Current Events in January 2017

When temperatures are freezing, you’re likely to take a few extra precautions before heading outdoors. Among them: grabbing a coat and making sure your extremities are protected against the elements.

Pets require special care in freezing temperatures, too. This time of year, pet parents are reminded that fur coats don’t offer all the protection pets need -- pets feel the bitter cold as easily as humans.

To keep pets warm and safe in winter, experts recommend reducing outdoor activities. What else can pet owners can do to protect their pets during severe weather? Here are a few tips from experts.

Winter weather pet safety

The ASPCA notes that exposure to winter’s dry, cold air, and chilly sleet and snow can cause chapped paws, and itchy, flaking skin. Pet parents can reduce these discomforts and prevent other cold weather dangers from affecting pets by taking the following advice:

• Forgo pet haircuts. Because longer coats give dogs more insulation, the ASPCA advises against shaving your dog in the winter. If you have a short-haired pup, consider having him sport a winter coat or sweater with a high collar or turtleneck in cold weather.
• Wipe down your pet. Make sure to wipe down your pet’s belly, legs, and paws. Paws caked with snow, salt, and ice-melting chemicals can irritate and even harm your pet if licked or swallowed. If possible, apply petroleum jelly or another paw protectant to your pet’s paws before venturing out for a winter walk.  
• Give extra food and water. Pets tend to burn a little more energy in the winter trying to stay warm. For this reason, experts recommend feeding your pet a little extra during winter months. Additionally, make sure your pet has access to plenty of clean, fresh water -- dry winter weather can be particularly dehydrating.
• Reduce baths. Baths can strip your dog of important essential oils, so fully bathe your pooch as little as possible during cold weather. If a bath is necessary, use a moisturizing shampoo and/or rinse. Just hoping to de-stink your dog? Consider using dry shampoo.
• Provide a warm place to sleep. Keep your dog comfortable and toasty at night by setting up a warm place to sleep. A pet bed with a blanket or pillow will work, as long as it’s off the floor and away from drafts.  
• Keep an eye on pets. Many pets get disoriented and lost in winter, so be sure to keep your pet on a leash when outside. Finally, remember that if it’s too cold for you, it’s too cold for them -- let dogs and cats come inside when it’s very cold outside.

Tanning beds are dangerous for everyone but a new study may surprise some people. It found that the health risks of tanning were nearly as great for gay black male teens as for heterosexual white women.

Earlier studies have shown sexual minority males have one of the highest known prevalence rates of skin cancer, with up to twice the risk of heterosexual males.

"Contrary to popular thought, racial and ethnic minorities engage in indoor tanning and it appears to be particularly concentrated among sexual-minority adolescent boys," said San Diego State University researcher Aaron Blashill, whose study was recently published in the journal JAMA Dermatology.

Confusion over why people with darker skin might use indoor tanning stems from an incomplete understanding of why people tan in the first place, Blashill said.

Coping strategy

"Many only think of indoor tanning as something people do to darken their skin, so the idea that a black individual would tan at all is hard for some to grasp," he said. "But if we think of indoor tanning as a coping strategy, then the findings begin to make more sense."

Because UV exposure can induce relaxation through the release of natural opioids in the brain, it's possible that non-heterosexual black and Hispanic teenage boys engage in indoor tanning to help regulate psychological distress, which could be the result of discrimination, prejudice, and victimization based on their sexual orientation and ethnicity, Blashill explained.

The data comes from the 2015 Youth Risk Behavior Survey, a nationally representative survey that examines the prevalence of risky health behaviors among 9th- to 12th-grade public and private school students.

While indoor tanning is banned for minors in California and several other states, Blashill said these restrictions are not 100-percent effective.

"It is important to understand what's driving indoor tanning among these boys so we can develop future skin cancer prevention and education campaigns targeted at the high-risk group."

Sugar is no joke, says a lawsuit that accuses the Coca-Cola Company and the American Beverage Association of downplaying the health risks of sugary soda.

The suit, filed by the nonprofit Praxis Project, takes issue with commercials that claim even small amounts of exercise -- like laughing for 75 seconds -- can negate the effects of the sugar in a 12-ounce can of regular Coke. The Praxis suit says the commercials are deceptive. 

“From the 1950s until the late 1990s, the tobacco industry engaged in an elaborate campaign of disinformation to cast doubt on the science connecting cigarettes to lung cancer and other diseases,” said Maia C. Kats, litigation director of the nonprofit Center for Science in the Public Interest, which is providing legal counsel to Praxis.  “Today the soda industry is engaged in its own campaign of disinformation to cast doubt on the science connecting sugar-sweetened beverages to obesity, and obesity-related diseases like diabetes and cardiovascular disease."

Kats said the lawsuit "seeks to stop Coke and the ABA from deceiving the public on the science linking obesity and related diseases to regular consumption of sugar-sweetened beverages.”  

Praxis describes itself as "a movement support intermediary committed to capacity building for social change." CSPI is a longtime crusader for safer food and beverages.

As an example, the groups cite a YouTube commercial (below), “Be OK,” as “spreading misinformation” by suggesting that “exercise, even small amounts like laughing or bowling, can offset the harmful effects of drinking soda.”

"Happy calories"

The video notes that the “140 happy calories” in a 12-ounce can of regular Coke can be spent on “extra happy activities” such as 25 minutes of dog walking, 10 minutes of dancing, or 75 seconds of laughing out loud. 

The complaint also cites numerous alleged examples of Coca-Cola and ABA officials making false and deceptive statements about sugar-sweetened drinks.  For example:

• Coca-Cola’s senior vice president, Katie Bayne, claims that “[t]here is no scientific evidence that connects sugary beverages to obesity.” 
• “Coca-Cola is an excellent complement to the habits of a healthy life,” said former Coca-Cola chairman and CEO Douglas Ivester. 
• “There is no unique link between soda consumption and obesity,” claims a post on the ABA’s website.
• “Simply put, it is wrong to say beverages cause disease,” the ABA stated in another release. 
• Coke’s incoming CEO, James Quincey, equated sugar-sweetened beverages to any other calories, dismissing their unique contribution to the obesity epidemic by asserting such beverages contribute only two percent of calories overall.

Coca-Cola called the suit “legally and factually meritless.” In a prepared statement, the company said: “We take our consumers and their health very seriously and have been on a journey to become a more credible and helpful partner in helping consumers manage their sugar consumption."

The suit was filed in a California federal court Wednesday. 

There is one habit that all financially fit consumers have in common. They have a knack for managing debt.

This is especially important when it comes to using credit cards.

“Financially fit people use credit cards only when they have the ability to responsibly manage their debt,” Bruce McClary, Vice-president of Communication for the National Foundation for Credit Counseling, told ConsumerAffairs. “Debt is usually handled in a way where payments are well above the minimum amount due in order to avoid a lengthy and costly repayment cycle.”

Paul Golden, spokesman for the National Endowment for Financial Education, says it's usually not a good idea to carry a balance on your credit cards from month to month.

“However, a good way to identify if you are in a safe or danger zone with debt is to look at your overall amount owed compared to your income,” Goldman said. “You should keep your debt at less than 20% of your income for credit cards, student loans, and car loans. In determining your credit score, your total amount owed relative to how much credit you have available accounts for 30% of your overall score.

Not all debt is bad

Diane Moogalian, Vice President of Customer Care at Equifax, says not all debt should be viewed as bad.

“For example, a mortgage – where you’re building equity – is often seen as good debt,” Moogalian said. “In addition, student loan debt, where a consumer is receiving a college education, may be interpreted as good debt.”

But she cautions that student loans can easily become “bad debt” if a borrower loses track of how much he or she owes, or doesn’t have a reasonable plan in place to pay it back.

As for credit cards, she says financially fit consumers understand the difference between a “want” and a “need.” They have a budget and they stick to it.

“I have never met a type of debt that I liked,” said Michelle Perry Higgins, Principal and Financial Planner of the California Financial Advisors.

When debt can increase your income

However, she concedes there are some cases where acquiring debt can actually increase your income and your net worth over time.

“Loans that pay for a college education are one of these 'good debts,'” she said. “Credit cards are examples of not so good debt if you fail to pay off the balance monthly and get hit with a whopping interest rate charge.”

In general, financially fit consumers use credit cards to their advantage. They pay off the balance each month to avoid paying any interest on their charges. Higgins says they also use rewards credit cards that earn miles or cash back. That way, the credit card company pays you, instead of the other way around.

On the heels of Macy's announcement that it is closing 68 stores, Sears Holdings says it will shutter 150 unprofitable locations. Targeted for closing are 108 Kmart and 42 Sears stores.

At the same time, Sears said it would sell its signature Craftsman Tools line to Stanley Black and Decker for $775 million.

The Craftsman deal is a complex one. In addition to the sale price, Sears will have use of a perpetual license for the Craftsman brand, royalty free for 15 years. It will also get a 15-year royalty stream on all third-party Craftsman sales to new customers.

Stabilize the company

"We are taking strong, decisive actions today to stabilize the company and improve our financial flexibility in what remains a challenging retail environment," said Edward S. Lampert, Chairman & CEO of Sears Holdings. "We are committed to improving short-term operating performance in order to achieve our long-term transformation."

Sears has fought strong headwinds as more retail sales have moved to online channels. It has consistently closed stores in recent years that have added to the company's sea of red ink. However, the losses have continued to mount.

In September, Moody's downgraded Sears liquidity rating from "good" to "adequate," which is just one grade above the lowest, "weak."

As for the stores that are closing, 10 of the Kmarts are in Michigan; seven are in Ohio; five are in Missouri; and five are in North Carolina.

List of stores

The stores will close in the spring. You'll find a complete list of stores to be closed here.

“The decision to close stores is a difficult but necessary step as we take actions to strengthen the Company’s operations and fund its transformation,” the company said in a statement.

While the stores targeted for closing together generated about $1.2 billion in sales over the past 12 months, Sears reports they turned in a net loss of about $60 million. By closing the stores and liquidating the inventory, company officials says they expect to generate much needed cash.

The company is also leveraging its real estate holdings to increase liquidity. It announced a secured standby letter of credit facility of up to $500 million.

Smart technology is often praised for its ability to make homes more convenient, but a new product claims to make homes safer.

Inirv React is a smart device that can turn your stove off when you accidentally leave it on. The device, set to debut at CES 2017, comes in the form of a knob unit that attaches to your oven’s existing knobs.

Bluetooth technology and motion sensors arm Inirv with the ability to sense gas, smoke, and prolonged absence. If the device detects any of these risk factors for a home fire, active burners will automatically be shut off.

The smart stove knob can also provide a definitive answer to the question, "Did I leave the stove on?" Inirv can be controlled remotely via smartphone, where users can also see real-time updates on their kitchen environment. 

Preventing fires

With just over 350,000 home fires a year, and with cooking equipment being the number one cause of home fires, the device could provide a simple solution to a common problem.

“It is surprisingly easy to accidentally leave the stove on after cooking a meal, as I personally learned the hard way. After leaving the house with food on the stove, a fire started in my kitchen putting my home and loved ones at risk,” said Inirv co-founder Akshita Iyer.

“With Inirv React, you will finally have peace of mind when it comes to the safety of your family and security of your home, even while you are away," she said in a statement. 

Inirv's other co-founder, Ranjith Babu, is a resident neurosurgeon who previously co-founded a biotechnology company that developed a device for the minimally invasive treatment of brain tumors. Saving lives is the goal of his latest venture, as well.

Smoke detectors can detect smoke, but they can’t prevent home fires. “We knew a better solution was needed,” the co-founders said. “We designed a revolutionary product that not only prevents hazardous situations, but reacts to prevent them from escalating.”

Inirv React is currently hosting a campaign on Kickstarter with the goal of raising $40,000 in 41 days. To get a standard kit with four knobs and a sensor, you’ll have to pledge at least $199.

Polaris Industries of Medina, Minn., is recalling about 9,900 Sportsman 570 all-terrain vehicles that may present a fire hazard.

The company has received 35 reports of damaged fuel rails and leaks. No injuries have been reported.

This recall involves model year 2014 through 2016 Sportsman 570 Touring and X2 model ATVs and model year 2017 Sportsman 570 6x6 model ATVs. The recalled ATVs have one or two seats with four or six tires. “Sportsman” and the model type are printed on the side of the steering column and “Polaris” is printed near the front grill. The ATVs were sold in several colors.

The vehicle identification numbers (VIN) are printed on the front or rear frame near the back tire. 

The following vehicles are being recalled:

The ATVs, manufactured in the U.S. and Mexico, were sold at Polaris dealers nationwide from May 2013, through December 2016, for between $7,700 and $11,000.

What to do

Consumers should immediately stop using the recalled ATVs and contact Polaris to schedule a free repair. Polaris is contacting all known purchasers directly.

Consumers may contact Polaris at 800-765-2747 from 7 a.m. to 7 p.m. (CT) Monday through Friday or online at www.polaris.com and click on “Off-Road Safety Recalls” at the bottom of the page for more information.

General Motors is recalling 327 model year 2016 Buick Envisions manufactured January 19, 2016, to March 18, 2016.

The master cylinder brake lines may crack and leak brake fluid, which could reduce braking performance and increase the risk of a crash.

What to do

GM will notify owners, and dealers will replace the master cylinder brake lines, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Buick customer service at 1-800-521-7300. GM's number for this recall is 16169.

It's easier to accomplish something if you have a reason for wanting to do it. So when it comes to your finances, setting goals will help you stick to your budget and avoid costly mistakes.

It turns out that setting financial goals is something financially fit consumers do on a regular basis – whether it's setting up an emergency fund, saving for retirement, or putting a down payment on a home, having a goal in mind is a key to success.

Diane Moogalian, Vice President, Customer Care, Equifax, says building up savings should be priority number one for most consumers.

“Having a savings account is a great way to help prevent things like having to use a credit card unwisely to pay for things you didn’t plan for,” she said. “Having a savings account can also be a great way to help you financially plan for things like a new car, a new home, education, and your retirement.”

Paul Golden, spokesman for the National Endowment for Financial Education, suggests consumers set a goal of saving 10% of their take-home pay.

“If you have regular paychecks, schedule an automatic transfer of 10% each time you get paid,” Golden told ConsumerAffairs.

He also suggests looking into the tax advantages offered by retirement savings accounts like Roth or Traditional IRAs.

Paying down debt

Michelle Perry Higgins, Principal and Financial Planner of California Financial Advisors, says other important financial goals might include paying off debt.

“As you age, your debt should be decreasing and your retirement and emergency reserve contributions should be increasing,” she said.

One result of focusing on financial goals is a consumer develops other good habits that eventually lead to financial stability – less debt and more assets. Bruce McClary, Vice President of Communications for the National Foundation for Credit Counseling, says these goals will change as a consumer ages.

“Millennials who financed a college education are likely to be focused on paying down their student loan balances while trying to provide for their basic living expenses,” McClary said. “Retirement savings is also a goal for those starting out as well as people in their 30s and 40s. Older individuals are likely focused on streamlining their budget as they prepare for or enter retirement.”

Making the most of financial resources

As consumers get ready to retire, they should make the most of their financial resources.

“Basic needs take priority while discretionary expenses take a secondary position in the order of importance,” McClary said.

Moogalian says being financially-fit is a lot like being physically fit. The way to achieve that fitness requires different activities for each stage of life. But like physical fitness, she says the key is sticking to it.

The annual Consumer Electronics Show (CES) in Las Vegas, January 5-9, is a high-profile venue for technology companies hoping to focus attention on their latest innovations.

For some, it is also a great way to change the subject.

After a miserable 2016, in which it saw its flagship Galaxy Note 7 smartphone go down in flames – literally – Samsung has arrived in Las Vegas with a wide range of new products.

For example, the company is introducing the latest version of its robotic vacuum, the POWERbot VR7000. Samsung says it cleans better in hard-to-reach areas without requiring manual follow-up cleaning.

“This is achieved by placing the unit’s wide 11 inch (288mm) brush -- the widest among leading brands -- close to the front, so when the unit reaches the wall it can easily gather dust and hair,” the company said in a release. “Additionally, the Auto Shutter feature further meets that demand by automatically dropping down a barrier to help the unit sweep up more dust collected closer to the edges.”

New washer-dryer system

Samsung is also introducing a new washer-dryer combo, the FlexWash and FlexDry systems. The two machines provide distinct laundry compartments, both with a wide range of features, depending on load size.

The FlexWash is a front-loader with five cubic feet of capacity, an expansion over previous models. Its also built in a way that it can wash smaller loads separately from larger ones.

FlexDry also presents new flexibility. Consumers can lay clothes flat in a special Delicate Rack zone at the top of the dryer, which uses a controlled, heated air flow. The zone regulates the heat between room temperature and 95 degrees Fahrenheit automatically, depending on the type of fabric.

Immersive experience

On the entertainment side, Samsung is introducing the latest generation of its Quantum Dot Curved Monitor. Andrew Sivori, Vice President, CE-IT Product Marketing at Samsung Electronics America, says the device is aimed at the gaming market.

“Today’s multimedia consumers have heightened expectations; they demand an immersive experience that makes them feel like they’re part of the games they play and the content they view,” he said. “Our new Quantum Dot Curved monitors offer brilliant design, richer color, and even deeper contrast than ever before.”

Samsung's recent investments in audio technology will also be on display in the form of its new line-up of ultra high quality (UHQ) audio. The company says the UHQ technology has the ability to improve existing sources of audio.

A lot may be riding on the CES for Samsung. Company CEO Kwon Oh-hyun told company employees the Note 7 debacle has cost the company dearly, threatening to slow its growth. He also pledged to learn from the Note 7 mistakes and make “all necessary reforms” to avoid similar mistakes in the future.

With chilly winter weather comes the need to bundle up young children prior to setting foot outdoors. But how does that bulky winter coat affect your child’s safety in his or her car seat?

Puffy outerwear and car seats can be a dangerous combination, experts say. The extra padding intended to protect kids from frosty temperatures can impede the effectiveness of car seat harness straps.

Car seat technician Ashley Simpson asks parents to imagine themselves in a bulky snowsuit while putting on a seat belt, then imagine taking the snowsuit off and putting the belt back on.

“How much of a size difference is there? There is probably a few inches difference,” Simpson, a Community Service Trooper for the Michigan State Police, wrote. “Car seat harness straps are exactly the same, except they are there to protect your child during those unfortunate accidents.”

Risk of injury

The American Academy of Pediatrics (AAP) makes a similar statement, noting that bulky winter coats and snowsuits can compress in a crash and lead to increased risk of injury.

“In a car crash, fluffy padding immediately flattens out from the force, leaving extra space under the harness. A child can then slip through the straps and be thrown from the seat,” the group explains.

Instead of strapping a coat-clad kid into a car seat, the Academy recommends dressing children in thinner layers and tucking a coat or blanket around your child over the buckled harness straps to keep them warm.

So, how can parents tell if their child’s coat is too bulky to be worn underneath a car seat’s safety straps? Lorrie Walker, Training Adviser and Technical Manager for Safe Kids.org, offers a few pointers.

Signs of a too-bulky coat

“The problem with the ‘puffy’ coat is that the harness may appear to be tight on the child when in fact, there’s too much space created by the soft fabric between the coat and the child.” Walker told BabyCenter.  

She recommends doing a quick test to see if the straps of your car seat are holding your child or just the coat. Here’s what to do:

• After warming your car, place your child in the seat and adjust the harness like you always do.

• Without loosening the harness, unbuckle it and remove the child’s coat.

• Put the harness back on the child without the coat.

• The harness should pass the “pinch test.” To perform the pinch test, see if you can pinch excess webbing at the shoulder. If you can, the harness is too loose and is only protecting the coat.

• Tighten the harness until the child is strapped in properly. The straps should be coming from at or below the rear-facing child’s shoulders OR at or above the forward-facing child’s shoulders, Walker explains.

Consumers looking to lose weight may have spent countless hours in a sweltering gym trying to burn away excess fat. But is there an easier way to melt away the pounds that isn’t so labor-intensive and time consuming?

Perhaps not yet, but scientists at the University of Bonn believe that they have a potential answer. Dr. Alexander Pfeifer and his fellow researchers have been researching how to burn away fat for years, and a recent study using mice shows that making changes at the cellular level could make it possible.

The process involves converting unwanted white fat cells into brown slimming cells that consume energy. The difference between the cells is that the latter is packed with much more mitochondria, the so-called “power stations” of the cell. These extra reserves of mitochondria take white fat cells and use them to produce thermal energy, effectively burning them away.

During the study, the researchers converted white fat cells into brown slimming cells in mice and found that the subjects lost a significant amount of weight after the process was completed. Additionally, they found that combining this process with certain active ingredients reduced the number of white fat cells and increased the number of brown slimming cells, which accelerated the fat burning process. This gives some hope that this kind of therapy could be used to combat obesity and obesity-related health conditions, such as joint problems, diabetes, and cardiovascular diseases.

Problems to work out

While the findings are encouraging, Pfeifer and his team say that there are some complications that need to be worked out with the process, specifically when used with obese subjects.

Currently, the use of the certain active ingredients kicks fat burning into overdrive, but certain types of fat have proven to be more resistant due to inflammation. Specifically, the researchers noted that subcutaneous fat – the kind found closest to the surface of the skin – was affected normally by the therapy, but deeper-lying abdominal fat was more problematic.

The researchers found that subjects with this deeper-lying fat had much more inflammation than those who didn’t, and that inflammation effectively shuts down and blocks the pathways that the therapy uses to turn white fat cells into brown fat cells. Additionally, the risk of this kind of inflammation is already high because it promotes cardiovascular diseases, which makes the problem twice as bad, the researchers said.

While a concrete solution has not yet materialized, researcher and lead author Abhishek Sanyal believes that halting the abdominal fat’s inflammatory response while simultaneously administering the therapy’s active ingredients could be a good starting point for tests.

The full study has been published in Cell Reports.

The beginning of a new year often signals a fresh start, so it might not be surprising that a new survey has found a lot of Americans expect to be working somewhere else by the time 2018 rolls around.

Jobs site CareerBuilder.com found 22% of people with jobs plan to find a new one during the next 12 months, a slight increase over last year. Younger workers in the survey were more likely to be planning a move.

"Whether it's unemployed people trying to find their way back to the workforce or those who are currently employed attempting an upgrade to greener pastures, a new year makes many people set their sights on job hunting," said Rosemary Haefner, chief human resources officer for CareerBuilder.

The takeaway for employers, says Haefner, is to stay in touch with the contentment level of key employees. She even suggests polling employees periodically to learn more about their goals and motivations and how they want to be treated.

Other resolutions for 2017

When asked about other goals for the coming year, 49% of employees said they want to save more of their money. Thirty-eight percent said they want to be less stressed and 20% plan to ask for a raise.

As for what employees should be resolving for 2017, Haefner suggests growing your network. Expand the usual roster of groups and try to grow your professional network even wider.

Brand-building is also big. Haefner suggests presenting a clear message of who you are and what attributes you bring to the table.

Don't neglect social media. Follow companies you like and engage with them at every opportunity. Consider writing a blog showcasing your career interests and expertise and make sure there are no embarrassing photos from yesteryear floating around on the internet that could come back to haunt you.

As for your chances of landing a new job in 2017, CareerBuilder says it will reveal some data on that later this week in its annual Jobs Forecast.  

Consumers who have their financial lives well in hand do a lot of simple things right, something the rest of us might emulate in the coming year.

Besides reviewing their credit report on a regular basis, they also review their budget. They measure income against expenses and plan for the future.

Author and financial planner Michelle Perry Higgins, principal of California Financial Advisors in San Ramon, Calif., says before you can do a budget analysis, however, you need a budget procedure that works for you.

“First, pick a method to track your income and outflow. Whether it is an Excel spreadsheet, a financial website, or an app on your phone, you need to have a means of tracking where your money is going,” she told ConsumerAffairs.

Higgins says you also need expense categories that make sense to you and set a limit for how much you want to spend in each category. Finally, keep track every penny that you spend.

Know where you've been

Bruce McClary, Vice President of Communications for the National Foundation for Credit Counseling, says accurate tracking is important because it is easier to understand where you need to go if you have a better sense of where you have already been.

McClary recommends tracking all of your spending for at least a month to see if it reflects your budget goals.

“The second step is to review all sources of income, focusing on what you have left after payroll deductions like taxes and insurance,” he said. “Then you will want to review your debts, including balances and monthly payments. Once you have all of that information, you can see how much of your income is being allocated to each budget category including personal savings. If you have leftover money, you can determine how best to apply it toward debt repayment or savings.”

And financially fit consumers don't just do this one time. Diane Moogalian, Vice-president of Customer Care at Equifax, says it should be part of a monthly routine.

“If you analyze your budget at the start of a New Year, make changes, and set your budget, reviewing it once a month can be a helpful way to ensure you’re staying on track with the goals you set at the start of the year,” Moogalian said. “It may also be easier to course correct during the course of one month, versus waiting until you’re off track for several months at a time. Catching up is never an easy thing to do!”

Credit cards deserve extra attention

Paul Golden, spokesman for the National Endowment for Financial Education, says one area of budget analysis that may require special attention is credit card debt. He says credit card spending is either one of two things – it's a convenient substitute for cash, to be paid when the bill comes, or it's spending money you don't really have.

“Financially fit consumers understand the basics before using credit cards: knowing your spending habits – how will you use the card and will you be able to pay it off each month, what the interest rate is and how it is calculated, what are the fees and expenses associated with the card, and how the incentive program works,” Golden told ConsumerAffairs.

But if you are using a credit card to pay for things you don't have the money to pay for, you are simply digging a credit hole that could take years to get out of.

Financially fit consumers don't use credit cards that way, and neither should you.

When Tesla Motors finally shipped out its long-awaited Model X in 2015, three years after unveiling the all-electric sport utility vehicle, reviewers noted that the Model X is extremely fast, going from  0 to 60 mph in 3.2 seconds. The Model X, wrote the site Car and Driver, is possibly the "greenest—and fastest—way to tote up to 7 people over hill and dale."

But now the futuristic vehicle is being hit with the same complaints that have plagued traditional car manufacturers in recent years. In a government complaint database and now a lawsuit, drivers allege that their Tesla vehicles suddenly sped out of control, the phenomenon known as sudden unintended acceleration.

Korean actor files lawsuit seeking $5 million

Ji Chang Son, a South Korean actor and celebrity now living in Irvine, California, was driving his Model X home on September 10, 2016. His son sat in the passenger's seat. The elder Son turned left into his parking garage, and as he did, the vehicle  “spontaneously began to accelerate at full power,” says a lawsuit he filed on December 30.

The suit describes a crash so powerful that the car tore through the interior wall of Son's garage. His SUV reached the living room and the two men were trapped, pinned inside by wooden support beams that had fallen down from the impact. Photographs that Son posted on his own Facebook page show his Model X post-crash, sitting in a hole it had torn through the garage wall. The vehicle’s Falcon Wing door is open on the passenger’s side.

Son’s lawsuit says that immediately after the crash, smoke flooded the interior of the car. The younger Son, identified as K.M.S in court filings, crawled out through a window and then helped his father escape the vehicle. The suit is seeking $5 million in damages.

Tesla blames driver error

A Tesla spokesman declined to give an interview, but the company has been sending all inquiring reporters a statement that accuses Son of both accidentally stepping on the gas pedal and then using his celebrity status to threaten the company.

After a lengthy company investigation, the Tesla spokesman says via email statement that  “...the evidence, including data from the car, conclusively shows that the crash was the result of Mr. Son pressing the accelerator pedal all the way to 100%. Before filing his class action against Tesla, Mr. Son had threatened to use his celebrity status in Korea to hurt Tesla unless we agreed to make a financial payment and acknowledge that the vehicle accelerated on its own. However, the evidence clearly shows the vehicle was not at fault. Our policy is to stand by the evidence and not to give in to ultimatums."

Tesla is of course one of several carmakers to have been hit with claims of sudden acceleration. The owner of a 2015 Hyundai Tucson, for instance, told ConsumerAffairs a similar story  in November. Like Son, motorist Barbara Gardener was trying to park her car when she said it suddenly accelerated into a wall.

"I know for sure that I didn't have my foot on the accelerator,” Gardener said, though Hyundai similarly blamed driver error for the crash. Toyota, in the highest-profile example, was ordered by the United States Department of Justice to pay out $1.4 billion for failing to disclose what the feds described as  “floor-mat entrapment” and “sticky pedal” defects possibly linked to sudden acceleration. But federal regulators continue to blame driver error for the approximately 16,000 car crashes in which sudden acceleration is sited as a factor.

Other possible SUA crashes

Son’s attorney dug up eight other complaints, all in the publicly available National Highway Traffic Safety Administration (NHTSA) complaint database, similarly claiming that Tesla’s Model X vehicles suddenly accelerated. In each complaint, reprinted in the lawsuit, the motorists say that they were attempting to park when their cars spontaneously sped forward.  

“OUR 5 DAY OLD TESLA X WHILE ENTERING A PARKING STALL SUDDENLY AND UNEXPECTEDLY ACCELERATED AT HIGH SPEED ON ITS OWN CLIMBING OVER GRASS AND CRASHED INTO A BUILDING,” says a complaint from Anaheim, California made on June 7, 2016. “THE AIRBAGS DEPLOYED AND MY WIFE'S ARMS HAVE BURN MARKS AS A CONSEQUENCE.”

Son’s suit notes that only 16,000 Tesla Model X vehicles have been sold in the United States, arguing based on those numbers that the Model X is therefore much more prone to sudden unintended acceleration than other vehicles.

"Computer on Wheels"

Automotive reviewers have lavished the Model X with high praise for its speed, but they have also complained about possible, though minor, software glitches, particularly in the vehicle’s signature Falcon Wing doors.

“The Falcon Wing doors take five and a half seconds to open—six to close—and occasionally the sensors halt their progress, even when there’s nothing in the way,” wrote Car and Driver. “For as smart as these doors are, it turns out that even semisentient doors with echolocation are pretty dumb.”

Consumer Reports’ automotive reviewer told the Washington Post that the Model X has "so many overly complicated features: the front doors are power automated, the middle-row seats are on power sliders... All those things add up in a way that can bring the platform down.” Tesla has since introduced newer software that they say cause the doors to open and close 1.6 seconds faster.

Son’s lawsuit alleges that the potential software glitches are part of a much larger problem affecting the safety of Tesla’s vehicles. The actor and his attorney point to Tesla founder Elon Musk’s own description of the Tesla Model S as being a "computer on wheels.”

“As even casual computer users know,” Son’s suit says “even the most sophisticated and successful computer companies in history, such as Microsoft and Apple, regularly release computers and software with bugs, glitches, and unanticipated problem that cause their computers to unexpectedly crash, malfunction, or work differently than intended. These bugs have serious consequences for users of traditional computer products. But for a computer that controls a 5,000 pound machine that can explosively accelerate from a standstill to 60 miles per hour in under 3 seconds, the consequences of a computer glitch can be catastrophic.”

The new lawsuit comes as Tesla is leading a major push in the tech industry for self-driving car technology. Motorist Joshua Brown was driving the Tesla Model S in May and had placed his car in the so-called auto-pilot mode. With his car driving itself, sensors failed to detect an 18-wheel truck and trailer on the highway, the company disclosed to the public in July. Brown was killed as a result. His death was the first and only linked to self-driving technology to date.

Model x Lawsuit by Amy Cranks on Scribd

Equifax and TransUnion will need to check their credit scores when they finish coughing up $17.6 million in restitution to consumers and fines totaling $5.5 million levied today by the Consumer Financial Protection Bureau (CFPB).

The bureau, a prime target of Republican lawmakers who have vowed to weaken it or even shut it down, charged that the companies deceived consumers about the usefulness and actual cost of the credit scores they sold.

Also, the CFPB said, the companies lured consumers into costly recurring payments for credit-related products with false promises. It ordered TransUnion and Equifax to truthfully represent the value of the credit scores they provide and the cost of obtaining those credit scores and other services.

“Credit scores are central to a consumer’s financial life and people deserve honest and accurate information about them,” said CFPB Director Richard Cordray.

Two out of three

The companies are two of the nation’s three largest credit reporting agencies. They collect credit information on consumers and use it to generate credit reports and scores that are sold to businesses. They also market, sell, or provide credit-related products directly to consumers, such as credit scores, credit reports, and credit monitoring. 

The CFPB said the companies:

Deceived consumers about the value of the credit scores they sold. In their advertising, TransUnion and Equifax falsely represented that the credit scores they marketed and provided to consumers were the same scores lenders typically use to make credit decisions. In fact, the scores sold by TransUnion and Equifax were not typically used by lenders to make those decisions.

Deceived consumers into enrolling in subscription programs. In their advertising, TransUnion and Equifax falsely claimed that their credit scores and credit-related products were free or, in the case of TransUnion, cost only “$1.”

In reality, CFPB said consumers who signed up received a free trial of seven or 30 days, after which they were automatically enrolled in a subscription program. Unless they cancelled during the trial period, consumers were charged a recurring fee – usually $16 or more per month. This billing structure, known as a “negative option,” was not clearly and conspicuously disclosed to consumers.

Equifax also violated the Fair Credit Reporting Act, which requires a credit reporting agency to provide a free credit report once every 12 months and to operate a central source – AnnualCreditReport.com – where consumers can get their report, CFPB said. Until January 2014, consumers getting their report through Equifax first had to view Equifax advertisements. This violates the Fair Credit Reporting Act, which prohibits such advertising until after consumers receive their report.