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 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
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.”
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.
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.
Apr 3, 2022 | Blog, Overtime & Wages
Wages Include Overtime Pay in California
In California, wages are considered compensation for an employee’s personal services, whether paid by check or cash, or the fair cash value of noncash payments such as meals and lodging.
Payments are considered wages even if the employee is a casual worker, a day or contract laborer, part-time or temporary worker, or paid by the day, hour, or any other method or measurement.
In California, wages include, but are not limited to:
- Salaries, hourly pay, piece rate, or payments by the job.
- Commissions and bonuses.
- Overtime and vacation pay.
- The reasonable cash value of compensation other than cash.
Required Pay for Overtime for Nonexempt Employees in California
In California, the general overtime provisions are that a nonexempt employee 18 years of age or older, or any minor employee 16 or 17 years of age who is not required by law to attend school and is not otherwise prohibited by law from engaging in the subject work, shall not be employed more than eight hours in any workday or more than 40 hours in any workweek unless he or she receives one and one-half times his or her regular rate of pay for all hours worked over eight hours in any workday and over 40 hours in the workweek (or double time as specified below).
Eight hours of labor constitutes a day’s work, and employment beyond eight hours in any workday or more than six days in any workweek requires the employee to be compensated for the overtime at not less than:
One and one-half times the employee’s regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday, and for the first eight hours worked on the seventh consecutive day of work in a workweek; and
Double the employee’s regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.
In California, there are, however, a number of exemptions from the overtime law. An “exemption” means that the overtime law does not apply to a particular classification of employees. There are also a number of exceptions to the general overtime law stated above. An “exception” means that overtime is paid to a certain classification of employees on a basis that differs from that stated above. In other words, an exception is a special rule.
What is the “regular rate of pay,” and how does it relate to overtime?
Overtime is based on the regular rate of pay, which is the compensation you normally earn for the work you perform. The regular rate of pay includes a number of different kinds of remuneration, such as hourly earnings, salary, piecework earnings, and commissions. In no case may the regular rate of pay be less than the applicable minimum wage.
CLICK HERE for more information about computing the regular rate and for examples of how to calculate the regular rate of pay.
If an employee works unauthorized overtime is the employer obligated to pay for it?
Yes! California law requires that employers pay overtime, whether authorized or not, at the rate of one and one-half times the employee’s regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday, and for the first eight hours of work on the seventh consecutive day of work in a workweek, and double the employee’s regular rate of pay for all hours worked in excess of 12 in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.
An employer can discipline an employee if he or she violates the employer’s policy of working overtime without the required authorization. California’s wage and hour laws, however, require that the employee be compensated for any hours he or she is “suffered or permitted to work, whether or not required to do so.” California case law holds that “suffer or permit” means work the employer knew or should have known about.
Is a bonus included in the regular rate of pay for purposes of calculating overtime?
Yes, if it is a non-discretionary bonus. A non-discretionary bonus is included in determining the regular rate of pay for computing overtime when the bonus is compensation for hours worked, production or proficiency, or as an incentive to remain employed by the same employer. Incentive bonuses include flat sum bonuses.
Are any amounts excluded from the regular rate of pay?
Yes, there are certain types of payments that are excluded from the regular rate of pay. Examples of some of the more common exclusions are sums paid as gifts for special occasions, expense reimbursements, payments made for occasional periods when no work is performed due to vacation, holiday, illness, failure of the employer to provide sufficient work, premium pay for Saturday, Sunday, or holiday work (where such premium rate is not less than one and one-half times the rate established in good faith for like work performed in non-overtime hours on other days), and discretionary bonuses.
Are salaried employees entitled to overtime?
A salaried employee must be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of the California Labor Code or one of the Industrial Welfare Commission Wage Orders regulating wages, hours and working conditions.
Can an employer require an employee to work overtime?
Yes. Generally, an employer may dictate the employee’s work schedule and hours. Additionally, under most circumstances the employer may discipline an employee, up to and including termination, if the employee refuses to work scheduled overtime. However, an employer cannot discipline an employee for refusing to work on the 7th day in a workweek and is subject to a penalty for causing or inducing an employee not to take a day of rest. An employee who is fully apprised of the entitlement to rest may independently chooses not to take a day of rest.
When must I be paid for the overtime hours I work?
Overtime wages must be paid no later than the payday for the next regular payroll period after which the overtime wages were earned. (Labor Code Section 204) Only the payment of overtime wages may be delayed to the payday of the next following payroll period as the straight time wages must still be paid within the time set forth in the applicable Labor Code section in the pay period in which they were earned; or, in the case of employees who are paid on a weekly, biweekly, or semimonthly basis, not more than seven calendar days following the close of the payroll period.
Can an employee waive his or her right to overtime compensation?
No! California law requires that an employee be paid all overtime compensation notwithstanding any agreement to work for a lesser wage. Consequently, such an agreement or “waiver” will not prevent an employee from recovering the difference between the wages paid the employee and the overtime compensation he or she is entitled to receive. (Labor Code Section 1194).
Source: California Department of Industrial Relations (accessed 04.03.2022); Employment Development Department, State of California (accessed 04.03.2022).
Employees in California Who Believe They Have Been Victims of Employer Wage and Hour Violations
EMPLOYEES IN CALIFORNIA WHO BELIEVE THEY HAVE BEEN HARMED BY EMPLOYER WAGE AND HOUR VIOLATIONS ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C. BY COMPLETING THE FORM ABOVE ON THE RIGHT OR SENDING AN EMAIL TO [email protected] TO REQUEST A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.
Mar 31, 2022 | Blog, Data Breach
Lakeview Loan Servicing, LLC (“Lakeview Loan”) has reported a security incident involving unauthorized access to Lakeview Loan’s file servers, which was identified in early December 2021.
The company’s investigation determined that an unauthorized person obtained access to files on Lakeview Loan’s file storage servers from October 27, 2021 to December 7, 2021.
On March 18, 2022, Lakeview Loan began mailing notification letters to individuals whose information may have been involved in the data breach.
The accessed files, according to Lakeview Loan, were reviewed by its investigation team to identify the content. The investigative review process, according to the company, generated a preliminary list of individuals whose name, address, loan number, and Social Security number were included in the files.
Lakeview Loan reported that for some individuals, the accessed files may also have included information provided in connection with a loan application, loan modification, or other items regarding loan servicing. According to Lakeview, the additional loan related information in the files is not the same for all affected individuals.
Lakeview Loan has recommended that residents review their financial account statements and credit reports, as well as report any unauthorized charges or activity.
CLICK HERE for additional information reported about the Lakeview Loan data breach to the Office of the Maine Attorney General.
Source: Office of the Maine Attorney General.
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.
Mar 29, 2022 | Blog
Warning Signs To Identify Potential Fraud in the Volatile, Risky Forex Market
The foreign currency (“forex”) market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose, such as retirement funds, as you can lose most or all of it very quickly.
The Commodity Futures Trading Commission (“CFTC”) has witnessed a sharp rise in forex trading scams in recent years and has issued the following guidance on how to identify potential fraud:
Signs of a Possible Fraudulent Sales Pitch
- Leading you to believe you can profit from current news already known to the public.
- Made through word-of-mouth referrals or emails from friends and relatives, members of community organizations, churches, or social groups.
- Contacting you for personal information such as your name, phone number, and email and home address.
- Promising that with forex, there is no “down-turning market.”
Possible Persuasion Tactics You May Experience
- Dangling the prospect of wealth and enticing you with something you want, but can’t have.
“This Euro/dollar deal is guaranteed to rise double what your current investments are doing.”
- Trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience.
“Believe me, as a 10-year senior vice president at this firm, I would never sell something that doesn’t produce.”
- Leading you to believe that other savvy people have already invested.
“This is how Bob down the street from you got his start. I know it’s a lot of money, but I’m in—and so is half our club. It’s worth every dime.”
- Offering to do a small favor for you in return for a big favor.
“I’ll give you a break on my normal forex commission if you buy now—half off.”
- Creating a false sense of urgency by claiming limited supply.
“There are only two units left and the Asian market is about to open, so I’d sign up today.”
“Red Flags” to Help Identify Foreign Currency Trading Scams
- Promises that with forex, there is no “bear” market –
- Firms that claim you can, or should, trade in the interbank market –
- Requests to send or transfer cash quickly via the Internet, by mail, or otherwise –
- Difficulty getting background information about the person and/or company.
Before Engaging in Forex Trading
- Contact the CFTC to check the company’s registration status, business background, and disciplinary history.
- Ask about the details of the forex trading market and your obligations if you participate.
- Ask about the firm and the individual’s performance record on behalf of other clients.
- Ask anyone not willing to comply about why they are being hesitant to do so.
- Ask for all information in writing. Do not rely on oral promises or statements.
- Check all information you receive to ensure that the company is, and does, what it says it does.
- Ask for a written risk disclosure statement.
- Ask for the advice of an independent and licensed financial advisor or consultant whom you trust.
Questions For Financial Professionals
- How are you qualified to provide me this service?
- How does this product meet my financial needs?
- How are you paid for your service?
If You Engage In Forex Trading
- Do not deposit more funds than you can afford to lose.
- Do not mortgage your home or cash in your savings.
- Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited. Do not trade forex if you cannot withstand the additional loss.
CLICK HERE for more CFTC guidance on the signs of fraud. CLICK HERE for CFTC guidance for investors before trading.
Source: CFTC.gov
