Current Events in February 2021

Ford Motor Co. raised another challenge for electric vehicle (EV) manufacturers on Wednesday. It announced that every single vehicle that rolls off its European assembly lines would be all-electric by 2030. The company says the move is the most direct route to sustain profitability.

Automakers continue to plan for an all-electric future. Earlier this week, President Biden added a new governmental buy-in to the shift by ordering the federal government’s gas-powered fleet be swapped out for electric vehicles. 

The U.S. government is also attempting to reform an automotive incentive program by offering a $7,000 tax credit to consumers who purchase an EV. The consumer market seems primed for this shift. Recently, automotive publisher Edmunds said electric vehicle sales could double in 2021.

One step at a time

Automakers from around the world have stepped up to the EV challenge. Ford is no different than GM, BMW, VW, Hyundai, or Mercedes-Benz when it comes to giving advance notice -- sometimes by several years -- about its intentions with more sustainable models.

In Europe, Ford will be up against Jaguar/Range Rover -- an automaker it used to own -- that also announced plans to cover the European market with all-electric vehicles by 2030. The X factor is time and efficiency, and Ford realizes that getting to the all-EV future requires taking measured baby steps, not hype and chest-thumping.

The first thing the company did was put its money where its mouth is. In 2020, the company announced that it was investing at least $22 billion globally in electrification over the next four years, nearly doubling the company’s previous EV investment plans.

Multi-year rollout plan

Ford is jump-starting its all-EV initiative with a $1 billion investment in a new electric vehicle manufacturing center in Cologne, Germany. The location is where consumers will see the first of Ford’s labors in 2023 with the “company’s first European-built, volume all-electric passenger vehicle for European customers.”

The next step Ford has planned is for “zero-emissions capable, all-electric or plug-in hybrids.” It hopes to hit that mark by 2024 for commercial vehicles and by mid-2026 for passenger vehicles.

At that point, the company feels confident that it can hit its 2030 all-electric goal for passenger vehicles. However, it left the door slightly open for the complete conversion of commercial vehicle buyers from gas to electric, saying that two-thirds of commercial vehicle sales are “expected” to be all-electric or plug-in hybrids by 2030. 

Moving towards an all-electric future

Becoming king of the hill in the all-EV commercial vehicle market is a key component of Ford’s plans. For six years running, it’s led commercial vehicle sales in Europe and says its commercial vehicle business is key to its European profitability. To achieve that goal, the company has decided it can’t go it alone and says it’s working with a broad network of commercial vehicle converter partners, including Volkswagen and Ford Otosan, a Turkish automaker it co-owns. 

“We successfully restructured Ford of Europe and returned to profitability in the fourth quarter of 2020. Now we are charging into an all-electric future in Europe with expressive new vehicles and a world-class connected customer experience,” said Stuart Rowley, president, Ford of Europe. 

“We expect to continue our strong momentum this year in Europe and remain on track to deliver our goal of a six percent EBIT margin as part of Ford’s plan to turnaround our global automotive operations.”

Europe’s leading consumer advocacy group -- the Bureau Européen des Unions de Consommateurshas (BEUC) -- has filed a complaint against TikTok over claims that the Chinese-owned app violated the bloc’s data privacy laws. 

The BEUC has accused TikTok of violating General Data Protection Regulation (GDPR) through its alleged “unclear” terms of service and by "failing to protect children and teenagers from hidden advertising and inappropriate content."

The complaint was filed in the wake of several reports that analyzed the video-sharing app’s approach to consumer protection through its data protection practices and privacy procedures. 

Hidden advertising

In a press release, the BEUC accused TikTok of allowing companies to peddle their products in a way that young users might not see as advertising. 

“Users are for instance triggered to participate in branded hashtag challenges where they are encouraged to create content of specific products,” the BEUC wrote. “As popular influencers are often the starting point of such challenges the commercial intent is usually masked for users. TikTok is also potentially failing to conduct due diligence when it comes to protecting children from inappropriate content such as videos showing suggestive content which are just a few scrolls away.” 

The group also argues that the app isn’t doing enough to prevent underage users from registering for an account. 

“In practice, it is very easy for underage users to register on the platform as the age verification process is very loose and only self-declaratory,” the BEUC said, citing a number of studies that have suggested that children make up “a very big part” of the app’s user base. 

Data collection concerns

With regard to data collection, the BEUC accused the Chinese-owned app of repeatedly changing its data and protection practices in Europe without publicly disclosing that it had done so. The group claims TikTok has an “ambiguous” privacy policy that doesn’t give users a clear picture of the ways in which it collects and uses personal information. 

The BEUC noted that TikTok’s terms and conditions grant it an “irrevocable right to use, distribute and reproduce the videos published by users, without remuneration.” Also problematic to the group is the app’s lack of an opt-out feature that users can select if they would prefer not to have their personal data collected for advertising. 

Consumer organizations in 15 countries are now pushing for authorities to investigate TikTok.

TikTok said in a statement to Reuters that it's "always open to hearing how we can improve” and that it has contacted BEUC about potentially scheduling a meeting “to listen to their concerns.” The company also said it provides an in-app summary of its privacy that it claims was crafted to be easy for teens to understand.

Researchers on Wednesday urged delaying the second dose of Pfizer’s COVID-19 vaccine, citing data suggesting the first dose is highly protective against the virus. 

In a letter published in the New England Journal of Medicine, Canada-based researchers Danuta Skowronski and Gaston De Serres said the drugmaker’s vaccine was 92.6 percent effective after just the first dose. 

The researchers, who drew the finding from an analysis of documents submitted by Pfizer to the U.S. Food and Drug Administration (FDA), said delaying the second dose could help stretch the vaccine supply and ensure that high-priority groups get at least one dose as soon as possible. 

“With such a highly protective first dose, the benefits derived from a scarce supply of vaccine could be maximized by deferring second doses until all priority group members are offered at least one dose,” the authors said. 

Pfizer says interval testing needed

Skowronski and De Serres added that there “may be uncertainty about the duration of protection with a single dose,” but it’s clear that having people get a second dose within a month after the first “provides little added benefit in the short term.” 

“Given the current vaccine shortage, postponement of the second dose is a matter of national security that, if ignored, will certainly result in thousands of Covid-19–related hospitalizations and deaths this winter in the United States — hospitalizations and deaths that would have been prevented with a first dose of vaccine,” the researchers said. 

Pfizer, in response to the letter, said that alternative dosing schedules haven’t been evaluated yet. The company said that it’s ultimately up to health authorities to decide whether to change the guidance. 

"We at Pfizer believe that it is critical for health authorities to conduct surveillance on implemented alternative dosing schedules to ensure that vaccines provide the maximum possible protection," the company said.

Currently, the second dose of Pfizer’s COVID-19 vaccine is authorized to be administered 21 days after the first shot.

A long-time McDonald’s franchise owner who is African American has filed a lawsuit against the company, charging that it systematically kept him and other minority franchisees out of the more lucrative markets they sought.

Herb Washington, a former Major League Baseball player for the Oakland A’s, claimed in his lawsuit that McDonald’s discriminated against him and other minority owners based on race.

“In his four decades in the McDonald’s system, Mr. Washington has suffered deplorable treatment as compared with White franchisees,” the complaint alleges. “As but one example discussed below, McDonald’s purposefully steered Mr. Washington into stores in distressed, predominantly Black neighborhoods, which—as McDonald’s well knew—yield considerably less profit than stores in more affluent communities.”

Washington heads the largest black-owned franchise group in the U.S. At one time he owned 27 McDonald’s restaurants in New York, Ohio, and Pennsylvania. The suit claims that, beginning in 2017, the company began a campaign to force him to sell.

The catalyst, Washington alleges, was his public grievances about McDonald’s policies, which he claimed was retaliation for speaking about the “predatory, racially-biased steering practices” against black franchisees. 

Washington now owns 14 McDonald’s restaurants and said he was forced to sell seven stores over the last three years.

McDonald’s responds

For its part, McDonald’s accused Washington of being a poor businessman and said most of his setbacks were his own doing.

“This situation is the result of years of mismanagement by Mr. Washington, whose organization has failed to meet many of our standards on people, operations, guest satisfaction and reinvestment,” McDonald’s said in a statement. “His restaurants have a public record of these issues, including past health and sanitation concerns and some of the highest volumes of customer complaints in the country.”

Washington’s suit also blames former McDonald’s CEO Steve Easterbrook and current CEO Chris Kempczinski for allegedly fostering a hostile attitude toward black franchisees. He said the attitude spread throughout the organization.

The suit asks the court to “declare that Defendants’ acts and conduct violate federal law” and to enter a judgment in Washington’s favor, but it did not specify a number when seeking damages.

Once again, a new shopping wrinkle enhanced by COVID-19 is starting to trend upward. Quietly, but steadily, “buy now, pay later” (BNPL) services are starting to gain favor with consumers. While it can be a helpful option, financial analysts are worried that some consumers may be misusing BNPL to buy unnecessary or luxury items that they otherwise wouldn't be able to afford. 

The concept of BNPL has been around for a while, but the crunch that the pandemic has put on people’s wallets and shopping behaviors is leading to exponential growth. For those who lost their jobs, it reduced the stress of buying essentials or replacing an appliance that went haywire. And for consumers nervous about the health risks of shopping in-store, it gave them another reason to do their shopping online.

How BNPL works

The basic idea behind BNPL is straightforward. Older consumers may define it as nothing more than “90-days-same-as-cash,” and in essence, it is similar. The difference is that we’re in the 21st century now, and BNPL caters to today’s nuances via an app-based, interest-free loan that shows up as a payment option at the checkout page of online retailers. 

All BNPL customers pre-qualify for a certain amount that is determined by the service that they're using. As an example, BNPL service Affirm says that its pre-qualified amount is “an estimate of what a lender may qualify you to borrow in the future.” That's different from a credit limit, which is “the maximum amount of credit a lender has already decided you can borrow.”

While those basics sound fairly simple, less than one-fourth of the people who use BNPL say they understand all of the terms and conditions. And if a consumer doesn’t pay attention to them, it can be a big problem.

The first point of confusion is BNPL companies’ use of the term “interest-free” for promotions. In BNPL land, “interest-free” only works for a set period of time. 

“If you pay off your balance before the period ends, you can avoid paying interest altogether. The regular interest rates on BNPL are typically very high,” The Ascent’s Elizabeth Aldrich explains.

“For example, if you're making a $200 purchase, you might see a BNPL payment option that lets you pay for the item in four interest-free installments of $50 each. You'll pay $50 today and receive your item, then another $50 every two weeks for six more weeks. If you don't make your payments on time or fail to pay off your balance before the interest-free period ends, you could get hit with big late fees and interest charges,” Aldrich said. 

The floodgates have opened

The love for BNPL really took off over the 2020 holiday season, particularly with sales of electronics and other items consumers might not otherwise be able to afford. In response, online retailers jumped on board in droves to capitalize on this new normal of retail. 

Now, only months later, the BNPL floodgates have opened. The A-Z list of BNPL retailers includes notables from Amazon to Zulily. 

The embrace of BNPL is also starting to expand past retail. Uplift -- a buy now, pay later solution for the travel industry -- is seeing an uptick in demand for flexible payment options. The service thinks BNPL could be the economic kickstarter that’s needed to reignite the pandemic-torn travel industry.

As you might imagine, the app side of the equation is licking its chops over the newfound bonanza. There are close to 10 serious players in the app marketplace already, and Bank of America expects that number will “grow 10-15x by 2025 to eventually process $650bn-$1tn in transactions.” 

The BNPL company most consumers are aware of is probably PayPal Credit (formerly known as Bill Me Later). Others include Affirm, Klarna, Sezzle, Afterpay, Splitit, Quadpay, ViaBill, Zebit, and Perpay.

Clever or risky?

One analyst called BNPL a “mass experiment” and said the fallout could be painful for consumers and lenders alike. 

“Is BNPL a clever way for younger borrowers to take on sensible credit, or did lenders just give billions of dollars of loans to a bunch of subprime borrowers in the checkout aisle?,” pondered Alan McIntyre, senior managing director and head of the global Banking practice at Accenture.

“The answer matters. Investors love that the fintech firms doing the lending — Klarna, Affirm, Afterpay and others — are disrupting the traditional credit card business. Consumers, not known for restraint, love being offered a 0 percent line of credit without a complicated application process,” McIntyre said.

Credit reporting bureaus are also warning consumers that BNPL is no different than any other form of credit. However, it can have a serious impact on credit scores depending on how it’s used. Just ask the two million shoppers in the U.K. who damaged their credit scores using "buy now, pay later” services.

Retailers have fallen in love with BNPL

For their part, retailers appear to be on board with the BNPL trend. Reports suggest that BNPL users make larger purchases and leave fewer online shopping carts abandoned. As a bonus, retailers aren’t on the hook for collecting because that responsibility lies with the BNPL service. 

The only thing the retailer loses is a small percentage of the purchase price -- which can run anywhere from 2 to 8 percent. That rate may be higher than a typical credit card discount rate, but unlike credit cards, the BNPL provider is the one carrying the risk of fraud and chargebacks, not the retailer. That means the merchant gets their money no matter what, even if the transaction is fraudulent.

The millennial play

While BNPL isn’t generationally-exclusive, millennials appear to be drawn to its flame more than other demographics, and the service providers are playing to that strength. 

When the company behind BNPL app Affirm filed for an IPO with the Securities and Exchange Commission (SEC), it made no bones about the “spending power of this new generation of consumers.” 

“Most importantly, we believe these consumers are also increasingly looking to solutions like ‘buy now, pay later’ as superior, more transparent payment options that match their demand for technology and mobile-first solutions,” Affirm Holdings, Inc. noted in its filing.

For some millennials, BNPL is a gift from the financial gods. It caters to those who want to make purchases that they couldn’t otherwise fit into their budget and those who want to borrow money without a credit check. However, it also works out for shopaholics who can order the same item in different sizes or colors and send back the ones they don’t like. 

“Shop now and pay over time is appealing to a generation who appeared to be risk-averse, but who values newness, [a] testament to their social media accounts filled with posts of novel fashion looks, often daily. For cash-strapped millennials or those who don’t have credit cards, pay later services sound enticing,” suggests FashionUnited’s Don-Alvin Adegeest. 

But, BNPL may be driving young consumers to spend more than they can realistically afford. One young Brit earning close to $40,000 U.S. a year told the DailyMail that she is struggling to control her finances and shopping habits because of BNPL offerings.

“My spending’s gone up drastically since I’ve been using buy now, pay later,” said Yasmine Ibrahin. “It becomes a vicious cycle. You use it once and, then, you have to use [it] the next time because the money for the last thing you bought has just come out of your account.”

President Biden said Tuesday that every American who wants a COVID-19 vaccine should be able to get one by the end of July. 

During a town hall meeting hosted by CNN, he said he didn’t want to “overpromise.” However, he believes that “by next Christmas, I think we’ll be in a very different circumstance, God willing, than we are today.” 

At another point during the discussion, he predicted that we’ll be “significantly better off than we are today” by the time the next school year starts in September, the New York Times reported. 

Increased vaccine output

The COVID-19 vaccine rollout has gotten off to a slower-than-ideal start. As of Tuesday morning, only around 12 percent of the U.S. population had received the first dose of a COVID-19 vaccine, and just 4 percent had received both shots. But the pace is starting to pick up due to several developments. 

The Biden administration has been working with Pfizer to provide it with more manufacturing supplies through the Defense Production Act. Last week, the White House announced that both Pfizer and Moderna would be able to deliver a total of 400 million doses by the end of May, which is ahead of schedule. 

The administration said Tuesday that states will soon begin receiving 13.5 million doses each week, which is two million more than they were previously receiving. Dr. Anthony Fauci, the nation’s leading infectious disease expert, predicted Tuesday that “mid-to-late May and early June” would see an uptick in the number of vaccines administered. 

Combating new variants 

The increases in vaccine supply come as scientists continue to track more contagious variants of the virus, such as the B.1.1.7 strain. Dr. Fauci has said that the most effective way to stop new variants from becoming more dominant is to continue following safety precautions and to plan to get vaccinated as soon as possible. 

"The only way a virus mutates (is) if it can replicate. So if you vaccinate people and double down on public health measures and keep the level of viral dynamics low we will not have an easy evolution into mutations," Fauci said earlier this month. "That's something that people really need to understand. The way you stop those mutations: Get vaccinated and abide by the public health measures.”

He’s also said that at least 70 percent of Americans will need to be vaccinated in order for life to return to “normal.” 

Recently, both the Centers for Disease Control and Prevention (CDC) and Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases (NIAID), suggested that people can further protect themselves against COVID-19 by wearing two masks. 

That seems simple enough, but the CDC says there are some nuances to that guidance that we need to consider.

The agency points out that not all masks offer the same protection. Because of that, health officials say mask-wearers should focus on being “correct and consistent” in their mask use. To help us get a better idea of what that means, the agency put together a new list of do’s and don’ts regarding mask-wearing.

The Do’s

DO: Choose a mask with a nose wire

• Nose wires can prevent air from leaking out of the top of the mask. The CDC reminds people to bend the nose wire over their nose to fit close to their face.

DO: Use a mask fitter or brace

• Using a mask fitter or brace over a disposable mask or a cloth mask can prevent air from leaking around the edges of the mask.

DO: Check that your mask fits snugly over your nose, mouth, and chin

• To make sure your mask is snug, cup your hands around the outside edges of the mask and check for gaps.

• Make sure no air is flowing from the area around your eyes or from the sides of the mask.

If the mask has a good fit, you should feel warm air come through the front of the mask and may be able to see the mask material move in and out with each breath.

DO: Add layers of material

The CDC says there are two ways to layer:

1. Use a cloth mask that has multiple layers of fabric.

2. Wear one disposable mask underneath a cloth mask.

For either method, you’ll know you’ve got it right if the second mask pushes the edges of the inner mask against your face.

DO: Knot and tuck ear loops of a 3-ply mask

• Knot the ear loops of a 3-ply face mask where they join the edge of the mask

• Fold and tuck the unneeded material under the edges

This one might call for some added instruction, so the CDC has put a video together that demonstrates this better. It’s available here. 

The Don’ts

DON’T: Combine two disposable masks

The CDC’s reasoning is simple: Disposable masks are not designed to fit tightly, and wearing more than one will not improve fit.

DON’T: Combine a KN95 mask with any other mask

The CDC says consumers should only use one KN95 mask at a time.

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University. (Previous numbers in parentheses.)

Total U.S. confirmed cases: 27,762,686 (27,703,142)

Total U.S. deaths: 488,352 (486,520)

Total global cases: 109,659,317 (109,285,411)

Total global deaths: 2,423,307 (2,411,745)

Winter storms complicate vaccine distribution

States were having a hard enough time securing ample supplies of coronavirus (COVID-19) vaccine before winter storms socked much of the nation. Now, the frigid weather is delaying vaccine distribution to a number of states, according to the Centers for Disease Control and Prevention (CDC).

In Florida, the Department of Emergency Management said the storm has prevented the scheduled delivery of 200,000 doses of vaccine. The shipment was supposed to arrive Tuesday, but now officials say it won’t arrive until Thursday.

In Colorado, state officials have reported that winter storms delayed the shipment of 133,000 expected doses of the vaccine. 

CDC advises against travel

The Centers for Disease Control and Prevention (CDC) is urging Americans to postpone travel plans for the immediate future. The guidance follows an investigation into several cases of the U.K. coronavirus variant in Minnesota in late December and early January.

The patients had all recently engaged in foreign and/or domestic travel. Three people had a history of international travel during the 14 days before illness onset, including two who traveled to West Africa and one who traveled to the Dominican Republic. Three had traveled to California.

So far, the CDC has documented at least 1,277 COVID-19 cases with the U.K. variant, known as B.1.1.7., in the U.S. The variant, which is highly contagious, has been found in 42 states.

New York sues Amazon over COVID-19 safety practices

New York Attorney General Letitia James is suing Amazon. Regulators say that the company’s workplace policies have failed to provide adequate health and safety measures for employees at the company’s New York facilities.

The suit also claims that the company has taken retaliatory actions against multiple employees who voiced safety concerns during the COVID-19 pandemic and violated New York State labor laws. 

“While Amazon and its CEO made billions during this crisis, hardworking employees were forced to endure unsafe conditions and were retaliated against for rightfully voicing these concerns,” James said.

Johnson & Johnson seeks European approval of its vaccine

Johnson & Johnson says it has filed papers to receive conditional European approval of its vaccine. The request was submitted to the European Medicines Agency and follows a similar request to the U.S. Food and Drug Administration (FDA) earlier this month.

Health officials around the world are hopeful that the Johnson & Johnson vaccine will win speedy approval and quickly supplement the vaccines from Pfizer and Moderna. Some health experts have called the Johnson & Johnson candidate a potential game-changer.

“It’s such a flexible vaccine,” said Will Humble, the executive director for the Arizona Public Health Association and former director of the Arizona Department of Health Services. Arizona was one of the states where the vaccine was tested.

Late payments on the rise during the pandemic

President Biden’s announcement Tuesday that the administration will extend the COVID-19 moratorium on home foreclosures was no doubt welcome news for struggling homeowners. But it turns out Americans are also struggling to pay their credit card bills.

A survey by personal finance site WalletHub shows that more than 18 percent of respondents said they believe they will miss at least one credit card due date in 2021. That works out to about 47 million Americans.

The survey also showed that the number of consumers asking their credit card company to waive a late fee rose last year by 16 percent. Nine out of ten respondents said their credit card company complied with their request.

Around the nation

• Florida: Beckyjack's Food Shack in Hernando County has gone viral on social media after posting a sign on the door to the restaurant telling patrons they don’t have to wear a mask. But it was the way the restaurant said it that’s causing a sensation, referring to masks as “face diapers.”

• Tennessee: While some states struggle to administer vaccines, state health officials in Tennessee say they are now ready to open eligibility to teachers and people age 65 and older. Officials say over 1 million shots have been administered so far.

• Michigan: One good thing about holding online classes for school students is that you don’t have to worry about “snow days” when there’s bad weather. But a few school districts in the state raised some eyebrows this week when they declared a virtual snow day, canceling online classes for the day.

A new study conducted by researchers from Cedars-Sinai Medical Center found that the range for healthy blood pressure is different for men and women. The team learned that women have a smaller range for what’s considered normal blood pressure than men, and elevated blood pressure is associated with an increased risk of heart disease. 

These findings come on the heels of other recent studies that have highlighted the differences in how men’s and women’s bodies function. Findings suggest that women are often misdiagnosed or mistreated for common but serious health concerns. 

“Our latest findings suggest that this one-size-fits-all approach to considering blood pressure may be detrimental to a woman’s health,” said researcher Dr. Susan Cheng. “Based on our research results, we recommend that the medical community reassess blood pressure guidelines that do not account for sex differences.” 

Recognizing differences in blood pressure

For the study, the researchers evaluated blood pressure readings from more than 27,000 participants that were involved in earlier studies. The main goal was to see how blood pressure readings impacted the participants’ risk for cardiovascular disease. 

Ultimately, the researchers observed some key differences between men’s and women’s blood pressure readings and later health risks. The biggest disparity came from the top number of the blood pressure -- the systolic reading. Though most health care professionals recommend that the systolic reading stays below 120 mmHg, the researchers found that the healthy range was lower than that for women.

For the men involved in the study, 120 mmHg proved to be an effective benchmark for later heart disease risks. However, when women’s systolic blood pressure exceeded 110 mmHg, they were at an increased risk of heart attack, stroke, and heart disease. 

“We are now pushed to rethink what we thought was a normal blood pressure that might keep a woman or man safe from developing heart disease or stroke,” said Dr. Cheng. 

The researchers hope that these findings change the way that medical professionals look at their patients’ vitals. The differences in men’s and women’s experiences are clear, and it’s important to take them into consideration when implementing treatment protocols. 

“If the ideal physiologic range of blood pressure truly is lower for females than males, current approaches to using sex-agnostic targets for lowering elevated blood pressure need to be reassessed,” said researcher Dr. Christine Albert. “This important work is far-reaching and has numerous clinical implications.” 

The distribution of $600-per-recipient stimulus payments led to an overall 5.3 percent increase in retail spending last month, according to a government report released Wednesday. 

Economists surveyed by Dow Jones said they were expecting a rise of just 1.2 percent, but January’s spending increase turned out to be the biggest since June. 

In its report, the Census Bureau said that consumers put their stimulus money toward items in a variety of categories last month. 

• Furniture and electronics saw a 14.7 percent increase compared to the month prior;

• Spending at bars and restaurants increased 6.9 percent month-over-month;

• Department stores saw a 23.5 percent increase; and

• Online and other non-store sales were up 11 percent compared to December.

Consumer confidence rising

Analysts say consumer confidence is likely to continue building in connection with the availability of COVID-19 vaccines and the lifting of certain government restrictions on economic activity.  

“January’s retail sales numbers reflect a very strong start for consumers and retailers as we look ahead to a critical year curbing the global pandemic and strengthening our economic recovery,” NRF President and CEO Matthew Shay said in a statement. 

“Consumers and the economy as a whole remain in good shape despite unprecedented adversity over the past year, and congressional action has been a lifeline for households and businesses disproportionately impacted by the pandemic. We’ve convened retail leaders and communicated directly with the White House that it is critically important for the government to work with retailers to get the vaccine into communities and administered as quickly and as safely as possible.”

The Federal Trade Commission (FTC) has moved to ban the operators of a massive payday lending scheme that overcharged consumers millions of dollars. 

The agency said the operators of the scheme used deceptive marketing tactics to dupe consumers into thinking that their loans would be repaid in a fixed number of payments. Instead, the company continued to pull money from consumers’ bank accounts “long after the loans’ original principal amount and stated repayment cost had been repaid,” according to the complaint. 

The FTC said the company continued to draw money from consumers’ accounts until they “completely closed their bank accounts or found some other way to cut off payments.” 

Consumer debts cleared

The scheme was carried out under a number of different names, including Harvest Moon Financial, Gentle Breeze Online, and Green Stream Lending. Under the settlement, debts owed to the operators of the scheme will be wiped from the books. 

“These defendants hoodwinked people in financial need by charging much more than promised for payday loans,” Daniel Kaufman, acting director of the FTC’s Bureau of Consumer Protection, said in a statement. “We expect payday lenders to not only honor the terms of their deal but also to refrain from making a never-ending series of unexpected withdrawals from customers’ bank accounts, as these companies did.” 

“Any consumer loan made by the company before it was temporarily shut down as part of the case will be considered to be paid in full if the original amount of the loan and one finance charge have been paid,” the statement continued. 

The FTC said the defendants will be required to turn over all corporate assets and almost all domestic personal assets, as well as a number of vehicles. Those assets will be relinquished to a receiver, which will liquidate the business and provide all proceeds to the FTC.

Forced social isolation during the COVID-19 pandemic has been a difficult transition for many consumers. Now, a new study conducted by researchers from the University of California at Riverside has found living with a romantic partner during this time can help fulfill consumers’ need for social connection. 

Interestingly, the researchers found that no other in-home connections -- to kids, siblings, or pets -- produces these benefits the way that a romantic partner does. 

“Research prior to the pandemic has shown that partners are one of the strongest predictors of social connection and well-being,” said researcher Karyanna Okabe-Miyamoto. “And our research during the COVID-19 pandemic has shown the same. Living with a partner uniquely buffered declines in social connection during the early phases of the pandemic.” 

Finding connection at home

The researchers conducted two surveys -- one in the U.S. and U.K. and another in Canada -- to determine how living with a romantic partner during the COVID-19 pandemic has helped consumers feel more social. Nearly 1,000 participants answered questions about their social lives both before and during the pandemic to gauge what their households looked like during stay-at-home orders. 

Regardless of how many people or pets were in the participants’ house, the researchers learned that those living with a romantic partner felt the strongest social connections during the pandemic. The researchers accounted for several potential factors -- working outside the home, spending time with kids, having several people in the home, and scheduling video calls with family and friends -- and none helped the participants feel as socially connected as those who were living with their romantic partners. 

“Living with a partner -- but not how many people or who else one lives with -- appeared to confer benefit during these uncertain and unprecedented times,” the researchers wrote. 

Finding ways to safely socialize

While nothing can replace connecting with friends and family face-to-face, it’s important for consumers to get creative and find meaningful ways to fill their days at home. The researchers are calling on legislators to find ways for people to socialize in small groups that would keep transmission of the virus to a minimum. 

“In light of these results, policymakers might consider developing guidelines for social/physical distancing that protect people’s physical health while ensuring they retain a sense of closeness and connection by spending time in close proximity with partners, even outside their households,” the researchers wrote.

“Such approaches might be especially helpful for individuals who have been unintentionally and disproportionately socially isolated by social distancing measures, such as those who are cut-off, separated from their partners, or generally struggling with staying home.” 

Fewer people applied for mortgages last week as mortgage rates edged higher from their historic lows. At the same time, there didn’t appear to be much let-up in demand for houses.

The Mortgage Bankers Association (MBA) reports that the number of mortgage applications dropped 5.1 percent last week from the week before. Refinance and purchase applications fell about the same amount. The average mortgage interest rate for 30-year fixed-rate mortgages increased to 2.98 percent from 2.96 percent.

“Expectations of faster economic growth and inflation continue to push Treasury yields and mortgage rates higher,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, told CNBC. “Since hitting a survey low in December, the 30-year fixed rate has slowly risen, and last week climbed to its highest level since November 2020.” 

But rates, by almost any measure, are still extraordinarily low and make more expensive homes more affordable for buyers. MBA reports that the average purchase loan size rose to another survey record of $412,200.

Flying off the market

Despite the slowdown in mortgage applications, homes appear to be flying off the market. Real estate brokerage firm Redfin reported last week that a record 52 percent of its listings that sold did so during the first two weeks that the homes were on the market.

That compares with 43 percent during the same time in 2020. Redfin said it was the first time more than half of its listings sold at that pace since it had begun tracking that metric in 2012.

That pace is likely the result of the continued decline of available homes on the market. New listings of homes for sale were down 11 percent from a year earlier. Agents are telling buyers to act quickly before the home they’re considering goes under contract. That low inventory and increased competition are also pushing up home prices.

Redfin reports that asking prices of newly listed homes hit a new all-time high of $334,770, up 10 percent year-over-year. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased slightly to 99.3 percent.

BMW of North America is recalling 28 model year 2020-2021 530i xDrives, 540i xDrives and model year 2021 740Li xDrives.

The output shafts (left/right) which transfer power from the driveshaft to the rear wheels may break due to a heat treatment error during supplier production.

A broken output shaft can lead to a loss of drive power or a rollaway condition in a parked vehicle (if the parking brake is not engaged), increasing the risk of a crash.

What to do

BMW will notify owners, and dealers will replace the output shaft(s) free of charge.

The recall is expected to begin March 29, 2021.

Owners may contact BMW customer service at (800) 525-7417.

Yamaha Motor Corporation U.S.A., of Cypress, Calif., is recalling about 820 model year 2021 Wolverine RMAX4 1000 Recreational Off-Highway Vehicles (ROVs).

The vehicles’ rear shock absorber mounts can break, posing crash and injury hazards.

The firm has received one report of the rear shock absorber breaking loose. No injuries have been reported.

This recall involves model year 2021 Wolverine 1000 RMAX4 recreational off-highway vehicles, a list of which may be found here.

The side-by-side vehicles were sold in blue, green and gray. The model name is shown on the side of the vehicle.

The Vehicle Identification Number can be found on the frame at the left rear. The model number is located near the front left corner of driver’s seat.

The ROVs, manufactured in Japan, were sold at Yamaha dealers nationwide from October through December 2020 for between $21,300 and $25,300.

What to do

Consumers should immediately stop using the recalled ROVs and contact an authorized Yamaha dealer to schedule a free repair. Yamaha is contacting all registered owners directly.

Consumers may contact Yamaha at (800) 962-7926 anytime or online at https://yamaha-motor.com/ and click on “Product Recalls” at the bottom of the page for more information.

Mercedes-Benz USA (MBUSA) is recalling 231 model year 2021 A220s, A35 AMGs, and CLA250s.

The child seat anchoring system (ISOFIX) may be missing the right-side anchoring bar from the ISOFIX bracket on the right-rear seat.

If the anchoring bar is missing from the ISOFIX bracket, the child restraint cannot be secured properly to the seat using the ISOFIX securing system, increasing the risk of injury for a child in that seat.

What to do

MBUSA will notify owners, and dealers will inspect the right-rear ISOFIX bracket and replace the bracket -- if necessary -- free of charge.

The recall is expected to begin March 30, 2021.

Owners may contact MBUSA customer service at (800) 367-6372.

With the COVID-19 pandemic continuing its onslaught and putting millions of Americans in the disconcerting position of facing continued hardship, President Biden announced on Tuesday that his administration is taking additional steps to help keep individuals and families in their homes, safely away from the risk of eviction and foreclosure. 

Those protections were set to expire in March. Now, they will last through June. They include the following actions:

• Extending the foreclosure moratorium for homeowners through June 30, 2021;

• Extending the mortgage payment forbearance* enrollment window until June 30, 2021 for borrowers who wish to request forbearance; and

• Providing up to six months of additional mortgage payment forbearance -- in three-month increments -- for borrowers who entered forbearance on or before June 30, 2020. 

  • *In layman’s terms, forbearance is “a temporary postponement of mortgage payments. It is a form of repayment relief granted by the lender or creditor in lieu of forcing a property into foreclosure.”

All for one, one for all

On top of helping out the general landscape of homeowners, the White House said that it’s putting extra emphasis on the following areas where the health and economic costs of the pandemic have been unevenly felt:

Across-the-board government agency help

Included in Biden’s revived plan is across-the-board relief for urban, suburban, rural, and military homeowners, including seniors with reverse mortgages. 

To help make that happen, every single government agency that deals with mortgages and evictions including the Department of Housing and Urban Development, Department of Veterans Affairs, and Department of Agriculture is working arm-in-arm to make sure that the extensions reach the greatest number of affected Americans. 

Fannie Mae and Freddie Mac

The Federal Housing Finance Agency (FHFA) -- the independent agency that oversees Fannie Mae and Freddie Mac -- is already in front of the change. Just last week, it extended forbearance by three months for borrowers coming to the end of their forbearance period. 

Communities of color 

Government officials said they are also focusing housing relief intent on strengthening communities of color so that they can build the foundation for an “equitable recovery.”

“Extending forbearance policies will provide critical support to homeowners of color, who make up a disproportionate share of borrowers with delinquent loans and loans in forbearance due to COVID-related hardship,” the White House said in its announcement.

For more information

If Biden’s team has learned anything about disseminating information, it’s the importance of providing a centralized resource. Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on what relief options are available, as well as the available protections and key deadlines. 

Where needed, the Consumer Finance and Protection Bureau (CFPB) said it can even help mortgage-holders find a HUD-approved housing counseling agency so they can learn more about paying their mortgage, managing a reverse mortgage, or paying rent.

Additionally, ConsumerAffairs found the additional assistance offered by the FHFA impressive. If you are a homeowner who has a loan owned by Fannie Mae or Freddie Mac and your ability to pay your mortgage is impacted, it is worth checking out the FHFA’s website regarding mortgage issues brought on by COVID-19.