Current Events in September 2019

Picking a credit card is done too often in an off-hand manner without a whole lot of thought. Maybe a merchant offers you a discount at checkout if you apply for their credit card.

But if you are seeking your first credit card, it pays to think first about your needs. If you rarely travel, then choosing an airline rewards card with an annual fee is definitely not a good fit.

If you have little credit history, there will be many cards that simply decline your application. In that case, how do you find a lender who will not only take you on as a customer but who also offers a product that fits your needs? For answers, we turned to some credit card experts.

CreditCards.com likes the Discover It Student Cash Back card. As the name implies, it is for students who, in many cases, have never had a credit card in their name. It offers 5 percent cash back on rotating categories that change quarterly. All other categories earn 1 percent cash back on every purchase.

Unusual rewards for a student card

The card has no annual fee and wins points for its cashback rewards, which CreditCards.com says is unusual for a student card.

WalletHub has several suggestions for consumers new to credit, including the Capital One QuicksilverOne Cash Rewards card. The card makes the list because it pays 1.5 percent cash back on all purchases.

The only downside, however, is the $39 annual fee. For some, that might not make sense. But the experts at WalletHub point out that the cash rewards will pay for the annual fee if you think you’ll spend $2,600 a year on the card. The interest rate is also on the high side for consumers with spotty credit, so it’s advisable to pay the balance in full each month if you get the card.

"While there has been a lot written about credit cards that offer the best perks and bonuses, there's not as much information available for people who just want a good starter card," said Eleri Miller, Marketing Coordinator for RAVE Reviews. 

RAVE has published a list of what it sees are good starter credit cards that include the two mentioned above. It also suggests Citi Rewards Student Card pays double points at supermarkets and gas stations on the first $6,000 spent per year. It provides one point on all other purchases after that.

There is no annual fee, and it offers a 0 percent introductory interest rate for the first seven months after opening an account. But beware -- if the balance isn’t paid off at the end of seven months, the interest rate will go from 16.49 percent to 26.49 percent, depending on your creditworthiness.

For consumers with ample credit experience, check out ConsumerAffairs’ best credit card section, where you can find recommendations for cards that best suit specific needs.

A new study conducted by researchers from the University of Washington surveyed consumers on their attitudes regarding self-driving cars. 

Though rideshare companies continue to test these vehicles, the survey revealed that consumers aren’t yet ready to let their cars do the driving, with many being more comfortable having control in the driver’s seat. 

“We believe that our respondents are telling us that if they were riding in an automated vehicle today, they would be sufficiently stressed out by the experience that it would be worse than driving themselves,” said researcher Don MacKenzie. “This is a reminder that automated vehicles will need to offer benefits to consumers before people will adopt them.” 

Understanding consumers’ mindsets

The researchers surveyed over 500 people across the U.S. to gauge how they felt about autonomous vehicles. 

The surveys were simple: participants had to choose whether they’d want to be behind the wheel or utilize a rideshare app for a 15-mile commute. However, half of the participants were told that the rideshare car would be an autonomous vehicle. 

After collecting the responses, the researchers turned participants’ answers into monetary values. According to MacKenzie, “the idea here is that ‘time is money,’ so the overall cost of driving includes both the direct financial costs and the monetary equivalent of time spent traveling.” 

Though rideshares typically won out over participants driving themselves, when the participants knew that an autonomous vehicle would be picking them up, they weren’t as thrilled with the idea. 

Based on the results, the researchers determined that participants valued rideshare rides at around $21 an hour. However, when participants were reminded that they can multitask in the rideshare car, that price dropped to $13 an hour, which showed that travelers thought the mode of transportation was more cost-effective. But despite that drop, when the participants were told about the driverless cars, that price shot up to $28 an hour; values for participants who drove their own cars came in at $25 an hour. 

The researchers hypothesize that these findings come from the variables surrounding autonomous vehicles, as many consumers are unsure of how these vehicles will operate. 

“The average person in our sample would find riding in a driverless car to be more burdensome than driving themselves,” said MacKenzie. “This highlights the risk of making forecasts based on how people say they would respond to driverless cars today.” 

In an effort to better understand the long-term effects of childhood trauma, researchers from Brigham Young University conducted a study that explored the benefits of having positive childhood experiences. 

The study revealed that having positive people and experiences during childhood can benefit consumers into later adulthood. This was especially true for those who experienced traumatic events early in life, such as divorce or death. 

“If your child has experienced trauma and you’re worried about the long-term impact it could have on them, these findings show that the positive experiences in childhood lead to better adult physical and mental health, no matter what they have faced,” said researcher Ali Crandall. 

Prioritizing positive experiences

The study explored participants’ adverse childhood experiences (ACEs) and counter-adverse childhood experiences (counter-ACEs). 

While the former can include anything from mental illness to a family member in jail, the latter includes things like opportunities to have fun, a predictable home routine, liking school, and having good friends and neighbors, among others. 

Evaluating participants ACEs and counter-ACEs was a crucial part of this study, but the researchers also had participants self-report on their mental and physical health by responding to questionnaires about their stress, depression, diet, exercise, and sleep habits. 

The researchers learned that positive experiences during childhood are incredibly meaningful as the participants grew into adulthood. 

On average, participants experienced roughly three ACEs during childhood, but having a higher number of counter-ACEs alleviated any potential negative outcomes in the adult years, as the more positive experiences participants had during childhood led to better mental and physical health over time. 

Similarly, the researchers learned that having little or no positive moments during childhood -- regardless of how many traumatic moments -- was a detriment to participants’ mental and physical well-being. 

Because positive moments are so important, the researchers found that children don’t need caring, encouraging adults to only be in their immediate family. Having happy memories or stable experiences that involve teachers, neighbors, or extended relatives can be just as beneficial for young children. 

“As bad as ACEs may be, the absence of these positive childhood experiences and relationships may actually be more detrimental to lifelong health so we need more focus on increasing the positive,” said Crandall. 

Purdue Pharma, one of the biggest targets in government litigation over the opioid addiction epidemic, has filed for bankruptcy and attempted to turn itself into a sort of charity.

The drug company, which makes and distributes the opioid painkiller OxyContin, has filed for bankruptcy protection as it faces a large number of lawsuits, many from state governments. The company says its plan would produce $10 billion to $12 billion to reimburse municipalities for the money they’ve spent to deal with the opioid crisis.

The unusual bankruptcy plan would allow Purdue Pharma to transform into a “public benefit trust.” It would continue to sell opioid drugs but the profits would go to the plaintiffs who have sued the company.

The Sackler family, the major stockholders in the company, would forfeit ownership of Purdue and contribute at least $3 billion toward the settlement out of their private funds.

Not everyone is on board

While some states that have sued the drug company have expressed satisfaction with the settlement resulting from bankruptcy, others have not. North Carolina Attorney General Josh Stein says he is happy to see the Sackler family exit the pharmaceutical business but says the bankruptcy settlement lets them off too easy.

“The Sackler family sucked billions of dollars out of Purdue and is now throwing the carcass of this drug company into bankruptcy,” Stein said. “This is a long-standing getaway plan. I will do everything in my power to hold the Sacklers legally accountable for their role in creating and fueling the opioid epidemic.”

Stein said he will ask the bankruptcy court to reject the proposal. But Tennessee Attorney General Herbert Slatery is in favor of the bankruptcy settlement, saying it is consistent with the settlement framework agreed upon by a bipartisan group of 29 attorneys general, over 2,000 cities and counties, Purdue Pharma, and Purdue’s owners.

‘Purdue will no longer exist’

“Pursuant to that framework, and with the approval of the bankruptcy court, this bankruptcy means Purdue will no longer exist,” Slatery said in a statement. “It will never again make, sell, or market another opioid product in the United States or anywhere in the world.”

Under the agreement, Slatery said the Sackler family will give up not only Purdue but also all the family’s international pharmaceutical holdings. He said the proceeds from the settlement will provide billions of dollars to the states and other plaintiffs to help “address the devastation of the opioid epidemic.”

Purdue said it is not “seeking refuge” by filing for bankruptcy protection. It said the move is the best way to deliver the most relief to the public.

FedEx announced on Monday that it will be raising shipping rates in 2020. Starting in January, the company will implement the following pricing changes: 

• FedEx Express shipping rates will increase an average of 4.9 percent for U.S., U.S. export, and U.S. import services.

• FedEx Ground and FedEx Home Delivery will increase rates an average of 4.9 percent.

• FedEx freight shipping rates will increase by an average of 5.9 percent for shipments within the U.S. and between the U.S. and Canada. 

• FedEx International Premium rates will increase.

• Minimum rates for FedEx Express services will increase.

• FedEx Ground Multiweight rates will increase.

• FedEx SmartPost rates, which are used for low-weight residential shipments, will also increase.

FedEx also said Monday that it won’t tack on holiday surcharges for residential deliveries for the third year in a row, with the exception of shipments that are “oversized, unauthorized or that require additional handling.” 

UPS has also announced that it won’t apply holiday surcharges this season. UPS chairman and CEO David Abney said the lack of surcharges is intended to enable UPS customers to “plan now for a great holiday shopping season and to satisfy their customers by utilizing UPS’s industry-leading on-time delivery service.” 

Chrysler (FCA US LLC) is recalling 3,427 model year 2020 Jeep Gladiators.

The rear driveshafts may have been incorrectly assembled without grease in the monoblock joint.

A joint without grease may overheat and seize, possibly causing the driveshaft to fracture, resulting in a sudden loss of drive power.

If the driveshaft completely separates from the vehicle it may become a road hazard. Either of these situations can increase the risk of a crash.

What to do

Chrysler will notify owners, and dealers will replace the driveshaft free of charge.

The recall is expected to begin October 18, 2019.

Owners may contact Chrysler customer service at (800) 853-1403. Chrysler's number for this recall is V95.

General Motors is recalling 91,399 model year 2019 Chevrolet Express and GMC Savana vehicles.

The seatbelt-unfastened warning light will not illuminate or approximately five seconds after the ignition is moved to the "on" or "start" position.

Without the warning reminder, the driver may forget to fasten the seatbelt, increasing the risk of injury in the event of a crash.

What to do

GM will notify owners, and dealers will reprogram the instrument panel cluster free of charge.

The manufacturer has not yet provided a notification schedule.

Owners may contact Chevrolet customer service at (800) 630-2438 or GMC customer service at (800) 462-8782. GM's number for this recall is N192264500.

WAYB is recalling 4,558 WAYB Pico child restraints manufactured between March 1, 2019, and May 12, 2019.

The headrest's aluminum tubular frame can break allowing the headrest to detach, increasing the risk of injury during a crash.

What to do

The manufacturer is still developing a plan to replace the headrests on the recalled seats.

The recall is expected to begin September 30, 2019.

Owners may contact WAYB customer service at (888) 924-9292.

MoviePass announced on Friday that it would be shutting down its service on Saturday, September 14. At this time, it’s unclear whether the movie subscription service plans to resume service at any point in the future. 

In a press release, MoviePass parent company Helios and Matheson Analytics said the company’s "efforts to recapitalize MoviePass have not been successful to date." 

"The Company is unable to predict if or when the MoviePass service will continue.” Helios and Matheson Analytics wrote. “The Company is continuing its efforts to seek financing to fund its operations."

In July, MoviePass informed its subscribers that it would be temporarily interrupting service while it worked on improving its app. Prior to that, the company had been forced to change its business model numerous times in an effort to overcome financial struggles. 

Refunds promised 

The service was able to amass nearly 3 million subscribers by offering a $9.95 per month subscription plan, but profitability challenges ensued and subscriber numbers dwindled. As of April, MoviePass’ subscriber count was down to 225,000. 

On its website, MoviePass CEO Mitch Lowe assured subscribers that they will be given a refund for any period of service they had already paid for.  

“Subscribers will not need to request a refund or contact MoviePass customer service to receive a refund,” Lowe wrote. “Subscribers will not be charged during the service interruption. At this point, we are unable to predict if or when the MoviePass service will continue.” 

"We still deeply believe in the need for the MoviePass service in the marketplace, to maintain affordable access to theaters and provide movie lovers with choices of where to go to the movies," he continued. "Although we do not currently know what the future holds for the MoviePass service, we hope to find a path that will enable us to continue the service in the future."

Over the weekend, New York Governor Andrew Cuomo announced he would issue an emergency order to ban flavored e-cigarette products. 

The announcement comes just a few days after the Centers for Disease Control and Prevention (CDC) said it had identified nearly 400 cases of lung disease associated with e-cigarettes. As of last week, six deaths have now been linked to vaping. 

Health officials have expressed deep concern over the “epidemic” of youth e-cigarette use that has unfolded over the past few years. Last week, the Trump administration announced that it’s moving toward a federal ban on flavored vaping products in an effort to reverse the trend. 

In a statement, Cuomo said New York is “confronting this crisis head-on” and taking a “nation-leading step to combat a public health emergency.”

"Vaping is dangerous. At a minimum, it is addicting young people to nicotine at a very early age,” Cuomo said on Sunday. 

‘Targeting young people’

Cuomo noted that there has been a 160 percent increase from 2014 on e-cigarette flavors such as bubble gum, cotton candy, and "Captain Crunch."

"Manufacturers of fruit and candy-flavored e-cigarettes are intentionally and recklessly targeting young people, and today we're taking action to put an end to it,” he said. 

Tobacco and menthol e-cigarette flavors wouldn’t be pulled from the market under the order, since these products can serve as a tool for adult smokers looking to discontinue their use of traditional cigarettes. However, "that could change in the future," Cuomo said.

Cuomo has also signed an order that would put educational awareness programs on vaping into school systems. In July, the Democratic governor announced that New York would also be raising the minimum age to purchase tobacco to 21 beginning in November. 

Amazon, which is currently facing antitrust investigations, is now being accused of changing its algorithms to promote products that would deliver high profit margins. 

The Wall Street Journal, citing sources familiar with the matter, reported Monday that Amazon tweaked its product-search algorithm late last year to elevate its own products over those from other sellers, despite internal objections to the idea.

In a statement to the Journal, the e-commerce giant said it has not "changed the criteria we use to rank search results to include profitability."

“Amazon designs its shopping and discovery experience to feature the products customers will want, regardless of whether they are our own brands or products offered by our selling partners,” Amazon spokeswoman Angie Newman said.

At this point, it’s not clear if the company’s changes resulted in higher profits.

Antitrust scrutiny

Amazon’s market dominance has landed it at the center of antitrust investigations in the U.S. and Europe. 

Towards the end of July, U.S. regulators announced that they would begin a broad antitrust probe of big tech companies. The Justice Department said the investigation would focus on how large tech companies achieved their market power and if they engaged in practices that “have reduced competition, stifled innovation, or otherwise harmed consumers.” 

Last week, bipartisan leaders of the House Judiciary Committee requested documents from the company related to how its own products factor into its algorithm. 

“Today’s document requests are an important milestone in this investigation as we work to obtain the information that our Members need to make this determination,” said Rep. David Cicilline (D-R.I.), leader of the antitrust investigation, in a statement.

Rep. Doug Collins (Ga.), the ranking Republican on the full Judiciary Committee, added that “this information is key in helping determine whether anticompetitive behavior is occurring, whether our antitrust enforcement agencies should investigate specific issues and whether or not our antitrust laws need improvement to better promote competition in the digital markets.” 

It’s National Baby Safety month, and Walmart has joined up with social enterprise company TerraCycle to give consumers a way to recycle their child car seats and get a $30 gift card for doing it.

The new initiative takes place at some 4,000 U.S. Walmart stores from now through September 30. 

“Safety -- especially car seat safety -- is a top priority for Walmart’s Baby department,” said Melody Richards, Vice President, Walmart Baby, “... so we wanted to use our size and scale to create an event that offered unprecedented access to trade in an outgrown car seat for a gift card -- perfect for using on your baby’s next car seat.”

And for consumers interested in the program, the process is pretty simple:

1. Take the car seat to a participating Walmart Supercenter. Any brand of car seat will be accepted.

2. Bring the car seat to the Customer Service counter.

3. Collect your $30 Walmart gift card. (Note: There’s a limit of 2 gift cards per household and booster seats are not eligible for trade-in.)

What happens to the car seats?

It may be hard to imagine how all the various parts of a car seat can be reused, but every single part has a new life waiting for it in some fashion.

“We break down the seats to their raw components -- fabric, metal, etc. -- and once the seats have been disassembled, the component is then processed further as raw material to make new products,” TerraCycle’s Sue Kauffman, North American public relations manager, told ConsumerAffairs.

Tom Szaky, CEO and Founder, TerraCycle, put a hard number on the impact of the promotion, estimating that his company expects to divert the plastic equivalent of roughly 35 million water bottles from landfills. 

Is this a one-time thing?

Walmart is home to this specific recycling promotion, but others -- such as Target and Tom’s of Maine -- have held similar initiatives in the past.

Kauffman told ConsumerAffairs that there’s not always a gift card or coupon payoff. Nonetheless, when consumers are looking to dispose of baby-related items at any other time during the year, TerraCycle offers “Baby Gear Zero Waste Boxes” where parents can purchase a special box for recycling toys, playmats, and other baby things. All they have to do is fill it up and send it in for recycling. 

With over 610,000 Americans dying from heart disease every year, it’s important for consumers to know how to keep their hearts healthy. Now, a new study conducted by researchers from the Baker Heart and Diabetes Institute found that Vitamin E could be the answer for keeping patients healthy following a heart attack. 

“One of the most effective anti-oxidant and anti-inflammatory agents is vitamin E and its derivatives,” said researcher Karlheinz Peter. 

The researchers induced mice with heart attack symptoms in order to test their hypothesis; each specimen was injected with alpha-tocopherol -- the strongest, most antioxidant form of vitamin E -- for one hour to see what effects it had on the heart. 

The findings showed that vitamin E greatly improved the mice’s heart function and was responsible for healing damaged muscle tissue, which is common in patients following a heart attack and often difficult to achieve. 

The researchers hope to continue their testing on human patients, as doing so could provide a new avenue into heart attack treatment that is both effective and affordable. 

“As there is currently no drug available that can reduce the cardiac damage caused by overshooting inflammation after reopening of a blocked coronary artery, the potential impact of our finding on cardiovascular health would be significant,” said researcher Dr. Maria Wallert. 

Prevention is key

Though researchers at Yale found that heart attacks aren’t as deadly or frequent for Americans as they were in the 1990s, it’s important for consumers to take as many preventative measures as possible to ensure they stay healthy. 

While it may sound like overly simplified advice, recent studies have pointed to both diet and exercise as tangible ways for consumers to prevent a heart attack. 

“Even a small increase in fitness could have a large impact on health,” Dr. Bjarne Nes said.

Playing mobile games is a great way for consumers to pass time, but these games can also reveal a great deal about cognition, according to a new study conducted by researchers from the University of Kent.

The study found that games like Fruit Ninja and Candy Crush can actually help experts predict cognitive decline in consumers before any other symptoms are visible. 

More than just a game

To determine how the games could predict consumers’ cognitive decline, the researchers had 21 people participate in the study, all of whom were healthy at the start. 

The researchers chose three games -- Fruit Ninja, Tetris, and Candy Crush -- because they require several different hand gestures and are relatively simple and well-known. They had the participants play each game in 10-minute intervals. After two weeks, the participants repeated the 10-minute game-playing sessions. 

The researchers were able to monitor and evaluate the participants’ gestures and motions while playing the games using sensors that are built into smartphones. 

While many people might consider these types of games simple and mindless, the study revealed that they require players to focus their attention and memory skills. The games also test hand-eye coordination and the ability to visually solve problems. 

The information the researchers collected was similar to the data on cognitive skills that many experts use to diagnose Alzheimer’s, dementia, schizophrenia, and stroke, among other serious conditions. The research team was pleased with these findings, as playing these popular games proved to be an effective way to highlight changes in brain activity. \

“We are very encouraged by the results of our study and have since collected data from patients who showed signs of brain damage,” said researcher Dr. Chee Siang Ang. “This additional analysis reinforced the conclusions of our original research. We’re now working to design an algorithm which can carry out automatic monitoring of individuals’ cognitive performance while playing these games.” 

A drone attack on a major Saudi Arabian oil facility over the weekend has put a major dent -- at least temporarily -- in world oil supplies.

Early reports indicate that the explosion and fires shut down half of Saudi oil production, reducing world oil output by 5 percent.  While there is no clear evidence pointing to who was behind the attacks, the loss of oil production should be felt quickly in world oil markets.

Crude oil closed Friday at just below $55 a barrel, but some experts believe prices will soar in the wake of the Saudi attacks. It was up 9 percent in early Monday trading. Patrick DeHaan, head of petroleum analysis at GasBuddy, says some price movement is likely, but its extent may have to wait until the facts are clearer.

“It may be limited due to the fact that Saudi Arabia has said that most of the affected production could be restored within a matter of days,” DeHaan told ConsumerAffairs. “If that turns out to be accurate, the impact to gas prices may be measured in a few cents per gallon.”

As much as 25 cents a gallon

On the other hand, if the damage is more severe than first reported, or if it takes longer to restore production, the average gas price could jump as much as 25 cents a gallon.

“The impact will likely not be felt at the pump until mid-week at earliest but could certainly grow quickly if the news from Saudi Arabia on restoration is bad,” DeHaan said.

The drone attack hit Saudi Aramco’s Abqaiq plant — one of the world’s largest oil processors — and also caused damage to a nearby oil field. Early reports said the damaged installations account for almost 10 million barrels of oil production. Removing that oil from the market will make the remaining oil on the global market more expensive.

‘A big deal’

MarketWatch quotes crude-oil strategist Phil Flynn at Price Futures Group as saying the loss of the Saudi oil is a “big deal,” but as DeHaan points out, it all depends on how long before that oil starts flowing again.

Chris Midgley, global head of analytics, S&P Global Platts, raises another point. He tells CNBC that oil prices may stay elevated to account for the potential risk of attacks on supplies.  

Saudi Energy Minister Prince Abdulaziz bin Salman said Sunday that the damage had affected about 5.7 million barrels a day of oil and gas production. That would mean the attack has reduced Saudi oil output -- for the time being at least -- by around 50 percent.

The U.S. imports very little Saudi oil. However, American consumers will likely be affected because the loss of Saudi production will raise the price of oil produced everywhere, including in the U.S.

President Trump said he is authorizing the release of oil from the Strategic Petroleum Reserve to minimize supply disruptions in the U.S.

The United Auto Workers (UAW) union went on strike against General Motors (GM) at midnight Monday after contract negotiations reached an impasse. It’s the first walkout against GM in more than a decade.

The strike idles about 46,000 workers at more than 50 GM facilities in the U.S. The union said its members voted to walk out after it became apparent that the two sides were not getting anywhere. The union is seeking to make up some of the ground it lost when it made concessions to all the automakers in the wake of the financial crisis.

“We stood up for General Motors when they needed us most. Now we are standing together in unity and solidarity for our members, their families and the communities where we work and live,” said UAW Vice President Terry Dittes.

GM cost-cutting

The walkout also comes amid GM belt-tightening that has involved the closing of some U.S. facilities. Last November, GM announced it was phasing out some of its sedans and transitioning to the automotive future, where consumers are purchasing fewer cars and being more discerning about the vehicles they buy.

The company says its latest contract offer includes over $7 billion in new investments that it says will produce more than 5,000 jobs.

“We presented a strong offer that improves wages, benefits and grows U.S. jobs in substantive ways and it is disappointing that the UAW leadership has chosen to strike at midnight tonight. We have negotiated in good faith and with a sense of urgency. Our goal remains to build a strong future for our employees and our business.”

Earlier this month, the union representing employees at GM, Ford, and Fiat Chrysler voted to authorize a strike if negotiations failed to produce an acceptable contract. Even though there had not been a walkout in 12 years, industry analysts pointed to special challenges this time.

Slow sales slide

U.S. auto sales have been in a slow slide since the last contract four years ago, and the companies may feel less generous. Union negotiators, meanwhile, point to the strong sales and profits the carmakers enjoyed over the previous four years.

The UAW says its members came to the industry’s rescue in 2009 when the financial crisis threatened the industry and sales almost came to a standstill. The union said it made important concessions that helped the industry recover. Car sales boomed between 2015 and 2017 but have slowed in the last two years.

Even though the union is on strike against GM, the two sides will continue talking and get back together later today.

The Federal Trade Commission (FTC) has taken action against operators marketing student loan debt relief services, saying the case provides a cautionary tale for consumers struggling under student loan debt burdens.

The FTC charges two student loan debt relief operations and the financing company that assisted them of stepping over several legal lines. The complaint alleges that they:

• Charged illegal upfront fees;

• Led consumers to believe the fees would go toward reducing loan balances; and

• Falsely promised that they would permanently lower or even eliminate payments or balances.

Adding insult to injury, the FTC charges the companies of saddling their customers with high-interest loans to pay their fees without making required disclosures. The agency says consumers already struggling to pay back student loans were buried even deeper in debt.

Various stages of settlement

The case is in various stages of settlement. The financing company has reportedly agreed to a settlement, but the FTC’s action continues against the defendants involved in the debt relief operations.

“Working with our law enforcement partners across the country, we have brought dozens of cases against debt relief scams like these,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. 

Smith said the case involves the example of a state-licensed finance company that, in effect, looked the other way as consumers were hit with illegal fees.

“This is yet another example of how we are holding accountable companies that facilitate fraud by others,” he said.

Object lesson

It also serves as an object lesson for consumers who might be tempted by what appears to be an easy way out of an oppressive student loan debt. That easy way out doesn’t exist.

Student loan debt is the most difficult to settle or walk away from, even in bankruptcy. According to the U.S. Department of Education, some loans are eligible for forgiveness or discharge if the debtor is engaged in certain occupations, such as teaching.

Student loan borrowers whose schools declared bankruptcy and went out of business are also eligible for a loan discharge under many circumstances. The Department of Education has compiled this resource to help you understand your options.

Consumers should also understand that many debt-relief plans involve withholding payments for an extended time. That can cause serious harm to credit standing and subject consumers to aggressive debt collection efforts.

In response to recent mass shootings, 145 chief executives from some of the biggest businesses in the U.S. have sent a letter to Senate leaders that demands action on gun violence.

The letter, which was first shared by the New York Times, demands that lawmakers "support common-sense gun laws," including tougher background checks on all gun sales and the passage of a strong “red flag” law.

“Gun violence in America is not inevitable; it’s preventable,” the executives wrote in Thursday’s letter. “There are steps Congress can, and must, take to prevent and reduce gun violence We need our lawmakers to support common-sense gun laws that could prevent tragedies like these."

Demanding urgent action 

The letter was signed by the CEOs of nearly 150 retailers, technology companies, and financial institutions, including Uber, Lyft, Twitter, Bloomberg, Yelp, Airbnb, and Royal Caribbean Cruises. The coalition of executives said gun violence is a “public health crisis that demands urgent action.” 

"As leaders of some of America's most respected companies and those with significant business interests in the United States, we are writing to you because we have a responsibility and obligation to stand up for the safety of our employees, customers and all Americans in the communities we serve across the country," the letter said.

Noting that there is “overwhelming public support” for stronger gun laws in America, the business leaders urged senators to pass a bill that requires background checks on all gun sales and red flag laws. Red flag laws allow authorities to remove weapons from people who have shown warning signs that they are in a crisis. 

"Doing nothing about America's gun violence crisis is simply unacceptable and it is time to stand with the American public on gun safety,” the executives said.

The letter comes a week after Walmart CEO Doug McMillon announced that his company would be reducing its gun and ammunition sales. Kroger, Walgreens, and CVS have also asked their customers to stop openly carrying guns in their stores. 

Starting January 1, nearly 2,000 part-time Whole Foods employees will lose the medical benefits they previously received through the company.

The grocery retailer, which was acquired by Amazon in 2017, told Business Insider on Thursday that it will be withdrawing benefits "to better meet the needs of our business and create a more equitable and efficient scheduling model."

Whole Foods said it’s moving to a “single-tier part-time structure” and providing its employees with resources to find other healthcare coverage options. Alternatively, employees slated to lose their benefits may choose to look into full-time, healthcare-eligible positions. 

Going forward, the option to participate in the Whole Foods’ health-care plan will be extended to employees who work a minimum of 30 hours per week. Previously, employees needed to work at least 20 hours a week to buy into the plan. Whole Foods said the policy change will affect just under 2 percent of its workforce. 

Last year, Amazon raised the starting wage for its hourly workers -- including those who work at Whole Foods -- to $15 an hour.