Current Events in April 2023

Could it be that what happened to the housing market has now affected the automotive market? Prices have jumped and so have interest rates, meaning fewer new cars are affordable for the typical buyer.

Consider this: Five years ago the average new vehicle transaction price was $35,794. Last month, according to a new report from automotive publisher Edmunds, it was $47,713. That means the average price consumers pay for a new car or truck has risen 33% in just five years.

Remember when there were lots of new cars with price tags at $20,000, and sometimes even less? Good luck finding one these days. 

Take a look at Edmunds’ transaction data from March 2023 compared to March 2018:

• 0.3% of new vehicles sold were $20,000 or under, compared to 8% five years ago.

• Just 4% of new vehicles sold were $25,000 or under, compared to 24% five years ago.

• 17% of new vehicles sold were under $30,000 compared to 44% five years ago.

What happened? Two things actually. Automakers began phasing out small, inexpensive sedans because they weren’t all that popular and, more importantly, had smaller profit margins. At the same time, consumers began buying more expensive vehicles because they could finance them for seven years.

Is $60,000 now the norm?

Edmunds transaction data from March 2023 compared to March 2018 reveals:

• 17% of vehicles sold were $60,000-plus compared to 6% five years ago.

• 10% of vehicles sold were $70,000-plus compared to 3% five years ago.

Edmunds’ research also shows that five years ago, only 5% of full-size pickup trucks sold for more than $60,000. Last month, 50% did.

SUVs have always cost more than sedans and five years ago, 54% of large SUVs carried a sticker price above $60,000. Last month, the percentage was 94%.

It’s worth noting that during most of that five-year period money was cheap. New car interest rates were around 3% – sometimes less. Now they are around 7%, meaning monthly payments are through the roof.

The Washington Post recently reported that the average monthly payment for a new car or truck was a record $730 in the first quarter, up from $656 in 2022. What's more, 16.8% of car buyers are paying $1,000 or more a month.

This squeeze shows no sign of ending anytime soon. The March Consumer Price Index (CPI) shows the price of new cars rose another 0.4% last month while used car prices continued to fall.

If you’re one of the 100 million U.S. taxpayers who have yet to file your taxes before the April 18 deadline, you might be hearing from some scammers who are out to make your life miserable and their lives richer.

And why not? Scammers made some $75 million off of IRS imposter tax scams in recent years, so in their mind, it’s “nothing ventured, nothing gained.” 

Steven Weisman at Scamicide alerted ConsumerAffairs to one particularly problematic issue for those who are filing electronically. Weisman says that his scam detectors are picking up the nasty scent of TurboTax impersonators calling unsuspecting taxpayers and telling them that their electronically filed income tax return has been rejected by the IRS.  

Once the identity thief gets someone’s interest, they then attempt to lure the victim into providing personal information including their Social Security number. Weisman said that in order to make the scammer’s call appear legitimate, they will use a technique called "spoofing" to manipulate a person’s Caller ID so that the call looks like it has come from TurboTax.

“As I often say, trust me, you can't trust anyone, particularly someone who is asking for you to provide sensitive personal information.  In this case, it is important to note that TurboTax will not call you if your tax return has been rejected unless you have specifically requested a call,” he said.  

What do you do if you receive one of these calls? The simplest answer is to hang up, but if a taxpayer wants to verify if the call is legitimate or not, they can call TurboTax at its customer service number of 1-800-446-8848.

Preparer fraud can have longterm effects

Let’s face it – doing your taxes can be a hassle, especially if you’re not clued into all the changes regarding deductions, child tax credits, etc. And that’s another wrinkle that scammers are trying to profit from – preparer fraud.

John Waggoner from AARP’s Fraud Watch Network described the setup like this: “The criminals set up shop as expert tax preparers and promise big refunds. For a fee, they fill out a return filled with trumped-up tax deductions and credits, with your name on the return. When the refund rolls in, it will go to their own bank accounts. By the time you come looking for them, they’ll be long gone.”

What are Waggoner’s warning signs that a tax preparer may be a fraud? He suggests the first stop being the IRS’ database of legitimate tax preparers. If the person on the other end of the phone refuses to sign the return or enter a Preparer Taxpayer Identification Number, drop everything and cut them off because the IRS requires both.

If you don’t, it’s not bad for them, but bad for you because the IRS will initially assume that it’s you who attempted tax fraud. 

Checking the IRS’ database needs to be done early, too. If you don’t put the brakes on a fraudulent tax preparer in the initial stages of doing business with them, things can get worse – much worse.

“If that person is willing to lie to get your business, they probably are willing to use your information to steal your identity,” says Rosario Mendez, an attorney with the Division of Consumer and Business Education at the Federal Trade Commission (FTC).

Moving somewhere this year? You and 20 million others! And guess who else is coming along for the ride? Moving scammers.

The possibility of families being scammed is so great that the Federal Motor Carrier Safety Administration (FMCSA) has launched Operation Protect Your Move, a nationwide crackdown that the agency hopes will put rogue moving companies in their place before the busy summer moving season kicks in. 

The FMCSA will have its hands full with nearly 7,000 moving companies in the U.S. and trying to reduce the 7,500 scam complaints it got in 2022, but it’s officially loaded for bear.

The agency is sending out dozens of investigators across the country to revoke the license of every bad actor they find and put them out of business for good. At the top of the scrutiny list are both movers and brokers who hold household possessions hostage to extort exorbitant additional charges from consumers. 

Other frequent complaints landing on the FMCSA’s desk accuse companies of:

• Using misleading business practices intended to force consumers to pay higher fees

• Unreasonably delaying when household goods are delivered, or in some cases…

• Not delivering someone’s possessions at all. 

Proactively, FMCSA will work directly with consumers to guide them through the process and, when things go wrong, help get their money and goods back.

How to keep a moving scam from happening

According to ConsumerAffairs moving expert Tom Rains, there are 10 red flags that consumers can look for that will identify what moving companies are dead ringers for scammers. His Top 5 will show up like this:

1. You can’t find company information: If you're on a mover’s website and can’t find a physical address, mover’s registration or proof of insurance, that’s a red flag. 

2. The company only does phone estimates: If a company refuses to come to your home to make a final estimate, that’s another red flag. 

3. The mover demands a significant down payment: A small down payment is normal (usually under 20%), but scammers sometimes ask for large down payments, pocket them and disappear. 

4. The bid is suspicious: If one quote is dramatically lower than the other, that’s a red flag, too. Rains said that consumers should be wary of companies that refuse to put estimates in writing.

5. The moving company doesn’t mention your rights and responsibilities: By law, licensed movers must provide their customers with a packet entitled “Your Rights and Responsibilities When You Move” before interstate moves.

You can find Rains’ other five red flags, here.

FMCSA also provides important information on its website at www.ProtectYourMove.gov for consumers planning an interstate move. The two most valuable things ConsumerAffairs found the agency provides the public are 1) a database of registered movers and 2) a downloadable moving checklist that covers every single thing that a mover should do and what a consumer can do if anything goes wrong.

So far in 2023, there has been plenty of economic turmoil. From inflation to layoffs to bank failures, many Americans are on edge.

An early-year stock market rally has faded while gold and Bitcoin prices have surged, as many investors seek a safe haven. But of the two, which is the better hedge against inflation?

While the experts we consulted have well-thought-out views on the subject, investors should never make big financial decisions without doing their own research and consulting with a trusted and objective financial adviser.

Richard Gardner, CEO at Modulus, says gold has a historic record and it has been used as a store of value for thousands of years. That’s his choice.

“It is, reliably, a hedge against inflation because it is a physical commodity that is scarce, meaning that it is difficult to manipulate,” Gardner told ConsumerAffairs. “Because the supply of gold is limited, it has historically held up quite well against fiat currency, which can be printed at will. It is a favorite investment for risk-averse investors.”

Gold is approaching a record high in price, trading this week at around $2,020 an ounce. Gardner said he thinks gold is the better hedge because there isn’t enough data on how cryptocurrencies hold up over time.

Bitcoin, on the other hand...

Marius Grigoras, CEO at BHero, takes the opposite view. While he acknowledges that gold has served as a trusted store of value in the past, he thinks Bitcoin has emerged as a more efficient and accessible alternative.

“Bitcoin offers anonymity, security, and accessibility without physical constraints,” he told us. “Its scarcity, fixed supply, and immunity to government manipulation position it as an attractive deflationary asset. Furthermore, Bitcoin's potential for appreciation, as demonstrated by its remarkable growth over the past decade, outpaces gold's returns, making it an enticing option for wealth protection.”

However, Bitcoin has been more volatile than gold. After soaring to a price above $60,000 the cryptocurrency plunged to below $20,000. In the wake of recent bank failures it has enjoyed a rally, taking the price back to $30,000.

Doesn't like either one

Jack Prenter, CEO of DollarWise, isn’t a fan of either gold or Bitcoin as a hedge against inflation.

“For an asset to be a good hedge against inflation you would want to see decades of data that show strong protection of purchasing power over multiple market cycles and in different rate environments, and we don't have that data for Bitcoin because it's so new,” he told us.

“Gold is often touted as a strong inflation hedge, but the data shows that in the short and medium-term gold doesn't act as a good hedge.”

Prenter notes that from 1980 to 1984, the price of gold fell by about 10% while annual inflation ran at 6.5%. He maintains that over the last  50 years, gold has had a weak correlation to inflation. 

“Only when you look at a timeline of a century or longer is gold a reasonable hedge against inflation,” Prenter said.

Consumers continued to pay more to put a roof over their heads in March but food prices appear to have peaked, at least for now. The Labor Department’s Consumer Price Index (CPI) rose just 0.1% last month, for an annual inflation rate of 5%.

The cost of shelter was by far the largest contributor to the monthly all-items increase in inflation. It more than offset a decline in the energy index, which fell 3.5% over the month as all major energy component indexes declined. The food index was unchanged in March.

The shelter index reflects rents as well as home ownership costs. The cost of shelter rose 0.6% from February and is rising at an annual rate of 8.2%.

As noted, energy prices tumbled thanks to the slide in gasoline prices. Gas prices fell 4.6%  in March and are down more than 17% year-over-year. That good news is tempered, however, by sharp increases in prices at the pump so far in April.

Perhaps the best news in the report concerns food prices. In March, overall food prices were unchanged from February, when prices rose 0.4%. For the first time since inflation took hold of the U.S. economy the cost of food purchased at grocery stores and consumed at home went down, falling 0.3%. For the last 12 months, those costs are up 8.4%.

Eating at restaurants, meanwhile, continued to get more expensive. The cost of food consumed away from home increased by 0.6% and is up 8.8% since March 2022.

Egg prices finally fall

Breaking down grocery costs, three of the six major grocery store food group indexes decreased in March. The index for meats, poultry, fish, and eggs fell by 1.4%. Eggs were also a lot cheaper, with prices falling nearly 11%.

The fruits and vegetables index declined by 1.3% over the month, and the dairy and related products index decreased by 0.1%.

The gap continued to widen last month between new and used cars. Used car prices fell another 0.9% while the cost of new cars and trucks rose 0.4%. Over the last 12 months, the price of used vehicles has fallen 11.2% while new car prices have risen 6.1%.

Consumers continued to pay more for car insurance last month with premiums rising 1.2%. Travel also got more expensive with airfares rising by 4%.

Let’s set the scene: You’re somewhere where your phone is starting to lose power so you look for a place to charge it. Could be a coffee shop, could be an airport. You find one, plug in, and all is good.

Except, that it may not be as good for you as it is for some guy sitting over in the corner pretending they're scrolling through social media when what they’re really doing is watching all your personal data move from your phone to their computer.

The FBI’s Denver office sent out word this week that while we think that public charging stations and cables are a convenience, they can be turned into a fiendish transmitter. Agents are advising people to avoid using free charging stations in airports, hotels, shopping centers, and other public locations.

“Bad actors have figured out ways to use public USB ports to introduce malware and monitoring software onto devices. Carry your own charger and USB cord and use an electrical outlet instead,” the agency tweeted out.

The juice-jacking jinx

This maneuver is known as “juice jacking” – you know, when your phone or tablet needs some “juice.” The FBI warns people that if you make the mistake of plugging your device into the wrong public charging station, you could wind up with malware that will shut down and lock up your device and have a field day with the private data you’ve got sitting on your phone, like credit card numbers and passwords.

“USB connections were designed to work as both data and power transfer mediums, with no strict barrier between the two,” the FBI’s Oregon field office said.

“There is also ‘video jacking,’ where a bad actor could record and mirror the screen of a device that was plugged in for a charge. Another potential problem: that free USB cable you got as a promotional item can also be risky. Microcontrollers and electronic parts have become so small these days that criminals can hide mini-computers and malware inside a USB cable itself.”

Is there a solution?

Fortunately, there are workarounds – both affordable and easy. Brandon Afari co-CEO and co-founder of chargeFUZE, told ConsumerAffairs that one solution for people traveling through airports is to look for kiosks that are equipped with portable power banks for rent, allowing people to charge their devices on the go.

“These power banks are secure and reliable and can help protect consumers from the risks associated with juice jacking and other forms of charging-related attacks,” he said, adding that in addition to those chargers allowing you to charge on the go, they usually come with all the cabling you need. 

Speaking of power banks, one person who responded to the Denver FBI tweet said that a smart move would be to charge your power bank at a public charge station, then charge your phone using your power bank.

Another piece of advice is to stick strictly to electrical outlets. Macworld’s best advice for iPhone owners who want to charge their iPhone in a public place is to use their own chargers instead.

“Most public charging stations also contain electrical outlets, so you should use your own charger and cable in one of those,” suggested Macworld’s Jason Cross.

Oregon’s FBI team also shared a tip that most consumers aren’t aware of – using a “charging-only” cable which prevents data from sending or receiving while charging.

ConsumerAffairs did some research on that option and found plenty of products available on Amazon in the $10-$13 ballpark. The important thing to look for is verbiage in the “About” section that says something to the effect of “Just for charging not for syncing data.” Otherwise, you might be buying an imposter cable that says it’s for “charging only” just to show up in searches for that term, but it’s really not.

It’s a Friday morning, the weather is starting to finally break, and you decide to jump on an airplane, go somewhere, and celebrate your first chance to shake the winter blues. But where do you go? More importantly, where do you go that’s a good price match for your last-minute jonesing?

Upgraded Points' just published a study analyzing last-minute booking costs for some of the most popular domestic flight routes in the country from the five largest domestic airlines – Spirit, United, American, Southwest, and Delta. The study used data sourced from the Official Airline Guide for the 10 most popular domestic flight routes in America and, for prices, depended on Google Flights as the primary source.

"Last-minute trips are actually pretty common," said Alex Miller, Upgraded Points' founder. "But unfortunately, most airlines charge a premium for not planning well in advance, so it can really cost you if you're not looking in the right places."

Goin’ up to the Spirit in the sky

The airline with the most affordable last-minute flights was Spirit Airlines with an average price of $170.09 across the 10 routes studied. That’s good news for last-minute wander lusters especially in the South and Southwest where the analysts found these great deals:

• Denver International Airport to Harry Reid International Airport in Las Vegas: $88.10

• Harry Reid International Airport to Los Angeles International Airport: $101.78

• Hartsfield-Jackson Atlanta International Airport to Fort Lauderdale-Hollywood International Airport: $108.88

• Denver International Airport to Phoenix Sky Harbor International Airport: $151.14

• Hartsfield-Jackson Atlanta International Airport to Orlando International Airport: $162.38

• Los Angeles International Airport to O'Hare International Airport: $247.33

Southwest Airlines came in with the second-best single deal on last-minute flights – Los Angeles International Airport to Kahului Airport, at $174.50 a pop. Southwest also had the second-most affordable last-minute fares overall at an average ticket price of $233.72l.

United Airlines: The researchers said travelers could save the most by flying United Airlines on last-minute jaunts from Los Angeles International Airport to San Francisco International Airport, at $146.78, followed closely by New York’s LaGuardia Airport to Chicago’s O'Hare International Airport, at $189.56. Overall, United Airlines’ average last-minute fares cost $272.80 each.

American Airlines: If you want to fly across the country and you live in New York City, then American Airlines is your go-to for the most affordable last-minute flights. You can get from John F. Kennedy International to Los Angeles International for about $366.60.

Delta Air Lines: The study showed that of the five airlines studied, Delta was the most expensive option to buy a last-minute ticket with an average last-minute ticket price of $369.12.

'Average' is a decent indicator, but what’s important is the 'now' price

Scott Keyes of Going.com (formerly Scott’s Cheap Flights) thinks that in the final analysis, average cost doesn’t really matter.

“We always say the main issue with looking at the average is that it isn’t an accurate representation of what a person actually pays for their flight. You can’t book the average price of a plane ticket—you can only book the available price,” Keyes told ConsumerAffairs.

“Imagine this scenario: You and the guy next to you on the plane are traveling to Europe this summer. You spent $300 roundtrip on your ticket. He paid $900 roundtrip. The average is $600, but neither of you actually spent that much on your ticket. Yours was half the price; that guy just overpaid for his ticket and jacked up the average fare.”

And watch out for the 'hidden' prices

Remember the SNL sketch where the flight attendant told passengers that they’d have to “pay for air” if they didn’t bring their own oxygen tank? Airlines haven’t gone that far, yet, but when ConsumerAffairs was scratching our heads recently over Chicago to Miami fares that ranged from $155-$248 for the same times and same flight, Mary DeSpain, president at Destination CLEs, reminded us that if we would’ve made one or two more clicks for the specific details of the flight, we would’ve found the reason behind that disparity.

“Pricing is influenced by many factors and finding the best deal is often frustrating. For example, the low-cost carriers commonly have extra fees for bags or other inflight services [‘below’ the price listed] while the higher priced fares from airlines may have included those services in the price!” she said.

“The ‘hidden’ costs are the airlines’ way of saying ‘surprise’ with a not-so-pleasant bill at the end of your flight. But as someone once told me, ‘you get what you pay for.’ And maybe those extra charges are worth it if it means not having to fly with chickens in the cabin.”

Tupperware, a kitchen essential for decades, is in trouble. The company that makes the containers for leftovers is struggling financially.

In a filing with the Securities and Exchange Commission (SEC), Tupperware Brands Corporation disclosed that it had received a notice from the New York Stock Exchange (NYSE) that indicated the company is not in compliance with current regulations because it had failed to file Annual Report on Form 10-K for the year ended December 31, 2022.

In the filing, the company said it is not confident it can file the report by the extended deadline. It further painted a gloomy picture of its future.

“In accordance with Accounting Standards Codification (“ASC”) Topic 205-40, Going Concern, the Company evaluates whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern,” the company disclosed in the filing.

In other words, company executives have doubts about whether Tupperware Brands Corporation can stay in business. The filing says the company reached that conclusion after reviewing its financial situation and finding there simply isn’t enough money coming in to pay the bills.

Working with financial advisers

In a press release, the company said its board of directors is actively working with management in an effort to turn things around. It has also hired financial advisers to help it secure supplemental financing and is engaging in discussions with potential investors or financing partners.

Among the possible moves is the sale of certain real estate to raise capital. It said other assets could also be on the chopping block.

"Tupperware has embarked on a journey to turn around our operations and today marks a critical step in addressing our capital and liquidity position," said Miguel Fernandez, president and CEO of Tupperware Brands.  "The company is doing everything in its power to mitigate the impacts of recent events, and we are taking immediate action to seek additional financing and address our financial position." 

Tupperware was invented in 1946 by Earl Tupper, who developed the idea for plastic containers to be used in households to contain food and keep them airtight. He also developed a novel marketing approach to sell the products through “Tupperware parties” held in private homes.

Are you looking for a new piece of furniture but just can’t seem to find the right deal? Is there something in your home that you want to replace but just don’t have tons of money to spend? Well, IKEA may have just the solution. 

The furniture company announced a new mobile site for its “As-Is” section. IKEA regulars will recognize the name from a section of the store that’s famous for bargains. Now, shoppers will be able to shop from the discounted section online. 

“As-Is online joins our other services like Buy Back & Resell and the spare parts program that help our customers live a more sustainable life at home with a variety of ways to prolong the life of their furniture,” said Javier Quinones, CEO and chief sustainability officer at IKEA U.S. 

Becoming an IKEA ‘Family’ member

Perhaps the most important part of IKEA’s new online store is that consumers must become part of the store’s free membership program, known as the IKEA “Family.” The membership not only unlocks access to the “As-Is” online site, but it also will send members discounts to use on other items and in IKEA’s in-store cafeterias. 

Once you have an IKEA membership, you’re free to scroll through the “As-Is” offerings, which includes both items returned by other customers, as well as items that have been discontinued from IKEA. All items are offered at a discounted rate, offering customers the opportunity to revamp their homes or offices at a lower price point. 

Once you find something you’d like to purchase, you can reserve it at your local IKEA store. Then, you have 48 hours to pick it up, otherwise IKEA reserves the right to relist the item on the As-Is site. 

Because this furniture isn’t brand new, customers shouldn’t be concerned by minor knicks, scratches, or other aesthetic damages. IKEA will do a thorough examination of each item, and ensure all items are in full working order before re-selling them.   

What items are eligible and ineligible for the As-Is site? 

Do you have some older IKEA pieces that you’re looking to trade in? The company will only accept fully functional and fully put together pieces of IKEA furniture for its As-Is site. Items cannot be modified or altered in any way, and they can’t be broken or missing any pieces. 

Acceptable items include: 

• Cabinets

• Office drawer cabinets, display storage, small structures with draws, or sideboards

• Dining tables and desks

• Small tables

• Chairs and stools without upholstery

• Multimedia furniture

• Bookshelves and shelf units

However, the list of ineligible items is a bit longer: 

• Sofas or armchairs

• Beds and bed frames

• Home furnishing accessories

• Upholstered or leather products

• Modular wardrobes and accessories

• Market-hall products (rugs, picture frames, small kitchen goods, art)

• Add on units and componentry 

• Chests of drawers that were modified or painted

• Kitchens (bench tops, fronts, etc.)

• Plants

• Outdoor products (including outdoor furniture) 

• Mattresses and bed textiles (mattress toppers or blankets)

• Children’s or baby products 

• Items containing glass (including mirrors)

• Any non-IKEA items 

IKEA customers must fill out an online form describing the furniture they’d like to give back to the store, at which point they’ll receive a quote for how much their pieces are worth. Then, once the item is brought to the store, an IKEA employee will give it a final in-person appraisal.

Customers will then receive an IKEA gift card for the full amount of their furniture donation, and the item will then be listed on the As-Is site. 

These days, renting an apartment can be an expensive undertaking, and a new report from real estate marketplace Zillow says it’s especially expensive for minorities.

The latest Zillow Consumer Housing Trends Report found the typical Black, Hispanic and Asian American Pacific Islander (AAPI) renter all reported spending $50 per rental application. White renters, meanwhile, reported paying an average of $35. 

The costs add up because the report shows Black and Hispanic renters tend to submit more applications before finding an apartment. Thirty-eight percent fill out and pay for five applications while only 21% of white renters submit five applications.

"Monthly rent prices are nearly the highest they've ever been, and unfortunately for so many people, finding a place to rent comes at an even higher cost," said Manny Garcia, a population scientist at Zillow. "We so often hear about the benefits of renting and the flexibility it offers, but disparities persist, and many renters of color aren't granted the same mobility as others because of higher upfront costs."

Zillow points out that it offers an online application process the company says can save renters money if they are filling out multiple applications. People hoping to rent a home can fill out a single form and use it to apply for any property listed on the platform, all for a flat fee. They can use the form as many times as they like over a 30-day period.

The Fair Housing Act

The Fair Housing Act, passed in 1968, protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. 

According to the Zillow report, the typical U.S. renter is 39 years old. Compared with the adult population as a whole, renters generally tend to be younger, less likely to identify as white, more likely to have never been married, and, and more likely to identify as LGBTQ+. 

“These trends are especially true for recent renters,” the authors wrote. “Demographic change tends to play out over a long time: Most of these characteristics have not changed substantially, if at all, over the last few years.” 

Next to imposter scams, crooked online shopping vendors take more money from consumers than any other type of fraud – $8.8 billion in 2022, taking an average $720 out of each consumer’s hands.

As you can imagine, this does not sit well with the Federal Trade Commission (FTC). It recently wrote ConsumerAffairs about the situation and wants consumers to know that if they have a bad online shopping experience, it’s not the end of the world. 

You’re protected… to a point

Maybe you ordered one thing but got another. Or that new company never shipped your order, even though they charged you for it. So, what do you do?

If you order something that never arrives or you didn’t accept it, but the seller won’t refund their money, the FTC says you do not have to pay for the item and the federal government has your back for the most part.

The Fair Credit Billing Act treats certain credit card charges that a consumer disputes as a billing error. The things that qualify as billing errors are items that the buyer either didn't accept or that weren't delivered as agreed, involved the wrong amount, or were unauthorized. However, if it’s a problem with the quality of the item, that’s not considered a billing error. 

You probably noticed that this protection specifically calls for a credit card. However, if the purchase is paid for with a debit card, those have different rules but some banks may voluntarily offer protections.

In debit card cases, the FTC suggests a wronged consumer start by calling the customer service number, then follow up with a letter like this.

Time to wise up on the new tricks

The FTC senses things could continue to get worse and wants shoppers to pay attention to the current tricks of the online shopper scam trade. ConsumerAffairs reached out to several online retail cybersecurity experts to get their take on today’s hottest scams and here’s what we found:

Watch out for fake advertisements, which can appear on social media platforms and even at the top of your Google search, said Kevin Lee, VP of Trust and Safety at fraud prevention company Sift. Lee suggests just by checking the URL on the ad, you can probably save the day. “If it’s a long, confusing combination of numbers and letters, or if a recognizable brand or company name is misspelled, it’s likely a scam,” he said.

Be wary of anyone promising heavily discounted prices, especially if the discount is for a high-ticket item or luxury good. “If other merchants online aren’t offering similarly steep discounts for the same goods, then it’s best to think twice before purchasing,” Lee advises. “Never accept a request to communicate with a merchant and/or make a transaction on a messaging app (like WhatsApp, for example) or other unrelated platform.”

Does the site have FAQs and a Returns Policy? Michael Allmond, vice president and co-founder of  Lover's Lane, brought up a very good point about FAQs, customer service links, and returns policies. “A good company will have an easy-to-navigate customer service experience on their website. If it is hard to find or simply non-existent, then getting problems taken care of might be difficult,” he told ConsumerAffairs. 

As far as returns are concerned, businesses that are all about the customer are more likely to promote "hassle-free" returns. “If you don't see that, then find the refund and return policy before purchasing."

And Allmond is spot on about the "no hassle" thing, too. When ConsumerAffairs searched for "cheap NFL jerseys," the websites we reviewed said that, yes, they send the items for free and they'll accept returns for new and unworn items, but the buyer has to pay to have the item returned and possibly a restocking fee, shipping fee, and handling fee. Any guess how much that costs to send that $35 deal on a Tom Brady jersey back to China? It could be upwards of $100 and that's anything but a good deal.

Use Google to your advantage. The Google Merchants platform is not one to mess around with for stores that don’t have a returns policy, FAQs, or terms and conditions and it will delist a site in a heartbeat. If the online shop you’re considering doesn’t have those elements, you should go somewhere that does.

Everyone makes mistakes. Some are small while others can have lasting consequences. Mistakes with money generally fall into the latter category.

An astonishing 61% of Americans live paycheck-to-paycheck, spending all of their money between pay periods. That’s up from 52% a year ago according to an August 2022 report from LendingClub Corporation, in partnership with PYMNTS.com.

This is not just a problem affecting low to moderate-income consumers.  The biggest rise in paycheck-to-paycheck living last year occurred among consumers in households that earned between $100,000 and $150,000.

So, what mistakes are these consumers making with their money? Financial Literacy Month seems like a good time to pose that question. Robert Johnson, CEO and chair at Economic Index Associates, sees two mistakes – spending too much on a home and something he calls “lifestyle creep.”

‘Lifestyle creep’

“The most common mistake is that people let their spending increase commensurate with their salary,” Johnson told ConsumerAffairs. “For instance, people move into a bigger apartment or buy a more expensive car or home to reward themselves for receiving the raise. What happens is they are unable to improve their financial condition because they spend everything they make. In effect, they move the goalposts on spending.”

He says overspending on a house can have the same negative impact. Spending too much on a house, he says, takes too much of their income and crowds out other investment opportunities and chances to build wealth.

“So people might just decide, ‘yeah, I’ll diversify my portfolio. I’ll live in a rental.’ That is a very sensible thing for many people to do,” he said.

Markia Brown, a certified financial education instructor at The Money Plug, says losing ground financially often is caused by simply a failure to plan and prioritize financial goals.

“This can manifest in several ways, such as overspending, accumulating high-interest debt, inadequate savings, and lack of investment for the future,” she told us. “To avoid these pitfalls, it is crucial to establish clear financial goals, create and follow a budget, prioritize saving and investing, and be disciplined with spending habits.”

Not paying off credit card balances

Einat Steklov, the founder of Kashable, says the biggest mistake most consumers make is not paying the full statement balance each month when the credit card bill arrives. When you pay off the balance each month, you’re using the credit card as a convenient way to make purchases. When you let the balance accumulate you’re buying things you can’t afford.

“This balance accumulates interest that is hard to calculate and adds to the monthly payments a significant amount beyond the actual purchases,” Steklov told us. “Paying off a credit card balance is a good habit that reflects living within one’s means.”

Spending all the money you make and running up high-interest credit card debt can put you behind the financial eight-ball. Jim Wang, the founder of Wallet Hacks, says one obvious result is you aren’t saving any money.

“We often hear about the scary statistic that most Americans can't handle a major emergency expense of just a few hundred dollars, Wang said. “Saving just a little bit each month toward an emergency fund can help protect you from financial ruin over a relatively minor expense.”

With the economy bouncing all over the place, consumers have been bouncing their credit all over the place, too. Hoping to find some breathing room, people have turned to Buy Now Pay Later (BNPL) and balance transfers as options.  

BNPL has been much derided by both financial experts and the Consumer Financial Protection Bureau (CFPB), but recently there’s been an increase in balance transfers, and one financial guru tells ConsumerAffairs that option is a double-edged sword.

“Balance transfers are both a good and bad thing,” Cyndie Martini, the CEO and Founder of Member Access Processing (MAP), said, laying most of her concerns at the feet of “credit card churning” that sucks people into the balance transfer vortex.

And churning is certainly attractive. It can give a consumer the impression that they can open a new credit card account and score some sort of benefits like zero-percent or low-interest balance. There might even be a bonus like airline credit cards often do, dangling the carrot of tens of thousands of miles that could be used for free travel.

The ramifications of balance transfers

Martini – in big, bold letters – says that before taking the balance transfer route, consumers need to consider what they’re getting into.

Don't overextend yourself, it's not free money. “Balance transfers come with certain costs and limitations. Generally, you'll have to pay a balance transfer fee - usually 3% or 5% of the total transfer,” she said. “Therefore, know that a credit transfer is not free money to extend paying off your open balance – it's simply discounted.”

Your credit score can be impacted. Really? Really. Martini said that unbeknownst to many people, their credit score is impacted based on the total limit of combined cards. As an example, she offered this narrative: “For example, if you have two cards with a $10,000 limit on each card, your credit score will be affected in the same way if you have four cards with $5K limits on each. The effects of a balance transfer may be hard to predict, but it's important to arm yourself with as much important information as possible before you transfer any open balances.”

Understand why you want to transfer your balance to a new card. Yes, that’s “why” and not “why not.” “Your credit card score will also be impacted each time you sign up for a new card to transfer your balance onto because the credit card company will have to run a credit check on the account when you sign up,” Martini said. But, if having simply a “good” credit score rather than a "Holy Grail" perfect credit score is good enough, then a transfer balance may be a worthwhile consideration. 

Plan for when you run out of free interest. Let’s say you have a 6-month interest-free offer when you transfer your limit to your new card, but you still have $10K in debt. “Then it's better to pay off the debt balance rather than continuing to transfer your open balance to new cards,” she recommended.

In its review of balance transfers, the CFPB also offered its insights on what happens when the "free interest" dries up. If anyone uses the same new credit card to make new purchases, they need to understand that they won’t get a grace period for those purchases and will have to pay interest until they pay the entire balance in full, including the transferred balance. Worse yet, if you’re more than 60 days late on a payment, the credit card company can increase your interest rate on all balances, including the transferred balance.

Pay your balance within your interest period. If you don't pay your balance in full within this period, the credit card company may charge you for the 6-month free interest in total. Oops. Most people don’t want to take the time to read a credit card policy before they leap into one, but Martini said that the devil is in those details more times than not and it’s worth poring over all the ifs, ands or buts.

Do the math. Martini said that if you have a significant amount of credit card debt, the 3-5% balance transfer fee is absolutely worth paying when transferring your balance to a card that has a 0% intro APR offer, but only – and this is important – if they still need time to pay off the balance. However, she said that if you can pay off your balance immediately in full on your current card, that is ideal because you'll save on any new interest fees as well as a balance transfer fee. 

If after considering all of these points you decide a balance transfer card makes financial sense, ConsumerAffairs has looked at some of the best.

Flights to popular European destinations are up 29% overall compared to 2022 – and that’s only so far this year. Since summer is the peak travel season for Europe, costs could rise even more from June to August with average airfare running upwards of $1,000.

TravelWeekly says that Europe is proving so popular this year that even upscale travelers who haven't already booked could find themselves behind the 8-ball.

Is there a cure for those summertime blues? Yes. As ConsumerAffairs recently revealed, things like the “Goldilocks Window” and the “Greek Island Trick” can save summer travelers some serious cash if they're willing to work the system. 

But, we wondered what deals we could score if we pushed our European travel plans until fall – when the kids are back in school and flights and destinations are not as packed as they would be in June or July.

In-betweasons: the sweet spot for great fares

According to our sources at KAYAK, the “In-betweasons” – March and April, October and November – are the sweet spot for better fares over the peak time of May through September. KAYAK’s researchers shared data fare prices with ConsumerAffairs that, depending on the U.S.-Europe routes, showed savings of up to 45% if a traveler can wait until the calendar is flipped from September to October.

Examples that KAYAK listed for October vs. this July include Portland Ore., to Dublin Ireland for $576 in October vs. $1,053 in July; Chicago to Madrid for $527 vs. $1,127 in July; and Miami to Lisbon for $510 vs. $1,152 in July.

Oddly enough, the fare prices for some point-to-point destinations within the U.S. can actually go up in the fall, like New York to Austin, Phoenix, New Orleans, and Miami, or Los Angeles to Chicago. 

To give you an idea of the price dynamics from June to October, KAYAK’s researchers sent over these comparisons using New York and Los Angeles for the five most searched destinations both domestically and internationally: 

Europe’s not the only plum

Even though Europe offers the biggest savings, it’s not the only place Americans can go for less. KAYAK said the next three biggest savings destinations are:

• The Caribbean, a mostly winter destination for Americans, offers savings of up to 24% on in-betweason flights compared to peak travel season ($465 vs $610 median prices).
• Africa is where you can save as much as 20% on in-betweason flights to northern destinations ($801 – $1,010 vs $546 – $638 median prices) and up to 25% on flights to southern destinations ($1,068 – $1,339 vs $1,282 – $1,604 median prices).
• South America, where travelers can save up to 19% on in-betweason flights to northern destinations ($482 – $578 vs $546 – $638 median prices) and up to 24% on flights to southern destinations ($591 – $1132 vs $591 – $1,110 median prices).

*Methodology: KAYAK considered searches for flights originating in New York and Los Angeles from 1/1/23 - 3/26/23 for anytime in 2023. The most popular destinations (with the largest volume of searches) were considered, with only one destination per state for domestic travel and one destination per country for international travel. To determine average flight price, KAYAK considered searches 1/1/23 - 3/26/23 for travel during the month of June (6/1/23 - 6/30/23) and the month of October (10/1/23 - 10/31/23). Prices are on average.

This month kicked off with a number of intense storms in various states across the U.S., which begs an important question for consumers: are you prepared to stay safe during these dangerous storms? 

Whether your answer is yes, no, or maybe, the Centers for Disease Control and Prevention (CDC), the American Red Cross, and the Consumer Product Safety Commission (CPSC) have all weighed in to help people prepare for the storm and ensure their safety until it passes. 

Prepare for the storm

Some of the most important work you’ll do is before the storm hits. Does your family have an emergency kit? Do you know where the safest place in your home is? Have you practiced tornado drills? These are all important questions as you prepare for the storm. 

During a tornado, the goal is to find a spot that’s safest during extreme winds. This is often the lowest level of a home in a room that has no windows. In terms of tornado drills, being able to get to the designated area as quickly as possible is key. 

Consumers should also be thinking about stocking their homes in the event of a storm. Water bottles, non-perishable foods, and medications are a good place to start. 

The Red Cross recommends having a “go-kit,” which would have three days of important supplies that you can carry with you, and a “stay-at-home kit,” which would have at least two weeks of supplies. When it comes to medications, the agency recommends keeping a one-month backup supply for emergencies like this. 

The CDC also recommends keeping fresh batteries on hand in case of a power outage, as well as devices that are battery-operated to stay connected to any important weather updates. 

Staying safe if the power goes out

The CPSC offered a number of tips for consumers should the power go out in the middle of a dangerous storm. 

Many people turn to a portable generator when the power goes out, but as helpful as these devices are, they also can come with a number of risks. One of the biggest risks is carbon monoxide poisoning, and the CPSC recommends having a generator that comes with a CO shut-off safety feature, as these will turn off automatically when CO levels become too high. 

Portable generators should also never be used inside the house – this includes carports or porches. Consumers should be at least 20 feet away from their homes when using these devices. 

Similarly, when using portable heaters, charcoal, or candles, safety is key. Portable heaters should never be closer than three feet to anything that could catch fire – curtains, bedspreads, sofas, clothes, etc. These devices should only be used in dry locations – never near water – and should only be plugged into wall outlets – not under carpeting or into power strips. 

Candles and charcoal pose similar threats, and the same warnings apply. Battery-operated candles are a safer option for consumers, while charcoal should never be burned indoors. 

During a dangerous storm, experts recommend that you closely follow the news in your local area for any important updates, and check in with your friends and family as often as possible. 

When someone loses money to a scam their first reaction is usually shame. “How could I have been so stupid?” they ask themselves.

Experts who study scams and the people who operate them say victims generally have as much intelligence as anyone else. Scammers, they say, are skilled at psychological manipulation.

“They’re glib, they’re persuasive,” Michael Cohen, vice president of Global Operations at MyChargeBack, told ConsumerAffairs. “They know human psychology like the backs of their hands, and as a result, they know how to plant an idea subliminally in your consciousness and later on how to subliminally remind you of it. They know when they have to peddle softly and when it’s time to move in for the kill. In short, scammers are professionals."

Cohen, who has dealt with many credit card scams over the years, says scammers are particularly good at talking victims into abandoning any initial objections, overcoming their hesitations.

“That’s why scam victims fall victim,” he said. “Not because they’re especially naive or gullible or foolish, but because they were mesmerized into it against their will and better judgment. Victims are never at fault, and they should never be blamed.”

They know how to push your buttons

Los Angeles attorney Tre Lovell also has experience dealing with scam victims, including doctors and other lawyers. Scammers, he says, are quick to assess their potential victims and learn how to push their buttons.

“Scammers I've met tend to be extremely charismatic and great salespeople, believable and likable, Lovell told us. “I had a case with 140 victims who lost $30 million collectively, after investing in condos in the Caribbean. I knew the sales guy knew what he was saying wasn't accurate, I knew he was a scammer, but I almost wanted to have a drink with him because he was so likable.”

So, who are these guys who are so intuitive about human behavior? Martina Dove, a Seattle psychologist who specializes in scam techniques, persuasion and vulnerabilities associated with fraud victimization, says there has been little research on common scammers. Let’s face it, these guys are criminals who are not likely to make themselves available to researchers.

Dove told us that scammers tend to fit into different categories. Some operate simple phishing scams targeting millions of people at random. Others are more sophisticated and skillfully target their victims. Under the right circumstances, anyone can fall victim.

“It is easy to look at scam situations that happened to someone else with a rational approach, and think this would not happen to us,” she said. “But scams can be highly emotionally-charged situations that evoke fear, panic, excitement, sexual desire, etc. Under those emotions, we don't think clearly.”

Knowing the red flags is your best defense

Not thinking clearly is what a scammer is counting on. So the best protection you have against this kind of attack is knowing the telltale signs of a scam – something they all have in common. Here are four:

Unsolicited contact: The victim never initiates contact with a scammer, it is always the other way around. It could be an unexpected phone call, email or text. The scammer could show up at your doorstep. So always be leery of any unexpected contact from someone you don’t know and take anything they say with a healthy dose of skepticism.

A sense of urgency: Whatever situation the scammer has presented or created, the victim is told that action is required immediately. In real situations, that is almost never the case. In scams, the victim must act immediately to get something they want or to prevent something bad from happening. When you are presented with this kind of urgency from someone contacting you out of the blue, it is always a scam.

Secrecy: When a scammer is manipulating their victim to do something they will often tell them not to tell anyone what they are doing. That’s because a friend or family member, who has not heard the scammer’s mesmerizing spiel, will question what the victim is doing. At any point, when you are being asked to do something in secret you can be sure it is a scam.

Strange method of payment: Of all the common red flags, this should be the most indicative of a scam. The object of every scam is to steal money, but the money must be taken in a way that is untraceable and unretrievable. Scammers can’t take credit cards because all cards have fraud protection. Therefore the money has to be wired, or transferred using a peer-to-peer payment app, cryptocurrency, or using gift cards. Any legitimate entity will accept a check or credit card.

Knowing these four red flags can keep you out of trouble. No matter how persuasive someone might be, no matter how much fear they generate when any one of these red flags starts waving it is time to stop the communication.