American companies are using unfair and deceptive practices as they sell many consumer financial products, the CFPB said in a report. For example, auto lenders have originated loan balances above the real value of the car being purchased and engaged in illegal collection practices while servicing these loans.
To help consumers, the Biden administration is cracking down on junk fees, price gouging on food, and mergers. President Biden announced the actions Wednesday the day before the fifth meeting of White House Competition Council, appointed in 2021. The council is made up of 10 cabinet members and the heads of seven agencies.
Another huge recall deserves your attention. Bose is recalling about 884,000 bass modules in the United States, 98,000 in Canada, and 18,300 in Mexico. The company has received 21 reports of the bass modules igniting or melting, including three fires resulting in damage to carpeting, an entertainment cabinet, and materials around the bass box.
More than 804,000 borrowers will have $39 billion in federal student loans discharged in the coming weeks, the U.S. Department of Education announced Friday. The discharges are fixes to ensure borrowers have an accurate count of monthly payments that qualify toward forgiveness under income-driven repayment plans.
Another big bank is being exposed for corporate fraud. Bank of America will pay more than $100 million to customers for double-dipping on fees imposed on customers with insufficient account funds, withholding reward bonuses promised to credit card customers, and misusing personal information to open accounts without customers’ knowledge.
Another large financial institution has been caught gouging customers. Raymond James agreed to settle allegations Tuesday with six state securities regulators for charging unreasonable commissions on trades that harmed investors. The broker-dealer will pay at least $8.2 million in refunds to clients, and $4.2 million in penalties and costs.
The approval of a new drug to treat Alzheimer’s disease is controversial. The U.S. Food and Drug Administration gave full approval to the drug lecanemab (Leqembi) Thursday to treat adults with Alzheimer’s disease. In January, Public Citizen, a consumer advocacy organization, urged the agency not to approve the drug.
Another lithium-ion battery recall reminds us that we need to pay attention to the possible fire hazards with the batteries. VRURC is recalling about 190,000 portable chargers. They can ignite, posing a fire risk. VRURC has received one report of fire during a flight, which injured four flight attendants who had to be treated for smoke inhalation.
Farmers Insurance began limiting the sale of new homeowners insurance policies in California on July 3, the company, a subsidiary of the Zurich Insurance Group, announced Friday. Farmers is the No. 2 homeowners insurer in California. American International Group, State Farm, and Allstate have also limited have limited insurance sales.
