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TOP TEN BAD GUYS
This is the time of the year when consumer organizations, attorneys general and the Federal Trade Commission rummage around in their complaint files from the previous year and announce that -- horrors! -- identity theft, Nigerian scams and auction fraud are big problems.
OK, it's hard to quibble with this but, on the other hand, there are some companies, institutions and products that cause big trouble even for those smart enough not to fall for such lame scams as phony lottery winnings. It didn't take much thumb-sucking to come up with our nominations for the Ten Worst Consumer Plagues of 2005:
- Congress
- Rebates
- Usury
- Ford Motor Co.
- Extended Warranties
- Federal Agencies
- Our Health Care "System"
- Disability Insurance
- TV Talk Shows
- Beef
Now this selection may seem odd to you, and it is certainly at variance with the selections of our consumerist friends but check out the details of our Top Ten Consumer Plagues and we think you'll agree with at least a few. If not, feel free to add us to your personal Top Ten list.
GAS ATTACK
Analysts are predicting a big spike in gas prices this week, perhaps to levels not seen since Hurricanes Katrina and Rita. Two world trouble spots, Iran and Nigeria, may curtail crude oil shipments this week, putting a crimp in supplies and driving prices skyward.
Oddly enough, higher gas prices could have a beneficial effect on your car insurance. If you've joined a car pool, bought a smaller car or cut back on your driving as a result of higher gas prices, you could be eligible for a discount on your insurance.
Big Talk There was a lot of hot air in the new D.C. Convention Center as U.S. automakers talked and talked and talked about how committed they are to hybrids, hydrogen and other fuel-saving technologies. Of course, they didn't have much in the way of rolling stock on display, while Toyota and Honda were showing off their second-generation hybrids.
A Sudden Chill Offsetting the hot air in the convention hall was the chill breeze from the White House, which once again made it clear automakers shouldn't expect a bail-out from Washington. Meanwhile, Toyota is donning its NASCAR racing gear as part of its strategy to run GM off the track and take the #1 spot.
DATA GETS AWAY FROM AMERIPRISE
In the latest disappearing data act, Ameriprise has lost track of data on 150,000 of its customers and 65,000 of its financial advisors. The company, until recently part of American Express, says a laptop containing the data was stolen from an employee's car.
Ameriprise should be careful. Data blunders can get expensive. ChoicePoint has agreed to pay $15 million to settle charges it failed to adequately safeguard the customer data stolen from it last year.
GAO Finds Feds Lax The federal government is not exactly knocking itself out to safeguard Social Security numbers, a GAO study finds. The report was particularly critical of the handling of Social Security numbers by government contractors, who actually do most of the work that federal agencies manage, or mismanage.
Cell Phone Calling Record Dust-Up Texas has opened an investigation and Missouri has filed suit in the sale of wireless customer calling records. Other states and maybe even the feds are in various stages of pursuing locatecell.com and other companies implicated in the sales.
SPYWARE, COUNTER-SPYWARE
Often confused with adware, which influences which ads you see, spyware is malicious software that watches what you do on your computer and can be used to pry loose your account numbers, passwords and so forth. Harvard and Oxford are among the big guns launching a counter-attack, while Washington State and Microsoft, kick off a legal offensive.
MEDICARE BLUES
To say that the new Medicare prescription drug plan has had a rocky start is understating it by several hundred percent. No one knows how many thousand frail elderly and seriously ill Americans have gone without essential drugs because of slip-ups, understaffing and the outrageous complexity of the program. Congress gratefully returns to Washington this week, after many weeks of taking guff from the folks back home. The relief will be short-lived though. AARP has declared that enough is enough and the Medicare drug debacle must be fixed ... fast.
EAGERLY AWAITED
Yes, we all take too many medications but thousands will cheer the FDA approval of Exubera, a diabetes inhaler that can eliminate daily injections for many patients. Obesity drug Xenical is headed for over-the-counter sales.
Double the Risk A study finds that widely-used cardiac drug aprotinin is more dangerous than cheaper, more effective generics. Since the FDA approved the drug 13 years ago, it's been given to an estimated one million surgery patients to limit bleeding -- but has now been proven to double a patient's risk of kidney failure and increase the risk of heart attack, heart failure and stroke.
Supplement Shock Tests find a couple of popular supplements don't do everything their supporters hoped. Vitamin E, for example, appears not to prevent heart disease and Omega-3 fatty acid does not appear to reduce the risk of cancer.
MUTINY ON THE MARY
They're always restless down in steerage but now even the silk stocking crowd is revolting. Passengers on the Queen Mary 2 were incensed when Cunard cancelled three port calls after the ship sustained minor damage while rounding Florida. Cunard offered 50 percent refunds but now says it will pay full refunds to passengers who disembark in Rio de Janeiro.
United Oozes Out of Bankruptcy Having dumped its contracts, pensions and health care obligations to its employees and zeroed out its stockholders' equity, United Airlines is ready to taxi out of bankruptcy and pay multi-million dollar bonuses to the managers who improverished its employees and shifted its more onerous obligations to taxpayers. It's sort of Cinderella in reverse.
Destinations Recommendations from travel editor Dan Schlossberg ...
• Annapolis -- Not Just for Summer Sailors Where to go in America's first peacetime capital.
• Historic Hotels: A Name to Trust These hotels are part of the National Trust for Historic Preservation.
CROSS COUNTRY DOUBLECROSS
Cross Country, one of the more notorious subprime credit card issuers, has agreed to pay $9 million to settle New York charges that it engaged in fraudulent, deceptive and illegal practices. Attorney General Eliot Spitzer charged that Cross Country used deceptive solicitations to target consumers with poor credit records, offering credit lines of up to $2,500. The vast majority of consumers, however, received only about $400 in credit, much of which was immediately applied to fees imposed by the bank, such as annual, application and monthly maintenance fees.
In other scams and outrages ...
• Scam Artists Think Big They send big checks to supposed lottery winners. The check bounces but only after the victim is shares his bank account information.
• Foreclosure Scams At least 20 homeowners victimized in South Florida, prosecutors charge.
• Misleading Charity Sweepstakes Newport Communications settles with 18 states.
• Florida Charity Scams Companies will pay $300,000 and go out of business.
• Post Office Job Ads Blizzard of classified ads victimizes job-seekers.
• Home Improvement Complaints Increase Connecticut reports an 8 percent increase in the last year.
RECALLS
• Jaguar Recalled for Moonroof Defect Moonroof could shatter.
• Cadillac SRX Sun/Moon Roofs Probed Occupants can be cut by glass fragments.
• Audi A4 and A6, VW Passat Fuel pump problem.
• Volvo Trucks Possible fire risk in some models.
• Porter-Cable Routers Electric shock hazard.
• L.L. Bean Safety Kits They're, uh, not safe.
• Bradley Electric Smokers Electrocution hazard.
• Maxi-Heat Dream Tower Heater Recalled Sparks can start a fire.
• Steve & Barry's Children's Jackets The drawstring is a strangulation hazard.
• Homelite Leaf Blowers Missing cover creates a laceration hazard.
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