Current Events in January 2011

There’s a common misperception that it cost more money to eat healthy. And that is often given as an excuse by those on a limited budget who turn to fast food and other relatively inexpensive snack foods as to why their diets lack key nutrients.

In reality, eating healthy doesn't mean you have to spend more money at the supermarket.  In fact, a new guide in the March 2011 issue of ShopSmart magazine has found a variety of food and drinks that are nutritious even for those on strict food budget.

Lisa Lee Freeman, editor-in-chief of ShopSmart, says “all it takes is a few tweaks to your shopping list. For example, just grabbing black beans over white ones or canned tomatoes instead of fresh can make a difference."

ShopSmart's "Get the Most Nutrition for Your Money" includes healthful food bargains grouped by nutrient -- antioxidants, fiber, protein, and more -- to make meal planning easier, prep tips for making tasty dishes with 25 healthful food bargains, six super seasonings to fire up the flavor of your dishes, and storage advice so you can stretch your dollars even more. Here’s a sample:

1. ANTIOXIDANTS

Cheap ways to get a super nutrient fix

• Cabbage  (16  cents  per  serving;  $2.50  for  one  medium  head): Cabbage is loaded with Vitamins A  and C. Try an Asian-inspired  slaw of shredded cabbage, cashews, and a lime juice and sesame oil vinaigrette. Wrap in a perforated plastic bag in the refrigerator to store for about two weeks.
• Canned unsweetened pumpkin  (38 cents per serving;  $1.32 per 15-ounce can):  The bright orange hue is a tip-off to high levels of beta carotene, which might help protect vision. Substitute it for sugar in muffins and blend it with Greek yogurt for a pudding-like treat. Stock up when it's on sale; cans will keep for about two years.

2. CALCIUM

Feed your bones for less than $1 per serving

• Nonfat dry milk powder (17 cents per reconstituted cup; $5.99 per 26-ounce container): This is just milk that has had the water removed, so it equals the calcium and protein of regular milk for about 10  cents less a serving. Stir spoonfuls  of  milk powder  into casseroles and mashed potatoes. Like regular milk, reconstituted milk must be refrigerated.
• Plain yogurt (70 cents per serving; $8.39 per case of 12): It's a quick and handy way to get calcium, and is also brimming with protein and good bacteria that aid digestion. For flavored yogurt at a fraction of the calories, stir in vanilla extract or an all-fruit spread. Yogurt also makes an excellent swap for cream in soups and desserts or sour cream on potatoes. Keep refrigerated for two to three weeks.

3. FIBER

Stay regular for less than 50 cents a serving

• Quinoa  (50  cents per serving; $3.99 per 12-ounce package):  Quick-cooking quinoa has almost 50 percent more fiber than brown rice, plus a dose of protein. Simmer with milk and honey for a comforting hot breakfast,  or use quinoa in place of rice. Keep in a cool, dark place in an airtight container for about one year.
• Popcorn  (12 cents per serving; $1.89 per 28-ounce bag): Popcorn eaters get about 22 percent  more fiber than non-popcorn eaters. Don't pile on calories with butter: spritz air- popped corn with cooking spray and toss with chili powder or oregano. To keep kernels from drying, store in an airtight container.

4. PROTEIN

Fuel up for as little as 18 cents

• Dried black beans  (24 cents per  serving; $1.45 for 16-ounce bag):  All beans are  stellar sources of protein, fiber, and blood-pressure-friendly potassium, but dark beans pack more nutrients. For a more healthful taco filling, use less lean ground beef and mix in mashed-up beans. Keep dried beans airtight to have them last for years.
• Peanuts in the shell (12 cents per serving; $1.99 for 16 ounces): They're a cheap protein fix, and they shell out more than 30 essential nutrients, including a phytochemical linked to a reduction in heart disease and cancer risk. Coat fish fillets with finely-chopped nuts before baking, or keep some in your office or car for a terrific pick-me-up. Refrigerate nuts in the shell for up to nine months.

OMEGA-3

Heart-healthy bargains

• Frozen  shrimp  ($1.36;  $14.99  per  2-pound  bag):  Frozen  shrimp  is  a  low-calorie  and relatively cheap source of omega-3s. For a quick meal, sauté shrimp with garlic and finely diced sun-dried tomatoes and serve on salad greens. Stash in the freezer as soon as you get home, and use within a year.
• Flaxseed (11 cents per serving; $1.79 per 16-ounce bag): This mighty seed has omega-3s and other fatty acids linked to immune-system strength, cardiovascular health, and cancer prevention. Whole flaxseeds pass through the body undigested, so grind them in the coffee grinder first, and mix the seeds with spices to sprinkle on beans, grains, and salads. Store flaxseed in a dark, dry, and cool place for two to three months.

Launched in 2006 by Consumers Union, publisher of Consumer Reports, ShopSmart features product reviews, shopping tips on how to get the most out of products and "best of the best" lists.

The National Association of Independent Housing Professionals says a growing number of state and local governments are now offering what are called "down payment assistance programs" which are grants or low- and no-interest loans to first-time buyers or those who haven't owned a house in a few years.

The president of the advocacy group, Marc Savitt, estimates the number of programs to be somewhere around 1,000 nationally, and has increased 3% to 5% in the last six months.

At the same time, more banks are now willing to work with borrowers who need down payment assistance, even though these buyers were considered too risky just 18 months ago.

State housing agencies say they're seeing the biggest spike in lender interest since before the housing downturn. Florida's down payment assistance agency now works with 65 lenders, up 12% from a year ago and the number of participating lenders in North Carolina has grown 22%.

To qualify, you have to be considered a low- and middle-income buyers who has either never owned a home, or hasn't owned one in a few years . The income limits vary from state to state as well as locality. But once you qualify, the benefits can be substantial.

The programs offer up to $80,000 in loans with interest rates from 0% to 2% to people with little or no money to put down. And then, because participants often have to get their mortgage through the programs' preferred lenders, the primary mortgage rates are also low, often 0.75% to 1% lower than average rates. That can be a better deal than Federal Housing Administration-insured mortgages, which require annual mortgage insurance and an upfront fee, and may have higher interest rates.

Good idea?

Even for cash-strapped states like California, these programs are apparently worth the cost. This is a way to boost homeownership, which some economists say leads to more jobs and higher home prices. Not everyone agrees.

Keith Gumbinger, a vice president at HSH.com, which tracks mortgage data, says that borrowers who “don't put any of their skin in the game – or very little of it – are more risky." He points out that such borrowers tend to have higher incidents of default—even if they have prime credit.

Scott Stern, CEO of Lenders One, has a different view. The mortgage banker argues that assisted buyers are a lower-risk proposition these days, mostly because banks are still lending to borrowers with high credit scores and detailed income documentation.

There is no official database of all the programs in the country, but SmartMoney magazine asked mortgage lenders and realtors for help in compiling a list of programs. It found seven that were relatively generous.

1. California Housing Finance Agency's School Facility Fee Down Payment Assistance Program

What You Get : First-time home buyers or buyers who haven't owned a property for at least three years purchasing a newly-constructed single-family home or condo receive a grant for $5,180 on average for down payment, closing costs or to pay for mortgage costs. The income restrictions vary by county; most generous in Santa Clara at up to $124,200 for family of four and there’s no limit on the purchase price.  The payback terms are exceptional. The grant is forgiven for buyers who stay in the home for at least three years.

2. California's State Teachers' Retirement System -- the 80/17 Program

What You Get : Members of CalSTRS, public school and community college teachers and employees, can get two mortgages -one for 80% of the purchase price and a second for 17%; borrowers put down 3% of their own money. There is no income restriction and combined mortgages can total up to $650,000. Payback terms see interest rates fluctuating and are currently 5.375% and 6.375% and payments on the second mortgage are deferred for the first five years

3. Florida's Housing Finance Corporation Down Payment Assistance Program

What You Get : First-time home buyers can get up to $7,500 in down payment assistance. The income restrictions vary by county; in Palm Beach, that's up to $75,400 for a family of four. The purchase price caps at $466,125 and repayment is deferred for up to 30 years at 0% interest or in some cases until the house is sold.

4. New York City's Department of Housing Preservation and Development's HomeFirst

What You Get : First-time home buyers can get up to $25,000 for down payment or closing costs for a one- to four-family home, condo or coop. There are strict income restrictions with a cap at 63,450 for a family of four. The purchase price is up to $729,750. As for payback terms, a zero-interest loan; borrowers who live in their home for at least 10 years don't need to pay back.

5. North Carolina Housing Finance Agency's Down Payment Assistance

What You Get : First-time home buyers are those who haven't owned a home in three years can get up to $8,000 for down payment or closing costs. Income restrictions vary by county; in Mecklenburg where Charlotte is located, it's $53,750 for a family of four. Purchase price is capped at $220,000. Repayment is deferred for up to 30 years at 0% interest or until house is sold, refinanced, turned into a rental property, or the mortgage goes into default at which time full payment is owed.

6. Mayor's Office of Housing of the City and County of San Francisco Down Payment Assistance Loan Program

What You Get : First-time home buyers who've never owned a property can get up to $100,000 or 20% of the purchase price, whichever is less, for a single-family house, condo or co-op. Income is capped at $119,300 for a family of four and the top purchase price is up to $637,645. The loan is deferred for 40 years at 0% interest from the date of purchase or until the property is sold or rented; the amount due is the size of the loan plus the appreciation of the property.

7. West Virginia Housing Development Fund's Homeowner's Assistance Program

What You Get : Buyers who haven't owned a home in three years can get up to $15,000 for down payment or closing costs in Jefferson County, a popular hub for Washington D.C. commuters. Income is restricted to $102,900 for three or more person household and the purchase price is capped at $656,775. A 15-year loan that's deferred for the first five years at 0% interest and shifts to 2% amortized during the last 10 years; if the home is sold or turned into a rental property before this period, borrowers repay the balance in full.

The Delaware Attorney General’s Office says it is moving forward with lawsuits against two travel companies that allegedly defrauded dozens of Delawareans.  According to complaints from consumers, Serenity Travel and Destination Vacation International failed to provide promised discounts and incentives to consumers who joined their travel clubs, and failed to pay refunds to consumers and change their business practices under a binding May 2010 agreement with the office.

“Delawareans deserve to be treated with fairness by the companies they do business with,” said Timothy Mullaney, Sr., Director of the Attorney General’s Fraud and Consumer Protection Division. “We’re taking action in court to ensure that customers receive the refunds they deserve and to protect all consumers from deceptive and misleading marketing practices.”

The Attorney General’s Office received more than 70 consumer complaints between June 2009 and May 2010 alleging the travel companies offered discounts on cruises, lodging and other travel products if they attended the companies’ marketing presentations, but then either failed to provide promised incentives or required customers to pay previously undisclosed fees.  

Customers also complained they were pressured to pay to join the travel clubs before they could research the companies, were not provided price quotes at marketing presentations, and that the companies opened credit cards in their names without permission. Serenity, customers said, claimed to have a strong rating from the Better Business Bureau when, in fact, the company had lost its accreditation. Customers also complained of difficulty acquiring the services the clubs advertised.

In May, 2010 the companies agreed to reimburse within 30 days the consumers who had filed complaints for the fees they paid to join their travel club.  The companies also agreed to provide additional customers with discounts that were promised but never delivered, change their marketing practices by clearly disclosing all of the terms and conditions for receiving incentives through written promotions, oral presentations, and the companies’ websites, provide fixed pricing; and make only truthful statements regarding their Better Business Bureau status. 

After the companies failed to provide the promised refunds to a number of consumers, the Attorney General’s Office filed a lawsuit against the companies in August, 2010 seeking customer refunds they had not yet paid along with additional penalties for violating the Delaware Consumer Protection Act.  Moreover, since the May, 2010 settlement agreement, additional consumers have complained that Serenity has failed to change its marketing practices, as required, by continuing to:

• advertise "gifts" and free travel incentives that were never provided and in fact carried fees
• engage in high pressure sales techniques such as substantial "one day only" price drops
• misrepresent their accreditation with the Better Business Bureau
• opened credit cards without the consumers' full knowledge and consent, and
• fail to fulfill the type and price of travel available to Serenity members

Ongoing attempts to secure the unpaid refunds have failed and the Department will be moving forward with this lawsuit as well as a new lawsuit alleging continued deceptive trade practices, including purporting to buy consumers' timeshares in exchange for the consumer joining Serenity's club, requiring additional fees to transfer the timeshare, and using major travel brands on advertising and marketing when Serenity was not in fact affiliated with those brands. 

About 198,000 GE and Professional Series brand dehumidifiers are being recalled. A component in the dehumidifier's compressor can short circuit, posing a fire hazard to consumers.

Midea and GE have received a total of 14 reports of incidents involving smoke and fumes emitting from the unit and eight reports of fires. In six of the reported fire incidents, property damage extended beyond the unit. No injuries have been reported.

This recall involves 30-pint and 40-pint portable dehumidifiers manufactured between November 2006 and August 2007, and during April 2008. The dehumidifiers are white with a front-loading water bucket. "GE" or "Professional Series" and digital controls are located on top of the dehumidifier. Model and serial numbers are located on the back of the dehumidifiers. Model and serial numbers included in the recall are:

Walmart, Sam's Club, Home Depot, Menards and other retail stores sold the dehumidifers nationwide from February 2007 through June 2009 for between $140 and $180. They were made in China.

Consumers should immediately stop using the recalled dehumidifiers and contact Midea to determine if their product is included in the recall. Consumers with recalled dehumidifiers will return their product to an authorized service center for a free repair. Consumers should not return the recalled dehumidifiers to the place of purchase.

For additional information, contact Midea toll-free at (877) 593-8721 between 8 a.m. and 5 p.m. ET Monday through Friday, or visit the firm's website at www.recallverification.com

With Valentine's Day just around the corner, single men and women tend to become vulnerable as their thoughts turn to finding love if they don’t already have it. Unfortunately, according to Donna Andersen, author of Love Fraud, there are people who don’t care about love, may not even know what love is, and get into relationships for other reasons such as power, control, sex and quite often money.

These people, Andersen says, are called sociopaths. Many of us, due primarily to television, movies and novels, think of sociopaths as deranged killers, but most of them never kill anyone. Andersen says they are however social predators who exploit just about everyone they meet. They have no heart, no conscience and no remorse and they will scam and not love you.

Experts estimate that up to 4% of the population may be sociopaths, depending upon whom you ask. That means there may be as many as 12 million sociopaths in the U.S. alone. What's worse, as adults, it’s believed that sociopathic men and women cannot be rehabilitated.

Andersen learned about sociopaths the hard way -- by marrying one. She says her sociopath husband took $250,000 from her, cheated with at least six women during a two-year marriage, had a child with one of them, and 10 days after Andersen left him, married the mother of the child.

Based on her experience, and the experiences of thousands of others, Andersen has compiled the following list of warning signs that a romantic interest may, in fact, be a sociopath. Here’s what to watch out for:

   1. Charisma and charm. They're smooth talkers, always have an answer, never miss a beat. They seem to be very exciting.

   2. Enormous ego. They act like the smartest, richest or most successful people around. They may actually come out and tell you that.

   3. Overly attentive. They call, text and e-mail constantly. They want to be with you every moment. They resent time you spend with your family and friends.

   4. Jekyll and Hyde personality. One minute they love you; the next minute they hate you. Their personality changes like flipping a switch.

   5. Blame others. Nothing is ever their fault. They always have an excuse. Someone else causes their problems.

   6. Lies and gaps in the story. You ask questions, and the answers are vague. They tell stupid lies. They tell outrageous lies. They lie when they'd make out better telling the truth.

   7. Intense eye contact. Call it the predatory stare. If you get a chill down your spine when they look at you, pay attention.

   8. Move fast. They quickly proclaim that you're their true love and soul mate. They want to move in together or get married quickly.

   9. Pity play. They appeal to your sympathy. They want you to feel sorry for their abusive childhood, psychotic ex, incurable disease or financial setbacks.

  10. Sexual magnetism. If you feel intense attraction, if your physical relationship is unbelievable, it may be their excess testosterone.

Now we’re not saying everyone who displays all or some of these traits is a sociopath, but according to Andersen, they could be. It’s up to you to follow your gut now that you have some knowledge about what to look for. 

For more information, you can visit: www.Lovefraud.com.

North Carolina officials are claiming victory over a foreclosure rescue firm for the 12th time in the last five years.

North Carolina Attorney General Roy Cooper says his office has obtained a court order barring Reginald Keith Turner, who did business as Hazelton Management and The Carley Group, from ever offering foreclosure assistance services in the state.

The firms previously operated in Charlotte and Colfax, N.C.

"Taking people's money and then failing to help them just pushes homeowners even closer to foreclosure," Cooper said. "We'll keep going after these foreclosure rescue schemes that prey on fear and promise false hope."

Illegal advance fees

Under North Carolina law, it's illegal to charge an advance fee for help with foreclosure or loan modifications, a change Cooper fought for in 2005 after his office began to hear complaints from consumers.

Foreclosure assistance and loan modification scams typically operate by getting struggling homeowners to pay upfront for help saving their homes. In most cases, the scammers rarely do anything to help the homeowners, instead keeping their money and leaving them even deeper in trouble.

In 2010, 251 consumers filed complaints with the Attorney General's Consumer Protection Division about foreclosure and loan modification scams, down from 2009, when 448 consumers filed similar complaints. To fight the scammers, Cooper's office has taken 12 foreclosure rescue operations to court, winning judgments of more than $1 million including refunds for consumers.

Number 1 scam

Several other states have also been active in fighting foreclosure fraud. In fact, foreclosure rescue topped ConsumerAffairs.com's list of the Top 10 Scams of 2010.

In this latest case, Wake County Superior Court Judge Lucy Inman agreed last week with Cooper's request for a default judgment against the defendants. Turner is now permanently prohibited from foreclosure assistance, loan modification and debt relief work in the state. The judgment also orders Turner to pay $32,804 in refunds to 24 consumers and $50,000 in civil penalties to local public schools.

The Attorney General's Office first warned Turner to stop violating the law in late 2008. Instead, Cooper said he reopened his business under a new name, The Carley Group, and proceeded to keep taking consumers' money.

Cooper then filed suit against Turner, alleging that he charged homeowners an advance fee of as much as $2,500 but did little or nothing to help save their homes. Turner shut down his operations and left North Carolina after Cooper won a temporary court order against his foreclosure rescue work in June 2010.  

With a lot of the nation caught in the grips of winter, our thoughts turn to getting away -- preferably somewhere warm -- for a little R&R.

And while vacation should be a time of rest and relaxation, it’s also a prime opportunity for identity thieves who might take advantage of changed routines and more informal settings. 

To guard your identity while vacationing, here are some tips from the Privacy Rights Clearinghouse:

• Clean out your wallet.  Remove unnecessary credit cards, your Social Security card, and other unneeded documents that could compromise your identity if lost or stolen while on vacation.
• Photocopy or make a list of the remaining contents of your wallet.  Keep it in a secure and locked location or with a trusted individual at home whom you can contact in case your wallet is lost or stolen.
• Do not leave your wallet or any documents containing personal information in your hotel room unattended.  Use a hotel safe when available.
• Use traveler's checks or credit cards for payment and leave your checkbook in a secure locked place at home.
• Use credit cards instead of debit cards.  This reduces your vulnerability to having your checking account emptied while you are on vacation.
• Guard your credit card receipts and car rental agreements, particularly if they contain your full credit card number.
• If you plan on using an ATM card during your vacation, use one that does not have debit card privileges (for example one that requires a PIN and does not contain a Visa or MasterCard logo).  You can ask your bank to change an ATM/debit card to one that is "ATM only." It's best to use ATMs found at banks or credit unions and that are in well-lit areas.
• Ask your post office or a trusted neighbor to hold your mail for you.  Mail that is left in an unlocked mailbox is a goldmine for identity thieves.
• If you are bringing your laptop with you, be very careful when using it to access online banking or other password-protected services from wi-fi networks. Be sure to use wi-fi “hotspots” that are secure.
• If you are using cyber-cafés or other public access Internet facilities rather than bringing your laptop with you, be aware that keyloggers (software that can track your keystrokes) may be tracking you.

Since reverse mortgages are set up to pay the home occupant each month, it’s rare to find homeowners faced with foreclosure and eviction. But that appears to be the case with some seniors -- potentially thousands -- who have reverse mortgages but have fallen behind on their property taxes or homeowners insurance.

According to the Federal Housing Administration (FHA) which provides insured protection for most reverse mortgages through its Home Equity Conversion Mortgage Program (HECM),  lenders in the HECM program are responsible for keeping all tax and insurance payments current. But if homeowners stop making payments, lenders are allowed to access any remaining home equity to pay taxes and insurance premiums. Once homeowner funds are exhausted, lenders are legally required to advance their own funds for such payments and seek reimbursement from homeowners.

Fund at risk

FHA, part of the U.S. Department of Housing and Urban Development (HUD), said in arecent press release “these unpaid debts and lender advances have resulted in an untenable situation that could put the FHA Insurance Fund at risk and result in foreclosure proceedings against delinquent seniors.”

While the volume of HECM loans has averaged about 100,000 a year, that number dropped last year as growing loan losses prompted the FHA to tighten its loan underwriting standards. Currently, FHA says there are nearly 520,000 still-active reverse mortgages on its books.

In a letter to reverse mortgage lenders, HUD has ordered them to provide the agency with detailed delinquency reports by February 7. According to CNN-Money, which referred to unconfirmed industry reports, up to 20 percent of HECM loans may be in some stage of non-compliance. A HUD spokesman refused to provide any number.

Senior owners on notice

Meanwhile, HUD rules issued recently to formalize the foreclosure process direct lenders to notify all delinquent customers by April 29 of their need to take steps to solve their problem or face foreclosure. The agency also said it's providing nearly $3 million to several consumer groups to offer stepped-up counseling to troubled borrowers.

"We understand that some senior citizens have not paid their taxes or insurance for some time and may be at risk of losing their home," FHA Commissioner David H. Stevens said in a press release explaining the new policy. “While the guidance is intended to help elderly homeowners avoid foreclosure, lenders may have no choice if these defaults are not cured."

To avoid problems with unpaid property charges in the future, FHA recently enhanced the HECM program's pre-closing counseling requirements. "Counselors must now place a greater focus on educating borrowers on how important it is that they fulfill the terms of the mortgage, including the requirement that borrowers make timely tax and insurance payments. In addition, counselors can now employ a new financial tool which helps identify potential budget shortfalls," the press release said.

According to the HUD letter to lenders, some consumers may have up to two years to repay tax and insurance funds to their lenders. The agency is urging lenders to foreclose on loans only as a last resort, but noted that foreclosure decisions rest with the lenders, not the agency.

For those in a hurry to get their hands on their federal tax refund, but who don't want to incur the expense of a refund anticipation loan (RAL), the Internal Revenue Services' (IRS) e-file system offers a free alternative. And it's just about as fast.

But how exactly do you use the e-file system, you ask? If you have a computer with an Internet connection, it's simple. If you don't, ask your tax preparer to e-file. It might end up saving you money.

First, before going to the IRS website, take the time to get all your tax information together -- you'll save time and won't have to stop in the middle of preparing your current year tax return to find a missing document.

What you need

Here's what you'll need:

• Social Security numbers for yourself, your spouse, and any dependents.

• Forms W-2 from all employers are required for yourself and your spouse.

• Forms 1099 for Dividends, Retirement, or other income, or any Forms 1099 with Income Tax Withholding.

• Receipts for expenses for Itemized Deductions (Schedule A).

• Receipts and records for other income or expenses.

• Bank Account numbers (for a fast refund, or to pay electronically).

• Prior year Adjusted Gross Income amount or prior year PIN if using a Self-Select PIN as your signature.

Three options

You have three options for using e-file. You can use a computer connected to the Internet, use the IRS's Free File service, or have a tax professional e-file the return for you.

If using a tax preparer, be sure to take all your information with you, and don't forget to ask for IRS e-file. That way you'll get your refund faster and the tax preparer is less likely to make mistakes.

If you're filing the return yourself online, just answer the simple questions in your tax preparation software, and the software will do the rest for you. For faster refunds, or to pay when you want to, have your bank account number handy.

If you're using the Free File service, visit the IRS web page by clicking here.

State returns?

Okay, now that your federal return is filed, what about your state return? Depending on where you live, the IRS e-file system might work for that too.

Federal/State e-file allows the electronic filing of both Federal and state income tax returns at the same time. The electronic filing software places your Federal and state return data in separate packets. These packets are transmitted to the IRS in one taxpayer "envelope." The IRS functions as an electronic post office for the participant state, which receives and processes the state electronic return.

Which states participate? According to the IRS, 38 of the 50 states are taking part this year. You'll find a complete list here.

Using e-file to file both federal and state returns is not just easier, it puts money in your hands faster. Your tax return is processed quickly which means at the IRS, and in most states, you can have your refund direct deposited into your checking or savings account. Your refund is received twice as fast. The IRS and participating states can process your e-file returns much more quickly than those that are filed on paper.

Tax preparation software eliminates errors you may make, and e-file processing of the Federal and state return eliminates most errors. You can meet your Federal and state tax obligation at the same time. The IRS and state agency will let you know that your return has been received and accepted.

While America's overall unemployment rate has dropped to a 19-month low, the jobless rate among young military veterans continues to rise.

Bureau of Labor Statistics figures released January 7, 2011, showed a national unemployment rate of 9.4 percent in December -- a drop of 0.4 percent from the previous month.

Conversely, unemployment among those who have served in the Armed Forces since September 2001 rose from 10 percent in November to 11.7 percent in December.

Disheartening trend

"This disheartening trend demonstrates the continuing difficulty that veterans, especially young ones, are having in finding work in a job market composed primarily of non-veterans," said Jimmie Foster, national commander of The American Legion.

Foster said young veterans face job-seeking hardships for a number of reasons.

"Primarily, employers resist hiring people, such as veterans, who have been out of the domestic workforce for an extended period of time," he said. "Besides that, some potential employers have difficulty understanding how specialized skills and expertise gained in the service translate into their own needs."

Despite having specialized skills, it seems many young vets are just as qualified to work as civilian job-seekers.

Comparable skills

Most Iraq and Afghanistan veterans are men, 25 to 34 years old. Forty-six percent have some college education or an associate's degree, compared with 28 percent of their non-veteran counterparts.

The Bureau of Labor Statistics reports that "veterans from Gulf War-era II were much less likely to be high school dropouts (2 percent) than were non-veterans (14 percent)."

"Clearly, young veterans are very attractive job candidates," Foster said.  "And part of what The American Legion does is to communicate that fact to potential employers at job fairs, small business workshops, and other events we sponsor that help veterans get back into the civilian work force."

Job fairs

The American Legion, in partnership with RecruitMilitary.com, conducts a number of veterans job fairs nationwide throughout the year.  

Events are scheduled this month in Ft. Walton Beach, Fla. (13th), Tampa (20th) and Nashville (25th).  A Legion-sponsored small business development workshop for veteran entrepreneurs who wish to do business with the federal government is set for March 22 in Washington.

Every time I read about the “new” technology known as cloud computing I hear in my mind that old Rolling Stones song, “Hey You, Get Off Of My Cloud.”

It also brings back memories of working on a computer that stored its files somewhere else in a giant data storage unit, similar to what cloud computing is today.

The bad old days

Every now and then I would try to retrieve an unfinished article only to find it was no longer there because someone had decided to kill it in order to make room for other files. I once threatened to toss someone out the window, my version of “get off my cloud” if he ever killed another file of mine again.  Once the personal computer came along and we got control over our own files that issue disappeared.

Now, I’m afraid, it’s all about to come back with cloud computing.  Fortunately, this time there maybe enough room on these clouds to contain all the data anyone would ever want to store.

Back to the future

Cloud computing has actually been around for a number of years. But now it’s being promoted to consumers as one of the next big things in computer innovations. It is the technology behind web-based services that store your digital files -- whether they’re videos and songs, books and personal photos or back-up data to protect what’s on your hard drive.

It stores everything remotely and offers you access from multiple devices through a browser or downloadable app. A well-known example would be iTunes, which stores all of your music.

Cloud computing was one of the innovations attracting crowds at this year's International Consumer Electronics Show in Las Vegas. It showed music files available anywhere, anytime, movie-sharing among friends, and never again losing hundreds of downloaded television shows along with a lost laptop.

For consumers, the advances could also save money. Those who use on-demand or streaming media services like TiVo, Amazon On-Demand and iTunes could soon be able to buy a movie, a song or an album and store it in the cloud instead of on a hard drive. In fact, hard-drives could go the way of the cassette, floppy disk or eight track tape.

Saving data in the cloud is already cheap -- in small batches. Gmail, for example offers users more than 7.5GB free, or more than 355,000 emails. An extra 20GB per year costs $5. And, once you store that video or song there, you could access it from multiple Internet-connected devices, which eliminates the need to buy multiple copies to cover several devices. Eventually this will eliminate the need to buy DVD or Blu-ray players, or even those external hard-drives.

Advantages

Proponents of cloud computing say remote storage also makes it less devastating to have a device stolen, lost or damaged. Your media won't be lost along with your stolen laptop or iPad.

The advantage of backing up to the cloud, rather than to an external hard drive, for example, is that you can access your data immediately, say, from a loaner laptop.

According to the FBI's National Crime Information Center, laptop computers are the most-stolen device. In 2008, the latest available statistics, more than 109,000 were stolen. And a study conducted the same year by the Urban Institute said incidents of stolen iPods were so high that they actually skewed crime statistics.

People storing data in the cloud might also save money on their actual gadgets, because they might be able to get by with a smaller hard drive and a less powerful processor.  You also won’t have to worry about how much space the latest movie you downloaded will take up on your MP3 player because it won’t be stored there. All this could encourage consumers to buy less expensive netbooks for about $300 instead of more than twice that much for 4GB laptop with 320 GB of storage.

Downside

The downsides are that remote storage in the cloud raises privacy and security concerns. Once again, we will no longer be controlling our data or the measures that protect that data. Amber Yoo, a spokeswoman for the Privacy Rights Clearinghouse urges people to read the fine print to find out who can access your content, and what will happen to it if the company storing it goes under.

She says that if you use such a service, consider retaining any sensitive material on a computer or other hard drive at home, where you can provide virtual padlocks including a firewall and password protection.

As cloud computing goes mainstream, security measures will grow even more important.  Analysts have repeatedly speculated that Apple and Google could both soon announce cloud-based music storage services. Other cloud services will be ready for consumers by this spring. Wireless provider Cricket just rolled out a plan that includes music downloads stored on the cloud.

Vizio is putting video game system OnLive's content on its Web-connected TVs, computers and phones -- letting gamers play from anywhere. And backup service SugarSync is talking up its 5GB free cloud storage, which includes music storage with unlimited streaming of your collection to a phone or browser without downloading.

Then there’s the issue I worry about. Someone thinking there’s not enough space left so they have to kill something. Gartner analyst David Smith says content providers will place limits on capacity and bandwidth and that could hamper the experience initially.

I think I’ll continue to keep a few thumb-drives around just in case. Maybe even a hard drive just to be safe.

Somewhat late to the party, the U.S. Consumer Product Safety Commission (CPSC) is preparing to launch a Web site consisting of complaints filed with the commission by consumers. The new site, www.saferproducts.gov, is scheduled to launch March 11.

Critics have noted that sites like ConsumerAffairs.com and Ripoffreport.com have been doing that very thing for more than a decade, and that online reviews of products and services are now so commonplace as to be almost ubiquitous.

Nevertheless, it literally took an act of Congress to get the agency to at long last take the wraps off the information it collects and stores at public expense. Congress voted overwhelmingly in August 2008 to beef up the CPSC, giving it a bigger budget and more authority to take action against unsafe products.

President Bush signed the measure just a few days later, quelling consumer advocates' fears that he would capitulate to industry objections.

But that doesn't mean that industry groups aren't keeping up their campaign against the public release of consumer complaints.

"We're not opposed to a database," Rosario Palmieri, vice president of the National Association of Manufacturers (NAM), told The Washington Post. "We're opposed to a database that's full of inaccurate information."

In a statement on its Web site, the organization says: "The NAM is leading the fight to improve the law’s implementation and move forward with reasonable improvements to the law."

But consumer advocates say making public information public is only logical.

"This is all about transparency," said Ami Gadhia, policy counsel with Consumers Union. "Commission staffers have worked very hard to ensure that the database is fair to everyone."

The National Highway Traffic Safety Administration has operated a similar site – www.safercar.gov – for years. Information submitted by the public has frequently led to investigations and recalls, including the massive Toyota recall to fix alleged unintended acceleration problems.

Preview scheduled

The agency will provide a preview of the new database tomorrow (Tuesday, Jan. 11) at 10:30 am, Eastern time. The conference will demonstrate the process for filing a complaint and using the site's search function.

The CPSC will have a second preview for industry representatives on Jan. 20. Besides getting a look at the consumer complaint site, manufacturers and importers will be able to sign up for accounts on the site's business portal.

Currently, consumers and others who want to view safety complaints about products must file a public-records request with the CPSC, which then is required to seek permission from the manufacturer or importer before releasing the information. The company can protest the release and sue to stop it.

Even when the CPSC decides that a product is dangerous enough to be recalled, it must negotiate the terms of the recall with the manufacturer, a tedious process that can take years, all while shoppers continue to buy the dangerous items.

Under the new system, consumer complaints will be published 15 days after they are received. Companies that have registered to receive complaints will have 10 days to submit a response, which will be published alongside the complaint.

However, if companies claim a complaint is false or discloses confidential business information, the agency may decide to withhold it.

Consumers who file complaints must provide their identity but the information will not be published and will be available to manufacturers only if the consumer agrees.

The agency will publish only complaints concerning safety – not complaints about reliability, price or quality.

According to research from psychologists at The University of Texas at Austin, growing up poor can suppress a child’s genetic potential to excel cognitively even before the age of two.

While the study found the gains wealthier children show on tests of mental ability between 10 months and 2 years of age can be attributed to their genes, children from poorer families, who already lag behind their peers by that age, show almost no improvements that are driven by their genetic makeup.

However, that doesn’t mean wealthier children are genetically superior to poorer children, it just means they have more opportunities to reach their potential.

These findings go to the heart of the age-old debate over which is more important to a child’s development: “nature” or “nurture.”  They suggest the two work together and that the right environment can help children begin to reach their genetic potentials at a much earlier age than previously thought.

According to Assistant Professor Elliot Tucker-Drob, lead author of the study, socioeconomic disadvantages suppress children’s genetic potentials.

“You can’t have environmental contributions to a child’s development without genetics. And you can’t have genetic contributions without environment,” said Tucker-Drob, who is also a research associate in the university’s Population Research Center.

The study, published in the journal Psychological Science, was co-authored by K. Paige Harden of The University of Texas at Austin, Mijke Rhemtulla of the University of Texas at Austin and the University of British Columbia, and Eric Turkheimer and David Fask of the University of Virginia.

The researchers looked at test results from 750 sets of twins who had taken a version of the Bayley Scales of Infant Development at about 10 months old, and again at about two years of age.

The test, which is widely used to measure early cognitive ability, asks children to perform tasks like pulling a string to ring a bell, putting three cubes in a cup, and matching pictures.

At 10 months old, there was no difference in how the children from different socioeconomic backgrounds performed.

But by two years old, children from high socioeconomic background scored significantly higher than those from low socioeconomic backgrounds.

In general, the two-year-olds from poorer families performed very similarly to one another. That was true among both fraternal and identical twins, suggesting genetic similarity was unrelated to similarities in cognitive ability. Instead, their environments determine their cognitive success.

Among two-year-olds from wealthier families, identical twins (who share identical genetic makeups) performed very similarly to one another. But wealthy fraternal twins were not as similar -- suggesting their different genetic makeups and potentials were already driving their cognitive abilities.

“Our findings suggest that socioeconomic disparities in cognitive development start early,” says Tucker-Drob.

“For children from poorer homes, genetic influences on changes in cognitive ability were close to zero. For children from wealthier homes, genes accounted for about half of the variation in cognitive changes.”

The study notes that wealthier parents are often able to provide better educational resources and spend more time with their children but does not examine what factors, in particular, help their children reach their genetic potentials. Tucker-Drob is planning follow-up studies to examine that question.

When Minnesota consumers opened their telephone bills to find over $15 a month in long distance calling minutes they didn't recall using, they called their attorney general.

As a result, Minnesota Attorney General Lori Swanson has sued a Pennsylvania-based company that she accuses of "cramming" customers' phone bills.

"Cramming" is the practice by which third party vendors put unauthorized charges on a person's phone bill.

"The company slipped unauthorized charges onto people's phone bills," Swanson said.  "Cramming works because most people don't realize that their phone bill can be used like a credit card. Because phone bills are long and hard to read, people don't always catch unauthorized charges."

On the rise

Cramming complaints are on the rise nationwide. The Federal Trade Commission recently called cramming "a significant area of recent consumer complaint," and the Federal Communication Commission (FCC) recently said, "It's a problem that's on the increase right now."

The FCC reported receiving 6,714 cramming complaints in 2009, up from 1,761 in 2005.

Cramming scams were common in the 1990s but eventually receded following a wave of federal and state crackdowns. They are now on the uptick again due to several factors, including the hard-to-read nature of consumer phone bills; the rise of so-called "billing aggregators" that facilitate the posting of charges; and phone companies themselves, which make money by allowing third parties to put charges on customers' phone bills.

In October, 2009 Swanson asked the FCC to promulgate new rules to curb cramming practices, and today she shared the results of her investigation with the FCC. Sen. Amy Klobuchar (D-MN), who joined Swanson at her announcement of the lawsuit, said that the U.S. Senate Commerce Committee is actively investigating phone companies for their role in telephone cramming. In November, Klobuchar called on the FCC to take steps to crack down on the practice.

Taking advantage of technology

"New technology offers more convenience for consumers, but it also offers crooks new opportunities, such as cramming," said Klobuchar. "We need to do more to crack down on this fraudulent practice and prosecute those who engage in it. I commend Attorney General Swanson's work in this area and I will continue to work with her and other federal and state enforcement officials to protect consumers from these scams."

Swanson's lawsuit against Cheap2Dial Telephone, LLC alleges that the company placed charges of over $15 for "dial around" long distance calling minutes on the phone bills of Minnesota residents without their authorization. "Dial around" long distance calling minutes are similar to using a calling card to make long distance calls, minus the actual calling card.

Of the 2,567 Minnesota customers who Cheap2Dial billed since 2008, only nine people  actually used the company's services to make a long distance call, Swanson said.

When the Attorney General's Office asked Cheap2Dial to produce verification that consumers knowingly signed up for the company's services, she said the company supplied the wrong information for many consumers, including incorrect names, emails, and birthdates.

Cheap2Dial's monthly fees ranged from $13.97 per month (for 358 calling minutes) to $14.97 per month (for 383 calling minutes), plus fees and taxes that push the total monthly charges to over $17.

January is not just the month in which you gather your tax records together for tax-filing season. If you plan to attend college in the fall, this is the time to start your search for financial aid.

That search should start with the Free Federal Application for Federal Student Aid (FAFSA). This government-maintained website will walk you step by step through the process, allowing you to apply for Pell Grants, work-study programs and other sources of student financial aid.

An important thing to note at the beginning of the process: the official website address for FAFSA is farsa.ed.gov, not ".com." And as the name implies, this application is free. There is no reason to pay anyone any type of fee for access to this information.

If you go to a ".com" site, you will probably be asked to pay to submit the FAFSA. Remember, this is a free service, so use the official government site to submit your application.

Create an account

When you go to the official FAFSA site, the first step is to create an account using MyFSA. MyFSA is your personal portfolio. When you create your account, the site will provide you with a MyFSA account in which to store all your information.

Completing the application is the first step to be considered for nine federal student aid programs and 605 other state and private institutional aid that is available to college students. The U.S. Department of Education (DOE) begins accepting applications on January 1 each year for the upcoming fall semester.

The application period is up to 18 months long. Most of the aid packages and grants are provided on a first come, first-served basis, so it's wise to submit an application as early as possible.

Federal Student Aid

The aid all eligible individuals can benefit from federally funded financial assistance for education beyond high school. According to DOE, Federal Student Aid plays a central and essential role in supporting postsecondary education by providing money for college to eligible students and families. The government partners with postsecondary schools, financial institutions and others to deliver services that help students and families who are paying for college.

Federal Student Aid performs the following roles:

• Educating students and families on the process of obtaining aid;

• Processing millions of student financial aid applications each year;

• Disbursing billions of dollars in aid funds to students through schools;

• Enforcing financial aid rules and regulations;

• Servicing millions of student loan accounts, and securing repayment from borrowers who have defaulted on their loans; and

• Operating information technology systems and tools that manage billions in student aid dollars.

Three ways to apply

Applicants can use any one of three methods to apply. DOE recommends using the online application, but you can also download and print an application to fill out and send by mail. You may also request a paper FAFSA by calling 1-800-4-FED-AID (1-800-433-3243) or 319-337-5665. If you are hearing impaired, please contact the TTY line at 1-800-730-8913.

When applying, select the school year for which you are applying for financial aid. For example, if you plan to attend college between July 1, 2011 and June 30, 2012, click The 2011-2012 School Year (July 1, 2011 - June 30, 2012). If you plan to attend college between July 1, 2010 and June 30, 2011, click the other link. If you are applying for a summer session, check with your college to verify which application you should complete.

The application consists of more than 100 questions regarding a student, and their family's assets, income and dependency. This information is used to determine what is called the Expected Family Contribution (EFC).

Factors comprising the EFC include household size, income, number of students of the household in college and assets.

On the FAFSA website you'll find a tool for discovering the deadlines for each college in the country. Make sure you know the deadlines for the schools you are applying to and file well in advance.

How much?

How much aid can you receive? It will vary, depending on the grant and your circumstances. Students with low EFCs may receive a Pell Grant of up to $5.500. If you qualify for a work-study program, you can get part-time work and the federal government will reimburse your employer up to 75 percent of your pay.

If you qualify for a Stafford Loan, the government will pay the interest while you are enrolled. The student, of course, must repay the principal. A Perkins Loan is much like a Stafford Loan, but is lent by the school directly.

Criminals posing as Food and Drug Administration (FDA) special agents and other law enforcement personnel are running an international extortion scam.

The criminals call the victims -- who in most cases previously purchased drugs over the Internet or via "telepharmacies" -- and identify themselves as FDA special agents or other law enforcement officials. They inform the victims that buying drugs over the Internet or the telephone is illegal, and that law enforcement action will be pursued unless a fine or fee ranging from $100 to $250,000 is paid.

Victims often also have fraudulent transactions placed against their credit cards.

Victims threatened

The criminals always request the money be sent by wire transfer to a designated location -- usually in the Dominican Republic. If victims refuse to send money, they are often threatened with a search of their property, arrest, deportation, physical harm and/or incarceration.

"Impersonating an FDA official is a violation of federal law," said Dara Corrigan, the FDA’s associate commissioner for regulatory affairs. “FDA special agents and other law enforcement officials are not authorized to impose or collect criminal fines. Only a court can take such action.”

Double whammy

In most instances, victims of extortion-related calls have also received telephone solicitations for additional pharmaceutical purchases from other possibly related, illegal entities located overseas.

The extortionists use customer lists complete with extensive personal information provided through previous purchase transactions. These include names, addresses, telephone numbers, Social Security numbers, dates of birth, purchase histories and credit card account numbers.

Typically, these criminals use telephone numbers that change constantly and make it appear as though their calls originate in the United States.

No known victim has been approached in person by a law enforcement impersonator associated with this scheme.

On the case

The FDA’s Office of Criminal Investigations, with the U.S. Drug Enforcement Administration, and the U.S. Immigrations and Customs Enforcement, Homeland Security Investigations, with the support of various U.S. Attorneys, are pursuing multiple national and international criminal investigations.

Arrests have been made and additional prosecutions are pending; however, the scheme is likely to continue. The FDA has issued similar warnings in the past:

• FDA Warns Public of Extortion Scam by FDA Impersonators 
• FDA Warns Public of Continued Extortion Scam by FDA 

What you can do

Victims of this scheme who have suffered monetary loss through the payment of funds in response to an extortion call, or anyone receiving a telephone call from a person purporting to be an FDA or other law enforcement official who is seeking money to settle a law enforcement action for the illegal purchase of drugs over the Internet may obtain a victim questionnaire by contacting the FDA’s Office of Criminal Investigations  and clicking “Report Suspected Criminal Activity.”

Anyone receiving a purported official document on agency letterhead may verify its authenticity by contacting that organization directly via a publicly available phone number. Additionally, all federal agencies use email addresses with a “gov” email extension.

The FDA also reminds consumers that pharmaceutical products offered online and by telephone by sources of unknown origin can pose a substantial health risk. Products recovered during this investigation that were purchased from online or telephone sources have been found to contain trace amounts of heroin, other undisclosed and potentially harmful active pharmaceutical ingredients, or no active ingredient at all.

Purchases should only be made from licensed pharmacies located in the United States. In addition to the increased risk of purchasing unsafe and ineffective drugs from Websites operating outside the law, personal data may be compromised.

For more on unlawful drug sales on the Internet, see Protecting Yourself.

For the past couple of years, it was enough just to have a job. But now a new survey shows an overwhelming 98 percent American workers who are employed are actually dissatisfied with their  jobs and plan to seek new opportunities this year.

The job site Monster.com recently asked job seekers about their plans for 2011 and found that an only 2 percent of American workers polled indicated they are completely satisfied with their current positions and salaries.

Charles Purdy, Monster.com career-advice expert, says that as the economy starts to get back on its feet, workers are looking for positions that inspire them and challenge them to rise to the occasion. At the same time,  employers are increasingly looking to hire the best people and not just someone who is good enough.

What they're thinking

The new Monster-HotJobs survey also shed additional insight into the mindset of job seekers who -- by and large -- are optimistic about the economic conditions for job opportunities and growth. They also appear to be infused with a newfound passion for their career instead of just sticking with the status quo.

Here’s what the survey found:

• 61 percent said work would be more of a priority in 2011 than in 2010
• Topping 66 percent of job seekers’ career wish lists for 2011 was a new job with a new employer
• 15 percent were hoping for a raise or promotion at their current employer
• 17 percent were hoping to become self-employed
• only 2 percent were happy with the status quo
• 42 percent were hopeful and expected job or employment conditions to improve

This tax season there will be fewer options for a refund anticipation loan (RAL), but that doesn't mean taxpayers who need their refund quickly can't get it. In fact, most consumer advocates say the shortage of pricey RALs will turn out to be a positive for consumers.

While getting an RAL might seem easy, it comes at a pretty steep price. Especially when you consider there are lower cost, and even free alternatives.

For example, Taxpayers with a bank account can get their tax refunds in 8-15 days with e-filing from the Internal Revenue Service (IRS) and direct deposit. Taxpayers without a bank account can get a fast refund by e-filing and having their refund deposited to a prepaid card, including any existing payroll or prepaid card that the taxpayer already has. 

Plenty of options

"There are plenty of options for taxpayers to get quick refunds without paying for a costly RAL," ssaid Chi Chi Wu, staff attorney for the National Consumer Law Center.  "Of course, taxpayers should compare costs and consumer protections when choosing among these options."

Taxpayers without a bank account should also consider opening an account to receive their refund. 

"Getting a big refund is the perfect time to open a savings account and start a nest egg," said Jean Ann Fox, Director of Financial Services for Consumer Federation of America.  

Prepaid card options specifically targeted for tax time will be offered by some tax preparers or tax software companies in 2011, such as the Get It Card from Advent Financial Services or the H&R Block Emerald Card.  A few even permit taxpayers to have the costs of tax preparation deducted from their refunds.

Free assistance

Low-income taxpayers have a number of options for free tax preparation, including Volunteer Income Tax Assistance (VITA) and AARP Tax-Aide sites. Choosing a VITA or AARP Tax-Aide site saves taxpayers both the cost of a RAL and the cost of a tax preparation fee.  Many VITA sites also offer services to help open a bank account or get a low-cost prepaid card.

For taxpayers willing to do it themselves online, there are a number of websites that allow taxpayers to prepare and file their taxes for free, such as the IRS Free File program and the I-CAN! E-file site.

Fewer RALs

These options provide for a speedy refund and don't carry the costs of an RAL. Using the most recent data  available from the IRS, NCLC and CFA calculate that about 7.2 million taxpayers received RALs in the 2009 tax filing season, for tax year 2008.  This represented a 14 percent drop from the 8.4 million taxpayers who took out a RAL in the 2008 filing season.

It also means more taxpayers are saving money. NCLC cites Republic Bank's posted charges of $61.22 for a RAL of $1,500, which translates into an APR of 149 percent.  If the refund exceeds $1561.22, the taxpayer will be charged another $29.95 when the remainder of the refund arrives in the form of a refund anticipation check (RAC), for a total of $91.17 in fees. 

On the other hand, taxpayers who qualify for free tax-preparation assistance can file electronically using the IRS's e-file and have their refund direct deposited to a bank account in eight to 15 days. If you file as soon as you receive your W-2 form from your employer, you'll have your refund that much faster.