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It's Your Week: Malfunctioning refrigerators, predatory loans and how we look out for you

Sallee Ann Harrison   | Paste BN

You go and buy a new refrigerator. Or you go and take out a loan. Usually these are uneventful errands. But when things turn south, our reporters are there.

I'm Sallee Ann Harrison and welcome to Your Week, our newsletter exclusively for Paste BN subscribers.

This week, we're looking at two projects from our Money team that are focused on looking after you – and your wallet.

But first, don't miss these stories made possible with your Paste BN subscription:

A decade of data, an obvious trend

Paste BN reporters Bianca Pallaro and Amritpal Kaur Sandhu-Longoria analyzed thousands of complaints submitted to the U.S. Consumer Product Safety Commission in the last decade. They found that since 2020, the number focusing on refrigerators has spiked to record levels.

And more than 75% of the recent fridge complaints mention one brand: Samsung. 

"Samsung buyers cited malfunctioning ice makers, over-freezing in the ice compartment, water leakages, fire hazards, food spoilage, and multiple stomach-related ailments they blamed on refrigerators running above the temperature at which products can be safely stored," Pallaro said.

Our team checked the federal consumer website and realized no recall related to Samsung refrigerators had been issued. But that doesn't mean people weren't sounding alarms.

"People we interviewed described how they would be on the phone for hours with Samsung’s customer service or have to send multiple emails to get a response," Sandhu-Longoria said. "Some had flocked to the Better Business Bureau to file a report, where we learned that companies could keep an A+ rating even if they have poor customer reviews because companies are mostly graded on how they handle their complaints."

Samsung rates in at 1.05/5 in customer reviews but has an A+ rating from the BBB.

Pallaro and Sandhu-Longoria filed a request for records and correspondence concerning Samsung refrigerators to the federal consumer agency. The request was denied, but they did get a reason why: the CPSC had an open investigation into Samsung refrigerators. Due to statuary restrictions, they can't provide any more information.

"Consumer advocates say this situation highlights a major issue in the system intended to keep the buying public safe because the agency is not allowed, in most cases, to call attention to a pattern of reported problems with a product until agency officials complete a long process that in effect requires getting permission from the manufacturer," Pallaro said.

But Paste BN will be following that process.

"We’ll be monitoring CPSC’s next steps, Samsung’s response, and keep listening to consumer’s stories, because in no way is this story done being told," Sandhu-Longoria said.

Read more from this project:

Desperation into disaster

In early October, Sandhu-Longoria and investigative reporter Craig Harris wrote about a new form of predatory lending called rent-a-bank loans. Following that story, they got an email from James Hollis in Tucson.

"James lives on Social Security disability and $23 in monthly food stamps, and to cover a $3,000 repair on his car, he took out a pair of loans that have become his worst financial nightmare," Harris said. "These loans come with high interest rates, and by high, we don’t mean the shocking 7% that new home loans might carry. James’ loans have rates of 155% and 200%."

Yes, 200%.

Before long, Hollis got behind on the payments. He was so afraid that his vehicle, a 2006 Ford Crown Victoria that he used as collateral, would get repossessed that he began parking it sideways in his carport.

"Hollis’s story allowed us to take another look at high-cost predatory loans, which are on the rise as soaring inflation drains the bank accounts of low-income consumers," Harris said. "It’s an opportunity to show the toll these abstract-seeming figures have on real lives."

Harris said, as of Friday afternoon, he has heard from six readers who want to help Hollis get back on his feet.

"And the morning that the story about Hollis ran, we got a tip from a woman on a Native American reservation who wanted to tell us about a predatory loan she took out," Harris said. "Looks like another story."

Have you taken out a high-interest, short-term loan? We want to hear from you.

More Money stories you should read:

Thank you

Thank you for being a Paste BN subscriber. Your support allows us to cover – and keep covering – important stories that matter to you and your family. Have a great week – get out and vote if you haven't already – and I'll see you next week.

-Sallee Ann

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