Current Events in July 2017

One of the immutable truths surrounding electronic devices is that their importance is only eclipsed by how much they cost, so protecting your gadgets from damage or theft is generally a top priority.

While certain protection policies through your mobile carrier might cover your phone if it is lost or stolen, consumers might be less knowledgeable about what kind of coverage exists for their other electronic gadgets and devices – like laptops, televisions, or tablets.

Different types of warranties and policies can cover these items under certain circumstances, and some consumers may feel more secure with taking out additional coverage on big ticket items. Below we’ll run through some of the coverage options and whether they’re worth investing in.

Home insurance policies

If a retailer's warranty doesn’t bring the peace of mind you’re looking for, the first place you might want to check for device coverage is in your home insurance policy. The important thing to keep in mind here is to know exactly what your policy covers and what it does not.

Insurance provider NetQuote discusses a couple of scenarios where policies are sometimes limited.

• In the case of a natural disaster or weather event, like a lightning strike, your policy may not cover the damage if the power surge damages the circuits of plugged-in devices.
• Your policy may only cover electronics up to a certain dollar amount, so if your expensive PC build (or even several of your devices) are damaged or stolen, they may not all be covered.
• Some policies exclude certain pieces of computer equipment or electronic devices, so be sure to check which of your devices are included.
• Electronic devices may depreciate in value over time and most policies only cover gadgets based on their market value, so there may not be enough compensation provided to buy newer models of the same device.
• Many homeowner’s and renter’s insurance policies do not cover technical malfunctions, so if a device just stops working out of the blue then you may be left without coverage.

Specialty insurance

If your home insurance policy has too many gaps and you’re not satisfied with retailer warranties, you might want to consider specialty insurance provided by a third party. Offers from these companies can often be less expensive than retailer warranties, but just as with any service you’ll need to shop around to find the deal that’s right for you. A few options include:

iConnectProtectenables consumers to cover all of their electronic devices under one plan. The service covers a wide range of gadgets and devices from mechanical and electrical breakdown, as well as accidental damage. Claims are handled by the company repairing, replacing, or reimbursing consumers for the value of their device, with customers paying a monthly fee. 

Consumer Priority Service (CPS)began as an electronics repair center in 1990, but has grown to become an international extended warranty service company that covers both electronic devices and appliances. The company offers a variety of service plans for consumers to choose from, including extended, in-home extended, Date of Purchase, Accidental Damage, and OEM Parts and Labor. Consumers can purchase a CPS warranty through a participating retailer or internet affiliate, such as Sam’s Club or eBay, and coverage is transferrable if you sell or give your device away for a $25 fee.

ProtectionPlaceis an online platform where consumers can buy coverage for a range of big-ticket and portable electronic devices. Most of its policies cover devices for 2-5 years, and consumers can get instant price quotes by inputting their device, purchase price, and preferred coverage on the company’s site. The service covers mechanical and electrical breakdown and power surge protection, but consumers can add accidental damage protection to some plans by paying a small fee. The company also covers all shipping and return costs for sending a customer’s device to one of its authorized repair facilities.  

Is it worth it?

Although all these options are out there for the taking, deciding whether to get additional coverage for your electronic devices depends on several factors, including your financial condition, how necessary the items are, and their value.

For example, if you depend on these electronic devices to run your business or function in your job, then covering them may be a good idea since you’ll want to repair or replace them as quickly as possible to minimize any downtime. However, if the devices aren’t used that often or aren’t likely to be damaged, then passing on additional coverage may save you money in the long run.

The last thing you might consider is whether the cost of the coverage is more or less than the price of repairing or replacing the device yourself. Always be sure to read any warranty or insurance policies carefully so that you don’t end up kicking yourself later over lost money.

Learn more in the ConsumerAffairs Electronics Extended Warranties Buyers Guide.

Indiana has struck a blow against robocalls, even those carried out by non-profit organizations.

The U.S. Supreme Court declined to review a lower court's ruling that upheld the Hoosier state's anti-robocall law, which bars pre-recorded messages sent to consumers' phones without their consent.

Patriotic Veterans, Inc., a non-profit organization, asked for the review to make an exception for non-profits. It argued in court that the Indiana law violates the First Amendment to the Constitution.

Now that the Supreme Court has settled the issue, it is possible other states may pass laws based on the Indiana statute.

Indiana argued that political and non-profit groups are allowed under the law to make calls, even to numbers on the Do Not Call list, as long as the calls are placed by a human operator and don't use a recorded voice.

More intrusive

Part of the objection consumers have to robocalls is the technology allows an operation to place many calls at once. A human being is required only if a consumer answers the phone and remains on the line. It results in many more telemarketing calls than in a single person called individual numbers. The efficiency it provides is one reason telemarketers now favor robocalling.

Indiana Attorney General Curtis Hill praised the high court's decision to let the state law stand.

“Every day, telemarketers seek to burden residences with automated, pre-recorded phone calls conveying unwanted messages," Hill said. "Simply put, without this law they would be a nuisance.”

Hill says his office received more than 15,000 complaints last year about unwanted calls, the majority of which were robocalls.

Big increase in calls

A 2016 report by the YouMail National Robocall Index (YNRI) estimated that as many as 2.3 billion robocalls were made in the U.S. in the month of January alone. The report said nearly one in six phone numbers calling the average consumer is a robocall.

While some robocalls are perfectly legitimate -- your dentist might use such a system to confirm your appointment -- the technology has recently been deployed by scammers.

Instead of a solitary scammer dialing up potential victims, getting into his pitch, only to have the target hang up on him, technology can make thousands of calls and play a recording when a potential victim answers.

Most people are going to hang up, but the few who respond are connected to a person who then tries to reel them in. It makes the scam a lot more efficient and dangerous.

With low gasoline prices, consumers have shown their preference for trucks and SUVs, while passing on the growing number of energy efficient hybrids and electric-powered vehicles on the market.

Even so, Volvo sees electrics as the future and has announced that within three years all of its vehicles will be powered by a hybrid or electric engine. It's saying good-bye to the traditional internal combustion engine.

The company said the change will go into effect with the 2019 model year.

“This is about the customer,” said Håkan Samuelsson, President and Chief Executive of Volvo Cars. “People increasingly demand electrified cars, and we want to respond to our customers’ current and future needs. You can now pick and choose whichever electrified Volvo you wish.”

But sales figures tell a different story. In its latest accounting, Kelley Blue Book (KBB) reports the average transaction price for all-electric vehicles declined nearly 10% year-over-year, suggesting dealers had to discount them to move them off the lot. The average sale price of hybrids was down a smaller 1.7%.

Positioning for the future

But Volvo appears to be positioning itself for the future. And while gasoline prices may remain in their present range for years, consumers may come to see the advantage of using even less of it.

Volvo says it will launch five completely electric cars between 2019 and 2021, three bearing the Volvo nameplate and two under the Polestar brand, Volvo Cars’ performance car division.

The new models will be supplemented by a range of gasoline and diesel plug-in hybrid and mild-hybrid 48-volt options on all models. Volvo says it represents one of the biggest shifts to electrified car offerings of any car maker, perhaps putting it on a collision course with Tesla.

Coinciding with Volvo's announcement, Telsa says its first "lower priced" Model 3 will roll off the assembly line by the end of this week. While a standard Tesla electric-powered vehicle has a sticker price of $100,000 or more, the Model 3 will sell for around $35,000.

Tesla has said that it plans to produce 5,000 Model 3 vehicles per week at some point this year and increase that to 10,000 vehicles per week in 2018.

Technology has disrupted industry after industry, changing the landscape and usually resulting in lower costs to consumers. Ride-sharing platforms like Uber and Lyft and the lodging app Airbnb are just a few examples.

So here's an interesting question -- is technology, in the form of online courses, about to dramatically lower the soaring cost of higher education?

In some ways, that process has already started, but since the brick-and-mortar schools that have raised tuition over the years are mostly the ones offering online education, the decline has been gradual. Still, if you are willing to attend school completely online, the cost of a degree is much lower than it was just a few years ago.

Most affordable schools

SR Education Group, which compiles a list of online schools, recently published a list of colleges and what they charge in annual tuition. According to the rankings, the College of Southern Nevada charges $4,217 a year for online course tuition for associate's and bachelor's degrees.

Aspen University charges $4,750 and California Coast University charges $4,800 a year. Both are private, for-profit schools but College of Southern Nevada is public, non-profit.

Included on the list, with annual tuition below $8,000, are non-profit schools such as Marshall University, Lamar University, and University of Maryland - College Park. You can see the complete list here.

Costs could go down

While nearly all of these schools still have physical campus locations that must be maintained, it costs a lot less to provide online education. As U.S. News and World Report recently noted, schools' cost don't rise very much when they admit an increased number of online students. They still keep the number of instructors to a minimum and often employ computers to help with the grading.

But just how satisfying is it to get your degree completely online? OnlineCollegePlan.com recently completed a student satisfaction survey of students pursuing online degrees and found the most satisfying degree programs are offered by mostly public, non-profit colleges.

They might not be the most affordable, but they aren't the most expensive either. Topping the list in student satisfaction is the University of Minnesota Crookston, followed by Oregon State University, Northeastern, Indiana University, and Arizona State.

In many cases, attending an online school based in the state where you live will qualify you for in-state tuition, adding to the savings.

Having a dog means having a sidekick to walk with you through each new experience -- even the stressful ones, such as moving.

Packing, moving, and adjusting to a new home may be as stressful for you as it is for your pet. As the rooms in your home slowly empty, your four-legged family member may begin to sense an impending change.

But moving doesn’t have to make your pet feel as if their world is being turned upside down. Here are a few tips for helping your dog get through a move safely and happily.

Preparing pets

Try to maintain your dog’s regular routine. Keep feeding times, walks, and playtime the same as usual.

“Dogs are generally quite content as long as their social group (people, other pets) remains fairly much the same and as long as the daily program (routine) remains fairly constant,” says Dr. Debra Horwitz, a veterinarian.

Already have the keys to your new home? Take your dog for a visit or two while the house is still empty. Take some high-value treats along and reward your pet as you go for a leashed walk both inside and outside the home.

"Play toys, affection sessions, and food treats can help the pet make the move to the new home a positive experience," Horwitz says.

Other tips

• Pack slowly. Because dogs thrive on routine and familiarity, a home that is suddenly devoid of all familiar objects can feel scary and uncomfortable. Consider packing a little bit each day instead of hauling everything away over the course of a week or weekend.
• Create a safe zone. If you don’t have the luxury of packing slowly over time, leave just one room or space (the one in which your dog spends the most time) the same for long as possible. Keep the room as quiet as possible.
• Set aside comfort items. If your pup has a favorite bed, blanket or toy, leave it out and accessible throughout the entire process of packing, moving, and unpacking.
• Be consistent. Place your pet’s bowls, toys, and bed in the same spots as in the old house -- for example, keep food bowls next to the refrigerator or your pet’s toys in the family room.

Consumers may recall those old commercials and health announcements informing them that if they’ve ever had the chicken pox, then the shingles virus is already inside them. But a recent study shows that shingles also increases cardiovascular risks.

A team of South Korean researchers analyzed data from the National Health Insurance Service’s “medical check-up” database and found that those who contracted shingles tended to have higher risks of heart attack and stroke. While the exact cause of this relationship remains unknown, Dr. Sung-Han Kim says that it’s important for patients and doctors to be aware of the findings.

“While these findings require further study into the mechanism that causes shingles patients to have an increased risk of heart attack and stroke, it is important that physicians treating these patients make them aware of their increased risk,” he said.

Higher risk of heart attack and stroke

Kim and his colleagues analyzed nearly 520,000 patients who were tracked from 2003-2013, over 23,000 of whom developed shingles during the study period. After creating a cohort with just as many shingles-free patients to serve as control subjects, the researchers looked for common characteristics in the experimental group.

They found that patients with shingles were most likely to have common risk factors associated with stroke and heart attack, such as old age, high blood pressure, diabetes, and high cholesterol. Other findings suggested that most shingles patients tended to be women, have lower smoking rates, lower alcohol intake, more frequent exercise habits, and be part of a higher socioeconomic class.

After assessing each patient’s medical history, the researchers concluded that shingles increased the risk of heart attack by 59%, the risk of stroke by 35%, and the risk of experiencing both by 41%. Stroke risks were highest for those under the age of 40, and the risk of both stroke and heart attack were highest within the first year after the onset of shingles.

According to the Centers for Disease Control and Prevention (CDC) one out of every three people in the U.S. will go on to develop shingles in their lifetime. And, since the risk of shingles increases as a person gets older, the findings related to cardiovascular risks could be especially important for preventing premature death.

The full study has been published in the Journal of the American College of Cardiology.

Summer travelers can encounter all sorts of obstacles. Nearly 20% of summertime flights get delayed or canceled, for example.

That's why many consumers -- particularly those traveling out of the country -- opt for travel insurance to cover delays, mishaps and cancellations.

But these policies are not all the same, with many offering subtle differences in coverage. Squaremouth, a website that studies and compares more than 100 policies from 22 providers, recently offered some tips for selecting policies and saving money.

Get medical coverage

While international travelers are often concerned about getting their money back if they get sick and can't make part of the trip, Squaremouth says a bigger concern should be paying for medical treatment.

It turns out that a lot of health insurance, including Medicare, does not usually cover you when you are outside the United States. A travel insurance policy can fill this gap.

Squaremouth recommends at least $50,000 in emergency medical coverage for international trips. However, you can save money by selecting a "secondary" medical policy. It's an extra step in the claims process but Squaremouth says it can be less expensive than a "primary" policy.

If you are taking a cruise or some other vacation package in which you commit upfront, you may consider taking out travel insurance to cover you in case something happens to prevent you from making the trip.

Not a bad idea, but Squaremouth offers this money-saving tip: read the fine print to see if you would be on the hook for the entire amount, or just a portion. If it's the latter, don't insure for the entire cost of the trip, just the amount you would have to forfeit.

How about road trips?

What if you're staying in the U.S. this summer and driving to your destination. Would you ever need travel insurance?

According to Squaremouth, road trip travel insurance usually covers just medical emergencies. If you already have health insurance, is it really necessary?

If your health insurance policy has a high deductible, it might be a savvy move. If you select a "primary" emergency medical policy, it would allow you to bypass your high-deductible coverage, which could require you to pay hundreds, even thousands of dollars out-of-pocket.

Squaremouth says the least expensive "primary" policy for two 50-year-olds taking a 10-day domestic road trip is $42.

Young athletes from across the country go through high school hoping to catch the eye of a college scout, but New York Attorney General Eric Schneiderman charges one scouting company with preying on those hopes and making false promises.

National Scouting Report, Inc. (NSR) – a major high school athletic scouting and college recruiting business based in Alabaster, Alabama – has agreed to settle charges that it misled prospective clients and made false claims in its advertising. As part of the settlement, it has agreed to revise practices and pay $20,000 in penalties.

“Preying on the hopes and aspirations of New York’s young, devoted athletes is incredibly cynical,” said Schneiderman. “Students who are attempting to use their athletic promise to further their educational opportunities should not have to worry about being exploited by those seeking to make a profit, without any consideration for their success.”

Deceptive practices

The New York AG’s investigation found that NSR made several unsubstantiated claims about the success of its recruiting program, such as calling itself the “highest rated scouting company” that was “resourced by more college coaches than all other scouting services combined.”

Additionally, recruiters often relayed false statistics to high school players and their families, including that 90% of its prospective athletes received offers from schools and that a quarter of them went on to play in NCAA Division I programs, the AG charged. The truth for college athletes is much bleaker than that, however, with only 3.4% of high school athletes making it to the collegiate athletic level and only 1% going on to play at Division I schools.

Regardless, Schneiderman found that NRS agents told certain families that they were “100% sure” they could get their son “into a good school,” claims that turned out to be patently false.

Officials say that NRS also claimed to have scouts that were well-trained and experienced, but the investigation revealed that many of these agents only received one week of training on sales techniques and how to evaluate more than a dozen sports.

Settlement terms

Schneiderman says these agents often approached high school athletes at competitions with the hopes of selling the company program to their families, which cost $3,000 to enroll in.

Families who signed up were promised that the scout would stay actively and personally involved in their athlete’s recruiting process, but many consumers complained that their calls were never returned and that the scout and other company officials simply disappeared.

Under the settlement, NSR has agreed to change the way it advertises and reform its training and sales practices. The company will also pay $20,000 in penalties, costs, and consumer restitution and remove any language on its website that cannot be substantiated.

Affected New York consumers will also be provided with an applicable notice of cancellation requirements when they sign up for the service, and NSR has promised to tell clients in the future if their scout leaves NSR.

After two separate reports of fidget spinners catching fire while charging, government safety officials are urging caution.

In a statement to the technology publisher Gizmodo, the Consumer Product Safety Commission (CPSC) said it is investigating, and recommended users monitor the toys while they are charging.

The two fires were first reported by parents on social media, and the reports were later picked up by local media. In both cases, the toys were from undetermined manufacturers.

Fidget spinners are simple devices that have become the hot toy of 2017. The basic toy consists of a two- or three-pronged design with a bearing in its center circular pad. You hold the center pad while the toy spins around.

Not all of these toys contain a rechargeable battery. Those that do use the electric current mostly to power tiny Bluetooth speakers. Children – and even adults – use the toys to expend nervous energy.

Use caution when charging devices

Safety officials say the reports about burning fidget spinners underscore the need for caution when using any device powered by lithium ion batteries. Earlier this year there were reports of hoverboards – another popular toy – overheating and catching fire while being charged.

In March, the death of a three year-old girl in Pennsylvania was attributed to an overheated hoverboard after fire swept through her family's home. In late 2016, nearly 2,000 hoverboards were recalled after the manufacturer warned that they could overheat.

In a report, Underwriters Laboratories (UL) notes that the failure rate of these batteries is small, but has resulted in high profile incidents when laptop computers and smartphones have overheated and caught fire.

Design flaw and product abuse

When these failures occur, UL reports there are usually either associated with a “poor execution of a design, or an unanticipated use or abuse of a product.”

The CPSC says consumers should never charge a lithium ion-powered device overnight, while everyone is asleep. You should always follow the manufacturer's instructions for charging, using the charger that came with the product you are charging.

If you have a safety issue while charging a battery-powered device, the CPSC would like to hear about it. You can report it at www.saferproducts.gov.

Actress Jessica Alba's Honest Co. has agreed to pay $7.35 million to settle claims that its "all natural" toothpaste, floor cleaners, and so forth aren't all that natural, while continuing to deny that it did anything wrong.

The proposed deal would settle four separate class action lawsuits and would return $2.50 as payment or credit for each Honest Co. product that class members purchased, up to ten products each.

“This settlement in no way changes the fact that our marketing practices are entirely appropriate and we will continue to market products as ‘natural,’” Honest Co. said in a statement.

Honest Co., co-founded by Alba in 2011, makes a wide range of household products that it says are free of harsh chemicals. The lawsuits cited independent tests which showed that the products contained synthetic and toxic ingredients, Reuters reported. 

Honest Co. said it settled the lawsuit to limit the cost and distraction of litigation. The company denied that it had fraudulently labeled its products.

More car buyers are making the mistake of stretching out their payments beyond the length that personal finance experts say is prudent.

An analysis by automotive publisher Edmunds.com shows the average auto loan length reached an all-time high of 69.3 months in June — up 6.8 percent from five years ago. For those of you without a calculator within reach, that's five years and nine months.

It's also no surprise that Edmunds found consumers purchasing a car in June took on more debt to do so. The average financed amount hit nearly $31,000, up $631 from the month before. The average monthly payment in June was $517, no doubt why more consumers felt the need to extend the payments.

"Stretching out loan terms to secure a monthly payment they're comfortable with is becoming buyers' go-to way to get the cars they want, equipped the way they want them," said Edmunds Executive Director of Industry Analysis Jessica Caldwell.

Why it's risky

But Cardwell says that's risky, and here's why: it leaves borrowers exposed to owing more for the car than the vehicle is worth. After all, a car starts losing value as soon as you drive it off the lot.

Maybe that's not all that bad if you have no loss of income or other financial setbacks. But it pretty much guarantees you cannot sell the car or trade it in for a while, unless you find a dealer willing to take the loss. These days, that's getting harder to do.

Meanwhile, the interest rate on car loans has come up in the last 12 months. Today, Edmunds says the average is 4.96%, up 5.7% from a year ago and up 13.6% from five years ago.

Consumers are choosing more expensive vehicles

It's not that all car prices are going through the roof. There are plenty of attractive vehicles in the $16,000 to $26,000 price range. Transaction prices have risen primarily because consumers have chosen expensive cars and trucks, loaded with expensive options. That's why many vehicles now cost what a condo did just a few years ago.

Personal finance experts advise that new or used vehicles should not be financed for longer than 60 months. Actually, 48 months -- four years -- is optimum.

Buyers should also put up a healthy down payment. The resulting monthly payment should then fit comfortably into the household budget.