California not among states that OK bank settlement

More than 40 states signed onto a proposed $25-billion deal with major mortgage servicers over faulty foreclosure practices. New York, Nevada and Delaware joined California in holding out for better terms.

 

Reporting from Los Angeles and Washington—

More than 40 states signed onto a proposed $25-billion settlement with major mortgage servicers over faulty foreclosure procedures, but California, New York and other key states were still not among them.

"This enables us to move forward into the very final stages of remaining work," said Iowa Atty. Gen. Tom Miller, who heads the multi-state settlement negotiations. "Federal and state officials, as well as representatives from the banks, continue to address matters that they must complete before finalizing any settlement."

Miller would not comment further.

The proposed settlement had hung in limbo most of the day as California and other key states pushed past the Monday deadline — an extension of a Friday deadline — to try to get better terms for homeowners from the nation's five major loan servicers.

Miller's decision to move forward, however, doesn't stop California and the other states from joining the agreement later.

California Atty. Gen. Kamala Harris was locked in last-minute negotiations with servicers and officials from other states and the Obama administration as the deadline expired with no decision on whether they would sign on, according to a person familiar with the discussions.

Negotiations, however, remained fluid, said the person, who was not authorized to speak publicly and requested anonymity.

Officials in California, New York, Nevada, Delaware and other states appeared to feel little obligation to meet Miller's deadline, which was set to see whether enough attorneys general would sign onto the deal to make a settlement feasible.

Copyright © 2012, Los Angeles Times

Prepaid phone card marketers to pay $2.32 million over false claims about total minutes

Several marketers of prepaid calling cards will pay $2.32 million as part of a settlement to resolve charges that they made false claims about the number of minutes on prepaid cards they advertised to immigrant communities, the Federal Trade Commission said today.
The settlement resolves FTC claims brought against defendants Millennium Telecard, Millenium Tele Card, Coleccion Latina, and Telecard Center USA, and their principal Fadi Salim.
The settlement does not constitute an admission by the defendant that the law was violated.
Last May, the FTC filed a complaint in U.S. District Court in New Jersey, charging that the defendants targeted immigrants using calling cards such as Africa Magic, Hola Amigo, and Viva Ecuador. The defendants' prepaid calling cards are sold online, at newsstands, grocery and convenience stores, and kiosks nationwide, in addition to the defendants New Jersey store where they are sold wholesale and retail.
Advertisements (both online and point-of-sale posters) made claims about the number of minutes calling cards provided to locations including Argentina, Brazil, the Dominican Republic, Ecuador, Mexico, Pakistan, Poland, Vietnam, Ghana, Nigeria, and El Salvador. But consumers didn't receive the minutes advertised.
In testing by the FTC, the cards were found to have, on average, only 45 percent of the advertised minutes. Of the 141 cards tested, more than 98 percent failed to deliver the number of minutes advertised on the point-of-sale posters. The FTC also alleged the cards carried hidden fees, such as "hang-up fees" and weekly fees disclosed in tiny print and vague terms difficult to understand in any language.
As part of the settlement, the defendants are also required to "clearly and prominently" disclose fees or charges, and are barred from misrepresenting the amount of time on prepaid cards.
This settlement is part of an ongoing FTC effort to address deceptive advertising and marketing in the prepaid calling card industry.
source - Prepaid Phone Card Marketers Agree to Pay $2.32 Million to Settle FTC Charges [FTC]