Current Events in May 2015

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    Feds charge hackers broke into Photobucket.com, sold access to nude photos

    Two men were arrested on conspiracy charges and face up to 15 years in prison

    Two men who allegedly sold software that let consumers break into Photobucket.com's system and download pictures of naked women have been arrested by FBI agents.

    Colorado U.S. Attorney John Walsh said the two sold the app, called "Photofucket" -- that allowed users to get around the privacy and security settings on Photobucket. It also allegedly automatically found photos of nude and scantily-clad women and downloaded them.

    FBI agents arrested Brandon Bourret, 39, of Colorado Springs, Colo. and Athanasios Andrianakis, 26, of Sunnyvale, Calif., at their homes yesterday. If convicted, they could face up to 15 years in prison.

    “It is not safe to hide behind your computer, breach corporate servers and line your own pockets by victimizing those who have a right to protected privacy on the internet,” said U.S. Attorney Walsh.  “The U.S. Attorney’s Office is keenly focused on prosecuting those people for their theft -- and for the wanton harm they do to innocent internet users.”       

    "Knowingly conspired"

    According to the indictment, beginning on July 12, 2012 and continuing through July 1, 2014, Bourret and Andrianakis knowingly conspired to commit computer fraud and abuse, access device fraud, identification document fraud and wire fraud. 

    Bourret and Andrianakis both face one count of conspiracy, which carries a penalty of not more than five years in federal prison and up to a $250,000 fine.  They also each face one count of computer fraud, aid and abet, which also carries a penalty of not more than five years in federal prison and up to a $250,000 fine.  Finally, they each face two counts of access device fraud, which carries a penalty of not more than ten years in federal prison, and up to a $250,000 fine, per count.

    Two men who allegedly sold software that let consumers break into Photobucket.com's system and download pictures of naked women have been arrested by FBI a...

    FTC sues Lunada Biomedical over Amberen weight loss claims

    "Clinically proven" claims don't hold up, FTC alleges

    Amberen is one of the "anti-aging" dietary supplements promoted by Lunada Biomedical. But the Federal Trade Commission says the company's claims aren't supported by the evidence.

    The FTC charges in a federal lawsuit that Lunada advertises that Amberen causes substantial weight loss for women over 40, and says the company sold nearly $65 million worth of the supplement between 2010 and 2013.

    “Lunada marketed Amberen to women over 40 as ‘clinically proven’ to cause weight loss,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “But their own studies didn’t support those claims. The best way to lose weight is still diet and exercise.”

    The company disputes the charges and says it "prefers ... to litigate this matter before an impartial judge."

    Increased metabolism

    According to the FTC’s complaint, the company's ads claimed Amberen could cause significant weight loss and loss of belly fat, and increase the metabolism of perimenopausal or menopausal women over 40.

    Lunada’s websites and other advertisements pitched the capsules using female announcers saying things like: “Amberen restores hormonal balance naturally, so the weight can just fall right off. Even that stubborn belly fat.” They also claimed that Amberen is “the ONLY product on the market today clinically proven to cause sustained weight loss for women over 40.”

    According to the FTC’s complaint, however, a clinical trial conducted in 2001 by the Russian scientists who developed the Amberen formula, used a double dose of Amberen and did not specifically measure weight loss; a subsequent clinical study failed to show a statistically significant difference in weight loss between the test and control groups.

    Russian study

    In a statement, Lunada said a recent study supports its claims.

    “Scientific evidence, including a recent randomized, double blind, placebo controlled clinical trial, involving 102 test subjects, just released by the world renowned First Moscow State Medical University (the premier educational, scientific and medical institution in Russia since 1758) supports the conclusion that Amberen achieves weight loss in menopausal women," a company spokesman said.

    "The data obtained during the study was evaluated independently by the prestigious Institute of Mathematical Problems in Biology, a division of the Russian Academy of Sciences.  Additional peer reviewed scientific evidence supports the conclusion that Amberen also reduces many menopausal symptoms," the company's statement added. 

    The FTC also charges that the defendants falsely claimed a consumer satisfaction and success rate of 93 percent and failed to disclose their relationship with certain endorsers, including one who blogged about the benefits of the supplement.

    The complaint further alleges that the defendants falsely claimed that consumers could try Amberen “risk-free” for 30 days, through statements such as, “You can try Amberen absolutely risk FREE and get a one month supply FREE.” In fact, customers were provided a ninety-day supply of Amberen and to qualify for a refund, consumers had to return two unopened product boxes at their own expense, within 30 days of placing the order.

    Moreover, in many cases consumers were not reimbursed the shipping and handling charges they had paid when they ordered the product, the FTC said.

    Amberen is one of the "anti-aging" dietary supplements promoted by Lunada Biomedical. But the Federal Trade Commission says the company's claims aren't sup...

    US Airways nears its final destination

    American Airlines will phase out US Air as early as October

    Like Amtrak and the late Eastern Air Lines, US Airways has been an East Coast tradition as often despised as embraced. Plagued by fickle weather, congestion in the skies and overcrowded airports, it has had more than its share of setbacks, delays, cancellations and complaints.

    Consumers rate US Airways

    Take Robert of Richmond, Va., who posted a ConsumerAffairs review recently.

    "This is my second miserable experience with USAir in 8 weeks. Same airports and same flights in 8 weeks," Robert wrote. "First experience was a 24 hour delay from a trip that would have taken no more than seven hours of driving. This trip at this point is now going into it 9th hour. Sitting on the tarmac waiting for a gate to open and then being dumped on the tarmac 200 feet from the terminal entrance in the pouring rain. Now hearing at 11 pm that 'we have an aircraft but are trying to locate a crew.'" 

    Time to spare ...

    There are those who say that it was US Airways or one of its predecessors that coined the phrase, "time to spare, go by air." As a largely regional carrier for much of its existence, US Airways has had a lot of ups and downs -- lots of short hops that are more prone to disruptions than long-haul routes. This leads to lost bags, lost seats and, as in Robert's case, lost crews.

    Consumers rate American Airlines

    But all of that is about to end. Soon it will be American Airlines that inherits its customers' enmity. American, which merged with US Airways last year, says it will phase out the smaller carriers' operations beginning in July and possibly completing the process by October. You'll still see airplanes flying the US Airways colors after that but the reservations system -- the heart of any airline -- will be all American's when the switchover is complete.

    Chaos has ensued in other airline mergers when the change to the dominant carrier's reservations system was made too abruptly, so American has chosen to slowly phase out the US Airways system, switching a few routes at a time.

    Passengers shouldn't notice a change, the airline said. Uh-huh.

    All-American becomes all American

    It's perhaps appropriate that US Airways completes its journey via merger. It is, after all, the product of numerous mergers. It took off back in 1939 as All-American Airways, morphed into Allegheny Airlines (known in some road warrior circles as Agony Air), then took over Mohawk Airlines and became US Air. Somewhere along the line, Empire Air was added to the mix.

    After a series of misstarts and aborted strategies, new management came aboard and changed the name to US Airways, causing the predictable jokes about the airline needing more than an airway to stay alive.

    But stay alive it did, merging with America West to become a truly national carrier, eventually adding international routes as well.

    When the merger is complete, there will be just four big airlines -- American, United, Delta and Southwest -- controlling 80% of the market. Welcome aboard.   

    Like Amtrak and the late Eastern Air Lines, US Airways has been an East Coast tradition as often despised as embraced. Plagued by fickle weather, congestio...

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      Mortgage applications post third straight decline

      Climbing interest rates punctuated the week

      For a third consecutive week there's been a decline in applications for mortgages.

      The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey shows applications were down 3.5% in the week ending May 8.

      The Refinance Index posted a drop of 6%, with the refinance share of mortgage activity calling from 52% of total applications to 51% -- its lowest level since May 2014. The adjustable-rate mortgage (ARM) share of activity, on the other hand, rose to 6.3% of total applications.

      The average loan size for purchase applications rose to a survey high of $298,500.

      The FHA share of total applications fell 2 basis points -- from 14.0% to 13.8%, the VA share was unchanged at 11.9% and the USDA share of total applications inched up to 0.9% from 0.8% the week prior.

      Contract interest rates

      • The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose 7 basis points to 4.00%, its highest level since March, with points increasing to 0.36 from 0.35 (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) increased jumped to 3.99%, its highest level since March, from 3.91%, with points increasing to 0.33 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
      • The average contract interest rate for 30-year FRMs backed by the FHA surged 7 basis points to 3.76%, its highest level since March, with points decreasing to 0.14 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
      • The average contract interest rate for 15-year FRMs increased to 3.23%, its highest level since March, from 3.19%, with points increasing to 0.40 from 0.30 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
      • The average contract interest rate for 5/1 ARMs was up 13 basis points to 3.00%, its highest level since March, with points increasing to 0.46 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

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

      For a third consecutive week there's been a decline in applications for mortgages. The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications S...

      Completed foreclosures, foreclosure inventory on the decline

      The serious delinquency rate is far below its 2010 peak

      More big declines in foreclosures.

      CoreLogic reports there were 41,000 completed foreclosures nationwide in March -- down 7,000, or 15.5% from the same month in 2014, representing a plunge of 65.2% from the peak of completed foreclosures in September 2010.

      Also in March, the foreclosure inventory declined by 25.7%.

      Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. Since the financial meltdown began in September 2008, there have been approximately 5.6 million completed foreclosures across the country, and since homeownership rates peaked in the second quarter of 2004, there have been approximately 7.7 million homes lost to foreclosure.

      Declines in delinquency

      CoreLogic also reports the number of mortgages in serious delinquency was down 19.1% from March 2014 to March 2015 with 1.5 million mortgages -- or 3.9% -- in serious delinquency. Serious delinquency is defined as 90 days or more past due, including those loans in foreclosure or real estate owned (REO). This is the lowest delinquency rate since May 2008. On a month-over-month basis, the number of seriously delinquent mortgages dipped 1.9%.

      As of this past March, the national foreclosure inventory included approximately 542,000 homes, or 1.4%, of all homes with a mortgage compared with 729,000 homes, or 1.9%,the year before, representing a year-over-year decline of 25.7%.

      “We are seeing additional improvement in housing market conditions due to a decline in the serious delinquency rate to 3.9%, far below the peak of 8.6% in early 2010,” said Frank Nothaft, chief economist for CoreLogic. “Despite the decline in the number of loans that are 90 days or more delinquent or in foreclosure, the percent of homeowners struggling to keep up is still well above the pre-recession average of 1.5%.”

      Report highlights

      • On a month-over-month basis, completed foreclosures increased by 7% from the 38,000* reported in February 2015. As a basis of comparison, before the decline in the housing market in 2007, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006.
      • The 5 states with the highest number of completed foreclosures for the 12 months ending in March 2015 were: Florida (110,000), Michigan (50,000), Texas (34,000), Georgia (28,000) and Ohio (28,000). These 5 accounted for almost half of all completed foreclosures nationally.
      • Four states and the District of Columbia had the lowest number of completed foreclosures for the 12 months ending in March 2015: South Dakota (16), the District of Columbia (87), North Dakota (326), West Virginia (462) and Wyoming (517).
      • On a month-over-month basis, the foreclosure inventory was down by 1.3% from February 2015. The March 2015 foreclosure rate of 1.4% is back to March 2008 levels.
      • Four states and the District of Columbia had the highest foreclosure inventory as a percentage of all mortgaged homes: New Jersey (5.3%), New York (3.9%), Florida (3.3%), Hawaii (2.7%) and the District of Columbia (2.5%).
      • The 5 states with the lowest foreclosure inventory as a percentage of all mortgaged homes were: Alaska (0.3%), Nebraska (0.4%), North Dakota (0.5%), Montana (0.5%) and Colorado (0.5%).

      More big declines in foreclosures. CoreLogic reports there were 41,000 completed foreclosures nationwide in March -- down 7,000, or 15.5% from the same mo...

      Cost Plus World Market recalls twist swivel stools

      The weld joint attaching the stool seat to the center post can break

      Cost Plus Management Services of Oakland, Calif., is recalling about 125,000 twist swivel stools.

      The weld joint attaching the stool seat to the center post can break, posing a fall hazard.

      The firm has received 12 reports of the stool’s joint breaking. No injuries have been reported.

      This recall involves twist swivel stools with a light brown-finish wood seat and base with four black metal legs. They measure 24.5 inches high in the non-extended position and 29.5 inches when fully extended. SKU number 438000 is printed on the UPC sticker attached to the underside of the stool seat.

      The stools, manufactured in Indonesia, were sold exclusively at Cost Plus World Market and World Market stores nationwide and online at www.worldmarket.com from February 2011, through February 2015, for about $120.

      Consumers should immediately stop using the recalled stool and return it to any Cost Plus World Market or World Market store for a full refund. Refunds can be used toward the purchase of a replacement stool when it becomes available.

      Consumers may contact Cost Plus World Market toll-free at (877) 967-5362 from 7 a.m. to midnight ET daily.

      Cost Plus Management Services of Oakland, Calif., is recalling about 125,000 twist swivel stools. The weld joint attaching the stool seat to the center po...

      La-Z-Boy recalls wall-saver power reclining furniture

      When reclined, the furniture can tip forward if the consumer exits without bringing the chair to an upright position

      La-Z-Boy of Monroe, Mich., is recalling about 2,600 PowerReclineXRw pieces of reclining furniture.

      When reclined, the furniture can tip forward if the consumer exits without bringing the chair to an upright position, posing a fall hazard.

      The company has received 5 dealer reports of the furniture tipping forward when the chair was in a reclined position. No injuries have been reported.

      The recalled power reclining furniture involves three series of the PowerReclineXRw: P16, 32P and 39P. The P16 series is a single-seat recliner; the 32P series is a loveseat recliner; and the 39P series is a loveseat with a middle console.

      The furniture’s back and leg rest are raised and lowered electronically by pressing buttons built into the furniture’s side or on an optional attached controller. All models are upholstered in a variety of fabrics or leather products.

      The series and style numbers are printed on a white label stapled to the front rail behind the leg rest or the underside of the leg rest. The first three characters of the number will be P16, 32P or 39P, followed by the style number.

      The following recliners are being recalled:

      P16 PowerReclineXRw Recliners

      SERIES

      STYLE

      NAME

      DIMENSIONS

      P16

      366

      Reese Power-Recline-XRw Recliner

      Overall: 41.50" H x 40.00" W x 38.50" D
      Seat: 20.00" H x 18.50" W x 21.00" D

      P16

      403

      Vail Power-Recline-XRw Recliner

      Overall: 40.50" H x 32.00" W x 36.00" D
      Seat: 18.00" H x 17.50" W x 19.50" D

      P16

      502

      Joshua Power-Recline-XRw Recliner

      Overall: 41.50" H x 39.00" W x 45.00" D
      Seat: 20.50" H x 23.00" W x 23.00" D

      P16

      508

      Coleman Power-Recline-XRw Recliner

      Overall: 40.50" H x 32.00" W x 36.50" D
      Seat: 19.00" H x 19.50" W x 19.00" D

      P16

      512

      Pinnacle Power-Recline-XRw Recliner

      Overall: 43.50" H x 38.00" W x 40.00" D
      Seat: 22.00" H x 20.00" W x 22.50" D

      P16

      515

      Lancer Power-Recline-XRw Recliner

      Overall: 43.00" H x 38.00" W x 42.00" D
      Seat: 19.50" H x 20.50" W x 20.50" D

      P16

      516

      Mason Power-Recline-XRw Recliner

      Overall: 41.00" H x 34.00" W x 37.00" D
      Seat: 19.00" H x 19.00" W x 20.00" D

      P16

      521

      James Power-Recline-XRw Recliner

      Overall: 42.50" H x 39.00" W x 38.00" D
      Seat: 20.00" H x 21.50" W x 21.00" D

      P16

      528

      Larson Power-Recline XRw Recliner

      Overall: 42.00” H x 37.00” W x 38.00” D

      Seat: 18.5” H x 20.00” W x 21.00” D

      P16

      530

      Greyson Power-Recline-XRw Recliner

      Overall: 43.00" H x 37.50" W x 41.00" D
      Seat: 20.50" H x 20.00" W x 23.00" D

      P16

      535

      Conner Power-Recline-XRw Recliner

      Overall: 41.00" H x 38.00" W x 39.00" D
      Seat: 19.50" H x 21.00" W x 20.00" D

      P16

      537

      Hayes Power-Recline-XRw Recliner

      Overall: 40.00" H x 37.50" W x 37.00" D
      Seat: 19.50" H x 21.00" W x 20.50" D

      P16

      563

      Gibson Power-Recline-XRw Recliner

      Overall: 44.00" H x 40.00" W x 43.00" D
      Seat: 20.00" H x 17.00" W x 22.50" D

      P16

      572

      Lawrence Power-Recline-XRw Recliner

      Overall: 41.50" H x 38.50" W x 37.00" D
      Seat: 18.50" H x 19.50" W x 19.00" D

      P16

      582

      Maverick Power-Recline-XRw Recliner

      Overall: 42.00" H x 38.00" W x 39.00" D
      Seat: 21.00" H x 19.00" W x 22.00" D

      P16

      701

      Briggs Power-Recline-XRw Recliner

      Overall: 41.50" H x 39.00" W x 38.00" D
      Seat: 19.00" H x 21.00" W x 21.00" D

      P16

      702

      Easton Power-Recline-XRw Recliner

      Overall: 41.00" H x 36.50" W x 38.00" D
      Seat: 20.00" H x 22.00" W x 21.00" D

      P16

      705

      Gabe Power-Recline-XRw Recliner

      Overall: 42.00" H x 36.00" W x 39.50" D
      Seat: 19.00" H x 19.50" W x 20.50" D

      P16

      707

      Maxx Power-Recline-XRw Recliner

      Overall: 40.50" H x 33.50" W x 38.50" D
      Seat: 19.00" H x 23.50" W x 20.00" D

      P16

      708

      Forester Power-Recline-XRw Recliner

      Overall: 40.50" H x 36.00" W x 38.00" D
      Seat: 19.00" H x 19.00" W x 22.00" D

      P16

      709

      Jasper Power-Recline-XRw Recliner

      Overall: 42.00" H x 40.00" W x 38.50" D
      Seat: 20.00" H x 21.50" W x 20.00" D

      P16

      711

      Asher Power-Recline-XRw Recliner

      Overall: 41.50" H x 41.00" W x 41.00" D
      Seat: 20.00" H x 21.50" W x 21.50" D

      P16

      714

      Jace Power-Recline-XRw Recliner

      Overall: 41.00" H x 40.00" W x 38.50" D
      Seat: 19.50" H x 21.50" W x 23.00" D

      P16

      735

      Sullivan Power-Recline-XRw Recliner

      Overall: 41.00" H x 38.50" W x 39.00" D
      Seat: 21.00" H x 21.00" W x 22.50" D

      P16

      740

      Barrett Power-Recline-XRw Recliner

      Overall: 42.00" H x 40.00" W x 39.50" D
      Seat: 20.00" H x 21.00" W x 22.00" D

      P16

      745

      Carter Power-Recline-XRw Recliner

      Overall: 42.00" H x 39.00" W x 40.00" D
      Seat: 19.00" H x 21.00" W x 22.00" D

      P16

      746

      Duncan Power-Recline-XRw Recliner

      Overall: 41.00" H x 37.00" W x 40.00" D
      Seat: 20.00" H x 22.00" W x 23.50" D

      P16

      765

      Rowan Power-Recline-XRw Recliner

      Overall: 41.00" H x 34.00" W x 39.00" D
      Seat: 20.00" H x 22.50" W x 21.00" D

      P16

      770

      Ace Power-Recline-XRw Recliner

      Overall: 41.00" H x 35.00" W x 39.00" D
      Seat: 20.00" H x 22.00" W x 20.00" D

      P16

      801

      Amelia Power-Recline-XRw Recliner

      Overall: 40.50" H x 33.50" W x 38.00" D
      Seat: 20.00" H x 21.25" W x 21.00" D

      P16 PowerReclineXRw Tall Base Recliners

      SERIES

      STYLE

      NAME

      DIMENSIONS

      P16

      519

      Astor Power-Recline-XRw Recliner

      Overall : 44.50" H x 37.50" W x 42.50" D
      Seat : 21.00" H x 21.00" W x 21.00" D

      P16

      716

      Logan Power-Recline-XRw Recliner

      Overall : 43.50" H x 38.00" W x 40.00" D
      Seat : 22.00" H x 20.00" W x 22.50" D

      P16 PowerReclineXRw Short Seat Recliners

      SERIES

      STYLE

      NAME

      DIMENSIONS

      P16

      798

      Impulse Power-Recline-XRw Recliner

      Overall : 39.00" H x 30.00" W x 37.00" D
      Seat : 19.00" H x 23.00" W x 19.50" D

      P16

      799

      Harbor Town Power-Recline-XRw Recliner

      Overall : 41.00" H x 30.00" W x 37.00" D
      Seat : 19.00" H x 23.00" W x 19.50" D

      32P PowerReclineXRw Loveseats

      SERIES

      STYLE

      NAME

      DIMENSIONS

      32P

      512

      Pinnacle Power-Recline-XRw Full Reclining Loveseat

      Overall : 41.00" H x 57.00" W x 38.00" D
      Seat : 20.00" H x 44.50" W x 20.00" D

      32P

      582

      Maverick Power-Recline-XRw Full Reclining Loveseat

      Overall : 42.50" H x 64.00" W x 39.00" D
      Seat : 22.00" H x 45.00" W x 22.50" D

      32P

      746

      Duncan Power-Recline-XRw Full Reclining Loveseat

      Overall : 41.50" H x 63.00" W x 41.00" D
      Seat : 21.00" H x 47.00" W x 23.00" D

      32P

      765

      Rowan Power-Recline-XRw Full Reclining Loveseat

      Overall : 41.00" H x 61.00" W x 37.00" D
      Seat : 22.00" H x 47.50" W x 20.00" D

      32P

      770

      Ace Power-Recline-XRw Full Reclining Loveseat

      Overall : 41.50" H x 62.00" W x 38.50" D
      Seat : 20.00" H x 47.00" W x 21.00" D

      39P PowerReclineXRw Loveseats with Console

      SERIES

      STYLE

      NAME

      DIMENSIONS

      39P

      582

      Maverick Power-Recline-XRw Full Reclining Loveseat w/ Middle Console

      Overall : 42.50" H x 79.00" W x 39.00" D
      Seat : 22.00" H x 60.00" W x 22.50" D

      39P

      746

      Duncan Power-Recline-XRw Full Reclining Loveseat w/ Middle Console

      Overall : 41.50" H x 78.00" W x 41.00" D
      Seat : 21.00" H x 62.00" W x 23.00" D

      39P

      770

      Ace Power-Recline-XRw Full Reclining Loveseat w/ Middle Console

      Overall : 41.50" H x 76.00" W x 38.50" D
      Seat : 20.00" H x 61.00" W x 21.00" D

      The recliners, manufactured in the U.S., were sold at La-Z-Boy Furniture Galleries stores and independent furniture stores nationwide from January 2015, through March 2015, for $600 to $4300.

      Consumers should stop using the chair and contact the local dealer where the chair was purchased for a refund or a repair. A service technician will schedule a time to come to the consumer’s home and install a new part.

      Consumers may contact La-Z-Boy toll-free at (855) 592-9087 from 9 a.m. to 5 p.m. ET Monday through Friday.

      La-Z-Boy of Monroe, Mich., is recalling about 2,600 PowerReclineXRw pieces of reclining furniture. When reclined, the furniture can tip forward if the con...

      Good colleges you probably haven't heard of

      You don't have to go to a name brand school to be successful

      In recent years high school students and their parents have obsessed over the college admissions process.

      Certain colleges have become like designer consumer products, a sign of status and announcing to the world that this young person is embarking on a meaningful and successful career. Of course, it doesn't always work out that way.

      Some graduates of name-brand colleges flame out in their careers. Others fall into depression because they weren't accepted by the school of their choice.

      In his book “Where You Go is Not Who You'll Be,” New York Times columnist Frank Bruni argues that the Ivy League has no monopoly on corner offices, governors' mansions, or the most prestigious academic and scientific grants.

      His book is a recounting of the stories of highly successful people who didn't attend the most exclusive schools. In fact, he writes there are many great colleges and universities that aren't well known. You just have to be able to find them.

      University Research & Review, which offers college placement advice, has issued a list of what it believes are the best colleges you've never heard of. Attending one of them, the company says, will offer a great education and set the stage for a successful career.

      Here's their list:

      Abraham Baldwin Agricultural College Located in rural Georgia this school, as the name implies, might be ideal for those pursuing a career in making things grow. The school offers a degree in, among other things, turfgrass management for those aspiring to a career in the golf course industry. They even have their own golf course where students practice what they learn.

      Amridge University Flexible is one way to describe Amridge University. All of its courses are also offered online with live course lectures viewed in real time and optimized for mobile devices. The school's low tuition also makes it attractive.

      Brandman University University Research & Review calls Brandman “one of the most progressive institutions in the country. It now embraces competency based education, meaning if you know the subject matter you are not held back by outdated seat time requirements. This could be a good choice for serious adult learners who want to get on with life and career.

      Brescia University There are only about a thousand students at Kentucky's Brescia University, offering both classroom and online programs. Most of the school’s mostly female students are full-time and enroll in programs such as social work, teacher education, and business.

      Kettering College This might be a good choice for someone planning on a career in health care. It wins high marks for a professional and committed faculty and a responsive administration.

      Lincoln Memorial University Lincoln Memorial is also popular among those interested in health careers. Students can become a doctor of osteopathic medicine, or of veterinary medicine, or maybe earn one of several master’s degrees.

      Special features

      Park University, Patten University, Western Governors University and William Carey University all have attributes that set them apart. About 90% of Park's students are part-time and about half take their courses online.

      Patten University tries to help students avoid taking out loans by developing an inexpensive monthly payment program where a student can take all the courses he or she can handle. All courses are available online.

      Western Governors University is a pioneer in competency based education, meaning you can get a degree sooner than you might think. Its course offerings are also 100% online.

      William Carey University has unique scholarship and assistance programs available for students. There are special assistance programs for low income families, and students with excellent academic records may qualify for full tuition and fees plus a room allowance.

      In recent years high school students and their parents have obsessed over the college admissions process. Certain colleges have become like designer con...

      Verizon buying AOL to beef up its digital content & advertising

      Maybe grandpa will finally be able to cancel his AOL subscription?

      Verizon is buying AOL for an estimated $4.4 billion, saying the purchase will help its efforts to "drive growth in video and digital platforms," subject to the usual regulatory approvals. AOL owns major content brands including The Huffington Post, TechCrunch, Engadget, MAKERS and AOL.com.

      “Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform," said Lowell McAdam, Verizon chairman and CEO. "This acquisition supports our strategy to provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience.”

      AOL still makes much of its money by billing customers for dial-up servicers many consumers don't even know they still have. Others think the monthly charge is for AOL email, which is actually free. Those who discover the charges often have a difficult time trying to cancel.

      A 2013 class action lawsuit accused AOL of ripping off non-tech-savvy seniors, citing the case of Harvey Dunn, then 76. He was still paying AOL for outmoded dial-up service, which he was no longer using since he had become a Time Warner client.

      When Dunn saw the monthly $17.95 charges on his credit card bill, he didn't realize that AOL was charging him for content and email services it gave away free to others. 

      Nearly obsolete

      "AOL is well aware that the vast majority of its paying customers are not using its nearly obsolete 'dial-up' services, and misunderstand what they are paying for," the complaint stated. "AOL's technology allows it to easily tell which of its paying customers are using AOL's dial-up ISP services. AOL knows that plaintiff, and millions of other consumers have absolutely no use for their paid accounts, or AOL dial-up service they do not need and are not using."

      It was recently estimated that 2.6 million Americans were still paying AOL for dial-up service. The company was something of a pioneer, introducing an easy-to-use Internet dial-up service in the 1990s. Its attempts to become an advertising-supported content provider have returned spotty results, apparently making AOL reluctant to turn its back on all those widows and orphans sending in their $20 or $30 each month.

      If anyone thinks Verizon will be quick to release customers still stuck with its outmoded dial-up, McAdam's press release listed AOL's "subscription business" as among its "key assets."

      Verizon says the acquisition will help drive its LTE wireless video and OTT (over-the-top video) strategy. The agreement will also support and connect to Verizon’s IoT (Internet of Things) platforms, creating a growth platform from wireless to IoT for consumers and businesses, the company said.

      Verizon is buying AOL for an estimated $4.4 billion, saying the purchase will help its efforts to "drive growth in video and digital platforms," subject to...

      Verizon, Sprint to pay $158 million for illegal cramming of customers' mobile phones

      $120 million will go for redress to consumers who were wrongly charged

      It's Verizon and Sprint's turn to pay refunds and penalties for illegally "cramming" their mobile customers. The Consumer Financial Protection Bureau says the companies will pay $120 million in redress to wireless customers who were illegally billed hundreds of millions of dollars in unauthorized third-party charges and will pay $38 million in fines.

      AT&T and T-Mobile reached similar settlements earlier, paying $105 million and $90 million respectively. 

      Consumers rate Verizon Wireless

      Verizon customers can submit claims for refunds at http://www.CFPBSettlementVerizon.com or can learn more information about the Verizon settlement by calling 888-726-7063. Sprint customers can submit claims for refunds at www.SprintRefundPSMS.com or can learn more information about the Sprint settlement by calling 877-389-8787.

      “Sprint and Verizon had flawed billing systems that allowed merchants to add unauthorized charges to wireless customer bills,” said CFPB Director Richard Cordray. “Consumers bore the brunt of those charges and ended up paying millions of dollars while the companies reaped profits. Today’s actions will put $120 million back into the pockets of harmed consumers and require these companies to improve their billing practices going forward.”

      Unauthorized charges

      The CFPB alleges that the companies operated billing systems that allowed third parties to “cram” unauthorized charges on customers’ mobile-phone accounts and ignored complaints about the charges.

      Today’s actions are being taken in coordination with the state attorneys general and the Federal Communications Commission (FCC). Under the proposed terms, the CFPB will oversee $120 million in consumer refunds. The companies will also pay $38 million in federal and state fines.

      The charges were such things as apps, games, books, movies, and music. The purchases appeared as charges on consumers’ phone bills even though many consumers had not actually ordered the products.

      Consumers rate Sprint PCS

      Wireless carriers collect and process payments for these purchases and control the networks connecting merchants and customers. From about 2004 through 2013, nearly all wireless carriers’ third-party billing involved products called “premium text messages” or “premium short messaging services” because they were frequently delivered by text messages.

      Sprint and Verizon outsourced payment processing for these digital purchases to vendors, but failed to properly monitor them, allowing the third-party vendors nearly unfettered access to consumers’ wireless accounts.

      The Federal Communications Commission and the attorneys general of 50 states and the District of Columbia joined in the action.

      “To boost their profits, Sprint and Verizon deceived consumers and added unauthorized charges to their monthly bills,” California Attorney General Kamala Harris said. “This settlement holds Sprint and Verizonaccountable for their actions, ends these bad business practices and refunds consumers.”

      Targeted online

      Most consumers were targeted online. Consumers clicked on ads that brought them to websites asking them to enter their cellphone numbers.

      Some merchants tricked consumers into providing their cellphone numbers to receive “free” digital content and then charged for it. Many others simply placed fabricated charges on bills without delivering any goods or communicating with consumers.

      It's Verizon and Sprint's turn to pay refunds and penalties for illegally "cramming" their mobile customers. The Consumer Financial Protection Bureau says...

      Google defends its self-driving cars' accident rate

      In most of the incidents, the Google car was rear-ended, the company says

      Google, founded on Sept. 4, 1998, will be turning 17 in a few months and, like many teens, it's eager to get out on the open road after a few years of puttering around town with driving instructors and anxious parents looking over its shoulder.

      Critics have been questioning whether Google's self-driving cars are safe and Google, like many an adolescent driver before it, is arguing that a few dings here and there don't really amount to much and says it's getting better with experience.

      The Associated Press reported recently that three of Google's self-driving cars have been involved in accidents since September, when California allowed them to begin using public roards. Google doesn't deny that but says its cars have logged 1.7 million miles since 2009, more than twice the 700,000 the AP reported. They've also been involved in 11 minor accidents, according to Google, not just three.

      Driving record

      Chris Urmson, the head of Google's self-driving initiative, says 11 accidents in 1.7 million miles is a lot better record than most humans achieve.

      Also chiming in is Consumer Watchdog, a non-profit organization that is calling on Google to release all of the data it has on the accidents.

      “It is important that the public know what happened,” wrote John M. Simpson, Consumer Watchdog’s Privacy Project director, in a letter to Google.  “You are testing driverless vehicles on public highways, quite possibly putting other drivers at risk.” 

      But Urmson says Google's cars are much safer than those driven by humans.

      "If you spend enough time on the road, accidents will happen whether you’re in a car or a self-driving car. Over the 6 years since we started the project, we’ve been involved in 11 minor accidents (light damage, no injuries) during those 1.7 million miles of autonomous and manual driving with our safety drivers behind the wheel, and not once was the self-driving car the cause of the accident," Urmson wrote in a blog posting on Medium. 

      Urmson said that in most of the accidents, there was nothing Google's driver -- human or otherwise -- could have done to avoid being hit.

      "Rear-end crashes are the most frequent accidents in America, and often there’s little the driver in front can do to avoid getting hit; we’ve been hit from behind seven times, mainly at traffic lights but also on the freeway," he said. "We’ve also been side-swiped a couple of times and hit by a car rolling through a stop sign. ... We have a detailed review process and try to learn something from each incident, even if it hasn’t been our fault.

      Simpson said Google should make all of the accident reports public.

      “Rather than hide behind the cloak of DMV confidentiality, Google should disclose the accident report and the full details of the incident.  We also call on you to commit to making all future accident reports public,” he said in a letter to Google executives.

      A Google self-driving Lexus (Photo credit: Google) Google, founded on Sept. 4, 1998, will be turning 17 in a few months and, like many teens, it's eag...

      Small overlap tests on midsize SUVs yield mixed results

      Three vehicles from Chrysler and one from Hyundai struggle

      Results from the latest round of small overlap front crash testing of midsize SUVs are in, and the results are mixed.

      Three vehicles achieved good or acceptable ratings from the Insurance Institute for Highway Safety (IIHS), but many models -- including three newly rated SUVs from Fiat Chrysler and one from Hyundai -- continue to struggle with the test.

      The Nissan Murano earns a good rating and, with a superior-rated optional front crash prevention system, qualifies for the Institute's highest award, TOP SAFETY PICK+. The Ford Flex earns an acceptable rating and qualifies for TOP SAFETY PICK.

      Choices abound

      Consumers looking for a midsize SUV now have seven choices that qualify for awards from IIHS. The earlier winners are the Toyota Highlander with TOP SAFETY PICK+ and the Chevrolet Equinox, GMC Terrain, Kia Sorento and Nissan Pathfinder, which all earn TOP SAFETY PICK.

      Among the seven 2015 models in this round of testing, the Jeep Wrangler four-door model also picked up a good small overlap rating. However, the Wrangler offers only marginal protection in side and rear crashes, so it's not a recommended choice. It also lacks a fixed roof, so it can't provide good protection in rollover crashes.

      Aside from the Wrangler, three other Fiat Chrysler SUVs were tested for small overlap protection and didn't fare well. The Dodge Journey earns a poor rating, and the Dodge Durango and Jeep Cherokee earn marginal ratings. The Hyundai Santa Fe also earns a marginal rating.

      The test

      The small overlap test replicates what happens when the front corner of a vehicle collides with another vehicle or an object such as a tree or utility pole. In the test, 25 percent of a vehicle's front end on the driver's side strikes a rigid barrier at 40 mph.

      The test is more difficult than either the head-on crashes conducted by the government or the longstanding IIHS moderate overlap test. That's because, in a small overlap test, the main structures of the vehicle's front-end crush zone are bypassed, making it hard for the vehicle to manage crash energy. The occupant compartment can collapse as a result.

      Since IIHS began small overlap testing in 2012, manufacturers have responded to the challenge in two ways: One is by taking the test into account when models are redesigned. The other is by making smaller modifications to beef up the front structure and improve airbags even before a model gets a full overhaul.

      "This test presented a major challenge for manufacturers when it was introduced three years ago, and many have adapted quickly," said IIHS Chief Research Officer David Zuby. "Chrysler, Dodge and Jeep have had some successes with redesigned models, but they haven't done much in the way of interim improvements. As a result, they still have many models that rate poor or marginal."

      Murano tops the list

      The best performer in the current group of seven is the redesigned 2015 Murano. It hit all the marks for ideal small overlap protection. The driver space held up well, with maximum intrusion of 5 inches at the lower door hinge pillar. The dummy's movement was well-controlled, and its head hit the front airbag and stayed there until rebound.

      The side curtain airbag deployed with sufficient forward coverage to protect the head from contact with side structure and outside objects. Measures taken from the dummy indicate a low risk of any significant injuries in a crash of this severity.

      In addition to earning a good small overlap rating, the Murano improved its roof strength rating to good from the previous generation's marginal rating. The optional front crash prevention also is new for 2015. The Murano's autobrake nearly avoided a collision in the 12 mph IIHS track test and reduced the vehicle's speed by 11 mph in the 25 mph test. The Murano also earns a point for meeting federal criteria for forward collision warning systems.

      Journey at the bottom

      The Journey is the worst performer in the group and a classic example of poor small overlap protection. The occupant compartment failed to hold up, with intrusion measuring as much as 9 inches at the instrument panel and the parking brake pedal, which tore through the dummy's left lower leg. Injuries to the left hip, left knee and right lower leg also would be possible.

      The dummy's head barely contacted the front airbag before sliding off the left side, as the steering column moved to the right. The side curtain airbag failed to deploy, leaving the dummy's head vulnerable to contact with side structure and outside objects.

      The Journey was introduced in 2009, and its poor rating applies to the previous models.

      Results from the latest round of small overlap front crash testing of midsize SUVs are in, and the results are mixed. Three vehicles achieved good or acce...

      Spring home buyers face tightening market conditions

      Prices are rising but the number of available homes isn't

      With the economy improving and rents rising, more people may be looking to transition into home ownership this spring. But a new report from the National Association of Realtors (NAR) suggests this year's housing market poses some stiff challenges.

      In it's review of the first quarter of the year, NAR finds home prices have risen while the number of homes on the market has not kept pace. That means attractively priced real estate in good locations often draws multiple offers.

      That said, some markets are more competitive than others. In some areas houses move quickly while in others, they linger on the market.

      Median price up in 85% of markets

      Still, the report shows the number of U.S. metros experiencing double-digit price appreciation doubled compared to last quarter. For existing single family homes, the median price increased in 85% of the measured markets.

      The median price dipped in only 14%, or a total of 25 markets.

      "Sales activity to start the year was notably higher than a year ago, as steady hiring and low interest rates encouraged more buyers to enter the market," said NAR Chief Economist Lawrence Yun. "However, stronger demand without increasing supply led to faster price growth in many markets."

      The national median existing single-family home price in the first quarter was $205,200, up 7.4% from the first quarter of 2014. Still, that's not yet back to pre-housing crash levels.

      According to the U.S. Census Bureau, the nation's median home price peaked in February 2008 at $245,300.

      Sales declined

      Despite the rising prices for single-family homes, the number of existing home sales actually went down in the first quarter – a quirk Yun attributes the the tighter inventory of homes for sale.

      At the end of March there were 2 million existing homes available for sale in the U.S., slightly above the 1.96 million homes for sale at the end of the first quarter in 2014. But demand for homes was greater than the year before, resulting in higher sale prices.

      The average supply during the first quarter was 4.6 months – down from 4.9 months a year ago. NAR says a supply of 6 to 7 months represents a healthy balance of supply between buyers and sellers.

      Buyers are out there

      NAR President Chris Polychron says all indicators point to renewed interest on the part of potential buyers.

      "Realtors are reporting increased foot traffic this spring as more consumers are feeling confident about their financial situation and looking to lock-in before rates eventually start to climb," he said.

      But he too notes that supplies of homes in many markets are tight, especially at entry level prices. Yun says one reason is because current homeowners who have accumulated equity appear reluctant to move up.

      "They aren't confident they'll find another home to buy,” he said. “This trend – in addition to subpar homebuilding activity – is leading to the ongoing inventory shortages and subsequent run-up in prices seen in many markets."

      With the economy improving and rents rising, more people may be looking to transition into home ownership this spring. But a new report from the National A...

      Fewer jobs up for grabs in March

      Hiring was up in the Midwest

      There were fewer jobs available in March than there were in February.

      The Bureau of Labor Statistics (BLS) reports there were 5.0 million job openings on the last business day of March, compared with 5.1 million the month before. Hiring also were little changed at 5.1 million in, as were separations were little changed at 5.0 million.

      Job openings

      The number of job openings (not seasonally adjusted) increased over the 12 months ending in March

      for total nonfarm, total private, and government. Job openings increased over the year for many industries including professional and business services, health care and social assistance, and accommodation and food services. Job openings fell over the year in mining and logging.

      The number of job openings increased over the year in all four regions.

      Hires

      Over the 12 months ending in March, the number of hires (not seasonally adjusted) increased for total nonfarm and total private and was little changed for government. Hires increased in wholesale trade as well as in accommodation and food services. The number of hires decreased in mining and logging.

      The number of hires increased in the Midwest region.

      Separations

      The separations rate was 3.5%.Total separations, which includes quits, layoffs and discharges, and other separations, is referred to as turnover. Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs.

      Layoffs and discharges are involuntary separations initiated by the employer. Other separations include separations due to retirement, death, and disability, as well as transfers to other locations of the same firm. The number of total separations was little changed in total private and government but increased in the Midwest region.

      Over the 12 months ending in March 2015, hires totaled 59.7 million and separations totaled 56.7 million, yielding a net employment gain of 3.0 million.

      These totals include workers who may have been hired and separated more than once during the year.

      The full report is available on the BLS website. 

      There were fewer jobs available in March than there were in February. The Bureau of Labor Statistics (BLS) reports there were 5.0 million job openings on ...

      Schylling recalls Police Press and Go toy vehicles

      The hat can detach from the policeman’s head and pose a choking hazard

      Schylling Inc. of Rowley, Mass., is recalling about 15,300 Police Press & Go toy vehicles in the U.S. and Canada.

      The hat can detach from the policeman’s head and pose a choking hazard to young children.

      The company has received 1 report of the police hat detaching from the toy vehicles. No injuries have been reported.

      This recall involves the Police Press & Go toy vehicles. The white plastic toy cars have a painted dark blue hood and trunk, light blue windshield with a black eyes and mouth painted on the front of the car. There is a police head coming out of the roof of the car wearing a blue police hat with a green star on the center of the hat. When the police head is pressed down it winds up the motor and the car moves forward.

      The toy vehicles measure about 2.5 inches wide by 3.5 inches long by 3.5 inches tall. “Schylling Rowley, MA” and UPC number “01964922782” are printed on the bottom of the toy cars.

      The toys, manufactured in China, were sold at specialty toy and gift stores nationwide from April 2010, through April 2015, for about $5.

      Consumers may contact Schylling at (800) 767-8697 from 8:30 a.m. to 5 p.m. ET Monday through Friday, or by email at SafetyAlert@Schylling.com.

      Schylling Inc. of Rowley, Mass., is recalling about 15,300 Police Press & Go toy vehicles in the U.S. and Canada. The hat can detach from the policeman’s ...

      Good Seed recalls soybean & mung bean sprouts

      The products may be contaminated with Listeria monocytogenes

      Good Seed Inc. of Springfield, Va., is recalling all packages of soybean sprouts and mung bean sprouts.

      The products may be contaminated with Listeria monocytogenes

      The following products are being recalled:

      • 1-lb bags of soybean sprouts in clear plastic bags labeled “GOODSEED Soy Bean Sprouts” “Keep Refrigerated” with a UPC Code of “21111 10035” produced on or after April 1, 2015.
      • 2-lb bags of soybean sprouts in clear plastic bags labeled “GOODSEED Soy Bean Sprouts” “Keep Refrigerated” with a UPC Code of “21112 58772” produced on or after April 1, 2015.
      • 10-lb bags of soybean sprouts in black plastic bags labeled with a sticker “GOODSEED Soy Bean Sprouts” produced on or after April 1, 2015.
      • 1-lb bags of mung bean sprouts in clear plastic bags labeled “GOODSEED Mung Bean Sprouts” “Keep Refrigerated” with a UPC code of “21111 20136” produced on or after April 1, 2015.
      • 2-lb bags of mung bean sprouts in clear plastic bags labeled “GOODSEED Mung Bean Sprouts” “Keep Refrigerated” with a UPC code of “21111 25871” produced on or after April 1, 2015.
      • 10-lb bags of mung bean sprouts in clear plastic bags labeled with a sticker “GOODSEED Mung Bean Sprouts” produced on or after April 1, 2015.

      These recalled items were distributed to retail stores in Virginia, Maryland, New Jersey and North Carolina.

      Customers should return the products to the place of purchase for a full refund.

      Consumers with questions may contact the company directly at 703-392-0075 or the Virginia Department of Agriculture and Consumer Services, Food Safety Program at 804-786-1006.

      Good Seed Inc. of Springfield, Va., is recalling all packages of soybean sprouts and mung bean sprouts. The products may be contaminated with Listeria mon...

      Financial decisions should be based on reason, not fear

      But there seems to be a lot of fear out there

      Former Texas Congressman Ron Paul has been getting more screen time lately than his son Rand, who is seeking the Republican presidential nomination.

      The senior Paul, who sought the GOP nomination himself representing the Libertarian wing of the party, is a Tea Party favorite and harsh critic of the Federal Reserve. His image is all over the Internet and cable TV under the dire headline “Crisis Bigger than 2008 is coming!”

      Though in many of its Internet placements it looks like a news story, it is actually an advertisement for a company called Stansberry Research. In a video infomercial produced by the company, Paul warns of a coming currency crisis affecting the U.S. dollar that he says will wipe out the savings of millions of Americans, primarily seniors.

      “It's not a question of if this will happen,” Paul says confidently in the video, “but when.”

      Stansberry research, which says you can protect yourself and even profit from the coming crisis, doesn't sell annuities or other investment products. It describes itself as a publisher, producing financial newsletter and reports about those products and the financial landscape in general.

      Disclaimer

      “Under no circumstances should you construe anything that appears in our newsletters, reports, or on our website as personalized investment advice,” the company declares in its disclosures. “Our recommendations and analysis are based on Securities and Exchange Commission (SEC) filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here.”

      In other words, the company looks at publicly available financial data and draws its own conclusions, publishing those opinions in reports and newsletters that it sells to the public. Nothing wrong with that.

      It's just using a strong dose of fear to close the deal. And it isn't alone.

      Prepring for World War III

      Another frequent Internet warning comes from Money Morning, another financial publisher, with the headline “CIA insider breaks silence of global currency wars.” It features a video interview with former CIA operative Jim Rickards, who warns U.S. intelligence agencies have begun preparing for World War III.

      Like Paul, Rickards traces the problem to the Fed, charging it is essentially broke. But in the video, he outlines specific investments that he says could profit in such a catastrophic environment. For its part, Money Morning is a bit less emphatic.

      “Readers should be aware that although our track record is highly rated, and has been legally reviewed for presentation in this invitation, investment markets have inherent risks and there can be no guarantee of future profits,” its disclaimer reads. Likewise, our past performance does not assure the same future results. Warning: The past performance of any trade whether actual or hypothetical is not necessarily an indication of future results.”

      Remember gold?

      In fact, investors would be wise not to be swayed by scary pitches. One only has to remember 2011 and 2012 when the Internet and cable TV airwaves carried countless ads urging investors to sink their money into physical gold to protect themselves from impending financial doom. As we reported last year, investors who followed that advice haven't fared so well.

      In the post-financial-crisis environment, investing profitably isn't easy and there are plenty of things to consider and even worry about. But like most important decisions, ones involving finances should be based on careful reason rather than fear.

      Actually, Stansberry Research offers some pretty good advice, buried deep within its disclosure.

      “If you are not an experienced investor, we urge you to get as much education as possible and to consult a licensed individual advisor before making investments of any kind.”

      You can find a Certified Financial Planner here

      Former Texas Congressman Ron Paul has been getting more screen time lately than his son Rand, who is seeking the Republican presidential nomination. The...

      Feds charge Nationwide Biweekly's "Interest Minimizer" is deceptive

      Many consumers wind up paying more in fees than they save in lower interest payments, the CFPB alleges

      It sounds like such a good idea. The "Interest Minimizer" program that's heavily promoted by Nationwide Biweekly Administration, Inc., claims that homeowners are "guaranteed to save money" by using the program.

      It's pretty simple, really. Instead of sending in your mortgage payment once a month, you pay Nationwide Biweekly every other week. This supposedly reduces your interest expense because you wind up making one extra payment per year. 

      But the Consumer Financial Protection Bureau (CFPB) says the claims are false, and today it sued the company, an affiliated firm and their owner, Daniel Lipsky.

      “These companies and their owner, Daniel Lipsky, took advantage of consumers with false promises of savings on their mortgage,” said CFPB Director Richard Cordray. “Homeowners deserve accurate information in the financial marketplace. Today we are taking action to end these illegal and deceptive practices, and to hold these companies accountable for their actions.”

      Fees add up

      The CFPB noted that most consumers who enroll in the Interest Minimizer pay a setup fee of up to $995 and go on to pay from $84 to $101 in payment processing fees each year they remain enrolled.

      The company's ads promise consumers that "soon you will be . . . saving thousands of dollars in unnecessary payments.” But the CFPB's suit alleges that consumers wind up paying more in fees than they save in interest and that most consumers will leave the program without saving any money at all.

      In a video on Nationwide’s website, Lipsky states: “you’re not increasing your payment. You’re just switching to a smaller biweekly or weekly amount.” In fact, says the CFPB, consumers in the program pay processing fees for each biweekly payment and the initial setup fee to Nationwide, plus the equivalent of one additional monthly payment each year.

      Some consumers, like Tammy of St. Louis, have also complained that glitches in the program resulted in their being hit with late fees. 

      "I am requesting for my January late fee to be waived. I am in the Nationwide Biweekly program and because of their fault my payment was not processed on time," she said in a ConsumerAffairs review.

      The suit charges that Nationwide collected about $49 million in setup fees between 2011 and 2014. It seeks compensation for consumers, a civil penalty and an injunction to stop the allegedly misleading claims.

      It sounds like such a good idea. The "Interest Minimizer" program that's heavily promoted by Nationwide Biweekly Administration, Inc., claims that homeowne...

      Facebook-funded Facebook study concludes Facebook News Feed biases are not Facebook's fault

      Yet the sample population was arguably too small and too biased for the study to be of much use

      Fairly or not, Facebook's algorithms have long been blamed for various complaints Facebook users have about what appears in their feeds, including the complaint (common to many social media platforms) that Facebook participation tends to result in an online “echo chamber,” where you're only shown stories that reinforce, rather than challenge, whatever views and opinions you already have.

      But last week, those algorithms were apparently vindicated after the scientific journal Science published a paper titled “Exposure to ideologically diverse news and opinion on Facebook,” written by Facebook-employed researchers, which basically concluded that neither Facebook nor its algorithms are to blame for any echo-chamber effects in your feeds; you are.

      Or, as MIT's Technology Review put it, “Facebook says you filter news more than its algorithm does; a Facebook study of 10 million users shows that your selection of friends holds more sway than filtering algorithms when it comes to seeing news from opposing political viewpoints.”

      Facebook's researchers studied the URLs shared by millions of anonymized American Facebook users whose profiles self-identified them as either politically liberal or politically conservative, then concluded that (contrary to popular belief) the news a politically opinionated Facebook user sees “while interacting via Facebook’s algorithmically ranked News Feed” is influenced more by that user's own self-selected Facebook friends than by the algorithms. So any problems you might have with your Facebook feed are your own fault, not Facebook's.

      "Not our fault"

      At least, that's how some critics interpreted the results. The day after Facebook's Science article appeared, Wired magazine summarized it as “Facebook: It's Not Our Fault.”

      PandoDaily was a bit more opinionated, calling the Science article “less a piece of objective scientific inquiry and more the work of corporate-commissioned data tricksters —  a rancid pile of pro-Facebook propaganda that derives and frames its conclusions with the sole purpose of making Facebook look good.”

      It's hard to say conclusively what's going on, in part because Facebook's algorithms are proprietary secrets known only to a handful of high-ranking Facebook insiders, and also because those algorithms are always changing.

      For example: last May, when Facebook came under fire for promoting blatantly false news stories as part of its then-new “related articles” system, an unnamed Facebook spokeswoman blamed the problem on “algorithms” (whereas critics suggested the actual problem was more a lack of standards on Facebook's part).

      If you're active on Facebook, you've surely noticed (and even enjoyed the occasional laugh about) how foolish those algorithms often seem to be: post a withering insult about your least-favorite politician, and Facebook's algorithms will latch on to his name and recommend that you “Like” his page and donate to his re-election campaign. (Which, in all fairness, is pretty much the exact opposite of any “echo chamber” complaints.)

      Doctor Who vs. "a doctor who"

      Nor is this limited to political topics. A couple summers ago a good friend of mine, an American fan of the British science fiction series Doctor Who, kept getting constant Facebook recommendations that he read news articles about then-current doping allegations in the world of European competitive bicycle racing; eventually he figured out it's because the articles all mentioned a doctor who might have helped certain athletes cheat.

      Then again, Facebook users such as my Doctor Who-loving friend were not included in Facebook's Science study, which focused only on American users who don't merely have opinions about politics, but choose to self-identify as either “liberal” or “conservative” in their Facebook profiles.

      So how many people are we talking about? Only 4% of American Facebook users, all of whom share a particular trait not shared by the other 96% – the specific trait of putting one of the two most common American political labels (“liberal” or “conservative”) in their own Facebook profile descriptions.

      As Zeynep Tufekci, as assistant professor at the University of North Carolina, pointed out in a Medium post about the study (italics lifted from the original): “The gold standard of sampling is random, where every unit has equal chance of selection, which allows us to do amazing things like predict elections with tiny samples of thousands. … [but] in cases like this, the sampling affects behavior: people who self-identify their politics are almost certainly going to behave quite differently, on average, than people who do not, when it comes to the behavior in question which is sharing and clicking through ideologically challenging content. So, everything in this study applies only to that small subsample of unusual people.”

      Fairly or not, Facebook's algorithms have long been blamed for various complaints Facebook users have about what appears in their feeds, including the comp...