Current Events in September 2023

Audi is recalling 7,499 model year 2021 Audi S7s, S6 Sedans, RS7s, RS6 Avants, A6 Allroads, and model year 2019-2021 A7s & A6 Sedans.

An incorrectly labeled brake fluid cap may have been installed, which can result in the use of the wrong type of brake fluid.

Incorrect brake fluid can reduce braking ability and increase the risk of a crash.

What to do

Dealers will inspect the brake fluid reservoir cap and -- if necessary -- replace it free of charge.

Owner notification letters are expected to be mailed October 17, 2023.

Owners may contact Audi's customer service at (800) 253-2834. The number for this recall is 47T9.

The United Auto Workers Union (UAW) has set a Thursday strike deadline against the three U.S. auto manufacturers – Ford, GMl and Stellantis (Chrysler).

The union has reduced its demand for a 40% pay raise to a 36% increase but the two sides are still said to be far apart. A strike against all three companies would essentially shut down auto manufacturing in the U.S., though some foreign car companies with plants in the U.S. would continue to operate.

But after a pandemic that snarled supply chains, reducing vehicle output and raising prices, Karl Brauer, executive analyst at iSeeCars.com, says a strike would likely impact consumers in the market for a car or truck.

“Domestic brands make up 40% of U.S. market share, meaning a lengthy strike will undoubtedly impact market prices,” Brauer told ConsumerAffairs. “If inventory levels drop substantially at domestic dealers, prices for those models will rise, likely pulling competitive pricing up. Higher costs could further slow sales, with consumers already pushing back against today’s high car prices by seeking value in the used market.”

And that, no doubt, would cause used car prices to rise as well. During the pandemic used car prices hit a record high and only began falling in June. A shortage of new cars would probably lead to more used car sales, pushing prices back up again.

Car prices could go higher

Even if there isn’t a strike – or just a short one before a contract is reached – carmakers will have to pay union employees a lot more than they do now. The contract will cover the next five years but the union is demanding a large portion of the increase to be front-loaded.

After demanding 20% of the increase in the first year of the contract, the union now says sit would accept an 18% increase in the first year. Some of the higher labor costs would likely end up in the sticker price, though domestic manufacturers would have to be mindful of foreign competition.

New car prices are already as high as they have ever been. Kelly Blue Book reports the average transaction price (ATP) of a new vehicle in July of $48,334.

General Motors is recalling 9,423 Webasto Portable Charging Cords (Gen 3), part number 24044913.

The cords contain incorrect software and may fail to discontinue charging if the ground connection is lost.

A portable charging cord that loses its ground connection while in use may result in electric shock, causing an injury.

What to do

Dealers will inspect and replace the portable charging cord -- as necessary -- free of charge.

Notification letters are expected to be sent to owners October 16, 2023.

Owners may contact GM customer service at (888) 988-7267. GM's number for this recall is N2324073000.

While many retailers have been getting consumers ready for fall for a few weeks now with their pumpkin flavored drinks and treats, Wendy’s is just now jumping on the pumpkin bandwagon. 

The fast food restaurant is debuting a new Pumpkin Spice Frosty and Pumpkin Spice Frosty Cream Cold Brew as of September 12. 

“Wendy’s is helping turn our fans’ cravings into reality this fall by introducing our new Pumpkin Spice Frosty,” said Lindsay Radkoski, chief marketing officer for The Wendy’s Company. “From our summertime Strawberry Frosty to last year’s holiday Peppermint Frosty, and now our fall Pumpkin Spice Frosty, we are all about meeting our Frosty fans where they are by bringing familiar and iconic seasonal flavors to the menu."

Coffee and dessert for fall

For consumers looking for fall-inspired desserts or coffees, the two new offerings at Wendy’s can check both items off your list. 

The Frosty texture will remain the same, while the flavoring will feature some of the key fall spices, like cinnamon and nutmeg, along with the typical pumpkin spice. During the fall season, the Vanilla Frosty will be temporarily off the menu, while the Chocolate Frosty will still be available for the next few months. 

The Pumpkin Spice Frosty Cream Cold Brew is made in the same way as the other flavors in this line of coffee drinks, just with the added pumpkin – cold brew coffee mixed with pumpkin flavoring and the Frosty creamer, all over ice. 

“We’re always looking for ways to provide fans the familiar flavors they love with a Wendy’s twist, and that’s exactly how the Pumpkin Spice Frosty Cream Cold Brew came to be,” said John Li, global vice president of culinary innovation at The Wendy’s Company. “We took the iconic pumpkin spice flavor that fans look forward to every year and blended it with our tried-and-true Frosty creamer, for a fall experience fans can’t find anywhere else.” 

Try the fall flavors for less

Wendy’s also has two ways for consumers to try the new Pumpkin Spice Frosty for less this fall. 

Consumers can get a Frosty Boo! Book for $1 at their local Wendy’s, which comes with coupons for five free Junior Frosty treats. Between now and October 31, these coupon books will be available at Wendy’s locations across the country – in-store, at the drive-thru, online, or through the mobile app. 

Uber One members are eligible for a buy one get one free coupon for the new Pumpkin Spice Frosty. This deal is active from September 13-19, and if consumers spend at least $15 on their order, they’re also eligible to add on a medium French fry for free. 

Is there a worse consumer gnat than an overdraft fee? You miscalculate the timing of a deposit, and before you know it, you’ve been charged $34 for being overdrawn $5.

It’s a mistake you think is worthy of a mulligan, but one the bank seems to relish, especially when more transactions come in before you get the matter settled and the dominoes start to fall everywhere.

Regions Bank had its hands slapped for illegal surprise overdraft fees by the Consumer Finance Protection Bureau (CFPB) a year ago. Other banks probably sat up and took notice, becoming less aggressive than they were pre-pandemic and the haul on fees was greatly reduced.

But the candy jar of overdraft and non-sufficient funds (NSF) revenue is still tempting enough for banks to charge an estimated $7.7 billion for those consumer indiscretions in 2022.

The number of overdraft-related complaints quadrupled at the CFPB earlier this year and a new research study by PYMNTS’ research found that 39% of consumers who live paycheck-to-paycheck and struggle to pay bills suffer transaction declines and overdrafts, compared to 6.3% of those not living paycheck to paycheck. 

And where it stops, nobody knows…

The study says that a lot of the pain fell on the shoulders of millennials and the “credit marginalized” — consumers who experienced at least one credit rejection in the past year.

Baby boomers stay out of harm's way, but interestingly enough, nearly 25% of those making $100,000 or more a year found themselves guilty of attempting transactions without sufficient funds. And they, along with Gen X’ers wound up paying overdraft fees at a higher rate than other consumers.

There are ways around this, but you’ll need to get clarifications

Overdraft fees can cut two ways. PYMNTS said the average flat fee consumers faced was $29, but when every dollar counts, that $29 can go a long way.

The other knife wound is that 90% of consumers who experienced overdrafts faced even further hardship, with nearly 66% of overdrafts leading to broader credit accessibility issues like impaired credit scores or the lack of funds to pay other charges if things start to snowball.

How can you avoid the overdraft quicksand? ConsumerAffairs reached out to some financial experts to get their two cents on how consumers can avoid overdraft and NSF issues. 

“It can be challenging as a consumer to avoid fees completely,” said Joel Schwartz, founder and co-CEO of DoubleCheck, a fintech helping financial institutions provide consumers’ transparency and control for NSF fees. 

“Some financial institutions offer “free checking” which sounds like a fantastic value, right? Turns out that the people who developed the ‘free checking’ concept knew that the consumers who were most interested in free checking would be the ones most likely hit with overdraft and other account fees,” he said.

To that end, avoiding fees might mean you have to jump through your bank’s fee requirements hoops. Those can vary bank-to-bank, but most general requirements include maintaining a minimum balance of a specified amount, setting up direct deposit, etc.

Schwartz says you can pore through the fine print if you want but it may be easier just to call your local branch and ask them what the lowdown is. He also suggests setting up low-balance alerts.

Overdraft Protection can be a good idea depending on the situation, but there may be fees associated with overdraft protection and the perception that it covers everything is misguided. Before signing up for that, you’d be wise to learn what’s covered and what’s not.

So can “automatic Transfers,” says Investment analyst and banking guru Young Pham. “Set up automatic transfers from your savings account to your checking account to cover any potential shortfalls. This proactive approach can prevent overdrafts and related fees.”

'I promise, I’ll never do it again!'

Pham says that some banks offer Overdraft Forgiveness (aka “Overdraft Courtesy”) programs, where they waive the first overdraft fee or provide a grace period to replenish your account without penalties. Be sure to check if your bank provides such options.

But be careful because these things may look like a duck but they may not walk like a duck.

For example, FindABetterBank (FABB) says that when you choose Overdraft Forgiveness – which works for both checks and debit card purchases – your bank will cover the cost of purchases that cause your account to go below zero.

What this will do is help prevent your checks from bouncing, but what it won't do is keep you from paying a fee if you don't have enough money in your account. 

“While this feature can be useful in emergencies, it can also lead you to racking up fees for debit card purchases that you wouldn’t make if you knew they’d overdraft your account. Cue the infamous $35 cup of coffee,” FABB warned.

In 2022 ConsumerAffairs published a study that found 63% of respondents were hoping for a housing market “crash,” thinking a plunge in prices would make it easier for them to buy a home.

In early 2023, home prices on a national average basis began to go down. The median home price declined slightly for five straight months. Then in July, prices started rising again.

If there was a housing “crash,” economists say that might have been it. Shorter than predicted and not much of a crash at all.

But how can people afford homes priced near record highs when mortgage rates are now well over 7%, more than double what they were in late 2021? The truth is, many can’t. But that doesn’t seem to matter.

Those high mortgage rates are preventing current homeowners from selling. They don’t want to give up their 3% mortgage rate for one north of 7%.

There’s still a housing shortage

Because they aren’t selling, the housing shortage – which began more than a decade ago – is getting worse. There are enough buyers who can afford today’s high prices and lofty mortgage rates so that when a home comes on the market, there is still competition for it, which often drives up the price.

If you look at home sales you might think we are in the midst of a housing market crash. The National Association of Realtors (NAR) reports sales of existing homes fell 2.2% in July from the month before. Compared to July 2022, sales plunged 16.6%.

If sales fell by that amount and there were lots of homes on the market then it probably would be a housing market “crash” and prices would fall accordingly. But sales fell because there simply weren’t enough homes on the market and instead of pushing prices lower, may actually have contributed to the price increase.

Foreclosures, which were largely responsible for the last housing market crash, are almost non-existent these days. NAR reports distressed sales – foreclosures and short sales – represented 1% of sales in July, virtually unchanged from the previous month and the previous year.

'The supply just isn't there'

“Even in a market where demand has been hammered by higher rates, the supply just isn’t there,” Diane Swonk, chief economist at KPMG, told the Wall Street Journal. “Short of a flood in supply, it’s hard to bring these prices down.”

So now buyers are faced with the double whammy of higher home prices and high mortgage rates. NAR reports the median existing home price for all housing types in July was $406,700, an increase of 1.9% from July 2022, when the median price was $399,000. Prices rose in the Northeast, Midwest and South but were unchanged in the West, which has some of the most expensive housing markets in the country.

Mid America Pet Food of Mount Pleasant, Texas, is recalling one lot of Victor Super Premium Dog Food, Hi-Pro Plus.

The product may be contaminated with Salmonella. Pets with Salmonella infections may be lethargic and have diarrhea or bloody diarrhea, fever and vomiting.

No human or pet illnesses have been reported to date.

The recalled product, which consists of 644 cases sold in 5-lb bags with lot code 1000016385 on the back of the bag and Best By Date 4/30/2024, was shipped to various distributors and retailers nationwide.

What to do

Customers who purchased the recalled product should not feed it to pets or any other animals, but destroy it in a way that children, pets and wildlife cannot access, and wash and sanitize pet food bowls, cups and storage containers.

Consumers with questions may contact Mid America Pet Food at (888) 428-7544 from 8 AM to 5 PM (CT) Monday through Friday or by email at info@mapf.com.

Medical bills are the source of many consumer issues these days. They can lead to bankruptcy and ruin someone’s credit rating if they’re not paid.

Following up on its report “Medical Bills: Everything You Need to Know About Your Rights,” the U.S. PIRG Education Fund is warning consumers that the next time they’re faced with a hefty medical bill, they might find themselves pressured to sign up for a medical credit card. PIRG claims those cards are a win for the financial industry, benefiting from the millions of people who use those cards, but often a loss for the consumer.

PIRG’s latest report – “A bad deal: Why you don't want medical credit cards in your hand” – explains how medical credit cards work, why they add to the cost of a medical bill, and some alternative methods consumers can take to lower and pay off their medical bills. 

What are medical credit cards? 

A “normal” credit card and a “medical" credit card are kin, but they differ in an attractive way: deferred interest with 0% for an introductory period. And that angle is what companies pitch to consumers. 

The problem is that patients may not understand that “deferred interest” means that if they miss a payment, or can’t pay the full balance when it’s due, they’ll have to pay higher interest rates than most regular credit cards. 

According to the report, there's plenty of consumer-side pain. For one, there are loopholes in debt protection laws these cards can exploit.

Secondly, because they’re marketed inside of a healthcare office, the staffers who promote these aren’t prepared to fully explain or answer questions about the financial transaction. 

Thirdly, PIRG says consumers are powerless to keep these wolves keep away from your door. “The predatory terms of these financial products exacerbate the cost to the patient down the road. Patients need to know that they have other solutions available to them,” said U.S. PIRG Senior Director of Health Care Campaigns Patricia Kelmar. 

Listen to the advice of those who got hurt by a medical credit card

If you want proof, Evelina of El Cerrito Calif., has plenty in her review of Synchrony Financial’s CareCredit, the medical credit card she used to purchase her husband’s $5,400 hearing aids. 

Evelina’s not alone. In the 200 plus complaints about CareCredit to the CFPB, there are allegations of the company refusing to return overpayments, deceptive billing practices, and accounts closed without any explanation. 

CareCredit doesn’t have the market to itself. There's also AccessOne, PrimaHealth Credit, Wells Fargo Health Advantage, MedCredit Financial Services, and Comenity’s Alphaeon Credit Card. 

In response to this trend, several federal agencies have launched an inquiry into these high-cost specialty financial products, asking consumers to send in their stories. 

Consider the alternatives

PIRG says that there are four things consumers can do when they’re faced with a medical bill.

Verify your bill. Inside the ton of paperwork that you’ll get after a medical procedure, there should be an itemized list of what each thing costs. If you see something listed twice or a service that you didn’t receive or recognize, ask questions of both the provider and your insurance company.

Negotiate your bill. It doesn’t hurt to ask if you can get a discount and pay a lower amount, especially If you’ve been going to a doctor for a long time and they value you as a patient.

PIRG suggests that you can ask what the Medicare rate is and ask to pay that lower amount instead. “You should explain that you are willing to pay, but explain your financial limits,” PIRG suggests. “As with a payment plan, you should get the agreed-upon discount in writing.”

On top of referencing the Medicare rate, ConumerAffairs recently found an app that finds the cheapest price for medical procedures. You could use it to make more informed decisions when negotiating a price.

If it’s a non-profit hospital, ask about financial assistance. It’s a federal requirement for all nonprofit hospitals to have financial assistance policies, so if that’s where you’re getting your medical procedure done, ask if you qualify for free or discounted care. 

Despite the fact that the provider claims you have already been screened, PIRG says that you may still apply for this aid. “In some cases, financial aid is denied because the provider lacks the information necessary to know if you qualify, and your application can provide that missing information,” PIRG added.

Use another credit source. The first thing you shouldn’t do, says PIRG, is to even apply for one of these credit cards. In short, the credit card company “owns” you. They set the terms, conditions, and rate and you are pretty much powerless to affect any change. 

“We have to put an end to the peddling of medical credit cards in health care settings. When offered in a doctor’s office, or a hospital, patients might not be in the best state to make a decision about signing up for a high-interest card,” Kelmar said.

“MDs have the expertise to prescribe drugs -- not financial advice. You wouldn’t go to an investment banker for a medical diagnosis. Evidence shows that medical credit cards can worsen debt and even lead to bankruptcy. And your provider or hospital can’t cure that.”