Current Events in December 2013

Ally Bank has been ordered to pay $80 million in damages to minorities borrowers who paid higher interest rates for their car loans because of their ethnicity, plus another $18 million in penalties.

harmed African-American, Hispanic, and Asian and Pacific Islander borrowers and $18 million in penalties. The Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) determined that more than 235,000 minority borrowers paid higher interest rates for their auto loans between April 2011 and December 2013 because of Ally’s discriminatory pricing system.

Today’s orders represent the federal government’s largest auto loan discrimination settlement in history.

“Discrimination is a serious issue across every consumer credit market,” said CFPB Director Richard Cordray. “We are returning $80 million to hard-working consumers who paid more for their cars or trucks based on their race or national origin."

Auto loans are the third-largest source of outstanding household debt in the United States, after mortgages and student loans. When consumers finance automobile purchases from an auto dealership, the dealer often facilitates indirect financing through a third-party lender like Ally, one of the largest indirect auto lenders in the United States.

“With this largest-ever settlement in an auto loan discrimination case, we are taking a firm stand against discrimination in a critical lending market,” said Attorney General Eric Holder. “By requiring Ally to provide refunds to those who are overcharged because of their race or national origin, this agreement will ensure relief for Americans who are victimized."

Dealer markup

As an indirect auto lender, Ally sets a risk-based interest rate, or “buy rate,” and then allows auto dealers to charge a higher interest rate when they finalize the deal with the consumer. This is typically called “dealer markup.” Ally then shares some or all of the revenue from that increased interest rate with the dealer. Markups can generate compensation for dealers while giving them the discretion to charge consumers different rates regardless of consumer creditworthiness.

Today’s enforcement action is the result of a CFPB examination that began in September 2012. That examination evaluated Ally’s indirect auto lending program for compliance with the Equal Credit Opportunity Act (ECOA). The ECOA prohibits creditors from discriminating against loan applicants in credit transactions on the basis of characteristics such as race and national origin.

Penalties

Ally is being ordered to:

• Pay $80 million in damages for consumer harm: Ally will pay $80 million to a settlement fund that will go to harmed African-American, Hispanic, and Asian and Pacific Islander borrowers whose auto loans were purchased by Ally between April 2011 and December 2013.
• Pay to hire a settlement administrator to distribute funds to victims: A settlement administrator will contact consumers if necessary, distribute the funds, and ensure that borrowers who were affected receive compensation. 

• Monitor dealer markups to prevent future discrimination or eliminate dealer markups altogether: Ally will implement a compliance program to prevent future discrimination. The program will include dealer education; prompt corrective action against dealers when there are dealer disparities; and portfolio-wide analysis of pricing data for disparities. Until Ally’s compliance program effectively eliminates disparities, Ally will pay harmed consumers each year under the order. 

• Pay an $18 million penalty: Ally will pay an $18 million penalty to the CFPB’s Civil Penalty Fund.

The Campaign for a Commercial-Free Childhood has sent Fisher-Price petitions demanding the company recall an infants' bouncy seat that's equipped with an iPad holder.

“In Campaign for a Commercial-Free Childhood’s 13-year history, no petition we’ve hosted has garnered more signatures — or generated more passion,” said CCFC’s director Dr. Susan Linn. “People expect better of Fisher-Price and are shocked that the company is selling a product with such a cynical disregard for infants’ wellbeing.”

The group says the $80 Fisher-Price Newborn-to-Toddler Apptivity Seat for iPad encourages parents to leave their children unattended under the guise of providing them with an educational activity. To date, the group says the petition has been signed by more than 12,000 parents, grandparents, educators, and health professionals.

The seat is described by Fisher-Price as a "grow-with-me seat for baby that's soothing, entertaining and has a touch of technology, too." Like conventional bouncy seats, the Apptivity Seat puts some hanging toys and a mirror --designed to help children develop facial recognitions skills, as well as teach them a sense of self -- within the child's easy reach. But there' s a twist: the Apptivity Seat allows parents to replace that mirror with an iPad.

That's what has parents, educators and pediatricians fuming. 

"A child's brain develops rapidly during these first years, and young children learn best by interacting with people, not screens," the American Academy of Pediatricians says on its website. It goes on to caution that studies have shown excessive use of multimedia devices by children can lead to a host of issues, including attention problems, difficulty at school and obesity.

Distancing itself?

CCFC sent the petition amid what it sees as signs that Fisher-Price is distancing itself from the controversial iPad bouncy seat.

It quotes Fisher-Price as saying in a statement that it does not “position the Apptivity Seat, or any of our other infant seats, as educational products for children.” CCFC said Fisher-Price also claims that the seat has a timeout feature that “only allows for 10 minutes of activity with our app before requiring a manual reset.”

But CCFC says it timed three apps and found that one, "Laugh & Learn Shapes & Color Music show for Baby," ran indefinitely while two others, "Development with Contrast Colors for Baby" and "Soothing Sights & Songs for Baby," timed out at 12.5 minutes and 13.5 minutes respectively.

“It’s clear Fisher-Price is attempting damage control, but the best way to protect their brand is do the right thing for babies and families and pull the plug on the iPad bouncy seat,” Dr. Linn said.

Devotees of electronic cigarettes -- and industry lobbyists -- swear that smoking and "vaping" are entirely different but New York City begs to differ. The city council voted 43-8 yesterday to add e-cigs to a 2002 law that prohibits smoking in most public places.

And while it was at it, the council also banned foam cups, containers and trays, which environmentalists say are a blight that will continue to despoil the landscape long after the era of human domination has ended. Or something like that.

E-cigs don't really give off smoke but they do emit a visible vapor. E-cig supporters say the vapor is harmless but others aren't so sure. Among them is Jeff Seyler, president of the American Lung Association of the Northeast.

He called the city council's action "a common sense step forward" and said it would help protect the public from secondhand smoke ... uh, vapor. 

“We’re grateful that New Yorkers will not be exposed to potentially unsafe secondhand emissions from electronic cigarettes,” Seyler said in a statement.

"Greatest accomplishments"

Mayor Bloomberg, who has sought to rid New Yorkers of just about every bad habit you can think of, is expected to sign the bill. City Council Speaker Christine Quinn, who failed to win election to succeed the retiring Bloomberg, said the 2002 Smoke-Free Act was "one of our greatest accomplishments."

E-cig boosters said the vote was illogical and "not based on science." One said it made no sense to "ban something just because it looks like smoking."

And as for those foam cups and meal containers -- they will soon be history, as the council voted unanimously to ban them from the Big Apple. Oh, and another thing: restaurants will be required to compost their waste under yet another measure approved by the city fathers and mothers yesterday.

Thursday's city council session was the last of the year, so if your favorite vice has not yet been banned, you have a few more weeks to enjoy it.

If you ordered acai berry supplements or "colon cleansers" from Central Coast Nutraceuticals, you may be getting a check in the mail.

An administrator working for the Federal Trade Commission is mailing 316,716 checks averaging $18.74 each to consumers who bought products from the company.

In August 2010, the FTC charged Central Coast Nutraceuticals with multiple violations, including unfair billing practices, and deceptively advertising Acai Pure, an acai berry supplement, as a weight-loss product, and Colotox, a colon cleansing supplement, as an aid for preventing cancer.

The checks, which total $5,936,243.63, must be cashed within 60 days after they are issued.  The deadline for filing a refund request has expired.

Consumers who have questions should call (877) 283-6531.  For more general information, see www.FTC.gov/refunds.  The FTC never requires consumers to pay money or provide information before redress checks can be cashed. 

The economy wasn't just chugging along during the summer -- it was hitting on all cylinders.

The government reports real gross domestic product (GDP) -- the output of goods and services produced by labor and property located in the U.S. -- increased at an annual rate of 4.1% in the third quarter.

The “third” estimate of GDP, released by Bureau of Economic Analysis, is based on more complete source data than were available for the "second" estimate of 3.6% issued earlier this month. The updated data showed that the increases in personal consumption expenditures (PCE) and in nonresidential fixed investment were larger than previously estimated.

Major factors

The increase in real GDP in the third quarter primarily reflected positive contributions from private inventory investment, PCE (+2.0%), nonresidential fixed investment (+4.8%), exports, residential fixed investment (+10.3%), and state and local government spending (+1.7). These were partly offset by a decline in federal government spending (-1.5). Imports, which are a subtraction in the calculation of GDP, increased (+2.4).

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.8% in the third quarter -- the same as in the second estimate. It was up 0.2% in the second quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 1.5% in the third quarter, compared with an increase of 0.8% in the second.

The complete report is available on the Commerce Department website.

Playtex Products of Dover, Del., is recalling about 341,000 Playtex Hip Hammock infant carriers in the U.S. and Canada.

The buckles on the waist and shoulder straps can crack or break, posing a fall hazard to the child.

The company has received 87 reports of the buckles cracking or breaking, including two reports of injuries, where one infant required emergency room treatment.

The Playtex Hip Hammock is an infant carrier designed to strap the baby against the caregiver’s body at the hip. It is made of a soft, quilted fabric and intended for babies that are from 15 to 35 pounds. The child seat is attached with straps that wrap around the carrier’s hips and shoulder. “Playtex Hip Hammock” is printed on a label sewn into the front of the carrier. All model numbers are being recalled. Model numbers 05300, 05301, 05302, 05306, 05307 and 05308 are sewn into the inside panel below the instructions for use. They come in basic and deluxe styles. The hip hammock’s fabric is suede or ultra-suede in black or navy colors on the outside, and the inside lining is black, black and white check or burgundy.

The infant carriers, manufactured in China, were sold at Burlington Coat Factory, Target, Walmart, juvenile product, baby and discount stores nationwide and online at Amazon.com from June 2004, through December 2008, and January 2010 in Canada for about $40 for the basic model and $60 for the deluxe model.

Consumers should stop using the carrier and contact Playtex for instructions on how to return the product for a full refund.

Consumers may contact Playtex at (800) 522-8230 from 8 a.m. to 6 p.m. ET Monday through Friday.  

Red Wing Shoe Company of Red Wing, Minn., is recalling about 114,000 pairs of steel toe work boots in the U.S. and Canada.

The steel toe cap in the boots could fail to protect the wearer’s feet in an impact.

No incidents or injuries have been reported.

This recall involves 45 styles of Red Wing men’s steel toe work boots in sizes 11 to 18 and widths ranging from B to H depending on the size and style. The boots have 6, 8, 10 or 11 inch ankle height and were sold in brown, black and maroon-colored leather.

The following style numbers are included in the recall: 2206, 2211, 2223, 2226, 2230, 2238, 2249, 2254, 2270, 2404, 2405, 2406, 2408, 2412, 2414, 2426, 2491, 3505, 3507, 3508, 3526, 3528, 3568, 4208, 4210, 4273, 4406, 4414, 4425, 4433, 4435, 4436, 4437, 4438, 4445, 4481, 4483, 4484, 4494, 22406, 22408, 52406, 52408, 82406 and 82408.

Date codes between 10/12 and 11/13 are included in the recall.

The style number, date code and Red Wing Shoes are printed on a label inside the boot’s tongue. See the firm’s website for the complete list.

The boots, manufactured in the U.S., were sold at Red Wing stores and other shoe stores from October 2012, through November 2013, for between $185 and $340.

Consumers should stop wearing the recalled boots immediately and return them to a Red Wing store/dealer or contact Red Wing Shoes for a free replacement pair of boots.

Consumers may contact Red Wing Shoes at (800) 733-9464 from 7 a.m. to 5 p.m. CT Monday through Friday, between 9 a.m. and 12 p.m. CT Saturday, or by email at voluntary.recall@redwingshoes.com.

Storefront payday loan companies seem to be everywhere, especially in areas where lower-income consumers live, work and shop. They're especially busy this time of year.

Consumer advocates generally urge consumers to avoid them, warning that if you don't have money now and need a loan, what makes you think you're going to have the money in two weeks, when payment is due? When you can't pay, you have to take out another two-week loan, trapping the borrower in what consumer advocates call a “cycle of debt.”

Adam Rust, of Durham, N.C.-based Reinvestment Partners, has studied the payday loan industry as a business. He recently authored a report that traces the source of the money that payday lenders lend. It comes in large part, he says, from the nation's largest banks, including Bank of America and Wells Fargo.

Connecting the dots

According to his report – Connecting the Dots: How Wall Street Brings Fringe Lending to Main Street – payday lenders borrow money from the biggest banks at a little over six percent interest and charge consumers often in excess of 500%.

"This report draws a clear line between regulated financial institutions that hold millions of Americans' deposits and the fringe lenders that routinely threaten their bank accounts," Rust said. This chart, from Rust's report, shows the relationship between Wells Fargo and selected lenders.

To uncover his evidence Rust has followed publicly traded payday lenders just like any Wall Street analyst. He listens in to quarterly conference calls and studies documents the companies are required to file with the Securities and Exchange Commission (SEC).

$5.5 billion in loans

His research identified $5.5 billion in lines of credit and term loans issued by the banks. He says the filings show major banks are making loans to virtually every one of the country's largest payday and car title lenders, rent-to-own companies, buy-here pay-here car lenders, tax refund check providers, and pawn brokers.

Rust says nine of the 10 banks with the greatest levels of participation in fringe lending are national banks regulated by the Office of the Comptroller of the Currency (OCC), which periodically reviews the exposure held by their member institutions to products and practices that expose them to undue legal and reputational risk.

Being part of the payday lending food chain, Rust believes, is enough to damage a respected bank's reputation. Cutting off or reducing the supply of money flowing to these high-interest lenders, he believes, would deal a serious blow to the industry. How big a blow, he admits, is hard to know.

Probably a significant blow

“I think it would impact the scale of financing they would be able to tap,” Rust said. “With a reduced supply of funds and different terms I think they would end up paying more for it.”

The payday lenders, themselves, apparently believe it would be a significant blow if a major source of cheap funds suddenly dried up. As he has listened in to recent quarterly conference calls from what he calls “fringe” lenders, Rust says corporate executives have said things like losing access to financing "could adversely affect our operations," "would have a materially adverse effect on the company," and "adversely affect our ability to achieve our planned growth and operating results."

Pressure

Rust would like to see pressure placed on banks to get out of financing these storefront operators. He points out the total amount loaned to these lenders makes up a tiny portion of the banks' total loan portfolios.

Payday lenders don't operate in all states. Some states have passed laws capping interest rates at 36% APR. The effective interest rate on a typical payday loan is deep into triple digit territory. Couldn't payday lenders charge less and still make money?

“I think the evidence out there suggests that's pretty hard,” Rust said. “The business model is troubled because the payday lenders have to work under the assumption they're going to have significant loan losses. They're setting aside lots of money with the expectation that an awful lot of these loans are going to go bad.”

Rust says he would like to see the OCC force the banking institutions they regulate to divest from companies making short-term, high cost consumer loans.

Ocwen Financial will provide $2 billion in principal reductions to underwater homeowners and refund $125 million to the nearly 185,000 homeowners who have already been through foreclosure, as part of a consent order with the Consumer Financial Protection Bureau (CFPB), authorities in 49 states, and the District of Columbia.

Ocwen, the country's largest nonbank mortgage servicer, will also agree to implement stringent new homeowners protections. Headquartered in Atlanta, the company is responsible for collecting mortgage payments and providing customer service to homeowners.

“Deceptions and shortcuts in mortgage servicing will not be tolerated,” said CFPB Director Richard Cordray. “Ocwen took advantage of borrowers at every stage of the process. Today’s action sends a clear message that we will be vigilant about making sure that consumers are treated with the respect, dignity, and fairness they deserve.”

Ocwen specializes in servicing subprime or delinquent loans and places a major emphasis on resolving delinquency through loss mitigation or foreclosure. In recent years, it has acquired competitors – including Homeward Residential Holdings LLC (formerly American Home Mortgage Servicing Inc.) and Litton Loan Servicing LP. It has also acquired the mortgage servicing rights from the portfolios of some of the country’s largest banks.

Today's action grew out of a 2012 examination by state financial regulators that identified potential violations at Ocwen. In addition, the Federal Trade Commission referred its investigation of Ocwen to the CFPB after the Bureau opened in July 2011. The Bureau then teamed with state attorneys general and state regulators to investigate and resolve the issues identified. 

"Since my loan servicing was transferred to Ocwen in July, life has been hell," said Pamela of Largo, Fla., in a posting to ConsumerAffairs. "I have 20 years experience in the mortgage and real estate fields, including servicing and default, and have never seen such blatant abuse of mortgagors."

Pamela, like many other homeowners, said she has been charged unjustified fees, even to the point of being charged for the postage on the certified letters Ocwen has sent her claiming she is delinquent in her payments.

Pushed into foreclosure

The CFPB and its partner states said they believe that Ocwen was engaged in "significant and systemic misconduct that occurred at every stage of the mortgage servicing process." According to the complaint filed in the federal district court in the District of Columbia, Ocwen’s violations of consumer financial protections put thousands of people across the country at risk of losing their homes. 

The complaint chrarges that Ocwen failed to apply payments, failed to maintain accurate account statements, charged borrowers unauthorized fees, forced homeowners to pay for insurance even when they already had adequate coverage and provided false information when responding to consumer complaints.

The complaint also charges that Ocwen deceived customers about foreclosure alternatives, improperly denied loan modifications and engaged in illegal foreclosure practices.

Tina of Henderson, N.C., told ConsumerAffairs Ocwen did nothing to help her stay in her home and refused to take payments that would have brought her account current.

"They are not working with me to stay in my home. They will not take my payments I have tried to send into them -- as soon as I have gotten money I have sent it," she said. "Then find out they refused three payments ... that I know of so far," resulting in late fees of more than $125.

Today's proposed court order will bar Ocwen from committing such violations in the future. It requires Ocwen to provide $125 million in refunds to foreclosed-upon consumers and $2 billion in loan modification relief to its customers through principal reduction. The refunds and relief also apply to consumers whose loans were previously serviced by Homeward Residential Holdings and Litton Loan Servicing.

What to do

For loan modification options, eligible borrowers may be contacted directly by Ocwen. Or borrowers may contact Ocwen to obtain more information about specific loan modification programs and to find out whether they may be impacted by this settlement. Ocwen can be reached at 1-800-337-6695 or ConsumerRelief@Ocwen.com.

Ocwen will also provide $125 million in refunds to foreclosure victims whose loans were being serviced by Ocwen, Homeward Residential Holdings, or Litton Loan Servicing, and who lost their homes to foreclosure between Jan. 1, 2009 and Dec. 31, 2012. All eligible consumers who submit valid claims will receive an equal share of the $125 million. Eligible consumers can expect to hear from the settlement administrator about potential payments.

Motorists are, for the most part, aware that when you file a claim or two on your auto insurance, your rate will go up. But how much, exactly?

Insurancequotes.com, an insurance comparison website, conducted a study to find out. The rate hikes after a single claim vary state-to-state but average 38% nationwide.

If you happen to live in Massachusetts, you'll pay a lot more. The Bay State registered the steepest one-claim rate hike at 67%.

California was not far behind, at 62%. Maryland has the lowest post-claim increase at only 20%, followed by Alabama at 22% and Michigan at 23%. File a second claim and it's a much more severe hit. A driver with two claims pays nearly twice as much for car insurance as a claim-free driver – an average of 86% more.

Biggest lesson

"The biggest lesson for consumers is not to file a claim unless absolutely necessary," said Laura Adams, a senior analyst at InsuranceQuotes.com. "Making a claim for a few hundred dollars doesn't make sense if your premium is going to skyrocket as a result."

Most personal finance experts agree. So it makes no sense to pay a higher monthly premium for a low-deductible insurance policy that pays for everything after the first $100 or so. A high-deductible policy, requiring you to pay the first $1000 in repairs, will cost less on a monthly basis.

If the damage total is $1500 you would be much better off paying the entire amount out of pocket rather than filing a claim for $500. Then why even have insurance, you may ask?

It's a legitimate question but one that ignores how the insurance industry works. It's all based on risk and once you file a claim, you go on the risk list. Yes, you can make the insurance company pay for all the damage the contract requires them to pay for. It's just that when you do, they will raise your rates to cover your increased perceived risk except go to another insurance company. And the first question they will ask is “have you filed a claim in the last two years?”

Injury or property claims even costlier

The InsuranceQuotes.com study also found the severity of an accident resulting in a claim also has a big impact on post-claim rate hikes. Bodily injury and property damage claims are the most expensive, raising rates an average of 42% and 41% respectively. Comprehensive claims, for non-collision events such as theft. are the cheapest, barely moving the needle at two percent.

To decide whether it pays to make a claim check out this calculator. 

Besides filing a claim, the kind of car can affect your insurance rate. In general, a four-cylinder car is less costly to insure than a six- or eight-cylinder car.

“Insurance companies are all looking at the claims different cars produce,” said Kim Lankford, who covers insurance issues for Kiplinger's. “They're slicing and dicing it in various ways, looking at the correlations between car models and claims.”

Even without a muscle car and a claim or two, most consumers are facing higher car insurance rates. A recent study by the Consumer Federation of America found auto insurance rates have increased by 43% on average in the last 25 years, with only California showing a decrease. The study concludes that non-driving factors, like credit scores, considered by insurance companies when setting rates, are behind the increase.

Target says it's sorry. That may be scant comfort, however, to 40 million consumers whose credit- and debit-card numbers may have been stolen by thieves who broke into Target's computer system over the Black Friday weekend. The breach continued until Dec. 15. 

The Wall Street Journal said the data thefts happened in stores rather than online. It may have involved tampering with the machines that customers use to swipe their cards when making a purchase, the newspaper said.

The theft was national in scope and happened in stores, not online, and may have involved tampering with the machines customers use to swipe their cards when making purchases, people familiar with the matter said.

“Target’s first priority is preserving the trust of our guests and we have moved swiftly to address this issue, so guests can shop with confidence. We regret any inconvenience this may cause,” said Gregg Steinhafel, chairman, president and chief executive officer, Target. “We take this matter very seriously and are working with law enforcement to bring those responsible to justice.”

Not much help

Beyond its expressions of regret, however, Target doesn't appear to be doing much to help the consumers whose confidential information was entrusted to its care.

"You should remain vigilant for incidents of fraud and identity theft by regularly reviewing your account statements and monitoring free credit reports," Target recommended in an open letterto customers. It didn't offer to pay for credit reports or protective measures.

"If you discover any suspicious or unusual activity on your accounts or suspect fraud, be sure to report it immediately to your financial institutions.  In addition, you may contact the Federal Trade Commission (FTC) or law enforcement to report incidents of identity theft or to learn about steps you can take to protect yourself from identity theft," the Target letter further advises.

Target said it is "partnering with a leading third-party forensics firm" to conduct a thorough investigation of the incident. It's reported that the Secret Service is also investigating.

A high level of protection in crashes and the availability of front crash prevention technology to avoid many collisions in the first place means you're likely to be safer on the road.

By meeting those standards, 22 vehicles earned the Insurance Institute for Highway Safety's (IIHS) highest safety award for 2014, TOP SAFETY PICK+. An additional 17 earn TOP SAFETY PICK by meeting the crashworthiness criteria alone.

New criteria

The institute is using new criteria for the awards this year. TOP SAFETY PICK requires good performance in the moderate overlap front, side, roof strength and head restraint tests and -- for the first time -- good or acceptable performance in the small overlap front test introduced in 2012. The same level of performance in those tests, along with at least a basic rating for front crash prevention, is required for the higher accolade, TOP SAFETY PICK+.

"We've made it more difficult for manufacturers this year," says IIHS President Adrian Lund. "Following a gradual phase-in, the small overlap crash is now part of our basic battery of tests, and good or acceptable performance should be part of every vehicle's safety credentials. We also felt it was time to offer extra recognition to manufacturers that are offering a proven crash avoidance technology."

The winners

The front crash prevention features of the TOP SAFETY PICK+ winners run the gamut from basic warning systems, such as those offered on the Ford Fusion, Lincoln MKZ and Honda's four winners, to Subaru's EyeSight warning and autobrake system. EyeSight avoids a collision in tests at both 12 mph and 25 mph and is available on the Forester, Legacy and Outback.

Most of the TOP SAFETY PICK+ winners qualify for the award only when equipped with optional front crash prevention systems. When those vehicles aren’t equipped with the features, they still meet the regular TOP SAFETY PICK criteria. The Volvo S60, S80 and XC60 and the Honda Civic hybrid earn TOP SAFETY PICK+ on the basis of standard equipment.

The 2014 TOP SAFETY PICK+ winners include eight models that didn’t earn the award in 2013. Among them are fully redesigned models, including the Acura MDX and RLX, Infiniti Q50, Mazda 3 and Toyota Highlander. Among TOP SAFETY PICK winners, the Chevrolet Spark minicar is a new model.

Some winners that did not undergo a full redesign were modified to improve small overlap performance. This includes the popular Toyota Camry, which now qualifies for TOP SAFETY PICK. The 2012-13 Camry models were rated poor for protection in a small overlap front crash, but the 2014 model earns an acceptable rating. The Toyota Prius and the Mazda CX-5 also were tweaked and now earn TOP SAFETY PICK+. Changes to these vehicles and some others were made after the 2014 model year started. See the list of winners for manufacture dates.

Newbies and repeaters

The Volvo S80, a large luxury car, is new to the TOP SAFETY PICK+ list because it hadn’t been previously tested for small overlap performance. However, it has had the same basic design since 2007, so its good small overlap result applies to earlier models as well.

Honda/Acura has the most winners of any automaker, with six models earning TOP SAFETY PICK+ and two earning TOP SAFETY PICK.

With the changes to the criteria, the number of TOP SAFETY PICK+ and TOP SAFETY PICK winners falls from a combined 130 at the time of the initial announcement of 2013 winners to 39 for 2014. Vehicles that have fallen off the list have less than acceptable ratings for small overlap protection or they haven’t been tested yet. All models that made it to the 2013 winners' circle continue to offer a high level of protection in four main crash types -- moderate overlap front, side, rollover and rear.

What would happen if a fast-food restaurant reduced the calories in a children’s meal by 104 calories, mainly by decreasing the portion size of French fries? Would children compensate by choosing a more calorie-dense entrée or beverage?

That's what researchers at Cornell University wanted to find out and, fortunately, they got some help from 30 McDonald's restaurants, which agreed to reduce the size of a serving of French fries in children's Happy Meals.

Prior to 2012, the Happy Meal was served with one of three entrée options (chicken nuggets, cheeseburger, hamburger), a side item (apples or small size French fry), and a beverage (fountain beverage, white milk, chocolate milk, apple juice). By April 2012, all restaurants participating in the experiment served a smaller size “kid fry” and a packet of apples with each Happy Meal. That cut 104 calories.

The question posed by the researchers -- Dr. Brian Wansink and Dr. Andrew Hanks -- was whether kids would make up the calorie deficit elsewhere.

Wansink and Hanks found that 99% of children ordered the same entrée, and orders of chicken nuggets (the lowest calorie entrée) remained flat at nearly 62% of all orders. Yet, nearly 11% fewer children took caloric soda as a beverage and 22% more chose white or chocolate milk – a more satiating beverage. This increase was partially due to small changes in advertising for milk. Interestingly, the chocolate milk served in 2012 was of the fat-free variety compared to the 1% milk variety served previously. It also contained 40 fewer calories.

Overall, the substitutions in beverage purchases resulted in 6 fewer calories served with the average CMB.

It worked

Their conclusion: Small changes in the automatic — or default — foods offered or promoted in children’s meals can reduce calorie intake and improve the overall nutrition from selected foods as long as there is still an indulgence.

Importantly, balancing a meal with smaller portions of favored foods might avoid reactance and overeating. Just as managers have done this in restaurants, parents can do this at home.

Many people regard chicken as a more healthful food than red meat but a new study by Consumer Reports magazine may cause them to think again. The magazine found bacteria that could make consumers sick on nearly all of the 316 raw chicken breasts purchased at retail nationwide.

The full report, “The High Cost of Cheap Chicken,” is featured in the February 2014 issue of Consumer Reports and online at www.ConsumerReports.org.

While Consumer Reports has consistently been testing chicken for more than 15 years, this is the first time it has looked at the contamination rates for six different bacteria – enterococcus (79.8 percent), E.coli (65.2 percent), campylobacter (43 percent), klebsiella pneumonia (13.6 percent), salmonella (10.8 percent), and staphylococcus aureus (9.2 percent).

It also evaluated every bacterium for antibiotic resistance and found that about half the chicken samples harbored at least one multidrug-resistant bacteria.

The researchers also reported that many consumers are confused about labeling and think that chickens labeled as "natural" did not receive antibiotics or genetically modified feed and more than one-third thought “natural” was equal to “organic,” none of which is true.

"Our tests show consumers who buy chicken breast at their local grocery stores are very likely to get a sample that is contaminated and likely to get a bug that is multidrug resistant. When people get sick from resistant bacteria, treatment may be getting harder to find,” said Dr. Urvashi Rangan, a toxicologist and Executive Director of the Consumer Reports Food Safety and Sustainability Center.  “Our survey also shows that consumers are making buying decisions based on label claims that they believe are offering them additional value when that is not in fact the case. The marketplace clearly needs to change to meet consumer expectations.”

Consumer Reports’ study comes at a time when 48 million people are falling sick and 3,000 dying in the United States each year from eating tainted food, with more deaths being attributed to poultry than any other commodity, according to the Centers for Disease Control and Prevention.

What to do

Consumer Reports advises consumers to follow these tips to ensure proper handling and cooking of chicken:

• Wash hands when handling any type of meat or poultry – frozen or fresh – before touching anything else and wash them for at least 20 seconds with hot soapy water – even if it means multiple washings.

• Use a cutting board designated strictly for raw meat and poultry. When done, place it in the dishwasher directly from the counter or wash with hot soapy water.

• Don’t run chicken under the faucet before cooking.

• When cooking, use a meat thermometer and always cook chicken to 165°F.

• When shopping, buy meat last; keeping chicken cold delays bacteria overgrowth.  Place chicken in a plastic bag to prevent other items from contamination.

• Buy chicken raised without antibiotics to help preserve the effectiveness of these drugs; avoid meaningless labels like “natural” and “free range”.

November was a tough month for people trying to sell a home, although those who were successful likely saw a price increase.

Figures released by the National Association of Realtors (NAR) show existing-home sales were down 4.3% last month to a seasonally adjusted annual rate of 4.90 million. The decline pushed the rate 1.2% below the pace of 4.96 million a year ago, and marks the first time in 29 months that sales were below year-ago levels.

Existing home sales measure completed transactions that include single-family homes, townhomes, condominiums and co-ops.

Higher rates a factor

It appears the market is being squeezed by several factors. “Home sales are hurt by higher mortgage interest rates, constrained inventory and continuing tight credit,” said NAR Chief Economist Lawrence Yun. “There is a pent-up demand for both rental and owner-occupied housing as household formation will inevitably burst out, but the bottleneck is in limited housing supply, due to the slow recovery in new home construction. As such, rents are rising at the fastest pace in five years, while annual home prices are rising at the highest rate in eight years.”

The national median existing-home price for all housing types was $196,300 in November -- up 9.4% from a year earlier. Distressed homes -- foreclosures and short sales -- accounted for 14% of November sales, unchanged from October and down 8% from November 2012. A smaller share of distressed sales is contributing to price growth.

A broad-based decline

Existing-home sales in the Northeast declined 3.0% to an annual rate of 650,000 in November, but are still 6.6% above November 2012. The median price was up 5.7% from a year ago -- to $242,900.

In the Midwest, sales were down 4.1% to a pace of 1.17 million, but are unchanged from a year ago. The median price was $151,100 -- up 6.7% from November 2012.

A 2.4% decline in the South pushed sales down to an annual level of 2.01 million. Still they are 1.0% than they were in November 2012. The median price of $168,700 is up 7.7% from the same time last year.

Sales of previously-owned homes in the West plunged to a pace of 1.07 million -- down 8.5% from October and 10.1% from a year ago. The median price, however, was $284,400 -- up 16.5% year-over-year.

Jobless claims

The unemployment line got a little longer last week, as 379,000 people filed first-time applications for jobless benefits -- an increase of 10,000 from the previous week. Economists surveyed by Briefing.com were looking for the number to come it at 333,000

According to the Labor Department (DOL), the Thanksgiving and Christmas holidays are still causing problems in the claims data, leading analysts to speculate that it's unlikely a clear and unbiased reading of the claims data will come until after the new year.

The 4-week moving average, which is less volatile than the weekly number and considered a more accurate gauge of the labor market, rose 13,250 -- to 343,500.

The full report  is available on the DOL website.

Fox Factory of Watsonville, Calif., is recalling about 12,500 Evolution 2013 mountain bike suspension forks in the U.S. and Canada.

The suspension fork’s damper cylinder/piston can separate and cause the front wheel to detach, posing a fall hazard.

The company has received one report of an incident in Italy resulting in shoulder injuries.

The recalled suspension forks are model year 2013, 32 and 34 Evolution Series with 120mm to 160mm of travel. The Evolution name and logo are on a sticker on the front fork with the FOX brand name logo. Recalled forks can be identified by the serial number, which is found on the underside of the crown after removing the front wheel. The forks were sold as original equipment on some of the following 2013 model year mountain bikes: BMC, Cannondale, Commencal, Diamondback, GT, Kona, Lapierre, Norco, Orbea, Raleigh, Rocky Mountain, Santa Cruz, Scott, Specialized and Trek. A small quantity of suspension forks were sold to retailers or distributors as aftermarket accessories.

The forms, manufactured in the U.S, were sold at bicycle retailers nationwide between August 2012, and October 2013, as original equipment on bicycles priced from about $2,000 to $4,400. Products sold for aftermarket use for about $600 to $650.

Consumers should stop using the bicycles with recalled Fox Factory suspension forks and bring them to the place of purchase for a free repair. Consumers can check their serial number at www.ridefox.com/, see the link at the lower left of the page, or contact Fox for assistance with discerning whether their bicycle has the recalled product and for instructions on how to return the recalled product and receive the free repair if they cannot bring their bicycle or fork to the place of purchase.

Consumers may contact Fox toll-free at (855) 360-3488 from 8 a.m. to 5 p.m. PT Monday through Friday.

Stone Independent Research of Syracuse, N.Y., has issued a recall  for two dietary supplements marketed as weight loss and “male enhancement” products.

Both contain milk, an allergen not listed on the label. No illnesses have been reported to date for either product.

The first recall involves 1,040 units of Zanocap Scientific Weight Loss 500 mg capsules. The product was sold to one customer who further distributed it nationwide through Internet sales. The affected lot was distributed beginning on June 1st, 2013.

The dietary supplement packaged in a white plastic bottle containing 90 capsules per bottle, with a white label and blue and black print. The affected lot code is 10W15013 with an expiration date of 05/2015. No other lots of this product are affected by the recall.

Consumers who purchased the recalled product may return it to: ATTENTION ZANOCAP RECALL, 4022 Mill Road, Skaneateles, NY 13152 for refund or replacement.

Customers may contact the company at (607) 372-3901, Monday – Thursday, 10 AM – 5 PM ET, for further instructions and claim processing.

The second recall is for 15,657 units of EnhanceRx, which is manufactured for and distributed by Secure Online Shopping Cart, LLC, and sold nationwide via the Internet.

EnhanceRx is a dietary supplement packaged in a white plastic bottle containing 30 capsules per bottle. The two lots affected by this recall are: # 23002 (Exp. 06/20/2015) and # 23003 (Exp. 11/15/2015). They entered the marketplace on June 1st, 2013.

Consumers may return the recalled product to: ATTN: ENHANCE RETURN, 4022 Mill Road, Skaneateles, NY 13152 for a full refund or exchange.

Customers may contact the company at (607) 372-3901, Monday-Thursday, 10AM – 5PM, ET for further instructions and claim processing.

The end of the year, besides bringing holiday merrymaking, should also include a little tax planning. There are receipts to find and records to review – not just for the upcoming tax season but for the year ahead.

In 2014 your tax liability might change, for no other reason than you move into a different tax bracket. In the coming year your income doesn't have to rise or fall for that to happen. The current six tax brackets will expand to seven.

Here is how the new tax brackets break down:

• 10% – Single earning less than $9,075, married filing jointly earning less than $18,150 or head of household earning less than $12, 950
• 15% – Single earning $9,076 - $36,900, married filing jointly earning $18,151 - $73,800 or head of household earning $12,951-$49,400
• 25% – Single earning $36,901-$89,350, married filing jointly earning $73,801-$148,850 or head of household earning $49,401-$127,550
• 28% – Single earning $89,351-$186,350, married filing jointly earning $148,851-$226,850 or head of household earning $127,551-$206,600
• 33% – Single earning $186,351-$405,100, married filing jointly earning $226,851-$405,100 or head of household earning $206,601-$405,100
• 35% – Single earning $405,101-$406,750, married filing jointly earning $405,101-$457,600 or head of household earning $405,101-$432,200
• 39.6% – Single earning $406,751 and above, married filing jointly earning $457,601 and above or head of household earning $432,201 and above

The above numbers, of course, reflect taxable income – the amount after you take all applicable deductions and credits. They are also marginal tax rates, meaning the first $9,075 your earn as a single taxpayer is taxed at 10% and the rest is taxed at the higher rates as your income rises through the brackets.

Last-minute 2013 tips

If you plan an end of the year donation to a charity, the Internal Revenue Service reminds you that this is the last year to take advantage of a special Individual Retirement Account (IRA) provision. If you do it before December 31, taxpayers age 70 ½ or older can directly transfer tax-free up to $100,000 to an eligible charity.

This option, first available in 2006, can be used for distributions from IRAs, regardless of whether the owners itemize their deductions. Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension (SEP) plans, are not eligible.

To qualify, the money must be transferred directly by the IRA trustee to the eligible charity. Distributed amounts may be excluded from the IRA account-holder's income, resulting in lower taxable income for the IRA owner. However, if the IRA owner excludes the distribution from income, no deduction, such as a charitable contribution deduction on Schedule A may be taken for the distributed amount.

If you plan to take a tax deduction by donating clothing and household goods to a charity, remember that the items must be in “good used condition” or better. If the donated item is worth $500 or more it doesn't have to meet this test, as long as the taxpayer includes a qualified appraisal of the item with the return.

Donors must also get a written acknowledgement from the charity for all gifts worth $250 or more that includes, among other things, a description of the items contributed. Household items include furniture, furnishings, electronics, appliances and linens.

Making a cash donation? To claim it you'll need a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Bank records include canceled checks, bank or credit union statements, and credit card statements. Bank or credit union statements should show the name of the charity, the date, and the amount paid. Credit card statements should show the name of the charity, the date, and the transaction posting date.