Category Archives: Consumer Advocacy

Investing in Bitcoin – Cryptocurrencies

Clients have been asking me about investing in Bitcoin or other cryptocurrencies.  The Federal Trade Commission (FTC) recently provided some helpful advice.  ftc-seal

You do your best to keep up with the latest financial news. You’ve been hearing more about cryptocurrencies and asking yourself “Hmmm.” Of course, it’s not just Bitcoin. There are now hundreds of cryptocurrencies, which are a type of digital currency, on the market. They’ve been publicized as a fast and inexpensive way to pay online, but many are now also being marketed as investment opportunities. But before you decide to purchase cryptocurrency as an investment, here are a few things to consider:

  • Cryptocurrencies aren’t backed by a government or central bank. Unlike most traditional currencies, such as the dollar or yen, the value of a cryptocurrency is not tied to promises by a government or a central bank.
  • If you store your cryptocurrency online, you don’t have the same protections as a bank account. Holdings in online “wallets” are not insured by the government like U.S. bank deposits are.
  • A cryptocurrency’s value can change constantly and dramatically. An investment that may be worth thousands of dollars on Tuesday could be worth only hundreds on Wednesday. If the value goes down, there’s no guarantee it will rise again.
  • Nothing about cryptocurrencies makes them a foolproof investment. Just like with any investment opportunity, there are no guarantees.
  • No one can guarantee you’ll make money off your investment. Anyone who promises you a guaranteed return or profit is likely scamming you. Just because the cryptocurrency is well-known or has celebrities endorsing it doesn’t mean it’s a good investment.
  • Not all cryptocurrencies or the companies behind them are the same. Before you decide to invest in a cryptocurrency, look into the claims the company is making. Do an internet search with the name of the company and the cryptocurrency with words like review, scam, or complaint. Look through several pages of search results.

Read more about Investing Online.

Want to learn more about the technology underlying cryptocurrencies? See my earlier blog post Blockchain Technology Overview

If you or your business have legal questions or concerns regarding computer law, privacy, or cybersecurity law matters, contact attorney Jeffrey A. Franklin at Prince Law Offices.


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The 3rd Circuit holds debtors may sue creditors who offer to settle time-barred debt under the FDCPA.

Recently, the United States Court of Appeals for the Third Circuit, rendered an opinion in the class action, Michelle Tatis vs. Allied Interstate, LLC: John Does 1-25, No. 16-4022, clarifying whether time-barred offers from creditors to settle old obligations violated the Fair Debt Collection Practice Act (“FDCPA”). On appeal, the 3rd Circuit reversed a decision by the United States District Court for the District Of New Jersey granting Defendant’s Motion To Dismiss suit. Plaintiff, Michelle Tatis, commenced a class action suit against Defendant, Allied Interstate, LLC, alleging that a collection letter sent by Allied offering to settle her time-barred debt violated the FDCPA’s prohibition against using “any false, deceptive, or misleading representations or means in connection with the collection of any debt.” See 15 U.S.C. § 1692e. Tatis had a ten year old debt of $1,289.86 owed to Bally Total Fitness which Allied sought to collect by sending a letter offering to settle the obligation for pennies on the dollar.

In the state of New Jersey, the statute of limitations to commence a debt collection action is six years. Pennsylvania has a four year statute of limitations to commence a debt collection action. What that means is that if the 6 years, or 4 years in Pennsylvania, has passed since a debtor defaulted on his/her obligation to pay his/her debt, a creditor cannot sue the debtor to recover the debt. It does not mean that a creditor cannot offer to settle and that a debtor cannot voluntarily agree to repay the debt. A debtor may voluntarily agree to repay the obligation for personal reasons or a desire to honor the obligation. However, there is no legal threat to the debtor after the statute of limitations has passed. Whether or not an offer to settle misrepresents the legal status of a time-barred obligation is the focus of the 3rd Circuit’s Opinion.

In Tatis, Allied sent a letter after the statute of limitations had run stating: “[The creditor] is willing to accept payment in the amount of $128.99 in settlement of this debt. You can take advantage of this settlement offer if we receive payment of this amount or if you make another mutually acceptable payment arrangement within 40 days . . . .”

Tatis’ complaint alleged that Tatis interpreted the word “settlement” in the letter to mean that she had a “legal obligation” to pay the debt, and the least- sophisticated debtor would hold a similar belief. Tatis claimed that letter violated several prohibitions of the FDCPA including: §1692 e(2)(A), falsely representing the legal status of debt; §1692e(5), making false threats to take legal action that cannot be legally taken; and §1692e(10) using false representations and/or deceptive means to collect or attempt to collect a debt. Allied filed a Motion To Dismiss alleging that no threat to take legal action was made to Tatis by the settlement letter.

The U.S. District Court agree with Allied and held that an attempt to collect a time-barred does not violate the FDCPA unless it is accompanied a threat of legal action. District Court stated that the use of the word “settlement” in a letter did not constitute a threat of legal action. Finally, The U.S. District Court held that because under New Jersey law partial repayment would not revive the statute of limitations, the letter could not deceive or mislead a consumer into inadvertently reviving the debt.

The 3rd Circuit in reversing the District Court focused on the remedial nature of the FDCPA and the broad prohibitions set forth in the FDCPA by Congress to curb abusive, deceptive, and unfair debt collection practices. Because of the remedial nature of the FDCPA, its language is construed broadly to protect debtors. In addition, the “least sophisticated debtor” standard is used to determine whether any debt collection practices violate the FDCPA. The “least sophisticated debtor” standard is a very low standard which does requires a plaintiff to prove that he or she was mislead, but only that the least sophisticated debtor could be mislead.

The 3rd Circuit looked at several other court decisions involving similar settlement letters which found that offers to “settle” could mislead the least sophisticated debtor to believe that debt was legally enforceable in court. The 3rd Circuit agreed with its sister courts and held that in the specific context of a debt-collection letter, the least-sophisticated debtor could be misled into thinking that “settlement of the debt” referred to the creditor’s ability to enforce the debt in court rather than a mere invitation to settle the account. The 3rd Circuit concluded that the least-sophisticated debtor could plausibly be misled by the specific language used in Allied’s letter and vacated the District Court’s order granting Allied’s motion to dismiss. However, the 3rd Circuit would not go as far as to hold that standing alone, settlement offers and attempts to obtain voluntary repayments of stale debts constitute deceptive or misleading practices. Additionally, the 3rd Circuit declined to hold that the use of the word “settlement” is “misleading” as a matter of federal law or mandate the use of any specific language. The 3rd Circuit, in keeping with the text and purpose of the FDCPA, reiterated that any such letters, when read in their entirety, must not deceive or mislead the least-sophisticated debtor into believing that she has a legal obligation to pay the time-barred debt.

What it means for creditors is that they must very careful in drafting “settlement offers” for time-barred debt. A settlement offer cannot imply that a time-barred debt is legally enforceable. The 3rd Circuit believed the word “settle” could imply “concluding or avoiding a lawsuit.” Perhaps a disclaimer that no legal action can or will be taken if the debtor choses to voluntarily repay the debt.

With regards to debtors, if the language of settlement letter would mislead an unsophisticated consumer into believing that if he or she does not settle the time-barred debt he or she may be subject to suit, then that letter may violate the FDCPA. A debtor who receives a settlement letter may bring suit against the creditor. Under the FDCPA, a debtor may sue for actual damages, statutory damages of $1,000.00 per violation, and attorney’s fees so long as the suit is commenced within a year of the violation.

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Blockchain Technology Overview

When and if to use blockchain

Aiming to clarify blockchain, the National Institute of Standards and Technology (NIST) recently released an introduction to blockchain, which underpins Bitcoin and other digital currencies.

Credit: K. Irvine/NIST/Shutterstock



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Online Dating and Relationship Scams

Valentine’s Day is around the corner, but if an online love interest asks you for money, it’s probably a

The Federal Trade Commission (FTC) receives thousands of reports each year about romance scammers who create fake online relationships only to rob their victims.

Millions of Americans use dating sites, social networking sites and chat rooms to meet people, but scammers use them too, and eventually the scammers ask for money.

The FTC’s new infographic, developed with the American Bankers Association Foundation, lists common signs of online dating scams and how to handle them.

How to Recognize a Scam

The relationship may not be what you think, especially if your sweetheart:

  • wants to leave the dating site immediately and use personal email or IM
  • claims love in a heartbeat
  • claims to be from the U.S., but is traveling or working overseas
  • plans to visit, but is prevented by a traumatic event or a business deal gone sour

Scammers also like to say they’re out of the country for business or military service.

What You Can Do About It

You may lose your heart, but you don’t have to lose your shirt, too. Don’t wire money to cover:

  • travel
  • medical emergencies
  • hotel bills
  • hospital bills for a child or other relative
  • visas or other official documents
  • or losses from a temporary financial setback

Don’t send money to tide someone over after a mugging or robbery, and don’t do anyone a favor by making an online purchase or forwarding a package to another country. One request leads to another, and delays and disappointments will follow. In the end, your money will be gone along with the person you thought you knew.

Report relationship scams to:

If you or your business have legal questions or concerns regarding computer law, privacy, or cybersecurity law matters, contact attorney Jeffrey A. Franklin at Prince Law Offices.


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Tax Identity Theft Awareness Week January 29-February 2

It is tax time.  The tax scammers are gearing-up.  Learn how to protect yourself during Tax Identity Theft Awareness Week January 29-February 2, 2018.IRS

Tax identity theft occurs when a person uses someone else’s Social Security number to either file a tax return and claim the victim’s refund, or to earn wages that are reported as the victim’s income, leaving the victim with the tax bill.

The Federal Trade Commision, the Internal Revenue Service, the Department of Veterans Affairs, the Treasury Inspector General for Tax Administration, and others throughout the week are hosting free webinars and Twitter chats focused on steps consumers and businesses can take to help avoid tax identity theft and recover if it occurs. There will also be discussions about ways to identify and avoid IRS imposter scams that target consumers and businesses.

The events include:

  • January 29 at 2 p.m. ET: A webinar for consumers on tax identity theft and IRS imposter scams, how to protect yourself, and how to recover, co-hosted by the FTC and the Identity Theft Resource Center.
  • January 30 at 2:30 p.m. ET: A webinar for older adults and other consumers on tax identity theft and IRS imposter scams, co-hosted by the FTC, AARP Fraud Watch Network, the AARP Foundation Tax-Aide program, and the Treasury Inspector General for Tax Administration.
  • January 31 at 11 a.m. ET: A Twitter chat for service members, veterans, and their families, co-hosted by the FTC and the Department of Veterans Affairs. Join the conversation at #VeteranIDTheft.
  • January 31 at 1 p.m. ET: A closed webinar co-hosted by the FTC, the Department of Veterans Affairs, and the Treasury Inspector General for Tax Administration, focused on tax identity theft and IRS imposter scams. This webinar is only available to Veterans Administration employees and patients.
  • February 1 at 1 p.m. ET: A webinar for small businesses, Protecting Sensitive Business and Customer Data: Practical Identity Safety Practices for Your Business, co-hosted by the FTC and IRS focused on tax identity theft, imposter scams targeting businesses, cybersecurity practices to reduce your risk, and data breach response.
  • February 1 at 3 p.m. ET: A Twitter chat for consumers on protecting yourself from tax identity theft, co-hosted by the FTC and the Identity Theft Resource Center. Join the conversation at #IDTheftChat.

If you or your business have legal questions or concerns regarding computer law, privacy, or cybersecurity law matters, contact attorney Jeffrey A. Franklin at Prince Law Offices.


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Answers to Frequent Questions about CHP

Considering Combined Heat and Power (CHP) to save money, enhance reliability, and benefit the environment?  The EPA CHP Partnership and Prince Law Offices can help. 

 CHP Partnership Logo

What is CHP?

Typically, nearly two-thirds of the energy used to generate electricity is wasted in the form of heat discharged to the atmosphere. Additional energy is wasted during the distribution of electricity to end users. CHP is on-site electricity generation that captures the heat that would otherwise be wasted to provide useful thermal energy—such as steam or hot water—that can be used for space heating, cooling, domestic hot water and industrial processes. In this way, and by avoiding distribution losses, CHP can achieve efficiencies of over 80 percent, compared to 50 percent for conventional technologies (i.e., grid-supplied electricity and an on-site boiler).

Learn more in Discover CHP.

What are the benefits of CHP?

CHP offers a number of benefits compared to conventional electricity and thermal energy production, including:

  • Efficiency Benefits. CHP requires less fuel to produce a given energy output and avoids transmission and distribution losses that occur when electricity travels over power lines.
  • Environmental Benefits. Because less fuel is burned to produce each unit of energy output and because transmission and distribution losses are avoided, CHP reduces emissions of greenhouse gases and other air pollutants.
  • Economic Benefits. CHP can save facilities considerable money on their energy bills due to its high efficiency, and it can provide a hedge against electricity cost increases.
  • Reliability Benefits. Unreliable electricity service represents a quantifiable business, safety, and health risk for some companies and organizations. CHP is an on-site generation resource and can be designed to support continued operations in the event of a disaster or grid disruption by continuing to provide reliable electricity.

Learn more in CHP Benefits.

Where does CHP make sense?

CHP is ideally suited for energy users that have both electric and thermal energy demands.

CHP is used in many different types and sizes of facilities nationwide, including:

  • Commercial buildings—office buildings, hotels, health clubs, nursing homes
  • Residential—condominiums, co-ops, apartments, planned communities
  • Institutions—colleges and universities, hospitals, prisons, military bases
  • Municipal—district energy systems, wastewater treatment facilities, K-12 schools
  • Manufacturers—chemical, refining, ethanol, pulp and paper, food processing, glass manufacturing

Learn more in Discover CHP.

Desire more specific assistance regarding CHP, renewable energy projects, energy law, or real estate law, contact attorney Jeffrey A. Franklin at Prince Law Offices, P.C.



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PaPUC Initiates Further Study of Supplier Consolidated Billing by Electric Generation Suppliers

puc_sealOn January 18, 2018, the Pennsylvania Public Utility Commission (PUC) initiated further study of customer billing practices by competitive electric generations suppliers (EGSs) – directing an en banc hearing be conducted before the Commission to explore, among other things, the legality, merits and potential implementation of supplier consolidated billing (SCB).

The Commission voted 5-0 to deny a petition filed by NRG Energy Inc. (NRG), requesting approval of SCB, but also approved a joint motion by Chairman Gladys M. Brown and Commissioner Norman J. Kennard to further explore the the merits of possible alternatives to SCB.

Under SCB, customers would receive a single, consolidated bill from their chosen EGS that would include both their electric distribution company’s (EDC) distribution charges and their EGS’s generation and transmission charges.  Currently in Pennsylvania, EDCs handle all customer billing, with the EDC joint bill including any generation and transmission charges for customers with competitive EGSs.

The joint motion by Chairman Brown and Commissioner Kennard outlined the ongoing exploration of the issue by the Commission.

“We continue to be of the opinion previously expressed by the Commission as part of our retail electricity market investigation that SCB will facilitate the offering of innovative new products and services and will also help the supplier in establishing a brand identity with the customer,” Commissioner Kennard stated in the joint motion. “In order to continue the consideration of SCB and other programs that can promote a competitive market and benefit customers, we find that it is necessary to seek further information.”

The Commissioners’ joint motion directs the PUC’s Law Bureau and Office of Competitive Market Oversight (OCMO) to organize an en banc hearing, to occur on or before June 14, 2018, to allow invited parties the opportunity to provide additional information on SCB or SCB alternatives.  The Commission plans to issue a Secretarial Letter with more details on the en banc hearing.

To learn how Prince Law Offices, P.C. can assist you or your business with energy law and PUC matters, contact attorney Jeffrey A. Franklin at Prince Law Offices, P.C.


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