Because it could take some time for federal investigators to determine the cause of a ruptured Takata airbag in a Volkswagen — a carmaker that hadn’t been part of any earlier exploding, shrapnel-shooting airbag recalls — some lawmakers are calling for a recall of all vehicles equipped with airbags made by Takata. [More]
Last May, investigations by the Department of Justice and the Federal Deposit Insurance Corporation into student loans servicing resulted in a $100 million fine against government-contracted servicer Navient for allegedly violating federal laws limiting the amount of interest that can be charged on servicemember student loans. Following those investigations, the Department of Education undertook a review that found its four servicers – including Navient – weren’t cheating military personnel. With such conflicting reports, members of Congress are now getting involved, calling for an investigation into the Dept. of Education’s review process. [More]
Last month, in his first public address of the massive airbag defect linked to eight deaths and more than a hundred injuries, Takata CEO Shigehisa Takada announced the Japanese auto parts maker would consider the possibility of creating a victim compensation fund. Now, the company says such a fund is a no-go. [More]
While the Department of Justice investigates the possibility that airlines colluded to keep ticket prices high, the top executive at American Airlines is trying to assure his employees that the company did nothing wrong. [More]
Just weeks after a legislator voiced concern that a shrinking airline industry has perpetuated potential anti-competitive behavior aimed at keeping the price of airfare high, the Department of Justice revealed it is looking into the possibility of collusion between airlines.
Senators Introduce Legislation To Close Federal Funding Loophole Exploited By For-Profit Colleges… Again
Legislators continued their crusade to rein in the abuses of predatory for-profit college institutions by introducing a measure today that would close a funding loophole that often led the schools to target certain consumers in order to pad their bottom line. [More]
American Airlines and US Airways, Southwest Airlines and AirTran, Continental and United. These are just a few of the major mergers to hit the airline industry in the last several decades. While airlines contend that such combinations have created more streamlined processes for customers, some legislators are concerned that a shrinking airline industry has perpetrated potential anti-competitive behavior, leading to a request for a federal investigation. [More]
A group of senators raised concerns Tuesday that a new airfare comparison shopping system currently being developed could lead to unfair discrimination practices based on information the airlines receive from customers. [More]
During 2014’s recallapoalooza federal regulators revealed that the average completion rate for a vehicle recall was just 75%. While some consumers might not be aware their car has a safety issue, others simply put off the needed repairs. A new bill introduced in the Senate Monday aims to make sure potentially dangerous vehicles aren’t on the road, by requiring fixes be completed before registration renewals are granted. [More]
Senators Chastise Govt. For Making Money Off Struggling Student Loan Borrowers, Not Offering Enough Relief
For several years now the government has offered federal student loan forgiveness programs aimed at helping borrowers to avoid defaulting on their debts. While recent reports have shown that the popularity of the programs has exceeded expectations, a group of six senators say the Department of Education could do more given the billions of dollars in payments it receives from federal loans each year. [More]
Earlier this year, GM issued a massive recall of nearly 1.4 million vehicles due to problems with the ignition switch. GM apparently knew about those problems — which have caused several fatalities — for up to thirteen years before issuing the recall, and reportedly also ignored piles of consumer complaints in that timeframe. Consumers’ entirely predictable lawsuits against GM have already begun, but those lawsuits are facing a big potential snag. [More]
Are CVS and Walgreens price gouging on liquid Tamiflu? The attorney general of Connecticut’s office says the AG, Richard Blumenthal, has “received information suggesting that some pharmacies have charged substantially increased out-of-pocket prices for Tamiflu, in some cases as high as $130 or more. He has also heard that some retailers may be purchasing capsules of higher-dosage Tamiflu from distributors and remarketing it as liquid-form lower dosages at greatly inflated prices.” [More]
A Connecticut mall has to pay $259,000 in settlement fees to consumers who bought gift cards that had monthly inactivity fees.
Someone ring a bell because Connecticut Attorney General Richard Blumenthal has just sued Countrywide (and, of course, Bank of America) for deceptive lending practices. They’re seeking damages of $100,000 for each violation, as well as “up to $5,000 per violation of state consumer protection laws, disgorgement of all ill-gotten gains and an order compelling the company to cease its illegal practices.”
“Competing by cheating has become a way of life for … many of these corporations, many of the most reputable of them. Because it’s done by AT&T, MCI, or Sprint, people are reluctant to use that word, but when all is said and done … these are scams.”
Once again a reader contacts us to complain about Best Buy misleading their customers with an in-store only website that looks identical to the “real” website—except for the prices.
Best Buy still uses a secret internal website to deceive customers, according to the L.A. Times. The website appearing on in-store kiosks resembles Best Buy’s official site in every way, except for the prices. Connecticut Attorney General Richard Blumenthal was surprised to hear that his investigation failed to end Best Buy’s bait-and-switch, telling the L.A. Times: “We thought Best Buy had addressed this. That’s what they said to us. Apparently that’s not the case.” A tipster in Virginia also reports the continued existence of the secret website.