Current Events in January 2018

Some online banking customers at Wells Fargo report the bank made duplicate deductions for payments made online. It apparently was limited to payments designated for automatic bill payment.

NJ.com first reported the problem this week, saying customers were complaining the error had caused their accounts to be overdrawn. Danny, a ConsumerAffairs reader from Williamson, Ga., told us that his Wells Fargo account went in the red by $60,000.

"They made duplicate payments to vendors on all accounts," Danny wrote in a ConsumerAffairs post. "This caused my business and personal accounts to go below zero!"

Error is now fixed

In a statement to the media, Wells Fargo acknowledged the mistake and, in a later Facebook posting, said it has now been corrected.

"There is no action required for impacted customers at this time," the bank said. "Any fees or charges that may have been incurred as a result of this error will be taken care of. We apologize for any inconvenience."

Wells Fargo is taking a drubbing on social media from angry customers. The bank is still recovering from its 2016 scandal in which Wells Fargo employees were found to have created millions of bank and credit card accounts without customers' knowledge.

The Consumer Financial Protection Bureau (CFPB), the agency Congress established to protect consumers from abusive lending practices, has formally announced it will reconsider a key consumer protection.

In a brief statement, CFPB said it intends to engage in a rulemaking process so that it may reconsider the Payday Rule, which became effective this week. Among other things, it requires payday and auto title lenders to determine that customers are financially able to repay the loan before it is approved.

Critics of the payday loan industry had pushed for the rule, arguing that many consumers are approved for the small loans but are unable to repay them two weeks later, requiring them to take out a new loan with a new set of fees.

Reversing course?

Groups like the Consumer Federation of America (CFA) claim the CFPB is reversing course in its mission to protect consumers.

“While not perfect, the CFPB’s final payday lending rule was a strong step toward helping struggling families avoid debt traps," said Christopher Peterson, a law professor and senior fellow at CFA. "The CFPB’s regulation would have required that payday lenders consider whether loan applicants can afford their loan before extending credit that can spiral out of control.”

Rebecca Borné, Senior Policy Counsel at the Center for Responsible Lending (CRL) blasted the move, saying payday loans with triple digit interest rates need stronger regulation.

"For more than five years, the Consumer Financial Protection Bureau studied the issue, welcomed public input, and crafted a rule to help stop the payday loan debt trap," Borné said in a statement to ConsumerAffairs.

She also said the agency's disputed director, Mick Mulvaney, is on record as being in favor of eliminating the rule. Sen. Sherrod Brown (D-Ohio) also views Mulvaney as a key player in the agency's decision to reconsider the Payday Rule.

“Rather than focus on keeping the government open, the Trump administration’s top budget expert is busy unraveling important consumer protections for payday borrowers," Brown said in a statement. "If he’s the head of both the CFPB and OMB, as this administration claims, he’s failing at both of his jobs.”

Opposition to the Payday Rule

Meanwhile, the Competitive Enterprise Institute, a libertarian think tank, supports the CFPB decision to reconsider the regulation. It issued a report this week urging Congress to stop the Payday Rule from going into effect, arguing that it would hurt low income consumers who use payday lenders to meet emergency expenses.

“Millions of Americans will have few other options to cover urgent expenses like rent, a car payment, or a medical emergency if regulators succeed in shutting off access to small dollar loans,” said Daniel Press, CEI policy analyst and author of the report.

CFPB finalized the Payday rule last October, but in announcing its plan to reconsider, the agency notes that most enforceable provisions are not scheduled to take place until August 2019.

At the Automotive News World Congress in Detroit on Tuesday, Nissan’s CEO Hiroto Saikawa announced that all new Infiniti models launched after 2021 will be electric.

“Infiniti will have a specific focus on electrification,” Saikawa said, adding that the executives are “trying to position Infiniti as the premier electrified brand.”

As part of the company’s five-year business plan, all new Infiniti models launched after 2021 -- with the exception of a handful of SUVs -- “will either be all-electric vehicles or will rely on the parent company’s new range-extending electric motor-powered technology called ePower,” Saikawa said.

Battery-based technology

The Japanese carmaker says it expects a mix of two types of electric vehicles -- pure electric vehicles and ePower vehicles, which use an electric battery and a small gas engine -- to “comprise more than half of Infiniti global sales” by 2025.

In its announcement, the automaker also confirmed that it will introduce their first all-electric vehicle in 2021 and that “customers can expect beautifully designed vehicles like the Q Inspiration concept shown in Detroit.”

Growing interest

Past research suggests consumers’ attitude towards electric vehicles is steadily growing more positive each year.

Consumers’ interest in purchasing an electric vehicle rose from 31 percent in 2015 to 36 percent in 2016, according to a survey commissioned by the Consumer Federation of America. Young adults (18-34) were most interested, with a full 50 percent saying they would consider buying an electric vehicle.

Currently, battery-based vehicles generate a small percentage of total new vehicle sales in the U.S. However, improvements in the technology, falling battery prices, and automakers’ response to government mandates are among the factors that could lead to a major increase in the number of electrified vehicles.

Electrified vehicles could account for 50 percent of global volume by 2035, according to the Boston Consulting Group.

Nissan, Infiniti’s parent company, has been an early leader in the push to phase out gas-powered vehicles. Last year, the automaker introduced a revamped version of its Leaf electric vehicle that costs nearly $29,000 and can travel about 150 miles on a single charge.

Ford Motor also announced this week that it will launch 40 electrified models, including 16 pure battery-electric vehicles, over the next five years. General Motors says it will have 20 all-electric models by 2023. Volkswagen says it will have 40 by 2025.

Why do some consumers struggle under the weight of credit card debt while others are able to pay it down to manageable levels?

A new survey from CompareCards suggests the adoption of certain money habits may hold the key. In particular, it found three habits have the best chance of turning around a debt burden.

Thomas Donaldson, Senior Credit Specialist at CompareCards, says devising a plan to pay off the debt -- whether setting aside an extra monthly amount to contribute to paying it off, or using a more complex budgetary plan – made the biggest difference among those who were successful and unsuccessful in meeting their goal to pay down debt.

"Seventy-five percent of people who created a specific plan to pay off their debt last year succeeded, while just 51% of those who didn’t succeeded," Donaldson told ConsumerAffairs. "A plan holds you accountable – to yourself, and ideally, to those around you."

Controlling spending

The survey also found that consumers who were able to exercise budget discipline and reduce their monthly spending had more success in getting out of debt. Many people who can't stop spending actually run up more debt. Spending less also provides a little extra money for credit card payments.

Finally, consumers who successfully reduced their debt also created a savings account -- specifically, an emergency fund. Having extra cash on hand for emergency expenses means not having to cover an unexpected expense with credit.

Credit counselors and financial advisors are often helpful in reducing debt, but Donaldson says the consumers in the survey mostly figured it out on their own.

"Just 10 percent of people who were successful paying off their debt cited talking about their plan to pay down debt with someone," he said. "The habits of the successful involve taking initiative – reducing spending, finding a way to earn extra income, and keeping track of progress."

Repeat failure

Those who succeeded in paying down debt tended to improve their financial condition last year. But Donaldson says more than one third of those who said they were unsuccessful at paying off debt last year said it was a repeat failure for them.

"Despite that experience, just 55 percent of them created a specific plan to help them pay down that debt last year," he said.

Consumers in the survey who reported progress in paying off debt offered a number of reasons for their success. One said it required changing his mindset and treating any spending that required credit as "a giant stop sign."

Another said the process can be lengthy, so it's important for people to stay motivated to reach their goal.

With so many smart devices available for home use, it's probably not surprising that some of them could cause conflicts, resulting in internet outages.

That's apparently the root cause of issues being reported by some consumers who have a Google Home Max smart speaker, Chromecast, and a TP-Link Archer C7 router. They've reported that when all the devices are activated, they sometimes lose internet connectivity.

"My Google Home Max arrived today. Initial setup was fine, everything was working (Assistant, streaming services), but then my Wi-Fi network went down, which required a hard restart of modem and router to fix," a poster named Allistair reported on a Google forum last month.

"It took it going down a few more times for me to realize the Max was causing it; whenever I tried to stream radio or Spotify, the Wi-Fi died and had to be restarted."

Alistair was also using a TP-Link Archer C7 router. The company now says it has gotten to the bottom of the issue.

Key origin of the issue

"Following initial research and investigation, our engineering team is confident that they've determined one of the key origins of the issue," TP-Link said in an online support bulletin. "From what we have gathered so far, the issue appears to be related to some of the recent versions of Android OS and Google Apps."

According to the support team, devices running Android OS and Google Apps use the "Cast" feature to send regular signals to the router to maintain a live connection. Under normal operations these devices are supposed to send the signals about every 20 seconds.

However, TP-Link engineers say the devices will sometimes send out a massive number of signals in a much shorter time span. This typically happens when the device comes out of its sleep mode. The longer the device is asleep, the more signals it will try to send.

"This issue may eventually cause some of the router’s primary features to shut down – including wireless connectivity," the company said.

What to do

To correct the issue, consumers will need to reboot their devices to release the memory. The company also advises consumers to temporarily disable the "Cast" feature on Android devices until a software update is released.

Media reports indicate consumers are experiencing similar problems with other brand name routers, including those from ASUS, Linksys, Netgear, and Synology.

Meanwhile, 9To5Google.com reports a Google engineering team is at work to "quickly share a solution."

Bitcoin, along with several other cryptocurrencies, plunged in value Tuesday, continuing a trend of volatility that began in late 2017.

Bitcoin's value dropped by more than 15 percent, to below $12,000 -- in part over concerns that South Korea and China could still take steps to restrict its use. But it isn't the only digital currency to take a hit.

Ethereum, which has been on a tear in the last two weeks, dropped more than 20 percent to near the $1,000 mark. Ripple is down even more, having lost half its value since the beginning of the year.

Aside from feared government crackdowns, it isn't clear what is pushing cryptocurrency values lower, though market analysts say the huge gains these assets have achieved in such a short period of time are inherently vulnerable to dramatic price swings.

2017's remarkable gain

During 2017, Bitcoin showed remarkable gains and eventually hit a record high of more than $19,000 in mid-December. That figure represented a 2,500 percent increase from January 5 through the 12, when its value ranged from $750 to $920.

However, since hitting its high point last month, bitcoin has gradually lost value. Experts point out that trading of the cryptocurrency has always been volatile. For example, the price of a single Bitcoin jumped from $150 to $1,000 in the space of two months during 2013.

Market manipulation?

Now, an academic study, appearing in the Journal of Monetary Economics, suggests that one or two traders, taking advantage of thin trading volume, could have been responsible for that price surge.

While cryptocurrencies are praised for their transparency and decentralization, researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman say Bitcoin has been subject to security breaches and suspicious trading.

"This paper identifies and analyzes the impact of suspicious trading activity on the Mt. Gox Bitcoin currency exchange, in which approximately 600,000 bitcoins (BTC) valued at $188 million were fraudulently acquired," the researchers write.

On days when there were suspicious trades, the researchers say Bitcoin's value rose an average of four percent. On days where there was no suspicious activity, they say Bitcoin's value declined slightly.

China may block trades

Nearly five years later, Bitcoin is a much more established asset, with regulated markets offering Bitcoin futures contracts and emerging avenues for average investors to put money in cryptocurrencies.

Bitcoin's most recent losses are largely blamed on reports that the Chinese government could move to block access to cryptocurrency trading platforms, removing a huge segment of potential investors.

So far, the Chinese government has not formally stated its intentions regarding Bitcoin and other digital currencies.

Buying a car or truck that holds its value will pay off when it comes time to trade it in.

Among the crop of 2018 models, Kelley Blue Book (KBB) finds Toyota and Porsche take top honors with the highest average projected resale value among their full model lineups.

Eric Ibara, director of residual values for Kelley Blue Book, says this is the second straight year Porsche has won out in luxury competition and Toyota has claimed the top spot in the brand category.

"The key to high residual values is to produce a vehicle that has strong consumer appeal and ensure that the vehicle is not over-produced," he told ConsumerAffairs. "These are traits that Toyota does exceedingly well."

Here's the list of vehicles with the highest resale value, by category:

• COMPACT CAR: Subaru Impreza
• COMPACT SUV/CROSSOVER: Jeep Wrangler
• ELECTRIC VEHICLE: Chevrolet Bolt EV
• ENTRY-LEVEL LUXURY CAR: Lexus RC
• FULL-SIZE CAR: Toyota Avalon
• FULL-SIZE PICKUP TRUCK: Chevrolet Silverado HD
• FULL-SIZE SUV/CROSSOVER: Chevrolet Tahoe
• HIGH-END LUXURY CAR: Porsche Panamera
• HIGH PERFORMANCE CAR: Porsche 911
• HYBRID/ALTERNATIVE ENERGY CAR: Toyota Avalon Hybrid
• LUXURY CAR: Lexus GS
• LUXURY COMPACT SUV/CROSSOVER: Porsche Macan
• LUXURY FULL-SIZE SUV/CROSSOVER: Lexus LX
• LUXURY MID-SIZE SUV/CROSSOVER: Lexus RX
• MID-SIZE CAR: Honda Accord
• MID-SIZE PICKUP TRUCK: Toyota Tacoma
• MID-SIZE SUV/CROSSOVER: Jeep Wrangler Unlimited
• MINIVAN: Honda Odyssey
• SPORTS CAR: Porsche 718 Cayman
• SPORTY COMPACT CAR: Subaru WRX
• SUBCOMPACT CAR: Honda Fit
• SUBCOMPACT SUV/CROSSOVER: Honda HR-V

Top categories for resale value

Ibara says some categories of vehicles hold their values better than others. In fact, he says one category stands out this year.

"Mid-size trucks, which carry the highest segment average among all vehicle segments, are projected to hold an average of over 50 percent of their value after five years," Ibara said. "In contrast, a number of car segments, including subcompact cars, electric vehicles, luxury cars, and high-end luxury cars, have segment average residual values of less than half of what mid-size trucks retain."

This is not only important when you purchase a car, but also when you lease. Lease payments are based on the difference between the vehicle's purchase price and its residual value at the end of the lease.

The more a vehicle holds its value, the smaller that difference tends to be, and in most cases, the lease will carry a lower monthly payment.

At the same time, Ibara points out that popularity with consumers has a lot to do with a vehicle's high resale value. So in many cases, consumers may pay a premium for these vehicles when they negotiate a purchase or lease.

Public health officials say a passenger arriving on an international flight to Chicago’s O’Hare Airport last Wednesday, January 10 may have exposed some people in the airport to measles.  

A passenger with a confirmed case of measles landed at the international terminal (Terminal 5) on Wednesday morning and departed on a domestic flight from Terminal 1, according to a statement from the Illinois Department of Public Health.

“People who were at O’Hare between 6:30 a.m. and 1 p.m. could have been exposed” to the passenger’s highly contagious disease, the statement said.

Vaccinated people not at high risk

The Department of Health confirmed that an unidentified passenger that flew into the airport from another country tested positive for the disease. The traveler was in multiple terminals of the airport before boarding a second flight from Chicago to Little Rock, AR, WTVG reports.

Health officials stress that there is no current risk of a public outbreak. Individuals most at risk are those who were also in the airport during that time and have not been vaccinated.

“Most people have been vaccinated routinely in childhood and are not at high risk...of most concern are people who have not been vaccinated,’’ the statement said.

Symptoms

Measles is a highly contagious disease caused by a virus, according to health officials. The virus is easily spread when an infected person coughs or sneezes. Measles can cause serious complications such as pneumonia and encephalitis (swelling of the brain).

Symptoms include a rash that starts on the face and neck, a high fever, runny nose, cough, and red, watery eyes. The rash generally appears about 14 days after exposure, but symptoms could come on as late as January 31 if you were exposed to the passenger’s virus on January 10.

People who think they may have been exposed are advised to contact their health care provider right away. Be sure to call first and arrange for an exam to be done in a place where others will not be exposed so you don’t infect anyone else.

The 2017-2018 flu season is especially bad, which is why experts say it’s important to head straight to the doctor if you think you’re suffering from the illness.

There are effective treatments that can limit the flu’s severity and prevent it from being passed on to others, according to Dr. Paul Skolnik, Chairman of the Department of Internal Medicine, Carilion Clinic and Virginia Tech Carilion School of Medicine and an infectious diseases specialist.  

In an interview with ConsumerAffairs, Skolnik said that it’s important for consumers to be tested and evaluated for the flu very early after flu-like symptoms arise so that antiviral drugs can be administered to the patient and their family.

“The same drugs used to treat influenza can also be used to prevent influenza in those who have been significantly exposed to family members or others diagnosed with influenza,” he explained.

Early evaluation is critical

Early testing and evaluation by a physician is especially important this year, since complications from the illness have already resulted in hospitalization and even death.

It’s also not too late in the season to consider getting vaccinated, says Skolnik. This year’s vaccine was only partially effective, since the main strain of influenza circulating now, H3N2, is not represented in this year’s vaccine.

However, getting a flu shot will protect you from the 30% of influenza that is circulating now since it was included in this year’s vaccine, he said.

“We recommend that everyone get an influenza vaccination, including at the current time, since it does provide important protection for H1N1 influenza strains that are also causing illness now which can be severe or life-threatening.”

Keeping others healthy

Symptoms of the flu can include fever, chills, muscle aches, and fatigue. These unpleasant symptoms can easily spread to others by way of proximity or physical contact. If you are not hospitalized, Skolnik recommends resting at home and limiting exposure to others.

“Take any antiviral and other medications that have been prescribed for you, keep well hydrated, and report any worsening of symptoms immediately to your doctor since most complications and deaths occur from secondary bacterial infections superimposed on the viral influenza infection,” he said.

Click here for tips on how to stay healthy when a family member has the flu.

If you receive an email from Netflix informing you that your credit card no longer works, be very careful how you respond.

Mailguard, an Australian cyber-security firm, is warning that fraudsters are using "brandjacking" emails in hopes of capturing consumers' credit card information.

Brandjacking is an increasingly common tactic used in phishing scams. The email is designed to look like it's coming from a well-known institution. It might be a major bank or a utility company.

In this case, the bogus email appears to come from Netflix -- a video streaming service with millions of subscribers worldwide -- and at first glance the email appears to be the real thing.

Payment declined

In bold letters at the top, the email informs the recipient that payment for Netflix services has been declined and that credit card information must be updated.

There is a button to click to update credit card information. But the link takes you to the scammer's website where you are asked to enter credit card information, which will then be sold on the Dark Web.

This scam is dangerous because so many people who are receiving this email are Netflix customers. Their first response may be to click the button and provide the requested information.

But there is a safer course of action. Should you receive one of these emails, type the Netflix URL into your browser and log into your account. After you’re signed in, click on your personal icon in the upper right corner of the page, then click on "account." Then click on "update payment info."

If there is a legitimate problem with your credit card, you'll see a message there informing you of that fact. If you're still not sure, you can re-enter your credit card information or enter the information for a different credit card.

Tell-tale clues

A closer look at the email, however, might save you the trouble. If the email mentions that your American Express card was declined, but Netflix uses your Visa, then the email is an obvious fake.

Also note the spelling of certain words. Emails sent to customers in the U.S. should refer to the "Help Center," not the "Help Centre."

Phishing scams can take different forms. Besides directing a potential victim to a phony website, they can also contain attachments that can unleash malware, including ransomware.

The Federal Trade Commission (FTC) offers these tips to stay safe.

Pet obesity is a growing problem, currently affecting an estimated 58 percent of cats and 54 percent of dogs in the U.S. Experts say being overweight can have negative consequences on a pet’s overall health and quality of life.

To that end, the U.S. Food and Drug Administration (FDA) is urging pet owners to take steps to identify and combat obesity in their own pets.

Excess weight can seriously harm your pet’s health and even lead to a shorter life span, said Carmela Stamper, a veterinarian in the Center for Veterinary Medicine (CVM) at the FDA.

“The diseases we see in our overweight pets are strikingly similar to those seen in overweight people,” Stamper said, naming as examples diabetes mellitus (also known as Type 2 Diabetes), osteoarthritis, high blood pressure, heart and respiratory disease, and kidney disease.

“We want our pets to live happy lives, but we also want them to live long ones,” she said.

Ideal weight is relative

Pets are considered “obese” if their weight exceeds their ideal body weight by 20 percent or more. Your pet’s ideal weight will vary depending on its breed, age, body type, and metabolism, according to the FDA.

Labs and beagles, for example, tend to be more prone to obesity than other breeds. Long, low dogs -- such as dachshunds and basset hounds -- are also more prone to packing on extra pounds.

“Neutering can slow down a dog or cat’s metabolism, and so can aging, especially if the animal gets less exercise than when younger,” the agency said.

Your veterinarian can tell you what your pet’s ideal weight is, as well as give you an idea of how much food your pet should be eating on a day-to-day basis.

Signs to look for

A few basic signs to look for to help you determine whether or not your pet is at a healthy weight include:

• A non-defined waist. Look at your pet from above to see if they have a definitive waist. “If not, and her back is broad and flat like a footstool, she is likely overweight,” Stamper said.

• Sagging stomach. Animals at a healthy weight should have a tapered or “tucked” abdomen.

• Can’t feel their ribs. Check to see if you can feel your pet’s ribs by running your hands along their sides. You shouldn’t have to push too hard to feel them, nor should your pet’s ribs be too prominent.

Small changes

If your pet does have a few pounds to shed, Dr. Kirk Breuninger, Veterinary Research Associate, Banfield Pet Hospital, suggests taking small steps to help them get down to their ideal weight.  

“Just as with people, weight management is unique to the individual pet,” Breuninger told ConsumerAffairs. Your vet can help you determine a healthy weight for your pet, as well as help you make a game plan for how to get there.  

Small lifestyle changes can have big long-term health benefits for your pet, he explained. “Instead of resolving to run with your dog three miles a day, start with walking a few extra blocks each day.”

Additionally, he recommends cutting down on “people food,” which can quickly add up to extra pounds on your pet.

While helping your pet achieve and maintain their ideal weight is in their best interest, you don’t have to cut out treats altogether. For most animals, an occasional treat is fine. However, be sure to limit treats to no more than 10 percent of your pet’s daily calories.

The key is take an “everything in moderation” approach and talk to your vet if you’re concerned about your pet’s weight, Stamper said.

Rising home prices and changes to the tax law have combined to make renting a home a more attractive option, especially in some localities.

A new report by Attom Data Solutions shows that renting a three bedroom home makes more economic sense than purchasing a median-priced home in 46 percent of 447 U.S. metro areas.

The report is based on newly released fair market rent data for 2018 from the U.S. Department of Housing and Urban Development (HUD), wage information from the Bureau of Labor Statistics (BLS), and public record sales deed data from ATTOM Data Solutions.

It shows that the trend since the housing crash of 2008 has shifted. After the crash, interest rates and home prices were at rock bottom. At the same time, fewer people could qualify for mortgages and had to compete for limited rental housing, sending rents higher.

Back then, buying a home was a pretty good deal since mortgage payments were often less than comparable to rents. Now, home prices in many markets are above their housing bubble peaks while rents have stabilized.

'Lesser of two evils'

“Renting has clearly become the lesser of two housing affordability evils in many major population centers, with renting [being] more affordable than buying in 76 percent of counties that have a population of one million or more,” said Daren Blomquist, vice president at ATTOM Data Solutions.

In fact, Blomquist says 64 percent of the U.S. population now lives in an area where it is more affordable to rent than buy.

For example, it's cheaper to rent in Los Angeles, Chicago, Houston, Phoenix, San Diego, Miami, New York, Seattle, Las Vegas, San Jose, San Francisco, and Boston. But that might not be surprising since those are some of the most expensive housing markets in the nation.

But renting is also the better option in some markets where home prices aren't that expensive. The report found "very affordable" rental markets in the metros of Huntsville, Ala., Peoria, Ill., Dayton, Ohio, Kingsport-Bristol, Tenn., and Cleveland, Ohio.

Attom Data Solutions said one reason for the turnabout is home prices continue to rise faster than rents in 59 percent of U.S, metros. Rents rose faster than home prices in just 41 percent of markets.

Tax law effect

The tax reform law that took effect this year may also skew the equation in favor of renting in the months ahead. It not only caps some popular tax deductions for homeownership, it nearly doubles the Standard Deduction, making it less advantageous for homeowners to write off those homeowner expenses.

Consumers' incomes also make a difference in rental affordability. Right now, rents are rising faster than incomes in some of the nation's most expensive housing markets, including Los Angeles and Chicago.

However, the report shows incomes are rising faster than rents in 181 of 447 metros, including Seattle, Las Vegas, San Antonio, Boston, and Long Island.

General Motors (GM) has filed documents with the U.S. Transportation Department for its fourth-generation self-driving Cruise AV, the first autonomous vehicle designed with no manual controls for a driver.

GM says the fact that there will be no steering wheel, brakes, or accelerator will make the Cruise AV safer and reduce accidents.

“Each year, close to 1.25 million people die in car crashes around the world, 40,000 in the United States alone,” GM said in its Safety Report. “More than two million people are injured. Human error is a major contributing factor in 94 percent of these crashes.”

GM is seeking Transportation Department approval for the fully-autonomous vehicle to enter its ride-sharing fleet sometime next year.

'Hurdles to clear'

“There are a number of hurdles to clear before self-driving cars transition from laboratory experiments to real-world functionality,” Karl Brauer, executive publisher for Autotrader and Kelley Blue Book (KBB) told ConsumerAffairs. “Two of those hurdles, mass production and government regulation, appear to be within General Motors’ grasp.”

Brauer says it's been common knowledge for months that GM has the capacity to begin volume production. The automaker is now trying to get the regulatory latitude to build and operate fully autonomous cars for consumer use.

“If government approval is granted, and GM begins providing autonomous taxi service to end users in multiple markets, we’ll officially be living in a world of self-driving cars,” Brauer said.

While there continues to be debate over the utility of self-driving cars, people with disabilities could perhaps benefit the most. Consumers with vision impairment could suddenly have more transportation options.

The Cruise AV, similar in style to the Chevy Bolt EV, will have a function to automatically open and close doors for passengers who can't do so themselves. It will also have functions to help vision and hearing impaired customers operate its systems.

Seeks exemptions

GM said it is also asking federal regulators to allow more than a dozen changes to existing auto safety rules. Previously, the subject of allowing exemptions to current safety rules has proved to be controversial with some consumer groups.

In October, leaders of several auto safety groups joined forces to oppose key provisions of the AV Start Act, legislation Congress is considering to speed development of autonomous vehicles.

Joan Claybrook, a former administrator of the National Highway Traffic Safety Administration (NHTSA), said the legislation ignores recent history, including mistakes made by the auto industry.

The groups said automakers developing self-driving cars need more oversight, not less.