The Survive and Thrive Boomer Guide

Consumers need more information about how real estate transactions work, consumer group says

Two-thirds of consumers believe that real estate agents are always or almost always required to represent the interests of the home buyer or seller with whom they are working, according a survey. Yet, many agents working with consumers represent the interests of the other party or the interests of neither party.

A report by the Consumer Federation of America incorporated its research of the literature on real estate agency, its mystery shopper survey of agents, and a survey by ORC International.

“Today, many home buyers and sellers do not know whether their agent is representing their interests, those of the other party, or those of neither,” said the report’s author, Stephen Brobeck, a federation senior fellow. “Given the huge expenditure of a home purchase and the conflict of financial interests between seller and buyer, it is important that consumers know who their real estate agent is actually representing.”

Loan servicer settles charges it deceived student borrowers about lower-cost payment plans and loan forgiveness

Federal student loan servicer ACS Education Services agreed to a $9 million settlement Friday for steering distressed borrowers away from income-based repayment plans towards other, more expensive options. It also addresses claims that ACS deceived borrowers about the availability of loan forgiveness after a borrower works for 10 years in a public-service job. 

In addition to paying penalties and restitution to borrowers, ACS has agreed not to service loans for the major federal programs or private loans for five years. Most eligible borrowers will receive between $100 and $450. 

“Students rely on college to be a ladder to success, but too often prohibitive costs and disingenuous loan servicers trap students in a quicksand of debt,” said New York Attorney General Letitia James. “ACS has systematically failed borrowers by refusing to educate them on more effective federal repayment options, and instead, pushing them towards options that padded their bottom line.”

State attorneys general hold UBS accountable for manipulation of benchmark interest rates with $68 million fine

Photo: Urbanrenewal

UBS AG, a Swiss multinational investment bank and financial services company, agreed Friday to a $68 million, 40-state settlement for fraudulent conduct involving the manipulation of LIBOR or the London Interbank Offered Rate. LIBOR is a benchmark interest rate that affects financial instruments – such as stocks, bonds, and loans – worth trillions of dollars and has an impact on global markets and consumers.

“Manipulative or fraudulent conduct that undermines the integrity of our financial markets will not be tolerated,” said New York Attorney General Barbara Underwood.

The attorneys general allege that UBS misrepresented the integrity of the LIBOR benchmark by hiding, misrepresenting, and failing to disclose that UBS made US Dollar LIBOR submissions to avoid negative publicity and protect the reputation of the bank. They also allege that UBS made Japanese Yen LIBOR submissions to benefit its derivative trading positions.

Charter Communication agrees to record settlement for fraud in its internet services

Charter Communications and Spectrum Management Holding Co. have agreed to pay $174.2 million for defrauding internet subscribers. About $62.5 million of the funds will go to refunds for consumers, making it, regulators say, the largest-ever payout to consumers by an internet service provider, or ISP, in U.S. history.

Charter Communications merged with Time Warner in 2016, and has rebranded the internet, phone, and cable service as Spectrum Cable. Providing services to more than 26 million customers in 41 states, it’s the second-largest cable operator in the United States by subscribers, after Comcast.

The Tuesday agreement settles a fraud allegation that New York state’s largest ISP denied customers the reliable and fast internet service it had promised.

Rice ramen noodle soup cups are being recalled by Lotus Foods due to fire and burn hazards

Lotus Foods is recalling about 239,000 rice ramen noodle soup cups.

The paper soup cup’s labeling incorrectly instructs consumers to use the microwave for cooking, which may cause fires and burns.

Lotus Foods has received 12 reports of the soup cups becoming extremely hot and/or sparking or catching fire during microwaving, including one report of a minor burn. Reported damage has been limited to the noodle cups.

Trump appointment to head consumer finance agency will continue to diminish its power, actions

It’s another one of President Trump’s flawed appointments to oversee an important federal agency.

This time, it’s the Consumer Financial Protection Bureau, an agency created in 2011 to safeguard American consumers against some of the financial losses they suffered in the mortgage crisis and Great Recession.

On Thursday, the U.S. Senate voted to confirm Kathy Kraninger as the new director of the bureau.

Ultra-Low NOx water heaters being recalled by A.O. Smith due to fire hazard

A.O. Smith is recalling about 616,000 Ultra-Low NOx water heaters.

The water heater’s gas burner screen develops tears. The water heater’s burner can then create excess radiant heat, posing a fire hazard if the water heater is installed directly on a wood or other combustible flooring.

A.O. Smith has received six reports of fires occurring from a water heater installed directly on a combustible surface.  No injuries have been reported.

This recall includes 30-, 40-, and 50-gallon natural or propane gas-fired Ultra-Low NOx emission gas water heaters. They’re designed to comply with regulations in certain air quality districts in California, and were sold primarily in California. They were sold under the American, A. O. Smith, Kenmore, Reliance, State, U.S. Craftsmaster, and Whirlpool brand names and were manufactured from April 8, 2011 through August 1, 2016.

Watch out for this widely used credit card trick

The holidays are approaching, and the average shopper is expected to spend about $1,007. For many consumers, holidays spending is going to be added to their credit card debt.

One trick sellers continue to use is deferred interest.

Deferred interest is when a retailer advertises a low introductory annual percentage rate or APR – often 0 percent – and gives a consumer the chance to pay for their purchases without interest. However, there’s a catch. If consumers can’t pay off the item by the end of the specified term, they’ll get hit with interest charges as if the regular APR had been in place from the start.

How to file claims for damage from Hurricane Michael

Hurricane Michael damage is expected to be $5 billion from wind damage and $3 billion from flood damage.

Only about one in three families who have flood damage from Hurricane Michael have federal flood insurance. Most homes have homeowners policies covering wind damage, but insurers have been steadily increasing hurricane wind coverage deductibles and imposing other homeowners insurance policy limitations, according to the Consumer Federation of America.

Because so many consumers experienced severe claims problems after Hurricane Katrina and Superstorm Sandy, the federation urges homeowners dealing with losses caused by Hurricane Michael to be vigilant with their insurance companies, including the insurers settling National Flood Insurance claims, to ensure that they receive a full and fair settlement.

Trump administration stalled in its efforts to eliminate protections for student loan borrowers

The U.S. Department of Education will miss a November deadline to repeal the Obama-era revisions that help student loan borrowers for the 2019 school year. The rule erases the federal student debt of borrowers defrauded by colleges.

Adopted in the 1990s, the rule cancels federal loans for students whose colleges used deceptive or illegal tactics to encourage them to get loans to attend.

The Obama administration revisions streamlined the claims process and shifted more of the cost to schools for discharging loans. The changes were scheduled to take effect in July, but the department postponed them for a year and said it would appointment a new rulemaking committee to rewrite the entire regulation. Education Secretary Betsy DeVos wanted more time for the committee work on its revisions.