.
• To prevent children from making in-app purchases – buying extra content and subscriptions once the app has been downloaded – parents can adjust the settings on their mobile device. For iPhones, turn off in-app purchases and for Android, set your phone to request a password before purchases can be made. For parents who do not want to create a Google account for their child, there is an option to create a Pokémon Trainer account. Parents also have the right to refuse collection, use, and/or disclosure of their child’s personal identifiable information by directly notifying the game’s developer, Niantic.
• As you search for characters, remember that Pokémon Go is a game you play in public, with the public. As you play, be aware of your surroundings and the people around you. If possible, only go to a Pokéstop with a friend or partner. 
• Parents and guardians should take extra care to know where children are going, when and with whom when they are playing the game.
• Pokémon Go characters and locations are randomly generated and some real locations may be dangerous or unsafe for players to enter. Stay alert and always watch where you’re going – being distracted by a phone in your hand could make you a target for a crime or susceptible to injury. 
• Don’t trespass onto private property and don’t go into areas that are unfamiliar or risky to your personal safety. 
• Business owners and local leaders can play a role in community safety by determining if their business, park or landmark is a Pokéstop or gym. 
• Don’t play Pokémon Go while you are operating a vehicle or riding a bike or skateboard.

The Attorney General has published a consumer information sheet that gives step-by-step instructions for better controlling your location privacy on iPhone and Android devices: Location, Location, Location Tips on Controlling Mobile Tracking

Also see Getting Smart About Smartphones: Tips for Consumers for general information on protecting privacy when using mobile devices.

SAN FRANCISCO – Attorney General Kamala D. Harris today issued a consumer alert to Californians regarding home improvement scams.  As summer approaches, many consumers may consider home remodeling, repair, and maintenance projects.  Unfortunately, not all contractors are legitimate and the unwary may fall victim to home improvement scams, which peak during the summer.  Consumers should be aware of their rights under California laws governing home improvement contracts.  This consumer alert provides some helpful tips for selecting reputable contractors, and provides an overview of homeowners’ rights in the event they encounter a home improvement scam.
                

WHAT TO LOOK OUT FOR

The Attorney General offers California consumers the following tips to help them select reputable contractors, and to understand their legal rights:

When selecting a contractor, be wary of unsolicited visits by contractors who claim to just “happen to be in the neighborhood” working on a nearby property or who promise large discounts because they have extra materials left over from other jobs.  Often, these contractors are not licensed, take large amounts of money upfront, and then fail to finish a job or do any work at all.

• Instead, seek out contractors recommended by trusted friends or family members.  It is wise to shop around, get at least three written quotes, and call all references.

• Once you have selected a contractor, check to make sure they are licensed.  You can find this information on the Contractors State License Board’s (CSLB) website or www.CheckTheLicenseFirst.com.   You can also check the Better Business Bureau’s (BBB) websitefor any complaints about the contractor.  A contractor’s license is required for all jobs except minor work totaling less than $500; this minor work cannot be part of a larger project.  (Bus. & Prof. Code section 7048.)

• If you feel pressured into signing a home improvement contract, California’s Home Solicitation Sales Act (Bus. & Prof. Code sections 1688 to 1693) allows you to cancel the contract within three days.  However, be aware that this law does not apply to contracts for emergency repairs or to contracts signed in the contractor’s place of business.

• Always insist on a written contract.  Under California law, all home improvement contracts over $500 must be in writing.  California also requires contract terms to be legible, easy to understand, and to inform you of the right to cancel the contract.  The contract must also require any change orders to be in writing and must include a warning regarding mechanic’s liens.  (Bus. & Prof. Code section 7159.)

• Make sure that the contractor carries the appropriate insurance.  Contractors should have personal liability, worker’s compensation (if they have employees), and property insurance.  Confirm that insurance is addressed in the contract and ask for copies of insurance certificates if you have any concerns.

• Make sure that the contract clearly states that the contractor is responsible for obtaining all necessary permits for the work and that the contractor will comply with all local permitting, building, and zoning laws.

• Never pay large amounts of money upfront.  In fact, California law generally prohibits contractors from requiring down payments of more than $1,000 or 10% of the total contract price, whichever is less.  (Bus. & Prof. Code section 7159.)  Don’t pay the full contract price until the job is complete and you are satisfied with the work.

• In the event that you have a dispute with your contractor, you have four years to file a complaint with the CSLB.  The CSLB administers two arbitration programs for claims against licensed contractors: a mandatory program for claims of $12,5000 or less, and a voluntary program for claims between $12,500 and $50,000.  More information about the complaint process can be found on CSLB’s website. 

HELPFUL RESOURCES

To learn more about home improvement scams in general, visit the Federal Trade Commission’s webpage on home improvement scams.

The BBB has also published an article with other helpful tips, “Scam Alert – This Home Improvement Deal is Really a Scam: Summer Contracting Scam Tricks Homeowners.”

WHAT TO DO IF YOU HAVE A PROBLEM WITH A HOME IMPROVEMENT CONTRACTOR
 

If you are unable to resolve a dispute with a home improvement contractor, CSLB provides information on how to file a consumer complaint and its arbitration program:

The Better Business Bureau (BBB) also provides information on how to file consumer complaints about a particular company..

Finally, 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 home improvement scam, please use one of the following complaint forms:

English: Consumer Complaint Against a Business or Company (English).  

En Español: Consumer Complaint Against a Business or Company (Spanish)

中文: Consumer Complaint Against a Business or Company (Chinese) 

Tiếng Việt: Consumer Complaint Against a Business or Company (Vietnamese)

Six Defendants Indicted on 135 Felony Counts For Scam That Cost Vulnerable Homeowners $4 Million

SAN DIEGO – Attorney General Kamala D. Harris announced that six individuals were indicted and arrested on 135 felony charges for operating a mortgage fraud scheme throughout Southern California and the Inland Empire, preying on homeowners facing foreclosure.  The case is being prosecuted by attorneys in the Attorney General’s Mortgage Fraud Strike Force, created by Harris in 2011 to prosecute mortgage fraud at every step of the process.

Jacob Orona, Aide Orona, John Contreras, Prakashumar ("Kash") Bhakta, Marcus Robinson, and David Boyd were indicted by a grand jury on 135 felony charges, including conspiracy, grand theft, filing false or forged documents, and identity theft.  All six defendants were arrested last week and one defendant, Marcus Robinson, was arraigned yesterday, Monday, July 11, in San Diego Superior Court.

"I created the Mortgage Fraud Task Force in 2011 to ensure that we tirelessly protect Californians struggling to stay in their homes from those who would prey upon them for profit.  This indictment is result of a joint effort to remain vigilant in the investigation and prosecution of those who attempt to defraud homeowners through the mortgage process," said Attorney General Harris. "I thank our Mortgage Fraud Strike Force and California Department of Justice Special Agents, as well as our local, state, and federal law enforcement partners, for their efforts on this case."

The scam artists promised homeowners who were underwater on their mortgages that they could provide legal remedies to avoid foreclosure, convincing homeowners to stop making mortgage payments and instead pay them $3,500 to start with an “administrative process,” plus $1,000 every month and separate amounts to allegedly file legal documents.  The defendants filed bogus petitions and court pleadings and recorded false deeds in county recorders’ offices, causing over $4 million in loses while failing to halt any foreclosures.  The fraud stretched through San Diego, Riverside, San Bernardino, and Los Angeles counties.

The indictment was delivered following a two-week special statewide grand jury convened in San Diego County.  If convicted, Jacob and Aide Orona face over 90 years in prison; Contreras and Prakashkumar face over 70 years in prison; Robinson faces over 28 years in prison, and Boyd faces over 18 years in prison.

The arrests and arraignments are the culmination of a joint investigation by the Federal Housing Finance Agency Office of the Inspector General (FHFAOIG), the Attorney General’s Financial Fraud and Special Prosecutions Section (FFSPS), the California Department of Justice Bureau of Investigation, and the Stanislaus County District Attorney’s Office, Real Estate Fraud Unit.

Attorney General Harris created the Mortgage Fraud Strike Force within the California Department of Justice in May 2011.  Composed of both civil and criminal enforcement teams, the Mortgage Fraud Strike Force monitors and prosecutes violations at every step of the mortgage process, from the origination of mortgage loans to the marketing of mortgage-backed securities to the investing public. 

Attorney General Harris has long been dedicated to prosecuting mortgage fraud.  She secured approximately $20 billion for California in the National Mortgage Settlement and sponsored the California Homeowner Bill of Rights, a package of laws instituting permanent mortgage-related reforms.  In 2009, as District Attorney of San Francisco, she launched the first stand-alone district attorney’s mortgage fraud unit in California.

Civil Penalties and Significant Injunctive Terms Follow the $1.18 Billion Secured for California in Initial Landmark Settlement with Volkswagen

SAN FRANCISCO - Attorney General Kamala D. Harris today announced that, in addition to the historic $14.7 billion settlement with Volkswagen announced last week, the company will also pay California an additional $86 million in civil penalties as part of a second partial settlement over the company’s use of “defeat devices” to evade emissions testing in its diesel vehicles. 

The agreement, which is subject to court approval, represents the largest amount of money recovered by the state of California from an automaker and resolves certain aspects of the California Attorney General’s claims against Volkswagen under California’s Unfair Competition Law as well as the Dodd-Frank Consumer Financial Protection Act of 2010.  Volkswagen will also agree to significant injunctive terms to deter future misconduct, including a new requirement that Volkswagen contractors and employees report to the California Attorney General’s office any request for or use of “defeat devices.”  

Of the $86 million in penalties, the Attorney General will direct $10 million in grants to local government agencies or academic institutions to research and develop technology to detect “defeat devices” and better assess on-road emissions, as well as to monitor, model, and mitigate the environmental and public health impacts of vehicle emissions, especially on children and other vulnerable populations.

“We must conserve and protect our environment for future generations and deliver swift and certain consequences to those who break the law and pollute our air.  Volkswagen tricked consumers seeking to purchase an eco-friendly car by misleading the public about the level of harmful pollutants their so-called ‘clean diesel’ vehicles were emitting,” said Attorney General Harris.  “This additional settlement sends an unequivocal message to Volkswagen and any other automaker that California will aggressively enforce our robust consumer and environmental protection laws.” 

Today’s announcement follows last Tuesday’s joint announcement by California Attorney General Kamala Harris and California Air Resources Board Chair Mary Nichols that California, alongside the U.S. Environmental Protection Agency and U.S. Department of Justice, had negotiated a landmark $14.7 billion settlement with Volkswagen over the software it installed in its diesel cars to trick emissions testing while actually emitting up to 40 times the level of harmful nitrogen oxides allowed under state and federal law. 

As part of that $14.7 billion agreement, Volkswagen agreed to spend an estimated $10 billion to compensate consumers and buy back or modify hundreds of thousands of its polluting cars, pay $2.7 billion into a trust fund for environmental mitigation projects, and spend $2 billion over 10 years on zero-emission technology.  Of the $4.7 billion in mitigation funding and investments, $1.18 billion will come to California ($800 million in zero-emissions technology investments and $380 million for environmental mitigation projects in the state).

The partial settlement announced today relates to Volkswagen’s 2.0 and 3.0 liter vehicles that deployed “defeat devices” to deceive regulators and consumers about levels of harmful emissions.  An estimated 86,000 2.0 and 3.0 liter vehicles were sold or leased in California between 2009 and 2015.  Today’s settlement preserves California’s potential criminal claims and claims for additional civil penalties and injunctive relief under state environmental laws, as well as the Attorney General’s claims for consumer relief and environmental mitigation related to the 3.0 liter vehicles.

In addition to the $86 million in civil penalties, Volkswagen agrees to strict injunctive terms as part of the settlement, including:

• Prohibitions on false and deceptive advertising
• Affirmatively disclosing defeat devices in certification applications and other submissions to the California Air Resources Board (CARB)
• Notifying the California Attorney General’s office and CARB of whistleblower and other complaints
• Requiring Volkswagen contractors and employees who are designing engine control units or engine control software to report to the California Attorney General’s office and to CARB any request for or use of defeat devices, and to keep accurate records of software features and changes that could be used as defeat devices
• Provide the California Attorney General’s office with reports of any violations, along with periodic reports regarding its efforts to implement the injunction and effectiveness of those efforts

The consent decree was filed today in U.S. District Court, Northern District of California and is attached to the online version of this news release at www.oag.ca.gov/news.

LOS ANGELES – Attorney General Kamala D. Harris today issued a consumer alert urging Californians to make informed decisions and protect themselves from rental and moving scams.  Summer is a popular time for traveling, vacations, and moves to new houses and apartments. Unfortunately, scammers are also aware of these summertime transitions and scams peak during this time of year as families move to new homes and students move in and out of new housing arrangements.

The Attorney General encourages consumers to be vigilant and ensure that rental listings are legitimate before leasing a rental property.  Scam artists often advertise properties at incredibly low prices to lure unsuspecting renters.  Once hooked, the consumer may learn that the rental property address is fictitious, the property is unavailable because it is owned by other people, or that the property is for sale or in foreclosure proceedings.  Consumers should be wary of high-pressure tactics, especially when scammers urge them to wire money without viewing the property, reviewing the rental agreement, or meeting the prospective landlord.  The Attorney General encourages consumers to fully research rental listings by visiting the premises and reviewing all the terms in a lease agreement before exchanging money to reserve a rental property.          

WHAT TO LOOK OUT FOR

The Attorney General offers California consumers the following tips when renting properties and using moving companies:

• Be wary of circumstances in which a potential landlord requests an immediate wire transfer to reserve a rental property.  Wiring money is like sending cash and once money is wired it likely cannot be recovered.  When making a payment for a rental property, use a credit card or check.  These forms of payment may provide some protections for victims of a rental scam   and may enable the authorities to track down the scam artist.

• Allow plenty of time to research and make an informed decision to rent a property.  Be wary of sending a rushed payment to a listing agent or individual in order to secure a home or rental that has not yet been viewed.

• Ensure that the advertised rental property is actually for rent and (if at all possible) visit the property to confirm that the information in the rental advertisement is accurate before sending any money.   

• Obtain and review the rental agreement before sending money to a landlord or property manager.  Make sure to fully understand how rent should be paid and how repairs should be handled.

• Be cautious of moving companies that provide a low initial price quote.  Sometimes companies that give a low initial quote will refuse to complete delivery of all items until a larger sum of money is paid. 

• If a moving company will be used, check the company’s references and ask for referrals.  Be sure that the moving company has been registered with the Federal Motor Carrier Safety Administration (“FMCSA”) for interstate moves or with the California Public Utilities Commission (“CPUC”) for intrastate moves.  Also make sure that the company has appropriate insurance.  Inquire about the moving company’s liability for any damage that may occur to your property during the course of the move.

• Be wary of moving companies that require an agreement to an estimate of costs without or before an onsite inspection of the items to be moved.  Also be cautious of moving companies that do not provide written estimates.  Additionally, do not pay a moving company before it finishes delivering all belongings.

• For interstate moves, federal regulations require moving companies to provide customers with the booklet, Your Rights and Responsibilities When You Move, as well as the FMCSA’s Ready to Move? brochure.  Meanwhile, for intrastate moves, the CPUC requires that the booklet entitled Important Information For Persons Moving Household Goods (within California) be provided to consumers.

• If a moving company demands a sum of money that exceeds the agreed upon amount that is due before completing delivery of belongings, take the following steps: 1) send a written complaint to the moving company in order to document the situation; 2) contact your local law enforcement authority; and 3) contact and file a complaint with the FMCSA (for interstate moves) or the CPUC (for intrastate moves).          

HELPFUL RESOURCES

The Department of Consumer Affairs has provided a useful guide for renters entitled California Tenants: A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities.

The California Bureau of Real Estate provides information to consumers regarding renting properties.

The CPUC regulates moving companies that move goods within California and provides information about licensed moving companies.  The CPUC also offers information about hiring a moving company.

The CPUC’s booklet provides guidelines on the use of moving companies. 

The U.S. Department of Transportation provides information on the rights and responsibilities of both consumers and movers in a booklet entitled Your Rights and Responsibilities When You Move.

FMCSA’s regulations are designed to protect the interests of consumers.  FMCSA’s website has information (including links to applicable federal regulations) regarding the use of moving companies.  Additionally, the FMCSA’s Ready to Move? brochure also has helpful information.   

WHAT TO DO IF YOU ARE THE VICTIM OF A RENTAL OR MOVING SCAM

The FMCSA investigates moving complaints and may provide recourse for consumers who have been victimized.  If you are the victim of a moving scam, please contact the FMCSA.

The California Public Utilities Commission also regulates privately owned transportation companies and handles consumer complaints regarding moving scams.

California district attorneys are available to assist with circumstances in which consumers are victimized by moving companies that are engaged in criminal conduct.  If you are taken advantage of by such a moving company, you may locate and contact your local district attorney.

The California Department of Justice protects the rights of consumers and collects complaints on rental and moving scams to identify patterns of wrongful activity.  To submit a complaint to the California Department of Justice regarding a rental or moving 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 - Attorney General Kamala D. Harris and the California Air Resources Board (CARB) today announced a landmark $14.7 billion national settlement with Volkswagen over allegations that the company violated environmental and consumer protection laws by installing “defeat device” software to bypass emissions controls in its 2.0 liter diesel vehicles.

As part of the national agreement, which is subject to approval by the court, Volkswagen will spend approximately $10 billion to buy back or modify these vehicles, as well as pay $2.7 billion into a trust to support environmental programs and reduce emissions and an additional $2 billion on investments and promotion of zero emissions vehicles.  The agreement preserves the Attorney General’s and CARB’s claims for civil penalties and prospective injunctive relief, as well as their claims related to 3.0 liter diesel vehicles.

In addition to providing consumer relief funding, California will receive $1.18 billion, representing more than one-quarter of the funding VW must provide for environmental projects in states injured by the company's conduct and investments it must make in zero emission technology.

“Our state and national environmental protection laws exist to protect public health and to preserve our planet for future generations.  Volkswagen undermined these objectives by deceiving California consumers and flagrantly violating California environmental and consumer protection laws by manipulating its diesel vehicles to produce false results when undergoing emissions testing,” said Attorney General Kamala Harris. “This landmark agreement not only ensures that consumers who were deceived are fairly compensated, but also requires Volkswagen to make unprecedented investments in protecting our environment and advancing zero emission technology.”

As part of the agreement, VW will offer compensation to those who own or lease a VW or Audi 2.0 liter vehicle as of September 18, 2015.  Owners have the option of having Volkswagen buy back their vehicle or, if approved by CARB and EPA, having VW modify their vehicle to reduce its emissions.  Owners who opt for a buyback or modification will also receive an additional cash payment of at least $5,100.  Some owners may receive as much as $10,000.

In addition to consumer relief and getting polluting cars off the road via the buyback and modification program, which is anticipated to cost Volkswagen over $10 billion, Volkswagen is also required to pay $2.7 billion into a trust to support environmental programs throughout the country to reduce emissions. CARB will receive and direct 14.12%, $380 million, of these trust funds to fund environmental mitigation projects in California.  Volkswagen is also required to buy back, modify, or scrap at least 85% of the subject vehicles nationally and in California, and it is required to pay for additional mitigation projects if it falls short of that requirement.   

Volkswagen must also spend $2 billion over a 10-year period to promote zero emissions vehicles through educational information, research and development, and infrastructure development (such as building charging stations), to further mitigate emissions and help right the market that was manipulated by the false emissions results in Volkswagen diesel vehicles.  Forty percent, or $800 million, of these investments will be made in California, pursuant to investment plans that will be subject to approval by CARB.

“This is a good deal for California’s environment and for California consumers. It will bring over a billion dollars of projects to California to supercharge our expanding zero-emission vehicle market, and fully mitigate the environmental harm to our air as a result of VW’s cheating,” said CARB Chair Mary D. Nichols. “The Consent Decree also recognizes the crucial contribution the dogged engineers in CARB’s testing lab played in exposing the illegal device in the first place – and the exceptionally costly and difficult challenges we face in our fight for cleaner air in a state where tens of millions breathe the most heavily polluted air in the nation.”

Volkswagen programmed software in its diesel cars to achieve lower emissions while undergoing testing, but in normal driving conditions, their cars were emitting up to 40 times more harmful nitrogen oxides than allowed by state and federal law. 

The parties settling claims against Volkswagen in this major agreement include the California Attorney General’s Office, CARB, the U.S. Department of Justice, and the U.S. Environmental Protection Agency (EPA).

California is uniquely affected, not only because of our robust environmental protection laws and CARB’s unique enforcement and regulatory role, but also because our state has the largest number of affected consumers.

In conjunction with the consent decree, the California Attorney General’s office filed a joint complaint with CARB in the Northern District of California this morning.  The complaint is attached to the online version of this news release at www.oag.ca.gov/news.

The agreement is subject to approval by the court following a public comment period.

The agreement is specific to 2.0 liter vehicles and does not include Volkswagen and Audi 3.0 liter vehicles that are alleged to have similar defeat devices installed.  It also preserves the ability of the Attorney General, CARB, and the EPA to seek civil penalties and further injunctive relief.

LOS ANGELES – Attorney General Kamala D. Harris today sent a letter to the United States Department of Education, urging the Department to revoke federal recognition of the Accrediting Council for Independent Colleges and Schools’ (ACICS).  ACICS is a major accreditor of for-profit schools and was the accreditor for the now defunct Corinthian Colleges, Inc. (“Corinthian”).  While accredited by ACICS, Corinthian intentionally targeted low-income, vulnerable Californians through deceptive and false advertisements and aggressive marketing campaigns that misrepresented job placement rates and school programs.

“The predatory scheme devised by executives at Corinthian Colleges, Inc. was unconscionable. And despite enforcement actions by the California Department of Justice and the federal government against Corinthian, ACICS continued to accredit Corinthian, hurting thousands of students in the process,” said Attorney General Harris. “Students relied on Corinthian’s accreditation status, believing they were obtaining a high quality-education with real job prospects. The Department of Education should not renew ACICS’ federal recognition and protect students from harm by predatory, for-profit colleges.”

In issuing this letter, Attorney General Harris supports the 13 other state Attorneys General who voiced their concerns over the renewal of ACICS as an accreditation agency.  These Attorneys General noted their opposition in a letter that included a discussion of ACICS-related issues and concerns in their respective states, also noting the failure of ACICS to take appropriate action in response to public enforcement actions by states and federal agencies.

Today’s letter is Attorney General Harris’ latest effort to protect vulnerable students from fraud and predatory practices by dishonest institutions.  Yesterday, Attorney General Harris, 10 other Attorneys General, and the State of Hawaii, Office of Consumer Protection sent a letter to the Senate Armed Services Committee opposing an amendment that would weaken existing protections and would instead allow any college approved for military tuition benefits to have unrestricted access to recruit on military bases.  In March 2016, Attorney General Harris obtained a $1.1 billion judgment against Corinthian as a result of their predatory and unlawful practices that left tens of thousands of students with large amounts of debt and useless degrees. 

In February 2016, Attorney General Harris and 7 other Attorneys General sent a letter to the Secretary of Veterans Affairs urging greater protections for veterans affected by predatory school practices.  Also in February 2016, Attorney General released a statement and in March 2016 joined 8 other Attorneys General in a letter urging the Department of Education to adopt stronger regulations, including in “borrower defense to repayment,” to protect students misled by Corinthian and other predatory for-profit colleges.  In April 2015, Attorney General Harris and 8 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 Corinthian Colleges, Inc. campuses.

In October 2013, Attorney General Kamala D. Harris led the charge against Corinthian Colleges, Inc. and its schools in California (Everest, Heald, and Wyotech colleges), seeking to put an end to abusive practices that left tens of thousands of students with useless degrees and tens of thousands of dollars in debt.

Attorney General Harris remains committed to protecting vulnerable students.  A copy of the letter is attached to the electronic version of this release at www.oag.ca.gov/news.