Consumer News & Alerts

March 24, 2008

By Martin H. Bosworth
ConsumerAffairs.com

BANKRUPT STORE GETS A NEW NAME; CUSTOMERS GET ZIP
Complaints continue to rise nationwide about a now-defunct furniture store in Florida that took consumers' money and failed to deliver the promised merchandise. And now, ConsumerAffairs.com has learned that Kids Quarters has been reincarnated as Kids Furnishings.

The new company was started by the owner of Kids Quarters at the very time that Kids Quarters was failing to deliver furniture customers had already paid for. Now the new store has been transferred to a different owner who insists he has no connection to the previous owner. Anyway you look at it, it's a cautionary note for anyone thinking of buying furniture. Read more ...

EXTENDED CAR WARRANTIES MAY NOT BE WORTH IT
Squeezed by low sales and higher costs, auto dealers are pushing pricey extended warranties on unwitting customers, leaving them to pay hundreds of dollars more than they may actually get back in repair benefits. The problem got so bad in St. Louis, Missouri that state Attorney General Jay Nixon has taken legal action against several businesses that used deceptive marketing tactics to fool consumers into paying for warranties they didn't really need. Find out what you can do to duck these bad deals--and how you can better spend your money instead.

This week's automotive news...

• Gas Price Surge Stalls Prices retreat slightly but not much relief in sight.

• California Orders Allstate to Lower Car Insurance Rates 15% Consumers save $250 million.

• High-Speed Steering Shimmy in Ford F-250, F-350 Probed Some big haulers 'out of control.'

• Surf's Up: California Gas Prices Top Hawaii's Consumer group praises Hawaii effort to expose profits.

VIRGINIA SQUEEZES FINANCING ALTERNATIVES' ASSETS
In its ongoing investigation of "alternative lending" company Financing Alternatives, Inc., the state of Virginia has amended its case to include company founder George Christian, and is seeking all of his earnings in order to pay back consumers who spent thousands on laptop and desktop computers promised by Financing Alternatives, but never delivered. Joseph Enoch reports that Christian could be fined $3,500 per each one of the 20 state consumer law violations he is accused of perpetrating, as well as being on the hook for over $7 million in unlawful money transfers.

More scams and outrages...

• Midwest Storm Victims May be Victimized Again 'Storm chasers' perform shoddy repair work, then skip town.

• Long-Term Mortgage Rates Plummet Short-term rates barely changed.

• Woman Indicted In Alleged Ebay Scam Buyer 'won' an auction but never got his Lexus.

• FAA To Review All Airline Maintenance Procedures Earlier warnings about outsourced maintenance ignored?

• California Shuts Down Mortgage Scam Artists 'Utterly brazen' tactics used to fleece homeowners, state charges.

• Tiny Town Stands Up To Payday Lenders Town steps in when state legislature feared to tread.

• United To Reduce its Fleet By 4 Percent Fuel costs squeezing airlines, leaving passengers with fewer flights.

• Pennsylvania Sues Exchange Student Business Operators accused of diverting funds, misleading parents and misrepresenting program.

• Watch for Scams in Vacation Packages, Travel Deals Secret fees, misleading ads, hard-sell tactics are common.

• Missouri Sues Branson Timeshare Business Executive Timbers Resort accused of deception, fraud, misrepresentation.

• Travel and Tour Operator Accused of Preying on Senior Citizens New York sues American Heritage Tours.

Recalls this week...

• QVC Toy Puzzle Vehicle Sets

• Hobby Lobby Easter Egg Containers, Spinning Egg Tops

• Progress Lighting Outdoor Fixtures

• Salton Toasters

• WarmlyYours Comfortplus Rug Warmers

• Galison/Mudpuppy Wirebound Journals

IDENTITY THEFT: ONE WOMAN'S STORY
What started for Suzanne Finch as an unexplained purchase on her credit card transformed into a months-long odyssey of frustration as she spent hours monitoring her credit and trying to find out what caused the incident. Even now, after months of denials and dodging from Citibank and buck-passing from the local police to the FBI, Finch still doesn't have any answers--and wants justice. Read her story, and remember--this can happen to you too.

More identity theft and fraud news...

• Hannaford Bros. Faces Class Action Over Data Breach Hacker broke into grocery chain's system.

• Supermarket Chain Reports Data Breach Hacker broke into Hannaford Bros. system.

• ValueClick to Pay $2.9 Million to Settle FTC Charges 'Free' products weren't free, consumers' data wasn't secure.

• Xbox or PC Stolen? Don't Forget to Cancel Your Credit Cards Credit card information may be in your machine's memory.

VERIZON WINS WIRELESS SPECTRUM AUCTION--BUT AT A COST
The battle over what would become of a newly-freed chunk of wireless spectrum is over, and Verizon Wireless was the clear winner, outbidding competitors such as Google and AT&T to turn the spectrum into a new wireless network that can be used for mobile communication. But Verizon's victory comes at a price--Google's bid forced it to adopt principles of "openness" for the new network, meaning that non-Verizon phones and devices will work just as well as Verizon's offerings. Does this mean a "Googlephone" in your future? Maybe.

More technology and Internet news...

• FCC Releases Broadband Report, Admits Data is Faulty But agency proclaims U.S. broadband competition is healthy.

• Feds End Exclusive Telecom Deals in Apartment Buildings Landlords must open buildings to all providers.

• New Jersey Investigating College Gossip Site JuicyCampus.com publishes anonymous gossip about students.

• 'Permission Marketing' Can Empower Consumers Marketing guru helps companies avoid 'interruption marketing'.

PREDIABETES: WHAT YOU SHOULD KNOW
Before becoming affected with Type 2 diabetes, many suffer from a condition called "prediabetes," where the body's blood sugar levels are dangerously high, but not quite at diabetes-diagnosis levels. Prediabetes can be treated and reversed with some basic health tips and lifestyle changes, and "Savvy Senior" author Jim Miller's article tells you what you need to know.

This week's health news...

• Bird Flu Not the Only Animal Disease Threat Lots of animals carry diseases that can infect humans.

• FDA Approves New Medical Adhesive to Treat Burn Patients Sealant is used to attach skin grafts.

• 10 Million Boomers Face Alzheimer's Caseload likely to more than double as population ages.

• Feds, States Challenge Drug Companies Over Generic Policies CVS Caremark agrees to pay $36 million in ranitidine dispute.

• Soy Compound May Halt Spread of Prostate Cancer Study conducted on mice may have implications for treatment of humans.

• FDA Moves Closer To Setting Up Shop In China U.S. inspectors will ramp up drug, food safety inspections.

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