Consumer News: Consumer groups oppose CFPB plan to scale back supervision

Passengers should not assume the airline will automatically refund their fare

By Mark Huffman of ConsumerAffairs

• Millions of airline passengers were stranded over the weekend as a powerful winter storm snarled air travel across large swaths of the country.

• Flight cancellations and long delays raised fresh questions about what airlines owe travelers when weather disrupts schedules.

• Consumer advocates say many passengers dont realize they still have important rights, even when storms are to blame.

A major winter storm that swept across the U.S. this weekend forced airlines to cancel thousands of flights and delay many more, leaving travelers stuck in airports, sleeping in terminals, or scrambling to rebook plans. While airlines often point to severe weather as an unavoidable act of God, passenger advocates say travelers still have clear rights and options when flights are canceled or significantly delayed.

Under U.S. Department of Transportation rules, passengers are entitled to a full refund if their flight is canceled and they choose not to travel, even if the cancellation is caused by weather. That refund must be issued to the original form of payment and cannot be limited to airline vouchers or credits, unless the passenger agrees to accept one.

Its not just weather or lost luggage consumers are worried about; their trust in the travel system is eroding, said Matt Layton, LegalShields senior vice president of consumer analytics. New confusion regarding passenger compensation exposed how fragile the travel ecosystem can be. This shift in confidence is driving real behavior changes.

What usually happens

For travelers who still want to fly, airlines generally rebook passengers on the next available flight at no additional cost. However, rebooking policies vary widely, especially during widespread disruptions when seats are scarce. Some airlines may place passengers on partner carriers, while others restrict rebooking to their own flights.

What airlines typically do not have to provide during weather-related disruptions is compensation for hotel stays, meals, or ground transportation. Unlike the European Union, which mandates cash compensation for many delays, U.S. airlines are not required to pay passengers when weather is the cause. A recent LegalShield survey found thats a source of confusion.

Weve spent our hard-earned money for the airline to get us to our family and friends, and many people believe that if that doesnt happen, the airline will automatically pay us back, said Wayne Hassay, a LegalShield provider lawyer with Maguire Schneider Hassay, LLP in Ohio. That is simply not true.

While federal guidelines address issues such as overbooking, extended tarmac delays, and some controllable events, Hassay said most additional compensation is governed by individual airline policies even if passengers ultimately reach their destination.

Costly confusion

The consequences of that confusion can be costly. LegalShields research found that 63% of travelers lost money due to travel disruptions, and one in four lost more than $500.

More than half said they wasted significant time dealing with delays, customer service problems, appeals, and claims. At the same time, 25% admitted they are unfamiliar with their travel rights, and 55% said they lack confidence in asserting those rights when something goes wrong.

Consumer experts recommend that travelers affected by the storm keep all documentation, including boarding passes, delay notifications, and receipts for unexpected expenses. While airlines may not be obligated to reimburse those costs, some will consider goodwill refunds if passengers submit a complaint.

Credit card travel protections can also play a role. Many premium credit cards include trip delay or cancellation insurance that covers meals, hotels, and other expenses when severe weather disrupts travel.

With winter far from over, advocates say the key takeaway is preparation and persistence. Know your rights, ask questions at the airport, and dont assume the airlines first answer is the final one,experts advise. Even in bad weather, passengers are not powerless.

Why returned doesnt mean broken and can mean half price

• Major retailers quietly resell customer returns at steep discounts Many returned items are barely used, but stores would rather discount them fast than put them back at full price.

• The key is shopping the right channels, not regular shelves Clearance endcaps, open-box programs, resale sections, and return liquidators are where the real deals land.

• Savings of 30% to 70% are common if you know what to look for Condition labels, packaging damage, and manager markdowns often mean deep discounts on perfectly functional products.

Customer returns are one of the biggest sources of hidden retail discounts. Most people assume returns are broken or heavily used, but the reality is a huge percentage of returned items are:

• Opened but never used
• Bought in the wrong size or color
• Returned after holidays
• Perfectly fine but in damaged packaging

This is a major win for shoppers as most retailers dont like putting these items back on their regular shelves. So, they get thrown into clearance sections, open-box areas, and liquidation channels where prices often drop 30% to 70%, sometimes more.

But you have to know where to go to find them and save money. Enter this article. Heres where the good returns actually go and the type of savings you can realistically expect.

Amazon Resale (online return central)

Amazon Resale is Amazons official online outlet for returned and open-box items.

The good news is its not a bunch of sketchy third-party sellers trying to unload junkits just Amazon reselling items customers sent back.

Some of the items youll regularly find include:

• Air fryers
• Headphones
• Laptops
• TVs
• Power tools
• Toys

Perhaps the best part of using Amazon Resale is they tell you upfront about the condition of the item and everything still comes with their 30-day return policy.

Specifically, they break it down into these condition categories:

• UsedLike New Product is in perfect working condition with no cosmetic flaws. Comes with all original accessories but it could be missing the original packaging.
• UsedVery Good This means lightly used with minor signs of wear. Often repackaged but is still in great working condition. Ive found that this is often the sweet spot as you get significant savings but the item is still basically new.
• UsedGood Item will show moderate wear from consistent use, but guaranteed to still be functional. A bit more of a risk because you dont know exactly how hard the previous owner used it.
• UsedAcceptable These will have clear signs of use like scratches, dents, and even worn corners. Check the listing carefully as it could be missing accessories that youll have to replace yourself, often cutting into the original savings it might provide.

Realistic Savings:

Its fairly common to find 4050% off savings on items marked Used Very Good.

For example, Ive seen a $129 air fryer sell for only $69. Ive also bought a $249 pair of noise-canceling headphones for just $129 simply because the box was badly damaged and had to be replaced.

Pro tip: Be aware that prices change daily as inventory sells through. So be sure to check back often on products youre interested in buying. Be ready to buy when the price meets your budget.

Target clearance (where returns hide in plain sight)

When someone buys an item from Target.com and then returns it to a Target store, it often gets added to a clearance endcap (if it isnt liquidated).

From there, its usually sold at a big discount, often 50-70% off the original price.

In each department, look for these clearance endcaps at the end of aisles. They tend to exist the most in electronics, toys, and home dcor/appliances.

Specifically, when hunting for these endcaps, look for the following:

• Yellow clearance stickers.
• Open-box items that you can tell have been opened and they sometimes have damaged packaging.
• Look for a handwritten markdown tag. These are often done by a Target manager and its usually a very low price designed to get rid of a returned product quickly.

Realistic Savings:

Markdowns usually start at 30% off and can hit 5070% off if it doesnt sell right away.

For example, that $129 Keurig someone returned could land on clearance for just $59, or a $40 throw blanket can get marked down to $18 after a return.

Pro tip: Dont be afraid to negotiate the price on some of these open-box returns at Target. Managers know theyll have a hard time selling some of these products, so theyll often be happy to give you an extra 10% discount to get rid of it.

Amazon return/bin stores (treasure hunt style)

Amazon return stores are personally my favorite way to buy returns at a huge discount.

These return stores buy truckloads of Amazon return pallets every week. Theyll then throw everything into bins and sell items at a flat price that drops each day of the week.

The return store in my town isclosed on Sunday and Monday to restock the bins. Then when they open on Tuesday, everything is $6, then it all drops to $4 on Wednesday, $2 on Thursday, $1 on Friday, then everything is just $0.25on Saturday.

The shipments you can expect include everything from food and paper goods to small appliances, office supplies, books, and even small furniture.

Some of the returns have no packaging, some of it has beat-up packaging, and some of it looks absolutely brand-new.

Realistic Savings:

Ive found $10 iPhone chargers for only $0.25. Ive also found a $50 filing cabinet for just $6.

Its not uncommon to pay just $4 for a $40 LED light kit or only $2 for a $25 phone accessory.

Keep in mind that all sales will be final at these return stores. But usually the price is so low that its worth the risk.

Pro tip: Do a quick Google search for YOUR TOWN Amazon return store and youll quickly find the returnstores in your neck of the woods.

Best Buy open box (premium return deals)

When someone returns an item to Best Buy, it doesnt go straight back on the shelf as new.

Instead, Geek Squad or store staff inspect it, test it, and then resell it as Open-Box at a discount.

Youre often buying something that was used for a day or never plugged in at all.

The Best Buy Open-Box condition grades:

• Excellent (sometimes Certified) Basically like new. Includes all original parts and usually the box. Minimal signs of use, if any.
• Good Items typically work perfectly fine but may have a minor cosmetic scuff or two. Could also be missing non-essential accessories (like a manual or HDMI cable).
• Fair Often has noticeable wear and is sometimesrepackaged ifit was returned without the original box/packaging. It hasbeen tested and is functional.

Realistic Savings:

Most open-box items run 2545% off, depending on the condition, but TVs and other big-ticket items can be even more.

A $1,000 laptop may sell for $699 open box, and a $799 TV could drop to $499 just because it left the store once.

That quick update request could quietly impact your credit

• Why theyre asking: Lenders use updated income to reassess risk. If you dont respond, they may assume your finances worsened and cut your credit limit.

• Ignoring it can hurt: Skipping the request may lead to lower limits or closed accounts, which can ding your score by raising utilization or shortening credit history.

• Updating can help: If your income is steady or higher, sharing it could mean bigger limits and better offers just verify the request and be honest.

A recently updated article at Clark.com highlights a growing trend of banks and credit card companies increasingly asking customers to update their income information.

While it might feel intrusive and your first instinct might be to ignore it, there are actually some practical reasons lenders are doing this. And more importantly, how you respond can affect your credit limits, your credit score, and even your future borrowing power.

With that said, heres the smartest way to respond to these requests.

Why lenders are asking now

Clark Howard makes the point that with job changes, layoffs, and inflation still affecting household budgets, lenders are trying to reassess how risky of a borrower you are.

Credit card companies, in particular, want to know whether your current income still supports the credit limits theyve extended to you.

In other words, if they dont have updated information, they very well could assume the worst.

Soshould you respond?

First of all, you are not legally required to update your income when asked.

But according to Howard, its important to understand that ignoring it can have consequences.

If your income has stayed the same or increased, updating is usually a smart move. This will reassure the lender that you can still handle your available credit and lowers the chance theyll cut your limit or close your account.

If your income has dropped, its more complicated. Sharing a lower number could trigger a credit line reduction at a time when you might need the flexibility.

In that case, you may choose to skip a voluntary update. But keep in mind that the lender could eventually require you to update your information to keep your account open.

What can happen if you dont update

Lenders will sometimes take action when they feel theyre being left in the dark.

This can include doing the following:

• Lower credit limits This reduces your spending power and can raise your credit utilization ratio, which may hurt your credit score.
• Account closures Losing an older account can shorten your credit history and negatively affect your score.
• Strained lender relationship A closed or restricted account could make it harder to get a loan or new card from that bank later.

The potential upside of updating

But if your income has improved, Howard points out that there can be some great benefits:

• Higher credit limits A larger limit (if you dont overspend) can help your credit score by lowering your utilization percentage.
• Better card offers You may qualify for cards or perks aimed at higher-income customers.

The smart steps to take

If you havent received an income update request recently, its simply a matter of time before you do.

When you do get it, heres how to handle it safely:

• Confirm its legitimate. Log in directly through your banks official website or app instead of clicking email links.
• Be honest. Providing false income information on a credit account can be considered fraud.
• Include all eligible income. That can mean salary, self-employment income, retirement income, Social Security, and investment distributions.
• Keep debt in check. High balances make lenders more nervous. Paying down credit card balances can reduce the odds of a limit cut.
• Monitor your credit reports. If a lender lowers a limit or closes an account, youll want to track how it affects your credit profile and score.

Tariffs, inventory shortages, and shifting consumer habits are reshaping how shoppers spend on the retail giants platform.

• Tariffs are starting to drive up prices on Amazon, according to CEO Andy Jassy.

• Shoppers are already shifting toward cheaper brands and bargain hunting.

• Amazon says its working to keep costs down, but consumers may feel the pinch in the coming months.

Amazons CEO has delivered a candid message to shoppers: dont expect prices to stay as low as theyve been.

In a recent interview at the World Economic Forum in Davos, Switzerland, Amazon CEO Andy Jassy said that the effects of U.S. tariff policy particularly tariffs imposed last year under the Trump administration are finally showing up in the prices you see on the site.

Whats changed?

In the interview with CNBC, Jassy said that Amazon and many of the millions of third-party sellers who list goods on its marketplace worked to plan ahead in preparation of the impact of the tariffs. He explained that theystockpiled products ahead of the tariff increases in 2025, which served as a buffer, and allowed merchants to sell items without having to raise prices for shoppers.

However, those supplies have largely run out, and new inventory now carries the full tariff burden. This means thatsellers are facing a tough choice: Do they absorb the added cost in the hopes of driving demand? Do they pass it off to shoppers? A mix of both?

"We have so many itemswe have hundreds of millions of itemsand we two million sellers, many of whom are willing to pursue different strategies in how they price," Jassy said in the interview. "Amazon consumers, overall, have fared well, but well have to see what happens in 2026."

Higher prices on the horizon?

Because the pre-tariff planning strategies have run out, Jassy said it's not unlikely for consumers to start seeing price hikes on items across Amazon's marketplace.

"Were trying to work with our distribution partners andselling partners to try to keep prices as low as possible for consumers," he said in the interview. "That is our focus and it has alwaysbeen our focus, but especially in times with uncertain economiesor changes in tradeour priority is to try to figure out how to keep prices as low as possible."

Jassy explained that because of the low profit margin associated with retail, there aren't many ways for sellers to absorb the added costs associated with tariffs, andultimately, there aren't "endless options."

Is this affecting consumer behavior?

The short answer: yes and now.

Jassy said that consumers are "resilient," as they continue to shop. However, their choices when shopping have been different.

"I think that wherever they can, [consumers] are trying to trade downin price," Jassy said in the interview. They're looking for bargains wherever they can find [them]."

One of the biggest changes Jassy has seen:hesitancy aroundhigher-price discretionaryitems."

What this means for you

Heres what consumers should know as these shifts unfold:

• Expect higher prices on some items. With tariffs increasingly reflected in costs, especially on imported goods like electronics and apparel, its realistic to see price tags increase on things you buy regularly.

• Look for deals and generic options. If full-price name brands become less attractive, opting for no-name or budget alternatives can stretch your budget further.

• Dont panic over every item but watch trends. Amazon is trying to hold prices down where possible, and not all products will jump in cost. But overall retail pricing pressure through 2026 is something many shoppers will feel.

The lawsuit alleges that the mortgage company pressured buyers into higher-cost loans

• Homebuyers file class-action lawsuit against Rocket Mortgage alleging illegal steering practices

• Plaintiffs say Rockets referral network pushed buyers into costly loans and inflated home prices

• Case claims violations of federal consumer protections and could impact borrowers going back to 2019

A new class-action lawsuit has been filed against Rocket Mortgage and related companies.

The suit alleges that the mortgage company engaged in illegal practices that steered homebuyers into loans that werent in their best interests and ultimately cost them more money. This consumer-focused legal challenge, brought by plaintiffs from across the country, takes aim at practices that critics say inflated home prices and limited borrowers options.

Everyday families rely on the laws governing our nations real estate market for fairness and transparency, and we believe Rocket has failed to play by the rules, Steve W. Berman, managing partner and co-founder of the consumer-protection law firm Hagens Berman, said in a news release.

We believe at least hundreds of thousands of consumers have been duped by Rockets tricks, and judging by its year-over-year revenue, its scheme has worked.

Details of the suit

The lawsuit, filed on January 26, in the U.S. District Court for the Eastern District of Michigan, centers on Rockets referral network. The suit is examining the ways that real estate agents were funneled leads and then allegedly expected to push clients toward Rocket Mortgages financing even when other lenders might offer better terms.

According to the complaint, Rocket Homes operated a widespread referral system (until it acquired Redfin in 2025) that required participating agents to pay a hefty percentage fee to Rocket. In exchange, those agents were encouraged plaintiffs say pressured to steer buyers into Rockets mortgage products instead of shopping around.

The plaintiffs argue this practice violated federal consumer protection laws, including the Real Estate Settlement Procedures Act (RESPA), which prohibits kickbacks or other incentives that interfere with a homebuyers ability to make an informed decision. They claim Rockets network effectively limited competition, resulting in borrowers receiving loans with higher rates and fewer cost-saving opportunities.

The lawsuit seeks various forms of relief, from damages to court-ordered changes in how Rocket and its affiliates operate.

Consumer advocates and attorneys say this case is part of a broader trend of scrutiny on real estate and mortgage industry referral networks, following other major lawsuits alleging inflated costs and lack of transparency.

What this means for homebuyers

Heres what consumers should know and consider:

• Understand all your loan options. Dont just go with the first mortgage offer you get compare rates, terms, fees and the total cost of borrowing from different lenders before signing anything.

• Ask hard questions. If an agent or lender is steering you toward a particular product, ask why and whether youd financially benefit from exploring alternatives.

• Know your rights. Federal laws like RESPA exist to protect borrowers from hidden incentives that could steer your decisions and lawsuits like this aim to enforce those protections.

If you bought a home and used Rocket Mortgage or Quicken Loans to finance at any time since Jan. 1, 2019, find out more about your rights here.