Current Events in March 2011

Who needs cash? Visa says it will soon allow U.S. consumers to send and receive payments using their Visa credit and debit accounts. Consumers will be able to use plastic to pay each other.

It's not exactly a new concept. PayPal has been doing that for years, though a lot more consumers have Visa cards than PayPal accounts. Also, there are additional steps required for receiving and using the money with PayPal.

Technical enhancements

The new Visa consumer payments service was made possible through technical enhancements to VisaNet, Visa's global payments processing network, and through the introduction of a new Visa transaction type that allows financial institutions to accept incoming funds.

Visa also said it will work with CashEdge Inc. and Fiserv Inc., two providers of electronic person-to-person payment, account transfer and bill payment services to U.S. financial institutions.

CashEdge and Fiserv will have access to VisaNet, enabling them to integrate the Visa personal payment service into their respective person-to-person platforms - Popmoney and ZashPay. This will allow a participating bank's customers to send money directly to a Visa account.

Evolution

"For fifty years, Visa has worked to simplify payments at the merchant point of sale; we are now evolving our network capability to make it easier for our account holders to pay one another," said Jim McCarthy, global head of products at Visa Inc. "Through our agreements with Fiserv and CashEdge, we can accelerate the delivery of new and innovative Visa payments services, and better enable financial institutions to extend these services to customers." 

If you are a customer of a participating financial institution, you'll have the option to select a Visa account as the destination for funds when making a personal payment. Just by entering the recipient's 16-digit Visa account, email address or mobile phone number, consumers can send funds directly from their bank account to a recipient's Visa account.

Fees not disclosed

In its announcement, Visa did not disclose how much consumers would pay to transfer money to each other. PayPal charges members a fee of three percent to accept credit card purchases. While the new service may be seen as a major challenge to PayPal, that company appears unconcerned.

PayPal's eBay unit issued a statement saying it connects to 57 different financial networks and 15,000 local banks in 190 markets. That, and its head start in the personal payment space, will give it an advantage with consumers, the company said.

The Food and Drug Administration (FDA) is advising consumers not to purchase or use “Black Ant,” a product for sexual enhancement sold on various websites.  Claims made for the product falsely state that it is a “natural sexual enhancer” and that it has “no known side effects.”       

FDA laboratory analysis confirmed that Black Ant contains sildenafil, the active ingredient in Viagra, an FDA approved prescription drug for Erectile Dysfunction (ED).  The product tested had three times the starting dosage for the approved product.Sildenafil may interact with nitrates found in some prescription drugs such as nitroglycerin and may lower blood pressure to dangerous levels.  Men with diabetes, high blood pressure, high cholesterol or heart disease often take nitrates.

Consumers should stop using this product immediately and throw it away.  Consumers who have experienced any negative side effects should consult a health care professional as soon as possible. 

The U.S. Consumer Products Safety Commission (CPSC) has sued Lawn Dart Parts, demanding that it stop selling its products in stores and on the Internet. The suit, filed in federal district court in St.. Louis, notes that lawn darts are banned by federal law because of the dangers they pose to children and seeks an injunction banning further sales by the company.

Lawn Darts Parts LLC is a Pevely, MO, company owned by Steve King and, according to the lawsuit, operates several websites, including www.lawndartparts.com, www.tossinggames.com, www.stevenking.biz, and www.missourimarketplace.net/jartparts.

Lawn darts are a hazardous substance under the Federal Hazardous Substances Act because they pose an “unreasonable risk of injury to children” and, as such, their sale is prohibited by the Consumer Product Safety Act, the complaint alleges.

The lawn darts, which are simple darts with elonated tips, are designed so that when they are thrown into the air, they contact the ground tip-first.

The suit notes there have been “numerous injuries ranging from lacerations and bruises to severe brain damage, as well as three known deaths of children associated with the use of lawn darts .”

They have been banned since at least 1970; in 1988, the CPSC removed an exemption that had allowed the sale of lawn darts which were labeled for use by adults only.

The CPSC said it became aware of King's operation in February 2009 when an investigator visited two of his websites. Posing as a customer, the investigator ordered a set of lawn darts for $100 via email and was contacted by someone identified as “Steve,” who instructed the investigator to pay via PayPal.

The lawn darts were sent and arrived at the Michigan address used by the investigator on March 20, 2009. The package included four lawn darts, four plastic rings and six plastic fins. The items were packaged in what appeared to be original product packaging and stated "Regent Jarts . . . An Outdoor Skill Game for Adults."

The investigator then ordered an additional set of lawn darts for $218. The package arrived on November 15, 2009.

The package included four metal shafts, two plastic red fins, two plastic blue fins, and two plastic yellow rings. Also delivered is what appears to be original product packaging stating “Jarts Missle Game. The Most Exciting Outdoor Game Today. Jarts Company, Fort Edward, New York.” Finally, the package included a business card for the web site “www.TossingGames.com” with the name “Mr. Steve King, Owner and Webmaster” printed on it.

Losing your job is bad enough. But in the U.S., where health benefits are usually obtained through an employer, losing your job means losing your health benefits.

With unemployment close to nine percent - and many experts think that understates the number - that's a lot of people who used to have health coverage, but no longer do.

Nine million lose coverage

The Commonwealth Fund 2010 Biennial Health Insurance Survey estimates nine million working-age adults-57 percent of people who had health insurance through a job that was lost-became uninsured in the last two years.

The survey estimates 43 million adults under age 65 either lost a job, or their spouse became unemployed, in the last two years.

Only 25 percent of people who lost employer health insurance were able to find another source of health insurance coverage, and only 14 percent continued their job-based coverage through COBRA.

Not a viable option

In addition, purchasing individual coverage was not a viable option for most people. Seventy-one percent of adults who tried to buy individual coverage in the past three years, or 19 million people, either found it difficult or impossible to find a plan that fit their needs; found it difficult or impossible to find a plan they could afford; or were turned down or charged a higher price for coverage because of a pre-existing condition.

"This survey tells a story of millions of Americans who lost their jobs during the recession, lost their health benefits too, and had essentially no place to turn for affordable health care coverage-putting their health and financial security at risk," said Commonwealth Fund President Karen Davis.

More uninsured than in 2001

According to the survey, more people were uninsured at some point in 2010 - 52 million - than the 38 million Americans who were without health insurance in 2001. Not surprisingly, the lower your income, the more likely you were to be without insurance.

Fifty-four percent of lower-income adults (under $22,050 for a family of four) and 41 percent of moderate-income adults ($22,050 to $44,100 for a family of four) were uninsured for some time during the year, compared with 13 percent of adults with higher incomes, according to the survey.

What if one of the answers to skyrocketing healthcare costs were right in front of us, but we just don't see it? That's a question posed by a University of Pittsburgh study, published in the Archives of Internal Medicine.

In the study, researchers suggest that if everyone who was eligible took advantage of a $4 generic drug program, offered by a number of drug stores, the total savings could amount to $6 billion.

$4 generics

Wal-Mart started the $4 generic drug program several years ago and now, many other national drug store and pharmacy chains have similar programs. If a patient's prescription can be substituted for one of the generics on the list, the consumer pays just $4 each time the prescription is filled.

The study examined a large group of people who used generic medications or their brand-name counterparts - drugs like lovastatin or prescription-strength ibuprofen - that also were available for $4 per 30-day supply through a discounted generic drug program.

Despite the very significant savings offered by the generics, the study found that among the patients taking these medications, less than 6 percent used the $4 generic medication programs in 2007. They passed up these savings even though average prescription drug coverage plans ask patients to pay about $10 per 30-day supply for generic drugs and about $25 per 30-day supply for brand-name medications.

$5.8 billion in potential savings

If all eligible patients used the discount programs in 2007, the researchers say society would have saved $5.8 billion on prescription drug spending. Why do consumers pass up this savings? The study doesn't address that, though researchers suggest the individual savings, on a case-by-case basis, might not seem that large.

"Although just half of the potential users of the $4 programs would have saved more than $22 a year in out-of-pocket expenses, the societal savings are great. This suggests the majority of savings comes from a small proportion of individuals," said the study's lead author, Yuting Zhang, Ph.D., assistant professor of health policy and management, at the University of Pittsburgh.

The researchers conclude that some of the answers to ever-expensive health care may, in fact, be simple. And consumers looking for ways to trim their budgets in these tight times should check to see if their prescriptions are available for $4.

"We are not promoting any specific pharmacy or any retail store's discount generic medication program," Zhang said. "However, if policy makers and clinicians direct patients to low-cost generic programs, patients and taxpayers could save tremendously."

Last week Verizon Wireless said it filed a lawsuit against companies that it said were engaged in sending text spam that results in unwanted charges on consumers' bills.

This week one of the companies named by Verizon, JAWA, of Scottsdale, Ariz., issued a press release, saying the federal judge in the case denied a motion that would have prevented the company from doing business with Verizon customers.

Texas Attorney General Greg Abbott had also filed a similar complaint in Texas. JAWA says that complaint, too, was dismissed by a judge in Austin last week.

TRO granted in Texas

However, Lauri Saathoff, in the Texas Attorney General's Office, told ConsumerAffairs.com that the Texas judge signed a Temporary Restraining Order Against JAWA and other defendants Tuesday, once language issues were resolved.

"This was a big victory for our company" said JAWA Founder and CEO Jason Hope, referring to the Verizon case. "Verizon Wireless is trying to use its dominant position in the wireless market to put third party content providers like JAWA out of business and we are going to fight them every step of the way."

Verizon had sought a temporary restraining order to stop JAWA, Eye Level Holdings, and other interconnected companies, from doing business with Verzon Wireless customers. U.S. District Judge David G. Campbell denied the motion, even though he said Verizon had "submitted specific evidence that Defendants are doing business through shell corporations, using false business addresses, using websites that do not comply with industry standards and that trick consumers, and using diversionary software to prevent Plaintiff from discovering these activities."

Charges of ‘cramming’

Verizon claimed the Defendants baited consumers into providing their cell phone numbers, then charged them for monthly subscriptions to various content, a practice known as “cramming.”

But Campbell denied the motion for a TRO, saying the language in the proposed restraining order "is too general, and too focused on disputed factual matters, to give Defendants meaningful guidance as to precisely what actions would be enjoined."

At the same time, the judge denied JAWA's motion to enjoin Verizon from taking action against it, saying the Defendants had not shown their claims had a "fair chance of success on the merits." Even so, Hope sees the legal stalemate as a victory.

It’s on

"We're not going to take this lying down," Hope said. "Our 240 employees have mortgages to pay and families to feed. I am not about to stand by and allow this corporate giant to put people out of work so it can make a few more million."

Meanwhile, Verizon clearly believes it will prevail in court, once the language in the restraining order is resolved.

"This case is about the fraud committed against us and against our customers, as we outlined in the initial complaint," Debra Lewis, a spokeswoman for Verizon Wireless, told ConsumerAffairs.com. "There will be many hearings and decisions along the way."

The horrific disaster in Japan, and still unfolding nuclear crisis, has sent oil prices spiraling downward on world markets. Japan, a huge oil importer, will likely require much less until it begins to recover from the devastating earthquake and tsunami.

Crude oil for April delivery fell another $2.50 at the New York Mercantile Exchange today, and is now well below the $100 a barrel mark. Brent crude, the more expensive oil used mostly in Europe, is trading at around $110 a barrel, down about $10 from last week.

But despite the falling oil prices, gasoline prices have yet to follow. The national average price of self-serve regular today is $3.556 a gallon, according to AAA, up four cents a gallon from last week. The price is a fraction of a cent lower than yesterday's average.

In fact, the price is up more than a dime a gallon in Hawaii, the state with the most expensive fuel. The AAA Fuel Gauge Survey shows the average price of self-serve regular in Hawaii has eclipsed the $4 a gallon mark, to $4.016 a gallon. It was $4.896 a week ago.

Even Wyoming, the state with the cheapest average gas, has seen an eight-cent surge in its average in the last seven days.

Analysts say supply and demand was never a factor in the recent price run-up. Rather, oil traders were concerned that political violence in the Middle East could spread, perhaps eventually threatening the flow of oil to the West.

Verizon Wireless will introduce a new smartphone Thursday, though it's getting none of the buzz accompanying Verizon's iPhone. But the new HTC ThunderBolt has something the iPhone doesn't - 4G speed.

Though Verizon rolled out its much-faster 4G network late last year, until now it has not sold a smartphone that runs on it. The faster network was accessible only through air cards, attached to PCs.

Three more smartphones in the wings

The Thunderbolt is the first 4G smartphone, though at least three others are expected later this year. Verizon Wireless has promoted future 4G phones from Samsung, LG and Motorola.

The ThunderBolt goes on sale March 17 for $249.99, with a two year contract. It's powered by Android 2.2 and features the latest version of HTC Sense, which offers enhancements including new personalization options, a consolidated e-mail inbox, and special camera effects and filters.

Download speeds of 5 to 12 mbps

Because it operates on the 4G LTE network, Verizon said customers can expect download speeds of 5 to 12 Mbps and upload speeds of 2 to 5 Mbps in 4G Mobile Broadband coverage area. That area is rather limited now, but should cover a wide area of the country by the end of the year.

It has a 4.3-inch WVGA display and 8-megapixel rear facing camera and HD (720p) video recording 1.3-megapixel front facing camera with video chatting capabilities. It's powered by Qualcom's 1GHz Snapdragon processor.

In a new feature, the Thunderbolt will have Mobile Hotspot capability, which means it can share its  4G connection with up to eight Wi-Fi-enabled devices. Consumers who purchase the phone right away get that feature for free. After mid-May, it will cost $20 for two gigabytes per month.

Sen. Al Frankin (D-MN) is, by trade, a comedian, but he's been very serious as a lawmaker. Before an artists' group in Austin, Tex., Frankin warned that corporations are out to destroy the Internet, and it's no laughing matter.

"I came here today to warn you that the party may almost be over," Franken told artists attending the South by Southwest Interactive Festival. "There is nothing more motivated than a corporation that thinks it's leaving money on the table. They are coming after the Internet, hoping to destroy the very thing that makes it such an important tool for independent artists and entrepreneurs -- its freedom and openness."

Franken recounted for his audience the ways in which the Internet has opened up opportunities for artists and benefited consumers. He said "Net neutrality" laws protecting equal access to the Internet are vital to protecting and maintaining those opportunities.

Equality

"Net neutrality means that content -- a web page, an email, a download -- moves over the Internet freely, and it moves at the same speed no matter what it is or who owns it," Franken said. "So an email from President Obama and an email from your Tea Partier uncle come in at the same speed."

Franken pointed out that Net neutrality is actually the status quo, and he wants to keep it that way. But he warns that major players in the industry have a vested interest in changing things, since they own the physical infrastructure that makes the Internet work.

"Now, let me say something about big corporations. They're not inherently evil," Franken said. "But corporations have a contractual duty -- a legal obligation to their shareholders-to make as much money as they can. And the big telecom companies make lots and lots of money off their ownership of the Internet -- but they've figured out a way to make more."

Paid prioritization

Franken said the industry wants to move toward something called "paid prioritization." There would be, in effect, a high-speed lane for corporations that can pay for it. That, he says, would make these corporations gatekeepers of the Internet, with the power to decide what content can get to its intended audience in the high-speed lane and what content gets stuck in traffic, depending on what makes the most money for their shareholders.

"For American consumers, this would of course be bad news," Franken said. "We'll have a lot fewer viewpoints represented online -- not just creative viewpoints, but maybe even ideological viewpoints. Do you think Comcast would refrain from making it harder for people to watch this speech online if they could do so legally?"

Franken says there are other issues at stake with Net neutrality. He pointed to the number of recent start-ups like YouTube, Facebook and Twitter that have created wealth and jobs. With the economy just beginning to recover from recession, he says, this job creation could be at risk. And that, he says, may provide the leverage necessary to preserve Net neutrality.

Speak up

"I haven't been in Washington that long, but I've heard enough from both parties to know that people there are desperate to hear from successful entrepreneurs like you," Franken said. "Job creators get their phone calls returned. Do not underestimate how much political power you have."

Just as the Internet has proven to be the last, best independent distribution system, he says artists and consumers might be the last, best hope for saving it.

"But we don't have much time," Franken concluded. "Net neutrality is in trouble."

Think someone is making sure your doctor is competent? Don't be too sure.

An analysis of state medical boards by the non-profit public interest group Public Citizen finds that the boards have failed to discipline 55 percent of the nation’s doctors who either lost their clinical privileges or had them restricted by the hospitals where they worked.

Of 10,672 physicians listed in the National Practitioner Data Bank (NPDB) for having clinical privileges revoked or restricted by hospitals, just 45 percent of them also had one or more licensing actions taken against them by state medical boards. That means 55 percent of them -- 5,887 doctors -- escaped any licensing action by the state. The study examined the NPDB’s Public Use File from its inception in 1990 to 2009.

“One of two things is happening, and either is alarming,” said Dr. Sidney Wolfe, director of Public Citizen’s Health Research Group and overseer of the study. “Either state medical boards are receiving this disturbing information from hospitals but not acting upon it, or much less likely, they are not receiving the information at all. Something is broken and needs to be fixed.”

Hospital disciplinary reports are peer-review actions and, as such, are one of the most valuable sources of information for medical board oversight. Subsequent state medical board action against a physician’s license is a crucial next step to protect patients.

Boards have the authority to oversee and even limit the practice of a disciplined physician, which not only yields a more complete record for the purpose of patient safety but also serves to inform other state boards and future employers.

Public Citizen today sent the report to Kathleen Sebelius, Secretary of the Department of Health and Human Services, urging the agency’s Office of Inspector General to reinstitute investigations of state medical boards, something it has not done since 1993. Public Citizen also is notifying the 33 medical boards that have had the worst records in disciplining these doctors.

A physician must have serious deviations of behavior or performance to warrant clinical privilege actions. Of the 5,887 physicians who the state medical boards failed to discipline – many of whom also had a history of medical malpractice payments -- 1,119 of them were disciplined because of incompetence, negligence or malpractice, 605 were disciplined for substandard care and 220 of them were identified as an immediate threat to health or safety.

The implications of this lack of licensing action against physicians with serious medical practice problems can be seen in specific examples.

In Florida, a doctor had hospital privileges permanently revoked in 2002 for incompetence and racked up 10 medical malpractice reports totaling $1 million between 1992 and 2009 for, among other things, an unnecessary procedure, leaving a foreign body in a patient and misdiagnosis. Two patients died. Yet the state of Florida took no disciplinary action against the doctor.

In Illinois, a doctor had clinical privileges permanently revoked in 1999 and accumulated 10 medical malpractice reports between 1992 and 2006 totaling $7 million for, among other things, improperly managing cases, failing to diagnose and failing to identify fetal distress. One patient suffered a major permanent injury while another became a quadriplegic due to a brain injury. Yet Illinois did not discipline the doctor.

Public Citizen is sending its report with supporting documentation to the District of Columbia and the following states, in each of which 50 percent or more of the physicians with clinical privilege reports in the NPDB did not have a licensure action: Alabama, Alaska, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington and Wisconsin.

Much of the coverage in the wake of the Japanese earthquake and tsunami has focused on the effects on the automotive and electronics markets. But there's another major Asian export that will also be in short supply for some time to come.

We're talking, of course, about seafood. Americans' taste for seafood has grown in recent years, with per capita consumption now around 16 pounds annually, according to the National Oceanic and Atmospheric Administration (NOAA).

Japan exports roughly 35 percent of its annual seafood harvest, about $833 million worth, to the United States, the world's third-largest importer of seafood. China, the world's largest producer and consumer of seafood, is likely to take up some of the slack and higher prices can be expected to reduce demand somewhat.

The domestic U.S. seafood industry has been in something of a slump since Hurricane Katrina and the BP oil spill in the Gulf of Mexico and many consumers remain wary of eating farm-raised fish, so it's an open question where replacement supplies will come from.

Whatever happens in the short term, the U.S. Department of Agriculture (USDA) says we'll all be eating more farm-raised fish by 2020, when 50 percent of the U.S. seafood supply will come from aquaculture. Presently, more than 70 percent of the seafood consumed in the
United States is imported, and at least 40 percent of that is farm-raised.

There used to be a lot of fish in the sea but the levels of many of the most prized specimens have lately fallen to dangerous levels. So it's possible that a pause in Japan's fishing activities will help Mother Nature regain her footing, even while her biped offspring suffer.

Complaints about gift cards are nothing new. Consumers have long complained about excessive fees that eat away at the value, and difficulty in redeeming the cards for merchandise.

“I received an American Express $100 gift card and used it once for $37,” Dyanna of Barrington, R.I., told ConsumerAffairs.com. “When I tried to use again to buy merchandise at Amazon I was told there was a problem because the purchase was for more than remainder on the account - about $63.”

When Dyanna tried to use the card for lesser purchases, she said she was told there was a “hold” on the card because the new CARD Act prohibits the sale of gift cards with an expiration date less than five years. It’s possible hers was issued before the law took effect.

Gift card rules changed last year, and are supposed to provide more consumer protections. You can find a good explanation here. Dyanna needs to find out when and where the card was purchased, and try again to get someone at American Express to understand her issue.

Free delivery rebate

Rebates are often a source of trouble. Frankly, they are usually offered to entice consumers into thinking they are getting a lower price. The company offering the rebate hopes most consumers won’t go to the trouble of following through on the paperwork to actually get the rebate.

Warren, of Lake Elsinore, Calif., said he bought a washing machine online from Sears and filled out the advertised free delivery rebate, saving him about $70.

“I even checked with the delivery department and a nearby store that it was valid for free delivery rebate,” Warren told ConsumerAffairs.com. “Four months later, the online rebate center said my application was still ‘in process’, but when I called again, they said that my application was already denied because any ‘sales item’ did not qualify.

Warren said he went back to the Sears site and there was no mention of a free delivery rebate. Without printing out a copy of the online rebate form he filled out, he has no proof he ever applied for a rebate. The lesson: if you apply for a rebate online, print and keep a copy.

Bad impression?

Lori, of Bolingbrook, Ill., has a problem with her Samsung Impression phone she purchased in April 2010.

“The touch screen went out this week. Text messages do not send or delay and consequently, we sent several duplicate texts and have been charged double our normal monthly billing rate,” Lori told ConsumerAffairs.com. “The water damage indicator turned pink and the phone has not been anywhere near water. When I was in the AT&T store, two other customers were there to report the exact same issues with their Samsung Impression phones. All three of us were told that it was our fault due to water damage.”

The Samsung Impression has a pretty good reputation as a feature phone, as far as we can tell, but we have gotten at least one other simiar complaint about the phone in the last year. If you have experienced a similar problem, however, please let us know.

Use the warranty

Arlette, of Marion, Iowa, purchased an HP laptop at Wal-Mart right after Christmas. Within weeks, she said, she began having problems with the mouse.

“I just figured it was me as I have never used a laptop before,” she told ConsumerAffairs.com. “Others have tried the laptop and confirmed that there definitely is something wrong. Wal-Mart will not take it back as their policy is refund or exchange in 15 days. HP customer service says their policy is 21 days. What am I to do? I invested over $500 and have a product that is not working properly?”

Arlette received a negative reply because she asked for a refund. However, the machine should still by covered by HP’s factory warranty so she should ask that it be repaired. From her description of the problem, it sounds like a glitch in the software that controls the mousepad, something that could be easily fixed.

Homeowners who purchased homes at the height of the real estate bubble sometimes face a double-whammy. Not only are they underwater, owing more than their home is now worth, sometimes they have an adjustable rate mortgage that are adjusting higher.

People in these challenging circumstances can be easy targets for operators of refinancing scams. Fraudulent refinancing offers may begin with a call from an "underwriter," who may refer to the homeowner's good payment record, good credit, or current mortgage rate to confuse the homeowner into believing that the call is from the homeowner's current mortgage lender.

Alarm bells

The refinancing offer may almost sound too good to be true: a lower interest rate, no closing costs, guaranteed approval, no required appraisal, and a speedy closing. In this climate those kinds of deals are few and far between, so such an offer should set off alarm bells.

But the victim is caught off guard, since the scammers has created the impression that their current mortgage lender is offering the deal. Wanting to believe that they are finally getting a break, they don't question the offer.

After the caller convinces the homeowner to refinance, the homeowner is asked to pay a fee to proceed with the refinancing, which can be as high as two mortgage payments. Once the homeowner provides payment for the refinancing, nothing happens. The money and the scammer are gone and the loan never closes.

Hard to detect

"These types of scams are hard to detect because the refinancing process can be confusing, and terms, fees and conditions of a refinance can vary from person to person," said Minnesota Attorney General Lori Swanson.

Even if the loan offer is real, and not a scam, it might not be in your best interest. It's wise to go slowly, and even shop around.

Before agreeing to any refinancing deal, clarify who you are dealing with. If you believe the refinancing offer is being made by your current lender, confirm this before proceeding with the transaction, especially if you are relying on the caller's affiliation with your current lender as a basis to agree to refinance. Fraudsters may make statements about your credit history, payment history or current interest rate to mislead you into believing that they are affiliated with your current bank.

Good faith estimate

You should see an offer in writing before agreeing to any terms. You are entitled to certain disclosures about your refinancing, including a good faith estimate, which outlines the fees associated with the refinance, and truth-in-lending statement, which spells out the APR (annual percentage rate), representing the total cost of the loan for a year.

While the good faith estimate and truth-in-lending statement provide the borrower with the information needed to determine the cost of the mortgage, they do not prevent the borrower from being overcharged. You should shop around to make sure you are getting the best loan.

Because refinancing fees can be rolled into the loan, they are easy to disguise, and unscrupulous lenders may offer you a great rate and no "out-of-pocket" expenses, while charging excessive fees that are financed through the loan. Fees are oftentimes based on your credit and financial profile, and can vary from person to person.

Pressure

If the loan salesperson applies pressure of any kind, it's a very bad sign. It may be tempting to lock in immediately when offered a great rate with great terms, but rates may go up or down, and taking a day or two to consider the offer or research the company should not alter the refinance offer too drastically.

Watch out for the term "pre-approved." It really means nothing. You are not guaranteed a loan or a rate until you have undergone a thorough credit check. Anyone who tells you differently has a different agenda.

Finally, don't agree to or sign anything that is contrary to what you were promised. Many consumers find themselves agreeing to an arrangement in writing or in a recording that is different from the offer given to them. It is difficult to dispute an unauthorized charge if there is a contract or recording that shows you agreed to the arrangement.

After the Sept. 11, 2001 terror attacks on New York and Washington, Los Angeles traffic reporters could be heard ruminating about the effect of the East Coast attacks on West Coast drivers' behavior. One reporter said LA drivers were being “much more considerate” than usual.

Now Californians are fearful that damage to Japanese nuclear power plants will leave them dusted with harmful amounts of radiation. That's creating a land rush business for the few U.S. manufacturers of potassium iodide.

Potassium iodide is administered to protect the thyroid gland from radiation poisoning when one is exposed to high doses of radiation. It blocks absorption of harmful radioactive iodine.

But is this really necessary in California? Health officials say no and caution that there is a risk of side effects in people who are allergic to shellfish or who have existing thyroid problems.

One public health official noted that Japan has evacuated residents who live within 12 miles of the troubled nuclear plants. The West Coast of the United States is more than 5,000 miles from Japan, which would seem to minimize the risk of harm, he noted.

The Wall Street Journal reported that fearful Americans had bought up nearly all of the existing supplies of potassium iodide from companies such as Anbex Inc., of Williamsburg, Va.

"Those who don't get it are crying.  They're terrified," a company official said.

The overall inflation rate remains fairly low, but the costs of certain items have been rising for months, putting consumers – who have to buy these items – under stress.

While many expenses can be cut or postponed, it’s hard to do anything about the budget items of food and gasoline. We have to eat and we have to get to work and back.

In fact, consumers do appear to be spending slightly less on food. According to a report by CredAbility, a financial services counselor, overall spending on food was down 2.5 percent in February, among the company’s clients.

However, spending on gasoline was higher. The company says spending on gasoline was up more than seven percent in February from February 2010.

Basic necessities

"Gas and groceries are among our basic necessities," said Michelle Jones, senior vice president of counseling for CredAbility. "Both our commute and putting food on the table are getting more expensive and, for families already struggling to make ends meet, these added costs only make it more difficult."

How can you save money on both food and gasoline? Here are some tips or saving on gas:

• Look for opportunities to carpool - Work with neighbors and co-workers to share the expense of getting kids to school and driving to work.
• Telecommute - If your job requires little more than a computer, try and work from home one or more days per week to cut down on commuting costs.
• Look for the lowest prices - Websites, such as www.gasbuddy.com, keep track of gas prices throughout the country and post them. You can also download an app for your smart phone and get prices on the go.
• Look for discounted gas or rebate options - Some retailers offer discounts on gas for shopping in their stores or using a specific card. Costco offers a cash back rebate on gasoline purchased with the Costco American Express Card. Wal-Mart offers 3 cents off per gallon discount if you use a pre-paid gift card or store credit card.
• Pay cash for gas - If you don't know how much you are spending in gas, or you are struggling to pay off gas purchases made on a credit card each month, use cash to pay for gas.
• Lighten your load - If you have a trunk full of stuff, you are getting fewer miles per gallon. Empty your trunk and save.
• Keep the appropriate air pressure in your tires to get the best gas mileage. Reduce the cost to cool down a hot car by using a sun-shade in the front window and parking in a shady area.
• Plan your day so you can combine trips and drive fewer miles.
• Drive the speed limit-speeding reduces your miles per gallon.

 Here are some tips for saving on groceries:

• Make a list, and stick to it - While grocery shopping can be expensive, it is often the unplanned purchases that put the bill over the top. Plan your menus for the week and make a list of things you need before you go to the store.
• Take advantage of coupon savings, special purchases, and buy one-get one promotions - Coupon savings are usually worth the cost of the Sunday paper. In addition to manufacturer's coupons, sites like www.couponmom.com compare in-store specials at many grocery chains. A great sale or double or triple coupon values may make it worth the trip to a store you don't usually go to. For staple items with a long shelf-life, stock up during sales. Avoid buying things you wouldn't normally buy just because you have a coupon.
• Use technology to help you save. There are many apps to help you organize your lists, find coupons, track prices at stores in your area and more. Grocery Pal shows you what's on sale at your local retailers. Apples2Oranges allows you to compare prices on various sizes to see which offers the better deal. Grocery Gadget can help organize your shopping list and track prices for maximum savings. Most apps are available for multiple devices.
• Buy in bulk, sometimes - It may be cheaper to buy 3 dozen eggs, but only if you don't end up throwing out a dozen because they have expired. Compare prices on bulk purchases. Consider shopping for bulk items with a friend and share the cost.
• Eat before you shop - Shopping on an empty stomach will always cost you more at the store. Have a snack before you go and you'll be less tempted to impulse buy.
• Don't limit your shopping to eye level - Many lower cost items, including store brands, are stocked on higher and lower shelves while higher priced items are at eye level.
• Don't assume items are cheaper because they are a larger size or displayed separately - Take a calculator along to determine the price per ounce or pound so you can get the best deal. And remember, larger is not always better. Buy only what you will use.
• Save on eating out - While it may add slightly to your grocery bill, packing your lunch can save you a hundred dollars or more per month when compared to eating out.

Despite all the consumer warnings over the last couple of years about so-called "free trials" of acai berry supplement products, consumers continue to get burned.

"You order a free trial and within days they charged you $84.95," Jeanie, of Candler, N.C. told ConsumerAffairs.com.

She was surprised, since she thought she was simply signing up for a free trial of Acai Ultimate and Purity 12 supplements.

"However, the ad says you have to make sure to take both supplements at the same time," she said. "The second bottle came 10 days later and naturally you only have ten days to verify if you want it or not."

Once signed up, it's pretty hard to cancel. And it's being going on for a long time, as this TV news reports shows.

Read more about other bogus offers and Scams

It takes a lot to get Americans out of their cars, but expensive gasoline has been known to do it. When gas prices rise, so does ridership on public transportation.

With gasoline prices over $4 a gallon in some areas, with predictions of $5 a gallon in the not-too-distant future, even more people may  be eyeing public transportation. The question is, can public transportation handle the increase in passengers?

Ridership increases, along with gas prices

A study released by the American Public Transportation Association (APTA) found that if the national average price of gasoline reaches $4 a gallon, as it did three years ago, it will result in an extra 670 million passenger trips per year on mass transit, for a total of 10.8 billion passenger trips per year.

The study showed that $5 a gallon gasoline would increase annual passenger trips by 1.5 billion. If prices at the pump were to soar to $6 a gallon, there could be an extra 2.7 billion passenger trips per year by consumers forced to give up their cars.

But with municipalities struggling to contain budgets, very few are allocating funds to build more subways and put more buses on the street. Besides, this type of infrastructure additions require significant lead time.

Wake up call

"The volatility of the price at the pump is another wake up call for our nation to address the increasing demand for public transportation services," said APTA President William Millar.  "We must make significant, long-term investments in public transportation or we will leave our fellow Americans with limited travel options, or in many cases stranded without travel options.  Public transit is the quickest way for people to beat high gas prices if it is available." 

Millar says public transit systems in many parts of the country are already seeing a big jump in ridership. The South Florida Regional Transportation Authority in Pompano Beach, Fla., increased by 10.6  percent; Southeastern Pennsylvania Transportation Authority of Philadelphia, Pa., increased by 10 percent;  and the Capitol Corridor Joint Powers Authority of Oakland, Calif., increased by 14 percent.

"We saw this same story in 2008 and several times before where high gas prices caught our country without adequate travel options," said Millar.  "However, this time we can write a happy ending and make sure investment is made to expand public transportation so that more Americans have a choice in how they travel."

But with Congress wrestling with rising budget deficits, very few lawmakers are talking about spending more on public transportation.

Next time you're at the supermarket, check the dairy section. Chances are there'll be a store employee laboriously restocking, reshuffling and rearranging the already-vast yogurt selection.

Yogurt is red-hot these days, especially the Greek variety.

Over the years, yogurt has grown in popularity but it has lost a lot of the – for lack of a better term – zing that accompanied its initial entry into the American consciousness. A lot of yogurt has gotten to look and taste more like ice cream, and low-fat ice cream at that. But Greek yogurt has the slightly tangy taste and a somehow beefier complexion than the more pallid varieties.

What's different about Greek yogurt? Unlike other yogurts, it's strained through a cloth or filter to remove liquid whey. That makes it creamier and bumps up the protein content. It's like the difference between, say, a Guinness stout and a Bud Lite.

So far, Greek yogurt has taken off largely on its own, but that's about to change. The marketing industry's big guns are taking aim at the millions of consumers who haven't yet tried it or haven't yet settled on a particular brand while established brands fight to hold their position.

Translation: lots of yogurt ads coming soon.

Fage, (pronounced “fa-yeh”) largely credited with starting the Greek yogurt marathon back in 1998, is preparing to launch its first national TV campaign, using poetry to position yogurt as an “extraordinary sensory experience.” Chobani, the other early entrant, has also started advertising heavily.

The two companies, which so far dominate Greek turf, have seized about 12 percent of all yogurt sales and the race has hardly begun.

A relative newcomer to the U.S. yogurt market is Alpina, a global giant with a presence in more than 20 countries. It's launching a campaign for its regular – i.e., non-Greek – yogurt, calling it “indulgently creamy.”

Meanwhile, household names Dannon, Kraft and General Mills are stepping up their marketing efforts and planning new advertising pitches. Dannon is said to be preparing to introduce a Greek yogurt to complement its other blends.

General Mills – whose Yoplait is the leading seller among regular yogurts – is reformulating its Greek yogurt with a thicker texture and brighter colored packages and, according to Advertising Age, has hired TV personality Maria Menounos as a spokeswoman.

Can you lose your house to foreclosure, eight years after you've sold it? Technically no, but Carmen, of West Yarmouth, Mass., and her husband have not been able to convince Bank of America.

"My husband and I sold a house at in Bridgewater, Mass., on December 6, 2002," Carmen told ConsumerAffairs.com. "A few months ago we started getting letters and phone calls from Bank of America saying we were in default and were in danger of foreclosure."

Carmen said she called the bank, thinking she could easily clear this up. She couldn't. Even after faxing their closing papers, the bank still insisted the loan was active and they were headed toward foreclosure.

"I went to the local Registry of Deeds and even found an entry showing the loan was paid off and they were still not satisfied," she said.

In a large institution, mistakes are bound to occur, but Carmen and her husband are obviously in no danger of losing a home they no longer own. But the bigger problem for them is Bank of America's insistence they are in default, since that has been reported to credit agencies.

"They have ruined our credit and continue to insist we owe them money on a house we sold eight years ago," Carmen said. "Do we have any recourse? We are having difficulty getting a loan on a car due to this issue."

Carmen should continue trying to find someone at Bank of America who can resolve the apparent misunderstanding. In the meantime, she should contact each of the three credit reporting agencies - Experian, Equifax and Trans Union - and challenge the negative entry by providing documentation showing that the debt was paid off, on time, more than eight years ago.

It's your word against theirs

Jerry of Eugene, Ore., dropped off his Enterprise rental car at the airport at 4:30 a.m., when the Enterprise desk was unstaffed. He left the car in a return parking slot and dropped the key and paperwork into the night slot. He says the car was undamaged when he left it there.

"Two days after I returned the car, a credit card charge of $500 was made to my account by Enterprise," Jerry told ConsumerAffairs.com.

Jerry argued with Enterprise but was unable to resolve the matter. The company says there was damage to the vehicle when they inspected it. Jerry insists it occurred after he dropped it off.

I've notified my credit card company who will refute the charge on my behalf," Jerry said. What else can I do to protect myself from Enterprise simply deciding on it's own to charge me this fee?"

If Jerry had used a digital camera to photograph all four sides of the car after he parked it, and the photographs had time and date stamps, that might be enough to persuade the company. But the lesson here is that dropping off a rental car after hours, and not having someone inspect it before you leave the premises, is risky.

Shrinking lifespan

Just how long should a major home appliance last before it has to be replaced? Kari, of Rockford, Ill., bought a Whirlpool dryer about four years ago and says the motor has already stopped working.

"We had a repairman, contacted through Whirlpool, look at it, and spent $85 just to be told that it would be cheaper to get a new dryer and that this one was old anyway," Kari said. "Yes, their repai rpeople refer to a four year old dryer as 'old.' Tells you how long they expect them to last."

Obviously, before making a major purchase like a washer and dryer, you should conduct some research to see what other consumers say about have to say about it. Judging from many of the complaints about different manufacturers that we've reviewed, it appears that you are often better off purchasing a basic, cheaper unit and not the top-of-the-line. Many of the more expensive units have more features and functions that break down.