Student Loan Debt Increased $77B In 2014, One In Nine Loans Now Past Due


Student loan debt reached an all-time high and delinquency rates continued to rise last year, according to a new report from the Federal Reserve Bank of New York found.

Bloomberg reports that data [PDF] from the New York Fed shows student loan debt increased $31 billion last quarter, bringing the total student debt to $1.16 trillion – a 7.1% increase over debt in 2013.


The $31 billion increase brings the total 12-month increase for 2014 to more than $77 billion.


According to the New York Fed, 11.3% of student loans were delinquent (90 days past due) in the final three months of 2014, up from 11.1% in the first three quarters of the year.


The Associated Press reports such high delinquency rate translates to one in nine student loans being past due.


Officials with the New York Fed say that while the level of delinquencies already appears high, it’s likely understated.


About half of all student loans are in deferment, in grace periods or in forbearance, temporarily removing them from the repayment cycle.


Although delinquency rates have decreased from the record 11.8% in 2013, they remain about 6% higher than a decade ago, the New York Fed reports.


“Although we’ve seen an overall improvement in delinquency rates since the Great Recession, the increasing trend in student-loan balances and delinquencies is concerning,” Donghoon Lee, research officer at the New York Fed, said in a statement.


As previous studies have found, the New York Fed report reiterates findings that high student loan debt and delinquencies appear to be “reducing borrowers’ ability to form their own households.”


Student-Loan Delinquencies Rise in U.S. [Bloomberg]


1 in 9 student loans past due, limiting ability to buy homes, NY Fed says [The Associated Press]




by Ashlee Kieler via Consumerist

Video: Piggly Wiggly Customer Turns Parking Lot Into Demolition Derby


A 94-year-old Piggly Wiggly customer managed to turn the store’s parking lot into his own personal bumper cars attraction, after he said he confused the gas pedal for the break and panicked, hitting about 10 cars in the process.

The elderly Wisconsin man’s driving endeavors were caught on surveillance tape from the grocery store, reports WTMJ 4 News, but police say he won’t be charged after ramming into several vehicles.


He told officers on the scene that he’d gotten confused and panicked while backing out of a spot.


“It could have been a heck of a lot worse,” the police chief told the station, adding, “We were very, very fortunate that there was no pedestrians walking out with their groceries,” He added.


A man whose truck was hit ran after the driver with his fiancee to try and help him get control of his vehicle.


“I’m slamming on the window, just pounding on it saying stop your car, stop your car,” he said.


Though police likely won’t charge the man, the chief said the Department of Motor Vehicles is looking into possibly retesting him for his drivers license.



Couple able to stop elderly man who hit nine cars in Piggly Wiggly parking lot [WTMJ 4]




by Mary Beth Quirk via Consumerist

Visitors Bureau For Ice-Cold Ithaca Tells People To Just Go Get Warm In Key West

ithacagivesin While the central New York city of Ithaca might be home to lovely Cornell University and the fictional University of Ithaca from the classic Breckin Meyer comedy Road Trip, it — like many places north of 35th parallel this week — is unpleasantly, bone-chillingly cold. But at least the folks at the Ithaca Visitors Bureau have a good sense of humor about the weather.


A trip to the Visit Ithaca website currently brings up an overlay with the VisitIthaca.com logo crossed out and a picture of a sunny beach scene below.


“That’s it. We surrender,” reads the notice at the top of the page. “Winter, you win. Key West anyone?”


“Due to this ridiculously stupid winter, Ithaca invites you to visit The Florida Keys this week,” the site continues. “Please come back when things thaw out.”


Of course, they haven’t actually given up on trying to lure people to Ithaca, regardless of the temperature. So the actual site for the city remains intact. But it is a clever way to acknowledge the unpleasant temperatures and how difficult it might be to get people to leave their homes, let alone travel hours to the middle of New York state.


“On behalf of 100 million Northeasterners, we’re saying that we’re done with cold and snow,” the bureau’s director explains to the Ithaca Journal. “This is a way for us to stay engaged with our customers at a time when Upstate New York isn’t exactly top of mind.”




by Chris Morran via Consumerist

Banks Blame Each Other For Erroneous $10 Million Account Balance

atmWhen a woman in Australia checked her bank account balance earlier this week, she was surprised to see that she had $10 million available in her account. (That’s worth about $7.8 million US dollars, if you’re wondering.) She wondered whether it was an error or a prank, so she called her bank instead of running off on an international spending spree. The bank told her that it was no error: she was an unwitting millionaire.


This was surprising news to her, so she tried to figure out what was going on, ultimately taking her story to news outlets to get some attention. Her receipt inexplicably showed that she had a $7,500 overdraft at the same time that she had an account balance of $10 million, which shouldn’t be possible.


atmreceipt


The $10 million figure, it turns out, is how much money the customer could in theory spend for her account type. That’s not a line of credit or her actual balance, just the spending cap if she did happen to have that much money.


Ultimately, her bank, ANZ, determined that the confusing limit came from a miscommunication between their system and ATMs from other banks. That’s not a very entertaining explanation, but the customer says that bankers have contacted her to explain the error.


Gold Coast’s momentary millionaire won’t have to repay overdraft [Gold Coast Bulletin]




by Laura Northrup via Consumerist

Universal Orlando Temporarily Banning Visitors From Bringing In Bottled Water, Won’t Say Why


If you’re planning a trip to Universal Orlando in the near future, leave your bottled water and other beverages at home: In a U-turn from its usual policy allowing visitors to bring their own drinks into Universal CityWalk and other theme areas, the park is putting a temporary ban on carry-in liquids.

Without any details for the reason behind the move or how long the ban would last, a park spokesman confirmed that the prohibition isn’t here to stay, reports the Orlando Sentinel.


“This is the result of a review of our procedures and is not permanent,” he told the paper in an emailed statement.


While other parks like Disney allow guests to bring in lunches as well as beverages, Universal Orlando had occupied a space in the middle, allowing small snacks and bottled water.


So it was surprising to visitors used to the old ways when they showed up unaware of the new rule (which does allow for medicines and baby formulas to be carried in).


“I just couldn’t believe it,” said one guest, who added that the line to get in slowed to a crawl as he and others were asked to dump their water bottles. “I just was thrown off.”


When something like this happens there’s of course speculation that perhaps Universal wants to line its own coffers by forcing visitors to buy branded bottle water inside. Or maybe it’s a security measure to ward against alcoholic beverages coming in during its Mardi Gras special event.


“It might be that they’re concerned about security, but in the end they’re going to end up selling more food and beverages through not allowing people to bring in the liquid,” a hospitality associate professor pointed out to the Orlando Sentinel.


In the meantime, Universal Orlando’s tips for visitors planning trips to the park still includes bottled water on the list of items acceptable to bring along.


Universal Orlando blocking bottled water [Orlando Sentinel]




by Mary Beth Quirk via Consumerist

Maker of Oreos, Ritz Crackers Expands Into Allergen-Free Snacks With Purchase Of Enjoy Life Foods

product_family Mondelez International, the company behind Oreo, Wheat Thins, Honey Maid and hundreds of other brands is adding more than 40 allergen-free snacks to its long roster of treats with the purchase of “free from” company, Enjoy Life Foods.


The Chicago Tribune reports that the terms of the deal weren’t released but officials with Enjoy Life Foods say the company has annual sales of more than $40 million.


The deal gives Illinois-based Mondelez a foothold in the $12 billion ‘free from” market, which is composed of companies offering snacks that don’t contain common allergens.


Enjoy Life sells a variety of cookies, cereals, soy-free chocolate and lentil chips that do not contain wheat, dairy, peanuts, tree nuts, egg, soy, fish and shellfish. The products are currently for sale in more than 35,000 store in the U.S. and Canada.


“As we focus on continuing to drive growth in snacking, the acquisition of Enjoy Life Foods is a great strategic fit for us,” Mark Clouse, Chief Growth Officer at Mondelez International said in a statement. “The Enjoy Life brand expands our portfolio into faster growing, on-trend, ‘better-for-you’ areas and provides an excellent platform to make these delicious offerings available to consumers with ‘free-from’ needs or simply looking for healthy-lifestyle options, both in the United States and beyond.”


According to Mondelez, Enjoy Life will operate as a separate, wholly owned subsidiary of the company.


Mondelez acquires small maker of allergen-free snacks [The Chicago Tribune]




by Ashlee Kieler via Consumerist

Philip Morris Does Horrible Job Of Defending Itself After John Oliver Mocking

The new Jeff billboards posted at a bus stop in Montevideo, Uruguay.

The new Jeff billboards posted at a bus stop in Montevideo, Uruguay.



On Sunday night, John Oliver called out the tobacco industry, and particularly Philip Morris, for the practice of threatening small and poor countries with complicated, expensive international trade lawsuits if they try to strictly regulate cigarette marketing. But while Big Tobacco has the coffers to pay for costly legal battles, it does a really poor job of trying to defend its actions.

In response to an L.A. Times article on the Oliver mocking — which not only introduced the new Marlboro Man, Jeff The Diseased Lung In A Cowboy Hat, but also the wildly popular hashtag #JeffWeCan — Philip Morris issued a statement that tries to minimize the seriousness of the claims made in the story while simultaneously acknowledging that the company’s products kill people.


First off, the statement takes the approach of trying to negate the 18-minute, thoroughly researched report by pointing out that it dares to come from someone with a sense of humor:



“’Last Week Tonight with John Oliver’ is a parody show, known for getting a laugh through exaggeration and presenting partial views in the name of humor. The segment includes many mischaracterizations of our company, including our approach to marketing and regulation, which have been embellished in the spirit of comedic license.”



Okay… so this should be where the very serious folks at Philip Morris go point by point and explain where Oliver exaggerated and embellished, but they don’t. It’s a classic non-response in which the accused tried to undercut the accuser’s argument by claiming he can’t possibly be providing the truth.


Philip Morris does not deny using threats of lawsuits to keep countries Uruguay from enacting tougher regulations on cigarette packaging.


It does, in an after-note, link to a 2014 explainer post from Philip Morris International saying that Uruguay was violating a trade agreement with Switzerland by requiring a warning label that covered 80% of the packaging.


Then there’s this brief gem from the statement:



“While we recognize the tobacco industry is an easy target for comedians, we take seriously the responsibility that comes with selling a product that is an adult choice and is harmful to health.”



The tobacco industry is an easy target for comedians because it has a long history of risible behavior. And how can Philip Morris expected to be taken seriously when it readily admits that the products it sells are “harmful to health”?


Philip Morris doesn’t need to blame comedians when it makes statements like this:

“We support and comply with thousands of regulations worldwide — including advertising restrictions, penalties for selling tobacco products to minors, and substantial health warnings on packaging.”


First off, the tobacco industry doesn’t support these regulations. It only supports the ones it can’t fight in a courtroom. Once it loses a battle — or realizes a battle can’t be won — then suddenly Big Tobacco, just like every other heavily regulated industry, claims to support and abide by the rules.


For example, Big Tobacco went all the way to the U.S. Supreme Court to fight graphic warning labels — which were mandated by the Family Smoking Prevention and Tobacco Control Act all the way back in 2009. And even after SCOTUS rejected the industry’s appeal, Philip Morris’ partner-in-carcinogens Lorillard stated that “there will obviously be a good deal more litigation to come on this topic.”


It’s been nearly two years since that rare tobacco industry legal loss and we still have no idea if or when the labeling provision of the Family Smoking Prevention and Tobacco Control Act will be enacted.


So no, the tobacco industry has absolutely no respect for attempts to educate and inform consumers. They just have respect for the few regulations they haven’t been successfully able to defeat in court.


Philip Morris would also have you believe that after more than a century of selling cigarettes, it suddenly cares about customers’ health:



“We’re investing billions into developing and scientifically assessing a portfolio of products that have the potential to be less harmful and that are satisfying so smokers will switch to them.”



Finally, in its closing sentence, Philip Morris gets into some actual specifics of why it takes such drastic actions to protect its products — aside from the billions it makes by giving people cancer and lung disease:



“And, like any other company with a responsibility to its business partners, shareholders and employees, we ask only that laws protecting investments, including trademarks, be equally applied to us.”



That’s honestly the best Philip Morris and Big Tobacco can come up with — We’ve spent a lot of money and have a lot of investors so please don’t mess with our packaging because it might cause us to earn smaller profits.


It’s an argument that might be tenable if cigarettes did anything other than poison the people who buy them — or live in the same house with them.


Anyway, here is the full Last Week Tonight piece that has already been seen watched nearly 2 million times since yesterday morning:





by Chris Morran via Consumerist

Burst Sprinkler Pipe Floods NYC Movie Theater, Sends Chandelier Crashing To The Floor


Nothing quite ruins a movie like an unexpected shower: Moviegoers at a New York City theater were interrupted in their cinematic pursuits yesterday afternoon when an overhead sprinkler pipe burst, flooding the place and sending a light fixture crashing to the ground. And yes, the theater did have screenings of Fifty Shades of Grey on the schedule let’s make that joke in our heads and move on.

Cold weather in NYC is being blamed for the bursting pipe at the AMC Theater on the Upper West Side, reports CBS2, sending water flooding into the theater and prompting an evacuation.


While some were still tarrying, the definitive sign to leave came when a large chandelier in the atrium fell to the ground and splashed into the water as onlookers gasped and agreed that yeah, it was just about time to get out of there.


The theater was shut down for six hours after the incident, while customers were able to use their tickets at other AMC theaters.




by Mary Beth Quirk via Consumerist

Lawmakers In House, Senate Investigating Fraudulent Returns Filed With TurboTax


Joining the Federal Bureau of Investigation and the Internal Revenue Service on the case of bogus tax returns filed used Intuit’s TurboTax software will now be lawmakers from both the House and Senate, who have started probing the recent flurry of fraudulent activity.

TurboTax temporarily put a hold on filing all state tax returns due to reports of fraudulent activity in Minnesota, Utah and other states.


The probes from lawmakers in Congress will seek to understand how criminals are raking in billions of dollars on fake refunds. The federal government lost an estimated $5.2 billion in the 2013 filling season due to fraud, reports the Wall Street Journal, and that was despite new IRS screening methods.


Intuit has said it doesn’t think its system was breached, so it’s up to federal investigators and officials to try to figure out how widespread the fraud issues are and how it was done, an insider tells the WSJ.


In the meantime, top lawmakers are joining the fray with their own probes: Senate Finance Committee Chairman Orrin Hatch of Utah has said his panel is going to take a closer look into the incidents, calling the news of fraud “troubling.” The issue is likely going to be examined at a hearing planned for next month on tax scams.


Over in the House, the Ways and Means Committee is also probing the incidents and thus far has held bipartisan discussions with IRS and Intuit.


What steps might Congress take to remedy the problem? Perhaps starting the tax filing season later in the year, posits the WSJ, or taking longer time to process refunds. Part of the issue for the IRS is that the federal government receives wage information from employers in spring, much later than workers do. So when employees go to file tax returns, the IRS doesn’t have the employer information to check against.


That might be a hard row to hoe though, as some payroll firms and other employers have argued in the past that getting that data to the IRS sooner in the year would be too burdensome. It also might cost the IRS more to speed up the process of matching employer and employee data before issuing returns.


Congress Starts Its Own TurboTax Probes [Wall Street Journal]




by Mary Beth Quirk via Consumerist

Secretary Of Labor Hopes To End West Coast Ports Gridlock


Today, workers at the major sea ports on the West Coast report back after a split four-day weekend. Contract negotiations between the union and a trade organization that represents shipping companies have continued for nine months, and the U.S. Secretary of Labor is joining the negotiations today before the slowdown has worse effects on the global economy.

The two sides don’t even agree on the reason for the slowdown: either it’s a deliberate tactic on the part of port workers, or changes in the system have caused difficulties in unloading all the cargo. Everyone agrees that there are ships waiting at the 29 ports along the Pacific coast, and they aren’t being unloaded during normal workdays.


Containers on a ship waiting to unload in Long Beach can affect people nationwide: everyone from retailers to factories depend on the smooth flow of cargo containers around the world. While some automakers have started to transport parts by air cargo, Honda says that it will start to slow down production at its factories in the United States and Canada.


“We are entering another period of fundamental supply chain re-evaluation that is already leading some shippers to permanently abandon the West Coast,” one expert on international trade by sea told Reuters. That information is helpful to shipping lines, since the threat that work at the ports could dry up entirely is a useful negotiating tool. Shipping rates are going up in general because of the dispute, and when the companies shipping merchandise across the Pacific need to reroute those ships to ports on the Atlantic coast, that’s more expensive and inefficient.


The Secretary of Labor, Tom Perez, hopes to help the two sides negotiate and come to an agreement so the stuff can continue flowing.


Asian supply lines hit by West Coast ports dispute [Reuters]




by Laura Northrup via Consumerist