San Diego U-T Editorial: Gov. Brown And The PUC: What, Me Worry?
by The Editorial Board, San Diego Union-Tribune
This is maddening. At any point over the past year, Brown could have given guidance to lawmakers on how to structure PUC fixes that he thought appropriate. Instead, apparently discerning a world in which it’s cool for regulators and utilities to have a buddy-buddy relationship, the governor ended up blocking all reforms. … Despite [scandalous] revelations, the PUC has shrugged off calls to reopen negotiations on San Onofre and has done little to cooperate with investigators… [and] pretends that $850 million in already-planned PG&E infrastructure improvements are a penalty. This is the corrupt, petty culture that Jerry Brown thinks is worth preserving. Read More ›
San Jose Mercury News Editorial: Brown’s Veto Damages PUC Reform Effort
by The Editorial Board, San Jose Mercury News
Gov. Jerry Brown’s rejection of crucial reforms of the scandal-plagued California Public Utilities Commission is appalling. … The six bills Brown vetoed would have tightened the rules on communications between utility executives and PUC members to try to halt the pattern of wink-and-nod backroom deals. The most egregious example was helping PG&E get the judge it wanted for a rate-setting hearing. The legislation also outlined simple standards for when a commissioner should be disqualified from a case and added requirements for public meetings. Read More ›
California Increases Scrutiny Of Cellphone Surveillance
by Ali Winston, The Center For Investigative Reporting
The Electronic Communications Privacy Act means law enforcement will need a search warrant for access to digital records, including data, content, metadata and geolocation information stored on a device or server. The law also calls for warrants to search electronic devices, a requirement previously affirmed by the U.S. Supreme Court in a 2014 decision. … The other recently passed law requires local government agencies to notify the public when law enforcement seeks to acquire a cell-site simulator to track transmissions and the location of individual mobile devices. Privacy policies also must be published before such devices can be used. Read More ›
For-Profit Colleges Accused Of Fraud Still Receive U.S. Funds
by Patricia Cohen, The New York Times
For-profit schools enroll about 12 percent of the nation’s college students, yet they account for nearly half of student loan defaults. … Kaplan [Career Institute’s] schools, including its online California law school, where only one in five students graduates, received $776.3 million worth of federal student loans and grants last year. Because it lacks bar association accreditation, most graduates outside California are not allowed to take a bar exam. Read More ›
California Now Has The Nation’s Best Digital Privacy Law
by Staff, Wired magazine
[CFC-backed SB 178] enjoyed widespread support among civil libertarians like the American Civil Liberties Union and the Electronic Frontier Foundation. … California has long led the way in privacy protection. Voters amended the state constitution in the 1970s to provide explicit privacy rights far more robust than those guaranteed by the Fourth Amendment of the US Constitution. But while the state amendment ensured a right to privacy for all Californians, lawmakers couldn’t envision the technological advances that would come in the decades to follow. Read More ›
San Bruno Officials Denounce Gov. Brown’s Veto Of CPUC Reforms
by KPIX 5, CBS Local San Francisco
One of the bills Brown vetoed Friday, Senate Bill 660, would have banned ex parte, or private communications, between regulators and utility executives in some proceedings.
Leno, the bill’s author, said it was intended to rebuild public trust in the CPUC. “Ratepayers have already paid dearly for California’s failure to act, and the status quo is simply unacceptable,” Leno said in a statement Friday. “Revelations of backroom deals and breaches of transparency have undermined public trust and weakened public safety. Our efforts to reform the CPUC will continue.” Read More ›
Uber Sued Over Alleged Rapes By Drivers
by Marisa Kendall, The Recorder, San Francisco
“Unfortunately, despite its self-proclaimed ‘commitment to safety,’ opening the Uber app and setting the pick-up location has proven to be the modern day equivalent of electronic hitchhiking,” the lawyers wrote. “Buyer beware—we all know how those horror movies end.” … The two assaults are part of a pattern of “similarly heinous, but avoidable attacks,” the Jane Does’ lawyers wrote. They claim more than 30 sexual assaults by Uber drivers against passengers have been reported in the media over the past two years.
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CFPB May Let You Sue Your Bank Instead Of Going To Arbitration
“Consumers should not be asked to sign away their legal rights when they open a bank account or credit card,” CFPB Director Richard Cordray said. “Companies are using the arbitration clause as a free pass to sidestep the courts … ” In a first step toward potential new rules, the CFPB is publishing an outline of proposals under consideration in preparation for forming a small business review panel to gather feedback from industry stakeholders. … [New rules would apply to] credit cards, checking and deposit accounts, prepaid cards, money transfer services and several types of loans. Read More ›
CFPB To Consider Rules That Would Revoke Banks’ “License To Steal”
by Chris Morran, Consumerist
Earlier this year, the Bureau released its first report on arbitration in the financial products sector. It found that while the clauses are incredibly prevalent — 92% of prepaid debit cards and 88% of cellphone contracts use them — most consumers are completely unaware if they are affected. According to the CFPB, of those Americans constrained by arbitration agreements, fewer than 7% understood that this meant they had given up their right to file a lawsuit. “Consumers should not be asked to sign away their legal rights when they open a bank account or credit card,” said CFPB Director Richard Cordray in statement. Read More ›
L.A.-Based Auto Lender Must Pay $48M In Fines, Refunds For Illegal Collections
by Ashlee Kieler, Consumerist
Westlake Services, which specializes in purchasing and servicing auto loans, including many subprime and near-subprime loans, purchased loans from auto dealers nationwide. Wilshire Consumer Credit, a wholly owned subsidiary of Westlake, offers auto title loans directly to consumers, largely via the Internet, and services those loans. … In addition to deceiving consumers with illegal debt collection practices, the CFPB found Westlake and Wilshire violated consumer financial protection laws with advertising, customer relations and account servicing. Read More ›
CFC’s 2015 Legislative Agenda: Fate Of 2-Year Bills Now Determined
Consumer Federation of California advocated for or against dozens of bills in the state Legislature this year. Click to read the results for several key pieces of legislation. Read More ›
California Now Allows Firms To Tell Consumers A ‘Made In USA’ Lie
by David Lazarus, Los Angeles Times
Gov. Jerry Brown signed a bill, SB 633, this month that allows California companies to say “made in America” as long as their products are mostly made in America — 90% American-made, to be precise. … Richard Holober, executive director of the Consumer Federation of California, said manufacturers never had trouble in the past meeting the state’s made-in-America rule. Loosening the state’s 100% standard, he said, puts “those businesses who go the extra mile to keep jobs and manufacturing in the USA at a disadvantage” and “gives an advantage to companies that cut corners.” Read More ›
Oakland Sues Wells Fargo For Predatory Lending Against City’s Black, Hispanic Residents
by Mike Blasky, Oakland Tribune
City Attorney Barbara Parker said the bank targeted minority borrowers — including churches — for predatory mortgage loans in violation of the Fair Housing Act and California’s Fair Employment and Housing Act. … Parker on Tuesday said no bankers were held personally responsible for the foreclosure crisis, which in part forced Oakland to lay off 80 Oakland officers in 2010 and make drastic cuts to other departments. Read More ›