Consumer News & Alerts

July 28, 2008

By Martin H. Bosworth
ConsumerAffairs.com

TIME TO FIRE YOUR FINANCIAL ADVISOR?
It's great to have money invested for retirement but the downside of having money in bad times is worrying about protecting it. That's why financial advisors exist -- to advise consumers on how to invest productively and safely. But when times get tough, some financial advisors just aren't up to the challenge. Wall Street veteran Fred Yager tells you what you should look for in deciding whether to stick with your current advisor. Read more ...

BUT HE SEEMED SO NICE
You know what they say: If it sounds too good to be true, it probably is. Unfortunately, the saying doesn't just apply to consumer merchandise and business opportunities — it's also true of people, especially people you meet online. After all, people often aren't what they seem, and nowhere is this more true than on Internet dating sites. Our Joe Enoch looks at one especially unfortunate case in his Love's Labors Looted.

CHEVY TAHOE BURNS WHILE FEDS CONTINUE INVESTIGATION
Federal investigators at the National Highway Traffic Safety Administration (NHTSA) are stepping up investigations into GM vehicles suddenly catching fire, after a 2007 Chevrolet Tahoe caught fire and heavily damaged the owners' Wisconsin home. Automotive maven Joe Benton's investigations have uncovered reports of additional GM vehicles that are not on the Feds' list catching fire unexpectedly. The cause of the vehicle fires is unknown, and is apparently unrelated to the vehicle fires that have been plaguing Ford owners for several years. Read more...

SMALL PICKUPS CRASH HARD IN SIDE COLLISION TESTS
Skyrocketing gas prices have car owners thinking smaller, and buying smaller versions of cars, SUVs, and pickups alike. The tradeoff for owners of small pickups may be reduced safety for side collisions, according to tests conducted by the Insurance Institute for Highway Safety. The Toyota Tacoma was the only one of five pickup models tested to earn a "Good" rating in side crash tests. The Dodge Dakota, Ford Ranger, and Nissan Frontier were rated "Marginal," while the Chevrolet Colorado was rated "Poor." Mark Huffman reports that the Tacoma scored highest due to its inclusion of side-door airbags, which will soon be standard in all Tacoma model pickups.Read more...

This week's automotive news...

• Gas Prices Pull Back Slowly Still above $4 in 25 states and D.C.

• Ford to Focus on Small Cars and Hybrids Automaker continues to lose billions.

• Congress, Feds Crack Down On Oil Speculators Senate passes bill to curb practice while Feds step up investigations.

• Storm-Tossed Texans Warned to Watch for Price-Gouging Hurricane Dolly rips up parts of South Texas.

• Ford: Parts Now Available to Fix Faulty Cruise Control Millions of Ford cars and trucks at risk.

• GM, Power Companies Study Plug-In Problems Where will all the outlets come from?

• Court Upholds Public Access to Crash Data Taxpayer-owned tire safety data has been hidden from the public.

• Oil Prices Fall As Storm Misses Rigs Storm misses oil rigs, prices sink.

CONGRESS COMPLETES MORTGAGE BAILOUT PLAN
Congress took a rare Saturday workday this week in order to complete work on the massive mortgage bailout bill that will keep Fannie Mae and Freddie Mac solvent, while theoretically doing more to help individual homeowners avoid default and foreclosure on their homes. The massive legislation package contains provisions such as improved disclosure of mortgage terms for buyers, protections for military families against foreclosure, and a new permanent affordable housing fund to help first-time homebuyers. The bill sailed through the Senate 72-13, and President Bush has indicated he will sign it into law.Read more...

FORECLOSURE ACTIVITY CONTINUES TO SURGE
While Congress moved considerably faster than their normal glacial pace to bail out Fannie and Freddie, average Americans are still sinking into foreclosure and losing in record numbers. Data from foreclosure trackers RealtyTrac found 739, 714 U.S. properties recorded foreclosure filings for the second quarter of 2008, a 121 percent increase from the same time in 2007. Although former real estate hotbeds such as Nevada, California, and Arizona led the pack for foreclosure activity, 48 of 50 states and 95 out of the nation's 100 largest metro areas experienced increases in foreclosure activity from 2007. Read more...

More economic and financial news...

• Feds Seize Two More Banks Mutual of Omaha takes over accounts of failed banks.

• Mortgage Rates Spike on Weak Market, Inflation Fears Rates get more costly as housing prices drop.

• Home Sales Drop In June Gains in May offset as buyers wait for bargains.

• New York Sues UBS for Fraud Attorney General claims that firm sold junk investments.

• Women Fear Retirement More than Men — For Good Reason Longer-lived and underpaid, women are more likely to outlive their assets.

• New Bankruptcy Law Hurts Consumers and Lenders, Report Finds Foreclosures, credit card debt increase in wake of changes to law.

• American Express Reports Rising Defaults Even affluent customers fall behind on their bills.

• Bill Would Set National Limits on Predatory Lending Measure would cap annual interest at 36 percent.

• Mortgage Rates Continue to Plunge Mortgage money hard to find but the rates are great.

30,000 CONSUMERS WEIGH IN ON ABUSIVE CREDIT CARD PRACTICES
History has it that King Leonidas and a few thousand soldiers were enough to temporarily hold back the invading hordes of Persian ruler Xerxes at Thermopylae. One has to wonder what Leonidas would make of the 30,000 consumers who deluged the Federal Reserve's open comment period on new rules to prevent abusive credit card practices. As Joseph Enoch reports, over 12,000 of the notes were from individual angry cardholders looking for help, while 19,000 were customized form letters from organizations and advocates with stakes in the debate. The Federal Reserve's rulemaking promises to reign in tactics such as billing cardholders twice during a single payment cycle, and prohibiting rate increases to existing account balances. Interested parties have until August 4 to add comments to the process. Read more...

This week's consumer protection news....

• Are You Being Squeezed Dry by your Child's Credit Card Debt? Never too early to teach kids to live within their means.

• Consumer Advocates Blame Lobbyists for Delays in New Toy Safety Rules Industry opposes tougher provisions of proposed legislation.

• Colleges, Not Students, Often Benefit From Financial Aid Financial planner offers tips and commisseration.

• White Bread's Not Whole Grain, Sara Lee Agrees Company agrees to alter claims for its 'Whole Grain White Bread'.

• Jalapeno Peppers from Mexico Recalled Peppers linked to Salmonella outbreak; tomatoes cleared.

• Invention Promoters Will Pay $10 Million To Settle FTC Charges Feds claim promoter deceived consumers with claims of making gadgets profitable.

• Craftmatic Denies Wrongdoing, Defends Sales Tactics Company's lawyer lashes out at TV show.

• Trilegiant Settles Class Action for $25 Million Company agrees to change its business practices.

• California Gets Restitution For Lease2OwnHomes Victims 'Unscrupulous landlord' seized down payments.

• Midwest Air Slices 11 Stops Soaring fuel costs blamed.

FCC VOTES TO PUNISH COMCAST FOR CONTENT BLOCKING
Congress wasn't the only government entity working into the weekend. The Federal Communications Commission voted late on Friday to formally penalize Comcast for blocking its customers' access to the BitTorrent file-sharing engine. Although the formal vote will not be made until the agency's next open meeting on August 1, sources confirmed that Republican commission chairman Kevin Martin, along with Democratic commissioners Jonathan Adelstein and Michael Copps would vote for penalties. The vote would establish a precedent against any other Internet providers' attempts to block content, an outcome cheered by supporters of net neutrality. Read more...

DONE DEAL: XM-SIRIUS MERGER FINALLY APPROVED
The FCC also this week finally gave its seal of approval to the long-delayed merger of XM Radio with Sirius, creating the world's largest (and only) satellite radio network. Republicans Kevin Martin and Robert McDowell indicated their support for the merger, while Democrats Jonathan Adelstein and Michael Copps opposed it. That left Republican Deborah Taylor Tate as the swing vote, and she gave her approval after both companies agreed to pay millions in fines for technical problems with their equipment that violated FCC rules. Tate also gave her blessing to the merger after numerous conditions were attached, such as a three-year price freeze. Both consumer groups and broadcast radio companies criticized the merger as anticompetitive, saying it would raise prices and lower choices for listeners. Read more...

This week's technology news...

• Comcast Tries to Polish Its Image Cable giant plays nice on many fronts to avoid FCC penalties.

• Researchers Find Security Flaws In Online Banking Sites Customers vulnerable to identity theft, loss of their funds.

CANCER CENTER WORKERS WARNED OF CELL PHONE RISKS
Another addition to the growing collection of literature warning cell phone users of potential cancer danger comes from Dr. Ronald Herberman, director of the University of Pittsburgh Cancer Center. Herberman issued a warning to 3,000 faculty and staff members warning about the possible health risks of using cell phones, as well as reminders that children shouldn't use cell phones except in case of emergency. Although most industry, media, and government sources claim there is no definitive link between cell phone use and increased risk of cancer, Herberman's warning joins a long list of published studies indicating that long-term exposure to cellphone-emitted radiation may be harmful, and that taking precautions may just be good common sense. Read more...

This week's health news...

• Girl Scout Cookies Earn "Merit Badge Of Shame" Consumer group criticizes unhealthy partnership with Dairy Queen.

• How to Keep Your Carotid Arteries Healthy Clogged arteries can lead to stroke, disease.

• Viagra Isn't Just For Men Women taking antidepressants may suffer from sexual dysfunction.

• Tattoo Removal a Growing Business Women more likely than men to seek surgery for ink.

• Americans Becoming Even More Obese, CDC Says Obesity increased 2% from 2005-2007, study finds.

The week's recalls...

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