Current Events in February 2017

The Consumer Financial Protection Bureau won a stay of execution today, as a U.S. appeals court in Washington agreed to reconsider an October decision that would have made it easier for the Trump Administration to rein in the agency and fire its director, Richard Cordray.

The full court will rehear arguments on May 24, including Chief Judge Merrick B. Garland, who had stepped away from the bench while his nomination to the Supreme Court languished in Congress.

The court's decision to rehear the case is seen as an encouraging sign by supporters of the embattled consumer agency.

"We are pleased that the ruling against the Consumer Financial Protection Bureau’s independent leadership will be reviewed by the full court," said Mike Landis, Litigation Director, at U.S. PIRG. "A review by the full court gives Director Richard Cordray the chance to finish out his term and continue being a consumer champion."

“We welcome the news that the full Court of Appeals is rehearing this case. The CFPB's independence from Wall Street and predatory lender special interests, and its effective leadership structure, are vital to the Bureau's ability to police the industry and protect consumers,” said Lisa Donner, executive director of Americans for Financial Reform.

Constitutional challenge

Cordray's term runs through 2018, and under the legislation that established the CFPB, he cannot be fired. It's that provision, among others, that is being challenged as unconstitutional by PHH Corp., the New Jersey lending company that appealed a CFPB decision that slapped it with $109 million in penalties.

President Trump has promised to scrap 75 percent of all U.S. regulations and to dismantle the Dodd-Frank Act, the 2010 legislation that created the CFPB and imposed tough new regulations on Wall Street.

PHH's challenge has drawn support from business groups, including the U.S. Chamber of Commerce, Competitive Enterprise Institute, and National Association of Realtors, but it has also drawn an outpouring of support from consumer organizations and others.

On Jan. 23, 16 state attorneys general petitioned the court for permission to intervene in the case. Consumer groups including Americans for Financial Reform, the Consumer Federation of America, and the U.S. Public Interest Research Group also spoke out in defense of the bureau.

"In the five years since it opened its doors, the Consumer Financial Protection Bureau has worked tirelessly to enforce the laws that went ignored in the run-up to the 2008 financial crisis, and has done more than any other federal agency to empower consumers against predatory, deceptive, and outright fraudulent behavior by bad actors in the financial services industry,” said Wade Henderson, president and CEO of The Leadership Conference on Civil and Human Rights. 

”It is disappointing but not surprising that payday lenders, debt collectors, for-profit colleges, and other powerful industry groups have turned to their allies in Congress and the courts in an effort to weaken the Bureau so they can keep exploiting financially vulnerable Americans," Henderson said in a statement emailed to ConsumerAffairs. "The panel ruling against the Bureau was wrong on the law and wrong for consumers, and we are relieved that the full D.C. Circuit will take this opportunity to get it right.”

With a hand from technology, beginning birdwatchers may become seasoned pros in no time. Earlier this year, Subaru added a birdwatching app called eBird to its infotainment system. Now, binocular-wielding birders can use their smartphone as a bird song identification tool.

Song Sleuth, a new app for iPhone users, aims to embellish a birdwatcher’s ornithological knowledge by offering up information on nearly 200 North American birds.

Birders can use their smartphone to record, recognize, and identify the songs of nearby feathered creatures with the help of the app’s algorithm-based identification software. Song Sleuth says its software is similar in concept to what is used in speech recognition software, but specifically tailored to the unique acoustical characteristics of bird songs.

Bird song familiarization

Pushing past novice birdwatcher status will require a knowledge of bird species as well as bird songs, and Song Sleuth aims to help familiarize users with both. In addition to helping birdwatchers identify bird songs, the app includes a bird reference guide.

"Song Sleuth is one of many tools that can help identify a bird, but its true benefit is helping people become better birders by familiarizing them with known birdsongs in a logical, familiar way," said bird expert and illustrator David Sibley, who lent his expertise to the development of the app.

The way the app works is simple. To identify a nearby bird’s song, push the record button in “Record and ID” mode. When you are done recording, click the button again. From there, you will see the three most probable birds in the “Likely Matches” screen.

Making the final identification

To whittle down the list of matches, users can play example recordings of the likely matches, use the reference guide, or compare spectrograms of the example recordings with the recording created.

Once the bird’s song has been matched to its species, you will have the option of geotagging the recording with the correct species, adding a note, or downloading the audio file to share with friends.

Song Sleuth is currently available on the App Store, with an Android version expected to become available this fall.

Besides skyrocketing tuition, college students have long complained about the high cost of textbooks. A racket, some have charged.

So the brainchild of a University of Rhode Island student may have come at just the right time. Anthony Markey built an ecommerce site where students can sell their used textbooks to other students.

The idea is this: the selling students would get a fair price but the buyers would save lots of money over buying them new. Last year, Markey placed third at the Rhode Island Business Plan Elevator Pitch Contest in late November. The following month, he was invited to attend the first MassChallenge Bridge to Rhode Island Bootcamp, where he was one of 12 finalists.

The site, at www.uselibby.com, not only sets up student-to-student textbook transactions, it also helps students find a better deal if it's available on commercial textbook sites like AbeBooks, ValoreBooks, and Chegg.

Up 1000% since 1977

A year and a half ago NBC News aired a report on the soaring cost of college textbooks, noting they have risen over 1,000% since 1977. NBC interviewed an academic publishing expert who likened the sale of college textbooks to the marketing of pharmaceuticals.

"They've been able to keep raising prices because students are 'captive consumers.' They have to buy whatever books they're assigned," Nicole Allen, a spokeswoman for the Scholarly Publishing and Academic Resources Coalition, told the network.

Markey, an accounting major, and Laionel Cintron, a recent Stetson University graduate, worked up the proposal after Markey tried to sell some slightly used textbooks through online retailers and got very little for them.

Just want what's fair

“We started Libby because we felt college students don’t receive a fair resale value for their textbooks through the traditional options like the bookstore and online retailers," Markey said. "These options buy back textbooks at low prices and sell them at much higher prices, profiting at the expense of students. Our goal is to encourage the fair resale value of used textbooks.”

It sounds like a recipe for disruption, much the way Amazon became a disruptive force in book selling two decades ago. Markey doesn't shy away from the comparison, but says there is an important distinction between his start-up and the online retail behemouth.

“Libby is solely dedicated to the fair resale of used textbooks," he said. "Also, Libby is specific to each college and university and offers a tailored experience for students, such as being able to search for textbooks by specific courses and professors."

And unlike most textbook companies that he says "buy low and sell high," his goal is for Libby to put the power back into the hands of students.

"It is hard to compare a startup to the likes of Amazon, but I am certain that Libby will disrupt the way college students buy and sell textbooks,” Markey said.

Mercedes-Benz is recalling some 2017 E300 and E300 4Matic vehicles that may have a damaged steering column-mounted shift lever module. If the internal circuit board is damaged, moving the shift lever will not select a transmission gear.

If the vehicle does not move forward or backward as selected by the driver with the shift lever, there is an increased risk of a crash.

MBUSA will notify owners, and dealers will replace the steering column-mounted shift lever module, free of charge. The recall is expected to begin in March 2017. Owners may contact MBUSA customer service at 1-800-367-6372.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Mercedes-Benz is recalling some several models because the windshield may come out.

Recalled models include: 2016 GLE350 4Matic and GLS 450 4Matic,  2017 GLE 400 4Matic, GLE 350 4Matic, GLE 350, GLE 550E 4Matic, GLE 63 AMG, GLE 63S AMG, GLE 43 AMG 4Matic Coupe, GLE 63S AMG 4Matic Coupe, GLS 450 4Matic, GLS 550 4Matic, and GLS 63 AMG 4Matic vehicles

The company said the windshield bonding may be insufficient and, as a result, the windshield may separate from the vehicle in a crash.

If the windshield detaches in the event of a crash, the passenger frontal air bag may not be supported properly after it deploys, increasing the risk of injury.

MBUSA will notify owners, and dealers will replace the windshield, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact MBUSA customer service at 1-800-367-6372.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Britax has initiated a recall of approximately 717,000 units of its Click & Go receivers found on Britax B-Agile and BOB Motion Strollers.

The company says a damaged receiver mount on the stroller can cause the car seat to disengage and fall unexpectedly when the products are in travel system mode, which poses a fall hazard to infants in the car seat. The recall pertains to strollers that are folding, single or double occupant models and have Click & Go receiver mounts that attach the car seat carrier to the stroller frame.

There are 121 affected model numbers of the B-Agile products and 21 affected model numbers of the BOB products included in the recall, which can be viewed here. The model numbers can be found on the inside of the stroller's metal frame near the right rear wheel for single strollers and in the front middle underside of the frame on double strollers.

The products were sold nationwide between May, 2011 and February, 2017 at retailers like Babies R Us, buy buy Baby, and Target, as well as online at Amazon.com, albeebaby.com, buybuybaby.com, diapers.com, ToysRUs.com, and other websites. The products cost between $250 and $470 for the strollers and the travel systems. 

Thus far, Britax has received 33 reports of car seats unexpectedly disconnecting from the strollers and falling to the ground, which has resulted in 26 injuries. The company is aware of 1,337 reports of strollers that have damaged Click & Go receiver mounts. 

What to do

Britax is urging consumers who own one of the affected products to stop using the strollers in cars; however, it says that the products can continue to be safely used as a stroller.

The company is asking that consumers not return the product to the retailer. Instead, consumers should dispose of the Click & Go receivers. The company has pledged to provide a remedy kit to fix the broken part for single stroller models. 

For more information, consumers can contact Britax online at us.britax.com/recall and stroller.recall@britax.com. Consumers can also reach the company by phone at 844-227-0300, Monday through Friday, from 8:30 a.m. to 7 p.m. EST and Saturday, 9 a.m. to 3 p.m. EST. 

Verizon Wireless joined the club this week, announcing that it, too, would offer an unlimited data plan -- something that the market had begun to dictate.

Consumers now use their smartphones as computers, and they are accustomed to having unlimited internet use on their PCs at home. They demanded the same from their wireless devices and carriers had begun to give it to them.

Now, all of the wireless companies offer an unlimited data plan in some form. However, no one provides unlimited data, at the fastest speeds, period. Network capacity, after all, is a finite resource. So there are certain limitations.

Here are what your choices now look like:

Verizon Wireless

The new Verizon Unlimited plan, introduced on Monday, costs $80 for unlimited data, talk and text on one smartphone line if you also sign up for paper-free billing and AutoPay. Four lines cost $45 per line, also with unlimited data, talk, and text on smartphones and tablets, again with the requirement of paper-free billing AutoPay.

Here's the caveat: after 22 GB of data usage on a line during any billing cycle Verizon may "prioritize usage" behind other customers in the event of network congestion. This is similar to other carriers' restrictions.

T-Mobile

T-Mobile is the disrupter that got all of this started. Its All Unlimited Plan offers unlimited text, talk, and data for $70 for one line and $40 a line for four lines, when using AutoPay.

It makes a point of saying the $160 for four lines also includes taxes and fees, something the other carriers don't do. T-Mobile's caveat is that when the network is congested, the top 3% of users, which translates into about 28 GB a month, may notice slower speeds.

AT&T

AT&T's unlimited data plan is available to customers who also have DIRECTV or U-verse. If you have one of those services, you get unlimited data on all eligible devices covered by your plan.

You also get unlimited talk and text including calls to Mexico and Canada, and talk, text, and data in those countries when you add AT&T Roam North America.

The cost is $100 for the first line and $40 for additional lines.

Straight Talk and Cricket

Straight Talk Wireless and Cricket Wireless are prepaid services that gained traction in the marketplace as phone service you could use without being bound by a contract. As an indication of how fast things have changed in this space, that is no longer a distinction. Instead, both now try to compete on price.

Straight Talk, sold through Walmart, provides unlimited data, but only a certain amount is at full high-speed. For example, the Unlimited Nationwide Plan costs $55, but speeds slow to 2GB after you go through the first 10 GB in a billing cycle. It's $45 when the high-speed allowance is just 5 GB.

Cricket costs $70 -- $65 when you enroll in AutoPay. Currently, mobile hotspot is not available on Cricket, but the company says it does not reduce users' speed, regardless of the amount of data they use. However, it says speeds may vary, depending on location and device.

President Trump's attempted crackdown on immigration is proving to be a bonanza for scam artists who are using it to extort money by posing as Immigration and Customs Enforcement (ICE) officers, law enforcement agencies say.

New York Attorney General Eric T. Schneiderman says his office has received a number of reports about such scams and is warning immigrants to beware.

“It is unconscionable for scam artists to prey on heightened fear in our immigrant communities by pretending to be ICE officers and demanding that families pay up in order to avoid deportation,” said Schneiderman. “I urge communities to protect themselves by learning about these potential scams – and contacting my office if they suspect fraud. We will continue to use all of the tools at our disposal and bring to justice those who commit fraud against our immigrant communities.”

In one case cited by Schneiderman, an immigrant living in Queens was approached by four men dressed as ICE agents, who told the man that he was going to be detained unless he gave them all of his money.

Schneiderman listed these common forms of immigration fraud:

Being Approached by Fake ICE Agents. Official Immigration and Customs Enforcement (ICE) agents will never ask you for money or threaten detainment or deportation if you do not pay them. ICE agents also do not have the authority to enter your household without a warrant signed by a judge.

Unsolicited Calls From Fake Officials: This is one of the most common scams. Oftentimes the number on caller ID may look like a legitimate government number, but legitimate government offiials never request payment over the phone, so immigrants should be wary of scammers that ask for any sensitive or personal information, demand payment, and threaten deportation if they do not comply.

Notario Fraud: In many Latin American countries a “notario” refers to someone who has the authority to render legal services. Unscrupulous “notaries” who are not attorneys often rely on this misunderstanding to exploit immigrants. Only licensed attorneys can provide legal assistance in the United States. 

Misrepresenting Legal Credentials: Individuals may falsely claim to be attorneys or wrongly suggest that they are able to appear before the immigration agencies or court. You can verify that an attorney is licensed by contacting your state or local bar association. 

Fraudulent Promises to Expedite Process: Scam artists may contend that they know employees at immigration offices who can expedite the processing of their clients applications. They request high fees for this special service, but fail to provide it.

Misinformation Fraud: Under this type of fraud, a provider will typically provide inaccurate or false information to the immigrant concerning his or her eligibility for an adjustment of status under a particular law. In these cases, the immigrant is usually not aware that they have been a victim of fraud until they receive a letter of ineligibility from immigration authorities. 

Health care costs are always a hot button topic amongst consumers, but a new study shows that there could be bad news on the horizon for the many people who struggle with cardiovascular disease.

Researchers working with RTI International and the American Heart Association (AHA) have found that, if left unchecked, the number of Americans with cardiovascular disease will rise to 131.2 million – or 45% of the U.S. population -- by 2035. If that happens, they say that the costs associated with the disease will reach $1.1 trillion.

“Mostly driven by the aging of the population, the prevalence and costs of cardiovascular disease are expected to increase significantly in the next 20 years with total costs reaching over $1.1 trillion by 2035,” said lead author Olga Khavjou.

Dangerous trend

Cardiovascular disease is currently the most costly and pervasive condition in the U.S., and it is growing at an astonishing rate. Back in 2011, AHA researchers estimated that approximately 100 million Americans would suffer from the disease by 2030.

However, they were way off the mark – and not in a good way. The 100 million mark was hit in 2015 instead, nearly 15 years sooner than the researchers anticipated. That same year, the death rate attributed to heart disease rose by 1% for the first time since 1969.

The latest 2035 projections estimate that 123.2 million Americans will suffer from high blood pressure by 2035. By the same time period, the researchers say that 24 million people will have coronary heart disease; 11.2 million people will suffer a stroke; and 7.2 million people will have atrial fibrillation.

The findings also suggest that cardiovascular disease risk will rise to 50% by age 45 and 80% by age 65. Demographically, researchers say Black Americans will have the highest rates of cardiovascular disease in 2035, followed by Hispanics, and men will suffer from cardiovascular disease at a greater rate than women.

Reversing course

All told, cardiovascular disease cost Americans $555 billion in 2016, but the study suggests that number will quickly multiply if the disease becomes more pervasive. The researchers say that the $1.1 trillion projected cost in 2035 will fall heavily on those over the age 65 – doubling current rates for those between 65 and 79 and tripling for those over the age of 80.

In order to reverse the current trend, the researchers have made several policy suggestions. They include:

• Increased funding for heart and stroke research by the National Institutes of Health;
• Enhanced focus on prevention to improve and preserve population health from birth to old age; and;
• Preservation and expansion of access to high-quality affordable health care.

“While we have made tremendous progress in fighting cardiovascular disease, recently reported death rates and these projections reinforce that now is not the time to relax. We must continue to be vigilant, because if these projections become reality, a serious health and economic crisis is on the horizon,” said American Heart Association President Dr. Steven Houser.

The full study has been published by the American Heart Association.

Volkswagen moved closer to putting the "dirty diesel" scandal behind it this week as U.S. District Court Judge Charles Breyer gave preliminary approval to a plan under which VW would pay about $1.2 billion to fix or buy back about 80,000 3.0-liter diesel vehicles.

That amount could increase to $4 billion if the Environmental Protection Agency and other regulators don't approve of VW's proposed fixes to all of the 3.0-liter Audi, Porsche, and Volkswagen models.

“We are pleased the Court has granted preliminary approval, which brings us another step closer to achieving the settlements’ goals: providing consumers fair value for their vehicles, while repairing or removing illegally polluting vehicles from the road," said Elizabeth Cabraser, lead counsel for the consumer plaintiffs.

"We have heard from many owners and lessees who are eager to take advantage of the settlement, and we look forward to finalizing this agreement so these benefits can quickly begin reaching both consumers and the environment," Cabraser said in an email to ConsumerAffairs.

Generations One and Two

Assuming Breyer grants final approval to the plan in May, consumers’ options and compensation will depend on whether their vehicles are classified as Generation One or Generation Two. The engine designs for each generation are different, with different prospects for emissions compliance.

The cash payments in addition to these options are only available to those who participate in the class action settlement, which covers approximately 75,000 3.0-liter TDI vehicles.

Generation One (Model Years 2009-2012): These vehicles – like 2.0-liter vehicles – cannot be repaired to be compliant with their originally certified emissions standards. Therefore, owners will have the option of a buyback, trade-in, or an EPA- and CARB-approved emissions modification plus substantial cash compensation ranging from $7,755 to $13,880. Lessees will also be eligible to have their lease terminated and receive cash compensation.

Generation Two (Model Years 2013-2016): Government regulators believe these newer vehicles can be repaired to comply with the nitrogen oxide (NOx_ emissions standards to which they were originally certified. If this is achieved and approved by the EPA and CARB, Generation Two owners will receive this repair plus substantial cash compensation ranging from $7,039 to $16,114. Lessees are also eligible for this repair plus cash payment. Consumers may choose to receive half this payment upfront, before any repair is approved, and the other half upon repair completion.

If the EPA and CARB do not approve an emissions compliant repair by deadlines set out in the class settlement agreement, a process will follow in which Class Counsel can ask the Court to order a buyback, or other remedies if the repair results in reduced performance as detailed in the settlement agreement.

What to do

Affected consumers do not need to take any action at this time. When and if the Court grants final approval, the claims process will open to eligible owners, lessees, and post-September 18, 2015 sellers without delay from any appeals, and payments will commence shortly after. The ultimate deadline to file a claim will be December 31, 2019.

For purposes of calculating buyback payments, under the settlement, vehicle value remains frozen as of September 18, 2015 (the date the emissions allegations became public), meaning its value generally will not depreciate while consumers go through the claims process.

The settlements are subject to Court approval. If preliminary approval is granted after a hearing currently scheduled for February 14, 2017, class members will receive more information about the terms of the settlement.

At that time, consumers can also visit www.VWCourtSettlement.com to enter their vehicle’s VIN to learn if they have an eligible vehicle and see their range of compensation. Additional information can also be found on the Court’s website.

For approximately 30 to 40 million Americans, the mere thought of a trip to the dentist triggers anxiety. And an even greater sense of fear may transpire if a dental appointment involves a drill.

But good news may be on the horizon for individuals who would rather not see a drill brought into the cavity-filling equation. Clinical trials are underway at the University of Alabama at Birmingham to treat cavities with resin.

The less painful treatment option is called resin infiltration, and researchers say it may soon be available to patients with small cavities in between teeth.

Filling these types of cavities normally requires the use of a numbing shot and drill, but resin infiltration would eliminate the need to chip away at a tooth in order to access the decay. Instead, dentists could simply slide a plastic perforated sheet between the teeth with the cavities.

Potential game-changer

“When we develop cavities between teeth, sometimes we have to go through the tooth, and we end up damaging healthy tooth structure,” said Dr. Augusto Robles, assistant professor and director of Operative Dentistry Curriculum. “This new system allows us to skip the drilling and helps us preserve that structure.”

Once the tooth is filled with the liquid resin, a dental curing light is applied to the tooth to cure the resin. Since there is no drilling necessary for the procedure, it could be completed without anesthesia.

“Since this is a no-shot and no-drill treatment, it is popular with patients,” said Nathaniel Lawson from the school of dentistry director of biomaterials. “And since no tooth is removed, it is a very conservative procedure.”

Interproximal cavities only

The drill-free procedure could be a game-changer for the future of dentistry, the researchers said. “In my 24 years of practicing, this changes everything we’ve done so far. It’s marvelous,” said Robles.

But there are a few caveats. The new, FDA-approved treatment option would only be available to people with cavities in between teeth (commonly referred to as interproximal cavities) and on smooth surfaces where cavities are small.

Resin infiltration would not work for large cavities or cavities on top of teeth because the liquid resin “has to be able to be absorbed into the cavities in between teeth,” explained Robles.

The product is commercially available in Germany, but is mostly being used in clinical trials in the U.S. The University of Alabama at Birmingham is currently conducting the largest clinical trial of the product with 150 patients enrolled in the study.

The Yahoo and Verizon acquisition deal has faced many bumps in the road since the deal was first struck last July. In September, details on Yahoo’s data breach of 500 million accounts were made public and threatened the security of the arrangement.

Unfortunately, things only seemed to escalate from there. Rumors circulated that Verizon was seeking a $1 billion discount on the deal, and executives stated that they needed more information before things could move forward. Then, in December, a separate data breach of one billion user accounts was revealed, and many experts proclaimed that the acquisition was as good as dead.

However, Verizon hasn’t left the negotiating table, and now sources are saying that a new deal could be imminent. Bloomberg quotes sources close to the matter as saying that Verizon is close to renegotiating a deal that would reduce the original $4.8 billion price tag by about $250 million.

Additionally, sources say that Yahoo’s renamed entity Altaba would share ongoing legal responsibilities related to the data breaches. While a specific timetable for the announcement has not been set, and the deal could be renegotiated further, sources say the deal could be announced as soon as a few days or as late as a few weeks from now.

Cementing a deal

Yahoo has been under pressure to cement the deal for some time. CEO Marissa Mayer, who was brought in specifically to turn things around for the struggling company, has been at the helm as each data breach was publicized. However, earlier reports suggest that she will be stepping down as a director pending a successful acquisition deal.

Verizon has faced a different sort of pressure connected to the deal. Yahoo’s platform of one billion users would greatly help the company expand into the mobile media and advertising markets, but some shareholders may be leery about doing business with a company that has suffered so much scandal in such a short amount of time. However, ultimately, those same shareholders would have to approve a revised deal before it could go forward.

On news of the deal, Yahoo’s stock jumped 2% to $45.93 just before 11:00 a.m. Consequently, Verizon shares slipped 0.7% to $47.95. 

Many telemarketing scams originate overseas but, as a recent case involving a Florida man shows, there are often U.S.-based accomplices who keep the cash spigot open.

The case involves Joel S. Treuhaft and his company, PHLG Enterprises, LLC. The Federal Trade Commission (FTC) charged that they collected more than $1.5 million from about 3,000 consumers in a scheme that helped Indian call centers conduct IRS tax scams, government grant scams, and advance-fee loan scams, among others.

“The scammers behind these call centers relied on PHLG and its runners to get consumers’ money,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection.  “Stopping companies that assist and facilitate fraud remains a top FTC priority.”

Bogus bills

The FTC said that telemarketers at Indian call centers conned consumers into paying hundreds or thousands of dollars each for taxes they did not owe, or fees for services they did not receive. They often pretended to be affiliated with government agencies, telling people they owed money to the IRS, or that they would get a government grant after they paid a fee.

The consumers paid via Western Union or MoneyGram cash money transfers, making it difficult for them to trace their payments or obtain refunds. The defendants paid “runners” to collect the money at retail stores that offer money transfer services. 

Using text messaging, the Indian call centers dispatched runners to pick up the money as quickly as possible so that consumers would not have time to cancel or reverse the money transfer if they became suspicious.

Some runners lied to store employees to retrieve a consumer’s money, including saying they were the consumer’s friend or relative. The runners went to various stores every day, for eight to 10 hours per day, to collect consumers’ money, the agency said, keeping a portion of each payment as their share of the "take."

Under the FTC order, Treuhaft and his company are banned from working with telemarketers. The order imposes a $1.5 million judgment that will be suspended based on the defendants’ inability to pay. The full judgment will become due immediately if they are found to have misrepresented their financial condition.

Numerous studies have shown how important friendships are to our mental and physical health, and friendships may be even more important during motherhood. When life with kids feels chaotic and overwhelming, commiserating with an equally frazzled friend can be downright therapeutic.

Having a pal who is navigating the same life stage as you can be beneficial, as mom friends might understand the challenges you face in a way that friends without kids can’t. But making new friends can be a challenge, especially for busy moms.

That’s where a new app called Peanut comes in. The new app for iPhone users aims to connect moms with new friends in their area through a system similar to Tinder.

Algorithm-based matching

After creating a profile, moms can swipe through a selection of other moms in their area who are also looking for friendships.

Peanut uses data contained in your Facebook profile (your location, education, and profession) to come up with its collection of matches. From there, a mama’s personality, values, and interests come into play.

To boost your chances of finding a friend who shares your interests, the app lets you choose three “badges” to identify yourself. Options include “dance machine,” “hot mess,” and “city gal,” according to Mashable.

Meaningful connections

Friendship-seeking mamas can also note if they are a single mother or if their child has special needs. Matched moms can message each other, set up group chats, and create calendar events for meeting up in person.

Although Peanut helps facilitate friendships between mothers, its ultimate goal is to form meaningful connections based on more than the obvious common thread of parenthood. Per the app's website, the goal is for women to "Meet as mamas and connect as women."

While nervous new mamas might get the most out of the app, it is available to all women with kids up to age 16. Peanut is available as a beta download on the App store.

February is prime vacation travel time, with many people seeking warmer temperatures in the tropics. So it's probably a good time to remind consumers about the prevalence of travel scams.

In Florida, Attorney General Pam Bondi has announced a settlement that permanently shuts down a travel company operation that she says was deceiving consumers with its sales tactics.

The agreement bars Map Destinations, LLC and its owners, operators, and managers from marketing travel club memberships. The company is based in St. Augustine, Fla.

No legal way to operate

After Bondi obtained a temporary injunction against Map Destinations, LLC, the court appointed a receiver, which determined that there was no way for it to legally operate.

According to Bondi, the company marketed travel club memberships to consumers, and these memberships often cost thousands of dollars. The company promised its customers that their memberships would give them discounted travel and access to expert travel advice.

But Bondi says her office got reports from consumers who said that Map Destinations and its owners overstated the savings and nature of the benefits. They also didn't like the way the memberships were marketed.

“Tourism is vital to Florida’s economy and we will not tolerate anyone using deceptive or unfair trade practices to take advantage of people trying to take a vacation,” Bondi said. “This settlement will help better protect travelers no matter their vacation destination.”

For the next five years, the company and its owners are prohibited from selling travel club memberships in Florida. It also agreed to give up any legal claim to its assets that were seized by the state during the investigation.

Grievances are common

The Federal Trade Commission says it routinely receives many reports about travel scams, most of which make victims believe they have won a free vacation. A telemarketer congratulates the victim on "winning" two tickets on a luxury cruise, but to claim their prize they must first wire several hundred dollars to cover fees and taxes.

When shopping for a vacation, the FTC suggests getting recommendations, calling to verify reservations and arrangements, and obtaining a copy of the cancellation and refund policies.

One final tip -- always pay with a credit card. If a problem arises, you can dispute the charge and usually get your money back.

Against the Grain Pet Food is initiating a recall for one lot of its "Against the Grain Pulled Beef with Gravy Dinner for Dogs" dog food. Company officials say that the product may be contaminated with pentobarbital.

Pentobarbital is a barbiturate that can cause several side effects for dogs who consume it, including drowsiness, dizziness, excitement, loss of balance, nausea nystagmus (wherein the eyes move back and forth in a jerky manner), inability to stand, and coma. 

The product was manufactured and distributed in 2015 and has an expiration date of December, 2019. The lot number on affected products is 2415E01ATB12 and the second half of the universal product code (UPC) is 80001. These figures can be found on the back of the product label. 

What to do

There have been no complaints reported to Against the Grain about the product at this time. However, consumers in possession of recalled cans are urged not to feed it to the food to pets. 

The company recommends returning the product to the place of purchase. Consumers who do so will receive a full case of Against the Grain food for any inconvenience.

For more information, consumers can contact the company at 1-800-288-6796, Monday through Friday, between 11:00 a.m. and 4:00 p.m. CST.

Marathon Pharmaceuticals LLC is delaying the U.S. launch of its newly approved drug to treat Duchenne muscular dystrophy following criticism of the $89,000 annual price it had tacked onto the drug, which is available in the UK for about $1,200.

“Marathon’s apparent abuse of government-granted exclusivity periods and incentives to sell what should be a widely available drug for $89,000 a year is unconscionable,” Sens. Bernie Sanders (I-Vt.) and Elijah Cummings (D-Md.) wrote in a letter to Marathon CEO Jeffrey S. Aronin. “Exorbitantly pricing potentially life-saving medications that should be widely available for a fraction of the price hinders patient access and drives up costs for the entire health care sector.” 

Aronin defended the pricing plan, saying the company plans extensive additional research. He also objected to critics who said the drug should be considered a generic.

"FDA considers deflazacort a new drug and we had to get it approved," he said in a posting on the company's website. 

"Most important of all," Aronin said, "every patient who needs this drug will have access to it and ... price should not be a barrier. Put simply, we expected patients will pay a standard co-pay of typically $20 or less per prescription."

Families shocked

The U.S. Food and Drug Administration last week approved Emflaza (deflazacort) tablets and oral suspension to treat patients age 5 years and older with the rare genetic disorder that causes progressive muscle deterioration and weakness. 

Families which had been pressing the FDA to approve the drug for use in the U.S. were shocked to learn of Marathon's pricing plan. Some families said they have been buying the drug in the UK for about $1,200 per year. The FDA's approval gives Marathon the exclusive right to sell deflazacort for seven years before competitors can enter the market. 

Recently, Marathon acquired the rights to historical clinical trial data from the 1990s and completed some additional analyses to gain approval from the FDA to sell the medication in the United States, Sanders and Cummings noted. 

“We believe Marathon is abusing our nation’s ‘orphan drug’ program, which grants companies seven years of market exclusivity to encourage research into new treatments for rare diseases – not to provide companies like Marathon with lucrative market exclusivity rights for drugs that have been available for decades,” Sanders and Cummings wrote in a letter to Marathon.

Marathon also received another lucrative award from the government, a priority review voucher, potentially worth hundreds of millions of dollars, they noted.

"Modestly priced"

Marathon’s chief financial officer defended the new price tag for deflazacort by claiming it is “modestly priced for an orphan drug,” drawing a harsh response from the senators.

“That argument is not a defense of Marathon’s actions, but rather an indictment of a system that allows drug companies to engage in such opportunistic pricing behavior,” Sanders and Cummings said. They had objected in October 2014 to the company’s price increases for two older heart medications, Isuprel and Nitropress.

President Trump has promised -- both on the campaign trail and since taking office -- to bring down drug prices. In a Jan. 31 meeting with drug company executives, Trump promised he would "streamline the FDA" to make drug approval faster and cheaper, Reuters reported.

About DMD

DMD is the most common type of muscular dystrophy. It s caused by an absence of dystrophin, a protein that helps keep muscle cells intact. The first symptoms are usually seen between 3 and 5 years of age and worsen over time.

The disease often occurs in people without a known family history of the condition and primarily affects boys, but in rare cases it can affect girls. DMD occurs in about one out of of every 3,600 male infants worldwide.

People with DMD progressively lose the ability to perform activities independently and often require use of a wheelchair by their early teens, the FDA said. As the disease progresses, life-threatening heart and respiratory conditions can occur. Patients typically succumb to the disease in their 20s or 30s.