Current Events in April 2015

Still taking off your shoes and opening your laptop when you go through airport security?

More than a million people don't have to do that any more, thanks to their enrollment in the TSA Pre application program. The program, which opened its first application center at Indianapolis International Airport, now has more than 330 application centers nationwide -- including locations at 31 airports.

“The continued growth and passenger participation in TSA Pre affirms our commitment to the evolution of our intelligence-driven, risk-based approach to aviation security,” said TSA Acting Administrator Melvin Carraway. “With more than 330 application centers nationwide, it is easier than ever to apply for expedited screening.”

Eliminating the hassle

The expedited screening program that began in October 2011, lets low-risk travelers to enjoy a more efficient screening experience at 133 U.S. airports. TSA Pre travelers may leave on their shoes, light outerwear and belt, keep their laptop in its case and their 3-1-1 compliant liquids/gels bag in a carry-on in select screening lanes.

Approved travelers receive a “Known Traveler Number” and may utilize TSA Pre lanes at select security checkpoints when flying on 11 participating carriers: Air Canada, Alaska Airlines, American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, Sun Country Airlines, United Airlines, US Airways and Virgin America.

Travelers may also enroll in one of three trusted traveler programs offered by U.S. Customs and Border Protection (CBP): Global Entry, NEXUS or SENTRI. Members of these programs are eligible to participate in TSA Pre and do not need to apply separately; once successfully enrolled in a CBP trusted traveler program, participants must utilize their “PASSID” as their Known Traveler Number.

As always, TSA continues to incorporate random and unpredictable security measures both seen and unseen throughout the airport. All travelers will be screened, and no individual will be guaranteed expedited screening.

Chrysler (FCA US LLC) is recalling 5,660 model year 2013-2015 Fiat 500 EV vehicles manufactured March 27, 2012, to November 1, 2014.

If the vehicle goes in to limp home mode, incompatible software between Electric Vehicle Control Unit (EVCU) and Battery Pack Control Module (BPCM) may cause the electric propulsion system to shut down completely.

An electric propulsion system shutdown will cause a stall-like condition, increasing the risk of a crash.

Chrysler will notify owners, and dealers will update the vehicle software to ensure compatability between components, free of charge. The recall is expected to begin May 15, 2015.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R15.

Kanan Enterprises is recallig Peterson's macadamia nuts.

The product may be contaminated with Salmonella.

No illnesses have been reported in connection with this recall.

Peterson’s Macadamias in 16-oz stand-up pouches, were distributed only through the Peterson Nut Store in Cleveland, Ohio, and King Nut Factory outlet in Solon, Ohio.

The following product, sold between 11/26/14 and 3/27/15, is being recalled:

Consumers who have the recalled product should not consume it, but destroy it or return it to the place of purchase.

Consumers with questions may call 1-800-860-5464, 8:15 am – 5:00pm EST, Monday – Friday.

We are constantly told the importance of retirement planning. Save for the future, we are told, because you don’t want to outlive your money. It’s true. And it’s also true that Americans as a whole are not doing a very good job of saving money for retirement.

But at the end of retirement comes death. And while there is little data to back it up, it appears we are doing an even worse job of planning for that eventuality – what’s known in financial services circles as estate planning.

Michelle Perry Higgins, principal at wealth management firm Maloon, Power, Pitre & Higgins, of San Ramon, California, says her clients rarely ask about estate planning, though she wishes they did.

Low priority

“Estate planning is a low priority to many compared to their retirement plan,” Higgins told ConsumerAffairs. “I am the first one to bring up the conversation during our meetings.”

In those meetings, Higgins says she asks clients to make sure they have the correct beneficiaries on their accounts. If they have an estate plan, she asks if it needs to be updated.

Concerned that clients might be overlooking some of the important aspects of estate planning, Higgins created the Everything Binder in 2013, a binder with tabs, all related to important documentary topics for an individual or family.

“As you can imagine, I am great at nagging my clients to complete their estate plan and document everything for their heirs,” Higgins said. “I have seen firsthand the disaster that ensues for their heirs if they have nothing in place.”

Beyond a will

An estate plan starts with a will but goes beyond that document. While a will designates an executor of the estate, the estate plan offers guidance to that individual, in keeping with the wishes of the deceased. In recent years there has been growing emphasis on providing instructions on end-of-life medical care and funeral plans.

An estate plan is especially important if the disposition of assets is not cut and dried; for example, if disposition of business assets is an issue. Higgins says an estate plan addresses the questions that arise in a less-than-simple estate.

“Do I want to leave my half of the estate to my spouse or have restrictions on it by creating a trust for my spouse's benefit? Who will be my beneficiaries and on what terms will they receive their inheritance? These are just a couple of the typical questions that need to be addressed,” she said.

Trusts

If you have a special needs child, or a child who does not manage money well, maybe you should set up a trust for their benefit. If you have a minor child, a provision should be made for their guardianship if both parents are deceased.

What happens is you die without an estate plan in place?

“You either have an estate plan or your state has a default plan, known as  intestacy, for you,” Higgins said.

For example, you may have four children but only want three to inherit your estate.  If you don't have an estate plan, then the state rules would apply. And if you don't have an estate plan, your estate will likely be probated.    

The Federal Trade Commission and the Illinois Attorney General’s Office have obtained a court order temporarily halting a fake debt collection scam located in Aurora, Illinois, a western suburb of Chicago.

The defendants are charged with illegally using threats and intimidation tactics to coerce consumers to pay payday loan debts they either did not owe, or did not owe to the defendants.

The FTC’s case against K.I.P., LLC, Charles Dickey, and Chantelle Dickey is the agency’s seventh ‘phantom’ debt collector matter.

 “This company scared and tricked people into paying debts they didn’t owe,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “We will keep going after phantom debt scams like this one and shutting them down.”

“The defendants have threatened and intimidated their way into stealing hundreds of thousands of dollars from unsuspecting people all across the country,” Illinois Attorney General Lisa Madigan said. “Between our two offices, we have hundreds of complaints. It is clear they must be stopped.”

According to the complaint, since at least 2010, the defendants used a host of business names to target consumers who obtained or applied for payday or other short-term loans, pressuring them into paying debts that they either did not owe or that the defendants had no authority to collect. 

Often armed with sensitive financial information, the defendants would call consumers and demand immediate payment for payday loans that were supposedly delinquent.  To pressure consumers to pay, the defendants threatened that they would:

• Garnish consumers’ wages;
• Suspend or revoke their drivers’ licenses;
• Have them arrested or imprisoned; or
• File a lawsuit against them.

In response to the defendants’ repeated calls and alleged threats, many consumers paid the debts, even though they may not have owed them, because they believed the defendants would follow through on their threats or they simply wanted to end the harassing phone calls.

If you were trying to fly somewhere -- anywhere -- during February, you may have had a tough time of it.

Airlines reported 16 tarmac delays of more than 3 hours on domestic flights and 8 tarmac delays of more than 4 hours on international flights during the month.

According to the Department of Transportation’s (DOT) Air Travel Consumer Report, 9 of the reported tarmac delays involved flights departing from Dallas/Fort Worth International Airport on February 27 during a snow storm. DOT is investigating all of the reported delays.

Airlines operating international flights may not allow tarmac delays at U.S. airports to last longer than 4 hours without giving passengers an opportunity to deplane. There is a separate 3-hour limit on tarmac delays involving domestic flights.

Exceptions to the time limits for both domestic and international flights are allowed only for safety, security, or air traffic control-related reasons. DOT rules require all U.S. and foreign airlines operating at least one aircraft with 30 or more passenger seats to report lengthy tarmac delays at U.S. airports.

On-time arrival rates

In addition, the nation’s largest airlines posted an on-time arrival rate of 72.8% in February, compared with 70.7% the year before and 76.8% the previous month.

The report also includes data on cancellations, chronically delayed flights, and the causes of flight delays, along with statistics on mishandled baggage, as well as customer service, disability, and discrimination complaints.

In addition, the consumer report includes reports of incidents involving the loss, death, or injury of animals traveling by air.

The full report is available on the DOT website.

Texas Pecan Company of Dallas, Texas, is recalling a variety of macadamia nuts and nut products.

The products may be contaminated with Salmonella.

No illnesses have been reported to date in connection with this problem

The recalled products were distributed in company retail stores nationwide and through mail orders.

The products come in an 8-oz. and 16-oz clear plastic bags and in gift tins identified as The Executive, Junior Executive, Sweet-N-Salty and Mini Sweet-n-Salty, and were sold in November and December 2014. The pack date of 14320 through 14365, is located on the bottom left hand corner of the label.

The following products are being recalled:

Customers who purchased the recalled products should return them to the place of purchase for a full refund.

Consumers with questions may contact the company at 972-241-7878, Monday thru Friday from 8:30 am – 5:00 pm CT.

BMW of North America is recalling 18,054 model year 2014 228i Coupe, M235i Coupe, 320i, 320xi, 328i, 328xi, 335i, 335xi, ActiveHybrid 3, 328xi Sports Wagon, 428i Coupe, 428xi Coupe, 435i Coupe, 435xi Coupe, 428i Convertible, 428xi Convertible, 435i Convertible, 328xi Gran Turismo, 335xi Gran Turismo, and 2015 428i Gran Coupe, 428xi Gran Coupe, and 435i Gran Coupe vehicles.

Improper nickel plating of components within the fuel pump may result in the fuel pump failing.

If the fuel pump fails, the vehicle may stall without warning, increasing the risk of a crash.

BMW will notify owners, and dealers will replace the fuel pump, free of charge. The recall is expected to begin April 30, 2015.

Owners may contact BMW customer service at 1-800-525-7417.

World Wide Gourmet Foods of Woodinville, Wash., is recalling 2916 packages of Central Market Teriyaki Salmon Jerky.

The product may contain wheat and soy, allergens not listed on the label.

No illnesses have been reported to date.

Product has an affected best by date of 08/25/2015, and was distributed to H.E.B retail stores in Texas between 2/27/15 and 4/3/2015.

Product is identified by a purple Central Market Teriyaki Salmon Jerky front label with a back label indicating Central Market Smoked Salmon Jerky with a UPC of 0 41220 34270 9.

Customers who purchased the recalled product should return it to the place of purchase for a full refund.

Consumers with questions may contact the company at 1-800-422-0852 from 7:00 am to 4:00 pm PST, Monday through Friday.

Nissan North America is recalling 76,242 model year 2014 NissanRogues manufactured June 11, 2013, to June 7, 2014.

Improper nickel plating of components within the fuel pump may result in the fuel pump failing.

This could cause the vehicle to stall without warning, increasing the risk of a crash.

Nissan will notify owners, and dealers will replace the fuel pump, free of charge. The recall is expected to begin in April 2015.

Owners may contact Nissan customer service at 1-800-647-7261.

Ford Motor Company is recalling 6,322 model year 2011-2015 Ford F-350, F-450, and F-550 trucks manufactured February 22, 2010, to January 30, 2015, and equipped with ambulance or fire engine preparation packages.

The vehicles may detect an incorrect Exhaust Gas Temperature Sensor (EGT) fault indicating that the vehicle is too hot, causing the engine management system to shut down the engine and prevent its immediate restart.

Engine shut down and a subsequent cool down period may delay medical treatment or assistance to those needing it, increasing their risk of injury.

Ford will notify owners, and dealers will update the Powertrain Control Module (PCM) software, free of charge. The recall is expected to begin on May 11, 2015.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 15S09.

In 2013, when the U.S. Food and Drug Administration (FDA) detected an amphetamine-like substance called BMPEA present in some Acacia rigidula dietary supplements it tested, some health researchers took notice. BMPEA had not been tested for either efficacy or safety in humans.

The expectation was the FDA would order manufacturers to stop using it, but researchers, writing in the journal  Drug and Testing Analysis, say they tested the supplements labelled as containing Acacia rigidula a year later and were surprised at what they found.

“The presence of BMPEA was confirmed by accurate mass, retention time and mass spectra match against a reference standard,” the authors write.

Still there

In other orders, the amphetamine-like substance – untested for its safety – was still there.

The researchers are scolding the FDA, calling its failure to remove supplements containing BMPEA from the market “inexcusable.” A spokeswoman for the FDA told the Los Angeles Times the agency has not identified a specific safety concern but “will consider taking regulatory action, as appropriate, to protect consumers.”

The researchers say they are concerned because they found the stimulant in sufficient strength that if consumers followed the recommended maximum daily servings they would consume 93.7 milagrams of BMPEA each day.

Lacks evidence of safety

“Consumers of Acacia rigidula supplements may be exposed to pharmacological dosages of an amphetamine isomer that lacks evidence of safety in humans,” the report says. “The FDA should immediately warn consumers about BMPEA and take aggressive enforcement action to eliminate BMPEA in dietary supplements.”

Dexaprine is among the supplement companies offering a product containing Acacia rigidula.

“Acacia rigidula – a relatively new supplement has been making waves in the world of bodybuilding as a weight loss supplement,” the company says on its website. “It’s known as the Blackbrush Acacia or Chaparro Prieto. This perennial tree grows in areas such as Texas to Central Mexico.”

Ephedra substitute

The product is promoted as an appetite suppressant to help users burn body fat. It is also credited with increasing metabolism. The company calls it a viable replacement for ephedra, which the FDA banned as a supplement ingredient in 2004 amid safety concerns.

After the FDA reported its initial finding in 2013, USA Today  reported that it found 9 commercially-available dietary supplements on the market containing Acacia rigidula.

While dietary supplements are not technically drugs, they do fall under the regulatory jurisdiction of the Federal Food, Drug and Cosmetic Act, enforced by FDA.

In its most recent enforcement action in this area, FDA in January obtained a court order to stop California-based Health One Pharmaceuticals from selling its products because of issues relating to product safety.

On Wednesday, European and American police seized a series of European-based servers behind a botnet responsible for spreading various forms of malware on computers in the United States. Cyberthieves in turn could use that malware to steal banking passwords and other illicitly valuable information from victims.

The European Cybercrime Center and the U.S. Federal Bureau of Investigation, working together, seized servers from locations across Europe, but have not yet made any arrests because they say it's too early to tell who exactly is responsible for the botnet, nicknamed Beebone.

A botnet, sometimes called a “zombie army,” is a network of private computers all infected with malware (usually without their owners' knowledge) and working toward some common goal for the malware writer — such as sending spammy emails. That malware is often called “zombie” software because it takes over your computer or device and turns it into a zombie, mindlessly obeying the malware-writers' commands.

Shape-shifting

The Beebone botnet was particularly difficult for investigators to track down because it used shape-shifting, or “polymorphic,” software that would update itself up to 19 times per day, in order to avoid detection by security programs.

Europol, the European Union's equivalent of the FBI, said that

The botnet was 'sinkholed' by registering, suspending or seizing all domain names with which the malware could communicate and traffic was then redirected. Data will be distributed to the ISPs (Internet Service Providers) and CERTs (Computer Emergency Response Teams) around the world, in order to inform the victims. The botnet does not seem the most widespread, however the malware is a very sophisticated one, allowing multiple forms of malware to compromise the security of the victims’ computers.

In other words: by botnet standards, Beebone only infected a relatively small number of computers, but those computers were infected far worse than ordinary botnet zombies, with multiple forms of malware including password stealers [especially useful for thieves seeking to drain bank accounts], ransomware, rootkits and fake antivirus software.

Even though the Beebone servers have been seized, the individual zombie computers comprising the botnet still need to be disinfected with antivirus software (the real thing, not fake antivirus software which only serves to spread more malware).

Yet that alone might not be enough. As ArsTechnica noted:

To be fully free of the Beebone menace, infected computers still must be disinfected using AV software or, better yet, by having their hard drives wiped and operating systems reinstalled. Authorities are in the process of contacting Internet service providers and computer emergency response teams around the world to help identify and contact individual victims.

Since authorities genuinely will be contacting people – at least some people – about Beebone warnings, that means scam artists will soon start using Beebone as a pretense for sending more malware-infected spam messages. As always, ignore and delete any unsolicited text message or email asking you to click on a link or download a file attachment.

In the past, General Motors (GM) rarely advertised its Buick brand, a car long considered “Cadillac-lite” and most likely to be driven by someone in their 60s. It was affordable luxury, sandwiched between Cadillac and the now defunct Oldsmobile.

But in case you haven't noticed, GM has flooded the airwaves in recent months with commercials for its line of redesigned Buick cars. And these ads are not aimed at seniors – they're aimed at Millennials.

Why? Because marketers have figured out that Millennials aren't content to wait until they've “made it” before they treat themselves to some luxury. They want it now, and if carmakers can deliver a luxury model at an entry level price, they're likely to buy it.

Entry level luxury

The Buick Enclave starts at around $39,000 but the Buick Encore, the model getting the heaviest promotion, starts at just $24,000. The ad campaign is built around the idea that most consumers can't recognize a Buick now because they're so, well, cool.

Buick isn't the only luxury name going after Millennial dollars.

"Lower-price-point vehicles such as the Mercedes CLA, BMW 1-series and Audi A3 are making luxury cars more attainable for Millennials earlier in life, which could help these brands establish long-term consideration and loyalty," said Rick Wainschel, a vice-president at Autotrader.com.

The thought being that once someone in their late 20s starts driving a BMW, they're likely to stick with the brand – in a more expensive model – as they become more prosperous in their 30s and 40s.

Teaching their parents

And while younger generations have usually turned to their parents for advice when it comes to their first car, a study from Edmunds.com suggests Millennials by and large believe they could teach their parents a thing or 2 about car-buying. This generation considers itself to be more tech-savvy and better educated than their parents about the car shopping process.

In fact, 73% of Millennials said they are savvier car buyers than their parents and more than half said they freely advise family and friends on what cars they should buy. And because this generation tends to do its homework, Edmunds CEO Avi Steinlauf says the older generation would do well to listen.

"Millennials today are informed car buyers," Steinlauf said. “They're making the most out of the volume of information available at their fingertips, and it's helping them to make a smarter car purchase. And since a smart car buyer is a quality car buyer, it all points to an optimistic and healthy future for the auto industry."

Used cars are popular

Though carmakers are making a concerted effort to sell Millennials on an entry level luxury car, plenty of young consumers are opting for a used car instead. In fact, a slightly higher percentage of Millennials bought a used car last year than did adults over age 35, according to the Edmunds research.

An earlier study by AutoTrader found that Millennials are image-conscious and aspirational in their preferences but that, as they age, they're likely to become more practical in their automotive tastes.

And while they may be strongly tempted by the BMW or Audi nameplate, Millennials are also more open to buying a car from less well-known brands than other car shoppers. The study found that young shoppers are more likely to consider buying a Kia or Mazda because of the popularity of import brands throughout their lives.

Illinois Attorney General Lisa Madigan and eight other state AGs today urged the federal government to immediately relieve the federal debt burden of thousands of students who attended Corinthian and Everest Colleges, the for-profit schools that closed most of their campuses last year.

In a letter to the U.S. Department of Education, Madigan said the agency has legal authority to discharge the federal loans of students who have been harmed by for-profit schools like Corinthian.

“We must protect the victims of the predatory practices of for-profit schools such as Corinthian, which was more concerned with their profits than they were about the quality of education they provided,” Madigan said.

The letter, which was also joined by the attorneys general of California, Connecticut, Kentucky, Massachusetts, New Mexico, New York, Oregon and Washington, notes that the Higher Education Act, Department regulations and federal student loan documents all make it clear that students can assert legal claims against schools as a defense to repayment of their loans.

A number of state and federal lawsuits allege that Corinthian misrepresented to students:

• the urgency of enrollment to secure a spot in a program;
• the school’s historical success placing students in jobs in the students’ field of study;
• the earnings of graduates;
• the availability of advertised programs;
• the employment assistance the school provides graduates;
• the school’s role in its private loan program;
• the nature, character and quality of educational programs;
• the school’s purported affiliation with the United States Military;
• the transferability of credits;
• the availability of externships; and
• the nature and availability of financial aid.

“These cases against Corinthian have unmasked a school that relentlessly pursued potential students — including veterans, single parents, and first-time higher education seekers — promising jobs and high earnings, and preying on their hopes in an effort to secure federal funds,” the letter states.

The attorneys general note that the legal enforcement actions against Corinthian will not be enough to provide relief to Corinthian’s victims. The school has indicated it plans to file for bankruptcy, and therefore will likely try to limit relief available to students burdened with thousands of dollars in debt and many without a degree to show for their outstanding loan balance.

Clarify the grounds

In addition to calling for the cancellation of Corinthian loans, the letter urges the department to clarify the grounds needed for students to obtain a discharge of their loans and to specify a process by which students can raise these issues with their loan servicers in order to obtain relief.

The letter also suggests that DOE develop a process by which the findings in a state attorney general’s investigation could be utilized as a defense to repayment for all affected students.

An estimated 40 million Americans have an outstanding student loan, up from 29 million in 2008. Borrowers carry an average balance of $29,000 in student loan debt. Nationwide, student loan debt now stands at $1.2 trillion, representing an increase of more than 150 percent since 2005.

The U.S. Senate Health, Education, Labor and Pensions Committee reported that, during the 2009-2010 school year, for-profit colleges took in $32 billion in taxpayer-backed student aid and spent nearly 25 percent of their revenue on marketing and recruiting, exceeding what was spent on student instruction.

First-time applications for state unemployment benefits jumped by 14,000 in the week ending April 4 to a seasonally adjusted 281,000. The previous week's claims level, reported initially at 268,000 was revised to 267,000.

The Labor Department (DOL) says there were no special factors affecting this week's initial claims.

The 4-week moving meanwhile, fell by 3,000 from last week's downwardly-revised average of 285,250 -- to 282,250, the lowest level since June 3, 2000, when it was 281,500.

The complete report is available on the DOL website.

Sabra Dipping Co. is recalling approximately 30,000 cases of its Classic Hummus.

The product may be contaminated with Listeria monocytogenes.

There are been no reports to date indicating that these products have caused any illness.

The recall is limited to five SKUs of Classic Hummus sold nationwide.

The following products were distributed to retail outlets, including food service accounts and supermarkets in the U.S.:

Consumers can find code and use by dates on the top of each package.

Customers who purchased any of these products should dispose of them or return them to the place of purchase for a full refund.

Consumers with questions may call toll free 1-888-957-2272, Monday – Friday 9:00AM to 4:30PM, CT.

Texas Star Nut and Food Co., of Boerne, Texas is expanding its earlier recall of Nature's Eats macadamia nut products to include the following products and lot codes:

The products may be contaminated with Salmonella.

No illnesses have been reported in relation to this product to date.

The recalled products were distributed to HEB Grocery Stores in Texas and sold between 12/15/2014 and 3/20/2015.

Customers who purchased any of the recalled products are urged to not eat or discontinue consuming them and contact the company for refund or product replacement information at 1-844-571-5555 from 8:30am to 5:30pm Monday-Friday, CST.