Kentucky's rural Appalachian households are grappling with financial stress which is disproportionate compared to households in other rural parts of the country.

A report from the Consumer Financial Protection Bureau said medical, credit card, and student loan debt -- combined with household incomes significantly lower than the national average -- create a perfect storm for hardship.

Shawn Sebastian, senior fellow at the Consumer Financial Protection Bureau, said it creates financial challenges for a large percentage of the population.

"That's a quarter of people in rural Appalachian Kentucky who are dealing with medical debt collections," Sebastian pointed out. "And we know that when people have medical debt collections, it has a cascading effect on their household finances in general."

The report noted people who owe money on past-due medical bills have more than double the rates of delinquency on mortgages, car loans, credit cards and student loans, compared to those without medical debt.

Last year, the nation's major credit-reporting agencies said they would stop including paid medical debt on consumer credit reports. And beginning next year, most unpaid medical debt will no longer be reported, either.

Sebastian explained residents of Appalachia and elsewhere could even see their credit score get a boost in January.

"The three major credit reporting agencies agreed to remove about 70% of medical debt from people's credit reports," Sebastian emphasized. "That's primarily medical debt that has been paid, or medical debt that is $500 or less."

And while fewer Appalachians have an open student loan compared to the rest of the nation, Sebastian added student debt is crushing the household finances of many families.

"When you take a ratio of how much student debt is owed, divided by income, nationwide, that percentage is 32%," Sebastian reported. "In rural Appalachian Kentucky, that percentage is 47%. That's the student loan burden."

He added Biden's $10,000 student loan forgiveness plan, now in limbo, could help relieve Kentuckians' student debt burden.

The U.S. Supreme Court will hear arguments in lawsuits against the federal student-debt relief plan early next year. Last month, President Joe Biden extended the pause on student loan repayment, interest and collections until June of next year.

Air travelers could face fewer obstacles in securing a refund if their flight is canceled or changed under new federal rules announced Wednesday.

The moves are being praised by watchdog groups. The Department of Transportation said airlines are now required to promptly provide passengers with automatic cash refunds when they are owed one.

Teresa Murray, consumer watchdog director for the U.S. Public Interest Research Group, said some carriers have not adhered to standards, leaving passengers in a bind.

"They would drag their feet, and they would say, 'Well, you bought your ticket from a ticket agent, so we don't know where your money is. Or, here, have a voucher,'" Murray explained.

Amid higher complaint volumes, companies will be forced to act quickly. The new rules, which are being phased in, provide clearer definitions for travel disruptions, including delays of at least three hours on a domestic flight and six hours on international flights. A key industry group responded to the announcement by touting transparency efforts among carriers.

Murray acknowledged most people are not frequent flyers, and it is hard for them to keep up on all the least practices and policies among airlines.

"The average person only flies once every 18 months," Murray pointed out. "This will just bring transparency to that process and it kind of evens the playing field."

Murray added it could come in handy for Midwestern customers when a winter storm wreaks havoc on air travel. The new rules also require refunds for baggage fees when a piece of luggage is delayed by 12 hours or more for domestic flights. And there must be upfront disclosure on fees for first and second checked bags and carry-on bags.


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Wisconsin lawmakers recently debated reforms for payday loans. Efforts to protect consumers come amid new research about financial pain associated with cash advances offered through smartphone apps. The Center for Responsible Lending is out with findings that detail how "earned wage advances" from digital platforms come with extra costs disguised as things like tips. Traditional payday lenders are often criticized for charging excessive interest rates on loans that are usually around $500.

Lucia Constantine, a researcher with the Center for Responsible Lending, said customers are usually seeking smaller amounts from the apps, but she warns they can be just as costly.

"They are trapping consumers in a cycle of borrowing that is similar to that of a payday loan, " she said.

The report said after using these financial products, customers are seeing overdrafts on their checking accounts increase by 56% on average. Industry leaders deny they're barraging consumers with hidden fees, stressing that features such as suggested tips are optional. More broadly, a bipartisan payday loan reform bill in the Wisconsin Legislature failed to advance this month.

Constantine said like longstanding payday lenders, these cash advance apps can be hard to regulate. Meanwhile, she urged those in a bind to explore other options.

"[They should] try talking to their friends and family as a first source. The other option which I would recommend is reaching out to their credit union or banking institution to see if they can get some sort of small-dollar loan," she said.

She noted places such as credit unions typically provide more transparency on loan costs. According to the report, three-quarters of consumers took out at least one advance on the same day or day after a re-payment was posted.


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Food prices remain high, in Montana and across the country.

A new report by the Federal Trade Commission says the country's largest grocery companies are gouging consumers, by keeping prices artificially high.

Many grocers, retailers and wholesalers have consolidated to cut costs. Grocers continue to blame supply chain problems, even though regulators have said most of those issues have been resolved.

President of the advocacy group Farm Action, Angela Huffman, said retailers were doing more than making up for lost revenue during the pandemic-era supply chain disruptions - and the FTC report says they continue to do so.

"In 2021, the retailer revenues, they rose to more than 6% higher than their total costs, and that those profits are still going up," said Huffman. "So, in the first nine months of 2023, the profits increased to 7%."

At nearly 6.5%, Montana had the nation's ninth-highest grocery price increase in 2023.

The FTC data show Amazon, Kroger and WalMart each gained market share during and after the pandemic - while profits continued to rise.

Other large retailers and wholesalers have consolidated, which they say gives them more buying power and the ability to pass those savings on to customers.

Huffman said that isn't what's happening, and calls on regulators to fine the grocers, or more.

"This would be kind of the farthest extent of what they could do, but go so far as breaking them up," said Huffman. "In years past, they broke up the telephone companies and the railroads and, you know, that would be the ideal outcome for us, is to take away their excessive power."

Huffman also points to a 150% increase in egg prices in 2023, which producers blamed on the avian flu. The FTC says the disease did not justify the drastic price hike.