Oregon Department of JusticeCivil Enforcement Division

Financial Fraud and Consumer Protection Section

Overview

• Who we are• Top 10 complaints (2014) • Laws we enforce• Legislative Highlights (2015)• Tools and Resources• Results• Top 10 Scam Avoidance Tips

Who we areThe Consumer Protection Section

• 14 attorneys • 7 investigators• 6 enforcement

officers• Support staff• Law clerks• Multiple volunteers

• Within Oregon DOJ.• In a year: we receive

over 40,000 complaints over the phone and 12,000 written complaints….

• This does not include referrals from many other sources….

Top 10 complaints from 2014

• #1 -IRS imposter calls• #2 -Subscriptions• #3 -Telecom. related• #4 – Auto sales• #5 - Financial Services• #6 – Health related

• # 7 -International money transfer schemes

• #8 – Home Ownership Issues

• #9 –Collection Agencies• #10 – Hair, Nail & Skin

Services (Forever Young)

Laws we EnforceCivil Claims available

• The Unlawful Trade Practices Act• Financial Exploitation of the Vulnerable– Focus on elder abuse

• Antitrust enforcement• The Oregon False Claims Act• Racketeering--civil• Other claims….

Laws we enforceConsumer Protection Violations

• Must occur in the “course of the person’s business, vocation, or occupation.”– ORS 646.607 and ORS 646.608

• Can involve an “unconscionable tactic” – This is a general catch-all------- OR

• Can include misrepresentations: – specific laundry list of misrepresentations and/or

a failure to disclose

2015 legislative highlightsDOJ bills that passed

• Oregon Student Information Protection Act– Businesses can’t target using student data

• Data breaches – AG can enforce/must notify• Anti-phishing – can’t trick out personal data• Telephonic Sellers – now includes business opportunity solicitations

• CID Service – ORCP 7 sufficient

2015 legislative highlightsnon- DOJ bills that passed

• Going out of business sales – posting requirement• Toxic Free Kids Act – Oregon Health Authority to post;

manufacturers must cease use or get a waiver;• Voids payday, title loan or finance loan – unlicensed $50K

loan or less void unless DCBS determines otherwise;• Dealer doc prep fees – requires car dealers to actually use

processing fees for processing documents to complete transaction;

• Reverse mortgages – requires lenders to provide clear disclosures of terms and what can happen upon default;

2015 legislative highlightsnon- DOJ bills that passed

• Cancelling cable/telecom service – now you can terminate a contract if a party to the contract dies;

• College Financial Aid – prohibits third parties that distribute funds from charging certain types of fees;

• GAP waiver – prohibits car dealers from selling guaranteed asset protection waiver as part of a retail installment agreement;

• ADAD – prohibits automatic dialing unless recipient can terminate within first 10 seconds and any future calls.

• Mortgage payoff statements – allows borrowers to rely on payoff statements to satisfy a loan agreement. However, lenders can amend such statements anytime before…

Our toolsCivil Investigative Demands

• Pre-lawsuit • Sent to business • We can seek records or sworn

testimony• Non-production means we can shut

them down • Not reciprocal

Our toolsAssurance of Voluntary Compliance

• Like a consent decree; • Filed in court • No admission of liability • Injunctive terms • Money (restitution and for penalties)• Becomes judgment upon breach• Required to seek this before a lawsuit

Our toolsLitigation

•Civil lawsuits • Injunctions–restraining orders

•Money judgments

ResourcesWe will –and have—worked with:

• National Association of Attorney Generals– Every state AG’s office

• DCBS/DFCS• OSP• DA’s offices• Sheriff’s Offices• PPB/other city PD• Other state agencies• Law firms/private

• CFPB• FTC• FCC• IRS• FBI• OIG offices from

different agencies• Banks and other

financial entities

ResourcesInvestigations include targets within:

• Telecommunications• Pharmaceutical – And health care

businesses generally• Mortgage/financial• Debt collection/debt

management• Construction related

companies

• Telemarketing• For profit schools• Auto dealerships and

manufacturers• Small businesses -

including one person

ResourcesSome Limitations

• We are the State of Oregon’s attorney• We are not private counsel• We must use discretion on which cases to pursue

because…..• Factors include:– Extent of damage; egregiousness– Our available resources, logistics, personnel– Evidence availability– Whether there is, indeed, a law broken.

ResultsAssurances of Voluntary Compliance

ResultsJudgments, Orders and Contempt

Top 10 Scam Avoidance Tips

• Become Educated• Join the Scam Alert

Network• Reduce Junk mail• Check out the business

before you buy• Reduce Telemarketing

calls

• Understand that wiring money is like sending cash

• Order your free annual credit report

• Read the fine print• Sleep on it• Report Fraud

Filing a Complaint

Report and Contact info

Oregon Department of JusticeCivil Enforcement DivisionFinancial Fraud/Consumer Protection Section1162 Court Street NESalem, Oregon 97301503-934-4400Attorney-in-Charge Jonathan Grouxjonathan.groux@doj.state.or.us