Consumer News: take a toll on victims’ finances, emotional health and careers

But at current home prices, affordability remains a challenge

By Mark Huffman of ConsumerAffairs

• Mortgage rates fell for a second straight week, with the average 30-year fixed rate declining to 7.24%.

• The pullback offers modest savings, but borrowing costs remain more than a percentage point above a year ago.

• Mortgage applications increased, although homebuying and refinancing activity continued to trail last year.

Mortgage rates moved lower again this week, giving prospective homebuyers a small break as October comes to an end.

The average rate on a 30-year fixed-rate mortgage fell to 7.24% from 7.32% the previous week, according to Freddie Macs October 29 report. The average 15-year fixed rate also declined, slipping to 6.60% from 6.68%.

The decline marked the second consecutive weekly improvement. The 30-year rate has now fallen 0.16 percentage points from the 7.40% recorded earlier this month, reaching Octobers lowest level.

Freddie Mac Chief Economist Sam Khater said the decline modestly improved purchasing power for prospective buyers.

Much higher rates year-over-year

Even so, buyers face substantially higher borrowing costs than they did last fall. A year ago, the average 30-year rate was 6.17%, while the 15-year rate averaged 5.41%. Freddie Macs survey focuses on conventional home purchase loans for borrowers with excellent credit and a 20% down payment; individual offers will vary.

For someone borrowing $400,000 over 30 years, this weeks average rate translates into a monthly principal-and-interest payment of approximately $2,726. That is about $22 less than at last weeks rate and $44 less than at the early-October rate.

Compared with the same loan at last years 6.17% rate, however, the monthly payment would be about $284 higher. Those calculations exclude property taxes, homeowners insurance, and any mortgage insurance.

Mortgage applications edged up

The latest application figures suggest some borrowers responded to easing rates. The Mortgage Bankers Association (MBA) reported that total mortgage applications increased 3.4% on a seasonally adjusted basis during the week ending October 23. Purchase applications rose 4%, while refinance applications increased 3%.

The weekly gains came against a weak comparison with last year. Purchase applications remained 18% below their year-earlier level, and refinancing applications were down 61%.

MBA Deputy Chief Economist Joel Kan said elevated rates have caused many buyers to postpone purchases, while homeowners with existing low-rate loans have little incentive to refinance. Adjustable-rate mortgages accounted for 11.3% of applications, the highest share in more than a year, as some borrowers sought lower initial payments.

For buyers, the recent decline improves the numbers slightly. But with the average 30-year rate still above 7%, the cost of financing a home remains a significant obstacle.

A bipartisan bill proposes advertiser checks and stronger consumer protections

By Mark Huffman of ConsumerAffairs

• The SAFE Platforms Act would require online platforms to verify advertisers, strengthen privacy settings and make suspected easier to report.

• The bill would let consumers sue over violations and give federal and state officials enforcement authority.

• Introduced by Democrat Valerie Foushee and Republican James Moylan, the proposal remains in a House committee and has not received a floor vote.

The number of on social media grows day by day, costing Americans billions of dollars.

Online platforms would face new responsibilities for preventing fraud under legislation introduced by Rep. Valerie Foushee, D-N.C., and Guam Republican Delegate James Moylan.

The Stopping Abuse and Fraud Enabled by Platforms Act, or SAFE Platforms Act, would require companies to build fraud prevention into their services and face potential liability when they help facilitate . Foushees office says the legislation aims to protect consumers, particularly seniors and other vulnerable groups.

What consumers would see

The legislation would require covered platforms to verify advertisers and disclose their legal names, where they are based and how long they have maintained an account. Advertisers promoting higher-risk products and services including investments, health products, housing, gambling and cryptocurrency would face additional verification.

Platforms would also have to provide a visible Report Scam button on advertising or promotional content, adopt stronger default privacy settings, and take steps to prevent fraudulent profiles and repeat offenders from returning under new accounts.

Advertising would face clearer labeling and accessibility requirements, including minimum font sizes for important information. A single setting that weakens all default privacy protections at once would be prohibited.

The bill generally covers services hosting third-party information that have at least 100,000 monthly active users or annual gross revenue exceeding $25 million. Services primarily providing internet access, email or data storage would be exempt.

Its liability provisions target conduct beyond offering neutral tools, including promoting content a platform knows or has reason to know is fraudulent. It would not require screening every post before publication.

Enforcement and consumer lawsuits

The Federal Trade Commission would enforce the requirements. State attorneys general could seek compensation for residents, and injured consumers could sue for damages. Courts could increase awards for knowing or willful violations.

Section 230 protections would not block enforcement. However, a safe harbor would protect platforms from the bills material-contribution prohibition if they meet specified standards, including reviewing reported content within 48 hours and initiating appropriate steps within seven days, subject to exceptions.

Where the bill stands

H.R. 10433 was introduced September 16, 2026, and referred to the House Energy and Commerce Committee. As of October 29, the available legislative record lists no subsequent action or floor vote. It has not become law.

With victimizing so many Americans, you might think the bill would have dozens of sponsors from both parties. It doesnt. Its bipartisan backing currently consists of Foushee as sponsor and Moylan as the sole listed cosponsor. That establishes support across party lines, but does not demonstrate broad congressional backing or enough votes for passage.

Outside Congress, supporters include the Consumer Federation of America, Hispanic Federation, Oregon Consumer Justice and Public Citizen. Those endorsements provide advocacy support, but the legislation still must advance through Congress and receive presidential approval before its protections take effect.

Housing and medical bills drive spending, putting pressure on retirement security

By Mark Huffman of ConsumerAffairs

• Family caregivers spend an average of $11,508 a year out of pocket, up 59% from 2021, according to AARP.

• Caregiving expenses consume an average of 31% of household income, with lower-income families facing substantially greater pressure.

• The financial burden extends to careers and retirement, as caregivers adjust work schedules and draw on savings to support loved ones.

Caring for an adult relative or friend is taking a growing financial toll on American families, with caregivers spending an average of $11,508 annually from their own pockets, according to a new AARP study.

That amounts to about $959 a month for expenses associated with helping a loved one on top of caregivers own financial obligations. Nearly nine in 10 caregivers report incurring expenses.

The findings, released Oct. 28, show average annual spending increased by $4,266 from the $7,242 reported in AARPs 2021 study. However, AARP cautions that the comparison reflects more than rising prices. The earlier survey occurred during the pandemic, when access to services differed, and the latest questionnaire included additional expense questions and expanded descriptions.

Basic necessities account for most spending

Housing and household expenses represent the largest share of caregivers costs: 42%, averaging $4,797 annually. Those expenses include food, rent, mortgage payments and property taxes.

Medical expenses account for another 29%, averaging $3,313 a year. Insurance premiums, copayments, coinsurance and direct payments to providers make up the largest portion of that category.

Together, household and medical expenses account for 71% of caregivers spending.

The strain is particularly severe for households earning less than $40,000 annually. Caregivers in that group devote an average of 76% of household income to caregiving, according to the study.

More complex care needs also bring higher costs. Those caring for someone with Alzheimers disease or another form of dementia spend an average of $15,846 annually, compared with $10,221 among caregivers supporting someone without dementia.

Work and retirement also take a hit

The financial consequences reach beyond the bills caregivers pay.

Among working caregivers, 65% experienced at least one work disruption associated with caregiving, including changing hours, taking time off or taking on additional work.

Caregivers who retired earlier than planned because of their responsibilities reported average annual expenses of $18,940 64% above the overall average.

AARP is advocating financial relief through caregiver tax credits, expanded home care options and paid leave. It also supports the proposed bipartisan Lowering Costs for Caregivers Act, which would allow eligible caregivers to use tax-free health savings or flexible spending account funds for a parents or parent-in-laws qualified medical expenses.

The study included 2,538 adult caregivers recruited through Ipsos KnowledgePanel. Participants completed an initial survey and a one-week expense diary in June and July 2026, with results weighted to Census Bureau benchmarks.

Heres how to tell if your identity was used in the scheme

By Mark Huffman of ConsumerAffairs

• Federal authorities charged five people in Operation Ghostbusters, a nationwide investigation into alleged fraud involving fake college students.

• Prosecutors say scammers used stolen identities to obtain student aid, then routed the money through U.S. bank accounts to overseas accomplices.

• Investigators seized more than $750,000 in cryptocurrency, and the investigation now spans more than 40 cases.

The eve of Halloween seems like a good time to bring up the subject of ghosts in this case ghost students applying for college financial aid, using stolen American identities, and never setting foot on a college campus.

The Justice Department this week announced the first charges from Operation Ghostbusters, a nationwide crackdown on alleged schemes that turned stolen identities into fake college

enrollments and federal student aid payments.

Five defendants face charges in Virginia, New Jersey and Nebraska. Authorities say the cases involve approximately $2.9 million in alleged fraud and represent an early stage of a much wider investigation.

How the alleged scam worked

According to authorities, fraudsters used Americans stolen personal information to submit the Free Application for Federal Student Aid, known as FAFSA, and enroll fictitious ghost students in colleges.

The goal was to collect grants and loans without a legitimate student pursuing an education. Once schools disbursed aid refunds, U.S.-based intermediaries commonly called money mules received the payments and forwarded proceeds overseas, prosecutors allege.

Artificial intelligence helped some perpetrators maintain the illusion of an active student, Assistant Attorney General Colin McDonald said at the announcement. Scammers used AI to fill out applications and complete coursework, and some created the appearance of a student participating in an online classroom.

That apparent participation helped keep the aid flowing, even though the person whose identity appeared on the application was not attending.

A New Jersey case illustrates the alleged money trail. Investigators say three defendants received hundreds of federal aid deposits over several years. One allegedly collected more than $1 million linked to more than 300 fraudulent student accounts.

Much of the money then went to accounts belonging to alleged accomplices in Kenya associated with a safari company, according to the criminal complaint.

How investigators tracked it

The investigation began with a referral from the Education Departments inspector general to the FBIs Richmond office. Investigators used financial and student aid data to identify participants and refer leads nationwide.

Working with Kenyan authorities, investigators seized more than $750,000 from a cryptocurrency account linked to the alleged fraud. They also identified 830,840 potentially fraudulent Federal Student Aid IDs and recommended disabling them.

The FBI said it has identified more than $32 million in losses in similar schemes, with additional losses suspected. Officials believe the broader fraud could reach hundreds of millions of dollars.

For identity theft victims, the first warning may be a college enrollment or student aid record they never authorized. DOJ urged suspected victims to report the matter through the Education Department.

Was your identity stolen?

Americans can check their federal student aid records and credit reports for signs of this fraudeven if they never attended college. Checking both matters because a credit report alone would not reveal a fraudulent grant.

Here are the steps:

1. Review records at StudentAid.gov. Sign in and examine your loans, grants, FAFSA activity and enrollment history. Look for unfamiliar schools, applications or payments. If you cannot access your accountor discover your Social Security number is attached to an account you did not createcontact Federal Student Aid at 1-800-433-3243. An account problem warrants investigation but does not by itself prove identity theft.

1. Check all three credit reports. Get free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com. Look for student loans and other accounts you never opened. Free reports are available weekly.

If something appears suspicious:

• Contact Federal Student Aid, the schools financial aid office and any loan servicer involved. Explain that you suspect identity theft, ask for an investigation and request the procedure for disputing unauthorized loans or correcting fraudulent aid records. Save statements, screenshots, correspondence and case numbers. Education Department guidance specifically advises notifying Federal Student Aid and the servicer.

• Report the suspected fraud to the Education Departments inspector general through its hotline complaint form. DOJ specifically directs potential Operation Ghostbusters victims there.

• File an identity theft report at IdentityTheft.gov. The FTC provides a recovery plan and documentation to help dispute fraudulent accounts.

• Freeze your credit with each of the three credit bureaus. Freezes are free and help prevent additional credit accounts from being opened. Also secure your StudentAid.gov account with a new, unique password and review its contact information and two-step verification methods.

Consumers should not wait for a collection notice. DOJ says the FBI has mailed letters to many identified victims. Anyone concerned about whether a letter is authentic can verify it directly with their local FBI field office.