Current Events in September 2015

If you are a timeshare owner and happen to get a call from a telemarketer promising cash in exchange for your “bonus weeks,” Arizona Attorney General Mark Brnovich suggests hanging up.

Brnovich has filed a consumer fraud lawsuit against Condosmart LLC, an Arizona-based timeshare resale and rental advertising business. The suit accuses the company of making hundreds of unsolicited telemarketing calls to consumers who owned timeshare properties all over the U.S. 

According to Brnovich's records, consumers in Arizona, Arkansas, California, Florida, Georgia, Nevada, New Jersey, New York, Pennsylvania, and South Carolina may have paid Condosmart thousands of dollars for services that were not provided.

The suit claims Condosmart, which also does business as CS Marketing, CSR Financial, and Condosmart Marketing, engaged in deceptive and misleading business practices as it targeted consumers who owned timeshare properties.

“Routine misrepresentation”

Brnovich says the company's telemarketers were armed with a lot of information about the condo owners, including their name and where the property is located. He says that during sales calls, the telemarketers would routinely misrepresent that the owners had bonus, or extra, weeks that were available for sale to third parties.

For example, in some cases Brnovich says timeshare owners were told well-known Fortune 500 companies wanted to rent their extra timeshare weeks for large events like automobile races, trade shows, and sporting events.

The catch, says Brnovich, is the condo owner would be required to pony up anywhere from $995 to $1995 to market his or her “bonus” weeks.

The suit claims the company has violated the Arizona Telemarketing Solicitations Act by failing to file a verified registration before soliciting consumers and by failing to maintain a surety bond, as required by Arizona law.

Florida crackdown

In states where there tend to be a lot of timeshare properties – like Florida – state officials spend a lot of time prosecuting alleged timeshare fraud. Florida Attorney General Pam Bondi says her office is constantly investigating telemarketers that push their services on timeshare owners trying to get out from under their obligation, either by selling or renting their time.

Florida passed sweeping consumer protection legislation in 2011 that, among other things, prohibits a timeshare resale advertiser from providing brokerage or direct sale services, or misleading a consumer as to the advertiser’s sales success rate.

Bondi says timeshare owners should always be wary of any marketer who calls out of the blue, expressing the opinion that the consumer's property is in a “hot” area and in demand. Unless it's a South Beach property for the week between Christmas and New Years, it probably isn't.

Bond has other tips for avoiding timeshare resale scams here.

College freshmen, who are settling in on campus this week, probably arrived at school having already settled on a major. However, they might want to read this before finally making up their minds.

The workplace has its own needs and it turns out that colleges aren't supplying as many graduates to fill those slots. In some cases, they might be providing too many in other less-in-demand fields.

Researchers at Economic Modeling Specialists International (EMSI), working in association with employment site Careerbuilder.com, looked at post-recession trends in education and compared them with trends in hiring.

Unique inflection point

“The market is at a unique inflection point, and we need to make sure that we’re educating workers to have 21st century skills for 21st century jobs,” said Matt Ferguson, CEO of CareerBuilder.

The study uncovered a positive development. After years of promoting science, technology, engineering, and math (STEM) disciplines, colleges are turning out more students with STEM degrees.

But the survey also showed a slowdown in overall degree completions – especially those tied to developing strong communications and critical-thinking skills – and Ferguson says that's concerning.

“Nearly half of employers say they currently have job vacancies but can’t find skilled candidates to fill them,” he said. “We need to do a better job informing students and workers about which fields are in-demand and growing, and provide them with access to affordable education and training, so the journey to a high-skill job is an achievable one regardless of their socioeconomic situation.”

Degrees in demand

So which degrees are most in demand? The study found more than half of the top 10 broad programs leading the U.S. in degree completion from 2010 through 2014 were in STEM fields. There was a 49% growth in demand for degrees in science technologies.

There was a 45% increase in demand for degrees in natural resources and conservation. Demand for graduates with a background in parks, recreation, leisure, and fitness was up 44%, exceeding demand for experts in math and statistics, which rose just 35%.

There was also strong hiring demand for graduates with backgrounds in law enforcement and engineering.

The study found most of this growing demand occurred during the most recent year. If you happen to be majoring in one of these areas, you might have multiple job offers after graduation.

Degrees out of favor

If you are majoring in the humanities, job prospects might not be as bright. From 2010 to 2014, the study found only nine broad program categories experienced decline, nearly all of which were in humanities and social sciences.

Demand for applied science degrees were down 30%. There was a 17% drop in demand for library science degrees.

Of course, business needs often change and can do so relatively quickly. What's hot today may not be in demand tomorrow. The study found that culinary services demand grew from 2010 to 2013, then declined after that. The same is true for law degrees.

And if students are not really suited to an in-demand field, entering it might not be such a good idea. As we reported in April, a study by RTI International found that while nearly a quarter of high performing students who began pursuing a bachelor's degree between 2003 and 2009 declared a STEM major, nearly a third of these students had transferred out of STEM fields by spring 2009.  

After surging to a four-year high in July on massive cuts in military staffing, monthly job cuts plunged by more than 60% last month.

According to outplacement consultancy Challenger, Gray & Christmas, U.S. employers announced plans to reduce their payrolls by 41,186 workers -- a decline of 61% from the 105,696 terminations a month earlier. The July figure was the highest since September 2011, when monthly job cuts reached 115,730.

Even with the decline, the August total is 2.9 % more than the same month last year, when 40,010 workers were let go. This marks the seventh month this year that the job-cut total was higher than the comparable month from 2014.

So far this year, employers have announced 434,554 job cuts -- up 31% from the first eight months of 2014. With monthly totals averaging 54,319, 2015 job cuts are on track to exceed 650,000 for the year, which would be the highest year-end tally since 2009 (1,272,030).

Retailing bears the brunt

The retail sector saw the heaviest job cutting in August, with 9,601 planned firings. Most of those were related to bankruptcy of the A&P east coast supermarket chain, which is closing more than 100 stores and terminating a reported 8,500 workers by Thanksgiving.

The retail sector has announced 57,363 job cuts so far this year, a 90% surge over the 30,109 job cuts announced by this point in 2014.

“Overall, retail is relatively healthy, but we have seen some big layoffs this year, particularly from long-time players that simply have not been able to keep up with changing consumer trends,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas. “These retailers somehow manage to survive, but only through multiple bankruptcies, such as A&P. Earlier this year RadioShack announced 5,400 job cuts,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

The industrial goods sector saw the second heaviest downsizing activity in August, announcing 7,949 job cuts. That is the largest number for this sector since March, when 9,163 pink slips were handed out.

The oil patch factor

About 22% of the industrial goods cuts were related to the recent drop in oil prices. In all, 3,808 job cuts were attributed to oil prices last month, which is actually down 57% from July.

Since the beginning of the year, oil prices have been blamed for 82,268 job losses, mostly in the energy sector, but also among industrial goods manufacturers that supply equipment and materials for oil exploration and extraction.

“The stream of job cuts related to oil prices appears to be ebbing,” Challenger noted. “The majority of these cuts came in the first four months of 2015, when we saw more than 68,000 layoffs related to oil. Since May, fewer than 14,000 job cuts have been attributed to oil prices.”

Jobless claims

A big jump last week in first-time applications for state unemployment benefits.

The Labor Department (DOL) reports initial jobless claims jumped by 12,000 in the week ending August 29 to a seasonally adjusted 282,000. The previous week's level was revised down by 1,000.

DOL says there were no special factors impacting this week's initial claims.

The four-week moving average totaled 275,500 -- up 3,250 from the previous week. This tally is considered a more accurate gauge of the labor market as it strips out the volatility found in the weekly report.

The full report is available on the DOL website.

When the bottom fell out of the housing market in 2009, condominium owners took the hardest hit. Condo prices fell the fastest and have been the slowest to recover.

Real estate marketing site Zillow closely follows real estate values and the all-important negative equity line. Properties whose values remain “under water” are essentially locked out of the market. Since their owners owe more than the properties are worth, they can't be sold, except with a short sale or if they slide into foreclosure.

While single-family homes have gotten back in the black, condos have lagged. According to Zillow's latest negative equity report, only 15% of U.S. housing with mortgages remained in negative equity territory at the end of the second quarter, but 20% of condos remained underwater.

Zillow reports condo-owners were in far worse shape than single-family homeowners in Chicago, Orlando, and Las Vegas. There are only three markets – Detroit, Memphis, and Pittsburgh – where single-family homeowners were more likely to be underwater than condo-owners.

Big improvement

Of course, the situation is not nearly as bad as it was a few years ago. At its worst, more than 15 million homeowners were upside down on their homes.

Since then, foreclosures and short sales have turned over some of the worst of the distressed property. Rapidly rising home values freed many others, leaving only 7.4 million homeowners upside down at the end of June.

The return of first-time homebuyers to the market gave a big lift to the value of the lowest priced homes, helping that category recover. In some places, however, the cheapest homes are the most likely to still be under water.

Atlanta market

In the Atlanta market, for example, nearly 43% of the least valuable homes are in negative equity, while only 9.4% of high-end homes are underwater. The most affordable homes in Atlanta had seen appreciation slow for 12 straight months through June 2015. Now, however, Zillow reports low-end homes have been appreciating annually more than more valuable homes.

Since June 2014, bottom tier homes have gained value faster than the market as a whole, one reason negative equity there has dropped from 29% to 21% year-over-year. It's been the same story in markets like Sacramento, Riverside, and Phoenix - all areas where the housing market cratered.

"If the overall negative equity rate is going to continue to fall, it will need to keep being driven down by improving health at the bottom end of the market," said Zillow Chief Economist, Dr. Svenja Gudell. "The least valuable homes really bore the brunt of negative equity during the recession, and that's where most negative equity remains concentrated today. As more first-time buyers enter the market seeking these less expensive homes, home value growth at the bottom end could continue to outpace growth overall, which will be good news for millions of underwater homeowners in these homes."

But for all the progress, there is still a long way to go. In the top 35 markets in the U.S., Las Vegas, Chicago, and Atlanta continue to have the most homes under water. In Las Vegas, condo owners had 36.7% of underwater homes while condo owners in Chicago had 32.6%.

Sincerely Nuts of Brooklyn, N.Y., is recalling packages of Sincerely Nuts Macadamia Nuts (Raw) Whole and Sincerely Nuts Macadamia Nuts (Raw) Unsalted Halves and Pieces.

The product may be contaminated with Salmonella.

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

The recalled products were distributed nationwide via online sales through the company’s website www.sincerelynuts.com from June 16, 2015, through August 10, 2015, and at www.amazon.com.

The following products, packed in clear, flexible plastic packages, are being recalled:

• Sincerely Nuts Macadamia Nuts (Raw) Whole was sold in 1 lb., 2 lb. and 5 lb. packages bearing Lot Number T7R1A22045 and EXPIRES: 1/2016 stamped on the back label.
• Sincerely Nuts Macadamia Nuts (Raw) Unsalted Halves and Pieces come in 2 lb. packages bearing EXPIRES: 11/2015 stamped on the back label (there is no lot code). New product will have a lot number.

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

Consumers with questions may contact the company at 1-888-272-8780, Monday – Friday, 9:00 am – 3:00 pm (EST).

Sleeping Partners International of Brooklyn, N.Y., is recalling about 5,500 Tadpoles Baby and Kids Moses Baskets and 800 stands.

The basket can slide off an inclined surface and the stand can tip, posing a fall hazard for infants. Thus, the basket fails to meet the federal hand held infant carrier standard and the stand fails to meet the bassinet/cradle standard.

No incidents or injuries have been reported.

This recall involves the Tadpoles Baby and Kids brand Moses baskets and stands. The Moses basket is made from natural tan wild palm leaves and measures about 33 inches long by 14 inches tall and 10 inches wide.

The stand has a pine wood frame, a fabric platform and polyester rope design. The stand measures 17 inches tall by 14 inches wide and 15 inches wide when extended.

“Tadpoles” is printed on the clear plastic wrapping on the Moses baskets and stands.

The baskets and stands, manufactured in Morocco and China respectively, were sold at Babies R Us and buybuy Baby and online at Amazon.com, Bellacor.com, Kohls.com, Quidsi.com, Wayfair.com and Zulily.com from April 2014, through July 2015, for between $50 and $90 for the Moses basket and from June 2014, through July 2015, for between $25 and $35 for the stand.

Consumers should immediately stop using the Moses baskets as a hand held infant carrier. Consumers who purchased both items should immediately stop using the recalled stand and contact the firm for instructions on returning the basket and stand to receive a store credit.

Consumers may contact Sleeping Partners toll-free at (844) 489-9498 from 9 a.m. to 5 p.m. (ET) Monday through Friday or online at www.sleepingpartners.com.

Tinder users beware: the Better Business Bureau has issued warnings about a malware scam targeting you.

Any dating-site user is at risk of “romance scams” or “marriage scams,” also known as “catfishing”: the victim enrolls in an online dating site; they meet a supposed soul mate with whom they exchange frequent phone calls and online chats (although they never actually met face to face); the scammer claims to be in love and then starts citing sob stories which can only be alleviated if the victim sends money.

Such scams are common enough on all dating sites that the Better Business Bureau offers site-specific tips explaining “How to spot spam profiles on Tinder” or other places.

Newest scam variant

But this latest Tinder scam is a bit different from ordinary catfishing. Tinder is similar to a “standard” dating service, helping you find theoretically compatible possible matches based on your stated interests and whatnot, with the added advantage of geographical compatibility. As a Tinder user, you program in a certain geographic radius, and then the app will let you know about possible matches in your immediate area.

When you see a picture of a possible match, you swipe the picture to the left if you're not interested, and to the right if you are. This swiping is done anonymously, so you don't know who used a left-swipe to show disinterest in you, and those you rejected by swiping to the left won't know about you, either. If you right-swipe someone who also right-swipes you, Tinder considers that a “match” and “introduces” the two of you for a chat.

But catfishers who falsely proclaim love and then ask you for money aren't the only scammers on Tinder. Another danger, as the BBB has noted, is scammers who meet people on Tinder and then suggest taking the online chat to another website – usually a site filled with malware and spam.

Be extra-skeptical if you meet a “match” on Tinder, and he or she starts sending you links or suggesting you visit other websites. You should also be wary of anyone who asks for your mailing address, supposedly to send you flowers or a gift. Of course, these warnings aren't exclusive to Tinder; subscribers to any dating site should always be on the lookout for a scam.

There have been countless methods tried to encourage people to stop smoking. Businesses have offered smoking cessation courses and drugs for their employees who smoke. They've also made it harder to light up at work, restricting when and where employees can smoke.

Now researchers at the University of California (UC) Davis Health System have stumbled across a novel approach. Give employees a pay raise.

They're not talking about paying people not to smoke – that's one of the incentives that's been tried, with mixed results.

No, they're simply suggesting that giving someone more money in their pay envelope will make them more likely to kick the habit.

10% pay boost

In a workplace study, the researchers found that a 10% increase in wages leads to about a 5% drop in smoking rates among workers who are male or who have high school educations or less. Statistically, the extra pay improves an employee's overall chances of quitting smoking from 17% to 20%.

"Our findings are especially important as inflation-adjusted wages for low-income jobs have been dropping for decades and the percentage of workers in low-paying jobs has been growing nationwide," said study senior author Paul Leigh, professor of public health sciences and researcher with the Center for Healthcare Policy and Research at UC Davis. "Increasing the minimum wage could have a big impact on a significant health threat."

Socioeconomic divide

Earlier this year the Washington Post reported on the odd socioeconomic divide between smokers and nonsmokers. The report cited a 2008 Gallup Poll that showed the rate of smoking among people making less than $24,000 a year was more than double that of those making $90,000 or more.

The Post report speculated on three possible reasons, including the fact that lower-income smokers tend to take longer, deeper drags on their cigarettes and are more addicted to nicotine, making it less likely that they will quit.

Leigh and lead author Juan Du wanted to find out if simply raising wages, moving a smoker a little farther up the economic ladder, could make it easier to stop.

The team looked at data on wages, smoking status and state of residence for full-time employees aged 21 to 65 years from the 1999 to 2009 Panel Study of Income Dynamics. They excluded anyone who never smoked, since the goal was to evaluate influences on quitting rather than starting smoking.

"We assume that people begin smoking for reasons other than wages," said Leigh. "About 90% of smokers in the United States started smoking before age 20, so the data captured a sample of most full-time workers who have ever smoked."

Money as treatment

After reviewing the results, Leigh and Du concluded that money is a form of “treatment.” They aren't sure why, but there was a correlation between wage increases and reduced smoking among men and the less educated. They also found there were fewer smokers in states with higher minimum wages or higher rates of unionization.

But there is apparently a limit to what money can do. While better pay seemed to be linked to men kicking the habit, the researchers found no such correlation among women.

One theory? Leigh and Du speculate that men may be more likely to tie self-worth to their pay, increasing the likelihood of risky health behaviors among men in lower-paying jobs.

A North Carolina court has ruled that just because a major payday lender is affiliated with a Native American tribe, it still has to follow state lending laws.

As a result, Western Sky, CashCall, and affiliated quick-cash lenders are temporarily barred from making loans in North Carolina and, more importantly, from collecting loans already made.

“Consumers in need of quick cash got stuck with loans they could not pay off,” said North Carolina Attorney General Roy Cooper. “These kinds of loans are illegal in North Carolina because they bury struggling borrowers even deeper in debt and that’s why we’re fighting to keep them out of our state.”

Triple-digit interest rates

Cooper teamed up with the North Carolina Office of the Commissioner of Banks to sue the tribal-affiliated companies, accusing them of violating state laws that ban excessive interest rates on small consumer loans. The complaint alleged that consumers who took out personal loans of $850 to $10,000 from the defendants faced annual interest rates from 89.68% to 342.86%, far in excess of what the law allows.

The state officials have obtained a temporary court order barring the lenders from:

• Advertising, offering, or entering into contracts to make loans to North Carolinians.
• Soliciting or collecting payments from North Carolina consumers for loans.
• Selling or transferring any loans made to North Carolina consumers.
• Destroying, altering or concealing any records related to loans made to North Carolina consumers.

Whether those terms become permanent depends on what ultimately happens with the lawsuit. Cooper wants the court to cancel Western Sky’s loans, order refunds for North Carolina consumers, and permanently ban the defendants from collecting on the loans and making any future illegal loans to North Carolinians.

South Dakota-based Western Sky has argued it is exempt from state laws that ban its loans in North Carolina because it claims to be an Indian tribal entity. The court ruled that Western Sky is not protected by the fact that it is owned by a Native American.

It is Cooper's contention that Western Sky is really a for-profit company owned by an individual who happens to be a member of an Indian tribe, and is not owned or operated by or for the benefit of any tribe.

Cooper says his office has received complaints from more than 300 consumers about Western Sky loans.

Mortgage applications shot higher last week on the strength of falling Treasury rates.

The Mortgage Bankers Association (MBA) says its Weekly Mortgage Applications Survey shows applications posted a gain of 11.3% during the week ending August 28.

“Although mortgage rates were unchanged for the week, Treasury rates were down sharply early in the week due to the global stock market rout and this led to a significant increase in application volume,” said MBA Chief Economist Mike Fratantoni.

The Refinance Index jumped 17% from the previous week to its highest level since April 2015, sending the refinance share of mortgage activity to 58.7% of total applications. This is up from 55.3% the previous week.

The adjustable-rate mortgage (ARM) share of activity increased to 7.5% of total applications, the FHA share fell to 12.7% from 13.1% the week prior, the VA share dropped to 9.8%, and the USDA share of total applications slipped to 0.7% from 0.8% a week earlier. 

Contract interest rates

• The average contract interest rate for 30-year FRMs with conforming loan balances ($417,000 or less) was unchanged at 4.08%, with points increasing to 0.37 from 0.36 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate was unchanged from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) rose five basis points -- from 4.00% to 4.05%, with points increasing to 0.28 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 30-year FRMs backed by the FHA dipped to 3.87% from 3.90%, with points increasing to 0.32 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 15-year FRMs dropped three basis points to 3.30%, with points decreasing to 0.26 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
• The average contract interest rate for 5/1 ARMs jumped to 3.05% from 2.96%, with points unchanged at 0.36 (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.

Economic activity in the manufacturing sector expanded in August for the 32nd consecutive month -- but at a slower rate than in July.

The latest Institute For Supply Management (ISM) manufacturing report on business shows the August Purchasing Management Index (PMI) registered 51.1% last month -- a drop of 1.6% from July

The New Orders Index registered 51.7%, down 4.8% from July, while the Production Index was down 2.4% to 53.6%. In addition, the Employment Index was down 1.5%, putting it at 51.2%

Comments from supply executives reflect a mix of modest to strong growth, according to Bradley J. Holcomb, CPSM, CPSD, chair of the ISM Manufacturing Business Survey Committee, “depending upon the specific industry, the positive impact of lower raw materials prices, but also a continuing concern over export growth."

Of the 18 manufacturing industries, 10 have reported growth last month in the following order:

1. Textile Mills;
2. Furniture & Related Products;
3. Paper Products;
4. Nonmetallic Mineral Products;
5. Chemical Products;
6. Food, Beverage & Tobacco Products;
7. Miscellaneous Manufacturing;
8. Fabricated Metal Products;
9. Plastics & Rubber Products; and
10. Machinery.

The six industries reporting contraction in August -- listed in order -- were:

1. Apparel, Leather & Allied Products;
2. Primary Metals;
3. Electrical Equipment, Appliances & Components;
4. Petroleum & Coal Products;
5. Computer & Electronic Products; and
6. Transportation Equipment.

The nation's economy failed to create more than 200,000 jobs for the second straight month in August.

According to the ADP National Employment Report, private sector employment rose by 190,000 jobs from July to August.

"The job growth numbers for August improved slightly from July," said Carlos Rodriguez, president and chief executive officer of ADP. "The employment gains for the month are in line with the year to date average."

The report, produced by ADP in collaboration with Moody's Analytics, is derived from ADP's actual payroll data, and measures the change in total non-farm private employment each month on a seasonally-adjusted basis.

Who's hiring

Businesses with 49 or fewer employees added 85,000 payroll positions last month, an increase of over one-third from July. Employment among companies with 50-499 employees increased by 66,000 jobs -- 5,000 more than the previous month. Large companies -- those with 500 or more employees – added just 40,000 jobs -- 13,000 fewer than in July, while companies with 500-999 added 5,000 jobs and firms with more than 1,000 had 34,000 new hires.

Jobs in the goods-producing sector shot up by 17,000 -- more than double the July's gain of 7,000. Within that sector, the construction industry added 17,000 jobs and manufacturing hired 7,000 people.

Service-providing employment rose by 173,000 jobs in August, as professional/business services added 29,000 jobs, trade/transportation/utilities grew by 28,000, and 13,000 people four work in financial activities.

"Recent global financial market turmoil has not slowed the U.S. job market, at least not yet,” said Moody's Analytics Chief Economist Mark Zandi. “Job growth remains strong and broad-based, except in the energy industry, which continues to shed jobs. Large companies also remain more cautious in their hiring than smaller ones."

VRVK Nutraceuticals, doing business as Dr. Venessa's Formulas of Orlando, Fla., is recalling 3998 bottles of Ultimate Antioxidant Tablets dietary supplement.

The product may contain crustacean shellfish, an allergen not listed on the label, along with Hesperidin Complex 40%, pancreatin powder and pepsin, ingredients that contain milk, also not listed on the label.

No illnesses have been reported to date.

The recalled product is marketed as a dietary supplement and sold in white plastic bottles nationwide to consumers via the Internet. The lots in question are Lot Number 132415, expiration date 05/16 (1619 bottles sold), and Lot Number 141381, expiration date 06/17 (2379 bottles sold). Both lots bear UPC code 606851551205.

Consumers with allergies to milk and/or crustacean shellfish should not consume the product.

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

Consumers with questions may contact the company at 1-800-477-0031, Monday – Friday, 9 am – 4 pm (EST).

Bonduelle USA of Brockport, N.Y., is recalling 9,335 cases of frozen corn.

The product may be contaminated with Listeria monocytogenes.

The company says it has not received any complaints in relation to this product and is not aware of any illnesses associated with the product to date.

The recalled frozen cut corn was distributed was distributed to stores in the following states: New York, New Jersey, Pennsylvania, Vermont, Massachusetts, Indiana, Ohio, Kentucky, Maryland, Virginia, North Carolina, Florida, Mississippi and Louisiana in poly bags under the following labels and codes:

• WYLWOOD Super Sweet Whole Kernel Corn, NET WT. 16 OZ (1 LB), UPC 051933002401, Codes: Best By June 2017 K51564 and K51574;
• MARKET BASKET Cut Corn, NET WT. 16 OZ. (1 LB.), UPC 049705693414, Code: Best By June 2017 K51574;
• Bountiful Harvest WHOLE KERNEL CUT CORN, NET WT. 40 OZ. (2.5 LBS.), UPC 822486120597, Code: Best By June 2017 K51574;
• WEST CREEK FROZEN VEGETABLES Cut Corn, NET WT. 2.5 LBS., UPC 00806795285239 Code: Best By June 2017 K51574.

Customers who purchased the product are urged not to consume it and throw it away.

Consumers desiring a refund or with questions may contact the company at 1-877-990-2662, Monday - Friday, 9 am - 4 pm (EST).

The latest report from the Social Security Trustees Report assumes that for just the third time since the automatic adjustments were adopted in 1975, people who receive Social Security payments will not receive a cost-of-living-adjustment (COLA) in 2016.

COLAs only kick in when the Consumer Price Index (CPI), the official gauge of inflation, goes up. The CPI is not expected to increase in the base period used to determine the COLA.

A report by the Center for Retirement Research at Boston College says this would have an unintended consequence that would sock some Medicare recipients with a significant Medicare premium hike.

“Cause a flap”

“The anticipated lack of a Social Security COLA will cause a flap in the Medicare program because, by law, the cost of higher Medicare Part B premiums cannot be passed on to most beneficiaries when they do not get a raise in their Social Security benefits,” the authors write.

This unintended consequence also highlights the complicated interaction between Medicare premiums, which are generally deducted automatically from Social Security benefits, and the net benefit – the money available for non-health care expenditures.

According to the report, the Social Security COLA does not fully reflect the increase in health care costs faced by the elderly because the net Social Security benefit does not keep pace with inflation. While many seniors rely on the inflation adjustment in Social Security, “the rise in Medicare premiums undermines the ability of beneficiaries to maintain their purchasing power for non-health-care items.”

Medicare recipients are accustomed to paying more each year in premiums. The report finds that, barring any complicating factors, the premium would increase from $104.90 in 2015 to $120.70 for 2016.

Hold-harmless provision

But here's the rub; the law contains a hold-harmless provision that limits the dollar increase in the premium to the dollar increase in an individual’s Social Security benefit. This provision applies to roughly 70% of Part B enrollees. They have nothing to worry about.

The remaining 30% aren't covered by the hold-harmless provision. They include new enrollees during the year; enrollees who do not receive a Social Security benefit check; enrollees with high incomes (who are subject to the income-related premium adjustment), and dual Medicare-Medicaid beneficiaries - whose full premiums are paid by state Medicaid programs.

Because 70% of Medicare recipients would see no increase in the absence of a Social Security COLA, the Part B premiums for the remaining 30% must be raised enough to offset the rising costs.

52% premium hike

“Under the intermediate economic assumptions, the estimated monthly premium in 2016 for these other beneficiaries is $159.30,” the authors write. “That means that, unless the Administration figures out some workaround, the base Part B premium would rise from $104.90 to $159.30 – a 52% increase.”

For higher income participants, the premiums would rise even higher, based on multiples of $159.30.

“Clearly, political pressure will build for some kind of work-around,” the report concludes.

Television commercials for auto insurance companies seem to share a common theme. If you choose this “cut rate” insurance company and not ours, you could end up paying for uncovered damage.

The implication is that all policyholders of Company A are fully covered for everything while the poor policyholders of Company B are not.

In most cases, however, auto insurance companies offer policies that cover just about everything and policies that don't cover as much. It's all a matter of cost, and it's left up to the consumer to choose.

All about risk

Insurance is all about risk. When the insurance provider takes on more risk – responsibility for covering more potential damage – it charges more. If the consumer decides to take on more risk, through a larger deductible or less coverage, then the policy should cost less.

That's why consumers shouldn't pick an auto insurance company by its TV commercials but rather by what a coverage is provided at what cost. In other words, when comparing insurance policies, make sure you are comparing exactly the same coverage.

Deductible

One of the biggest cost factors is the amount of the deductible – the amount the policyholder must pay before the insurance company pays the rest. Many consumers instinctively choose a low deductible because they want to shield themselves from risk. That's what insurance is for, right?

Maybe once upon a time, but it doesn't always work that way now. Your monthly premium will be higher with a $200 deductible than with a $2,500 deductible.

Besides, the last thing you want to do with your insurance is file a claim. Doing so will raise your rates for years to come. Multiple claims may make it difficult to get insurance in the future. Filing a claim for $300 worth of damage will probably cost you a lot more in the long run than simply paying it yourself.

To their credit, most auto insurance companies offer consumers the chance to assume as much risk as they are willing to take on. It makes the insurance companies more competitive on price and allows consumers to save money.

Varies by state

Insurance is regulated on a state-by-state basis and some states will limit the amount of risk consumers can take on, especially in the area of liability coverage. According to Kelley Blue Book (KBB), your financial position should also influence how much or little risk to take on.

If you were at fault in an accident and someone else is injured, but your auto liability doesn't cover all of their medical bills, there is a very good chance you'll face a lawsuit for the rest.

“It's suggested that if you're a high-wage earner, a home owner or an asset holder, you should have higher limits compared to someone who doesn't own their own home, someone who has no real significant assets or someone whose income is lower,” KBB advises.

KBB has some other pretty solid tips for saving on auto insurance here.

Once upon a time the auto industry was accused of “planned obsolesce,” building vehicles that lasted only a few years before they would need to be replaced.

Sometime over the last decade or two, cars got a lot better. Sure, there were still problems and recalls, but, overall, consumers found they could drive a vehicle 11 or 12 years instead of four or five.

J.D. Power and Associates says automotive durability has “vastly improved” over the last 20 years, and a new report analyzes findings from several different data sources as evidence.

The evidence

When it comes to reported problems with cars, the number fell from 237 per 100 vehicles to 126 from 2005 to 2013, a 47% improvement.

Citing Polk data, J.D. Power says the age of the average vehicle on the road increased to 11.4 years in 2014, up from 8.4 years in 1995. Average mileage of compact and mid-size cars at wholesale auction increased 6% over the past 10 years, averaging 126,000 miles in 2004 to 133,000 miles in 2014.

The report found used cars are bringing higher prices and consumers are more willing to buy a used vehicle. It also found that consumers who buy new cars are driving them longer.

"Used Car Guide analysis revealed the average time for a new vehicle to enter the used market reached 64.7 months in 2014," said Jonathan Banks, executive analyst at the Used Car Guide division of J.D. Power. "Also when we analyzed J.D. Power's Power Information Network(PIN) data, we found new vehicle loan terms currently average 67.3 months. The length of new vehicle ownership is basically keeping pace with longer loan terms."

Larry Dixon, senior manager of market intelligence at the Used Car Guide division of J.D. Power, says the automotive improvements have not been lost on consumers, who are less anxious about buying a used car than in years past.

The report notes it is taking vehicles more time to depreciate to a point where the price of the vehicle stabilizes. In 1996 it took about 12 years for vehicle depreciation to stabilize. In the past two decades, the average vehicle age has grown to 15.3 years — a 29% increase.

Used cars getting younger

Consumers are also willing to pay more for used cars. Automotive site Edmunds.comreports the average used car sold in the U.S. is getting younger and pricier. Their analysis found that average used car prices hit a record high of $18,800 in the second quarter, up 7.6% — or $1,300 per vehicle — from the second quarter of 2014.

The average age of used cars sold in the second quarter of 2015 was 4.5 years, down from an average of 4.9 years the same time last year.

Because there are so many newer used cars on the market, it has had a dampening effect on prices. Edmunds' Director of Industry Analysis Jessica Caldwell says the influx of cars coming off leases has kept prices more “consumer-friendly” than in the past.

One of the hassles of modern air travel is getting through security checkpoints. Since 9/11, the threat of terrorism has passengers taking off shoes, tossing bottles of shampoo, and submitting to countless indignities, large and small.

All that may soon be a thing of the past, according to an analysis by Frost & Sullivan, a global consulting firm. It says automation and pre-processing are reducing the human interaction with travelers during airport passenger screening.

It's just the first step, the analysis promises. Before long an assortment of portal scanners, biometric collection devices, and pre-clearance based on voluntary background investigations will transform the passenger screening process.

If true, it would be timely good news. Air traffic is increasing, making security checkpoints even more of a bottleneck. International Air Transport Association (IATA) expects global annual airline passengers will reach 7.3 billion by 2034, more than double from the 3.3 billion reported in 2014.

Escalating passenger traffic

"To deal with the escalating passenger traffic, airports need to implement swifter and more efficient methods of passenger screening," said Frost & Sullivan analyst John Hernandez. "One solution could be to supply passengers with alternate venues and automated tools to prescreen them before they arrive at the airport."

A risk-based approach to security is already in place, allowing screeners to focus on travelers who are perceived to present a security threat. However, not all policymakers and aviation officials are convinced this is a good approach.

To arrive at a more thorough system, Frost & Sullivan says airports are looking for innovative technologies capable of screening a large number of people quickly and accurately. It goes without saying that these scanners need to detect non-metallic improvised explosive devices.

"Airports already employ automated systems such as automated passport control kiosks and automated border control, eGates, for international travel," said Hernandez.

The next step, he says, is to transition automated passenger screening to airport checkpoints.

Long-suffering motorists in Illinois and Michigan are finally seeing a little relief at the gas pump after refinery repairs have increased fuel supplies in those states.

According to the AAA Fuel Gauge Survey, the average price of self-serve regular in Illinois is $2.72 per gallon, down from nearly $3 a week ago. In Michigan, motorists are paying an average $2.47 per gallon, down 30 cents from last week.

There's still plenty of misery at western state gas pumps, however. In California, the statewide average remains at $3.33 per gallon. The average is just below $3 per gallon in Washington State.

Below $2 a gallon

East of the Mississippi, it's a very different story. Although AAA reports only one state – South Carolina – has a statewide average right at $2 per gallon, motorists in several states are finding fuel below that mark.

In a Tweet, GasBuddy.com senior analyst Patrick DeHaan noted 60% of the stations in South Carolina are selling gasoline for under $2 per gallon. He reports 34.5% of stations in Mississippi, 34.3% of stations in Alabama, 16.4% of stations in Tennessee and Arkansas, 16.1% of stations in Louisiana, and 15.2% of stations in Virginia and Texas are selling fuel below the $2 per gallon mark.

Best Labor Day since 2004

While refinery repairs have brought down prices in the Midwest, much of the rest of the country is seeing the result of the decline in oil prices during the first half of August. Because of the decline, Michael Green, AAA's manager of public relations, says consumers traveling over the Labor Day weekend should find the lowest fuel prices for that weekend since 2004.

“Despite the persistence of some regional refinery issues, average U.S. gas prices are falling at the fastest rates since December,” Green wrote in his weekly blog post. “The BP refinery outage in Whiting, Indiana, which sent prices markedly higher in the Midwest several weeks back, has resumed production. Prices continue to fall week-over-week in the previously impacted states of Michigan, Ohio, Indiana and Illinois.”

Despite the sub $2 gas in the Southeast, the Northeast is facing its own challenges, Green notes. He says the Phillips 66 Bayway refinery in New Jersey is operating at reduced rates. PBF Energy’s Delaware City refinery was forced to shut down its fluid catalytic cracking unit last week due to a fire. Fortunately for motorists in these areas, these East Coast issues have yet to significantly impact prices in the region as supply continues to outpace demand.

“Barring any major supply disruptions, consumers remain poised to pay the lowest national average for the holiday weekend in 11 years,” Green said.

However, a late August surge in oil prices could be a complicating factor. DeHaan says an $11 per barrrel rise in oil prices over just three sessions could impact Labor Day fuel prices.