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FDIC Chief Sheila Bair
HOEPA: NEW HOPE FOR OUTLAWING ABUSIVE MORTGAGES
There actually has been some very useful legislation passed in recent months that can offer better protections against abusive lending, but it threatens to be overshadowed by the Wall Street bailout. Our Broderick Perkins explores the Home Ownership and Equity Protection Act (HOEPA), an amendment to mortgage rescue legislation passed earlier this year. HOEPA mandates stiffer approval criteria for loans, forcing consumers to save more money for down payments, while also outlawing many deceptive and predatory lending practices used to trick people into bad loans. HOEPA: NEW HOPE FOR OUTLAWING ABUSIVE MORTGAGES
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One little-discussed part of the financial crisis is the effect of American consumers' compulsive obsession with housing as a means to build wealth. During the peak years of the housing boom, everyone and anyone jumped into the real estate market, many people buying huge McMansions they couldn't afford with money they didn't have, while others "flipped" homes for quick profits without any thought to the consequences. Broderick Perkins this week talked to author and Newsweek correspondent Daniel McGinn, whose new book "House Lust: America's Obsession With Our Homes" documents the craziness of the boom years, and how we need to stop thinking "bigger is better," and start thinking "Enough is enough." Read more...
More of the week's economic and financial news...
• What's Your Recession Game Plan? Economists offer tips for consumers and businesses to weather the storm.
• Study Finds Racial Disparity in Retirement Savings Blacks save less overall than whites, contribute less to plans.
• Retirement Postponed for More Americans What older workers can do to find employment in uncertain times.
• New York Threatens to Prosecute AIG for Fraud Attorney General lambasts insurer for extravagant expenses.
• Inflation Not a Factor in September Lower gas prices ease burden on consumers.
• Bailout Plan Tweaked for Banks Paulson reworks efforts to inject funds directly into markets.
• Study Blames Lenders, Not Borrowers for Mortgage Mess Homeowners more likely to default with subprime loans.
• Economic Worry Supplants Terrorism Fear Presidential candidates and business leaders get low marks from survey.
• Fed Approves Wells Fargo Acquisition of Wachovia Citigroup kicked to the curb as merger greenlit in record time.
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Auto dealerships continue to feel the pain of the economic slowdown through weakened demand, financing cutbacks, and high gas prices. Now GMAC Financial Services is tightening the screws further, through a new policy of only approving credit for "prime" borrowers--those with credit scores of 700 or higher. The new policy shuts out borrowers who may have decent credit overall, and leaves dealers wondering who is going to buy all of their inventory sitting on the lot. Read more...
GAS PRICES DOWN TO $3 A GALLON IN MANY STATES
What goes up must inevitably come down--and much to the chagrin of OPEC, that's true for gas prices as well. With oil hovering at $70 a barrel--under half of its record-breaking price of $147 a barrel just four months ago--gas prices nationwide are falling to $3 a gallon, and even lower in certain areas. OPEC has already called for cuts to production of oil on the order of one million barrels per day, but even that may not be enough to stop the slide--a welcome development for motorists, to be sure. GAS PRICES DOWN TO $3 A GALLON IN MANY STATES
The week's automotive news...
• New-Vehicle Buyers Turn to the Web in Record Numbers Changes in driving habits, high gas prices mean more research.
• Jeep Cherokee Stalling Problem Persists Complaints continue even after vehicle recall.
This week's recalls...
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A U.S. District Court judge approved a $24 million settlement for over 100 lawsuits filed over deaths of pets due to eating food tainted with melamine this week. The settlement enables pet owners to recoup expenses for veterinary exams, burial costs, and other actions taken due to their sick pets, providing they have documented the costs. But as Lisa Wade McCormick reports, many pet owners objected to the settlement, saying that no amount of money can make up for the grief felt over a lost pet. Read more...
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The Food and Drug Administration (FDA) is charged with monitoring and verifying the claims made on food packaging labels to ensure buyers are really getting what's on the advertising--but a new report from the Government Accountability Office (GAO) says they're falling down on the job. The report slams the FDA for not performing random testing of products to verify label accuracy, and for only inspecting a fraction of labels on food products imported from outside the U.S. The nonprofit Center for Science in the Public Interest (CSPI) cited numerous instances of deceptive food labeling and petitioned the FDA to develop a better system for informing consumers as to food's nutritional content. Read more...
This week's consumer protection news...
• Vermont Firm Recalls Possibly-Tainted Ground Beef 2,758 pounds of meat may be contaminated with E. coli.
• States Act On BPA in Baby Bottles Regulators take harder stance on chemical than Federal counterparts.
• Scammers Pose as FTC Officials to Defraud Consumers Promises of prize money are made, but there's a catch.
• Timeshare Promoters Face Deceptive Marketing Charges Companies used fake prizes to lure consumers into seminars.
• Indiana, North Carolina Lean on Telemarketers Attorneys General say companies are breaking the law.
• Tests Find Bottled Water No Cleaner Than Tap Water 10 popular brands contain mixtures of bacteria, fertilizer, and chemicals.
• Feds Issue Travel Alert for Mexico State Department warns of increased violence along border.
• Internet Rumor Claims Cocoa Mulch Causes Dog Deaths ASPCA says mulch can be dangerous, but not fatal.
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Identity theft isn't the hot-button issue it once was, but for anyone who's been a victim, the financial and psychological effects can last for years. In the case of Suzanne Finch, whose personal information was exposed in a data breach traced back to a group of Russian hackers, the problems involve a wall of silence from Citibank, who held all her credit cards and holds her mortgage as well. Finch has spent many months looking for answers, but only has more questions--and a lot of frustration. Read more...
More technology and Internet news...
• Consumers Getting Frustrated with DTV Coupon Program FCC member says transition will be "messy".
• Court Stops International Spam Network World's largest "spam gang" has assets frozen.
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Drinking excessively can make you do a lot of stupid things, but did you know it can literally make your brain shrink? A report in the October issue of Archives of Neurology says that the more alcohol an individual drinks, the smaller his or her total brain volume. Whereas moderate alcohol consumption can help improve your circulatory system's performance, the researchers found that alcohol consumption had nothing but long-term negative effects in store for the brain. Read more...
This week's health news...
• Spotting Signs of Cocaine Abuse Still one of the most dangerous drugs around.
• Improper Use of Decorative Contacts May Haunt You Halloween costuming may be harmful if improperly used.
• Better Treatment Identified for Childhood Vision Disorder New technique aims to help children read more easily.
• No Link Found Between Caffeine and Breast Cancer Risk But researchers say more study is needed.
• Statins May Help Prevent Miscarriages Drugs can help reduce complications brought on by APS.
NEW ROGUES
Every day we add hundreds of new consumer complaints and comments to our site. And each day sees a the addition of companies and products that haven't previously appeared in our Rogues Gallery. Here's the latest batch of newcomers:
- Daisy Rifles
- GE Slow Cooker
- iRobot
- Metabolife
- Super Shuttle
- Unbeatablesales.com
- Symantec Rebates
- Asko Appliances
- Del Monte Pet Food
- Kirkland Pet Food
- KLM
- Ryanair
- CMKX Diamonds
- Crunchless Abs
- Brandsmart USA
- Brandsonsale.com
- Great Date Now
- Cribs.com
- Brita Water Filters
- Cheap Trips
- Crestmark Homes
- Navapache Electric
- Splenda
- Vizio
We want to hear from you. If you've had a problem -- or a pleasant experience -- with a company, product or service, please let us know, using our secure Complaint Form.
