вторник, 25 августа 2015 г.

uSallie Mae Spinoff Navient Could Face CFPB Lawsuit Over Student Loansr


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  • imagesIn the short time since Navient – the nation’s largest student loan servicing company – spun off from the nation’s largest student loan originator Sallie Mae, the company has come under scrutiny for it allegedly unfair practices of overcharging and imposing excessive fees on consumers’ loans. While those practices resulted in a $97 million settlement with the Depts. of Education and Justice, and the Federal Deposit Insurance Corp, they could soon lead to a lawsuit from the Consumer Financial Protection Bureau.

    Navient revealed in a Securities and Exchange Commission filing [PDF] on Monday that the company’s wholly-owned subsidiary Navient Solutions Inc. (NSI) could soon be party to a lawsuit regarding its servicing practices.

    According to the filing, Navient received a letter from the CFPB on August 19 serving as notification that the regulator’s enforcement office is considering recommending legal action against the loan servicing company.

    The letter relates to the agency’s ongoing investigation into Navient’s “disclosures and assessment of late fees and other matters,” and stated that “in connection with any action, the CFPB may seek restitution, civil monetary penalties and corrective action against NSI.”

    Known as a Notice and Opportunity to Respond and Advise (NORA), the CFPB letter is intended to give Navient the opportunity to present its positions to the CFPB before an enforcement action is recommended or commenced, something the servicing company plans to do.

    “NSI continues to believe that its acts and practices relating to student loans are lawful and meet industry standards and, where applicable, the statutory or contractual requirements of NSI’s other regulators,” Navient said in the SEC filing. “The company is committed to resolving any potential concerns.”

    Navient, which was spun off from Sallie Mae in 2014, has faced several probes by federal and state agencies, including increased scrutiny over its contract with the government.

    Earlier this month, a group of senators sent a letter to Inspector General Kathleen Tighe raising concerns that the Dept. of Education’s probe into its student loans servicer’s compliance with the Servicemembers Civil Relief Act (SCRA) was riddled with problems.

    The Dept. of Education’s review, which was released in May, found that less than 1% of servicemember files serviced by Navient, Great Lakes, Nelnet and American Education Services contained violations of SCRA, including a provision that limits the amount of interest on military personnel student loans to no more than 6%.

    Those findings were in contrast with a May 2014 investigation by the Depts. of Education and Justice, and the Federal Deposit Insurance Corp.. Those agencies jointly announced a sizable settlement against both Sallie Mae and Navient for overcharging and imposing excessive fees to nearly 78,000 military members.

    The two companies agreed to pay a combined $97 million to settle charges that they violated the Servicemembers Civil Relief Act which caps loan interest rates at 6% for active duty military members.

    The Huffington Post points out that the New York Department of Financial Services, along with the attorney general’s offices in both Washington and Illinois have launched investigations into the company’s debt collection practices.

    [via The Huffington Post]



ribbi
  • by Ashlee Kieler
  • via Consumerist


uPriest Sentenced To 6 Months In Prison For Groping Woman On US Airways Flightr


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  • Almost exactly a year after he was caught groping a female passenger on a US Airways flight from Philadelphia to Los Angeles, a Catholic priest has been sentenced to six months behind bars in a federal prison, followed by six months of house arrest.

    According to a grand jury indictment [PDF], on Aug. 17, 2014, the priest touched the woman’s breast, buttocks, and inner thigh for his own sexual gratification, and without her permission.

    Reuters reports that when the priest boarded the flight, he asked if he could be moved to a seat in the rear of the plane to “sit next to his wife.”

    At some point, the woman sitting next to the convicted groper woke up to find him touching the top of her leg and wrapping his arm around her body to grab her breast.

    She got up from her seat, went to the plane’s lavatory and called a flight attendant to report the assault.

    The priest was relocated to the front of the plane for the remainder of the flight. At Los Angeles, he was greeted by the police.

    The priest’s explanation for touching the woman was that he believed it to be consensual because — being asleep — she did not reject his probing hands. He also chalked up her unconsciousness to “coyness.”

    In May, a federal district court jury in California found the priest guilty of abusive sexual conduct. At sentencing, the woman testified that she still experienced “fear, frustration and anxiety,” especially since her work requires frequent air travel.



ribbi
  • by Chris Morran
  • via Consumerist


u“Spam King” Pleads Guilty To Sending More Than 27M Unsolicited Facebook Messagesr


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  • When your email or other messaging account is flooded with messages promising cheap$ R0lexes! and invitations to collect a million dollars from the estate of a long-lost foreign dignitary relative, it’s not easy to place the blame: is it a robot programmed for maximum annoyance? A wee, cackling, evil spam elf? Sometimes, it’s just a human: a man known as the “Spam King” has admitted in court that he’s behind more than 27 million unsolicited messages sent through Facebook’s servers.

    The Las Vegas man pleaded guilty on Monday to fraud and criminal attempt, admitting that he’d committed mass spamming efforts in 2008 and 2009, San Francisco U.S. Attorney Melinda Haag said in a statement reported by Bloomberg.

    He sent unsolicited ads disguised as friend posts over a three-month span, reports the Associated Press, collecting Facebook user account information by sending “phishing” messages to users and tricking them into providing their passwords, prosecutors said. He’d then take that info, log into their accounts and spam their friends’ Facebook walls. Unsuspecting folks who clicked the link would then be redirected to websites that paid the Spam King for the Internet traffic.

    The 47-year-old also admitted that he violated a 2009 court order not to access Facebook’s computer network.

    Though Facebook was awarded $711 million in damages against after suing him in 2009 under federal anti-spam laws known as CAN-SPAM, the social network never collected any money from him, due to his bankruptcy, notes Engadget.

    The judge in that case recommended criminal charges, prompting a two-year FBI investigation. A grand jury subsequently charged him with electronic mail fraud, damage to protected computers and criminal contempt.

    He’s now facing up to three years in prison and a $250,000 fine upon his sentencing on Dec. 7 by U.S. District Judge Edward J. Davila in San Jose.

    Facebook ‘Spam King’ Guilty for Sending 27 Million Messages [Bloomberg]
    ‘Spam King’ Pleads Guilty To Sending 27 Million Messages To Facebook Users [Associated Press]



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  • by Mary Beth Quirk
  • via Consumerist


uWhy The Stolen Ashley Madison Data Is (Legally) Fair Game For The Internetr


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  • ashleymadison-580x370
    If your credit card information gets stolen in a data breach, there are certain rules in place that limit your liability and protect you from fraud. But if a hack makes personal, potentially very embarrassing, information public — as in, say, the Ashley Madison hack — there’s not much anyone can do to stop others from seeing or writing about it.

    It’s been a bad week for Avid Life Media, parent company of infidelity-centered dating site Ashley Madison. Since the site was hacked a month ago, huge volumes of personal and site data have been released into the wild.

    Ashley Madison is doing everything they can to stem this leak, like the proverbial child with his finger against a hole in the dam. It is, of course, far too late for that; to extend (and torture) the metaphor, the dam, the kid, and everything else have already been flooded out and are swimming around in a brand new, very deep lake. Filled with sharks.

    It’s Time To Try The Old D-M-C-A…
    One of the few tools available to the beleaguered company as they try to put the toothpaste back in the tube is the Digital Millennium Copyright Act.

    As CNN and Motherboard have both explained, Ashley Madison is filing DMCA requests left and right, claiming that as they own copyright on the leaked materials, it is unlawful to redistribute or look at them. The claims are basically the same sort of takedown requests a film studio would file to get as-yet-unreleased movies pulled offline.

    Whether they have a leg to stand on with those claims, however, is another story.

    Motherboard delved into a lengthy explanation about what’s copyrightable and what’s not after Ashley Madison challenged a tweet from one of their staff writers. The TL;DR version of the law, which is important here, is that you can copyright original works, but not lists of facts.

    The famous case setting that law is Feist v. Rural Telephone Service. One phone book company, Feist, used the listings held in another phone book company’s (Rural’s) book, when they printed and released their own book. Rural sued, and eventually the whole affair ended up before the Supreme Court. The Court ended up ruling that the information was not copyrightable, and so lists of facts are not considered to be copyrighted information.

    Parts of the Ashley Madison data dump are copyrightable information. The source code for their websites, for example, is original work. Any advertising copy they published on their sites is, likewise, original to them. (And the source code for all of Avid Life’s sites has, indeed, been leaked, so they have some grounds there.)

    But a big fat *.csv file full of data? That’s a set of facts, and as such, not a thing that is subject to being copyrighted.

    Plenty of other information Ashley Madison has or had access to is also subject to copyright: anything the users write on their profiles, and the images they share. But the account-holders — all 30-odd million of them — are the ones who own that material. That’s been how leaked or stolen material has been successfully taken down before, for example when celebrities’ private photos were stolen from their phones in 2014. Google and other companies did comply with requests to take the images down, because those individuals owned their images and had grounds to request their removal.

    You Can’t Put The Toothpaste Back In The Tube
    As much as Ashley Madison and all its users wish it were not so, not only is the data probably not subject to copyright claims… but also even if it were, the media can still talk about it as much as they want.

    The hackers absolutely broke laws when they stole information from inside Avid Life Media. But media who report on the information are not breaking laws. National security concerns aside (that’s covered by different law), the press can basically run with any information given to them innocently, even if the person giving it to them obtained it illegally.

    That’s courtesy of another Supreme Court case, Bartnicki v. Vopper. In that case, a radio station broadcast a recording that had been given to them. The recording itself was in violation of federal wiretapping laws, but the radio station was found not to be liable.

    If a media outlet hired a hacker, or paid a hacker, or said, “someone please hack this company for us,” it would be a different story. But in the case of the Ashley Madison breach, as far as we know, the hackers had their own motivations, and were not acting at the suggestion or behest of any particular outlet (or anyone else at all).

    When the hackers put their mountains of information on the internet for anyone to use, the contents of those files became fair game for all media to report on and use, from mobile apps and websites through print papers and radio stations.

    That’s the same principle that was at play in the wake of the Sony Pictures hack. Sony tried to get reporters to stop reporting; reporters said no. Sony also threatened to sue Twitter if they didn’t suspend a particular user, because he was posting material from the hack. (Eight months later, that user’s account is still up and active.)

    What Is Illegal?
    It is clearly against the law to try to extort or blackmail anyone based on information from the leak. Those are crimes in and of themselves, and can be prosecuted as such.

    The information from the breach is, likewise, absolutely stolen, and the hackers can face a whole boatload of penalties for accessing systems and grabbing information…. if anyone can find them. Avid Life is offering a half-million (Canadian) dollars as a reward for information that leads to catching the thieves, and so far nobody has indicated any particular leads.

    Sadly, in the wake of the breach multiple users of the site are reported to have committed suicide. Although it is not yet known if their deaths were directly related to the breach, it is under investigation.

    Criminal matters aside, though, Avid Life is still, predictably, in for a whole world of legal hurt.

    Users whose data was included in the hack, even though they paid to have it all deleted from the site, are understandably displeased with the company, as are plenty of their other customers. The company’s already facing a lawsuit on its home turf in Canada, and at least four lawsuits against Ashley Madison have been filed in U.S. federal courts, with a class action not unlikely to follow.



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  • by Kate Cox
  • via Consumerist


uFormer Airline Catering Employee Sues American Airlines After Cargo Box Falls On Himr


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  • Depending on your job, going to work each day might entail putting yourself in harm’s way. However, most of us probably don’t envision going about our daily tasks and having a nearly 700-pound cargo box fall on us. But that’s exactly what happened to a Houston man, and now he’s suing American Airlines.

    WFAA New 8 reports that the former employee of an airline catering company filed a lawsuit alleging employees of the airline improperly maneuvered a Boeing 777, causing a 679-pound cargo box to topple over on the man.

    The incident, which occurred in July 2014 at the Dallas-Fort Worth Airport, began when the man was tasked with unloading food services from an inbound American flight.

    He claims in the lawsuit that maintenance employees improperly maneuvered the aircraft out of the gate, and when the engines were turned on to move the plane to a maintenance hanger, the blast blew the cargo container off a dolly and on top of the man.

    “I didn’t see it coming. I didn’t see it coming,” the man tells WFAA. “He hit the fuel so hard, the jet blast just hit everything.”

    According to a DFW Airport Police report, a witness told investigators that when he approached the box all that was visible was the man’s tennis shoes.

    That same report indicated that video footage of the incident appeared to show the jet blast was responsible for the crates moving, WFAA reports.

    In all, the man says he was knocked unconscious and suffered extensive leg injuries.

    A spokesperson for American Airlines tells WFAA that it is “reviewing the allegations to determine next steps.”

    Man crushed by cargo box at DFW sues American Airlines [American Airlines]



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  • by Ashlee Kieler
  • via Consumerist


uJudge Dismisses Jim Beam False Advertising Lawsuit Over “Handcrafted” Labelr


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  • A lawsuit that claimed Jim Beam’s “handcrafted” description was all a lie has been dismissed by a federal judge in California, noting that the use of stills is common in the industry, and that customers understand the whiskey is made using some machines.

    Beam Suntory, the maker of Jim Beam and other Kentucky bourbon brands, walked off with a win in San Diego on Friday, reports the Associated Press.

    The plaintiff had claimed he was tricked into buying a bottle of Jim Beam’s white label bourbon at a fancy price because of the handcrafted claim on the label. But his lawsuit claimed Jim Beam is made using an automated process that doesn’t include a lot of human involvement.

    “Such conduct by defendants is ‘unfair’ because it offends established public policy and/or is immoral, unethical, oppressive, unscrupulous and/or substantially injurious to consumers in that consumers are led to believe that Jim Beam bourbon is of superior quality and workmanship by virtue of it being ‘handcrafted,’ when in fact it is not,” the suit said.

    But U.S. District Judge Larry Alan Burns ruled that stills and other equipment have always been a part of the bourbon-making process.

    “A reasonable consumer wouldn’t interpret the word ‘handcrafted’ on a bourbon bottle to mean that the product is literally ‘created by a hand process rather than by a machine,'” the judge wrote.

    This is the third recent win for Beam Suntory: two lawsuits against Maker’s Mark bourbon were also dismissed this year, that had taken issue with the bottle labeling promoting the whiskey as homemade.

    “We are pleased with this swift and decisive victory, which ends the last remaining lawsuit against the labeling of our bourbon brands,” a company spokesman said of the judge’s decision in this case.

    The plaintiff had been seeking class-action status. His attorney says it’s unclear at this point whether he’ll appeal.

    “Obviously we’re disappointed with the results,” he said Monday.

    Judge Dismisses Suit Claiming Jim Beam Bourbon Was Falsely Advertised [Associated Press]



ribbi
  • by Mary Beth Quirk
  • via Consumerist


uSears Hires Experienced Consumer Appliance Executive To Run Hardlines, Maybe Sell Stuffr


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  • In a department or discount store, “hardlines” refers to tools, appliances, and furniture: the items that your parents still shop at Sears for, but that you don’t. Sears has hired a new executive in charge of their hardlines departments, which include the company’s three most important house brands: Kenmore appliances, Diehard automobile batteries, and Craftsman tools.

    The new president of hardlines, Lynn Pendergast, previously worked at Johnson & Johnson, HP, and General Electric. She worked in appliances at General Electric, yet as far as we know is not the real-life female version of Jack Donaghy.

    One investor speculates that the company’s goal is to put its signature products in even more stores as the network of physical Sears and Kmart stores shrinks. Notably, you can find Craftsman products at Costco and Ace Hardware, Diehard batteries at Meijer, and both lines at Blaine’s Farm and Fleet stores. Will consumers want to buy, say, a Kenmore stove at Home Depot, if the companies agreed to make that happen?

    Manifesto-writing CEO Eddie Lampert said in a statement that he believes that Ms. Pendergast is a “proven executive” and that she is “a strong fit for Sears Holdings as we pursue our member-focused transformation.”

    As a reminder, here “member” refers to the Sears Holdings Shop Your Way Rewards program, which most people join after being badgered by a cashier to provide their e-mail address or phone number. It’s one of the more simple and useful retail rewards programs, but that isn’t saying very much. Yet the focus on “members” is because Lampert believes that the rewards program is integral to the future success of Sears Holdings, and possibly also because he hates the word “customer.”

    Sears looks to boost Kenmore and Craftsman brands with new hire [Reuters]



ribbi
  • by Laura Northrup
  • via Consumerist