Current Events in October 2010

Take, for example, the private banking clients of JPMorgan. A Private Banking "client" is a Wall Street euphemism for "rich." JP Morgan is telling its wealthy private banking clients to invest in emerging market equities and currencies such as the Indonesian rupiah and Indian rupee.

The Indonesian rupiah may be a bit of stretch for average investor's risk tolerance but the point we're making is that if you want to rebuild your shattered investment portfolio in this lifetime you're probably going to have to look overseas for any decent return. The U.S. markets are still climbing out of a "lost decade" and are now only back to where they were ten years ago. They're stuck in what financial experts call a "trading range," and there's no telling when they'll break out of it.

Emerging markets outperform U.S. markets

Emerging and frontier markets on the other hand are skyrocketing. Russia was up 129% last year and Sri Lanka had a year-to-date gain of 92% as of September 24 according to the MSCI, Inc. frontier index. Many American investors already invest in overseas markets just by buying shares of multinational companies. These days, three of the world's top five companies are headquartered in emerging markets and ten of the top 20 mutual funds invest in developing nations.

Consider this. According to Ibbotson Associates research, if you had invested $10,000 in the S&P 500 ten years ago, it would be worth only about $9,800 today. But if you had put the same amount in an international stock portfolio split between emerging and developed markets, your investment would have nearly doubled.

Still, on average, American investors have about 90 percent of their portfolio in U.S. securities.

We have to get used to the idea that the U.S. is no longer the global economic power it once was. A weak dollar coupled with a slow economy has put a serious drag on market performance. Moreover, emerging markets represent more than 70% of the world's population or four times that of developed markets and countries like India and China are seeing a surge in middle class consumerism.

Where's the real risk?

Jerome Booth is the head of research at Ashmore Investment, a UK-based emerging market fund. He's quoted in The Wall Street Journal as saying "people used to think emerging markets were far riskier than developed markets. But the credit crunch has shown that western markets are just as risky, and just as exposed to risks like weak corporate governance and political interference."

That doesn't mean there isn't risk in foreign markets, especially in what are known as "frontier" markets in Africa, the Middle East and the former Soviet Union, where you run the risk of political instability and corruption, where bribery is a normal business expense. There are also potential economic challenges such as China slowing its growth to avoid inflation or debt-ridden European nations cutting spending to the point they slide back into a recession.

Volatility abounds in some of these markets, but over time many of them have grown while the U.S. market, which has its own struggles with volatility, hasn't grown nearly as much. The key with global investing is to think long term.

A recent nationwide survey of mass affluent investors by Allianz Global Investors (AGI) and GfK Roper Public Affairs and Corporate Communications found that most (71%) are looking for the best investment they can find and don't care whether it is foreign or domestic. The survey, which was conducted in August, found only 42% said they were confident they'll reach their long-term financial goals compared to 53% in April and nearly two-thirds (63%) believe a major stock market downturn is at least somewhat likely in the next year, compared to 53% in April.

Investing in the right foreign markets

Investing correctly, in the right foreign markets, could make the difference between a meager performance and a solid one. Try to find a trusted financial advisor who will recommend the appropriate allocation and then the best balance of investment vehicles—mutual funds, ETFs, foreign securities, or shares of U.S. companies with global operations. Some financial advisors are recommending clients allocate between 20 and 35% in emerging markets and even more if the client is younger. That may be a little extreme for older and more conservative clients, but they would also benefit from having some of their portfolio in foreign stocks, even if it's just five or ten percent.

So now that you're at least thinking about investing in other markets, how do you go about doing that? Again, talk to a financial advisor. Ask them what kind of international investments are available and right for you.

Stock Funds

One of the best ways to enter foreign markets is through mutual funds and Exchange Traded Funds or ETFs. Not all foreign stock funds perform the same way and may not give the robust returns you'd expect. Some international funds are overly invested in large European or Japanese companies and have little exposure to the fast-growing emerging markets. On the other hand, relying too much on those red hot developing markets like Brazil, India and China can expose your portfolio to more risk than your tolerance can handle.

You also have a choice between global funds or an international or foreign fund. A global fund can invest anywhere in the world and depends on where the fund's management team sees the best opportunities. Many global funds will have holdings in the U.S. as well as overseas which means you'll get the broadest possible diversification available in a single investment. An international fund, however, invests only outside the U.S. and therefore is likely to be more volatile.

As with domestic funds, you want to be aware of sales charges. If you're seeking low cost alternatives, you may want to invest in an overseas index fund or ETF (exchange-traded fund). These investments offer some of the same advantages as a mutual fund, but have significantly lower costs because they are not actively managed.

Foreign Stocks

More sophisticated investors may want to consider foreign equities. Just as one of the basic principles of successful investing is diversification by spreading your investments across different industries, investing beyond borders is merely an extension of that principle.

The underlying concept is that you're taking advantage of the superior growth of other countries and there are two primary ways to do this with stocks. You can either invest in companies located in other countries or in U.S. companies that do business internationally and derive much of their revenue from overseas. In fact, investing in companies like Apple, GE, and Avon, who do business in nearly every country on the planet, is about as global as you can get in terms of taking advantage of the world's economies.

Another option for investing in international stocks is to buy an American Depositary Receipt, or an ADR. These are shares of a foreign stock held by a U.S. bank. ADRs are traded on U.S. stock exchanges and allow U.S. investors to buy foreign stocks without having to deal with foreign currencies, the expense of opening an additional account or higher commissions, and foreign banks, not to mention other possible barriers such as language and different time zones. Any gains and losses will appear on a 1099 form that you will receive at the end of the year.

Foreign Bonds

Older investors, who prefer the more conservative fixed income investments, may want to look at emerging market bonds. Take Brazil for example. Its debt to gross domestic product ratio is lower than that of the U.S. and Brazil's 10-year local currency bonds yield 12.3 percent, compared with 3 percent for U.S. Treasuries.

The key to foreign investing is to not try it alone. If you're going to invest in foreign markets, work with a financial advisor who understands the risks, rewards and complexities of the global marketplace.

The agency is also reportedly planning to introduce a proposal requiring wireless carriers to notify their customers if their bills have suddenly gone up.

The FCC action comes on the heels on an announcement by Verizon Wireless that it will refund up to $90 million to consumers who were wrongly charged for accessing the Internet with their mobile phones.

The company said it will notify about 15 million customers this month and next that it will apply credits to their accounts due to mistaken past data charges. FCC Commissioner Mignon Clyburn says the action is long overdue.

"While I appreciate that Verizon Wireless has acknowledged its billing errors, the refunds to millions of Americans have been a long time coming," Clyburn said.

"It appears the company was first notified, more than two years ago, about certain billing errors. As I pointed out in December of last year, the company's initial response to public reports of the phantom fees was that it does not charge consumers for accidental launching of the web browser," he said.

Belated action?

While advocacy groups generally applaud the FCC's probe of bill shock, they note that it, too, was a long time in coming. Complaints about wireless billing practices have been piling up for years.

Tonisha, of Los Angeles, experienced bill shock recently.

"Being a customer nine years with Verizon Wireless I had grandfathered my way into having call detail free," she told ConsumerAffairs.com. "I changed my number on that line and they started charging me $1.99 a month. That was the straw that broke the camel's back. I called them to pay my bill to discover that it was $790.00."

Jay, of Sioux City, Iowa, was among those complaining about being charged for Verizon services he didn't want.

"I called about data usage on two phones I do not use web on but was pretty much told to bad, you push the wrong button you pay for the usage," he told ConsumerAffairs.com. " I did not use the web just pushed a wrong button and got charged for it. They didn't even credit it but why would they when its millions of dollars a month."

Cramming

A growing issue among wireless customers is "cramming," in which a third-party provider inserts a charge on a consumer's wireless bill. The law requires providers to pass along the charge, supposedly in the interests of increasing competition. However, the law has been repeatedly exploited by scammers to insert charges for non-existent services.

Consumer groups say the FCC should take action to make the wireless billing process easier for consumers to understand. Since many cellphones are now bundled with other communications services, the bills now take several pages and are hard to follow.

Read more about Cell Phones

Pennsylvania Attorney General Tom Corbett this week urged seniors in his state to be wary of mailings and other unsolicited offers that attempt to charge a fee for information about the rebate program.

Corbett says seniors that they are not required to pay a fee to apply for the state's property tax and rent rebates program. Rebate forms and instructions are available free-of-charge and can be easily obtained from the Department of Revenue, as well as Area Agency on Aging offices and the offices of many state legislators.

"Homeowners across the state are continuing to report unsolicited mailings to our office that ask seniors or disabled residents to pay a fee in order to receive assistance in filing a property tax or rent rebate claim," Corbett said. "Those letters do not disclose that seniors can apply for rebates directly with the Commonwealth, for free, or that forms and assistance are readily available."

Not the first time

Corbett noted that this is the second time this year that consumers have reported receiving questionable notifications about the state's property tax and rent rebate program.

"Our office first cautioned consumers in March 2010 about mailings that asked seniors to pay a fee in order to obtain information and applications for the PA Property Tax/Rent Rebate program," said Corbett. "This second wave of solicitations appears to be linked to a change in the deadline for this year's applications, which has been extended until December 31st."

Corbett said consumers should always be cautious with questionable offers that attempt to capitalize on programs intended to provide much-needed financial relief to older residents. He encouraged consumers to avoid unsolicited offers that ask for payment in return for assistance obtaining government funds and urged all consumers to check directly with official agencies to determine if applications or other information can be obtained free-of-charge.

Pennsylvania's Property Tax/Rent Rebate program benefits eligible Pennsylvanians age 65 and older; widows and widowers age 50 and older; and people with disabilities age 18 and older who meet certain income requirements.

With the crackdown on distracted driving, and with texting behind the wheel being compared to driving drunk, Vlingo Corporation believes it's onto something.

The company has announced a new beta feature for Android phone users that allows consumers to receive and send text messages without taking their hands off the wheel or their eyes off the road.

The interface, called Vlingo InCar, offers users:

· Voice-driven, hands free initiation - Vlingo enters listening mode upon Bluetooth connectivity

· Voice driven, hands free initiation using a "wake up word"

· Conversational user guidance instead of a touch screen

· Ability to send and respond to messages, make calls and get directions using only voice commands

"Vlingo InCar was a natural extension of Vlingo's functionality so that users can now have an alternative, hands free way to communicate when they need to respond to an urgent message," said Dave Grannan, president and CEO at Vlingo. "Although 30 states presently have full or partial bans on texting while driving (TWD), data from Vlingo's Texting While Driving in America 2010 Report shows that 35 percent of those surveyed still continue to TWD. Legislative action is an important step but clearly laws are not enough, we are going to need technology solutions."

Vlingo released a video demonstrating how the product works. A driver says the "wake up word," a code that activates the device. The driver then can instruct the device to send a text message to an individual in the address book. If the person replies, the device then reads the message aloud.

The company says it has the support of Sprint in promoting the new technology as a way to change consumers' behavior.

"With Vlingo's hands-free application on the Android Market, drivers are able to keep their eyes on the road and their hands on the wheel, and Sprint is pleased to support Vlingo InCar as an application for its wireless customers," said Ralph Reid, Sprint vice president for corporate social responsibility.

Vlingo InCar beta is exclusively available on the Sprint Now Network and is optimized for the HTC Evo and other Android 2.2 devices.

While safety advocates are genuinely horrified by drivers texting behind the wheel, they also take a dim view of even talking on a hands-free device while driving. Illinois highway officials, for example, include conversations with passengers and eating as contributors to distracted driving.

The agency's scientific advisory committee met late this week to take up the matter of whether tobacco companies use menthol as a way to keep smokers hooked. The committee has been directed to write a report on the subject and could recommend regulating, or even banning the substance.

Committee members said they will look at whether tobacco companies are using menthol to disguise the harshness of the smoke and make it harder for people to quit. But the head of the National Black Chamber of Commerce sees the move as directed at African-Americans.

"It is no secret that menthol cigarettes provide a distinctive taste that is preferred by many African Americans," NBCC President Harry Alford said. "In making a recommendation, it is my fervent hope that the committee not make a decision based on mixed information, decades-old marketing information, inconclusive studies or preconceived notions."

Alford said it would be a "severe error" to completely ban a product under what he called "a paternalistic justification." In the absence of solid scientific evidence, he asks, why should the taste preference of African Americans be singled out for a ban?

The report is due in March and the committee's meetings this week concern what to include in the report. The tobacco industry said it has no evidence that putting menthol in cigarettes increases the likelihood that people will start smoking and find it harder to quit.

Previously, government regulators banned all other flavorings in cigarettes, except for menthol, on the grounds that it made it more likely children would start smoking.

Attorney General Roy Cooper has filed a lawsuit that seeks to bar the firm from illegally collecting money to settle debts and force it to pay refunds to more than 3,000 North Carolinians.

"Taking advantage of consumers who are trying to pay off their bills is wrong, and it's also against the law," Cooper said. "Never agree to pay an upfront fee to anyone who promises to help get you out of debt."

Also named as defendants in the lawsuit filed by the AG's Consumer Protection Division are company managers Michael L. Metzner, Ran David Barnea and Daniel T. Post and a related company -- American Debt Negotiators, Inc.

Cooper is asking the court for a temporary ban on all defendants' illegal practices and a permanent ban to stop their unlawful debt adjusting and other deceptive practices. He also wants refunds for North Carolina consumers, cancellation of all contracts, payment of civil penalties, and a freeze of the company's assets.

False hope

The lawsuit contends that CLG has deceived consumers by promising to reduce their debts by half and leave them debt-free without bankruptcy, collecting more than $2.6 million from 3,000 North Carolinians to date.

In reality, CLG rarely works out agreements to settle debts but keeps substantial fees anyway. The company also claims its services are performed by attorneys when they are not, and misleads consumers to believe that its program is government-affiliated.

According to the Cooper's office, CLG pitches its services online and through radio advertisements, telemarketing calls, and local telephone book listings.

For example, the current Raleigh phone book includes 13 listings connected to CLG under "Consumer Credit Counseling." Although the listings are for local telephone numbers, they connect callers to telemarketers in the company's Florida office.

Consumers burned

Seven consumers have filed complaints about CLG with Cooper's Consumer Protection Division. Among them:

· A retired Raleigh couple living on a fixed income turned to CLG for help getting out of credit card debt. They heard about CLG through an ad on a local Christian radio station that said that the company's services were "part of the government's debt relief plan." After paying nearly $3,000 over 10 months, the couple has yet to get any help resolving their debts and can rarely get anyone at CLG to take their calls.

· A Winston-Salem woman who lost her job called a number in the phone book seeking credit counseling. The number she called connected her to CLG, which told her it would negotiate to reduce her debts and settle her bills. She made monthly payments to CLG for more than a year totaling close to $8,600 but got no help. She was eventually able to get $3,300 of her money back after calling the company repeatedly, but her debts remain.

· A disabled Sanford resident called CLG after hearing on the radio that it was affiliated with the president's stimulus plan, believing she could trust the company to help her resolve $10,000 in debt since it seemed to be a law firm. She made monthly payments to the company and took its advice not to speak with her creditors and to stop paying her credit card bills. After nearly a year with no results, she demanded her money back and eventually got a full refund after contacting the attorney general's Office. She now faces possible bankruptcy because her bills piled up during the time that CLG was supposed to be helping her.

Little or no help

As alleged in the complaint, CLG has collected more than $1.6 million from more than 650 North Carolina consumers -- supposedly to help resolve their debts. Of that money, only $202,000 has actually been used to pay down consumer debts. Most consumers who've paid the company have received little or no help settling their debts or working out payment plans with their creditors.

Under North Carolina law, it's illegal to charge an upfront fee to help negotiate debts -- also called debt adjusting or debt settlement. State law does allow qualified credit counselors to charge limited fees to help set up a plan to make timely payments on debt, called a debt management plan. However, state law limits the fees for debt management plans to an initial set-up fee of $40 and monthly fees of 10 percent of the monthly payment up to $40.

Cooper contends that despite its name, the CLG employs mostly telemarketers who pitch debt settlement services, not lawyers. While Metzner is a Florida lawyer, he is not licensed to practice in North Carolina and the company is not a law firm. A number of related businesses are located at the same address as CLG in Boca Raton, including American Credit Counseling, Inc., Leads 2 U, BMV Debt Management Corp., American Debt Negotiators, and Consumer Advocates Credit Counselors, Inc.

"If you need help digging out of debt, don't get trapped in a scam that puts you deeper in the hole," Cooper said. "Find a non-profit credit counselor in your community who can offer real help instead."

Read more about Debt Counseling

The groups, including the Leadership Conference on Civil and Human Rights, the National Fair Housing Alliance, National Council of La Raza, the NAACP and the Center for Responsible Lending say that until lenders in all 50 states demonstrate that they are adhering to all existing laws, regulations, and contractual guidelines related to loss mitigation and foreclosure legal process, they should not move forward with any foreclosures.

"If we don't take drastic measures now," says Wade Henderson, President & CEO of the Leadership Conference on Civil Rights, "we can expect millions of additional foreclosures in the coming years, with a disproportionate number of them involving Latino and African-American families."

Nationwide action

Lenders across the country are announcing temporary foreclosure moratoria and attorneys general are calling for the same because of systemic illegal foreclosure filings and misrepresentations.

Among the latest is Illinois Attorney General Lisa Madigan, who is demanding 23 additional loan servicers provide her office with information concerning the fairness and accuracy of their foreclosure procedures in courts across the state.

Madigan recently issued a similar demand to GMAC/Ally, Bank of America and JP Morgan Chase to halt all pending foreclosures in Illinois, including post-foreclosure sales and evictions, after they admitted they were filing false documents in foreclosure proceedings.

"The same mortgage giants and big banks that fraudulently put people into unfair loans are now fraudulently throwing people out of their homes," Madigan said. "They should not be above the law."

Madigan also announced she is helping convene a multistate task force of state attorneys general and bank regulators to coordinate states' reviews of servicers' foreclosure processes.

Uneven impact

Research demonstrates that just as minority communities were more likely to receive predatory subprime loans, they also suffer more from foreclosures. "Our research reveals that African-Americans and Latinos are almost 75 percent more likely to experience foreclosure than Whites, said Michael Calhoun, President of the Center for Responsible Lending.

"We cannot allow this injustice to continue," he added. "Mortgage servicers and lenders must work to preserve homeownership when possible; when not possible, they must follow the law when foreclosing." Moreover, the higher the concentration of racial minorities in a community, the higher the rates of foreclosure.

And it isn't just individual homeowners who are affected. Neighborhoods across America are being destroyed as each foreclosure has enormous spillover effects. Communities -- especially minority communities -- are seeing their home vacancy and crime rates increase while home values and tax bases are eroded.

Moratorim necessary

Because many lenders are not equipped to handle the current volume of home defaults, it's believed a foreclosure moratorium will give them a chance to develop adequate systems and capacity to preserve homeownership.

The groups are calling on Congress to investigate the widespread fraud and misrepresentation in foreclosure filings, and to revive legislation that would allow loan modifications in bankruptcy court proceedings.

The organizations say all lenders should be required to evaluate homeowners for loan modifications and other solutions, with strong transparency and accountability. Lenders who participate in the government's foreclosure prevention program (HAMP) or handle government-insured loans are already required to do so. Homeowners must also have recourse when their lenders deny loan modifications leading to unnecessary foreclosures.

Janet Murguía, President and CEO of the National Council of La Raza, says Latino and black families have been deeply harmed by the economic meltdown through the loss of homes, jobs, and entire neighborhoods.

"Our communities were targeted by predatory lenders As a result, more than 1.3 million Latino families will lose their homes to foreclosure by the end of the crisis. Foreclosure prevention programs are not working, foreclosure rescue scams are rampant in our communities, and now fraudulent documentation is leading to a new wave of foreclosures," she said. "Enough is enough."

The company's California state business license was suspended last year for not paying its own taxes, according to the Federal Trade Commission (FTC), which is seeking to make the defendants pay restitution to victims.

"We've made it a top priority to go after scammers who try to exploit the financial hardship of others," said David C. Vladeck, Director of the FTC's Bureau of Consumer Protection. "For people having a tough time paying their taxes, the last thing they need is to lose more money to a fraud."

Bogus claims

According to the FTC, American Tax Relief LLC falsely claims in TV, radio and Internet ads that it can settle consumers' delinquent federal and state taxes for a fraction of the amount they owe. The company also falsely claims that it can remove tax liens and stop wage garnishments, bank and tax levies, property seizures, and "unbearable monthly payments."

For example, the company's website states, "The IRS is currently accepting a fraction of back taxes owed to them (sic) for those who qualify. The IRS is allowing the people with delinquent tax liabilities a ONE-TIME opportunity to settle the debt ONCE AND FOR ALL. But at the same time, the IRS does not advertise, promote or even voluntarily suggest this program."

The FTC says the company has continued its deceptive practices even after federal agents executed a criminal search warrant on the operation's Beverly Hills business premises in April, 2010. At that time, authorities seized money from bank accounts and a Ferrari from the company's owner, and placed liens on two residences, including a $3.4 million house. At the time, one of the company's owners was leasing six other vehicles, including a Rolls Royce, a Bentley, two Porsches, and two Mercedes-Benzes, according to exhibits the FTC filed in court.

American Tax Relief charges up-front fees ranging from about $3,200 to $25,000 for the purported tax relief services. The company's ads include a toll-free number for consumers to call for a "free consultation." After speaking briefly with commission-based sales people who are supposedly "tax consultants," virtually all consumers are told that they "qualify" for a tax relief program, and that American Tax Relief can help them significantly reduce their tax debts, the FTC complaint alleges.

Little satisfaction

In reality, very few of the company's customers qualify for the promised tax relief programs, which are available only in very limited circumstances. Most people who hire the company would qualify at most for installment payment plans, which still require payment of the full amount owed, and which many taxpayers can easily arrange by themselves.

Many consumers are told they qualify for an "Offer in Compromise," which the IRS states is its only program that allows people to avoid paying the full amount of back taxes, and is available only in limited circumstances; taxpayers are eligible only after other payment options have been exhausted and the person's ability to pay has been reviewed.

Other consumers are told that they qualify for a "penalty abatement," which the company claims will eliminate both accumulated penalties and interest stemming from late payments. However, a penalty abatement is considered by the IRS only in very limited circumstances for people who have "reasonable cause" for the late payments, such as death, serious injury, natural disaster or the like.

Daniel of Cicero, NY, says he called American Tax Relief after seeing their ad and "they immediately told me they could reduce my tax debt, which was $38,000 to $3,00 or $4,000." He tells ConsumerAffairs.com that he sent them $4900 to start the process. "Had to keep sending them papers they requested over and over, IRS then contacted them -- IRS claims they never returned their phone calls and my claim was denied." When he tried again to contact American Tax Relief, Daniel says, "they never returned my calls.

"In my opinion," he concludes, "this company rips people off and does absolutely nothing for you but keep your money."

The FTC contends the company does not gather sufficient information from consumers to know whether they would be likely to qualify for either an Offer in Compromise or a penalty abatement.

The agency's complaint names Alexander Seung Hahn, Joo Hyun Park, and American Tax Relief LLC. Park's parents, Young Soon Park and Il Kon Park, are named because they are allegedly holding funds obtained from the defendants' customers.

On September 24, 2010, a federal judge in Chicago entered a temporary restraining order prohibiting deceptive claims, freezing the defendants' assets, and appointing a receiver to manage the company.

In Pennsylvania, Attorney General Tom Corbett urged homeowners in his state to file complaints concerning questionable mortgage foreclosures to aid in his investgations.

Slamming the barn door after the horses had all fled, Bank of America yesterday announced it would stop writing home loans through independent brokers, an action taken more than a year ago by JPMorgan Chase.

"We know that as Ohioans were fighting to save their homes, this loan servicer benefited financially from the dire circumstances," said Cordray. "Instead of stepping up and assisting those at risk of losing their homes, it is clear that GMAC chose to compound the problem through fraudulent and unfair and deceptive practices."

According to the lawsuit, GMAC and its employees committed fraud on Ohio consumers and Ohio courts by signing and filing hundreds of false affidavits in foreclosure cases. The fraud came to light after a GMAC employee, Jefferey Stephan of Sellersville, Pa., testified in a foreclosure case out of Maine that from 2006 to 2010, he signed thousands of affidavits without verifying the content.

Through the lawsuit, Cordray is asking the court to grant a preliminary and permanent injunction preventing GMAC/Ally from proceeding to foreclose in any pending Ohio case or allowing the property to be sold. Cordray is also asking for civil penalties of up to $25,000 for every violation of Ohio's Consumer Sales Practices Act and for consumer restitution.

As a result of similar reports regarding depositions taken by a JPMorgan Chase and Bank of America employees, Cordray also requested that JPMorgan Chase and Bank of America suspend moving toward a judgment, sale, eviction or property transfer involving any foreclosure case with affidavits signed by those employees. Cordray also sent letters to Wells Fargo and Citibank, requesting that the banks meet with his office to discuss foreclosure affidavit procedures.

According to recent statistics from the Ohio Supreme Court, the wave of foreclosures in Ohio has shown no signs of receding. In the first half of this year, there have been 45,930 foreclosures in Ohio, which is ahead of last year's record-breaking pace. From 1995-2009, Ohio foreclosure filings quadrupled.

Meanwhile, Pennsylvania's Corbett went public with a plea for complaints from homeowners in the Keystone State.

"Pennsylvania residents who believe they are the victims of improper foreclosures should call the Attorney General's toll-free Consumer Protection Hotline, at 1-800-441-2555, as soon as possible in order to file formal complaints," Corbett said. "We are working to identify whether our Consumer Protection Laws were violated by lenders or mortgage servicing companies that may have failed to follow proper procedures regarding foreclosures."

In addition to filing a complaint with the Attorney General's Bureau of Consumer Protection, Corbett also recommended that homeowners who have received foreclosure notices should contact the Pennsylvania Housing Finance Agency (PHFA) for information about emergency mortgage assistance, foreclosure mitigation counseling and other services that may be available.

Pennsylvania consumers can call PHFA directly at 1-800-822-1174, or review detailed information about mortgage and foreclosure assistance services on the PHFA website, at: www.phfa.org/consumers/homeowners/hemap.aspx.

Read more about Mortgages

Conventional loans are harder to get and have tighter rules. For example, if a home needs significant repairs, a conventional loan will require that those repairs be made prior to settlement.

In the case of foreclosures, this presents something of a problem since the banks that own the property are generally unwilling to spend any money on repairs, insisting that the home be purchased "as is." If the prospective buyer can't get a conventional loan, what other options do they have?

The Federal Housing Administration (FHA) offers something called the FHA 203k loan, which is tailor-made for a foreclosure purchase where repairs are needed. Sometimes called a "rehab" loan, the 203k is actually two loans in one.

Two loans in one

The buyer receives financing for the purchase price of the house, and a second amount for the estimated cost of repairs, identified by an FHA appraiser. The second amount is held in escrow while the sale proceeds to settlement.

After settlement, the repair work is paid for with the escrow fund. The homebuyer pays one mortgage that includes the financed portion of the purchase price and the cost of the repairs.

This loan is only available to buyers who plan to make the property their primary residence. It cannot be used to finance second homes or investment property.

The loan takes longer to close than a conventional loan and has higher costs. Its interest rates, however, are fairly competitive, based on the buyer's credit score.

For foreclosures only

Fannie Mae, meanwhile, has a loan program especially for financing properties that it has repossessed. It's called the HomePath Mortgage, but is available only on eligible property.

The benefits include:

· Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)

· You may qualify even if your credit is less than perfect

· Available to both owner occupiers and investors

· Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer

· No mortgage insurance

· No appraisal fees

· Also eligible for HomePath Renovation Mortgage

· HomePath Mortgage financing is available from a variety of lenders - both local and national.

"More than 87,000 families have purchased HomePath properties in the first half of 2010 - nearly double the number of Fannie Mae foreclosed properties sold in the first half of 2009," said Terry Edwards, executive vice president of Fannie Mae's Credit Portfolio Management. "We continue to look for ways to stabilize neighborhoods and offer incentives to qualified buyers who will occupy these properties over the long term and help support their communities."

Fannie Mae is even offering a special incentive to qualified home buyers who will be owner-occupants. If they close before December 31, 2010, they can receive up to 3.5 percent of the final sales price that can be used toward closing-cost assistance. In addition, selling agents representing owner-occupants will receive a $1,500 bonus.

As in the case with the FHA 203k loan, rates for Home Path loans are competitive, based on credit score.

Missouri Attorney General Chris Koster went to court seeking a preliminary injunction against Sirius XM, saying it was calling consumers who were on the state's Do No Call list. The company responded that it had a right to do so, since it had an "existing relationship" with the customer.

A Missouri court sided with Koster, who has also filed a lawsuit alleging violations of the Missouri Merchandising Practices Act and the Telemarketing No-Call List Act. Koster said harassing telephone solicitation calls were made to consumers soliciting satellite radio subscriptions.

In issuing its order granting the preliminary injunction, the court found that the Attorney General's office had established a probability of success at trial on the merits. The judge found that the Missouri citizens on the no-call list would suffer a hardship if the preliminary injunction were not granted. The judge ruled that the preliminary injunction will be in place throughout the litigation until the full trial on the permanent injunction.

Threat to telemarketers

Should Koster win the lawsuit, telemarketers would find themselves at an even greater disadvantage. When Congress adopted the Do Not Call rule, telemarketers were able to carve out the "existing relationship" exception. If the company could persuade a consumer to accept a free trial, for example, that constituted a "relationship" and negated the Do Not Call rule.

In its ruling on preliminary injunction, the court specifically ordered Sirius XM to stop making repetitive calls to consumers on the no-call list who notified the defendant they rejected the Sirius XM subscription or after their free trial period expired, unless the consumer expressly authorized Sirius XM to call.

"Our office will continue to prosecute any business, regardless of its size, when it makes unlawful telemarketing calls to Missourians registered on our no-call list," Koster said. "It is a consumer's right to demand that illegal telemarketing calls that violate Missouri's laws stop, and no matter how aggressively it fights, no business is immune from Missouri's no-call law. We will continue to go after those who violate the law."

The findings in the PNC Economic Outlook survey are interpreted as a defensive position that reflects lingering concerns by businesses about the U.S. economy.

The findings in the fall edition of the biannual survey, which began in 2003, also found one out of 10 owners hired or plan to hire qualified employees due to the tax credit offered by the HIRE Act, passed by Congress in the spring.

Growing optimism

Overall, the outlook of small business owners has improved slightly as eight out of 10 (compared with 76 percent in the spring) are moderately to greatly optimistic about their own company's prospects today while 20 percent are pessimistic (vs. 23 percent).

"Until we see a solid pattern of small business hiring and investments re-established, the economic recovery will be a bumpy road, but not another ride over a cliff," said Stuart Hoffman, chief economist for The PNC Financial Services Group, Inc. "These findings support PNC's view that the economy will remain transitional for the rest of 2010 and into the first half of 2011 -- with weak but persistent 'half-speed' real GDP and job gains."

Capital spending, sales, hiring

The survey, which gauges the mood and sentiment of small and medium sized business owners, found almost two-thirds (63 percent) plan to increase capital spending during the next six months. This is a significant increase from 49 percent in the spring.

Technology equipment spending leads the list of priorities as owners look to maintain their operations without adding additional employees.

The next six months

· Improved Access to Credit: While three out of four business owners (76 percent compared with 78 percent in the spring) do not intend to seek a new loan or line of credit, they do see greater access to financing. Thirteen percent (vs. nine percent in the spring) says it's easier to obtain credit while 44 percent (vs. 38 percent in the spring) say it's neither easy nor difficult compared to three months ago.

· Stalled Sales and Profits: Fewer than half (42 percent) expect their sales to increase versus 47 percent in the spring. In terms of profits, 31 percent expect an increase, as opposed to 37 percent in the spring.

· Hiring Outlook Improved: 22 percent expect to hire full-time employees, the same as spring and significantly better than one year ago (17 percent). Only 12 percent plan to reduce their workforce compared with 14 percent in the spring and 18 percent one year ago. Manufacturing companies are most likely to hire followed by the service industry.

· Still Waiting for U.S. Recovery: The overwhelming majority (91 percent) say the U.S. economy has yet to make any notable improvement. Seven out of 10 (71 percent) feel the recovery is more than one year away versus 20 percent who expect improvement within the next 12 months.

· Local View Is Better: The sentiment is slightly less negative closer to home as 57 percent are optimistic and 42 percent are pessimistic about the prospects for their local economy. This compares with 41 percent optimistic and 58 percent pessimistic for the U.S. economy.

· What's Your Worry?: One out of three (34 percent) say weak sales/demand for service is the most important challenge facing their business today. Their second concern -- at 21 percent -- is "changes in government policy that affect my business." These far outdistanced health insurance (12 percent) and taxes (11 percent).

Read more about Employment

Having said that, bear in mind that it's not uncommon for people to mix up or use the wrong fluids in their cars, and if they do, the results can vary from irritating to deadly.

"Adding antifreeze to the windshield-washer reservoir might just create a slimy mess," says David Champion, senior director of Consumer Reports' Auto Test Center in East Haddam, Connecticut. "But a British health study found that filling the reservoir with only water creates a good breeding ground for the bacterium that causes Legionnaires' disease.

Consumers should check their owner's manual before they top off any fluids under the hood of their car," Champion said. People should check with a mechanic, or even the folks behind the counter at the local auto parts store, if they have any doubts.

What to do and what NOT to do

Here are some warnings from the car experts at Consumer Reports about what else could happen if you use the wrong fluids:

1. Motor oil slip-ups. The brand of motor oil matters little, but its viscosity grade (10W-30, for example) is important. Use only what the owner's manual specifies. Using the wrong oil can lead to reduced lubrication and shorter engine life. If the manual says to use synthetic oil, do so. Contrary to what some believe, adding synthetic oil to regular oil won't harm the engine, but there's also no benefit in doing so.

2. Battery fluid. Some car batteries have accessible individual cells that might need replenishing with a little water to cover the lead plates. Use only distilled water, which contains no salts or minerals. If tap water is added to a battery's electrolyte liquid, it can allow minerals from the water to build up on the battery's internal lead plates, which will reduce the battery's power and shorten its life.

3. Be cool with the water. A car's cooling system uses a blend of water and antifreeze; properly called coolant, at concentrations (typically 50/50) designed to keep it from freezing on a cold day and boiling on a hot one. Adding too much water to the mix can make it more susceptible to freezing and boiling. That can keep the car from starting when it's freezing and cause overheating in warmer weather. Tap water could also lead to mineral buildup in the cooling system, reducing its effectiveness.

4. Adding diesel fuel to a gasoline-powered car's tank. This will make the engine stumble and knock, if it runs at all. Fortunately, diesel pumps have oversized nozzles, so that mistake is hard to make. Depending on the quantity of gasoline that's added to a diesel vehicle's tank, it could do little harm or it could damage the fuel pump, injectors, and other parts. If the mix-up is caught soon enough, a technician can limit the damage by draining the contaminated fuel. Meanwhile, don't run the engine.

5. Special sauce for your brakes. Brake systems use hydraulic fluid that's specially formulated for the purpose. Substituting transmission or power-steering fluid, which are similar to each other, can affect the seals, damage the system, and possibly cause brake failure. Note that if the brake fluid is low, your vehicle probably needs brake-system service anyway. Either the brakes are worn or there's a leak.

6. Glued-up gears. Automatic transmissions must only use the fluid specified by the automaker, such as General Motors' Dexron series or Toyota's Type T. Using the wrong fluid can cause poor lubrication, overheating, and possibly transmission failure. A mechanic might not be able to reverse the damage, even by flushing the transmission. Mistakenly adding motor oil or brake fluid can also destroy your transmission.

7. More washer-fluid no-nos. In addition to creating the perfect environment for deadly bacteria, water doesn't clean as well as washer fluid and is subject to freezing. Using household glass cleaners or ammonia can leave suds on the windshield, damage a car's finish, and get into the air-intake system and create a potentially noxious environment in the cabin.

"These defendants dangled the term 'forensic loan audit' as a sure-fire remedy for the mortgage problems of homeowners in distress," Brown said. "In fact, it was no remedy at all, and hundreds of desperate California homeowners took the bait and lost their money -- and sometimes their homes."

Brown filed the $60 million lawsuit against US Loan Auditors, My US Legal Services, and five individuals, including two attorneys, who operate a fraudulent mortgage audit scheme that preys on desperate homeowners anxious to save their homes. The suit demands civil penalties, restitution for victims, and permanent injunctions to keep the companies and other defendants from fraudulently marketing forensic loan audits and legal services of little value.

The companies, based in Rancho Cordova, work together to market and sell "forensic loan audits" to homeowners, who pay thousands of dollars in up-front fees for a dubious computer-generated review of their mortgages. The audits purport to show violations of law by lenders, which sales agents cite to convince homeowners they have a strong legal case. Sales agents use these findings to encourage homeowners to stop making their mortgage payments and instead pay additional fees to bring "predatory lending" lawsuits against their lenders.

Brown said both companies deceive homeowners by assuring them that filing these lawsuits will give them "legal leverage" to obtain a loan modification and prevent lenders from foreclosing or collecting monthly mortgage payments. Homeowners who filed these lawsuits have lost thousands of dollars and placed themselves in greater danger of losing their homes.

My US Legal Services bilks clients for months, filing cookie-cutter complaints with little or no merit, billing unjustified monthly fees, and then dodging clients' phone calls or stringing them along with false assurances that a settlement is in progress, the lawsuit alleges.

Hundreds of California homeowners, many of them facing possible loss of their homes, have been duped into paying thousands of dollars to the two companies -- one homeowner paid more than $55,000 -- but received little or no relief, according to court documents.

Meanwhile, Brown said the "litigation mill" run by My US Legal Services has littered courts with hundreds of lawsuits that have scant chance of success. Two federal judges have expressed concern about the legitimacy of these lawsuits and have several times sanctioned attorneys involved.

In addition to the companies, Brown is suing the three owners: attorney and real estate broker James Sandison, Jeffrey Pulvino, and Shane Barker, as well as two California attorneys, Sharon L. Lapin and Jonathan G. Stein.

The State Bar filed disciplinary charges Tuesday against Sandison for alleged misappropriation of clients' funds and aiding the unauthorized practice of law.

If you are a California homeowner who has been scammed, you can file a complaint online with the Attorney General's office at: www.ag.ca.gov/consumers/general.php. You can learn more about avoiding scams and obtain a complaint form by visiting the Department of Real Estate's website at: www.dre.ca.gov.

If you have a complaint against Sandison, Lapin, Stein or any other lawyer involved in a loan modification or foreclosure relief service, contact the State Bar Complaint Hotline at 1-800-843-9053. Complaint forms and an explanation of the attorney discipline system are available online at: www.calbar.ca.gov.

New York Mayor Michael Bloomberg has proposed preventing the 1.7 million New Yorkers on food stamps to use them to purchase sugary soft drinks. New York Governor David Patterson has endorsed the idea, which must also be approved by the U.S. Department of Agriculture, which administers the program.

Bloomberg says Americans now consume an average of 200 to 300 more calories each day than they did 30 years ago. Nearly half of these calories come from sugar-sweetened drinks, which can contain as many as 16 packets of sugar in a 20-ounce bottle and a staggering 26 packets in a 32-ounce serving.

Even moderate consumption of these products can have health consequences. In a study of 91,000 women, those who drank one or more sugary drink each day were 83% more likely to develop diabetes over a four-year period than those who drank less than one a day. In New York City alone, diabetes causes 20,000 hospitalizations, 3,000 amputations and 4,700 deaths every year.

New York City Health Department statistics released last month show nearly 40 percent of public school children, through eighth grade, are overweight or obese. Bloomberg's crackdown on obesity follows his campaign against smoking and trans-fat. The city's health department has produced a YouTube video to drive its message home.

"Roughly three out of five New Yorkers are overweight or obese, and sugary beverages are fueling the epidemic," said Dr. Thomas Farley, New York City Health Commissioner. "While this video is lighthearted, its message is serious. The sugar consumed in these drinks can lead to obesity and other health consequences, including diabetes and heart disease. We hope that this campaign will encourage people to consider healthier alternatives to sugary drinks, such as water, seltzer or low-fat milk. Even small changes can have real health benefits."

The U.S. Food and Drug Administration is trying to shut down Juices Incorporated, a Brooklyn, N.Y., company that bottles a variety of fruit juices. The FDA says the company is using unsafe practices that could expose consumers to botulism and other potentially deadly illnesses.

Drinks manufactured by the company, also known as Juices International and Juices Enterprises, include: Double Trouble Carrot Punch, Carrot Juice Drink, Carrot & Ginger Drink, Beet Carrot Juice Drink, Agony Peanut Punch, Cashew Punch, and Irish Sea Moss. Other company products stored at the facility during FDA visits were: Front End Lifter Magnum Punch, Ginger Beer, Sorrell Drink, Pineapple Twist and Soursop Juice.

Among the violations FDA investigators said they observed at the company's plant were failures to:

• adequately heat and refrigerate low-acid vegetable juices to destroy or prevent growth of dangerous microorganisms

• properly clean food-contact surfaces

• maintain plumbing in a manner that avoids a source of possible food and water contamination.

Failure to identify and control food hazards could lead to the formation of Clostridium botulinum (C. bot.) bacteria that can germinate in the carrot and beet juices made by the company. The neurotoxin formed by C. bot., when ingested in even very small amounts, could cause paralysis, difficulty breathing and potentially death from asphyxiation. In 2006, six cases of botulism in the United States and Canada were linked to refrigerated carrot juice. However, the FDA said it is not aware of illnesses associated with Juices Incorporated's juice products.

The complaint filed by the U.S. Justice Department today also charges Juices Incorporated with failing to conform to current good manufacturing practice (GMP) requirements for making, packing, or holding human food. Juice products that are produced under conditions that do not comply with HACCP or GMP requirements are considered adulterated under the Food and Drug Act.

The FDA said its most recent inspection of the Juices facility in March 2010 found the same or similar violations observed during previous inspections of the company. The agency issued warning letters to the company in April 2008 and October 2009, and the company promised to bring its operations into compliance but did not make the necessary changes.

"Today's action shows that FDA will seek enforcement action to make sure that those companies that must have preventative controls in place to ensure the safety of their products adhere to all applicable requirements," said Associate Commissioner for Regulatory Affairs Dara A. Corrigan.

"Consumers must have a comfort level that the products they buy in their markets are safe to eat and to drink," said Loretta E. Lynch, the United States Attorney for the Eastern District of New York. "We will continue to act with the FDA to ensure that companies that produce food and juice under dangerous conditions take corrective action."

The company purchases ingredients, such as carrots and beets, that originate outside of New York and sells products to food service establishments primarily in New York, New Jersey, Connecticut and Pennsylvania.

The federal agency found that the rate at which American men died from prostate cancer declined from 23.5 deaths to 13 deaths per 100,000 males during the period.

The analysis also shows that following changes:

· Compared with white men, black men were still more than twice as likely to die from prostate cancer in 2006 just as they were in 1999, 69 to 50.5 deaths and 29 deaths to 22 deaths per 100,000 males during the period.

· The rate for Hispanics and Asian-American Pacific Islanders declined from 23 to 18 and from 17 to 14 , respectively per 100,000 males.

· Men age 65 and older were 20 percent less likely to succumb to prostate cancer in 2006 compared with 1999. Their rate plummeted from 205 deaths to 164 deaths per 100,000 males.

While AHRQ didn't give a reason for the decline in deaths, it's likely that early detection was a major contributor. In current clinical practice, men with elevated levels of Prostate Specific Antigen (PSA) are considered at risk of having prostate cancer.

PSA is a substance produced by the prostate gland and, when increased amounts are found in the blood, patients are typically referred for diagnostic biopsies to confirm the presence of prostate cancer. A regular PSA test can give doctors a head start on treatment.

Predictor

A recent study published in the British Medical Journal found that a man's PSA level measured at age 60 could predict his lifetime risk of dying of prostate cancer.

Dr. Hans Lilja, of Memorial Sloan-Kettering Cancer Center in New York and colleagues studied data from 1,167 Swedish men 60 years of age who provided blood samples in 1981 and were followed up to age 85. Only a minority of men age 60 with PSA levels higher than 2 ng/mL experienced fatal prostate cancer, but those men comprised 90 percent of the prostate cancer deaths.

Men with a PSA level of 2 or higher at age 60 have 17 times and 26 times increased odds of metastasis and death from prostate cancer, respectively, than men with PSA levels of 0.65-0.99, according to the study.