Category: Look Out for the Little Guy

President Trump Just Signed Off on Killing Your Internet Privacy Protections

President Trump signed into law a resolution that repealed protections requiring Internet service providers to get your permission before collecting and sharing data. These protections — which had not yet gone into effect — were approved by the Federal Communications Commission in the final days of the Obama administration.

The providers have data on your web browsing history, app usage and geo-location.

Providers would also have been required to notify customers about the types of information collected and shared.

Trump’s move doesn’t come as a surprise: the White House said last week that repealing the protections will create an “equal playing field” between Internet service providers and tech companies

Opponents of the privacy rules argued they would place an undue burden on broadband providers while leaving large Internet companies like Facebook (FB, Tech30) and Google (GOOG) free to collect user data without asking permission.

“President Trump and Congress have appropriately invalidated one part of the Obama-era plan for regulating the Internet,” FCC Chairman Ajit Pai, who was appointed by Trump, said in a statement. “Those flawed privacy rules, which never went into effect, were designed to benefit one group of favored companies, not online consumers.”

But rather than apply similar protections to more businesses, the resolution passed by Republican-controlled Congress scraps the rules entirely.

Democrats and privacy advocates have argued this approach effectively hands over the customer’s personal information to the highest bidder.

(h/t CNN)

Trump Administration Rescinds Obama Guidance on Student Loan Defaults

The Trump administration on Thursday rolled back Obama-era guidance that forbade student loan debt collectors from charging high fees to defaulted borrowers, The Washington Post reported.

In a “Dear Colleague” letter, the administration tells agencies that collect on defaulted loan debt to disregard guidance prohibiting them from charging borrowers who default on their payments fees of as much as 16 percent of the loan’s principal and accrued interest.

It also says that the initial guidance handed down by the Obama administration in 2015 should have been subjected to public comment before it was issued.

“The Department thinks that the position set forth in the [Obama administration guidance] would have benefitted from public input on the issues discussed in the [guidance letter],” the Trump administration’s directive reads.

“The department will not require compliance with the interpretations set forth … without providing prior notice and an opportunity for public comment on the issues,” it continues.

The decision to rescind the guidance came two days after the Consumer Federation of America issued a report that finds that the number of people defaulting on their student loan payments is on the rise.

The Trump’s administration’s letter affects 7 million people with loans through the Federal Family Education Loan Program that are held by guaranty agencies. Individuals whose debt is held by the Department of Education are not impacted by the decision.

The amount owed in student loan debt has surpassed that of credit card debt — about $1.2 trillion.

(h/t The Hill)

Trump Won’t Require Keystone XL Pipeline to Use American Steel, Despite Pledge

A few weeks ago, when President Trump signed a directive clearing several hurdles out of the way of the proposed Keystone XL pipeline, the White House touted a new requirement — that the pipeline be made with American-produced steel.

Never mind.

The requirement to use domestic steel posed a potential conflict between the administration’s populist agenda and it’s pro-business stance. Apparently, business won.

Friday, a White House spokeswoman said Keystone would be exempt from the buy-America requirement because the pipeline was already partially underway.

“The way that executive order is written,” said White House Deputy Press Secretary Sarah Sanders, “it’s specific to new pipelines or those that are being repaired.

“Since this one is already currently under construction, the steel is already literally sitting there; it would be hard to go back,” Sanders told reporters traveling with Trump on Air Force One en route to Florida.

That’s not the way Trump described the requirement in his public statements. In a speech a week ago at the CPAC conference of conservative activists, the president said he had personally come up with the buy-America idea while signing off on the Keystone project.

“We have authorized the construction … of the Keystone and Dakota Access pipelines,” he said.

“This took place while I was getting ready to sign,” he continued. “I said, ‘who makes the pipes for the pipeline?’

“‘Well, sir, it comes from all over the world, isn’t that wonderful?’

“I said, ‘Nope, it comes from the United States, or we’re not building one.’ American steel. If they want a pipeline in the United States, they’re going to use pipe that’s made in the United States.”

About half the steel used to build the pipeline is to come from a plant in Arkansas, according to the pipeline builder, TransCanada. The rest will be imported.

(h/t Los Angeles Times)

Reality

At the Conservative Political Action Conference last week, Trump said that the Keystone and Dakota Access pipelines must use American steel “or we’re not building one.”

This was a lie that he told right to their faces.

But do you want to know what country is producing steel for the pipeline? Russia.

Canadian Public Safety Minister Ralph Goodale said on Twitter that allowing non-U.S. steel was “important for companies like Evraz Steel,” a local subsidiary of Russia’s Evraz PLC, which had signed on to provide 24 percent of the steel before Keystone XL’s rejection by Obama.

Trump Signs Repeal of Transparency Rule for Oil Companies

President Trump signed legislation Tuesday to repeal a controversial regulation that would have required energy companies to disclose their payments to foreign governments.

The legislation is the first time in 16 years that the Congressional Review Act (CRA) has been used to repeal a regulation, and only the second time in the two decades that act has been law. It is the third piece of legislation Trump has signed since taking office three weeks ago.

It is the start of one front in an aggressive deregulatory effort that the Trump administration and the GOP Congress are undertaking to roll back Obama-era rules on fossil fuel companies, financial institutions and other businesses that they say have suffered for the last eight years.

The resolution repeals a Securities and Exchange Commission (SEC) rule written under the 2010 Dodd-Frank financial reform law.

It was meant to fight corruption in resource-rich countries by mandating that companies on United States stock exchanges disclose the royalties and other payments that oil, natural gas, coal and mineral companies make to governments.

At a signing ceremony in the Oval Office, Trump said the legislation is part of a larger regulatory rollback that he and congressional Republicans are undertaking with the goal of economic and job recovery.

“This is a big signing, very important signing,” Trump said, flanked at his desk by House Speaker Paul Ryan (R-Wis.), House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Sen. Jim Inhofe (R-Okla.) and other lawmakers.

“We’re bringing back jobs big league. We’re bringing them back at the plant level, we’re bringing them back at the mine level. The energy jobs are coming back,” he continued. “A lot of people going back to work now.”

Trump then asked Rep. Bill Huizenga (R-Mich.), the measure’s lead sponsor, to speak about it and regulatory reform in general.

“Over 20 years, there’s been 56,000 rules that have been put in place, with very little legislative input or oversight, and it’s time that changed,” he said.

The administration and congressional allies say the SEC rule imposes massive, unnecessary costs on United States oil, natural gas and mining companies, putting them at a significant competitive disadvantage to foreign companies that do not have to comply.

“Misguided federal regulations such as the SEC rule addressed by H.J.R. 41 inflict real cost on the American people and put our businesses, especially small businesses, at a significant disadvantage,” White House Press Secretary Sean Spicer said earlier Tuesday.

“It’s a priority for the Trump administration to fix our broken regulatory system so that it enhances American productivity and well-being without imposing unnecessary costs and burdens,” he said.

“Signing this joint resolution is one more step toward achieving this goal.”

The House passed the repeal measure earlier this month, followed shortly by the Senate.

Democrats and supporters of the SEC rule see the rollback as a victory for corruption.

“The rule they’re trying to repeal protects U.S. citizens and investors from having millions of their dollars vanished into the pockets of corrupt foreign oligarchs,” Sen. Sherrod Brown (D-Ohio), top Democrat on the Senate Banking Committee, said earlier this month. “This kind of transparency is essential to combating waste, fraud, corruption and mismanagement.”

Supports argued in part that if the United States takes a leading role on foreign payment transparency, other major nations would follow.

Exxon Mobil Corp., whose former CEO Rex Tillerson is now secretary of State, was one of the most vocal opponents of the rule, along with other major oil companies.

The SEC is still obligated under the Dodd-Frank law to write some form of a transparency rule for extractive industries.

But under the CRA, the agency can never publish any rule that is “substantially the same” as the one that has now been overturned.

Both chambers of Congress have also passed a CRA resolution to overturn the Interior Department’s stream protection rule for coal mining, and Trump supports the repeal.

The House has passed numerous other regulatory repeal measures under the CRA, including ones on methane pollution and gun ownership, and the Senate is likely to take up at least some of them.

(h/t The Hill)

Trump Says He Cut Wall Street Reform Because His “Friends” Need Money

On Friday, Donald Trump signed an executive order intended to roll back Dodd-Frank, the sprawling regulatory framework President Obama signed into law in 2010 to avoid another financial crisis, which was not entirely beloved on Wall Street. He also scrapped a fiduciary rule intended to protect retirees by forcing brokers and advisers to “work in the best interest of their clients.“ (This, too, was controversial.)

According to its defenders, Dodd-Frank has been a modestly successful, if tortuous affair, requiring banks to bend over backwards to comply with regulations that protect investors and consumers from abusive practices and excessive risk. According to Trump, it was inconveniencing his friends:

“There is nobody better to tell me about Dodd-Frank than [JP Morgan C.E.O.] Jamie [Dimon]. So he has to tell me about it, but we expect to be cutting a lot from Dodd-Frank because, frankly, I have so many people, friends of mine, that have nice businesses, they can’t borrow money,” Trump said Friday morning, shortly before signing the executive orders. “They just can’t get any money because the banks just won’t let them borrow because of the rules and regulations in Dodd-Frank.”

And here’s how Gary Cohn, Goldman Sachs president turned White House National Economic Council Director made the case for getting rid of the fiduciary rule unveiled last spring:

“We think it is a bad rule. It is a bad rule for consumers. This is like putting only healthy food on the menu, because unhealthy food tastes good but you still shouldn’t eat it because you might die younger.”

That is literally the greatest analogy we’ve ever heard, and we challenge Cohn and the Trump administration to top it. (In fact, the only way they could is if Cohn appeared on Meet the Press on Sunday and said, “The fiduciary rule is like only putting out vape pens at a party, because crystal meth feels good but you still shouldn’t smoke it because you might die younger.” Let the consumer have their meth! How could more choice be bad, in an industry defined by vast asymmetries of information between brokers and consumers?

Oh, and in case you were wondering: Elizabeth Warren is obviously pissed about all of this.

“Donald Trump talked a big game about Wall Street during his campaign—but as president, we’re finding out whose side he’s really on,” the Massachusetts senator said in a statement. “Today, after literally standing alongside big bank and hedge fund C.E.O.s, he announced two orders—one that will make it easier for investment advisers to cheat you out of your retirement savings, and another that will put two former Goldman Sachs executives in charge of gutting the rules that protect you from financial fraud and another economic meltdown.”

Warren, along with Senator Tammy Baldwin, also sent a letter to Gary Cohn telling him he ought to “recuse himself from decisions directly or indirectly related to Goldman Sachs.”

(h/t Vanity Fair)

 

 

 

Judge Orders Trump Golf Club to Reimburse Members

A federal judge has ruled that Trump National Jupiter Golf Club in Florida will pay just under $6 million to some members who were denied access to the club, Politico reported.

The judge found that the club violated its contracts by holding deposits from members on a “resignation waiting list.” Those members were denied access to the club.

The members who took part in the class-action lawsuit claimed membership rules were altered when now-President Donald Trump took over the club in 2012 and contracts were violated, according to CNNMoney.

Brad Edwards, the attorney for the former members, said the club was ordered to pay more than $4.8 million in damages and almost $1 million in interest, the amount the plaintiffs requested.

The club “created their own contorted reading of a contract that allowed them to avoid the refundability of the deposits,” he said.

The Trump Organization’s lawyer, Alan Garten, told the news outlet the decision will be appealed.

“The members who resigned were all members under Ritz-Carlton who resigned prior to Trump taking ownership. Trump purchased the club from Ritz and effectively saved it because it was in financial ruin. Notwithstanding the foregoing, we disagree with the judge’s ruling and intend to appeal it,” said Garten.

Trump owns the club, but was not a defendant in the suit.

(h/t The Hill)

Contractor Files $2 Million Lawsuit Against Trump For Unpaid Bills

A Maryland-based electrical company is suing President Trump’s Washington, D.C. hotel for than $2 million, Politico reports.

AES Electrical, also called Freestate Electrical, alleged that its employees had to work “nonstop” to complete electrical and fire alarm systems before the hotel’s “soft opening” in September and its grand opening in October. It says it never received payment for its work.

The lawsuit also argues that without Freestate, the real estate mogul would not have been able to hold an event at the hotel in September.

“At the time of the ‘soft opening,’ Donald J. Trump, President of Defendent, Trump Old Post Office, LLC, was a U.S. presidential candidate and the ‘soft opening’ had to occur to permit Mr. Trump’s nationally televised campaign event from the Hotel on September 16, 2016, which was to honor U.S. veterans,” the lawsuit says. “But for Freestate’s acceleration of work and performance of extra work on the project, this event would not have been able to occur.”

Freestate also noted that its work before the hotel’s “grand opening” on Oct. 26 was timed just before the Nov. 8 election in order to generate “positive press coverage.”

Freestate isn’t the first contractor to accuse Trump’s businesses of not paying the bills. Two other companies that worked on the Washington hotel — A&D Construction Inc. and plumbing company Joseph J. Magnolia, Inc. — filed liens for unpaid bills.

Trump Preps for Presidency as He Attempts to Sue a Painter Out of Business

After his election, Donald Trump quickly settled a series of business disputes — but just days before his inauguration, the president-elect’s company is still waging a legal battle against a Florida shop owner over an unpaid bill.

The matter could have been settled for what amounts to pocket change for a billionaire, but the Trump Organization decided to take its chances in court.

Now Trump stands to lose hundreds of thousands of dollars. And if he wins, it could force a small businessman — one of hundreds who say they were stiffed by Trump over the years — possibly into bankruptcy.

That businessman, Juan Carlos Enriquez, owner of The Paint Spot, won the first round of the legal skirmish last summer when a judge found a lien he slapped on the Trump National Doral golf resort was valid.

The court ordered Trump to pay for $32,000 worth of paint, plus nearly $300,000 in legal fees. Trump’s company appealed, and barring a last-minute resolution, the case will be pending when he takes office; the deadline for final briefs is two days before he becomes the most powerful person in America.

Enriquez’s lawyer, Daniel Vega, said he is not surprised it has gone this far.

“The Trump litigation team litigated this case from day one like lions on fresh meat and continue to do so now on appeal,” he told NBC News.

The matter dates back to the fall of 2013 when Enriquez, who owns three Miami paint stores, was tapped by a subcontractor to supply paint for a major remodeling project at the Doral resort, owned and operated by a Trump company called Trump Endeavor.

There is no dispute that the paint was delivered and used on the property, according to court records. But after the subcontractor walked off the job weeks before completion, Enriquez didn’t get a final payment.

In a deposition, a project manager for general contractor Straticon testified that he failed to get the Trump Organization to pay the balance.

“Were you trying to pay him,” Vega asked the manager, Jamie Gram, during the sessions.

“I was,” Gram replied.

“And what happened?”

“Somebody chose not to,” Gram said.

“Who?” the lawyer asked.

“The Trump Organization,” Gram said.

“Who at Trump?”

“I don’t know,” Gram said. “Mr. Trump. Donald Trump.”

In October 2014, Enriquez filed a lien — a legal tool that can be used to recover a debt by tying up a piece of property — against Doral.

Eight months later, Enriquez filed a lawsuit against Trump Endeavor, seeking to foreclose on the 800-acre resort.

The Trump team’s defense was largely technical.

It turned out that when Enriquez took the job he submitted paperwork called a Notice to Owner, which would allow him to file a lien against the property if a bill wasn’t paid.

A Trump official gave him a form to work off — but it listed the general contractor for a different part of the project, and Enriquez repeated the mistake on his notice.

Gram later noticed and flagged the error. Enriquez said he would fix it but never did, court documents show.

At trial, though, Gram testified that the decision not to pay Enriquez “had nothing to do with a defective notice to owner.”

He went on to explain that the bill went unpaid because the Trump Organization had already paid “a decent amount of money” to the subcontractor, M&P, before it abandoned the job. The resort used any money left over, plus additional funds, to complete the unfinished paint job, he said.

Gram’s testimony appeared to distress Trump’s legal team, Miami-Dade Circuit Court Judge Jorge Cueto noted in his June 2016 ruling.

“When Mr. Gram made that admission, Trump’s trial attorneys visibly winced, began breathing heavily and attempted to make eye contact with him,” the judge wrote.

The judge found that Enriquez had made “diligent efforts” to comply with the lien law and that being given the wrong paperwork by the Trump official was the root of the mistake. He also dismissed Trump clams that the bill was fraudulent, subtracting only $76.39 for a stepladder from the bottom line.

Cueto then dealt the Trump team a bigger blow, ruling that they had to pay Enriquez’s legal costs. Because Vega had taken the case on contingency, meaning he would not get paid if they lost, the judge tacked on a multiplier to compensate him for the risk he took, nearly doubling the award to $283,949.91.

“Trump elected to fight this case ‘tooth and nail’ instead of resolving it for a reasonable amount, driving up Paint Spot’s litigation fees and costs,” the judge explained.

The Trump trial attorneys did not respond to requests for comment, nor did the Trump Organization’s general counsel. The attorney handling the appeal, Bruce Rogow, did not respond to a question about who should have paid Enriquez for the paint used at Doral.

“Florida Statutes on liens are very specific and the appeal seeks to enforce those statutes which would mean that there was no valid lien to begin with and therefore the plaintiff was not entitled to any relief,” he wrote in an email. “That really is all that is at issue.”

Rogow did not respond to a question about whether the president-elect was personally involved in the decision to appeal the judgement. A spokesperson for Trump also did not respond to questions from NBC News.

Vega said he is confident The Paint Spot will win the appeal. But if he loses, he said, Enriquez could be saddled with Trump legal fees and might face bankruptcy. Trump’s attorney declined to say whether they would seek to recoup the legal fees.

Despite the stakes, Vega said he and his client were not afraid to take on the litigious billionaire.

“The Paint Spot is also owned by a proud small business owner… and he felt and we agreed that he was right factually and legally and therefore, we both decided to take on the risk,” Vega said.

(h/t NBC News)

Trump Attacks Union Boss Who Fact Checked Him

Chuck Jones, president of United Steelworkers Local 1999, has been critical of Trump’s claim to have saved 1,100 jobs at the Indianapolis plant since Tuesday.But shortly after Jones appeared on CNN’s “Erin Burnett Out Front” program Wednesday night, the president-elect appeared to blame union leaders like him for companies leaving the U.S.

“Chuck Jones, who is President of United Steelworkers 1999, has done a terrible job representing workers. No wonder companies flee country!” Trump wrote.

He followed up with another attack just over an hour later: “If United Steelworkers 1999 was any good, they would have kept those jobs in Indiana.”

Vice President-elect Mike Pence, who is also the governor of Indiana, gave a very different description of the union back in March. He tweeted a photo of a meeting he had about Carrier with Jones and Local 1999 members, calling them “hardworking.”

Jones has complained that Trump has fallen short of his campaign promise to keep Carrier from moving 1,400 jobs to Mexico.

“You made a promise to keep all these jobs. You half-way delivered,” Jones told CNNMoney in an interview earlier Wednesday. “We expect you go back and keep all the jobs.”

Jones added that Trump should also help the 350 workers at an Indianapolis plant owned by another company, Rexnord, which is also slated to move to Mexico. Workers there are also members of USW Local 1999.

“Trump said no companies would be allowed to go to Mexico,” Jones said. “There are more than 300 people over there at Rexnord. He needs to deliver for them as well.”

Jones did not get to speak with Trump when the President-elect visited Carrier last week. But he said he was angry when Trump praised Carrier for “keeping 1,100 people” in jobs that won’t move to Mexico. The real number is 800.

To get the higher number, Carrier and Trump are counting 300 administrative and engineering jobs at a different facility in Indianapolis that were never at risk of being shipped to Mexico.

Carrier is still shifting about 600 jobs building fan coils to Mexico sometime next year. Under the deal with Trump, Carrier only agreed to keep the part of the plant that builds furnaces open, saving the 800 jobs in Indianapolis.

Carrier confirmed to CNNMoney on Friday that it never planned to move the 300 administrative and engineering positions.

“He’s lying his a– off,” Jones said about Trump’s claim of saving 1,100 jobs. “That’s not just my feeling. The numbers prove he’s lying his a– off. It’s a damn shame when you come in and make a false statements like that.”

Later Wednesday Jones elaborated in an interview with Erin Burnett.

Jones said many of the workers whose jobs may now be saved are grateful to Trump, but that some workers who are still worried about losing their jobs are angry.

“We have a lot of our members, when word was coming out… they thought they would have a job. Then they found out Friday, that most likely they weren’t,” he said.

Burnett asked if Jones thought Trump should apologize, and he said, “I think he ought to make sure he gets all the facts straight before he starts talking about what he’s done.”

“I’m extremely grateful for what he did. There’s 800 people who have jobs… It’s not all one sided. I just wished it had been handled in more of a professional matter.”

The Trump transition team did not respond to a request for comment about the jobs still moving to Mexico.

Jones said he hopes the company will offer workers the chance to leave voluntarily with the severance package that was previously negotiated — one week of pay for every year of service.

Ideally, more senior workers at the plant would take the package and retire, which would save the jobs of younger workers. The plant has a large number of senior employees.

“For workers who have 40 years in and were getting close to retirement, that 40 weeks pay might look pretty good,” Jones said. But severance talks have yet to start.

(h/t CNN)

Update

Jones wrote a follow-up explaining his side.

Latest Unpaid Trump Vendor Is His Own Pollster, Filing Shows

Donald Trump has been stiffing contractors his entire career. But he’s not even waiting until the election is over to stiff those who are working for his campaign.

Trump’s latest campaign financial disclosures show that it is disputing close to $767,000 that its pollster, Tony Fabrizio, says his is owed for work done on the campaign. The conflict is just the latest sign of internal turmoil that has long rocked Trump’s organization, and could be the prelude to yet another Trump lawsuit.

“This is one of the largest disputed campaign debts I have seen, though perhaps the debt’s size should be of little surprise given the fact that Mr. Trump has managed to incrementally grow his inherited fortune by stiffing contractors and taxpayers all along the way,” said Republican campaign finance attorney Matthew Sanderson.

Trump has a long history of stiffing those who work for him. His self-professed philosophy has often been to withhold payment if he isn’t entirely satisfied with the work.
“Given [Trump’s] history of not paying vendors, and his statement that if they haven’t done adequate work he’s not going to pay them, it’s not surprising to see in his campaign that he would have a contested debt,” said Lawrence Noble, the general counsel of the Campaign Legal Center. “From his previous statements, he seems to think that’s a very valid way to do business, if he’s not happy with a vendor: to not pay them.”

A USA Today analysis found that Trump has been involved in more than 3,500 lawsuits over the past thirty years, and that a large number of these lawsuits relate to people who believe Trump and his companies have failed to pay up.

In the past decade, his companies have been cited 24 times for violations of the Fair Labor Standards Act. Those same companies have been subject to more than 200 liens filed by contractors and employees who said they were stiffed for their work.

“Let’s say that they do a job that’s not good, or a job that they didn’t finish, or a job that was way late. I’ll deduct from their contract, absolutely,” Trump told the newspaper. “That’s what the country should be doing.”

Recent reports have suggested tension between Fabrizio and now-campaign manager Kellyanne Conway, as well as a feeling within the Trump organization that some, such as Trump son-in-law Jared Kushner, do not believe Fabrizio’s focus groups are necessary.

Neither the Trump campaign nor Fabrizio responded to a request for comment.

Whatever the case, Trump has found himself in a position with leverage to stiff Fabrizio’s polling firm and other campaign contractors.

“Trump can’t close down his campaign until the debt is resolved, but there’s no deadline for that, so he can hypothetically continue to file regular FEC reports ad nauseam until Fabrizio agrees to accept less,” explained Jordan Libowitz, a spokesman for the left-leaning Citizens for Responsibility and Ethics in Washington.

“Mr. Trump may be pursuing the Newt Gingrich style of campaigning, which is a strategy of stringing along the various small businesses working for your election only to leave them holding the bag at the end of the day,” quipped Sanderson, the Republican pollster.

The timing of this contested debt is unusual—most contractors to political campaigns usually wait until after the elections to settle up, and the fact that it has been listed in public records before Election Day suggests an even more troubled road ahead.

“What’s unusual about this is that it’s happening before the election. Normally these kinds of things are dealt with after the election,” Noble said. “The fact that they’re listing it as a contested debt may mean they’re getting pressure from the vendor to pay up, and the vendor’s next step may be to sue the campaign if they don’t reach a settlement.”

(h/t The Daily Beast)

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