Current Events in July 2023

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2023

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    Pre-recall Alert: Can your car’s brakes fail? Subaru, Ford, Lexus and Lincoln owners say yes.

    These vehicles haven’t been recalled but some owners say they should be

    The National Highway Traffic Safety Administration (NHTSA) studies consumer complaints as part of its process of asking an automaker to issue a recall. It can be a lengthy process.

    ConsumerAffairs studied NHTSA’s database for recent complaints that NHTSA is now examining. In June we found a lot of problems, across multiple manufacturers, with brakes.

    Subaru Outback Brake Failure Due to Corroded Junction Box

    Multiple complaints have been reported regarding brake failure in various Subaru Outback models due to corrosion in the rear junction box near the fuel tank. This issue has led to brakes giving out without warning, posing a significant safety concern. Although Subaru has issued a recall for this issue in model years 2005 to 2009, the problem persists in later models as well. 

    Lexus NX 2016 and 2022 Models Experience Brake Failures

    Multiple complaints have been filed regarding brake failures in Lexus NX models from 2016 and 2022. Drivers report that their brakes stop working, feel loose, and require excessive force to slow down the vehicle. This issue poses a significant safety concern as it affects the driver's ability to control the vehicle and prevent collisions. Lexus has not yet issued a recall for the affected models.

    2010 Mercury Milan Power Brake Failure Reported

    Multiple complaints have been filed regarding the 2010 Mercury Milan, with the most common safety defect being power brake failure. This issue causes the brake pedal to go to the floor, and the vehicle to roll forward and backward while in park. Additionally, ABS warning, trac system warning, and brake service warning lights are illuminated. Other reported issues include fuel propulsion system, suspension, and steering problems in the 2010 Mercury Mariner, but the power brake failure in the Milan poses a greater safety concern.

    Brake Issues Plague 2013-2014 Lincoln MKX Models

    Multiple complaints have been reported regarding brake issues in 2013-2014 Lincoln MKX models. Drivers have experienced a lack of resistance on the brake pedal, resulting in slow braking and difficulty stopping quickly. In one case, the master cylinder for the brakes failed twice within a short period. The National Highway Traffic Safety Administration (NHTSA) has received at least two complaints related to this issue. 

    2013 Ducati Monster Faces Braking Safety Concerns

    A common safety defect reported among at least five complaints is related to the 2013 Ducati Motercycle. The issue involves inconsistent braking, extended stopping distance, and an unexpected soft rear brake pedal when applying the brakes. This defect poses a significant safety concern for riders, as it may lead to accidents and injuries. The National Highway Traffic Safety Administration (NHTSA) has assigned the ID 11527630 to this specific issue. 

    Fuel leaks, power loss, fire hazard and exploding sunroofs

    2007 Pontiac G5 Fuel Leak Poses Safety Concern

    A common safety defect reported among at least five complaints is a fuel leak in the 2007 Pontiac G5. The issue appears to be on top of the fuel tank, causing a smell of gas both inside and outside of the vehicle. This defect poses a significant safety concern due to the risk of fire or explosion.

    2022 Chrysler Pacifica Minivans Experience Dangerous Power Loss

    Multiple complaints have been reported regarding the 2022 Chrysler Pacifica minivans experiencing dangerous power loss while driving, putting drivers and passengers at risk. The issue seems to be related to the vehicle's electrical system and engine, causing the vehicle to stall or lose power unexpectedly. In some cases, drivers had to reboot the 12v system to regain control of the vehicle. This defect has led to near-collisions and poses a significant safety concern. Chrysler has yet to issue a recall for this problem.

    Ford Vehicles Experience Sudden Loss of Power Steering

    Multiple Ford vehicles have reported a sudden loss of power steering, posing a significant safety concern for drivers. The issue has occurred in various models and years, including the 2013 Ford Escape and 2010 Ford Fusion. Drivers have experienced difficulty controlling their vehicles, increasing the risk of accidents. Despite numerous complaints, Ford has not issued a recall to address the problem. 

    2017 Porsche Macan Fuel Injector Connection Poses Fire Hazard

    A common safety defect has been reported in at least five complaints regarding the 2017 Porsche Macan. The issue involves the fuel injector connection at the fuel rail, which has been found to spray fuel onto the engine, creating a significant fire hazard. This defect poses a serious safety concern for drivers and passengers of the affected vehicles. It is crucial for owners of the 2017 Porsche Macan to be aware of this issue and take necessary precautions. The National Highway Traffic Safety Administration (NHTSA) is likely to investigate and address this safety defect. 

    Sunroof Explosions Reported in 2013 Kia Optima and Soul Models

    Several complaints have been filed regarding sunroofs exploding in 2013 Kia Optima and Soul models. Drivers reported hearing a loud noise similar to a gunshot while driving, followed by the sunroof shattering. The sunroofs were less than two years old and showed no prior signs of damage or wear. This safety issue poses a risk to drivers and passengers, as well as other vehicles on the road. 

    If you have an issue with one of these vehicles or any other one, NHTSA would like to hear from you. Report the problem here.

    The National Highway Traffic Safety Administration (NHTSA) studies consumer complaints as part of its process of asking an automaker to issue a recall. It...

    Prime Day happens next week. Here’s a sneak peak at some of the best deals.

    Discount travel is being offered for the very first time

    If you’re a deal hog, you’ve probably already told Alexa to get you out of bed next Tuesday at 3 am – the time when Amazon’s 2023 Prime Day event kicks off.

    The company promises more deals than ever before, with 48 hours of discounts on millions of products. Plus, it’s adding a new twist by dropping new deals every 30 minutes during select periods.

    In an email to ConsumerAffairs, Amazon said the deals will be highlighted across the beauty, fashion, fitness, electronics, toys, and Amazon device categories, but that’s a little too big picture, right? Digging deeper, here’s what we found as far as specific deals are concerned.

    Entertainment

    How about up to 90% off channels & titles for Prime members? DealNews turned ConsumerAffairs on to this gem: Prime members can save on 2-month subscriptions to channels including Paramount+ (50% off), AMC+ (50% off), and Starz (90% off), as well as individual titles like Dungeons & Dragons: Honor Among Thieves, Black Adam, and select Indiana Jones movies.

    And that’s not all.  Prime members can subscribe to select channels for $0.99 for up to two months and get 50% off for up to two months if they are not already subscribed.

    And, if you have a student in the household, eligible customers who sign up for a new Prime Student membership can receive a $6 credit to rent or buy titles on Prime Video.

    Other entertainment-related deals include:

    • Amazon Music Unlimited: Prime members who haven't yet tried Amazon Music Unlimited can get four months free, with access to more than 100 million songs and podcasts ad-free, on-demand, and in high-quality streaming audio. Amazon Music Unlimited subscribers can also upgrade to a Family Plan for four months at no additional charge.

    • Books – both audio and digital: If you’re a book lover, check out these deals. Prime members can get the first three months free of Audible Premium Plus. Membership includes a massive selection of new releases and bestsellers, plus unlimited listening to thousands of included Audible Originals, audiobooks, and podcasts. And, you can get three months of unlimited reading for free with Kindle Unlimited.

    Expecting Moms

    Having a baby or know someone who is? WhatToExpect’s Christine Mattheis says that every mom realizes one thing they should stock up on are diapers, wipes, and ointments. If anything is like last year, Amazon might offer up to 36% off diapers and wipes from big brand names like Pampers, Honest and Babyganics 

    “This year, keep an eye out for similar deals. If you’re pregnant or have a newborn, consider buying at least one box each of sizes one through three on Prime Day. If your baby’s older, buy at least one box of whatever size they’re in now, plus one box of the following two sizes. It’s significant savings on something you’re guaranteed to need eventually,” she said.

    Clothing

    Need some new duds? Here are some Prime Day deals that might fit the bill:

    • Gap: Save 60% on select Gap men's, women's, kids', and baby apparel.

    • Victoria's Secret: Save up to 45% on select Victoria’s Secret products.

    • Pop Culture T-shirts: Merch on Demand t-shirts for adults and kids will be on sale for $13.99. Options include family favorites like Barbie, Disney, Hello Kitty, Marvel, and Star Wars, as well as classic music merch from artists including the Beatles, Dolly Parton, Pink Floyd, Slayer, and Whitney Houston.

    Food Delivery

    • Grubhub: Prime members get $15 off Grubhub orders of $25 or more with code GRUBPRIME this Prime Day. Prime members also enjoy $0 delivery fees with a free, one-year Grubhub+ membership trial valued at $120—at no additional cost to their Prime membership.

    • Amazon Fresh: Prime members can save up to $40 when they shop for groceries online, and get $20 off $100 or more purchases on Prime Day. Additionally, Prime members can save 25% when they spend $50 or more at a local store. 

    • EBT Cardhold deals: Prime and Prime Access members with an EBT card can save on groceries with Amazon Access. If you’re shopping for groceries in Amazon stores for the first time, enjoy $5 off your first order over $15 of select Amazon foods.

    Discount Travel

    Now, here’s something we’ve never seen before on Prime Day – discounted travel. Priceline is joining forces with Amazon to bring shoppers the first-ever Prime Day online travel deal! The company is amplifying savings with things like 20% off Hotel Express Deals with Priceline - $300 minimum purchase with a maximum savings value of $75.

    The little guy's got deals, too

    More than 60% of sales in Amazon’s stores are from independent sellers, and not to be left out, small businesses are trying their best to carve out some deal action of their own. Here are some that might be worth checking out:

    Check out the full selection of small business deals at amazon.com/primedaysmallbusiness.

    Smart Speakers and Electronics

    Amazon is taking the opportunity to move out excess inventory of its smart speaker line during Prime Day 2023 – many things as much as half-off. If you don’t have a smart speaker in your house, it might be worth buying one to replace an alarm clock, have Alexa answer the occasional question, play music or video chat with your family.

    “It's absolutely worth buying Echo devices on Prime Day because these are the best prices we've ever seen for these smart speakers,” MakeUseOf’s Abriela Vatu, said. “If the trend from previous years keeps this time around, it will be a long time before we see these kinds of prices for these devices again. So, if you've been waiting to get an Echo, now's the time to add it to your cart!

    As for your eyes and ears...

    If you need a new Smart TV, the Amazon Fire 43” Omni Series will be 75% off; and JBL Live 660NC Noise Cancelling Headphones will be 55% off.

    And for digital artists, they can save $50-150 off Wacom and Intuos graphics tablets -- including $29.95 for One by Wacom and $99.95 for Intuos Medium BT Pistachio -- in both Lightning Deals and over the two-day course of Prime Day.

    Back to School

    This Prime Day, Prime members can get a head start on back-to-school and off-to-college shopping. There are savings across all top categories for parents, students, and teachers, including:

    • Select kids’ uniform styles from Amazon brands for under $10

    • Up to 55% off select Crayola products

    • Up to 55% off select mattresses and beds from Zinus

    • 30% off lunch boxes from Bentgo

    • 30% off select shoes from Hey Dude

    • 30% off towels and bedding from Amazon Basics

    • Up to 25% off select laptops by Acer, ASUS, Dell, HP, LG, MSI, and Samsung

    • 15% off backpacks from Champion

    • Prime members can stock up and save 20% off $30 of select school supplies and everyday essentials. Check out more deals on back to school items and college essentials.

    How do you keep up with more deals?

    Staying on top of every single price drop and deal announcement isn't going to be easy, but from watching Prime Days unfold over the years, it's apparent that Amazon is trying to make it easier than ever.

    One nuance is the rollout of fun and inspirational shopping experiences like Inspire and Shop by Interest to help Prime members discover trending Prime Day deals in an immersive shopping feed that features recommendations from influencers, other customers, and brands.

    The other in-the-know suggestion is Prime Night Live “Duel for the Deals.” Starting July 11 between 10 pm and 12 am EDT, tune into @prime’s TikTok Live—a two-hour game show featuring various contestants and special guests, including TikTok faves Alix Earle and Jake Shane, who will help viewers play along to unlock exclusive deals.

    If you’re a deal hog, you’ve probably already told Alexa to get you out of bed next Tuesday at 3 am – the time when Amazon’s 2023 Prime Day event kicks off...

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      Buying a home just got more expensive

      It’s not the price but the monthly payment

      Just when home prices showed signs of actually going down a bit in some overheated markets, the cost of buying a home has gone up again. Not the purchase price but the monthly payment.

      According to Freddie Mac, the average 30-year fixed-rate mortgage has risen to 6.81%, but that’s just the average. Even borrowers with good credit scores are paying north of 7%.

      You can blame a robust, resilient U.S. economy. Unemployment is low, the stock market is in rally mode, and the Federal Reserve will most likely keep raising interest rates to combat inflation.

      While the Fed’s action doesn’t directly affect mortgage rates, it does indirectly. Because of recent bullish economic data, the yield on the U.S. Treasury’s 10-year bond moved sharply higher since the start of July. Mortgage rates are directly tied to bond rates.

      Real estate professionals are quick to point out that, on a historical basis, a 7% mortgage rate is not that unusual. Before the housing market crash in 2008, buyers were routinely paying between 6% and 7%.

      The problem is home prices. Fifteen years ago home prices were in the $250,000 ballpark, making for a manageable monthly payment.

      Now, home prices are in the $400,000 range, perhaps affordable when the mortgage rate was 3% but more of a burden when it’s 7%. If you need to borrow $400,000, your monthly payment went up nearly $100 in less than a week.

      Why prices aren’t going down

      If you’re wondering why the combination of high prices and high mortgage rates doesn’t reduce sales to the point that prices have to fall, there’s a simple reason. Because current homeowners with a 3% rate don’t want to trade it for one at 7%, they aren’t moving.

      The lack of homes for sale creates competition among the few buyers who can afford a hefty monthly payment. Homes are still selling at these prices but millions of would-be buyers are priced out of the market.

      The question is, will continually rising interest rates become a tipping point, finally sending home prices sharply lower? Realtor.com’s revised 2023 outlook expects only a modest drop in home prices of 0.6% for the year. 

      “This may not be enough to noticeably bring down costs until the end of the year as inflation and rates start to fall too," said Danielle Hale, chief economist for Realtor.com.

      Just when home prices showed signs of actually going down a bit in some overheated markets, the cost of buying a home has gone up again. Not the purchase p...

      The IRS says a monster scam is on the loose

      'Unclaimed Property?' A dead giveaway.

      If you get a cardboard envelope from a delivery service with a letter inside that has the IRS logo and wording that the notice is “in relation to your unclaimed refund,” feed it to the shredder immediately!

      The IRS has released an all-points bulletin telling Americans that a new scam is on the loose – one so dangerous that the agency will add it to its "Dirty Dozen" list the next time it's published.

      "This is just the latest in the long string of attempts by identity thieves posing as the IRS in hopes of tricking people into providing valuable personal information to steal identities and money, including tax refunds," said IRS Commissioner Danny Werfel. 

      "These scams can come in through email, text or even in special mailings. People should be careful to watch out for red flags that clearly mark these as IRS scams."

      The IRS does not need a photo of your driver’s license

      Typical of many scams, the letter includes contact information and a phone number that is not affiliated with the IRS. In addition to obtaining sensitive personal information from taxpayers, it also asks them for detailed pictures of their driver's licenses, which can be used by identity thieves to obtain a tax refund.

      Specifically, the letter asks the recipients to provide "Filing Information" for their refund with a request that says: 

      "A Clear Phone of Your Driver's License That Clearly Displays All Four (4) Angles, Taken in a Place with Good Lighting."

      Did you notice the mistake? A clear “phone” of your driver’s license? Evidently, the scammers don’t use Grammarly.

      Gimme, gimme

      The letter continues to dig for all the personal data they can to con someone. There’s bank routing information, Social Security number and bank account type, and the taxpayer’s cell phone number, followed by another poorly worded warning:

      "You'll Need to Get This to Get Your Refunds After Filing. These Must Be Given to a Filing Agent Who Will Help You Submit Your Unclaimed Property Claim. Once You Send All The Information Please Try to Be Checking Your Email for Response From The Agents Thanks"

      See goof number 2? The IRS handles tax refunds, not "unclaimed property."

      The grammatical stupidity doesn’t stop there. The letter is also full of odd punctuation, a mixture of fonts, and obvious mistakes like saying that the deadline for filing tax refunds is Oct. 17 when the real extension deadline for people’s 2022 tax returns is actually Oct.16. Those owed refunds from last year have time beyond that. And the IRS handles tax refunds, not "unclaimed property."

      If you get a cardboard envelope from a delivery service with a letter inside that has the IRS logo and wording that the notice is “in relation to your uncl...

      Do you know a 'dark pattern' when you see one? We'll explain what to look for.

      These subtle tricks are used to get consumers to buy things they don't need

      The Federal Trade Commission (FTC) isn’t one to make its bloodhound's agenda public, but over the past few years, it’s been doggedly hunting down companies that use “dark patterns” to try to trick consumers into doing things they probably wouldn’t do otherwise.

      Publisher’s Clearing House found itself in the agency’s dog house recently. So did Amazon, Credit Karma, Vonage, and the makers of Fortnite

      The FTC’s sister agency – the Consumer Financial Credit Bureau (CFPB) – is also gunning for dark pattern users, accusing TransUnion. And as consumers started to pick up on these tricks, they headed to the CFPB’s complaint desk, too, filing grievances against Bank of America, Experian, CapitalOne, and others.

      Needless to say, “dark patterns” have become the scariest elephant in the room right now.

      What do these look like and where do you find them?

      Researchers at Stanford University’s Dark Patterns Tip Line (DPTL) say that the inherent dangers lie in five basic consumer categories: social media, financial and insurance, education, smart devices, and health and wellness. 

      As to how you spot them, Mark McCreary, co-chair of the Privacy and Data Security Group at Fox Rothschild, told ConsumerAffairs that these dark patterns are "intentional design choices" -- little tricks that companies use to nudge consumers into agreeing to terms or services they did not intent.  

      "Identifying dark patterns can be difficult, but there are some things to watch," he said. "For example, if you go to a website and try to cancel a subscription, they may ask if you really are sure you want to, or offer you a discounted rate or free month. When you try to opt-out of promotional emails from, they may ask if you are sure and says you can change my mind by just closing the page."

      McCreary said that what got the FTC's attention with Amazon was that users could not close their account easily online, but had to send a request to Amazon to have them close it.

      "At that point, you have to complete a form that contains the many reasons you should not close your account, and only after navigating that can you proceed by again asking Amazon to close your account."

      'Do this first, please.'

      A good number of dark patterns are hidden in processes. For example, a dark pattern that financial and insurance companies might try is getting someone to input their personal and payment information for a “free trial” and, then, once that trial period is over, the company automatically starts billing users without notifying them that the free trial is ending and payment is set to start. 

      Another questionable process the DPTL recently uncovered was with PictureThis – a supposedly free app but one that uses “a very deceptive means of tricking users to upgrade” to the paid version of the app which runs $29-49 a year. 

      Cancel? You must be kidding.

      The most egregious dark pattern is probably the one where it’s darn near impossible for a consumer to easily cancel a service or subscription.

      In addition to the FTC's recent fervor over cancellation hurdles, DPTL’s research turned up several big brands using this tactic. Probably the biggest was AT&T, which the researchers said made it “incredibly difficult” for a customer to cancel, forcing them to pore through a laundry list of “how-to’s” which did not include how to cancel.

      Rather, the company pushed that option to another section, telling the customer that they have to call a phone number and speak to someone in order to do that. 

      The Stanford researchers said consumers many also find cancellation challenges with DirecTV, Wall Street Journal, MyLife, Hello Fresh, Stamps.com, and 1-800-Flowers.

      You don’t really need that purchase expedited, do you?

      One DPTL tipster recently reported that the NFL was taking advantage of the dark patterns opportunities, too, with a “tricky design choice.” One that denies the consumer a choice, not to mention costs them money if they don’t need an item rushed their way.

      “When you purchase merchandise from their website, they default you to the expedited shipping fee, tripling the shipping cost, and you have to decline it rather than choose it,” the tipster wrote.”If you don’t catch it, you just paid a lot more in shipping fees than you should have to get your items.”

      Is this for real? Yep. ConsumerAffairs tried it out on NFL.com when attempting to purchase a Josh Allen Buffalo Bills jersey. This is what we saw when we went to check out and, indeed, the default shipping setting was “expedited shipping” and $10 more than the “standard 3-7 days” option.

      ConsumerAffairs reached out to the NFL to ask its reasoning for taking this posture, but did not immediately get a response.

      How you can help

      The FTC and CFPB are doing all they can, but staying informed and sharing what we know can go a long way in keeping dark patterns from creating expensive headaches.

      If you notice a website or app that’s up to something suspicious or you feel forced into giving personal details or discover hidden fees, sharing that with DPTL and other consumer forums like ConsumerAffairs will help the cause and give federal agencies some added firepower.

      To file a DPTL report of a dark pattern, all you have to do is go here and share some pertinent details.

      The Federal Trade Commission (FTC) isn’t one to make its bloodhound's agenda public, but over the past few years, it’s been doggedly hunting down companies...

      If you have some spare cash, here’s where it can earn an attractive return

      If stocks are too unpredictable, you now have options

      An annual survey by the Federal Reserve shows millions of Americans live paycheck-to-paycheck and lack the funds to pay an emergency expense. But if you have been able to tuck some cash away you may be looking for a place to put it.

      Until recently bonds and certificates of deposit (CD) paid almost nothing but that has changed in recent months as the Fed has begun raising interest rates. So, what are your options?

      The experts we consulted say there are currently three attractive options:

      • CDs

      • Money market funds

      • U.S. Treasury bonds

       Andrew Boyd, a financial adviser at Finty, says a high-yield savings account is now a very good place to park cash. After paying less than 1% for more than two decades some of these accounts pay more than 4%. And the money is FDIC  insured up to $250,000. 

      Money market accounts

      “Money market accounts can be another attractive option,” Boyd told ConsumerAffairs. “They often offer check-writing privileges, which can make your cash more accessible.”

      Money market accounts are offered through financial institutions and are also FDIC insured up to $250,000. While you can access your money most funds limit the number of transactions you can make.

      “Money market funds can generate different returns, depending on how they invest, but the value per share is fixed,” said Patrick Wells, portfolio manager at Pinnacle Associates. “Each share will receive this amount back, whether you need the funds tomorrow or next year. There is stability in the principal amount, but the returns might vary as the holdings mature and are reinvested.”

      Young Pham, a financial expert and investment analyst affiliated with BizReport, a business and finance publication, says CDs can be an attractive place for cash if you don’t need the money for a while and think rates might soon start to decline. Even if rates fall, your interest rate is locked in.

      “So, for example, a bank could offer a CD that lets you lock $10,000 in an account for a period of, say, seven years and earn an interest rate of around 5% per annum,” Pham told us. “In essence, you will be paid $500 a year in interest, and when the seven years elapse, you get your $10,000 back. CDs are considered a low-risk vehicle, especially if you choose banks or credit unions that are covered by the FDIC. This means that even if the bank was to go under, you still get your deposits back up to $250,000.”

      Treasury notes

      U.S. Treasury bonds also offer an attractive option, backed by the “full faith and credit of the U.S. government.” Tim McCarthy, co-CEO and chairman at marketGOATS, says the current environment is attractive because you don’t have to tie up your money for five to 10 years.

      “Given that the yield curve is inverted – meaning committing long term gets an investor no higher interest than short term treasuries – I can understand why many investors are choosing to remain in shorter durations, such as one to three years. So, it can make sense to leave a significant portion in this category, especially if you think you want the flexibility to change your mind.”

      Interest rates and bond yields can fluctuate daily so it calls for some research before deciding where to put the money. A good place to start is ConsumerAffairs’ guide to CDs, which identifies some of the most attractive current offerings.

      An annual survey by the Federal Reserve shows millions of Americans live paycheck-to-paycheck and lack the funds to pay an emergency expense. But if you ha...

      Christmas Tree Shops will liquidate all of its stores

      The company filed for bankruptcy in May 2023

      Following in the most recent footsteps of Bed Bath & Beyond and David’s Bridal, Christmas Tree Shops is officially on the chopping block. 

      The discount retailer announced it will liquidate all of its 72 brick-and-mortar retail stores after defaulting on its $45 million bankruptcy loan. The company filed for Chapter 11 bankruptcy back in May, and will now be forced to liquidate its inventory in the coming weeks if it doesn't get an investor fast. 

      According to the company, the decision to file for bankruptcy was strictly a financial one, and executives had faith in their efforts to move forward and regain strength. 

      “After careful consideration, we determined that availing ourselves of the Chapter 11 process was the best way to address our burdensome liabilities,” said Marc Salkovitz, chairman of Christmas Tree Shops, in the official bankruptcy filing. “This is strictly a financial restructuring. Our operations are sound. 

      “By increasing our financial flexibility, we will be able to focus on continuing to delight our loyal customers with a wide selection of unique goods at affordable prices. We continue to believe that given its storied history and strong customer loyalty, Christmas Tree Shops has tremendous potential, and we remain committed to the long-term success of the business. 

      Stores could be closing soon

      Shoppers can expect to see liquidation sales at their local Christmas Tree Shops starting as soon as July 7. The goal for the company is to get as many stores emptied, with all goods sold, by the end of August. 

      This timeline could mean that many stores could be closed within just a few weeks. The company is headquartered in Massachusetts, with the large majority of retail locations in the Northeast, and there is already an order of store closures throughout the state. 

      Store closures have started in the last few months, with nearly a dozen stores closing across the country, including in Georgia, Florida, Virginia, New York, Massachusetts, Michigan, and Pennsylvania.

      The company’s plan was to close 10 of the stores that were underperforming the most at the time of filing for bankruptcy in an effort to gain some ground; however, that didn’t go as expected. 

      For consumers in need of anything from linens to home goods, holiday decorations or bathroom essentials, the Christmas Tree Shops liquidation sales are expected to offer steep discounts. 

      Following in the most recent footsteps of Bed Bath & Beyond and David’s Bridal, Christmas Tree Shops is officially on the chopping block. The discount...

      Still can’t find a home to buy? Here’s why.

      A Zillow study found the U.S. needs an extra 4.3 million homes

      In spite of much higher mortgage rates, home prices have maintained their near-record levels after surging during the pandemic. A new report from Zillow suggests there may be a good reason for that.

      There are so few homes on the market that demand still exceeds supply. How much? According to Zillow, the U.S. needs an additional 4.3 million homes to satisfy demand.

      "The U.S. housing market is like a high-stakes version of the game musical chairs," said Orphe Divounguy, senior economist at Zillow. "There are simply not enough homes for millions of people. Unless we address the shortage of smaller, more affordable, starter-type homes, we risk leaving families without a seat,  and it will only get worse over time."

      Ben Miller, CEO of SimpleNexus, a digital mortgage platform, agrees. He notes that conditions are marginally more promising for buyers as we head into the summer but lack of inventory remains a stiff challenge.

      ‘Demand has intensified’

       “With fewer homes available for sale, demand has intensified, leading to increased competition among buyers and resulting in bidding wars, an accelerated market pace and less room for negotiations,” Miller told ConsumerAffairs. “The share of all-cash buyers is the highest it’s been in nearly a decade, so buyers planning to use home financing need lenders to be extremely fast and responsive.”

      There are two reasons for the shortage of available homes. Builders never regained the pace of home construction they had before the 2008 housing market crash, so the number of households in search of a home has grown much faster than available homes.

      Compounding the shortage are current high mortgage rates, more than double what they were 18 months ago. Current homeowners who might like to move up or relocate are staying put, unwilling to trade their 3% mortgage rate for one close to 7%.

      Thinking outside the box

      Miller says the current situation requires borrowers and lenders to think outside the box and come up with financing solutions that make sense.

      “This could include combining incomes with a family member or friend to purchase a home together, renovating a current home to fit future needs, or extending a home search to new areas to find something that makes sense for the buyer’s lifestyle,” he said.

      “Considering that mortgage debt carries much lower interest than other forms of debt, consumers with a lot of personal debt who are ready to make a home purchase could even come out ahead on overall monthly expenses by consolidating their debt into a home loan.”

      Mortgage rates could fall in the future, but if they did that would probably mean that economic conditions have worsened. Miller says today’s mortgage rates are not that high compared to before 2008, but back then home prices were much lower than they are today so monthly payments were lower.

      If rates were to decline by a point or two and home prices declined a bit, it could be enough to improve affordability. Miller thinks that trend could be in place but it might take some time to play out. 

      “Buyers should not put off buying a home just because the rates were better two years ago than they are today,” he said.

      In spite of much higher mortgage rates, home prices have maintained their near-record levels after surging during the pandemic. A new report from Zillow su...