Dec 14, 2021 | Archive
The FDIC Reminds Consumers To Read Bank Financial Disclosures And Statements Provided With Banking Services To Ensure Consumers Know What Is Available To Them, Along With Any Associated Fees And Benefits
Bank Financial Disclosures
Federal and state laws require banks to provide documents to consumers about account and loan offerings. These documents, called disclosures, contain important information about the terms, fees, and interest rate applicable to your accounts. While some of the disclosures are lengthy, it is important that you read and understand them. If you don’t have a copy of the disclosures discussed below, contact your financial institution.
The following are some disclosures that are important to review:
Deposit Disclosures
Your deposit account disclosure, also known as a truth in savings disclosure, was given to you when you opened your checking and/or savings account. It tells you about the annual percentage yield (“APY”), interest rates, minimum-balance requirements, account-opening information, and fees. You may receive additional disclosures about your deposit account upon request, if certain terms of the account change, or if your bank sends a periodic statement. A review of these disclosures will allow you to better understand your account terms. You can find more information about deposit accounts and disclosures by clicking Choosing and Using the Right Bank Account.
Loan Disclosures
For your loans and credit cards, you will have received a truth in lending disclosure. It will tell you about the annual percentage rate or APR (the cost of credit expressed as a yearly rate as a percentage), the finance charge (the cost of credit, including interest and certain fees, expressed as a dollar amount), the amount financed (the dollar amount of credit provided to you); and the total of payments (the sum of all the payments that you will have made at the end of the loan). The disclosures for a mortgage loan will include additional information, including whether or not you have a prepayment penalty.
Privacy Disclosures
Another disclosure you will want to review is your bank’s privacy disclosure. This document will tell you with whom your bank can share your financial information and for what purpose. It will also tell you whether or not you can opt-out of any sharing, and if you can opt-out, how to do so. For more information about your privacy disclosure, please click Your Rights to Financial Privacy: How to Stay Informed.
Additional Resources
Consumer Financial Protection Bureau (CFPB), What is a Truth in Lending Disclosure?
National Credit Union Administration (NCUA), Why Reading Account Disclosures is Important
Federal Reserve Bank of St. Louis, A Closer Look at Credit Card Disclosures
Federal Reserve Bank of St. Louis, Credit Card Statements Explained
Source: FDIC.gov
Dec 13, 2021 | Blog
Investors Should Be Aware Of Communications, Including Phone Calls, Voicemails, Emails, And Letters That May Falsely Appear To Be From The SEC
The SEC recently advised that it is aware that several individuals recently received phone calls or voicemail messages that appeared to be from an SEC phone number. The calls and messages raised purported concerns about unauthorized transactions or other suspicious activity in the recipients’ checking or cryptocurrency accounts. According to the SEC, these phone calls and voicemail messages are in no way connected to the SEC. If you receive a communication that appears to be from the SEC, do not provide any personal information unless you have verified that you are dealing with the SEC. The SEC does not seek money from any person or entity as a penalty or disgorgement for alleged wrongdoing outside of its formal Enforcement process.
SEC staff do not make unsolicited communications – including phone calls, voicemail messages, or emails – asking for payments related to enforcement actions, offering to confirm trades, or seeking detailed personal and financial information. Investors, you should be skeptical if you are contacted by someone claiming to be from the SEC and asking about your shareholdings, account numbers, PIN numbers, passwords, or other information that may be used to access your financial accounts. Again, the SEC cautions to never provide information to someone claiming to be from the SEC, until you have verified that the person actually works for the SEC.
How Can You Confirm That You Are Dealing With The SEC?
If you receive an unsolicited communication from someone claiming to be from the SEC, use the SEC’s personnel locator at (202) 551-6000 to reach the staff member directly and ask the person if the communication was from them. You can also call (800) SEC-0330 or e-mail [email protected] to check if a communication is from the SEC.
If you receive a communication that falsely appears to be from the SEC, submit a complaint at sec.gov/oig to the SEC’s Office of Inspector General (“OIG”) or call the OIG’s toll-free hotline at (833) SEC-OIG1 (732-6441).
Additional Information For Investors
Investor Alert: When Engaging With the SEC on Social Media, Use Our Verified Accounts and Be Alert for Impersonators (Sept. 2018)
Investor Alert: SEC Impersonators Pretend to Help Investors Buy Stock (Apr. 2018)
Investor Alert: Beware of Government Impersonators Targeting Fraud Victims (June 2016)
Updated Investor Alert: SEC Warns of Government Impersonators Demanding Money (Aug. 2015)
Source: Investor.gov
Dec 13, 2021 | Blog
Important Information For Consumers About Understanding Common Bank Deposit Account Fees, The Options Available, And Ways Consumers Can Minimize Or Avoid Bank Fees
Deposit Account Fees
Banks are required under federal law to disclose any fees they charge in connection with a deposit account. Ask your bank, or any bank you are considering opening an account with, for the account opening disclosure and fee schedule. All deposit-related fees that your bank can charge must be listed in these documents. Common fees might include monthly maintenance or automated teller machine (“ATM”) withdrawal fees.
Overdraft Fees
Overdraft fees occur when you don’t have enough money in your account to cover your transactions. The cost for overdraft fees varies by bank, but they may cost around $35 per transaction. These fees can add up quickly and can have ripple effects that are costly. Some banks also may charge what are known as continuous overdraft fees, or daily overdraft fees. These are charges assessed every day the account remains overdrawn.
In general, for debit card transactions at ATMs or at merchants, consumers must opt-in, or agree up front, that the bank can charge you an overdraft fee for any debit card transaction that overdraws the account. If you do not opt-in, you cannot be charged a fee; however, your bank may refuse your purchase if it will overdraw your account.
If you do opt-in for overdraft protection or coverage, then your bank may pay a debit card purchase or ATM transaction, even if the transaction overdraws your account. You will be charged any overdraft fees that are incurred as a result. The opt-in form should be provided by your bank with the other account opening disclosures. If you change your mind at any time after opting-in, you can still opt-out by contacting your bank.
If you have a separate savings account, you might think about linking your savings account to your checking account when your bank provides this option. If you overdraw your checking account, the bank can pull funds from your savings to cover the shortage, as long as you have enough funds available. Your bank may still charge you a fee for transferring the funds automatically, but it is typically less than an overdraft charge.
“NSF” Fees
While you have a choice to opt-in or opt-out of overdraft coverage for debit card transactions, you may not have a choice when it comes to using paper checks or other ways of making payments or purchases from your account. Keeping track of your account balance will help you avoid charges for overdrawing your account in those situations, and also if you choose to opt-in for debit card transactions. Banks are not required to obtain your opt-in for Non-Sufficient Fund (“NSF”) fees. If you write a check for more money than you have in your account without any overdraft coverage, the check will not be paid but you will still be charged an NSF fee.
Also, Automated Clearing House (“ACH”) transactions, such as your direct payment or bill pay services, may be declined if you do not have enough funds in your account and be subject to an NSF fee.
Banks typically charge a NSF fee for each transaction, and these fees too can be costly as they can have ripple effects similar to overdraft fees. It is your responsibility to stay current with the checks and transactions you have made from your bank account. Make sure to look at your bank statements and try to use online banking and alerts to help you keep track of your bank account transactions.
Monthly Maintenance Fees
Banks can charge a monthly fee to maintain deposit accounts. These fees may be lower or waived in certain situations, such as when you have direct deposit, maintain a minimum balance, or make a certain number of transactions each month. You might consider a bank that allows you to avoid monthly maintenance fees by direct depositing your paycheck. Ask if other fees can be waived with direct deposit. Signing up for paperless statements and getting multiple products from one bank (instead of several banks) may be a way to eliminate some monthly maintenance fees.
Minimum Balance Fees
Some accounts may have a minimum balance requirement to avoid a fee. If you are required to have a minimum balance in your account, be sure to maintain that balance to avoid fees. Ask if your bank offers low balance alerts to notify you, so that you don’t unknowingly drop below the minimum balance requirement.
ATM Fees
Some banks charge for using ATMs not in their network. To avoid charges, use only the ATMs that are in your bank’s network, or those that allow you to use your ATM or debit card for free. Also, ask if your bank reimburses you for using any ATMs outside its network. Some banks will do that for a certain number of transactions per year.
Finding The Right Bank Account
The FDIC recommends comparison shopping at a number of banks before you open an account. To help you choose an account based on what is important to you, use the FDIC’s checklist: How to Pick a Bank Account. Choose the services you need and skip those that you don’t, especially if they come with a price tag. Get a copy of the bank’s deposit account disclosure and fee schedule, and read them carefully so you know the cost of the services you require. Choose the account that has the services you need at the lowest cost.
Today, there are more transaction account options than ever before. Some banks offer customers the option of a ‘checkless’ checking account. These card-based accounts may offer consumers the ability to avoid overdraft charges completely. There are also banks that offer accounts with low-fees, and no overdraft or NSF fees, such as Bank On certified accounts. These accounts may also provide other free services such as ATM withdrawals. To obtain additional information on these low-fee bank accounts, please click #GetBanked.
The FDIC also recommends to call your bank and ask if they can waive fees you have incurred, especially if you have not had a lot of fees in the past. If your bank cannot waive specific fees, ask if the bank has a different account that does not have fees for the services you need. If not, and you find the fee to be costly, consider shopping around for an account at a different bank.
For additional information, please click the Consumer Financial Protection Bureau’s New insights on bank overdraft fees and 4 ways to avoid them.
Source: FDIC.gov
Oct 19, 2021 | Data Breach
California Assembly Bill No. 825, Chapter 527, Now Specifies That Personal Information Includes Genetic Data
Kehoe Law Firm, P.C. is making consumers aware that on October 18, 2021, “The National Law Review” reported (“California Broadens Security and Breach Laws, Includes Genetic Data”) that “California recently updated both its data security and breach notice laws to include genetic data. With the passage of AB 825, the data security law now includes in the definition of ‘personal information’ genetic data. The information needs to be ‘reasonably protected.’ While many other states have similar ‘reasonable protection’ requirements in their data security laws, California is one of a handful to specifically list genetic information.”
According to Assembly Bill 825:
. . . ‘genetic data’ means any data, regardless of its format, that results from the analysis of a biological sample of an individual, or from another source enabling equivalent information to be obtained, and concerns genetic material. Genetic material includes, but is not limited to, deoxyribonucleic acids (DNA), ribonucleic acids (RNA), genes, chromosomes, alleles, genomes, alterations or modifications to DNA or RNA, single nucleotide polymorphisms (SNPs), uninterpreted data that results from analysis of the biological sample or other source, and any information extrapolated, derived, or inferred therefrom. [Emphasis added.]
Have You Been Impacted by A Data Breach?
If so, please contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], complete the form on the right or e-mail [email protected] for a free, no-obligation case evaluation of your facts to determine whether your privacy rights have been violated and discuss potential legal claims.
Examples of the type of relief sought by data privacy class actions, include, but are not limited to, reimbursement of identity theft losses and of out-of-pocket costs paid by data breach victims for protective measures such as credit monitoring services, credit reports, and credit freezes; compensation for time spent responding to the breach; imposition of credit monitoring services and identity theft insurance, paid for by the defendant company; and improvements to the defendant company’s data security systems.
Data privacy class actions are brought on a contingent-fee basis; thus, plaintiffs and the class members do not pay out-of-pocket attorney’s fees or litigation costs. Subject to court approval, attorney’s fees and litigation costs are derived from the recovery obtained for the class.
Oct 13, 2021 | Overtime & Wages
Important Things Employees Should Know About The Minimum Wage, Overtime Pay, And The Fair Labor Standards Act
Kehoe Law Firm, P.C. is making employees aware that the Fair Labor Standards Act (“FLSA”) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments.
Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.
The federal minimum wage provisions are contained in the FLSA. The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Some state laws provide greater employee protections; employers must comply with both.
The FLSA does not provide wage payment collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some states do have laws under which such claims (sometimes including fringe benefits) may be filed.
Covered, nonexempt workers are entitled to a minimum wage of $7.25 per hour effective July 24, 2009. Special provisions apply to workers in American Samoa and the Commonwealth of the Northern Mariana Islands. Nonexempt workers must be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek.
Wages required by the FLSA are due on the regular payday for the pay period covered. Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA.
The FLSA contains some exemptions from these basic standards. Some apply to specific types of businesses; others apply to specific kinds of work.
While the FLSA does set basic minimum wage and overtime pay standards and regulates the employment of minors, there are a number of employment practices which the FLSA does not regulate.
For example, the FLSA does not require:
- vacation, holiday, severance, or sick pay;
- meal or rest periods, holidays off, or vacations;
- premium pay for weekend or holiday work;
- pay raises or fringe benefits; or
- a discharge notice, reason for discharge, or immediate payment of final wages to terminated employees.
The FLSA does not provide wage payment or collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed.
Also, the FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old.
The above matters are for agreement between the employer and the employees or their authorized representatives.
All employees of certain enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person, are covered by the FLSA.
A covered enterprise is the related activities performed through unified operation or common control by any person or persons for a common business purpose and —
- whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated); or
- is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or
- is an activity of a public agency.
Any enterprise that was covered by the FLSA on March 31, 1990, and that ceased to be covered because of the revised $500,000 test, continues to be subject to the overtime pay, child labor and recordkeeping provisions of the FLSA.
Employees of firms which are not covered enterprises under the FLSA still may be subject to its minimum wage, overtime pay, recordkeeping, and child labor provisions if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely-related process or occupation directly essential to such production.
Such employees include those who work in communications or transportation; regularly use the mails, telephones, or telegraph for interstate communication, or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross State lines in the course of employment; or work for independent employers who contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in the production of goods for interstate commerce.
Domestic service workers such as day workers, housekeepers, chauffeurs, cooks, or full-time babysitters are covered if:
- their cash wages from one employer in calendar year 2010 are at least $1,700 (this calendar year threshold is adjusted by the Social Security Administration each year); or
- they work a total of more than 8 hours a week for one or more employers.
Tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips. The employer may consider tips as part of wages, but the employer must pay at least $2.13 an hour in direct wages.
The employer who elects to use the tip credit provision must inform the employee in advance and must be able to show that the employee receives at least the applicable minimum wage (see above) when direct wages and the tip credit allowance are combined. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. Also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement.
The federal overtime provisions are contained in the FLSA. Unless exempt, employees covered by the FLSA must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. There is no limit in the FLSA on the number of hours employees aged 16 and older may work in any workweek. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.
The FLSA applies on a workweek basis. An employee’s workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. It need not coincide with the calendar week, but may begin on any day and at any hour of the day. Different workweeks may be established for different employees or groups of employees. Averaging of hours over two or more weeks is not permitted. Normally, overtime pay earned in a particular workweek must be paid on the regular pay day for the pay period in which the wages were earned.
On May 20, 2020, the Department of Labor announced a final rule that allows employers to pay bonuses or other incentive based pay to salaried, nonexempt employees whose hours vary from week to week. The final rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method under the FLSA. For more information, see www.dol.gov/agencies/whd/overtime/fww.
On May 18, 2020, the U.S. Department of Labor announced a final rule to withdraw the partial lists of establishments that lack or may have a “retail concept” under the FLSA. For more information, click www.dol.gov/agencies/whd/overtime/2020-7i.
On December 12, 2019, the U.S. Department of Labor announced a Final Rule that will allow employers to more easily offer perks and benefits to their employees. For more information, click www.dol.gov/agencies/whd/overtime/2019-regular-rate.
On September 24, 2019, the U.S. Department of Labor announced a final rule to make 1.3 million American workers eligible for overtime pay. For more information, click www.dol.gov/agencies/whd/overtime2019/index.
Overtime must be paid at a rate of at least one and one-half times the employee’s regular rate of pay for each hour worked in a workweek in excess of the maximum allowable in a given type of employment. Generally, the regular rate includes all payments made by the employer to or on behalf of the employee (except for certain statutory exclusions). The following examples are based on a maximum 40-hour workweek applicable to most covered nonexempt employees.
- Hourly rate (regular pay rate for an employee paid by the hour) – If more than 40 hours are worked, at least one and one-half times the regular rate for each hour over 40 is due. Example: An employee paid $8.00 an hour works 44 hours in a workweek. The employee is entitled to at least one and one-half times $8.00, or $12.00, for each hour over 40. Pay for the week would be $320 for the first 40 hours, plus $48.00 for the four hours of overtime – a total of $368.00.
- Piece rate – The regular rate of pay for an employee paid on a piecework basis is obtained by dividing the total weekly earnings by the total number of hours worked in that week. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the full piecework earnings. Example: An employee paid on a piecework basis works 45 hours in a week and earns $405. The regular rate of pay for that week is $405 divided by 45, or $9.00 an hour. In addition to the straight-time pay, the employee is also entitled to $4.50 (half the regular rate) for each hour over 40 – an additional $22.50 for the 5 overtime hours – for a total of $427.50.Another way to compensate pieceworkers for overtime, if agreed to before the work is performed, is to pay one and one-half times the piece rate for each piece produced during the overtime hours. The piece rate must be the one actually paid during nonovertime hours and must be enough to yield at least the minimum wage per hour.
- Salary – The regular rate for an employee paid a salary for a regular or specified number of hours a week is obtained by dividing the salary by the number of hours for which the salary is intended to compensate. The employee is entitled to an additional one-half times this regular rate for each hour over 40, plus the salary.
If, under the employment agreement, a salary sufficient to meet the minimum wage requirement in every workweek is paid as straight time for whatever number of hours are worked in a workweek, the regular rate is obtained by dividing the salary by the number of hours worked each week.
To illustrate, suppose an employee’s hours of work vary each week and the agreement with the employer is that the employee will be paid $480 a week for whatever number of hours of work are required. Under this agreement, the regular rate will vary in overtime weeks. If the employee works 50 hours, the regular rate is $9.60 ($480 divided by 50 hours). In addition to the salary, half the regular rate, or $4.80, is due for each of the 10 overtime hours, for a total of $528 for the week. If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). In that case, an additional $4.00 is due for each of the 20 overtime hours for a total of $560 for the week.
In no case may the regular rate be less than the minimum wage required by the FLSA.
If a salary is paid on other than a weekly basis, the weekly pay must be determined in order to compute the regular rate and overtime pay. If the salary is for a half month, it must be multiplied by 24 and the product divided by 52 weeks to get the weekly equivalent. A monthly salary should be multiplied by 12 and the product divided by 52.
Source: U.S. Department Of Labor, Wage and Hour Division (Last accessed 10.13.2021)
