Mar 29, 2022 | Blog
CFPB Finds Credit Card Companies Charged $12 Billion in Late Fee Penalties in 2020
The Consumer Financial Protection Bureau (CFPB) has issued a report showing that credit card issuers charged $12 billion in late fees in 2020. Late fee penalties are charged in addition to interest when a cardholder does not make the minimum payment by the due date.
Some Findings of the CFPB’s Report Included:
Many major issuers charge the maximum late fee allowed under the immunity provisions set by the Federal Reserve Board of Governors in 2010. Eighteen of the top 20 issuers set late fees at or near the established maximum level.
Subprime cards and private label cards are particularly susceptible to late fee charges. For example, the average deep subprime account gets charged $138 in late fees per year, and deep subprime accounts are more likely than super-prime accounts to carry smaller balances. As a result, deep subprime cardholders pay late fees that represent a higher percentage of their balances (11% compared to 0.8% for super-prime accounts). These late fees are in addition to accrued interest charges. For private label cards, late fees comprised the overwhelming majority—91%—of all consumer fees and 25% of total interest and fees (compared to 45% and 7%, respectively, for general purpose credit cards).
CLICK HERE to read the CFPB’s full report.
Source: Consumerfinance.gov
Mar 27, 2022 | Blog, Data Breach
Charles Schwab Files “Notice of Data Breach” – Information potentially affected may include name and one or more of the following: Social Security number or tax identification number, driver’s license or other state identification number, passport number, or username/password.
According to Charles Schwab’s “Notice of Data Breach,” “[o]n December 16, 2021, Schwab discovered a potential issue regarding certain chat and email messages and immediately began an investigation. As a result of the investigation, [Charles Schwab] recently determined that between May 18, 2021, and December 16, 2021, certain chat and email messages sent through Schwab.com were inadvertently sent to external email systems.”
Source: oag.ca.gov/privacy/databreach/list
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.
Feb 22, 2022 | Blog, Consumer Protection
FTC Received 2.8 Million Fraud Reports From Consumers In 2021
Federal Trade Commission data shows that consumers reported losing more than $5.8 billion to fraud in 2021, an increase of more than 70 percent over the previous year.
The FTC received fraud reports from more than 2.8 million consumers last year, with the most commonly reported category once again being imposter scams, followed by online shopping scams.
Prizes, sweepstakes, and lotteries; internet services; and business and job opportunities rounded out the top five fraud categories.
Of the losses reported by consumers, more than $2.3 billion of losses reported last year were due to imposter scams (up from $1.2 billion in 2020), while online shopping accounted for about $392 million in reported losses from consumers, up from $246 million in 2020.
Consumer Sentinel Network 2021 Data Book
In 2021, the Consumer Sentinel Network took in over 5.7 million reports, an increase from 2020. – Fraud: 2.8 million (49% of all reports) – Identity theft: 1.4 million (25%) – Other: 1.5 million (27%)
In 2021, people filed more reports about Identity Theft (25.0% of all reports), in all its various forms, than any other type of complaint. Imposter Scams, a subset of Fraud reports, followed with 984,756 reports from consumers in 2021 (17.2% of all reports). Credit Bureaus, Information Furnishers and Report Users (10.3% of all reports) rounded out the top three reports to Sentinel.
Fraud
There were over 984,000 imposter scam reports to Sentinel. Seventeen percent of those reported a dollar loss, totaling over $2.3 billion lost to imposter scams in 2021. These scams include, for example, romance scams, people falsely claiming to be the government, a relative in distress, a well-known business, or a technical support expert, to get a consumer’s money.
Of the nearly 2.8 million fraud reports, 25% indicated money was lost. In 2021, people reported losing more than $5.8 billion to fraud – an increase of $2.4 billion over 2020.
The median loss for all fraud reports in 2021 is $500. Among the top 10 frauds reported, the median individual losses were highest in these categories: – Investment Related ($3,000) – Foreign Money Offers and Counterfeit Check Scams ($2,000) – Business and Job Opportunities ($1,991)
Telephone was the method of contact for 36% of fraud reports with a contact method identified. Nine percent of those reports indicated a money loss – but that 9% reported an aggregate loss of nearly $692 million, and a $1,200 median loss.
Bank transfers and payments accounted for the highest aggregate losses reported in 2021 ($756 million), followed closely by Cryptocurrency ($750 million), while credit cards were most frequently identified as the payment method in fraud reports.
Of people who reported their age, those aged 20-29 reported losing money to fraud in 41% of reports filed with the FTC, while people aged 70 – 79 reported losing money in 18% of their reports and people 80 and over reported it in 17% of their reports. But when they did experience a loss, people aged 70 and older reported much higher median losses than any other age group.
Identity Theft
Government Documents or Benefits Fraud tops the list of identity theft types reported in 2021. The FTC received 395,948 reports from people who said their information was misused to apply for a government document or benefit, such as unemployment insurance.
Military
Military consumers reported over 110,000 fraud complaints, including 44,039 imposter scams that reportedly cost them over $103 million in 2021.
Top States
The states with the highest per capita rates of reported fraud in 2021 were Georgia, Maryland, Delaware, Nevada, and Florida. For reported identity theft, the top states in 2021 were Rhode Island, Kansas, Illinois, Louisiana, and Georgia.
Source: FTC.gov
Feb 17, 2022 | Blog, Consumer Protection
Product Recall & Safety Information For Consumers To Ensure They Are Aware Of Dangerous Or Potentially Unsafe, Hazardous Or Defective Products
To see if a product is unsafe before you buy it, please click: Unsafe Products Report Search.
To search for the latest recall information, to report a dangerous product or to learn about important safety tips, please click: Online Resource for Recalls.
FDA Orders Philips Respironics to Notify Patients Regarding the Recall of Certain Breathing Assistance Machines – The FDA has determined that this order is necessary to eliminate the unreasonable risk of harm posed by the recalled products, because the company’s notification efforts to date have been inadequate. For more information, please CLICK HERE.
Fitbit Recalls Ionic Smartwatches; One Million Sold in the U.S. Hazard: The lithium-ion battery in the Ionic smartwatch can overheat, posing a burn hazard. For more information, please click Recall 22-089.
Lovevery Recalls Drinking Cup With Handle in The Inspector Play Kits Due to Choking Hazard – Hazard: The handle can detach from the steel cup, posing a choking hazard to young children. For more information, please click Recall 22-730.
Yamaha Recalls Golf Cars and Personal Transportation Vehicles Due to Risk of Injury or Death – Hazard: The recalled vehicles can have brake failure, posing a crash hazard that could result in injury or death to the user or bystander. For more information, please click Recall 22-726.
Zeno Recalls Infant Walkers Due to Fall and Entrapment Hazards – Hazard: The infant walkers fail to meet the federal safety standard. They can fit through a standard doorway and are not designed to stop at the edge of a step as required by the federal safety standard. The walkers also have leg openings that allow the child to slip down until the child’s head can become entrapped at the neck. Babies using these walkers can be seriously injured or killed. For more information, please click Recall 22-724.
BrushX Hot Air Brushes Recalled Due to Electrocution or Shock Hazard – Hazard: The recalled hot air brushes do not have an immersion protection device, posing an electrocution or shock hazard to the user if it falls into water when plugged in. For more information, please click: Recall 22-725.
Valco Baby Recalls Snap Duo Trend Strollers Due to Fall Hazard – Hazard: The stroller’s front wheels can break off while in use, causing the strollers to fall unexpectedly, posing a fall hazard to children in the stroller. For more information, please click: Recall 22-083.
Viking Range Recalls Freestanding Gas Ranges Due to Risk of Gas Leak and Fire Hazard – Hazard: The rigid gas tubing can separate at the joint to the bake, broil and griddle burners, posing a risk of a gas leak and fire hazard when these burners are in operation. For more information, please click Recall 22-082.
Voluntary Nationwide Recall of Sure and Brut Aerosol Sprays Due to the Presence of Benzene – Hazard: Benzene is classified as a human carcinogen. Exposure to benzene can occur by inhalation, orally, and through the skin and it can result in cancers including leukemia and blood cancer of the bone marrow and blood disorders which can be life-threatening. Benzene is prevalent in the environment. Humans around the world have daily exposures to it indoors and outdoors from multiple sources. To date, no reports of adverse events related to this recall have been reported. This voluntary recall is being conducted out of an abundance of caution. For more information, please click: Sure, Brut.
Individuals Harmed By Defective Or Misleading Consumer Products And/Or Product Recalls
If you have been the victim of a defective or misleading consumer product and/or product recall, please contact Kehoe Law Firm, P.C., [email protected], for a free, confidential consultation and no-obligation evaluation of potential legal claims.
Feb 14, 2022 | Blog, Shareholder & Investor Protection
BlockFi Lending Inc. Agrees To Pay $100 Million In Penalties And Pursue Registration Of Its Crypto Lending Product
On February 14, 2022, the SEC announced that it charged BlockFi Lending LLC (“BlockFi”) with failing to register the offers and sales of its retail crypto lending product.
The SEC also charged BlockFi with violating the registration provisions of the Investment Company Act of 1940. To settle the SEC’s charges, BlockFi agreed to pay a $50 million penalty, cease its unregistered offers and sales of the lending product, BlockFi Interest Accounts (“BIAs”), and attempt to bring its business within the provisions of the Investment Company Act within 60 days. BlockFi’s parent company also announced that it intends to register under the Securities Act of 1933 the offer and sale of a new lending product. In parallel actions, BlockFi agreed to pay an additional $50 million in fines to 32 states to settle similar charges.
According to the SEC’s order, from March 4, 2019 until today, BlockFi offered and sold BIAs to the public. Through BIAs, investors lent crypto assets to BlockFi in exchange for the company’s promise to provide a variable monthly interest payment. The order finds that BIAs are securities under applicable law, and the company therefore was required to register its offers and sales of BIAs but failed to do so or to qualify for an exemption from SEC registration. Additionally, the order finds that BlockFi operated for more than 18 months as an unregistered investment company because it issued securities and also held more than 40 percent of its total assets, excluding cash, in investment securities, including loans of crypto assets to institutional borrowers.
The order also found that BlockFi made a false and misleading statement for more than two years on its website concerning the level of risk in its loan portfolio and lending activity.
Without admitting or denying the SEC’s findings, BlockFi agreed to a cease-and-desist order prohibiting it from violating the registration and antifraud provisions of the Securities Act and the registration provisions of the Investment Company Act. BlockFi also agreed to cease offering or selling BIAs in the United States.
Feb 9, 2022 | Blog, Product Liability
Home Easy Recalls Geek Heat Personal Heaters Due To Fire Hazard
The recall involves the Home Easy Geek Heat DH-QN06 personal heaters. The Geek Heat logo is printed on the top of the heater near the vent and the model number is printed on the underside of the heater. The heater measures 20 inches in length, 13 inches in width and is sold in white.
Consumers should immediately stop using the recalled heaters and contact Home Easy for a full refund. Consumers should destroy the recalled heaters by unplugging the heater prior to cutting the electrical cord making the product inoperable and then prominently mark on the product “defective” before disposal, following local disposal guidelines. Consumers should take a photo of the cut electrical cord for submission to Home Easy at [email protected]. Home Easy is contacting all known purchasers directly.
Home Easy has received three reports of the toggle power switch causing a fire. No injuries or property damage have been reported.
For more information, please click Personal Electric Heaters.
BFG North Carolina Recalls Chest Of Drawers Due To Tip-Over And Entrapment Hazards; Sold Exclusively at Rooms To Go
This recall involves River Street Five-Drawer Chests, sold in mocha and graphite colors. The River Street chests measure about 46.25 inches tall, 35.15 inches wide and 16.9 inches deep. “INDD 2425-6 CHEST,” “Made in Brazil.” SKU number 32624252 (mocha) or “INDD 423-6 CHEST,” “Made in Brazil,” SKU number 32624238 (graphite), and the manufacture date (“Prod. Date”) – in month/day/year format (MM/DD/YYYY) – are printed on a label on the back of unit along with the words “Manufacturer – Industria de Moveis Rotta Ltda.” The recalled chests were manufactured between December 2018 and October 2021.
Consumers should immediately stop using the recalled chests and contact Rooms To Go for a free in-home repair by trained technicians, free replacement, or a full refund of the purchase price in the form of a Rooms To Go store credit, including free pick-up of the chest. Rooms To Go is contacting all known purchasers directly.
No incidents or injuries have been reported.
For more information, please click River Street Five-Drawer Chests.
Source: CPSC.gov
Individuals Harmed By Defective Or Misleading Consumer Products And/Or Product Recalls
If you have been the victim of a defective or misleading consumer product and/or product recall, please contact Kehoe Law Firm, P.C., [email protected], for a free, confidential consultation and no-obligation evaluation of potential legal claims.
