News in Brief October 11 – VW, Nivea, Bank of America and More

JPMorgan Job Applicant Loses Suit Over Background Check

JPMorgan scored a win in a case filed by a woman who applied for a position at the company and was denied work because of her FBI background check. According to the suit, the plaintiff claimed that the bank violated the Fair Credit Reporting Act by failing to furnish her with a copy of the report, which was produced by the FBI’s fingerprint company Fieldprint, Inc. The judge granted summary judgment to JPMorgan after finding that Fieldprint was not a credit reporting agency under the Act, but rather a “conduit” used by the FBI to send out information.

Suit Calls Nivea Firming Lotion an “Unapproved Drug”

Nivea is facing the heat in California this week after a consumer filed an amended complaint that says the skin-firming lotion she purchased is actually a drug that was never approved by the FDA. The product in the suit is known as “Skin Firming Hydration Body Lotion with CoQ10 Plus” and claims to tighten skin in “as little as two weeks.” According to the suit, the lotion’s skin-firming claims render it a drug under FDA regulations – but the company never submitted it for approval, meaning it placed an unapproved drug on the market. The plaintiff also claims that the product is considered a drug under a state law known as the Sherman Food, Drug and Cosmetic Law.

BoA, Nationstar in Hot Water over Inflated Mortgages

As if houses weren’t expensive enough already, Bank of America and Nationstar Mortgage Holdings are allegedly working together to add “astronomic” amounts to borrowers’ mortgages, according to a proposed class action in California. The plaintiffs say that instead of paying just under $500 for their last mortgage payment, they were hit with a balance of $9,000 – a number they say is mathematically impossible. They say that they are unable to verify the amount they owe because the companies failed to provide a history of their previous mortgage payments.

Volkswagen, Audi Vehicles Recalled Over Fuel Pump Issues

The National Highway Traffic Safety Administration has announced that more than 280,000 Audi and Volkswagen vehicles are being recalled over a problem with the cars’ fuel pumps. Three separate recalls have been issued and affect the following vehicles: 2009-2012 Audi Q5s; 2007-2012 Audi Q7s; 2015-2016 VW Golf, Sportwagen and GTIs; 2015-2016 Audi A3 sedans and cabriolets; 2012-2013 Audi A6 and A7 sedans. Depending on the type of vehicle, the fuel pump issue is believed to stem from the suction pump, fuel hose or fuel pump flange.