Current Events in March 2011

Southwest Airlines is adding routes from Newark's Liberty International Airport, a major move in its effort to lure more business travelers. It also flies out of LaGuardia and Long Island's MacArthur airports.

Current Newark service includes six flights to Chicago and two to St. Louis. In June, the carrier will add 10 more daily flights, to Baltimore, Orlando and elsewhere. Southwest will also be adding up to 19 flights daily from LaGuardia when its acquisition of AirTran wins federal approval.

Southwest has been trying to attract more business travelers by expanding service from major airline hub cities, including Boston, Denver and St. Louis.

Business travelers not only fly more frequently but tend to pay more, as they are more likely to make last-minute reservations and buy upgraded boarding priority and other extras.

The increased Southwest routes out of the New York City area should be a boon for Big Apple fliers, even those who travel on other airlines. Studies have consistently found that when Southwest adds a route, other airlines flying that route reduce their fares to remain competitive.

AirTran deal

Shareholders of AirTran Holdings, Inc., the parent company of AirTran Airways (AirTran), overwhelmingly approved the proposed acquisition of AirTran by Southwest Airlines last week. More than 98.6 percent of votes cast and 77.5 percent of shares outstanding were voted in favor of the acquisition.

The transaction remains under review by the U.S. Department of Justice (DOJ) and is subject to certain other regulatory clearances. Southwest and AirTran continue to operate as two independent companies pending those clearances. Southwest anticipates the transaction to close in the second quarter of this year.

If you’re a customer of either AT&T or T-Mobile and wondering how the announced merger of the two wireless carriers will affect you, hold on a minute. This deal could easily come unraveled in Washington.

Late last week the Wall Street Journal raised the issue that a lot of people may have been thinking. How is the Federal Communications Commission (FCC) going to view a deal that reduces the number of wireless carriers in the U.S. while creating, by far, the nation’s largest mobile company?

It may view it with skepticism. The Journal quotes an FCC officials as saying the agency would not “just rubber stamp” the deal and that AT&T would “have a steep climb, to say the least.”

Anti-trust issues

A few blocks away from the FCC, lawyers at the U.S. Justice Department may have something to say about the proposed merger as well. In deals such as this, the Justice Department looks at ant-trust issues, to make sure the merger will not hurt competition. In markets where AT&T and T-Mobile are significant competitors, this could prove problematic.

If the deal is approved, 90 percent of the wireless business would be concentrated among just three companies – AT&T, Verizon and Sprint/Nextel. Of that, AT&T would have 43 percent of the business.

Will it be enough to derail the deal? Possibly, but AT&T is known in Washington for its lobbying power. The company says current customers of both companies will benefit from the union, because of expanded network coverage and additional spectrum.

Higher prices?

Critics of the deal, however, are likely to claim that the deal will result in higher prices for everyone. When the number of companies providing a service shrinks, costs to consumers almost always go up.

Another potential change for T-Mobile customers is the almost certain end to their unlimited data plan. T-Mobile currently has one, AT&T has moved to a tiered plan.

Lastly, there could be a consumer revolt among current T-Mobile customers. The blog eWeek reported over the weekend that anger and frustration is growing among some consumers. There is even an online site devoted to stopping the merger, where consumers can sign a petition against it.

In the last two years lot of consumers have seen their credit card accounts closed or their credit limits reduced, as banks tried to reduce risk exposure. Mike, a Barclay’s Bank customer from Scottsdale, Ariz., said he was surprised when his credit limited dropped, since he had never missed a payment of ever been late. He said he rarely used the card and paid the balance within two weeks.

“I then called and inquired why they were reducing my credit line by 60 percent,” Mike told ConsumerAffairs.com. I was told that my account fit into a ‘certain risk category,’ resulting in the decrease. I asked when the last time I was late or had missed a payment had occurred. ‘Never’ was the response. I asked what my balance was. ‘Zero’ was the response.

In the credit card industry, a customer like Mike is generally known as a “deadbeat,” because he has access to credit but the credit card company makes no money from him. In the first scary days after the credit crisis, Mike’s account might have looked good to the bank. At this point, however, the bank may be trying to generate more revenue and wants to assign some of that credit to a consumer who carries a balance, and thus pays interest. In other words, Mike may be being punished for his good credit management.

Remember the Alamo

One of our readers, identifying himself only as “U.S. Traveler” from Miami, Fla., is having a spat with Alamo Car Rental at Paris’ Charles de Gaulle Airport.

“When I returned the car the day of my departure, I had to rush to catch my plane,” he said. “I was instructed to put the car in a parking lot belonging to Alamo where no one was available to greet me and take the car from me. I had to go to the main counter inside the airport to return the key. I was able to barely catch my plane. Two days later, I receive an email from the manager of the rental office at Paris Charles de Gaulle stating that they could not find the GPS unit in the car and, if I do not have it with me to return it to them, they had to charge me $300.00.”

This is another reminder that it is risky to leave your rental car in a lot without having an attendant check you in. Something happened to the GPS between the time our reader dropped it off and the company checked it in. Alamo has no option except to hold our reader responsible. It may not be fair, but that’s the way it is. Our advice? If you are returning a rental car, it’s another good reason to get to the airport in plenty of time before your flight.

Math problem

Cynthia, of Goshen, Ohio, received $80 in Kohl’s Cash on a purchase at the department store, and a few days later, returned to the store with a Kohl’s coupon for 20 percent off her next total purchase.

“I gave the 20 percent coupon to the cashier upon checkout and she asked me if I had any Kohl's cash and I said yes and handed her two Kohl's cash coupons worth $80.00,” Cynthia said. “She took the $80 Kohl's cash off first and then applied my 20 percent off coupon to the balance. I questioned why the Kohl's cash was taken off first before discount was given and she said she didn't agree with it either but it was company policy.”

Cynthia says he thinks this is unfair, and she may have a point. In her mind, the Kohl’s Cash should be treated the same as real cash. The store obviously sees it differently, and it’s somewhat surprising that they would allow both the Kohl’s Cash and the coupon to be used in the same transaction. Often times you’ll see a disclaimer on a discount promotion that says “not valid with other offers.” Chances are, the policy is spelled out in the terms and conditions of the Kohl’s Cash. If they aren’t, Cynthia should press her case, or in the future, not use Kohl’s Cash and discount coupons in the same transaction.

Hard to escape

“My wife and I were looking on the Internet for vacation deals and went to Travelocity to check prices on a trip,” John, of Wilmington, N.C., told ConsumerAffairs.com. “Now we have a $210 charge on a debit card from Simple Escapes because of a pop-up ad that opened on Travelocity’s website.”

Simple Escapes is a travel discount “membership” program marketed by Vertrue, and this particular program drew widespread complaints about unauthorized charges in the mid 2000s. John should have been clearly informed that he was entering into a membership program that would result in a charge on his credit card. If he doesn’t think he was, he should contact North Carolina Attorney General Roy Cooper.

 Mazda has suspended U.S. dealer orders for vehicles made in Japan. The company had reopened its plants briefly but had to close them again because of disruptions caused by the earthquake, tsunami and nuclear plant disaster.

Mazda models imported from Japan include the Mazda2, Mazda3, MX-5 Miata, RX-8, CX-7, CX-9 and Mazda5.

The suspension basically cuts off the May allocation for Mazda's U.S. sales network. It's not known when imports will resume.

Other automakers are having similar difficulties, although Mazda's situation is somewhat more severe, as it imports most of the cars it sells in the U.S., while other Japanese automakers assemble many of their vehicles in the U.S.

• Honda suspended U.S. dealer orders for Japan imports this week, including the Honda Fit, CR-V, Insight, CR-Z, Civic Hybrid and Acura TSX and RL.

• Nissan said it was cutting its May allocation in half, while Toyota and Mitsubishi have suspended dealer orders.

• Toyotahas delayed the launch of its new Prius wagon in Japan. Shipments of the Prius sedan are on hold.

• GM has had to idle some plants in Europe and the U.S. because of parts shortages.

• Ford has advised its dealers that it won't be able to fill orders for black vehicles because of paint shortages.

• Volkswagen said it may have to slow production in Europe as component suppliers in Japan struggle to get their plants back into action.

All told, global automakers have so far lost production of more than 232,000 vehicles, Bloomberg News reported today. That figure doesn't include lost production at Nissan, General Motors and other companies that haven't provided figures. The total figure may be over 300,000, industry sources say.

A season ticketholder sued the National Football League (NFL) and its member clubs for breach of contract, tortious interference and bad faith, for locking out players and endangering the 2011-12 season.

Kenneth A. Lanci, an avid Cleveland Browns fan, signed up for ten season tickets back in 1997 and says the decertification of the NFL Player's Association and the league's subsequent lock-out of the players constitute a violation of the Sherman Anti-Trust Act.

Shortly after the lock-out was announced on March 11, Lanci received an email from the Browns offering him his usual tickets and saying that if any games were canceled, he would receive a refund.

That's fine but it's not what his contract provides, says Lanci, who argues that the offer does not provide Lanci with his contractural right to “possess and use his seats for the Games.”

The team owners' decision to lock out the players destroyed the value of Lanci's contract and amounts to a breach of contract, the suit argues.

The suit, filed in Cuyahoga County Court, asks for damages of at least $25,000, representing the price of the tickets, plus interests, costs and attorneys fees as well as an injunction against the NFL prohibiting the lock-out of the players.

The U.S. Food and Drug Administration (FDA) today approved a new drug for patients with late-stage melanoma, the most dangerous type of skin cancer.

Yervoy (ipilimumab) is a monoclonal antibody that blocks a molecule known as CTLA-4, which is thought to play a role in slowing down or turning off the body’s immune system, affecting its ability to fight off cancerous cells.

Yervoy, developed by Bristol-Myers Squibb Co., will initially be sold only for use in patients who have not responded to other treatments. The drug is administered intravenously.

Melanoma is the leading cause of death from skin disease. An estimated 68,130 new cases of melanoma were diagnosed in the United States during 2010 and about 8,700 people died from the disease, according to the National Cancer Institute.

“Late-stage melanoma is devastating, with very few treatment options for patients, none of which previously prolonged a patient’s life,” said Richard Pazdur, M.D., director of the Office of Oncology Drug Products in the FDA’s Center for Drug Evaluation and Research. "Yervoy is the first therapy approved by the FDA to clearly demonstrate that patients with metastatic melanoma live longer by taking this treatment."

Patients lived longer

Yervoy’s safety and effectiveness were established in a single international study of 676 patients with melanoma. All patients in the study had stopped responding to other FDA-approved or commonly used treatments for melanoma. In addition, participants had disease that had spread or that could not be surgically removed. 

The study was designed to measure overall survival, the length of time from when the treatment started until a patient's death. The randomly assigned patients received Yervoy plus an experimental tumor vaccine called gp100, Yervoy alone, or the vaccine alone.

 Those who received the combination of Yervoy plus the vaccine or Yervoy alone lived an average of about 10 months, while those who received only the experimental vaccine lived an average of 6.5 months.

While those benefits may appear modest, scientists say some people who took the drug several years ago when it was still in the early testing stages are still alive today.

"I think the vast majority of patients with metastatic melanoma should at some point try this agent," said Patrick Hwu, chairman of the department of melanoma medical oncology at the University of Texas MD Anderson Cancer Center in Houston.

Side effects

The drug can have severe side effects, including fatigue, diarrhea, skin rash, endocrine deficiencies (gland or hormone), and inflammation of the intestines (colitis). Severe to fatal autoimmune reactions were seen in 12.9 percent of patients treated with Yervoy. 

When severe side effects occurred, Yervoy was stopped and corticosteroid treatment was started. Not all patients responded to this treatment. Patients who did respond in some cases did not see any improvement for several weeks.

Due to the unusual and severe side effects associated with Yervoy, the therapy is being approved with a Risk Evaluation and Mitigation Strategy to inform health care professionals about these serious risks. A medication guide will also be provided to patients to inform them about the therapy's potential side effects, the FDA said.

Is Adobe software being too nosey when it asks for your birth date when you register their Photoshop Elements software? Norman, of Santa Barbara think so.

"After installing the software, the launch and registration window demands: 1) that the user sign in with Adobe; and, 2) provide a complete birth date," Norman told ConsumerAffairs.com. "There is no way to opt-out of this requirement, according to the support person with whom I spoke.

Norman thinks the policy is a danger to privacy and a violation of California's Online Protection Act.

"The product packaging does not indicate anywhere that the purchaser must provide a complete birthday to use the product," Norman said. "This is illegal, and I have requested a refund."

Norman probably isn't going to get one. Jay Foley, at the Identity Theft Resource Center, in San Diego, tells us that Adobe asks for the birth date because, as part of the registration of the software, the user also sets up an account. Foley said Adobe asks for the birth date to verify the person setting up the account is an adult and that's allowed under the law.

New isn't necessarily better

We've long suspected, based on the number of complaints about high-end, expensive appliances, that you would be better off buying a cheaper, stripped down model. Maybe that's not always the case.

"I had never purchased a brand new appliance before so, to say the least, I was proud of my new Frigidaire refrigerator that we paid over $500 for," Donna, of Inola, Okla., told ConsumerAffairs.com. "We decided it would be cheaper than buying used ones every other year because we thought it would last at least ten year."

But after 18 months, Donna reports the compressor has "kicked the bucket."

"I could have bought two or three used ones a lot cheaper and got more use out of them than I did this one that is only one and a half years old."

We're not sure why, but new appliances don't seem to last as long as the old ones.

There's no magic to it

Magic Jack advertises heavily on radio and TV for its VoIP telephone service. For $19.95 a year you get a telephone number and unlimited local and long distance service. That's a lot for the price, but some consumers say it doesn't work well for them. That may be why the company offers a 30-day free trial.

Nancy, of Alford, Mass., is upset because she says the company makes it too hard to return the product before the end of a 30 day free trial.

"We couldn't reach anyone by phone and tried to get a return address on the web site to return it and they wouldn't give us one," Nancy told ConsumerAffairs.com.

The Magic Jack website has a "returns" page where Nancy needs to enter the required information to get the RMA process started.

Let me speak to Flo

In their commercials, Progressive Insurance's customer service rep, Flo, is always perky and friendly with customers. An anonymous consumer from Denver says she called Progressive and the customer service rep definitely wasn't Flo.

"They were a very rude auto insurance representative. Her phone is always turn-off, you leave a message, she never returns phone calls. She doesn't know anything about customer service. I had to change insurance as I didn't like the experience with her."

The “Grandparent Scam” has been around forever, in one form or another, but has been gaining ground lately as more scam artists learn about it and as evolving forms of communication make it easier to find victims and drain their funds.

The investigative TV news show “Inside Edition” identified the scam way back in 2006 and since then, consumer organizations and law enforcement officials have been issuing warnings, even as the number of victims rises. In 2010, the Federal Trade Commission received more than 60,000 complaints nationwide.

Now the Consumer Federation of America and New Jersey Attorney General Paula T. Dow are launching a nationwide public education campaign, including a two-minute video, to alert consumers to the threat.

“The key to protecting consumers from fraud is public awareness. We hope that our new video and tips about the grandparent scam will help consumers in New Jersey and across the country avoid being tricked out of their money,” said Susan Grant, Director of Consumer Protection at the Consumer Federation of America.

The Grandparent Scam typically begins with an urgent phone call to an unsuspecting senior citizen. The caller may claim to be the victim’s grandchild, or claim to be a police officer. The message is always the same: Your grandchild is hurt, in jail, or otherwise in trouble, and needs hundreds of dollars immediately. Please don’t tell mom. Please do send a money order via Western Union or a similar service.

Those who fall victim later learn their grandchild never was in trouble. Instead, their money has been wired to a thief and may never be seen again.

A press event in Newark, NJ, yesterday included a statement from Jim and Dorothy, a Wayne, NJ, couple who nearly fell victim to the Grandparent Scam and who spoke publicly on the condition that their last name not be used. The couple received a call on February 15, 2011 from a young person who sounded remarkably like their grandson, and who accounted for the difference in his voice by saying his nose had been broken in a car accident. He claimed he was in jail in Canada while visiting family friends, and desperately needed $2,800 for bail.

The caller had a plausible and urgent story. He used specific family details during the lengthy conversation – details the family now believes were gleaned from the grandson’s or his friends’ Facebook pages. He pleaded with them not to tell his mother, but said he would tell her himself after his court appearance. Despite some reservations, the couple strongly considered sending money to a recipient in Canada. They stopped themselves when their daughter, the grandson’s aunt, saw them and asked questions that made them consider whether the caller’s story was real.

The Grandparent Scam and other impostor scams come in many varieties. Some common factors include:

• Scammers typically ask the victim to send funds via a money order or other transfer service. Once money has been transferred and picked up by a recipient with a phony ID, it may be impossible to trace and retrieve.

• Scammers often use marketing lists, with names and phone numbers or email addresses, to target victims.

• Some scammers will tell their story using specific details, like the names of the grandchild’s relatives or friends. Scammers can often find this information online, such as on social networking websites.

• Some scammers hack into consumers’ email accounts, then send emergency emails to the consumers’ friends.

• Scammers who call on the phone will typically try to prevent the victim from checking whether their story is true. They will insist, “Don’t tell mom,” or, “You must act immediately.”

The Division of Consumer Affairs and Consumer Federation of America offer the following very simple tips to prevent senior citizens and others from being victimized:

• If you receive an emergency call asking for money, always check with a family member to find out whether your loved one really needs help.

• Take the time now to talk with your family about this and similar scams. Consider creating a code word or phrase – one only the family would know – in case it becomes necessary to make an emergency call for help.

• Make it a personal policy, and a family policy, never to wire money without being sure the story you’re being told is true.

Things aren't looking good for "Girls Gone Wild" mogul Joe Francis. He has less than a week to find a lawyer and avoid a possible default judgment in a case that involves claims by four women that Francis sexually exploited them when they were minors.

The women sued Francis and three of his companies in U.S. District Court in Florida alleging that they filmed the women “exposing their breasts and/or engaging in sexually explicit conduct.” The filming in Panama City, Fla., was part of Francis' series of “Girls Gone Wild,” widely sold over the Internet and as wireless phone content.

Francis' trial is set to begin March 28 but although he says he has been “earnestly searching,” Francis claims he has not been able to retain a lawyer.

U.S. District Judge Richard Smoak earlier entered a default judgment against Francis' corporations because Francis had failed to obtain counsel for them. Francis himself now faces the same fate.

Francis' most recent attorney, Frederick J. Bateman, withdrew from the case and sued Francis for $467,312.50 in allegedly unpaid fees.

If the judge enters the default judgment against Francis, the case will go to trial with only the issue of damages to be decided.

It's not as though Francis is unfamiliar with the inside of a court room. His once-booming business in teen-aged flesh and controversial sales practices have resulted in numerous legal actions against him.

• In September 2006, Francis' company was fined $2 million by a Florida court after pleading guilty to charges that it failed to create and maintain age and identity documents for the performers in its films.

• In April 2007, Francisco was indicted on federal tax evasion charges by a grand jury in Reno, Nev.

• In March 2008, Francis finished an 11-month jail term in Florida on a felony count of child abuse and prostitution.

Francis and his companies have also faced numerous civil actions, including several consumer class action lawsuits, but its website continues to offer DVDs and pay-per-view videos and is currently conducting a “Hottest Girl in America” contest, which asks young women to submit photos and certify that they are over 18.

If you wear your cell phone on your hip, or carry it in your pocket, you may be weakening the bones in your body that are in closest proximity to the device. At least, that’s what a new study suggests.

The study found men who routinely wear their cell phone on their belt on the right side have reduced bone mineral content (BMC) and bone mineral density (BMD) in the right hip, according to the study by Dr. Fernando D. Sravi of National University of Cuyo, Mendoza, Argentina.

"The different patterns of right-left asymmetry in femoral bone mineral found in mobile cell phone users and nonusers are consistent with a nonthermal effect of electromagnetic radiofrequency waves not previously described," Sravi writes. (Read consumer complaints about cell phone companies).

Electromagnetic radiation

The research team focused on electromagnetic radiation from cell phones, suggesting they can adversely affect bone strength. Other research reports have suggested links between this radiation and the formation of tumors, though the mobile industry is quick to say no definitive link has been made.

In this study, Sravi and his ream measured BMC and BMD at the left and right hip in two groups of healthy men: 24 men who did not use cell phones and 24 men who carried their cell phone in a belt pouch, on the right side, for at least one year.

Measured using a test called dual-energy x-ray absorptiometry, BMC and BMD are standard markers of bone strength.

Findings

What did they find? Average hip BMC and BMD measurements were not significantly different between groups. However, men who did not use cell phones had higher BMC in the right femoral neck (near the top of the thigh bone): a normal left-right difference that was absent in cell phone users.

The conclusion? Men who wore their cell phones on the right side had a relative reduction in femoral neck BMC in that hip.

The cell phone users also had reduced BMD and BMC at the right outside top of the thigh bone, close to where the phone would be worn on the belt. The difference between this area on the the left and right side was significantly related to the estimated total hours spent carrying a cell phone.

The researchers say very little study has been done concerning the possible affect of cell phones on bone density, but it could be vitally important, especially for a generation that will spend its entire adult life carrying a cell phone.

They say it could lead to a large increase in osteoporosis and other bone diseases as that generation ages.

Despite claims that menthol in cigarettes makes them more addictive and more likely to lead to lung cancer, a new study funded by the National Cancer Institute finds no evidence to support that view.

William Blot, Ph.D., professor of Medicine, Vanderbilt-Ingram Cancer Center (VICC), Nashville, Tenn., led the study.

"Black men are known to have a higher incidence of lung cancer and are more likely to smoke mentholated cigarettes compared to white men," said Blot. "It has been hypothesized that menthol in cigarettes influences smoking behavior, perhaps increasing dependency or adversely affecting the biology of the lung. However, our large study found no evidence to support those theories."

Southern smokers surveyed

The study of lung cancer risk was based on results from the Southern Community Cohort Study (SCCS), an ongoing investigation of cancer incidence and mortality disparities among racial, and urban versus rural populations in 12 southern states. Smoking prevalence among participants in the SCCS was exceptionally high, and both menthol and non-menthol cigarette use was common.

Anti-smoking advocates have long targeted menthol in cigarettes as a reason smokers have a harder time kicking the habit. A December 2010 study suggested menthol cigarettes may provide higher levels of carbon monoxide, nicotine and cotinine per cigarette smoked than regular cigarettes, so smokers who favor menthol can still get their fix, even with fewer cigarettes.

"Menthol stimulates cold receptors, so it produces a cooling sensation. This effect may help smokers inhale more nicotine per cigarette and so become more addicted," said Jonathan Foulds, Ph.D., professor, Public Health Sciences, Penn State College of Medicine, and an author of the report.

Possible menthol ban

Last October the Food and Drug Administration's scientific advisory committee took up the matter of whether tobacco companies use menthol as a way to keep smokers hooked. The committee was directed to write a report on the subject and could recommend regulating, or even banning the substance.

At the time, the head of the National Black Chamber of Commerce defended menthol and branded the move to ban it 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."

Support for menthol defenders

The latest study is likely to provide ammunition for Alford and others who defend menthol. Among people smoking 20 or more cigarettes a day, menthol smokers were approximately 12 times more likely to develop lung cancer than never-smokers, while non-menthol smokers were about 21 times more likely to have the disease. The differences were mirrored for lung cancer death rates and were found to be statistically significant.

The researchers also found that both white and black menthol smokers reported smoking fewer cigarettes per day than non-menthol smokers. When it comes to the likelihood of quitting smoking, there was no significant difference between menthol and non-menthol smokers.

The authors conclude that the findings suggest menthol cigarettes are no more, and perhaps less, harmful than non-menthol cigarettes. But smoking any kind of cigarette, they quickly point out, is unhealthy.

"Cigarette smoking remains the leading cause of premature death in the United States, but undue emphasis on reduction of menthol relative to other cigarettes may distract from the ultimate health prevention message that smoking of any cigarettes is injurious to health," said Blot.

A federal class action claims Consumerinfo.com defrauds customers by misrepresenting its in-house method of calculating credit scores. 

The complaint, filed in federal court in San Diego charges that the site does not tell consumers that the credit score it sells is based on a proprietary, in-house method of calculation – Experian's Plus Score – that is not sold to lenders and not used by lenders to determine consumers' creditworthiness.

The suit charges that the credit scores are sold through Consumerinfo.com's network of websites, including www.freecreditreport.com, www.freecreditscore.com and www.consumerinfo.com.

The named plaintiff in the suit, David Waring of San Diego, said he purchased a credit score from Consumerinfo.com after visiting www.freecreditreport.com, enrolling in a monthly credit monitoring service for $14.95 per month, thinking he was buying information that give him guidance on how creditors viewed his creditworthiness.

Waring said Consumerinfo.com “failed to disclose clearly and conspicuously” that its credit score is not used by lenders.

20 million reports

Consumerinfo.com, based in Costa Mesa, Calif., claims to have delivered more than 20 million credit reports through its Internet sites. It is owned by Experian plc, whose corporate headquarters are in Dublin, Ireland.

The suit alleges that more than 90 percent of lenders use credit scores developed by Fair Isaac Corp., known as FICO scores.

Historically, Experian and the other two major U.S. credit bureaus – Equifax and TransUnion – have distributed FICO credit scores to lenders, under a licensing agreement with Fair Isaac. But in February 2009, Experian ended its relationship with FICO and no longer sells FICO-based scores to consumers, the suit charged.

“The 'credit scores' advertised by Defendant and provided to consumers are not credit scores sold to or used by lenders in determining consumers' creditworthiness and are not FICO scores … and [are] not therefore used by lenders in determining a consumer's creditworthiness,” the complaint charges.

Automatic enrollment

Consumers who place an order for their credit report and credit score are automatically enrolled in Consumerinfo.com's “Triple Advantage” credit reporting monitoring service, the suit alleges, results in a monthly charge of $14.95 or, in some instances, $19.95.

Experian plc had total revenue of $3.9 billion in 2010, according to its annual report, and cites its “interactive” business unit as contributing 27 percent of that revenue.

Previous challenges

It's not the first time Consumerinfo.com's claims have been challenged. In August 2005, the Federal Trade Commission (FTC) reached a settlement in a case in which it charged the company had engaged in unfair and deceptive trade practices by failing to adequately disclose that consumers would be charged $79.95 if they did not cancel their credit report monitoring service within a trial period.

The company paid $950,000 in refunds to consumers as part of the settlement.

In January 2007, the FTC filed for an injunction, charged that Consumerinfo.com was violating the terms of the earlier settlement. The company was required to pay $300,000 in ill-gotten gains and enjoined from further violations.

The suit seeks damanges for all persons in the United States who purchased a credit score from Consumerinfo.com after March 22, 2007.

A select club is growing larger. Each year, the Insurance Institute for Highway Safety (IIHS) announces its Top Safety Picks and most years, the list grows longer. What's sometimes overlooked is that the list grows throughout the year, as manufacturers resubmit models after making safety modifications.

This year, 68 models made the initial cut, up from 58 last year and the number has grown since then. Recent additions include the Mazda3, Honda Odyssey, three large GM SUVs, the MINI Cooper Countryman, Dodge Charger and Chrysler 300. (Complete list below)

Volkswagen was the big winner this year, with six winners. Ford, Kia, Subaru and Toyota had five each and Mercedes-Benz and Hyundai each had four. Subaru had a winner in every class in which it competes.

“In just a year, automakers have more than doubled the number of vehicles that meet the criteria for Top Safety Pick,” said Adrian Lund, IIHS president. “Automakers deserve credit for quickly rising to meet the more challenging criteria for Top Safety Pick.”

Mark Huffman describes the selection process in this report:

Here is the complete list of winners:

LARGE CARS

Buick LaCrosse

Buick Regal

BMW 5 series
(except 4-wheel drive and V8)

Cadillac CTS sedan

Chrysler 300

Dodge Charger

Ford Taurus

Hyundai Genesis

Infiniti M37/M56
(except M56x 4-wheel drive)

Lincoln MKS

Mercedes E class coupe

Mercedes E class sedan

Toyota Avalon

Volvo S80

SMALL CARS

Chevrolet Cruze

Honda Civic
4-door models (except Si)
with optional ESC

Kia Forte sedan

Kia Soul

Mazda 3
built after December 2010:
sedan | hatchback

Mini Cooper Countryman

Mitsubishi Lancer sedan
(except 4-wheel drive)

Nissan Cube

Scion tC

Scion xB

Subaru Impreza
(except WRX):
sedan | wagon

Toyota Corolla

Volkswagen Golf
4-door models

Volkswagen GTI
4-door models

MINICARS

Ford Fiesta
built after July 2010:
sedan | hatchback

MIDSIZE CARS

Audi A3

Audi A4 sedan

Chevrolet Malibu

Chrysler 200
4-door models

Dodge Avenger

Ford Fusion

Hyundai Sonata

Kia Optima

Lincoln MKZ

Mercedes C class

Subaru Legacy

Subaru Outback

Volkswagen Jetta sedan

Volkswagen Jetta SportWagen

Volvo C30

MINIVANS

Honda Odyssey

Toyota Sienna

LARGE SUVs

Buick Enclave
built after January 2011

Chevrolet Traverse
built after January 2011

GMC Acadia
built after January 2011

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If you’ve been tempted by ads that proclaim “magic diet pill,” or “melt your fat away,” don’t be. The Food and Drug Administration (FDA) says nearly all are scams, designed to separate you from your money.

Not only do these products not live up to their claims, they can cause serious harm. Regulators say they have found dozens of products being touted as dietary supplements that actually contain hidden prescription drugs or compounds that have not been adequately studied in humans. (More about weight loss scams).

Not legal

“These products are not legal dietary supplements,” said Michael Levy, director of the FDA’s Division of New Drugs and Labeling Compliance. “They are actually very powerful drugs masquerading as ‘all-natural’ or ‘herbal’ supplements, and they carry significant risks to unsuspecting consumers."

And Levy is not just talking about an illness keeping you in bed for a couple of days.

“We have seen deaths associated with these weight-loss products,” he said. “Make no mistake—they can kill you.”

FDA said it has found weight-loss products tainted with the prescription drug ingredient sibutramine. This ingredient was in an FDA-approved drug called Meridia, which was removed from the market in October 2010 because it caused heart problems and strokes.

Asking for help

FDA has also found other prescription drug ingredients that have been removed from the market or never approved at all. The problem is so big, the agency says, that it has asked the dietary supplement industry and consumers to help.

“We also need consumers to be aware of these dangerous products and to learn how to identify and avoid them,” said Levy.

Warning signs

How can you tell if a pitch for a diet product or supplement is fraudulent. Here are some red flags to look for:

• promises of quick action, such as “lose 10 pounds in one week”
• use of the words “guaranteed” or “scientific breakthrough”
• labeled or marketed in a foreign language
• marketed through mass e-mails
• marketed as an herbal alternative to an FDA-approved drug or as having effects similar to prescription drugs

Very often, the companies marketing these bogus pills rip consumers off in other ways. They may offer a “free trial” shipment, but require the consumer to provide their credit card information to cover “shipping and handling.” The next thing the consumer knows, their credit card has been charged for multiple orders at the full price, some of which never even arrive.

Generally, if you are using or considering using any product marketed as a dietary supplement, FDA suggests that you check with your health care professional or a registered dietitian. They will be in a better position to tell you the best way to lose weight, instead of relying on ads that claim losing weight is easy.

Talk about timing. With gas prices rising, a massive earthquake and tsunami hit Japan, ground zero for fuel-sipping cars, leaving American dealers and consumers with a fast-dwindling stock of Priuses, Corolla, Fits and other popular models.

Toyota and Honda have both extended factory shutdowns in Japan through at least this weekend, as they struggle to get their supply chains back into operations. Honda warned its dealers last week that orders will be disrupted at least through May.

The suspensions have cut off the flow of cars to the United States, including the Toyota Corolla, Prius and RAV4, the Honda Fit and CR-V as well as the Nissan Rogue, Subaru Forester and most Infiniti, Acura and Lexus models.

Some other companies are struggling back to life but it is a process marked by fits and starts. Nissan said it still has five plants closed by the quake, interrupting production of Infiniti products as well as the 350Z and GT-R sports cars.

Mitsubishi and Mazda said their plants were back up but the supply of parts was still a question mark.

Subaru parent company Fuji Heavy Industries Ltd. has suspended vehicle assembly until at least Thursday.

It's not only Japanese brands that are being affected. General Motors has closed the Louisiana plant that builds the Chevrolet Colorado and GMC Canyon pickups because it has run out of Japanese parts. Ford says it has not had any problems so far.

Rising prices

One thing everyone agrees on: car prices will be going up. While it's obvious that a shortage of Japanese models would drive up prices for those cars, the most likely scenario is that prices for nearly all cars and trucks will go up.

Nearly-new used cars are suddenly in demand. Buyers who might have bought a Japanese car will be competing with other buyers who already have their eyes on a Korean, German or American product.

As dealer inventories shrink, consumers can expect incentives to go away. Dealers will likely begin adding above-sticker charges to the models that are most in demand.

For anyone who has a car that's still in safe operating condition, now is probably the time to hang onto it. Bargains are going to be hard to find.

In the last 12 months or so, various states have reached settlements with some companies in the business of reselling timeshares. These companies usually make big promises that they will sell an unwanted timeshare unit, but demand a large upfront fee.

In an eight-month period, Vermont Attorney General William Sorrels settled with two time-share real estate firms he accused of ripping off consumers. Massachusetts and Missouri were also among the states reaching timeshare settlements last year.

Last September, Illinois, Attorney General Lisa Madigan warned  timeshare owners in her state that scammers have moved into the space, collecting money but making no attempt to sell anything.

How it works

Madigan says the scam typically works like this: a timeshare owner gets a call out of the blue from someone claiming to be a timeshare reseller. They have a client who wants to buy their timeshare, are they interested?

In this market, getting an unsolicited call from someone wanting to buy your timeshare is cause for jumping up and down. It sounds too good to be true, and of course, it is. And the problem persists.

"A few months back I was in really desperate straits," Chris, of Rincon, Ga., told ConsumerAffairs.com this week.

Out of nowhere

He said a company called Vacation Property Resellers "came out of nowhere" and assured him they could sell his timeshare.

"They seemed to know a lot about it and said they had buyers already lined up," Chris said. "The issue was they wanted $1100 up front. Yeah, I know. Dumb move but I was not thinking right back then. I paid it and saw the "closing date" move seven times in the last eight months."

George says he feels a bit sheepish after doing some online research and seeing the number of complaints about this, and other similar companies. He says he wishes he had known then what he knows now.

It's a good lesson for everyone else who has a timeshare they would like to sell. Keep in mind that today, selling any type of real estate - especially timeshares - is very difficult. Anyone who says they can, but needs an upfront fee, probably isn't shooting straight with you.

Expecting JPMorgan Chase to reward you for using your debit card? Think again. Chase is the latest bank to trim debit card benefits, blaming it on new federal rules that would cap so-called “interchange” fees, the fees banks charge retailers for processing debit card transactions.

Chase is mailing letters to its customers informing them that as of July 19, the rewards will be history. Customers will still be able to redeem rewards but will not earn new ones. PNC Bank and US Bank have also rolled back some of their debit card benefits.

Chase debit card users with co-branded cards have been accumulating airline miles on Continental and United. They've also been enjoining a waiver of the $25 fee for the first checked bag. That perk goes away April , according to Continental.

The only consolation is that Chase will stop charging the $25 annual fee consumers have been paying for the cards and the $65 annual fee charged to business travelers.

The Federal Reserve's proposed rule would cap the interchange fee at 12 cents, a 75 percent drop from its current level. The proposal followed years of complaints by merchants and consumer advocates who said the fees amounted to a hidden tax on consumers.

What options do Chase customers have? Not many. Changing debit cards isn't as easy as changing credit cards, since the debit card is tried to the consumer's checking account.

You'd have to open a new checking account at a different bank, one that offers perks on its debit cards – and then you'd have to hope that bank didn't follow Chase and the others that have already sliced debit card benefits.

While Chase is the largest bank to trim debit card benefits, it's most likely not the last. Bank of America, Wells Fargo and other large banks have not announced any plans but may do so when the Fed releases its final proposal next month.

Attorneys hungry for business are increasingly specializing in activities only loosely connected with the practice of law, debt collection and mortgage modification being the two most prominent examples.

Attorneys are, in some cases, able to evade consumer protection laws that might apply to more traditional debt collectors and debt counseling services. But in Oregon,Attorney General John Krogerrecentlyannounced an agreement that shuts down a Eugene-based law firm that was the subject of dozens of complaints about its debt collection practices.

In addition to closing down McGavic & Finney PC, the settlement requires founding partner Derrick E. McGavic to pay $70,000 and surrender his license to practice law.

"At a time when many Oregonians are struggling to manage their debt, the Department of Justice is committed to holding unscrupulous debt collectors accountable," said Keith Dubanevich, Chief of Staff and Special Counsel to Attorney General Kroger.

The state started investigating McGavic and his partner Kristan Finney after receiving more than 90 complaints against their law firm, Dubanevich said. McGavic was simultaneously undergoing an investigation by the Oregon State Bar.

McGavic & Finney specialized in representing national debt collectors that buy defaulted consumer obligations in massive quantities on the secondary market – often for pennies on the dollar.

Consumer complaints filed with the Oregon Department of Justice accused McGavic of systematically ignoring debtor protections and rights afforded under the Oregon and Federal Debt Collection Protection Acts. For example, McGavic allegedly misidentified or purposefully confused the identity of creditors in documentation to delay consumers' response and thus increase fees and interest payable to McGavic and his clients.

Notices issued by McGavic allegedly omitted specific information related to the amount of the defaulted debt and failed to provide proper verification of debts when requested by consumers. Similarly, McGavic allegedly repeatedly called debtors who had requested in writing not to be called.

The Department of Justice's investigation also uncovered McGavic's pattern of falsifying fee affidavits in Motions for Default Judgments by claiming services he did not perform. In addition, McGavic allegedly provided his office staff with a schedule to be used to arbitrarily increase the fees claimed - depending on the amount of money claimed or the venue of the action.

The agreement filed March 16 in Lane County Circuit Court requires Derrick McGavic to pay $70,000 to the Oregon Department of Justice to reimburse the cost of the investigation; dissolve the law firm of McGavic & Finney, PC; and resign from the Oregon State Bar.

McGavic is further prohibited from acting as a debt collector or operating a law firm or a collection agency in the State of Oregon. Kristan Finney may continue to operate under a different business or firm, subject to numerous stringent injunctive provisions specified in the settlement agreement.

Homeowners continue to fall victim to scam artists operating bogus mortgage modification programs. In California alone, more than 4,500 complaints are being investigated by the state Department of Real Estate (DRE).

“With so many people struggling to stay in their homes, foreclosure rescue and mortgage relief scams have risen dramatically,” DRE Commissioner Jeff Davi said.

DRE has investigated over 4,500 cases that involved loan modification complaints, Davi said. These cases have resulted in 244 desist and refrain orders to halt illegal operations that name 785 separate respondents. In addition, the DRE has filed 88 accusations against 159 different real estate licensees for violating the real estate law in connection with offering loan modification services.

The typical scam involves the promise of a loan modification or other mortgage or foreclosure relief in exchange for an upfront fee, but once the fee is paid little or nothing is done to help the homeowner.

Helpful consumer tips on how to avoid such scams include:

• Never pay an upfront fee for loan modification services. Such fees are illegal. Advance fees for short sale, deed-in-lieu of foreclosure and other residential mortgage foreclosure rescue services are also illegal under a new federal rule, with a very limited exception for fees paid to lawyers.

• Watch out for promises of guaranteed success. No one can promise that a loan modification or other relief plan will be successful.

• Too good to be true testimonials. False claims of successes are often the hook to get consumers to pay upfront fees.

• Ask questions - lots of them! Check with the Better Business Bureau, and verify licenses and disciplinary records (if any) of those offering their services.

• Perform Internet searches, such as Google. Often consumers will post information about unscrupulous operators well before regulators can act.

• Contact a HUD approved counseling agency that can provide loan modification or other mortgage negotiation services for free.

• Do it yourself. You do not need anyone to represent you to obtain a loan modification. The DRE has Frequently Asked Questions on how to seek and negotiate a loan modification, and it can be accessed at http://www.dre.ca.gov/faq_home.htm