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Consumer News & Alerts

April 15, 2002





FORD LOSES BIG IN SEAT BELT SUIT
In another blow to Ford's attempt to recover from a series of safety-related disasters, the Oklahoma Supreme Court has ruled that Ford must pay more than $6.5 million to the family of a young man who suffered permanent brain damage because of an allegedly defective seat belt in his Ford Ranger pickup truck.

ALSO IN FORD COUNTRY ...
All is not peaceful out on the range. Bob's '99 F-350 blew the tranny with less than 70,000 miles on the odometer. Bob and his mechanic think Ford cheaped out on the transmission hoses and fittings. Hmmm. Wonder if others are having this problem.

FORD SWEEPSTAKES
It's hard to beat the saga of the gasket and subsequent engine and transmission failures in cars and vans equipped with the Ford 3.8-liter V-6 engine of a few years ago. We now know of at least two unlucky souls who are living proof that lightning can, and does, strike twice.

DOCTORS SUING HMOs
You think patients hate their HMOs? Imagine how doctors feel about them. It may be early to call it a trend but doctors around the country are fighting back. The most recent example -- a New Jersey physician has filed a class-action suit against four large HMOs, charging their late payments and reduced compensation are hurting patient care.

TIME TO GIVE UP NICOTINE POPS
They're colorful, tasty and all those good things, but the Food and Drug Administration says nicotine pops are illegal and potentially dangerous to children. Pharmacists have been making the pops for customers who, presumably, are trying to stop smoking. But the FDA says there's no proof the pops work -- and it says they pose a danger to children, who can ingest harmful amounts of nicotine.

THIS TRIP DIDN'T END WELL
Class Travel was a California tour operator that organized student trips to Mexico beach resorts and elsewhere. Some of the trips didn't go so well and now the defunct company has agreed to pay $30,000 to settle a suit filed by the California Attorney General.

FEDS SUE TO SHUT DOWN SUBSCRIPTION TELEMARKETERS
A federal judge in Atlanta has been asked to issue an injunction shutting down a magazine subscription telemarketing operation. Prosecutors say the company misleads consumers about the true price of the magazine subscription and consumer buying clubs it peddles.

TRIAD EXECUTIVE PENALIZED
Richard Kaylor was a top official of the web of companies that included the Trial Discount Buying Service. Now he's agreed to a plea bargain that requires him to pay $137,500 and agree to post a $1 million bond if he ever wants to get back into the telemarketing business.

ABOUT THAT CREDIT CARD "PROTECTION" OFFER ...
No one needs insurance against unauthorized credit-card charges but that doesn't seem to make it hard to sell. The latest to run afoul of the feds is Consumer Alliance, a Canadian company. Besides selling worthless credit-card protection, the Federal Trade Commission says the company placed unauthorized charges on consumers' credit cards. Call that protection?

THE CHRYSLER VIRUS?
Has Mercedes been picking up bad habits from its American cousin Chrysler? We're hearing from a small but growing number of dedicated Mercedes Benz owners who are having second thoughts about the object of their affection.

BAVARIAN KIAS?
Nor is everything wunderbar in Bimmertown. Customers are irate that geegaws like power windows and automatic a/c -- gadgets that shouldn't even be on a racing car -- aren't to their liking.

CALL THIS PRIME?
It's a good idea to buy nothing from salesmen who come to your home. The rate of consumer fraud in in-home sales rivals an Internet auction -- and the stakes are often much higher. It's not unusual to find yourself owing thousands of dollars for some everyday commodity you could buy for a few hundred dollars at the nearest Wal-Mart or Target ... or, in the case of steaks, the nearest supermarket.

A REAL PRIME-TIME CALL
Business travelers build up quite a trove of can-you-top-this stories about the lousy, rude and incompetent service they encounter. Not too many match Debra's tale of the six-hour phone call Sheraton insists she made the day she sat through an all-day seminar.

RECALLS
This week's batch includes ...

WATCH THOSE BLANK CHECKS
Everywhere you look lately, someone is selling blank computer checks that supposedly save you the time and trouble of getting printed checks from your bank. These software and forms packages supposedly let you imprint your checking account number and bank routing information on blank checks. Maybe so, but many major banks are slapping a $1 per check charge on checks that don't have magnetic ink. We'd recommend checking with your bank before jumping at any of these irresistible offers.


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