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Consumer News & Alerts

May 21, 2007

ONSTAR CUSTOMERS GET THE TREATMENT
We hear constantly how U.S. automakers are in big trouble. Everyone feels bad when they hear this. But then we see how U.S. automakers treat their customers and, suddenly, those sympathetic feelings fade away. Case in point: GM's OnStar dumps 400,000 longtime customers, just as it starts a new ad campaign promising "star treatment" to new Onstar customers.

CREDIT, DEBT & COLLECTIONS
Why do debt collectors go after consumers? For the same reason bank robbers rob banks -- it's where the money is. But some debt collectors go too far, collecting debts consumers aren't obligated to pay, as Mark Huffman explains.

Many consumers find credit confusing. There's a good reason for that -- it is confusing. To help out, our Martin H. Bosworth provides a refresher course, Credit Tips and Tricks. And we've dusted off a classic, Your Debts, Your Rights, which reviews the provisions of the Fair Debt Collection Practices Act.

The Senate is considering a measure that would curb some of the more abusive credit card practices, but that won't help you now, so vigilance is required.

MORE PET FOOD RECALLS
Chenango Valley is recalling more of its cat, dog and even ferret food, bringing to at least 5,600 the varieties of pet food recalled since March, as recent discoveries raise new questions about the safety of the global food supply. There's even a suggestion that the widespread deaths of honeybees may be linked to melamine, the chemical blamed for the pet deaths. Since honeybees pollinate about a third of the human food supply, this is a rather somber prospect.

More food safety developments ...

• Menu Foods Ready to Process Claims The Canadian pet food company has posted claim forms on its Web site but consumers face a number of hurdles before they receive reimbursement for their poisoned pets. We examine the options. Hint: They're not very good.

• USDA: Pigs Safe to Eat Federal food inspectors say pigs who were fed tainted feed are safe to eat. Later in the week, chickens also got the green light to head for the slaughterhouse.

• Pet Food Safety Summit Pet food manufacturers are planning a meeting to talk about how they might prevent future pet poisonings.

• How Safe's that Shrimp? Much of the seafood wolfed down by Americans comes from -- where else? -- China, not exactly a beacon of environmental excellence. And, sure enough, researchers say they've found dangerous levels of pollutants in samples they studied.

• E. coli Threat Prompts Beef Recall In an unrelated food recall, beef distributed mostly in the Midwest was recalled for possible E. coli contamination.

ANOTHER DAY, ANOTHER RECORD
Gas price records are being set on a daily basis. The nationwide average shot past $3.12 at week's end and shows no signs of retreating, our Gas Price Round-Up finds. Crude oil prices are down but refineries aren't able to keep up with demand, oil companies say.

Consumer advocates, and many in Congress, aren't buying the industry explanations. But while the rhetoric flies, consumers are increasingly moving towards smaller vehicles, a J.D. Power study finds. Buyers are even lining up for the Smart Car More than 12,000 consumers put down a $99 deposit for the little two-seater, which hits U.S. showrooms next year.

• That's all good, but consumers who paid a premium for their fuel-sipping Toyota Prius are distressed to find the little cars are reluctant to scamper up steep or slippery surfaces.

• Speaking of cars, a new study finds that blacks pay higher interest rates when they buy a car. This is not new but the study finds the situation has gotten worse in recent years.

• Dangerous Chemicals in Child Car Seats Here's the latest thing for parents to worry about. A study finds many infant seats emit toxic fumes.

GE RECALLS 2.5 MILLION DISHWASHERS
The last time GE recalled a few million dishwashers, it offered consumers a rebate on a new GE dishwasher. Consumers fumed and at least one state sued GE. This time around, GE is offering a $300 rebate or a visit from a repairman. Consumers Union says that's an improvement but insists the company could do more.

Consumers Still Held Hostage by Movers Congress has been making noises about throwing a few bones consumers' way but no one is doing anything to rein in the movers who continue to loot and pillage unsuspecting homeowners, a recent GAO report finds.

BAROODY BASHING
One of the major themes of the Bush Administration has been shielding companies from liability to consumers harmed by their actions and oversights. Take, for example, the nomination of Michael Baroody to head the Consumer Product Safety Commission (CPSC). A longtime lobbyist, apologist and log-roller for corporate interests, he has spent his career working for looser consumer protection and tougher corporate protection. Joining the chorus of protest are Sens. Richard Durbin (D-Ill.) and Bill Nelson (D-Fla.). They called his nomination "inappropriate" and urged President Bush to withdraw it.

In other news of note ...

• New York Sues Dell Attorney General Andrew Cuomo's suit accuses Dell of false advertising, bait and switch, failure to provide promised services. “At Dell, customer service means no service at all," Cuomo said. "Dell’s consumers were intentionally misled, and they had to pay for that privilege."

• A Prison Tour The finance director of People to People faces 20 months in prison. David E. Schlotzhauer allegedly stole nearly $150,000 from the student tour organizer started by the late President Dwight D. Eisenhower.

SPYKES GETS SPIKED
Protesting til the end, Anheuser-Busch has given in to critics and says it will discontinue production and marketing of Spykes, a flavored malt beverage critics charged would encourage underage drinking. The beverage contains 12 percent alcohol by volume, more than twice that of beer. No word on similar beverages like Bud Extra and TILT.

• Consumer Reports Weighs In On the New Diets Volumetrics diet is the editors' top pick.

• Burger King Hit With Trans Fat Lawsuit Chain knowingly endangers its customers' health without warning them of the risk, suit charges.

SENATE EYES MEDICARE SCAMS
There've been a growing number of complaints about Medicare Advantage Plans, private health insurance packages offered to seniors as an alternative to Medicare. Consumers have complained that some agents have engaged in abusive sales tactics, and even fraud, to sign up participants. The Senate Special Committee on Aging may hold hearings on the matter.

• Risk of Diabetes Increases with Age Seniors beware! Not everyone expriences symptoms so regular check-ups are important. Undetected diabetes is common ... and dangerous, the Healthy Geezer reports.

SCAMS & OUTRAGES

• Last Payday Lender Leaves West Virginia $616,000 in defaulted loans to be forgiven in First American Cash Advance settlement.

• Job Seeker Scam Surfaces In Delaware Those who can least afford it lose more than $2,000.

• Texas Court Shuts Down Austin Real Estate Scam Scam targeted Hispanics, sold them houses without disclosing liens.

• FDA Warns Against Using 'True Man' and 'Energy Max' "Natural" products may contain dangerous ingredients, feds warn.

MYSPACE HITS 'DELETE'
Goaded by critics, parents and attorneys general, MySpace.com has finally taken action to remove known sex offenders from its site. Of couse, that doesn't do much to chaperone the actions of unknown sex offenders who continue to lurk on unsupervised sites.

RECALLS

IRS TRUMPS AIRLINES
It's no secret airlines have lost their luster but it may be surprising to learn just how low they have sunk. The airline industry is in such sad shape that a poll of 80,000 consumers rated it worse than the hardly-popular Internal Revenue Service (IRS). According to the study, the current United Airlines rating was one of the worst ever measured by the Consumer Satisfaction Index.

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