RALEIGH, N. C. – If you're one of the thousands of North Carolinians with student loans, you now have one less level of protection if your loan-service providers turn out to be unscrupulous.

The U.S. Department of Education, led by Secretary Betsy DeVos, has issued an interpretation of the law that state student-loan servicing laws are preempted by federal law.

At the same time, the Department of Education has stopped sharing information on student loans with the Consumer Financial Protection Bureau, and the bureau has said it will no longer enforce laws.

According to Charlene Crowell, deputy communications director at the Center for Responsible Lending, it adds up to a bad situation for consumers.

"North Carolina is one of the most troubled states in the nation when it comes to student-loan complaints. It's a horrible situation to be in," Crowell said. "The Consumer Financial Protection Bureau was created to be the consumer's financial cop on the block."

Nationwide, there are 44 million Americans with a student-loan debt of $1.5 trillion. In the last five years, more than 50,000 complaints had been filed with the CFPB. North Carolina is one of 11 states with complaint numbers that grew more than 100 percent between 2016 and 2017.

North Carolina Attorney General Josh Stein has said one of his top priorities is cracking down on fraudulent student-loan relief groups, but Crowell pointed out his hands are now tied.

"For consumers, here's the deal: If the Education Department is not going to work with CFPB to resolve student-loan complaints, and CFPB is not interested in aggressive consumer enforcement, why try to tie the hands of states who are only trying to protect their own residents?" she asked.

Crowell added that among those hardest hit by the change in interpretation of the law are people of color, because wealth disparities often lead them to seek high numbers of student loans.

Reporting by North Carolina News Connection in association with Media in the Public Interest and funded in part by the Park Foundation.



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Buying a used car can be a risky proposition, but a new consumer guide can help people avoid common pitfalls.

The nonprofit Oregon Consumer Justice just released the first edition of its free resource, called the Consumer Confidence Comics. The unique guide doubles as an interactive comic book with coloring pages.

Michelle Luedtke, communications director for Oregon Consumer Justice, describes it as a fun way to learn how to ask the right questions.

"When you get promises from a dealer, where do you capture those to make sure that they'll be part of your final contract?" Luedtke asked. "We have a checklist of different questions to ask at a dealer about purchasing a used car. You can also download as a resource on our website."

The guide is available in English and Spanish.

Used car prices shot up during the pandemic but have come down a bit in the last year, with the average used car selling for about $31,000, according to iseecars.com.

Luedtke also recommended taking the time to read the fine print on any contracts. The guide goes through the process from start to finish.

"Whether or not you should be looking for financing beforehand, or what dealer financing looks like? What are scams that are common around purchasing a vehicle," Luedtke outlined. "And then also, what to do if things go wrong."

In Oregon, used car dealers have 14 days to finalize the financing, so you could drive it off the lot and then have to return it if the loan falls through. Consumers are advised not to make any changes to the car until they get a welcome letter from their lender.

In 2022, Americans purchased about 39 million used vehicles.

The federal SNAP program allows nearly 1.3 million Ohio families to put food on the table -- but increasingly, when many recipients attempt to use their card at a store, they are told they do not have enough funds.

At grocery and convenience stores across the state, fraudsters are installing illegal skimming devices capable of reading cards as they are swiped and using the card data to steal money.

Alisha Love, an EBT card user, said she has been a victim of EBT theft more than once. She believes the state and federal government should invest in chip security for SNAP to better protect people relying on the program.

"I haven't even gotten reimbursed for the first one, and I'm working with Legal Aid right now," Love pointed out. "My kids need money to eat. Right now I am using cash, and it is bleeding me dry from all the finances."

The Ohio benefits office recommends SNAP recipients change their pin number immediately after they suspect being scammed and replace their EBT card by calling 1-866-386-3071.

This year, 44 states have reported more than 160,000 cases of fraudulent EBT card transactions.

Phaleys Lopez, an EBT card user, said being scammed prevented her from being able to buy formula for her infant son.

"I always buy the formula for my son with the EBT," Lopez explained. "That specific Gerber, I can only buy it with the EBT or cash. I ask the father of my son to buy some when I can't."

Hope Lane-Gavin, director of nutrition policy and programs for the Ohio Association of Foodbanks, said victims of EBT card skimming typically have no choice but to turn to food banks to feed their families, and pantries are already struggling to keep up with demand.

"These are people who have applied, have followed the rules, have been approved for the benefit, who then got their card and are doing everything normal," Lane-Gavin emphasized. "Everything that they're supposed to do."

EBT card users who suspect they've been scammed can request replacement benefits within 90 days from the date they were stolen, by either mailing or hand-delivering a signed Job and Family Services form to a local county Job and Family Service office. Gavin added a temporary fix allowing victims of EBT theft to receive replacement benefits will expire on Sept. 30, without additional action by Congress.

An Arizona consumer group is applauding the U.S. Department of Energy's new residential water heater standards that they say will save American households about $7.6 billion per year on energy and water bills.

That's over $200 per month on the average residential utility bill.

Diane Brown is the executive director of the Arizona PIRG Education Fund and said the finalized standards will shift most new electric tank models to heat pump water heaters, something she calls a more efficient technology.

"Appliances that are more efficient enable Arizonans to continue to utilize the appliances they are familiar with," said Brown, "but using less energy at a lower cost."

The DOE last updated residential water heater efficiency standards in 2010.

Compliance of the new standards will start in 2029 and will result in over 50% of new electric storage water heaters to utilize heat pump technology, compared to today's 3%.

Brown added that the move will also help cut energy waste and harmful carbon pollution.

Brown encouraged Arizonans who are wanting to save money and energy to go to energy.gov/save - to learn more about tax credits and rebates when upgrading the way you heat, cool and power your home, as well as have access to other energy saving tips.

"Federal legislation, including the Inflation Reduction Act," said Brown, "have helped households in Arizona and across the country save money on everyday purchases, from electric vehicles to heat pump water heaters."

The amended standard represents what the DOE is calling a "moderate increase in efficiency for gas-fired, oil fired and larger electric storage water heaters."

The DOE is still considering amended standards for gas-fired instantaneous water heaters.