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Consumer Daily Reports

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Problems found in this year's consumer protection report echo those from last year

By Truman Lewis Consumer News: Debt collectors hounding consumers for medical & rental debts they don't owe of ConsumerAffairs
September 5, 2024

Every year, theConsumer Financial Protection Bureau (CFPB) issues a report on aggressive and illegal debt collection practices, and each year it details the shady and outright deceptive tactics debt collectors use to hound innocent consumers.

This year, the report foundaggressive and illegal practices in the collection of medical debt and rental debt.

It discusses how problems with real estate companies revenue management software can result in improperly inflated rental debt amounts. The report also focuses on debt collectors attempts to collect medical bills already satisfied by non-profit hospitals financial assistance programs, as well as the fact that many medical bills from low-income consumers do not get addressed by financial assistance in the first place.

Medical debt collection

Tens of millions of people are pursued by debt collectors for purportedly unpaid medical bills every year and today's report finds problems that have persisted since last year's report, when consumer complaints about medical debt in collections made up about 11% of all collections complaints received by the CFPB.

The complaints submitted by consumers and the CFPBs own research show that debt collectors:

  • Attempt to collect already paid medical bills or bills eligible for financial assistance:Medical debt collectors often attempt to collect bills that have already been satisfied by non-profit hospitals financial assistance programs. Additionally, non-profit hospitals fail to properly address medical bills from low-income patients that should receive financial assistance and instead send the bills to debt collectors.

    Many consumers describe poor communication and information-sharing between the debt collector and the hospital, so the burden often falls on the patient to prove that they do not owe the debt.
  • Aggressively pursue patients for bills arising from medical payment products: The CFPB continues to receive complaints about medical financing products, which are offered to patients by some non-profit hospitals as well as other healthcare providers, without considering whether the patients may be eligible for financial assistance.

    Non-profit hospitals might partner with financial institutions to offer medical financing products because they perceive that enrolling patients in these products enables them to get compensated for bills via collections practices that would otherwise be prohibited by Internal Revenue Service regulations.

    As a result, debt collectors end up pursuing patients for these bills even when the bills should never have been incurred in the first place.

Rental debt collection

In August 2023, the CFPB started accepting complaints about rental debt collection. From August 2023 to the end of that year, the CFPB received more than 1,700 rental debt complaints.

In the United States, rental debt is estimated to be more than $9 billion, with over 4.5 million households behind on rent payments.

Rental debt collectors often charge renters collection fees in addition to the unpaid rent itself. As the CFPB has observed with medical debt, many debt collectors furnish rental debt to credit reporting companies as a means of collecting debt through coercion.

The complaints submitted by consumers and the CFPBs own research show that the infusion of consumer financial products and services into the rental market raises risks for renters, including improper debt collection due to:

  • Illegal price-fixing: Law enforcement officials in several states as well as individual renters have alleged that rapid increases in rent have been driven by illegal price-fixing. Landlords and management companies may have used revenue management software to collect improper amounts that ultimately end up in debt collection.

    Debt collectors collecting on bills that are inflated due to illegal price-fixing may be violating the Fair Debt Collection Practices Act.
  • Tacked on rental fees: Renters, as well as landlords, have complained to the CFPB about rental junk fees, including fees from rental payment processing servicers added onto and required as a condition for rent payment. It is often not clear whether these fees are allowed under the lease agreement or local law, and, thus, able to be targeted by debt collectors.

CFPB Actions

The CFPB is taking steps to ensure that debt collectors follow consumer financial protection laws, including the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.

It has brought enforcement actions against debt collectors for their efforts to collect on unsubstantiated debt, unlawfully threatening legal action against consumers, and other violations.

Additionally, the CFPB issued guidance to protect homeowners from illegal collection tactics on zombie mortgages. The agency also proposed a rule that, in many cases, would ban medical debt from credit reports.

In 2023, the CFPB published reports focused on several topics including trends in servicemember complaints many of which are related to debt collection, the impact of tuition payment plans on student loan debt, the effects of employer-driven debt, and trends in debt collections tradelineson consumer credit reports.

Read todays report.



Photo Credit: Consumer Affairs News Department Images


Posted: 2024-09-05 15:46:16

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Consumer News: Trump's 'big bill' slashes consumer watchdog CFPB's budget nearly in half

Tue, 08 Jul 2025 22:07:08 +0000

Will a weakened CFPB be up to the job of protecting consumers from rogues and charlatans?

By James R. Hood of ConsumerAffairs
July 8, 2025

  • New law cuts Consumer Financial Protection Bureaus funding cap by 46%, saving $2 billion, Republicans say.
  • GOP argues the CFPB has been unaccountable, while Democrats warn consumers will suffer without strong oversight.

  • Funding cut could impact ongoing legal battles over efforts to reduce the agencys size and power.


President Donald Trump's sweeping budget bill delivers a significant blow to the Consumer Financial Protection Bureau (CFPB), cutting nearly half of its funding and intensifying a partisan clash over the agencys future.

The legislation, signed on July 4, reduces the CFPBs funding cap from a maximum of 12% of the Federal Reserves inflation-adjusted 2009 operating expenses to 6.5%. The cut amounts to a 46% decrease in the bureaus funding ceiling and is projected to save $2 billion, according to Senate Republicans who pushed the measure.

For the first time since the passage of Dodd-Frank, Congress is reining in the unaccountable Consumer Financial Protection Bureau and decreasing its mandatory funding cap by 46%, which will save over $2 billion and require the Bureau to be fiscally responsible, said Senate Banking Committee Chairman Tim Scott (R-S.C.).

Consumer protection battle lines drawn

While Republicans hailed the cuts as a step toward accountability, Democrats condemned the move as a direct threat to consumer protections.

The Consumer Financial Protection Bureau is the financial watchdog to keep people from getting cheated on credit cards, mortgages, Venmo, payday loans, and a zillion other transactions, said Sen. Elizabeth Warren (D-Mass.), Ranking Democrat on the Banking Committee. When this financial cop cant do its job, there is no one else in the federal government to pick up the slack.

The CFPB, established under the 2010 Dodd-Frank Act, is tasked with policing abuses in financial products and services. It has been a frequent target of Republicans, who argue the agency wields too much power and operates with insufficient oversight because its funding bypasses the congressional appropriations process.

Uncertainty overthe agency's future

The funding cuts come amid broader legal and political challenges facing the CFPB. Although the Supreme Court has upheld the CFPBs funding structure as constitutional, debates persist over whether the Federal Reserve currently has sufficient combined earnings the designated funding source under Dodd-Frank especially since the Fed has reported losses since September 2022. No court has yet ruled definitively on that question.

Meanwhile, the Trump administration has been locked in a legal battle over its efforts to reduce the size of the CFPB. An injunction obtained by the National Treasury Employees Union has blocked plans to lay off a large portion of CFPB staff and cancel agency contracts. Legal experts speculate that the new funding restrictions could bolster the administrations case for shrinking the bureau, as reported by Law360.

Originally, some Senate Republicans had proposed eliminating the CFPBs independent funding entirely, dropping the cap to zero. However, the Senate Parliamentarian ruled that such a measure couldnt be included in the budget bill. A House version would have capped 2025 CFPB funding at $249 million, but that provision did not survive the final bill.

The funding cut marks the most significant congressional action against the CFPB since its creation, leaving questions about how the bureau will operate with fewer resources and how millions of American consumers might be affected.


Read More ...


Consumer News: Scammers are running rampant during Prime Day

Tue, 08 Jul 2025 22:07:08 +0000

Consumers are encouraged to be extra vigilant during these high-traffic sales

By Kristen Dalli of ConsumerAffairs
July 8, 2025

  • Scammers ramp up their efforts during Prime Day, using tactics like phishing emails, fake websites, and fraudulent order confirmations to steal personal and financial information.

  • Key red flags include suspicious domain names, urgent or emotional language, unofficial sender addresses, and poor formattingall signs that a message or site may be a scam.

  • Experts recommend using a cautious, Zero Trust approach, verifying sites before clicking, keeping devices updated, enabling two-factor authentication, and going directly to Amazons website rather than clicking links.


Amazons Prime Day is the perfect time for shoppers to score big savings on everything electronics, kitchen essentials, baby items, clothes, toys, and more.

However, in addition to the sales, its also the perfect time for scammers to take advantage of vulnerable consumers looking for deals.

To help spot these and avoid them ConsumerAffairs interviewed Darren Williams, Founder and CEO at BlackFog, and Dave Meister, Global Channel Leader at the Office of the CTO, at Check Point.

What are the biggest associated with Prime Day?

Meister explained that scammers main goal during Prime Day is to steal consumers personal information and payment details. He broke down some of the most popular that happen during Prime Day:

  • Phishing emails

  • SMS phishing (SMiShing)

  • Fake login pages

  • Fraudulent order confirmations

Amazon Prime Day is a goldmine for cybercriminals, Williams explained. The surge in promotional emails, limited-time offers, and high-volume online activity creates ideal conditions for phishing, malware delivery, and fraudulent transactions.

What often begins as a simple consumer scam like a fake delivery notification or a spoofed Amazon deal can quickly escalate into credential theft and data exfiltration that puts entire enterprises at risk.

How to spot

Meister shared his best tips for identifying during Prime Day.

Spotting Prime Day starts with slowing down and looking closely at the details, he said. Bad actors rely on urgency, distraction and emotion to get people to click before thinking. Here are a few red flags every shopper should watch for:

  • Check the domain name carefully: Anything other than amazon.com should raise suspicions. Scammers often create lookalike siteslike amazon-2025[.]top or amazon02atonline51[.]onlinethat appear legitimate at first glance but are designed to steal your login credentials or payment info.

  • Be wary of urgent or emotionally charged language: Subject lines like Refund Due System Error or Account Suspended are classic phishing tactics meant to panic users into clicking a malicious link. Legitimate companies like Amazon wont demand immediate action via sketchy links.

  • Scrutinize the senders email address: A real Amazon email will always come from an official @amazon.com domainnot something like support-amazon-check[.]com.

  • Hover over all links before clicking: On desktop, hovering over a link will show the destination URL. If it looks off or doesnt clearly lead to amazon.com, dont click.

  • Don't follow a link: Rather than following a link, go directly to the Amazon website, app or Google Prime Days to find the real website, bypassing any possible phishing links.

  • Look for poor grammar, odd formatting, or blurry logos: These are telltale signs of a hastily thrown-together scam site or message.

  • Trust your instincts: If a deal or message seems offlike winning a giveaway you never enteredit probably is.

Avoid falling for Prime Day

Williams encourages consumers to be vigilant during Prime Day, as they should always verify the legitimacy of websites and apps before downloading or purchasing.

Keeping devices up to date and ensuring that security tools are active is essential, but so is awareness, he said. Understanding how social engineering works and how cybercriminals use urgency and distraction to trick users is one of the best defenses. A Zero Trust mindset and attention to detail can go a long way in staying safe.

Another trick that is often used is to request validation of your login credentials. Amazon will never do this and will never ask for your personal information. Additionally, it is really important that you have two-factor authentication enabled. This will ensure that attackers cannot easily gain access to your account.


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Consumer News: Look out! Fake job offers want your money and your private info

Tue, 08 Jul 2025 22:07:08 +0000

Unsolicited job offers are almost certainly

By Truman Lewis of ConsumerAffairs
July 8, 2025

  • You don't get legitimate job offers from companies you didn't apply to.
  • Anyone who wants money from you is probably not offering you a legitimate job.
  • Be very careful corresponding with anyone who doesn't have an official, corporate email account and website.

Scammers posing as recruiters for high-profile companies are preying on job seekers with fake remote job offers, the Federal Trade Commission (FTC) warned this week, as reports of employment-related fraud continue to surge across the country.

Scammers are always hiring, but they dont actually want to employ you, the FTC said in its latest advisory. Instead, they want your money, personal information, or both.

Fake offers arriving by text and email

The often begin with emails or texts that appear to come from legitimate employers, offering remote jobs with attractive salaries and benefits. These messages frequently include official-looking logos, sophisticated language, and even links to seemingly professional websites.

But a closer look reveals red flags. Scammers may use personal email accounts such as @gmail.com or @yahoo.com instead of corporate email domains. After initial contact, they often rush applicants into sharing sensitive personal information such as Social Security numbers, bank account details, or copies of drivers licenses under the guise of setting up direct deposit or completing employment paperwork.

Real employers wont ask for that kind of information before theyve actually interviewed and hired you, the FTC emphasized.

cost victims millions

Job are far from a new phenomenon, but theyve become increasingly sophisticated and widespread, particularly as remote work has become more common. According to the FBIs 2023 Internet Crime Report, employment cost Americans more than $300 million last year alone, a sharp increase from previous years.

These scammers know people are eager for flexible, work-from-home opportunities, said Lisa Plaggemier, executive director of the National Cybersecurity Alliance. Theyre exploiting that desire to steal money and identities.

In one common variation of the scam, victims receive fake checks for office equipment or other job-related expenses. Theyre instructed to deposit the check and then quickly wire funds back to the employer to pay a vendor. Later, the bank flags the check as counterfeit, leaving the victim on the hook for thousands of dollars.

How to protect yourself

The FTC offered several tips for spotting and avoiding job :

  • Check the senders email address. Legitimate recruiters typically use official business emails rather than free personal accounts.

  • Be cautious of requests for personal information. Employers shouldnt ask for Social Security numbers, bank account details, or scans of ID cards before an official job offer and legitimate onboarding process.

  • Research recruiters and companies. Search online for the recruiters name, the company, and keywords like scam or complaint.

  • Watch for urgency. Scammers often pressure victims to act quickly, leaving little time to verify details.

  • Never pay for a job. Legitimate employers wont ask you to pay upfront fees for training, equipment, or background checks.

For more guidance, consumers can visit the FTCs official resource page at https://consumer.ftc.gov/articles/job-

Take your time and do your homework, the FTC advised. It could save you money, your personal information, and the heartache of a job that never existed.


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Consumer News: Treating multiple water pollutants could prevent over 50,000 cancer cases, study finds

Tue, 08 Jul 2025 22:07:08 +0000

Small, rural communities face higher risk

By Truman Lewis of ConsumerAffairs
July 8, 2025

  • EWG study shows tackling several tap water contaminants at once offers far greater health benefits than treating pollutants individually.

  • Arsenic and chromium-6 frequently occur together and can be reduced using the same technologies.

  • Small and rural communities face the highest risks and costs, underscoring a call for updated federal regulations.


A new study suggests that changing how America treats contaminated drinking water could save tens of thousands of lives. Instead of tackling one pollutant at a time, water systems should adopt multi-contaminant treatment strategies that can significantly reduce cancer risks nationwide, according to research published by the Environmental Working Group (EWG) in the journal Environmental Research.

The peer-reviewed study analyzed more than a decades worth of data from over 17,000 community water systems. EWG scientists found that simultaneously targeting dangerous chemicals like arsenic and hexavalent chromium, also known as chromium-6, could prevent more than 50,000 lifetime cancer cases in the U.S. Chromium-6 alone has been detected in water supplies serving about 251 million Americans.

Drinking water is contaminated mostly in mixtures, but our regulatory system still acts like they appear one at a time, said Tasha Stoiber, Ph.D., EWG senior scientist and lead author of the study. This research shows that treating multiple contaminants together could prevent tens of thousands of cancer cases.

Higher risk where pollution overlaps

Arsenic and chromium-6 frequently co-occur in drinking water systems and can be removed using similar technologies like reverse osmosis and ion exchange. The study found that reducing arsenic levels by as little as 27% to 42% in systems already dealing with chromium-6 contamination could quadruple the number of cancer cases avoided compared to treating chromium-6 alone.

States like California, Arizona, and Texas face the highest burden from arsenic pollution and would benefit most from a multi-contaminant approach. In California alone, nearly eight out of 10 preventable cancer cases linked to drinking water are due to arsenic exposure.

Health risks from these pollutants are particularly severe for children, pregnant people, and residents in small or rural communities, which often rely on groundwater and lack resources to upgrade outdated water systems.

Outdated regulations and cost challenges

Under current regulations, the federal government evaluates each contaminant in isolation, considering costs and benefits pollutant by pollutant. But EWG researchers argue this approach is outdated and leaves millions vulnerable to cumulative health risks from chemical mixtures in drinking water.

The federal nitrate limit was set decades ago to prevent infant deaths, but we now know cancer and birth complications can occur at much lower levels, said Anne Schechinger, EWGs Midwest director.

Nitrate contamination, particularly common in agricultural regions, poses significant health risks including cancer and birth defects. EWG estimates that cutting nitrate levels by just 20% could prevent 130 cancer cases each year and save $35 million in healthcare costs, especially when combined with treatment for arsenic and chromium-6.

Despite proven technologies capable of removing multiple pollutants at once, small water systems face steep costs and limited technical support, leaving many communities exposed to significant health risks.

This is about more than clean waterits about protecting health and advancing equity, said David Andrews, Ph.D., acting chief science officer at EWG. We have the engineering solutions to fix the broken drinking water system in the U.S., but we need state and federal policies to reflect the reality people face when they turn on the tap.

What consumers can do

While policymakers debate reforms, consumers worried about tap water contaminants can take steps to protect themselves. EWG recommends reverse osmosis filters for removing arsenic, chromium-6, and nitrate, though filters must be replaced on schedule to stay effective.

Consumers can also search EWGs Tap Water Database to learn which contaminants are present in their local water systems.

As concerns grow about drinking water safety across the country, experts say a shift toward multi-contaminant solutions could be key not only to preventing cancer cases but also to promoting health equity and saving millions in healthcare costs.


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Consumer News: Feds investigate rollaway risk in Ram pickups

Tue, 08 Jul 2025 19:07:09 +0000

Earlier recalls tried to solve the problem but may not have succeeded

By James R. Hood of ConsumerAffairs
July 8, 2025
  • Despite earlier recalls, the problem may still be occurring, with nearly 20 incidents reported.
  • The transmission may shift out of park without the driver pressing the brake pedal, the agency said.
  • About 1.2 million Ram trucks could be affected if another recall is ordered.

U.S. auto safety regulators have launched a new investigation into whether earlier recalls involving more than one million Ram pickup trucks sufficiently addressed a dangerous defect that can cause the vehicles to roll away unexpectedly.

The National Highway Traffic Safety Administration (NHTSA) said it has received at least 20 reports suggesting that the original recall repairs failed to fix the issue, leading to further incidents including six cases where seven people were injured and 12 incidents that resulted in a crash or fire.

At the center of the investigation is a flaw that may allow the trucks transmission to shift out of park without the driver pressing the brake pedal or even having the key in the ignition. Such a malfunction could let the truck move on its own, posing a significant risk to drivers and bystanders.

Scope of the investigation

The recall query announced by NHTSA covers roughly 1.2 million Ram pickups built between the 2013 and 2018 model years. The vehicles were subject to earlier safety recalls in 2017 and 2018 addressing this same issue.

In December 2017, Fiat Chrysler Automobiles (now part of Stellantis NV) recalled approximately 1.48 million Ram trucks under NHTSA recall number 17V821000, citing concerns that the brake transmission shift interlock (BTSI) could fail in high-temperature conditions.

According to the official recall notice, If the BTSI becomes inoperative, the shifter can be moved out of Park without depressing the brake pedal or having the key in the ignition. Being able to shift the transmission without the key in the ignition increases the risk of unintended vehicle movement, which may result in a crash and/or injury.

In February 2018, the company expanded the recall with NHTSA number 18V070000, adding certain 2017 Ram 1500 and 2500 trucks that were not included in the initial action.

Despite these recalls and dealer-performed repairs that involved replacing faulty BTSI components, NHTSAs ongoing reports indicate the defect might persist in some trucks.

NHTSA is opening this Recall Query investigation to understand the scope, frequency, and potential root causes of the additional rollaway incidents, the agency said in a notice posted this week.

Automaker Response

In a brief statement, Stellantis confirmed it is cooperating with NHTSA as the investigation proceeds but did not offer further details about any new corrective actions.

The outcome of the probe could determine whether Stellantis will be required to conduct yet another round of repairsor possibly expand the recall even further.

Ram trucks are among the most popular vehicles in the United States, meaning a widespread defect could have significant safety and financial implications for both the company and its customers. For now, drivers of affected models are urged to ensure their vehicles are on level ground and the parking brake is engaged whenever the truck is left unattended.


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