The Survive and Thrive Boomer Guide

Top consumer stories for 2019

As usual, most of the end-of-the-year, round-up articles are about national issues or corporations. If consumers are mentioned, it’s usually about how they’re responding to some corporation.

For the most part, it’s been a grim year for consumers. With the Trump administration that is so probusiness and anti-consumer, the not much is happening for consumers that's positive.

1. President Donald Trump is impeached.

We have a president who puts his personal interests above the public interest. He tried to bribe the Ukrainian president to get him to investigate a political rival. As a result, he’s been impeached by the U.S. House of Representatives. This is incredible.

How a percentage of the American can support Trump is a great mystery to me. He and his administration announce anti-consumer proposals almost daily.

In addition, we have a president who lies. Since he was elected, Trump has told more than 15,000 false or misleading claims. In 2019, he’s said that the U.S. economy today is the best in history, he passed the biggest tax cut in history, the U.S. has lost money on trade deficits, article II of the Constitution lets him do whatever he wants, windmills cause cancer, and toilet flushes are up. All are untrue.

2. Consumer rights and programs are under continual attack from President Trump and his administration.

The Republican conservatives want to reduce the size of government and give corporations more power. Almost daily, we read about how the Trump administration has done it or is planning to do it. Some examples include:

• The Trump administration’s decision to roll back light bulb standards will cost consumers billions.
• The U.S. Department of Agriculture’s rule speeding up pork lines and reducing inspectors endangers the lives and safety of consumers and workers. 
• Corporations keep breaking the law due to declining federal prosecutions.
• The Consumer Financial Protection Bureau and seven states launch an “innovation network” that will approve new, risky financial products and protect them from enforcement.
• The CFPB fails consumers by not carrying out the payday lending rule.
• Fewer children’s products were recalled in 2018.
• Under Trump, enforcement of consumer financial laws drops sharply, especially in areas with the highest complaints.

The list goes on and on. Government regulations and programs help consumers. Reducing the size of government and slashing consumer regulations just helps corporations make more profits at the expense of consumers.

Errors on criminal background checks continue to keep consumers from getting jobs, housing, report shows

Passing a criminal background check is usually required to get a job or housing, however, employers and landlords are making decisions based on inaccurate reports. 

A report, “Broken Records Redux: How Errors by Criminal Background Check Companies Continue to Harm Consumers Seeking Jobs and Housing,” from the National Consumer Law Center, finds that problems with accuracy in criminal background check reports are still wide spread.

“Unfortunately, many background screening companies still seem to prioritize profit over accuracy, leading to reports that cost consumers’ jobs and housing,” said Ariel Nelson, center staff attorney and author of the report.

Proposed model annuity regulation benefits industry, not consumers, consumer groups say

State insurance regulators on the National Association of Insurance Commissioners’ Life Insurance and Annuities Committee should reject a proposed industry friendly, anti-consumer annuity model regulation, the Center for Economic Justice and Consumer Federation of America said in a letter to the committee. They should continue work to create a true “best interest” standard of care for insurers, agents, and brokers to use when selling complex annuity products to consumers.

“The fact that all the industry trade associations of insurers and agents selling annuities are euphoric about the proposed revisions while consumer groups are aghast at the anti-consumer nature of the proposal is stark evidence of how biased the proposal is in favor of industry interests over consumers,” said Birny Birnbaum, executive director for the center. “By allowing insurers and producers to falsely claim to be acting in consumers’ best interest when there is no such requirement and when there is no meaningful constraint on conflicts of interest that would compromise advice given to a consumer, the proposal will mislead consumers into expecting protections the rule does not provide.”

The center and federation point to shortcomings in the current draft:

Attorneys generals ask FTC to protect consumers from bogus ‘free trial offer’ deals

Twenty-three attorneys general urged the Federal Trade Commission Tuesday to adopt regulations to prevent consumers from being tricked by negative option marketing schemes. In a letter to the agency, they argue that the FTC should use its rulemaking authority to expand existing regulations. 

“We’re urging the FTC to take action and use its power to protect consumers from the harm of predatory marketers,” said New York Attorney General Letitia James.

With negative option marketing, a marketer makes an offer and the consumers’ silence or failure to respond is considered acceptance.

Number of retirees with mortgages increases dramatically

Retirement is different than it used to be. Many more retirees are still trying to pay off their homes.

One of four homeowners 30 years ago who were in their late 60s and 70s still had a mortgage. These days, nearly half have one. When people turned 80, mortgages used to be unusual, with just 3 percent being mortgage holders. These days, one in four of these older seniors have mortgages, according to “Housing America’s Older Adults 2019,” a report by the Harvard Joint Center for Housing Studies. 

Seniors who have paid off their homes have more money to spend, which improves their standard of living in retirement.

5 signs your marriage is over

By Adam J. Edelstein, attorney and partner, Edelsteins, Faegenburg & Brown

Guest Blogger

Relations are complicated, and when things begin to get difficult in a marriage, people wonder whether they should continue to work on it or admit defeat.

Here are five things which may show your marriage is over:

1. You don’t communicate

In one study, 53 percent of couples reported that a lack of communication was a core reason for their divorce. In any relationship, communication is crucial to build on a foundation of honesty and trust. When you and your partner won’t address relationship issues or share in each other’s joy, you’ve lost that connection. 

If this critical connection is damaged beyond repair, your marriage could be on a slippery slope toward divorce.

New information for those selecting a nursing home

By Brian O’Connell, Analyst, insuranceQuotes.com

Guest blogger

Finding the right nursing home for an elderly family member is a serious responsibility, and often a daunting task. But many Americans aren’t aware of the tools that the federal government provides to make the search smoother and more trustworthy.

The U.S. Center for Medicare and Medicaid Services rolled out its new Five-Star Quality Rating System in April, with the goal to help families compare local nursing homes and get key questions answered.

The CMS’s website rates nursing homes on a scale of one to five stars, taking into consideration three key areas: health inspections, staffing, and quality measures.

CFPB, state file lawsuit against companies offering high-interest credit offers

The Consumer Financial Protection Bureau or CFPB and the South Carolina Department of Consumer Affairs filed a lawsuit Tuesday in federal court against Katharine Snyder, Performance Arbitrage Company Inc., and Life Funding Options Inc. The companies, owned and operated by Snyder, brokered contracts offering high-interest credit to veterans, many of whom are disabled, and to other consumers.

The CFPB alleges that the companies and their owner violated the Consumer Financial Protection Act’s prohibition against deceptive practices.

The CFPB and South Carolina allege that Snyder and her companies misrepresented to consumers that the contracts the companies broker are valid and enforceable when the contracts are void under federal and state law; misrepresented to consumers that the product is a sale of payments and not a high-interest credit offer; and failed to inform consumers of the products’ interest rates.

Corporations keep breaking the law due to declining federal prosecutions

Corporations keep breaking the law, and the U.S. Department of Justice keeps refusing to prosecute them, a Public Citizen report finds. The DOJ’s continued refusal to bring criminal prosecutions against big banks, big pharma, and other big businesses that violate the law has led to a failure to deter repeat offenders, according to the report.

Instead of prosecuting corporations, the DOJ, starting in the early 2000s, has increasingly relied on agreements that prosecutors and corporate defense attorneys negotiate behind closed doors to keep corporations – usually the largest – out of the criminal justice system.

“If the Justice Department wants to deter corporate crime, it must stop bending over backward to protect corporations and start enforcing the law,” said Rick Claypool, a Public Citizen research director and author of the report. “Our country is facing an unprecedented corporate crime wave. To stop it, we must prosecute corporate criminals.”

CFPB says it will continue to offer consumer complaint database and enhance it

The Consumer Financial Protection Bureau or CFPB announced Wednesday that it will continue to maintain its consumer complaint database while making “enhancements” to the information available to users. These enhancements include providing financial information and details into the complaint process to better address questions and inform consumers before they issue a complaint and adding materials to help consumers who seek answers to specific questions from financial companies.

“This announcement is a victory for both consumers and the marketplace,” said Ed Mierzwinski, senior director, Federal Consumer Programs for U.S. PIRG. “Over the years, U.S. PIRG, in comments and public statements, has championed the need to maintain a public CFPB consumer complaint database because it’s common sense that markets work better for consumers and companies when both sides have full information.” 
 
Mierzwinski said the series of U.S. PIRG reports using the database have clearly shown that the it serves as a powerful tool to help consumers make choices and also gives watchdog groups, academics, and the private sector a way to analyze and highlight problems.