| Volume 139 Number 1 |
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Governor Brown signs bill allowing California consumers to sue banks over bogus accounts. The bill protects the right of consumers to sue banks alleged to have created fraudulent accounts in their name. The legislation was prompted by the ongoing Wells Fargo & Co. scandal. It specifically prohibits banks from requiring disputes over fraudulent accounts to be sent to private binding arbitration, instead of being heard in a court. Click here for more.
The People’s Lawyer’s Tip of the Day
The law limits how long you may be sued for a debt. In Texas most debts have a four-year limitation period. The time limit applies to the original debt as well as any subsequent debt collectors. Click here for more.
Freedom Debt Relief faces federal lawsuit
Federal regulators have sued debt settlement service provider Freedom Debt Relief for what it considers deceptive business practices. The Consumer Financial Protection Bureau (CFPB) alleges the company charges consumers without settling their debts, requires them to negotiate their own settlements, provides misleading information about fees and services and does not inform consumers of their right to money they deposit. CFPB Director Richard Cordray says Freedom Debt Relief misled consumers about its clout with lenders, all the while knowing it would not actually negotiate with creditors. The government's lawsuit seeks compensation for customers, civil penalties, and an injunction to prevent future "unlawful conduct." Click here for more.
Your Money
5 money moves retirees should make before the end of the year: 1. Take your required minimum distributions from your retirement plan. Once you turn 70-1/2 years old, you have to start taking required minimum distributions based on tables provided by the IRS. If you don't, you'll face a huge 50% penalty on the amount you should have withdrawn. 2. Look to harvest tax losses in your investment portfolio. Losing money on your investments is never fun, but it doesn't have to be a complete disaster. The tax laws allow you to claim capital losses on investments that have lost you money. 3. Get your deductible expenses paid. 4. Consider doubling up on key deductions before they disappear. The current tax reform plan proposes major changes to taxes, including the elimination of deductions for major expenses like medical bills and state and local income taxes. It could be worthwhile to pay some extra deductible expenses before 2017 ends, essentially doubling up on certain deductions. Possibilities include making 2018 charitable contributions early, prepaying taxes that are due in 2018, and having medical work done now, rather than later. 5. Get your tax documents together. Click here for more.
For the Lawyers
Second Circuit affirms dismissal based on Spokeo. Plaintiff filed suit against defendants, alleging willful violations of the Fair and Accurate Credit Transactions Act of 2003 (FACTA), 15 U.S.C. 1681c(g). The Second Circuit affirmed the district court's dismissal of plaintiff's second amended complaint for lack of subject matter jurisdiction. On the basis of the record and plaintiffs' affirmative burden to establish subject matter jurisdiction by a preponderance of the evidence, and informed by the findings of other district courts as to this specific issue, the court concluded that the district court's findings were not clearly erroneous. The court held, however, that a complaint must be dismissed without prejudice where the dismissal was due to the court's lack of subject matter jurisdiction. Katz v. Donna Karan Co., (2nd Cir. 2017). Click here for more.