Consumer News & Alerts

November 2, 2009

By Martin H. Bosworth
ConsumerAffairs.Com

HIGH-YIELD CD'S MAY BE TOO GOOD TO BE TRUE

Certificates of Deposit that pay way more than the ones offered by the local bank -- sounds great, doesn't it? Be careful! As the Bernie Madoff saga so aptly demonstrates, any investment that looks both lucrative and surefire is probably neither. Seniors living in affluent areas need to be especially cautious, as they are often the target of schemes like the one uncovered by our Mc Nelly Torres. The particular company in Torres' sights seems to have disappeared but, like a tunneling mole, you can bet it will soon emerge somewhere else. Safe investing requires due diligence and Torres suggests a few resources that should be of iinterest to the minimally diligent. Read more...

DANGEROUS TOYS STILL ON STORE SHELVES
Despite claims from toymakers and industries that market to kids that they were cleaning up their act, it seems you can still find many an item on store shelves containing lead, phthalates, and other unsafe chemicals. That's the conclusion reached by researchers with the Illinois chapter of Public Interest Research Group (PIRG), who recently investigated a number of Chicago-area department store chains for unsafe products. The tests were the first conducted since the passage of the Consumer Product Safety Improvement Act (CPSIA), which mandates stricter standards for chemicals used in toys and other kids' products. Although the results were deemed promising, Lisa Wade McCormick reports that even a few items with unsafe chemicals being sold to children still presents a great risk -- and more needs to be done to prevent it. Read more...

BLAIR EXPANDS RECALL OF ROBES AFTER WOMAN'S DEATH
ConsumerAffairs.com reported earlier this year that Blair LLC was recalling 162,000 of its chenille robes after three people died due to the robes' extreme flammability. Unfortunately, the initial recall came too late to help Atwilda Brown, who died after her robe caught fire. Jon Hood reports that even as Blair is expanding its recall of the dangerous robes to 300,000 items in conjunction with the Consumer Product Safety Commission (CPSC), Brown's daughter Sharon Davis has filed a $30 million wrongful death suit against the company. Read more...

VERTRUE AND VICE
When a survey given to 400 people about your company's business practices returns exactly zero satisfied responses, you know something's rotten in Denmark. Or Iowa, in this case, as a three-year-old lawsuit against "discount marketer" Vertrue finally got underway. State Attorney General Tom Miller is accusing the company of unscrupulous business practices, from tricking customers into signing up for its supposed discount shopping services, to harvesting their credit card numbers from businesses that the consumers dealt with. Although the trial, so far, is going out of its way to protect the supposed "trade secrets" of Vertrue, ConsumerAffairs.com continues to receive complaints from people who found they were not at all protected from the company's not-so-virtuous business plan. Read more...

More consumer protection news...

• Keep Trick-or-Treaters Safe this Halloween CPSC offers tips for preventing injury on Halloween.

• Ticket Sellers Settle New Jersey Suits Some sold tickets for seats that didn't exist.

• Grounded Helicopter Students Win Some Financial Relief States sue on behalf of Silver State Helicopter students.

• Illinois Sues Pinnacle Security Over Sales Tactics Sales reps 'purposely deceived' consumers.

• Pacifier Manufacturer Refuses Recall CPSC says product could choke infants.

• States Want Coordinated Crackdown On Debt Relief Firms Want tighter regulations at federal level.

• Florida Sues Used Car Dealer For Deception Cars allegedly broke down miles from the lot.

• FTC: Buyers Bamboozled by Bogus 'Bamboo' Claims Company's products not made of bamboo fiber.

HIGH GAS PRICES ARE GOOD NEWS?
You may have noticed the fuel pump taking a bigger bite out of your wallet when you gassed up your car this week. Even with slackened demand for gas from motorists, gas prices are continuing to rise thanks to the spike in world oil prices. What's causing oil to go up? The gamble that the global economy is emerging from recession, and that re-energized consumers will want to use more gas. In other words, the market is reacting to something that hasn't happened yet, and may end up causing it to not happen, as consumers end up spending less thanks to the cost of fueling the car up. Mark Huffman tries to make sense of it all. Read more...

More automotive news...

• Congress Takes On Distracted Driving Prevention Senate bill proposed to deal with 'critical safety issue'.

• Vertrue Suit Opens in Iowa Company allegedly signed customers up for service without permission.

• Ford Named Among World's Most Reliable Carmakers Ford Fusion, Mercury Milan reliability tops Honda Accord and Toyota Camry.

BANKS BEHAVING BADLY
With a few months to go before the Credit CARD Act is fully implemented and restricting some of the banking industry's most egregious lending practices, banks are doing everything they can to rake in profit while the coast is clear. A new report by the Pew Health Group's Safe Credit Card Project found that every single credit card offered by a major bank includes terms or practices that will be outlawed under the new law. If that wasn't enough, James Limbach reports that banks are continuing to hike interest rates at a record-breaking pace, even on customers with spotless payment histories. Pew recommends that the Federal Reserve -- which will be implementing the rules passed under the Credit CARD Act -- make sure its rules are fair, equitable, and actually protect everyone. The good news is that Senator Chris Dodd (D-CT) introduced a bill this week that would immediately freeze interest rates until the new law takes effect -- but it's a long shot at best. Read more...

THE ECONOMY: BETTER, WORSE, OR INDIFFERENT?
The "green shoots" that pundits and economists were crowing about a few months ago are apparently blooming, as more news is emerging that the national recession may be over. Thanks in part to government-generated programs like Cash For Clunkers and the homebuyer's tax credit, preliminary estimates from the government show the economy grew by 3.5 percent in the third quarter. There are also signs that consumers are feeling more optimistic about the economy, though as Mark Huffman and James Limbach report, that optimism is tempered by wariness and thriftiness with the pocketbook. Read more...

More economic news...

• 10 Biggest Bank Failures So Far The financial crisis has resulted in scores of bank failures. Here are the largest, by asset size.

• Holiday Shoppers Likely To Find Reduced Selections Inventories may be depleted early.

• Survey Shows Consumers Misunderstand Gift Cards Brochure to be distributed to retailers.

• IRA Withdrawal Endangers Retirement Taking an early distribution from a tax-deferred account can endanger long-term financial goals.

Mortgage and homeowner news...

• 4 Urgent Home Fixes Before You Retire Delaying inevitable work means inflated costs and greater stress when you can least afford either.

• Why Won't They Modify? To understand why a lender won't forgive debt to prevent foreclosure, you must think like a banker.

• 5 Buyer Mistakes in a Short Sale The price tag may be sweet, but the deal could turn sour quickly. Tread carefully.

• Extra Payments Cut Your Mortgage By 12 Years Diverting a little extra cash into your mortgage can save you tens of thousands of dollars.

GOOD TIMES AND BAD TIMES FOR JERRY BROWN
If you're California Attorney General and second-time gubernatorial hopeful Edmund G. "Jerry" Brown, things would be looking pretty good for you. Your only opponent for the Democratic nomination, San Francisco mayor Gavin Newsom, just dropped out of the race. You had a high-profile editorial castigating business media for carrying water for the big banks. And you just won more credit by demanding that those same big banks offer concrete plans for stopping the anticipated next wave of foreclosures due to mortgage rate resets. Things would be looking up -- if you didn't have Consumer Watchdog nipping at your heels over an alleged favor trade with Mercury Insurance, where the company donated to your campaign in exchange for your allegedly changing a ballot initiative to their liking. And worse, your spokesperson admitted that he was taping conversations about the matter with journalists --a violation of California law. Like the song says, "Good times, bad times..." Read more...

FRIENDLIER SKIES TO FLY
Everyone who's suffered an airport runway delay, redirected flight, or been stuck in a terminal when your flight is canceled has reasons to think the airline industry is staffed with indifferent ogres who have forgotten to put the passengers first. But it's not always the case. Truman Lewis relates a tale of how American Airlines flight captain Jim Henderson was willing to delay a flight from Miami to Washington, D.C. out of concern that his plane's brakes were faulty, and that D.C.'s National Airport was unforgiving of any potential problem. Captain Henderson put a human face on the situation, reassuring passengers and reminding everyone that there's a reason why we love to fly. Read more...

CREATIVE WAYS TO CUT THE CABLE CORD
If you're a cable company executive, your future's not looking all that bright. Some enterprising souls are using the tough economic times as an excuse to cut back on cable and find other options, as Tiffany Rodi did when she and her family built their own over-the-air HD antenna. And company after company is introducing ways to deliver movies and TV right to the consumer's door without the need for any middlemen. In this case, it's Netflix, which recently announced that it would soon be streaming its content to the PlayStation 3, thanks to a special Blu-Ray disc offered to Netflix customers. Read more...

BANK FAILURE EMAIL IS AN "EPIC FAIL" SCAM
It's all too easy to believe that the email you just got from the Federal Deposit Insurance Corporation (FDIC) telling you that your bank has failed is legitimate -- but it's not. The FDIC never sends out emails unsolicited, and this particular message is a "phishing" attempt to gain users' personal information through downloading a virus. Computer experts at the University of Alabama, Birmingham deduced how the scam works and are warning unsuspecting readers that though the message may look on the level, it's anything but. Read more...

More technology news...

• How To Use Twitter to Save Cash Twitter isn't just for chatting. The social networking site can also be a tool to find deals and discounts.

• SEC Launches Investor.gov Agency's first-ever Web site devoted exclusively to investor education.

• 68,000 CalOptima Members at Risk in Data Breach Missing CDs contain patient information, Social Security numbers.

• Obama Announces $3.4 Billion For Transition To 'Smart Energy Grid' Applicants say investments will create tens of thousands of jobs, save energy.

FDA RAPS P&G FOR OFF-LABEL MARKETING
Although it's a commonly accepted belief that high doses of vitamin C can help prevent or treat colds and flu, the Food and Drug Administration (FDA) doesn't let companies get away with making that claim on their products without backing it up. In this case, the agency is targeting Procter & Gamble, maker of Vicks cold & flu products, for marketing their DayQuil and NyQuil cold medicines as containing vitamin C, which is classified by the agency as a "dietary ingredient" rather than a medicine. Until the company goes through the process of verifying that its treatments work, the FDA says, they can't market Vicks' alleged health benefits. Read more...

More health news...

• Consumer Reports: Americans With Heartburn Paying Too Much for 'Purple Pill' You can settle your stomach and relieve your wallet by avoiding expensive drugs.

• Researchers Suggest Fructose Link With High Blood Pressure Sweetner used in most processed food.

• Video - Feds Miss Swine Flu Vaccine Target All the pieces didn't quite fall into place.

• Older Blacks More Wary Of Flu Shots Many worry that vaccines will cause illness.

• Do I Need a Thyroid Check? TSH test can help detect disease.

• 'Conveyor Belt' Route To Better Vaccines Injections could become a thing of the past.

• Study: Just One Cigarette Can Harm Young Healthy Adults Arteries affected by minimal smoke intake.

• New York Offers Consumers A Closer Look At Health Insurance New system designed to promote transparency.

RECALLS...

• Sony Computer AC Adapters
• Target Halloween Flashlights
• SurgeMaster Surge Protectors
• Bed Bath & Beyond Roman Shades
• Hanover Direct/Domestications Roman Shades
• IKEA Roller Blinds

NEW ROGUES...

Every day we add hundreds of new consumer complaints and comments to our site. And each day sees the addition of companies and products that haven't previously appeared in our Rogues Gallery. Here's the latest batch of newcomers:

Automotive

• Esserman International VW, Miami
• Mossy Nissan, National City, CA
• James Toyota, Flemington, NJ
• Tracy Honda, Tracy, CA
• Infiniti of Coconut Creek, Coconut Creek, FL
• McGrath City Honda, Chicago
• McGrath Lexus of Chicago, Chicago
• Pacific Honda, San Diego
• Roger Beasley Audi, Austin
• Roger Beasley Volvo, Austin
• North Texas Hyundai, Greenville, TX
• North Texas Nissan, Corinth, TX
• Germain Toyota, Naples, FL
• NAVTEQ

Financial

• Kirkland Young
• Dex Yellow Pages
• Cindy Crawford Enterprises
• Saving the American Dream
• MDF Financial
• BSL Financial Services
• Ocwen Loan Servicing
• CAHP Credit Union

Travel

• Florida Sunshine Shuttle
• USA Vacation Homes
• Fly Free America

House & Home

• A Star Furniture, West Covina, CA
• City Furniture, Tamarac, FL
• A Cut Above, Seguin, TX
• York Street Properties, Dallas
• Applewood Plumbing, Heating & Electrical, Denver
• Majestic Property Management, Stockton, CA
• Forest City Enterprises, Cleveland, OH

Everything Else

• IvoryWhite
• Treasure Coast Readers
• 5000styles.com
• BiggerBras.com
• Educational Partners Association
• DVD Graduation
• Barrington University, Mobile AL
• Rainforest Nutritionals
• One Communications
• Dog Beds & Crates Etc.
• North Pole Fuel Oil
• CSNStores.com
• Nikko America
• Puppy Spot, Orange Park, FL
• Candy Direct
• Google Profits
• Manions International Auction House

We want to hear from you. If you've had a problem -- or a pleasant experience -- with a company, product or service, please let us know, using our secure complaint form.

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