Current Events in January 2025

The Consumer Financial Protection Bureau (CFPB) has ordered Wise, a global remittance company, to pay nearly $2.5 million for several violations, including deceptive advertising and failure to disclose accurate fees.

Wise, which offers international money transfer services through a mobile app and prepaid accounts, was found to have misled U.S. customers regarding ATM fees, exchange rates, and other charges.

Wise, headquartered in the UK, operates in the U.S. through Wise US, a nonbank remittance provider. The company provides services such as money transfers and prepaid accounts to over three million U.S. customers. Wise markets its services via a mobile app, and customers can also use prepaid debit cards to store and send money across borders.

However, the CFPB's investigation uncovered a series of misleading actions by Wise, leading to harm for hundreds of thousands of consumers.

One of the main violations identified by the CFPB involved Wise advertising inaccurate ATM fees and perks to U.S. customers. Wise had sent multiple communications to its customers, claiming lower fees and free withdrawals. The company advertised that 80% of its customers would experience lower ATM fees, but this benefit largely did not apply to U.S. consumers.

Additionally, U.S. customers were led to believe they would receive two free withdrawals of over $200 each, but in reality, the withdrawals were capped at $100 each.

Furthermore, the CFPB said, Wise failed to disclose accurate fees when consumers funded their prepaid accounts through credit cards using Apple Pay or Google Pay. The company also failed to properly disclose exchange rates and did not refund fees when funds were delayed and not available to recipients on time. 

As a result of these violations, the CFPB has required Wise to pay $450,000 in redress to harmed consumers, with the funds being distributed to those who lost money due to the company's deceptive practices. Additionally, Wise has been fined $2.025 million, which will be paid into the CFPB’s victims' relief fund.

The U.S. housing market faced a setback in December as pending home sales plunged by 5.5%, following a period of four consecutive months of growth. This decline, reported by the National Association of Realtors, reflects challenges posed by rising mortgage rates and near-record-high prices.

The Pending Home Sales Index (PHSI), a key indicator of housing market activity based on contract signings, fell to 74.2 in December. This marks a 5% decrease compared to the same month last year. The index had previously reached a cyclical low of 70.2 in July 2024. An index level of 100 corresponds to the contract activity seen in 2001.

NAR Chief Economist Lawrence Yun said the December report is not welcome news, but it is not entirely surprising. He noted that high mortgage rates have not significantly dented housing demand due to greater numbers of cash transactions.

The numbers also suggest that the combination of rates and prices has priced out many moderate-income buyers out of the housing market, with investors and upper-income consumers making most of the purchases.

Regional breakdown

All four U.S. regions experienced month-over-month declines in pending home sales, with the West seeing the most significant drop:

• Northeast: The PHSI decreased by 8.1% to 62.3, a 1.3% decline from December 2023.
• Midwest: The index fell by 4.9% to 74.3, marking a 6.9% year-over-year decrease.
• South: The PHSI slipped by 2.7% to 90.6, down 5.1% from the previous year.
• West: The index tumbled 10.3% to 57.7, also a 5.1% decline from December 2023.

Yun noted that contract activity fell more sharply in the high-priced regions of the Northeast and West, where elevated mortgage rates have significantly impacted affordability. He added, "Job gains tend to have greater impact in more affordable regions. It is unclear if heavier-than-usual winter precipitation impacted the timing of purchases."

As the housing market navigates these challenges, the outlook for early 2025 remains uncertain, with economic conditions and mortgage rates continuing to play a pivotal role in shaping homebuying activity.

Honda is recalling certain nearly 10,000 2025 Acura MDX vehicles. The touchscreen in the center console may go blank, resulting in the rearview camera image not displaying as intended. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 111, "Rear Visibility."

What to do

Dealers will replace the center information display unit, free of charge. Owner notification letters are expected to be mailed March 3, 2025. Owners may contact Honda's customer service at 1-888-234-2138. Honda's number for this recall is RKZ.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153) or go to nhtsa.gov.

To determine if your vehicle is included in this recall, go to the NHTSA recall page and enter the license plate number or 17-digit VIN.

Amazon.com is facing a lawsuit alleging that it secretly tracks consumers' movements through their cellphones and sells the collected data. The proposed class action lawsuit, filed in San Francisco federal court, claims that Amazon gains "backdoor access" to personal information by providing app developers with code known as Amazon Ads SDK.

This code, embedded in various apps, allegedly allows Amazon to collect vast amounts of geolocation data, including where consumers live, work, shop, and visit. The lawsuit contends that this data can reveal sensitive information about individuals, such as their religious affiliations, sexual orientations, and health concerns.

Felix Kolotinsky, the plaintiff in the case, claims that Amazon collected his personal information through the "Speedtest by Ookla" app on his phone. He alleges that Amazon's actions violate California laws against unauthorized computer access and seeks unspecified damages on behalf of millions of Californians.

“Amazon has effectively fingerprinted consumers and has correlated a vast amount of personal information about them entirely without consumers’ knowledge and consent,” the complaint said.

Amazon did not immediately respond to a request for comment. 

Similar to other cases

The lawsuit highlights growing concerns about companies profiting from personal data collected without consent. It follows a similar lawsuit filed by the state of Texas against Allstate, accusing the insurer of tracking drivers through their phones and using the data to adjust premiums or deny coverage.

In the Allstate case, Texas Attorney General Ken Paxton sued Allstate and its subsidiary, Arity, for unlawfully collecting, using, and selling data about the location and movement of Texans’ cell phones through secretly embedded software in mobile apps, such as Life360.

Allstate and other insurers then used the covertly obtained data to justify raising Texans’ insurance rates, the suit alleges.

“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” said Paxton. “The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable.”

Allstate said its actions were legal. “Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations,” Allstate said in a statement.

This case against Amazon raises important questions about privacy and data collection practices in the digital age. As consumers increasingly rely on smartphones and apps, the potential for unauthorized tracking and data exploitation becomes a significant concern.

The outcome of this lawsuit could have far-reaching implications for how companies collect and use personal data. It may lead to stricter regulations and greater transparency regarding data collection practices, potentially impacting the way businesses operate in the digital marketplace.

In a week set aside to stress good cybersecurity practices, officials in three states with strong consumer privacy laws are urging consumers to take advantage of these protections. 

California, Colorado and Connecticut have strong consumer protection laws that align with Global Privacy Control, an easy-to-use browser setting or extension that automatically signals to businesses that they should not sell their personal information to third parties, including for targeted advertising.

“Websites are constantly tracking and collecting our personal information for every purpose you can imagine,” Connecticut Attorney General William Tong said in a statement. “In Connecticut, you can now opt out of tracking across all sites by selecting a single simple option. It’s an easy step to take back control over your data and protect your privacy.” 

California Attorney General Rob Bonta called Global Privacy Control “the easiest way to limit the number of third parties that have access to our personal information and online behavioral data.” He called on mobile device manufacturers to develop an easy, GPC-like feature that consumers can use to signal the right to opt out.

Other states may also have laws that allow the use of tools to prevent the sale of their browsing data.

There are two ways to opt out by using GPC:

Option 1: Enabling Global Privacy Control

GPC is a signal that allows users to automatically indicate to the websites they visit that they would like to opt out of the “sale” of their personal information. The GPC signal is an easy way to opt out because a consumer does not have to make individualized requests to opt out on each website they visit. Download GPC via a browser extension. In fact, some browsers offer a GPC setting. 

Option 2: Opt Out One Business at a Time

Businesses that sell personal information must provide a clear and conspicuous link on their website that allows them to submit an opt out request. Businesses cannot require you to create an account to submit your request or ask for additional information to process your opt-out.

If you can’t find a business’s link, review its privacy policy to see if it sells or shares personal information for purposes of targeted advertising. If the business does, it must also include that link in its privacy policy. 

With the countdown on for Super Bowl Sunday, Aldi is preparing consumers with a special 25% off sale on game day necessities. 

The discount grocer is offering shoppers the discount on just about everything you’d need to watch the big game, including appetizers, chips, and more. 

"No matter which team fans root for, we can all agree that food is the MVP of the Big Game,” Dave Rinaldo, COO at ALDI, said in a news release.  

“We’re showing customers how to feed a crowd without sacrificing time, quality, or their budgets. Year-round, shoppers can fill their carts for less through the many actions we take, from displaying products in the boxes they arrive in, to our quarter cart system. Now we’re taking savings even further by offering up to a quarter back on game day favorites.”

What’s on sale

Here’s a look at what shoppers can expect from Aldi’s “Get a Quarter Back” savings event: 

• Season’s Choice Potato Puffs: $2.29 (originally $2.89)

• Appetitos Frozen Mozzarella Sticks or Cream Cheese Stuffed Jalapenos: $2.39 (originally $3.19)

• Kirkwood Buffalo Hot WIngs: $5.89 (originally $7.79)

• Clancy’s Restaurant Style Tortilla Chips: $1.49 (originally $1.95)

• Clancy’s Assorted Kettle Chips – Original or Jalapeno: $1.49 (originally $1.95)

• Mama Cozzi’s 16” Pepperoni Deli Pizza: $5.99 (originally $7.19)

• Casa Mamita Chunky Mild or Medium Salsa: $2.99 (originally $3.99)

• Park Street Deli Spinach or Dill Dip: $2.99 (originally $3.99)

• Bremer Original or Italian Meatballs: $5.49 (originally $6.49)

• Casa Mamita Salsa Con Queso: $1.79 (originally $2.19)

Shoppers can expect to find more discounted items part of the “Get a Quarter Back” savings event. Any eligible items will be marked with sale stickers throughout Aldi stores and on the Aldi website. 

However, Aldi says that exact prices – and availability – may vary slightly by location, though the discounts will hold up nationwide. 

The deals will run through the Super Bowl, which is Sunday, February 9. Shoppers can make the most of the discounts in-store, with curbside pickup orders, or with delivery orders on Aldi’s website. 

Freddie Mac reports its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 6.95% this week, the same as the previous week. For homebuyers, affordability didn’t get any better but at least it didn’t get worse.

"The 30-year fixed-rate has hovered between 6% and 7% for most of the last two and a half years, Sam Khater, Freddie Mac’s chief economist, said in a statement. “That trend continued this week, with the average rate remaining essentially flat at 6.95%. Driven by these higher rates and a persistent supply shortage, affordability hurdles still exist for many homebuyers and a significant number of them remain on the sidelines.”

That was evident in the latest update from the Mortgage Bankers Association, which reported that new mortgage applications plunged 2% from the week before

The Market Composite Index, a measure of mortgage loan application volume, decreased 2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index fell 9% compared with the previous week. 

With rates at this level, very few current homeowners are refinancing. The Refinance Index declined by 7% from the previous week and was 5% higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 0.4 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 7 percent lower than the same week one year ago.

MBA and Freddie Mac track mortgage rates in different ways and often come up with different results. Joel Kan, MBA’s deputy chief economist, says the average 30-year mortgage rate was 7.02% for the week ending Jan. 24.

Mortgage rates are linked to the yield on the 10-year Treasury bond, which has held steady over the last few months.

Following his recent appointment as the U.S. Transportation Secretary, Sean Duffy wasted no time in carrying out one of President Donald Trump’s first directives after reclaiming the White House: rewriting stricter fuel-economy rules put in place during the Biden administration.

Duffy’s action came just hours after his swearing-in on Tuesday, when he signed a memorandum ordering the National Highway Traffic Safety Administration (NHTSA) to reassess fuel-economy standards for vehicles produced from the 2022 model year onwards.

The new directive marked a sharp pivot from the previous administration’s push for ambitious fuel economy targets, which were seen by some industry experts as burdensome. Specifically, the Biden administration had set an aggressive standard requiring automakers to reach an average of 50.4 miles per gallon across their fleets by 2031.

Duffy, who had previously served as a U.S. congressman and Fox News contributor, criticized these standards, claiming they inflated the cost of new cars and represented unnecessary government overreach.

Fossil fuel-friendly

Duffy’s actions, signaling the Trump administration’s commitment to a fossil fuel-friendly energy policy, were not limited to fuel-economy rules.

The Transportation Secretary has also been tasked with implementing measures to reduce government support for electric vehicles (EVs). These steps align with the broader agenda to unwind policies that incentivized the manufacturing and purchase of electric vehicles, a major focus of the Biden administration.

The Inflation Reduction Act of 2022, passed under Biden, led to billions of dollars being invested in EV and battery production within the U.S. But the push for electric cars had shown signs of strain, particularly as demand for plug-in models remained tepid, and prices for EVs remained significantly higher than for gasoline-powered vehicles.

In recent months, automakers began to adjust their strategies in response to a perceived shift in the regulatory landscape. Companies like Stellantis NV and Volkswagen AG made significant decisions in alignment with the changing political climate.

Stellantis, for instance, postponed its first all-electric Ram pickup and made revisions to its plans for a Jeep plant in Ohio. Volkswagen, too, reversed plans to introduce its ID.7 electric sedan to the U.S. market. Meanwhile, Stellantis halted work on an electric Chrysler crossover and scrapped plans for Alfa Romeo to transition to exclusively selling electric vehicles by 2027.

Tailpipe pollution

The focus on electric vehicles was further complicated by the Environmental Protection Agency’s (EPA) tailpipe pollution standards, which compelled automakers to sell a greater share of electric models.

Under Trump’s administration, the EPA is expected to re-evaluate or rewrite these limits, potentially easing the pressure on automakers. 

Auto and homeowner aren't the only type of insurance that's in growing demand and price. Pet insurance is also getting pricer.

There's more demand because pet owners are facing high vet bills and are turning to pet insurance, making it a booming industry.

In 2024, pet insurance premiums reached $3.4 billion by September and likely totaled $4.5 billion by year-end, according to a new market report.

Why Pet Insurance is Expanding

• Vet Costs Are Rising: Veterinary prices increased 8.24% from 2023 to 2024, following similar jumps in previous years.
• More Pets: U.S. households now own 87.9 million dogs and 73.8 million cats, increasing demand for vet care.
• Strong Growth: Pet insurance premiums have more than doubled since 2019, with at least 20% annual growth.

Market Insights

• 10 Companies Dominate: The top 10 pet insurers control 90% of the market.
• Profitability Varies: Some insurers are profitable, while others struggle with high claims costs.
• Nationwide’s Policy Drop: The largest U.S. pet insurer, Nationwide, cut 100,000 pet policies due to rising veterinary costs.

Different animals, different rates

But just like with homeowners and auto insurance, rising vet bills are causing premiums to rise. While some industry estimates put the average rate increase at $1 a month each year for dogs and 50 cents for cats, that doesn't tell the whole story.

Rates are based on the pet's age, since older animals may have more healthcare needs. Also, rates could be higher for some breeds.

While many pet owners will tell you that having insurance on their pet saved a lot of money, you should ask the same sort of questions you would when shopping for any type of insurance. The California Department of Insurance offers these questions:

• Does the coverage offered have exclusion for preexisting conditions? If so, what exclusions? 
• Does the coverage exclude costs for treatment of a hereditary disorder?
• Does the coverage exclude costs for a congenital anomaly or disorder, which means a condition that is present from birth?
• Is there a deductible or coinsurance clause that causes any claim reimbursement to be reduced by a set amount? 
• Will the renewal premium be increased if a claim is made? If so, by how much?
• Is there a basis for reimbursement or formula for payment for veterinary services other than the actual amount of the billed services? 

During his presidential campaign, Donald Trump promised that he would work to lower food prices "immediately" once he took office. Now, some members of Congress are calling on him to follow through on that pledge.

A group of 21 Democratic congressmen and women sent a letter to Trump on Sunday evening, urging him to take swift action to address the high cost of groceries that continue to burden American families, according to a Supermarket News report.

The letter directly addresses Trump’s first week in office, accusing him of focusing on issues like birthright citizenship and pardoning individuals involved in the January 6th Capitol riot, instead of tackling the rising cost of food.

"Americans are looking to you to lower food prices," the letter states. "Instead of working to lower their grocery bills, however, you spent the first week of your administration attempting to end birthright citizenship, pardoning individuals who attacked the U.S. Capitol on Jan. 6, and renaming a mountain." The lawmakers express disappointment, urging the president to fulfill his campaign promise to make food more affordable for families.

Six recommendations

To help achieve this goal, the letter outlines six key recommendations for action. First, the lawmakers propose that Trump encourage the Federal Trade Commission (FTC) and the U.S. Department of Agriculture (USDA) to prohibit exclusionary contracting practices in the food industry. These practices, they argue, make it easier for major food retailers and brands to squeeze out smaller suppliers, contributing to rising prices at smaller stores.

They also recommend that the FTC issue guidance on potential violations of antitrust laws in the food industry, with a particular focus on the Robinson Patman Act, which prohibits discriminatory pricing practices.

Additionally, the letter calls for increased government support for small businesses in the food industry. They propose that the USDA increase the number of contracts awarded to very small businesses and consider the long-term costs of food industry consolidation in its contracting decisions.

The letter also suggests that Trump work with the DOJ and FTC to block problematic mergers and acquisitions in the food and agriculture sectors, as well as prosecute individuals engaged in price-fixing and other anticompetitive behaviors.

Another key recommendation is the formation of a joint task force between the Commodity Futures Trading Commission (CFTC) and the FTC to investigate price manipulation throughout the food supply chain. The lawmakers hope that these actions will help address the underlying factors driving up food costs, ensuring that consumers aren't unfairly impacted by corporate greed.

Food prices vexing consumers

The issue of rising food prices has been a growing concern for Americans, especially with the sharp increases in the price of eggs, which have surged due to a severe bird flu outbreak. The USDA has predicted that egg prices will continue to rise by over 20% in 2025. Prices for beef, veal, dairy, fresh fruits, and nonalcoholic beverages are also expected to increase in the coming months.

When asked about the surge in food prices during her first press conference, White House Press Secretary Karoline Leavitt placed the blame on the policies of the previous administration. She pointed to the increase in egg prices under President Biden's administration, which saw a 65% increase in 2024, as evidence of ongoing inflationary pressures.