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These mortgage lenders got good reviews in 2024

Mortgage lenders aren't ranking very well compared to other industries

By Dieter Holger of ConsumerAffairs

October 15, 2024

Mortgage lenders havework to do when it comes to their customer reviews.

Mortgage lenders are averaging a customer satisfaction score of 75 out of 100, which puts them on the lower end of industires and tied with energy utilities, gas stationsand hospitals, according to the American Customer Satisifaction Index's first ranking ofmortgage lenders.

Mortgage originations peaked at $4.51 trillionin 2021 anddropped to $1.5 trillion in 2023 after rates went up.

Even with mortgage rates declining after the Fed slashed rates, many prospective homebuyers are waiting on better deals before they decide to go with a lender.

"In this challenging environment, mortgage lenders overall are finding it difficult to maintain high levels of customer satisfaction," ACSI said.

Still, some lenders got much better reviews.

Lenders with fewer complaints tended to have higher reviews and more satisfied customers: There was a 12-point gap in satisfaction between customers who reported registering a complaint (66) versus those that didn't (78).

Rocket Mortgage had the top score at 80, followed by Chase with 78, while PennyMac had the lowest score of 70, followed by Freedom Mortgage with 72.

Tue, 15 Oct 2024 14:07:04 +0000

Life insurance too complicated, survey finds

Younger consumers are particularly wary of complex terms and reluctant to buy

By James R. Hood of ConsumerAffairs

October 14, 2024

Life insurance companies are trying to get younger people to buy their products, but they're having trouble because their communication is too complicated, a J.D. Power study finds.

The problem

Confusing policies: Most people don't fully understand their life insurance policies.
Jargon and long documents: Companies use too many technical terms and long, boring documents.
Not meeting needs: Many people feel their life insurance policy doesn't fit their needs.

What younger customers want

Simple explanations: They want things explained in plain language, with guides and diagrams.
Easy-to-read statements: They want statements that are clear and concise.
Personalized communication: They want companies to understand their needs and communicate with them in a way that makes sense.

What companies need to do

Simplify their communication: Use clear language, visuals, and videos to explain things.
Tailor communication to individual needs: Make sure customers understand their policies and how they meet their needs.
Make it easier to do business: Simplify processes and make it easy for customers to get the information they need.

This study shows that life insurance companies need to update their communication style to attract and keep younger customers.

More about the life insurance study

According to the J.D. Power 2024 U.S. Individual Life Insurance Study, insurers still have a lot of work to do, with the majority of customers indicating their insurer makes things unnecessarily complicateda problem that is particularly acute among the youngest generation of customers.

Life insurers are facing new communication challenges as they court younger consumers, saidBreanne Armstrong, director of insurance intelligence at J.D. Power. Currently, only 29% of life insurance customers strongly agree that their insurer makes complex policies simpler, and Gen Z has the lowest incidence of saying their agent or advisor explains things in terms they can easily understand.

"The old model of text-heavy binders and jargon-filled informational packets will no longer cut it. Younger customers are looking for simpler guides, diagrams and easy-to-understand definitions when evaluating policies, Armstrong said.

State Farmranks highest among individual life insurance providers for a fifth consecutive year, with a score of 699.Guardian Life(685) ranks second andMassMutual(673) ranks third.

For more information about the U.S. Individual Life Insurance Study, visithttps://www.jdpower.com/business/healthcare/us-individual-life-insurance-study.

Mon, 14 Oct 2024 17:26:44 +0000

Gasoline prices keep falling in 2024. Here's why

The U.S. has been the world's biggest producer of oil since 2018

By Dieter Holger of ConsumerAffairs

October 11, 2024

Americans are seeing better prices at the pump and oil production is expected to soon reach new heights.

Gasoline prices fell 4.1% in Septemberfrom the previous month, marking the fifth straightmonthly decline since April when prices likely peaked in 2024,according to the latest Consumer Price Index released Thursday, the government's bellweather measure of inflation.

The average weekly price of regular gasoline declinedto around $3.03 at the pump as of Oct. 7, which is the lowest price sinceFebruary and a nearly 14% decrease from around a year ago,according to the U.S. Energy Information Administration.

Broader fuel oils, including disel, marine fuels and more, also fell 6% in September from the previous month, according to the CPI.

Why are gasoline prices falling in 2024?

This year's earlierdecline in gas prices is in part because of weaker-than-usualdemand during 2024'ssummer season, ABC News reports, andenergy experts say pricescould fall below $3 a gallon in 2024, which would be the first time since March 2021.

Meanwhile, oil production is heating up and could keep prices low in 2025.

U.S. crude oil production is projected to reach a reach a record-high average of 13.5 million barrels a day in 2025, the EIA said.

The U.S. has been the world's top producer of crude oil since 2018and accounted for nearly 13% of the world's production in 2023, according to the EIA.

The agency recently revised down its projected price for crude oil to $78 a barrel from $85in 2025 largely due to lower global demand growth.

Still, the EIA said uncertainty around conflicts in the Middle East could raise gasoline prices at the pump.

"Although we reduced our crude oil price forecast, crude oil prices have risen in recent days because of escalating conflict in the Middle East, raising the possibility of oil supply disruptions and further crude oil price increases," the EIA said.

Fri, 11 Oct 2024 00:12:58 +0000

Student loan borrowers got tricked by Ejudicate. Now it's banned from arbitration

Firm had hidden conflicts of interest, regulators charged

By Dieter Holger of ConsumerAffairs

October 10, 2024

A regulatorhas banned Ejudicate from providing arbitration for financial products because it deceived student loan borrowers about its neutrality and held rigged arbitration proceedings.

Ejudicate ran bogus arbitration proceedings, deceived borrowers, and hid its financial conflicts of interest, Consumer Financial Protection Bureau ChiefRohit Chopra said.

In April 2022, Ejudicate, which runs an online dispute resolution platform,started arbitration proceedings against student loan borrowers who allegedly defaulted on loans from Prehired, a company that offered vocational training and "income share" loans that regulators shut down due to its deceptive debt-collection practices,the CFPBsaid Thursday.

The CFPB said Ejudicate lied about being a neutral arbitrator when it was getting money from Prehired, attempted to bind borrowers with terms in rigged proceedings and started arbitration without consent.

The CFPB also fined Ejudicate only $1 because the company is unable to pay more.

Thu, 10 Oct 2024 20:05:10 +0000

Banks and social media: Not a good mix, regulators warn

How to look for clues that somethings not quite right

By Gary Guthrie of ConsumerAffairs

October 9, 2024

If youve been to a bank, lately, youve noticed it looks a lot like a ghost town. Yes, its always nice to see a friendly face who knows your name and is happy to help you with a question about your account, but its not 1970 any more and interpersonal service at banks has given away to our modern digital world.

However, the Federal Deposit Insurance Corporation (FDIC) says that one digital realm where bank customers need to watch their every move is social media.

Banks have taken a shine to social media and are increasingly encouraging interactions on social media to align with the preferences and behaviors of the Next Generation (NextGen) consumers.

Social media platforms offer banks a way to connect with customers in a more personal and engaging manner. Nothing bad there, right?

Itallows banksto provide personalized insights, financial advice, etc., and some consumers are more likely to engage with brands through social media and apps, which presents banks with an opportunity to meet their needs through technology-driven financial solutions. Again, nothing bad there.

However, social media platforms are not inherently secure for sharing sensitive financial information. Consumers may risk exposing personal data if they discuss account details or financial transactions publicly or through unsecured channels.

The FDIC lays out its concerns

Quicker answers and finding out about new deals and products aside, banking regulations including those from the FDIC apply to activities on social media. These regulations prohibit false advertising, misrepresentations of deposit insurance coverageand the misuse of the FDICs name or logo.

Another concern is that consumers need to keep in mind that posts (for the most part) are public and can be seen by others. That means you shouldn't post any personal details, account info, or anything confidential -- especiallyyour Social Security number.

Reputable social media sites will not ask you for your Social Security number, credit card or debit card numbers, or your bank account passwords, the FDIC said.

When you need to provide the bank with specific information like your account number or balance, good options include calling the bank directly or using a secure communication channel such as the bank's online or mobile banking platform.

And then, there are scammers

The third leg of the FDICs concern list are scammers. Above everything else, you should be careful about sharing things online that a scammer could use to pretend to be you.

Even info that seems harmless, like your pet's name or your old school, could be helpful to an identity thief. This kind of information is sometimes used for those security questions banks ask to verify your identity so avoid posting it publicly.

Think twice before sharing your birthday on social media too, depending on who might see it. Heres how to change that on Facebook and Instagram.

Also, be aware of "cookies" those little bits of info websites send to your browser. They can be used for things like remembering your login info, but also for other purposes. You can usually adjust your browser settings to control cookies or limit how your information is shared. AllAboutCookies provides a step-by-step guide for doing this on whatever browser you use.

Last but not least, double-check where you're getting your social media info from. Clicking a link might take you to a totally different company's page with its own set of rules.

Social media: Dont bank on it

Some banks allow you to access your online banking through social media. That might seem convenient, but the FDIC has separate concerns about that.

Make sure you are on a secure page and on the banks legitimate site before you enter your username, account number, or password. Look for clues that might indicate that the site is fraudulent, such as misspellings, a low number of likes in a profile, or grammatical errors in the web content, the agency said.

If only a few consumers are subscribed to a social media page that supposedly belongs to a very large bank, that could be an indication that the page you are on is not the banks official page. You should also look for a padlock symbol on your web browser. If you have any doubts, go directly to your banks website instead of linking to it from a social media site.

Additional resources you might find helpful include:

FDIC,Know Your Risk Protect Your Money

FDIC Consumer News,Scammers and Fake Banks

FDIC Consumer News,Banking With Third Party Apps

Digital Literacy,Information Literacy.gov

Securities & Exchange Commission (SEC),5 Ways Fraudsters May Lure Victims Into Scams Involving Crypto Asset Securities Investor Alert

Commodities & Futures Trading Commission (CFTC),Customer Advisory: Avoid Forex, Precious Metals, and Digital Asset Romance Scams

Consumer Financial Protection Bureau (CFPB),Can a debt collector contact me through social media?

Wed, 09 Oct 2024 11:28:16 +0000

About Consumernewsline - Consumernewsline

These mortgage lenders got good reviews in 2024

Mortgage lenders aren't ranking very well compared to other industries

Life insurance too complicated, survey finds

Younger consumers are particularly wary of complex terms and reluctant to buy

The problem

What younger customers want

What companies need to do

More about the life insurance study

Gasoline prices keep falling in 2024. Here's why

The U.S. has been the world's biggest producer of oil since 2018

Why are gasoline prices falling in 2024?

Student loan borrowers got tricked by Ejudicate. Now it's banned from arbitration

Firm had hidden conflicts of interest, regulators charged

Banks and social media: Not a good mix, regulators warn

How to look for clues that somethings not quite right

The FDIC lays out its concerns

And then, there are scammers

Social media: Dont bank on it

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