Payday Borrowers Continue to Pay Rollover Fees Despite Protections

Apr 6, 2022 | Blog

Research Suggests Deceptive Industry Practices Drive Cycles of Costly Reborrowing

A report published by the Consumer Financial Protection Bureau (“CFPB”) shows few payday loan borrowers are benefiting from no-cost extended payment plans, which are required to be offered to borrowers in the majority of states that do not prohibit payday lending.

Instead of using the payment plans, borrowers continue to pay for costly loan rollovers. While no-cost extended payment plans are meant to help borrowers exit the cycle of rollovers and fees, the payday business model continues to depend on high rollover rates and fees.

Rollover fees are a strong incentive for lenders to keep borrowers in the dark about no-cost extended payment plans. The CFPB’s supervision of the industry has found some payday lenders have deceived struggling borrowers by misrepresenting or withholding information about their payment options.

CFPB Finds Payday Borrowers Continue to Pay Significant Rollover Fees Despite State-Level Protections and Payment Plans. Research suggests deceptive industry practices drive cycles of costly reborrowing.

CFPB Report Found Substantial Differences Among the 16 States that Require Lenders to Offer No-cost Payment Options, as Follows:
  • State no-cost extended payment plans vary substantially. Typical features include disclosure of the right to elect an extended payment plan at the time borrowers enter into a payday loan agreement, the requirement that an extended payment plan be repaid in several installments, and that there be no additional fees charged for an extended payment plan.
  • Usage rates for extended no-cost extended payment plans are low in all states. Even in Washington state, which has perhaps the most borrower-friendly extended payment plan, the usage rate is a small fraction of all payday borrowers, 13.4%. States, such as Florida, with more restrictive requirements, have even lower usage rates.
  • The pandemic has affected payday loan volumes, but not no-cost extended payment plan usage. Nationally, payday loan volume declined in 2020 from 2019 by as much as 65%, while payment plan usage rates remained unchanged. However, there was variation within states. California, for example, saw payment plan enrollment more than double.

CLICK HERE to read “Market Snapshot: Consumer use of State payday loan extended payment plans.” 

CLICK HERE to read “What can I do if I can’t repay my payday loan?”

Source: Consumerfinance.gov

Cash App Data Breach Affects Approximately 8.2 Million Customers

Apr 6, 2022 | Blog, Data Breach

Block, Inc. Discloses Data Breach of Cash App Investing Affecting Approximately 8.2 Million Current and Former Cash App Customers

On April 4, 2022, Block, Inc. (NYSE: SQ) (“Block” or “Company”) “. . . announced that it recently determined that a former employee downloaded certain reports of its subsidiary Cash App Investing LLC (“Cash App Investing”) on December 10, 2021 that contained some U.S. customer information.”

Block, Inc. Discloses Cash App Data Breach Affecting Approximately 8.2 Million Current and Former Customers

According to Block, “[t]he information in the reports included full name and brokerage account number (this is the unique identification number associated with a customer’s stock activity on Cash App Investing), and for some customers also included brokerage portfolio value, brokerage portfolio holdings and/or stock trading activity for one trading day.”

The Cash App reports, according to Block, “. . . did not include usernames or passwords, Social Security numbers, date of birth, payment card information, addresses, bank account information, or any other personally identifiable information. They also did not include any security code, access code, or password used to access Cash App accounts. Other Cash App products and features (other than stock activity) and customers outside of the United States were not impacted.”

Block reported that “Cash App Investing is contacting approximately 8.2 million current and former customers to provide them with information about this incident and sharing resources with them to answer their questions.” [Emphasis added.]

Have You Been Harmed As A Result Of A Data Breach Which Has Exposed Your Private Personal, Protected Health Or Personally Identifiable Information?

If you have experienced actual or attempted harm or been the victim of fraud due to the illegal or unauthorized exposure of your private personal, protected health or personally identifiable information, please contact Kehoe Law Firm, P.C., [email protected], for a free, confidential consultation and no-obligation evaluation of potential legal claims. 

 

Chrysler Pacifica Electric Vehicles – Explosions, Fires Focus of Lawsuit

Apr 5, 2022 | Blog, Car Problems Car Complaints

Chrysler Pacifica Plug-In Hybrid Elecric Vehicles (2017-2018) – FCA US, LLC’s Alleged Failure to Disclose a Defect Causing Certain Plug-in Hybrid Electric Vehicles to Explode and Catch Fire Focus of Class Action. 

On March 21, 2022, a class action lawsuit was filed against FCA US, LLC, as a result of FCA US, LLC’s alleged failure to disclose a uniform and widespread defect causing its 2017 to 2018 Chrysler Pacifica Plug-in Hybrid Electric Vehicles to explode and catch fire.

FCA US, LLC has, according to the complaint, asked owners of 2017 to 2018 Chrysler Pacifica Plug-In Hybrid Electric Vehicles to abstain from plugging in their minivans and parking near buildings and other cars after its internal investigation uncovering 12 fires among the Chrysler Pacifica minivans.

Are there any recalls on the Chrysler Pacifica?

The Chrysler Pacifica Hybrid (2017-2018) vehicles were subject to a recall in February 2022.

According to the recall, a vehicle fire can occur when parked, even with the ignition in the “Off” position. The recall notice advised owners not to recharge their vehicles, and to park outside and away from structures, until they are repaired. The recall notice stated that letters notifying owners of the safety risk were mailed on February 25, 2022, and second letters will be mailed once the remedy is available.

VEHICLE OWNERS AND LESSEES AFFECTED BY AUTOMOTIVE DEFECTS OR SAFETY RECALLS ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C., [email protected], FOR A FREE, CONFIDENTIAL CONSULTATION AND NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS. 

Know the Common Signs of a Scam to Avoid Becoming a Fraud Victim

Apr 5, 2022 | New Blog

How to Avoid a Scam – If you recognize some common signs of a scam, you are in a better position to avoid becoming a victim of fraud. 

Some Common Signs of a Scam

Scammers “pretend” to be from an organization you know.

Scammers often pretend to be contacting you on behalf of the government. They might use a real name, like the Social Security Administration, the IRS, or Medicare, or make up a name that sounds official. Some pretend to be from a business you know, like a utility company, a tech company, or even a charity asking for donations.

They use technology to change the phone number that appears on your caller ID. So the name and number you see might not be real.

Scammers say there is a “problem” or a “prize.”

They might say you’re in trouble with the government, you owe money, someone in your family had an emergency, or that there’s a virus on your computer.

Some scammers say there’s a problem with one of your accounts and that you need to verify some information.

Others will lie and say you won money in a lottery or sweepstakes but have to pay a fee to get it.

Scammers “pressure” you to act immediately.

Scammers want you to act before you have time to think. If you’re on the phone, they might tell you not to hang up so you cannot check out their story.

They might threaten to arrest you, sue you, take away your driver’s or business license, or deport you. They might also say your computer is about to be corrupted.

Scammers tell you to “pay” in a specific way.

Scammers often insist that you pay by sending money through a money transfer company or by putting money on a gift card and then giving them the number on the back.

Some will send you a check (that will later turn out to be fake), tell you to deposit it, and then send them money.

What You Can Do to Avoid a Scam

Block unwanted calls and text messages. Take steps to block unwanted calls and to filter unwanted text messages.

Don’t give your personal or financial information in response to a request that you were not expecting. Legitimate organizations will not call, email, or text to ask for your personal information, like your Social Security, bank account, or credit card numbers.

If you get an email or text message from a company with which you do business and you think it’s real, it is still best not to click on any links. Instead, contact the company using a trustworthy website or look up the company’s phone number. Do not call a number they gave you or the number from your caller ID.

Resist the pressure to act immediately. Legitimate businesses will give you time to make a decision. Anyone who pressures you to pay or give them your personal information is a scammer.

Know how scammers tell you to pay. Never pay someone who insists you pay with a gift card or by using a money transfer service. Importantly, never deposit a check and send money back to someone.

Stop and talk to someone you trust. Before you do anything else, tell someone, such as a friend, family member or neighbor, about what happened. Talking about it could help you realize that it is a scam.

Reporting Scams to the FTC

Victims of a fraudulent scam can file a report with the FTC by CLICKING HERE. 

Source: FTC.gov

What to do if you get a notice of a data breach. Preventing Identity Theft.

Apr 4, 2022 | New Blog

Have you received a data breach notification letter? Did you recently get a notice that says your personal information was exposed or compromised in a data breach? 

Victims of a data breach or other cybersecurity incident should be aware that depending on what information was exposed to unauthorized access during a data breach or hacking incident, there are steps you can take to help protect yourself from identity theft.

What information was identified in the data breach notification letter as lost, exposed or potentially subject to unauthorized access? 

Social Security number

If a company responsible for exposing your information offers you free credit monitoring, take advantage of it.

Get your free credit reports from annualcreditreport.com. Check for any accounts or charges you don’t recognize.

Consider placing a free credit freeze. A credit freeze makes it harder for someone to open a new account in your name.

  • If you place a freeze, be ready to take a few extra steps the next time you apply for a new credit card or cell phone – or any service that requires a credit check.
  • If you decide not to place a credit freeze, at least consider placing a fraud alert.

Online login or password

Log in to that account and change your password. If possible, also change your username.

  • If you can’t log in, contact the company and ask them how you can recover or shut down the account.

If you use the same password anywhere else, change it.

Is it a financial site, or is your credit card number stored? Check your account for any charges that you don’t recognize.

Debit or credit card number

Contact your bank or credit card company to cancel your card and request a new one.

Review your transactions regularly, and make sure no one misused your card.

  • If you find fraudulent charges, call the fraud department and get them removed.

If you have automatic payments set up, update them with your new card number.

Check your credit report at annualcreditreport.com.

Bank account information

Contact your bank to close the account and open a new one.

Review your transactions regularly to make sure no one misused your account.

  • If you find fraudulent charges or withdrawals, call the fraud department and get them removed.

If you have automatic payments set up, update them with your new bank account information.

Check your credit report at annualcreditreport.com. 

Driver’s license information

Contact your nearest motor vehicles branch to report a lost or stolen driver’s license. The state might flag your license number in case someone else tries to use it, or they might suggest that you apply for a duplicate.

Check your credit report at annualcreditreport.com.

Your child’s personal information

Request a free credit freeze for your child. A credit freeze will make it difficult for someone to use your child’s information to open accounts. To place a freeze, follow the specific instructions for each credit bureau:

Generally, children won’t have credit reports, unless someone is using their information for fraud. To find out if your child has a credit report, ask each credit bureau to check its records. Each bureau has specific instructions for these requests:

If a credit bureau has a credit report for your child, the credit bureau will send you a copy of the report. Use the instructions provided with the credit report to remove fraudulent accounts.

Review the FTC’s information on Child Identity Theft.

What can you do if someone is using your information to open new accounts or make unauthorized purchases?

You can report Identity Theft to the FTC by CLICKING HERE. With the information you provide, the FTC can create an FTC Identity Theft Report and a Recovery Plan.

Source: Identitytheft.gov. (Last accessed 04.04.2022).

Have You Been Harmed As A Result Of A Data Breach Which Has Exposed Your Private Personal, Protected Health Or Personally Identifiable Information?

If you have experienced actual or attempted harm or been the victim of fraud due to the illegal or unauthorized exposure of your private personal, protected health or personally identifiable information, please contact Kehoe Law Firm, P.C., [email protected], for a free, confidential consultation and no-obligation evaluation of potential legal claims.