Current Events in September 2017

An online lead aggregator has caught the ire of the Consumer Financial Protection Bureau (CFPB) for directing consumers towards lenders who offered illegal or unlicensed loan services.

Zero Parallel, LLC has been charged by the agency of allegedly selling consumers’ payday and installment loan applications to collectors who were likely to make void loans that lenders had no legal right to collect. The CFPB’s proposed order against the company and its owner Davit Gasparyan demands an end to these illegal practices and imposes a stiff penalty.

“Zero Parallel steered consumers toward payday and installment loans that were a bad deal,” said CFPB Director Richard Cordray. “We’re ordering Zero Parallel and its owner Davit Gasparyan to pay $350,000 and to stop these illegal abusive practices.”

Void loans

The online aggregator, which is based in Glendale, California, operates by buying consumer information – or leads – from lead generators. It then turns around and sells that information to purchasers such as payday or installment lenders who take over handling the loan.

However, the CFPB charges that Zero Parallel often sold leads for consumers in states where the resulting loan was void and unable to be collected. These practices often led individuals into situations where they did not understand the risks, costs, and conditions of the loans they were being offered, the agency said.

Under the consent order, Zero Parallel must undertake reasonable efforts to ensure that loan applications it sells do not lead to loans that are void according to where consumers live. The company must also pay $100,000 to the Consumer Bureau’s Civil Penalty Fund.

In a separate suit, the CFPB has submitted a consent order against Davit Gasparyan for conducting similar practices with another lead aggregator called T3Leads. If approved, the order would ensure that the owner also undertakes reasonable efforts to verify required licenses for lead purchasers and that loan applications do not lead to void loans. The order also stipulates that Gasparyan be barred from deceiving consumers in the future and pay a $250,000 civil money penalty to the Consumer Bureau’s Civil Penalty Fund. 

Hurricane Harvey smashed into Texas last week, helping produce an upward spiral in first-time jobless claims.

The Department of Labor (DOL) reports initial applications for state unemployment benefits shot up 62,000 in the week ending September 2 to a seasonally asjusted total of 298,000.

That's the highest level since April 18, 2015.

The four-week moving average, considered a more accurate hauge of the labor market, jumped by 13,500 to 250,250 from the previous week.

The full report is available on the DOL website.

Non-manufacturing economy on the rise

August was another month of growth of economic activity in the non-manufacturing - or services – sector for a total of 92 months in a row.

The nation’s purchasing and supply executives, in the latest Non-Manufacturing Institute for Supply Management (ISM) Report On Business, say the non-manufacturing index (NMI) was up 1.4% last month registering 55.3%.

A reading above 50 indicates growth, while anything below that suggests contraction.

Looking inside the NMI, the Non-Manufacturing Business Activity Index came in at 57.5%, up 1.6% from July, reflecting growth for the 97th consecutive month, at a faster rate in August.

The New Orders Index rose 2% to 57.1%, the Employment Index increased 2.6% to 56.2%, and the Prices Index increased added 2.2% for a reading of 57.9%, indicating prices increased in August for the third consecutive month.

Industry performance

The 15 non-manufacturing industries reporting growth in August were:

1. Retail Trade;
2. Information;
3. Management of Companies & Support Services;
4. Real Estate, Rental & Leasing;
5. Other Services;
6. Wholesale Trade;
7. Utilities;
8. Mining;
9. Educational Services;
10. Accommodation & Food Services;
11. Finance & Insurance;
12. Public Administration;
13. Professional, Scientific & Technical Services;
14. Construction; and
15. Health Care & Social Assistance. 

Two industries reported contraction:

1. Agriculture, Forestry, Fishing & Hunting; and
2. Transportation & Warehousing.

The House of Representatives has passed a bill to bring self-driving cars to public roads at a faster rate.

The measure gives the U.S. government the authority to exempt autonomous vehicles from safety standards that are not applicable to the self-driving technology. It also allows car companies to put up to 100,000 of these vehicles a year on the road.

The measure had backing from a wide collection of both Republican and Democratic lawmakers. The House members said they reacted to complaints from automakers that different laws in different states make it difficult to develop this emerging transportation technology.

Backers of the bill also expressed confidence that the move to self-driving cars would make the highways safer, but not all consumer and safety groups share that view. Consumer Watchdog, one of the groups opposing the legislation, said rushing the issue threatens highway safety and could leave holes in existing regulations.

A 'dangerous' bill

John M. Simpson, Consumer Watchdog’s Privacy Project Director, called the bill "dangerous," charging it would leave a "wild west" without the normal protections for consumers. He noted that the measure pre-empts state safety standards but sets up none at the federal level.

“Pre-empting the states’ ability to fill the void left by federal inaction leaves us at the mercy of manufacturers as they use our public highways as their private laboratories however they wish with no safety protections at all,” Simpson said.

Backers in the House include Rep. Bob Latta (R-Ohio), who says the Self Drive Act will improve consumer safety by reducing traffic accidents. Speaking on behalf of the legislation on the House floor, Latta said six million Americans are involved in traffic accidents each year, resulting in two million injuries.

"Ninety-four percent of the accidents are attributed to human error or decisions," Latta said.

But Consumer Watchdog said the National Highway Traffic Safety Administration (NHTSA) should develop federal rules for autonomous vehicles, which would automatically override state rules and make the roads safer for consumers as carmakers continue to develop autonomous vehicles.

Planning a trip to Florida or the Caribbean this weekend? Uh-oh.

Hurricane Irma, a massive and powerful storm, is churning into the Caribbean toward South Florida. If you have to cancel a planned trip because of the hurricane -- particularly a prepaid trip like a cruise -- you may be in luck, if you have travel insurance and purchased it at the right time.

A travel insurance policy can reimburse you under certain conditions. However, like any insurance policy, those conditions can vary. Squaremouth, a travel insurance comparison site, says policies that include trip cancellation coverage can refund the entire cost of the trip if weather causes a delay or cancellation.

However, in order to take advantage of that coverage, a traveler would have to have purchased the policy before Irma became a named storm on August 30.

Documentation is important

Like any insurance claim, documenting a travel insurance claim is very important. Squaremouth recommends keeping a copy of the itinerary for any airline flight that was cancelled because of Irma. You should also contact the airline to get a statement that backs up the reason for the cancellation.

What if your trip isn't scheduled for another week or so, after Irma has already passed from the scene? Your travel insurance still might pay.

If the storm causes heavy damage to a resort or hotel where you are booked, Squaremouth says the travel insurance may pay off if you cancel the trip. You will also probably be covered if there is a mandatory evacuation declared in the area you are headed.

Squaremouth has established a Hurricane Irma travel resource to aid travelers who may have questions about what their policies cover.

Despite your best efforts to stay on top of cleaning tasks, some areas around your home may still harbor hidden mold and grime. Fortunately, it’s possible to outsmart these unwanted house guests by employing a few clever cleaning tricks.

In a series of articles comprising its “How to Get Rid of the Grossest Stuff in Your House” spotlight, HouseLogic offers tips and advice on how to keep mold, smells, and grime out of a house for good.

From using a damp pillowcase for dusting ceiling fans to skipping the bleach during your mold elimination efforts, HouseLogic says there are a number of ways to get your home gleaming without wasting a lot of time or money.

Cleaning hidden dirty spots

Does your refrigerator sit atop a layer of crumbs, dirt, and unspecified grime? If so, use the vacuum crevice attachment to suck it all out. For appliances with less clearance underneath, attach microfiber cloths to a yardstick with rubber bands. Slide and grab under and between appliances.

To restore your ceiling fan to its former dust-free glory, dampen a pillowcase and slide it over the top of each fan blade. As you slide it off, run your hands along the sides of the blade to wipe up dirt and dust before it has a chance to fall on you.

Getting rid of mold

Instead of using harsh products like bleach, which only discolors mold but does not kill it, make an effort to starve out mold by eliminating moisture. Run the fan in your bathroom any time it’s in use and for 30 minutes after the shower was used.

You can also stay one step ahead of mold growth by using a towel or squeegee to wipe down shower walls, mopping any water spills on the floor and counters, and leaving your shower curtain open to let your shower dry.

Need to get rid of existing mold? Luckily, there's no need for toxic cleaners. Soap, water, and a little elbow grease will do the job just fine, says Bob Justewicz, a director at the National Association of Mold Professionals.

Deep cleaning tips

To eliminate mineral build-up on your showerhead, tie a plastic bag full of vinegar around it and let it soak overnight. In addition to removing build up, this trick will also improve water pressure.

If your child took the liberty of using a wall as a canvas, reach for the Goo Gone spray. This product may traditionally be used to clean sticker residue, but it also works wonders at lifting crayon stains off of walls.

For years, expecting mothers have been leery of using mobile phones while pregnant for fear of adversely affecting their unborn child’s development. But a new study published in BMC Public Health is attempting to assuage those concerns.

Lead author Dr. Eleni Papadopoulou from the Norwegian Institute for Public Health says that prior findings connecting fetal harm to radio waves emitted by mobile phones vary widely and that her team’s most recent findings show no support for the theory at all.

"The concern for harm to the fetus caused by radio frequency electromagnetic fields, such as those emitted by mobile phones, is mainly driven by reports from experimental animal studies with inconsistent results,” she said “Even though this is an observational study, our findings do not support the hypothesis of adverse effects on child's language, communication and motor skills due to the use of mobile phone during pregnancy."

Putting parents at ease

The researchers came to their conclusions after analyzing data on nearly 46,000 mother-child pairs who took part in a population-based cohort study. Participants provided information on mobile phone use while pregnant and gave neurodevelopmental updates on children between the ages of 3 and 5.

In an unexpected reversal, senior author Jan Alexander says that the investigation revealed that mobile phone use by expecting mothers actually resulted in better language and motor skills by age 3, but he admits that this is probably due to factors not measured in the study; the findings indicated that children born to mobile phone users had a 27% lower risk of lower sentence complexity, a 14% lower risk of incomplete grammar, a 31% lower risk of having moderate language delay by age 3, and an 18% lower risk of low motor skills at age 3.

While these findings cannot be directly tied to mobile phone use, the researchers say they are relevant for showing that the devices are not damaging fetal development.

"Our large study provides evidence that pregnant women's use of cell phone is not associated with risk of harming neurodevelopment of the fetus,” said Alexander. “The beneficial effects we report should be interpreted with caution due to the limitations common in observational studies, but our findings should at least alleviate any concern mothers have about using their mobile phone while pregnant."

Rewards credit cards are increasingly popular with consumers, which is the reason we have seen so many of them hitting the market in recent months. This week, two new cards launched targeting specific groups of consumers.

One is a co-branded Navy Federal American Express Card. The Navy Federal More Rewards American Express Card is available to Navy Federal Credit Union members and offers three times the points at supermarkets and gas stations, double points at restaurants, and single points on all other purchases.

The new card does not carry an annual fee, nor does it change fees on foreign transaction or balance transfers. There is no limit on the rewards that can be earned and the rewards never expire.

Matt Freeman, head of credit card products at Navy Federal Credit Union, said the rewards are structured to provide the maximum benefit to the average consumer.

“You have to buy groceries, you’re going to get gas and go out to eat—now you can also benefit from earning additional points when you do,” Freeman said.

Freeman said the timing of the card's launch is no accident. He says members can accrue rich rewards just by using the card to do their holiday shopping.

Chase teams with United Airlines

At the same time, Chase and United Airlines have teamed up on a new travel rewards credit card, the United Travel Bank Card. The card pays 2% in TravelBank cash per $1 spent on United tickets. It pays 1.5% per $1 spent on all other purchases. As an additional bonus for travelers, you can get 25% back on purchases of food and beverages aboard United flights.

Kimberly Palmer, credit cards expert at personal finance site NerdWallet, says the card may be attractive to United's frequent fliers.

"The card has no annual or foreign transaction fees, offers 2% back on United purchases, and $150 signup bonus if you spend $1,000," she said. "The card’s TravelBank cash makes it feel like a traditional cash-back card, but allows consumers to easily spend those dollars on United purchases without dealing with confusing point structures."

Palmer says premium cards like the Chase Sapphire Reserve and American Express Platinum are probably better fits for more frequent travelers, but the United TravelBank Card is a "good choice for United travelers looking for a bit more bang for their buck."

To help ensure you and your family are prepared for a natural disaster, experts recommend having an emergency plan and a well-stocked disaster supply kit. Families with pets should also build a portable emergency kit.

Having an emergency ‘go bag’ filled with necessary documents and supplies can help ensure your pet stays safe in a disaster that may involve flooding, downed power lines, and debris.

Pack emergency items ahead of harsh weather so you’ll be able to leave quickly without forgetting any important supplies. Your emergency go kit should be easy for you (or your dog, if you use a dog backpack) to transport in the event of an evacuation.

Packing list

Here’s what to pack in your emergency kit, according to the ASPCA.

• Pet first aid kit
• Canned/dry food (7+ days’ worth) and collapsible feeding bowls
• Bottled water (3-7 days’ worth)
• Spare collar/harness with ID tag, rabies tag, and a leash
• Folding crate or pet carrier
• Blanket or bedding
• Photocopy and/or USB drive of health records and your vet’s contact info. It’s also a smart idea to have current photos of your pets in case you get separated.

You’ll also want to pack spare medication and flea treatment in case you need to shelter with other dogs. To help your pet stay calm during harrowing times, consider tossing in a few comfort items, such as treats, chew toys, bedding, or a ThunderShirt.

If you evacuate

Additionally, the ASPCA recommends putting Animals Inside alert stickers on your home windows to let rescue personnel know you have a pet in the home. Write “Evacuated” across the sticker if you evacuate with your animals.

Be sure to evacuate early so that you and your pets will be able to get to safety before the disaster hits. If you are sheltering at home, hunker down in a protected room or basement and make sure to have your emergency gear on hand.

Have you ever found yourself drifting off and thinking of other things while driving only to find yourself miles down the road? If so, then you’re definitely not alone.

A recent study shows that the majority of drivers reported mind wandering while driving. However, the researchers point out that this inattentiveness – coupled with external distractions such as phones and mobile devices -- is a major factor in many accidents.

“Driver inattention is a frequent cause of automobile crashes and fatalities. This issue has received considerable attention from the scientific community in recent years,” the researchers said. “Methods of detecting episodes of driver inattention in real-time hold promise for alleviating the human and economic costs of this safety critical issue.”

Drifting off while driving

To test how pervasive mind wandering was among drivers, the researchers set up a driving simulation and monitored participants’ brain patterns to see when their attention drifted off. Drivers completed two 20-minute driving sessions over five consecutive days that simulated conditions on a straight highway at a constant speed to mimic a daily commute to work.

The results showed that mind wandering was prevalent among all drivers, although they were only aware of it around 65% of the time, on average. And, as expected, this lowered state of awareness put them in danger when it came to perceiving the world around them.

“We found that during simulated driving, people’s minds wander a lot – some upwards of 70% of the time,” said researcher Carryl Baldwin from George Mason University. “We were able to detect periods of mind wandering through distinctive electrophysiological brain patterns, some of which indicated that the drivers were likely less receptive to external stimuli.”

Technology could be the answer

So, is there any way to stop our minds from wandering when we’re behind the wheel? While the researchers say further studies are needed to find out just how dangerous this inattention can be while driving, they say that technology might be the key.

"In terms of improving safety in the future, one option could be autonomous transport systems, like self-driving cars, that allow people's minds to wander when it is safe to do so, but re-engage when they need to pay attention," said Baldwin.

The full study has been published in Frontiers in Human Neuroscience.

Joseph Steinberg recently got an email that appeared to be from Amazon, thanking him for making a purchase on Prime Day.

The email promised him a $50 bonus if he would click a link and post a review about the item. Steinburg, who is CEO of SecureMySocial, a firm that watches out for problematic posts, didn't bite. Writing in Inc. Magazine, he said he recognized it as one of the countless phishing schemes using Amazon's name and logo.

But many others might easily fall for it. If you had not made a Prime Day purchase you might be highly suspicious, but if you did make a purchase -- and millions of consumers did -- you might throw caution to the wind and go for the 50 bucks.

How to protect yourself

So if you are an Amazon customer, how do you protect yourself from all the scams that try to take advantage of that relationship. Amazon gets asked that question a lot, and has a page on its website that explains how to protect yourself.

For example, if you get an email about an order you didn't place, it's not from Amazon. The company would like you to send the email as an attachment to stop-spoofing@amazon.com. Make sure you don't open any attachments or click on any links in the email.

Amazon says other scams use a variety of reasons to ask for your user name and password. Should you turn that information over to a scammer, they can buy all kinds of merchandise on your account, charging it to the credit card you have on file.

Other scams will tell you that it's necessary to update your payment information. By directing you to a spoofed site, made to look like it's part of Amazon, the scammer can steal your credit card information.

Black market websites

There are black market sites on the web where scammers can then sell your user name and password, or your credit card info, for a small amount, such as $50 to $100. The purchaser can then use it to make a major purchase -- maybe more than one -- before the fraud is detected.

If you receive a suspicious email that you think could be from Amazon, there is a very simple way to tell if it is. Simply close the email and use your browser to go directly to Amazon.com.

If the email says you need to update your payment information, click on YourAccount and then Manage Payment options. If you really do need to update your payment information, the website will have that information.

There are other dead giveaways as well. Phishing emails sometimes are filled with typos and misspellings. In a legitimate link, the URL should start with https://www.amazon.com, followed by the code for the particular page on the Amazon site. If you don't see that in the link, then it's not a real Amazon webpage.

School hallways are repopulating, temperatures are gradually dropping, and flu season is just around the corner. To help parents and children stay healthy this Fall, the American Academy of Pediatrics (AAP) has issued updated recommendations for the flu vaccine.

"Getting a flu shot as soon as the vaccine is available in your community should be on every parent's checklist, along with other back-to-school routines," said Dr. Flor Munoz, co-author of the report.

"We know that the flu should not be taken lightly. Everyone in the household, including pregnant women, grandparents, and child care providers, should be vaccinated to help prevent its spread,” Munoz added.

Before flu season starts

In order to complete vaccination and provide protection before the flu season starts, the AAP recommends that all children ages 6 months and older get a flu shot as soon as the vaccine becomes available.

Kids who will be getting the vaccine for the first time need two doses at least four weeks apart. For optimal protection, the AAP says children should receive influenza vaccines by the end of October, if possible. Prime flu season is December, January, and February.

Pregnant women and those considering pregnancy should receive the flu vaccine to protect the mothers against infection and allow them to pass on antibodies to their fetuses for up to the first six months of life. Mothers who will be breastfeeding during flu season should also get a flu shot.

Needle-free option not recommended

Once again, the FluMist nasal vaccine is not recommended. Researchers discovered last year that the live attenuated intranasal influenza vaccine did not protect against H1N1 infections in 2013-2014 and 2015-2016, and performed poorly against other strains.

For parents of children who may be scared to get stuck with a needle, there are ways to help manage pain.

First, be honest with your child. Don’t say the shot won’t hurt because kids will learn you are lying and you can lose their trust, says Dr. Margaret Fisher, recent chair of the Section of Infectious Diseases for the American Academy of Pediatrics.

Instead, say “Yes, it'll hurt, but just for a few seconds." To help ease the pain and anxiety when it’s shot time, distract your child by telling them to pretend to blow out birthday candles.

"It works every time," Dr. Hershel Lessin told Health.com. "Or I'll ask them to blow on a pinwheel."

When it’s over, put on your biggest smile to signal that they are all done. Consider offering them a reward for their bravery, such as a lollipop, sticker, or special activity.

Back in 2015, security researchers discovered that certain Lenovo laptops sold starting in the summer of 2014 came pre-installed with adware from a company called Superfish, Inc. This company’s software, called VisualDiscovery, basically acted as a “man-in-the-middle” between consumers and their browsers by inserting ads from partners onto sites that users visited.

However, experts found that the software also opened up users to cyber attacks and hacking attempts because of serious security vulnerabilities. Findings showed that the program could access all of a user’s private information, even if it was encrypted, and routinely inserted itself into the security certification process, which essentially gave consumers no warning if they visited a spoofed or malicious website.

Today, Lenovo agreed to settle charges from the Federal Trade Commission (FTC) and 32 State Attorney’s General over these compromised security protections, and is prohibited from misrepresenting features of pre-loaded software on its devices.

The company also agreed to get affirmative consent from consumers before pre-installing such software again and will be required to implement a comprehensive software security program that is subject to third-party audits for 20 years.

“Lenovo compromised consumers’ privacy when it preloaded software that could access consumers’ sensitive information without adequate notice or consent to its use,” said Acting FTC Chairman Maureen K. Ohlhausen. “This conduct is even more serious because the software compromised online security protections that consumers rely on.”

Ohlhausen added that the FTC had no authority to levy civil penalties against Lenovo because it is the company’s first violation of the FTC Act. However, she said that the company may still face some financial setback because of the lengthy nature of the security program it must implement.

-----

Update: 9/6/17

In an announcement made earlier today by 32 State Attorneys General, Lenovo will pay a $3.5 million settlement in connection to its Superfish adware. The settlement stlll needs to be approved by state courts, but after clearing that hurdle the money will be split proportionately among participating states.

Tesla has had to deal with a slew of issues in 2017, including a class action over its vehicles’ safety features and the death of a Florida driver connected to its Autopilot system, though the company was ultimately absolved of guilt. Now, to make matters worse, the company may be facing scrutiny for allegedly violating workers’ rights.  

Mercury News reports that federal officials with the National Labor Relations Board have ordered Tesla to respond to factory workers’ allegations that they were harassed by supervisors and security guards over passing out union leaflets. The agency says that it has found merit in the claims of three of these workers and that Tesla has until September 14 to respond. A hearing related to the matter has been scheduled for November.

Over the past year, Tesla factory workers at a factory in Fremont, California have conducted a campaign in conjunction with the United Automobile Workers (UAW) union to improve wages and working conditions. However, the groups say that these efforts have been hampered by Tesla’s confidentiality policy, which restricts workers from talking about safety and workplace issues.

The complaint stems from two incidents where three workers were asked by company security guards to leave factory premises while handing out union pamphlets. Separately, the workers allege that a supervisor told employees at a pre-shift meeting that Tesla would fire employees if they handed out materials that were not company-approved.

Workers' rights

In response to the complaint, a Tesla spokesperson said that the allegations are all part of a publicity stunt that the company intends to meet head-on.

“These allegations, which have been filed by the same contingent of union organizers who have been so outspoken with media, are entirely without merit,” the spokesperson said. “We will obviously be responding as part of the NLRB process.”

However, union representatives say that the actions of supervisors and security staff infringe on workers’ rights. In a UAW release, the organization calls on CEO Elon Musk to revise the company’s confidentiality agreement.

“I knew the company couldn’t legally prevent us from speaking out about issues at the plant, but the confidentiality policy confused a lot of my coworkers and made them fear that they didn’t have certain rights,” said David Gonzalez, a Tesla Production Associate. “This NLRB Complaint will help people realize they have the right to speak up when they see something that isn’t right. I’m proud of my coworkers who filed these charges and stood up for us.”

One of the most persistent housing trends of the last decade has been steadily rising home prices.

Since the housing crash of 2008, home values have rebounded and are now higher than they were at the height of the housing bubble. This has had the obvious effect of making it harder to buy a home, but it has also put increasing financial pressure on renters.

Home prices have risen sharply because there are more buyers than there are homes for sale. Rents have risen because there are more renters who can't buy a home and are competing for rental properties.

While it has placed a hardship on just about everyone, real estate marketplace Zillow reports the burden has fallen hardest on low income wage earners, who are finding themselves priced out of many of the nation's top rental markets. In the nation's largest metro areas, workers in the bottom third of the pay scale can't afford even the cheapest apartments.

Rents rising more than incomes

A Zillow analysis found that from 2011 to 2016, rents rose much more than incomes did, especially at the lower end of the market. In cities where low-wage workers saw bigger increases in pay, they were faced with even larger jumps in rental costs.

In San Francisco, one of the most expensive housing markets, low-wage workers increased their pay by about $485 over a five-year period. Meanwhile, apartment rents rose by about $1,145.

"Any renter can tell you how difficult it is to save up extra cash while spending an increasing portion of their income on rent, but it's much worse for those who make the least," said Zillow Chief Economist Dr. Svenja Gudell. "There are several factors at play here, including wage growth dampened by the recession and increased demand on the rental market. Without a long-term solution to affordable housing, the gap between the haves and have-nots will continue to widen."

The 30% rule

It's generally accepted that people shouldn't spend more than 30% of their income on housing. The reason for that is simple -- a household has lots of other monthly costs and should be able to save a little money each month for emergencies.

But in the largest 25 metro areas, Zillow says the typical rent requires a much larger share of monthly income, leaving little left over for necessities, much less for savings. According to Zillow, 69% of low-wage workers don't have enough saved up to cover three months of living expenses.

Gudell says the study suggests that income inequality is growing and that high housing costs are magnifying its effects.

When an accident or injury occurs, it’s second nature for consumers to go to the emergency room (ER) for treatment. But a new report finds that some of these visits aren’t necessary or advisable.

In a recent study, researchers from California deemed that 3.5% of all U.S. emergency room visits were “avoidable.” They say that the top three discharge diagnoses were alcohol abuse, dental disorders, and mood disorders, such as anxiety and depression. While some of these conditions can be serious, the authors note that the ER is not always necessarily the best place to have them treated.

“Our most striking finding is that a significant number of avoidable visits are for conditions the ED is not equipped to treat. Emergency physicians are trained to treat life- and limb-threatening emergencies, making it inefficient for patients with mental health, substance abuse, or dental disorders to be treated in this setting,” they said.

Avoidable visits

The study analyzed over 424 million visits made to emergency departments across the U.S. between 2005 and 2011 for patients aged 18 to 64. “Avoidable” cases were defined as those that did not require diagnostic or screening services, procedures, or medications, and led to patients being discharged home.

Of these visits, the researchers say that 6.8% were related to alcohol abuse or mood disorders, while 3.9% were connected to disorders with patients’ teeth or jaws. While the majority of these visits did warrant emergency attention, the results indicated that 16.9% of mood disorder visits, 10.4% of alcohol-related visits, and 4.9% of tooth and jaw-related visits were avoidable.

While visiting the ER might seem like the safest move, the researchers note that extraneous visits can impact the overall cost of health insurance for all consumers. They believe that their results may indicate a need to increase public access to mental health services and dental care.

“Our findings serve as a start to addressing gaps in the US healthcare system, rather than penalizing patients for lack of access, and may be a better step to decreasing ‘avoidable’ ED visits,” the researchers concluded.

The full study has been published in the International Journal for Quality in Health Care.

General Motors is recalling 2,905 model year 2018 Chevrolet Equinox & GMC Terrain vehicles and model year 2017-2018 GMC Acadias.

The right front intermediate driveshaft may fracture and separate while the vehicles are being driven.

If the front right intermediate drive shaft assembly separates while the vehicles is being driven, the vehicle will lose propulsion, increasing the risk of a crash.

If the assembly separates while parked on a grade, without the park brake engaged, the vehicle may move unintentionally, increasing the risk of a vehicle roll-away.

What to do

GM will notify owners, and dealers will replace the right front intermediate drive shaft assembly, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact GMC customer service at 1-800-462-8782 or Chevrolet customer service at 1-800-222-1020. GM's number for this recall is 17329.

As Hurricane Harvey suddenly hurdled toward the Texas coast with unexpected force late last week, FEMA issued what for Harvey’s victims would be an unhelpful public service announcement: “No Flood insurance? Now Is the Time to Buy."  

FEMA, or the Federal Emergency Management Agency, issued a press release on August 24 urging people to buy flood insurance. That same day, meteorologists had upgraded Harvey from a tropical depression to a full-blown hurricane, and the news would only get worse. On Friday, when it was too late for Houstonians to evacuate, meteorologists discovered that Harvey was severe enough to qualify as a Category 4 storm.

Flooding, FEMA warned in its August 24 announcement, “is the most common natural disaster in the U.S., affecting every region and state," and people who own their own homes would be wise to buy flood insurance as soon as they can. "Flood insurance can be the difference between recovering and being financially devastated.”

Most don't know ...

But Harvey highlights a problem in Houston and in other major cities: most Americans do not have flood insurance, even though flooding is the most common natural disaster in the nation. The bigger problem, experts warn, is that Americans may not realize that they don't have flood insurance. Many may mistakenly believe that regular homeowner's insurance covers flooding.

Now, people whose homes are already ravaged are effectively shut out from the protections of flood insurance. As FEMA explains, “it takes 30 days after you purchase flood insurance for it to go into effect.” 

“The people who don't have flood insurance have a very serious problem, Robert Hunter, a former Texas insurance commissioner, tells ConsumerAffairs. 

Loan or bankrcuptcy 

An agency called the United States Small Business Administration invites Americans who are cash-strapped to apply for low-interest loans through a disaster relief program. New Orleans residents who lacked flood insurance turned to this program en masse after Hurricane Katrina and they received more than $11 billion in loans. Superstorm Sandy victims in the East Coast received another $2 billion following the 2012 natural disaster. But experts describe the loan program as a slow, bureaucratic process. And those large sums of aid won’t be available without congressional approval. 

Even with loans available, thousands of Hurricane Katrina victims ultimately opted to declare bankruptcy and flee their destroyed houses, finding the mortgage on their unlivable homes unaffordable. “A lot of them [Katrina victims] moved to Houston and they’re probably going through this again,” Hunter says.

New Orleans officials are still auctioning off lots that residents have left empty, and as reporters discovered in 2015, some Katrina victims were still living in unsafe FEMA trailers a full decade since the storm ravaged their houses.

Instability in flood insurance

But people who have flood insurance won't necessarily cash in. After Superstorm Sandy, people complained that their claims were often denied or short-changed.  Their problems revealed widespread dysfunction within the system that makes flood insurance possible, as PBS brought to light in a report last year. 

Home insurance companies used to regard flood insurance as a money-loser. To compel companies to sell flood insurance and consumers to buy it, the federal government created a public-private partnership called the National Flood Insurance Program in the 1960s. But the program is deeply in debt and is set to expire on September 30 without Congressional reauthorization. The looming deadline is making many lawmakers reconsider the system.

Currently, people who opt to purchase flood insurance pay an additional premium to an insurer, who is then supposed to allocate a portion of that money into FEMA’s National Flood Insurance Program. When homeowners need to file a claim, the flood insurance pot is, in theory, supposed to cover it.

But the program is now an estimated $24 billion in debt, putting taxpayers on the hook to cover a growing pit of flood damage. The GOP is reportedly considering cutting federal funding to the program.

Meanwhile, a bipartisan effort lead by Congresswoman Maxine Waters and Congressman Frank Pallone last year asks FEMA to place more of a burden on insurers, many of whom, the lawmakers said, “were underpaying or outright denying legitimate flood insurance claims.”

Good deal for insurers ...

The lawmakers pointed to a Government Accountability Office report from 2009 warning that insurers had made a 16 percent profit from participating in the flood insurance program. And PBS subsequently reported that the insurers’ profit margins were as high as 30 percent.

Allstate, for instance, recovered $77 million in December 2016 through its participation in the National Flood Insurance Program, according to the company’s 2016 annual report.  Allstate is among the 80 companies that provide flood insurance through FEMA. The company's financial report makes flood insurance sound like an extremely attractive arrangement for the insurance industry.

“Under the arrangement, the Federal Government pays all covered claims and certain qualifying claim expenses,” Allstate explains to investors.

Allstate, which has not yet returned an email inquiry, pledged in a recent press release to donate $1.5 million to hurricane relief and recovery. 

FEMA has promised to take various corrective actions in light of the criticisms, though the extent to which that will help homeowners remains to be seen. Last year, Government Accountability Office painted a dim picture of FEMA and its ability to regulate the flow of money coming in. “..FEMA’s NFIP funds may be at risk for fraud, waste, abuse, or mismanagement,” the GAO said.