uJPMorgan To Pay $100M To Settle Unlawful Debt-Collection Allegations In Californiar

4 4 4 9

• 

  Four months after JPMorgan Chase agreed to pay at least $136 million to close the books on state and federal investigations into its credit card collections practices, the company reached a $100 million settlement putting an end to a similar investigation in California. 

  Attorney General Kamala Harris announced a stipulated judgment — meaning it was issued without a trial — resolving allegations that JPMorgan Chase committed credit card debt collection abuses against tens of thousands of California residents.

  According to the settlement [PDF], from 2009 to 2013, JPMorgan Chase filed 125,000 credit card collection lawsuits against consumers relying on illegally robo-signed sworn documents.

  The company allegedly provided an additional 30,000 robo-signed sworn statements in support of lawsuits filed against California consumers by third-party debt-collectors.

  The AG’s office claims JPMorgan Chase made calculation errors regarding the amounts owed, and sold so-called “zombie debts” that included accounts that were inaccurate, settled, discharged in bankruptcy, not owed or otherwise not collectable.

  An investigation by the AG’s office found that Chase also sent letters to consumers that contained illegal threats and were signed by attorneys who did not review the accuracy of the information, determine if litigation was appropriate, or intend to follow through on some of the threats made, in violation of California’s Rosenthal Fair Debt Collection Practices Act.

  In some cases, the company allegedly filed false declarations regarding military service and improperly obtained default judgments against servicemembers on active duty – a violation of the Servicemembers Civil Relief Act and the California Military and Veterans Code.

  “Abusive and illegal debt collection practices will not be tolerated in California,” Attorney General Harris said in a statement. “This settlement provides real relief to tens of thousands of Californians, including servicemembers, and prevents JPMorgan Chase from continuing these deceptive and illegal debt collection practices.”

  Under the settlement, the company will pay $50 million in restitution to consumers nationwide, including an estimated $10 million to California consumers, and significant restitution to servicemembers in California.

  Another $50 million will be paid in penalties and other payments to the state.

  The judgment requires Chase to document and confirm debts before filing credit card collections lawsuits or selling credit card debts to debt-collectors, and prohibits the company from robo-signing court and other documents.

  The settlement with the California AG’s office comes just four months after the company reached a deal with the Consumer Financial Protection Bureau over its credit card debt collection practices. That settlement excluded California and Mississippi, which were pursuing their own complaints.

  Under that deal, 47 states and the District of Columbia split around $95 million of that total, with the CFPB receiving the rest. Around $50 million of the total settlement will be paid out to consumers.

  
• 
  

ribbi

by Ashlee Kieler via Consumerist

uGrocery Chain HEB Giving 15% Of Company’s Shares To 55,000 Employeesr

4 4 4 9

• 
  While the wage fight roars on at retailers around the country, one company is doing something unusual for the industry: regional grocery chain HEB is bestowing a major perk on about 55,000 of its full-time employees with the gift of an equity stake in the business.

  HEB will fork over about 15% of the company’s shares to workers who are at least 21 and have worked at least a year at the chain, with a minimum of 1,000 hours on the clock in a calendar year, reports the New York Times.

  The idea is to recognize workers’ contributions to the company and engender loyalty among the workforce, as well as provide financial stability for employees in the long run, Craig Boyan, HEB’s president and chief operating officer told the NYT.

  “So many in retail are competing in the race to the bottom, and people are the largest cost. So it seems logical to cut people, and lots of folks are doing it,” Boyan said. “We think that’s a trap. We believe the race for the bottom cheapens the American experience. It’s bad for the country and bad for companies.”

  Workers will be able to cash out their stock when they leave or retire, and will also get dividends based on HEB’s earnings, like any other stock. Come January, eligible employees will receive a grant of nonvoting shares valued at 3% of their salary, and $100 in stock for each year of continuous service.

  HEB isn’t the first grocery store to hand out stock: Publix Super Markets and WinCo foods are both owned in the majority by employees.

  HEB Grocery Chain to Give Stock to 55,000 Employees [New York Times]

  
• 
  

ribbi

by Mary Beth Quirk via Consumerist

uAmazon Starts Black Friday Today, Really Wants You To Subscribe To Primer

4 4 4 9

• 
  This year, Black Friday, the universal holiday honoring unbridled commerce, will happen on Nov. 27. That doesn’t mean that Black Friday is limited to only that day, though: today, megastore Amazon.com kicked off their “Countdown to Black Friday,” which is apparently sort of like an Advent calendar full of external hard drives and sneakers.

  Not that we’re complaining. I would buy that if it were an actual Advent calendar. However, it was just a few months ago that Amazon blew out its own sale records with Prime Day, its anniversary celebration and attempt to sell Prime subscriptions to the masses. While customers complained about the deals they saw and the deals they didn’t see, they also bought a lot of stuff: the company reported higher sales than previous actual Black Fridays.

  Mashable points out that Amazon usually launches their holiday deals site sometime around the beginning of November,

  Amazon’s goal, of course, is to lure you into joining Prime: not only do they get your hundred bucks for a membership fee, but Prime members tend to do more of their shopping through Amazon than non-members.

  Our deal-combing colleagues down the hall at Consumer Reports are running their own Countdown to Black Friday, too. The discounts aren’t as deep, but they do include items that are recommended according to their tests.

  Amazon will use Black Friday to try lure you into Prime [Washington Post]
  Amazon’s Black Friday site is here, almost a month before Black Friday [Mashable]

  
• 
  

ribbi

by Laura Northrup via Consumerist

uChairman Of University Of Phoenix Parent Company Dumps Millions Of Dollars In Stocksr

4 4 4 9

• Just a week after University of Phoenix’s parent company Apollo Education Group attempted to tone down the role the troubled for-profit college has played in the company’s falling stock prices and public image, new regulatory filings show the corporation’s own chairman may not have the same faith in the organization, as he dumped nearly $10 million in company stock. 

  A Securities and Exchange Commission filing shows that Apollo Education Group chairman Peter Sperling sold 1.379 million shares of the firm’s stock on Oct. 23 and Oct. 26.

  Reveal Tweeted a copy of the SEC filing on Monday, bringing the transaction to light.

  The chairman of the University of Phoenix's parent company just dumped millions in stock. http://pic.twitter.com/VQlZPCtV3T

  — Reveal (@reveal) November 2, 2015

  The transaction, which is valued at $10,040,859, brings Sperling’s shares in the company down to just 92,874.

  Apollo, which was trading at more than $34/share at the beginning of 2015, has already seen its share price sink to around $12 before Oct. 9, when news broke that the Department of Defense had put University of Phoenix on probation. Since then, it’s fallen to around $7 per share.

  Sperling’s stock was sold for the average price of $7.28 per share.

  The DoD probation means the school is barred from recruiting on U.S. military installations, and its participation in the DoD Tuition Assistance Program for active duty military personnel is on hold.

  “We’re cooperating fully,” Apollo CEO Greg Cappelli vaguely said of investigations into the for-profit college chain during a call with investors last week. “We’ve taken appropriate action to correct any area where there is even the slightest perception that we are not appropriately serving our students or complying with requirements.”

  Despite working with regulators and investigators, Cappelli said he was unsure when the college’s reinstatement in the tuition assistance program would occur.

  Whenever that does happen, Cappelli cautioned that the DoD’s action would likely have a lasting impact on future enrollment and revenue.

  According to Reveal, the University of Phoenix received $20 million in military tuition assistance from the Pentagon last year and $1.2 billion in GI Bill benefits since 2009.

  “We want to make sure we are doing everything correctly and in compliance,” Cappelli said. “And if there are questions, we will address them, we will answer them, and we’ll ensure that if there’s something to be changed, it’s changed.”

  Apollo interim chief financial officer, Joe D’Amico told investors that while the company deals with action from the DoD and other regulators, it’s still able to receive funding and tuition through the Department of Veterans Affairs.

  In fact, the agency has not taken any public action against the company, but has posted notice of the DoD’s probation on its website, according to Reveal.

  “The VA has come out and said basically the VA program is available to veterans and continues to be,” he said. “That was after the DOD issued the … put us on probation.”

  Cappelli and other executives previously tried to placate investors earlier this year when the chain revealed enrollment at the college had declined once again to 214,000 students, a stark contrast to the 470,800 students enrolled back in 2010.

  At the time, Cappelli blamed the continued decline in enrollment on the transition the career college has undergone and a decrease in marketing expenditures.

  “University of Phoenix is going through a transition, but we’re building a stronger foundation for future success,” Cappelli said on the call. “We’re working to build a much more competitive and efficient university for the long-term.”

  The company has since reportedly stopped enrollment at 14 campuses and 10 learning centers.

  
• 
  

ribbi

by Ashlee Kieler via Consumerist

uLawsuit Claims Peet’s Coffee & Tea Is Shortchanging Customers With Its French Press Servingsr

4 4 4 9

• 
  What you see on the menu board at Peet’s Coffee & Tea is not what you get, according to one customer who says the chain isn’t serving up as much coffee as it claims: a Chicago-area customer is suing Peet’s over its “press pots,” which come in either 12-ounce or 32-ounce French press containers.

  Despite the fact that the carafes of coffee are advertised as 12 or 32 ounces, the man alleges that the press pots actually contain more than 25% less coffee than that, reports the Chicago Tribune (warning: paywall in effect).

  In his complaint, he says he bought both sizes of the press pots at a Peet’s in Winnetka, IL, and found them lacking.

  But Peet’s Chief Marketing Officer Tyler Ricks says that the sizes listed on the cafe menu refer to the size of the press pot, and not how much liquid they will ultimately contain when the coffee is done brewing.

  “We are committed to honesty and integrity, and we uphold the highest standards,” he said, adding that the company “takes these things very seriously” and it will “absolutely” be looking into the complaint.

  Peet’s sued over French press serving sizes [Chicago Tribune]

  
• 
  

ribbi

by Mary Beth Quirk via Consumerist

uReport: VW Failed To Disclose One Death, Three Injuries To Federal Regulator Databaser

4 4 4 9

• 

  Last month it was reported that Volkswagen may have skirted rules that require car manufacturers to report death and injury claims to the National Highway Traffic Safety Administration. A new analysis of the regulator’s database and lawsuits filed against the company show it failed to report at least one death and three injuries involving its vehicles. 

  Bloomberg, citing lawsuits filed against VW over the last decade, found several instances in which the car company underreported or failed to report injuries or deaths to federal regulators, who use the figures to spot defects and issues with vehicles.

  According to a review of NHTSA’s database and 13 random lawsuits filed against VW, the company only reported nine of the legal actions to regulators.

  Four other lawsuits, filed in 2007, 2008, 2009 and 2014, were never reported, according to Bloomberg and financial adviser Stout Risius Ross’ analysis.

  Under federal law, legal complaints against automakers must be reported to NHTSA within 30 days of the end of the quarter in which the carmaker is notified of the complaint.

  The complaints included a January 2008 fatal accident involving a 2000 Beetle in Portland, OR. During the accident, the vehicle’s side airbags were alleged to have failed to deploy. VW denied the incident included a defect and the case was dismissed.

  Likewise, two of the injury lawsuits filed in Texas were settled, with the company once again denying allegations of defects.

  The most recent case, filed in 2014 in Pennsylvania, is still pending. However, VW once again denies the injuries suffered from the accident were a result of a defect.

  Volkswagen Failed to Report Fatal Incident to Regulator [Bloomberg]

  
• 
  

ribbi

by Ashlee Kieler via Consumerist

uStudy: Shoppers Still Prefer Paper Coupons Over Digital Discountsr

4 4 4 9

• 
  Though we are living in an increasingly digital world with a smartphone app for everything under the sun, when it comes to scoring discounts on everyday products, shoppers would rather stick with what they know best: coupon-clipping the old-fashioned way, with the daily newspaper and a trusty pair of scissors to do the job.

  That’s according to a new report from the folks at CreditCards.com, in a recent look into how consumers are using different methods to find discounts and deals.

  In an August 2015 survey that CreditCards.com commissioned from GfK Custom Research North America, 63% of U.S. credit/debit cardholders who use coupons say when it comes time to get a deal, they most frequently hand over coupons from newspapers, mailings and other paper products.

  Coming in at a distant second is using a discount code online at 17%, followed by presenting a coupon or discount code on one’s phone at just 15% of respondents. As one might expect, older generations are more loyal to paper coupons — which was the only way to use a coupon for a long time — but the survey found that even millennials are using paper coupons twice as much as any other method.

  “Dead trees aren’t dead when it comes to coupons,” said Matt Schulz, CreditCards.com’s senior industry analyst. “Plenty of Americans are still opening their snail mail and reading the Sunday paper,” he added, though he expects paper coupons to eventually lose out to digital methods as people get more comfortable with electronic coupons.

  Overall, about 85% of Americans use coupons, though most of those shoppers only use them occasionally.

  
• 
  

ribbi

by Mary Beth Quirk via Consumerist