Consumer Financial Protection Bureau Has Sued the Operator of Zelle and Three of the Nation’s Largest Banks

Dec 20, 2024 | KLF Blog

CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo

On December 20, 2024, the Consumer Financial Protection Bureau (“CFPB”) announced that it has sued the operator of Zelle and three of the nation’s largest banks for failing to protect consumers from widespread fraud on America’s most widely available peer-to-peer payment network.

Early Warning Services, which operates Zelle, along with three of its owner banks—Bank of America, JPMorgan Chase, and Wells Fargo—rushed the network to market to compete against growing payment apps such as Venmo and CashApp, without implementing effective consumer safeguards.

Customers of the three banks named in the lawsuit have lost more than $870 million over the network’s seven-year existence due to these failures. The CFPB’s lawsuit describes how hundreds of thousands of consumers filed fraud complaints and were largely denied assistance, with some being told to contact the fraudsters directly to recover their money.

According to the CFPB, Bank of America, JPMorgan Chase, and Wells Fargo also allegedly failed to properly investigate complaints or provide consumers with legally required reimbursement for fraud and errors.

The CFPB is seeking to stop the alleged unlawful practices, secure redress and penalties, and obtain other relief.

For additional details, please CLICK HERE. 

Source: Consumerfinance.gov

CFPB Announces Major Actions to Protect Consumers From Illegal Credit Card Practices

Dec 18, 2024 | KLF Blog

CFPB Takes Action on Bait-and-Switch Credit Card Rewards Tactics

CFPB warns companies against illegal devaluation of rewards and other unlawful practices, highlights issues with retail credit cards, and launches a tool to help find cards with lower rates

The Consumer Financial Protection Bureau (“CFPB”) has announced major actions to protect consumers from illegal credit card practices and help people save money on interest and fees. In a circular to other law enforcement agencies, the CFPB warned that some credit card companies operating rewards programs may be breaking the law, including by illegally devaluing rewards points and airline miles. The CFPB also published new research finding that retail credit cards—which typically offer store-specific rewards and loyalty programs—charge significantly higher interest rates than traditional cards.

The CFPB further launched a new tool, Explore Credit Cards, to help consumers find the best credit card rates across both rewards cards and traditional cards. This first-of-its-kind tool enables consumers to compare more than 500 credit cards using unbiased, comprehensive data.

CFPB Moves to Stop Credit Card Rewards Program Schemes

The circular released by the CFPB addresses practices in credit card rewards programs, which companies increasingly use to encourage consumers to apply for and use specific cards. Since 2019, more than 90 percent of general-purpose credit card spending occurred on rewards cards. In today’s marketplace, credit card issuers often promise cash, points, and miles sign-up bonuses to consumers, as well as rewards for certain types of spending. Consumers have reported to the CFPB that these rewards can be difficult to redeem or are sometimes devalued by policy changes by partners.

The CFPB circular warns that companies may violate federal law when they:

  • Devalue earned rewards: Consumers make decisions on whether to open or use a credit card based on the value of card benefits and rewards conveyed by a company’s advertising and other communications. If the company later deflates the value of a customer’s accrued awards, this may be an unfair or deceptive practice resembling a bait-and-switch scheme.
  • Hide the conditions for earning or keeping rewards: Fine print disclaimers or vague terms buried in a contract may unlawfully conflict with prominent promotional language advertising the rewards consumers can earn. Companies may also illegally rely on fine print to cancel valuable rewards that consumers have already earned. If consumers’ receipt of rewards is revoked, canceled, or prevented based on buried or vague conditions, that may be an unfair or deceptive act or practice.
  • Fail to deliver promised benefits: Companies operating rewards programs are responsible for ensuring consumers can redeem the rewards they have earned, including coordinating with merchant partners and vendors. If system failures result in consumers losing points when attempting to redeem, this may be considered an unfair or deceptive practice.

Source: ConsumerFinance.gov

Dave & Buster’s Securities Investigation (PLAY)

Dec 11, 2024 | Investigations

Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of Dave & Buster’s Entertainment Inc. (“Dave & Buster’s”) (NASDAQ: PLAY).

INVESTORS OF DAVE & BUSTER’S STOCK WITH FINANCIAL LOSSES CAN CLICK HERE OR EMAIL [email protected] TO CONTACT KEHOE LAW FIRM, P.C. TO DISCUSS THE SECURITIES CLASS ACTION INVESTIGATION AND POTENTIAL LEGAL CLAIMS.

On December 10, 2024, Dave & Buster’s reported that “Chris Morris, the Company’s Chief Executive Officer (“CEO”), has tendered his resignation as CEO and Director to pursue other interests. The Board has been working with Heidrick & Struggles, a global executive search firm, for the last few months to assist in identifying the Company’s next permanent CEO and has already started meeting potential candidates.”

On this news, Dave & Buster’s stock dropped more than 14% intraday on December 11, 2024.

INVESTORS OF DAVE & BUSTER’S STOCK WITH FINANCIAL LOSSES ALSO CAN CONTACT JOHN KEHOE, ESQ., (215) 792-6676, EXT.801, [email protected], OR MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], TO LEARN MORE ABOUT THE DAVE & BUSTER’S SECURITIES CLASS ACTION INVESTIGATION AND POTENTIAL LEGAL CLAIMS.

Torrid Holdings Inc. Securities Investigation (CURV)

Dec 4, 2024 | Investigations

Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of Torrid Holdings Inc. (“Torrid” or “Torrid Holdings”) (NYSE: CURV). 

INVESTORS OF TORRID HOLDINGS STOCK STOCK WITH FINANCIAL LOSSES CAN CLICK HERE OR EMAIL [email protected] TO CONTACT KEHOE LAW FIRM, P.C. TO DISCUSS THE SECURITIES CLASS ACTION INVESTIGATION AND POTENTIAL LEGAL CLAIMS.

On December 3, 2024, Yahoo!Finance reported that “[w]omen’s plus-size apparel retailer Torrid Holdings . . . missed Wall Street’s revenue expectations in Q3 CY2024, with sales falling 4.2% year on year to $263.8 million. Next quarter’s revenue guidance of $262.5 million underwhelmed, coming in 9.3% below analysts’ estimates. Its GAAP loss of $0.01 per share was significantly below analysts’ consensus estimates.”

On this news, Torrid’s stock dropped more than 20%, and Torrid stock was down more than 30% during intraday trading on December 4, 2024. 

INVESTORS OF TORRID STOCK WITH FINANCIAL LOSSES ALSO CAN CONTACT JOHN KEHOE, ESQ., (215) 792-6676, EXT.801, [email protected], OR MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], TO LEARN MORE ABOUT THE TORRID SECURITIES CLASS ACTION INVESTIGATION AND POTENTIAL LEGAL CLAIMS. 

Syros Pharmaceuticals Securities Investigation (SYRS)

Nov 13, 2024 | Investigations

Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of Syros Pharmaceuticals, Inc. (“Syros” or the “Company”) (NASDAQ: SYRS).

INVESTORS OF SYROS PHARMACEUTICALS STOCK WITH FINANCIAL LOSSES CAN CLICK HERE OR EMAIL [email protected] TO CONTACT KEHOE LAW FIRM, P.C. TO DISCUSS THE SYROS SECURITIES CLASS ACTION INVESTIGATION AND POTENTIAL LEGAL CLAIMS.

After the market closed on November 12, 2024, Syros announced that “[o]n November 12, 2024, an event of default occurred under the Loan and Security Agreement dated February 12, 2020 . . . between Syros Pharmaceuticals, Inc. . . . and Oxford Finance LLC (the “Lender”), as a result of the failure of the Company’s SELECT-MDS-1 Phase 3 trial evaluating tamibarotene in combination with azacitidine in newly diagnosed higher-risk myelodysplastic syndrome patients with RARA gene overexpression to meet its primary endpoint of complete response rate.”

On this news, the stock price of Syros was down more than 86% during intraday trading on November 13, 2024. 

SYROS INVESTORS WITH FINANCIAL LOSSES ALSO CAN CONTACT MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, [email protected], [email protected], TO LEARN MORE ABOUT THE SYROS SECURITIES CLASS ACTION INVESTIGATION AND POTENTIAL LEGAL CLAIMS.