Current Events in November 2014

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    Franklin Loan to pay $730,000 for illegal bonus program

    Feds say the company rewarded employees for steering consumers into more expensive loans

    A California mortgage lender, Franklin Loan Corporation, has been ordered to pay $730,000 for giving its employees illegal bonuses for steering consumers into loans with higher interest rates.

    “Today’s action will put $730,000 back in the pockets of consumers who may have never suspected that they had been harmed,” said Consumer Financial Protection Bureau Director Richard Cordray. “Paying bonuses for steering borrowers into more expensive loans violates their trust and is against the law.”

    Franklin Loan is a residential mortgage lender with 18 locations across Southern California and one in Chicago.

    The CFPB said that Franklin Loan originated approximately $887 million in loans between 2011 and 2013. From June 2011 to October 2013, it paid at least $730,000 in quarterly bonuses to 32 loan officers based in part on the interest rates on the loans they provided to borrowers; the higher the interest rate of the loans closed during the quarter, the higher the loan officer’s quarterly bonus.

    The CFPB found that these bonus payments violated the Federal Reserve Board’s Loan Originator Compensation Rule, which the Bureau has enforced since July 21, 2011. The rule prohibits mortgage lenders from paying loan officers based on loan terms such as interest rate. 

    Today’s consent order will ensure that all affected consumers are repaid and that no more consumers are harmed by the illegal compensation system. Franklin Loan has agreed to end its practice of incentivizing loan officers to upcharge consumers by paying quarterly bonuses based, in part, on the interest rates of loans they originated. Franklin Loan will also pay $730,000 in redress to affected consumers. The CFPB did not seek a civil penalty based on Franklin’s financial condition and the Bureau’s desire to maximize relief directly from Franklin Loan to affected consumers.

    A California mortgage lender, Franklin Loan Corporation, has been ordered to pay $730,000 for giving its employees illegal bonuses for steering consumers i...

    Identity theft conviction nets 9 years in prison for organized cybercrime member

    More than $50 million taken in online thefts, prosecutors charged

    Tony Soprano had nothing on the made men of Carder.su, an organized cybercrime ring that federal prosecutors say stole more than $50 million in an identity theft and credit card scam. 

    And today a Georgia man, Cameron "Kilobit" Harris, 28, was sentenced to 9.5 years of real, not virtual, prison time and ordered to pay $50.8 million in restitution for his role in the scheme.

    “Cyber thieves created a real criminal organization through the virtual world of the Internet, stealing credit card data and relying on technology, perceived anonymity, and international borders to evade law enforcement,” said Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division. “Cameron Harrison made a living by using that stolen financial information.. Applying time-honored techniques from mob and gang prosecutions to this new generation of cybercriminals, we were able to infiltrate and bring down the Carder.su ring.”

    Criminal enterprise

    Harrison admitted at his guilty plea hearing that he became associated with the Carder.su organization in June 2008. According to Harrison’s admissions, Carder.su was an Internet-based, international criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications and committed money laundering, narcotics trafficking and computer crimes.

    Harrison admitted that he purchased compromised credit card account data and other personal identifying information from fellow Carder.su members. He also admitted to possessing over 260 compromised credit and debit card numbers, which were recovered from his computer and email accounts following his arrest.

    Harrison was identified when he purchased a counterfeit Georgia driver’s license from an undercover special agent through the Carder.su network. During interactions with the undercover special agent, Harrison admitted to having been a vendor of counterfeit identifications in the defunct cyberfraud organization “ShadowCrew.”

    Fifty-five individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 26 individuals have been convicted and the rest are either fugitives or are pending trial.

    Harrison pleaded guilty in April 2014 to participating in a racketeer influenced corrupt organization, conspiracy to engage in a racketeer influenced and corrupt organization, and trafficking in and production of false identification documents.

    “The financial toll exacted by identity theft and credit card fraud can be crippling to victims both financially and emotionally,” said Daniel G. Bogden of the District of Nevada. “These are far from victimless crimes and the members of this organization were responsible for the theft of over $50 million. We are working diligently with our law enforcement partners to ensure that the people who commit these high-tech crimes are put out of business.”

    Tony Soprano had nothing on the made men of Carder.su, an organized cybercrime ring that federal prosecutors say stole more than $50 million in an identity...

    Christmas disappears from some Maryland schools

    Montgomery County tries to finesse request for Muslim school holidays

    Christmas has vanished from the Washington, D.C. suburb of Montgomery County, Maryland. Christmas isn't alone though -- so have Easter, Yom Kippur and Rosh Hashanah. They have been taken off the school calendar for next year.

    The county's school board voted 7-1 to eliminate references to all religious holidays on the published calendar for the 2015-2016 school year. It came about due to Muslim community leaders asking that the board give equal billing to the Muslim holy day of Eid al-Adha.

    The day commemorates Ibrahim (Abraham)'s willingness to sacrifice his young first-born and only son in obedience to a command from God.

    Muslims in the affluent county -- home to the Food and Drug Administration and National Institutes of Health -- have been asking for years that the schools close for at least one of the two major Muslim holidays. Instead, the school board decided to remove all references to any religious holiday.

    Glaring error?

    Muslim leaders did not intend for things to turn out as they did. They say the decision was a surprise — and a glaring mistake.

    “By stripping the names Christmas, Easter, Rosh Hashanah and Yom Kippur, they have alienated other communities now, and we are no closer to equality,” said Saqib Ali, a former Maryland state delegate and co-chair of the Equality for Eid Coalition. “It’s a pretty drastic step, and they did it without any public notification.”

    Board members used the neighboring Fairfax County, Va. school system’s calendar as an example; it is the largest school district in Virginia and it doesn't call out the holidays by name.

    There isn't a change in terms of days off. The Montgomery schools will still be closed for the Christian and Jewish holidays, as before. The Muslim community will be able to take the time off and not be penalized but it will not be a day that the school is closed.

    Christmas has vanished from the Washington, D.C. suburb of Montgomery County, Maryland. Christmas isn't alone though -- so have Easter, Yom Kippur and Rosh...

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      Amazon, Hachette settle their dispute

      "Great win for readers and authors," Kindle proclaims

      Amazon and Hachette Book Group have settled their feud over pricing and the imprint's titles will be fully available on Amazon once again. The two have been squabbling since spring and some Hachette titles have been unavailable or have encountered shipping delays.

      Amazon had wanted Hachette to price all of its e-books at $9.99 and give it a bigger cut of each sale. Hachette balked and many well-known authors denounced Amazon, claiming its business practices were endangering literature.

      The new agreement doesn't set a $9.99 price for every title but gives the publisher incentives to offer lower prices on some books.

      Although the dispute received quite a bit of publicity, it was not a flash point for consumers, generating few complaints.

      In a joint press release, both companies proclaimed the new agreement as beneficial for all.

      Michael Pietsch, Hachette Book Group CEO said, "This is great news for writers. The new agreement will benefit Hachette authors for years to come. It gives Hachette enormous marketing capability with one of our most important bookselling partners.”

      Consumers rate Amazon.com

      "We are pleased with this new agreement as it includes specific financial incentives for Hachette to deliver lower prices, which we believe will be a great win for readers and authors alike," said David Naggar, Vice President, Kindle.

      The new ebook terms will take effect early in 2015. Hachette will have responsibility for setting consumer prices of its ebooks, and will also benefit from better terms when it delivers lower prices for readers. Amazon and Hachette will immediately resume normal trading, and Hachette books will be prominently featured in promotions, the companies said.

      Amazon and Hachette Book Group have settled their feud over pricing and the imprint's titles will be fully available on Amazon once again. The two have bee...

      It's a snap to get to your vet

      New app makes vet visits virtual

      There are many new apps that have been launched so you can talk to your doctor remotely. It's just another way for busy docs to communicate with patients. Now the insurance company UnitedHealth Group is bringing the same interconnectivity to your veterinarian.

      Have an issue with your dog or cat? It's simple -- snap a picture. The new venture is called SnapVet.

      You can report any symptoms that you might see in your pet like limping, melancholy or even much food they have eaten. You send the picture via your mobile phone or through the Internet. It is also another way for the vet to send your pet's medical records to you so you can actually keep a file on your phone.

      The catch is your vet has to opt in to the app. It is considered a consultation so a fee applies. It is another way to generate revenue for a vet so be aware of that, but perhaps the app will be the only communication you need and you won't need to be seen.

      Extension of the office

      The vet is the one to set the fees for usage according to their website. You also may have to refer your vet for this usage as when I went on the site I didn't see many vets yet in my area. The vet sets the guidelines for usage of the app in terms of writing prescriptions and whether you need to be seen in the office or not. It really is an extension of the office and how quickly they respond will be at the discretion of your vet.

      In 2013, UnitedHealth Group's chief consumer officer, Tom Paul, told FierceHealthPayer that insurers would only succeed if they developed products that fit the lives of consumers, rather than making consumers conform to what payers need. Developing new digital products has been a big part of United's consumer-engagement strategy.

      At the moment the app is only available for dogs and cats but the company plans on expanding it to large animals.

      There are many new apps that have been launched so you can talk to your doctor remotely. It's just another way for busy docs to communicate with patients. ...

      Weather the storm this winter

      It's the same thing every year -- might as well get used to it

      You can weather those winter storms by not being caught off guard and being prepared.

      One of the biggest seasonal hazards of winter is that darn ice that can have you on your bottom in seconds flat, not to mention slipping on the steps and breaking an arm or cracking your head open.

      Many big storms force power outages and you're stuck with not only freezing temps outside, but your home is lacking that warm cozy feeling as well. Losing power isn't just about the inside temperature. Your fridge can be knocked out and then you have food that is gone in no time. Having a generator is pretty important. If you have one already make sure it's in working order. If you don't have one, the big home improvement stores carry them.

      Two of the main considerations when selecting a portable generator are the running watts, also known as Output Watts, and starting watts, or Maximum Output Watts.

      Output Watts is the power needed to run a given device at normal functionality. Many devices need more power to start up (Maximum Output Watts) and then require less power (Rated Watts) to run continually. For example, a refrigerator requires 2200 starting wattage with a 700 running wattage, so you would need a generator with at least 2200 watt maximum output. Never run a generator inside enclosed spaces. Carbon monoxide can build up quickly and kill you and your family and pets.

      Slip sliding away
      It's embarrassing falling on your steps and nobody does it gracefully so make sure you have rock salt on hand to melt ice. If you have a pet use non-toxic brands, such as Safe Paws or Morton Safe-T-Pet. These products do not contain salt or chloride.

      Shoveling can kill you
      The task sends on average of more than 11,000 adults and children to the hospital every year.

      A 17-year study was reported by the American Journal of Emergency Medicine in 2011 and it explained the most common health hazards associated with shoveling snow. Snow shoveling can sometimes lead to bad backs, broken bones, head injuries, and even deadly heart attacks.

      So don't wait to shovel when you have 10 inches of snow or there is enough to ski downhill on. Or, better yet, hire someone to do it for you or get a snowblower.

      Food and diapers
      One thing you don't want to be without is diapers. There is no substitute -- think about it. Your child may grow from now until the end of winter. Stock up in a bigger size if need be. Food is pretty important as well because as soon as the weather report says arctic snow storm everyone is going to the grocery store at once so be prepared.

      You can weather those winter storms by not being caught off guard and being prepared....

      Orlando robocallers that bilked seniors shut down

      Pre-recorded calls offered a "free" medical alert system to seniors

      The Federal Trade Commission and the Florida Attorney General have reached a settlement that permanently shuts down an Orlando-based operation that bilked seniors by using pre-recorded robocalls to sell them supposedly free medical alert systems.

      The settlement order bans the defendants from making robocalls, prohibits other telemarketing activities, and bars them from making misrepresentations related to the sale of any product or service. The order includes a judgment of nearly $23 million, most of which will be suspended after the defendants surrender assets including cash, cars, and a boat.

      ”This case is a great example of how federal and state law enforcement can work together to stop fraudulent telemarketing targeting older consumers,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. 

      “We must do everything within our power to protect Florida’s consumers. The scheme we have stopped allegedly targeted Florida’s senior citizens, and we, along with our Federal Trade Commission partners, have held these individuals accountable,” said Attorney General Pam Bondi.

      Medical alert

      According to the complaint, the defendants blasted robocalls to senior citizens falsely stating that they were eligible to receive a free medical alert system that was bought for them by a friend, family member, or acquaintance. Many of the consumers who received the defendants’ calls were elderly, live alone, and have limited or fixed incomes.

      Consumers who pressed 1 on their phones for more information were transferred to a live representative who continued the deception by falsely saying that their medical alert systems are recommended by the American Heart Association, the American Diabetes Association, and the National Institute on Aging.

      In addition, the telemarketers falsely said that the $34.95 monthly monitoring fee would be charged only after the system has been installed and activated. In reality, consumers were charged immediately, regardless of whether the system was activated or not.

      The court order settling the agencies’ charges also imposes a judgment of $22,989,609, the total amount consumers paid for monthly monitoring services for their medical alert devices. The judgment will be suspended as to all of the settling defendants once the individual defendants turn over cash and other assets valued at about $79,000, including $24,000 that was transferred in violation of a court-ordered asset freeze.

      Assets that will be sold include a 2008 BMW, a 1984 Hans Christian sailboat, a 2004 Mercedes, and a 2008 Lincoln Navigator. In addition, defendant Joseph Settecase is subject to a second judgment of $39,300, which will not be suspended. This judgment reflects the funds that Settecase retained after selling his Ferrari in violation of the asset freeze and transferring a portion of the proceeds to another defendant.

      The Federal Trade Commission and the Florida Attorney General have won a settlement that permanently shuts down an Orlando-based operation that bilked seni...

      Jobless claims head higher

      Economists continue to look for an acceleration in hiring

      Despite an increase this past week, first-time applications for state unemployment benefits continue to trend below the 300,000 level, considered by many economists to be at or near full employment.

      Figures from the Labor Department (DOL) show initial jobless claims jumped 12,000 in the week ending November 8 to a seasonally adjusted 290,000. DOL says there were no special factors affecting the claim numbers.

      Analysts at Briefing.com, who were expecting the claims level to come in at 280,000, say that while businesses clearly have reduced layoffs, there has been no clear acceleration in hiring -- that companies seem to be content with their current labor needs.

      The 4-week moving average, which strips out the volatility found in the weekly numbers and is considered a more accurate gauge of the labor market, was 285,000, up 6,000 from the previous week -- a 3-week high.

      The full report is available on the DOL website.

      Despite an increase this past week, first-time applications for state unemployment benefits continue to trend below the 300,000 level, considered by many e...

      Target unveils Black Friday plans

      Deals include iPads, game consoles and HDTVs

      Target is the latest major retailer to lay its Black Friday cards on the table. After starting this week with some one-day specials, Target has announced its sale plans through the rest of November.

      Target will begin Black Friday at 6:00 p.m. on Thanksgiving, with a special gift for the first several hundred customers waiting in line at each store. Once inside the store, shoppers will find sale items that include:

      • New iPad Air 2 16GB, $499.00, and a free $140 Target GiftCard
      • Beats by Dre Solo HD Headphones, $97.00, which regularly sells for $169.99
      • Element 40” 1080p LED HDTV, $119.00
      • Xbox One, $329.99, and a free $50 Target GiftCard and two free digital download games
      • Nikon L330 20.2MP High Zoom Camera, $99.00, which regularly sells for $229.99
      • Westinghouse 55” 1080p LED HDTV, $395.00
      • Fitbit Charge Wireless Activity + Sleep Wristband, $99.99, a $129.99 value
      • GoPro HERO3+ Silver edition, $249.99, and a free $50 Target GiftCard
      • Sony PlayStation 4, $399.00 bundled with two free games
      • Buy one, get one 50 percent off toys from select top brands
      • 40 percent off select LEGO sets
      • 40 percent off apparel for women, men and kids
      • 50 percent off all picture frames
      • Dyson DC50 Allergy vacuum, $279.00, which regularly sells for $449.99
      • $300 gift cards

      On Black Friday itself, doors will open at 6:00 a.m. From then until noon, customers can purchase up to $300 in Target GiftCards at 10 percent off at Target stores and at Target.com. It's the first time Target has ever offered a discount on Target GiftCard purchases.

      Some Black Friday sales will spill over into Saturday, November 29. They include 40% off Philips string lights and BOGO free all single-roll wrapping paper.

      Like many retailers, Target is offering Black Friday deals well in advance of the official kick-off to the holiday shopping season. Throughout the holiday season, Cartwheel – Target’s mobile app – is offering 50% off a different toy every day.

      Pre-Black Friday

      From November 23 through 29, Cartwheel will feature a number of exclusive deals, including at least 25% off more than 100 products. Deals include:

      • 60% off select movie titles
      • 40% off select multi-piece bakeware sets
      • 30% off board gamed like Candyland and Chutes and Ladders

      On November 26 both Target stores and Target.com will offer limited yet-to-be-announced deals, all designed to draw in shoppers before some other retailer does.

      “We know our guests are pulled in a million different directions as the holidays get underway, so we’re helping them save time and money by offering more access to Black Friday deals,” said Kathee Tesija, chief merchandising and supply chain officer, at Target.

      Free shipping

      As a final incentive, Tesija says all Target.com orders ship for free until December 20.

      At the same time, Cyber Monday is being expanded to Cyber Week. Target says it plans to put more than 100,000 items on sale throughout the week.

      The store promises steep discounts on apparel, toys, housewares and major brands such as LeapFrog, Dyson, LG, Kitchen-Aid, and Canon.

      Target is the latest major retailer to lay its Black Friday cards on the table. After starting this week with some one-day specials, Target has announced i...

      App lets parents monitor their teen drivers

      Technology continues to give parents an upper hand

      Being the parents of a teenager can be a harrowing experience, especially these days. Even if you aren't a “helicopter” parent, one who hovers around their child, it's more and more difficult to keep an eye on the kids.

      Or at least, it has been until very recently, when technology started tipping the balance of power back to parents.

      Earlier this year a Houston mom named Sharon Standifird got tired of her kids ignoring her calls to their cellphones. She created an app called Ignore No More. The clever app disables the kid's phone if they fail to take a call from Mom.

      But when teens are in the car, you don't want them answering a cellphone call. Still, parents want to be assured that they are behaving in a safe manner.

      Monitoring teen drivers

      Hyundai is stepping up with an app that allows parents to monitor how their teen drivers are operating the vehicle – in particular, how fast they're going.

      The Hyundai Blue Link Vehicle Safeguards Alerts In-Vehicle App can be downloaded into the multimedia systems of the 2015 Azera and will be coming soon on Genesis and Sonata models equipped with the navigation package. The app allows parents to monitor and set limits on their Hyundai's speed, hours of operation and movements using text message, e-mail or both.

      Teens are likely to look at this as a gross invasion of privacy. But Hyundai says it simply helps parents reinforce safe driving habits for their children.

      Data

      The company has data to back it up. It says teens in vehicles with monitoring devices took fewer risks while driving than unsupervised teens, citing a 2009 Insurance Institute for Highway Safety (IIHS) study of 16 and 17 year-old drivers.

      What makes the app even more effective, Hyundai says, is that when a teen driver misbehaves behind the wheel, they see the alert that is being sent to their parents.

      The driver will see a notification on the vehicle's multimedia screen while the parent will get a text message alerting them of the violation. Hyundai says the alerts are designed to get the attention of the teen driver and refocus them on driving safely.

      A lot of parental control

      How much oversight does the app give parents? A lot.

      It allows them to pre-set a speed limit. It can set a time limit, triggering an alert if the vehicle is in operation after curfew.

      The car's GPS feature allows parents to set what Hyundai calls a “Geo-Fence,” a boundary that can't be crossed without triggering an alert.

      "We've listened to our Blue Link subscribers and given them exactly what they want," said Michael Deitz, senior group manager of Connected Care, Hyundai Motor America.

      Hyundai is betting that the ability to monitor what's going on in the car will help them sell more cars to parents of teens. Teens, on the other hand, will likely lobby hard for another brand.

      Being the parents of a teenager can be a harrowing experience, especially these days. Even if you aren't a “helicopter” parent, one who hovers around their...

      Chrysler expects to begin replacing faulty airbag inflators in December

      The replacements are being made in high-humidity states

      It's one thing to issue a vehicle recall. It's another to actually carry it out, as the Takata airbag saga shows. Chrysler now says it's nearly ready to start replacing potentially defective airbags in about 370,000 cars and trucks in early December.

      That's a fairly small percentage of the estimated 4.2 million vehicles included in a series of regional recalls announced by Chrysler and other manufacturers back in June. The problem is that the airbag inflators made by Takata Corp. may not inflate properly when exposed to high humidity.

      This is a problem for people who live in places like Florida, where the atmosphere is ofen somewhat soupy. And so it is that Florida is where Chrysler will start replacing the devices in December.

      Chrysler and Takata argue that there is no firm evidence of a safety defect in the inflators but will start replacing them anyway, under pressure from the National Highway Traffic Safety Administration (NHTSA). 

      NHTSA has been investigating reports that the airbag inflators can explode and send shrapnel into the passener compartment. The issue has been linked to at least four deaths and 160 injuries. More than 11 million U.S. cars with Takata airbags have been recalled since 2008. 

      The Chrysler vehicles involved are from model years 2003-2007 and include the Dodge Ram, Durango, Dakota, Charger and Magnum, and Chrysler Aspen and 300.

      Other manufacturers involved in the recalls include Honda, Toyota, Nissan, Mazda, Ford , General Motors, BMW, Mitsubishi and Subaru.

      It's one thing to issue a vehicle recall. It's another to actually carry it out, as the Takata airbag saga shows. Chrysler now says it's nearly ready to st...

      Who's fat? Most of us can't recognize obesity

      Even doctors aren't good at visually estimating weight, study finds

      Am I overweight? Are you? Who can tell? Researchers at the University of Liverpool say most of us -- even healthcare professionals -- are unable to visually identify whether a person is a healthy weight, overweight or obese.

      The researchers asked participants to look at photographs of male models and categorize whether they were a healthy weight, overweight or obese according to World Health Organization (WHO) Body Mass Index (BMI) guidelines.

      The majority flunked. They underestimated weight, often believing that overweight men were a healthy weight. 

      In a related study of healthcare professionals, the researchers also found that general practitioners and trainee GPs were unable to visually identify if a person was overweight or obese.

      The researchers also examined whether increased exposure to overweight and obese people affected a person's ability to estimate the weight of a person. Their findings suggested that exposure to heavier body weights may influence what people see as a normal and healthy weight and causes people to underestimate a person's weight.

      Tendency to underestimate

      "We wanted to find out if people can identify a healthy, overweight or obese person just by looking at them," said Dr. Eric Robinson, who conducted the research. Primarily we found that people were often very inaccurate and this included trainee doctors and qualified doctors too. Moreover, we found that participants systematically underestimated when a person was overweight or obese."

      "Our study of GPs also found a tendency to underestimate weight which has important implications as it means that overweight and obese patients could end up not being offered weight management support or advice," he said.

      Recent studies have found that parents underestimate their overweight or obese child's weight and this could also act as a barrier to intervention.

      The research was presented at the UK Congress of Obesity and the study of GPs is published in the British Journal of General Practice.

      Am I overweight? Are you? Who can tell? Researchers at the University of Liverpool say most of us -- even healthcare professionals -- are unable to visuall...

      Holding out for hot holiday deals

      A new survey finds bargain-hunters may be holding back a bit

      Despite all the TV commercials pushing holiday merchandise, it appears that not everybody is hitting the malls early.

      The new Holiday Consumer Spending Survey conducted by Prosper Insights & Analytics for the National Retail Federation (NRF) finds 45.6% of those asked say they haven’t started shopping yet -- relatively flat with last years’ 46.2%. Still, it's the lowest in the survey’s 7-year history.

      “Many consumers are going to wait and see how great the promotions will be later this season before making any commitments,” said NRF President and CEO Matthew Shay. “Retailers have reacted to this ‘wait and see’ mentality with fewer October deals and a much quieter entry into November, when we’ll start to see retailers ramp up with offers for exclusive merchandise, deep discounts and unique online savings opportunities.”

      Procrastinators and early birds

      The survey found that while slightly fewer people haven’t started shopping yet, 20.6% have finished 10 % or less of their shopping, while 12.4% have completed about one-quarter of their lists; 2.2% are saying they can sit back and relax as they have already finished their shopping for friends and family.

      Unsurprisingly, apparel, toys and video games will be popular gift items this year. The survey found 6 in 10 (60.9%) will buy clothing and accessories, 46.3% will buy books, CDs, DVDs and video games, and two in five (42%) will buy toys.

      Likely having loaded up on wearable technology items and new smartphones throughout the year, slightly fewer people will buy electronic items as gifts (30.7% vs. 33%). Some people are in for a real treat: 24% of shoppers will buy jewelry for a friend or family member -- the highest percent since 2006.

      Gift cards continue as a favorite for both shoppers and recipients as 60% will buy gift cards, similar to the 59.2% who planned to do so last year. In an October NRF survey, 60% of shoppers also said they’d like to receive gift cards, marking gift cards the most requested gift item for 8 years in a row.

      What to buy

      Shoppers look for inspiration for gifts from every corner, and with the innovative creation of retailers’ wish lists, many consumers this season will take to the web to point loved ones to specific, perfect gift ideas. The survey found 32.1% say they will look for inspiration on wish lists, compared with 28.8% last year. Others will conduct online searches (47.7%), discuss options with family and friends (41.7%), check out advertising circulars (34.3%) and email ads (20.1%), and even search Facebook (10.6%).

      "Retailers make holiday shoppers’ job easy with so many options to find the perfect gift, and with little room to waste on gifts that don't make sense, consumers today want to be sure what they buy is used and enjoyed by their loved ones," said Prosper's Principal Analyst Pam Goodfellow. "On the hunt for bargains, quality merchandise that is unique and even exclusive, gift givers this holiday season will seek out both practical and indulgent gift items, though being sure not to break the bank."

      When it comes to how shoppers will pay for their gifts, nearly four in 10 (38%) will use their credit card, the most in the survey’s history and up nearly 10% from last year; one in five (21.6%) will use cash and 38.4% will use their debit or check card. Just 2.1% will use a check -- the lowest in the survey’s history.

      When broken down by age group, young adults (18-24) are the least likely to use credit to pay for gifts at just 17.7%, and 65+ are the most likely to use credit cards at 56%. Nearly half of 18-24 year olds (48.9%) plan to use their debit or check card to buy gift items.  

      Despite all the TV commercials pushing holiday merchandise, it appears that not everybody is hitting the malls early. The new Holiday Consumer Spending Su...

      Privacy is dead, Americans fear

      Pew survey finds consumers feel their privacy is threatened on all sides

      Not surprisingly, Americans feel that their privacy is being threatened on all sides, according to a new survey by the Pew Research Center that found consumers fearing for the security of their personal information and their ability to retain confidentiality.

      Perhaps most striking is Americans’ lack of confidence that they have control over their personal information. That pervasive concern applies to everyday communications channels and to the collectors of their information — both in the government and in corporations. For example:

      • 91% of adults in the survey “agree” or “strongly agree” that consumers have lost control over how personal information is collected and used by companies.
      • 88% of adults “agree” or “strongly agree” that it would be very difficult to remove inaccurate information about them online.
      • 80% of those who use social networking sites say they are concerned about third parties like advertisers or businesses accessing the data they share on these sites.
      • 70% of social networking site users say that they are at least somewhat concerned about the government accessing some of the information they share on social networking sites without their knowledge.

      Yet, even as Americans express concern about government access to their data, they feel that government could do more to regulate what advertisers do with their personal information:

      • 80% of adults “agree” or “strongly agree” that Americans should be concerned about the government’s monitoring of phone calls and internet communications. Just 18% “disagree” or “strongly disagree” with that notion.
      • 64% believe the government should do more to regulate advertisers, compared with 34% who think the government should not get more involved.
      • Only 36% “agree” or “strongly agree” with the statement: “It is a good thing for society if people believe that someone is keeping an eye on the things that they do online.”

      Online services

      When it comes to more commercial considerations, consumers are skeptical about the supposed benefits of personal data sharing, but are willing to make tradeoffs in certain circumstances when their sharing of information provides access to free services.

      • 61% of adults “disagree” or “strongly disagree” with the statement: “I appreciate that online services are more efficient because of the increased access they have to my personal data.”
      • At the same time, 55% “agree” or “strongly agree” with the statement: “I am willing to share some information about myself with companies in order to use online services for free.”

      The public feels most secure using landline phones, least secure on social media.

      Across the board, there is a universal lack of confidence among adults in the security of everyday communications channels — particularly when it comes to the use of online tools. 

      • 81% feel “not very” or “not at all secure” using social media sites when they want to share private information with another trusted person or organization.
      • 68% feel insecure using chat or instant messages to share private information.
      • 58% feel insecure sending private info via text messages.
      • 57% feel insecure sending private information via email.
      • 46% feel “not very” or “not at all secure” calling on their cell phone when they want to share private information.
      • 31% feel “not very” or “not at all secure” using a landline phone when they want to share private information.

      Americans’ lack of confidence in core communications channels tracks closely with how much they have heard about government surveillance programs. For five out of the six communications channels we asked about, those who have heard “a lot” about government surveillance are significantly more likely than those who have heard just “a little” or “nothing at all” to consider the method to be “not at all secure” for sharing private information with another trusted person or organization.

      Most say they want to do more to protect their privacy, but many believe it is not possible to be anonymous online.

      Not surprisingly, Americans feel that their privacy is being threatened on all sides, according to a new survey by the Pew Research Center that found consu...

      Winter check-up for your garden

      Fall was cut short in many areas but there are still steps you can take

      For the Midwest fall got thrown to the compost pile and winter walked right in. You may need a few ideas for protecting your garden since it came so quickly.

      If you had already put on protective tree wraps, check them to see that they haven't come loose, and check the perennial beds for frost heaving. You can add wood chips or straw that will help protect the shallow roots.

      With a heavy wet snow you will want to swipe it off of ornamental trees and bushes so you don't end up with limb and branch damage.

      Try to keep that compost pile as active as possible. Turn it from time to time. Try to keep it moist -- not soaked, just a light moisture to it so you can feel the dampness. Unfinished compost generates its own heat (up to 160 degrees) as soil bacteria break down organic matter. Your compost pile can protect bulbs and perennial plants from frost.

      Things spoil in the snow and when they get all soaked. If you have squash and pumpkins check them out to make sure they aren't starting to mold. Potatoes will start to shrivel up and become soft. Toss them -- you can't get much use out of them.

      You may have been adding fertilizer before we got bopped with this winter storm and left things open. Go around the yard and the garage to make sure nothing is opened like fertilizer or insecticides. Also check rooting hormones for leaks, crystallization or spoilage.

      In colder areas, you can extend the growing season with greenhouses, cloches (a transparent plant cover used outdoors especially for protection against cold) or a cold frame. A cold frame is wonderful -- it is a simple structure that utilizes solar energy and insulation to create a microclimate within your garden.

      If you have ever eaten a salad of fresh greens that were housed in a cold frame in February or have flowers blooming well past frost, you know the attraction of using cold frames. Mobile planters work too -- they allow you to move plants indoors on especially cold days.

      Planting season is over for now but you do have the luxury of thinking what you would like to grow as things thaw out in the spring.

      For the Midwest fall got thrown to the compost pile and winter walked right in. You may need a few ideas for protecting your garden since it came so quickl...

      New life event: uncoupling ceremony

      Zombified marriage lives on after the flame dies

      Gwyneth Paltrow was the one to really educate the world on the phrase “consciously uncouple."

      She and her husband Coldplay frontman Chris Martin decided to “consciously uncouple” earlier this year. Everyone was talking about it. What is uncoupling? What is she talking about?

      At the time of Gwyneth's media blitz about this new aspect of their relationship she shared an article by husband-and-wife doctor and dentist Dr. Habib Sadeghi and Dr. Sherry Sami that explained what uncoupling is and the history behind it.

      "The idea of being married to one person for life is too much pressure for anyone. In fact, it would be interesting to see how much easier couples might commit to each other by thinking of their relationship in terms of daily renewal instead of a lifetime investment," Sadeghi and Sami write. "This is probably the reason why so many people say their long-term relationships changed overnight, once they got married. The people didn’t change, but the expectation did."

      Uncoupling is relatively new and now it has a ceremony to accompany the uncoupling. It's done with invited guests and your children watching. It's a New Age ritual where you exchange rings. I know, sounds familiar -- like marriage -- only this time you get the rings back that you originally gave. No throwing them at each other is allowed.

      Not a divorce

      This is not a divorce -- it is a ending of a romantic partnership but you stay in the same house and raise your family. It is something that is there to aid the kids and ease the trauma. Separate bedrooms are most likely. It becomes an open marriage. The couple is free to date and they set rules and boundaries due to the young children in the home. The ceremony supports the values behind the uncoupling.

      Obviously it is something both parties have to be willing to contribute to and that means a great deal of communication.

      Worried about an uncoupling gift? It could be awkward being invited to a ceremony. As of now there are no uncoupling gifts that you register for at Macy's but maybe a set of sheets might be a good gift? Somebody is going to need them.

      Gwyneth Paltrow was the one to really educate the world on the phrase “consciously uncouple."...

      Three declines in a row for mortgage applications

      Refinancings also posted a drop

      Mortgage applications inched lower last week, posting their third consecutive decline.

      Data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey show applications were down 0.9% in the week ending November 7, 2014.

      The Refinance Index fell 2%, with the refinance share of mortgage activity holding steady at 63% of total applications The adjustable-rate mortgage (ARM) share of activity dropped to 7.1% of total applications -- the lowest level since January.

      The FHA share of total applications, on the other hand, rose 9.6%, the VA share was up to 11.0% and the USDA share of total applications was unchanged this week at 0.9%.

      Contract interest rates

      • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose 2 basis points -- from 4.17% to 4.19%, with points increasing to 0.26 from 0.22 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
      • The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) remained at 4.13%, with points rising to 0.15 from 0.11 (including the origination fee) for 80 percent% loans. The effective rate increased from last week.
      • The average contract interest rate for 30-year FRMs backed by the FHA increased to 3.90% from 3.84%, with points falling to 0.14 from 0.34 (including the origination fee) for 80% LTV loans. The effective rate was unchanged from last week.
      • The average contract interest rate for 15-year FRMs was unchanged at 3.38%, with points decreasing to 0.22 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
      • The average contract interest rate for 5/1 ARMs fell 3 basis points to 3.05%, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

      The survey covers over 75 percent of all U.S. retail residential mortgage applications.

      Mortgage applications inched lower last week, posting their third consecutive decline. decreased 0.9 percent from one week earlier, according to Data fr...

      Toyota recalls Camrys with steering issues

      Damage during the manufacturing process could result in a loss of control

      Toyota Motor Sales, U.S.A., is recalling of 56 Model Year 2011 Camrys distributed to the U.S. Territories of Guam and Saipan. Globally, the company is recalling approximately 170,000 vehicles.

      The front suspension system in the involved vehicles contains a lower ball joint which connects the front suspension lower arm to the knuckle arm. In the assembly process, the rubber boot on the ball joint could have been damaged by insufficiently maintained equipment.

      If the rubber boot is damaged, lubricant grease inside the ball joint could leak from the damaged boot, causing the ball joint to wear and loosen prematurely. If the vehicle is continuously operated in this condition, the lower ball joint may separate from the knuckle and could cause a loss of vehicle control.

      Toyota says it is unaware of any crashes, injuries or fatalities related to this condition.

      Owners of the recalled vehicles will receive a notification by first class mail. Toyota dealers will inspect the rubber boots, and if necessary, replace the ball joint with a new one.

      Consumers may contact Toyota customer service at 1-800-331-4331.

      Toyota Motor Sales, U.S.A., is recalling of 56 Model Year 2011 Camrys distributed to the U.S. Territories of Guam and Saipan. Globally, the company is reca...

      Is your trust in mutual fund managers misplaced?

      Study suggests they aren't any better stock pickers than you are

      If you ask most people saving for retirement where their money is invested, chances are they'll say it is in mutual funds.

      These funds, made up of a variety of different assets, are popular because the average saver doesn't have to think that much about them. The stocks within the individual funds are selected by professional money managers, who are paid to know which stocks to buy and which to sell.

      Earlier this year stock-picking guru Jim Cramer, host of CNBC's "Mad Money," ruffled feathers among professional money managers when he told his audience that “most company 401 (k) plans stink.”

      "They have high management fees and administrative costs that eat into your returns, and worst of all, they typically offer you lousy choices for your investments and not nearly enough control over them," Cramer told his audience. "The 401(k) business is a racket for the managers who get to charge you these fees.”

      He went on to recommend that people instead consider investing in a carefully-selected portfolio of about 10 diversified stocks.

      It perhaps should be noted that the whole premise of Cramer's show is to instruct viewers on how to select individual stocks, so his advice might be considered in that light. But the fact remains that millions of individual investors would rather trust their stock picks to the experts.

      How good are the experts?

      But how good are the experts at picking their own investments – not the stocks they pick for the funds they manage but those in their personal retirement savings? A couple of finance professors took up the question and say you may be surprised at what they found.

      "We asked the question whether financial experts make better investment decisions than ordinary investors," said Andriy Bodnaruk, an assistant finance professor at the University of Notre Dame.

      He and colleague Andrei Simonov from Michigan State University selected two groups of investors. One was made up of people who have been trained in finance and had day-to-day experience with financial markets as mutual fund managers.

      The second group of investors shared a number of socioeconomic characteristics but lacked financial training. In other words, they were amateurs. The researchers compared how the two groups fared in the market.

      No difference

      "We found that financial experts are no different from peer investors: they do not have ability to pick outperforming stocks, they do not manage risk of their portfolios in better ways, and they trade as often as other investors," Bodmaruk said. "The only time experts do better than non-experts is when they have access to better information stemming from their workplace."

      And of course, that information counts for something. One of the hallmarks of a well-managed fund is it is usually supported by extensive research. But even Bodnaruk and Simonov concede that picking stocks can be an inexact science.

      "Outperforming the stock market is very difficult and the overwhelming majority of investors, including experts, do not have the skill to do it," Bodnaruk said. "Markets by and large are efficient to the degree that very few investors can consistently perform better than a fair reward for the risk assumed.”

      Role of financial advisors

      Bodnaruk says investors should not chase "expert talent," but he's really talking about fund managers, not financial advisors. Financial advisors who are not trying to sell a product but simply offer investment guidance, can be a valuable resource as you build a next egg.

      If nothing else, a good financial advisor can be a sounding board to discuss investment ideas and their questions and advice can keep you from making costly mistakes. Should you invest in mutual funds or index funds and ETFs as the researchers suggest? Or individual stocks as Cramer recommends?

      If you have a qualified and trusted financial advisor to talk to, you don't have to make that decision alone.

      If you ask most people saving for retirement where their money is invested, chances are they'll say it is in mutual funds....