Current Events in December 2024

Auto lenders that offer a strong digital experience through their websites and mobile apps have much higher customer satisfaction levels and greater self-service usage. But according to the J.D. Power 2024 U.S. Automotive Finance Digital Experience Study

 40% of automotive finance digital experiences fail to meet basic standards for modern design, ease of use, and problem-free operation.

The study highlights that only 2% of auto finance websites and apps deliver a truly comprehensive digital experience, meaning they allow customers to verify payoff amounts, view account balances, and select payment amounts.

“Lenders have a huge opportunity to build customer loyalty and advocacy by fostering streamlined, two-way communication, but far too many are treating their digital properties as a transactional portal that only exists for bill pay,” said Patrick Roosenberg, senior director of automotive finance intelligence at J.D. Power.

“These digital properties should be seen as two-way portals to communicate with customers on a month-to-month basis, while improving customer satisfaction and reducing cost to serve,” he said.

Lags behind others

Additionally, the auto finance industry lags behind other sectors like wealth management, retirement plans, and insurance in terms of digital experience.

The study also found that non-captive auto finance apps (those not tied to a specific brand, like Chase Auto) tend to outperform captive apps (like GM Financial), likely because non-captive apps use more advanced mobile banking frameworks.

GM Financial ranked highest among captive lenders in digital experience satisfaction, while Chase Auto led among non-captive lenders. The study is based on responses from over 6,000 automotive finance customers.

For more information about the U.S. Automotive Finance Digital Experience Study, visit https://www.jdpower.com/business/us-automotive-finance-digital-experience-study.

Florida has a new program called "Elevate Florida" and it's not about raising the state's image or profile. It's about raising its houses in areas that are prone to flooding. 

Florida’s emergency management director announced the program this week. It offers grants and low-interest loans to assist with home elevation, which is expected to reduce future insurance claims and legal disputes as flooding and storms become more frequent.

Kevin Guthrie, executive director of the Division of Emergency Management, said the program will integrate existing federal and state resources for the first time.

Homeowners impacted by recent storms can apply for grants to elevate their homes above the base flood level, though they must contribute 25% of the total cost.

A new idea?

“This has never been done before,” Guthrie said. “When we presented this, the mitigation and resiliency guys at FEMA said that no one has thought of that before.”

To cover this down payment, homeowners can access Small Business Administration (SBA) loans up to $500,000, with favorable terms (no interest for the first year and a 2.8% interest rate thereafter), he said.

The funding for the grants is essentially federal. Some $2 billion in federal disaster relief funds were made available after Hurricanes Debby, Helene and Milton hit Florida this fall. Most of that can be used to assist stricken homeowners, but some of it can also go to elevation and mitigation programs, Guthrie said. 

The federal government has allocated $2 billion in disaster relief funds for Florida, which can be used for elevation and mitigation projects. Additionally, homeowners may use the SBA loans to refinance existing mortgages, often at lower interest rates.

California Attorney General Rob Bonta today urged consumers to beware of package delivery text message scams. These messages often state that there’s an issue with your delivery and include a link to “resolve” the problem.

Package delivery scams can occur more frequently over the gift giving season, when holiday shopping is in full swing.

“The gift giving season is in full swing, and with it, comes a parade of package deliveries. Scammers can take this opportunity to use fake delivery text messages and fraudulent links to steal consumers money or personal information,” Bonta said.

“Beware of these scams, avoid clicking on unexpected text message links, and slow down — scammers prey on urgency.”

Follow these tips to protect yourself:

Be Suspicious of Unexpected Messages. Ignore unsolicited text messages, emails, or phone calls claiming issues with a package delivery. 

Don’t Click the Link! Never click on links from unknown senders or emails claiming to be from a delivery company. Instead, go to the official carrier website and enter your tracking number directly.

Be Skeptical of Payment Requests. Delivery companies do not ask for payment to release a package or correct a delivery error. Any such request is a scam.

Look for Red Flags. Scammers often use words like "urgent action required" to pressure you into clicking a link. Be cautious if the message lacks personalization (e.g., "Dear Customer") or contains spelling or grammar errors.

Enable Package Alerts. Sign up for alerts from trusted carriers like UPS, FedEx, or USPS. These alerts will notify you of package updates directly from the source. 

Monitor Your Financial Accounts. Regularly check your bank and credit card statements for unauthorized transactions, especially after suspecting a scam.

Texas Attorney General Ken Paxton has filed a lawsuit against 3M and DuPont for misleading consumers about the health risks of products made with "forever chemicals."

These chemicals, known as PFAS, were used in products like Teflon and Scotchgard.

PFAS are called "forever chemicals" because they don’t break down easily in the human body or the environment. They can contaminate water, harm natural resources, and accumulate in people’s blood. These chemicals are linked to cancer and other health issues.

“These companies knew for decades that PFAS chemicals could cause serious harm to human health yet continued to advertise them as safe for household use around families and children,” Paxton said in a press release. “Texas is taking action to penalize these companies and hold them accountable for deceiving Texans into buying consumer products without vital information.”

Texas is seeking civil penalties of up to $10,000 per violation under the state’s Deceptive Trade Practices Act, along with interest on damages.

Other states have filed similar suits. Ohio recently settled with DuPont for $110 million, and 3M is paying billions in settlements for its role in producing using PFAS in firefighting foams.