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Thousands die every year because 9-1-1 can't find them
Report: Wireless carriers manage to water down rules that would have saved many victims09/30/2015ConsumerAffairsBy James R. Hood
Sadly, the 9-1-1 system was perfected just about the time cell phones came along and rendered it obsolete. Emergency dispatchers can pinpoint calls from la...
Sadly, the 9-1-1 system was perfected just about the time cell phones came along and rendered it obsolete. Emergency dispatchers can pinpoint calls from landlines and get rescue equipment rolling immediately. But wireless calls? Don't bet your life on it.
The Federal Communications Commission estimates that more than 10,000 wireless callers die each year because dispatchers can't determine their exact location, yet the commission recently approved new rules that fail to fix the problem, according to the Center for Public Integrity, a not-for-profit investigative journalism organization.
The problem is that the technology used by AT&T, Verizon and other wireless carriers can provide reasonably accurate location information outside. But if you're in a large apartment or office building, it's a different story.
The Public Integrity report told the tale of Joan Lantz, a 71-year-old South Carolina woman who called for help when she developed trouble breathing. She was unable to give 9-1-1 dispatchers her location, so police and firefighters had to go door-to-door in her large apartment complex.
By the time they found Lantz, 44 minutes later, she was dead, her cell phone still clutched in her hand.
Good enough, and cheaper
It's a typical story and one that Public Integrity says wouldn't happen if wireless phones were equipped with the latest technology that can provide exact location information even when deep within a large building complex.
The FCC proposed tough new technology rules in February 2014, but AT&T, Verizon, and other wireless carriers said the rules would be too expensive to implement and argued that, instead, existing technology like the wi-fi and Bluetooth devices found in nearly every home worked well enough most of the time.
Although consumers don't realize it, their wi-fi and similar devices are "visible" to specialized tracking equipment and can be used to supplement the GPS data provided by wireless phones, although the process is not foolproof.
The carriers said that technology was good enough and -- not coincidentally -- was paid for by consumers rather than the carriers. Associations representing firefighters, police, the elderly, and others dissented, saying the technology wasn't up to the challenge and noting that it would be useless during a hurricane, tornado, earthquake, or other disaster when the electricity fails.
These groups said the carriers had ignored their comments and instead lavished money and attention on a few associations tightly tied to the telephone companies, which fell into line with the carriers' position.
“[This] … is a perfect example of how big money and big corporations can make it appear there’s been a democratic and open process, but in fact they’ve corrupted the science and bought off the very organizations that are supposed to be a watchdog in protecting the public,” said a former senior FCC official who asked to not be identified in order to speak more candidly, Public Integrity reported. “And in this case, the result means more people will die.”
It's something to keep in mind when you're thinking of doing without a landline.
Company says it has received 175,000 complaints since May 201409/30/2015ConsumerAffairsBy Mark Huffman
Among the more successful recent scams is the Microsoft Tech Support scam. An unsuspecting consumer, often a senior citizen, receives a call from someone i...
Feds try to help student loan borrowers navigate repayment process
Meanwhile, new tool launches to help students find Pell grants09/30/2015ConsumerAffairsBy Mark Huffman
Three federal agencies have issued guidelines to student loan servicers to help students repay their loans and avoid default.The guiding principals fro...
Three federal agencies have issued guidelines to student loan servicers to help students repay their loans and avoid default.
The guiding principals from the Departments of Education and Treasury and the Consumer Financial Protection Bureau (CFPB) are designed to make sure borrowers are protected and have the information they need, even if they are struggling under the burden of their debts. It also is meant to provide ways to quickly resolve errors and hold federally-contracted companies accountable.
The guidelines say servicer policies should be consistent, accurate, accountable, and transparent.
Student loan debt has become an issue as outstanding loans now approach $1.3 trillion, saddling many recent graduates – not to mention those who left school before getting a degree – with significant debt as they start careers.
Types of loans
There are four main types of post-secondary education loans under which borrowers have outstanding balances. Direct Loans are federal loans made directly to borrowers by the U.S. Department of Education through the William D. Ford Federal Direct Loan program.
Federal Family Education Loan Program (FFELP) loans were originated by private lenders and guaranteed by the federal government.
Federal Perkins Loans, which are co-funded by institutions of higher education and the federal government, are originated and administered by participating institutions.
Private student loans are made by depository and non-depository financial institutions, states, colleges, and other entities.
Alternatives to loans
Finding alternatives to student loans has become a priority as college costs continue to rise. As we previously reported, College Abacus is a free online tool allowing students and families to calculate the amount of aid they qualify for when applying at more than 5,000 colleges and universities.
Now it has launched a new site, Pell Abacus, which it says will simplify and streamline the college search process for low-income students who are likely eligible for federal Pell Grants.
“By making this process simple to navigate without tax forms and accessible on mobile phones, we’re removing some of the key barriers preventing low-income students from exploring their full range of college options,” said Abigail Seldin, co-founder of College Abacus and vice president of Innovation & Product Management at ECMC Group. “Our goal with Pell Abacus is to not only streamline the college search process for underserved students, but to empower them by providing meaningful context around the most important financial factors impacting college choice, from personalized net prices to school-specific loan repayment information.”
The new Pell Abacus desktop site provides school-specific data on different financial factors, such as average loan payments for Pell students, the percentage of students who receive Pell Grants and the average monthly income percentage spent on federal loan repayments after college.
Pell Grants are government stipends that allow students, based on need, to pay for college. Grants, unlike loans, do not have to be repaid, making it a great alternative to student loans.
In a previous interview with ConsumerAffairs, Seldin said the College Abacus tool helps students access grant money, reducing the need for borrowing. Check it out here.
Biggest relationship threat -- Facebook friend or a face from the past?
Technology isn't the winner in every contest09/30/2015ConsumerAffairsBy Truman Lewis
So which do you think is more dangerous to your existing relationship -- a smokin' hot Facebook friend or a fondly remembered face from the past?A grou...
So which do you think is more dangerous to your existing relationship -- a smokin' hot Facebook friend or a fondly remembered face from the past?
A group of researchers set out to find the answer. Participants were shown their friends list and asked to pick out potential sexual partners. Not much happened.
But then the subjects were asked about romantically provocative people from their pasts and the responses were more enthusiastic.
Conclusion: Technology loses to memory -- or as the poet Stanislaw Jerzy Lec put it: "You can close your eyes to reality, but not to memories."
In other words, the alternative, romantically desirable partners people keep in their memories are more of a threat to existing relationships than are alternative partners they might consider from scrolling through their list of Facebook friends.
Power of memory
The researchers found that merely thinking about a person one views as a potential romantic partner could lower an individual's relationship satisfaction and commitment to one's current partner. Facebook friends were not seen as romantic alternatives that threatened current committed relationships, which was reported in an article published in Cyberpsychology, Behavior, and Social Networking
"The participants in this study were unmarried, younger adults, and although the results may not generalize to older, married adults, comparing the power of technology versus the impact of our internal memories on interpersonal relationships is an important area of research," said Journal Editor-in-Chief Brenda K. Wiederhold, PhD, Interactive Media Institute, San Diego, California.
Target expands price match to online competitors
Will also give customers 14 days to make a price adjustment request09/30/2015ConsumerAffairsBy Mark Huffman
Think of it as the long countdown to the holiday shopping season. The nation's retailers are all putting the final touches on competitive strategies they h...
Think of it as the long countdown to the holiday shopping season. The nation's retailers are all putting the final touches on competitive strategies they hope will give them an advantage in increasing sales.
Consumers need to be aware of this maneuvering so they can put it to their advantage.
The latest move comes from Target, which says that beginning October 1 it is expanding upon its Price Match Policy by increasing its online usability. The retailer said it is providing longer timeframes and matching additional competitors so that its customers can get the best price, whether in a store or ordering from the website.
“We’ve expanded the list of online competitors we match, both in stores and Target.com, and added 24 more,” the company said in a statement. “We looked at which competitors are most important to our guests, and where there’s a lot of overlap with Target’s product assortment, and landed on the competitors that are most relevant for our guests. And for the first time, that list includes membership clubs like Costco and Sam’s Club.”
Target and Target.com will now price match:
In addition to expanding its list of price match competitors, Target says it is doubling the number of days customers have to make a price adjustment on a product. Customers will now have 14 days, both in stores and at Target.com.
Wine, infant formula heavy on the arsenic, study finds
It's a naturally occurring substance, but that doesn't mean it's good for you09/30/2015ConsumerAffairsBy Truman Lewis
The water's probably OK, but you may want to think twice about the wine and infant formula. A new University of Washington study found wines from four stat...
The water's probably OK, but you may want to think twice about the wine and infant formula. A new University of Washington study found wines from four states have arsenic levels that exceed what's allowed in drinking water.
So does infant formula, the researchers report.
The U.S. Environmental Protection Agency allows drinking water to contain no more than 10 parts per billion of arsenic. The 65 wine samples the UW researchers tested ranged from 10 to 76 parts per billion, with an average of 24 parts per billion. The wines came from the top four wine-producing states -- California, Washington, New York, and Oregon.
But a companion study concluded that the likely health risks from that naturally-occurring toxic element depend on how many other foods and beverages an individual person eats that are known to be high in arsenic, such as apple juice, rice, or cereal bars. The highest risks from arsenic exposure stem from certain types of infant formulas, the study estimated.
The two studies from UW electrical engineering professor Denise Wilson appear on the cover of the October 2015 issue of the Journal of Environmental Health.
"Unless you are a heavy drinker consuming wine with really high concentrations of arsenic, of which there are only a few, there's little health threat if that's the only source of arsenic in your diet," said Wilson.
"But consumers need to look at their diets as a whole. If you are eating a lot of contaminated rice, organic brown rice syrup, seafood, wine, apple juice -- all those heavy contributors to arsenic poisoning -- you should be concerned, especially pregnant women, kids and the elderly."
Arsenic is a naturally occurring element that is toxic to humans in some forms, and can cause skin, lung, and bladder cancers, among other diseases. As rain, rivers, or winds erode rocks that contain arsenic, it leaches into water and soil. From there, the toxic metalloid can work its way into the food chain.
The UW study is the first peer-reviewed research in decades to look at the arsenic content of American wines. As a group, they had higher arsenic levels than their European counterparts, likely due to the underlying geology of U.S. wine growing regions.
Wilson also tested for lead, which is a common co-contaminant. The study found lead in 58 percent of the samples, but only 5 percent -- all from New York -- exceeded drinking water standards.
The food that posed the largest risk of arsenic poisoning was infant formula made with organic brown rice syrup, an alternative to high-fructose corn syrup.
Wilson estimated that some infants eating large amounts of certain formulas may be getting more than 10 times the daily maximum dose of arsenic.
TiVo BOLT makes it even easier to skip commercials
Device jumps over entire commercial break with touch of a button09/30/2015ConsumerAffairsBy Mark Huffman
Television has come a long way since the days when you turned on the set, waited nearly a minute for it to “warm up,” adjusted the antenna for better recep...
Television has come a long way since the days when you turned on the set, waited nearly a minute for it to “warm up,” adjusted the antenna for better reception, and then decided which of the three channels you would watch.
It's an entirely different experience today, in part because of TiVo, the digital video recorder (DVR) introduced in 1999, making the VCR obsolete. Now viewers can record shows and easily scan through commercial breaks.
Other DVRs followed, but in the industry vernacular, people didn't record programs any more, they “TiVoed” them.
This week TiVo introduced a new product, the TiVo BOLT, a DVR it says will completely change the viewing experience once again.
"The TiVo BOLT arrives at a time of piqued interest in both connected devices and commercial avoidance," said Tom Rogers, TiVo's President and CEO. "The clear demand of consumers is for a TV experience that quickly delivers them exactly what they want the instant they turn on the screen. BOLT is a game changer that will remind people of how they felt the first time they experienced digital recording."
The BOLT will be sold at retail stores starting October 4 but is available online now. The 500 GB version is $300 including the first year of service, then $150 a year after that.
It's fair to say that advertisers and the TV and cable networks they support hate TiVo and other DVRs because these devices allow viewers to watch content and avoid the commercials that pay for it. And TiVo says the BOLT now makes it even easier to do that.
BOLT allows viewers to skip entire commercial breaks in a single bound at the press of a button. It's called the Skip Mode feature. Somehow, the device senses the beginning and end of program content and the start of commercials.
Hurry up and watch
For viewers who don't really have time to watch a lot of TV, there's something called QuickMode. It speeds up the program by 30%, without making the actors sound like chipmunks. The company says it enables the average viewer to potentially recapture a month of time in his or her life each year.
There is also a money-saving feature. TiVo says subscribers can save money by getting out from under the rental charges of boxes the cable operator provides because one Bolt works on all TVs in the house.
"BOLT was designed to meet the requirements of a new generation of TV viewers," said Ira Bahr, TiVo's Chief Marketing and Retail Sales Officer. "Smaller form factor, 4K compatibility, single-screen integration of cable or over-the-air, plus streaming apps, the ability to take your content anywhere -- and for the first time, the ability to precisely jump commercial breaks at the touch of a button."
The real question is how content providers who depend upon advertising are going to respond to this existential threat. The more consumers who are able to avoid commercials, the less viable this long-standing business model is.
The answer will undoubtedly lie in technology. Already, some streaming content containing commercials has a feature making it impossible to skip over the paid insertions. If you want to watch the programs, the commercials must play.
It's a good bet engineers are at work trying to figure out a way to apply this technology to over-the-air and cable programming.
Tax-filing extension deadline approaches
Make sure everything is in order before you send your return in09/30/2015ConsumerAffairsBy James Limbach
If you're one of those taxpayers who got an extension back in April for filing your federal income tax return, be advised that the clock is ticking With t...
If you're one of those taxpayers who got an extension back in April for filing your federal income tax return, be advised that the clock is ticking
With the extension running out on Oct. 15, the Internal Revenue Service (IRS) is advising you to double-check your return for often-overlooked tax benefits and then file electronically using IRS e-file or the Free File system.
About a quarter of the 13 million taxpayers who requested an automatic six-month extension this year have yet to file. While Oct. 15 is the last day for most people, some still have more time, including members of the military and others serving in combat zone localities who typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.
“If you still need to file, don’t forget that you can still file electronically through October 15,” said IRS Commissioner John Koskinen. “Free File is free tax software that takes the guesswork out of return preparation. Even if you’re filing in the final days, filing electronically remains easy, safe and the most accurate way to file your taxes.”
Check out tax benefits
Before you file, the IRS encourages you to take a moment to see if you qualify for these and other often-overlooked credits and deductions:
- Benefits for low-and moderate-income workers and families, especially the Earned Income Tax Credit. The special EITC Assistant can help taxpayers see if they’re eligible.
- Savers credit, claimed on Form 8880, for low-and moderate-income workers who contributed to a retirement plan, such as an IRA or 401(k).
- American Opportunity Tax Credit, claimed on Form 8863, and other education tax benefits for parents and college students.
Health care tax reporting
While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A and 1040EZ related to the health care law. Visit IRS.gov/aca for details on how the Affordable Care Act affects the 2014 return.
- Reporting health insurance coverage.
- Claiming an exemption from the coverage requirement.
- Making an individual shared responsibility payment.
- Claiming the premium tax credit.
- Reconciling advance payments of the premium tax credit. Properly doing so can help maintain continued eligibility for premium assistance in 2016.
The Interactive Tax Assistant tool can also help a taxpayer determine if he qualifies for an exemption, needs to make a payment, or is eligible for the premium tax credit.
Taxpayers who intend to claim the Health Coverage Tax Credit for 2014 must first file an original 2014 tax return without claiming the HCTC, even if they have no other filing requirement. They can then file an amended return when the IRS issues further HCTC guidance. Updates can be found here.
Housing experts see shift to buyer's market in September
Home prices have dipped and houses are spending more time on the market09/30/2015ConsumerAffairsBy Mark Huffman
There's some good news for would-be home buyers. It should be easier to get the house you want at the right price.According to the number-crunchers at ...
There's some good news for would-be home buyers. It should be easier to get the house you want at the right price.
According to the number-crunchers at Realtor.com, prices dipped in September, and homes spent more time on the market, suggesting the trend is favoring buyers over sellers.
“The spring and summer home-buying seasons were especially tough on potential buyers this year with increasing prices and limited supply,” said Jonathan Smoke, chief economist for Realtor.com. “Buyers who are open to a fall or winter purchase should find some relief with lower prices and less competition from other buyers. However, year-over-year comparisons show that fall buyers will have it tougher than last year as the housing market continues to show improvement.”
Timing may work for buyers in another way. Fall and winter are traditionally weak times for the housing market. Sellers who still have their homes listed during this season are usually highly motivated.
There is one downside, however. Inventory has also peaked for 2015, so buyers will see fewer choices through the end of the year. The website's monthly report draws on residential inventory and demand trends over the first three weeks of the month to reach its conclusions.
It notes that the national median list price during the period was $230,000, down 1% over August but up 6% year-over-year.
Homes are sitting on the market longer, usually a good sign for buyers. The median age of inventory is now 80 days, up 6.7% from August, but down 5% year-over-year. Fall listings tend to stay on the market longer as the days become shorter.
But expected tighter inventory will limit choices and might lead to multiple offers in sought-after communities.
Hot markets remain stable
There was little change in Realtor.com's hottest markets. San Francisco, Dallas, and Denver continue to set the pace. The Nashville market jumped from 20th in August to 15th in September. Detroit slipped from 13th to 16th.
“The hottest markets are little changed in September as supply remains tight and demand remains strong,” Smoke said. “Sellers across all these markets continue to see listings move much more quickly than the rest of the country in September, and the seasonal slow-down is not as strong in these markets.”
What jumps out from the September data is that California maintains 11 markets on the “Hotness Index” due to continued tight supply and a turbo-charged economy. With fewer available homes, frustrated buyers who have not been able to find a home so far remain active, supporting continued strength in sales across much of Northern and Southern California.
Texas and Michigan also remain hot, but for different reasons. There, lower prices on homes make them affordable to a wider section of consumers.
September sees 200,000 jobs added, says ADP
Large businesses carried the load this month09/30/2015ConsumerAffairsBy James Limbach
Another good month for job creation. The ADP National Employment Report, which is produced by the payroll procession company in collaboration with Moody'...
Another good month for job creation.
The ADP National Employment Report, which is produced by the payroll procession company in collaboration with Moody's Analytics, reports private sector employment increased by 200,000 jobs from August to September.
The report, derived from ADP's actual payroll data, shows companies with over 1,000 employees added 109,000 jobs, accounting for over half the total jobs added for the month. Payrolls for businesses with 49 or fewer employees increased by 37,000 jobs, while employment among companies with 50-499 employees increased by 56,000 jobs. However, companies with 500-999 employees lost 3,000 jobs.
"The U.S. job machine continues to produce jobs at a strong and consistent pace,” said Mark Zandi, chief economist of Moody's Analytics. “Despite job losses in the energy and manufacturing industries, the economy is creating close to 200,000 jobs per month. At this pace full employment is fast approaching."
Goods and services employment
Employment at goods-producing companies rose by 12,000 jobs in September, down about 3,000 from the previous month. The construction industry added 35,000 jobs -- almost double the 18,000 gained in August. Meanwhile, manufacturing dropped into negative territory losing 15,000 jobs in September, the worst showing since December 2010.
Service-providing employment rose by 188,000 jobs in September, up by 16,000 from August. Professional/business services contributed 29,000 jobs in September, roughly the same as in August. Trade/transportation/utilities grew by 39,000 jobs, while financial activities added 15,000 workers.
"The largest companies appear to be starting to overcome the impacts of weak global demand and the high dollar,” said Ahu Yildirmaz, VP and head of the ADP Research Institute, “while the smallest companies may have pulled back as concerns about the resiliency of the U.S. economy grew and consumer confidence softened."
Mortgage applications take a dive
Contract interest rates were generally lower09/30/2015ConsumerAffairsBy James Limbach
After rising last week for the first time in three weeks, mortgage applications are down again. According to data from the Mortgage Bankers Association’s ...
After rising last week for the first time in three weeks, mortgage applications are down again.
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey, applications fell 6.7% in the week ending September 25.
The Refinance Index plunged 8%, taking the refinance share of mortgage activity down to 58.0% of total applications from 58.4% the previous week.
The adjustable-rate mortgage (ARM) share of activity was unchanged at 6.9% of total applications, the FHA share rose to 13.8% from 12.9% the week before, the VA share of total applications increased to 10.3% from 10.0% and the USDA share of total applications held steady at 0.7%.
Contract interest rates
- The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) edged down one basis point -- to 4.08% from 4.09%, with points unchanged from 0.45 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) fell from 3.99% to 3.96%, with points decreasing to 0.35 from 0.36 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA dipped one basis point to 3.87%, with points rising to 0.34 from 0.33 (including the origination fee) for 80% LTV loans. The effective rate was from last week.
- The average contract interest rate for 15-year FRMs dropped to 3.29% from 3.31%, with points slipping to 0.41 from 0.42 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs was unchanged at 2.95%, with points decreasing to 0.41 from 0.58 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The survey covers over 75% of all U.S. retail residential mortgage applications.
Royal Frozen Food recalls frozen food products
The products have numerous problems including an undeclared allergen and no mark of inspection09/30/2015ConsumerAffairsBy James Limbach
Royal Frozen Food of Los Angeles, Calif., is recalling approximately 230 pounds of frozen beef and pork products. The products were not produced under a f...
Royal Frozen Food of Los Angeles, Calif., is recalling approximately 230 pounds of frozen beef and pork products.
The products were not produced under a fully implemented Hazard Analysis and Critical Control Points (HACCP) plan. Additionally, a portion of these products are missing the USDA mark of inspection and may also contain egg, an undeclared allergen, which was listed on the label.
There have been no confirmed reports of adverse reactions due to consumption of these products.
The the following frozen food items, produced between September 1, 2014, and September 29, 2015, are being recalled:
- 17 oz. plastic tray package bearing code #607238300447 and containing 10 pieces of “PRECOOKED STUFFED GRAPE LEAVES WITH BEEF AND RICE.”
- 20 oz. plastic tray package bearing code #607238300454 and containing 8 pieces of “PRECOOKED STUFFED CABBAGE LEAVES WITH BEEF AND RICE.”
- 12 oz. plastic tray package bearing code #607238300553 and containing 10 pieces of “POT STICKERS.”
Some of the recalled products bear establishment number “Est. 20585” inside the USDA mark of inspection. One (Pot Stickers) does not contain the USDA mark of inspection. These recalled products were shipped to retail locations in California.
Customers who purchased these products should not consume them, but throw them away or return them to the place of purchase.
Consumers with questions about the recall may contact Gloria Cheng at (626) 552-1882.
Thirteen manufacturers, distributors recall bicycles with brake issue
The front wheel may come to a sudden stop or separate from the bicycle09/30/2015ConsumerAffairsBy James Limbach
Thirteen manufacturers and distributors are recalling about 1.55 million bicycles equipped with front disc brakes and quick release levers sold in the U.S....
Thirteen manufacturers and distributors are recalling about 1.55 million bicycles equipped with front disc brakes and quick release levers sold in the U.S., Canada and Mexico.
An open quick release lever on the bicycle’s front wheel hub can come into contact with the front disc brake rotor causing the front wheel to come to a sudden stop or separate from the bicycle, posing a risk of injury to the rider.
There have been three incidents reported in which an open quick release lever on a bicycle’s front wheel hub came into contact with the bike's front disc brake assembly and caused the front wheel to come to a sudden stop or separate from the bicycle. In one incident, a man suffered a broken finger, a wrist injury, a shoulder injury and abrasions. No injuries were reported in the other two incidents.
This recall involves bicycles equipped with front disc brakes and a black or silver quick-release (QR) lever on the front wheel hub. Bicycles that do not have disc brakes are not included. When the front QR is fully opened, if there is less than 6 mm -- or the width of a #2 pencil -- between the QR and disk brake rotor on the wheel, the bicycle is included in this recall.
The recalled bicycles include the following companies, brands and model years:
|Company||Brand||Model Year(s)||Web Page||Phone Number|
|Accell North America||Diamondback, Raleigh||2004-2015||800-251-8435|
|Advanced Sports International||Breezer, Fuji, SE||2005-2015||888-286-6263|
|Cycling Sports Group Inc.||Cannondale, GT||1998-2015||800-245-3872|
|Felt Racing LLC||Felt||2006-2015||www.feltbicycles.com||866-433-5887|
|G. Joannou Cycle Co. Inc.||Jamis||2005-2015||www.jamisbikes.com||800-533-9010, ext. 237|
|Giant Bicycle Inc.||Giant||2003-2004||866-458-2555|
|LTP Sports Group Inc.||Norco||2000-2015||www.norco.com||800-663-8916 (Western U.S. and Canada)|
|Performance Bicycle Inc.||Access||2009-2015||www.performancebike.com||800-727-2453|
|Quality Bicycle Products||Civia Cycles||2008-2012||www.civiacycles.com||877-311-7686|
|Recreational Equipment Inc. (REI)||Novara||2002-2015||www.rei.com||800-426-4840|
|Specialized Bicycle Components Inc.||Specialized||2002-2015||www.specialized.com||800-722-4423|
The bicycles, manufactured in China, Japan, Poland, Switzerland and Taiwan, were sold at Bicycle stores nationwide from about 1998, through 2015, for between $200 and $10,000 for the bicycles.
Consumers should stop using the bicycles immediately and contact the recalling company for free installation of a new quick release on the front wheel.
Consumers may contact the recalling companies through their websites and call centers listed above or visit the Bicycle Product Suppliers Association Quick Release Recall website at www.quickreleaserecall.com, where a video showing how to determine if a bike is included in this recall is available.
Madewell expands recall of women’s sandals
The metal shank can dislodge and break through bottom of the outsole09/30/2015ConsumerAffairsBy James Limbach
Madewell of New York, N.Y., is expanding its earlier recall of women's sandals to include about 573 pair sold in the U.S. and Canada. About 50,600 pair of ...
Madewell of New York, N.Y., is expanding its earlier recall of women's sandals to include about 573 pair sold in the U.S. and Canada. About 50,600 pair of women’s Sightseer sandals were recalled in August 2015.
The metal shank can dislodge and break through bottom of the outsole, posing a fall hazard.
The firm has received one report of a metal shank dislodging and breaking through the bottom of the outsole. No injuries have been reported.
This recall involves all sizes and colors of the Madewell Katya sandal from the spring 2015 collection. The metallic sand or rose gold-colored leather sandals have a wide strap with a lace-up thong. The style number C5840 is located on a sticker on the outsole.
The sandals, manufactured in Brazil, were sold exclusively at Madewell stores nationwide and online at madewell.com from April 2015, through August 2015, for about $100.
Consumers should immediately stop using the recalled shoes and contact Madewell to return them for a full refund.
Consumers may contact Madewell toll-free at 866-544-1937 anytime, by email at email@example.com or online at www.madewell.com and click on Important Notice for more information.
Fiat Chrysler under-reported deaths and injuries, safety regulators say
"Appropriate action" will be taken, NHTSA head warns09/29/2015ConsumerAffairsBy James R. Hood
Fiat Chrysler (FCA US) says it has found "significant" under-reporting of deaths and injuries possibly linked to safety defects in its vehicles."FCA US...
Fiat Chrysler (FCA US) says it has found "significant" under-reporting of deaths and injuries possibly linked to safety defects in its vehicles.
"FCA US takes this issue extremely seriously, and will continue to cooperate with NHTSA to resolve this matter and ensure these issues do not re-occur [sic]," the company said in a terse statement.
The National Highway Traffic Safety Administration (NHTSA) said it had notified FCA of an "apparent discrepancy" in the accident data that all automakers are required to submit on a quarterly basis, Automotive News reported.
FCA said it then began an investigation and found that it had under-reported claims and notices of deaths and injuries.
“This represents a significant failure to meet a manufacturer’s safety responsibilities,” NHTSA Administrator Mark Rosekind said in a statement. “NHTSA will take appropriate action after gathering additional information on the scope and causes of this failure.”
Earlier this year, American Honda was fined $70 million after admitting that it had failed to report more than 1,700 deaths and injuries that could have been linked to defects in its cars.
NHTSA's Early Warning Reporting (EWR) system can be traced back to 2000, following a series of Ford-Firestone tire recalls. It was intended to provide just what its name implies -- an early warning of defects so that they could be corrected before large numbers of consumers were harmed or killed.
A recent audit of the system found major discrepancies and Rosekind has vowed to improve it.
FCA, meanwhile, is currently operating under a consent decree following a NHTSA probe into 23 safety recalls of FCA (previously Chrysler) products since 2009. As part of the consent decree, FCA agreed to hire an independent monitor to audit safety issues. The under-reporting revealed today was apparently a result of that audit.
Endocrine disrupters seen causing diabetes, obesity epidemics
Endocrine Society: Evidence of harm is "more definitive than ever before"09/29/2015ConsumerAffairsBy James R. Hood
Evidence presented at a global meeting of scientists suggests that endocrine-disrupting chemicals -- like bisphenol A and phthalates -- may be to blame for...
Evidence presented at a global meeting of scientists suggests that endocrine-disrupting chemicals -- like bisphenol A and phthalates -- may be to blame for the diabetes and obesity epidemics that are among the gravest public health threats facing the U.S. and other industrialized nations.
The Endocrine Society said in a prepared statement that the chemicals contribute to health problems by mimicking, blocking, and otherwise interfering with the body's natural hormones. By hijacking the body's chemical messengers, the chemicals can alter the way cells develop and grow.
Bisphenol A is commonly found in the lining of food cans and on cash register receipts, while phthalates are used in plastics and cosmetics. Flame retardants and pesticides also contain endocrine disrupting chemicals (EDCs).
"The evidence is more definitive than ever before - EDCs disrupt hormones in a manner that harms human health," said Andrea C. Gore, a professor of pharmacology at the University of Texas at Austin and chair of the task force that developed the statement. "Hundreds of studies are pointing to the same conclusion, whether they are long-term epidemiological studies in humans, basic research in animals and cells, or research into groups of people with known occupational exposure to specific chemicals."
The threat is particularly great when unborn children are exposed to EDCs, the statement indicated. Animal studies found that exposure to even tiny amounts of EDCs during the prenatal period can trigger obesity later in life.
Similarly, animal studies found that some EDCs directly target beta and alpha cells in the pancreas, fat cells, and liver cells. This can lead to insulin resistance and an overabundance of the hormone insulin in the body risk factors for Type 2 diabetes, the statement said.
The chemicals are so common that nearly every person on earth has been exposed to one or more of them, previous studies have found.
The statement was presented at the International Conference on Chemicals Management (ICCM4), in Geneva, Switzerland, on the importance of using scientific approaches to limit health risks of EDC exposure.
The statement also examines evidence linking EDCs to reproductive health problems, hormone-related cancers such as breast and ovarian cancer, prostate conditions, thyroid disorders, and neurodevelopmental issues. Although many of these conditions were linked to EDCs by earlier research, the number of corroborating studies continues to mount.
"It is clear we need to take action to minimize further exposure," Gore said. "With more chemicals being introduced into the marketplace all the time, better safety testing is needed to identify new EDCs and ensure they are kept out of household goods."
Gore’s statement was endorsed by Jean-Pierre Bourguignon, MD, PhD, Professor of Pediatrics at the University of Liège in Belgium.
Volkswagen readies retrofit procedure for 11 million cars
Now if it could only retrofit its reputation and stock market valuation09/29/2015ConsumerAffairsBy James R. Hood
Volkswagen is pulling together plans to recall and retrofit 11 million diesel-powered cars worldwide. At the same time it is trying to retrofit its brand f...
Volkswagen is pulling together plans to recall and retrofit 11 million diesel-powered cars worldwide. At the same time it is trying to retrofit its brand from the damage done by the revelation that it used software to fool emissions testing equipment.
VW's new CEO, Matthias Mueller, said that "in the next few days," the company will begin asking customers to bring their cars in to have the illegal software deactivated, a campaign that some experts say could cost more than $6 billion.
Fewer than half a million of the cars are in the United States but they constitute nearly all of the cars VW sold here under its much-ballyhooed TDI "clean diesel" label.
The company has set up a website for U.S. customers that includes an apologetic statement from Michael Horn, CEO of Volkswagen Group of America.
In his statement, Horn emphasizes that VW and Audi diesel-powered cars are safe and legal to drive.
The company faces a blizzard of class-action lawsuits and pending criminal and civil actions by federal and state authorities in both the U.S. and Germany.
The consumer class-actions mostly reflect owners' concenrs that their cars have lost resale value as a result of the stealth software that turned emission controls on full-blast only when the cars were undergoing periodic emissions tests. The rest of the time, emissions were as much as 40 times the legal limit.
Customers are also worried that, once the retrofit is completed, their cars will not be as peppy and will not achieve the fuel economy that they do now.
Besides the pending fines, penalties, litigation, and lost sales, Volkswagen is being severely punished by stock markets, where falling stock prices have wiped out more than one-third of the company's market capitalization.
Holiday shopping site predicts 2015 deals
BestBlackFriday.com sees deep discounts on TVs and laptops09/29/2015ConsumerAffairsBy Mark Huffman
What's ahead for the holiday shopping season? BestBlackFriday.com, a website property of Jones-Dengler Marketing, is predicting Black Friday will be less o...
What's ahead for the holiday shopping season? BestBlackFriday.com, a website property of Jones-Dengler Marketing, is predicting Black Friday will be less of a one-day, in-store event as shopping spreads to surrounding days and online shopping sites.
For consumers making an early shopping list, the company has compiled data to predict where the bargains will be this year in a wide variety of categories.
“In order to come up with our figures, we went through over 150 ads from last year and thousands of products,” Phillip Dengler, principal at Jones-Dengler Marketing, told ConsumerAffairs.
Shoppers looking for an HDTV should be able to find a 32-inch model for just $70 this year, and a 50-inch model for as little as $175. BestBlackFriday.com predicts the iPad Air 2 will go for $375, a $125 discount. The new iPad Mini 4 is expected to be offered as low as $325.
The Amazon Fire HD 6 will approach stocking-stuffer prices at around $60. The Samsung Galaxy Tabs should start at $90, with an average price of $250.
Ridiculous prices on laptops
Staying with an electronics theme, BestBlackFriday.com predicts ridiculously low prices on laptops. You might be able to pick up a PC under $100, with an average price of $300.
Name brands will be pricier but still attractive. Look for the MacBook Air starting at $769 and the MacBook Pro line starting at $849.
“The Apple Store will once again offer no direct discounts,” Dengler said. “They will, however, bundle gift cards worth $25 to $100 when paying full price.”
Meanwhile, he says sales on Apple items including the watch, iPads, Macs, Apple TV, iPhones, and other devices will be readily available at most stores.
Even though mobile carriers are phasing out subsidies for two-year contracts, Dengler says some people will still be eligible. They could find the new iPhone 6s for $99 with a two-year contract.
Where to find the deals
Where will consumers find the most aggressive deals? The company predicts JCPenney will once again have the highest average discount for their sale at around 60%. Walmart, Best Buy, and Amazon will once again be toward the bottom, with average store discounts of around 30%.
The overall average discount on Black Friday for every store will be around 39.55%, the company predicts. For many, the deals may prove hard to resist.
The website predicts total Black Friday sales of $8.8 billion, declining 3.29% from 2014. But it expects Thanksgiving sales to more than make up for the decline, rising 18.8%.
Meanwhile, more of those shoppers will be purchasing online instead of going to the store. Combined online sales Thanksgiving Day and Black Friday are predicted to surge by 33%.
After that, however, the deals could get even better. Dengler's advice? Do the bulk of your shopping in December.
Consumers go from swiping to dipping their plastic on Thursday
But for most consumers, little else will change with the switch to chip cards09/29/2015ConsumerAffairsBy Mark Huffman
Thursday marks a significant shift for consumers who use plastic to buy things. Then again, it might not.October 1 is the deadline for retail merchants...
Thursday marks a significant shift for consumers who use plastic to buy things. Then again, it might not.
October 1 is the deadline for retail merchants to install and begin using card readers that scan an embedded chip in the card, rather than the data on the magnetic strip on the back. It's called EMV, a security feature to cut down on – if not virtually eliminate – fraud.
But you may have noticed the corner deli and the drug store you frequent are still using the same card readers they always have. And it's possible your credit and debit cards have not been replaced with new ones containing chips.
Don't worry, National Retail Federation Vice President of Retail Technology Tom Litchford says the cards will still work after October 1. All that really changes is liability.
Retailers assume liability
Currently, when a credit card is stolen and used to make a fraudulent purchase, the consumer's liability is limited and the lender takes the loss. After Thursday, if a chip card is used for fraud and the retailer has not installed the updated chip reader, the retail merchant is on the hook. Consumers' liability is still limited.
“Honestly, the biggest, or most notable, change for the consumer is that the 'swipe' goes away,” Litchford said. “With a chip card you now have to 'dip' or insert it into the reader, similar to an ATM, and leave it until instructed to remove it.
And despite the October 1 deadline, the change over will actually take place over a number of months, even years. In the meantime, consumers' old magnetic strip cards will work just fine.
“You’ve probably noticed the chip cards being issued today still have the magnetic stripe on the back,” said Litchford. “Fuel pumps at convenience stores don’t have to be ready until 2017. Even banks’ own ATMs don’t have to be ready this October. It’s probably safe to say the migration process will still be going on for three to five years or more.”
As of October 1, Litchford said he expects about 70% of consumers will have at least one chip card, although only about 40% of total cards will be chip cards. Estimates on merchant readiness range from as low as 40% to as high as 75%, with larger retailers more likely to have made the switch.
Not sold on EMV
EMV is widely used in the rest of the world and is praised as a much more secure card system. But Litchford argues that the technology does not protect credit card numbers from being stolen and counterfeited for fraudulent use.
“If any of the retailers who were breached in recent years had EMV implemented before their breach, how many of the millions of credit card numbers would have been lost?” he asked. “The answer is all of them. EMV chip cards only prevent the cards from being counterfeited. They don’t stop data from being hacked in the first place.”
Litchford predicts that if chip cards reduce in-store credit card fraud, fraudulent activity will shift to online transactions.
Two years in the making, the new Keurig spits out carbonated drinks at home09/29/2015ConsumerAffairsBy James R. Hood
The Keurig has become one of those devices you either love or hate. Some of us are addicted to them even though the coffee isn't quite as good as freshly g...
Carl Icahn the latest to warn of impending economic catastrophe
Billionaire investor says Fed policy has created "dangerous bubbles"09/29/2015ConsumerAffairsBy Mark Huffman
In a video released today, billionaire investor and legendary Wall Street trader Carl Icahn said the Federal Reserve policy of keeping interest rates at 0%...
In a video released today, billionaire investor and legendary Wall Street trader Carl Icahn said the Federal Reserve policy of keeping interest rates at 0% for the last seven years has created “dangerous bubbles” in art, real estate, and high yield bonds.
"It's like giving somebody medicine and this medicine is being given and given and given and we don't know what's going to happen - you don't know how bad it's going to be,” Icahn said in the video. “We do know when we did it a few years ago it caused a catastrophe, it caused '08. Where do you draw the line?"
Icahn is hardly alone in predicting economic collapse. For months, former Rep. Ron Paul (R-TX) has appeared in ads for Stansberry Research, a newsletter publisher, promoting a video in which he warns of an even greater economic crisis in the offing – but this one is also due to the Fed's monetary policy.
The problem with “free money”
Why, exactly, is the extended period of “free” money a bad thing? How does that set the economy up for a catastrophic fall? Back in 2010, less than two years after the zero interest rate policy (ZIRP) went into effect, there were plenty of warnings.
At that time, financial blogger Charles Hugh Smith laid out some of the arguments. With ZIRP, he wrote, savers, investors, and money managers cannot earn any kind of return for having their assets in cash. Therefore, they have to look elsewhere for a return on capital.
That means less money is going into banks, at a time when banks need to replenish their reserves. With rates at zero, even the banks can't earn a return.
Since banks can borrow from the Fed at 0%, many are doing so in order to buy bonds in other countries, where rates are higher. The banks earn a return but it also draws money out of the U.S. economy.
ZIRP also encourages risk-taking. Instead of keeping money in cash, individuals and institutions are putting it in assets that have dramatically risen in value. Icahn specifically mentions art and real estate.
When he worries about real estate, he is obviously not talking about suburban tract houses, but rather palatial homes in red hot markets like New York, San Francisco and San Jose, where the wealthy have bid up the price of condos well past a million dollars.
Money has also flowed into stocks, raising prices beyond what the fundamentals of the underlying companies might justify. In recent weeks, money has been flowing out of stocks and prices are falling.
Five years ago Smith concluded even then that evidence of the Fed's interest rate policy was “perniciously undermining the financial sector and the U.S. economy is increasingly persuasive.”
The Fed is increasingly signaling that it will begin raising rates before the end of the year, but a lot of people like Carl Icahn think it may be too late.
Hackers use big-name events to spread malware on social media sites
Many scammers mask malicious links by making them appear to be about real-life, live events09/29/2015ConsumerAffairsBy Christopher Maynard
Big-name events simply aren’t what they used to be. The growth of media outlets, and the technology that they use, has transformed events that you used to ...
Big-name events simply aren’t what they used to be. The growth of media outlets, and the technology that they use, has transformed events that you used to read about in the paper into live events where everyone is able to watch. It doesn’t stop there, though. The growth of social media outlets like Facebook, Reddit, and Twitter have allowed the average person to participate in events as well through their comments and various status updates.
While this new growth is promising in many ways, there are some worrying problems that are sliding in under the radar. One such problem is the risk to privacy that every social media user is taking when browsing videos and posts about a big event. Researchers say that many cyber criminals are using the high amount of traffic generated by real-world events to post links to websites infected with malware.
Masking infected links
Researchers have found that these real-world events produce an optimal environment for hackers and scammers to do their dirty work. Sites like Twitter seem to be especially vulnerable to these scam jobs due to the layout of their site.
“URLs are always shortened on Twitter due to character limitations in posts, so it’s incredibly difficult to know which are legitimate. Once infected the malware can turn your computer into a zombie computer and become part of a global network of machines used to hide information or route further attacks,” said Dr. Pete Burnap, Director of the Social Data Science Lab at Cardiff University.
Dr. Burnap goes on to explain that many scammers mask infected links by making them appear to be associated with the event that is being covered. Many unsuspecting victims believe that they’re looking up more information about the event, but instead become infected.
In order to counteract this dangerous trend, Burnap and his colleagues have developed an intelligent system that is designed to check shortened URLs, such as the ones popular on Twitter, and see if they are dangerous. Their recent study found that the system was able to identify potential cyber-attacks within a five-second window with up to 83% accuracy. If given up to 30 seconds, the system was able to identify malicious links with up to 98% accuracy.
“We are trying to build systems that can help law enforcement authorities make decisions in a changing Cyber Security landscape. Social media adds a whole new dimension to network security risk. This work contributes to new insight into this and we hope to take this forward and develop a real-time system that can protect users as they search for information about real-world events using new forms of information sources,” said Professor Omer Rana, Principal investigator for the study.
The research team hopes to stress-test their system for the upcoming European Football Championships next summer, which will see a high increase in Twitter traffic. The team’s paper was recently presented at the 2015 IEEE/ACM International Conference on Advances in Social Networks Analysis and Mining, which took place in August.
Like delivering packages? Amazon has a deal for you
Amazon Flex is an Uber-like package delivery service -- minus those annoying passengers09/29/2015ConsumerAffairsBy Truman Lewis
So maybe you'd like to get paid for driving around, but you can't stand making small talk, which sort of rules out driving for Uber or Lyft. Ah, but now Am...
So maybe you'd like to get paid for driving around, but you can't stand making small talk, which sort of rules out driving for Uber or Lyft. Ah, but now Amazon will pay you to drive around and deliver packages.
The Uber-style package delivery service is called Amazon Flex, and it launched today in Seattle, with plans to roll out shortly in New York, Chicago, and other large cities.
Drivers will be paid $18 to $25 an hour to deliver packages ordered up through Amazon Prime Now, the company's one-hour delivery service. Shifts are two, four, or eight hours.
You'll need the usual -- a car, a smartphone (Android, not iPhone) and a clean criminal record.
Amazon says drivers can work as much or as little as they like. It's not clear from Amazon's announcement whether the pay is hourly or per piece, a detail you might want to be sure you understand before diving in.
Some former Uber and Lyft drivers have become disenchanted and filed suit, claiming they should actually be classified as employees rather than independent contractors.
To avoid disappointment, freelancers looking for "gigs" need to think of themselves as businesspeople. While it's true that you'll be responsible for gas, car maintenance, insurance, etc., remember that these are deductible business expenses. You may also be able to take a depreciation deduction for your car. Talk to an accountant to work out a strategy.
Incorporating as an LLC is also a good idea. It provides important liability protection and is very inexpensive.
Iowa sues New York psychic
Attorney general claims she preyed on vulnerable seniors09/29/2015ConsumerAffairsBy Mark Huffman
Many people might see an ad for a psychic and laugh it off. Iowa Attorney General Tom Miller is not one of those people.When his office recently receiv...
Many people might see an ad for a psychic and laugh it off. Iowa Attorney General Tom Miller is not one of those people.
When his office recently received a marketing letter, forwarded by a concerned citizen, that extolled the powers of a New York-based psychic, Miller sued the psychic and the marketing company promoting her services.
Miller said his office has secured a temporary injunction against Direct Response Advertising Inc., of New York, its owners, David Vogel and Michael Geisinger, and Lee Moorhead, the purported “psychic and mystic” featured in the mailings.
The court's action prevents misleading mail solicitations to Iowans and forbids the defendants from sharing customer lists containing the names of Iowans with other marketers while the lawsuit is pending.
“We looked into this operation and filed a lawsuit alleging that the defendants misled and cheated Iowans, particularly older Iowans,” Miller said. “Our lawsuit seeks to stop these operators permanently in Iowa, and return money to Iowa victims.”
Highly personalized letters
According to Miller, the letters from the psychic were highly personalized and expressed her “deep personal interest” in the recipient – typically an Iowan over seventy years old. Miller said the letters promised to use Moorhead’s supposed powers to deliver wealth, health, and other tangible benefits, all for a modest fee.
“Any vulnerable Iowan who responded by sending a check would be set up for more financial losses,” Miller said. “Not only would Direct Response follow up with other deceptive appeals for money, but it would sell the Iowan’s name to other marketers who might have similar bad intentions.”
The defendants' over-the-top appeal also contained the disclaimer that it was “for entertainment purposes only,” but according to Miller those words appear in almost unreadable tiny print at the bottom of a page.
“While many of us would dismiss such claims out of hand, there are vulnerable Iowans, many of them elderly, who can be exploited in this way,” Miller added. “We are sending the message to those targeting older Iowans that we’re watching and it’s just not worth the risk.”
Miller said he is particularly concerned that the solicitation letters instructed the recipient not to tell anyone about the psychic's special attention. By urging secrecy, he said the mailings tried to cut the victims off from family or friends who might otherwise help them see through the deception.
Feds slap Fifth Third Bank for auto lending, credit card practices
CFPB charges the bank used discriminatory auto loan pricing and deceptive credit card marketing09/29/2015ConsumerAffairsBy Truman Lewis
It was two-thirds of a bad day for Fifth Third Bank as the Consumer Financial Protection Bureau (CFPB) announced two separate actions against the company -...
It was two-thirds of a bad day for Fifth Third Bank as the Consumer Financial Protection Bureau (CFPB) announced two separate actions against the company -- one for discriminatory auto loan pricing and another for illegal credit card practices.
The auto-lending enforcement action requires Fifth Third to change its pricing and compensation system to minimize the risks of discrimination, and to pay $18 million to harmed African-American and Hispanic borrowers.
The CFPB’s action against Fifth Third’s deceptive marketing of credit card add-on products requires the bank to provide an estimated $3 million in relief to eligible harmed consumers and pay a $500,000 penalty.
“We are committed to promoting fair and equal access to credit in the auto finance marketplace,” said CFPB Director Richard Cordray. “Fifth Third’s move to a new pricing and compensation system represents a significant step toward protecting consumers from discrimination. We are also obtaining millions of dollars in relief today for consumers affected by deceptive marketing of credit add-on products.”
Fifth Third is what is known as an "indirect" auto lender, meaning that it is not a "captive" auto lender like Volkswagen Credit or Toyota Finance.
Dealers often prefer to place loans through indirect lenders, like banks, instead of through their captive lenders, primarily because they are able to mark up the interest rate. In Fifth Third's case, the CFPB said it marked up consumers' interest rates by as much as 2.5 percent.
Auto loans are the third-largest source of outstanding household debt in the United States, after mortgages and student loans, so an increase of that size can make a big difference in a family's budget.
Investigators said they found that Fifth Third's practices resulted in minority borrowers paying higher dealer markups, without regard to the credit-worthiness of the borrowers.
Under the proposed order entered in U.S. District Court, Fifth Third must allow dealers to mark up the interest rate by only 1-1.25%.
Fifth Third will pay $12 million into a settlement fund that will go to harmed African-American and Hispanic borrowers whose auto loans were financed by Fifth Third between January 2010 and September 2015. They will hire a settlement administrator to distribute funds to victims.
“We commend Fifth Third for its commitment to treating all of its customers fairly without regard to race or national origin and its leadership in agreeing to impose lower caps on discretionary markups,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This agreement shows that the indirect auto lending industry is moving toward a model of dealer compensation that fairly compensates dealers for their work related to loans, while limiting the dealer markup that leads to discriminatory pricing.”
Consumer confidence ticks higher in September
Still, there's an air of caution about the months ahead09/29/2015ConsumerAffairsBy James Limbach
After posting a substantial gain last month, The Conference Board's Consumer Confidence Index moved moderately higher in September and now stands at 103.0....
After posting a substantial gain last month, The Conference Board's Consumer Confidence Index moved moderately higher in September and now stands at 103.0.
The Present Situation Index jumped from 115.8 to 121.1 this month, while the Expectations Index edged down to 91.0 from 91.6 in August.
“Consumers’ more positive assessment of current conditions fueled this month’s increase,” said Lynn Franco, director of economic indicators at The Conference Board, “and drove the Present Situation Index to an 8-year high. Consumers’ expectations for the short-term outlook, however, remained relatively flat, although there was a modest improvement in income expectations. Thus, while consumers view current economic conditions more favorably, they do not foresee growth accelerating in the months ahead.”
The consumers' eye view
Consumers’ appraisal of current conditions was more positive in September. Those who say business conditions are “good” increased from 23.7% to 28%, while those who see them as “bad” dipped from 17.8% to 16.7%.
The view of the job market was mixed. Those who think jobs are “plentiful” rose from 22.1% to 25.1%. At the same time, those who believe jobs are “hard to get” also rose from 21.7% to 24.3%.
Optimism about the short-term outlook was little changed. The percentage of consumers expecting business conditions to improve over the next six months increased from 16.6% to 17.9%, but those expecting business conditions to worsen also increased -- from 9.1% to 10.3%.
The outlook for the labor market was mixed. Those who think there will be more jobs in the months ahead was virtually unchanged at 15.0%, while those anticipating fewer jobs rose from 14.5% to 15.8%.
The proportion of consumers expecting their incomes to rise improved from 16.2% to 19.1%, while the proportion expecting a decline inched up from 9.8% to 10.1%.
The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was September 17.
Home prices continue their gains into July
Values were up on both a year-over-year and month-over-month basis09/29/2015ConsumerAffairsBy James Limbach
Home prices across the country were higher in July on both a year-over-year and month-over-month basis, according to the S&P/Case-Shiller Home Price Indice...
Home prices across the country were higher in July on both a year-over-year and month-over-month basis, according to the S&P/Case-Shiller Home Price Indices.
The leading measure of U.S. home prices, covering all nine U.S. census divisions, posted a year-over-year gain of 4.7% in July, versus a 4.5% increase in June. The 10-City Composite was virtually unchanged, rising 4.5% year-over-year, while the 20-City Composite was up 5.0%.
“Prices of existing homes and housing overall are seeing strong growth and contributing to recent solid growth for the economy,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The S&P/Case Shiller National Home Price Index has risen at a 4% or higher annual rate since September 2012, well ahead of inflation.”
West leads the advance
San Francisco, Denver, and Dallas reported the highest year-over-year gains among the 20 cities with price increases of 10.4%, 10.3%, and 8.7%, respectively. Fourteen cities reported greater price increases in the year ending July 2015 over the year ending June 2015. San Francisco and Denver are the only cities with a double digit increase, while Phoenix had the longest streak of year-over-year increases, reporting an increase of 4.6% in July -- the eighth consecutive year-over-year increase. Boston posted a 4.3% annual increase, versus 3.2% in June for the biggest jump in year-over-year gains in July.
Before seasonal adjustment, the National Index posted a gain of 0.7% month-over-month in July, with the 10-City Composite and 20-City Composite both rising 0.6%. After seasonal adjustment, the National index posted a gain of 0.4%, while the 10-City and 20-City Composites were both down 0.2%. All 20 cities reported increases in July before seasonal adjustment; after seasonal adjustment, ten were down, nine were up, and one was unchanged.
The three cities with the largest cumulative price increases since January 2000 are all in California: Los Angeles (138%), San Francisco (116%), and San Diego (115%). The two smallest gains since January 2000 are Detroit (3%) and Cleveland (10%). The Sunbelt cities -- Miami, Tampa, Phoenix, and Las Vegas, which were the poster children of the housing boom, have yet to make new all-time highs.
TF Supplements recalls RHINO 7 dietary supplement for sexual enhancement
The product contains desmethyl carbondenafil and dapoxetine, which are not listed on the label09/29/2015ConsumerAffairsBy James Limbach
TF Supplements of Houston, Texas, is recalling RHINO 7 dietary supplement. The product contains desmethyl, carbondenafil and dapoxetine, which are not lis...
TF Supplements of Houston, Texas, is recalling RHINO 7 dietary supplement.
The product contains desmethyl, carbondenafil and dapoxetine, which are not listed on the label.
Desmethyl carbondenafil is a phosphodiesterase PDE-5 inhibitor which is a class of drugs used to treat male erectile dysfunction, making this product an unapproved new drug. Dapoxetine is an active ingredient not approved by the U.S. Food and Drug Administration (FDA).
The company says it has received no reports of illness associated with this product to date
RHINO 7, marketed as a dietary supplement for sexual enhancement, is packaged in a bottle containing six (6) capsules WITH LOT# K824B719-P and in a single (1) count capsule hang card with LOT# SU-5102617*RP at the consumer level. Lot numbers are on the back top right of the (1) count and on the side of the (6) count bottle.
TF Supplements is notifying its customers of this recall by email.
Customers who purchased the recalled product should stop using it immediately and return it to:
6666 Gulf Freeway
Houston TX 77087
Honda recalls model year 2015 Fit vehicles
The wires inside the Plug Top Ignition Coils may suffer damage09/29/2015ConsumerAffairsBy James Limbach
American Honda Motor Co. is recalling 17,796 model year 2015 Fit vehicles manufactured December 6, 2013, to August 28, 2014. The recalled vehicles may e...
American Honda Motor Co. is recalling 17,796 model year 2015 Fit vehicles manufactured December 6, 2013, to August 28, 2014.
The recalled vehicles may experience damage to the wires inside the Plug Top Ignition Coils (PTC) due to improper protection against electrical noise.
If the wires become damaged, the coil may overheat and cause the engine to stall, increasing the risk of a crash.
Honda will notify owners, and dealers will replace the PTC with new design, free of charge. The recall is expected to begin October 6, 2015.
Owners may contact Honda Automobile Customer Service at 1-888-234-2138. Honda's number for this recall is JT9.
OC Raw Dog recalls raw frozen dog food products
The product may be contaminated with Salmonella09/29/2015ConsumerAffairsBy James Limbach
OC Raw Dog of Rancho Santa Margarita, Calif., is recalling 640 lbs. of Chicken, Fish & Produce Raw Frozen Canine Formulation. The product may be contamin...
OC Raw Dog of Rancho Santa Margarita, Calif., is recalling 640 lbs. of Chicken, Fish & Produce Raw Frozen Canine Formulation.
The product may be contaminated with Salmonella.
No illnesses have been reported.
This recall is limited to Chicken, Fish & Produce Raw Frozen Canine Formulations that were packaged into 6.5-lb. Doggie Dozen Patties, 4-lb. Doggie Sliders, and 3-lb. Meaty Rox with the lot number 1819, and use by date of 05/05/16. The codes are on the bottom left corner of the back of the package.
The recalled product was sold to customers through independent pet specialty retailers in Colorado, Vermont and Pennsylvania.
Customer who purchased the recalled product should submit a picture of the package with the lot number to Olivia@ocrawdog.com for verification, and either dispose of the product immediately or return it to the place of purchase it for a replacement product.
Consumers with questions may contact the company at 1-844-215-DOGS (3647) Monday thru Friday 9am - 4pm (PST).
Other diesel carmakers worry about VW fallout
BMW Group assures consumers its diesel cars have low emissions without cheating09/28/2015ConsumerAffairsBy Mark Huffman
What will be the impact on car buyers of the Volkswagen diesel emissions scandal? Will it dampen new car sales?Most industry experts say it shouldn't. ...
What will be the impact on car buyers of the Volkswagen diesel emissions scandal? Will it dampen new car sales?
Most industry experts say it shouldn't. Edmunds.com says the scandal appears to have had very little impact on consumer confidence in the overall industry, even as it proves to be a self-inflicted wound for the German automaker.
"Volkswagen's deception is dominating headlines, but it is not keeping shoppers away from other brands' showrooms," said Edmunds.com Director of Industry Analysis Jessica Caldwell. "It puts the crisis in a little bit of perspective, since these Volkswagen diesels don't constitute a very big share of sales. It's also a reminder that buyers won't disappear from the market just because they suddenly can't or don't want to buy these affected cars. They're willing to turn to other automakers that will meet their needs."
BMW may stand to benefit from Volkswagen's woes, and the fellow German automaker is taking great pains to assure consumers that its clean diesel vehicles don't cheat. BMW said it has “clear, binding specifications and processes” in place through all phases of development at the BMW Group in order to avoid wrongdoing.
In a news release, the car maker said the International Council on Clean Transportation (ICCT) carried out two studies that confirmed the BMW X5 and 13 other BMW vehicles tested comply with the legal requirements concerning NOx emissions. No discrepancies were found in the X5 between laboratory-test and field-test NOx emissions, the company said.
BMW Group also said it is willing to discuss its testing procedures with the relevant authorities in the U.S. and other countries and would make any of its vehicles available for testing at any time.
The company said progress in meeting emissions goals has largely been accomplished with diesel technology and it is not backing away from diesel propulsion systems because of VW's problems. In fact, the company said meeting future requirements won't happen without diesel drive trains.
According to BMW, a diesel engine emits roughly 15% to 20% less CO2 on average than a comparable gasoline engine.
Refining and optimizing
“At the BMW Group, we have invested a great deal in recent years in refining and optimizing diesel technology,” the company said in a statement.
BMW has a lot riding on how consumers ultimately react since it is heavily invested,in diesel models, as are many other automakers. Diesel vehicles accounted for 38% of vehicles sold worldwide last year – mostly in Europe. Diesel is less of a factor in the U.S. since diesel-powered vehicles accounted for only 6% of total sales.
The U.S. Environmental Protection Agency (EPA) said last week that it is revising its emissions testing procedures to make it more difficult for a car maker to cheat. BMW said it supports efforts to bridge the gap between test results and real-life fuel consumption and emissions.
Payday lenders sue FDIC, saying it "stigmatized" them
Federal agencies put pressure on banks to cut off payday lenders, suit charges09/28/2015ConsumerAffairsBy James R. Hood
The federal government has gone to war against payday lenders in recent years, and now the payday lenders are fighting back in court. A trade association,...
The federal government has gone to war against payday lenders in recent years, and now the payday lenders are fighting back in court. A trade association, the Community Financial Services Association of America, and Advance America, a large payday lender, have sued the Federal Deposit Insurance Corporation (FDIC), saying it pressured banks into breaking ties with the payday lenders.
Payday lenders, after all, are just like everyone else in one sense -- they need banks to finance their activities. They borrow money at preferred rates from large banks and then lend it at high rates to individuals who have a bad or non-existent credit score.
The payday lenders say they are performing a valuable service and that cash-short consumers would have nowhere else to go if payday lenders went away. But federal consumer protection agencies contend that payday lenders take advantage of consumers by charging exorbitant interest rates that make it almost impossible for consumers to get out of debt.
Allegedly seeking to throttle the lenders, the U.S. Justice Department organized a campaign called “Operation Choke Point” and enlisted the FDIC to put pressure on banks to stop doing business with the payday lenders, the suit filed in U.S. District Court in Washington charges. As a result, Advance America says it was left to look for new banking partners on short notice, hampering its business operations.
The FDIC allegedly told banks that they were incurring a “reputation risk” by financing payday lenders, which the payday lenders say violated their rights to due process since there had been no finding that they had violated any laws.
U.S. District Judge Gladys Kessler, in a 48-page decision, said the payday lenders had clearly shown that they had suffered an injury as a result of Operation Choke Point, allowing the lenders’ suit to move forward.
One-week fantasy sports walks a fine line as its popularity explodes
Why regulators and sports leagues don't consider it illegal gambling09/28/2015ConsumerAffairsBy Mark Huffman
If you watched any NFL games over the weekend – or any television for that matter – you no doubt were bombarded with commercials for the two major one-week...
If you watched any NFL games over the weekend – or any television for that matter – you no doubt were bombarded with commercials for the two major one-week fantasy sports enterprises, DraftKings and FanDuel.
Fantasy sports – particularly fantasy football – has been around for years. One-week fantasy sports is a relatively new phenomenon and has enjoyed explosive growth. Instead of picking your fantasy team for an entire season and getting a small cash prize at the end if you win, DraftKings and FanDuel allow players to choose different teams each week, earning sometimes significant cash prizes if their teams compile the most points. Players may play one week or every week.
Wait a minute, I know what you're probably thinking. Isn't this illegal gambling?
It might seem like it, but, so far, no one who enforces laws thinks so. The difference between betting $50 on the Cincinnati Bengals to cover the spread against the Oakland Raiders and putting up $50 to play your fantasy team is that fantasy football is considered a game of skill, not chance.
According to FanDuel, as long as your are at least 18 years old and live in either the U.S. or Canada, you can legally pick your teams and place your bets. Pete Rose may have been banned from Major League Baseball for betting on baseball games, but for other sports leagues, whether professional athletes should be allowed to play one week fantasy games remains a murky subject.
The leagues, meanwhile, are all in, as are sports media.
“We've even partnered up with companies like NBC, Sports Illustrated, Comcast, Sporting News, and plenty of others,” FanDuel says on its website.
How to play
Instead of picking a particular team to beat another team, fantasy players assemble a “team” of actual players, winning points for how well those athletes perform in a particular game. In the case of football, participants “draft” a quarterback, two running backs, three wide receivers, a tight end, a kicker, and a team defense.
There is a fairly complicated formula that assigns points based on how each player performs in a game. For example, if Tom Brady was your quarterback Sunday, you would have done quite well, earning eight points for Brady's two TD passes and 14.32 points for his 358 passing yards and no interceptions.
Highest points win
Each position has a similar formula to produce points. The highest point total in the league – the players in a particular group – wins the money put up by the rest of the participants, with FanDuel or DraftKings taking a small cut.
To prevent participants from “drafting” the best players at every position, professional players are assigned a contract value, with the best-performing players having the highest values. Fantasy players have a budget, or salary cap, of $60,000 to assemble a team. If you want to draft Tom Brady at quarterback, you'll probably have to choose a lesser known, or sleeper player at one or two of the other positions to stay under the cap.
If it all sounds like a male sports geek obsession, it isn't. Leger, The Research Intelligence Group, estimates nearly one-quarter of this year's NFL Fantasy Football players are women, a steady climb over the past few years.
"We're seeing a small, steady trend showing the rate that women are playing Fantasy Football is growing faster than that among Fantasy Football players in general," said Lance Henik, Senior Account Manager at Leger. "According to the Fantasy Sports Trade association, approximately 20% of all fantasy players in 2011/2012 season were women. The results from our 2013 poll showed 23% of Fantasy Football players were women, with our latest poll results currently showing that 25% of them are women."
As the 2015 NFL season kicked off earlier this month, both DraftKings and FanDuel saturated the airwaves, competing for even more participants. According to iSpot.TV, Draft Kings spent $81 million in ads between August 1 and mid September, more than the traditional sponsors of NFL games, beer companies, carmakers, and athletic shoe companies.
Season-long fantasy football leagues are mostly played for fun, a way for sports fans to enjoy the season. As the commercials make clear, one week leagues are all about the money – and there's a lot of it. In its TV commercials over the weekend, DraftKings boasted it would pay out more than $1 billion for the season.
It can cost as little as $1 to field a team for the week, but the potential payout for that amount is very small. Players who pay more can potentially earn more – but can lose more as well.
Evidence suggests Millennials interested in buying homes
When opportunity presents itself, young people appear interested in ownership09/28/2015ConsumerAffairsBy Mark Huffman
As first-time home buyers have entered the housing market in 2015, a sizable portion of these new buyers was made up of Millennials. It was something of a ...
As first-time home buyers have entered the housing market in 2015, a sizable portion of these new buyers was made up of Millennials. It was something of a surprise since this generation had been pigeon-holed as renters.
Having come of age precisely at the time the housing market collapsed, it was thought many young people were leery of taking out mortgages and making long-term commitments to pieces of real estate.
There may have been some truth to that but another explanation for the absence of Millennials buying homes is the recent sorry state of the job market and the difficulty in obtaining a mortgage.
The movement of first-time buyers into the housing market coincided with continued improvement in the employment picture. As things began to get back to normal, young people did what previous generations have done – purchase homes.
According to the real estate website Realtor.com, interest can't be measured solely by foot traffic. It reports nearly 65% of Millennials aged 21 to 34 looked at real estate websites and apps in August. That conclusion is based on an analysis of data from comScore and current population estimates.
The company said 25-34 year olds were 70% more likely than the average adult to be currently looking for a home to buy on its website. In recent months new home sales have drawn the most interest.
“While it is difficult to estimate the effect of Millennial buyers in the new home market, one can infer that since prices over the year have trended towards the more affordable, that some of the growth in the new homes market is a result of builders providing more affordable supply,” said Realtor.com Chief Economist Jonathan Smoke.
The National Association of Realtors (NAR) has traced the increase in first-time buyers in 2015, crediting them with keeping the market moving forward. NAR says first-time buyers counted for 32% of August's sales, rising from 28% in July.
68% of first-time buyers
In fact, Smoke estimates that half of all home sales activity for the first half of the year can be attributed to first-time buyers. According to NAR's 2015 Home Buyer and Seller Generational Trends report, Millennial comprise 68% of all first-time buyers.
This is an important piece of data, Smoke believes, because the people who have increased the demand for rental inventory – making it a lot more expensive in the process – are increasingly trading rent payments for mortgages.
“People who believe that Millennials are disinterested in home ownership are grossly mistaken,” said Smoke. “This generation hit the job market during one of the largest recessions of all time and they’ve had to work hard to establish credit and save for a down payment. With the older segment just beginning to enjoy the life events that drive home ownership – marriage and children – now is the most appropriate time for them to consider home ownership, and that’s what we’re seeing.”
The company claimed its contracts barred customers from speaking their minds09/28/2015ConsumerAffairsBy Truman Lewis
A purveyor of supposed weight-loss products -- Roca Labs -- routinely threatens to sue consumers who complain about its products, the Federal Trade Commiss...
Audi admits "dirty diesel" involvement, pledges to fix cars
The company says 2.1 million cars are affected, only a handful in the U.S.09/28/2015ConsumerAffairsBy James R. Hood
A 2016 Audi S6 (Audi photo)The Volkswagen "dirty diesel" scandal is starting to have overtones of Watergate. Every few days we're brought fresh news ...
The Volkswagen "dirty diesel" scandal is starting to have overtones of Watergate. Every few days we're brought fresh news of yet another transgression, cover-up, or evasion.
The latest affects Audi, VW's upscale brand sometimes referred to as Volkswagen's Lexus. Audi today said that 2.1 million of its diesel-powered cars are equipped with the same stealth software as its downmarket VW brethren.
"We are working at full speed to find a technical solution," said Audi spokesman Juergen de Graeve, Bloomberg Business reported. "Once we have that solution, we will write to customers and we will upgrade the cars so that they are within emissions regulations.
Audi said the 2.1 million cars included the popular A4 sedan and Q5 SUV. Only 13,000 of the cars were sold in the U.S.
Ousted VW CEO Martin Winterkorn made much of his strategy of using interchangeable parts in the company's many brands, which include VW, Audi, Porsche, Seat, and Skoda.
Some analysts had questioned that strategy, saying it could spell disaster for the company if it had to recall a component common in many millions of cars. It is, of course, exactly that situation that VW now faces. It needs to replace or retool software in 11 million cars -- more than it sells in a year. About 5 million are VW brand cars, including Golfs, Passats, and Tiguans, according to Automotive News.
Winterkorn, meanwhile, is the subject of a criminal probe opened by prosecutors in Germany. Investigators are trying to determine who is responsible for scheming to circumvent emissions regulations.
But while trying to pin blame on someone, the German government is also “working hard to contain the damage,” according to Peter Altmaier, chief of staff to Chancellor Angela Merkel. He said in an interview with Bloomberg Television in Berlin that the government is keen to ensure that the reputation of German cars in general is “not damaged.”
Community colleges probe rising student loan default rates
Study finds students borrowing the least default the most09/28/2015ConsumerAffairsBy Mark Huffman
Community colleges are almost all state-supported and have always cost significantly less than four-year colleges.So it was something of a surprise a c...
Community colleges are almost all state-supported and have always cost significantly less than four-year colleges.
So it was something of a surprise a couple of weeks ago when the Brookings Institution lumped community colleges in with for-profit schools as institutions where student loan recipients were most likely to default on their loans.
Admittedly, the much larger risk is for students at expensive for-profit schools, but the report's authors note, with some concern, that community college students taking out loans – and then defaulting – is a relatively new development.
The Association of Community College Trustees (ACCT) has dug deeper into community college student borrowing and repayment behavior. It has compiled a report using data from all 16 community colleges in Iowa to examine who borrows and who defaults.
Persistence and completion
"Our institutions are more focused on persistence and completion now than ever before," said ACCT President and CEO Noah Brown. "This report emphasizes just how important those factors are to post-enrollment success."
In their report, the Brookings researchers appeared to suggest that students attending non-selective schools – for-profit and community colleges have open enrollment, accepting all who apply – were most at risk of defaulting on loans. The ACCT report suggests it might be more complicated than that.
The report found that students who borrow the least amount of money, not the most, are more at risk of default. Many defaulting students take no action on their loans, suggesting the complexity of the repayment system and lack of information may be a contributing factor.
"For borrowers with less than $5,000 in debt, there are almost as many borrowers in default as those who are actively repaying their loan debt," said Jee Hang Lee, ACCT's vice president for public policy and external relations. "The solutions that we have for struggling borrowers, like public service loan forgiveness and income-based repayment, are geared toward middle-income earners with high debts. We need a policy solution for the students who borrow a little but still struggle to make the minimum monthly payment."
Who borrows and who doesn't
The more successful community college students don't borrow money; students who do so are more likely to drop out. Those who default on their loans are even more likely to not finish school with a credential.
Finally, community colleges have no easy way to share data that could help institutions address student loan defaults and better manage them.
"As institutional policymakers, Iowa's Community College Trustees recognize the value of using data to drive our decision-making process," said Cheryl Langston, Des Moines Area Community College trustee and Iowa Association of Community College Trustees board chair. "This report demonstrates how community colleges can be more reflective and forward-looking by understanding where we are doing a good job and where we need to improve to help our students be as successful as possible."
The report includes policy reform recommendations for colleges, as well as for Congress to incorporate into the Higher Education Act's reauthorization.
Feds report 17.6 million identity theft victims in 2014
Most incidents involved stolen credit cards09/28/2015ConsumerAffairsBy Mark Huffman
The government's latest accounting of identity theft shows the problem for consumers remains much as it was in 2012, the last time the government compiled...
The government's latest accounting of identity theft shows the problem for consumers remains much as it was in 2012, the last time the government compiled the results.
According to the U.S. Justice Department, about 7% of the U.S. adult population – some 17.6 million people – suffered some type of identity theft last year. But there was a wide variation in the severity of the impact.
The Justice Department includes the unauthorized use of a credit card, in which the consumer's liability is limited, on its list of identity theft crimes, along with the more serious stealing of a consumer's personal information to open credit lines or clean out a bank account.
In fact, most victims suffered the least serious type of identity theft in 2014, the unauthorized misuse or attempted misuse of an existing account. Some 16.4 million people – the overwhelming majority of identity theft victims – had that experience.
More than one attack
Of course, some victims may have experienced multiple types of identity theft. An estimated 8.6 million consumer experienced the fraudulent use of a credit card, 8.1 million experienced the unauthorized or attempted use of existing bank accounts, and 1.5 million victims experienced other types of existing account theft, such as misuse or attempted misuse of an existing telephone, online, or insurance account.
When a thief steals a Social Security number and other information to open bogus credit accounts, a victim can spend months trying to straighten out the mess and clear his or her name. The government report shows 52% of last year's identity theft victims were able to resolve any problems in a day or less, suggesting those incidents were not among the most serious.
About 14% of identity theft victims experienced an out-of-pocket loss of $1 or more. Of those, about half suffered losses of $99 or less and 14% lost $1,000 or more.
A helpful heads-up
The report also suggests financial institutions are doing a better job of monitoring customers' accounts. About 45% of victims said they were alerted to suspicious activity on their accounts by a financial institution.
The report also contains some good news and bad news. The good news is 85% of people surveyed took action in 2014 to prevent identity theft, such as checking credit reports, shredding documents with personal information, and changing passwords on financial accounts.
The bad news? The number of identity theft victims who were 65 or older increased to 2.6 million in 2014, up from 2.1 million in 2012. Seniors are especially vulnerable to scams, and the report suggests the need for family members to help older relatives keep their financial information safe.
Another increase in personal incomes and spending
But consumers weren't tucking away as much for emergencies09/28/2015ConsumerAffairsBy James Limbach
Personal incomes rose in August, building on July's increase, as did personal consumption expenditures (PCE) or consumer spending. According to the Bureau...
Personal incomes rose in August, building on July's increase, as did personal consumption expenditures (PCE) or consumer spending.
According to the Bureau of Economic Analysis, income was up 0.3%, or $52.5 billion, and disposable personal income (DPI) -- also known as after-tax income -- increased $47.1 billion, or 0.4%. PCE was up $54.9 billion, or 0.4%.
The increase in wages and salaries weakened in August, rising just $35.6 billion, compared with an advance of $43.8 billion the month before. Private wages and salaries were up $31.5 billion, while government wages and salaries rose $4.1 billion.
Personal outlays and personal saving
PCE, personal interest payments and personal current transfer payments increased $55.2 billion in August, after rising $46.0 billion in July.
Personal saving -- DPI less personal outlays -- was $615.6 billion in August, compared with $623.6 billion in July. The personal saving rate -- personal saving as a percentage of disposable personal income – was 4.6% versus 4.7% a month earlier.
The complete report may be found on the Commerce Department website.
An August drop in pending home sales
Three out of four geographic regions posted declines09/28/2015ConsumerAffairsBy James Limbach
Pending home sales decline in August but, according to the National Association of Realtors (NAR), remained at a healthy level of activity. The NAE says i...
Pending home sales declined in August but, according to the National Association of Realtors (NAR), remained at a healthy level of activity.
The NAE says its Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, was down 1.4% last month to 109.4. Even with that decline though, the PHSI is up 6.1% from August 2014 and has risen year–over–year for 12 consecutive months.
Despite the modest decline in contract signings, demand continues to outpace housing supply and elevate price growth in numerous markets. "Pending sales have leveled off since mid-summer, with buyers being bounded by rising prices and few available and affordable properties within their budget," said Lawrence Yun, NAR chief economist. "Even with existing-housing supply barely budging all summer and no relief coming from new construction, contract activity is still higher than earlier this year and a year ago."
Yun believes sales in the coming months should be able to roughly maintain their current pace. However, he warns that there are looming speed bumps.
"The possibility of a government shutdown and any ongoing instability in the equity markets could cause some households to put off buying for the time being," he said, adding, "Furthermore, adapting to the changes being implemented next month in the mortgage closing process could delay some sales."
The national median existing–home price is expected to increase 5.8% in 2015 to $220,300, the median being the point at which prices for half the homes are higher and half are lower. Yun forecasts total existing-home sales this year to increase 7.0% to around 5.28 million -- 25% below the peak set in 2005 (7.08 million).
- The PHSI in the Northeast fell 5.6% to 93.3 in August, but is still 8.9% above a year ago.
- In the Midwest the index inched down 0.4% to 107.4%, and is 6.5% above August 2014.
- Pending home sales in the South dipped 2.2% to 121.5, but are still 4.1% above last August.
- The bright spot was in the west where the PHSI rose 1.8% 104.9, and is now 7.6% above a year ago.
Calperf recalls chicken product
The product contains milk, an allergen not listed on the label09/28/2015ConsumerAffairsBy James Limbach
Calperf, operating under Creative Foods, of Santa Clara, Calif., is recalling approximately 216 pounds of chicken product. The product contains yogurt der...
Calperf, operating under Creative Foods, of Santa Clara, Calif., is recalling approximately 216 pounds of chicken product.
The product contains yogurt derived from milk, an allergen not listed on the label. While yogurt is declared on the front label, the product is missing an ingredient list identifying milk as a sub-ingredient.
There have been no confirmed reports of adverse reactions due to consumption of these products.
The following marinated skinless chicken item, produced on September 16, 2015, is being recalled:
2-lb. sealed trays of “Green Meadows PREMIUM MEAT CUTS Marinated Skinless Chicken Bone-In Cubed Chicken in 23% Yogurt-Curry Marinade” with a use-by date/Case code date of September 30,
The recalled product, bearing the establishment number “P-6052” inside the USDA mark of inspection, was shipped to retailers in the San Francisco, Calif., Bay Area.
Customers who purchased this product should not consumer it, but throw it away or return it to the place of purchase.
Consumers with questions about the recall may contact Saswata Bhattacharya at (925) 506-8286.
Hyundai recalls model year 2009-2011 Accents
A malfunctioning brake light switch may cause the brake lights to not illuminate09/28/2015ConsumerAffairsBy James Limbach
Hyundai Motor America is recalling 99,500 model year 2009-2011 Hyundai Accents manufactured March 1, 2009, to February 11, 2011. The brake light switch m...
Hyundai Motor America is recalling 99,500 model year 2009-2011 Hyundai Accents manufactured March 1, 2009, to February 11, 2011.
The brake light switch may malfunction causing the brake lights to not illuminate when the brake pedal is depressed or may cause an inability to deactivate the cruise control by depressing the brake pedal. It may also prevent the shifter from being moved out of the PARK position.
Failure to illuminate the brake lights during braking or the inability to disengage the cruise control could increase the risk of a crash.
Hyundai will notify owners, and dealers will replace the brake switch, free of charge. The recall is expected to begin November 2, 2015. Owners may contact Hyundai's customer service at 1-855-671-3059 or by visiting www.HyundaiUSA.com/Campaign131. Hyundai's number for this recall is 131.
Dealers join consumers in suing VW over "dirty diesel" scandal
Consumers looking for a bargain should probably act now09/25/2015ConsumerAffairsBy James R. Hood
Unsold VWs (Photo via Wikipedia)It's not just Volkswagen owners who are outraged over the Volkswagen dirty diesel scandal, dealers are angry too. In ...
It's not just Volkswagen owners who are outraged over the Volkswagen dirty diesel scandal, dealers are angry too. In fact, the dealers were already fed up with slow sales that they blamed on VW's plodding pace in bringing new models to market, and many are right behind consumers in filing class action litigation against the company.
It might sound strange to consumers, but dealers stand to lose a lot more in the Volkswagen scandal than their customers do. After all, what's the worst that will happen to a VW owner? The cars aren't safety hazards and can still be driven; they stand to lose resale value and may take a performance hit when the emissions systems are straightened out, but no individual car owner is going to be wiped out financially.
Dealers, on the other hand, argue that they have already taken multi-million dollar hits in lost sales because VW was slow to update its model line-up. And now they stand to lose much more if consumers turn their backs and head over to the Kia or Nissan dealer.
There's also the little matter of inventory. Volkswagen sales have been sluggish the last few years and if you look carefully at VW dealers' lots, you'll see they are bulging with unsold cars that appear as a huge liability on dealers' balance sheets.
Bargain hunter's dream
Not to be crass, but there is one bright spot in the entire mess -- anyone looking for a new or used car should be able to drive a hard bargain and then drive off with lots of change jiggling in their pockets.
Dealers live from month to month. Between now and the end of September, anyone who walks into a VW showroom with cash or good credit should be able to knock thousands of dollars off the going price for most models.
Admittedly, this is not the time to buy a VW diesel, since no one knows what the emissions modifications will do to the cars' performance and fuel economy, but gas-powered Volkswagens are the same precision-engineered, fun-to-drive cars today that they were yesterday.
Consumers too often make buying decisions based on morality instead of their own self-interest. Whether you buy a VW or not doesn't really matter to Volkswagen, but if you can do so at a fire-sale price, it matters a lot to your bank balance.
Headed for court
The mess that VW has made for itself also presents a sterling opportunity for the legal profession, which is letting no grass grow under its feet. Lawyers who specialize in the auto trades are tuning up their word processors and getting ready to head for the courthouse, Automotive News reports.
“If I’m a VW dealer and they’ve made intentional decisions either in Germany or in Virginia, and those decisions damaged the brand, that hurts me as a dealer,” said Mike Charapp, a partner at Charapp & Weiss in McLean, Va., a McLean, Va., a firm that represents dealers, the trade journal reported. “I’m going to be looking at some potential recourse unless VW steps up and helps me with my business.
VW's U.S. subsidiary is headquartered in Herndon, Va., near Washington Dulles International Airport. The proximity to Dulles makes it easy for executives to fly back and forth to Germany.
It also makes it convenient for lawyers to shuttle into Dulles and head for the Fairfax County courthouse or the U.S. District Court in Alexandria. Reuters estimates that at least 25 class-action cases have already been filed, representing dealers in all 50 states.
Besides lost sales, dealers will argue that the value of their franchises has been decreased -- even wiped out -- by Volkswagen's skirting of U.S. emission laws. The damages sought by dealers could easily exceed those sought by consumers and could even rival the $18 billion in potential fines.
Dizziness when standing up could be a sign of a serious medical condition
Be sure to talk to your doctor right away if you experience this09/25/2015ConsumerAffairsBy Christopher Maynard
Blood pressure problems are a nagging issue for many people across the U.S., but don’t be too quick to ignore signs of something that may be even more dang...
Blood pressure problems are a nagging issue for many people across the U.S., but don’t be too quick to ignore signs of something that may be even more dangerous. A new study shows that people who get dizzy several minutes after they stand up could be suffering from orthostatic hypotension, a condition that is characterized by a severe drop in blood pressure within three minutes of sitting or standing.
Now, you might remember times when you’ve stood up and had a momentary feeling of dizziness. Don’t worry, though; this is a much more common ailment of people who typically have low blood pressure. It can be managed by taking medication and ensuring that you stay hydrated throughout the day.
Orthostatic hypotension is much more serious, and it can lead to stroke and other cardiac problems. Christopher Gibbons, author of the study from Harvard Medical School and Fellow with the American Academy of Neurology, explains that the disease will only get worse if people do not have it taken care of immediately.
“Our findings suggest that more than half of people with the delayed form of this condition [where blood pressure drops more than three minutes after a change in position] will go on to develop the more serious form of the disease,” he said.
High mortality rate
For the study, researchers compiled over ten years of data from people suffering from varying forms of the disease. They found that as the disease became more serious, the mortality rate rose dramatically. The death rate for people with delayed orthostatic hypotension (the milder form of the disease) was 29% over 10 years. Those suffering from the regular form of orthostatic hypotension (which is more severe in nature) had a death rate of 64%.
The scary thing about this condition is that you can progress from having the milder form to having the more severe form. Participants who made this transition had a death rate of 50%. Researchers were able to determine that certain pre-existing conditions, such as diabetes, made participants more likely to make this transition as well.
The researchers hope that their study will help people recognize problematic symptoms and get help right away. “Our findings may lead to earlier recognition, diagnosis and treatments of this condition and possibly other underlying diseases that may contribute to early death,” said Gibbons.
Additonally, they want to stress that their data only reflects a limited number of participants and that it may not be indicative of the world population as a whole. The full study has been published in the online journal Neurology.
Should you finance a smartphone purchase?
Before adding $25 to $30 a month to your bill, consider the options09/25/2015ConsumerAffairsBy Mark Huffman
The days when cell phone carriers would subsidize the cost of your phone are pretty much over. Now, the consumer pays the full retail price.Before, car...
The days when cell phone carriers would subsidize the cost of your phone are pretty much over. Now, the consumer pays the full retail price.
Before, carriers were happy to sell you a $600 phone for $200, recouping the balance over the two years of your service contract. In the last year, all major carriers have gotten away from that.
But who can afford to pay $600 up front for a new phone? Most consumers prefer not to, so that's why all the carriers now offer payment plans – adding a monthly “equipment charge” to your bill until the phone is paid for.
But in most cases you're still paying the full retail price for the phone. And that has led some smartphone shoppers, who don't have a burning need for the newest iPhone or a phone with mind boggling features, to look for value.
For consumers who don't want to add to their monthly cell phone bill, but also don't want to spend $600 up front, there are options. One is to purchase a less expensive phone from the increasing number of Chinese manufacturers.
One of the biggest Chinese names in smartphones is ZTE, which now ranks fourth in U.S. sales. It started out as a staple among prepaid providers, like Boost Mobile and Cricket. These days, however, nearly all carriers offer these phones – even if they don't push them on consumers.
For a value-oriented consumer, however, no sales push is required. The ZTE Overture 2 and ZTE Sonota have the ridiculously low prices of $50 and $30 respectively.
They aren't high-end devices, but they still have an attractive package and offer features that, just a few years ago, were causing people to line up to purchase. For example, the Overture 2 runs on 4G LTE and comes with a quad-core processor and a gigabyte of RAM.
ZTE announced this week that its second generation ZMAX 2 is now available at AT&T on a prepaid plan for $149.99. The phone features an updated design and 5.5-inch HD screen.
Buying a used, refurbished phone is also an option for the value-conscious consumer. Recycled cell phones have been primarily mined for their copper and silver, but with commodity prices plunging in recent months, that market has softened.
Phone recycling companies like The Phone Rush are finding a ready market from consumers for iPhone 5 models or the Samsung Galaxy S4, which still pack a lot of attractive features and sell for a lot less than the latest models.
“Those interested in having a nice phone that is still very relevant can now buy them at much lower prices than when the device was originally released, thus saving a phone from adding to the e-waste problem that's compounding in the US, and some other countries,” the company said in a release.
And of course, the real advantage to consumers is the price. Instead of adding $20 to $30 a month in equipment charges to a cell phone bill, a consumer can purchase the Galaxy S4, which once was sold at 599.99 without a contract, for as little as $249.
Nearly half of U.S. seafood gets wasted
Researchers say most of it is lost at the consumer level09/25/2015ConsumerAffairsBy Mark Huffman
Food waste is an issue getting increasing attention, so it stands to reason that a new report from the Johns Hopkins Center for a Livable Future (CLF) will...
The report maintains that as much as 47% of the U.S. seafood supply is lost each year, never making it to consumers' tables. The research suggests the biggest reason is consumer waste.
If true, it's a troubling development, coming at a time when seafood sources are under pressure and consumers are being urged to eat more fish, due to its health benefits.
“If we’re told to eat significantly more seafood but the supply is severely threatened, it is critical and urgent to reduce waste of seafood,” said study leader David Love, an assistant scientist at the Johns Hopkins Bloomberg School of Public Health.
The study looked at seafood waste by focusing on the amount of seafood lost annually at each stage of the food supply chain and at the consumer level. By researchers' estimates, the edible supply of fish starts at 4.7 billion pounds per year.
2.3 billion pounds wasted
They say some of that fish is wasted as it moves through the supply chain from hook or net to plate. The study concludes that 2.3 billion pounds of seafood gets wasted, and that much of that waste could be eliminated by changing consumer behavior.
In fact, the researchers contend that consumers throw out 1.3 million pounds of edible seafood each year.
The 2010 U.S. Dietary Guidelines recommended increasing seafood consumption to eight ounces per person per week and consuming a variety of seafood in place of some meat and poultry. Yet achieving those levels would require doubling the U.S. seafood supply, the researchers say, or eliminating nearly all seafood waste.
Food waste reduction goals
Earlier this month, the Obama administration announced the nation's first-ever goals for cutting food waste nationwide, setting a target of 50% by 2030.
Dana Gunders, Staff Scientist at the Natural Resources Defense Council and author of the Waste-Free Kitchen Handbook, said it was an historic step.
“Wasted food is wasted money, wasted water, wasted land and wasted energy,” Gunders said. “America is taking solid action to keep more food on our plates now and into the future. We look forward to working with them to make this goal a reality.”
But Gunders said the government can’t accomplish that goal alone. It's going to take help from everyone -- from restaurants to grocery stores to household shoppers.
The Johns Hopkins researchers urge a stronger focus on prevention strategies involving governments, businesses, and consumers to reduce seafood loss and create a more efficient and sustainable seafood system.
There is no cure for that constant ringing in your ears but there could be in the near future09/25/2015ConsumerAffairsBy Mark Huffman
People who have it say it can be excruciating. Tinnitus causes pain and a constant ringing in the ears that makes it almost impossible to concentrate or en...
Research finds prunes can help protect against colon cancer
The prunes help gut bacteria stay healthy, which can reduce inflammation09/25/2015ConsumerAffairsBy Truman Lewis
Prunes have a bad reputation, so let's just call them dried plums, which is what they are, after all. It's widely known that dried plums can help maintain ...
Prunes have a bad reputation, so let's just call them dried plums, which is what they are, after all. It's widely known that dried plums can help maintain regularity, but researchers say they can also reduce the risk of colon cancer.
The reason is pretty simple: the dried plums help our microbiota -- also known as gut bacteria -- stay healthy. There are trillions of microbiota in our intestinal tract, and they play a major role in reducing inflammation that can lead to colon cancer.
"Through our research, we were able to show that dried plums promote retention of beneficial bacteria throughout the colon, and by doing so they may reduce the risk of colon cancer," said Dr. Nancy Turner, Texas A&M AgriLife Research professor in the nutrition and food science department of Texas A&M University, College Station.
Make all the prune jokes you want, but this is serious sstuff. Colon cancer is the third leading cause of cancer-related deaths in the U.S. when men and women are considered separately, and the second-leading cause when the figures are combined. During 2015, colon cancer is expected to cause about 49,700 deaths nationwide, according to the American Cancer Society.
Turner said that plums have been shown to help neutralize free radicals that can damage DNA and lead to the growth of cancer cells.
"Our research explored the potential cancer-protective properties of dried plums using a well-established rat model of colon cancer," she said. "Dried plums contain phenolic compounds, which have multiple effects on our health, including their ability to serve as antioxidants that can neutralize the oxidant effect of free radicals that can damage our DNA."
In the study, rats were fed a control diet, or a diet containing dried plums, said Derek Seidel, one of Turner's colleagues.
Among other findings, the rats consuming dried plums had significantly reduced numbers of aberrant crypts, early precancerous lesions that are often considered to be a strong indicator for cancer development.
Turner said this data supports the hypothesis that dried plums protect against colon cancer, which may be due in part to their ability "to establish seemingly beneficial colon microbiota compositions in the distal colon."
She added that while additional research is needed, particularly in human studies, the results from this study are exciting because they suggest that regularly eating dried plums may be a viable dietary strategy to help reduce the risk of colon cancer.
The research was funded by the California Dried Plum Board and presented at the 2015 Experimental Biology conference in Boston.
Doing nothing may be highly productive
It worked for Seinfeld, it might work for you09/25/2015ConsumerAffairsBy Mark Huffman
In the 1990s, Seinfeld was famous for being a “show about nothing.” In some ways it was the precursor to reality television, as viewers watched the aimless...
In the 1990s, Seinfeld was famous for being a “show about nothing.” In some ways it was the precursor to reality television, as viewers watched the aimless and often pointless lives of the show's characters.
The show about nothing was a ratings smash and remains a cult favorite today, nearly 20 years after it went off the air. Caroline Marshall, a self-identified experiential learning expert, says doing nothing is not such a bad thing.
People today, she says, are striving for peak performance that is getting harder to achieve because they are not stopping, unplugging, and becoming completely still. Women in particular, she says, are striving to be all things to everyone at all times and are finding it harder to cope.
“Often women are working full time, managing the role of homemaker and carer for the children whilst still being expected to stay fit and healthy,” Marshall said. “Women are risking their Mental Health daily to achieve goals which society is setting for them.”
So how do you up your game in today's hyper-competitive environment? Perhaps you could benefit from a little Zen-like reflection on current circumstances and where you want to go.
Marshall says high performing women have learned that having a practical plan that allows for some personal downtime makes success more likely.
She explains how she breaks away for short periods, going on overnight hikes, which allow her to re-focus her life and make small changes that result in peak performance.
“While some stress can help you kick-butt, when your body goes into fight-or-flight mode, daily stress can mess with your mind and body in serious ways, often resulting in Mental health issues,” she said. “Getting away into the bush allows me to go offline to focus on my own well-being and mindfulness.”
Her advice? Interacting with nature can be a big boost. A kayaking outing is great, but so is a simple walk.
In addition, she suggests getting up earlier each day, meditating, and, yes, maybe finding a coffee shop where you can meet friends and just do nothing.
Study: Deregulation of TV news to blame for political polarization
Congress tried to spur competition but got consolidation instead09/25/2015ConsumerAffairsBy Truman Lewis
The polarization of the American population is often blamed for the seeming inability of the government to get anything done, as politicians play to the fr...
The polarization of the American population is often blamed for the seeming inability of the government to get anything done, as politicians play to the fringe elements of their respective parties and ignore the day-to-day decisions that are needed to keep things running smoothly.
But don't blame the voters, says a new study, which instead ties the trend to the Telecommunication Act of 1996, a train wreck legislation that was supposed to remove the shackles of regulation, let a million stars twinkle, and so on and so forth.
What happened instead, says the study by Washington State University, is that the television industry was no sooner deregulated than it raced to consolidate, resulting in slashed newsroom budgets and ratings competitions that turned into a race to the bottom.
"After 1996, we see changes in polarization based on how much television people are using," said researcher Jay Hmielowski, assistant professor in WSU's Edward R. Murrow College of Communication. He conducted the study with Murrow colleague Myiah Hutchens and former colleague Michael Beam, now at Kent State University.
A specific moment
The Murrow researchers found that U.S. citizens have become increasingly polarized since 1996. They also found that greater use of TV news is associated with higher levels of polarization.
"Our study is unique," they wrote, "in that it focuses on a specific moment (1996) that perpetuated changes to the media system."
"We thought it was important to look at polarization in the United States given that we have increasing polarization in Congress and some evidence that people in general are polarizing with their attitudes and their likes or dislikes for the out party," said Hmielowski.
Their work was recently published online in the International Journal of Public Opinion Research.
CDC: Pregnant women drinking way too much
Women should not drink any alcohol during pregnancy09/25/2015ConsumerAffairsBy Truman Lewis
Pregnant women are drinking too much. How much is too much? According to the Centers for Disease Control and Prevention, any alcohol during pregnancy is ri...
Pregnant women are drinking too much. How much is too much? According to the Centers for Disease Control and Prevention, any alcohol during pregnancy is risky, but binge drinking is off the charts.
And yet, a recent study finds that 3.1 percent of pregnant women report binge drinking -- defined as four or more alcoholic drinks in a single session. Fully ten percent of pregnant women say they have had at least one drink in the last month.
“We know that alcohol use during pregnancy can cause birth defects and developmental disabilities in babies, as well as an increased risk of other pregnancy problems, such as miscarriage, stillbirth, and prematurity,” said Coleen Boyle, Ph.D., director of CDC’s National Center on Birth Defects and Developmental Disabilities. “This is an important reminder that women should not drink any alcohol while pregnant. It’s just not worth the risk.”
Fetal alcohol spectrum disorders (FASDs) are a group of conditions that can occur in a person whose mother drank alcohol during pregnancy. FASDs are completely preventable: if a woman does not drink alcohol during pregnancy, her child has zero risk of a FASD.
The findings come from a report in CDC’s Morbidity and Mortality Weekly Report (MMWR).
The study used data from CDC’s Behavioral Risk Factor Surveillance System (BRFSS), a state-based, landline, and cell phone survey of the U.S. population. To estimate the prevalence of alcohol use and binge drinking, researchers used 2011-2013 data for all 50 states and the District of Columbia for women aged 18-44 years.
Among pregnant women, alcohol use was highest among:
- Those aged 35-44 years (18.6 percent);
- College graduates (13 percent); and
- Unmarried women (12.9 percent).
“Women who are pregnant or might be pregnant should be aware that there is no known safe level of alcohol that can be consumed at any time during pregnancy. All types of alcohol should be avoided, including red or white wine, beer, and liquor,” said Cheryl Tan, M.P.H., lead author of the study and an epidemiologist in CDC’s National Center on Birth Defects and Developmental Disabilities.
More than one-quarter of U.S. homes are losing value
Disturbing pattern also appeared just before the housing bubble popped09/25/2015ConsumerAffairsBy Mark Huffman
Despite real estate industry statistics that consistently show a rise in the average home price, there is evidence that these increases skip over several s...
Despite real estate industry statistics that consistently show a rise in the average home price, there is evidence that these increases skip over several significant housing markets.
In fact, real estate market site Zillow has compiled statistics showing that more than one-quarter of U.S. homes lost value over the last year, at a time when the real estate market as a whole was thought to be still improving.
The disconnect is largely due to the nature of real estate, and the importance of “location, location, location.” In some markets, prices have already eclipsed those at the height of the housing bubble. Others are still struggling to put the housing crisis in the rear view mirror.
From a national standpoint, Zillow says homes gained 3.3% from a year ago. Not a big gain but more than the inflation rate.
But the numbers show the national growth rate in home prices has leveled off over the past five months, suggesting the housing recovery is coming to an end and the market is returning to normal.
A disturbing twist, however, is the 27.9% of homes that lost value over the past year. Something like that happened in the recent past – just before the market crash, in fact, when 21.2% of homes were worth less.
The eroding values peaked in December 2008, when 81.6% of homes had lost value. Today, the most significant falling values are clustered in East Coast markets.
According to Zillow, 48% of homes in Baltimore, 43% of homes in Philadelphia, 41% of homes in Washington, DC, and 38.6% of homes in New York and Northern New Jersey have lost value over the last year.
Markets in the Midwest also had their share of losses. Home values were down 32% in Cincinnati, 31% in Cleveland, and 27% in St. Louis.
Hot markets still holding value
At the other end of the scale, some real estate markets remain red hot, with homes shedding little of their value. Markets like Denver, Dallas, San Jose, and San Francisco all saw double-digit home value growth over the past year. Less than five percent of homes in Denver and Dallas were worth less in August 2015 than they were a year ago.
"We're not going in reverse, but we are hitting the brakes a bit in some markets," said Zillow Chief Economist Dr. Svenja Gudell. "It's easy to say the recession is over when a third of the biggest markets are more expensive now than ever before, but we're still seeing a number of homes losing value. The reality is there are still areas lagging behind in the recovery."
If you're renting, does that mean you should be dissuaded from buying? Again, it depends upon the market. However, renting in most areas is still no bargain.
The Zillow Rent Index rose 3.8% on an annual basis to$1,381, suggesting that rents are rising faster than home values.
Springtime economy grew at a healthy clip
More consumer spending was a big factor09/25/2015ConsumerAffairsBy James Limbach
The final numbers for economic growth during the second quarter are in -- and things were looking pretty good. The Commerce Department reports real gross ...
The final numbers for economic growth during the second quarter are in -- and things were looking pretty good.
The Commerce Department reports real gross domestic product (GDP) -- the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 3.9%.
By way of comparison, real GDP increased a paltry 0.6% in the first three months of the year.
These new numbers are based on more complete source data than were available for the "second" estimate, in which the increase in real GDP was put at 3.7%. With this “third” and final look at the April – June quarter, personal consumption expenditures (PCE) and nonresidential fixed investment increased more than previously estimated.
The acceleration in real GDP came from an upturn in exports, an acceleration in PCE, a deceleration in imports, a turnaround in state and local government spending, and an acceleration in nonresidential fixed investment. Those were partly offset by decelerations in private inventory investment and in federal government spending.
Real gross domestic income (GDI) -- the value of the costs incurred and the incomes earned in the production of goods and services in the nation’s economy -- rose 0.7% after increasing 0.4% in the first quarter.
GDP inflation and corporate profits
The price index for gross domestic purchases, which measures prices paid by U.S. residents, rose 1.5% in the second quarter, in contrast to a decline 1.6% in the first quarter. Excluding food and energy prices, the “core” rate of GDP inflation jumped 1.2% after edging up just 0.2% in the preceding quarter.
Profits from current production (corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj)) shot up $70.4 billion in the second quarter; they fell $123.0 billion in the first.
The complete GDP report is available on the Commerce Department website.
Hyundai Tucson and Sonata collect top IIHS awards
A redesign for 2016 reaps rewards09/25/2015ConsumerAffairsBy James Limbach
Hyundai tweaked the designs for both the Tucson and Sonata qualifying the vehicles for the Insurance Institute for Highway Safety's (IIHS) TOP SAFETY PICK+...
Hyundai tweaked the designs for both the Tucson and Sonata, qualifying the vehicles for the Insurance Institute for Highway Safety's (IIHS) TOP SAFETY PICK+ award.
In the Tucson's small overlap test, the driver's space was maintained well, with a maximum intrusion of six inches at the parking brake pedal, but no more than three inches at other locations. The dummy's movement was well-controlled, and the front and side curtain airbags worked well together to protect the head. Measures taken from the dummy indicate a low risk of any significant injuries in a crash of this severity.
In contrast, when the previous generation of the Tucson was tested, the intrusion was severe, reaching a maximum of 16 inches at the parking brake pedal. The steering column moved in and to the right, causing the dummy's head to slide off the left side of the front airbag. The head hit the instrumental panel, and the side curtain airbag didn't deploy.
Like its predecessor, the redesigned Tucson earns good ratings in the other crashworthiness tests -- moderate overlap front, side, roof strength, and head restraints.
The midsize Sonata was redesigned for the 2015 model year. For 2016, Hyundai made changes to the driver's safety belt and the front suspension in hopes of improving the small overlap rating from acceptable to good. Those changes weren't enough, and the rating remains acceptable. It earns good ratings in the other crashworthiness tests.
Both the 2016 Sonata and the 2016 Tucson have an available front crash prevention system that includes automatic braking. The vehicles avoided collisions in IIHS track tests at 12 mph and 25 mph. The optional package also includes forward collision warning that meets criteria set by the National Highway Traffic Safety Administration. That gives the vehicles the maximum six points for a superior front crash prevention rating.
To qualify for the 2015 TOP SAFETY PICK award, vehicles must earn good ratings in the moderate overlap front, side, roof strength, and head restraint tests, plus a good or acceptable rating in the small overlap test. For TOP SAFETY PICK+, vehicles also need an available front crash prevention system with an advanced or superior rating.
The Institute plans to raise the bar in 2016, requiring a good small overlap rating for either award. Vehicles with an acceptable rating, such as the Sonata, will need further improvements to qualify for 2016 honors.
Sanderson Farms recalls poultry products
The products that may be contaminated with extraneous metal materials09/25/2015ConsumerAffairsBy James Limbach
Sanderson Farms of Hazlehurst, Miss., is recalling approximately 554,090 pounds of poultry products that may be contaminated with extraneous metal material...
Sanderson Farms of Hazlehurst, Miss., is recalling approximately 554,090 pounds of poultry products that may be contaminated with extraneous metal materials.
There have been no confirmed reports of adverse reactions due to consumption of these products.
The following chicken items, produced on September 17-18, 2015, are being recalled:
- 70-lb. cases containing “YOUNG CHICKEN PARTS JUMBO BONELESS SKINLESS BREAST FILLETS WITH RIB MEAT” with case code 45017.
- 70-lb. cases containing “YOUNG CHICKEN PARTS JUMBO CLIPPED TENDERLOINS” with case code 45092.
- 70-lb. cases containing “YOUNG CHICKEN PARTS JUMBO BONELESS SKINLESS BREAST BUTTERFLIES WITH RIB MEAT” with case code 45015.
- 70-lb. cases and 1800-lb. combos containing “FRESH YOUNG CHICKEN PARTS BREAST FRAMES” with case code 45969.
The recalled products bear the establishment number “EST. P-247” inside the USDA mark of inspection and were shipped to processing facilities in Georgia and Louisiana.
Consumers who purchased these products should not consume them, but throw them away or return them to the place of purchase.
Consumers with questions about the recall may contact Mike Cockrell at (601) 426-1454.
Wishbone Design recalls Recycled Edition Bikes
The handlebar can pinch fingers09/25/2015ConsumerAffairsBy James Limbach
Wishbone Design Studio Limited of Yardville, N.J., is recalling about 5,000 Recycled Edition Bikes. The handlebar can pinch fingers placed at the center w...
Wishbone Design Studio Limited of Yardville, N.J., is recalling about 5,000 Recycled Edition Bikes.
The handlebar can pinch fingers placed at the center where the handlebar connects to the bike frame.
The firm received reports of four incidents, including two injuries. One required stitches and one required restorative surgery.
The Wishbone Recycled (RE) Bikes are made from recycled black plastic materials with 12-inch, air-filled white rubber tires. The adjustable seat height ranges from nine to 20 inches. The bikes weigh about ten pounds. The two recalled bikes include one three-in-one model, which is adjustable as a three-wheeler or two-wheeler with a high seat or low seat; and one two-wheeler model, which is adjustable with a high or low seat.
The date codes for production appear in a round dial on the front frame of the bikes under the seat. Date codes are either December 2013, or May 2014. The year appears in the center of the dial and the arrow points to the month. There is also a Wishbone logo embossed on each bike fork.
The bikes, manufactured in China, were sold at independent toy and bike stores nationwide and online at www.amazon.com from July 2014, through June 2015, for about $200 for the two-wheeler and $230 for the three-in-one.
Consumers should immediately stop using the bike, take it away from children and contact Wishbone or the store where the bike was purchased for a free neoprene cover for the handlebar.
Consumers may contact Wishbone Design Studio toll-free at 888-748-7453 from 8 a.m. to 5 p.m. (ET) Monday through Friday or online at www.wishbonedesign.com and click on Product Care and then Safety & Recalls at the bottom of the page for more information.
General Motors recalls Cadillac ATS sedan
The coil antenna module that powers the rear defogger system may generate excessive heat09/25/2015ConsumerAffairsBy James Limbach
General Motors is recalling 96,145 model year 2013-2016 Cadillac ATS sedans manufactured April 23, 2012, to September 2, 2015. The coil antenna module th...
General Motors is recalling 96,145 model year 2013-2016 Cadillac ATS sedans manufactured April 23, 2012, to September 2, 2015.
The coil antenna module that powers the rear defogger system may generate excessive heat due to excessive cycling or continuous operation. Excessive heat increases the risk of a fire.
GM will notify owners, and dealers will update the Electronic Climate Control module to remove the automatic rear defogger "on" function, free of charge. The manufacturer has not yet provided a notification schedule.
Owners may contact Cadillac customer service at 1-800-458-8006. GM's number for this recall is 15299.
Hyundai recalls model year 2011-2012 Sonatas
Oil flow may be restricted through the connecting rod bearings09/25/2015ConsumerAffairsBy James Limbach
Hyundai Motor America is recalling 470,000 model year 2011-2012 Sonatas manufactured December 11, 2009, to April 12, 2012, at Hyundai Motor Manufacturing A...
Hyundai Motor America is recalling 470,000 model year 2011-2012 Sonatas manufactured December 11, 2009, to April 12, 2012, at Hyundai Motor Manufacturing Alabama and equipped with either a 2.0 liter or 2.4 liter Gasoline Direct injection engine.
Metallic debris may not have been fully removed during manufacturing of the engine crankshaft. If the debris was not completely removed, oil flow may be restricted through the connecting rod bearings, causing connecting rod damage. A worn connecting rod bearing will produce a metallic, cyclic knocking noise from the engine and possible engine failure.
Engine failure would result in a vehicle stall, increasing the risk of a crash.
Hyundai will notify owners, and dealers will inspect the vehicles and replace the engine assembly, as necessary, free of charge. Additionally, Hyundai will increase the warranty for the engine sub-assembly (short block) to 10 years/120,000 miles for both original and subsequent owners of the recalled vehicles.
An interim notification will be mailed by November 2, 2015. A second notification will be mailed when parts are available.
Owners may contact Hyundai customer service at 1-855-671-3059. Hyundai's number for this recall is 132.
Rainbow Play Systems recalls plastic yellow trapeze rings
The rings can unexpectedly crack or break during use09/25/2015ConsumerAffairsBy James Limbach
Rainbow Play Systems is recalling about 133,000 pairs of plastic Trapeze rings sold in the U.S., Canada and Mexico. The rings can unexpectedly crack or br...
Rainbow Play Systems is recalling about 133,000 pairs of plastic trapeze rings sold in the U.S., Canada and Mexico.
The rings can unexpectedly crack or break during use, posing a fall hazard to children.
The company has received more than 100 reports of the rings cracking or breaking including 15 with reports of injuries consisting of bumps, bruises, lacerations, concussion and one broken finger.
This recall involves only the yellow plastic trapeze rings, which are triangular with rounded sides and have a loop at the top. They measure about 8½ inches high by 6½ inches wide. The yellow rings come as a pair and are connected to a trapeze bar.
They were sold either as a separate component or as an attachment on the following Rainbow-branded residential wooden playsets: All-American, Backyard Circus, Carnival, Fiesta, King Kong, Monster, Sunray, Sunshine and Rainbow.
All of these playsets have an aluminum plate located on the front of the wooden swing beam with the following name stamped on it, “Playgrounds America,” “Rainbow Play Systems Inc.,” or “Sunray Premium Playgrounds.”
The trapeze rings, manufactured in the U.S., were sold at Rainbow dealers nationwide from January 2007, through December 2011, and at several mass merchandisers including Sam’s Club, Toys R Us and Walmart from January 2009, through December 2009. The playsets retailed for between $900 and $10,000.
Consumers should immediately stop children from using the recalled rings, contact Rainbow for ring removal instructions, then remove the rings from the playset and receive a $10 gift card.
Consumers may contact Rainbow Play Systems toll-free at 888-201-1570 from 8 a.m. to 5 p.m. (CT) Monday through Friday or online at www.rainbowplay.com and click on the Recall tab located on the top menu bar for more information.
OPM says it's not a problem now and if it ever is, it will deal with it09/24/2015ConsumerAffairsBy James R. Hood
Just when you thought things couldn't get any worse, they do. No, we're not talking about Volkswagens, we're talking about the...
New iPhone becomes a weapon in carrier price war
New phones debut Friday with discounts from T-Mobile and Sprint09/24/2015ConsumerAffairsBy Mark Huffman
T-Mobile is at it again. The mobile carrier that immediately priced the new iPhone 6s below where Apple did has now lowered the cost to certain customers o...
For customers with JUMP! On Demand and an iPhone 6 or 6 Plus to trade in, the new iPhone 6s or 6s plus is just $5 a month for the 6s and $9 a month for the 6s Plus, for an 18 month term. The company previously announced a $20 a month plan without a trade-in, which is less than Apple's rate.
“With these incredible $5 and $10 a month deals, we’re giving customers just one more reason to come to T-Mobile,” said John Legere, president and CEO of T-Mobile. “This is a deal that only the Un-carrier could create, let alone make into a reality - and the crazy demand we’re already seeing tells me the carriers’ customers just aren’t buying their BS anymore. For your new iPhone, the choice couldn’t be clearer.”
Even older phones accepted
T-Mobile says the new price promotion builds on its previously announced $20 a month for a new iPhone 6s 16GB with JUMP! On Demand, without a trade-in. In addition to the $5 deal, the company is offering lower rates when customers trade in older phones; $10 a month with trade-in of iPhone 5s, Note 4 or Note edge and $15 a month with trade-in of almost any other phone you own, like the iPhone 5, iPhone 5c, Galaxy S4, Galaxy S3, HTC M8, and Motorola Droid Turbo.
T-Mobile says its customers who pre-ordered with a trade-in will receive the same reduced rate with an upfront bill credit.
At the end of 18 months, you turn in your iPhone – but there is another option. T-Mobile says you can keep the device when the agreement is up by paying $125 less than the full retail price. That comes to $524 for a new iPhone 6s 16GB without trade in. With a trade-in, you can keep your iPhone 6s 16GB after 18 months by paying a total of $254.
Sprint's iPhone Forever
T-Mobile isn't the only carrier hoping to use the new iPhone to pull in new customers. Earlier this month Sprintannounced its iPhone Forever plan. Qualified Sprint customers can get the iPhone 6s for $15 per month and iPhone 6s Plus for $19 per month with a trade-in.
Customers who choose not to trade in an existing smartphone at the time of purchase can get the iPhone 6s for $22 per month and iPhone 6s Plus for $26 per month. After that, Sprint customers can get a new iPhone every year.
iPhone Forever is available on any eligible Sprint rate plan and upgrade eligibility is included in the price. Through Dec. 31, 2015, Sprint says customers on any other carrier, or existing Sprint customers who are upgrade-eligible and turn in any smartphone, will get the promotional rate of $15 per month on iPhone 6s.
The latest iPhones make their debut Friday. In years past each release was greeted with excitement worthy of a quantum leap in technology. These days, there may be more excitement – certainly more competition – built around the rate packages.
Safety features a bigger draw for new car buyers
Accident avoidance and smartphone integration among the most prized09/24/2015ConsumerAffairsBy Mark Huffman
A year ago, fuel economy was a major driver of new car purchases. Consumers tended to favor smaller, more fuel efficient vehicles.Now, after 12 months...
A year ago, fuel economy was a major driver of new car purchases. Consumers tended to favor smaller, more fuel efficient vehicles.
Now, after 12 months of falling gasoline prices, fuel economy isn't nearly as much of a factor.
One feature KBB particularly likes is wireless connectivity in the vehicle cabin.
“Options available on new cars today like Apple CarPlay and Android Auto provide drivers with easy access to their smartphone’s navigation, phone, entertainment and texting abilities in ways that are an infinitely safer alternative to checking your phone behind the wheel, including options like voice commands,” said Micah Muzio, managing editor for Kelley Blue Book’s KBB.com.
Distracted driving continues to be a growing concern. KBB cites official U.S. government data showing 3,154 people were killed and approximately 424,000 people were injured in motor vehicle crashes involving distracted driving in 2013. Adding to the danger, approximately 660,000 U.S. drivers are using cell phones or manipulating electronic devices while driving at any given moment.
Technology is improving safety in other areas as well. Muzio says backup cameras have reduced accidents and improved safety, as have blind spot warnings.
“Forward collision alerts and lane departure warnings are helping to ensure greater safety for passengers and pedestrians alike,” Muzio said.
Crash avoidance features
The insurance industry has a vested interest in safer cars and fewer accidents. The Insurance Institute for Highway Safety (IIHS) says crash avoidance features are rapidly making their way into the vehicle fleet.
Six of the most common new technologies are forward collision warning, autobrake, lane departure warning, lane departure prevention, adaptive headlights, and blind spot detection. IIHS data shows that your chances of dying in a crash in a late-model vehicle have fallen by more than a third in just three years.
Even 2011 models have made a quantum leap in safety, with nine vehicles from the 2011 model year hitting the magic number: a driver death rate of 0.
Air bags, a technology dating back to the 1980s, have also improved – as long as they are correctly manufactured and installed. Insurance.com reports most 2003 models were equipped with two front airbags.
Now, virtually every new car comes with front, side, and side-curtain airbags standard. Some of the latest options include inflatable seat belts in Fords, front center airbags in some GM cars, and even a pedestrian airbag that pop over the windshield in case you hit someone crossing the street. That's available from Volvo.
Consumer group demands rebates for VW "clean diesel" owners
U.S. PIRG launches "Make VW Pay" campaign09/24/2015ConsumerAffairsBy Truman Lewis
A consumer group says Volkswagen mut offer to buy back all of the "clean diesel" cars equipped with software that lets them slip through emissions tests....
A consumer group says Volkswagen mut offer to buy back all of the "clean diesel" cars equipped with software that lets them slip through emissions tests.
“VW once was a company that brought us iconic cars like the Beetle and the flower-powered microbus, but now VW is just a big cheater, said Ed Mierzwinski, Consumer Program Director of U.S. PIRG. “VW CEO Martin Winterkorn resigned ... while claiming he committed 'no wrongdoing' but VW must still pay full penalties under law and grant full rebates to the customers it deceived into buying pollution-spewing cars that led to massive, undeserved profits.”
The Environmental Protection Agency (EPA) says Volkswagen built elaborate software — called a “defeat device” — to turn on emission controls during testing and turn them off during regular driving, emitting as much as 40 times the legal limit of smog-forming and lung-damaging pollutants.
“When they were caught, they denied it as long as they could but now VW admits it broke the law when it engaged in a scheme to trick pollution controls and ripped off hundreds of thousands of consumers who thought they were buying clean vehicles,” added Mierzwinski. “Our Make VW Pay Campaign will hold VW fully accountable while preventing future corporate lawbreaking that cheats consumers or places health, safety, wallets or the environment at risk.”
Key elements of U.S. PIRG’s Make VW Pay Campaign include:
1. Volkswagen must offer to buy back all “defeat device” diesel cars with full rebates to customers. VW cheated customers in selling them a product that was different than advertised in material ways.
2. The EPA must demand tough penalties: For VW’s violation, the law calls for penalties up to $37,500 per car — or $18 billion total.
3. Congress must put an end to the auto industry’s “get out of jail free" loophole: Auto industry lobbyists have won and defended a loophole in the law that makes it harder to prosecute their executives for intentionally violating the law and putting the public at risk, U.S. PIRG said. It’s time to close that loophole and any others that threaten consumer safety or wallets.
4. The Department of Justice must stop allowing tax write-offs for wrongdoing.
“GM got off cheap with a $900 million penalty over its ignition switch defect and cover-up that reportedly led to as many as 124 deaths,” concluded Mierzwinski. “Let’s make sure VW pays, that its customers get justice and that corporate crime no longer pays.”
U.S. PIRG is the federation of state Public Interest Research Groups. PIRGs are non-profit, non-partisan public interest advocacy organizations.
Kia Sedona wins Cars.com's Best Minivan rating
Experts teamed with actual family to judge five vehicles09/24/2015ConsumerAffairsBy Mark Huffman
With lower gasoline prices over the last year, many families have renewed their infatuation with the SUV. For others, the minivan is still indispensable fo...
With lower gasoline prices over the last year, many families have renewed their infatuation with the SUV. For others, the minivan is still indispensable for hauling around kids and pets.
But which one?
Cars.com recently teamed up with PBS's MotorWeek to evaluate current models of minivans and put them in a head-to-head competition. The project enlisted the help of a real family who was actually in the market for a new minivan.
Champion of quality and refinement
"The all-new Kia Sedona is a champion of quality and refinement," said Patrick Olsen, Cars.com editor-in-chief. "A great ride combined with a quiet cabin and numerous innovative features made the Sedona an obvious selection as the ultimate minivan."
The rankings shook out this way:
- 2015 Kia Sedona
- 2015 Toyota Sienna
- 2015 Honda Odyssey
- 2015 Dodge Grand Caravan
- 2015 Chrysler Town & Country
"Minivans are among the most utilitarian vehicles sold today," said Olsen. "It's not uncommon for minivan shoppers to buy them fully loaded, so we tested the 'ultimate' minivans with a price cap of $50,000, allowing us to assess the current offerings in technology, features and drivetrains."
The five minivans went through extensive testing that included a 135-mile course on varying road types. The objective was to test each minivan for real-world MPG.
To keep a level playing field, the vehicles were subjected to round-robin testing. Multiple experts drove each minivan back-to-back on the same course to test ride, handling, comfort, acceleration, and more.
The family brought the consumer perspective. It tested each minivan to judge features, cargo space, ride, and extras.
So what set the Sedona apart? It won rare praise for a minivan for it's look.
Doing the improbable
"Kia has done the improbable with the Sedona," said Jennifer Geiger, assistant managing editor at Cars.com. "It brings the style with a bold, studded grille and brawny sculpted face. You will almost look cool driving this minivan."
Beyond that, the Sedona – tricked out to a $44,000 sticker price – was cited for a strong drivetrain and a quiet ride. Another standout feature, according to the judges, is Kia's optional second row lounge seats.
As for the rest of the minivans, judges liked the Toyota Sienna's tech ergonomics and ample cargo room, the Honda Odyssey's seats and cool features, the Grand Caravan's value, and the Town & Country's acceleration.
Hudson City Bank accused of red-lining
The New York-area bank allegedly discouraged borrowers in minority neighborhoods09/24/2015ConsumerAffairsBy Truman Lewis
A New York-area bank has been accused of mortgage lending practices that the Consumer Financial Protection Bureau (CFPB) says amount to red-lining areas wi...
A New York-area bank has been accused of mortgage lending practices that the Consumer Financial Protection Bureau (CFPB) says amount to red-lining areas with large minority populations.
Hudson City Savings Bank allegedly located its branches and loan offices, as well as marketed its loan products, in the hopes of discouraging prospective borrowers in predominantly black and Hispanic neighborhoods.
If the CFPB's complaint is approved by the court, the bank will be ordered to pay $25 million in direct loan subsidies to qualified borrowers in minority neighborhoods and pay another $7.75 million in penalties and outreach programs.
This represents the largest redlining settlement in history to provide such direct subsidies.
“We allege that Hudson City’s redlining practices illegally cut off opportunities for consumers in predominantly Black and Hispanic neighborhoods to get a mortgage and achieve the dream of homeownership,” said CFPB Director Richard Cordray. “Without access to affordable credit, neighborhoods deteriorate in the long shadow cast by unfair lending.
"Today’s action seeks to remove the redline by bringing more than $27 million in mortgage subsidies and outreach programs, along with new bank branches to the communities who should have had access from the beginning,” he said.
Hudson City is a federally-chartered savings association with 135 branches and assets of $35.4 billion. It focuses its lending on the origination and purchase of mortgage loans secured by single-family properties in the New York, Philadelphia, and Bridgeport metro areas.
The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against applicants in credit transactions on the basis of characteristics such as race, color, and national origin. In the complaint, the CFPB and DOJ alleged that from at least 2009 to 2013, Hudson City violated the law when it engaged in illegal redlining by offering unequal access to credit based on the race and ethnicity of prospective borrowers’ neighborhoods.
Sprint, others fined for 9-1-1 call violations
Hard-of-hearing callers were unable to place emergency calls successfully09/24/2015ConsumerAffairsBy Truman Lewis
Sprint and two other companies will pay $1.4 million for failing to properly handle 9-1-1 calls placed by hard-of-hearing callers, the Federal Communicatio...
Sprint and two other companies will pay $1.4 million for failing to properly handle 9-1-1 calls placed by hard-of-hearing callers, the Federal Communications Commission said today.
The FCC said that for periods ranging from five weeks to ten months, Sprint, Hamilton Relay, and InnoCaption were unable to handle the calls and were unaware of it until the FCC investigation.
“All Americans must be able to reach 911 in an emergency,” said Travis LeBlanc, Chief of the Enforcement Bureau. "Today's settlements reaffirm our commitment to ensure that the hard of hearing community has essential 911 service 24 hours a day, 7 days a week. Not only are we fining these companies for failing to provide this vital services, but we are assuring that they provide it going forward.”
Individuals who can use their own voice but have difficulty hearing utilize a Telephone Relay Service (TRS) called Internet Protocol Captioned Telephone Service (IP CTS) to engage in a telephone conversation using an Internet Protocol-enabled device that allows callers to simultaneously listen while reading captions of what the other party is saying.
Companies that provide IP CTS do not charge consumers for the service, but are instead eligible to receive compensation from the federally-mandated TRS Fund as long as they have complied with the FCC’s TRS Rules and orders.
The FCC’s Enforcement Bureau and Consumer and Government Affairs Bureau discovered, through test calls made in 2014, that the companies were not able to accept and handle 911 emergency calls made using IP CTS applications, as required by Commission rules governing TRS.
The Bureau also found that the companies submitted inaccurate requests to the TRS Fund administrator for compensation provided to users of IP CTS applications during the period the companies were not in compliance with the emergency call handling rules.
As part of the settlement, the companies have agreed to take actions to prevent a recurrence of the problem.
Six truths about credit and debit cards
For consumers with self control, a credit card usually trumps a debit card09/24/2015ConsumerAffairsBy Mark Huffman
You're at the checkout counter ready to pay and you open your wallet. You have a credit card and a debit card. Which one do you use?There are pros and...
You're at the checkout counter ready to pay and you open your wallet. You have a credit card and a debit card. Which one do you use?
There are pros and cons to both, but Alex Matjanec, CEO of MyBankTracker, has compiled six truths he says surround the debate consumers have with themselves every day.
The first truth, he says, is that protection against theft will vary, depending on the card you select. With credit cards, you are liable for only up to $50 of fraudulent use. But in the case of a lost or stolen debit card, financial loss is limited to $50 only if you report the theft of your card or PIN code within two days upon learning of it.
Credit cards may have another advantage. Matjanec says a credit card will put you in a better position when dealing with merchant disputes.
“With a debit card, the amount would already have been debited from your account and you would have to wait for a settlement of the matter before any action to return those funds could be made,” Matjanec told ConsumerAffairs. “With a credit card, the bank or card issuer is charged for that purchase, not you.”
A third truth, says Matjanec, is that some retailers or service companies may put a hold on your debit account. It's also called “blocking” your card.
For example, suppose you use your debit card when you check into a $100-a-night hotel for five nights. According to the Federal Trade Commission (FTC), the hotel will put a hold on a least $500 and may add charges for "incidentals" — like food or beverages — to the blocked amount.
This can also happen when you purchase gasoline with a debit card. The station may place an additional $50 charge on your account, that goes away in a couple of days when the gas purchase goes through. If your balance is low, the FTC suggests asking a merchant if it places a hold on your account. Otherwise, your could lose access to your account for a couple of days.
The fourth truth about cards is that the rewards are better with credit cards. Some bank accounts may offer perks if you use your debit card a certain number of times each month, but that's about the extent of the extras.
“Some debit cards have also taken to offering rewards programs in the last few years, but credit card rewards tend to be more attractive,” Matjanec said.
The fifth truth is that debit cards don't really do much to help enhance your credit standing. Yes, it's a plastic card but you are using your own money. As such, debit card transactions don't get reported to credit agencies.
The sixth truth of plastic, says Matjanec, is debit cards don’t come with the added benefits that credit cards have. Credit card issuers provide more travel insurance and extended warranty on purchased items, such as replacements or refunds on defective online-ordered goods.
From Matjanec's perspective, the advantage is clearly with the credit card. That said, consumers using credit cards to pay for everyday expenses must keep track of what they are putting on those cards. Unlike debit cards, credit cards can accumulate a balance if you don't pay the bill in full each month.
New home sales rise again
Homes sold at best clip in more than seven years09/24/2015ConsumerAffairsBy James Limbach
Sales of new single-family houses have added the gains they posted in July. Figures released jointly by the Census Bureau and the Department of Housing a...
Sales of new single-family houses have added the gains they posted in July.
Figures released jointly by the Census Bureau and the Department of Housing and Urban Development show sales jumped 5.7% in August to a adjusted annual rate of 552,000. That's the most since 593,000 in February 2008 and 21.6% above the same month a year ago.
Sales were higher in three of the four U.S. geographic regions last month, led by a surge of 24.1% in the Northeast. Sales also rose in the South (+7.4%) and West (+5.4%), but declined in the Midwest (-9.1%)
Prices and inventory
Home prices last month were mixed. The median sales price of new houses sold in August was $292,700, for a year-over-year gain of $1,000 and up $1,600 from the previous month. The median is the point at which prices of half the homes sold were higher and half were lower. The average sales price was $353,400, down $2,800 from August 2014, but up $2,800 from July 2015.
The seasonally adjusted estimate of new houses for sale at the end of August was 216,000, representing a supply of 4.7 months at the current sales rate.
The complete August new home sales report is available on the Commerce Department website.
Separately, the Department of Labor (DOL) is reporting an uptick in the number of initial jobless claims filed last week.
During the week ending September 19, first-time applications for state unemployment benefits totaled a seasonally adjusted 267,000 -- an increase of 3,000 from the previous week.
The government says there were no special factors affecting claims level.
The four-week moving average, which smooths out the volatility in the weekly tally and is considered a more accurate barometer of the Labor market, was down 750 to 271,750.
The full report may be found on the DOL website.
Battery packs for Fujitsu notebook computers recalled
The battery packs can overheat, posing a fire hazard09/24/2015ConsumerAffairsBy James Limbach
Fujitsu America of Sunnyvale, Calif., is recalling about 305 Fujitsu notebook computer battery packs in the U.S. and Canada. The battery packs can overhe...
Fujitsu America of Sunnyvale, Calif., is recalling about 305 Fujitsu notebook computer battery packs in the U.S. and Canada.
The battery packs can overheat, posing a fire hazard.
The company has received three reports of the battery packs catching fire, including two in Japan and one in China and causing fire damage to rugs, bedding, a desk and other furniture. No injuries have been reported.
This recall involves Fujitsu lithium ion battery packs sold or provided as replacement battery packs for the following Fujitsu notebook computers: Celsius H720 and LIFEBOOK E752, P701, P702, P770, P771, P772, S752, S762 and T580. The battery packs were also sold separately. The black battery packs measure about 8 inches long, 2 inches wide and about 0.8 inches high.
Model number CP556150-1 including all serial numbers, and model number CP556150-2 with serial number range Z120102 through Z120512 are included in this recall. The model and serial numbers are printed on the white battery label. The notebook computer’s model number is printed on a label on the bottom of the notebook.
The batteries, manufactured in China, were sold online at www.shopfujitsu.com and other Web retailers from August 2012, through July 2015, for about $150.
Consumers should immediately turn off their Fujitsu notebook computer, remove the battery pack and contact Fujitsu for a free replacement battery pack. Consumers can continue to use their Fujitsu notebook computer without the battery pack by plugging in the AC adapter and power cord.
Consumers may contact Fujitsu at 800-838-5487 from 7 a.m. – 7 p.m. (CT) Monday – Friday or online at www.fujitsu.com/us and click on “Important Announcement: Voluntary Battery Recall and Replacement” for more information.
The company says burning oil is normal; get to know your dipstick09/23/2015ConsumerAffairsBy James R. Hood
Photo © highwaystarz - fotoliaSubaru is very popular in Indiana these days, following its announcement earlier this week that it will add 1,200 worke...
The chemical has been banned from general use in Europe but not here09/23/2015ConsumerAffairsBy Truman Lewis
Paint strippers on AmazonA chemical commonly found in paint strippers is being blamed for at least 56 sudden deaths in the U.S. in recent years.M...
Indiana Attorney General offers helpful list of methods09/23/2015ConsumerAffairsBy Mark Huffman
Getting your phone number on a Do Not Call list will stop legitimate telemarketers from interrupting your dinner.But the law does not prevent charities...
Final mortgage rules may make small banks more competitive
Consumers may find they have more options when shopping for a loan09/23/2015ConsumerAffairsBy Mark Huffman
New mortgage regulations take effect at the end of next week, changing disclosure forms and generally making the homebuying process more consumer friendly....
New mortgage regulations take effect at the end of next week, changing disclosure forms and generally making the homebuying process more consumer friendly.
But that's not all the new Consumer Financial Protection Bureau (CFPB) regulations do. They also have provided some long-sought benefits to small, community banks that should make these often-overlooked institutions more of a competitive force in the mortgage industry.
Among the changes taking effect October 3 is a broadening of the small-creditor designation under the government's Qualified Mortgage (QM) rule. The change will allow more community banks to receive QM legal safe-harbor protection for mortgage loans they originate and retain in portfolio.
What's a Qualified Mortgage? In short, it's a loan that the lender has determined the borrower can repay. Before the housing meltdown, many lenders made loans without determining whether the loan could be repaid or not and many of them weren't.
A QM is one that has met specific requirements and does not contain any of the risky features that contributed to the foreclosure crisis. For the lenders, there are advantages to making a QM, not least of which is the ability to sell the mortgage on the securities market.
The Independent Community Bankers of America (ICBA), the Washington-based trade group representing largely small town banks, got a lot of what it sought in the final rule. For example, it says CFPB expanded the number of communities designated as rural, which it says will provide additional relief from mandatory escrow requirements and include more balloon-payment loans as qualified mortgages.
As a result, small independent community banks are better able to compete for mortgage business.
“ICBA strongly supports the CFPB’s reforms to its QM rules, which will help ensure community banks can continue making mortgage loans in their communities,” said ICBA Chairman Jack Hartings, who is also president and CEO of The Peoples Bank Co. in Coldwater, Ohio. “The additional flexibility CFPB has provided will enable community banks to better meet the mortgage credit needs of their customers who may not fit a standardized mold.”
Among the other rule tweaks that ICBA says benefit small banks, the final rule expands who can qualify as a small creditor to include banks that make fewer than 2,000 loans annually, up from the previous threshold of 500.
Another advantage – loans held in portfolio, in which banks retain 100% of the credit risk and a direct stake in the loan’s performance, will not count toward the loan total.
There may be benefits to consumers shopping for a home loan as well. Instead of being limited to working with a mortgage broker or large bank, that processes thousands of loans at a time, consumers have the option of working with a smaller bank, perhaps one in their local community.
The final rule expands the definition of “rural” to include not only certain rural counties, but any census blocks that are not in an urban area as defined by the Census Bureau. This expands banks' service area and includes more consumers.
Are consumers better off using a small, community bank over a major lender when they purchase a home? Will the process go more smoothly?
It might. In fact, that's the subject of a forum on Trulia, a real estate listing site, with numerous Realtors weighing in.
The consensus seems to be that small is better. Larry, an agent in Chapel Hill, N.C., recommends using a preferred local lender to ensure the transaction will be handled smoothly with a minimum of stress.
Health insurance premiums rising twice as fast as inflation
Annual survey shows deductibles rising even faster09/23/2015ConsumerAffairsBy Mark Huffman
For any family or single person, paying for health benefits is a big expense. For those getting insurance coverage through work, the cost is sometimes obsc...
For any family or single person, paying for health benefits is a big expense. For those getting insurance coverage through work, the cost is sometimes obscured because it comes out of paychecks, along with taxes.
But the expense is there and rising, though not as fast as in the past. In the latest Kaiser Family Foundation/Health Research & Education Trust Employer Health Benefits Survey, auditors found single and family premiums for employer-sponsored health insurance rose an average of 4% this year, more than twice the rate of inflation.
Deductibles, meanwhile, have risen almost three times as fast as premiums and about seven times as fast as inflation. Here are the numbers:
The average annual premium for a single employee's coverage is $6,251, of which workers on average pay $1,071.
The average family premium is $17,545, with workers on average contributing $4,955.
But increasingly, insurance plans are there to cover the big things – a serious accident or a major illness. Routine medical care is often paid out of pocket since more employee-sponsored plans have deductibles – expenditures the policyholder is required to pay out pocket before the coverage kicks in.
The survey finds 81% of covered workers have plans with a general deductible they must meet each year, and the deductible is growing. This year the average deductible for a single covered person is $1,318. If the worker happens to work for a small firm, the deductible averages out to be $1,836.
In the last five years, both the share of workers with deductibles and the size of those deductibles have increased sharply, according to the survey. That makes for a 67% increase in deductibles since 2010, rising much faster than the increase in single premiums.
“With deductibles rising so much faster than premiums and wages, it’s no surprise that consumers have not felt the slowdown in health spending,” Foundation President and CEO Drew Altman said.
Not rising quite as fast
But at least the cost of coverage isn't rising as fast as it once did. Since 2005 premiums have increased an average of about 5% a year – or a total of 50%. Yes, that's a lot but premiums soared 11% per year from 1999 to 2005.
The survey also found that employees who enjoy attractive health benefits through work may need to prepare for an adjustment. A provision of the Affordable Care Act takes effect in 2018, putting an excise tax on expensive health care plans – sometimes called the “Cadillac tax.”
The survey found that most large employers have already performed an internal audit to determine if they are affected. Gary Claxton, the lead author of the study, predicts affected companies will respond by shifting more of the cost of these expensive plans to employees.
Many presidential campaign websites fail the privacy test
Some sites admit they may sell your information to others09/23/2015ConsumerAffairsBy Truman Lewis
Eager to support your favorite Presidential candidate? That's fine, but an audit finds only 6 of 23 sites got a passing grade for their website privacy pol...
Eager to support your favorite Presidential candidate? That's fine, but an audit finds only 6 of 23 sites got a passing grade for their website privacy policies. Also, in today's Super PAC era, there's no guarantee your money will go where you think it's going.
Candidates Jeb Bush, Lincoln Chafee, Chris Christie, Martin O'Malley, Rick Santorum and Scott Walker all got passing grades, although Walker has since dropped out of the race.
Money to burn
And as for those Super PACs, it's important to remember that they are the result of judicial rulings, not Congressional intent. As a result, there are very few rules governing their actions and no laws about what to do with your money when they fold their tents.
Super PAC's supporting Scott Walker and Rick Perry, respectively, say they are returning supporters' money, but there's no guarantee others will do the same. A cautious investor might wait until the field narrows a bit before throwing money at one of the remaining entrants.
NRF: Halloweeners to turn out in big numbers this year
Spending on spooky stuff is projected to reach $6.9 billion09/23/2015ConsumerAffairsBy James Limbach
It's party time! Well, next month anyway, and a lot of people plan to be a part of it. The National Retail Federation’s (NRF) Halloween Consumer Spending ...
It's party time! Well, next month anyway, and a lot of people plan to be a part of it.
The National Retail Federation’s (NRF) Halloween Consumer Spending Survey, conducted by Prosper Insights & Analytics, finds that more than 157 million people in the U.S. plan to celebrate Halloween this year.
But they won't be spending as much to do it as they did last year. The survey says the average person celebrating will spend $74.34, compared with $77.52 last in 2014. Total spending on Halloween is expected to reach $6.9 billion.
“After a long summer, consumers are eager to embrace fall and all of the celebrations that come with it,” NRF president and CEO Matthew Shay said. “With a bit more confidence in their finances and still enjoying the perks of low gas prices, we expect those celebrating Halloween this year will look for several different activities to do with their family and friends. Retailers of all shapes and sizes will welcome millions of shoppers with promotions on candy and decorations and of course, costumes.”
Costumes get the lion's share
Consumers celebrating Halloween plan to spend an average of $27.33 on costumes for the whole family for a total of $2.5 billion on store-bought, homemade, large, and small costumes. Most of that will be for adult costumes ($1.2 billion), with $950 million for children’s costumes and $350 million for their pets. It’s estimated that 68 million people will dress up this Halloween and another 20 million pet owners will dress up their furry friends.
Nine in ten (93.7%) Halloween shoppers will buy candy, spending a total of $2.1 billion, and an additional 33.5% will buy greeting cards, laying out a total of $330 million. Two in five celebrants (44.8%) plan to decorate their home or yard, meaning there’s no question consumers will see their fair share of pumpkins, hay bales, and even life-size Minions and black cats strewn across their neighborhoods. The average person planning to buy decorations will spend $20.34, with total spending expected to reach $1.9 billion.
When it comes to how people plan to celebrate, most will hand out candy (67.8%) or dress in costume (43.5%). There will be no shortage of jack-o-lanterns lighting up windows this year, though, with 41% of people planning to carve pumpkins. Nearly one-third (31.5%) plan to throw or attend a party with friends and family.
Shopping till they drop
More consumers have decided to head to stores or shop online early to pick out costumes and decorations. More than one-third (34.1%) will start their Halloween shopping before the first of October, compared with 32.1% last year -- 40.9% will get started in the first half of the month and one-quarter (25%) will wait for the final weeks of October.
“People shouldn’t be too surprised when they see Halloween candy and decorations available in stores as early as September first,” Prosper Insights Principal Analyst Pam Goodfellow said. “Given that more than a third of Americans enjoy taking advantage of early-bird deals to kick off their fall celebrations, it seems there’s plenty of appetite among consumers to enjoy a perfectly ‘frightful’ Halloween.”
Similar to past years, the majority of consumers will find inspiration for their costumes online (31.4%) or will head to costume shops and retail stores (26.8%) before they make a final decision. Pinterest continues to grow in popularity among those looking for costume inspiration (13.3%), as this year’s percentage is nearly double the amount who used the site for inspiration just three years ago (7.1%).
Millennials remain the drivers of Pinterest traffic around Halloween though, with 24.9% of 18-24 year-olds and 23.7% of 25-34 year-olds using the site for costume inspiration.
Nearly 30 million Americans are dipping into their retirement savings prematurely
Many use the money to cover emergencies, but analysts call it a "permanent setback"09/23/2015ConsumerAffairsBy Christopher Maynard
Every working person occasionally (or maybe not so occasionally) dreams of the day when they can stop working and go into retirement. In order to be comfor...
Every working person occasionally (or maybe not so occasionally) dreams of the day when they can stop working and go into retirement. In order to be comfortable when you reach that point in your life, though, you should be continuously putting money into your retirement savings and not touching it. This last part, unfortunately, seems to be a problem for many Americans.
A recent report by Bankrate.com shows that nearly 30 million people took money out of their retirement savings this past year due to an emergency. Another 21 million people simply aren’t putting money towards retirement at all, which could prove costly when they reach an appropriate age.
Disparity between generations
In their report, Bankrate.com determined that millennials were the best at putting money towards retirement and not touching it; only 8% of people in this age bracket took money out of their savings prematurely in the past year. This may correlate to how they feel about their overall financial situation – 40% say they are better off financially than they were a year ago, while only 11% say they are worse off.
In contrast to millennials, people ranging in age from 50-64 are much more likely to think that their financial situation has worsened in the last year. The report shows that 26% of people in this age bracket admit to these feelings – the most of any other age group surveyed. Seventeen percent of people in this age group also admit that they have dipped into their retirement savings this past year to pay for an emergency.
“Using retirement savings to cover an emergency is a permanent setback to retirement planning, with the possibility of taxable distributions, early withdrawal penalties, loss of tax efficiency, and the inability to replace withdrawn funds in future years,” said Bankrate.com’s chief financial analyst, Greg McBride.
The site’s full survey can be viewed here.
Catholic church holds steady in U.S. as Protestants show heavy losses
Catholics are 23% of the U.S. population, a figure that has held for 66 years09/23/2015ConsumerAffairsBy Truman Lewis
Vatican photoReligion is not a consumer product but, let's face it, many Americans "shop" for a religion when they reach adulthood or at other times....
Religion is not a consumer product but, let's face it, many Americans "shop" for a religion when they reach adulthood or at other times. Viewed in that light, Catholicism is far and away the top choice for religious Americans.
As Pope Francis makes his first visit to the U.S., Catholics account for about 23% of the American population, a figure that has held remarkably steady for the 66 years that Gallup has been asking Americans about their religious affiliation.
One remarkable aspect of this relatively stable trend is that during the same period, the percentage of Americans who have no formal religious identity has increased from roughly 1% to about 20% today. The rise in those with no religion has been accompanied by a decline in the percentages of Protestants and other non-Catholic Christians, the ranks of which have fallen from as high as 70% of the population, down to about 50% today.
Catholics have been able to hold their own -- percentage-wise -- even as the unaffiliated percentage has risen significantly.
These results are based on Gallup's traditional "stand-alone" polls dating back to 1948. Religious identification is also measured as part of Gallup Daily tracking, and interviews with more than 170,000 individuals in 2014 showed a similar 23.9% of national adults interviewed identified as Catholic.
One of the explanations for the stable representation of Catholics in the adult population over time is the increasing percentage of Hispanics in the U.S. population, coupled with the fact that the majority of Hispanics identify as Catholic.
In Gallup's 2014 tracking data, 32% of Catholics identified as Hispanic, more than double the representation of Hispanics in the U.S. adult population. Sixty-one percent of Catholics are white, while 3% are black -- much lower than the black representation among Protestants.
No political preference
While in Washington, Pope Francis will meet with Democratic President Barack Obama and will make a speech before a joint session of the Republican-controlled Congress. This bipartisanship fits nicely with the party identification of Catholics in the U.S., which is remarkably similar to what is found in the overall population.
In 2014, 40% of both Catholics and non-Catholics identified as or leaned Republican, while 43% of both groups identified as or leaned Democratic.
This is a different situation from that of other religious groups, whose partisan identification tends to skew in one direction or the other. For example, 47% of Protestants and 71% of Mormons identify as or lean toward the Republican Party, well above the overall 40% of the population who are Republican. On the other hand, 61% of Jews identify with or lean toward the Democratic Party.
All of this explains why Catholics have been a key swing group in recent presidential elections, much more so than other religious groups. The tendency for Catholics to mirror the overall population from a partisan perspective is a shift from the past, when Catholics tended to skew significantly more Democratic in their partisan and voting behavior.
These data statistics are available in Gallup Analytics.
Smartphone app will monitor sickle cell disease
System will give patients an early warning of attack09/23/2015ConsumerAffairsBy Mark Huffman
Sickle cell disease is a hereditary blood disorder that affects red blood cells, distorting their natural disc shape into a crescent moon or “sickle” shape...
Sickle cell disease is a hereditary blood disorder that affects red blood cells, distorting their natural disc shape into a crescent moon or “sickle” shape.
This misshapen form makes it more difficult for these red blood cells to move through blood vessels. They can block the flow of blood and break apart, leading to internal organ damage – not to mention a lot of pain.
“A major challenge in the management of sickle cell disease is the tremendous pain that patients endure from chronic and acute pain episodes called pain crisis,” said Sarah Du, a professor at Florida Atlantic University. “Unfortunately, these pain episodes are unpredictable and patients never know when or where these episodes will take place.”
National Science Foundation grant
With a small grant from the National Science Foundation, Du has designed and will develop a portable smart sensor and a phone application for patients to analyze and store the results of their blood tests on a smart phone.
The app will enable sickle cell patients to keep a close watch on any abnormal activities in their blood cells and take required action at the first sign of an attack.
This will be a first for sickle cell patients. The system will consist of a disposable test, a lot like a glucometer that is used by patients who have diabetes.
The system will allow patients to monitor what their red blood cells are doing and better manage the condition by making sure they are always appropriately hydrated and have the right amount of oxygen.
Uses small drop of blood
“We will only need to use a very small drop of blood from a finger stick that will then be loaded into a microscale channel that is biochemically modified,” said Du. “Then, the embedded microprobes inside the channel together with the microprocessor will transmit the signals of blood cells to a patient’s cell phone revealing the results of their blood test.”
The next step, she says, is to use the sensor technology as a part of a smart and connected health system for sickle cell disease management. The readings could be shared with a health care provider, who could then send intervention strategies, feedback, and even prescription medications.
Sickle cell disease affects millions world-wide, including both children and adults. In the U.S., it disproportionately affects people of African descent, as well as Hispanics and those of Middle Eastern descent.
It's estimated that about two million Americans carry this genetic mutation, which affects about 100,000 individuals in the U.S.
Don't just sit there -- fidget
Study finds fidgeting may counteract the adverse health effects of sitting09/23/2015ConsumerAffairsBy Truman Lewis
Your grade school teacher told you not to fidget, but University of Leeds professor Janet Cade says fidgeting may be good for you.Cade and colleagues h...
Your grade school teacher told you not to fidget, but University of Leeds professor Janet Cade says fidgeting may be good for you.
Cade and colleagues have published a study which finds that the movements involved in fidgeting may counteract the adverse health impacts of sitting for long periods -- an increased risk of mortality from sitting for long periods was only found in those who consider themselves very occasional fidgeters.
"While further research is needed, the findings raise questions about whether the negative associations with fidgeting, such as rudeness or lack of concentration, should persist if such simple movements are beneficial for our health," Cade said.
The study, published today in the American Journal of Preventive Medicine, builds on growing evidence suggesting that a sedentary lifestyle is bad for your health, even if you are physically active outside work.
The study examined data from the University of Leeds' UK Women's Cohort Study, which is one of the largest cohort studies of diet and health of women in the UK. It found no increased risk of mortality from longer sitting times, compared to more active women, in those who considered themselves as moderately or very fidgety.
Breaks in sitting time have previously been shown to improve markers of good health, such as body mass index and your body's glucose and insulin responses. But until now, no study has ever examined whether fidgeting might modify an association between sitting time and death rates.
Missouri wants contempt of court citation for Walgreens
The drug store chain is deceiving customers with expired price tags, the state charges09/23/2015ConsumerAffairsBy Truman Lewis
Back in August 2013, Walgreens promised a Missouri court that it would remove price tags from items within 12 hours of their expiration, to ensure that cus...
Back in August 2013, Walgreens promised a Missouri court that it would remove price tags from items within 12 hours of their expiration, to ensure that customers weren't overcharged.
But now, just a little more than two years later, Missouri Attorney General Chris Koster has filed a motion for contempt after a new investigation allegedly found stores are routinely deceiving customers with expired price tags.
According to Koster, his investigators visited 50 Walgreens stores across the state July 26 through September 1 and found over 1,300 expired sales tags in 49 of the stores. Hundreds of these tags were weeks past their expiration date, with two that had expired in 2013, he said. The court order was entered following an agreement between Walgreens and the Attorney General’s office to resolve Koster’s August 2013 lawsuit for expired and incorrect tags.
“My office’s 2013 investigation showed a relationship between expired tags and consumers being overcharged at the register,” Koster said. “Consumers should not have to dig through outdated and incorrect information to find out the true price of any item.”
The contempt motion filed Tuesday in Jackson County Circuit Court asks the court to find that Walgreens has violated the court’s order and fine the company up to $5,000 for every expired tag that was discovered by investigators during the recent inspections, plus an additional penalty for every day that an expired tag is found to be hanging in a store in the future.
30 stores failed an audit
Koster said Walgreens has already paid the state of Missouri $136,500 for pricing violations found in regularly scheduled independent audits that are also required by the court’s order. Thirty Walgreens stores have failed these audits and several failed more than once, with one store failing six times in a row. In all, Walgreens stores have failed 53 audits in the last year.
“I promised Missouri consumers that we were going to stay on Walgreens’ back until it corrected its deceptive ways,” Koster said. “It is the stores’ responsibility to ensure fair and accurate pricing. We are not going to quit until Walgreens gets it right.”
Mortgage applications post first gain in three weeks
The advance was driven by dips in mortgage rates09/23/2015ConsumerAffairsBy James Limbach
After posting sizable declines in the preceding two weeks, applications for mortgages shot higher last week. Figures released by the Mortgage Bankers Asso...
After posting sizable declines in the preceding two weeks, applications for mortgages shot higher last week.
Figures released by the Mortgage Bankers Association show applications surged 13.9% in the week ending September 18. The previous week’s results included an adjustment for the Labor Day holiday.
“We saw significant rate volatility last week surrounding the FOMC meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance” said MBA Chief Economist Mike Fratantoni. “The 30-year fixed rate remained unchanged over the week even though there was substantial intra-week fluctuation, but we saw rate decreases in other loan products like the 15-year fixed, 5/1 ARM, and 30-year jumbo.”
The Refinance Index jumped 18%, pushing the refinance share of mortgage activity to 58.4% of total applications from 56.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.9% of total applications, the FHA share slipped to 12.9% from 14.2%, the VA share dropped to 10.0%, and the USDA share of total applications decreased to 0.7% 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) was unchanged at 4.09%, with points increasing to 0.45 from 0.42 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
- The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) fell five basis points -- from 4.04% to 3.99%, its lowest level since May 2015 -- with points increasing to 0.36 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 30-year FRMs backed by the FHA held steady at 3.88%, with points decreasing to 0.33 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 15-year fixed-rate mortgages slipped two basis points to 3.31%, with points increasing to 0.42 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 5/1 ARMs dropped to 2.95%, its lowest level since May 2015, from 3.04%, with points increasing to 0.58 from 0.36 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The survey covers over 75% of all U.S. retail residential mortgage applications.
Foreclosures, lack of information and payment problems irk consumers09/23/2015ConsumerAffairsBy James Limbach
Consumers continue to face problems with mortgage servicing, according to the Consumer Financial Protection Bureau's (CFPB) latest monthly consumer complai...
"I and love and you" expands recall of beef gullet
The product may be contaminated with Salmonella09/23/2015ConsumerAffairsBy James Limbach
"I and love and you," of Boulder, Colorado, is expanding its earlier recall of cow-boom! strips – beef gullet. The product may be contaminated with Salmon...
"I and love and you," of Boulder, Colorado, is expanding its earlier recall of cow-boom! strips – beef gullet.
The product may be contaminated with Salmonella.
There have been no reported pet or human illnesses associated with this recall.
The recall is limited to cow-boom! strips - beef gullet packaged in 2.0-oz bags, with lot numbers ending in 4T1 or 5T1, a best-by-year of 2016 or 2017 and UPC number 8 18336 01134 4.
Customers who purchased these products should dispose of them or return them to the place of purchase for a full refund.
Consumers with questions may contact the company at 855.ILY.LOVE Monday through Friday between 8:00 AM and 5:00 PM (MT) or by email at firstname.lastname@example.org.
Study: One in three born in 2015 to develop dementia
Rising risks are the result of longer lifespans09/22/2015ConsumerAffairsBy Mark Huffman
Since age is the major risk factor for Alzheimer's disease, health officials worry that the huge and aging Baby Boom population is going to lead to a stagg...
Since age is the major risk factor for Alzheimer's disease, health officials worry that the huge and aging Baby Boom population is going to lead to a staggering increase in the affliction.
Now comes word that British health researchers have concluded that longer life spans mean more people will suffer dementia at some point. Their report, produced for Alzheimer's Research UK, predicts that one in three Britons born this year will be affected by loss of cognitive ability at some point in their lives.
Alzheimer's is the most common brain disease but is not the only one. The various dementias result in the loss of brain cells and impair the brain’s ability to function properly.
Early symptoms can include problems with memory and thinking. As more brain cells die, physical functions such as walking and even swallowing can be affected. There is no cure, although a new drug that may slow or stop Alzheimer’s will soon undergo Phase 3 clinical trials.
While the research focuses on people living in the UK, similar results can be expected for other Western countries, including the U.S.
More women than men
The report estimates that 32% of people born in the UK in 2015 will develop dementia during their lifetime. Women are more likely than men to develop the disease – 37% to 27%.
“These figures underline a stark reality: as people are living longer, more and more people will develop dementia in the future if action is not taken now to tackle the condition,” said Matthew Norton, Head of Policy at Alzheimer’s Research UK. “It’s wonderful news that each generation is living longer than the last, but it’s important to ensure that people can enjoy these extra years in good health.”
The research team previously concluded that if science is able to produce a treatment that could delay the onset of dementia by five years, it would reduce the number of cases by one-third. Major research is underway to do just that.
A year ago researchers in California reported stunning results after a small study of patients just diagnosed with Alzheimer's disease. They administered a novel and complex treatment they say restored memory function in nine out of ten study participants.
The treatment consists of a 36-point therapeutic program involving comprehensive changes in diet, brain stimulation, exercise, optimization of sleep, specific drugs and vitamins, and multiple additional steps that affect brain chemistry.
It is the first Alzheimer's research to suggest that memory loss in patients may be reversed, and that improvement can be lasting.
VW's dirty diesel scandal only gets worse
As lawsuits rain down, the company now says 11 million vehicles could be affected09/22/2015ConsumerAffairsBy James R. Hood
Volkswagen's "dirty diesel" scandal just keeps getting worse. The German automaker now says as many as 11 million cars worldwide could have the software th...
Volkswagen's "dirty diesel" scandal just keeps getting worse. The German automaker now says as many as 11 million cars worldwide could have the software that allegedly fools emissions inspection technology.
German press reports Tuesday said that VW CEO Martin Winterkorn had been ousted, effective Friday, Sept. 25. Succeeding him is Porsche CEO Matthias Muller, these reports said.
In the U.S., where federal regulators uncovered the scandal, it's hard to find a parking place anywhere near a courthouse, as class action attorneys rush to slap suits on VW, seeking damages for consumers whose cars have overnight gone from high-tech, clean-air wonders to rolling centers of pestilence, emitting 40 times the allowable amount of nitrogen oxide.
VW's stock has plunged, closing down 19% Monday, wiping out $17 billion of market capitalization. And the company's stock with its relatively small band of loyal consumers -- and auto enthusiasts -- has dropped even lower.
Straining mightily, VW had just passed Toyota to become the No. 1 automaker worldwide in terms of sales. In the U.S., though, sales have been weak and the company's leadership in the diesel segment had been one of its few bright spots.
The company faces up to $18 billion in fines in the U.S. alone, but that doesn't even begin to count the cost of recalling and fixing the cars and the huge legal bill that accompanies any blunder of this magnitude.
Volkswagen's standing with people who write about cars is now at the lowest possible level. For years, journalists -- including this one -- have swallowed VW's claims that its diesels were an engineering marvel that produced excellent acceleration, outstanding fuel economy, and virtually zero emissions from the tailpipe.
It will be a very long time before anyone takes VW at its word again.
At least seven class actions have already been filed in California, Illinois, Alabama, and Florida, Courthouse News reported, alleging fraud by concealment, breach of contract, product liability, breach of warranty, and other claims under state and federal laws.
“The half-a-million people who own these cars are furious, and with good reason,” said Steve Berman, managing partner of Hagens Berman, a Seattle law firm that was lead counsel in the $1.6 billion Toyota unintended acceleration case. “Not only did they pay more for something they never received, but they’ve been victim to a tremendous act of deception."
Even worse, VW "chose to target the group of consumers who care most about being environmentally conscious,” said Berman, whose lawsuit includes plaintiffs from 23 states.
Congress may also be getting into the act.
"The American people deserve answers and assurances that this will not happen again. We intend to get those answers," said Rep. Fred Upton (R-Mich.), chairman of the House Energy and Commerce Committee. He said a hearing will be held soon.
In Germany, where the car industry accounts for at least 20% of all jobs, politicians swooned as they contemplated the damage to all German marques. Jochen Flasbarth, Germany's senior environmental official, called it a "case of blatant consumer deception and environmental damage."
"I expect VW to reveal, without any gaps, how and to what extent these manipulations have taken place," he said, according to Reuters.
On the other hand, Germany is not alone. Japan's Toyota and the United States' own General Motors have both faced disgrace and huge fines in recent years. Toyota paid a $1.2 billion fine in 2014 for mishandling the unintended acceleration issue and General Motors has agreed to pay $900 million for dragging its feet in the ignition switch case.
FCA US LLC -- known to most of us as Fiat Chrysler -- has also been dragged through the mud for its sluggish response to Jeep fires.
Only Korea's auto industry remains unsullied by massive miscalculation and deception -- last time we checked, anyway.
Biological engineers at MIT create system that can fight disease at the molecular level
The research could lead to the eradication of diseases like cancer and AIDS09/22/2015ConsumerAffairsBy Christopher Maynard
A recent development by biological engineers at MIT may allow us to detect DNA abnormalities and fight disease at the molecular level.It may seem like ...
A recent development by biological engineers at MIT may allow us to detect DNA abnormalities and fight disease at the molecular level.
It may seem like something out of science fiction, but scientists may soon be able to use a certain class of proteins that can alter DNA strands inside of mammalian cells, effectively allowing them to either detect potential problems or completely destroy them from the inside out.
The implications for this type of research could be groundbreaking. Imagine being able to detect and destroy cancerous cells as quickly as they can multiply, or before they even have a chance to cause damage.
This goes beyond cancer, though. Many of the most dangerous diseases and medical conditions could be controlled by using the technological system that resulted from this research.
“There is a range of applications for which this could be important,” said James Collins, professor of Medical Engineering and Science at MIT. “This allows you to readily design constructs that enable a programmed cell to both detect DNA and act on that detection, with a report system and/or a respond system.”
Changing DNA structure
But how does this system work? The key component of the research is a class of proteins called “zinc fingers,” which can bind to DNA segments inside of cells. The great thing about these proteins is that they can recognize the coding of any DNA sequence.
Other smaller types of proteins called “inteins” and “exteins” were also utilized to make the researchers’ system work. Basically, an intein is a short protein that can be inserted into a larger protein chain to split it apart. The two pieces of protein that are left over after this process are exteins.
The full process for how these proteins interact with each other is slightly complex, but the end result produces something that is astonishing. By splitting proteins and using the zinc fingers, scientists were able to make any cell affected with a certain adenovirus glow green. Being able to detect exactly which cells are infected could give medical professionals a wealth of information that they have never had before.
Revealing the troublesome cells is only one part of the process though; the system that the researchers created also allows these cells to be killed off en masse with extreme accuracy. This can be accomplished by programming affected cells with new information via the zinc fingers, inteins, and exteins. Since the new information is programmed at the genetic level, scientists could program bad cells to do anything they wanted.
“Since this is modular, you can potentially evoke any response that you want….You could program the cell to kill itself, or to secrete proteins that would allow the immune cells to fight the infection,” said Shimyn Slomovic, lead author of the team’s paper. These are just two examples, but there many other ways that the cells could be programmed to destroy themselves to prevent spreading of any virus or disease.
More research is needed before this new system can be ready for public use. Researchers are currently testing it to see if it can detect latent HIV proviruses, which often remain dormant in cells even after the disease has been treated. It is possible that these advances could lead to HIV, and diseases like it, being permanently eliminated.
“Latent HIV provirus is pretty much the final barrier to curing AIDS, which currently is incurable simply because the provirus sequence is there, dormant, and there aren’t any ways to eradicate it,” said Slomovic.
But even though the system is not yet ready for extensive use, the researchers believe that it can still be an invaluable research tool going forward. Scientists could, for example, use it to study the nature of the genetic structure or how certain diseases like cancer spread and change. The full study has been published in the journal Nature Methods.
New research reveals a way to slow the spread of cancer cells
Shown to be effective for brain cancer, but could lead to breakthroughs for other cancers too09/22/2015ConsumerAffairsBy Christopher Maynard
Recent research has already shown how useful proteins can be when it comes to detecting diseases at the molecular level. Now, scientists from the Universit...
Recent research has already shown how useful proteins can be when it comes to detecting diseases at the molecular level. Now, scientists from the University of Toledo Health Science Campus (UT) and Van Andel Research Institute (VARI) have found a new way that they can be used to stop the spread of a deadly form of brain cancer. When these proteins are activated in the brain, the cancer cells are no longer able to spread to new tissue.
Scientists were able to test these proteins on glioblastoma multiforme (GBM), one of the deadliest forms of brain cancer. There were 22,000 cases of GBM in the U.S. in 2010, with fatalities occurring 15 months after a diagnosis was given, on average. It has been shown to be resistant to many treatments, including surgery, radiation, and chemotherapy.
Slowing the spread of cancer cells
Working on prior research done by Dr. Arthur Alberts, Dr. Kathryn Eisenmann and her colleagues were able to activate a class of proteins called DIAPHs, which were able to stop the spread of cancerous GBM cells in the brain. This was a huge feat, since GBM has been so hard to cure due to its virulent, fast-spreading nature.
“Metastatic tumor cells are like any moving vehicle -- all of the wheels need to be pointed in the right direction when power is applied," said Alberts. "DIAPHs build the structures that hold and point all the wheels moving cells in the right direction. Dr. Eisenmann's data suggests that DIAPH activation or 'agonism' locks all wheels into arbitrary directions, so no matter how hard you push the pedal down, the tumor cells won't move."
This research has the potential to help slow the spread of other types of cancer as well. Researchers have already found that they could take similar steps to slow the growth of tumors in colon cancer, which has claimed the lives of millions worldwide.
“Our hope is this discovery will prove to be an anti-tumor strategy and one that will be safe and effective for patients,” said Eisenmann. The full study has been published in the journal Molecular Biology of the Cell.
Coke launches website to explain its research funding
Soft drink maker has spent $118 million on health-related research since 201009/22/2015ConsumerAffairsBy Mark Huffman
After coming under fire for its financial support of obesity-related research, Coca-Cola has launched a website allowing the public to see how much the com...
After coming under fire for its financial support of obesity-related research, Coca-Cola has launched a website allowing the public to see how much the company has spent and where the money has gone.
Coke said the website is its first step toward full transparency on the issue of health-related research.
According to the data, Coke has spent more than $118 million since 2010 to fund health research and to support health and fitness partnerships in the U.S. The soft drink giant has been accused of supporting researchers it knew to be skeptical of modern food and beverage's roles in the rising in obesity.
The issue came to light after The New York Times reported on Coke's financial support of a group called the Global Energy Balance Network, which advocates exercise over diet as a means of weight control.
Best of intentions
“Our engagement and financial support of these well-respected experts, institutions and organizations were made with the best of intentions – to inform our business, support our local communities and support solutions to the public health issues facing people across the United States and around the world,” Sandy Douglas, President of Coca-Cola North America, wrote in a statement on the website.
Douglas said he hoped consumers would use the website to learn about the research, initiatives and programs Coke has supported.
On the site, Coke said it funds research “to explore issues that have been raised about our products and to increase knowledge relating to obesity.” It insists the funding went to independent and respected professionals and institutions.
The company says recipients of Coke support are expected to conduct research that is factual, transparent, and designed objectively. Researchers, it says, have full control of the study design and execution and the collection, analysis, and interpretation of the data.
“Under no circumstances does The Coca-Cola Company have the right to prevent the publication of research results; nor does the company provide funding conditioned on the outcome of the research,” the statement concludes.
Turning 65? What you should know about Medicare
AARP's Medicare expert releases new book09/22/2015ConsumerAffairsBy Mark Huffman
When you celebrate your 65th birthday, it's a transition to your “golden years.” Even if you're still working, you start thinking about the days when you w...
When you celebrate your 65th birthday, it's a transition to your “golden years.” Even if you're still working, you start thinking about the days when you won't be.
And even if you are still on the job, age 65 marks the time when you transition from private health insurance – if you are fortunate enough to have it – to Medicare, the government's health program for seniors.
As with any government program, Medicare can be confusing for those who are new to it. To help with the transition, AARP's Medicare expert, Patricia Barry, is out with the second edition of her book, Medicare For Dummies. It's offered as a comprehensive guide for navigating Medicare’s often-confusing complexities and helps consumers avoid mistakes that could be costly.
Barry outlines what Medicare covers and what beneficiaries pay, offering some tips along the way for reducing out-of-pocket costs.
Making the right decisions
“This book will help anybody with Medicare get the best out of their coverage and save money,” said Barry. “Medicare For Dummies is especially useful for people who are about to become eligible for the program, because that’s when they need to make the right decisions—out of an array of often confusing options—and avoid pitfalls that could cost them dearly.”
The book also provides some of the basics, including how the program is broken down. Medicare Part A is the hospitalization portion of Medicare, covering you when you are admitted to the hospital. According to Medicare, you usually don't pay a monthly premium for Medicare Part A coverage if you or your spouse paid Medicare taxes while working. This is sometimes called "premium-free Part A."
Medicare Part B works like normal health insurance, covering doctor's visits and routine health care.
Most people pay the Part B premium of $104.90 each month, if you sign up for Part B when you're first eligible.
You pay $147 per year for your Part B deductible. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services, outpatient therapy, and durable medical equipment. Costs for higher income beneficiaries may be higher.
Medicare Part D is the program's prescription drug coverage, which is optional. Many beneficiaries who are healthy and not taking medication often decline this coverage. However, the coverage becomes increasingly expensive for each additional year you wait. If you were to develop a serious illness at age 70, the Part D premiums would be much higher than if you obtained it at age 65.
Medicare doesn't cover all of your medical costs – only about 80%. That's why many recipients purchase a “supplemental” policy that covers the other 20%.
Complicated? Sure. In her book, Barry offers readers advice to get the most from the program while avoiding the pitfalls.
Her advice in a nutshell? Sign up at the right time to avoid lifelong penalties.
But environmental concerns mount over these disposable coffee containers09/22/2015ConsumerAffairsBy Mark Huffman
Single-serve coffee brewing, popularized by Kuerig Green Mountain, is becoming the norm. Not only are these coffeemakers popular in homes, automotive servi...
Uber-like app frees up customers' time, eliminates guesswork09/22/2015ConsumerAffairsBy Truman Lewis
A good way to annoy consumers is to make them sit around half the day waiting for the cable guy, the refrigerator repairman or the anyone else who may or m...
The penny gets a thumbs up
The paper dollar also wins a vote of confidence09/22/2015ConsumerAffairsBy James Limbach
What's a penny worth? Silly question, right? Apparently it's worth quite a bit. That's really the only way you can explain the results of a new Harris Pol...
What's a penny worth? Silly question, right?
Apparently it's worth quite a bit. That's really the only way you can explain the results of a new Harris Poll showing that most people who were asked think the penny should be kept around.
It’s long been suggested in some circles that the penny be abolished and that the nickel be used as our lowest denomination coin. There are a variety of reasons, ranging from the unused pile of them collecting in your car’s cup holder to the fact that at last report, they cost nearly twice as much to make as they’re worth.
But while opposition to abolishing the penny is softening (51%, versus 56% in 2008) and support for the idea is on the rise (29%, compared with 24%), the “nay’s” appear to have it for the time being.
Support not uniform
While majorities oppose dropping the penny from circulation, some groups are more likely than others to support the idea:
- Men are roughly twice as likely as women to favor abolishing the penny (39% vs. 20%).
- Regionally, support for getting rid of the penny is highest in the East and the West (34% each, vs. 27% in the Midwest and 23% in the South)
- Liberals (34%) and Moderates (30%) are more likely than Conservatives (23%) to favor the idea.
- Additionally, those with higher annual household incomes (peaking at 44% of those in households earning $100k+) are far more likely than those with lower incomes to favor the idea (with support lowest among those in households earning under $35k per year, at 19%). Those in $100k+ households are also at least twice as likely as any other income segment to express a preference for a dollar coin (22% vs. 11% or less for all other cohorts).
Dollar bills at issue
There have also been several attempts to replace the $1 bill with a coin, but eight in ten Americans (80%, vs. 76%) prefer it in paper form. As with the penny proposal, the idea of a dollar coin sits better with some groups than with others:
- Men are more than twice as likely as women to indicate they’d prefer a dollar in coin form (19% vs. 7%).
- Westerners (18%) are most likely to support the idea of a $1 coin (vs. 12% in the Midwest, 11% in the East and 10% in the South).
- Urbanites (17%) are more likely than their Suburban (12%) or Rural (11%) counterparts to prefer a coin.
Gas in five state averages less than $2 a gallon
But prices remain over $3 a gallon in California and Alaska09/22/2015ConsumerAffairsBy Mark Huffman
It's a measure of how far gasoline prices have fallen in less than a year that fuel at $2.50 a gallon seems a bit high.The national average, according ...
It's a measure of how far gasoline prices have fallen in less than a year that fuel at $2.50 a gallon seems a bit high.
The national average, according to AAA's Fuel Gauge Survey, is now $2.28 a gallon, more than a dollar cheaper than at this time last year. Remarkably, the average price has dipped below the $2 a gallon benchmark in five states:
- South Carolina - $1.90
- Mississippi - $1.93
- Alabama - $1.95
- Tennessee - $1.98
- Louisana - $1.99
At the same time, it appears as though several other states are poised to join the sub-$2 club. New Jersey, Virginia, Texas, and Arkansas all have average gasoline prices below $2.05 a gallon.
Lowest since 2004
At the other end of the scale, California and Alaska are the only two states to still have average gasoline prices above $3 a gallon. But those are the exception, as most states are enjoying the lowest seasonal gasoline prices since 2004.
AAA says the national average has dropped for 36 consecutive days for a total savings of 38 cents per gallon during that time. The savings at the pump are largely due to the relatively low price of crude oil and abundant petroleum supplies.
It's helped that there have only been a few significant refinery issues in the last few weeks. This, and the end of the summer driving season, has reduced demand somewhat. With no regional supply bottlenecks to speak of, AAA says pump prices are down in 47 states and Washington, D.C. in comparison to one week ago, with the motorists in the majority of these states saving at least a nickel per gallon.
Midwest remains unpredictable
Drivers in six states are benefiting from double-digit savings in the price of retail gasoline, with the largest discounts over this period seen in Alaska, South Dakota, and California. Meanwhile, prices in three Midwestern states have gone up over the last week.
AAA notes that prices in the Midwest have consistently been among the most volatile in the nation. This week, prices in some of those states are going up while others are going down.
California motorists continue to suffer, in large part, because of a refinery issue. A fire in February at the Exxon Mobile refinery in Torrance, Calif., caused widespread damage that continues to affect output. Even though California fuel prices tend to be among the highest in the nation, they now run about a dollar a gallon more than most states in the southeast, which has an abundance of oil refineries.
Peanut Corporation execs draw prison terms
Feds charge they falsified tests and shipped salmonella-positive peanut products09/22/2015ConsumerAffairsBy Truman Lewis
Three former Peanut Corporation of America executives have been sentenced to prison in connection with a 2009 outbreak of salmonella poisoning that sickene...
Three former Peanut Corporation of America executives have been sentenced to prison in connection with a 2009 outbreak of salmonella poisoning that sickened thousands of people in 46 states and killed nine.
Prosecutors said the executives authorized the shipping of salmonella-positive peanut products and falsified the results of microbiological testing.
- Stewart Parnell, 61, of Lynchburg, Virginia, the former owner and president of PCA, was sentenced by Senior U.S. District Court Judge W. Louis Sands of the Middle District of Georgia to serve 28 years in prison to be followed by three years of supervised release.
- Michael Parnell, 56, of Midlothian, Virginia, who worked at P.P. Sales and was a food broker who worked on behalf of PCA, and is Stewart Parnell’s brother, was sentenced to serve 20 years in prison to be followed by three years of supervised release.
- Mary Wilkerson, 41, of Edison, Georgia, who held various positions at PCA’s Blakely, Georgia, plant including receptionist, office manager and quality assurance manager, was sentenced to serve five years in prison to be followed by two years of supervised release. Judge Sands will issue a restitution order at a later date.
Convicted in 2014
The Parnell brothers were convicted by a federal jury on Sept. 19, 2014, of multiple counts of conspiracy, mail and wire fraud, and the sale of misbranded food. Stewart Parnell was also convicted of the introduction of adulterated food into interstate commerce. Stewart Parnell and Mary Wilkerson were also convicted of obstruction of justice. Stewart Parnell was found guilty of all but one of the 68 felony counts with which he was charged on Feb. 15, 2013.
“Americans should be able to trust that the food we buy for ourselves and our families is safe,” said Acting Associate Attorney General Stuart F. Delery. “The sentences handed down today to officials associated with the Peanut Corporation of America demonstrate the consequences for those whose criminal actions threaten that trust by introducing contaminated food into the marketplace."
Expert evidence at trial showed that tainted food led to a salmonella outbreak in 2009 with more than 700 reported cases of salmonella poisoning in 46 states. According to the Centers for Disease Control and Prevention (CDC), based on epidemiological projections, that number translates to more than 22,000 total cases including nine deaths.
Testimony at trial indicated that the defendants misled customers about the presence of salmonella in their products. For example, the Parnells, Lightsey, and Kilgore fabricated certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including test results concerning the presence or absence of pathogens in food.
According to the evidence, on several occasions, the Parnells, Lightsey, and Kilgore participated in a scheme to fabricate COAs that stated that the food at issue was free of pathogens when in fact there had been no testing of the food or tests had revealed the presence of pathogens.
Home prices increase accelerates in July
Prices are still below the peaks they hit prior to the housing meltdown09/22/2015ConsumerAffairsBy James Limbach
Housing prices continued their increase in mid-summer. According to the Federal Housing Finance Agency (FHFA), the House Price Index (HPI) for July was up...
Housing prices continued their increase in mid-summer.
According to the Federal Housing Finance Agency (FHFA), the House Price Index (HPI) for July was up 0.6% on a seasonally adjusted basis from the previous month.
From July 2014 to July 2015, house prices were up 5.8%. The HPI is now 1.1% below its March 2007 peak and roughly the same as the November 2006 index level.
For the nine census divisions, seasonally adjusted month-over-month price changes ranged from -1.2% in the New England division to +1.6% in the Mountain division.
The year-over-year changes were all positive, ranging from +2.1% in the New England division to +9.4% in the Mountain division.
The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.
The complete HPI report is available on the FHFA website.
TOP SAFETY PICK award for Ford Edge
Occupant protection is improved in small overlap front crashes09/22/2015ConsumerAffairsBy James Limbach
The Insurance Institute for Highway Safety (IIHS) has named the redesigned 2015 Ford Edge as a recipient of its TOP SAFETY PICK award. The midsize SUV rec...
The Insurance Institute for Highway Safety (IIHS) has named the redesigned 2015 Ford Edge as a recipient of its TOP SAFETY PICK award.
The midsize SUV received good ratings for crash protection in four of five IIHS evaluations and an acceptable rating in the challenging small overlap front crash test. It also has an optional basic-rated front crash prevention system.
This is the first time the Institute has evaluated the Edge in the small overlap front test. Like the previous generation of the Edge, the 2015 model earns good ratings for occupant protection in the moderate overlap front, side, roof strength, and head restraint evaluations.
Ford reinforced the door-hinge pillar on models built after May 2015 to improve occupant protection in small overlap front crashes. The driver space held up reasonably well in the small overlap test, according to IIHS, with maximum intrusion of five inches in the driver’s seating space measured at the upper hinge pillar.
The dummy’s movement was reasonably controlled. The head was largely protected by the frontal and side curtain airbags, but the safety belt allowed the head and torso to move too far forward toward the intruding A-pillar. Measures taken from the dummy indicate a low risk of any significant injuries in a crash of this severity.
To qualify for a 2015 TOP SAFETY PICK, vehicles must earn good ratings in the moderate overlap front, side, roof strength, and head restraint tests, plus a good or acceptable rating in the small overlap test.
For TOP SAFETY PICK+, vehicles also need an available front crash system with an advanced or superior rating. The Edge doesn’t qualify for the “plus” award because it doesn’t have a front crash prevention system equipped with automatic braking.
IIHS plans to raise the bar to earn a 2016 TOP SAFETY PICK, requiring a good small overlap rating. Vehicles with an acceptable rating such as the Edge will need further improvements to qualify for the 2016 honor.
Mortgage rates show little change in mid-September
Speculation about an interest rate hike wasn't much of a factor09/22/2015ConsumerAffairsBy James Limbach
Mortgage rates inched higher last week belying any nervousness about the Federal Reserve's interest rate deliberations. Freddie Mac's Primary Mortgage Mar...
Mortgage rates inched higher last week belying any nervousness about the Federal Reserve's interest rate deliberations.
Freddie Mac's Primary Mortgage Market Survey put the average 30-year fixed-rate mortgage (FRM) at 3.91%, up one basis point from last week's average of 3.90%. The 30-year FRM averaged 4.23 percent at the same time last year.
The 15-year FRM averaged 3.11 percent versus last week's 3.10%. A year ago at this time, the 15-year FRM averaged 3.37%.
The average for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was up one basis point from last week to 2.92%; it was 3.06% a year ago.
The 1-year Treasury-indexed ARM average dropped from 2.63% to 2.56%. At this time last year, the 1-year ARM averaged 2.43%.
"The Treasury market was relatively quiet this week, and as a result the 30-year mortgage rate barely budged,” said Freddie Mac Chief Economist Sean Becketti. “We're still on track for the best year of home sales since 2007,” he added, noting that Freddie Mac “is keenly aware though that any rate increase will have a larger impact on low-to-moderate income families looking to finance a home purchase."
Mortgage rates as tracked by Bankrate.com also came in slightly higher for the week.
The 30-year FRM was up one basis point to 4.06%, the 15-year FRM rose from 3.23% to 3.25% and the 5/1 ARM jumped four basis points to 3.28%.
With financial markets settling down from the jitters of the past few weeks, the demand for the safety of U.S. government bonds eased somewhat, with yields moving higher, according to Bankrate. Mortgage rates are closely related to the yields on long-term Treasury securities. With or without a Fed interest rate hike, the context of low inflation and weak global economic growth seems likely to temper any movement in mortgage rates in the near-term.
At the current average 30-year fixed mortgage rate of 4.06%, the monthly payment on a $200,000 loan is $961.76.
Picnic Gourmet Spreads recalls yogurt cheese spreads
The products may be contaminated with Listeria monocytogenes09/22/2015ConsumerAffairsBy James Limbach
Picnic Gourmet Spreads is recalling its yogurt cheese spreads. The products may be contaminated with Listeria monocytogenes. No illnesses have been repo...
Picnic Gourmet Spreads is recalling its yogurt cheese spreads.
The products may be contaminated with Listeria monocytogenes.
No illnesses have been reported to date in connection with any of these products.
The recalled products include:
- Red Pepper Feta Cheese Spread,
- Moroccan Cilantro Cheese Spread,
- Tandoori Garlic Cheese spread,
- Herbed Goat Cheese,
- Parmesan Cheese Spread and
- Chipotle Sage Cheese Spread.
The products, distributed to retail stores in Maryland, Kentucky, New Jersey, Ohio, Pennsylvania, Virginia, Washington, D.C. , Minnesota and Illinois, have a "Best By" date of October 6th.
Customers who purchased any of these products should dispose of them immediately.
Consumers with questions may contact Picnic Gourmet Spreads at email@example.com
VW apologizes, stops sales of diesel models in U.S.
Dirty diesel scandal leaves Volkswagen owners feeling outraged and betrayed09/21/2015ConsumerAffairsBy James R. Hood
Volkswagen has apologized and suspended sales of its "clean diesel" cars in the U.S. after federal and California officials charged the cars were clean onl...
Volkswagen has apologized and suspended sales of its "clean diesel" cars in the U.S. after federal and California officials charged the cars were clean only when hooked up to emissions testing devices and dirty the rest of the time.
Whether an apology will be enough to placate outraged VW owners is doubtful. "I am furious at Volkswagon for intentionally lying to me. I want to return my 2010 to Volkswagen for a full refund," said photographer and VW owner Joshua Ets-Hokin in a Facebook comment.
"This is almost unbelievable," said Daryl Allen, a semi-retired engineering graduate of the Masschusetts Institute of Technology, expressing the disbelief with which many VW fans greeted the news.
"Wow, how shady and deceptive from a company that claims to be so environmental!" said another Facebook commenter, J'On Bradley, a heavy equipment operator.
Volkswagen, revered by many consumers for turning out precision-engineered high-tech cars at modest prices, has for years promoted its TDI turbodiesels as a clean and efficient alternative to hybrids so the news that the cars allegedly put out 40 times the allowed levels of diesel pollution left many of its most loyal customers dismayed and bitterly disillusioned.
Consumers immediately began complaining that their cars would lose much of their resale value and class-action lawyers were expected to be close behind.
VW itself seemed taken aback by Friday's announcement by the Environmental Protection Agency but finally managed to get out a brief statement attributed to its CEO on Sunday.
It's estimated that about 482,000 of the cars were manufactured and sold -- and are still on the road -- leaving owners of those vehicles waiting for the next shoe to drop.
It is a near certainty that VW will recall the cars to remove the allegedly illegal software that deceives emission inspection stations but whether it will be able to bring the cars into compliance with clean-air regulations without hampering their performance and gas-mileage is not known.
Damage to the brand
Volkswagen faces up to $18 billion in fines and could be criminally prosecuted. But even more severe than any legal penalty may be the damage done to VW's brand.
The dirty diesel scandal is bringing forth a wave of other complaints from VW customers, many of them having to do with excessive oil consumption in gas engines, a complaint VW shares with some other German cars.
A VW owner named Mike contacted us shortly after the diesel story broke, complaining that his gas-powered Tiguan -- Volkswagen's popular small SUV -- is constantly "upshifting" in an apparent effort to improve gas mileage.
"On a level surface at normal acceleration it shifts into 5th gear (1st overdrive) at 27 mph and 6th gear (2nd overdrive) at 32 mph. That means on normal neighborhood driving you are in 6th gear and can make milkshakes most of the way," Mike said.
"I'm far from a mechanic but do know enough to know if you consistently lug an engine you'll rip the bottom out of it before long. Along the way you'll start to burn large amounts of oil before the rings blow," Mike said. "I've got no way to know when I'm going to wind up with a blown engine but I'm certain after speaking to many mechanics about lugging it's just a matter of time."
Slow Sport mode
A ConsumerAffairs staff member who drives a Tiguan said he shifts into the "Sport" mode when driving around town. It makes for a jerky ride and wastes gas but keeps the RPMs up, he said, thus avoiding the "lugging" issue. He tells his wife to do the same, telling her the "S" stands for "Slow."
Mike's comments are similar to those made a few years ago by Pete, a Fairfax, Va., mechanic who specialized in old Alfa Romeos, which burn oil like a furnace. That's not unusual in cars from the 1970s but Pete said it was completely unacceptable in newer cars and flatly recommended that his customers replace their VWs with Japanese cars.
Pete's advice may have gone a little far but sadly, the ConsumerAffairs database has many complaints from VW owners complaining of engine failure related to low oil levels.
"At 48,000 engine blew. VW of Springfield said we had not changed oil frequently enough (we changed it more often than required/necessary but I could not find one receipt!)," said Ernie of El Dorado Springs, Mo., speaking of his Volkswagen Toureg.
For those not yet ready to take Pete's advice, it's a good idea to manually check the oil level at least weekly.
Physicians say something isn't right when patients can't afford to fill prescriptions09/21/2015ConsumerAffairsBy Mark Huffman
More and more, doctors are speaking out about rapidly rising drug prices. According to a number of concerned physicians, the costs of some common prescript...
They're mostly in the west and in rural areas09/21/2015ConsumerAffairsBy Mark Huffman
In spite of decades of public service campaigns and consciousness raising about the dangers of drunk driving, auto accidents involving alcohol are extremel...
Comcast settles privacy breach with California
State acted after unlisted numbers were published online09/21/2015ConsumerAffairsBy Mark Huffman
Comcast has entered into a settlement with the state of California to resolve allegations that it posted the names, phone numbers, and addresses of tens of...
Comcast has entered into a settlement with the state of California to resolve allegations that it posted the names, phone numbers, and addresses of tens of thousands of customers online who had paid for unlisted voice over internet protocol (“VOIP”) phone service.
As part of the settlement, Comcast will pay $25 million in penalties and investigative costs to the California Department of Justice and the California Public Utilities Commission. The company will also pay about $10 million in restitution to consumers whose numbers were disclosed.
“Troubling breach of privacy”
“Publishing personal information that should have been unlisted is unlawful and a troubling breach of privacy,” said California Attorney General Kamala Harris. “This settlement provides meaningful relief to victims, brings greater transparency to Comcast’s privacy practices and sends a message that violations of consumers’ privacy will result in significant penalties.”
In Alameda Superior Court, Comcast agreed to a permanent injunction that requires it to improve its customer complaint process and strengthen the restrictions it places on its vendors’ use of personal information about customers.
The settlement will also result in a new simple and easy-to-read disclosure form that all Comcast customers will have access to. It will explain the ways in which the company uses unlisted phone numbers and other personal information.
More than privacy is at stake. Customers paid extra to have their telephone numbers unlisted, a service that ultimately was not provided.
To resolve that complaint, Comcast has agreed to refund all fees paid for unlisted service by the roughly 75,000 customers whose information was improperly disclosed over a two-year period.
Harris estimates that comes to about $2 million. An additional $100 in restitution per customer brings the total to nearly $10 million.
According to court documents, existing Comcast customers will receive their restitution payment as a credit on an upcoming telephone bill. Consumers who no longer have Comcast service will receive their restitution payments by mail, sent to their last known address.
Westgate Resorts asks Supreme Court for a review
The giant timeshare company lost a consumer lawsuit challenging its sales practices09/21/2015ConsumerAffairsBy James R. Hood
Westgate Lakes Resort, Orlando (Photo: Westgate Resorts)Timeshare operator Westgate Resorts is asking the Supreme Court to review a recent court ruli...
Timeshare operator Westgate Resorts is asking the Supreme Court to review a recent court ruling that slapped it with a $500,000 judgment for what a Tennessee judge called "intentional and fraudulent conduct."
Westgate is headed by real estate magnate David Siegel, whose quest to build a massive 90,000-square-foot home modeled on the Palace of Versailles was the subject of a TV documentary.
In the Tennessee case, timeshare buyers Nathan and Patricia Overton accused Westgate salespeople of using "high-pressure tactics" and making promises that turned out to be untrue during an eight-hour sales pitch.
The Overtons purchased a timeshare unit in Gatlinburg, Tenn., in 2011 for slightly less than $40,000 and said they were promised they would be able to use additional nights at other Westgate resorts for only $59 more per night, the Orlando Sentinel reported. But when they tried to book those nights, they were told they didn't qualify, according to court testimony.
Similar to others
The Overtons' complaint is similar to ConsumerAffairs reviews posted by other Westgate owners.
"We have been owners at Westgate Smoky Mountain Resort in Gatlinburg since 2004. This past visit was one of the worst, but we have rarely had a good experience with getting reservations when and where we wanted them," said Anita of Brandon, Miss. "There are always a set of changing rules about what can be booked, splitting weeks, banking days. ... Westgate staff has misrepresented over and over and over."
Westgate lost the case at trial and was also turned down at the state appellate level despite its argument that the treatment the Overtons received was "an isolated foul-up," as company attorney Michael Marder put it.
Outdated offering statement
The Overtons also said they were given a copy of Westgate's Public Offering Statement on a CD but that it was an old statement from 2006 and did not have amendments made after that time.
Since the court ruling in April, lawyers in Tennessee have been reported to be looking for additional clients and observers quoted by the Sentinal speculated Westgate was seeking the Supreme Court review because it feared additional lawsuits.
Florida, home to much of the timeshare industry, adopted new laws this summer that tighten regulation of timeshare sales.
Facebook adds an easier opt-out tool for targeted ads
You'll see just as many ads if you opt out but they won't be targeted09/21/2015ConsumerAffairsBy Truman Lewis
Facebook is adding a feature that makes it easier to opt out of ads that are targeted from data gathered through the "Like" and "Share" buttons that are sc...
Facebook is adding a feature that makes it easier to opt out of ads that are targeted from data gathered through the "Like" and "Share" buttons that are scattered far and wide on the Internet -- just as it said it would when it started gathering that information.
After all, Facebook already knows an awful lot about the 1.49 billion people who use it each month, and gathering information about what we do when we're not on Facebook is just part of it.
Although Facebook has been collecting the information for quite awhile, it hasn't started using it to target ads but plans to do so next month.
Just to be clear, what we're talking about here are the Like and Share buttons that are on just about every commercial website -- not the ones that are on Facebook itself. If, for example, you're on a site for pet enthusiasts and you click the Like button for a story about dog safety seats, you may see ads for the seats next time you're on Facebook and the other sites where Facebook places ads.
Why would you care?
Ads are relatively harmless, although the ones that block out the entire screen or trigger autoplay videos can be extremely annoying. But some people just don't like to feel they're being constantly measured, followed, profiled, and generally sized up. Also, they may have certain, shall we say, sensitive interests they'd just as soon not be reminded of.
Facebook's new process is supposed to make it easier to make your preferences known.
Previously, opting out of behavioral tracking from external activities required clicking on a link that directed you to a page run by the Digital Advertising Alliance, which manages the industry's self-regulatory AdChoices program.
Making the choice on Facebook's site is a little simpler. Here's how it works:
Open the account settings section, using the "More" tab in Facebook's mobile app or the arrow in the top right corner on the desktop site. Then click the "ads" tab, which will display the new opt-out tool.
Facebook said it doesn't plan to make any explicit notification to users other than a company blog post tomorrow, Advertising Age reported.
Remember, opting out of the targeted ads doesn't mean you will see fewer ads, it just means they won't be targeted, which may make them less useful.
Hackers gnaw into the core of the Apple Store
Many popular apps may be infected; users should download newer versions09/21/2015ConsumerAffairsBy Truman Lewis
Apple's App Store defenses have at last been breached. The company confirms that a tool used by developers was copied and modified by hackers, allowing the...
Apple's App Store defenses have at last been breached. The company confirms that a tool used by developers was copied and modified by hackers, allowing them to insert bad code into apps at the store.
Researchers at Palo Alto Networks said in a blog posting that about 40 apps had been contaminated with malware, dubbed XcodeGhost. A Chinese security firm said it had found more than 300.
The infected apps include the messaging app WeChat and the business car scanner CamCard.
Apple has removed all of the infected apps that have been identified so far and is working to assess the damage, according to a spokesperson.
The Palo Alto researchers said that once the malicious code can go to websites hosting viruses, which are then installed on the user's Apple device. It can also open pop-up screens that probe for personal user information, including passwords to their Apple account.
Once the infected apps are downloaded, researchers said, the malicious code can open particular websites designed to infect the device with more viruses. It can also open innocuous-looking pop-up screens that ask users for more information, like passwords to their Apple account.
“Since the dialogue is a prompt from the running application, the victim may trust it and input a password without suspecting foul play,” Palo Alto Networks said in its blog post.
A partial list of apps that may be infected was published by BusinessInsider and other sites. In some cases, only the most recent versions are infected and not all language versions are infected.
- Angry Birds 2
- Card Safe
- China Unicom Mobile Office
- CITIC Bank move card space
- Didi Chuxing developed by Uber’s biggest rival in China Didi Kuaidi
- Eyes Wide
- Freedom Battle
- High German map
- Hot stock market
- I called MT
- I called MT 2
- IFlyTek input
- Jane book
- Lazy weekend
- Mara Mara
- Marital bed
- Medicine to force
- Micro Channel
- Microblogging camera
- Pocket billing
- Poor tour
- Quick asked the doctor
- Railway 12306 the only official app used for buying train tickets in China
- Stocks open class
- Telephone attribution assistant
- The driver drops
- The Kitchen
- Three new board
- Watercress reading
If you have any of these apps isntalled, the safest course is to delete them and download a new version from the App Store when it becomes available.
City of Cleveland incurs wrath of FAA
The “Mistake by the Lake” is accused of running an unsafe airport09/21/2015ConsumerAffairsBy James Limbach
The Federal Aviation Administration (FAA) claims the City of Cleveland failed to meet FAA requirements for maintaining a safe airport during winter weather...
The Federal Aviation Administration (FAA) claims the City of Cleveland failed to meet FAA requirements for maintaining a safe airport during winter weather. And, if the agency gets its way, it'll cost Cleveland big: $735,000 in civil penalties.
“Snow and ice removal at our nation’s airports is a critical safety issue,” said FAA Administrator Michael Huerta. “We require airports to effectively manage this important responsibility.”
The FAA says that over a 15-month period ending in March 2015, managers at Cleveland Hopkins International Airport failed on numerous occasions to keep the airport’s runways and taxiways safe and clear of snow and ice. Federal Aviation Regulations require airports with commercial service to have sufficient and qualified personnel to carry out their snow and ice control plans during severe weather.
Three violations alleged
Between Dec. 30, 2013 and Feb. 25, 2014, the FAA began three separate investigations into the airport’s alleged failure to comply with regulations:
- Early in the morning of December 30, 2013, two commercial aircraft were disabled on taxiways because of unsafe braking conditions. Regulations require airport personnel to monitor conditions and close any pavement areas that are unsafe. Freezing rain and drizzle had been falling for more than two hours when the airport allegedly dismissed its maintenance staff at 11 p.m. the previous evening. No airport personnel were on duty to operate snow-removal and de-icing equipment after the two passenger flights landed.
- On January 18, 2014, an Aircraft Rescue and Fire Fighting vehicle slid on ice during a training exercise and was unable to stop before crossing a line that marked the entrance to a runway. An aircraft had just begun its takeoff roll on that runway, resulting in a runway incursion. The aircraft departed safely.
- On February 25, 2014, airport management allegedly failed to follow the approved snow and ice control plan, resulting in unsafe conditions on the airfield. The airport was closed after one pilot reported poor to non-existent braking conditions.
Still missing the mark
After initiating those investigations, the FAA worked with airport management to update Cleveland’s snow and ice control plan. This included establishing new procedures and adjusting schedules to ensure that sufficient personnel were available to respond to inclement weather.
On March 1, 2015, icy conditions prevented an air carrier from quickly exiting the runway. Controllers subsequently canceled the takeoff clearance for one flight and told the captain of another flight on final approach to go around.
During this investigation, the FAA found that, even under the updated policy, airport management allegedly had failed on 19 separate days between Jan. 5 and March 1 to have the required number of maintenance and airport operations personnel on duty.
The city has 30 days from receipt of the FAA’s enforcement letter to respond.
Minions and “Star Wars” character costumes are the biggies09/21/2015ConsumerAffairsBy James Limbach
Hollywood and pop culture are having a big impact again this year on how adults and their children decide to dress for Halloween. The National Retail Fede...
How to reduce prolonged sitting
It can be as simple as keeping a log of your daily activities09/21/2015ConsumerAffairsBy Truman Lewis
It's now commonly accepted that prolonged sitting isn't good for you. It contributes to cancer, diabetes, heart disease and early death, among other things...
It's now commonly accepted that prolonged sitting isn't good for you. It contributes to cancer, diabetes, heart disease and early death, among other things.
So how to avoid it? It seems pretty obvious -- get up and move around. But that doesn't really answer the question of which anti-sitting strategies are the most effective, so researchers led by the Institute of Psychiatry, Psychology & Neuroscience (IoPPN) at King's College London took a closer look. Their findings are published in the journal Health Psychology Review.
The study found that increasing levels of physical activity is likely to be much less effective at reducing prolonged sitting than directly attempting to decrease sitting time.
The researchers looked at 38 interventions and found that a majority (60%) were promising while 39% were not.
Some of the promising interventions included:
- the provision of sit-stand desks at work,
- encouraging people to keep records of their own sitting time,
- setting individual goals for limiting sitting time, and
- using prompts and cues to remind people to stop them sitting
All were also found to help reduce sitting time, even when used in isolation. In addition, effective interventions tended to educate people about the health benefits of reducing their sitting time.
The findings are primarily aimed at employers and public health officials trying to reduce sitting time in large populations, but research team leader Dr. Benjamin Gardner says they can also be used by individuals.
"The findings should also be of interest to anyone looking to improve their health by reducing their own sitting time in their day-to-day lives, as many of these interventions can be adopted on an individual level," Gardner said.
Survey finds growing employer support for minimum wage hike
How much is enough?09/21/2015ConsumerAffairsBy James Limbach
A strong majority of employers supports an increase in the minimum wage, according to a new survey by CareerBuilder http://www.careerbuilder.com/?sc_cmp2=j...
A strong majority of employers support an increase in the minimum wage, according to a new survey by CareerBuilder.
Sixty-four percent of employers responding to the survey say they think the minimum wage should be increased in their state -- up 2% who said so last year.
“Americans’ wages have been stuck in a slow-growth pattern since the recession,” said Rosemary Haefner, chief human resources officer at CareerBuilder. “As big name brands take measures to increase pay for minimum wage workers and the market overall grows more competitive for skilled labor, employers are going to start feeling more wage pressure when trying to attract and retain employees at all levels within the organization.”
The national online survey, conducted on behalf by Harris Poll between May 14 and June 3, 2015, included a representative sample of 2,321 full-time hiring and human resource managers and 3,039 full-time workers in the private sector across industries and company sizes.
What is fair?
Twenty-six percent of employers said they plan to hire minimum wage workers this year. Just 6% of all employers believe the federal minimum wage ($7.25 per hour) is fair. Sixty-one percent said a fair minimum wage is $10 or more per hour, versus 54% who said that last year. Eleven percent said a fair minimum wage is $15 or more per hour, compared with 7% last year.
Is it enough?
Of workers who currently have a minimum wage job or have held one in the past, 65% said they couldn’t make ends meet; another 49% said they had to work more than one job to make ends meet.
But it’s not just minimum wage workers who are struggling. Nineteen percent of workers at all salary levels claimed they were unable to make ends meet during the past year. Sixty-five percent of all workers say they’re in debt and, while most say it’s manageable, it should be noted that 16% of workers ages 25-34 still live with their parents. Eighteen percent of all workers have reduced their 401k contribution and/or personal savings in the last year and 28% don’t set aside any savings each month.
New legislation seeks to upgrade infrastructure of water systems across the U.S.
Giving more water system options to small communities will reduce cost to taxpayers09/21/2015ConsumerAffairsBy Christopher Maynard
Depending on where you live in the United States, your water bill can vary greatly. Cities and larger communities, for example, have water infrastructure i...
Depending on where you live in the United States, your water bill can vary greatly. Cities and larger communities, for example, have water infrastructure in place that can deliver water to their citizens in an effective manner; this makes their water prices more manageable. This contrasts greatly with people in rural areas; because people are more spread out, building and maintaining a water system is much more expensive. This increased cost affects millions of people across the country.
Luckily, a solution to this problem has been introduced to the House of Representatives by Rep. Richard Hanna (R-NY) and Rep. Jim Cooper (D-TN). Their bill is called the “Water Systems Cost Savings Act”, a proposal that aims to provide rural areas with cost-effective alternatives to accessing clean, high quality water. By adding options like water-well systems to areas that don’t have them, Hanna and Cooper believe that their bill will reduce federal, state, and local costs for providing water services.
"Traditional municipal water systems don't work in every community, or are prohibitively expensive," said Hanna. "Fortunately, there are other options. Communities seeking federal assistance to upgrade their water infrastructure should be given the most comprehensive information possible so that they can build the most appropriate and cost-effective system that best meets their unique needs.”
One of the great things about the bill is that it will not only help citizens who benefit from the upgraded infrastructure. With its passing, all citizens will see their tax dollars going towards other projects that will help their communities. “This bill will encourage cost-effective alternatives that will save taxpayer dollars and free up resources to reduce the growing backlog of clean water infrastructure needs,” said Hanna.
A recent survey given by the Environmental Protection Agency (EPA) found that funding for water infrastructure in smaller communities was down $64 billion across the country. The new proposal intends to give programs to agencies like the EPA and USDA (United States Department of Agriculture) that will inform smaller communities about more cost-efficient water options.
Many proponents applaud the bill for its focus on water well systems, which are a much more realistic and optimal choice for small communities. “The effectiveness of water wells as a reliable, low-cost way to provide access to safe drinking water has been proven in projects across the nation that have realized costs savings of as much as 94% over conventional drinking water systems,” said Margaret Martens, Executive Director of the Water Systems Council. “This legislation is a win for rural America and for the American taxpayer.”
Sales of previously-owned homes dip in August
Last month's decline was spread across the U.S.09/21/2015ConsumerAffairsBy James Limbach
Despite a slowdown in price growth, sales of existing homes fell in August following three consecutive monthly gains. The National Association of Realtors...
Despite a slowdown in price growth, sales of existing homes fell in August following three consecutive monthly gains.
The National Association of Realtors reports total existing–home sales -- completed transactions that include single–family homes, townhomes, condominiums and co–ops -- fell 4.8% last month to a seasonally adjusted annual rate of 5.31 million. Sales were down in August in all four major regions.
Even with the August decline, sales posted a year–over–year advance of 6.2% and have been up year-over year for 11 straight months.
Tight inventories blamed
"Sales activity was down in many parts of the country last month -- especially in the South and West -- as the persistent summer theme of tight inventory levels likely deterred some buyers," said NAR Chief Economist Lawrence Yun. "The good news for the housing market is that price appreciation the last two months has started to moderate from the unhealthier rate of growth seen earlier this year."
Total housing inventory at the end last month rose 1.3%% to 2.29 million existing homes available for sale, but it is 1.7% lower than a year ago (2.33 million). Unsold inventory is at a 5.2–month supply at the current sales pace, compared with 4.9 months in July.
The median existing–home price for all housing types was $228,700 in August, 4.7% above the same time last year ($218,400). That increase marks the 42nd consecutive month of year–over–year gains.
"With sales and overall demand higher than a year ago and supply mostly unchanged, low inventories will likely continue to limit options for those looking to buy this fall even with the overall pool of buyers shrinking because of seasonal factors," Yun added.
The percent share of first–time buyers jumped to 32% in August from 28% in July, matching the highest share of the year set in May. A year ago, first–time buyers represented 29% of all buyers.
- Existing–home sales in the Northeast were unchanged in August an annual rate of 700,000, but were 6.1% above a year ago. The median price in the was $271,600, a year-over-year gain of 2.4%. The median is the point at which half the prices are higher and half are lower.
- In the Midwest, sales were down 1.5% an annual rate of 1.28 million, but were 5.8% above August 2014. The median price was $181,100 -- up 4.0% from a year ago.
- Sales in the South fell 6.6% to an annual rate of 2.14 million, but are still 5.9% above August 2014. The median price in the South was $196,300 -- up 6.0% from a year ago.
- Sales of previously-owned homes in the West plunged 7.8 percent to an annual rate of 1.19 million, but are 7.2 percent above a year ago. The median price rose 7.1% from a year earlier to $321,300.
Authors say intervention with young children offers hope for stemming the tide09/21/2015ConsumerAffairsBy Mark Huffman
America still has a serious weight problem, but if there is a silver lining to the latest State of Obesity report, it's the obesity problem isn't getting m...
EPA charges VW, Audi used software to make their diesels appear cleaner than they really are
VW faces fines of up to $18 billion and possible criminal prosecution09/18/2015ConsumerAffairsBy James R. Hood
The U.S. Environmental Protection Agency is accusing Volkswagen and Audi of using illegal emissions control software to make their diesel-powered cars appe...
The U.S. Environmental Protection Agency is accusing Volkswagen and Audi of using illegal emissions control software to make their diesel-powered cars appear "clean" when in fact they are emitting up to 40 times the allowable diesel pollution.
The company could be fined up to $18 billion and faces criminal prosecution if it is proven that the deception was deliberate. It is also likely to be ordered to recall the cars.
Volkswagen, which has been far behind the curve in hybrid development, sold the cars with the promise that they are nearly as fuel-efficient and environmentally beneficial as hybrids.
"Hybrids aren’t the only game in town. TDI Clean Diesel engines offer up impressive efficiency numbers too. Take the Passat TDI for starters. It can go up to 814 miles uninterrupted. Now that’s a game changer," VW purrs in a page on its website.
The EPA said the software detects when a car is undergoing emissions testing, turns on the full emission controls, then switches them off when the car returns to "real-world" driving patterns.
“Using a defeat device in cars to evade clean air standards is illegal and a threat to public health,” said Cynthia Giles, Assistant Administrator for the Office of Enforcement and Compliance Assurance. “Working closely with the California Air Resources Board, EPA is committed to making sure that all automakers play by the same rules. EPA will continue to investigate these very serious matters.”
Giles said VW initially denied the allegations but has now admitted wrongdoing.
“We expected better from VW.,We take this very seriously,” she said.
The agency said about 482,000 VW and Audi cars were sold with the illegal software from the 2009-2015 model years. The affected vehicles are diesel versions of:
• 2009-15 model year VW Jetta, Beetle, Golf and Audi A3; and
• 2014-15 model year VW Passat.
Besides learning that the cars they thought were helping to clean up the air when they may in fact have been making it much dirtier, owners of the cars are now left to wonder what they will have to do to bring the cars into compliance -- something the already-strict California authorities are also pondering. While the cars are likely to be recalled, owners may still face performance and fuel-economy issues after the fixes are made.
“Working with US EPA we are taking this important step to protect public health thanks to the dogged investigations by our laboratory scientists and staff,” said Air Resources Board Executive Officer Richard Corey.
“Our goal now is to ensure that the affected cars are brought into compliance, to dig more deeply into the extent and implications of Volkswagen’s efforts to cheat on clean air rules, and to take appropriate further action,” Corey said.
Earlier this week, Volkswagen was ordered to pay $1.1 million for failing to promptly notify EPA of a defective oxygen sensor affecting at least 329,000 of their 1999, 2000 and 2001 gas-powered Golfs, Jettas, and New Beetles. It was the largest civil penalty to date for this type of violation.
As part of this settlement, Volkswagen completed a voluntary recall of the affected vehicles at a cost of over $26 million. Vehicles with the defect may release thousands of tons of harmful pollutants including nonmethane hydrocarbons (NMHC) and carbon monoxide (CO).
NMHC are key reactants in the production of ozone, a major contributor to cancer-causing smog. CO impairs breathing and is especially harmful to children, people with asthma, and the elderly, EPA said.
"Reliable and effective automobile pollution control systems are an important part of this nation's air pollution reduction strategy," said Thomas V. Skinner, acting assistant administrator of EPA's Office of Enforcement and Compliance Assurance. "This case demonstrates EPA's commitment to ensuring that automobile manufacturers comply with emissions regulations."
Mobile providers offering more international packages
T-Mobile, Verizon the latest to add countries to roaming coverage09/18/2015ConsumerAffairsBy Mark Huffman
“It's A Small World After All” could be the theme song for cell phone carriers, who increasingly are revamping their service packages to make it easier for...
“It's A Small World After All” could be the theme song for cell phone carriers, who increasingly are revamping their service packages to make it easier for consumers to use their U.S. based cell phones in other countries.
T-Mobile has perhaps been among the most aggressive on that front, announcing this week that it has added 20 more countries and destinations to its Simple Global package. With the expansion, T-Mobile Simple Choice postpaid customers can get unlimited data and texting at no extra cost and calls for 20 cents a minute in a total of 145 countries and destinations worldwide.
The carrier made a point of noting that the Bahamas has been added to the Simple Global list. It says more than two million Americans travel there each year and can now avoid expensive roaming charges.
In the past, shocking bills
International roaming has been a significant consumer irritant until recently. Just a few years ago consumers would routinely return from a European trip and be shocked to find their next cell phone bill was several thousand dollars.
At the time, international mobile operations had almost no operating agreements with one another and several layers of third party providers were often in the equation. With an increase in international travel, most U.S. mobile providers have offered alternatives that have brought down costs.
T-Mobile says its customers have used 140 times more data abroad since 2013. It says global texting is up more than ten-fold and customers are making more than six times as many voice calls.
“We’ve just made your traveling even easier in 20 more destinations around the world, expanding Simple Global to cover all of Europe and all of South America,” said John Legere, president and CEO of T-Mobile.
You can find a complete list of the countries now covered under the plan here.
Verizon's Cuba package
Verizon Wireless, meanwhile, has become the first U.S. carrier to offer a roaming package in Cuba. The company says the roaming service will be available next week to U.S. customers who travel to the island nation through the company's Pay-As-You-Go International Travel option.
"Our customers are citizens of the world, and we want them to seamlessly enjoy a great Verizon experience wherever they travel," said, Javier Farfan, vice president of cultural and segment marketing for Verizon. "By offering international services while traveling in Cuba, we are making it simple and easy for our customers to stay connected wherever and whenever they choose."
Verizon's published rate structure is $2.99 a minute for voice calls, $2.05 per megabyte for data, and standard international messaging rates apply.
It depends on how you file the claim09/18/2015ConsumerAffairsBy Mark Huffman
Other cars and pedestrians aren't the only things drivers have to look out for. This time of year, especially, deer crossing the roadway are a significant ...
Feds provide new mortgage shopping tools
Will guide buyers through the use of new mortgage forms09/18/2015ConsumerAffairsBy Mark Huffman
Since the housing crisis occurred, in part, because consumers purchased homes they couldn't afford, new federal regulations taking effect October 3 are aim...
Since the housing crisis occurred, in part, because consumers purchased homes they couldn't afford, new federal regulations taking effect October 3 are aimed at clearing up any doubt about what future homebuyers can afford and what they can't.
The Consumer Financial Protection Bureau (CFPB) is providing new online tools as part of its Know Before You Owe initiative to provide consumers with more information as they navigate the mortgage process.
Starting October 3, the mortgage industry will begin using the new Know Before You Owe forms. The forms are designed to make it easier for consumers to understand mortgage options and comparison shop between multiple loan offers.
Closing the information gap
“Our new mortgage forms reduce the information gap between lenders and consumers, shedding light on a process that often feels like a mystery,” said CFPB Director Richard Cordray. “It is time consumers have more power in the mortgage process, and our new forms and online tools will help make that a reality.”
Since the housing bubble burst new, more stringent mortgage underwriting standards have had the effect of preventing consumers from buying homes they can't afford. The tighter standards have done the job of screening out consumers who lack the income to purchase a home.
However, that hasn't meant consumers have been more informed as they go through the process. That's where the new forms come in.
The forms in question are those covering the loan estimate and closing disclosure. CFPB says the forms will help consumers to better understand their options, choose the deal that’s best for them, and avoid costly surprises when they get to closing.
The Loan Estimate lists all the details of the mortgage transaction, including the estimated loan and closing costs. It makes possible an apples-to-apples comparison when consumers are considering different loan options.
The Closing Disclosure, which lists details of the final transaction, is sent to consumers at least three business days before closing. Consumers can use that time to make sure they are getting what they expected, ask questions, and negotiate over any changes. The Loan Estimate and Closing Disclosure mirror each other, making it easy to compare estimates with final loan terms.
CFPB has also added new tools to its website to help consumers determine whether owning a home is the right financial step to take. It focuses on the many ownership costs outside of the monthly mortgage payment.
The new “Owning a Home” tools include:
- A guide to the mortgage milestones: a step by step guide through the mortgage processs
- A monthly mortgage payment worksheet: the tools include a monthly payment worksheet that helps homebuyers fit in housing costs with their current debts, savings, living expenses.
- An interactive sample of the new Know Before You Owe mortgage forms: these can help consumers double-check the details of their own transactions and get definitions for terms they may not understand.
Meanwhile, CFPB Executive Director Richard Cordray addressed a National Association of Realtor (NAR) audience this week, defending the new mortgage regulations as vital protections for consumers. He noted that dire predictions about the effect tighter rules would have on the housing market haven't come to pass.
“Sensible regulation that includes substantial consumer protections should foster greater trust by consumers in the financial marketplace,” he said. “If people believe they will be treated fairly rather than becoming victims of predatory lending, they can develop a renewed sense of consumer confidence.”
Are bird feeders the fast food of the bird kingdom?
Feeding birds is a good thing to do but the feeder needs to be cleaned regularly09/18/2015ConsumerAffairsBy Truman Lewis
You may not think of them this way but researchers say bird feeders may be the greasy spoons of the bird world, spreading disease to feathered foodies....
You may not think of them this way but researchers say bird feeders may be the greasy spoons of the bird world, spreading disease to feathered foodies.
An international research team led by Virginia Tech scientists found that wild songbirds that prefer to eat at bird feeders have an increased risk of acquiring a common eye disease. In turn, these birds also spread the disease more quickly to their flock mates.
The researchers found that this feeding preference, rather than its social position in the flock, as previously thought, was more likely to result in a bird contracting the eye disease.
"Our results suggest that in this species, a few individuals -- those that like eating at feeders -- are likely very important in driving disease epidemics," said Dana Hawley, an associate professor of biological sciences at Virginia Tech. "If this is true for other wildlife species as well, we may be able to more effectively reduce disease by targeting these 'high risk' individuals."
The authors monitored the wild flocks of house finches, a common backyard songbird, and the spread of a naturally-occurring bird disease called Mycoplasmal conjunctivitis, which is similar to "pink eye" in humans but cannot be contracted by humans.
In the study, each bird was fitted with a unique chip containing a barcode that automatically recorded each time a bird visited one of the monitored bird feeders over an entire winter. When bar codes from different birds appeared at feeders around the same time, the researchers knew that those two birds were feeding together.
"We expected birds that were more central in the social network, or had more friends, to catch the disease, because previous research has found that this was important for accessing information about where food is located. But, we found instead that it was birds' feeding preferences that were most important," said Damien Farine, a postdoctoral researcher with a joint appointment at the University of Oxford and the University of California-Davis and co-author of the study.
"Understanding which animals become sick, and which individuals are most likely to spread disease, can be critical to conservation," said James Adelman, an assistant professor at Iowa State University, a former postdoctoral researcher at Virginia Tech and co-author of the study.
Feeding birds isn't a bad thing for humans to do, as it helps birds survive the winter. However, the researchers recommend that bird feeders be cleaned and disinfected each time they are refilled to help reduce the likelihood of spreading disease.
The results of the study, funded by the National Science Foundation, were published Wednesday in the journal Proceedings of the Royal Society B.
Shopify hopes to recruit fleeing Amazon Webstore merchants
Amazon is closing the Webstore and Shopify is offering a no-interruption migration09/18/2015ConsumerAffairsBy Truman Lewis
Amazon is planning to close its Webstore, and Shopify says it has struck a deal with Amazon that will let it entice many of the Webstore's small merchants ...
Amazon is planning to close its Webstore, and Shopify says it has struck a deal with Amazon that will let it entice many of the Webstore's small merchants to its platform.
The Webstore allows smaller merchants to sell their goods and services through Amazon's platform, but it has been losing market share to Shopify and other ecommerce sites, leading to Amazon's decision to close it.
The deal with Shopify lets merchants migrate to a Shopify account with no business interruption.
All of this is invisible to consumers, since the merchants' listings will continue to appear on Amazon but will be managed through Shopify rather than Amazon. Consumers will still be able to pay through Amazon's payments gateway and can choose to have Amazon handle fulfillment.
“Both Amazon and Shopify are leaders in ecommerce so it’s a natural fit that we would enable our retailers to seamlessly run their businesses across either platform,” said Harley Finkelstein, Shopify’s Chief Platform Officer. “Many of Shopify’s existing 175,000+ merchants already use Amazon as a sales channel, and this will bridge the gap between our two companies, with just a few simple steps.”
Merchants' listings will also appear on Shopify and other channels.
Delta, American interlining agreement expires
American was sending Delta too many stranded passengers09/18/2015ConsumerAffairsBy Truman Lewis
If your American Airlines flight goes off the rails, don't go looking to Delta for help. The carriers' interlining agreement has expired and Delta is in no...
If your American Airlines flight goes off the rails, don't go looking to Delta for help. The carriers' interlining agreement has expired and Delta is in no hurry to renew it.
"Interlining" is the practice of moving passengers and baggage from one airline to another. The usual assumption is that it will work out more or less evenly for both sides, but Delta says that hasn't been the case. It says American has been sending it five times as many passengers as it sent to American.
It all has to do with flight disruptions. U.S. Transportation Department data finds that nearly 84% of Delta flights were on time last year, compared to 76% of American's. And that, says Delta, means the numbers just don't add up anymore.
"The industry agreement was no longer mutually beneficial,” Delta spokesman Anthony Black said.
The expiration of the agreement means that, besides not handling rebookings for each other, Delta and American will not transfer bags and will not allow you to book travel that includes flight segments on both carriers.
American responded only indirectly to questions from trade publications about the situation, emailing a statement that said:
“While this is a change, it will not affect our commitment to re-accommodate customers during irregular operations,” she wrote. “The new American now has the world’s largest and best network and our team is doing a great job of running a reliable airline."
New York Post invades Chicago, promises "a little more NYC"
Fuhgeddaboudit, you know what I'm sayin'?09/18/2015ConsumerAffairsBy James R. Hood
Chicagoans think their town is pretty much the center of the world. New Yorkers get it confused with Minneapolis. Neither city seems very interested in the...
Chicagoans think their town is pretty much the center of the world. New Yorkers get it confused with Minneapolis. Neither city seems very interested in the other.
But that's not stopping Rupert Murdoch's New York Post from invading Chicago. The irreverent, sometimes tasteless tabloid, is perhaps best known for its classic headline: "Headless Body in Topless Bar." Recent specimens have gone ever farther but cannot be quoted here in case our mothers are reading.
For whatever reason, the Post will go on sale Monday in Chicagoland for $2, the same price it charges in Noo Yawk but double what the Chicago Sun-Times charges.
Maybe it will be worth twice as much because it will have all kinds of hot Chicago news? No, sorry. Sources deep within Murdochland are reported to have revealed that it will just be the same paper distributed in NYC.
Chicago Magazine broke the story of the invasion, headlining it: "Tasteless Newspaper Found in Second City." (Of course, Los Angeles is now the second city, but who's counting).
The Post will join the Sun-Times and RedEye in vying for the attention of commuters stuffed into crowded trains. We're not quite sure how many people ride the rails in Chicago. Metra -- official motto: "The way to really fly" -- says it carried nearly 83 million passengers last year despite lousy weather. (Chicago is one of those places that takes pride in its miserable weather; NYC just ignores it).
These papers are all tabloids, of course, as is the Post. You could only read the Chicago Tribune on the train if your origami skills are unusually advanced.
Cab drivers used to be the Post's target audience, but what with Uber and immigration, the cab driver market isn't what it used to be, so the Post has been looking for entrained commuters wherever it can find them.
You could read the Post at Starbucks, but it just doesn't seem right somehow.
Little more NYC
Post brass aren't saying much. Publisher Jesse Angelo issued what used to be known as a terse statement to Chicago Mag: “The rumors are indeed true. As of next week, the New York Post is coming to Chicago. We wanted the great people of Chicago to have just a little more fun and a little more NYC in their daily media diet.”
The Post is part of Murdoch's News Corp. empire, which includes the Wall Street Journal and used to include Fox News before the company split its dead-tree and digital properties. It also used to own the Sun-Times, Chicago Magazine noted.
Chicago Magazine and RedEye, by the way, are owned by none other than the Tribune.
See, this is why newspapers have so much trouble competing effectively. They're like one of those small Midwestern towns where everybody's related to everybody else. They know each other's weaknesses but think it would be rude to reveal them to others.
Newspaper people also revere the past, the way they do in small towns. Maybe Rupert Murdoch looks at all those trains clattering around Chicago and thinks they're filled with news-hungry commuters wishing they had just one more newspaper.
Last time I was on a subway -- last Thursday, to be exact -- it was filled with people looking at their smartphones. I didn't see many newspapers of any description, tasteless or otherwise.
None of this should be taken to disparage newspapers, three of which land on my driveway each morning. A number that may go to four since, in conducting rigorous research on this story, I discovered that the NY Post offers home delivery in my corner of the D.C. area.
Realtors' message to buyers: don't wait
Housing economist says mortgage rates may rise before the Fed acts09/18/2015ConsumerAffairsBy Mark Huffman
The Federal Reserve is keeping interest rates at 0% for a while longer, and while talking heads on TV argue whether this is the right move or not, one hous...
The Federal Reserve is keeping interest rates at 0% for a while longer, and while talking heads on TV argue whether this is the right move or not, one housing economist warns the mortgage rate reprieve is likely short lived.
Jonathan Smoke, chief economist for Realtor.com, a real estate market site, says rates are going up, it's just a matter of time. And if the market becomes convinced that the rate hike is coming in December, mortgage rates could begin to rise in anticipation.
For would-be homebuyers, he says that means not waiting.
“Those planning to get into the housing market in 2016 may want to consider a home purchase before the end of the 2015,” Smoke said. “When rates go up, not only will monthly mortgage payments increase, that increase will also lessen some buyers’ ability to get approved for a home loan – due to an increased debt to income ratio.”
A half point over 12 months
Mortgage rates can be hard to predict, but Smoke believes there could be a potential increase of 50 basis points over the 12 months following an official move to increase the Federal Funds target rate. Because a December rate hike appears more likely than a September one did, Smoke believes the mortgage market will try to stay out in front of Fed action, meaning mortgage rates could begin to rise before any Fed action is taken.
Smoke has produced models of what kind of impact he thinks a 50 basis point rate increase would look like in the mortgage market. He says it could result in:
- A 6% increase in monthly payments on new mortgages: on a loan of $231,000 it could mean the difference between principal and interest payments of $1,107 and $1,175 a month.
- An additional 7% rejection of mortgage applications: The increase in payments will result in borrowers being able to qualify for less house.
- The average debt-to-income ratio could increase by 4% . Right now that ratio is running at about 35.5%. A 50 basis points rise, and keeping all other factors equal, would send the average debt-to-income ratio to 37%.
The potential impact on borrowers would vary dramatically by geography.
“High cost markets and markets where first-time buyers have been just barely able to qualify this year are most at risk of seeing more failed mortgage applications as a result of higher debt burdens triggered by higher rates,” Smoke said.
Those markets where it would be harder to qualify for a mortgage include Honolulu, HI., Stockton, CA., Fresno, CA., El Paso, TX., and Fort Piece, FL.
Leading Economic Index inches upward in August
Moderate growth is expected to continue09/18/2015ConsumerAffairsBy James Limbach
After showing no movement in July and an 0.6% gain in June, the Conference Board's Leading Economic Index (LEI) posted a tiny increase in August, Accordin...
After showing no movement in July and an 0.6% gain in June, the Conference Board's Leading Economic Index (LEI) posted a tiny increase in August,
According to Ataman Ozyildirim, director of Business Cycles and Growth Research at The Conference Board, the 0.1% advance “suggests economic growth will remain moderate into the New Year, with little reason to expect growth to pick up substantially.
“Average working hours and new orders in manufacturing have been weak,”, he noted, “pointing to more slow growth in the industrial sector. However, employment, personal income and manufacturing and trade sales have all been rising, helping to offset the weakness in industrial production in recent months.”
The LEI is essentially a composite of several indicators. It's constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component -- primarily because they smooth out some of the volatility of individual components.
The ten components of LEI include:
- Average weekly hours, manufacturing
- Average weekly initial claims for unemployment insurance
- Manufacturers’ new orders, consumer goods and materials
- ISM Index of New Orders
- Manufacturers' new orders, nondefense capital goods excluding aircraft orders
- Building permits, new private housing units
- Stock prices, 500 common stocks
- Leading Credit Index
- Interest rate spread, 10-year Treasury bonds less federal funds
- Average consumer expectations for business conditions
IIHS kudos for the Volvo XC90
The SUV aced the front crash prevention test09/18/2015ConsumerAffairsBy James Limbach
Stellar ratings for crash protection and for its standard front crash prevention system have won the redesigned Volvo XC90 the Insurance Institute for High...
Stellar ratings for crash protection and for its standard front crash prevention system have won the redesigned Volvo XC90 the Insurance Institute for Highway Safety's (IIHS) highest award -- TOP SAFETY PICK+.
The previous generation of the midsize luxury SUV also had good ratings across the board for crashworthiness but had no available front crash prevention system.
The 2016 XC90 comes with an upgraded version of Volvo's City Safety feature. A previous version of City Safety -- standard on earlier Volvos, though not the XC90 -- was an automatic braking system that functioned only at low speeds.
The new version also functions at higher speeds. In IIHS track tests at 12 mph and 25 mph, the XC90 avoided collisions. The system also includes a forward collision warning component that meets criteria set by the National Highway Traffic Safety Administration. The vehicle earned the maximum six points from IIHS for a front crash prevention rating of superior.
Strong crashworthiness performance
The SUV earns good ratings in all five of the Institute's crashworthiness tests: small overlap front, moderate overlap front, side, roof strength and head restraints.
In the small overlap test, the most challenging of the IIHS evaluations, the driver space held up very well, with intrusion of less than 2 inches at all measured points in the driver's seating space. The dummy's movement was well-controlled, and the front and side curtain airbags worked well together to protect the head. Measures taken from the dummy showed a low risk of any significant injuries in a crash of this severity.
To qualify for TOP SAFETY PICK, vehicles must earn good ratings in the moderate overlap front, side, roof strength and head restraint tests, plus a good or acceptable rating in the small overlap test.
For TOP SAFETY PICK+, vehicles also need an available front crash system with an advanced or superior rating.
Butala Emporium dietary supplements
The products contain elevated levels of lead and mercury09/18/2015ConsumerAffairsBy James Limbach
Butala Emporium of Jackson Heights, N.Y., is recalling 11 Ayurvedic (dietary) supplements. The products were found to contain elevated lead and mercury le...
Butala Emporium of Jackson Heights, N.Y., is recalling 11 Ayurvedic (dietary) supplements.
The products were found to contain elevated lead and mercury levels which may cause health problems to consumers -- particularly infants, small children, pregnant women and those with underlying kidney disorders if consumed.
The concentration of lead exceeds the recommended daily lead exposure for children less than six years of age and women of childbearing age, and would likely be injurious to health.
No complaints or illnesses have been reported to date.
The following products are being recalled:
- Baidyanath brand Saptamrit Lauh--Batch No. SPL-04, Expiry Date 4/2018
- Baidyanath brand Rajahpravartini Bati--Batch No. RAJ-15 0 & 126, Expiry Date 1/2019 & 07/2016
- Baidyanath brand Sarivadi Bati--Batch No. SRI-09, Expiry Date 04/2018
- Baidyanath brand Shankh Bati--Batch No. SHN-02, Expiry Date 08/2018
- Baidyanath brand Marichyadi Bati--Batch No. 200, Expiry Date 08/2017
- Baidyanath brand Agnitundi Bati--Batch No. 018, Expiry Date 02/2016
- Baidyanath brand Arogyavardhini Bati--Batch No. 018, Expiry Date 03/2017
- Baidyanath brand Sarivadi Bati--Batch No. SARI-015, Expiry Date 01/2019
- Baidyanath brand Brahmi Bati--Batch No. HGB-18, Expiry Date 03/2019, Batch Nos. 244 & 242, Expiry Date 03/2017 (products without Batch No. or Expiry Date are subject to this recall)
- Baidyanath brand Gaisantak Bati--Batch No. GAI-09, Expiry Date 08/2018 and Batch No. 141, Expiry Date 10/2017
- Baidyanath brand Chitrakadi Bati--Batch No. 193, Expiry Date 02/2018
The 80-count-capsules are packed in white, plastic bottles with green, yellow or orange labeling under the brand name “Baidyanath” made by Shree Baidyanath Ayurved Bhawan (P) Ltd. 1 Gupta Lane, Kolkata, India, and top cap sticker with imported by Butala Emporium
The recalled products were distributed in New York in retail stores and to consumers as single unit purchase via the firms Internet site within California, Connecticut, Florida, Hawaii, Massachusetts, New Jersey, Ohio, Pennsylvania, Vermont, the District of Columbia and Puerto Rico.
Customers who purchased these products should not consume them, but should return them to the place of purchase for a full refund.
Consumers with questions may contact the company at 1-718-899-5590, Monday – Friday, 9 am – 5 pm (ET) or by email at firstname.lastname@example.org.
The Land of Nod recalls mobiles
The yarn from the sheep figures can unravel, posing a strangulation hazard09/18/2015ConsumerAffairsBy James Limbach
The Land of Nod is recalling about 400 Follow the Herd mobiles. The yarn from the sheep figures can unravel, posing an entanglement and strangulation haz...
The Land of Nod is recalling about 400 Follow the Herd mobiles.
The yarn from the sheep figures can unravel, posing an entanglement and strangulation hazard to young children.
The company has received three reports of the sheep's yarn unraveling. No injuries have been reported.
The Land of Nod Follow the Herd mobile mobile is made of white wool felt and has five sheep figures made of white wool yarn. The sheep have black felt eyes and brown felt ears. The mobile is about 24 inches tall, 10 inches wide and 10 inches deep. SKU number 198234 is on a label attached to the body of the mobile.
The mobiles, manufactured in Nepal, were sold exclusively at The Land of Nod stores nationwide and online at www.landofnod.com from September 2013, through May 2015, for about $50.
Consumers should immediately put the recalled mobiles out of the reach of children and contact The Land of Nod for a full refund.
Consumers may contact The Land of Nod at 800-933-9904 from 8:30 a. m. to 5 p.m. (CT) Monday through Friday or online at www.landofnod.com and click on Product Recalls at the bottom of the page for more information.
Toyota recalls RAV4 and RAV4 EV vehicles
The vehicles have a windshield wiper issue09/18/2015ConsumerAffairsBy James Limbach
Toyota Motor Sales, USA is recalling approximately 421,000 model year 2009-2012 RAV4 and approximately 2,500 model year 2012-2014 RAV4 EV vehicles. Water...
Toyota Motor Sales, USA is recalling approximately 421,000 model year 2009-2012 RAV4 and approximately 2,500 model year 2012-2014 RAV4 EV vehicles.
Water dripping onto the windshield wiper link can, over time, cause corrosion and wear at the wiper link joint. In some cases this could result in the separation of the wiper link from the wiper motor crank arm.
If separation occurs, the windshield wipers could become inoperative, which could reduce driver visibility and increase the risk of a vehicle crash.
Owners of the recalled vehicles will be notified by first class mail. Toyota dealers will replace the water channel, wiper link, and wiper motor crank arm with new ones.
Consumers may contact Toyota customer service at 1-800-331-4331.
Stuffed chicken products linked to earlier recall
The products may be contaminated with Salmonella09/18/2015ConsumerAffairsBy James Limbach
The Agriculture Departments Food Safety and Inspection Service www.fsis.usda.gov (FSIS) has confirmed that frozen, raw, stuffed and breaded chicken produc...
The Agriculture Departments Food Safety and Inspection Service (FSIS) has confirmed that frozen, raw, stuffed and breaded chicken products produced by Aspen Foods, a division of Koch Poultry Company of Chicago, Ill., has same Salmonella Enteritidis outbreak strain which was part of a July 2015 recall.
Following that recall, FSIS has been conducting intensified sampling at Aspen to ensure that the hazard responsible for the initial contamination has been controlled by the company. Results from FSIS sampling revealed 12 positive results that match the outbreak strain of Salmonella Enteritidis to Aspen Foods products.
Three illnesses were epidemiologically linked to the original recall.
The frozen, raw, stuffed and breaded chicken items may include the following brands and be labeled as “chicken cordon bleu,” “chicken Kiev” or “chicken broccoli and cheese” and bear the establishment number “P-1358” inside the USDA mark of inspection.
These following products were shipped to retail and food service locations nationwide:
- Antioch Farms
- Buckley Farms
- Centrella Signature
- Chestnut Farms
- Family Favorites
- Koch Foods
- Market Day
- Oven Cravers
- Rosebud Farm
- Safeway Kitchens
Customers who purchased these products should not to consume them, but throw them away or return them to the place of purchase. FSIS is concerned that some product may be in consumers' freezers.
Although the products included in this Alert may appear to be cooked, this product is in fact uncooked (raw) and should be handled carefully to avoid cross-contamination in the kitchen.
GM expected to settle ignition switch criminal case for $1 billion
No GM employees are expected to face criminal charges even though 124 consumers died09/17/2015ConsumerAffairsBy James R. Hood
General Motors will pay a fine of about $1 billion to settle a federal criminal investigation into the defective ignition switches that killed at least 124...
General Motors will pay a fine of about $1 billion to settle a federal criminal investigation into the defective ignition switches that killed at least 124 people, but no GM employees will go to jail, The New York Times reports today.
Critics say the settlement proves the old adage that murdering someone with a gun carries the death penalty but doing so with the stroke of a pen carries only a fine.
"GM killed over 100 people by knowingly putting a defective ignition switch into over 1 million vehicles. Yet no one from GM went to jail or was even charged with criminal homicide," said Clarence Ditlow, executive director of the non-profit Center for Auto Safety, in an auto safety blog, Care for Crash Victims. "GM killed innocent consumers."
Instead of entering a guilty plea, GM will sign a "deferred-prosecution agreement," the equivalent of probation for corporations, the Times said.
The fine rivals the $1.2 billion fine Toyota was ordered to pay for concealing unintended acceleration problems.
GM recalled more than three million vehicles -- mostly sedans -- to replace the switches, which could unexpectedly shut off, cutting power to the engine and leaving drivers with no power streering, brakes, or airbags.
The Times quoted relatives of crash victims as saying that failing to prosecute individual GM employees amounts to "giving GM ... permission to do it again."
In May 2014, the National Highway Traffic Safety Administration (NHTSA) fined GM $35 million for failing to report a safety defect in the vehicle to the federal government in a timely manner.
The automaker has also paid out millions to the families of victims and still faces numerous individual lawsuits.
Federal Reserve decides not to raise interest rates
Central bank was worried about the impact on developing economies09/17/2015ConsumerAffairsBy Mark Huffman
Despite a low official unemployment rate and steady economic improvement, the Federal Reserve Open Market Committee (Fed) has decided to leave U.S. interes...
Despite a low official unemployment rate and steady economic improvement, the Federal Reserve Open Market Committee (Fed) has decided to leave U.S. interest rates at 0%.
The Fed said economic conditions in the U.S. are improving but cited concern about economic weakness in developing economies. A number of international economists had urged the Fed not to raise U.S. interest rates, saying the move could have a harmful effect on other economies.
Foreign nations and corporations have borrowed billions of dollars and a rise in U.S. rates would place added costs on those loans.
Wall Street reacted with relief, since cheap money supports current stock valuations, which some economists think are too high.
The housing industry is also relieved. Jonathan Smoke, chief economist at Realtor.com, says a Fed rate hike would have signaled the end of historically low mortgage rates and would have added about 6% to the cost of the average new mortgage.
Because of the Fed's decision, consumers should find mortgage rates, as well as rates on car loans, little changed.
The Fed lowered interest rates to 0% in the wake of the 2008 financial crisis and has not raised them since. It's next opportunity will come at it's October meeting. At that time, the will-it-or-won't-it guessing game will begin again.
Amazon introduces seven-inch tablet for $49.99
If you buy five, Amazon will throw in an extra at no charge09/17/2015ConsumerAffairsBy Mark Huffman
Amazon.com has been known to try to get a jump on the holiday shopping season. Its July 15 Prime Day promotion is a successful example.The online retai...
Amazon.com has been known to try to get a jump on the holiday shopping season. Its July 15 Prime Day promotion is a successful example.
The online retailer is at it again, taking the wraps off a new seven-inch tablet for $49.99. The product is available for pre-order, with shipping beginning on September 30.
To make it even cheaper, Amazon is offering its new Fire tablet in a six-pack; if you buy five of the devices, you get a sixth free, meaning it could replace the fruit cake or fruit-of-the-month club as the ubiquitous holiday gift.
Front and back cameras
The new tablet features a 1024 x 600 seven-inch display with a 1.3 GHz quad-core processor and rear and front cameras. It comes with 8 GB of internal storage and free unlimited cloud storage, as long as it is Amazon content and photos taken with Fire devices. You can add a microSD card for up to 128 GB of additional storage.
It runs Fire OS 5 and provides up to seven hours of battery life.
“Today, we’re taking another step in our mission to deliver premium products at non-premium prices,” said Jeff Bezos, Amazon.com CEO. “The all-new Fire features a quad-core processor, is incredibly durable, and is backed by the Amazon content ecosystem, the new AmazonUnderground, and Amazon customer service with Mayday Screen Sharing.”
The tablet, as a device, appears to be at a crossroads. Apple this month introduced a larger tablet, the iPad Pro – a device aimed at business users. With the $50 Fire, Amazon is banking on entertainment users to drive sales.
These changes come at a time when tablet sales have leveled off. According to Statista, global tablet shipments declined from 48 million in the second quarter of 2014 to 44.7 million in the second quarter of this year.
Technology publication TechCrunch speculates the market has become saturated while consumers find they prefer their recently more sophisticated smartphones over a bulkier tablet.
Amazon is likely banking on the lower price point to lure consumers back to tablets. Since Amazon increasingly positions itself as a content provider, it stands to profit in other ways than strictly the sale of hardware.
The company points out the tablet will give users access to over 38 million movies, TV shows, songs, books, apps, and games, as well as other features like X-Ray, ASAP, and Second Screen.
Honda introduces redesigned Civic
Popular compact gets major changes inside and out09/17/2015ConsumerAffairsBy Mark Huffman
Honda has essentially returned to the drawing board to redesign one of its best-selling models, the Civic sedan. The carmaker took the wraps off the 2016 m...
Honda has essentially returned to the drawing board to redesign one of its best-selling models, the Civic sedan. The carmaker took the wraps off the 2016 model this week, saying it will be in dealer showrooms in the fall.
Honda has been making the Civic for 43 years and the new model year will include a sedan, coupe, high-performance Si models, a 5-door hatchback, and the first-ever Civic Type-R model for the U.S. market.
"This tenth-generation Civic is quite simply the most ambitious remake of Civic we've ever done," said John Mendel, executive vice president of American Honda Motor Co, Inc. "We are bringing more new technology and innovative thinking to Civic than ever before to establish a new benchmark for fun-to-drive performance, fuel efficiency, safety performance and refinement in the compact class."
Two new engines
What's new for 2016? Honda says for the first time the 2016 Civic will feature two new engines – including the first-ever application of Honda turbo engine technology in the U.S.
There are also new exterior changes, including new chassis and body designs that Honda says will also contribute to improved fuel efficiency.
Inside, the Civic will offer smartphone integration with a new, 7-inch high-definition display audio touchscreen for more connectivity. It features Apple CarPlay, which integrates a user's iPhone with the dash display.
That feature provides the ability to get directions, make calls, send and receive messages, and listen to music from the touchscreen or by voice via Siri. Supported apps include Phone, Messages, Maps, Music, and compatible third party apps.
“The last Civic redesign was not well received, which puts Honda under some pressure this time around,” said Karl Brauer, senior analyst at Kelley Blue Book. “But early indications suggest the 2016 Civic will be a big leap forward in terms of styling, technology and performance. This car has spent most of its history as the benchmark in the compact car class, and Honda wants to see it convincingly retain that position.”
One of the headwinds the Civic may face in the current market is consumers' recent infatuation with trucks and SUVs. Low gasoline prices have removed some of the incentive to purchase a smaller, fuel efficient vehicle.
But Honda is counting on the model's long history and the stylish flourishes to lure consumers back. Its new ad campaign is designed to stoke nostalgia among the millions of consumers who have driven a Civic in the past.
And millions have driven one. The first Civic was introduced in 1972, when foreign-made cars were still a novelty on American highways. Today, Honda says American car buyers have purchased more than 10 million Civics throughout its 43 years in the U.S. market.
Inexpensive home improvements can help sell your house faster
Without spending a lot, simply make what you have look better09/17/2015ConsumerAffairsBy Mark Huffman
For homeowners hoping to sell their homes, cleaning, painting, and staging are three low-cost ways to make your property more attractive to potential buyer...
For homeowners hoping to sell their homes, cleaning, painting, and staging are three low-cost ways to make your property more attractive to potential buyers.
A fresh coat of paint in neutral colors brightens and freshens each room. Replacing light switchplates, door hinges, and vent covers helps make an older home look new again with little expense.
Removing excess furnishings and personal effects, like family pictures, will make it easier for a would-be buyer to imagine your home as his or her new home. Most Realtors will tell you these are basic steps in getting your home ready to sell.
If you are willing to make some small investments, there are other steps a seller can take to make a home more attractive. Some are exterior touches that home shoppers may notice before they ever reach the front door.
Pay attention to landscaping issues. Weed flower beds and add fresh mulch. In the fall, keep leaves raked and off the lawn.
Inspect the wood trim, especially on porches and decks, for excessive wear. Decks and porches are prominent exterior features on any home and can have an outsized impact on first impressions.
A fresh coat of stain or paint is a small investment to bring fresh life back into your entryway or backyard living space. If you have a deck, power-washing it removes dull, gray dirt buildup and makes it look new again.
In the kitchen
The kitchen can make or break your ability to sell a house, but most buyers are more concerned with counter space and general layout than other features. To avoid a major investment, make what's already there look better.
If cabinets are structurally sound, consider a fresh coat of paint, set off by attractive, stylish hardware. Decorators say replacing dated pulls with a more contemporary look in a new color can bring a new mood to the room.
New flooring is not a small investment but might be necessary if the carpet is worn and is looking its age. In high traffic areas, consider replacing carpet with wood or tile. It's more durable and homebuyers tend to prefer it over carpet.
Finally, take a look at lighting, both natural and artificial. Most home showings occur in daylight hours, but you want to make sure your home is always properly lit in order to create the best impression. Use subtle accent lighting to prevent rooms from appearing dark.
A good real estate agent will have other ideas to help your home present well. The secret is to limit expenses to improvements that deliver the most bang for the buck; this will help you avoid big expenses that you won't recoup on the sale.
HGTV, home of countless real estate reality shows, says basic maintenance is often more important in moving a house than an awesome kitchen.
Consumers' incomes at a standstill
Government report shows wages have fallen since 200709/17/2015ConsumerAffairsBy Mark Huffman
For all the improvements in the employment picture and even in the economy, the American consumer didn't get ahead last year.The U.S. Census Bureau rep...
For all the improvements in the employment picture and even in the economy, the American consumer didn't get ahead last year.
The U.S. Census Bureau reports there was “no statically significant change” in household income from 2013 to 2014. The numbers also show there was almost no change in the poverty rate. If there is a rising tide, it isn't lifting very many boats.
This has been a similar refrain since the financial crisis. The Census Bureau reports this is the fourth straight year in which the number of Americans living in poverty didn't change.
Incomes less than in 2007
In terms of income, family households earned a median $68,426 last year while non-family households brought in $32,047 – about the same as in 2013. What's more concerning, a comparison of real median household income over the past seven years shows income is 6.5% lower than in 2007, the year before the nation entered the most recent economic recession.
Broken down to individuals, real median earnings of men and women who worked full time, year-round between 2013 and 2014 also didn't change much. In 2014, the median earnings of women who worked full time, year-round was $39,621, 79% of that for men. The report said the female-to-male earnings ratio has not shown a statistically significant annual increase since 2007.
There were about 2.8 million more people working full time in 2014. The report said that suggests a shift of workers moving from part-year, part-time work status to full-time, year-round work status.
More people with health insurance
Another positive nugget in the report is the fact that fewer Americans were without health insurance last year. Then again, the most affordable policies available through the Affordable Care Act carry high deductibles, requiring policy holders to pay the first $5,000 or so of medical expenses out of pocket. The report didn't track how many people actually received healthcare services last year.
It is true that incomes appear to be rising in 2015, but the pace is slow. In a report this week the Bureau of Labor Statistics reported real hourly earnings rose fractionally from July to August. The report found that in the 12 months between August 2014 and August 2015, wages are up around 2%.
The fact that inflation seems to be missing from the economy may be keeping some people afloat. In particular, gasoline prices are much lower this year than they were last year.
Some prices still rising
But economists have expressed surprise that lower gasoline prices have not prompted more consumer spending than has been seen so far. It may be that other things consumers need have not gone down in price.
The Consumer Price Index (CPI) deceased 0.1% in August, largely because gasoline prices went down. But when food and energy costs are removed from the equation, prices were up 0.1%.
Consumers are spending more on rent and clothing but less on airline tickets and household furnishings. Food costs were up 0.2% last month, led by sharp increases in the prices of meat, eggs, and fresh produce.
Senators press for more answers on car cyberattacks
Automakers are asked what, if anything, they've done to prevent problems09/17/2015ConsumerAffairsBy Truman Lewis
Two senators are pressing for more answers from automakers about how they plan to prevent cyberattacks and invasions of privacy as cars increasingly become...
Two senators are pressing for more answers from automakers about how they plan to prevent cyberattacks and invasions of privacy as cars increasingly become rolling hotspots.
Among other questions, Sens. Edward J. Markey (D-Mass.) and Richard Blumenthal (D-Ct.) asked the manufacturers what -- if anything -- they've done since 2013, when Markey first raised the issue.
Last year, Markey released the report “Tracking & Hacking: Security & Privacy Gaps Put American Drivers at Risk,” which detailed major gaps in how car companies are securing connected features in cars against hackers.
More recently, researchers Chris Valasek and Charlie Miller wirelessly hacked a Jeep Cherokee from miles away while the vehicle was on a highway, showing how hackers could control the air conditioning, windshield wipers and fluid, radio, transmission, brakes, and steering.
1.4 million recalled
Fiat Chrysler recalled 1.4 million vehicles to fix that vulnerability. Now Markey and Blumenthal want the National Highway Traffic Safety Administration (NHTSA) to investigate whether additional vulnerabilities exist that could pose a risk for consumers.
“As vehicles become increasingly connected to the Internet and to one another through advanced features and services, we continue to see how these technologies present vulnerabilities that can compromise the safety and privacy of drivers and passengers,” Markey and Blumenthal, members of the Commerce, Science and Transportation Committee, wrote to 18 automakers.
“We have specifically learned how third parties can access the electronic controls and data of vehicles from many different entry points, including wireless connections, and we appreciate that many automotive companies have begun to take concrete steps to close these security gaps.”
In July, Markey and Blumenthal introduced the Security and Privacy in Your Car (SPY Car) Act, legislation that would direct NHTSA and the Federal Trade Commission to establish federal standards to secure cars and protect drivers’ privacy.
The SPY Car Act also establishes a rating system — or “cyber dashboard”— that informs consumers about how well the vehicle protects drivers’ security and privacy beyond those minimum standards.
Ultimeyes agrees to stop claiming its app improves vision
The Federal Trade Commission said the claims lacked scientific evidence09/17/2015ConsumerAffairsBy Truman Lewis
If your vision's not so good, you can wear glasses or contacts or maybe have a laser procedure to sharpen things up. But don't count on Ultimeyes, a smartp...
If your vision's not so good, you can wear glasses or contacts or maybe have a laser procedure to sharpen things up. But don't count on Ultimeyes, a smartphone app that claimed it could improve users' vision.
The app's promoters, Carrot Neurotechnology, Inc., has agreed to pay $150,000 and stop making claims not supported by scientific evidence.
“This case came down to the simple fact that ‘Ultimeyes’ promoters did not have the scientific evidence to support their claims that the app could improve users' vision,” said Jessica Rich, Director of the Federal Trade Commission's Bureau of Consumer Protection. “Health-related apps can offer benefits to consumers, but the FTC will not hesitate to act when health-related claims are not based on sound science.”
According to the FTC’s complaint, since 2012, Carrot Neurotechnology, Inc. advertised and sold Ultimeyes on the company’s website and through third-party app stores including the Apple App Store and Google Play Store, claiming it is “scientifically shown to improve vision.”
"Turn back the clock"
Ads for Ultimeyes stated that the app, which sells for between $5.99 and $9.99, would “Turn Back The Clock On Your Vision.” The ads further claimed that users would benefit from “comprehensive vision improvement” for activities such as sports, reading and driving, and that using the app would reduce the need for glasses and contact lenses.
The app is based on a series of visual exercises related to reading speed, contrast sensitivity, and low light conditions among other elements.
The ads further claimed that studies, including those conducted by Aaron Seitz, prove Ultimeyes works. The FTC alleges that Seitz’s studies and other “scientific research” do not prove Ultimeyes improves vision. The FTC also alleges the marketers failed to disclose Seitz’s affiliation with the company when touting his studies in advertising.
Debt-relief scheme lands World Law Group in federal hot water
The firm is accused of charging illegal fees and making false promises09/17/2015ConsumerAffairsBy James Limbach
The Consumer Financial Protection Bureau (CFPB is cracking down on and operation it says runs a debt-relief scheme that charges consumers exorbitant, illeg...
The Consumer Financial Protection Bureau (CFPB) is cracking down on an operation that allegedly runs a debt-relief scheme that charges consumers exorbitant, illegal, upfront fees.
In announcing it obtained a preliminary injunction against World Law Group and its senior leaders, the CFPB claims the debt-relief scheme falsely promised consumers a team of attorneys to help negotiate debt settlements with creditors, failed to provide legal representation, and rarely settled consumers’ debts.
Additionally, World Law is accused of taking $67 million from at least 21,000 consumers before providing any debt-relief services. The order, obtained in U.S. District Court, halts World Law’s operations and freezes defendants’ assets while the case is pending.
Action was taken against World Law, according to CFPB Director Richard Cordray, “for an alleged debt relief scheme that lured consumers with false promises of help from lawyers and collected millions in illegal upfront fees. We are seeking to put an end to this scheme and prevent more consumers from being harmed.”
The lawsuit names Derin Scott, David Klein, and Bradley James Haskins, who control World Law Group. The lawsuit alleges that the defendants operate through an interrelated maze of companies, including Orion Processing, LLC, d/b/a World Law Processing, WLD Credit Repair, and World Law Debt; Family Capital Investment & Management LLC (a.k.a FCIAM Property Management); World Law Debt Services, LLC; and World Law Processing, LLC. The companies comingle funds and share functions, employees, and office locations to operate the debt-relief scheme.
According to the complaint, World Law promised to help consumers reduce their debts using a “team of attorneys,” including “local attorneys,” that would provide legal representation and negotiate debt settlements directly with consumers’ creditors. The firm allegedly told consumers to stop paying their debts and instead make a single monthly payment to the company, which its lawyers would use to negotiate debt settlements with creditors.
According to the complaint, World Law unlawfully kept many of these payments as fees before providing debt-relief services. As a result, consumers paid millions of dollars in illegal fees and suffered additional harms, including being subjected to collection calls, lawsuits, late fees, and lower credit scores.
The CFPB complaint is not a finding or ruling that the defendants have actually violated the law. The Court issued the preliminary injunction because it found that the agency is likely to prevail and that the public interest is served by granting the order. The case will proceed until the court makes a final determination or the parties settle the matter.
Expedia's acquisition of Orbitz OK'd by feds
Justice Dept. finds no evidence the deal will decrease competition09/17/2015ConsumerAffairsBy James R. Hood
The Justice Department has given its blessing to Expedia's proposed $1.3 billion acquisition of Orbitz, saying it found no evidence the deal would be harmf...
The Justice Department has given its blessing to Expedia's proposed $1.3 billion acquisition of Orbitz, saying it found no evidence the deal would be harmful to consumers.
“The Antitrust Division investigated the concerns that have been expressed about this transaction. We took those concerns seriously and factored into our analysis all of the information provided by third parties. At the end of this process, however, we concluded that the acquisition is unlikely to harm competition and consumers," Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division said in a prepared statement.
Baer said the investigators found no evidence the merger would result in new charges being imposed on consumers and also concluded that Orbitz is "only a small source of bookings" for most airlines, hotels and car rental companies "and thus has had no impact in recent years on the commissions Expedia charges."
Baer also said the online travel business is changing rapidly.
"In the past 18 months, for example, the industry has seen the introduction of TripAdvisor’s Instant Booking service and Google’s Hotel and Flight Finder with related booking functionality," he said.
The deal, announced in February, also includes Orbitz' CheapTickets and ebookers.com websites.
LinkedIn settles promotional spam suit
It also agrees to pay $1.25 million to members whose passwords were hacked09/17/2015ConsumerAffairsBy Truman Lewis
LinkedIn is close to settling a class action that accused it of using 20.8 million members' emails to flood their contacts with spam. In another case, it a...
LinkedIn is close to settling a class action that accused it of using 20.8 million members' emails to flood their contacts with spam. In another case, it agreed to pay $1.25 million to users whose passwords were hacked.
In the promotional spam case, consumers complained that LinkedIn used their email address to bombard their contacts with spam emails without asking their permission.
In some cases, LinkedIn masqueraded as the member when it sent it promos to the member's contacts, Courthouse News Service reported.
A tentative settlement has been reached in the case, but the settlement amount was not revealed in court papers signed by U.S. District Court Judge Lucy Koh.
In the hacking case, U.S. District Court Judge Edward Davila signed off on a $1.25 million settlement with LinkedIn users whose passwords were posted online by hackers.
Lawyers for the LinkedIn members argued that LinkedIn had failed to adequately encrypt the information.
The settlement will be divided among 800,000 LinkedIn members whose passwords were posted online after legal fees are deducted.
Movie production "opportunity" didn't turn out that way
Consumers cashed in their annuities to make it big in Hollywood09/17/2015ConsumerAffairsBy Truman Lewis
Charles PonziLots of people want to be movie stars. Lots of others would like to make big bucks as movie producers, but like any other specialized busi...
Washington Post gives it away to Amazon Prime members
It occurs to no one to throw a bone to home delivery customers09/17/2015ConsumerAffairsBy Truman Lewis
"The Post should just go ahead and tell its home delivery customers to go to hell," one angry subscriber posted recently in the Washington Post's comments ...
"The Post should just go ahead and tell its home delivery customers to go to hell," one angry subscriber posted recently in the Washington Post's comments section, complaining that he had just missed the 10:30 a.m. deadline to have his missing paper re-delivered.
Trying to suspend delivery or report a missing paper requires navigating a maze of menus or voice mail prompts. Customers complain that this often leads to a sullen and unapologetic response that only annoys them further.
One subscriber complained he searched for 15 minutes trying to find an online form or phone number where he could report that his paper had not been delivered. An online response by a Post employee informed him that the information is on Page A2 everyday, which is not much help to those whose paper was not delivered that day.
Many had thought the situation might improve when Amazon founder Jeff Bezos bought the paper but if so, no one has noticed. Instead, home delivery subscribers will now be subsidizing even more online readers.
Free and unlimited
Amazon has announced it is offering dirt-cheap or even free online Post subscriptions to its tens of millions of Prime members. They'll get free unlimited access to The Washington Post National Digital Edition, a subscription usually retailing for
This irks home delivery subscribers in the Washington area, who pay hundreds of dollars a year.
“Offering free access to new subscribers through Prime allows us to connect with millions of members nationwide who may not have tried The Post in the past,” said
Amazon is thought to have as many as 40 million Prime members, some of whom may even read a newspaper now and then. The Amazon move, though, is said by industry analysts to be aimed more at those who get their news from Facebook, Apple News, Snapchat, and other non-traditional sources.
Cablevision scooped up by European cable empire
Newsday, AMC, Madison Square Garden not included in the sale09/17/2015ConsumerAffairsBy James R. Hood
As big cable companies go, Cablevision is one of the smaller ones. Its 3.1 million customers are concentrated in the New York metropolitan area, where the ...
As big cable companies go, Cablevision is one of the smaller ones. Its 3.1 million customers are concentrated in the New York metropolitan area, where the company also owns Newsday, News 12 Long Island, and amNew York.
It's being purchased for about $10 billion by Altice NV, a French company that has been rapidly acquiring assets, including Suddenlink, a U.S. cable operator it purchased in May.
Cablevision was founded in 1973 by Charles F. Dolan and is now managed by his son, James L. Dolan.
"As a family business we are proud to be entrusted by the Dolan family with the ownership of Cablevision and look forward to continuing the pioneering path they have paved for us," Patrick Drahi, founder and president of Altice, said in a statement, according to Newsday.
Newsday said the deal with Altice won't affect other companies controlled by the Dolan family, including the sports and entertainment company Madison Square Garden Co. and cable channel company AMC Networks.
While it's the latest in a series of cable and satellite TV deals, the Cablevision transaction is different in that it's not one big U.S. operator acquiring another. AT&T recently closed on its purchase of DirecTV and Charter acquired Time Warner in two of the latest consolidations.
Two Toyota products win IIHS TOP SAFETY PICK+ awards
That gives the automaker ten top award recipients09/17/2015ConsumerAffairsBy James Limbach
Toyota does it again. Two of the Japanese automaker's products -- the Lexus ES, a luxury midsize car, and the Scion iA, a new minicar -- have won the Ins...
Toyota has done it again.
Two of the Japanese automaker's products -- the Lexus ES, a luxury midsize car, and the Scion iA, a new minicar -- have won the Insurance Institute for Highway Safety (IIHS) TOP SAFETY PICK+ award.
Toyota now has 10 vehicles that qualify for the Institute's top award.
The Lexus ES
The 2016 ES -- including both the ES 350 and the hybrid ES 300h -- was modified for improved protection in small overlap front crashes. Changes were made to the front structure, A-pillar and roof rail, door hinge pillar, and door sill.
The car's performance in the small overlap test earned it a good rating. According to IIHS, the driver space was maintained very well with maximum intrusion of four inches at the parking brake pedal.
In addition, the dummy's movement was well-controlled and the front and side curtain airbags worked well together to protect the head. Measures taken from the dummy showed injuries to the right lower leg would be possible in a crash of this severity.
Improvements also were made to the vehicle's optional front crash prevention system, which went from an advanced to a superior rating. The car avoided a collision in track tests at 12 mph and 25 mph. It also has a forward collision warning component that meets criteria set by the National Highway Traffic Safety Administration.
The Scion IA
The new iA also earned a good small overlap rating. The driver space was maintained very well, with maximum intrusion of two inches at the parking brake pedal, door hinge pillar, and instrument panel. As with the Lexus, the dummy's movement was well-controlled and the airbags worked well to protect the head. Measures taken from the dummy indicated a low risk of significant injuries in a crash of this severity.
The minicar has a standard low-speed front crash prevention system that earned an advanced rating. The iA avoided a collision in the 12 mph track test. The system doesn't operate at higher speeds or include a warning feature.
Although many vehicles now have front crash prevention as an option, it is still relatively rare to have the technology standard and unprecedented for a vehicle as inexpensive as the iA.
Both the ES and the iA earn good ratings in the moderate overlap front, side, roof strength, and head restraint tests. To qualify for TOP SAFETY PICK, vehicles must earn good ratings in those tests, plus a good or acceptable rating in the small overlap test.
For TOP SAFETY PICK+, vehicles also need an available front crash system with an advanced or superior rating.
Beet juice boosts muscle power, just like Popeye's spinach
Study finds it's the nitrate that does the trick09/17/2015ConsumerAffairsBy Truman Lewis
Photo (c) vrozhko - FotoliaLooking to muscle up? Forget the powders and potions -- stock up on beet juice. That's the conclusion of a study that find...
Looking to muscle up? Forget the powders and potions -- stock up on beet juice. That's the conclusion of a study that finds the high nitrate content in beets and spinach will make you stronger.
Of course, Popeye knew that years ago, but the fictional character thought it was the iron in spinach that did the trick. Nope, it's the nitrate, say researchers at Washington University School of Medicine in St. Louis. Celery, arugula, and other leafy greens are also rich in the nutrient.
Building on a growing body of work that suggests dietary nitrate improves muscle performance in many elite athletes, the WUSL researchers found that drinking concentrated beet juice -- also high in nitrates -- increases muscle power in patients with heart failure.
"It's a small study, but we see robust changes in muscle power about two hours after patients drink the beet juice," said senior author Linda R. Peterson, MD, associate professor of medicine. "A lot of the activities of daily living are power-based -- getting out of a chair, lifting groceries, climbing stairs. And they have a major impact on quality of life.
"We want to help make people more powerful because power is such an important predictor of how well people do, whether they have heart failure, cancer or other conditions. In general, physically more powerful people live longer," Peterson said.
Noted in cyclists
In the September issue of the journal Circulation: Heart Failure, the scientists reported data from nine patients with heart failure. Two hours after the treatment, patients demonstrated a 13 percent increase in power in muscles that extend the knee.Based on research in elite athletes, especially cyclists who use beet juice to boost performance, the study's corresponding author, Andrew R. Coggan, PhD, assistant professor of radiology, suggested trying the same strategy in patients with heart failure.
The researchers observed the most substantial benefit when the muscles moved at the highest velocities. The increase in muscle performance was significant in quick, power-based actions, but researchers saw no improvements in performance during longer tests that measure muscle fatigue.
The researchers pointed out that participants experienced no major side effects from the beet juice, including no increase in heart rates or drops in blood pressure, which is important in patients with heart failure.
While the trial was not designed to find out whether patients noticed an improved ability to function in daily life, the researchers estimated the size of the benefit by comparing the improvement in muscle power with what is seen from an exercise program.
"I have compared the beet-juice effect to Popeye eating his spinach," said Coggan, who specializes in exercise physiology. "The magnitude of this improvement is comparable to that seen in heart failure patients who have done two to three months of resistance training."
The nitrates in beet juice, spinach, and other leafy green vegetables such as arugula and celery are processed by the body into nitric oxide, which is known to relax blood vessels and have other beneficial effects on metabolism.
With the growing evidence of a positive effect from dietary nitrates in healthy people, elite athletes, and now heart failure patients, the researchers also are interested in studying dietary nitrates in elderly populations.
"One problem in aging is the muscles get weaker, slower and less powerful," Coggan said. "Beyond a certain age, people lose about 1 percent per year of their muscle function. If we can boost muscle power like we did in this study, that could provide a significant benefit to older individuals."
An August drop for new home construction
Jobless claims continue to fall09/17/2015ConsumerAffairsBy James Limbach
Construction of new homes fell in August after posting a modest gain a month earlier, according to figures released jointly by the Census Bureau and the De...
Construction of new homes fell in August after posting a modest gain a month earlier, according to figures released jointly by the Census Bureau and the Department of Housing and Urban Development.
Housing starts for privately-owned homes were down 3% from the revised July seasonally adjusted annual rate of 1,161,000 units -- to 1,126,000. Still, the construction rate is up 16.6% from the same month a year ago.
Builders broke ground on 739,000 single-family homes in August -- down 3.0% from a month earlier, while the August rate for multi-family -- units in buildings with five units or more -- was 381,000, down 9,000 from July.
Building permits, a sign of builders plans in the next six months or so, came in at a seasonally adjusted annual rate of 1,170,000 -- up 3.5% from July 12.5% year-over-year.
Authorizations for single-family home construction were up 2.8% to a rate of 699,000; permits for units in buildings with five units or more totaled 440,000 last month, a gain of 18,000 from July.
The full housing starts report is available on the Commerce Department website.
First-time applications for state unemployment benefits continue to fall.
The Labor Department (DOL) reports initial jobless claims were down 11,000 during the week ending September 12 to a seasonally adjusted total of 264,000. That level, economists say, suggests an economy that is at, or near, full employment.
There were no special factors affecting this week's initial claims.
The four-week moving average was 272,500, a drop of 3,250 from the previous week's unrevised average of 275,750. Because it lacks the volatility of the weekly data, the four-week moving average is considered a more accurate gauge of the labor market.
The complete jobless claims report is available on the DOL website.
Karoun Dairies recalls various cheeses
The products may be contaminated with Listeria monocytogenes09/17/2015ConsumerAffairsBy James Limbach
Karoun Dairies is recalling a variety of cheeses it distributes. The products may be contaminated with Listeria monocytogenes To date, no product has tes...
Karoun Dairies is recalling a variety of cheeses it distributes.
The products may be contaminated with Listeria monocytogenes
To date, no product has tested positive for Listeria.
The products are vacuum packed, in jars or in pails under the following brands: Karoun, Arz, Gopi, Queso Del Valle, Central Valley Creamery, Gopi, and Yanni. Weights vary from 5 ounces to 30 pounds.
This recall is limited to cheese with the UPC codes in the table below sold nationwide.
The recalled products were distributed to retail outlets, including food service accounts and supermarkets, in the U.S.
Customers who purchased any of the recalled products should dispose of them or return them to the place of purchase for a full refund.
Consumers with any questions may call toll free 1-866-272-9393 toll free, Monday – Friday 8:00AM to 6:00PM (PST).
Di Stefano Cheese recalls ham products
The products were were not presented at the U.S. point of entry for inspection09/17/2015ConsumerAffairsBy James Limbach
Di Stefano Cheese Co., of Pomona, Calif., is recalling approximately 1,280 pounds of Parma Boneless Ham. The products, produced in Italy, were not present...
Di Stefano Cheese Co., of Pomona, Calif., is recalling approximately 1,280 pounds of Parma Boneless Ham.
The products, produced in Italy, were not presented at the U.S. point of entry for inspection. Without the benefit of full inspection, a possibility of adverse health consequences exists.
There are no reports of adverse reactions due to consumption of these products.
The following products are being recalled:
15 lb. cases of “Ruliano Collezione Regale” Parma boneless ham with case code 14260
15 lb. cases of “Ruliano 24” Parma boneless ham with a sell by date of 08-02-2016
The products were sent to distributors in the California.
Customers who purchased these products should not consume, but throw them away or return them to the place of purchase.
Consumers with questions about the recall may contact Sasia Mellinger at (909) 865-8301.
First drug to prevent Alzheimer's gets clinical trial
Drug is currently approved for treatment of epilepsy09/16/2015ConsumerAffairsBy Mark Huffman
For the first time, a drug designed to prevent or delay the onset of Alzheimer's disease will be tested in a major clinical trial, the first step in bringi...
For the first time, a drug designed to prevent or delay the onset of Alzheimer's disease will be tested in a major clinical trial, the first step in bringing the drug to market.
Researchers at Johns Hopkins University say they are getting $7.5 million from the National Institutes of Health (NIH) for a Phase 3 trial of the drug levetiracetam, scheduled to start early next year.
Levetiracetam is not a new drug. It has been commonly prescribed for more than a decade to treat epilepsy. Johns Hopkins neuroscientist Michela Gallagher and colleagues have shown that a form of the drug calms hyperactivity in the brain of patients with a condition known as amnestic mild cognitive impairment (aMCI), in which memory impairment is greater than expected for a person’s age.
Doctors believe it also greatly increases risk for Alzheimer’s dementia. More than 5.6 million Americans and 25 million people globally suffer from aMCI.
Gallagher says scientists believe overactivity in aMCI is a strong predictor of who will ultimately get Alzheimer's, a progressive brain disease that is ultimately fatal.
“We expect our upcoming trial to demonstrate efficacy in preserving cognition and memory in aMCI patients while delaying progression to the clinical stage of Alzheimer’s dementia,” Gallagher said.
Skipping first two phases
Because levetiracetam is already an approved drug for epilepsy, it will skip the first two phases of trials. In a Phase 1 trial, a drug is tested on a small group of people for safety. In a Phase 2 trial, it is tested on a small group to determine if it is effective and has harmful side effects.
In a Phase 3 trial, a drug or treatment is given to large groups of people to confirm its effectiveness, monitor side effects, compare it to commonly used treatments, and collect information that will allow the drug or treatment to be used safely.
If a drug passes a Phase 3 clinical trial, the FDA usually allows it to be marketed for the purpose for which it was tested.
The trial will be carried out in a public-private partnership between the NIH’s National Institute on Aging, Johns Hopkins, and the biopharmaceutical company AgeneBio. Patients will receive a mild dose of levetiracetam, called AGB101, in an extended release once-a-day tablet at approximately one-fifth to one-twelfth of the dose most commonly prescribed for epilepsy. Other patients will receive a placebo. The trial is expected to last 18 months to two years.
Other promising Alzheimer's treatments have yet to come to the clinical trial stage but appear to be in the pipeline. As we reported late last year, researchers at UCLA believe they are on the cusp of a breakthrough in which memory loss can not only be slowed but lost memories restored in patients in the early stages of Alzheimer's disease.
There has been an increased urgency associated with Alzheimer's research since the large Baby Boom population began entering the period of highest risk. While Alzheimer's is not a normal part of aging, the Alzheimer's Association says people age 65 and older are at the highest risk.
Correction: Printer ink story was incorrect
ConsumerAffairs apologizes for the error09/16/2015ConsumerAffairsBy James R. Hood
A ConsumerAffairs story yesterday incorrectly characterized Epson Corporation's business practices, saying the company "secretly inflates" the $3,800 price...
A ConsumerAffairs story yesterday incorrectly characterized Epson Corporation's business practices, saying the company "secretly inflates" the $3,800 price of ink cartridges used in its professional-grade Epson 9900 printers.
The story was based on a YouTube video posted by a printing company which complained that the printer controls showed cartridges as being empty when in fact they still contained several ounces of ink.
The company submitted a response to the story, which is presented here verbatim:
Your recent article highlighted a video posted by Bellevue Fine Art Repro. I’m contacting you on behalf of Epson to clarify how the ink system of the Epson Stylus Pro 9900 is designed. The Epson Stylus Pro 9900 printer is a graphic arts printer designed for professional operation for printing high value photographs and fine art reproductions on canvas and other specialty media up to 44-inches wide. Like Epson’s other graphic arts printers, the Epson Stylus Pro 9900 is finely calibrated to consistently deliver extraordinarily high print quality.
- For quality assurance, the Epson Stylus Pro 9900 ink system uses two methods to track ink levels. The first system estimates ink consumption by mathematically calculating how much ink is consumed from a cartridge for each ink droplet fired during printing and print head cleaning. The printer and ink cartridge use this information to display ink levels and initiate an “Ink Low” status alert. This alert is an indicator to the operator that it is time to consider ordering a new cartridge and occurs with roughly 10-15 percent ink remaining.
- After “Ink Low” alert, the printer can continue to print normally until all usable ink in the cartridge is consumed and noted with an “Ink Out” notice. This “Ink Out” notice is triggered by a second method – a physical sensor in the cartridge – not an estimated amount. The sensor triggers when ink volume has declined to the point that further use could cause harm to the print head.
- If a cleaning cycle is initiated during the “Ink Low” status and the level of ink remaining in the cartridge is estimated by mathematical calculation to be less than required for a print head cleaning, the printer will signal that there is “not enough ink to complete the process.” The ink required for cleaning is conservatively estimated to assure there is enough ink to completely eliminate any print head obstructions and ensure quality output. At this stage a fuller cartridge needs to be installed to complete the print head maintenance. But, it is important to note, that after this maintenance cycle, the original cartridge may be reinserted and used until “Ink Out” status is reached. It does not have to be discarded.
The printing system of the Epson Stylus Pro 9900 is conservatively designed with two methods of tracking ink levels. The “Ink Low” signal does not prevent the ink from being used until the “Ink Out” signal. In the event that a print head cleaning is attempted after an “Ink Low” signal, the professional operator may have to swap in a full cartridge for cleaning and use up the useable ink in the original cartridge at a later time.
ConsumerAffairs apologizes for its error.
Two big beer brands may be about to get bigger
Anheuser-Busch and Miller confirm they are in merger talks09/16/2015ConsumerAffairsBy Mark Huffman
Anheuser-Busch InBev NC (Anheuser-Busch) and SABMiller (Miller) are talking about merging, which would created the world's largest brewer.The talks, co...
Anheuser-Busch InBev NC (Anheuser-Busch) and SABMiller (Miller) are talking about merging, which would created the world's largest brewer.
The talks, confirmed to The Wall Street Journal, are all about America's changing beer tastes and the competition for space in your supermarket's display case. And not just in your supermarket, but in stores around the world.
As the Journal notes, Anheuser-Busch is itself the product of an international merger, teaming Budweiser with Becks and Stella Artois. A successful merger with Miller would add at least 200 other beers to the portfolio, including many European brands.
Both companies said a merger was by no means certain but that both said they are open to exploring the possibility. While joining forces might be seen as going on the offensive in the beer wars, there is no doubt that it is also a defensive move, at least in the U.S.
Rise of craft beers
As we have noted earlier, craft beers have put a dent in sales of America's most iconic brands. A 2014 report by Mintel estimated craft beer sales would total $20 billion for the year, with 23% of survey respondents saying they prefer to drink a craft beer.
The survey also delved into why so many consumers – especially young consumers – are flocking to little known beer brands brewed in or near their local communities. The reasons are similar to why they buy vegetables at farmers markets and frequent restaurants that serve locally sourced food.
Among consumers age 25 to 34, 70% say “the brand of beer you drink says a lot about you.” Sixty-six percent said the style of the beer is also an important defining characteristic.
All about style
"The leading purchase driver among craft beer drinkers is style, pointing to a more discerning consumer base," Beth Bloom, Mintel food and drink analyst, said at the time of the report's release. "Not only do craft drinkers consider themselves knowledgeable and adventurous, but they're eager to share this knowledge.
But American beer drinkers have always tended to support one brand of beer over another and identity, influenced by marketing campaigns, was always a factor. You were either a Budweiser drinker or a Miller drinker. Consumers had firm ideas about why they liked one brand and didn't care for the other.
This is changing with the current demographic and generational shift. For Millennials, beer fealty isn't formed by advertising campaigns, but by the notion they are identifying with a concept – a small scale business that is part of the surrounding community.
Not particularly brand loyal
These consumers may not be brand loyal in the strictest sense, but they enjoy supporting local breweries and sharing in that sense of community that the smaller brewers have instilled – meaning they may move from one craft brand to another.
This creates problems for the traditional breweries that operate on a massive scale. The very efficiency that helps their bottom line is a liability with a segment of the consumer populace that is growing in importance every day.
How do these iconic brands respond? For two very big beer companies, the answer apparently is to get even bigger.
Visa designs biometric security for new chip card systems
But it's not clear how many merchants will be using new chip system on October 109/16/2015ConsumerAffairsBy Mark Huffman
Ready or not, change is coming to the checkout counter October 1. That's when U.S. retailers and credit card companies will switch over to the chip based E...
Ready or not, change is coming to the checkout counter October 1. That's when U.S. retailers and credit card companies will switch over to the chip based EMV system.
EMV stands for Europay, MasterCard, Visa, and uses chips embedded in the front of the plastic cards instead of the the strip on the back. The system is in use in much of the rest of the world because it's more secure and less vulnerable to hacking and fraud.
Consumers might not notice big changes October 1. Some retailers – and surveys suggest it will be many – will still be using the old system. But on October 1, the onus shifts to merchants, who will be on the hook in the event of a fraudulent transaction.
Payment Source, a publication covering the credit industry, reports a majority of merchants it has surveyed “have little to no knowledge” of the new technology that is going into effect in two weeks.
The National Retail Federation says its research shows 62% of consumers don't think the new chip card system provides enough security.
Meanwhile, Visa unveiled what it believes will be the next step in card security this week – a new specification to use biometrics with chip card transactions. The specs can work with palm, voice, iris, or facial biometrics. The system is designed to work with the EMV chip industry standard to help ensure open and seamless solutions.
Using biometrics – a unique human characteristic to verify identity --is intended to prevent fraud, as well as make it easier to make a secure payment. Visa says its architecture enables fingerprints to be securely accepted by a biometric reader, encrypted, and then validated.
The specification supports “match-on-card” authentication where the biometric is approved by the EMV chip card and never exposed or stored in any central databases. As an option, processors can validate the biometric data within their secure systems for transactions occurring in their own environments, such as their own ATMs.
Visa says it used the EMV chip standard as a foundation so its biometric cardholder verification can be easily integrated with the technology used by 3.3 billion chip cards around the world – and shortly, in the U.S.
“There is increasing demand for biometrics as a more convenient and secure alternative to signatures or PINs, especially as biometrics technologies have become more reliable and available,” said Mark Nelsen, senior vice president of Risk Products and Business Intelligence, at Visa Inc.
Absa Bank, a wholly-owned subsidiary of Barclays Africa Group, will be the first to use Visa’s specs in a trial this fall. Cardholders will use fingerprint readers at select ATMs instead of a PIN.
iOS9 available today; it's the latest operating system for iPhones and iPads
Lots of new features, including improved security09/16/2015ConsumerAffairsBy James R. Hood
Apple enthusiasts already know this, but for the rest of us, here's a reminder: iOS 9 is available today. It's the latest version of the software that make...
Apple enthusiasts already know this, but for the rest of us, here's a reminder: iOS 9 is available today. It's the latest version of the software that makes iPhones and iPads run.
This latest version of Apple's venerable mobile operating system has lots of new features you may or may not care about, but Apple insists the new operating system is devoid of many bugs and overlooked irritants which drove many iFolks to distraction with iOS 8.
Of course, if you're the cautious type and you're not unduly determined to have the very latest version of anything Apple, there's nothing wrong with waiting a week or two. There will undoubtedly be a few glitches that come to light in the first days.
Among its biggest advantages, iOS 9 is quite a bit more compact than its predecessor, weighing in at a mere 1.3 gigabytes of free space needed for an update. iOS 8 wanted 4.58, which was more than many consumers had available.
But what's so great about 9? According to Apple, the search function is much improved, Maps and News work better, Siri is better behaved, and there are new multitasking features that will let you run two apps at once.
Smart & secretive
Siri is not only smarter and better behaved, she's also good at keeping secrets, like other Apple products and services. Although Siri tries to notice and keep track of your wants and needs, she does it all on the hardware in your phone -- not in someone's cloud.
This is part of Apple's "privacy built-in" policy, often cited by CEO Tim Cook as a prime differentiator between Apple and competitors like Google and Microsoft. Their "free" services are paid for, at least in part, by their mining of the data they capture from their users, whereas Cook swears that Apple is not looking over your shoulder. Nor is it reading your mail, which is now encrypted for better security.
There's a complete list of new and improved features on Apple's website.
DealerApp spied on prospective car buyers
The app gathered data and provided it to third parties without telling consumers09/16/2015ConsumerAffairsBy Truman Lewis
Photo: DealerApp.comIf you've spent any time browsing car dealers' sites lately, chances are you've been invited to download an app that would suppos...
If you've spent any time browsing car dealers' sites lately, chances are you've been invited to download an app that would supposedly make your car-shopping faster, easier, and so forth.
Some apps might really do that but you may pay an unexpected price for it in lost privacy.
That's what brought DealerApp Vantage LLC to the attention of the New Jersey Division of Consumer Affairs. The Piscataway, N.J., company develops apps for hundreds of car dealers, each of them customized to reflect the dealer's brand.
But the state agency says that besides providing information to consumers and the dealers who host the app on their websites, DealerApp Vantage also collects and disseminates app users' personal information without their knowledge or permission.
“Online consumers, like all other consumers, have the right to control who can view or transmit their sensitive and private personal information,” said Acting Attorney General John J. Hoffman. “This settlement will assure that the alleged violations of consumer privacy committed by DealerApp will no longer occur and will send a message to companies that violate their customers’ privacy that such conduct is unacceptable.”
The state charged that consumers were never informed that the apps transmitted personal information, not only to the dealership, but also to DealerApp. In addition, the dealerships that bought and utilized apps from DealerApp were also unaware that the company was transmitting the personal information of their customers to DealerApp.
The personal information collected by the apps and allegedly transmitted to DealerApp included the consumer’s name, email address, telephone number, and the Vehicle Identification Number (VIN) of the vehicle purchased, among other data. The state alleged that DealerApp failed to disclose to consumers that this data was being transmitted by DealerApp, in violation of the New Jersey Consumer Fraud Act. Some of the data was provided to third-party data analytics companies, again without disclosure, the state charged.
About 500 dealers world-wide, including 38 in New Jersey, are DealerApp clients.
“The number of threats to online privacy appear to be growing by the day,” said Steve Lee, Acting Director of the New Jersey Division of Consumer Affairs. “No one should be able to profit from the personal information of others that has been obtained through cyber fraud or violations of privacy.”
Among other things, under terms of the settlement, DealerApp must:
clearly and conspicuously disclose to its dealership customers the types of personal information it collects through its apps;
provide disclosures within its privacy policies that clearly and conspicuously disclose the types of personal information it collects from consumers through its apps;
provide disclosures within its privacy policies that clearly and conspicuously disclose its use of any third-party data analytics companies and what information such companies may collect from consumers’ use of its apps;
not sell, rent, or otherwise transfer personal information to persons or entities other than the dealership customer for which the mobile app in question was customized, without those consumers’ express consent or providing proper disclosure and offering a mechanism for opting-out such practice; and
- not engage in any unfair or deceptive acts or practices in the conduct of any business, and complying with all applicable laws and regulations in its future business dealings.
Illinois promotes "Delete Day" in schools
Kids need to be aware that content put online stays there09/16/2015ConsumerAffairsBy Truman Lewis
Not long ago, parents and educators worked to encourage kids to learn how to use the Internet. Now they're trying to get them to stop posting every minute ...
Not long ago, parents and educators worked to encourage kids to learn how to use the Internet. Now they're trying to get them to stop posting every minute of their lives.
In Illinois, Attorney General Lisa Madigan is promoting "Delete Day." She wants teachers to set aside some time to "promote respectful and safe online interactions" -- something other than scandalous pictures and selfies, in other words.
“As students around Illinois settle into a new school year and spend more time online, it is important to promote positive online interactions,” said Madigan. “Delete Day is an opportunity for students to evaluate their online habits and get rid of content or associations that could be harmful to themselves or to others.”
Last year the Attorney General’s office conducted a survey of Illinois students in grades three through eight to determine how they are using technology and social media. Results showed compelling information, including:
- 75 percent of surveyed students spend up to four hours a day using technology (not including television);
- the average youth is 10 years-old when they create their first social networking account; and
- more than 60 percent of youth are not concerned with the amount of personal information they make available online.
“Delete Day is an important opportunity for educators to teach students that once they post something online, it never really goes away,” said Decatur’s Garfield Montessori Magnet School Counselor Melissa Downs, who is implementing the school’s second “Prevent and Delete” program this December. “We need to help students be proactive in removing and preventing interactions that could be harmful down the road.”
By participating in Delete Day, Madigan said schools can help students think critically about their online connections, followers and posts, and promote safety and respect on the Internet.
Liquid hand sanitizer a hazard to children
Popular sanitizers contain up to 95% alcohol09/16/2015ConsumerAffairsBy Truman Lewis
Poison control centers report a growing number of cases involving children becoming ill from drinking liquid hand sanitizer, which often contains dangerous...
Poison control centers report a growing number of cases involving children becoming ill from drinking liquid hand sanitizer, which often contains dangerously high levels of alcohol.
CNN recently reported that since 2010, there has been nearly a 400% increase in calls about children under 12 consuming hand sanitizer and becoming dangerously intoxicated.
“Kids are getting into these products more frequently, and unfortunately, there’s a percentage of them going to the emergency room,” said Dr. Gaylord Lopez, director of the Georgia Poison Center.
Lopez said 3,266 hand sanitizer cases involving young kids were reported to poison control centers in 2010. Last year, that number reached 16,117.
Liquid hand sanitizer is, it turns out, mostly alcohol, with concentrations reaching 95% in some brands, compared to 5% in beer and 12% in wine.
At such high concentrations, a few squirts can make a child ill and can even lead to alcohol poisoning, which can be fatal.
Parents should keep hand sanitizer and similar products away from children. Better yet, health officials say, use soap and water or sanitizing wipes to clean sticky fingers.
Nearly half of adolescents misuse their medication09/16/2015ConsumerAffairsBy Mark Huffman
In some areas, abuse of prescription medication by teenagers is on the decline. The unfortunate reason, however, is that many have moved on to heroin, whic...
Why loud snoring is something to tell your doctor about
It's often a sign of sleep apnea, which can trigger serious health problems09/16/2015ConsumerAffairsBy Mark Huffman
Your partner's loud and persistent snoring may be annoying, but it should also be a cause for concern. It could be a symptom of sleep apnea, a breathing co...
Your partner's loud and persistent snoring may be annoying, but it should also be a cause for concern. It could be a symptom of sleep apnea, a breathing condition that can carry health risks.
Sleep apnea is marked by the repeated starting and stopping of breathing during sleep. Loud snoring is one sign of the condition but so is feeling tired after a full night's sleep. Someone with sleep apnea never really falls into a deep, restful sleep. They keep waking up every few seconds, even if they aren't fully conscious.
According to the Mayo Clinic there are three types of sleep apnea:
- Obstructive sleep apnea, the more common form that occurs when throat muscles relax.
- Central sleep apnea, which occurs when your brain doesn't send proper signals to the muscles that control breathing.
- Complex sleep apnea syndrome, also known as treatment-emergent central sleep apnea, occurs when someone has both obstructive sleep apnea and central sleep apnea.
Obstructive sleep apnea (OSA) is associated with significantly elevated muscle sympathetic nerve activity (MSNA), leading to high blood pressure and potential cardiac events. Treatment can help clear up symptoms and may help prevent heart problems and other complications.
A new study, published in the Journal of Neurophysiology found effective sleep apnea treatment can reverse harmful changes in brain stem activity linked to increased risk of heart disease. In particular, the researchers found the form of treatment known as continuous positive airway pressure (CPAP) is effective in at reducing elevated MSNA, found in many people with OSA.
Six months of CPAP treatment resulted in a significant reduction in resting MSNA. The treatment involves a CPAP machine, which has three main parts. There is a mask that fits over the nose and mouth during sleep. The mask is connected to the machine by a tube. A motor in the machine blows air into the tube.
As the National Institutes of Health (NIH) explains it, sleep apnea causes the breathing airway to collapse, or become blocked during sleep. When you try to breathe, any air that squeezes past the blockage can cause loud snoring. Just a small amount of pressure from the CPAP machine can prevent the airway from collapsing or becoming blocked.
Therapeutic equipment sales soaring
A sign of how widespread sleep apnea is can be found in sales figures for CPAP machines and other testing equipment. According to Research and Markets, the sleep apnea devices market is expected to be $3.8 billion this year, rising to $5.3 billion in 2020.
“Efforts by new and established players in the market have led to the development of a strong pipeline of products that are expected to better serve sleep apnea patients,” the company said in a report. “This rich pipeline of innovative products is likely to open an array of opportunities for the sleep apnea market.”
This year, therapeutic devices are forecast to account for the largest share in the market and grow at the highest rate. The home care settings segment is expected to account for the largest share of the sleep apnea devices market, by end users.
CPAP machines are in demand and can be expensive. The American Sleep Apnea Association operates a CPAP Assistance Program, seeking donated machines for those who can't afford to purchase one. You can find details about the program here.
Home builder confidence at a nearly ten-year high
Some concerns remain, though09/16/2015ConsumerAffairsBy James Limbach
Builder confidence in the market for newly constructed single-family homes is at its highest level since October 2005. National Association of Home Builde...
Builder confidence in the market for newly constructed single-family homes is at its highest level since October 2005.
"The HMI shows that single-family housing is making solid progress, said NAHB Chairman Tom Woods. "However, our members continue to tell us that they are concerned about the availability of lots and labor.”
The NAHB/Wells Fargo Housing Market Index, derived from a monthly survey, gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good", "fair", or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low."
Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
Two of the three HMI components posted gains this month. The index measuring buyer traffic increased two points to 47, and the component gauging current sales conditions rose one point to 67. The index charting sales expectations in the next six months, however, dropped from 70 to 68.
Looking at the three-month moving averages for regional HMI scores, the West and Midwest each rose one point to 64 and 59, respectively. The South posted a one-point gain to 64 and the Northeast dropped one point to 46.
"NAHB is projecting about 1.1 million total housing starts this year,” said NAHB Chief Economist David Crowe. The report, he said, “is consistent with our forecast, and barring any unexpected jolts, we expect housing to keep moving forward at a steady, modest rate through the end of the year.”
Cost of living declines in August
And the year-over-year rate of inflation has barely budged09/16/2015ConsumerAffairsBy James Limbach
Consumer prices became less of a worry during the past month. According to the Labor Department (DOL), the Consumer Price Index (CPI) dipped 0.1% in Augus...
Consumer prices became less of a worry during the past month.
According to the Labor Department (DOL), the Consumer Price Index (CPI) dipped 0.1% in August on a seasonally adjusted basis. Moreover, during the past 12 months, it's up a miniscule 0.2%.
Energy and food
Energy costs were down 2.0% in August after posting gains in five of the last 6 months. Gasoline prices, which were up for three straight months, dropped 4.1%. Fuel oil index also declined (-8.1%), offsetting increases in natural gas (+1.2%) and electricity (+0.3%). Over the past 12 months, electricity has fallen 0.6%, fuel oil has plunged 34.6%, gasoline is down 23.3%, and natural gas is off 11.5%.
Food prices, however, were up 0.2%, with the food at home category up 0.3% -- the same as July. Within that latter sector, major grocery store food groups were mixed. The largest increase was for fruits and vegetables, which jumped 1.5% with both fresh fruits and fresh vegetables posting their largest increases of the year. Prices for meats, poultry, fish, and eggs rose 0.5%, while beef, poultry, and pork costs all declined. The biggest sticker shock came in eggs, where costs surged 7.7% and are now up 35.3% over the past year. Over the past 12 months, food at home prices are up 0.8%.
Excluding the volatile food and energy categories, the core rate of inflation increased 0.1% in August the same as July. Shelter costs were up 0.2%, apparel rose 0.3%, and tobacco was up 0.5%. The costs of medical care, new vehicles, and personal care were unchanged, while airline fares fell 3.1%., used cars and trucks were down 0.4%, and household furnishings and operations prices dropped 0.3%. Over the last 12 months, the core rate of inflation is up 1.8%.
The interest rate outlook
The inflation report comes as the Federal Reserve begins a two-day meeting to decide the course of interest rates.
Given the latest CPI numbers, Stifel Fixed Income Chief Economist Lindsey M. Piegza says inflation is likely to remain increasingly benign for the remainder of the year and beyond. That, she says, undermines "any notion of confidence inflation will begin to reverse course back towards the Fed's target of 2%."
Piega believes that despite an apparent growing impatience at the Fed to raise rates, the data suggest September "may not be the appropriate timetable for liftoff."
The complete CPI report is available at the Department of Labor website.
Mortgage applications post second consecutive decline
Contract interest rates were mostly lower09/16/2015ConsumerAffairsBy James Limbach
Mortgage applications posted a sizable decline for a second week running. The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey sho...
Mortgage applications posted a sizable decline for a second week running.
The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey shows applications were down 7.0% in the week ending September 11 following a 6.2% drop the week before. The latest results include an adjustment for the Labor Day holiday.
The Refinance Index fell 9.0% from the previous week, taking the refinance share of mortgage activity down to 56.2% of total applications from 56.9% the previous week.
The adjustable-rate mortgage (ARM) share of activity slipped to 6.8% of total applications, the FHA share rose to 14.2% from 13.4% the week prior, the VA share decreased to 10.7%, and the USDA share of total applications was unchanged at 0.8%.
Contract interest rates
- The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) dipped one basis point -- from 4.10% to 4.09%, with points increasing to 0.42 from 0.39 (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) inched up to 4.04% from 4.03%, with points decreasing to 0.26 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate was unchanged from last week.
- The average contract interest rate for 30-year FRMs backed by the FHA dropped two basis points to 3.88%, with points increasing to 0.35 from 0.23 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
- The average contract interest rate for 15-year FRMs fell to 3.33% from 3.34%, with points decreasing to 0.26 from 0.28 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs rose one basis point to 3.04%, with points increasing to 0.36 from 0.27 (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.
Iowa Select Herbs recalls all products
The products are adulterated09/16/2015ConsumerAffairsBy James Limbach
Iowa Select Herbs is recalling all products sold between January 1, 2015, and August 17, 2015, pursuant to a Consent Decree issued by the federal court for...
Iowa Select Herbs is recalling all products sold between January 1, 2015, and August 17, 2015, pursuant to a Consent Decree issued by the federal court for the Northern District of Iowa.
The company manufactured and distributed unapproved new drugs, misbranded drugs, misbranded dietary supplements and dietary supplements not manufactured in compliance with the current Good Manufacturing Practice regulations for Dietary Supplements, and therefore adulterated.
There are no reports to date of side effects or adverse events.
The recalled products are herbal extracts marketed under the Iowa Select Herbs brand in either an alcohol or alcohol-free (A/F) solution packaged in various sizes from once ounce to one gallon. The following lots are being recalled:
**Quantity refers to the number of units distributed and not the size of the unit (e.g. ounces or gallons).
The recalled products were sold nationwide between January 1, 2015 to August 17, 2015 to wholesalers and consumers using the company's website and through online marketplace websites, such as Amazon and Ebay.
Iowa Select Herbs is notifying its wholesale and retail customers.
Customers who purchased these products should immediately discontinue their use and return the products to their place of purchase or directly to Iowa Select Herbs.
Consumers may call the Company at 319-826-1000 Monday through Friday from 9:00 am - 5:00 pm (CST) for instructions on the return and refund process.
Recaro recalls ProRIDE and Performance RIDE child restraints
The top tether anchorage may detach from the child restraint09/16/2015ConsumerAffairsBy James Limbach
Recaro Child Safety is recalling 173,063 ProRIDE child restraints, model number 332.01 in all colors (AK21, KAEC, KAEG, KK91, MC11, MJ15, QA56, QA9N, QQ11,...
Recaro Child Safety is recalling 173,063 ProRIDE child restraints, model number 332.01 in all colors (AK21, KAEC, KAEG, KK91, MC11, MJ15, QA56, QA9N, QQ11, QQ14, and QQ95), manufactured from April 9, 2010, through June 9, 2015; and Performance RIDE child restraints, model number 333.01 in all colors (CHIL, HABB, HAZE, JEBB, JETT, KNGT, MABB, MARI, MNGT, PLUM, PLBB, REBB, SLBB, REDD, ROBB, ROSE, SABB, SAPH, SLTE, VIBB, VIBE), manufactured from January 15, 2013, through June 9, 2015.
In the event of a crash, the top tether anchorage may detach from the child restraint. As such, these restraints fail to conform to the requirements of Federal Motor Vehicle Safety Standard number 213, "Child Restraint Systems."
If the top tether anchorage detaches from the child restraint, there is an increased risk of injury to the child or other vehicle occupants.
Recaro will notify and send all registered owners a length of webbing with loops on both ends and instructions to further secure the child restraints. The retrofit kit will be provided free of charge. The recall is expected to begin in September 2015.
Owners may contact Recaro customer service at 1-866-628-4750 or by email at email@example.com.
Hackers seize control of Cisco routers in four countries
Attack lasted at least a year before security researchers detected it09/15/2015ConsumerAffairs
Today, security researchers at FireEye announced their discovery that hackers have managed to seize control of 14 routers in four countries spanning three ...
Today, security researchers at FireEye announced their discovery that hackers have managed to seize control of 14 routers in four countries spanning three continents: Ukraine, Mexico, India, and the Philippines. The hacked routers were all made by Cisco, but FireEye says “this attack could be possible on any router technology.”
The attackers breached the routers using a sophisticated form of malware which FireEye named SYNful Knock, as a reference to how the malware, once planted, can jump from one router to another using the devices' syndication functions. “We believe that the detection of SYNful Knock is just the tip of the iceberg when it comes to attacks utilizing modified router images (regardless of vendor),” researchers Tony Lee and Bill Hau wrote on FireEye's security blog. “As attackers focus their efforts on gaining persistent access, it is likely that other undetected variants of this implant are being deployed throughout the globe.”
Routers are responsible for deciphering and then delivering (or “routing”) broadband information from your modem to your computer. As FireEye's Chief Executive Dave DeWalt told Reuters, “If you own [seize control of] the router, you own the data of all the companies and government organizations that sit behind that router.”
Firewalls, anti-virus programs and other anti-hacker security measures might protect your computer, smartphone, or similar device, but it won't protect the routers that deliver information to those devices. “Ironically, [routers] often get overlooked for endpoints, mobile devices, and servers when it comes time to respond to an attack,” FireEye said. “However, a router implanted with a backdoor provides attackers a very easy entry point to establish a foothold and compromise other hosts and critical data.”
If that comment about implanting backdoors sounds familiar, you might be thinking of the so-called “backdoor” mandates which the (ironically named, in such instances) National Security Administration, as well as the FBI and other branches of the government want tech companies to install on all encrypted communications technologies. This would leave a backdoor on each network so that government has full access to read secure information without your knowledge, and if that means hackers also get full access, that's a risk the feds are willing to force you to take.
In March, Microsoft issued a security advisory admitting that it was “aware of a security feature bypass vulnerability” which “affects all supported releases of Microsoft Windows,” in addition to any non-Microsoft software running on a part of Windows called Secure Channel.” That vulnerability was a security flaw known as FREAK, a not-quite-acronym which stands for “Factoring attack on RSA-EXPORT Keys.” FREAK made it possible for attackers to spy on supposedly secure communications. And it was the NSA's anti-encryption “backdoor” mandates that made the vulnerability possible.
Attacks ongoing for at least a year before discovery
Ironically, the NSA's and FBI's own websites were included among the major world websites vulnerable to FREAK attacks.
As Apple CEO Tim Cook said in June, “If you put a key under the mat for the cops, a burglar can find it too.”
That said, the hackers who used SYNful Knock to successfully attack those 14 Cisco routers didn't have to exploit any vulnerability to gain access. Instead, as Cisco said to Reuters, the attackers got in by either stealing valid login credentials from someone else, or by gaining physical access to the routers themselves.
A survey of computer logs suggests the attacks have been ongoing for at least a year before their discovery, and FireEye's Dave DeWalt told Reuters that multiple industries and government agencies were included among the targets.
Target teams with Instacart to take on Amazon
Will test grocery delivery in Minneapolis market09/15/2015ConsumerAffairsBy Mark Huffman
Amazon.com delivers just about everything to your door, including groceries. But other grocery retailers aren't ceding that part of their business to the o...
Amazon.com delivers just about everything to your door, including groceries. But other grocery retailers aren't ceding that part of their business to the online retailer.
Target has just announced it will team up with Instacart, a delivery company, to deliver online grocery orders in the Minneapolis market. Target says consumers can go to Target.com to buy groceries and have the order delivered in as little as an hour. The service will add $3.99 to the grocery bill.
“Our goal is to make grocery shopping easier and more convenient,” said Jason Goldberger, President of Target.com and Mobile. “Our team is constantly listening to guests’ needs and looking for new ways to help them shop Target wherever, whenever and however they want.”
Next big thing?
It might seem strange that major corporations think ordering groceries online is the next big thing, but with Amazon staking out its territory, few are willing to give up without at least exploring the concept.
In fact, it could catch on. In the 1940s and 50s, local supermarkets routinely took grocery orders over the phone and delivered the ordered items to customers' kitchens. At the time, many women either did not drive or did not have access to a car during the day, making grocery shopping difficult.
Other companies, including Webvan, tried to revive the concept in the 1990s but failed to find enough of a market. Webvan went bankrupt in 2001.
Things are different today, of course, but in a way they aren't. Everyone in the household is busy and there is little time to actually go to a store. The Internet makes ordering even easier than decades ago, so it just might work.
“Instacart is a leading player in this space and we look forward to seeing how guests in the Minneapolis area respond to the service,” Goldberger said.
Room for expansion
In addition to groceries, the collaboration between the two companies will allow consumers to buy select Target household, health and beauty, pet, and baby products such as diapers and formula.
The initial delivery area includes select Minneapolis neighborhoods and some western suburbs. Consumers can use Instacart.com or the Instacart app to shop Target for delivery. The companies say they are exploring plans to expand into additional areas and markets.
Amazon's grocery delivery service is called Amazon Fresh. It offers same day and early morning delivery from local shops and restaurants for $299 a year after an initial free trial period.
Store operators continue to be plagued by organized retail crime
More resources are being marshaled to combat the gangs09/15/2015ConsumerAffairsBy James Limbach
Organized retail crime continues to be a major problem in the U.S. The National Retail Federation’s https://nrf.com/ (NRF) 11th annual Organized Retail C...
Organized retail crime continues to be a major problem in the U.S.
The National Retail Federation’s (NRF) 11th annual Organized Retail Crime (ORC) Survey, which polled 67 senior retail loss prevention executives, found that nearly all (97%) of retailers surveyed reported that they had been a victim of ORC in the past year, versus 88.2% who said so last year.
And, of those who had been victimized over the past year, the survey also found that more retailers this year have seen an increase in ORC activity at their own company -- 84.9% versus 60.3% last year.
Not taking it
More companies, the survey found, are investing in tools and resources to combat the growing problem. Overall, 47% of those asked say they are allocating additional resources of some kind, compared with 41.3% last year. Specifically, the survey found 31.8% of retailers are allocating additional resources to staffing, versus 22.7% last year, and nearly one-quarter (24.2%) are adding additional budget resources.
“Even with state-of-the-art technology available, trained employees on the ready, extensive partnerships with all levels of law enforcement and additional resources on hand, retailers continue to grapple with the challenges that come with fighting organized retail crime,” said NRF Vice President of Loss Prevention Bob Maraca. “Brazen and often dangerous criminals are finding new ways every day to manipulate the retail supply chain; from the docks where merchandise comes in to criminal flash mobs that involve several individuals running into a store at once, the methods used by crime gangs today run the gamut. These new criminal methods are making it even more crucial for retailers and law enforcement to work together to combat this crime.”
Government help needed
Five states have enacted their own state legislation around ORC so far this year, bringing the total to 30 states that now have laws against criminals who are found to be associated with an organized retail crime gang.
The NRF asked retailers about the support they get from law enforcement in the states where they have a presence and that have ORC laws, and the survey found 15.4% of those surveyed say they have noticed an increase in support from federal law enforcement; just 9.6% said so last year; 43.1% say they’ve noticed an increase in support from local/county law enforcement and 24.6% say support from state law enforcement has grown.
Because organized retail crime gangs have the means to transport stolen products through multiple states and even overseas, retailers believe the need for federal legislation is greater than ever. For the first time, the NRF asked if they believe a federal ORC law is needed to effectively combat the issue, and 78.8% said “yes.”
“Organized retail crime continues to be an issue plaguing retailers, and there continues to be a need to pass strong ORC legislation that defines the issues and provides law enforcement with the necessary tools to help retailers combat the issue,” said NRF Vice President of Supply Chain and Custom Policy Jon Gold. “These vast and often dangerous crimes are not limited to any state or jurisdiction and are why we continue to push for federal legislation.”
Retailers on average report they have lost $453,940 per $1 billion in annual sales over the past year. Additionally, the survey found that, on average, retailers allocate approximately $434,032 to specific organized retail crime personnel in their company.
Organized retail crime gangs often use fake locations for their extensive operations, including store fronts, pawn shops, flea markets, and kiosks. According to the survey, 59.1% say they have recovered stolen merchandise from a physical fence location in the past 12 months. When criminals aren’t using actual locations to house their stolen goods and run their crime operation, many turn to the internet for the anonymity it offers. Over the past year, 59.7% of retailers surveyed say they have identified or recovered stolen merchandise from an e-fencing operation.
Savvy criminals are also finding ways to manipulate well-intentioned store return policies. According to the survey, two-thirds of respondents say they have experienced thieves returning stolen merchandise for store credit, to then sell that merchandise credit to secondary market buyers or sellers.
For the first time, the NRF asked where retailers have recovered the stolen merchandise credit cards, and most say they have found them on websites (54.5%), at pawn shops (24.2%), and at check cashing stores (13.6%).
Top crime activity locations
Organized retail crime is a problem throughout the country, but many cities have remained top locations for ORC activity for the past several years. The top ten locations that retailers say have the most criminal activity are (by rank):
- Los Angeles
- New York
- Arlington/Dallas/Ft. Worth
- San Francisco/Oakland
- Orange County, Calif.
- Northern New Jersey
Lease deals look attractive, but you have to do the math
A low monthly payment doesn't tell the whole story09/15/2015ConsumerAffairsBy Mark Huffman
September and October are generally pretty good months in which to buy a new car, since new models are flooding dealers' lots and there are plenty of incen...
September and October are generally pretty good months in which to buy a new car, since new models are flooding dealers' lots and there are plenty of incentives to move current models.
This year we're seeing some of these attractive deals in the form of leases. For example, in select markets Chevrolet is offering a lease deal on the base model Malibu for a jaw-dropping $99 a month, not much more than a cell phone contract.
However, the deal might not be as attractive as it seems at first glance. The best part, of course, is the ridiculously low monthly payment. But the deal requires a nearly $2,500 down payment.
It's also just a two-year lease with just 20,000 total miles. Divided over 24 months the $2,495 down payment adds another $100 a month or so to the cost of the lease.
Extra mileage costs
If you exceed the 20,000 mileage limit by 4,000 – and that would mean just putting 1,000 miles a month on the vehicle – the 25 cents a mile surcharge would require you to write a check for $1000 when you turn the vehicle in at the end of the lease.
So the total cost of leasing the base model Malibu is $5,871, or $244.62 a month.
An extra year
It's a three year lease, meaning that down payment is spread over three years instead of two. The mileage allowance is only 30,000 miles – less than 1,000 miles a month – but the mileage surcharge is just 15 cents a mile instead of a quarter.
Assuming the car is driven an extra 6,000 miles, at the end of the lease a consumer would have spent a total of $11,943 over three years, or $331.75 a month. The luxury Acura is less than $100 a month more than the Malibu, mainly because the consumer gets an extra 12 months worth of driving.
“These are beginning to feel like the ‘golden years’ of leasing, with some of the best deals ever offered to consumers on popular cars, trucks and SUVs,” said Scot Hall, Executive Vice President of Wantalease.com. “We expect this trend to continue for some time, especially as consumer demand for car shopping remains healthy in addition to a consistently improving economy.”
Do some math
But as our example shows, you have to do some math to determine which lease deals are best and which will best serve your needs. Personal finance experts say the first rule of shopping for any kind of car, whether for purchase or for lease, is to forget the monthly payment and instead, focus on the purchase price, interest rate, and the length of time you'll be making payments.
Leases have become more attractive lately because the average transaction cost of a new vehicle is well north of $30,000. Financing the entire purchase over a four or five year term – even at today's very low interest rates – results in a huge monthly payment. That's resulted in some consumers financing vehicles for six, or even seven, years.
When you lease a vehicle you aren't paying for the entire car – just the part that you'll be using for the two or three years you're driving it. The advantage is you'll drive a new car with the latest technology and safety features at a lower monthly cost than if you purchased the vehicle. The disadvantage – you have to give it back at the end of the lease term and start all over.
The Fed's interest rate decision and what's at stake
Policymakers will show their hand on Thursday09/15/2015ConsumerAffairsBy Mark Huffman
On Thursday the Federal Reserve Open Market Committee (Fed) may announce that it is raising interest rates for the first time in seven years. On the other ...
On Thursday the Federal Reserve Open Market Committee (Fed) may announce that it is raising interest rates for the first time in seven years. On the other hand, it might not.
The will it or won't it question has been Wall Street's obsession for months now, and it has spawned a wide variety of economic theories about what happens if the Fed, as expected, raises interest rates by one-quarter of a percent.
Theories range from the apocalyptic to the benign, and any number of smart, thoughtful people paint very different scenarios. So, what is the average consumer to think?
Stock market impact
First, raising interest rates is very likely to have a short-term negative impact on the stock market. That's because of the distorting effect cheap money has on stock valuations.
Think back to the housing bubble. A major reason home values soared as high as they did was because mortgage money to buy them was overly plentiful. Money wasn't exactly cheap but “creative” financing allowed buyers to purchase a home with low “teaser” rates for a couple of years before the rate reset to normal levels.
Current interest rates below 1% make it very cheap to buy stocks on margin, or in the case of corporations to buy back shares of their own companies to keep stock prices high. As a result, traders and investors could justify paying more for a stock than it's really worth, based on its fundamentals.
When rates go up it costs more to buy those shares, so the valuation has to be adjusted lower. That's what many economists expect will happen.
Shiller weighs in
Yale's Nobel economics laureate Robert Shiller has been outspoken in his concern that many stocks are currently overvalued.
“It looks to me a bit like a bubble again with essentially a tripling of stock prices since 2009 in just six years and at the same time people losing confidence in the valuation of the market,” Shiller told the Financial Times.
But Shiller is not one who is predicting a Fed interest rate hike will crash the stock market. He says the market has seen this coming for so long that it's really “no big deal” at this point. But at some point in the future, Shiller said he expects stock valuations to become more realistic, bringing prices down.
Mohamed El-Erian, chief economic advisor to Allianz, also believes the market holds some downside risk. But like Shiller, he thinks it could come from worsening economic conditions, rather than Fed policy.
But if stocks drop sharply in the months ahead, El-Erian told CNBC that he thinks it would be a “once in a decade” opportunity to buy bargain stocks.
So it sounds like the Fed raising rates might not cause lasting harm to the markets, but what about the economy?
In a media briefing late last week, Claudio Borio, an official of the Bank for International Settlements (BIS), noted that developing nation debt, in particular borrowing from the U.S., has surged since the financial crisis. But lately, credit has begun to dry up.
$3 trillion in debt
“The total amount of dollar credit to non-bank borrowers outside the United States had risen by over 50% since early 2009, to $9.6 trillion by the end of March 2015, and almost doubled for emerging market economies, to over $3 trillion,” Borio said.
Much of that money, he says, ended up going to foreign corporations that may, or may not, be able to pay it back.
That's why many international economists are urging the Fed not to raise interest rates just yet. The U.S. economy may be recovering and can withstand a modest hike – the rest of the world, however, might not.
In a global economy, the danger for the U.S. – and by extension U.S. consumers – is the threat that a global recession becomes a U.S. one as well.
ATMs that don't require debit cards may be the future
Banks say they are more convenient and more secure09/15/2015ConsumerAffairsBy Mark Huffman
ATMs, which dispense billions of dollars in cash to consumers, are undergoing some radical changes.Fiserv, Inc., which provides financial services tech...
ATMs, which dispense billions of dollars in cash to consumers, are undergoing some radical changes.
Fiserv, Inc., which provides financial services technology to banks and other institutions, says it has completed a successful pilot with Jacksonville, Fla.-based VyStar Credit Union. The new prototype ATMs the company has installed offer card-free access to cash.
Don't have your debit card with you? It won't mean you can't withdraw cash.
“Member convenience is a key component of our overall payments strategy,” said Melissa Thomas, vice president, Electronic Payments and Card Services, VyStar Credit Union. “With CardFree Cash, our members can securely access funds from an ATM immediately without their debit card, regardless of the reason they don’t have it with them.”
There could be a number of reasons a consumer might not have his or her debit card. But the new system allows access to cash using a secure access code and PIN at a participating ATM. To increase security, the credit union can set withdrawal limits, number of transactions allowed, and a limit on the length of time the access code can be used by each member.
“Today’s consumers have come to expect immediate, easy and secure access to their money,” said Vincent Brennan, president, Card Services, Fiserv. “Card replacement can take time, and wire transfers can be expensive. Instant access to funds without a card helps financial institutions improve service and security.”
Card-free cash withdrawals will remain in the pilot phase while being evaluated. Transactions are performed using Payment Alliance International’s (PAI) participating ATMs and completed over the Accel debit payments network.
“ATMs aren’t just for card-carrying consumers anymore,” said John J. Leehy, III, president and chief executive officer of PAI.
In fact, The Wall Street Journal reported earlier this year that the Chicago-based BMO Harris Bank also launched a cardless ATM network. With this system, customers use a smartphone app to access cash from ATMs. The bank said the technology not only speeds up transactions but guards against fraud.
The smartphone works like an debit card. A consumer logs onto a mobile banking app, enters the amount to be withdrawn, then goes to an enabled ATM. By pressing the mobile cash button on the ATM, the customer holds up the QR code on the smartphone screen, which is scanned by the ATM, which then dispenses the cash.
Talk to your elderly relatives so they'll be on guard against these scammers09/15/2015ConsumerAffairs
The average victim of a “grandmother scam” loses $4,000 to the scammers, Ohio's Attorney General Mike DeWine said in a warning to families. So far this yea...
New safety standards expected for laundry pods
Thousands of children have been treated after mistaking the pods for candy09/15/2015ConsumerAffairsBy Truman Lewis
New safety standards for those tasty-looking little laundry pods are in the works. The American Society for Testing and Materials (ASTM) is expected to ado...
New safety standards for those tasty-looking little laundry pods are in the works. ASTM International, a safety standards organization, is expected to adopt the standards tomorrow.
The problem is that the pods look like candy, at least to a child's eye. They're fairly easy to bite into and before anyone knows it, the child has swallowed a mouthful of detergent that can cause vomiting, coughing, choking, and respiratory distress.
About 11,700 childen under the age of five were treated for just such incidents in 2014, according to the American Association of Poison Control Centers. Several children have died and hundreds have been hospitalized with serious injuries.
The new ASTM standards are expected to call for child-resistant and less colorful packaging. They will also have a foul-tasting coating on the outside of the pods. ASTM is a non-profit industry organization that sets standards for products and processes.
Head off legislation
The standards may head off pending Congressional legislation that would have enshrined the standards in law.
“From child-resistant packaging to consistent warning labels, we are glad to see the industry move forward with nearly every policy we outlined in our legislation,” said Sen. Dick Durbin (D-Ill.) and Rep. Jackie Speier (D-Calif.), who are among the supporters of the legislation.
“These are common-sense protections, many of which are in line with standards that have been set in Europe where incident rates have declined. As these standards are adopted over the next year, we will be monitoring their effectiveness and evaluating whether further action or legislation may be needed,” the lawmakers said.
The pending legislation would require the U.S. Consumer Product Safety Commission (CPSC) to set mandatory safety standards for easily accessible liquid detergent packets. Specifically, the bill would give the CPSC the authority and direction to issue rules requiring safer, child-resistant packaging for liquid detergent packets within eighteen months, compelling the industry to implement stronger and more effective policies
FDA orders halt to sale of four cigarette products
Camel Crush Bold, Pall Mall Deep Set Recessed Filter, Pall Mall Deep Set Recessed Filter Menthol and Vantage Tech 13 pulled from market09/15/2015ConsumerAffairsBy Mark Huffman
The Food and Drug Administration has used its newly-acquired tobacco regulating power again – this time to order R.J Reynolds to stop selling four cigarett...
The Food and Drug Administration has used its newly-acquired tobacco regulating power again – this time to order R.J Reynolds to stop selling four cigarette products.
The order covers Camel Crush Bold, Pall Mall Deep Set Recessed Filter, Pall Mall Deep Set Recessed Filter Menthol and Vantage Tech 13, with the agency ruling the products don't meet guidelines set out in the Federal Food, Drug, and Cosmetic Act (FD&C; Act).
The issue, according to the FDA, is these products are different from their versions that were on the market in early 2007. More specifically, the agency concluded the current products have different characteristics than those that came before and the manufacturer failed to show that the new products do not raise different questions of public health. As a result, the four products may no longer be distributed or sold in the U.S.
“These decisions were based on a rigorous, science-based review designed to protect the public from the harms caused by tobacco use,” said Mitch Zeller, director of the FDA’s Center for Tobacco Products. “The agency will continue to review product submissions and exercise its legal authority and consumer protection duty to remove products from the market when they fail to meet the public health bar set forth under law.”
The Family Smoking Prevention and Tobacco Control Act, signed into law in 2009, gave the FDA new powers to regulate tobacco, which it lacked in the past. However, the agency starting exercising those powers only recently.
In late August, the FDA fired off warning letters to three cigarette manufacturers – ITG Brands LLC, Santa Fe Natural Tobacco Company Inc., and Sherman’s 1400 Broadway N.Y.C. Ltd. — for making unsubstantiated claims about their products. That was the first time the FDA acted under the 2009 law.
Changed with no notice
In this latest action the agency expressed concern the cigarette products were changed with no notice, making them different from their previous approved versions.
The FDA said the scientific basis for these four decisions include a “failure to demonstrate that increased yields of harmful or potentially harmful constituents, higher levels of menthol, and/or the addition of new ingredients in the currently marketed products– when compared to the predicate products – do not raise different questions of public health.”
The benefits your card offers aren't etched in stone; they can disappear overnight09/15/2015ConsumerAffairsBy Truman Lewis
Those "update" notices from credit card issuers that no one ever reads? You should read them to avoid unpleasant surprises, a recent...
Green seals may not tell the whole story
FTC warns businesses to be specific in their environmental claims09/15/2015ConsumerAffairsBy Truman Lewis
It's one thing to say your product is "eco-friendly." It's another to say that it is recyclable. One claim is very broad, the other very specific. It's up ...
It's one thing to say your product is "eco-friendly." It's another to say that it is recyclable. One claim is very broad, the other very specific. It's up to businesses and marketers to know the difference, according to a reminder from the Federal Trade Commission.
The FTC staff has sent warning letters to five providers of environmental certification seals and 32 businesses using those seals, alerting them to the agency’s concerns that the seals could be considered deceptive and may not comply with the FTC’s environmental marketing guidelines.
“Environmental seals and certifications matter to people who want to shop green,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “But if the seals’ claims are broader than the products’ benefits, they can deceive people. We are holding companies accountable for their green claims.”
Hard to tell
It's hard for consumers to know whether a product is really, really green. After all, who knows if that coffee cup is really made from recycled paper? That's where certification seals come in -- they can provide some assurance that a product is what it claims to be.
But if those claims are too broad -- using words like "green" and "eco-friendly" -- they could be construed as misleading and deceptive. After all, there are very few products that are totally benign.
Besides the warning letters, the FTC has a new business blog post, Performing Seals, that it says can help marketers understand how certification seals can comply with the Green Guides.
The agency did not disclose the businesses and organizations to which it sent the warning letters.
Lawsuits challenge Chicago tax on video streaming services
Nine percent tax on Netflix, Hulu, etc., is unauthorized, residents claim09/15/2015ConsumerAffairsBy Truman Lewis
"If it moves, tax it," has been the unofficial motto of taxing authorities for generations, so no one was too surprised when Chicago decided to begin taxin...
"If it moves, tax it," has been the unofficial motto of taxing authorities for generations, so no one was too surprised when Chicago decided to begin taxing Netflix and similar streaming services. But that doesn't mean they like it.
In fact, many local residents are outraged by the whopping nine percent "amusement tax" Chicago has applied to video services. They've filed suit against the city and comptroller Dan Widawsky for the action.
The lawsuit charges that Widawsky has "exceeded his authority" in implementing the tax because Chicago's municipal code does not "authorize the comptroller to impose new taxes that the city council has not authorized through a city ordinance," Courthouse News Service reported.
A mayoral mouthpiece earlier claimed the city was just trying to "ensure that city taxation is uniformly and fairly applied" but the lawsuit says the tax is anything but fair.
It notes that the nine percent tax is applied only to streaming rentals, not to online sales of DVDs of the same programs. It also notes that the city charges only a five percent amusement tax in venues seating more than 750 people and no tax at all for smaller venues.
Few living rooms seat 750 people, so the plaintiffs say the tax is clearly discriminatory and unfair. Besides, they argue, the federal Internet Tax Freedom Act provides that a municipality cannot "impose multiple or discriminatory taxes on electronic commerce."
FDA: New rules will make your foods safer
The rules cover the route from farm to table09/15/2015ConsumerAffairsBy James Limbach
The Food and Drug Administration (FDA) recently adopted new rules that it says will keep your food safe. The first two of seven rules proposed to implemen...
The Food and Drug Administration (FDA) recently adopted new rules that it says will keep your food safe.
The first two of seven rules proposed to implement the Food Safety Modernization Act (FSMA) (the preventive controls rules for human and animal food -- meaning food companies will apply greater controls to prevent hazards) are now final. The additional rules will become final through 2016.
Your first reaction is probably WIIFM -- what's in it for me? Plenty, says FDA. Here are five ways the FSMA rules will affect you:
Food companies tighten their controls
“Rather than just react to outbreaks, we are requiring food facilities to take measures to prevent them from the get-go,” says Jenny Scott, M.S., a senior advisor in FDA’s Office of Food Safety. Food facilities will need to think upfront about what could be harmful to consumers, and then put controls in place to minimize or prevent those hazards.
For example, Scott says the facilities could take steps to kill bacteria that cause foodborne illness or to prevent them from growing in food. If allergens (things that can cause an allergic reaction) are a hazard, the facility could pay particular attention to how equipment is cleaned when it is used for more than one product so that allergens aren’t transferred from one food to another, and ensure that the product label identifies the presence of food allergens. Unidentified food allergens are a major cause of food recalls by industry.
Protections from tainted animal food
With the Preventive Controls for Animal Food rule -- the second final rule -- “the same up-front thinking now required of human food manufacturing will also apply to manufacturers of animal food, including pet food,” says Dan McChesney, Ph.D., director of the Office of Surveillance and Compliance in FDA’s Center for Veterinary Medicine.
If pet food manufacturers have methods in place to kill harmful bacteria, it will be much safer for both the pet and for anyone handling the food, McChesney says.
He adds that with a new prevention-oriented system in place, the FDA expects reductions in the risk of serious illness and death to animals when hazards, such as harmful levels of substances in a product, are controlled.
Healthful and safe eating go hand-in-hand
The final Produce Safety rule, which will be issued this fall, will create safeguards to help prevent illnesses in ways that are appropriate for farms.
“Farms, unlike factories, are open environments,” says Samir Assar, Ph.D., director of FDA’s Division of Produce Safety. “There are elements we understand that farms can’t necessarily control.” However, there are actions that can, and must, be taken to minimize the likelihood of contamination in ways that are practical and feasible for growers.
Farming conditions and methods for growing the same crop can differ widely from state to state and coast to coast, so the new regulations will focus on major conduits of contamination that are common to all or most farming environments, says Assar.
For example, standards have been proposed for agricultural water, farm worker hygiene or cleanliness, compost and sanitation conditions affecting buildings, equipment, and tools. These standards will apply to both domestic and imported produce.
The FDA anticipates the proposed produce rule would prevent hundreds of thousands of illnesses caused by produce each year.
Greater oversight of imported foods
The U.S. imports a lot of food. In fact, 15% of our food supply comes from other countries, including 80% of our seafood, nearly 50% of our fresh fruit and 20% of our fresh vegetables.
The rules specifically affecting imports -- Foreign Supplier Verification Programs (FSVP) and Third Party Certification -- are scheduled to become final this fall.
“The FSVP rule, when finalized, will require importers to assume greater responsibility to verify that the foods they import into the U.S. meet the same safety standards required of domestic producers,” says senior policy advisor Brian Pendleton, J.D.
A greater sense of confidence
“Up until now, everything has been reactive,” says Darin Detwiler, senior policy coordinator for the advocacy group STOP Foodborne Illness. ”This is the most sweeping food safety legislation passed within the last 70 years.”
Retail sales inch higher in August
The tiny advance was the second in a row09/15/2015ConsumerAffairsBy James Limbach
It wasn't much, but retail sales were up in August, building on July's advance. According to the Census Bureau, sales were up 0.2% from the prior month to...
It wasn't much, but retail sales were up in August, building on July's advance.
According to the Census Bureau, sales were up 0.2% from the prior month to $447.7 billion, and up 2.2% from the same time last year. The figures take into account seasonal variation and holiday and trading-day differences, but not price changes.
At the same time, the government revised its figures to show July's sales were up 0.7% instead of the 0.6% reported a month ago.
Strengths and weaknesses
The August increase was powered by increases at auto and parts dealers, restaurants, and grocery stores -- all of which showed gains of 0.7% -- and health and personal care stores (+0.8%). Those gains were offset by sales declines at gas stations (-1.8%), building material and garden equipment supplies dealers (-1.8%), and furniture and home furnishing stores (-0.9%).
Core sales -- which exclude motor vehicle dealers, gas stations, and building material and supply dealers -- were up 0.5% last month.
The complete August retail sales report is available on the Commerce Department website.
EPA reminds home owners to check septic tanks
Proper maintenance can save you thousands of dollars09/15/2015ConsumerAffairs
If the beginning of autumn is a busy time for you, then it might be hard to remember what day it is. With so many special occasions coming up, it might eve...
If the beginning of autumn is a busy time for you, then it might be hard to remember what day it is. With so many special occasions coming up, it might even be hard to remember if there’s a special week coming up. One such week that you should mark down on your calendars is Septic Smart Week. Backed by the U.S Environmental Protection Agency (EPA), it runs from September 21-25, and reminds home owners of the importance of maintaining their septic tanks.
Proper maintenance on your septic tank can really help you avoid throwing money down the drain. It can be easy to forget this important piece of your home’s infrastructure, but the price of doing so can be very steep. Charges for repairs can cost you thousands if something serious goes wrong.
Unfortunately, this is not a piece of equipment that you can change the batteries for and forget about. Many home owners simply throw an additive into their septic system and hope that any potential clogs will take care of themselves, much to their detriment when a problem finally does pop up.
The best thing you can do to take care of your septic tank is to call a specialist that knows what they’re doing. They can inspect your pump system and see if there are any problems developing that you may not be aware of. It is recommended that you have a specialist look at your system every three to five years.
Although calling a specialist is the best course of action, there is some maintenance that you can do to keep your septic system going strong. First, you should become more aware of what you dump down your sink. Greases from cooked food and other solid objects can wreak havoc on your septic system by causing pipes to clog, which can irritate your drain field.
Similarly, be careful about what you flush down the toilet. Disposable diapers, wipes, and feminine hygiene products can cost you dearly if flushed, so be sure to dispose of them properly. Other objects, like cigarette butts or cat litter, can also be harmful.
There are other things that you can have installed in your home to help out your septic tank as well. WaterSense products, for example, are great for saving water. Look into their faucets, toilets, and shower heads to see what works best for your home. Having less water flowing can help ensure that you’re not overloading your septic system. You can also save water by changing some common habits, such as spreading out your laundry into several loads or keeping the water running when brushing your teeth. Every little bit helps.
A septic system that is not operating properly will not only cost you money; it can also negatively impact the environment in a big way. Bad septic systems can pollute our water sources with excess nutrients or pathogens, which can make it unsafe to use. Just remember: a healthy septic system doesn’t just help you, it helps everyone.
Ram 2500 and 3500 trucks and cab chassis recalled
Front bracket components may separate from the frame09/15/2015ConsumerAffairsBy James Limbach
Chrysler (FCA US LLC) is recalling 149,512 model year 2014 Ram 2500 trucks and 2013-2014 Ram 3500 trucks and cab chassis manufactured October 9, 2012, to J...
Chrysler (FCA US LLC) is recalling 149,512 model year 2014 Ram 2500 trucks and 2013-2014 Ram 3500 trucks and cab chassis manufactured October 9, 2012, to July 29, 2014.
The recalled vehicles may have inadequate welds securing the front track bar frame brackets, which may result in the bracket components separating from the frame. Separation could make the vehicle more difficult to steer and control, increasing the risk of a crash.
The remedy for this recall is still under development. The recall is expected to begin October 9, 2015.
Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R46.
organicgirl Produce recalls baby spinach
The product contains trace levels of cadmium09/15/2015ConsumerAffairsBy James Limbach
organicgirl Produce is recalling a limited quantity of organicgirl baby spinach. Test results indicate the presence of trace levels of the naturally-occur...
organicgirl Produce is recalling a limited quantity of organicgirl baby spinach.
Test results indicate the presence of trace levels of the naturally-occurring element cadmium.
Because it is naturally-occurring in the earth's soil, trace levels of cadmium are found in many foods as well as in the water and air. There is no minimum health tolerance for cadmium in crops or soil in the U.S. at this time and the probability of acute health consequences from consumption of cadmium is remote.
No illnesses are reported in association with this recall.
The recall consists of 1,290 cases of five-ounce packages with a Use-by Date of September 13 and Product Code B030298-001B08S. The product was distributed in13 states: Arizona, California, Hawaii, Indiana, Kansas, Louisiana, Michigan, Missouri, New York, Oklahoma, Oregon, Texas and Utah.
Consumers should check their refrigerators for the recalled product, which should be discarded.
Consumers with questions may call the organicgirl consumer hotline at 866-486-4939, Monday - Friday, 8 a.m. - 5 p.m. (PST).
Chrysler recalls Dodge Darts with transmission issue
The transmission can unexpectedly shift into neutral while the car is being driven09/15/2015ConsumerAffairsBy James Limbach
Chrysler (FCA US LLC) is recalling 23,629 model year 2013-2015 Dodge Darts manufactured February 24, 2012, to June 16, 2015. The vehicles may experience ...
Chrysler (FCA US LLC) is recalling 23,629 model year 2013-2015 Dodge Darts manufactured February 24, 2012, to June 16, 2015.
The vehicles may experience failure of the transmission control module (TCM), causing the transmission to unexpectedly shift into neutral. If the transmission shifts into neutral, it can cause loss of motive power, increasing the risk of a vehicle crash.
Chrysler will notify owners, and dealers will replace the TCM and bracket, free of charge. The manufacturer has not yet provided a notification schedule.
Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R42.
Federal study urges lower blood pressure targets for seniors
In most cases, medication would be required to meet the lower target09/14/2015ConsumerAffairsBy Mark Huffman
There is no debate over the danger of high blood pressure. It's a killer. The debate is over what constitutes high blood pressure.A series of studies h...
There is no debate over the danger of high blood pressure. It's a killer. The debate is over what constitutes high blood pressure.
A series of studies has set different benchmarks, with different levels of risk. The latest study –this one produced by a branch of the National Institutes of Health (NIH) – could add to the confusion.
In what's being called a landmark clinical trial, researchers monitored the blood pressure of thousands of patients. In particular, they paid attention to systolic pressure – the top number in a blood pressure reading.
The study found that patients over age 50 who used medication to achieve a systolic reading of 120 reduced their rates of cardiovascular events, such as heart attack and heart failure, as well as stroke, by almost a third. They reduced the risk of death by almost a quarter, as compared to the target systolic pressure of 140. That's a significant reduction in risk.
“This study provides potentially lifesaving information that will be useful to health care providers as they consider the best treatment options for some of their patients, particularly those over the age of 50,” said Gary H. Gibbons, M.D., director of the National Heart, Lung, and Blood Institute (NHLBI).
But it isn't the only study out there. In 2014 an AMA panel of experts issued its Evidence-based Guideline for the Management of High Blood Pressure in Adults, determining that physicians were shooting too low, especially when they insisted their older patients achieve a blood pressure of 120/80. The panel said patients over 60 were fine with a blood pressure reading of 150/90. Blood pressure goals were also eased for adults with diabetes and kidney disease.
As expected, this was controversial. A month later researchers at Duke University added to the controversy when they proclaimed that there were 5.8 million Americans taking blood pressure medication who really didn't need the pills.
Based on the study sample, the researchers determined that the proportion of U.S. adults considered eligible for hypertension treatment would decrease from 40.6% under the old guidelines to 31.7% under the new recommendations. In other words, a lot fewer patients need to be taking drugs for high blood pressure.
What is normal?
The fact is, if you are 60 years old and in excellent physical condition, with regular exercise and a healthy lifestyle, you might be able to achieve a systolic reading of 120 without the aid of medication. But if you are a few pounds overweight and spend most of your time at a desk or in a chair, chances are good that you'll need a pill or two to get to 120/80.
So whether a normal blood pressure is easy or difficult to maintain without medication is of enormous importance – to drug manufacturers.
The sale of medication to control blood pressure is a huge part of the pharmaceutical industry. The government reports that in 2010, more than 58 million adults were treated for hypertension and spent more than $20 billion on medication to control blood pressure. According to Statista, the top five selling prescription blood pressure medications brought in $5.27 for pharmaceutical companies in 2011.
And there has been research suggesting that, in the end it might not matter all that much. As we reported in June, researchers at the University of Alabama Birmingham concluded that once you develop hypertension, even if it is eventually controlled with medication, it significantly increases the chance of having a stroke. In addition, the reearchers contend the risk of stroke went up 33% with each blood pressure medicine required to treat blood pressure to goal.
What to do
That doesn't mean that if you have elevated blood pressure you should ignore this latest study, but you probably shouldn't take it at face value either. Instead, have an informed conversation with your health care provider.
Make sure he or she is aware of the 2014 Evidence-based Guideline that raised blood pressure targets for older adults and discuss this latest research as well.
Over the years ConsumerAffairs has reported extensively on blood pressure research. Check out our articles here.