Current Events in December 2022

What were the biggest consumer stories of 2022? The holiday meltdown by Southwest Airlines was a huge event but happened too late in the year to make a full impact on ConsumerAffairs readers.

When we looked back at the stories that drew the most attention from readers this year we found the most interest in scams and class-action settlements that doled out millions of dollars in cash.

Our story in March reporting that “The ‘Zelle scam’ is spreading quickly across the U.S.,” was number one with readers. We continued to report on different variations of the scheme throughout the year and it will no doubt be a topic for stories in 2023. 

Criminals love the peer-to-peer payment app because the money can’t be traced and it's a little less obvious than asking for payment with Target gift cards.

In October, when we asked “Are you a T-Mobile, Subaru, AT&T, Chrysler, DirecTV, GEICO, Avis customer? They may have some money for you,” readers responded with an overwhelming “yes.” It was the number two story for the year.

Some of the settlements were huge but the payments to individual consumers won’t be. We reported that 76 million T-Mobile customers whose personal data was exposed last year will get part of a $350 million settlement.

A lot of interest in tax matters

The third and fourth-place stories covered taxes. Readers showed a lot of interest when we reported “IRS wants taxpayers to get ready for changes and has built a new tool chest to help out.” The tax agency has built out a new set of tools that it says can not only make tax returns easier but can also help taxpayers approach the upcoming tax season with a newfound tax prep swagger.

 “IRS boosts standard deduction for 2023 tax year to account for inflation” drew the fourth-most attention in 2022. Single taxpayers and married individuals filing separately will see a $900 increase, with their standard deduction rising to $13,850 for 2023. For heads of households, the standard deduction will be $20,800 for the tax year 2023, up $1,400 from the amount for the tax year 2022.

Another class action settlement story came in at number five in 2022. In early December we reported “Consumers will share in Experian’s $22.5 million class action settlement.” It turns out the credit agency sent false information about consumers to third parties.

Scams

The sixth and seventh most-read articles warned readers about scams. In August, when we asked “Find an unordered package on your doorstep? You might be a victim of a 'brushing' scam,” it was probably the first many had heard about this new scheme.

Number seven on the list was the Federal Trade Commission’s (FTC) top 10 scams of the year. Demonstrating how criminals have shifted gears from just a decade or two ago, identity theft was number one and imposter scams came in second.

“There’s a pile of money waiting for consumers as part of class action settlements regarding baby formula and margaritas,” we wrote in November. It was the eighth most-popular story of the year.

Growing crime was a major consumer story of 2022 as shoplifting cost both Walmart and Target hundreds of millions of dollars, costs both said will ultimately be passed on to consumers. When we reported in July that “Starbucks responds to rising crime by closing 16 stores,” readers made it the number nine story of the year.

Rounding out the top 10 is, “Social Security Administration changes full retirement age to 67,” a story we published in February. The action is estimated to affect about 70 million Americans and is the biggest change since 1982, when recipients saw a 7.4% increase in benefits. 

As tax season approaches, new guidance from the Internal Revenue Service (IRS) may benefit consumers’ wallets for this year and into the future. The organization is promoting the Saver’s Credit, or the Retirement Savings Contribution Credit, just in time for Americans to start preparing to file their taxes. 

The program is designed to help low- and middle-income earners who contribute to 401(k) plans, Individual Retirement Agreements (IRA), or other retirement programs. The credit can also benefit individuals who contribute to Achieving a Better Life Experience (ABLE) accounts for those with disabilities. 

The Saver’s Credit can help increase consumers’ tax refunds or help reduce what’s owed to the IRS. This year, the credit can be as much as $1,000 ($2,000 for married couples), though that amount isn’t guaranteed. 

Applying for the Saver’s Credit

To be eligible for the Saver’s Credit, the IRS accounts for consumers’ income, marital (and tax filing) status, and the amount they’ve contributed to retirement plans or ABLE accounts. However, because of inflation, the agency has reported that the income limits are likely to be higher than they have been in the past – and continue to increase for next year, too. 

Below are the current criteria to qualify for the Saver’s Credit: 

• Married couples filing separately or singles filing individually with incomes up to $34,000 in 2022 or $36,500 in 2023

• Married couples filing jointly with incomes up to $68,000 in 2022 or $73,000 in 2023

• Heads of household with incomes up to $51,000 in 2022 or $54,750 in 2023

There are also a few limitations for who is eligible to qualify for the Saver's Credit. These include: 

• A student – anyone enrolled in school full-time for at least five months of the calendar year – is ineligible for the Saver’s Credit. 

• Taxpayers under the age of 18 are not eligible for the Saver’s Credit. 

• Any individual who is a dependent on someone else’s tax return is ineligible for the Saver’s Credit. 

The IRA reported that in the 2020 tax year, the average return from the Saver’s Credit was around $186 per qualifying return. In total, nearly $2 billion were claimed on nearly 9.5 million tax returns across the country. 

It’s also important to note that the credits are likely to be less for consumers who have taken money from an ABLE account or retirement plan between 2019 and the official filing deadline for 2022 taxes (April 18, 2023). 

Planning for tax season

It’s not too late for consumers with eligible retirement plans or ABLE accounts to take advantage of the Saver’s Credit for the 2022 tax season. Taxpayers have until the official filing deadline – April 18, 2023 – to contribute money into their Roth or traditional IRAs. Any new retirement plans set up between now and the deadline will also be eligible for the Saver’s Credit for 2022. 

However, for traditional workplace retirement plans, all contributions must be made before the end of the year. This includes: 401(k) plans, 403(b) plans for public school employees and tax-exempt organizations, Governmental 457 plans for state and local employees, and Thrift Savings Plans for federal employees. 

The IRS recommends that employees start planning with their employers for their 2023 contributions. In the meantime, a full list of retirement accounts that are eligible for the Saver’s Credit is available here. 

If a new car is on your wish list for the New Year, there’s good news and bad news.

The good news is the supply situation is much improved from a year ago when dealers didn’t have enough cars to meet demand. The bad news? Sharply higher interest rates make the monthly payment less affordable.

While supply chain issues have largely been resolved, a major reason for the increase in inventory is dealers are selling fewer cars. According to Cox Automotive, inventory levels have been steadily rising since late summer, giving car shoppers more choices. 

The supply gains, however, have been uneven, with many bestsellers from Asian automakers hard to find, while many of Detroit’s top products have ample supply. That required some consumers to either compromise or postpone their purchase.

But waiting could carry a price. As inventory improved, the Federal Reserve's aggressive interest rate increases have driven auto loan costs to levels not seen in more than 20 years, pushing some shoppers out of the market due to vehicle affordability concerns. That resulted in a decline in sales.

“This December, there were fewer giant red bows than dealers would have liked,” said Charles Chesbrough, senior economist at Cox Automotive. “Given the large improvement in supply levels, it seems likely that rising interest rates are now constraining demand in the retail auto market. With record-high prices and elevated loan rates, the pool of potential new-vehicle buyers is shrinking.” 

Here's how the slowdown may benefit consumers

But the sales slowdown has had an added benefit for consumers. Earlier this year many dealers were charging buyers well above the manufacturer’s suggested retail price (MSRP). Today, dealers are back to accepting below the sticker price, especially on certain brands and models.

Cox Automotive analysts say car sales may continue to slow in 2023 because the Fed is not finished raising a key interest rate. Every time that rate goes up, the interest rate on car loans rises as well.

That could be an advantage for car shoppers in the New Year if they are flexible. Supplies of the most popular vehicles may improve, but if demand remains strong for them dealers and manufacturers may be less likely to offer financial incentives.

However, if dealers find themselves with growing inventories of less popular models they may be required to offer below-market financing and cash back in order to move inventory.

Is the car you're renting safe for you to drive? Maybe...maybe not.

The National Highway Traffic Safety Administration (NHTSA) says it's received information indicating that Hertz rented vehicles to customers from 2018-2020 without required recall repairs performed on some vehicles.

NHTSA says it will investigate to determine whether Hertz complied with the requirements of the National Traffic and Motor Vehicle Safety Act.

The act requires -- among other things -- that a rental company not rent a vehicle subject to a safety recall unless the recall remedy has been performed.

Of particular interest: Nissan and Ford

Nissan had 31 recalls during that period affecting some 5 million vehicles.

Among them was one in September 2019 for 1.2 million vehicles in which the rearview camera might not display an image.

Ford, meanwhile, had 31 recalls from 2018-2020 involving more than 5 million vehicles.

One of the largest was in March 2018 for 1.3 million vehicles in which the steering wheel could detach while the vehicle was being driven.

It's not clear if any of the vehicles listed above were rented by Hertz customers.

Cooperation from Hertz

Hertz says it's aware of the government inquiry and that its policies require removal of vehicles that are under a safety recall from its rentable fleet.

“We look forward to working with NHTSA on their review,” said Hertz spokeswoman Lauren Luster.

If you found some extra cash in your stocking, major retailers are lining up with sales to encourage you to spend it. Like it always is, any store that has holiday items on its shelves wants to get rid of them.

DealNews shared research with ConsumerAffairs that holiday decorations and candy are the deals most consumers go for, and this year Kohl’s, Belk, Bloomingdale’s, and Target are leading the way with 70%, 75%, 65%, and 50% off, respectively, on holiday decor.

As for candy, the Krazy Coupon Lady found the perfect answer for those with a sweet tooth – the pound-size Snickers Slice n' Share Giant Candy Bar which was $10 on Amazon, is now just $3.99.

Clothing and more up to 85% off

Banking on 2022 mirroring 2021, DealNews said that about 24% of the deals it saw between Dec. 26 and Jan. 1 were for clothing and accessories of some kind. One of the most popular offers during that time was a sale at Uniqlo.

“It knocked up to 80% off men's clothing, with prices starting at $6 for shirts, $15 for hoodies, and $20 for pants,” DealNews’ Julie Ramhold said.

ConsumerAffairs also found an extra $10 coupon for people who sign up for Uniqlo’s e-blasts and spend $75 or more on their first order.

Ramhold added that the period between Christmas and New Year’s is also a great time to shop at off-price stores like Nordstrom Rack. When ConsumerAffairs checked the retailer’s site, it was offering up to 80% off, mostly on shoes, but all other categories were loaded with 60% off deals.

Other retailers that are in deal mode included:

Tractor Supply – up to 60% off

Crate & Barrel – up to 70% off

Gap Factory – up to 75% off

Home Depot – up to 70% off

Lenovo – up to 85% off

If you can wait until January…

Ramhold’s sales forecast for the first of the year holds great promise for consumers who are shopping in five categories: small appliances, bedding/white goods, fitness equipment, gym memberships and winter clothing.

“Chances are, the discounts are at least partially due to New Year's resolutions around eating healthier or dining more at home, rather than relying on takeout,” Ramhold said.

“Because of that, you can expect to see a variety of small kitchen appliances for $15 each, including panini presses, nonstick electric skillets and electric egg cookers.”

And for those of you who didn't get that big-screen TV you were kvetching about, all's not lost. With the Consumer Electronics Show coming in January, TV manufacturers are eager to unload whatever they can to make room. Last January, Best Buy knocked up to 30% off and Target 25% off on certain TVs. Those retailers are likely to do it again.

As Americans prepare to file their 2022 taxes in the coming months, staying on top of the latest changes and updates can help make the process easier. 

The Internal Revenue Service (IRS) has now released a frequently asked questions (FAQ) list to help guide consumers through two of the biggest changes this year: energy efficient home improvements and residential clean energy property credits. 

The agency explained that following the passing of the Inflation Reduction Act, many of the tax credits, credit limitations, and eligible expenditures have changed since consumers last filed taxes. 

What to expect

While the new FAQ breaks down the changes related to energy-efficient home improvements and clean energy property credits, the document first provides this general overview of the Residential Clean Energy Property Credit: 

“The residential clean energy property credit is a 30% credit for certain qualified expenditures made by a taxpayer for residential energy efficient property. The IRA extended the residential clean energy property credit through 2034, modified the applicable credit percentage rates, and added battery storage technology as an eligible expenditure. The credit applies for property placed in service after December 31, 2021, and before January 1, 2023. The credit percentage rate phases down to 26% for property placed in service in 2033, 22% for property placed in service in 2034, and no credit available for property placed in service after December 31, 2034.” 

From there, users can explore the document in-depth to learn more about: 

• Energy Efficient Home Improvement Credit: Qualifying Expenditures and Credit Amount

• Residential Clean Energy Property Credit: Qualifying Expenditures and Credit Amount

• Energy Efficiency Requirements

• Qualifying Residence

• Labor Costs

• Timing of Credits

• General Questions

• Examples 

Deeper dive

Each section dives deeper into these topics to help consumers get detailed insights into what to expect when filing taxes. This includes:

• Which home improvements are eligible for the Energy Efficient Home Improvement Credit
• What residential clean energy expenditures are eligible for a Residential Clean Energy Property Credit
• What energy efficiency requirements must be met to qualify for the Energy Efficient Home Improvement Credit, what type of residence qualifies for the credit
• Whether existing homes are eligible for the credit
• Whether residences used as businesses are eligible for the credit
• Whether taxpayers can include the cost of labor, and more. 

The IRS utilizes FAQs as a way to quickly share new information with taxpayers that is widely asked about and applicable throughout tax season. While these documents are subject to change, they serve to be beneficial guides for consumers. 

To access the full FAQ on energy efficiency home improvements and clean energy credits, click here. 

American consumers owed nearly $1 trillion in credit card debt in the third quarter, according to data from the Federal Reserve Bank of New York. With the just-past Christmas holiday, that total is likely to go even higher.

One problem with credit cards is that unless you consult your online account two or three times a week, it’s hard to keep track of spending. So, many Gen Z consumers have started using a “new” budgeting trick that turns out not to be new at all.

It’s called “cash stuffing.” Lily W., a 22-year-old who offers personal finance advice on TikTok, says she lived on credit cards while attending nursing school. When she graduated, her balances totaled $17,000.

Lily, who goes by the handle @lilyrnbudgets, recently told Yahoo News that she paid off the entire $17,000 in just three years, thanks to cash stuffing. Instead of buying things with a credit card, Lily has switched to a cash system, which she explains in this video.

Actually, cash stuffing is an old-school system used by many older generations at some point in their lives. Personal finance radio personality Dave Ramsey advocates much the same budgeting system to his listeners, only he calls it the “envelope system.”

The envelope system lets you separate cash into different envelopes for different spending. After labeling each envelope with a category of spending, you go to a bank or ATM and withdraw the budgeted amount and place the cash into each envelope.

Limit some spending categories to cash

When you head to the supermarket, you leave your credit card in your wallet and take the amount of cash you think you’ll need. When you return, you replace any unspent money. At the end of the week, before you put the next week’s cash in the envelope, you take any leftover money and put it in savings.

The system might not be necessary for every spending category and may prove most helpful for the categories where you tend to go overboard.

The secret to this system’s effectiveness is the tight control it exerts over spending, making you think long and hard about every purchase. Because when the money in an envelope is gone, spending in that category has to stop until the following week.

“I have been a satisfied Southwest customer for years until experiencing the utter chaos that was Southwest over the holiday weekend,” Rhonda, of Fair Oaks, Calif., wrote in a ConsumerAffairs review when her flight was canceled with little notice.

Rhonda told us Southwest waited until the very last minute to notify travelers that their flights were being taken off the board, causing a domino effect of stranded passengers and unattended piles of luggage she said had been “heaved” all around the airport.

“I feel traumatized by the whole experience and I will definitely think twice about flying again!” she said.

But she’s not alone, nor will she be over the next few days. On Tuesday, Southwest canceled 2,570 flights according to FlightAware and has already canceled another 2,477 for Wednesday, and 917 on Thursday.

What to do

So, what is Rhonda to do? In an email to ConsumerAffairs, a Southwest spokesperson said that “when a carrier-controlled delay is a factor, …we already do other-airline rebooking when Southwest is not an option.”

Unfortunately for many fliers, Southwest flies out of secondary airports where it’s the only airline, leaving no other airline to easily put stranded passengers. In situations like that, a passenger would endure the hassle of taking a cab across town like they would have to in Dallas to go from Love Field where Southwest is the only airline to DFW that all the other major carriers serve. 

But if you take a look at the weather forecast, things could get worse. Southwest has already said that its short-term plans are to operate a third of its schedule “for the next several days,” hopefully to get some breathing room. However, without a complete reset of the carrier’s dominoes, it’s tempting fate if the New Year’s surge creates another round of chaos as travelers try to return home Sunday and Monday.

Hogwash, says a consumer watchdog

In response, U.S. PIRG Consumer Watchdog Teresa Murray said: "Unreliable airline travel has been an ongoing nightmare for more than two and a half years and now caused anguish for so many families looking forward to gathering for the first time since 2019 before the pandemic started. The tales of passengers who spent the holiday weekend sleeping on the floor at an airport are heartbreaking.”

“While the awful weather isn’t anyone’s fault, the way travelers were treated and accommodated – or not – sits squarely on the shoulders of most of the airlines,” Murray said in a statement to ConsumerAffairs.

Among the stranded? How to get help.

In a statement, Southwest said it would offer affected passengers either a refund or a voucher with no expiration date. Murray emphasized that passengers should not take their rights lightly nor should they take the first thing an airline offers them.

“If they choose to accept a credit or voucher, it’s important to understand how they work at each of the 10 largest domestic airlines,” she said.

What exactly are your rights if your flight is canceled? The U.S. Department of Transportation spells it out this way:

• If your flight is canceled, most airlines will rebook you for free on their next flight to your destination as long as the flight has available seats.
• If your flight is canceled and you choose to cancel your trip as a result, you are entitled to a refund for the unused transportation – even for non-refundable tickets.  You are also entitled to a refund for any bag fee that you paid, and any extras you may have purchased, such as a seat assignment.  
•  If the airline offers you a voucher for future travel instead of a refund, you should ask the airline about any restrictions that may apply, such as blackout and expiration dates, advanced booking requirements, and limits on number of seats.

The second point is important. You do not have to accept the alternative travel and if you cancel your plans you are due a refund -- not a voucher for future travel, but a refund.

The DOT recently issued a strong rebuke and large fine for Frontier Airlines on that very point.

And if all else fails, filing a complaint with the DOT has been known to get an airline’s attention.

If fraudsters get their way in how they finish out 2022, Americans will have lost close to $372 million dollars to those cyber creeps. And it’s likely to go higher. For the last two years, the median amount of money stolen from people in online shopping fraud cases has risen every quarter.

Using data from the Federal Trade Commission, All About Cookies – an informational website devoted to helping people with online privacy, identity theft prevention, antivirus protection, and digital security – says that the post-holiday forecast is even scarier because as consumers have moved a lot of their purchasing power online, it’s making them more susceptible to having their money and identity stolen by cyberthieves. 

If you live in Virginia or West Virginia, sorry to break the news, but…

Overall, the District of Columbia, Delaware, and New Hampshire are the states with the highest incidence of online fraud, but once St. Nick is out of sight, things change dramatically.

The states where online shopping fraud increases the most after the holidays shake out like this:

1. Virginia: 27.8% increase in fraud

2. West Virginia: 18.7%

3. Wyoming: 18.4%

4. Texas: 17.8%

5. Vermont: 15.1%

6. Ohio: 13.5%

7. Washington State: 12.9%

8. New Mexico: 12.1%

9. South Carolina: 10.8%

10. Mississippi: 10.8%

What to keep an eye out for

According to the FBI, the prevailing champions of holiday scams are non-delivery and non-payment schemes. A non-delivery scam is where a buyer pays for goods or services they find online, but then those items never show up. A non-payment scam involves goods or services being shipped to a consumer/buyer, but the seller is never paid.

Two other scams that frequently pop up between Christmas and New Year are auction fraud, a scam where a product is misrepresented on an auction site, and gift card fraud, when a seller asks a consumer to pay with a prepaid or gift card.

Steps you can take to protect yourself

All About Cookies’ threat researchers say the tried-and-true methods security analysts have been preaching to consumers for years still reign: 

• Use antivirus and anti-malware software

• Create strong passwords

• Don’t click on links in emails

• Call the company directly instead of responding to emails that ask for payment

• Only use secure websites when shopping online (ones where the url begins with https://), etc.

But the one that the researchers suggest might have the most muscle is installing identity theft protection software.

“Identity theft protection software can monitor your credit file, your financial information, and internet websites to detect the misuse of your data,” All About Cookies’ Josh Kobert told ConsumerAffairs. 

“There are many different software programs out there, including Aura, Norton LifeLock, Identity Guard, and ReliaShield that offer credit monitoring and identity theft protection services.”

If you’re interested in finding out more about identity theft protection, ConsumerAffairs has a complete guide to those services available here.

And, now may be a good time to purchase identity protection. ConsumerAffairs found good discounts being offered for Norton LifeLock (66% off), IdentityForce (33% off), and Identity Guard (50%) off.

With raging inflation, volatile gas prices, rising mortgage rates and a collapsing housing market, 2022 was packed with important consumer news. Our coverage drew attention, not only from readers but also other media outlets.

For example, in July when home prices were at their peak, we explained what it means to be “house poor.” Two thousand other websites linked to the piece, which was designed to help would-be homebuyers understand all the costs associated with homeownership.

We also helped consumers better understand and care for the technology they use every day. In June we reported “The hot summer heat plays havoc not only with people, but smartphones too.” Among the advice we offered was a list of apps that monitor how much heat your device is absorbing. Three hundred thirty-two other media outlets linked to the story to help their readers.

Our coverage of scams also drew a lot of interest during the year. In March we reported “The ‘Zelle scam’ is spreading quickly across the U.S.” Since then scams involving the peer-to-peer payment app have multiplied, victimizing thousands of people. 

Consumer products, good and bad

Our coverage of consumer products, both good and bad, also drew a lot of interest. In April we reported that “Benjamin Moore ranks first with consumers doing interior paint jobs,” based on a survey by J.D. Power and an analysis of ConsumerAffairs reviews.

“I recently painted over a damaged surface with a Benjamin Moore light pastel over old dark red paint,” Trina, of Burbank, Calif., wrote in a ConsumerAffairs review. “It only took a few coats and now the walls look almost professionally done even though I'm an amateur. I highly recommend this paint.”

Stories about privacy were also front and center during the year as several large companies reported data breaches. Even non-profits were not immune to hackers. We started the year telling readers that Goodwill suffers another customer data hack, a story linked by 41 other sites.

Also in January, our story reporting that Vanilla Prepaid gift cards trigger a string of post-holiday complaints created a lot of interest, especially since so many consumers ran into the problem. 

“I bought a $100 Visa Card gift card a few weeks before Christmas, and I still can not use it,” Irina, of Wylie, Texas, wrote in a ConsumerAffairs review. “First of all, I was unable to access my card balance or register it. After trying repeatedly to access my card with no result, I called customer service on the back of the card and I was told that my card was deactivated for security reasons.” 

Andrea, of Buffalo, N.Y., had an even more intriguing experience. After buying a $100 gift card for her son, the card had a zero balance. She says she was told that right after the card was activated, the funds were withdrawn and used to register an internet domain. 

A surge in gas prices

All year long we covered the rapid rise in gasoline prices and the impact it was having on consumers. During the pandemic, when gas was cheap, the sale of recreational vehicles (RV) soared as Americans hit the road. But at the end of March, we reported “High gas prices have RV campers changing their plans.”

In 2021 we covered the rise of Bitcoin. In 2022 we covered its fall. In May we reported “Bitcoin's value continues falling to under $27,000.” That was in May. It’s now around $16,000.

The rise of mortgage rates this year turned the housing market upside down. Suddenly, record-high home prices kept many would-be buyers as renters. In April, 155 other sites linked to our story “More homeowners associations are seeking to limit rentals.”

It was a  record year for recalls, especially automotive recalls. Manufacturers recalled millions of vehicles for everything from lethal airbags to faulty backup cameras. “These cars haven’t been recalled, but maybe they should be” featured cars that haven’t been recalled but their owners have reported problems.

Over 100 Sears Hometown stores across the country are closing for good, and this translates into major savings for shoppers. 

Consumers who have been thinking about making any big home appliance purchases may want to head to their closest Sears Hometown store to compare prices as company officials have said that there is nearly $40 million in inventory that needs to be sold – all at a significant discount. 

“This truly is an extraordinary buying opportunity for communities across America,” said Arnold L. Jacobs, executive managing director at Tiger Capital Group, one of the companies working on the final sales for Sears Hometown stores. “These 8,000 to 10,000 square-foot stores are filled with in-demand tools and home appliances. 

“It’s everything from Craftsman socket sets, Workpro power tools, and Kenmore washing machines to Honda riding lawnmowers, Eureka vacuum cleaners, and DieHard tool cabinets. As compared to the original price, the discounts are as high as 40 percent. That can go even higher in the case of floor models and scratch-and-dent models.” 

Making big purchases for less

There are currently 115 Sears Hometown stores still open across 36 states and Puerto Rico. Arkansas tops the list of states with the greatest number of such stores with a dozen. 

However, other states with Sears Hometown stores – and these liquidation sales – include: Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Tennessee, Texas, Vermont, Washington, Wisconsin, and Wyoming. A full list of stores is available here. 

While three companies are handling the final sales at Sears Hometown stores – Tiger Capital Group, SB360 Capital Partners, and B. Riley Solutions -- consumers can expect to have all of their appliance questions answered by local store associates. In addition, shoppers can protect their purchases with warranties from outside companies. 

“These sales also come at a time of high inflation and continuing supply-chain disruptions, making them all the more relevant for American consumers,” said Siegried A. Schaffer, COO of SB360. “The home appliances, tools, and other products by Sears Hometown are everyday necessities for most households, and with today’s economic environment, every bit helps.” 

The Federal Trade Commission (FTC) has announced how it plans to distribute $245 million of a $520 million settlement with Epic Games, the maker of the Fortnite video game. Players and parents of children who play the game may be in line for compensation.

According to the FTC, the company charged parents and gamers of all ages for unwanted items and locked the accounts of customers who disputed wrongful charges with their credit card companies.

The FTC plans to make refunds available to:

• Parents whose children made an unauthorized credit card purchase in the Epic Games Store between January 2017 and November 2018

• Fortnite players who were charged in-game currency (V-Bucks) for unwanted in-game items (such as cosmetics, llamas, or battle passes) between January 2017 and September 2022

• Fortnite players whose accounts were locked between January 2017 and September 2022 after disputing unauthorized charges with their credit card companies.

No action is required right now

The agency has not disclosed when it plans to begin the distribution of the funds. If you believe that you are eligible for a payment, you don't need to do anything right now. 

“When we have more information about the refund program, we will post updates here and send email notices to customers who paid for in-game purchases,” the FTC said.

Officials suggest that people who think they are eligible bookmark FTC.gov/Fortnite and check back often for updates. You can also sign up here to get email updates about the refund program.

Since a lot of money is involved and so many people may be eligible for compensation, the FTC warns consumers to beware of scammers who try to take advantage of the situation. The FTC said it never asks you to pay to file a claim or get a refund. Don't pay anyone who promises you an FTC refund in exchange for a fee.

If you’re finished wrapping presents, it’s time to give yourself a gift: boning up on the naughty things that can happen to people online to make their holiday a royal disaster.

ConsumerAffairs has compiled a list of traps consumers can fall into if they’re not careful and ways to keep themselves – and their money and credit – safe.

Check out charities before you give. December is prime time for charities because they know that many people will be looking for last minute tax deductions. And what do charities do best? Tug at someone’s heart strings. “But scammers might do that too,” Terri Miller, a consumer education specialist with the FTC says. 

“So before you donate to a charity, check them out on Better Business Bureau's (BBB) Wise Giving Alliance, Charity Navigator, Charity Watch, or Candid. If you find anything that worries you about the organization, find another way to give to the cause.”

Don’t be so quick to click on tracking updates. With the flurry of deliveries still going on and consumers tracking their packages, Kevin Roundy, Senior Technical Director of Norton Labs told ConsumerAffairs that hackers will take advantage of the chaos by mimicking big retailers like Amazon and share links indicating there is something wrong with your order. 

The FBI says there are two ways to avoid this:

• Always get tracking numbers for items you buy online, so you can make sure they have been shipped and can follow the delivery process.
• Be suspect of any credit card purchases where the address of the cardholder does not match the shipping address when you are selling. Always receive the cardholder’s authorization before shipping any products.

Keep an eye out for fake websites. Check Point Research recently found close to 15,000 fake websites that cyberthieves had built to sell heavily-discounted designer handbags like Dior and Louis Vuitton. The only sensible way around this is not to buy from a store you’ve never heard of.

“Before making a purchase, it is important to authenticate the site we are using to make the purchase. So, instead of following a link sent through on email or text message, go directly to the retailer by searching for them on your selected browser and locating the promotion yourself.” Check Point fraud analysts said. 

Be wary of password reset emails. A new trick fraudsters are working over the holidays are password reset emails. Check Point suggests that if you get one of those emails, DO NOT click on any of the links, but rather visit the website directly and change your password there.

Check or freeze your credit report. During the holiday season, there’s usually a spike in credit fraud. Unfortunately, it’s done quietly and in the shadows and often goes undetected until it’s too late. 

There are two things consumers can do to keep credit fraudsters away. One is to watch their credit report like a hawk. The second one – and maybe a smarter one – is to freeze your credit report. All of the major credit bureaus will allow people to do that for free and it limits access to their credit reports. 

When it comes to using Buy Now, Pay Later (BNPL) for any 11th-hour holiday gift purchases, the Federal Trade Commission (FTC) says consumers should stop now and think about it later.

Not that BNPL isn’t a good option for some, the agency suggests, but it can also lull consumers into buying more than they can truly afford. And if someone isn't careful with their usage of BNPL, there could be a nasty downside.

If Buy Now, Pay Later is new to you, it’s simply a credit option where a payment schedule splits your purchase amount into a specified number of payments. For example, you pay the first one at checkout, and then one payment every two weeks for six weeks.

“Using Buy Now, Pay Later can be convenient, and usually free from interest charges,” the FTC said in an email to ConsumerAffairs. “Still, if you choose Buy Now, Pay Later, there are a few things you may want to watch out for.”

Limit the number of BNPL purchases. Because you can make multiple Buy Now, Pay Later purchases through different services or merchants in a short time, it’s easy to end up with more debt than you intended, or can afford, the FTC says.

An associated problem with items bought using BNPL is if an item gets returned. The agency warns that even though you may be able to return the merchandise – and may eventually get credit – your loan repayment agreement may require you to continue to make payments while you are returning or disputing a purchase until your return or dispute is resolved.

“And, because there are three different companies involved – the Buy Now, Pay Later company, the seller, and your financial institution – it can be challenging and stressful to resolve a problem.

Don’t think of this as a “quick fix.” “Using Buy Now Pay Later may immediately feel like the better option but it can lead to a financial hangover once reality sets in come January,” Trey Loughran, CEO at Purchasing Power, a company that offers credit using a payroll deduction component, told ConsumerAffairs.

Loughran said that in addition to the terms and conditions, they need to pay extra attention to the number of agreements they may be making. 

“Failing to make an agreed-upon payment for a Buy Now Pay Later can have compounding effects – requiring the consumer to pay late fees and potentially impacting someone’s credit score,” he said. “At the end of the day, Buy Now Pay Later solutions are another form of credit and consumers need to be conscious not to overextend themselves.”

Are you aware of the connection between BNPL and your bank account? Most consumers are used to getting credit card statements and having a grace period to pay those, but BNPL works differently. Buy Now, Pay Later products generally require installment payments to be set up for automatic payments, usually debited from your bank account instead. 

You might be hit with multiple late fees. Again, another difference between credit cards and BNPL that many consumers are blind to – the use of interest vs. fees.

“Some Buy Now, Pay Later services charge multiple late fees for a single missed payment, or try more than once to collect automatic payments from your checking account if they don’t go through. This could mean you pay higher late fees than you expected or incur multiple overdraft fees,” the FTC said.

Do you like being hounded by calls from creditors if you’re late in paying? When ConsumerAffairs reviewed the FTC’s database of complaints regarding BNPL, there were numerous worrisome narratives from consumers.

Those included complaints about receiving calls and letters from collection agencies, being “retaliated against” by a BNPL company after a complaint was filed, and claims made that BNPL accounts existed for some consumers even though they had never applied for one.

Being hassled is no fun, so add that to your “do I really need to put this purchase on BNPL” list.

Please, please, please buy more. Speaking of being hounded, the FTC says that many Buy Now, Pay Later services and apps use your data and shopping history to encourage you to buy more and spend more.

The FBI warns that a "staggering" number of teenagers and young boys have been victimized by a “sextortion” scam this year that is aimed at extorting money from the victims. The scammer poses as a young girl and persuades the victim to text a sexually explicit photo of themselves.

The scammer then threatens to distribute the photo unless a payment is made using gift cards. Parents should warn their children about this scam, especially since “sexting” by minors is legally considered the distribution of child pornography. The scam has been tied to more than a dozen suicides.

“Met this girl on an app called wave,” one victim posted on Reddit. “She sent me a picture, I sent one back. (She) threatened to send them to my followers on insta(gram). Not heard anything of it at school.” 

A text from your own number

Scammers have figured out how to send a text that appears to be coming from the victim’s own phone. Why? Because they know it will get the victim’s attention. The messages vary. Some say “thank you” for a recent purchase that the victim didn’t make.

Without thinking, the recipient may click on a link to see what the purchase is. Big mistake. It downloads malware and tells the scammer it’s a working phone number, which is then sold to other scammers. Bottom line, if you get a text from your own number, it’s a scam.

Missed delivery scam

With the arrival of the holidays, scammers have stepped up the missed delivery scam, sending out texts saying a retailer or shipping firm was unable to make a delivery. Since you no doubt have been getting packages this month, it might seem legitimate.

The aim of the scam varies. The text may ask you to click a link, which downloads malware. Some lead to fake websites where you are instructed to enter personal information.

U.S. Customs imposter scam

Chances are you know someone who lives in another country. So what would you do if you got a call from someone identifying themselves as a U.S. Customs agent who said the government intercepted an illegal product that was being shipped to you.

The “agent” says you could be in a lot of trouble and would likely face arrest. But you are told you may be able to resolve the matter by making a payment. In gift cards.

Sweepstakes scam

Believe it or not, one of the oldest scams around never seems to die and this week picked up momentum, maybe because everyone seems to need a little extra money around the holidays. You get a call, text, or email telling you that you have won a big cash prize in a sweepstakes that you didn’t enter.

To claim the prize, however, you must pay taxes and fees that amount to several hundred dollars. But when you wire the funds your fake sweepstakes winnings disappear, along with your money. Remember, you can’t win a sweepstakes you didn’t enter.

Many major retailers, like Walmart, Amazon, and Target, are offering consumers deals on last-minute gift ideas. 

With the holidays just days away, it’s still not too late. BJ’s Wholesale Club will host HoliDeals – discounts on toys, electronics, small appliances, and more – through Christmas Eve. 

“There’s an undeniable amount of excitement that is associated with holiday shopping,” said Rachel Vegas, chief merchandising officer at BJ’s. “It goes beyond just getting a great deal. People seem to really enjoy the process of selecting a special gift for everyone on their list. There’s a sense of accomplishment that our members have once they find the item they’ve been searching for, and we are happy to deliver that ‘treasure hunt’ experience, at an excellent value to our members.” 

A closer look at the deals

BJ’s is running sales on dozens of popular gift items. Currently, shoppers can expect to save up to $330 on tech deals, up to $95 on toy deals, and up to $60 on small appliance deals. 

Here’s a closer look at some of the items that are currently on sale through Christmas Eve: 

• Alpha Gaming Keyboard, Mouse, and Headset Bundle: $19.99 

• Marvel Avengers: Endgame Titan Hero Series, 4-Pack: $19.99

• Fitbit Versa 2 Smartwatch with Bonus Bands: $99.99

• XBox Series S Console with Wireless Controller Bundle: $234.99

• TCL 65-in 4K Roku Smart TV: $377.99

• Propel 15-foot Trampoline: $259.99

• HP 15.6-in Touchscreen Laptop: $349.99

• Pacman 5 Games in 1 Countercade: $99.99

• Berkley Jensen Riviera DollHouse: $74.99 

BJ’s Wholesale Club members can access the hundreds of items that are part of the HoliDeals sale here. Everything from last-minute gifts, last-minute decorations, and even ingredients for holiday dinner are available at low places. 

To save time this holiday season, and make shopping more convenient, shoppers can place their orders online and opt to pick them up in-store. For last-minute shoppers, stores will be open on Christmas Eve until 6:00 p.m. local time. 

If you’re flying somewhere over the holidays, the Transportation Security Administration (TSA) says you should be prepared for changes going through security. And, you should be prepared for more fellow travelers than you’ve seen since before the pandemic.

“We are prepared for the increased volume and expect to meet our wait time standards of 30 minutes or less in standard lanes and 10 minutes or less in TSA PreCheck lanes. However, there may be some situations where the capacity of a checkpoint is exceeded,” said TSA Administrator David Pekoske. 

ConsumerAffairs went through the TSA’s laundry list of suggestions and found some things that travelers might not be aware of.

Flying on Thursday, Dec. 22 or Friday, Dec. 30

If you’re going anywhere on Dec. 22 or Dec. 30, get to the airport early and be prepared for crowds. Those days may be among the most hectic of the holidays. Plenty of patience may be required. 

Trying to get a gun through security could cost you dearly

Travelers and firearms have become a major pain point for the TSA. This year, TSA officers intercepted a record 6,301 firearms – more than 88% of those were loaded. Passengers who attempt to bring a firearm through a checkpoint can expect to receive a fine up to $15,000, plus they’ll lose eligibility for TSA PreCheck, and local law enforcement will be called in.

In addition to firearms, there are other items not permitted at the checkpoint. These include explosives, flammables, knives, razors and replica weapons. To see if an item is prohibited, check the TSA website under “What Can I Bring?”

But, if you baked a cake for Aunt Annie, you can bring that along. As always, passengers may bring solid foods such as cakes and other baked goods through the TSA checkpoint.

Make sure gifts are unwrapped

You’ve already wrapped the gifts you’re taking? Sorry. TSA says you might have to unwrap those – especially ones with lids – so they can inspect those items if they’re curious about the contents. Instead, the agency prefers travelers place their unwrapped gifts in their checked bags as opposed to carry-ons.

Is your ID 'acceptable'?

ID requirements have changed a bit, as have how to show your ID. At many airport checkpoints, a security officer may ask you to insert your physical ID into one of the agency’s new Credential Authentication Technology units. 

There’s a special new perk for people who live in Arizona, Colorado, and Maryland when it comes to showing their IDs. They can use their Apple mobile device to store their ID in Apple Wallet and use their mobile device in certain TSA PreCheck lanes at participating airports.

Ask for help – in advance

If you’re traveling with someone who is disabled or has a particular medical condition, you should contact the TSA Cares helpline at 855-787-2227 at least 72 hours prior to travel. TSA Cares can help with any questions about screening procedures, help you find out what to expect at the security checkpoint, and even arrange for assistance at the checkpoint for travelers with specific needs.

Since most of us have taken to texting, the TSA has, too. If you have questions that you want quickly answered, you can get assistance in real time by submitting your questions and comments to @AskTSA on Twitter, Facebook Messenger and via text message using any mobile device to “AskTSA” (275-872). 

As a word of caution – when ConsumerAffairs tried out the text option, we found out that you need to use simple, short phrases such as “damaged passport.” Asking a question got us nowhere and you’re likely to experience the same