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☆ OpenAI's legal headaches are adding up
▼ + stars: | 2024-03-01 | by ( Geoff Weiss | ) www.businessinsider.com time to read: +3 min

Even as it promises to disrupt the economy, OpenAI's legal headaches are adding up. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementOn Wednesday, The Wall Street Journal reported that the Securities and Exchange Commission was investigating whether OpenAI misled investors. AdvertisementIn December, The New York Times filed a suit against OpenAI and Microsoft, alleging Times articles had been used to train chatbots. In July, the FTC also began investigating OpenAI over data and privacy concerns to determine whether the company was in violation of consumer-protection laws.

Persons: Elon Musk, OpenAI, —, Tesla, Musk, Sam Altman, Jonathan Franzen, John Grisham, George R.R, Martin, That's, Sora, Axel Springer Organizations: SEC, Service, Microsoft, Street Journal, Securities and Exchange Commission, The New York Times, OpenAI, Times, Federal Trade Commission, FTC, Google, Business Locations: OpenAI

Payment apps have come under scrutiny by lawmakers and regulators as their usage skyrockets. That ease of use has 80% of Americans using mobile payment apps, according to a recent survey by NerdWallet. Transaction volume across all payment app service providers in 2022 was estimated at about $893 billion, according to the Consumer Financial Protection Bureau. Lawmakers are also calling on payment app companies to clarify their reimbursement policy if consumers get scammed and to make it easier for users to report fraud. In the meantime, experts say that consumers need to understand how these apps work, the fees that may be charged and the risks involved in storing money in a mobile payment app.

Persons: Amy Zirkle, Sen, Sherrod Brown Organizations: Consumer Financial, Finance, Democratic, Capitol, Banking Locations: Ohio

☆ NRA trial: Wayne LaPierre should pay gun rights group $4.3 million for misusing charitable funds, jury finds
▼ + stars: | 2024-02-23 | by ( Emma Tucker | Sabrina Souza | ) edition.cnn.com time to read: +3 min

In its verdict, the jury found LaPierre should pay the powerful gun rights group $4.3 million in damages for mismanagement and misspending charitable funds on lavish personal trips, no-show contracts and other questionable expenditures. The panel also found the group’s former CFO Wilson Phillips should pay back $2 million for breaching his fiduciary duties as an executive. Shortly after the verdict was read, New York Attorney General Letitia James called the jury’s decision against the National Rifle Association and its top executives, a “major victory” in a post on X. The jury found the NRA was not liable for only one claim, which asked whether LaPierre’s post-employment contract was an improper transaction. The jury found the New York Attorney General’s Office did not prove the transaction had not received proper approval from the NRA board.

Persons: Wayne LaPierre, LaPierre, Wilson Phillips, Letitia James, ” James, “ Wayne LaPierre, Christine Cornell Organizations: CNN, New York, National Rifle Association, NRA, Court

☆ Outside the US, teens’ social media experiences are more tightly controlled
▼ + stars: | 2024-02-13 | by ( Samantha Murphy Kelly | ) edition.cnn.com time to read: +4 min

Here’s a closer look at how child safety is regulated on social media platforms in other parts of the world. “It will take a couple of years until the first round of the audits of social media companies mandated in the DSA are published,” he said. Can social media companies be sued in the EU? At the same time, however, China’s government also largely blocks access to social media platforms as part of its efforts to monitor and censor the internet. And in Brazil, a data protection law includes special protections for children’s data, including consent to share personal data.

Persons: Here’s, Apple –, what’s, haven’t, Fernando Hortal Foronda, ”, “, Asha Allen, Brian Fung, Clare Duffy Organizations: CNN, European, Meta, Apple, Digital Services, Companies, Big Tech, EU, European Consumer Organisation, DSA, ” Tech, European Commission, EU’s Digital Service, Centre of Democracy and Technology, Justice, European Union, Minor Protection Locations: EU, Centre of Democracy and Technology Europe, China, India, Brazil

☆ Don’t let AI hype lead you into illegal ‘AI-washing,’ SEC chair warns companies and investment advisers
▼ + stars: | 2024-02-13 | by ( Brian Fung | ) edition.cnn.com time to read: +2 min

Publicly traded companies that misleadingly or untruthfully promote their use of artificial intelligence risk engaging in “AI-washing” that can harm investors and run afoul of US securities law, said SEC Chair Gary Gensler in a speech on Tuesday. They also shouldn’t lie about whether they use an AI model or how they use AI in specific applications, Gensler added. One would be the intentional use of AI to facilitate securities fraud, Gensler said Tuesday. The SEC could target those who deploy AI in ways that create reckless or knowing disregard for the risks to investors, Gensler said. He said the SEC could also investigate those who place fake orders in violation of securities law, or investment advisers who place their own interests ahead of their clients’.

Persons: Gary Gensler, “ We’ve, ” Gensler, Gensler, Alvaro Bedoya Organizations: Washington CNN, Securities and Exchange Commission, Publicly, SEC, Yale Law School, Federal Trade Commission

☆ EU tells Hungary its 'sovereignty' law violates EU law
▼ + stars: | 2024-02-07 | by ( ) www.cnbc.com time to read: +1 min

Hungary's new law on "protecting national sovereignty", which the ruling Fidesz party said was necessary to protect against foreign political interference, violates European Union law, the European Commission said on Wednesday. The Hungarian legislation violates EU laws on democracy and the equal rights of EU citizens, the data protection law and several rules applicable to the internal market, the Commission said. The legislation came as nationalist Prime Minister Viktor Orban, who has clashed repeatedly with the European Union over democratic rights in Hungary, stepped up his party's campaign ahead of European Parliament elections next June. Under the law, a separate authority to explore and monitor risks of political interference will be set up. If it does not address the grievances stated in the letter, the Commission may decide to send a reasoned opinion - a formal request to comply with EU law - as a next step in the procedure.

Persons: Viktor Orban Organizations: Union, European Commission, European Union Locations: Hungary, Hungarian

☆ Aboriginal Group to Inspect Rock Shelters for Potential Rio Tinto Damage
▼ + stars: | 2024-02-07 | by ( Feb. | At P.M. | ) www.usnews.com time to read: +2 min

MELBOURNE (Reuters) - An Aboriginal group from Western Australia's iron ore producing region will inspect an important cultural site in the coming days after it received a notice from Rio Tinto of possible damage, the group's chief executive said. "The Robe River Kuruma Aboriginal Corporation was advised by Rio Tinto in late December of the potential impact on a rock shelter at the Mesa C Robe Valley operations," Anthony Galante, Chief Executive Officer of Robe River Kuruma Aboriginal Corporation (RRKAC) told Reuters. Rio Tinto has advised the group that a preliminary investigation found no damage to the shelter but it has not performed an on-ground inspection due to cultural restrictions, RRKAC said. Rio Tinto did not immediately respond to requests for comment. Given that history, the RRKAC has "grave concerns" about Rio Tinto's ability to protect Aboriginal cultural heritage, Galante said.

Persons: Anthony Galante, RRKAC, Rio, Rio Tinto, Muntulgura, Galante, Melanie Burton, Lincoln Organizations: MELBOURNE, Aboriginal Corporation, Rio Tinto, Reuters Locations: Rio Tinto, Rio

☆ Lucas Ocampos: LaLiga to report fan who poked player in the backside to the juvenile prosecutor’s office
▼ + stars: | 2024-02-06 | by ( Matias Grez | ) edition.cnn.com time to read: +3 min

CNN —LaLiga, Spain’s top soccer league, says it is going to report a young Rayo Vallecano fan who poked Sevilla forward Lucas Ocampos in the backside to the juvenile prosecutor’s office. “LALIGA is going to report the facts to the Juvenile Prosecutor’s Office as it involves a minor,” the league said in a statement to CNN. After the match, Ocampos said he hoped the league takes the incident as seriously as it takes incidents of racist abuse. Ocampos said he hopes the league takes the incident as seriously as racism. “Rayo Vallecano has always promoted the maximum respect towards referees, footballers and coaches.

Persons: CNN —, Rayo Vallecano, Lucas Ocampos, Ocampos, Valentín, “, ” Ocampos, DAZN España, Rayo, “ Rayo Vallecano, ” Sevilla, ” Rayo, Martin Presa Organizations: CNN, Sevilla, Rayo, Argentine, Isi, “, Police, Madrid, Rayo Vallecano, Sevilla FC, Spanish Locations: Europe

LONDON (AP) — A judge in London on Thursday threw out a lawsuit by former U.S. President Donald Trump accusing a former British spy of making “shocking and scandalous claims” that were false and harmed his reputation. Judge Karen Steyn said the case Trump filed against Orbis Business Intelligence should be dismissed. Photos You Should See View All 45 ImagesTrump sought damages from Orbis for allegedly violating British data protection laws. Tomlinson said the dossier “contained shocking and scandalous claims about the personal conduct of President Trump” and included allegations he paid bribes to Russian officials to further his business interests. Trump’s case “is that this personal data is egregiously inaccurate,” he said.

Persons: —, Donald Trump, ”, Karen Steyn, Trump, Christopher Steele, Trump’s, Hugh Tomlinson, “, Steele, Tomlinson, Trump ”, ” Trump, Orbis Organizations: U.S, Orbis Business Intelligence, Trump, Orbis, Secret Intelligence Service, BuzzFeed Locations: London, British, Russia, Moscow, St . Petersburg, Russian

☆ Donald Trump's lawsuit over 'Steele dossier' thrown out by UK court
▼ + stars: | 2024-02-01 | by ( ) www.cnbc.com time to read: +1 min

Former US President Donald Trump leaves Trump Tower for Manhattan federal court to attend his defamation trial in New York on January 26, 2024. Donald Trump's data protection lawsuit against a British private investigations firm over a dossier which alleged ties between Trump's campaign and Russia was thrown out by London's High Court on Thursday. Trump, the frontrunner for the 2024 Republican presidential nomination, had sued Orbis Business Intelligence about claims in a dossier written by former British intelligence officer Christopher Steele, who co-founded Orbis. Orbis, however, argued that Trump brought the claim simply to address his "longstanding grievances" against the company and Steele. The London lawsuit is just one of many legal cases involving Trump, who faces four separate criminal prosecutions in the United States.

Persons: Donald Trump, Donald Trump's, Christopher Steele, Karen Steyn, Trump, Steele Organizations: Trump, London's, Orbis Business Intelligence, Orbis Locations: Manhattan, New York, Russia, British, U.S, London, United States

☆ Trump's legal losing streak continues — a British judge tossed out his lawsuit over the infamous Russia dossier
▼ + stars: | 2024-02-01 | by ( Mikhaila Friel | ) www.businessinsider.com time to read: +4 min

A UK judge has thrown out Trump's lawsuit over a 2016 "dirty dossier" compiled by a former spy. Ex-MI6 agent Christopher Steele alleged that Trump's presidential campaign colluded with Russia. AdvertisementDonald Trump's legal troubles are getting worse. The blow to Trump's legal team comes after The New York Times reported that he obtained $50 million towards legal expenses from his supporters in 2023. President Trump's legal team will evaluate the complete judgment as we continue to fight for the truth and against falsehood."

Persons: Christopher Steele, Trump, —, Donald Trump's, Steele, BuzzFeed, Karen Steyn, Judge Steyn, Hugh Tomlinson, — Trump, Jean Carroll, Carroll, Steven Cheung, Trump's Organizations: Service, Trump, Associated Press, FBI, presidential, Orbis Business Intelligence, Business, Republican, New York Times, Court Locations: Russia, British, Moscow, London

☆ NY AG sues Citibank for failing to protect customers from fraud
▼ + stars: | 2024-01-30 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —New York Attorney General Letitia James filed a lawsuit against Citibank on Tuesday, alleging the big bank failed to do enough to protect and reimburse victims of fraud. The lawsuit argues that New York customers lost millions of dollars — in some cases their entire lifesavings — to scammers and hackers because of Citi’s weak security and anti-fraud measures. According to the NY AG, Citi does not do enough to prevent unauthorized account takeovers, illegally refuses to reimburse fraud victims and “misleads” customers about their rights after their accounts are hacked. “Our actions have reduced client wire fraud losses significantly, and we remain committed to investing in fraud prevention measures to help our clients secure their accounts against emerging threats,” the Citi spokesperson said. Last year, federal regulators alleged Citi illegally discriminated against Armenian Americans for years, singling them out on credit card applications based on their last names.

Persons: Letitia James, “, Banks, James, “ Banks, ” Organizations: New, New York CNN — New York, Citibank, NY AG, Citi, Court, Southern, of, AG, “ Citi, CNN, Armenian Locations: New York, of New York

☆ Amazon fined $35 million in France for tracking warehouse workers to the second
▼ + stars: | 2024-01-23 | by ( Anna Cooban | ) edition.cnn.com time to read: +3 min

London CNN —A French regulator has fined the local operator of Amazon’s warehouses €32 million ($35 million) for using an “excessively intrusive” surveillance system to track the activities of its workers. Amazon said the data allowed its teams to “spot problems” that posed a risk to the firm’s operations or the safety of its employees. A third indicator used by Amazon signaled when a worker’s scanner was interrupted anywhere between one and 10 minutes, according to the CNIL. The regulator fined Amazon France Logistique in late December following several investigations into the firm’s practices in its warehouses and complaints from employees. In the United States, Amazon has long faced scrutiny for the working conditions inside its warehouses, with employees complaining of punishing hours and close surveillance by bosses.

Persons: Amazon Organizations: London CNN, French Data Protection Authority, Amazon France, European, Amazon Locations: France, United States

☆ Southwest fined $140 million for last year's holiday meltdown
▼ + stars: | 2023-12-18 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

The U.S. Department of Transportation on Monday said it fined Southwest Airlines $140 million for violating consumer protection laws during last year's holiday meltdown that stranded millions of customers following severe winter weather. It includes a $35 million cash payment to the government, which Southwest said will be paid over three years. The agency ordered Southwest to set up a fund to compensate future travelers for flight disruptions in the airline's control. Southwest didn't provide enough customer assistance during the meltdown or give prompt flight change notifications, the DOT said. Speaking at an industry event in New York last week, CEO Bob Jordan vowed that last year's holiday meltdown "will never happen again," just days ahead of the busy holiday travel period.

Persons: Pete Buttigieg, Bob Jordan, Jordan Organizations: U.S . Department of Transportation, Southwest Airlines, Southwest Locations: New York

☆ The digital world remade itself and now every company has become an ad seller
▼ + stars: | 2023-12-04 | by ( Lauren Johnson | ) www.businessinsider.com time to read: +8 min

To use precise consumer data, advertisers now must work directly with the company that owns that data — like the retailer that knows what its customers bought or the media company that knows what its audience watched. Streamers including Netflix are building new ad businesses, while platforms like YouTube are trying to bolster their existing ad businesses with more content, such as live sports. "In a world of less data or worse data, whoever has the least-bad data wins," Brian Wieser, an advertising-industry analyst, told Business Insider. Even companies that aren't traditional retailers, such as Uber and Marriott, have kick-started ad businesses. The pandemic pushed the world to embrace streaming services.

Persons: Ana Milicevic, Brian Wieser, Sephora, Morgan Stanley, Milicevic, Neal Mohan, Vinny Rinaldi, Hershey's, Taylor, it's, Weiser, Wieser, influencers Organizations: Data, Apple, Sparrow Advisers, Walmart, Netflix, Companies, Retailers, Target, Marriott, Amazon, Major League Soccer, NFL, Columbia, Bose, YouTube, Advertising, Comcast, Hulu, Meta Locations: California, influencers

☆ TikTok’s recent court victories show just how hard it might be to ban the app
▼ + stars: | 2023-12-02 | by ( Brian Fung | Catherine Thorbecke | ) edition.cnn.com time to read: +8 min

The lawsuit in Indiana sought court-ordered fines and restrictions on TikTok for allegedly violating state consumer protection laws. Both cases reflected concerns expressed by government officials at all levels in the United States about TikTok’s ties to China through its parent company, ByteDance. Calls for a TikTok ban in the US first arose during the Trump administration and have waxed and waned in the years since, but most attempts to ban the app have been challenged in court. What comes nextUltimately, the state-level efforts in Indiana and Montana failed for many reasons, Goldman said, and policymakers should take note of this. The Indiana decision is less likely to have a nationwide impact, Goldman added, simply due to the typical obscurity of state court rulings and how state laws differ from one jurisdiction to another.

Persons: TikTok, ” Eric Goldman, ’, Trump, Donald Molloy, Molloy, Patrick Toomey, “, ” Molloy, ”, Jennifer DeGroote, DeGroote, Goldman, Blake Reid, Reid Organizations: CNN, TikTok, Santa Clara University, American Civil Liberties, Security, University of Colorado Locations: Indiana, Montana, United States, China

The nine justices are due to hear arguments in an appeal by President Joe Biden's administration of a lower court's decision restricting the SEC's in-house tribunal system. Circuit Court of Appeals in 2022 ruled that the SEC's in-house proceedings violate the U.S. Constitution's Seventh Amendment right to a jury trial and infringe on presidential and congressional powers. The SEC, which enforces various U.S. laws that protect investors, pursued 270 new in-house proceedings in the fiscal year that ended on Sept. 30, compared to 231 in federal court. The court in 2018 faulted the way the SEC selected its in-house judges, and in April made it easier for targets of agency actions to mount challenges in federal court. The Supreme Court is expected to rule by the end of June.

Persons: Andrew Kelly, Joe Biden's, George Jarkesy, Jarkesy, Andrew Chung, John Kruzel, Will Dunham Organizations: U.S . Securities, Exchange Commission, Washington , D.C, REUTERS, Rights, U.S, Supreme, Securities, Exchange, Circuit, SEC, Patriot28, U.S . Consumer, Thomson Locations: Washington ,, New Orleans, Constitution's, Houston, disgorge, New York, Washington

Meta announced the service for Facebook and Instagram last month. The ad-free service cost 9.99 euros ($10.90) monthly for Web users and 12.99 euros for iOS and Android users. Contrary to this law, Meta charges a 'privacy fee' of up to 250 euros per year if anyone dares to exercise their fundamental right to data protection," NOYB data protection lawyer Felix Mikolasch said in a statement. NOYB filed the complaint with the Austrian Data Protection Authority. The complaint will likely be forwarded to the Irish data protection watchdog which oversees Meta because it has its European headquarters in Ireland.

Persons: Dado Ruvic, Meta, Max Schrems, Felix Mikolasch, NOYB, Foo Yun Chee, Matthew Lewis Organizations: REUTERS, Rights, Meta, Facebook, EU, Austrian Data Protection, Netflix, YouTube, Google, Thomson Locations: Rights BRUSSELS, Europe, Austrian, Europe's, Vienna, Ireland, Brussels

Just this week, the SEC sued Kraken, another crypto exchange, alleging that it is operating as an unregistered securities exchange. Binance is exiting the US as part of the agreement the crypto exchange made with law enforcement agencies. That also includes the Justice Department, the Commodity Futures Trading Commission , and the Treasury Department. There is even a National Cryptocurrency Enforcement Team within the Justice Department actively identifying and investigating criminal cases involving digital assets. That is precisely how the feds secured the first ever corporate settlement with a crypto exchange.

Persons: Sam Bankman, Zhao, Binance, Brian Armstrong, Coinbase, ” Armstrong, “, General Merrick Garland, ” Changpeng Zhao, Anthony Kwan, cryptocurrencies, ethereum, Bitcoin, ’, it’s, Ethereum, Treasury Department —, Kraken, Tiffany Hagler, ” Garland, Lisa Monaco, Tuesday’s presser, “ I’ve, Benham Organizations: New, New York CNN, Justice Department, Bloomberg, Getty, Washington DC, US Department of Justice, Department of Justice, Treasury, Securities and Exchange Commission, Treasury Department, SEC, Geard, Futures Trading Commission, Cryptocurrency, feds Locations: New York, United States, Binance, Washington, U.S, “, rulemaking

☆ Tesla beats lawsuit claiming it monopolizes repairs, parts
▼ + stars: | 2023-11-18 | by ( Jonathan Stempel | Companies Need To Integrate Climate Reporting Across Functions To Comply With California S New Law | Henry Engler | ) www.reuters.com time to read: +2 min

Tesla logo is seen on the steering wheel of an electric vehicle at a dealership in Durango, northern Spain, October 30, 2023. She also said customers could not prove that Tesla coerced them into using its services and parts simply because they had bought their vehicles in the first place. She said customers may choose to amend their complaint, which combined five lawsuits and covered drivers who have paid for Tesla repairs and parts since March 2019. Customers said Tesla differs by requiring them to have vehicles serviced by the Austin, Texas-based company or its approved service centers, and use only Tesla parts. The case is Lambrix v Tesla Inc, U.S. District Court, Northern District of California, No.

Persons: Vincent West, Elon, Trina Thompson, Tesla, Thompson, Jonathan Stempel, Diane Craft Organizations: REUTERS, Tesla Inc, Court, Northern District of, Thomson Locations: Durango, Spain, U.S, San Francisco, California, Austin , Texas, Northern District, Northern District of California, New York

☆ Judge sides with Paramount on some claims in Warner Bros. 'South Park' streaming lawsuit
▼ + stars: | 2023-11-15 | by ( Drew Richardson | ) www.cnbc.com time to read: +2 min

A judge on Tuesday sided with Paramount Global on certain claims after Warner Bros. Discovery sued earlier this year over streaming rights to long-running animated series "South Park." New York state Supreme Court Justice Margaret Chan said that Paramount did not violate state consumer protection laws after its streaming platform, Paramount+, hosted "South Park" specials. The decision follows a February lawsuit, where Warner alleged that Paramount deceptively withheld the specials and other "South Park" content to bolster Paramount+ offerings. Paramount would later release "South Park: Post Covid" in 2021 and "South Park: The Streaming Wars" in 2022, exclusively on Paramount+.

Persons: Margaret Chan, didn't, Warner, Max, Paramount countersued, Chan, Warner's Organizations: Paramount Global, Warner Bros . Discovery, Paramount, Warner, HBO Max, Comedy Locations: York

☆ Judge narrows lawsuit over 'South Park' streaming rights
▼ + stars: | 2023-11-14 | by ( Jonathan Stempel | Companies Need To Integrate Climate Reporting Across Functions To Comply With California S New Law | Henry Engler | ) www.reuters.com time to read: +2 min

REUTERS/Alyssa Pointer/File Photo Acquire Licensing RightsNEW YORK, Nov 14 (Reuters) - A New York trial judge has narrowed Warner Bros Discovery's lawsuit against Paramount Global (PARA.O) over the rights to stream "South Park," the animated comedy featuring foul-mouthed children. She also dismissed a claim that Paramount failed to act in good faith, because that claim duplicated Warner's breach of contract claim. Warner sued in February, saying Paramount breached the agreement by providing only 14 new episodes, and diverted other new "South Park" content to its Paramount+ streaming service under a $900 million agreement with Parker and Stone. "South Park" was launched in August 1997 on Comedy Central, owned by Paramount. The case is WarnerMedia Direct LLC v Paramount Global et al, New York State Supreme Court, New York County, No.

Persons: Alyssa Pointer, Margaret Chan, Trey Parker, Matt Stone, HBO Max, Warner, Parker, Stone, countersued Warner, Jonathan Stempel, Franklin Paul Organizations: Warner Bros . Discovery Atlanta, REUTERS, Warner Bros, Paramount Global, Paramount, HBO, Comedy Central, New York, Court, Franklin Paul Our, Thomson Locations: Atlanta , Georgia, U.S, York, Manhattan, New, Court , New York County, New York

☆ A boomer on short-term disability isn't required to make student-loan payments right now. Her servicer took out $200 from her bank anyway.
▼ + stars: | 2023-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Amy, 59, is not required to make any student loan payments while pursuing her teaching certificate. It comes as the Education Department is working to strengthen oversight over servicers. AdvertisementAdvertisementWhile federal student-loan payments resumed for most borrowers in October, Amy, 59, knew she was not expected to make any payments. "But that's not the case with student loans. "It's ridiculous these companies get contracts for federal student loans," Amy said.

Persons: Amy, servicer, —, MOHELA, Joe Biden's, servicers, Amy —, she's, that's, it's, Harris, Education Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education Department, The Education Department, Aid, Biden, Harris Administration, Education

☆ Student-loan borrowers facing bad customer service could be transferred to a 'high-performing' company if issues persist, Biden's Education Department says
▼ + stars: | 2023-11-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released new guidance on holding student-loan servicers accountable. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementPresident Joe Biden's Education Department just warned student-loan companies that they can't keep getting away with bad behavior. On Thursday, the Education Department announced a new framework for holding services accountable as the transition back into repayment for millions of borrowers continues. The framework outlines how the department will monitor the quality of customer service borrowers are receiving from their servicers, along with punishments when servicers do not fulfill their contractual obligations.

Persons: servicers, —, Joe Biden's, Harris, Education Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education, Biden, Harris Administration, Education, MOHELA Locations: servicers

REUTERS/Chris Helgren Acquire Licensing RightsNEW YORK, Nov 8 (Reuters) - Citigroup Inc (C.N) has agreed to pay $25.9 million to settle U.S. Consumer Financial Protection Bureau (CFPB) charges it intentionally discriminated against credit card applicants who the bank identified as Armenian-American based on their last names. The CFPB also said bank employees lied to applicants by giving them fake reasons for denials, and were instructed not to discuss the discrimination in writing or over the phone. According to a consent order, some employees referred to card applicants they suspected were of Armenian descent as "Armenian bad guys" or the "Southern California Armenian Mafia." The payment includes a $24.5 million civil fine and $1.4 million of restitution to card applicants, for violations of the federal Equal Credit Opportunity Act. Citigroup apologized, saying it had been trying to thwart an Armenian fraud ring in California but that a "small number" of employees circumvented its fraud detection protocols.

Persons: Chris Helgren, Rohit Chopra, Chopra, Biden, Jonathan Stempel, Tatiana Bautzer, Douglas Gillison, Chizu Nomiyama, Mark Potter Organizations: Citigroup Inc, Citi, REUTERS, Consumer Financial Protection Bureau, Citigroup, Southern California Armenian Mafia, Credit, Act, Thomson Locations: Toronto , Ontario, Canada, Glendale , California, Armenia, United States, Southern California, California, York, New York, Washington

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