Consumer News: Customer service AI bots not ready for prime time, survey suggests

Its a response to the growing number of using the messaging platform

By Mark Huffman of ConsumerAffairs

• WhatsApp is testing an optional Scam Alert that uses on-device machine learning to identify suspicious messages from unknown senders.

• Potential will trigger a private warning, but WhatsApp will neither block the message nor automatically report the conversation.

• The limited beta cannot detect every threat, particularly sent through a known contacts compromised account.

WhatsApp is testing a new feature designed to warn users when a message from an unknown sender appears to be part of a scam.

The optional feature, called Scam Alert, downloads a machine-learning model to the users device. It analyzes incoming messages from people outside the recipients contacts, looking for linguistic signals and conversational patterns associated with that have been previously reported by WhatsApp users.

When the system identifies a potentially fraudulent message, it displays a warning banner inside the chat. The alert is visible only to the recipient, preventing the suspected scammer from knowing that the message has been flagged.

Users can then block the sender, report the conversation, continue chatting or mark the sender as trusted. Choosing the last option removes the warning and stops the feature from flagging that particular conversation again.

Privacy protection

Scam Alert does not automatically block messages or report their senders. Classification takes place locally on the users device, an approach intended to add protection without requiring WhatsApp to examine private conversations on its servers.

The feature is aimed at involving impersonation, fake job or sales offers, investment fraud, romance schemes, malicious links, and fraudulent payment requests. Such schemes may begin on Facebook, Instagram, or another public platform before the criminal moves the target to a private WhatsApp conversation.

Scam Alert nevertheless has a significant limitation: it focuses on messages from unknown senders. A scam delivered through a friends or relatives compromised account may therefore escape detection because the sender is already listed in the victims contacts.

What to watch out for

Users should remain cautious about unexpected links and requests to transfer money, scan QR codes, or connect new devices even when a message appears to come from someone they know. WhatsApp users can also enable two-step verification and review the devices connected to their accounts under Settings > Linked devices.

The feature is undergoing a limited beta rollout and is being tested with researchers in Metas bug-bounty community. WhatsApp has not announced when it will become broadly available.

But affordability remains strained

By Mark Huffman of ConsumerAffairs

• The average 30-year fixed mortgage rate slipped to 6.67% this week, its first decline in six weeks, but remained above 6.58% a year earlier.

• High borrowing costs and record prices pushed existing-home sales down 1.7% in July, while first-time buyers continued to lose ground.

• Buyers are gaining negotiating power in some markets as listings and price reductions increase, but affordability remains the central obstacle.

Mortgage rates edge lower, but housing market remains stuck in an affordability squeeze

The average U.S. mortgage rate declined slightly this week, offering prospective homebuyers a measure of relief but little immediate escape from the affordability pressures weighing on the housing market.

The average rate on a 30-year fixed mortgage fell to 6.67% as of Aug. 13, down from 6.69% the previous week, according to Freddie Macs Primary Mortgage Market Survey. It was the first weekly decline in six weeks, although the rate remained higher than the 6.58% average recorded a year ago.

The average 15-year fixed rate also fell, to 5.96% from 6.01%. A year earlier, it averaged 5.71%.

Better than a year ago

Freddie Mac said housing affordability had improved from a year ago and noted that recent increases in purchase and refinancing applications showed borrowers responding to even modest changes in rates. Mortgage applications rose 3.6% in the first week of August, including a 3% increase in purchase applications and a 5% rise in refinancing demand, according to Mortgage Bankers Association data.

Still, the latest decline is too small to change the financial equation substantially for most households. A buyer borrowing $400,000 at 6.67% would face a monthly principal-and-interest payment of about $2,574. That excludes property taxes, insurance, homeowners association fees and other ownership expenses.

Rates also remain far above the exceptionally low levels available during the pandemic. Many current homeowners have mortgages below 4%, creating a lock-in effect that discourages them from selling and taking out a new, substantially more expensive loan.

Expensive combination

The combination of elevated rates and high prices is keeping the market unusually sluggish. Sales of previously occupied homes declined 1.7% in July to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors. Sales were nevertheless 0.7% higher than a year earlier.

The national median existing-home price rose 2% from a year ago to $434,100, setting a record for July. The market had 1.54 million unsold homes at the end of the month, equivalent to a 4.6-month supply at the current sales pace.

First-time buyers accounted for just 29% of July transactions, well below their historical share of roughly 40%. That group is especially sensitive to rates because its members generally have less home equity or sale proceeds to apply toward a down payment. The share of all-cash buyers and older homeowners in the market can further disadvantage younger, mortgage-dependent shoppers.

Sellers face more pressure

The result is a market that is loosening without becoming more affordable. Sellers are facing more pressure to adjust expectations, particularly in regions where supply has recovered, but prices have not fallen enough to offset financing costs.

The median U.S. listing price was $428,950 in July, down 2.4% from a year earlier, according to Realtor.coms monthly housing report. Active listings increased 2.1%, while 20% of homes on the market had received a price cut. Inventory, however, was still 11.6% below typical 20172019 levels.

Conditions vary sharply by region. July listing prices were down 3.9% in the West and 2.5% in the South, while prices edged 0.2% higher in the Midwest. More than 30% of listings in Portland and Denver had price reductions, compared with fewer than 10% in Hartford and New York City.

That divergence means buyers in some Sun Belt and Western markets may have room to negotiate over price, repairs or closing costs. Buyers in parts of the Northeast and Midwest, where inventory remains comparatively tight, can still face competition for desirable properties.

The outlook depends heavily on inflation and the bond market. Mortgage rates do not move directly with the Federal Reserves benchmark rate; they tend to track the 10-year Treasury yield and investors expectations for inflation and economic growth. Recent easing in Treasury yields helped mortgage rates retreat this week.

Industry expert says insurance has become one of families biggest expenses

By Mark Huffman of ConsumerAffairs

• Auto insurance has become a major household expense, with recent increases potentially equaling four or five months of groceries for some low-income families.

• Insurify projects premiums will rise in 32 states in 2026, with increases ranging from roughly 4% to 15%.

• More expensive repairs, tariffs and persistently severe accidents are keeping pressureon rates, making location and comparison shopping increasingly important.

Car insurance premiums are climbing again in much of the country, adding another affordability challenge for households already grappling with elevated food, housing and transportation costs.

Insurify founder and co-CEO Snejina Zacharia said the cumulative increase in insurance costs has been steep enough to turn coverage into one of the largest expenses facing some families.

For a family with a low budget, it could be four to five months of groceries, Zacharia said in an interview with Yahoo Finance.

Insurify expects drivers in 32 states to encounter higher premiums during 2026. Depending on the state, Zacharia said the increases could range from about 4% or 5% to as much as 15%.

The companys latest analysis found that the national average cost of full-coverage insurance reached $2,237 a year in June. It projects that figure will rise to $2,242 by the end of 2026, representing a 1% increase for the year.

That modest national change, however, masks much larger differences from one state to another. Connecticut is projected to finish the year with premiums up nearly 15%, while Kentucky and West Virginia could experience increases of about 8%, according to Insurifys report.

Why premiums remain under pressure

Zacharia pointed to the severity of accidents and the resulting insurance claims as a central reason rates remain high.

Accident severity surged after the COVID-19 pandemic, she said. Although insurers and analysts initially expected that development to be temporary, claims have remained expensive.

Insurers respond to those costs by seeking permission to raise premiums in individual states. The size of an increase can depend on an insurers loss ratio the amount it spends on claims compared with the premiums it collects.

Repair costs are adding to the problem. Modern vehicles contain increasingly expensive technology, including cameras, sensors and driver-assistance systems that can make even seemingly minor damage costly to repair. Tariffs can put additional pressure on the price of imported vehicles and replacement parts.

Insurify reported that vehicle maintenance and repair costs have risen 45% over the past five years, more than three times the broader inflation rate during that period. Bodily injury and collision claims have also become substantially more expensive since 2020.

Where consumers live matters

A drivers ZIP code can have a major effect on premiums because insurers consider local accident rates, crime, weather risks, repair expenses and other factors when setting prices.

Zacharia said consumers sometimes rush to arrange auto or homeowners insurance without fully investigating how location will affect their premiums. That can be especially costly for homebuyers, who may discover that insurance expenses in a new area are 20%, 30% or even 40% higher than expected.

The same risk applies when buying or insuring a vehicle. Two consumers with similar driving records may receive very different quotes simply because they live in different communities.

The growing burden is also influencing voters. In the Yahoo Finance interview, the host cited an Insurify finding that about one-third of drivers said auto insurance costs would play a role in how they vote.

Although elected officials dont directly set most premiums, state regulators review insurers rate filings, while state laws can influence required coverage, litigation costs and the factors companies are permitted to use when pricing policies.

Charitable donations up to $1,000 per taxpayer are now deductible

By Mark Huffman of ConsumerAffairs

• A new federal tax provision will allow non-itemizers to deduct up to $1,000 in qualifying cash donations, or $2,000 for married couples filing jointly, beginning in 2026.

• Donors must keep a bank record or written receipt for every cash gift, while contributions of $250 or more require a detailed acknowledgment from the charity.

• Taxpayersnot charitable organizationsare responsible for ensuring donation records satisfy IRS requirements before filing.

A federal tax break for charitable giving will return in 2026, allowing millions of Americans who claim the standard deduction to receive a tax benefit for qualifying cash donationsbut only if they keep the proper records.

Single filers will be permitted to deduct up to $1,000 in eligible cash contributions, while married couples filing jointly may deduct as much as $2,000, according to Samuel Handwerger, an accounting lecturer at the University of Marylands Robert H. Smith School of Business.

The above-the-line deduction could apply to roughly 90% of taxpayers, many of whom have had little reason to retain charitable receipts since the standard deduction was substantially increased under the 2017 tax law.

Although the deduction is changing, the documentation rules are not. Handwerger said the restored benefit remains subject to the substantiation requirements of Section 170 of the Internal Revenue Code.

Youll need these records

Every cash donation requires either a bank recordsuch as a canceled check or credit card statementor a written record from the charity identifying the organization, donation date and amount.

For individual contributions of $250 or more, taxpayers must obtain a written acknowledgment from the charity by the time they file their return. The document must also state whether the donor received any goods or services in exchange, such as a meal, event ticket or merchandise, and give their value when applicable.

That language can be decisive even when there is no dispute that a donation was genuine.

In the 2012 case Durden v. Commissioner, David and Veronica Durden claimed more than $25,000 in donations to their church. Although they retained canceled checks and received a letter listing their gifts, the IRS disallowed more than $22,000 because the acknowledgment failed to say whether the church had provided anything in return.

The church later issued a corrected letter, but the Tax Court rejected it because the document was obtained after the relevant filing deadline and was therefore not contemporaneous.

The donor bears the responsibility

The case illustrates an often-overlooked aspect of charitable deductions: the donor bears responsibility for obtaining a compliant acknowledgment. If a receipt is incomplete, taxpayers should ask the charity for a corrected version before submitting their return.

Handwerger advised donors to rebuild the recordkeeping habits that may have faded during the years when most households received no tax benefit from charitable contributions.

The product was distributed in 12 states and online

By Mark Huffman of ConsumerAffairs

• Omas Pride is recalling 639 six-pound bags of frozen raw Woof Complete Canine Chicken Recipe after the product was found to contain Salmonella.

• The recall covers only lot BB012729, with a manufacturing date of Jan. 27, 2026, and a best-by date of Jan. 27, 2029.

• Consumers should stop feeding the product immediately, dispose of it safely and contact the company for a refund.

Omas Pride has recalled one lot of its frozen raw dog food because of Salmonella contamination, a health risk that can affect both pets eating the food and people handling it.

The Avon, Connecticut-based company is recalling 639 six-pound bags of Woof Complete Canine Chicken Recipe, according to an announcement posted by the U.S. Food and Drug Administration.

The recall applies specifically to:

• Product: Woof Complete Canine Chicken Recipe

• Package size: 6 pounds

• Lot number: BB012729

• Item/SKU: F-WOOFC-6

• UPC: 8 7938400145 9

• Manufacturing date: Jan. 27, 2026

• Best-by date: Jan. 27, 2029

Sold in 11 states

Each stand-up pouch contains 12 individually wrapped, eight-ounce vacuum-sealed portions. The product was distributed frozen to retail and wholesale customers in Arizona, California, Indiana, Kentucky, Louisiana, Maryland, New Jersey, Nevada, New York, Pennsylvania and Virginia. It was also shipped directly to consumers through online orders.

No other Omas Pride products, package sizes or lots are included in the recall, the company said. The FDA notice did not specify whether any illnesses had been reported in connection with the recalled food.

Salmonella can cause illness in dogs that consume contaminated food. Symptoms in pets may include lethargy, diarrhea or bloody diarrhea, fever, vomiting, reduced appetite and abdominal pain. Some infected animals may appear healthy but can still carry the bacteria and spread it to people or other animals.

What to do

Pet owners should contact a veterinarian if an animal ate the recalled food and subsequently developed symptoms.

People can be exposed by handling contaminated pet food or touching bowls, utensils, storage containers and other surfaces that came into contact with it. Human symptoms can include nausea, vomiting, diarrhea or bloody diarrhea, abdominal cramps and fever.

In uncommon cases, Salmonella infection can lead to more serious conditions, including arterial infections, endocarditis, arthritis, muscle pain, eye irritation and urinary tract symptoms. Anyone who develops symptoms after contact with the product should consult a healthcare provider.

Consumers should stop feeding the recalled food immediately and dispose of it where children, pets and wildlife cannot reach it. The product should not be sold or donated.

The company also advised customers to wash and sanitize pet bowls, cups, storage containers and any utensils or surfaces that may have touched the food. Hands should be washed thoroughly after handling the product or cleaning contaminated items.

Consumers may contact Omas Pride for a refund by calling 1-800-678-OMAS between 8 a.m. and 5 p.m. Eastern time, Monday through Friday, or by emailing hello@omaspride.com.

Omas Pride said it is investigating the contamination and conducting the voluntary recall in coordination with the FDA.