Current Events in April 2025

Key takeaways

• Court Overturns CFPB Rule on late fees: A federal court in Texas vacated a Biden-era Consumer Financial Protection Bureau (CFPB) rule that capped credit card overdraft fees at $8. The court's decision followed a settlement between the CFPB and several plaintiffs.

• Legal Grounds for the Overturning: The CFPB acknowledged it overstepped its authority under the Credit Card Accountability Responsibility and Disclosure Act and violated the Administrative Procedure Act. The Trump administration supported the plaintiffs, leading to the CFPB requesting the court to nullify the rule.

• Stakeholder Reactions and Impact: The plaintiffs claimed the rule would have negatively affected consumers by increasing late payments and reducing credit access, especially for those with low credit scores. 

A federal court in Texas has vacated the Consumer Financial Protection Bureau’s rule on credit card late fees a day after the American Bankers Association and other plaintiffs reached an agreement with the bureau to end a lawsuit over the rule.

ABA last year joined the U.S. Chamber of Commerce and other plaintiffs in challenging the rule in U.S. District Court for Northern Texas, arguing the bureau exceeded its statutory authority. Under the terms of the settlement, the CFPB acknowledged it exceeded its authority under the Credit Card Accountability Responsibility and Disclosure Act, and that the late fee rule violates the Administrative Procedure Act. The CFPB asked the court to vacate the rule, which it did.

The rule, issued during the Biden administration, limited late fees to $8, after determining that amount was the actual cost . In other words, the bureau ruledincurred by the lender. In other words, the rule stated that lenders could not make a profit on late fees. 

In a joint statement, ABA and the other plaintiffs welcomed the court’s decision.

“This is a win for consumers and common sense,” the plaintiffs said. “If the CFPB’s rule had gone into effect, it would have resulted in more late payments, lower credit scores, higher interest rates and reduced credit access for those who need it most. It would have also penalized the millions of Americans who pay their credit card bills on time and reduced important incentives for consumers to manage their finances.”

Under the Biden administration, the CFPB said the rule would save U.S. consumers an average of $220 a year.

Key takeaways:

• 72% of U.S. households worry about a coming recession; 85% concerned about tariffs hitting personal finances

• Majority across political spectrum believe tariffs will harm the economy

• 83% of consumers say they plan to change shopping habits in response to rising prices

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 As tariff hikes ripple through the U.S. economy, a new report from Numerator, a leading market research firm, reveals growing consumer anxiety over rising costs, recession fears, and stock market volatility.

According to the April 2025 surveys, 72% of U.S. households are now very or somewhat concerned about an impending recession — a sharp increase in public unease that spans political affiliations and income levels.

“Consumers are increasingly concerned about the impact of tariffs, both on their own finances and the overall economy,” said Dr. Leo Feler, Chief Economist at Numerator. “This is not just a partisan issue.”

Tariffs spark economic fears and behavior shifts

The surveys show a surge in tariff awareness, with 89% of consumers now aware of recent or proposed tariffs — up significantly from 53% in December 2024. As consumers learn more about how tariffs affect prices, 85% now express concern about their financial impact.

Concerns are highest around:

• Groceries (60%)

• Household goods (42%)

• Gasoline (40%)

• Automobiles and appliances, which saw the largest jumps in concern since February

In response, a staggering 83% of shoppers plan to adjust their spending. Top strategies include:

• Using more coupons and sales (48%)

• Delaying purchases until prices stabilize (32%)

• Stocking up ahead of price hikes (31%)

• Buying fewer imported goods (32%)

• Switching to U.S.-made products (25%)

While many are rethinking spending, confidence in the economy is declining: only 33% believe the economy will be stronger in a year, while 52% expect it to worsen.

Recession fears and stock market jitters

The survey highlights a broad fear of economic downturn, with 72% fearing a recession, including 63% in regions that strongly supported President Trump. Despite Republican optimism in some areas, a majority of households across the board believe tariffs will be harmful to the economy over the next year.

In addition:

• 70% of U.S. households are concerned about recent stock-market volatility

• Among Trump-supporting regions, concern remains high at 60%

• Younger and more educated respondents were more likely to view tariffs negatively

Even among households that are unsure about tariffs, confidence in their economic benefits is limited — fewer than one-third believe tariffs will actually help the U.S. economy.

Consumer behavior as economic bellwether

Dr. Feler warned that declining sentiment may foreshadow a pullback in consumer spending, a key engine of the U.S. economy.

“Changes in consumer sentiment are a leading indicator for changes in purchasing behaviors,” he noted. “If consumers remain this pessimistic, we can expect cutbacks in consumption — and a potential recession later this year.”

With prices rising and uncertainty growing, consumers are clearly preparing for a more difficult financial landscape, signaling a shifting economic tide that could reshape shopping and spending habits across the country.

Key takeaways:

• Royal Paper, a key supplier for Trader Joe’s and Kroger, is filing for bankruptcy amid a planned asset sale

• The company says operations will continue as normal during the transition to new ownership

• Toilet paper remains a sensitive commodity for consumers, with pandemic-era shortages still fresh in memory

Royal Paper has filed for bankruptcy. Why should you care? Well, not to sow widespread panic buying but Royal supplies toilet paper and other paper products to Trader Joe's, Kroger and other major outlets.

The bankruptcy isn't necessarily a crisis for those without bidets or other cleansing methods though. It's part of a sale of the Arizona company's assets to Sofidel America Corp., the companies announced.

The sale is subject to court approval but Royal said it "intends to move through this process while operating in the ordinary course – providing the high-quality products that its customers and partners rely on."

"Our team has been working diligently to strengthen our financial foundation in the face of difficult macroeconomic circumstances and other challenges facing Royal,” said Steve Schoembs, Chief Executive of Royal.

The company sells paper goods under a variety of brand names and store brands. 

"Some (stores) prefer to carry one of our proven retail brands like Earth First, SuperSoft, and EcoFirst. Others want to build their brands by working with us to create their own private label brand," the company said. 

A vital staple

Toilet paper is no small consideration for American consumers. During the early days of the COVID pandemic, supermarkets' paper goods shelves were bare as worried shoppers stocked up on vital supplies.

Driving the frenzy was the closure of many offices and institutions, where many consumers normally used on-site bathrooms. Those who suddenly began working from home found themselves running through their paper goods supplies, sparking an anguished reaction comparable to the fear of infection.

Paper manufacturers were caught with their plans down and did not have vast quantities of home-style toilet paper in stock. The office variety typically comes in huge rolls and is thinner than the more luxe version preferred by homeowners. 

Thus, there was an uncomfortable waiting period while supplies caught up with demand. 

Key takeaways

• Scammers are increasingly using text messages for fraud (smishing): As technology has evolved, so have scams — moving from phone calls and emails to text messages. Smishing scams are now a common way for scammers to reach potential victims.

• Common smishing hooks use urgency, curiosity, or impersonation: Examples include fake job offers, urgent payment warnings, and mysterious or casual messages from unknown senders. These tactics are designed to prompt a response, confirming your number is active.

• Engaging with scam texts can lead to identity theft: Once a scammer knows your number is active and engages you in conversation, they can extract personal details and potentially steal your identity. Official sources like the FTC warn against interacting with unknown texts and emphasize that legitimate organizations rarely communicate sensitive matters via text.

Back in the day, when most people had landlines, scammers relied on the telephone to hook their victims. Some scams – such as the grandparent scam – still rely on a phone but over the years, scams have evolved with technology.

When the internet came along, scammers used email to target victims. Remember the Nigerian prince scam? An email claimed to be from a Nigerian prince who had been overthrown and he need to get millions of dollars out of the country and he would be happy to give you a cut if you would provide your bank information so he could transfer the money.

Common phrases

Lately, scammers are using text messages in what are known as “smishing” scams to connect with victims. ConsumerAffairs has collected some of the most common messages:

• “Hi, how’s it going?”

• “Hello, I’m Sophia from Bonanz. Your background and resume have been recommended by several online recruitment agencies.”

• “Final Reminder: You have an unpaid toll. Failure to remit by April 16, 2025 will result in additional penalties.”

• “I was cleaning out my contacts and found your number. Who are you?”

• “Did you happen to see my message from yesterday?”

• “Hello, I am Lena, a human resources customer service representative of Adjust. Your resume has been recommended by several online recruitment companies.”

• “A pending debit of $1,174 at Target is processed. If you did not initiate it, visit (link).”

The scammers may have a list of phone numbers or they may be dialing numbers at random. But if you respond and start a conversation, the scammer knows it is a working number and will quickly learn your name.

If the contact develops into a conversation, the scammer will learn other things about you – perhaps enough to begin stealing your identity. 

The FTC's advice

The Federal Trade Commission has also been collecting scam texts and cautions consumers that these texts often: 

• Promise free prizes, gift cards, or coupons — but they’re not real

• Offer you a low or no interest credit card — but there’s no deal and probably no card

• Promise to help you pay off your student loans — but they won’t

Scammers also send fake messages that say they have information about your account or a transaction. Scammers might say they’ve noticed some suspicious activity on your account — but they haven’t.

It’s helpful to remember that job recruiters don’t off jobs in a text and if the message is from a number you don’t know, it’s best to delete it without responding.

Key Takeaways:

• The average American’s retirement “magic number” for 2025 is $1.26 million—down $200K from 2024, yet still out of reach for many.

• One in four Americans with retirement savings have only one year or less of their annual income set aside.

• More than half of Americans fear outliving their savings, but over a third have taken no steps to prevent it.

As inflation cools, Americans’ expectations for what they need to retire comfortably are shifting, but the gap between goals and reality remains fairly wide. According to Northwestern Mutual’s newly released 2025 Planning & Progress Study, the average “magic number” Americans believe they’ll need to retire has dropped to $1.26 million. That’s a $200,000 decrease from 2024’s $1.46 million estimate and roughly even with 2022 and 2023 expectations.

While this lower figure might reflect decreased anxiety over inflation—which dropped from 6% in 2023 to around 3% in 2024, it doesn’t mean people are feeling more secure. In fact, financial anxiety remains widespread. 

A full 25% of Americans with retirement savings report having only one year or less of their annual income set aside. And more than half (51%) of Americans believe it’s at least somewhat likely they will outlive their nest egg, with only 16% saying it’s “very unlikely.”

“Americans' 'magic number' to retire comfortably has come down—but it remains high, far beyond what many people have actually saved,” John Roberts, chief field officer at Northwestern Mutual, said in a press release. He added that people’s perceptions may be adjusting as inflation expectations settle, but concern about retirement preparedness has intensified.

Retirement savings: A generation gap

The study highlights troubling disparities in retirement readiness across generations. Generation X, many of whom are nearing retirement age, appear particularly vulnerable: 52% have saved three times their current income or less, and a majority (54%) don’t believe they will be financially ready to retire.

In contrast, younger generations seem both more proactive and more optimistic. Gen Z, for instance, started saving at an average age of 24, plans to retire by 61, and over a third (34%) believe they’ll live to 100. Boomers, on the other hand, began saving around age 37, expect to retire by 72, and only 23% anticipate reaching the century mark.

Gen Z is the most confident generation in terms of retirement preparedness, not surprising since they have the longest time horizon. However, they may be overlooking key aspects of financial planning.

A majority (61% of Gen Z and 60% of millennials) admit they are overly focused on investing and wealth-building while neglecting protective measures like life and disability insurance—strategies boomers are more likely to embrace.

Monthly saving goals by age

For individuals aiming to hit the $1.26 million retirement target by age 65, starting age significantly impacts required monthly contributions. Assuming a 7% annual return:

• A 20-year-old would need to save $330/month.

• A 30-year-old would need $695/month.

• A 40-year-old would need $1,547/month.

• A 50-year-old would need $3,958/month.

These figures underscore the steep cost of delayed saving—a challenge for those who started late or had interruptions in their financial journey.

Northwestern Mutual recommends replacing roughly 80% of one’s pre-retirement income, but stresses that retirement plans should be customized. Factors such as desired lifestyle, retirement age, and living location heavily influence individual needs.

“Rules of thumb are everywhere, but nothing is better than a financial plan that’s personalized and custom-built just for you,” said Roberts.