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Author: Cory Santos

  • ‘Do not trust these big builders’: Florida’s booming housing industry is riddled with new builds that are falling apart — what buyers should know to protect themselves

    Purchasing an old fixer-upper can come with its fair share of risk, but that doesn’t exactly guarantee that a newly-built house won’t give you any headaches.

    A new study from Realtor.com shows that Florida is among the top states in the nation for volume of new builds, accounting for 11.8% of all new home construction permits in 2024. But as FOX 13 recently discovered, quantity doesn’t always beget quality.

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    For the past two years, FOX 13 has investigated claims of faulty home construction, uncovering alarming trends that prompted the Florida Attorney General’s Office to launch a formal investigation.

    Here’s why new builds can go so wrong, and how you can avoid falling victim to shoddy construction.

    Widespread issues with new builds

    New housing developments are exploding across Florida. If you search for new construction homes in the Greater Tampa Bay Area on sites like Zillow or Realtor, you’ll find thousands of new builds, many of which in massive developments like Victoria Lakes in Odessa.

    Starkey Ranch, a massive community development spanning 2,500 acres with over 5,000 homes, became a focal point of the construction investigations. Homes in Starkey Ranch were built by a number of different builders, including Taylor Morrison, which built 160 homes in the community. When construction was complete, at least half of the homes that Taylor Morrison had built needed some form of remediation.

    And the stories from homeowners living in these troublesome new builds are both shocking and heartbreaking. Niteeja Likhite, for example, discovered severe issues with leaking in her brand-new home.

    "One day I was in the kitchen, and it started pouring on top of my head, and I was like, where is this water coming from?" Likhite told FOX 13.

    Hillsborough County Commissioner Joshua Wostal, who is keeping a very close eye on the situation, also has a few horror stories to share.

    "I do have friends that were up there in Starkey Ranch and the mold was so bad that it started to crack their counters, and they were displaced," said Wostal.

    Eventually, Likhite learned the issue in her home was the result of an improperly installed shower pan. But when she contacted Taylor Morrison about moisture problems, the company’s customer experience manager provided the following response.

    “The pictures indicate a lack of homeowner maintenance, and Taylor Morrison is not responsible for this, whether reported within the warranty period or not.”

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    Resident frustrations bubbling over

    Likhite’s frustration is shared by many. During the course of the two-year investigation, FOX 13 spoke with many Florida homeowners who also encountered mold in their newly-built homes.

    Starkey Ranch homeowners even created a private Facebook group called “Taylor Morrison Mold of SR” with 53 members discussing mold, shower pan issues and a potential class action lawsuit.

    Brad Gatin, a mold assessment expert who conducted high-level testing in the Starkey Ranch community, was fairly blunt when sharing his thoughts with FOX 13.

    “Personally, from the results that came back, I wouldn’t want to have my family or to be exposed myself in a home like that,” Gatin said of the mold he encountered. Gatin also explained what he believes is the root cause.

    “It seems to be stemming from poor ventilation, and then that’s causing all the ductwork to sweat, and then that saturates the dry wall, and then you have mold growth occurring.”

    Regulatory challenges persist

    The FOX 13 investigation revealed significant oversight issues with construction in Florida.

    In Pasco County, the building department admitted that it couldn’t keep up with new builds during COVID and were allowing builders to use their own private inspectors — a practice that’s permitted by state law. The county has since updated its procedures to increase oversight, a move that came as a result of FOX 13’s investigation.

    But construction companies hiring their own inspectors may just be the tip of the iceberg when it comes to home-building issues in Florida. Dave Murray, a Tampa-based insurance attorney, told FOX 13 that he believes the penalties for shoddy construction work just aren’t significant enough.

    “Fines are not getting it done in the state of Florida,” said Murray. “When businesses make millions and billions of dollars a year, a fine is just something that they have to deal with.”

    Protecting yourself as a homebuyer

    Asked by reporters if Florida has a faulty home construction problem, structural engineer Tom Miller replied, “They do.” That’s because subcontractors don’t have an intimate knowledge of the code, and companies are failing to manage subcontractors adequately, according to Miller.

    “They’re relying upon unlicensed subs to do their work and not going back and checking it," said Miller.

    While Florida’s home construction process is a cause for concern, local homeowners aren’t left completely defenseless when facing construction nightmares. Homeowners can pursue breach of contract claims and leverage the Chapter 558 process, which requires contractors to be notified of defects and allowed to respond within 60 days.

    The Florida Attorney General’s Office also provides critical support, offering homeowners multiple channels to address construction defects. However, the state only allows a four-year window from the discovery of any defect to file a claim, as well as a seven-year deadline for filing claims.

    Here are a few other tips that potential homebuyers might want to exercise before purchasing a brand-new home :

    • Don’t take the builder’s word for it: Always hire an independent, professional inspector before purchasing a property.
    • Document everything: Take detailed photographs during the inspection, maintain comprehensive communication records with the builder and carefully note any potential issues that may arise.
    • Be vigilant: Look beyond surface-level appearances to check out all aspects of the new build.
    • Know your rights: Keep yourself updated on local, state and federal laws that apply to homebuilding.

    Since shoddy construction is not a problem that just affects those living in Florida, Likhite has some words of advice for anyone potentially buying a newly-built home.

    “My only message to them is do thorough inspections,” said Likhite. “Do not trust these big builders.”

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • This Ohio man’s wife fell sick on a cruise ship — it cost him $15K upfront for a jet, but hours went by until it arrived. By then it was too late. Here’s Royal Caribbean’s response

    If you’re planning to book a cruise vacation, you probably aren’t thinking about what would happen if you had a medical emergency at sea, but maybe you should.

    Mohammad Hamza from North Olmsted, Ohio, learned this lesson in the most devastating way possible when his wife, Julia, died after suffering heart attacks during their Royal Caribbean cruise to the Bahamas.

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    The couple had boarded the vessel for what should have been a relaxing getaway. However, on the second day of their trip, Julia began feeling nauseous and dizzy before collapsing on the floor. It was her first-ever heart attack.

    “The doctor immediately said she’s going to have another episode of cardiac arrest. She needs to be transported now,” Hamza shared with News 5 Cleveland.

    What happened next highlights a serious concern that many cruise passengers may not consider until it’s too late.

    Immediate assistance costs $15,000

    When Julia needed urgent medical assistance, Hamza claims he was asked to produce $15,000 — in cash.

    This, as you might imagine, left Hamza incredulous as he couldn’t understand why anyone on the ship would carry that amount of cash on them. After finally arranging payment with his credit card, Hamza said his wife’s evacuation was then repeatedly delayed.

    “Now, where’s the jet?" Hamza asked the medical team on the ship. "Coming in a half hour, coming in two hours, coming in three hours" is what he was reportedly told. Meanwhile, hours went by, and it was during this critical waiting period when Julia suffered a second heart attack.

    "She wanted to say something," Hamza recalled. "I told her to squeeze my hand. She squeezed my hand."

    According to Hamza, his wife experienced a third heart attack that proved to be fatal while on the transport boat headed for the medical jet. And while Royal Caribbean declined to speak with News 5 Cleveland, the company did provide a statement:

    "The safety and well-being of our guests is always a top priority. In Mrs. Hamza’s situation, the shipboard medical team responded quickly to her medical needs and worked continuously to stabilize her condition in preparation for her transport to a shoreside hospital. Our thoughts continue to be with Mr. Hamza during this difficult time."

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    How medical care works on international waters

    Jamie Barnett, president of the International Cruise Victims Association, wasn’t exactly surprised by Hamza’s story.

    "I thought, oh, no. Here’s another one," said Barnett, whose daughter needed emergency assistance during a cruise in 2005. A defibrillator reportedly took 30 minutes to arrive, and that delay had cost Barnett’s daughter her life.

    What a lot of travelers may not be aware of is that major cruise lines sail under the flags of different countries, known as "flags of convenience," which means American medical standards don’t often apply to international cruise ships.

    Emergency care in the U.S. is governed by the Emergency Medical Treatment and Labor Act, which requires hospitals to provide emergency care regardless of the patient’s ability to pay. However, this law does not apply in other countries or on international waters, where cruise ships operate.

    "And that’s one of the first and foremost things that I wish people knew," Barnett said.

    This jurisdictional issue creates a situation where American cruise passengers may not receive the same level of medical care they expect at home. And that, unfortunately, is something Barnett knows firsthand.

    How to protect yourself before setting sail

    If you’re planning a dream cruise vacation in the near future, there are several precautions that you may want to consider. Bill Coyle from KHM Travel Group in Brunswick, Ohio, shared some tips for cruise travelers with News 5 Cleveland:

    • Make sure you’re healthy enough for the trip.
    • Bring documentation about your medications and medical history.
    • Consider comprehensive travel insurance that explicitly covers emergency evacuation.

    Booking with a premium travel credit card can also be beneficial in expensive medical scenarios. Premium credit cards typically offer several medical protections when used to pay for travel, including cruises. These protections can include:

    • Emergency medical and dental coverage (typically $2,500-$10,000).
    • Emergency evacuation and transportation (typically $50,000-$100,000, with some cards offering unlimited coverage).
    • Travel accident insurance (typically $250,000-$1,000,000).

    However, these benefits may need to be approved by the card issuer’s administrator. Additionally, coverage may only apply when you’re at least 100 miles from home.

    Because of this, before you click "book now" on that cruise deal, take some time to understand exactly what medical resources will be available if there’s an emergency — and make sure you’re properly insured.

    What to read next

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Residents of this California community just voted to hike their own water bills by 300% — from $145 to $568

    Residents of this California community just voted to hike their own water bills by 300% — from $145 to $568

    Residents of the Diablo Grande community in Central California have seemingly made a deal with the devil: they’ve voted to increase their water bill by nearly $600 a month.

    But the alternative might have been worse worse.

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    Last week, the residents of this planned community faced an unenviable dilemma: approve a massive 300% water rate hike or allow authorities to shut off its water.

    The increase to $568 per month, from $145, took effect July 1 and is expected to appear on bills in late July, according to the Modesto Bee.

    Water shutoff narrowly avoided

    The rate hike comes as the Kern County Water Agency, located some 200 miles away, had threatened to stop water deliveries to the 600-home community if the financially troubled Western Hills district didn’t resume payments for an annual 8,000-acre-feet allocation.

    Diablo Grande (which translates to "Big Devil") was originally planned as a 10,000-home retirement resort and community in the early 90s. By 2008 financial woes led developers to file for bankruptcy. A new owner, World International LLC, purchased Diablo Grande for $20 million; however, the financial issues have persisted.

    A previous developer of Diablo Grande made the last payment for Kern water deliveries in 2019. Residents took over management of the water service in 2020, along with its mountain of debt, which has risen to over $13 million.

    Last week, Kern’s board took action to extend the deadline related to the potential water shutoff to Sept. 30. KCWA has indicated it would continue deliveries through December 31 if Western Hills could come up with money to make monthly payments.

    Few protests

    Despite the substantial rate increase, the district reported receiving only 14 valid protests during the Proposition 218 process — far less than the majority needed to block the rate hike.

    Despite that, residents remain skeptical of the price hike and wary of its impact on their finances. One resident who spoke at the meeting demanded monthly accounting of the district’s expenditures to show “where you spend every penny,” according to the Modesto Bee.

    Not all board members supported the full increase. Board member Mary Davies proposed a $450 monthly base rate, but her motion quickly died without a second.

    Still other board members expressed concern that a lower rate might not cover expenses, potentially forcing the district to initiate another Proposition 218 process to raise rates again.

    The increase to $568 was based on a rate study accounting for the district’s costs for operations and infrastructure.

    Renegotiation attempts

    Western Hills would like to renegotiate its 2000 contract with KCWA to reduce the annual allocation to an affordable 2,500 acre-feet, which officials say is necessary to complete the first phase of Diablo Grande’s development.

    By completing the first phase, Diablo Grande would have 2,200 homes, which district officials believe would be enough for self-supporting water service. However, it’s uncertain whether KCWA is willing to renegotiate the contract, under which about $13.5 million is currently owed.

    The water is conveyed in the California Aqueduct to Diablo Grande through exchange agreements involving state water contractors.

    Western Hills is also investigating an agreement with the Patterson Irrigation District to deliver river water to Diablo Grande’s treatment facilities through a 5,000-foot pipeline that would need to be constructed.

    Additionally, the district also approved items for testing water from a private well that could serve as a backup supply, as well as test well drilling on property at Western Hills’ two lift stations, which pump the California Aqueduct deliveries to Diablo Grande.

    Potential hardships for residents

    The district now faces the prospect that some homeowners may be unable or unwilling to pay $568 a month for water, including those on fixed incomes and owners of weekend homes.

    “We only have a certain income. That’s why we picked up here, because we could afford just that,” resident Lydia Stewart told ABC 10 reporters in the weeks leading up to the vote. “We didn’t expect this big lump sum to be dumped on us.”

    Board members stated that the rate will be adjusted downward once the crisis passes and an affordable water supply is secured. But just what happens if the community defaults again is unclear.

    The district stated that it will utilize the increased revenue to make monthly payments to KCWA for water deliveries and investigate the costs associated with securing an alternative water source beyond December 31.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘It is not safe’: These South Bend trailer park residents face a chilling choice in sweltering heat as they say park management has told them to remove their window A/C units or risk eviction

    If you’ve ever sweated through a Midwestern summer without decent cooling, you know it’s more than just uncomfortable — it can be downright dangerous.

    For folks at Countryside Village trailer park in South Bend, Indiana, this summer’s heat comes with an added challenge: remove your window A/C units or risk losing your home.

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    "They won’t tell you why they want us to take them out," one resident shared with WNDU. "We’ve got elderly people that live in here, sick people that live in here, and they could die."

    The situation has residents worried, with Indiana lawmakers scrambling to find legal remedies for those facing the potentially dangerous summer heat.

    Cooling crackdown comes at the worst time

    Since September, 2024, Countryside Village’s management has been crystal clear. "If you have window A/C units, you must remove them,” management stated in a letter sent to residents, according to WNDU. “After three violations, evictions can and will be filed."

    What makes this situation particularly tricky is that while many residents actually own their trailers, they pay lot rent fees to YES Communities, which owns Countryside Village as well as hundreds of other trailer parks throughout the country. YES Communities’s guidelines, which all residents must sign with their lease, explicitly state that window A/C units are not permitted.

    With South Bend summer highs historically averaging 83ºF in the month of July, residents could now face potentially hazardous indoor temperatures.

    “With my medical issues, no it is not safe,” said another Countryside Village resident. “I had a doctor’s appointment yesterday, and my doctor physically wrote me a doctor’s note that I have to have an A/C unit in my trailer.”

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    Residents bemoan unfair management rules

    Stephen Dempsey, who lives in Countryside Village, is one of the fortunate residents with central air, but he worries about his neighbors who aren’t as lucky.

    "I think they’re putting a lot of pressure on people unfairly, especially a lot of the longtime residents who are on fixed incomes,” said Dempsey. “They can’t afford to just go buy a whole brand-new air conditioner unit."

    And he’s not wrong — portable air conditioners (which are the most likely alternative to window A/C units) typically cost between $300 and $700 at major retailers like Home Depot and Lowes, with additional costs for proper venting and installation. For those on Social Security or receiving disability benefits, that’s no small expense.

    Dempsey also knows the dangers that a lack of air conditioning can have on elderly and infirm residents. "Especially for an older resident, anybody with any kind of health issues. It can be dangerous," said Dempsey.

    And he’s not exaggerating. According to the Centers for Disease Control, heat-related illnesses cause more than 700 deaths annually in the United States, with elderly people and those with chronic health conditions at the highest risk.

    YES Communities has not issued a statement on the situation at Countryside Village, despite WNDU’s multiple attempts to learn why it just started enforcing this long-standing ban. However, the situation at Countryside Village has stirred local politicians to step up for the trailer park residents.

    State Senator David Niezgodski has formally requested Attorney General Todd Rokita to investigate, calling the situation "not just a housing issue; it’s a public health emergency," according to the Indiana Senate Democrats website.

    What to do if you’re a renter in a similar situation

    If you’re facing something similar to the situation in Countryside Village, there are several steps you can take before removing A/C units that could be essential for your health and wellbeing:

    1. Check your lease for the exact policy details on window A/C units.
    2. Get medical documentation if heat affects your health and window A/C units are not permitted.
    3. Request accommodation in writing with management for health conditions that require A/C in your home.
    4. Contact local legal aid for assistance if management isn’t cooperative.
    5. Contact your local news outlet in the hopes of drawing attention to your situation, as the residents of Countryside Village had done.
    6. Report potential violations to your state attorney general.

    The Fair Housing Act protects individuals with disabilities, and extreme heat sensitivity related to certain medical conditions may qualify for reasonable accommodations.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Connecticut nurse, accused of taking $200 bribes for ‘unnecessary’ prescriptions, is among 300+ people indicted in $14B health care fraud case involving Russian criminals

    Ever wonder what a $200 cash bribe might get you at your doctor’s office?

    For certain patients of one Connecticut nurse, such a bribe apparently bought them prescriptions for medications they didn’t need — and for the nurse, it bought a one-way ticket to federal indictment.

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    Michele Rene Luzzi Muzyka, a 60-year-old advanced practice registered nurse in Cheshire, Connecticut, now finds herself caught in the Justice Department’s net following the largest health care fraud sweep in American history.

    Codenamed “Operation Gold Rush,” the nationwide crackdown identified a staggering $14.6 billion in fraudulent claims, resulting in charges against more than 300 defendants, according to WFSB.

    Muzyka part of a massive criminal enterprise

    The numbers tied to this case are truly staggering: 324 defendants — including 96 health care professionals — now face charges across 50 federal districts and 12 state Attorneys General Offices. Doctors, nurse practitioners and pharmacists are reportedly among the 96 health care professionals arrested.

    But while $14.6 billion was bilked from the health care system, authorities have so far managed to recover about $245 million in assets, ranging from cash to luxury vehicles.

    According to federal prosecutors, Muzyka’s alleged scheme was relatively straightforward — and brazenly illegal: patients would show up, hand over $200 in cash and walk out with prescriptions for controlled substances they couldn’t get through legal means.

    But what Muzyka didn’t know was that one of those “patients” was actually an undercover agent posing as a Medicaid beneficiary who paid Muzyka the $200 fee and received an illegal prescription.

    While Muzyka’s case is shocking on its own, it’s just one thread in a massive criminal operation that federal investigators have been unraveling.

    Muzyka’s arrest came as part of an investigation into a Russian criminal organization that had established elaborate health care fraud operations in Connecticut. This transnational crime syndicate allegedly purchased dozens of legitimate companies that already had Medicare billing privileges and used them to submit millions of dollars in fraudulent claims.

    This criminal organization also reportedly stole thousands of identities — particularly targeting vulnerable elderly and disabled Americans — and funneled millions overseas to China and Malaysia.

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    How health care fraud impacts all Americans

    When Medicare and Medicaid funds are fraudulently stolen, everyone in America — from individuals to businesses — are affected.

    “Don’t be fooled into thinking that health care fraud is a victimless crime,” states the National Health Care Anti-Fraud Association. “Fraudulent claims carry a very high price tag, both financially and in how they impact our perception of the integrity and value of our health care system.”

    Health care fraud causes tens of billions of dollars in Medicare and Medicaid losses each year, according to the FBI, and such losses can put increased pressure on these programs. This can translate into stricter coverage policies, higher premiums and reduced benefits for the millions of Americans who depend on these programs for their health care.

    The involvement of health care professionals in these schemes is particularly troubling. When providers like Muzyka illegally prioritize profit over patient care, it erodes the fundamental trust between health care providers and patients.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Canadian man livid after finding $35K in fraudulent charges from all over the world on his business card — and his bank says he’s on the hook. What to do to protect your accounts from fraud

    Your credit card can be a lifeline in tough financial times, but it can also turn into a nightmare in the blink of an eye.

    Just ask Andrew St. Hilaire, a small business owner who recently discovered his credit card had been compromised. The damage? A staggering $35,000 in unauthorized charges spanning multiple countries and continents — a spending spree that somehow bulldozed past his $23,000 credit limit.

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    “It was charges after charges for jewelry, perfume, pharmacy stuff, but big ticket items, and then they’d stop for a steak and dinner somewhere,” St. Hilaire shared with CityNews from his home in Winnipeg, Manitoba.

    But the real shock came when his bank, The Bank of Montreal (BMO), looked at this international shopping bonanza and determined that everything looked legitimate, refusing to classify the transactions as fraud despite the extremely unusual pattern of spending.

    Now St. Hilaire finds himself locked in a financial predicament that would make even the most seasoned accountant break into a cold sweat.

    Fraud claim gets denied

    It all began in January when St. Hilaire discovered the fraudulent shopping spree that racked up a $34,447 bill and overshot his credit limit by more than 50%. While BMO hasn’t explained why it approved $12,000 beyond Hilaire’s credit limit, this isn’t uncommon with business credit cards.

    Banks often allow transactions to exceed stated limits, especially for business accounts. When fraud occurs, multiple transactions can be processed simultaneously before the system flags suspicious activity, pushing the total well past the ceiling without triggering immediate blocks.

    When he contacted BMO, St. Hilaire was told his fraud claim was invalid and that he didn’t do enough to protect his card. BMO told St. Hilaire that it had sent a one-time passcode to his email for two-step verification, and that passcode was reportedly used to gain access to his account.

    “I didn’t get that email,” St. Hilaire stated. “If I had seen it, I probably would have looked into it and found the fraud sooner.”

    St. Hilaire also notified BMO about a fraudulent $5,000 payment to his credit card from his bank account that he says he didn’t make. According to BMO, that payment allegedly came from a device that St. Hilaire used in the past.

    After exhausting most of his options, St. Hilaire has filed a police report, as well as a claim with the Canadian ombudsman for banking services and investments.

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    Why credit card companies deny legitimate claims

    It’s a scenario that plays out worldwide, and while this might seem rare, the numbers tell a different story. Approximately 7% of legitimate fraud claims end up denied, according to Security.org, leaving cardholders to shoulder the financial burden themselves.

    Here are some common reasons why credit card issuers might reject your fraud claim:

    1. The “familiar fraud” flag: If the fraudulent purchase fits your spending pattern or location, your card issuer might assume you made the purchase and you’re just having buyer’s remorse and trying to pull a fast one.
    2. Reporting delays: Credit card companies are skeptical of claims made weeks or months after the charge. Even though federal law gives you 60 days, many issuers start looking sideways at reports made after just a few days.
    3. Shared account access: If you’ve ever given your card or PIN to a family member or friend, the issuer might argue you authorized that person to use your account, making all their purchases “authorized.”
    4. Cardholder negligence: If the card company believes you failed to protect your card information, it might hold you responsible.
    5. Transaction verification methods: For large transactions, if there’s evidence of a signature, PIN entry or two-factor authentication, card issuers will often conclude that it must have been you who approved the purchase.

    How to fight back if your claim is denied

    When your credit card company plays hardball with a fraud claim, it’s time to switch from defense to offense:

    1. Escalate within the company: Ask to speak with a fraud department supervisor or manager who might have more authority to overturn decisions.
    2. Request all evidence and documentation from your credit card issuer.
    3. File complaints with regulatory authorities like the Consumer Financial Protection Bureau.
    4. Contact your state attorney general’s office.

    St. Hilaire is taking many of the necessary steps. But with his fraud claims shot down and BMO ending its business relationship with him because of his “fraud risk,” St. Hilaire is left wondering how any of this happened in the first place.

    “Passwords, virus protection. I don’t know how things were compromised,” said St. Hilaire. “I’ve never lost a card, and I have the virus protection and the safeguards on my computer, which is what a reasonable person would have.”

    5 tips to protect yourself from credit card fraud

    Of course, the best protection against fraud is prevention. Here are a handful of practical tips to protect you from fraudulent charges on your bank accounts:

    1. Set up instant alerts on your phone for all transactions: This single step catches most fraud within minutes, letting you shut it down before thieves can rack up multiple charges.
    2. Inspect before you swipe: Give card readers at gas stations and ATMs a quick wiggle, as skimmers often feel loose. Stick to bank ATMs when possible, as most card skimming happens at convenience stores.
    3. Use virtual card numbers for online shopping: Most major card issuers now offer this feature that creates temporary numbers for online purchases, keeping your real card number protected.
    4. Don’t store your card info on websites.
    5. Check your accounts weekly, not monthly.

    Credit card fraud is a global problem, with billions of dollars being scammed from unsuspecting cardholders. And since the next scammer tactics are constantly being developed, vigilance (and a little bit of knowledge) is essential for staying safe.

    What to read next

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Canadians are turning to their banks for financial advice, with RBC tops in customer satisfaction, latest JD Power study finds

    Canadians are turning to their banks for financial advice, with RBC tops in customer satisfaction, latest JD Power study finds

    As fears about inflation, rising defaults and soaring personal debt persist, an increasing number of Canadians are turning to their banks for financial advice — that’s the verdict of JD Power’s 2025 Canada Retail Banking Advice Satisfaction Study.

    The latest edition of the annual study names RBC as the top in customer satisfaction when it comes to banking and financial advice, but also warns of a deteriorating consumer optimism as the cost-of-living crisis continues to worsen for Canadians.

    JD Power Retail Banking Study highlights growing consumer fears

    The 2025 Canada Retail Banking Advice Satisfaction Study, which examines Canadian banking habits and preferences, reveals that more than 44% of Canadian bank customers are now considered financially vulnerable, a significant increase from 36% five years ago.

    This deterioration in financial health comes as no surprise, with 71% of customers expressing concern about the rising cost of living and 36% reporting struggles with housing costs, such as mortgages and utilities.

    The banking satisfaction study surveyed 2,582 Canadian retail bank customers who reported receiving advice from their bank in the past year. Customer satisfaction was measured across five dimensions: clarity of advice, concern for customer needs, relevancy, quality and frequency of advice.

    RBC tops in customer satisfaction for 5th straight year

    In terms of customer satisfaction among the Big 5, RBC ranks highest for the fifth consecutive year, scoring 595. CIBC follows in second place with 590, and Scotiabank takes third with 580.

    RBC tops JD Power baking satisfaction study
    money.ca

    The study also includes a financial health support index that measures how banks and credit card issuers assist customers in making informed financial decisions and achieving their financial goals. CIBC and RBC are the top performers among banks in this index.

    Other study findings

    Other study findings include:

    • Appetite for bank advice is growing: Customer interest in bank guidance jumped to 26% from 19% in 2021, with the highest demand among new immigrants (47%), affluent customers (32%), and young affluent Canadians (31%)
    • Shift in advice focus: While investment and retirement advice remain top priorities, interest in immediate needs like bill payment guidance increased 4 points and credit advice rose 2 points. Meanwhile, demand for investment and retirement advice dropped by 7 and 4 points, respectively
    • Rising satisfaction with advice: Overall satisfaction reached **579 **(1,000-point scale), up 13 points from 2024. Improvement drivers include better frequency, quality, relevancy and demonstrated concern for customer needs
    • Advice recall stalls: Though 49% of customers feel their bank creates memorable interactions, this metric has plateaued. Research shows customers prefer marketing that reassures them of on-demand support when needed

    “A golden opportunity for retail banks”

    Jennifer White, senior director for banking and payments intelligence at JD Power, says the latest study highlights a growing consumer push towards their banks when it comes to financial advice in Canada:

    “The eroding financial health of customers and their fear that economic conditions may worsen are driving customers — especially younger ones with growing deposits — to seek financial advice from their retail bank at an accelerated pace,” she said in a release accompanying the 2025 study.

    “This combination presents a golden opportunity for retail banks to rise to the challenge and offer services and advice that go beyond the transactional,” she added. “Customers are shifting their focus from longer-term goals such as investment and retirement planning to more immediate concerns like paying bills, reducing debt, and sticking to a budget. Banks that are attuned to their customers’ pain points and can provide relevant and frequent financial advice will be positioned to benefit from a loyal customer base.”

    Read more: 7 smart ways to fight inflation, cut debt, and save big in 2025 — even on a tight budget

    What does this mean for you?

    As more Canadians feel the financial pinch, now is the perfect time to take advantage of the financial advice services your bank has to offer. Banks are increasingly focused on providing guidance for immediate financial concerns rather than just long-term planning.

    This shift presents an opportunity for Canadians to seek advice on day-to-day money management, from setting up automated savings and bill payments to exploring balance transfer credit cards for existing debt. The banks that scored highest in this study, namely RBC and CIBC, offer robust financial health support resources that many Canadians aren’t currently fully making use of.

    Learn more about the JD Power Canada Retail Banking Advice Satisfaction Study.

    About JD Power

    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behaviour, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Connecticut couple issued $111 fine for allegedly using a toll road in a state they hadn’t even visited in 5 years — what you need to know about the ‘ghost car fraud’ scam plaguing US drivers

    Cruising in their classic 1966 Ford Mustang was one of the joys of retired life for Mary and Dan Smith, but that joy took an unexpected turn when they received a fine for an alleged toll they never paid.

    That fine was for the New Jersey Turnpike, a toll road that the Enfield, Connecticut couple hadn’t driven on in years, let alone in the very specific car that authorities had flagged.

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    "Our Mustang was never there," Mary told WBTV. "We never drove that far with that old car to begin with."

    Now the couple is sounding the alarm on so-called "ghost car fraud," a scam that is quickly becoming a growing problem for American drivers and state governments.

    ‘We haven’t been to New Jersey in at least 5 years’

    It all started when Mary found a letter from the New Jersey Turnpike Authority in the mail. In it, the authority stated the Smiths’s license plates were recorded traveling through one of the state’s E-ZPass toll booths without paying. The fine? $11.50.

    "We haven’t been to New Jersey in at least 5 years," said Mary.

    The Smiths appealed the fine, but the couple was shocked when the appeal was denied. Making matters worse, their $11.50 fine had skyrocketed to $111.50 thanks to administrative fees. From then on, the bills just kept coming, almost daily.

    Finally, a letter arrived with visual evidence of the supposed offense, showing a car distinctly different from the Smiths’s classic yellow Mustang. While unclear, the photo showed a vehicle with modern taillights that featured the same license plate as the Smiths’s Mustang. The couple sent replies to the New Jersey Turnpike Authority stating that while the plates seemed to match, the car captured in the photo was in no way theirs.

    "We’re giving you all the information, the pictures, what more can we do?"

    It was only after WBTV inquired on behalf of the Smiths that the error was rectified, with the couple no longer on the hook for the charges.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    What is ‘ghost car fraud’?

    Ghost car fraud is a type of scam where criminals steal or duplicate license plates and put them on different vehicles, causing the legitimate plate owners to receive toll violations and fines for roads they never traveled.

    License plate theft scams typically involve criminals stealing plate numbers in a few common ways:

    • Physically removing plates from vehicles.
    • Creating duplicate plates to mask stolen vehicles.
    • Using stolen plate information for identity theft or toll evasion.
    • Capturing plate images to create fraudulent registrations.

    The Smiths’s story is similar to those of other Americans who also found they had become victims of ghost car fraud. Joanne Barbara from New Jersey once discovered her temporary Audi SUV plates were duplicated on a black Audi sedan, racking up over $600 in tolls and fines, according to WABC. Similarly, Walter Gursky discovered his truck’s temporary license plates were also duplicated on a white Tesla, resulting in $167 in toll violations.

    The states of New York and New Jersey have since taken steps to alert residents about this scam.

    "Ghost plates and toll evasion cost our state millions each year," New York Governor Kathy Hochul said in a statement on NYC’s official website. "Working in partnership with Mayor Adams and law enforcement, we are prioritizing the safety of all New Yorkers by removing these vehicles from our streets and ensuring these brazen actions do not go unchecked any longer."

    How to protect your license plates

    While there might not be much you can do to thwart criminals from stealing the numbers and duplicating your license plates, there are a few things you can do to prevent your plates from being stolen from your car.

    For starters, parking your car in the garage and keeping it off the street as much as possible can make it more challenging for criminals to steal your plates. You could also protect your plates by installing an anti-theft license plate cover, or replacing the screws on your plates with tamper-proof screws. These screws can only be installed or removed using a special wrench that comes with the screws.

    If you’ve received a letter from a toll authority claiming that you owe money for tolls that were wrongfully applied to your license plate, you can follow the same steps the Smiths took to rectify their situation:

    • Contact the toll authority to both verify and dispute the charge(s).
    • Request photographic evidence of the supposed offense, as this could prove that your plates were duplicated and you did not incur the toll charges.
    • If you hit a wall in dealing with the toll authority, consider alerting your local news outlet about your situation, as Mary Smith had done. Bringing local news into the situation could apply enough pressure to encourage the toll authority to recognize the fraud and clear the charges from your records.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • This Arizona man says just 2 days after getting his car’s oil changed, his engine seized up while driving on the freeway — but the auto shop refuses to take responsibility for the damage

    Regular oil changes should help your car run longer and perform better, but when Travis Brun’s engine seized up just days after stopping at a local Take 5 Oil Change, he was shocked to find his oil pan was bone dry.

    Brun made the discovery after the engine in his 2014 Acura sedan seized up while he was driving on the freeway.

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    “It just sounded like somebody put a cinder block in a blender and just let it go," Brun shared with AZFamily.

    Shortly after hearing that alarming sound, all of the dashboard warning lights started flashing in Brun’s car. Then, the car stopped, forcing Brun to call a tow truck.

    Now, Brun finds himself with an engine that’s been destroyed and an oil change shop that believes Brun’s story is all made up.

    Routine maintenance turns into a major headache

    Brun isn’t the type of person to put off his car’s maintenance. “I’m a big proponent of when the sticker says to get it in for an oil change, get it in for an oil change,” said Brun.

    Shortly after his car broke down, Brun had it towed to a repair center in Chandler, Arizona, where mechanics discovered the engine had completely seized. According to the mechanics, there’s only one way this can happen to an engine: running it without any oil. But when Travis and his wife, Ashley, contacted Take 5 about the situation, the Bruns were quickly stonewalled.

    Take 5 reportedly demanded video evidence showing a mechanic reproducing the oil leak in Brun’s Acura. However, that request was impossible to fulfil since the seized engine couldn’t even turn on, let alone pressurize to demonstrate an oil leak.

    Frustrated with the situation, the couple contacted AZFamily’s "On Your Side" investigative team. When reporter Gary Harper reached out to Take 5, the company stated it had reviewed its service footage and could confirm that everything was done correctly with Brun’s oil change.

    “After speaking with both the customer and their preferred auto body shop and thoroughly reviewing our service footage, we can confirm that the oil was properly filled and the chamber securely tightened during the customer’s visit,” Taylor Blanchard, Senior Director of Corporate Communications at Take 5, said in a statement shared with AZFamily. “There is no indication that Take 5 Oil Change is at fault.”

    But with conflicting claims, the Bruns are now stuck with a vehicle that won’t start. Making matters worse, the Bruns were forced to put the car in storage and are now paying storage fees.

    “Where did the oil go if there wasn’t a leak that you created, when everything was fine prior to the oil change?” asked Ashley.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    How to fight back after questionable repairs

    While the Bruns’ situation is an extreme example, in most cases the federal government offers protections when dealing with negligent auto repairs:

    1. The Magnuson-Moss Warranty Act provides protection and establishes standards for warranties, holding service providers accountable for their obligations.
    2. The Federal Trade Commission oversees unfair and deceptive business practices and can take action against businesses that violate standard business practices.
    3. The Consumer Financial Protection Bureau can help if financing (like a credit card) was involved in the vehicle repair transaction.

    Arizona residents also have several state-specific options that can provide more direct assistance:

    1. The Arizona Attorney General’s Consumer Protection Division handles complaints against auto repair shops. The office can investigate cases, mediate disputes and, if necessary, take legal action against businesses that violate consumer protection laws.
    2. The Arizona Small Claims Court provides a straightforward path to compensation of up to $3,500, eliminating the need for an attorney.
    3. Filing a complaint with the Better Business Bureau of Arizona creates a public record of the issue and sometimes helps resolve disputes through their mediation process.

    Furthermore, you should always check with your local authorities to better understand the consumer protections available in your state.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I’m 52 years old, $89,000 deep in debt and have two maxed-out credit cards — my only safety net is my 401(k). What’s the worst that could happen if I take cash from it?

    Holding on to $89,000 in debt can be overwhelming. And you might feel like you’re dealing with an impossible financial situation.

    Your 401(k) might seem like the only lifeline available, but to be crystal clear: tapping into retirement savings should be your absolute last resort.

    When you’re drowning in debt at any age, you’re in a particularly vulnerable position. But at 52 it can seem calamitous.

    And with potentially 10-15 years left until retirement, you’re in the critical accumulation phase where your retirement savings should be growing substantially.

    That combination of high-interest credit card debt and the temptation to raid retirement funds creates a perfect storm of financial issues that requires some immediate action.

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    What happens when you tap into your 401(k)

    Dipping into your 401(k) might sound great. After all, it’s your money, just sitting there; why not cash in? If you’re 5-7 years from retirement with high-interest debt, the math sometimes favors taking a one-time withdrawal to clear that debt, especially if your debt interest rate significantly exceeds your 401(k)’s growth rate.

    But you are likely more than a decade from your retirement, so it’s almost impossible to justify tapping into the savings right now. That’s because using your 401(k) to address debt comes with serious consequences that can severely derail your financial security in retirement.

    Loans vs. hardship withdrawals

    You have two main options for accessing your 401(k) funds before retirement:

    1. 401(k) loans: You can typically borrow up to 50% of your vested account balance or $50,000, whichever is less. You’ll need to repay this with interest (usually prime rate plus 1-2%) within five years.

    2. Hardship withdrawals: If your plan allows, you can withdraw funds for "immediate and heavy financial need." Credit card debt typically doesn’t qualify unless you’re facing eviction or foreclosure.

    What’s the worst that could happen? A retirement disaster

    It’s easy enough to state it plainly, but why should you avoid dipping into your 401(k)? Here’s your worst-case scenario:

    • Immediate tax hit: A withdrawal (not a loan) triggers income taxes plus a 10% early withdrawal penalty if you’re under 59 ½ years old. On a $40,000 withdrawal, you could lose $14,000 or more to taxes and penalties.
    • Devastating opportunity cost: Every $10,000 withdrawn at age 52 could cost you $21,500 in retirement funds by age 67 (assuming a 5% annual return).
    • Loan default risks: If you take a loan and leave your job for any reason, the entire balance typically becomes due within 60-90 days. Failure to repay converts it to a distribution, triggering taxes and penalties.
    • Bankruptcy protection lost: 401(k) assets are generally protected in bankruptcy, but once withdrawn, that protection disappears.

    It’s recommended to avoid 401(k) withdrawals unless you’re facing an imminent threat to your living situation, like a foreclosure or eviction. The long-term consequences of tapping-in are just too extreme, especially at your age when any potential recovery time is limited.

    Better alternatives to tackle your debt crisis

    Before tapping retirement your funds, consider more sustainable approaches:

    1. Balance transfer credit cards

    For those with reasonably good credit despite high balances, a balance transfer card can provide breathing room with 0% interest for 12-21 months.

    Let’s run the numbers on a theoretical scenario:

    If you transferred $25,000 of your existing credit card debt to a card with an 18-month 0% APR offer:

    One-time balance transfer fee: $25,000 × 3% = $750

    Monthly payment needed to pay off in 18 months: $1,430

    Total interest saved: Approximately $8,000 (compared to a 24% APR card)

    This wouldn’t solve all your financial problems. However, it would give you the breathing space to continue working on your debt repayment plan or switching to another option.

    Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how

    2. Debt consolidation loan

    A debt consolidation loan could combine your high-interest debts into a single, lower-interest payment. With fair credit, you might qualify for rates between 10-15% — significantly lower than credit card rates.

    Benefits of personal or consolidation loans include:

    Fixed payment schedule providing a clear debt-free date Potential interest savings of thousands over the life of the loan Improved cash flow with one manageable payment

    3. Credit counseling and debt management plans

    A nonprofit credit counseling agency can negotiate with creditors on your behalf, potentially reducing interest rates to as low as 8-11% and waiving fees. A debt management plan would:

    • Consolidate your payments into one monthly amount
    • Provide a structured 3-5 year repayment timeline
    • Offer professional financial counselling support throughout the process

    4. Bankruptcy as a strategic option

    At 52 years old with $89,000 in debt, bankruptcy might actually be a more financially sound decision than raiding your retirement funds. Bankruptcy is often a last resort — and often seen as a personal failing — but it’s a legal financial tool designed specifically for situations like yours.

    The truth is that bankruptcy, while damaging to your credit for 7-10 years, protects your retirement assets and gives you a chance at a fresh start. That said, filing for bankruptcy protection is a major decision and it’s recommended you consult with a bankruptcy attorney to understand if it’s right for your individual situation.

    Strategic action plan to recover from your financial crisis

    Based on everything covered, here’s a suggested plan of action, starting today:

    1. Immediate step (next 7 days): Contact a nonprofit credit counseling agency for a free consultation to better understand all your options.

    2. Short-term (next 30 days): Create a crisis budget that eliminates all non-essential spending. Every dollar you can save helps accelerate your debt payoff.

    3. Medium-term (next 90 days): Based on the credit counseling assessment, commit to either a debt repayment plan, a debt consolidation plan, or filing for bankruptcy.

    4. Long-term (next 12-24 months): Once your debt is under control, increase retirement contributions to make up for lost time. Delaying retirement by 2-3 years might help as well (as terrifying as that sounds).

    Treat your retirement funds as absolutely untouchable except in life-threatening emergencies. The alternatives may be challenging, but they preserve your long-term financial security while still helping to address your immediate financial woes.

    Remember: This debt crisis is temporary, but retirement insecurity would last the rest of your life — a time you could be enjoying your sunset years.Take a step back, think and make a decision today that your future self will thank you for.

    What to read next

    Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.