Consumer News: CVS faces class action over "non-drowsy" medication

Supporters call it a refocus; critics call it retaliation

• A new Education Department rule could disqualify some nonprofit workers from Public Service Loan Forgiveness (PSLF).

• The rule allows the agency to bar entire organizations if they engage in activities deemed substantially illegal.

• Critics say the move politicizes student debt relief and threatens borrowers close to forgiveness.

Thousands of nonprofit employees may soon lose eligibility for federal student loan forgiveness under a sweeping new Education Department rule that redefines who qualifies for the Public Service Loan Forgiveness program.

The 185-page regulation, published Thursday, gives the education secretary power to disqualify entire employers not just individual workers if their organizations are found to have a substantial illegal purpose. The rule, which takes effect July 1, fulfills a directive from President Donald Trumps March executive order targeting nonprofits accused of supporting illegal immigration, child trafficking, pervasive damage to public property and disruption of the public order.

That means workers at nonprofits serving undocumented immigrants, providing gender-affirming care to minors, or taking part in protest movements could lose PSLF eligibility. Payments made after a group is disqualified would no longer count toward the 120 qualifying payments required for forgiveness.

Activities that could trigger disqualification

Among the listed disqualifying activities: aiding violations of federal immigration law, supporting terrorism, performing gender-transition procedures on minors where prohibited, trafficking minors across state lines for emancipation, or engaging in organized violence to influence policy.

Employers may appeal if removed from the program, but the Education Department said payments made after disqualification will not count toward forgiveness even if the appeal later succeeds.

The change could affect a broad range of community organizations from legal-aid groups and immigrant-rights advocates to health clinics and humanitarian charities that rely on PSLF eligibility to recruit and retain staff.

Administration officials said the rule restores the programs original purpose. This regulation refocuses the PSLF program to ensure federal benefits go to our nations teachers, first responders, and civil servants who tirelessly serve their communities, said Undersecretary of Education Nicholas Kent.

Conservative lawmakers applauded the move. Taxpayers shouldnt be forced to subsidize employees of radical organizations that violate state and federal laws, said Rep. Tim Walberg (R-Mich.), chair of the House Education Committee.

But Democrats and borrower advocates blasted the rule as politically motivated. Rep. Robert C. Bobby Scott (D-Va.) said it follows the Trump Administrations disturbing pattern of making repayment less affordable and attempting to police political speech.

Jaylon Herbin, director of federal policy at the Center for Responsible Lending, called the policy a cruel trick that would saddle public workers with decades of additional debt and worsen shortages in critical community services.

Program with high stakes for millions

Created in 2007 under President George W. Bush, PSLF was designed to encourage graduates to pursue careers in public service by erasing their remaining federal student loan debt after 10 years of qualifying payments.

More than 1 million borrowers have already received forgiveness under the program. If the new rule withstands anticipated legal challenges, experts say it could reshape PSLFs reach across more than 20 economic sectors and upend forgiveness for thousands of borrowers already nearing the finish line.

What this means for borrowers

• If you are already working in a qualifying job and meeting the rules (qualifying loan type, full-time with a qualifying employer, making qualifying payments, submitting required certification), you should continue doing so and keep tracking your progress.

• If your employer is a nonprofit or governmental entity, youll want to check whether your employer is (or will be) considered a qualifying employer under the updated rules. Any changes or uncertainty about your employers eligibility could impact your path to forgiveness.

• Because the rules are in flux, its advisable to document your employment history, payments, certifications, and keep up-to-date with communications from loan servicers and the Department of Education.

• If youre considering starting public-service employment specifically for PSLF eligibility, you may want to ask: Will this job/employer still qualify if the rules change? especially for nonprofits that may have ambiguous status.

High interest rates are pushing buyers towards risky ARMs

• Adjustable-rate mortgages (ARMs) are making a comeback as home buyers seek relief from record housing costs.

• ARMs offer lower initial payments than fixed-rate loans but carry the risk of higher costs later.

• Buyers are betting that rates will fall before their loans resetbut thats not guaranteed.

Faced with soaring home prices and mortgage rates, a growing number of buyers are turning to adjustable-rate mortgages (ARMs) in hopes of easing their monthly payments.

These loans offer lower introductory rates than traditional fixed-rate mortgages, but after a few yearstypically three to 10the rates reset based on broader market conditions. If rates rise during that period, borrowers could find themselves paying hundreds more each month.

Still, many buyers see ARMs as their best chance to afford a home now, betting that mortgage rates will fall before their loans adjust.

The average rate for a 30-year fixed mortgage was 6.15% in late October, compared with 5.46% for five- and seven-year ARMs, according to mortgage-technology firm Optimal Blue. About 10% of all purchase-mortgage applications that week were for ARMsthe highest share since 2023, data from the Mortgage Bankers Association show.

In early 2021, when rates were near record lows, less than 3% of borrowers chose ARMs. But after home prices rose more than 50% since 2019 and property taxes and insurance costs also climbed, many buyers are desperate for lower payments.

We see more borrowers trying to get rates in the 5% range, said Scott Bridges, consumer-lending head at Pennymac, in a Wall Street Journal report. Typically with an ARM loan, thats one of the only ways youre going to get there.

A gamble on falling rates

Many home buyers are picking up ARMs for rates of about 5.25%, about half a point less than the 5.875% a fixed mortgage is going for lately. The lower rates saves hundreds of dollars a month but it's a bet based on the hope that rate go down over the next few years.

Whether that bet pays off depends on what happens next. The Federal Reserve recently cut short-term interest rates, which could continue to push mortgage costs down. But if rates rise again before the Everetts refinance, their monthly payments could increase once the ARM resets.

Less risky than beforebut still a risk

Adjustable-rate loans played a major role in the mid-2000s housing crash, when many borrowers lost their homes after rates reset higher. Experts say thats less likely now.

Todays ARMs have tighter lending standards and built-in limits on how much the rate can rise. Theres more of a sense of calm that rates are more likely to go lower from here than higher, said Jeff DerGurahian, chief investment officer at LoanDepot.

Even home builders are embracing the trend. Fourteen percent of recent new-home buyers used ARMs, according to John Burns Research & Consulting. Builders D.R. Horton and Century Communities both report rising ARM use among their customers.

At least 27 people in 18 states have been sickened, six have died

By Mark Huffman of ConsumerAffairs

• The U.S. Food & Drug Administration has confirmed that the multistate outbreak of Listeriosis linked to refrigerated and frozen ready-to-eat pasta meals has grown: at least six deaths and 27 illnesses have been reported across 18 states.

• Investigators have traced the outbreak to a pre-cooked pasta ingredient supplied by Nates Fine Foods, Inc. in California, which tested positive for the same strain of Listeria monocytogenes found in consumers.

• A wide range of productsincluding pasta salads, alfredo meals, and frozen trays sold by major grocersare now subject to recall or voluntary withdrawal; consumers are being urged to discard or return affected items.

In a troubling update, the FDA reports that a listeria outbreak first flagged in mid-2025 has now escalated significantly. Federal agencies, in collaboration with the Centers for Disease Control and Prevention (CDC) and state partners, say that as of the latest investigation, 27 people across 18 states have been confirmed ill. At least six people have died, and one case involving a pregnant person resulted in a fetal loss.

The origin of the outbreak has been traced back to pre-cooked pasta produced by Nates Fine Foods of Roseville, California. A sample of linguine from that supplier tested positive for the same listeria strain found in ready-to-eat meals made by another company.

That suppliers pasta was used by several processors making deli-type pasta salads and frozen meals.

Following this discovery, multiple recalls have been announced. These include, but are not limited to:

• Pasta salads sold in the deli sections of national grocers such as Kroger and Albertsons.

• Frozen ready-to-eat meals like shrimp scampi linguini and blackened chicken alfredo trays.

• A recall by Trader Joes of Cajun-style blackened chicken breast fettuccine alfredo trays with best if used by dates from late September to early October.

While none of the tainted products are still being sold, the FDA is concerned that they could still be in consumers freezers. Health officials urge consumers to inspect any frozen pasta products they possess to make sure they havent been recalled.

Why this outbreak is especially concerning

What sets this outbreak apart is how it highlights the risk in ready-to-eat meals that combine cooked pasta with sauces or deli components and are stored chilled or frozen. Listeria monocytogenes can survive and multiply at temperatures where many consumer foods are kept.

Also, the hospitalization rate is very high: of the 20 people with information available in September, 19 were hospitalized. The severity of outcomes including deaths and fetal loss underscores how dangerous the pathogen is for vulnerable groups (pregnant women, older adults, immunocompromised individuals).

The FDA, along with USDAs Food Safety and Inspection Service (FSIS) and the CDC, is actively tracing the supply chain, inspecting facilities, and monitoring whether additional products may be contaminated. The investigation is still ongoing.

Luxury brands dominate the list

By Mark Huffman of ConsumerAffairs

• Nearly 3 in 10 Land Rover Discovery Sports are resold within their first yearmore than any other new car.

• All of the top 10 most-resold cars are luxury brands, according to iSeeCars latest national analysis.

• Experts say dissatisfaction, dealer tactics, or financial strain may explain why so many luxury cars quickly return to the market.

Have you ever purchased a new car and within weeks, realize the purchase was a mistake? It may not be a common experience but it does happen, a data show one category of vehicles is involved more than all others.

A new iSeeCars study reveals that luxury vehicles are far more likely to be resold within a year of purchase compared to the industry average. While only 3.6% of new cars are typically resold within 12 months, some luxury models change hands at rates four to eight times higher.

Topping the list is the Land Rover Discovery Sport, with 28.3% of new buyers re-selling their vehicle within the first year. Close behind are the Porsche Macan at 22.2% and the Mercedes-Benz GLB at 21.2%. Three other Mercedes models the CLA, GLA, and C-Class also appear in the top 10, alongside multiple Land Rover models, the BMW 5 Series, and Jaguar F-PACE.

Owner dissatisfaction is the most obvious cause, said iSeeCars executive analyst Karl Brauer. But financial hardship and even creative dealer accounting can also drive this number up, with some retailers registering demonstration vehicles as sold to boost sales figures.

The study analyzed over 18.5 million new car sales from 2023 to 2024, tracking which models were listed for resale within the first year. Across all 10 top-ranked models, resale averages were dramatically higher than normal, underscoring the volatility in the luxury segment.

Luxury brands lead early resale rankings

The report also ranked brands by overall resale rates. Porsche leads with 16% of its cars returning to market within a year, followed by Jaguar (10.7%), Mercedes-Benz (9.1%), and Land Rover (8.9%. INFINITI, BMW, Genesis, Audi, MINI, and Maserati complete the top 10again, all premium nameplates.

Luxury buyers may not be doing enough research before buying, or they simply tire of their purchase quickly, Brauer added. In some cases, dealers may also resell vehicles that were briefly used as demos or loaners.

For everyday car shoppers, the findings highlight a silver lining: many of these lightly used luxury cars reenter the market with low mileage and nearly full warranties, selling for significantly less than their original price tags.

Buyers seeking top-tier features without the new-car premium may find compelling deals among these fast-turnover models.

However, consumers should still check warranty details carefully and understand why a particular model may have been quickly resold. A little research can turn someone elses regret into another drivers opportunity.

A huge number of buyers walked away in September

By Mark Huffman of ConsumerAffairs

• Roughly 53,000 home-purchase deals fell through nationwide in September 15% of homes that went under contract that month.

• Florida and Texas metros led the nation in canceled deals, with Tampa topping the list at 20.1%.

• Experts cite high prices, inspection issues, and rising climate and insurance costs for the growing trend of homebuyers ghosting sellers.

Treasury Secretary Scott Bessent believes the U.S. housing market could be in a recession, but he is assigning blame to the Federal Reserves interest rate policy.

I think that we are in good shape, but I think that there are sectors of the economy that are in recession, Bessent said on CNNs State of the Union program. And the Fed has caused a lot of distributional problems with their policies.

Whether its interest rates, high prices or other economic factors, the data show that a growing number of Americans are backing out of home-purchase agreements, signaling deepening tension between buyers and sellers in todays high-cost housing market.

According to a new report from Redfin, about 53,000 home-purchase contracts were canceled in September, accounting for 15% of all homes that went under contract, up from 13.6% a year earlier.

The data show that in many markets, particularly in Florida and Texas, buyers are ghosting sellers at unprecedented rates as affordability, inspection concerns, and climate risks weigh on decision-making.

Florida and Texas had the most canceled contracts

In Tampa, 20.1% of pending home sales were canceled in September, the highest share in the nation and up from 17.7% last year. San Antonio followed at 19%, alongside Atlanta, Orlando, Fort Worth, Dallas, and Fort Lauderdale, where nearly one in five deals also fell through.

Buyers are ghosting sellers at a fairly high rate nationwide, Redfin reported, noting that both sides are often unwilling to compromise on repairs, pricing, or concessions. With mortgage rates near multi-decade highs and competition cooling, buyers expect perfection while sellers, many of whom bought during the pandemic, are reluctant to lower their prices.

Sun Belt fatigue

Im seeing a lot of buyers remorse, said Jo Chavez, a Redfin Premier agent in Kansas City. Buyers make an offer, then they start worrying they could have found a better deal or a better home because there are more home sellers than buyers in the market.

That hesitancy is especially pronounced in the Sun Belt, where prices surged during the pandemic boom. Cities like Tampa, Las Vegas, and Jacksonville saw massive in-migration in 2021 and 2022, but the combination of rising insurance premiums, HOA fees, and climate risks has cooled enthusiasm. Builders in these states are also adding supply faster than anywhere else, giving buyers confidence they can wait for a better fit.

Inspections reveal problems

Redfin found that over 70% of failed deals fall apart during the inspection phase when buyers push for repairs or price cuts and sellers push back. In this buyer-tilted market, even small inspection issues can send buyers running. Many are also targeting lower-priced homes, which are more likely to have inspection problems in the first place.

The growing rate of cancellations is also discouraging some sellers from listing their homes. Those unwilling to meet market expectations or make repairs are instead choosing to wait, adding to the slow pace of sales.