Your cable company sells you a broadband plan advertising download speeds of “up to 25Mbps.” But it feels sluggish to you so you check out an online speed test site and it tells you you’re only getting a fraction of that speed. Then the FCC comes out with its Measuring Broadband America report which — if you can even make heads or tails of it — says your ISP is actually exceeding its advertised download speeds. Why don’t all of these things agree? [More]
Government Policy
Dept. Of Education Proposes Rules To Govern College Prepaid Credit & Debit Cards
By 5.15.15
College students’ federal aid has increasingly been put at risk by the cozy relationship between institutions of higher education and credit card issuers over the years. While consumer advocates and legislators have debated whether or not products like student IDs that double as credit or debit cards provide an actual benefit to students or if they’re just a way for schools and banks to rake in the big bucks, the Department of Education finally took steps today to ensure students are afforded proper protections from excess fees and other harmful practices with the proposal of regulations targeting the college debit and prepaid card marketplace. [More]
Legislator Demands Department Of Education Investigate For-Profit Chain ITT Technical Institute
By 5.15.15
Following the Securities and Exchange Commission’s decision earlier this week to file fraud charges against current and former executives with ITT Education Services – the operator of for-profit college chain ITT Technical Institute – for their part in concealing problems with company-run student loan programs, one legislator is calling on the Department of Education to further investigate the company. [More]
FDA Finally Warns Drug Company Against Selling Antibiotic As A Pig-Fattener
By 5.15.15
A year after public health advocates called out drug maker Novartis for continuing to actively market a particular antibiotic as a product farmers could use to fatten up their pigs, the FDA has finally gotten around to issuing a warning. [More]
Blue Bell Lovers Turn To Craigslist For Exceedingly Expensive Pre-Owned Treats
By 5.14.15
With local grocery stores’ freezer shelves still void of any Blue Bell Creameries products and no timeline for when they might return, those with a serious love of the ice cream brand are turning to a black market of sorts to get their fix. [More]
FTC Rolls Out Interactive Resource For Victims Of Identity Theft
By 5.14.15
With seemingly daily reports of new data breaches and related scams, it’s no secret that identity theft is now more of a concern than ever. In an effort to help victims work their way through the process of restoring and protecting their identities, the Federal Trade Commission has launched a new online interactive tool. [More]
CFPB Wants To Hear Your Comments On Student Loan Servicing Practices
By 5.14.15
Outstanding student loan debt now totals more than $1.2 trillion in the U.S., and it’s only going to grow as college tuitions continue to outpace inflation. Meanwhile, student loan servicers aren’t exactly making it easy for borrowers to pay down that debt with confusing and inconsistent policies and an apparent reluctance to work with troubled borrowers. In an effort to see if the repayment process can be made less byzantine, the Consumer Financial Protection Bureau is asking for you to share your thoughts on the state of student loan servicing. [More]
Feds Take Issue With Pills Claiming To “Prevent & Reverse” Greying Hair
By 5.13.15
Although dyeing your hair an ashen color is apparently a fashion thing right now, some consumers will try just about anything to stall the steely tint from cropping up on their heads: including shelling out big bucks for dietary supplements that promise to prevent or reverse the presence of gray hair. Only, according to a new settlement with the Federal Trade Commission, those claims weren’t actually backed by science. [More]
Legislators Once Again Trying To Delay New Lending Protections For Military Personnel
By 5.13.15
The Department of Defense is trying to do something good for servicemembers by closing loopholes in the Military Lending Act that can leave military personnel vulnerable to predatory lenders. But these safeguards are now the target of a Congressman who has received substantial campaign contributions from payday lenders. [More]
Mechanically Tenderized Beef To Finally Be Labeled
By 5.13.15
More than a quarter of all beef sold in the U.S. is mechanically tenderized, meaning that machines with tiny little blades have been used to make the raw product more tender. But this step can also have the effect of driving surface pathogens deeper into the meat where they might not be killed during the cooking process. Since 2000, the Centers for Disease Control and Prevention has received reports of six outbreaks attributable to these products. Two years ago, the U.S. Department of Agriculture announced it was going to require labels for mechanically tenderized beef. Those labeling rules have now been finalized and will go into effect a year from now. [More]
Report: FCC May Look Into Comcast’s Don’t-Call-Them-Data-Caps If Implemented Nationwide
By 5.13.15
For more than two years, Comcast has been testing data caps — sorry, “data thresholds” — in various markets around the country. With the possibility of this usage-based pricing model being rolled out on a nationwide basis, a new report claims that the FCC could use its new authority to scrutinize the data limitations. [More]
Attorneys General Coalition Urges Dept. Of Education To Clarify Corinthian Students’ Options
By 5.13.15
A week after nine senators urged the Department of Education to provide support to the thousands of students affected by the closure of now-bankrupt Corinthian Colleges schools — Everest University, Heald College, and WyoTech — the top prosecutors in 11 states are adding their voices to the chorus encouraging the Dept. to protect students and clarity their options following the company’s final downfall. [More]
Toyota, Nissan Add 6.5 Million Vehicles To Takata Airbag Recall; Honda Expected To Follow Suit
By 5.13.15
Just when you think carmakers have recalled the last of the vehicles equipped with Takata airbags that could spew shrapnel when deployed, more cars are added to that list. Today, Toyota and Nissan expanded their already massive recalls to include an additional 6.5 million vehicles, while Honda has plans to do the same. [More]
FTC: ‘Clinically Proven’ Menopause And Weight Loss Supplement Helps With Neither
By 5.12.15
American consumers have spent $65 million on Amberen, a supplement meant to ease the symptoms of menopause and perimenopause. These symptoms can include hot flashes, insomnia, irritability, and weight gain. Did Amberen help with these symptoms, as promised? No, the Federal Trade Commission says: it mostly helped to lighten customers’ bank accounts, and has filed a complaint against the company that sells it. [More]
La-Z-Boy Recalls 2,600 Recliners Because The Goal Is To Lean Back, Not Tip Forward
By 5.12.15
Along with the ease and comfort of a lazing person implied in the La-Z-Boy name comes the expectation that such relaxation will come in the form of reclining backward, and not tipping forward out of one’s seat. That’s why the company is recalling 2,600 recliners after reports from some dealers of tippy furniture that could cause someone to fall and potentially get hurt. [More]
Verizon, Sprint To Pay $158 Million To Settle Wireless Bill-Cramming Allegations
By 5.12.15
Several months after AT&T and T-Mobile reached multimillion-dollar settlements with federal regulators to close the books on allegations of bill-cramming — illegal, unauthorized third-party charges for services like premium text message subscriptions — both Sprint and Verizon have also decided to pay the regulatory piper. Combined, the two wireless companies will pay $158 million to settle cramming claims with the FCC and the Consumer Financial Protection Bureau. [More]
SEC Charges Current, Former Executives Of For-Profit Chain ITT Educational Services With Fraud
By 5.12.15
Back in September ITT Educational Services – the operator of for-profit college chain ITT Technical Institute – revealed it was facing increased scrutiny by several government agencies. That scrutiny turned to action this week as the Securities and Exchange Commission filed fraud charges against current and former executives with the company for their part in concealing problems with company-run student loan programs. [More]
Banks Continue To Improve Consumer Safeguards, But Progress Isn’t Coming Fast Enough
By 5.12.15
Opening a checking account with a bank is a rite of passage of sorts for many consumers, but the plethora of small-print disclosures, fees and other services are enough to confuse even the most seasoned account holder. While banks attempted to simplify their practices over the years, a new Pew Charitable Trusts report shows that some banks – and regulators – have a long way to go before they’re truly doing everything they can to protect consumers. [More]
