Consumer News & Alerts

October 14, 2008

By Martin H. Bosworth
ConsumerAffairs.Com

THE STATES TAKE ON THE HOUSING CRISIS
When it comes to politics, the old saying rings true--think globally, act locally. Nowhere is this more evident than in the mortgage meltdown--as Wall Street continues to seesaw and Washington bureaucrats bicker, state and local authorities are taking action to help homeowners in trouble. Real estate journalist Broderick Perkins takes an in-depth look at how bad the foreclosure epidemic is around the country, and the different approaches states are taking to stem the bleeding. Read more...

WALL STREET LEADERS: MISSING IN ACTION?
Where are the titans of business and finance hiding, in fact? During Black Monday in 1987, Wall Street leaders stepped up immediately with plans to calm the markets and restore stability for trading. Now it seems that Europe is taking the lead with its plans for coordinated injections of capital for interbank lending. Treasury Secretary Hank Paulson, the architect of the rescue efforts, is moving slowly to adopt plans for the American markets, but as financial expert Fred Yager notes, he may not have the luxury of setting his own pace for much longer. Read more...

ARE CREDIT CARDS THE NEXT CREDIT CRUNCH?
It was an inevitable consequence of the economic crisis--as prices continue to rise and wages stagnate, people are using credit cards to pay for everyday necessities, and are falling behind on their monthly payments to ever-greater degrees. Compounding the problem is the cutting of credit lines and interest rate hikes by the big banks, leaving consumers with less of an economic cushion to avoid defaults than ever before. Mark Huffman reports on how the coming credit card crisis is already affecting our readers, and how the banks may respond--or not respond--in turn. Read more...

More economic and financial news...

• Long-Term Mortgage Rates Drop 30-year fixed loan hits 5.94 percent.

• Shopping Mall Traffic Down Sharply Presidential election, financial meltdown keep buyers at home.

• Financial Meltdown Takes Toll on Consumer Confidence Major drop comes after equally dramatic upswing.

• Economic Turnaround Will Take Time Major stimulus measures won't take effect overnight, analysts say.

• Pending Home Sales Perk Up in August Falling prices, distress sales may be cause of uptick.

• Retirement Plans Hammered in Credit Squeeze $2 trillion in wealth lost as stocks continue to plummet.

• Consumers Face Higher Heating Bills Forecast predicts 15 percent increase in heating costs from last year.

• Fed Takes Another Step to Bolster Credit Market New facility will buy commercial bonds to boost businesses.

• Countrywide Settles Predatory Lending Charges for $8.68 Billion Landmark settlement reached with Attorneys General in eleven states.

• Survey: Concerns About Economy May Increase Incidence of Home Fires Nearly half of Americans planning to use alternative heating sources this winter.

• Judge Blocks Wachovia Sale To Wells Fargo Citigroup promises to fight deal.

GLOBAL AUTO SALES FACE "OUTRIGHT COLLAPSE" IN 2009
It's been a bad year for automakers and sellers alike. High gas prices and the credit crunch have combined in a perfect storm of car buyers delaying or outright nixing new car purchases. Slowing within the international automotive market is projected to intensify during the fourth quarter of 2008, and will likely lead to a downward revision for 2009, according to J.D.Power & Associates. Even developing markets such as China aren't immune to the slowdown, leaving analysts predicting a gloomy market outlook well into 2010. Read more...

GAS PRICES HEAD LOWER AS ECONOMY SLOWS
There is one silver lining in the economic dark cloud--gas prices are slowly drifting downward. The nationwide average price of a gallon of unleaded regular is $3.35, and many people are reporting finding gas well below $3 in certain markets. The slackening demand for cars also means fewer drivers, which means less of a demand for petroleum. Is this a momentary aberration due to economic uncertainty, or the shape of things to come? Read more...

The week's automotive news...

• GM, Chrysler Talking Merger Ford spurned early overture from GM.

• Ford Flex, Mazda Cx-9 Rank Among Best Three-Row SUVs Toyota Highlander models still take top marks; Honda Pilot slips.

• Mini Cooper Recalls Some Models to Fix Brake Problem Company says no accidents or injuries reported.

• Auto Loan Delinquencies Rise Nearly $25 billion in car loans are past due.

This week's recalls...

MELAMINE SCANDAL SPREADS
It hasn't gotten a fraction of the press of the bailout or the Presidential campaign, but the continued discovery of candy and other imported foods tainted with melamine is blossoming into a major issue. This week alone, the FDA confirmed that the Chinese-made Blue Cat Flavor drink, as well as M&Ms and Oreos imported to Indonesia, all contained traces of the chemical believed to be responsible for thousands of pet deaths last year. However, the FDA this week also ruled that trace amounts of melamine in products was not considered harmful, except for infant formula. Lisa Wade McCormick reports that the decision incensed consumers, food experts, and at least one member of Congress. Read more...

More about the melamine scandal...

• FDA's Melamine Decision Scares Consumers But experts see it as a positive sign.

• DeLauro Raps FDA On Melamine Risk Guidelines Congresswoman says agency condones contamination of food.

SHELL AGREES TO CURB SALES OF CIGARETTES TO MINORS
The Attorneys General of 46 states and the District of Columbia reached an agreement with Shell Oil and its parent company Motiva Enterprises to prohibit the sale of tobacco products to minors at more than 2,000 gas stations. Shell Oil sells gasoline in more than 14,000 stations throughout the U.S., 13,000 of which are in states supporting the agreement. Mark Huffman and Lisa Wade McCormick team up to cover the new agreement, which includes new training for station personnel and possible sanctions for stations that refuse to comply. Read more...

KIDS' COUGH MEDICINE GETS NEW LABELS; CRITICS UNIMPRESSED
Makers of over-the-counter (OTC) cold medicines recently agreed to amend their labeling to warn against giving their products to children under four--but consumer advocates and health experts say that's still not enough. As Truman Lewis reports, the FDA has stopped short of mandating that the medicines not be given to children under 12, and critics charge that the new labeling initiative is an attempt to circumvent the agency from passing new, stronger regulations restricting the usage of OTC medicines for kids. Read more...

This week's scams, outrages, and consumer news...

• Mortgage Rescue Fraud Schemes On The Rise Scam artists charge large upfront fees, often strip homeowners' equity.

• Beef Sent to Puerto Rico May Be Contaminated with E. coli Feds find contaminated beef patties during routine inspections.

• Chinese Ginseng Blamed for Three Deaths No immediate link to melamine contamination seen.

• West Virginia Sues CashCall Attorney General slams Internet lender for predatory interest rates.

• Indiana Charges Mortgage Broker With Scamming Homeowners Attorney General files suit over false advertising and predatory tactics.

• General Mills Pulling MSG From Progresso Soups Move comes as competitor Campbell touts its MSG-free soups.

• Sales of Beauty Products on the Rise Prestige products show surprisingly healthy growth in 2008.

• Microwave Ovens Need Added Safety Controls Study recommends new features to protect children from injury.

• Eli Lilly to Pay $62 Million in Zyprexa Settlement States charged the company promoted off-label use.

• Fan May Reduce SIDS Risk Study finds room ventilation an overlooked factor.

• Kevin Trudeau Banned from Infomercials--Again Must pay $5 million for falsely advertising his weight loss "cure."

• Some Breakfast Cereals Marketed to Children Are High in Sugar U.S. brands have more sugar content than overseas versions.

• Scams Sprout from Financial Crisis Consumers vulnerable to scams growing out of Wall Street meltdown.

EBAY BUYS BILL ME LATER
Online auction site eBay has had a rough couple of years, with its numerous acquisitions dragging down its stock price and increasing complaints of bad customer service and numerous "gotcha" fees tacked on to every transaction. Apparently deciding that more is better, the company acquired payment service BillMeLater, which enables customers to make online transactions without a credit card, instead submitting their data for a quick credit check and later payment. At the same time, eBay announced it would be laying off 1,000 full-time and 600 part-time workers, all in an effort to reverse the trends of stagnant sales and low traffic. Read more...

More technology and Internet news...

• Study Finds Electronic Payments Top Use of Checks Card-based payments eclipse paper as top means to pay bills.

• Bank Data Breach Threatens 248,000 in North Carolina Mellon data breach affects 12 million consumers overall.

• New Twist in 'Vista Capable' Class Action Lawsuit Lawyers want to use Windows Update to notify eligible consumers.

DOCTORS WORRY ABOUT STRESS FROM ECONOMIC CRISIS
The financial meltdown doesn't just take a toll on your pocketbook--it can lead to poor health as well. The roller-coaster anxiety engendered from obsessive tracking of the stock market, gas prices, and general financial instability can lead to increased stress levels and a host of potentially serious ailments. Keith Churchwell, M.D., executive medical director of the Vanderbilt Heart and Vascular Institute, talks about how stress can contribute to high blood pressure and heart disease, and what you can do to keep yourself on an even keel even as the markets sway back and forth. Read more...

SCIENTISTS DISCOVER NEW GENETIC ROOTS OF MALE PATTERN BALDNESS
The only things certain in life are death and taxes--and when it comes to men, baldness. About a third of all men are affected by male pattern baldness by age 45, and billions are spent trying to reverse this hallmark of aging. Now a team of researchers have discovered a set of inherited generic variants that, when combined, increase the likelihood of baldness drastically. Although the researchers were quick to say that a cure was still a long way off, they noted the importance of getting to the root of the cause of baldness--so to speak. Read more...

This week's health news...

• Feds Approve Drug for Enlarged Prostate Once-daily pill said to relieve common problem in older men.

• Do Seniors Get Bad Breath More Often? Dentures can collect bacteria which lead to halitosis.

• Feds Release Physical Activity Guidelines New recommended exercise regimens for all ages.

• Early Mobility Better than Bed Rest for ICU Patients New research promotes regular activity over sedation and rest as better for health.

• Researchers Tackle Bad Breath New studies review common and recent cures for halitosis.

• Children Often Misdiagnosed in ER Doctors often confuse regular stomach problems with appendictis symptoms.

• Older Women at Greater Risk of Breast Cancer Screenings recommended for women through their 70s.

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