COPY, PASTE, LEGISLATE

Used car dealers didn’t want to fix deadly defects, so they wrote a law to avoid it
By Rui Kaneya with Pratheek Rebala, Center for Public Integrity

Carlos Solis never knew he was driving with a “shrapnel bomb” inside his steering wheel.

The 35-year-old father of two was waiting to make a left turn on a suburban road outside Houston when another car struck the front end of his Honda Accord, triggering its airbags.
Instead of protecting Solis, the defective airbags shot a piece of metal into his neck and severed his carotid artery, killing him within minutes.

Solis knew nothing about the danger: A used-car dealer sold him the car without fixing the airbags or warning him that Honda had recalled the vehicle three years earlier, according to a lawsuit filed by his family.

By the time Solis was killed in 2015, similar accidents were piling up nationwide amid an unprecedented series of recalls for an array of dangerous defects – from shrapnel-flinging airbags to ignition switches that shut off engines.

For auto dealers, the string of accidents was a warning sign of what was to come: a barrage of lawsuits filed against them for selling recalled used cars without fixing them first.

Auto dealers came up with a plan to preempt the problem.

They crafted what’s known as “model legislation” that would allow them to continue selling recalled used cars, so long as they disclosed open recalls to customers somewhere in a stack of sales documents. They then turned to their army of lobbyists – more than 600 on call in 43 states – to help get the measure passed, one state at a time.

The effort is paying off.  (read the rest here)

The success of auto dealers’ effort is a case study in how special interest groups with deep pockets go from state to state with model legislation – copy-and-paste measures that can be handed to friendly lawmakers in any state – to get the policies they want, often with little public scrutiny and sometimes with tragic consequences.

During a two-year investigation, the Center for Public Integrity, USA TODAY and the Arizona Republic found thousands of similar pieces of legislation and retraced a number of them to their root. Many were written by corporations or special interest groups that stood to benefit directly. Some are pitched as public-service measures.

SIDEBAR: This story was produced as part of a collaboration between USA TODAY, the Arizona Republic and the Center for Public Integrity. More than 30 reporters across the country were involved in the two-year investigation, which identified copycat bills in every state. The team used a unique data-analysis engine built on hundreds of cloud computers to compare millions of words of legislation provided by LegiScan.In the past five years, versions of auto dealers’ copycat bill have been introduced in at least 11 states – California, Illinois, Maryland, Massachusetts, Missouri, New Jersey, New York, Oregon, Pennsylvania, Tennessee and Virginia. So far only Tennessee and Pennsylvania have adopted them, but Massachusetts, Missouri, New Jersey and New York still have measures under consideration.

• "I Am Not Invisible Exhibit"Oregon | Commemoration/Acknowledgement
  N/A or not disclosed
  Female
  
• Anti-Discrimination Law (Military Status and Spouses of Deploying Veterans)Oregon | Anti-Discrimination Law/Policy (Vet Status)
  N/A or not disclosed
  State National Guard/Reserve, Active Duty, Dependents
  
• College Credit for Military TrainingOregon | Educational Credit/Diploma
  N/A or not disclosed
  All Veterans, State National Guard/Reserve, Active Duty
  
• Direct Professional Licensing for Military ExperienceOregon | License/Certification
  N/A or not disclosed
  All Veterans, State National Guard/Reserve, Active Duty
  
• Employment ProtectionOregon | (Re-)Employment Protection
  N/A or not disclosed
  State National Guard/Reserve
  
• Federal Pension Income Tax Subtraction for Military RetireesOregon | Income Tax
  N/A or not disclosed
  Retired
  
• Free Camping at State Parks for Disabled Veterans and Active DutyOregon | Park/Camping/Lodging Admissions
  No fee
  Disabled (Service-Connected), State National Guard/Reserve, Active Duty
  
• Free Fishing and Hunting Licenses for Disabled War VeteransOregon | Fishing/Hunting License
  No fee
  Disabled (Service-Connected), Served in Combat
  
• Free Parking at State Parks for Disabled Veterans and Active DutyOregon | Toll/Travel Fare/Parking Discount
  No fee
  Disabled (Service-Connected), State National Guard/Reserve, Active Duty
  
• In-State Tuition for VeteransOregon | Tuition-Rate
  Discount Equivalent to In-State/Resident Rate
  All Veterans, Killed/Died (Service-Connected), Survivors
  
• Income Tax Deduction for Active Duty Pay Earned Inside of StateOregon | Income Tax
  Up to $6,000 deduction
  State National Guard/Reserve, Active Duty
  
• Income Tax Exemption for Active Duty Pay Earned Outside of StateOregon | Income Tax
  No income tax
  Active Duty
  
• Military and Veteran License PlatesOregon | Vehicle License Plates
  N/A or not disclosed
  All Veterans, 100% Disabled, Purple Heart, Killed/Died (Service-Connected), Served in Combat
  
• ODVA Home Loan ProgramOregon | Loan/Financing
  N/A or not disclosed
  Other than Dishonorable Discharge
  
• Oregon DVA Conservatorship ProgramOregon | Guardianship/Custodianship
  N/A or not disclosed
  Indigent/Unable to Care for Self
  
• Oregon DVA Conservatorship ProgramOregon | Legal Assistance
  N/A or not disclosed
  Indigent/Unable to Care for Self
  
• Oregon Service-Disabled Veteran CertificationOregon | Preferred Status (Business)
  N/A or not disclosed
  Disabled (Service-Connected)
  
• Oregon Veterans' Emergency AssistanceOregon | Emergency Relief
  N/A or not disclosed
  All Veterans, Low Income/Homeless vet/Hardship, Dependents
  
• Oregon Veterans' HomesOregon | Residential Housing
  N/A or not disclosed
  Honorable Discharge, Dependents
  
• Oregon Veterans' HomesOregon | Residential Housing
  N/A or not disclosed
  Honorable Discharge, Dependents
  
• Oregon Wounded Warrior Parking PlacardOregon | Toll/Travel Fare/Parking Discount
  No fee
  Disabled (Service-Connected)
  
• Property Tax Exemption for Disabled VeteransOregon | Property
  No property tax
  Disabled (Service-Connected), Other than Dishonorable Discharge, Survivors
  
• Resident Rate Hunting and Fishing Licenses for Active DutyOregon | Fishing/Hunting License
  Discount Equivalent to In-State/Resident Rate
  Active Duty
  
• State Council - Interstate Compact on Educational Opportunity for Military ChildrenOregon | Primary/Secondary School Assistance
  N/A or not disclosed
  State National Guard/Reserve, Active Duty, Dependents
  
• State Tuition Assistance for Oregon National GuardOregon | Scholarship/Tuition-Assistance
  100% covered
  State National Guard/Reserve
  
• Statewide Apprenticeships (BOLI)Oregon | Training/Apprenticeship
  N/A or not disclosed
  All Veterans
  
• Veteran Volunteer ProgramOregon | Benefits Counseling/Determinations
  N/A or not disclosed
  All Veterans
  
• Veteran's Day Off for All VeteransOregon | Commemoration/Acknowledgement
  N/A or not disclosed
  All Veterans
  
• Veterans Designation on Driver's LicenseOregon | Driver's License/ID - Designation
  N/A or not disclosed
  Other than Dishonorable Discharge
  
• Veterans PreferenceOregon | Preferred Status (Employment/Training)
  N/A or not disclosed
  Other than Dishonorable Discharge
  
• Voyager Tuition Assistance ProgramOregon | Scholarship/Tuition-Assistance
  To the "Last Dollar," or the difference between what federal aid programs cover and the actual cost of tuition
  State National Guard/Reserve
  
• Women Veterans CoordinatorOregon | Claims Assistance/Benefits Advocacy
  N/A or not disclosed
  Female
  
• WorkSource Oregon Priority for Veterans and SpousesOregon | Preferred Status (Employment/Training)
  N/A or not disclosed
  All Veterans, Dependents
  
• Troops to Teachers Grant Coordination OfficesOregon | Hiring Facilitation
  N/A or not disclosed
  Honorable Discharge, Active Duty
  
  

A mailer sent by defendants enticing consumers to attend a Nudge “preview event.

“These defendants presided over a sales process that started with empty promises of future wealth and ended with many consumers left in financial ruin,” said Andrew Smith, director of the FTC’s Bureau of Consumer Protection. “The lure of easy income is strong, but consumers should stop and evaluate the facts behind any money-making promise.”

Nudge began selling real estate training packages at least as early as 2012. In its complaint, the FTC alleges that Nudge’s revenues from late 2014 to late 2017 alone were more than $400 million.
According to the complaint, the scheme starts with advertisements featuring real estate television celebrities, including Scott Yancey from A&E’s “Flipping Vegas,” Doug Clark from Spike TV’s “Flip Men,” Drew Levin and Danny Perkins from HGTV’s “Renovate to Rent,” and Josh Altman from Bravo’s “Million Dollar Listing Los Angeles.” These advertisements, which promise celebrities’ insider tips on how to make money in real estate, allegedly have enticed thousands of consumers to attend free 90-minute seminars.
The FTC’s complaint charges that the free seminars are predominantly a sales pitch to spend more than $1,100 to attend a three-day workshop, where consumers will supposedly get access to a “system” for finding “lucrative” deals. Those promises also prove empty, as the three-day workshops largely consist of general information about real estate investing, misrepresentations about services offered by Nudge, and a sales pitch for “advanced training” that costs as much as $40,000, according to the complaint.
Until at least 2016, according to the complaint, the advanced training pitched by Nudge included access to so-called “Buying Summits” or “Investor Expos.” At these events, consumers were promised special access to properties at discounted prices for purchase. However, as alleged in the complaint, defendants typically sold or brokered the properties to consumers at inflated prices.
The complaint was filed by the FTC and Utah Division of Consumer Protection against Nudge, LLC and two of its affiliates, Response Marketing Group, LLC and BuyPD, LLC. The defendants also include five individuals who are principals or executives of one or more of those companies: Brandon B. Lewis; Ryan C. Poelman; Phillip W. Smith; Shawn L. Finnegan; and Clint R. Sanderson. The real estate celebrities featured in Nudge’s marketing are not named as defendants.
The complaint alleges the defendants violated the FTC Act and the FTC’s Telemarketing Sales Rule, as well as three Utah statutes: the Utah Consumer Sales Practices Act; the Business Opportunity Disclosure Act; and the Telephone Fraud Prevention Act.
The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the District of Utah.
NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).

October 31, 2019
by Amanda Koulousias
Staff Attorney, Division of Privacy and Identity Protection, FTC

Starting October 31, many members of the military will have access to a free tool to help spot identity theft. The nationwide credit reporting agencies – Equifax, Experian, and TransUnion – have confirmed that they will provide free electronic credit monitoring services to active duty servicemembers and National Guard members.

For details on how to sign up, go to the websites for each of the credit reporting agencies.

A credit monitoring service can alert you to mistakes or problems on your credit report that might be the result of identity theft. For example, it would tell you if there’s a new credit card or loan in your name. If you knew about that, great. But if you didn’t, that could be an early warning of identity theft.

Once you have the credit monitoring service, you will be notified by mobile app, email, or text of certain changes to your credit file. These can include changes of address, payments that are more than 30 days late, bankruptcy information, foreclosures, liens, and new accounts opened in your name.

If you find inaccurate or fraudulent information on your credit report, read Disputing Errors on Your Credit Report.

If you find signs of identity theft, visit Identitytheft.gov to get started on recovery.

Annual Medicare Enrollment Period has Arrived
Monday, 14 October 2019

EDITORIAL NOTE: This is so far from comprehensive as to be a joke but I hope it will give you an overview of the basics of Medicare and how they apply in the annual enrollment period.


Because this post is longer than usual, I've used bolding and lists to make it easier to navigate and get to the sections that interest you most.


* * *

It's that time again – Medicare Annual Open Enrollment begins tomorrow, 15 October, and lasts through 7 December. During this period of 54 days you can:


⏺ Switch from traditional Medicare to Medicare Advantage (MA)

⏺ Switch from Medicare Advantage to original Medicare

⏺ Select a different Medicare Advantage plan if you have one now

⏺ Enroll in a Part D prescription drug plan

⏺ Change to a different Part D plan if you already have one
If you are new or newish to Medicare, it can be daunting. Medicare is a massive program and I'm pretty sure that even people who are certified to help the rest of us figure it out don't know all of it.


In that regard, there is a short list of links at the bottom of this post for more detailed or personalized information.


Here are the various Medicare parts:


Part A: Part of traditional Medicare, it covers hospital and hospice care along with some skilled nursing services after a hospital stay. There is no premium for Part A.


Part B: Part of traditional Medicare, it covers doctor visits and certain outpatient services. The Part B premium is deducted from your monthly Social Security payment and will be about $144.30 in 2020, up from $135.50 in 2019. The exact amount has not been announced yet.


Parts A and B constitute traditional Medicare. You may choose any doctors who accept Medicare.


Part C: Medicare Advantage (MA), issued by private insurance companies, is required to include traditional Medicare Parts A and B (at the same premium as traditional Medicare) and often includes Part D along with limited coverage for vision and dental care, for example.


MA takes the place of traditional Medicare. (Some companies charge no premium.) You are restricted to their network doctors.


Part D: Helps pay for prescription drugs. Part D is private coverage for which you pay a separate monthly premium if you have traditional Medicare.


Medigap: Also called Medicare Supplemental, is private coverage that helps pay for what Medicare does not, such as co-payments, co-insurance and deductibles. Restrictions apply as to who can buy Medigap coverage and when.


MEDICARE AND YOU HANDBOOK
The Medicare and You Handbook has many explanations and answers. You can download an electronic copy online. There is a wide choice of editions: PDF, large-print PDF, ebook for your Kindle, iPad, etc. You can also telephone to have a CD audio version, a Braille version or the paper edition mailed to you.


The telephone number is 800.633.4227 or visit the webpage.


This booklet is well organized, clearly written and as easy to use as anything related to Medicare can be.


MY MEDICARE
The official Medicare website is at medicare.gov. Check the dropdown menus at the top of the page for many specific questions.


If you have not signed up for My Medicare which personalizes the Medicare website for you, you can do that on this page. It can help a lot.


When I signed in to My Medicare to check my Part D coverage a couple of days ago, all my current prescriptions were already listed for me – names, dosages, quantities for each refill, and frequency of refills. All of it was correct.


If any of my prescriptions had changed, this is were I could edit them or add and subtract drugs as needed.


In my state, there are 28 Part D plans available, most with a deductible. With just a mouse click, I could see details of each plan and select up to three-at-a-time to compare with one another and check that my drugs are still covered.


That's important. It can change from year to year and, of course, each company's formulary is unique to it.


A recent mailing from that plan advised me that if I wish to continue for 2020, I don't need to do anything. My plan will roll over to next year.


You can also check drug prices of plans at several pharmacies near you and at mail-order pharmacies.


It took me about two hours to work through all the information and make my choice. I use seven prescription drugs. If you have more, it will take longer but the interface makes it relatively easy with one caveat: the plan finder is newly updated and may contain some glitches.


The above applies only to Part D in connection with traditional Medicare. If you have Medicare Advantage or are switching to it, you're on your own. MA is a mystery to me but Medicare's MA Plan Finder works similarly to the Part D Plan Finder.


PERSONAL SUGGESTION NO. 1: If you do not use any prescription drugs, choose the least expensive plan. Since there is no way to predict what might go wrong and therefore what drugs you would need, nothing else makes sense.


When I was diagnosed with cancer and began using prescription drugs, there was one not covered by my plan. Fortunately, it was not too expensive but in the next enrollment period, I chose a Part D plan that covered all my drugs.


(Yes, it is a stupid idea to make people choose a plan when they don't know what they will need it for. Complain to your representatives in Congress.)


PERSONAL SUGGESTION NO. 2: I was prescribed a new inhaler this year. When I was told my part of the price, I nearly passed out – about $500 per month. I told the pharmacist that was out of the question and prepared to see what else the doctor could recommend.


But the pharmacist told me that drug companies will reduce the price considerably in many circumstances, that I would need a declaration signed by my physician and that they, the pharmacy, would take care of all the paperwork.
In less than a week, the drug company approved me and the price dropped to just over $100. So if the price is high, ask what can be done. Pharmacists are well informed and helpful.


WHAT'S NEW IN MEDICARE FOR 2020

Medicare Advantage may now cover such items grab bars, rides to and from medical appointments, acupuncture, massage therapy and more. They are offered at the plan's discretion and only for certain health conditions. This applies only to Medicare Advantage and not to traditional Medicare.

At last, the Medicare Part D doughnut hole (coverage gap) goes away completely in 2020. However, the new limit for out-of-pocket expenses increases from $5100 in 2019 to $6,350 in 2020. Part D plan members will now pay 25 percent of the cost of generic and brand name drugs. Once you have reached that $6,350 threshold, you pay five percent of a drug's cost.

WHERE TO FIND PERSONALIZED MEDICARE HELP
You can get personalized help as you ponder your open enrollment decisions.


MEDICARE

Medicare.gov has an online chat feature available during open enrollment, and the Medicare hotline, 800-MEDICARE (800-633-4227), is open 24 hours a day, seven days a week during the annual enrollment period.


SHIP (State Healthcare Insurance Assistance Program)

These state-based organizations offer help with Medicare questions, including your benefits, coverage, premiums, deductibles, and coinsurance along with help for joining or leaving a Medicare Advantage Plan, any other Medicare health plan, or Medicare Prescription Drug Plan (Part D).

Locate a SHIP representative in your state here.

Another SHIP list by state from Seniors Resource Guide. This list is up to date as of October 2019.

by Bridget Small
Consumer Education Specialist, Federal Trade Commission

To everyone who hangs up on unwanted calls, learns about the latest scams, and checks with friends about suspicious offers: good news!

People who did all those things were less likely to lose money to a scam than people who didn’t, according to Exposed to Scams: What Separates Victims from Non-Victims?, a report from the FINRA Investor Education Foundation, the BBB Institute for Marketplace Trust, and the Stanford Center on Longevity. The groups surveyed more than 1,400 people who had reported a scam and found several differences between people who did and didn’t lose money.

The people who avoided scams:

• 1) Didn’t engage with a scam offer. Nearly half the people surveyed said they had ignored emails, thrown away mailers, and deleted friend requests. They had also hung up on bogus tax and debt collection calls, and imposter phishing scams.
• 2) Learned about scams and scammers’ tactics. People who knew more about specific scams and scammers’ tactics were more likely to reject an offer and avoid losing money. News stories were the top way to get information about frauds and scams for the majority of people surveyed.
• 3) Talked to someone. The people who had someone to talk with about the offers were less likely to lose money. Some people who were caught up in scams were helped by store cashiers, bank tellers, or wire transfer employees who talked them out of sending money. Sometimes sharing what you know can help protect someone you know from a scam.