Current Investigations

Some dealerships are trying to capitalize on high prices in the used car market and charging fees not disclosed in the original lease agreement to consumers trying to buyout their leased vehicles – your lease buyout price is locked in when you sign the lease. Most consumers don’t know they can get these illegal fees refunded plus may be eligible for statutory damages if they purchased their previously leased vehicle within the last year.

If you purchased a previously leased vehicle in the last year and believe you paid monies not listed in your original lease agreement’s section on buyout, answer a few questions below to determine if you have a potential claim and eligible for our representation for those claims.

Did you Purchase a vehicle you Previously Leased? *

• Yes
• No

Was the Purchase in the Last Year? *

• Yes
• No, it was longer than that

The attorneys at Davis & Norris can investigate your potential claim, please check "Yes" to proceed. *

• Yes
• Maybe, I would like more information

If you paid excessive fees with the purchase, you may be entitled to recover those fees PLUS up to $2000 in statutory penalties.

Please provide us some basic contact information, like your First and Last Name *

First

Last

Email *

Phone *

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Illegal changes to buyout terms can include, but are not limited to:

• Charging a higher price to buy out the vehicle than the buyout provision in the original lease
• Adding fees that weren’t disclosed in the original lease agreement
• Forcing consumers to certify their leased vehicles as roadworthy or as a certified pre-owned vehicle
• Forcing consumers to purchase extended service contracts

What is the Consumer Leasing Act?

For consumers, leasing is an alternative to buying property either with cash or on credit. A lease is a contract between a lessor (the property owner) and a lessee (the property user) for the use of property subject to stated terms and limitations for a specified period and at a specified payment.

The Consumer Leasing Act (15 U.S.C. 1667 et seq.) (CLA) was passed in 1976 to assure that meaningful and accurate disclosure of lease terms is provided to consumers before entering into a contract. It applies to consumer leases of personal property. With this information, consumers can more easily compare one lease with another, as well as compare the cost of leasing with the cost of buying on credit or the opportunity cost of paying cash. In addition, the CLA puts limits on balloon payments sometimes due at the end of a lease and regulates advertising.

Originally, the CLA was part of the Truth in Lending Act and was implemented by Regulation Z. When Regulation Z was revised in 1981, Regulation M was issued and contained those provisions that govern consumer leases.

The Electronic Signatures in Global and National Commerce Act (the E-Sign Act), 15 U.S.C. 7001 et seq., was enacted in 2000 and did not require implementing regulations. On November 9, 2007, amendments to Regulation M and the official staff commentary were issued to simply the regulation and provide guidance on the electronic delivery of disclosures consistent with the E-Sign Act.

The Dodd-Frank Act granted rulemaking authority under the CLA to the Consumer Financial Protection Bureau (CFPB) and, with respect to entities under its jurisdiction, granted authority to the CFPB to supervise for and enforce compliance with the CLA and its implementing regulations. In December 2011, the CFPB restated the Federal Reserve’s implementing regulation at 12 CFR Part 1013 (76 Fed. Reg. 78500)(December 19, 2011).

Today, a relatively small number of banks engage in consumer leasing. The trend seems to be for leasing to be carried out through specialized bank subsidiaries, vehicle finance companies, other finance companies, or directly by retailers.

Key Definitions

The definition of certain terms is necessary to understand the requirements imposed by the CLA. These terms include lease, lessor, lessee, consumer lease, open-end lease, closed-end lease, realized value, residual value, gross capitalized cost, capitalized cost reduction, and adjusted capitalized cost.

Lessee

A lessee is a natural person who enters into or is offered a consumer lease.

Lessor

A lessor is a natural person or organization who regularly leases, offers to lease, or arranges for the lease of personal property under a consumer lease. A person who leases or offers to lease more than five times in the preceding or current calendar year meets this definition.

Consumer Lease

A consumer lease is a contract between a lessor and a lessee:

• For the use of personal property by an individual (natural person);
• To be used primarily for personal, family, or household purposes;
• For a period of more than four months (week-to-week and month-to-month leases do not meet this criterion, even though they may be extended beyond four months); and
• With a total contractual4cost of no more than the threshold amount specified in Appendix C at 12 CFR 1013.2(e)-9.

Specifically excluded from coverage are leases that are:

• • For business, agricultural or made to an organization or government;
  • For real property;
  • For personal property which are incidental to the lease of real property, subject to certain conditions; and
  • For credit sales, as defined in Regulation Z 12 CFR 1026.2(a)(16).

4 Appendix C states that a consumer lease is exempt from these requirements if the total contractual obligation exceeds the threshold amount in effect at the time of consummation. The threshold amount for the period January 1, 2012 through December 31, 2012 is $51,800. See Appendix C for the threshold amounts for different time periods.

A lease meeting all of these criteria is covered by the CLA and Regulation M. If any one of these criteria is not met, for example, if the leased property is used primarily for business purposes or if the total contractual cost exceeds the amount specified in 12 CFR 1013.2(e)-9, the CLA and Regulation M do not apply.

Consumer leases fall into one of two categories: closed end and open end. Since the information required to be disclosed to the consumer will vary with the kind of lease, it is important to note the difference between them. However, to properly understand the difference, realized value and residual value must first be defined.

Realized Value

The realized value is the price received by the lessor of the leased property at disposition, the highest offer for disposition of the leased property, or the fair market value of the leased property at the end of the lease term.

Residual Value

The residual value is the value of the leased property at the end of the lease, as estimated or assigned at consummation of the lease by the lessor.

Open-End Lease

An open-end lease is a lease in which the amount owed at the end of the lease term is based on the difference between the residual value of the leased property and its realized value. The consumer may pay all or part of the difference if the realized value is less than the residual value or he may get a refund if the realized value is greater than the residual value at scheduled termination.

Closed-End Lease

A closed-end lease is a lease other than an open-end lease. This type of lease allows the consumer to “walk away” at the end of the contract period, with no further payment obligation – unless the property has been damaged or has sustained abnormal wear and tear.

Gross Capitalized Cost

The gross capitalized cost is the amount agreed upon by the lessor and lessee as the value of the leased property, plus any items that are capitalized or amortized during the lease term. These items may include taxes, insurance, service agreements, and any outstanding prior credit or lease balance.

Capitalized Cost Reduction

This term means the total amount of any rebate, cash payment, net trade-in allowance, and noncash credit that reduces the gross capitalized cost.

Adjusted Capitalized Cost

This is the gross capitalized cost less the capitalized cost reduction and the amount used by the lessor in calculating the base periodic payment.

General Disclosure Requirements

Lessors are required by federal law to provide the consumer with leasing cost information and other disclosures in a format similar to the model disclosure forms found in Appendix A to the regulation. Certain pieces of this information must be kept together and must be segregated from other lease information. All of the information stated must be accurate, clear and conspicuous, and provided in writing in a form that the consumer may keep.

The institution may provide the general disclosures required by 12 CFR 1013 to the lessee in electronic form, subject to compliance with the consumer consent and other applicable provisions of the E-Sign Act. The E-Sign Act does not mandate that institutions or consumers use or accept electronic records or signatures. It permits institutions to satisfy any statutory or regulatory requirements by providing the information electronically after obtaining the consumer’s affirmative consent. The institution must provide consumers with the following information before consumers can give consent:

• Any right or option to have the information provided in paper or non-electronic form;
• The right to withdraw the consent to receive information electronically and the

consequences, including fees, of doing so;

• The scope of the consent (for example, whether the consent applies only to a particular transaction or to identified categories of records that may be provided during the course of the parties’ relationship);
• The procedures to withdraw consent and to update information needed to contact the consumer electronically; and
• The methods by which a consumer may obtain, after consent and upon request, a paper copy of an electronic record after consent has been given to receive the information electronically and whether any fee will be charged.

The consumer must consent electronically or confirm consent electronically in a manner that “reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent.”

After the consent, if an institution changes the hardware or software requirements such that a consumer may be prevented from accessing and retaining information electronically, the institution must notify the consumer of the new requirements and must allow the consumer to withdraw consent without charge.

Institutions must provide disclosures in the following circumstances. (Advertisement requirements are discussed in the advertising section.)

Prior to or Due at Lease Signing

A dated disclosure must be given to the consumer before signing the lease and must contain all of the information detailed in Section 4 of the regulation.

Renegotiations and Extensions

New disclosures also must be provided when a consumer renegotiates, or extends a lease, subject to certain exceptions.

Multiple Lessors/Lessees

In the event of multiple lessors, one lessor on behalf of all the lessors may make the required disclosures. If the lease involves more than one lessee, the required disclosures should be given to any lessee who is primarily liable.

Advertising

Advertisements concerning consumer leases must also comply with certain disclosure requirements. All advertisements must be accurate. If an advertisement includes any reference to certain “trigger terms” — the amount of any payment, statement of a capitalized cost reduction (e.g., down payment), or other payment required prior to or at lease signing or delivery, or that no such payment is required — then the ad must also state the following:

• That the transaction is for a lease;
• The total amount due prior to or at lease signing or delivery;
• The number, amounts and due dates or periods of the scheduled payments;
• A statement of whether or not a security deposit is required; and
• A statement that an extra charge may be imposed at the end of the lease term where the lessee’s liability (if any) is based on the difference between the residual value of the leased property and its realized value at the end of the lease term (12 CFR 1013.7(d)(2)).

An advertisement for an open-end lease also must include a statement that extra charges may be imposed at the end of the lease based on the difference between the residual value and the realized value at the end of the lease term.

If lessors give a percentage rate in an advertisement, the rate cannot be more prominent than any of the other required disclosures. They must also include a statement that “this percentage may not measure the overall cost of financing this lease.” The lessor cannot use the term “annual percentage rate,” “annual lease rate,” or any equivalent term.

Some fees (license, registration, taxes, and inspection fees) may vary by state or locality. An advertisement may exclude these third-party fees from the disclosure of a periodic payment or total amount due at lease signing or delivery, provided the ad states that these have been excluded.

Otherwise, an ad may include these fees in the periodic payment or total amount due, provided it states that the fees are based on a particular state or locality and indicates that the fees may vary.

For an advertisement accessed by the consumer in electronic form, the required disclosures may be provided to the consumer in electronic form in the advertisement, without regard to the consumer consent or other provisions of the E-Sign Act. An electronic advertisement (such as an advertisement on an Internet website) that provides a table or schedule of the required disclosures is considered a single advertisement if the advertisement clearly refers the consumer to the location where the additional required information begins. For example, in an electronic advertisement, a term triggering additional disclosures may be accompanied by a link that directly connects the consumer to the additional disclosures.

Limits on Balloon Payments

In order to limit balloon payments that may be required of the consumer, certain sections of the regulation call for reasonable calculations and estimates. These provisions protect the consumer at early termination of a lease, at the end of the lease term, or in delinquency, default, or late payment status. The provisions limit the lessee’s liability at the end of the lease term and set reasonableness standards for wear and use charges, early termination charges, and penalties or fees for delinquency.

Penalties and Liability

Criminal and civil liability provisions of the Truth in Lending Act also apply to the CLA. Actions alleging failure to disclose the required information, or otherwise comply with the CLA, must be brought within one year of the termination of the lease agreement.

Record Retention

Lessors are required to maintain evidence of compliance with the requirements imposed by Regulation M, other than the advertising requirements under Section 7 of the regulation, for a period of not less than two years after the date of disclosures are required to be made or an action is required to be taken.

If someone transferred money out of your account, without your permission, and you were not reimbursed for the loss, then you may have claim.

Answer a few questions below  to determine whether you have a compensable claim

Before we get to the qualifying questions, let's start with some basic contact information. What is your First and Last Name? *

First

Last

Which state do you currently live in? *Click to choose your StateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Phone *

Email *

Email

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Have you had money stolen from your Debit Card or through an electronic transfer (such as Venmo or Zelle) in the last year? *

• Yes
• No

Which platform was your money stolen from? *

• Debit Card
• Venmo
• Zelle
• Chime
• PayPal
• Other

If "Other," which platform? *

How was the money stolen? *

• I was tricked into transferring it
• Someone else transferred the money out of my account

Did you report the money being stolen? *

• Yes
• No

After you reported it, did you get the money back? *

• Yes
• No

What was the approximate date of your money being stolen? *

What was the approximate amount of money stolen? *

Submit

What is EFTA?

The  Electronic Funds Transfer Act (EFTA), also known as Regulation E, created protections for consumers using certain electronic banking and financial services such as debit card transactions, electronic withdrawals, transfers, and deposits.

After the transition from physical checks to electronic monetary transfers, Congress enacted the EFTA in 1978 to establish trust and predictability amongst consumers using electronic methods of payments where errors or fraud occur.

The Act requires financial institutions to allow consumers to dispute incorrect financial statements, and if they should not agree, the act specifies means of resolving the dispute between the consumer and institution.

Financial institutions are required to give consumers detailed information regarding the duties, rights, and liabilities of the consumer and institution regarding electronic fund transfers. I

n situations where fraud occurs, the Act requires consumers and the financial institutes to communicate the fraud within certain timeframes to receive limited liability for the transaction. Consumers will only be held liable for $50 of a fraudulent transaction if reported within 2 days, $500 if reported within 60 days, and potentially unlimited liability after 60 days.”

Identity Theft in 2021 was 23% Higher than All-Time High

This is according to a recent report by the the Identity Theft Resource Center (ITRC), a nationally recognized nonprofit organization established to support victims of identity crime. Similarly, the number of data events involving sensitive personal information like SSNs increased from 80% to 83% in the same period. However, they remained below the record high of 95% set in 2017.

Although the number of victims (293,927,708) reduced by 5% in 2021, the researchers described the number as “excessively high.” They attributed the small reduction to cybercriminals focusing on specific data types instead of conducting mass breaches.

What to do if you get a Data Breach Notice

CyberScout suggests the following:

1. Read the notice carefully to learn what information may have been exposed and how. (Keep the notice in case you ever need to prove that your data was compromised through no fault of your own.)

2. Review the breached account. Identify what information it contained and what was compromised. Look for unauthorized activity, such as a change in address or telephone number.

3. Know exactly what’s at risk. If it’s debit or credit card numbers only, there’s a good chance someone will try to use them. On the upside, exposure is limited and, if your bank thinks the risk is high, it will automatically reissue new cards (effectively shutting down the identity thief). Degree of risk gets stickier when data like Social Security numbers, birth dates, and addresses are stolen. This information has a long shelf life and can be traded internationally among organized criminals. It’s valuable because, unlike a single credit card number, it can spawn dozens of new accounts. While it’s less likely to be used than a single stolen credit card number (which requires much less time and work), potential damage to your good name is greater.

4. If you’re offered a year of free credit monitoring, take it.

5. Pay extra attention to your account and billing statements. Check for charges that aren’t yours.

6. Check your credit report and watch for other fraud. After about 30 days (long enough for fraudulent activity to show up), log on to annualcreditreport.com to get a free copy of your credit report from each of the three major credit bureaus. Look for any unusual activity. Investigate suspicious activity and stay on top of it until the matter is resolved. Also, look for signs of fraud in your medical files, on your Social Security statement, in insurance claims, or in public records.

7. Change all user access credentials. If you use the same passwords for other financial institutions, change them. Watch financial statements—on paper and online—for unauthorized transactions. Be aware of potential email, phone and snail-mail scams. Enable text and email alerts when possible.

8. Notify existing creditors of the breach. Consider canceling your cards and getting new ones. Take advantage of issuers’ services that alert you to unusual transactions.

9. Place a fraud alert on your credit file. An alert placed with any one of the three major credit bureaus signals to potential creditors that you could be a victim of identity theft.

But Most Importantly – Contact Davis & Norris if you have been the Victim of a Data Breach

Current Data Breaches Davis & Norris is Pursuing:

T-Mobile Blames Bad Actor for Data Breach

On August 17th, 2021, T-Mobile stated on one of its websites that “[l]ate last week we were informed of claims made in an online forum that a bad actor had compromised T-Mobile systems.”

T-mobile, in an update to that post, states ” [w]e have sent communications to millions of customers and other affected individuals and are providing support in various ways. This includes:

• Offering two years of free identity protection services with McAfee’s ID Theft Protection Service to any person who believes they may be affected
• Recommending that all eligible T-Mobile customers sign up for free scam-blocking protection through Scam Shield
• Supporting customers with additional best practices and practical security steps like resetting PINs and passwords
• Publishing a customer support webpage that includes information and access to these tools at https://www.t-mobile.com/brand/data-breach-2021.”

The website identified in the last bullet point appears to be down as of August 23rd, 2021.

What Data was Exposed and How Many were Affected?

T-mobile states the following information was exposed:

• First and Last Names
• Dates of Birth
• Social Security Numbers
• Driver’s License and ID card information, and
• IMEI and IMSI information – identifier numbers associated with a mobile phone

One report states that the T-Mobile data breach exposed the personal info of more than 47 million people. According to a T-Mobile website, over 40 million of those exposed are former or prospective T-mobile customers. The rest are current customers, including prepaid customers.

What Should You Do?

Multiple class action lawsuits have been filed concerning T-Mobile’s data breach. If you are included in the class definition for one of these lawsuits, then you can wait for the outcome of it and receive whatever is determined by either judgment or settlement.

However, The California Consumer Privacy Act grants consumers a limited private right of action against the unauthorized access and exfiltration, theft, or disclosure of certain types of personal information, including the right to seek statutory damages.

The attorneys of Davis & Norris have brought thousands of individual claims in arbitration. In most cases, whatever you recover in arbitration is yours to keep. Typically, our fees are submitted and paid separately from the amounts we recover for our clients. Additionally, arbitration offers an expedited means to get resolution of a legal claim versus litigation through the court system.

How do I signup with Davis & Norris?

To determine if you qualify for our case, please answer a few questions below and a member of our team will evaluate your potential claims against T-Mobile.

Why is this Data Breach Unique?

As a recent article by Wired states, unfortunately “there’s… the reality that most people’s data has been leaked at some point or another.” This can potentially lead to individuals not caring as much when a data breach is announced.

The T-Mobile Data Breach is one that you absolutely must pay attention to, because “the breach offers potential buyers a blend of data that could be used to great effect, and not in ways you might automatically assume.”

The article goes on to explain a few scenarios:

““This [Data Breach] is ripe for using the phone numbers and names to send out SMS-based phishing messages that are crafted in a way that’s a little bit more believable,” says Crane Hassold, director of threat intelligence at email security company Abnormal Security. “That’s the first thing that I thought of, looking at this.”

Yes, names and phone numbers are relatively easy to find. But a database that ties those two together, along with identifying someone’s carrier and fixed address, makes it much easier to convince someone to click on a link that advertises, say, a special offer or upgrade for T-Mobile customers. And to do so en masse.

FDA Safety Communication Concerning Philips Respironics Recall

The U.S. Food and Drug Administration (FDA) is alerting people who use Philips Respironics ventilators, BiPAP, and CPAP machines and their health care providers that Philips Respironics has recalled certain devices due to potential health risks.

What Happened with these Devices

The polyester-based polyurethane (PE-PUR) sound abatement foam, which is used to reduce sound and vibration in these affected devices, may break down and potentially enter the device’s air pathway. If this occurs, black debris from the foam or certain chemicals released into the device’s air pathway may be inhaled or swallowed by the person using the device.

Potential Health Risk from Inhaling or Swallowing PE-PUR Form

Polyester-based polyurethane (PE-PUR) is a sound abatement foam used to reduce sound and vibration in these devices and other medical equipment. The PE-PUR foam in the affected Philips Respironics CPAP, BiPAP, and ventilator devices may:

• Break down (degrade) into particles which may enter the device’s air pathway and be inhaled or swallowed by the user
• Release certain chemicals into the device’s air pathway, which may be inhaled

These issues can result in serious injury, which can be life-threatening, cause permanent impairment, and require medical intervention to prevent permanent damage.

To date, Philips Respironics has received several complaints about the presence of black debris/particles within the device’s air pathway. Philips Respironics also has received reports of headache, upper airway irritation, cough, chest pressure, and sinus infection, which may be related to this issue, though the cause of the symptoms cannot be definitively linked.

The potential risks of particulate exposure include irritation to the skin, eye, and respiratory tract, inflammatory response, headache, asthma, and toxic or carcinogenic effects to organs, such as kidneys and liver.

The potential risks of exposure to chemicals released into the device’s air pathway from the PE-PUR foam include headache; dizziness; irritation in the eyes, nose, respiratory tract, and skin; hypersensitivity; nausea/vomiting; and toxic and carcinogenic effects.

The foam degradation may be exacerbated by high heat and high humidity environments, and by use of unapproved cleaning methods, such as ozone.

Philips Respironics Recall Device List

CPAP and BiPAP Devices

Ventilators

What if I have a Device on the Philips Respironics Recall List

You should contact your healthcare provider immediately. If you have used a Philips Respironics Device for over six (6) months, you can use our case evaluator below to have an attorney review your potential case and discuss potential options.

Why Choose Davis & Norris for Your Philips Respironics Recall Claim

The National Law Review published “A Simple Guide to CPAP Lawsuits and Settlements.” When evaluating the need for an attorney to handle your CPAP lawsuit, it suggests a three step process:

• Step 1: Determine Whether Your Make and Model was Recalled

• Step 2: Look for a Related Injury

• Step 3: Contact a CPAP Attorney

For Step 1, you can review the list above. As to Step 2, the National Law Review points out, the science and the claims are in their early stages and it is not yet completely clear which types of injuries and illnesses can be definitively linked to the use of the recalled devices. However, as you would expect, you cannot expect to relate the first use of a recalled CPAP device to being diagnosed with an injury or illness the very next day. There is a latency period from when you first started using the recalled device, to when you first developed an injury. Once again, the science and claims are unsettled and different injuries and illnesses have different latency periods. Most forms of cancer will be reviewed by experts to determine a causal link. Other than cancer, an individual may have suffered severe lung or respiratory injuries (like pulmonary fibrosis) to inhalation of the PE-PUR particles.

The attorneys of Davis & Norris have expertise in handling a variety of exposure claims and are here to give you the dedicated attention your claim needs. Contact us today and we will answer any questions you may have about the Philips Respironics Recall.

Robinhood Restricted Stock Purchases – Lockout Leads to Lawsuits by Customers

On Thursday, January 28th, 2021, the online brokerage Robinhood restricted its customers from purchasing certain stocks on its platform. In an interview with CNBC, Robinhood CEO Vlad Tenev said the decision to halt trading of GameStop, AMC and other stocks was “difficult,” but the company did so “to protect the firm and protect our customers.”

However, Robinhood customers are crying foul. In fact, numerous Robinhood customers filed class-action lawsuits against the company after it barred traders from buying shares in stocks promoted by WallStreetBets, a popular Reddit group for investors.

Robinhood customers may be leery of Tenev’s suggestion that the decision to stop purchase in those stocks was in best interest of its customers, because it recently paid $65M to the SEC for allegations that it failed to live up to its obligations to its customers by fulfilling customer orders in way that benefited its own financial interests over its customers.

The SEC investigation lead to a number of class action lawsuits being filed with similar allegations.

If you were affected by Robinhood’s recent actions, you may be able to pursue an individual claim against the company.

The attorneys at Davis & Norris are currently pursuing claims on behalf of Robinhood customers. Our cases are not class actions, but individual cases seeking compensation on the facts of your potential claim. Frequently, our firm is able to use ADR forums to expedite recovery for our clients much faster than litigation.

Answer the following questions and one of our attorneys will start evaluating your claim.

As a reminder, there is never out of pocket expenses for our attorneys pursuing your claims. Our firm does not make any money unless we recover for you.