Current Events in June 2011

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2011

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    Foreclosure Filings Hit Four-Year Low

    But the housing crisis is far from over

    Last month's foreclosure filings, as counted by foreclosure marketer RealtyTrac, hit the lowest point in four years. Is the housing crises over?

    Hardly.  Banks are still overloaded with bad loans, but RealtyTrac says they are simply waiting before beginning the foreclosure process.

    “Foreclosure processing delays continue to mask the true face of the foreclosure situation,” said James J. Saccacio, RealtyTrac’s CEO. “Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”

    By RealtyTrac's count, a total of 214,927 properties received default, auction or repossession notices last month. That's the lowest number since November 2007. Filings dropped 33 percent from a year earlier and 2 percent from April. One in 605 households got a notice in May.

    This is part of a year-long trend. Foreclosure filings have fallen in the last eight straight months, following revelations that loan servicers broke rules by using robo-signers to process foreclosure documents. Banks began slamming on the brakes as they retooled their in-house processes.

    Weak demand

    Something else may be a work. There is such weak demand from buyers, banks may feel it is self-defeating to place even more foreclosed properties on the market. At some point, however, most industry analysts expect these homes to be put up for sale.

    Meanwhile, an estimated 28 percent of mortgage-holders are now underwater on their loans, meaning they owe more than the house is worth. These homeowners are in the greatest danger of foreclosure, since they have little motivation to hold on.

    High unemployment is also putting added pressure on homeowners, many of whom find they can no longer afford to make their payments.

    As real estate is all about location, the foreclosure crisis continues to be centered in the same handful of states. Nevada had the highest rate of foreclosure per household again last month, with one in 103 getting a notice. Arizona was second, followed by California, Michigan, Utah, Georgia, Idaho, Florida, Illinois and Colorado.

    The number of foreclosure filings in May hit its lowest level in four years...

    A New Way to Find a Parking Space

    Streetline's "Parker" is a free parking app (not a free-parking app)

    The idea of charging highway tolls based on traffic has been around for awhile but how about an app that matches the price of a parking spot to how many drivers are competing for it?

    That's the idea behind Streetline, a start-up firm that yesterday raised $15 million from investors including a venture firm co-founded by Ford Motor Co. chairman Bill Ford.

    "Streetline's pioneering real-time smart parking technology will be instrumental in improving personal mobility across the globe," Ford said.

    Streetline, based in parking-deprived San Francisco, says it will use the $15 million to expand its "suite of sensor-enabled mobile and web-based smart city and smart parking solutions," which it says are "revolutionizing how cities reduce congestion and emissions by tackling a key, but often overlooked source: drivers searching for parking."

    Experts estimate that 30 percent of urban traffic is caused by motorists looking for parking, the company says. Additionally, vehicle emissions resulting from drivers looking for parking are so closely linked that a year-long study found that drivers in a 15 block district in Los Angeles drove in excess of 950,000 miles, produced 730 tons of carbon dioxide and used 47,000 gallons of gas searching for parking.

    Wireless sensors

    Streetline's "smart parking platform" promises to detect the presence of a car through a network of ultra-low power wireless sensors located in individual parking spaces. By downloading the free app dubbed "Parker" onto a smartphone or compatible tablet, consumers can access real-time parking availability – with icons noting more than four spaces available (plenty of parking), more than two spaces available (some parking), or less than two spaces available (limited parking).

    The app also delivers information about parking space time limits, pricing, whether meters take credit cards or coins, and space capacity for select off-street parking facilities including structures and lots.

    Besides San Francisco, the company is deploying its sensors in other California cities and in Maryland, New York, Texas, Utah, and Washington D.C. 

    To download the free Parker app, visit the Android Market or the iTunes Store.

    Yes, that's right -- the app is free.  Not the parking, though.  Although Parker promises to help you find a space, it also promises its municipal customers that it will help them sell their available parking spaces for the best possible (i.e., highest) price.

    A New Way to Find a Parking Space Streetline's "Parker" is a free parking app (not a free-parking app)...

    Lawyers Seek to Tie Zoloft to Birth Defects

    Studies have shown the popular antidepressant carries a slight risk of malformations

    Law firms are drawing a bead on Zoloft and other popular antidepressants, shopping for women who have given birth to infants with serious birth defects.  Stories planted around the Web say various law firms are "reviewing claims," legal jargon for shopping for plaintiffs.

    Zoloft is a selective serotonin reuptake inhibitor (SSRI), the same class of drug as Paxil. Studies have indicated such drugs may carry a slight risk of contributing to serious birth defects and Zoloft is especially vulnerable because it is so widely-used.

    What's complicating the situation is that the risk occurs as early as the first trimester, when many women do not know they are pregnant. By the time the pregnancy becomes known, the damage may have been done.

    Tapering off

    There is then the problem of tapering off Zoloft when the pregnancy is discovered. The drug has a half-life of about one day – meaning that for every day that passes without taking the medication, the level in the blood falls by 50%.

    If one stops taking the drug too rapidly, discontinuation syndrome may develop, with symptoms of weakness, anxiety, insomnia, muscle pain and lightheadedness.

    Tapering off Zoloft should be done only under a doctor's supervision. Women who are clinically depressed then face the problem of finding another drug that effectively treats their depression without undue risk of birth defects.

    The U.S. Food and Drug Administration (FDA) advises women who are pregnant or thinking about becoming pregnant should not stop any antidepressant without first consulting their physician and says the decision to continue medication or not should be made only after there has been careful consideration of the potential benefits and risks of the medication for each individual pregnant patient.

    A 2006 study published in JAMA reported that women who stropped taking their meds during pregnancy were five times more likely to have a relapse of depression during the pregnancy than women who continued to take their medications.

    No warning?

    Law firms readying litigation against Zoloft are likely to argue that the drug's manufacturer, Pfizer, does not adequately warn women about the risk of birth defects, although in November 2006, the FDA added warnings about the risks, which include heart defects, persistent pulmonary hypertension in newborns (PPHN), lung defects, abdominal defects, cranial defects and other malformations.

    In June 2007, studies found an association between the use of antidepressants like Zoloft early in the pregnancy and a risk of abnormal skull development, gastrointestinal abnormality and brain defects.

    In September 2009, a study published in the British Medical Journal found that SSRI antidepressants like Zoloft increase the risk of heart defects when taken during the first trimester, a time when many women do not know they are pregnant.

    Lawyers Seek to Tie Zoloft to Birth Defects. Studies have shown the popular antidepressant carries a slight risk of malformations....

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      Lower Gas Prices Keep May Inflation Down

      But core rates rises at fastest pace in three years

      The prices consumers pay for products and services rose in May, but not by much. The Labor Department reports May's Consumer Price Index (CPI) rose 0.2 percent, led by food, new cars and apparel.

      The decline, the first in six months, was mostly made possible by a one percent decline in the price of gasoline. Fuel costs, which had risen for several straight months, peaked in early May and have been falling ever since.

      When the volatile food and energy sectors are excluded from the equation, however, the so-called “core” inflation rate rose 0.3 percent, the biggest jump in nearly three years. That causes economist Joel Naroff, of Naroff Economic Advisors, in Holland, Pa., to view inflation – not as slowing down – but as picking up speed.

      “I am not exactly sure what Ben Bernanke is looking at but my view of the inflation situation is it is on a clear upward trend,” Naroff said. “The core will likely reach if not exceed the Fed Chairman?s desired level by the end of the year.  And if the economy does recovery as energy prices decline, look for the core to keep on rising.”

      Last month vehicle and clothing costs soared, medical care was, as usual, more expensive, education expenses jumped and the cost of entertainment climbed. The increases may have been modest, but Naroff says prices rose almost across the board.

      There was also an indication of what is happening with real estate values. The bottom line, he says, is that the Fed is not likely to raise rates anytime soon.

      The May inflation rate looks tame, until you look more closely...

      Target Expands Recall of Child Booster Seats

      Restraint buckle can open unexpectedly

      Target is recalling about 375,000 Circo child booster seats. The booster seat’s restraint buckle can open unexpectedly, allowing a child to fall from the chair and be injured.

      Target recalled 43,000 of the seats in August 2009. The current recall was launched after additional reports of injuries and mishaps.

      Target has received 10 additional reports of booster seat buckles opening unexpectedly, including three reports of bumps and/or bruises when a child fell forward out of the booster seat, hitting an object or the floor.

      The expanded recall involves all Circo Booster Seats, including those sold as early as 2005. The plastic booster seats are blue with green trim and a white plastic restraint buckle. They attach to an adult chair to boost a child to a table. “Circo” and “Booster Seat” can be found on a green label located in the front of the booster seat.

      Target stores sold the seats nationwide from January 2005 through June 2009 for about $13. They were made in China.

      Consumers should immediately stop using the recalled booster seats and return them to any Target store for a full refund.

      For additional information, contact Target at (800) 440-0680 between 7 a.m. and 6 p.m. CT Monday through Friday, or visit the firm’s website at www.target.com

      Target Expands Recall of Child Booster Seats Restraint buckle can open unexpectedly ...

      A New Wrinkle In Fake Payday Loan Scam

      Copy cat scammer claims to be police officer threatening arrest

      For a couple of years now, a scammer, described as “having a thick accent” has been terrorizing consumers, posing as a debt collector for a payday loan company and making all sorts of abusive threats. The objective is to frighten victims into paying a phony debt with their debit or credit cards.

      While this particular scam has continued unabated over the months, it appears to have spawned at least one copy cat scam, which has shown up in North Carolina and perhaps other states as well. In North Carolina, consumers have reported phone calls from a scammer claiming to be a police officer, prepared to arrest the victim for an unpaid debt. Of course, nothing like that is legal.

      “Don’t let scammers intimidate you into paying debts you don’t owe,” said North Carolina Attorney General Roy Cooper. “These calls come from crooks, not real law enforcement officers.”

      The callers say they are from the “Federal State Bureau of North Carolina,” a completely fictitious, and nonsensical agency. The callers tell people they owe a debt and must pay it now or go to jail. The telephone number is a Google Voice number that Cooper says could be coming from anywhere in the world.

      If you receive a similar call:

      • Don’t give out your personal information, particularly your bank account and credit card information.
      • Check your credit reports for free at www.annualcreditreport.com or 1-877-322-8228 to spot any unauthorized credit cards or loans taken out in your name.
      • Consider a free security freeze to block unauthorized use of your credit. For information about how to get place a security freeze on your credit.
      • Remember that legitimate debt collectors will provide you with written proof of a debt. They are not allowed to use profanity or threaten you with violence or arrest, and they must follow rules about when and how they contact you.

      The fake payday loan scam continues, and is attracting copy cats...

      Consumers Warned About Firepot Fuel Gels

      Popular decorator item can create fire hazard

      Firepots that burn a gel fuel come in all kinds of decorator shapes and colors and have become popular additions to patios. They are sold at a wide assortment of retailers, including Walmart.

      But Illinois Attorney General Lisa Madigan is warning consumers to immediately stop using the fuel gels that come with firepots, saying they can cause severe burns.

      Madigan is reacting to recent media reports that have revealed severe and even life-threatening burns and injuries suffered by people using the scented fuel gels, which are poured into firepots for use as outdoor candles. She says reports show consumers were injured when they added more fuel into the pot in an attempt to light or re-light the firepot, causing the product to explode into a fireball.

      Safety review

      One manufacturer, Napa Home & Garden Inc., already has pulled its products from Bed Bath & Beyond stores nationwide as it reviews product labeling for safety, and the federal Consumer Product Safety Commission (CPSC) has opened an investigation into fire gels.

      In a statement Tuesday, the CPSC said its staff had initiated a probe into serious burn incidents apparently related to gel fuel used in firepots.

      “While CPSC's investigation is still open and active, consumers should be aware of the burn and poisoning hazards that can occur from using illuminating fuels in firepots, tiki torches, and other consumer products,” the agency said in a statement.

      The danger, apparently, comes when consumers attempt to add fuel to a firepot that is already lit.

      “Adding fuel to an open-flame is a potentially hazardous activity, with a risk of burns and uncontrolled fires,” the CPSC said.

      Multiple dangers

      Most gel fuels are sold in special child-resistant packaging because they generally consist of petroleum distillates, a specific class of hydrocarbon chemicals. This class of chemicals is particularly hazardous if ingested or breathed into the lungs. Safety officials are now focusing on its volatile nature as well.

      “Fuel gels can be extremely dangerous, and yet most people are unaware of the burn risks they pose,” Madigan said.

      Madigan said consumers shojuld stop using fuel gels while the CPSC investigates. Madigan also called on business owners to pull all fuel gels from shelves and for consumers to report firepots or fuel gels they see on store shelves to her office.

      Safety officials are investigating whether firepots that use fuel gels are too dangerous...

      What's On Your Mind? Verizon Wireless, Sears, Expedia

      Our daily look at consumer reviews

      Got the latest smartphone? Jodi, of Centereach, N.Y., doesn't. She says she has just an ordinary “old” phone that allows her to talk and send text messages through Verizon Wireless.

      “My plan is for $59 per month, however, with all of the hidden fees it always comes in around $83,” Jodi told ConsumerAffairs.com. “I still paid it early this month but they slapped me with a $167 bill for overage charges!”

      Jodi said the company was willing to credit her $41, but she thinks that's not nearly enough. Our advice is for Jodi to take her bill to a Verizon Wireless store and ask a customer service rep to explain to her why her bill is so high. If she doesn't have an unlimited text package on her account, text messages can really add up.

      Out in the cold

      Randy, of Honolulu, Hi., is another consumer having problems with a new, high-tech refrigerator.

      “Our Kenmore Elite Trio Refrigerator, model number 59676593600, is stuck in defrost mode for the third time,” Randy said. “Sears replaced the touchpad twice, the defrost sensor and thermostat sensor once. We're waiting the two weeks till they come and the fridge is starting to stink. Any diagnostic codes so as to not be at the BlueGuy’s mercy, and actually know what’s failed?”

      If anyone has a clue, let us know and we'll pass it on. If we were in the market for a new fridge, we think we would look for a stripped-down model with no bells and whistles. That way, there are fewer things to go wrong.

      Your word against theirs

      If you use an online travel site to book your travel, you might save a few dollars. Then again, you might not.

      “I booked a vacation package, a trip for two to Las Vegas,” Jason, of Campbell River, British Columbia, told ConsumerAffairs.com. “One week before we were to travel my wife broke her ankle. I called to cancel the trip. The agent at Expedia told me that I would get a refund for the hotel because I called early enough. I was told I would receive a credit with the airline for the flight. I asked the agent if there was a reference number for the call and was told I didn't need one -- everything was canceled.”

      Two months later Jason said he still had not received the credit. He called back and said he was told that he no longer would get a refund because he did not cancel the trip.

      “After being on hold for 45 minutes, then being disconnected, I called back,” he said. “The new agent could not find a record of my call and we started over. After explaining again I was put on hold for 30 minutes then disconnected. I eventually was able to speak to an agent in the escalation department.”

      But not only was there no recorded transaction, Jason said the agent told him the notes in the file said he didn't cancel. It's worth remembering that most discounted travel is not fully refundable.  That's one of the reasons it's discounted.  Next time, Jason should  look into optional trip insurance, which can pay all or part of the cost if you have to cancel your plans.

      Here is what's on consumer's minds today: Verizon Wireless, Sears, Expedia, Out in the cold, Your word against theirs and online travel sites....

      Latest Scam Email Claims to be From the FBI

      Recipients are instructed to send $350 immediately

      One of the latest email scams claims to be from none other than the FBI, according to the Oregon Department of Justice, which says it has received numerous complaints.  So far, we've seen no alerts from the U.S. Department of Justice or the FBI.

      The fake email(image below) claims to be from the FBI and requests $350 from the recipient to obtain a “Clearance Certificate.” The email threatens to send an agent to the recipient’s home for questioning, and/or other legal sanctions if they fail to contact the Department of Homeland Security within 24 hours in order to obtain their “Clearance Certificate.”

      The email also lists contact information for the FBI in WashingtonD.C., and the Economic and Financial Crimes Commission in Lagos, Nigeria.

      What to do

      Do not respond to these emails. They are being sent by scam artists to a large number of people with the intent of obtaining personal or financial information.

      Fake email solicitations – also commonly known as Nigerian email scams – are among the most common scams reported

      To avoid the FBI email scam, Oregon Attorney General John Kroger offers the following advice:

      • Be wary of unsolicited emails.

      • A government agency will never request your contact information, Social Security Number, banking information, or credit card numbers in an email.

      • A government agency does not threaten people with legal action such as investigation, jail, or prosecution for failure to respond to an email solicitation. 

      • Consider any email solicitation that lists multiple offices as a red flag.

      Latest Scam Email Claims to be From the FBI. Recipients are instructed to send $350 immediately....

      Formaldehyde Added to List of Carcinogens

      Chemical industry opposes action, which has been pending for years

      The U.S. Department of Health and Human Services (HHS) has, after years of prodding, added formaldehyde to its list of known cancer-causing agents, along with a botanical known as aristolochic acids.

      Six other substances were added as possible human carcinogens.— captafol, cobalt-tungsten carbide (in powder or hard metal form), certain inhalable glass wool fibers, o-nitrotoluene, riddelliine, and styrene.

      The Environmental Protection Agency (EPA) has for years been trying to update its risk assessment for formaldehyde but has been stymied by resistance from the chemical manufacturing industry.

      The chemical industry was quick to criticize HHS' decision.

      “We are extremely disappointed that HHS has moved forward with listing formaldehyde ... as a ‘known human carcinogen.’ By doing so, HHS ignored the recently released, independent, peer-review report from the National Research Council, which strongly questioned whether the scientific evidence supports the claim of human carcinogen for leukemia. Also, the World Health Organization indicates that normal human exposures do not present a risk of cancer,” said Cal Dooley, President and CEO, American Chemistry Council.

      The Report on Carcinogens is a congressionally mandated document that identifies agents, substances, mixtures, or exposures in two categories: known to be a human carcinogen and reasonably anticipated to be a human carcinogen.

      A listing in the Report on Carcinogens does not by itself mean that a substance will cause cancer. Many factors, including the amount and duration of exposure, and an individual’s susceptibility to a substance, affect whether a person will develop cancer.

      "Reducing exposure to cancer-causing agents is something we all want, and the Report on Carcinogens provides important information on substances that pose a cancer risk," said Linda Birnbaum, Ph.D., director of both the National Institute of Environmental Health Sciences (NIEHS) and the National Toxicology Program (NTP).

      The process

      Once a substance is nominated by the public or private sector and selected for consideration, it undergoes an extensive evaluation with numerous opportunities for scientific and public input. There were at least six opportunities for public input on each substance, HHS said. The National Toxicology Program (NTP) used established criteria to evaluate the scientific evidence on each candidate substance under review and drew upon the scientific expertise of several federal agencies, including the National Institutes of Health, Centers for Disease Control and Prevention, Agency for Toxic Substances and Disease Registry, U.S. Food and Drug Administration, U.S. Environmental Protection Agency, U.S. Consumer Product Safety Commission, and Occupational Safety and Health Administration, HHS said in a statement.

      "The strength of this report lies in the rigorous scientific review process," said Ruth Lunn, Dr.P.H., director of the NTP Office of the Report on Carcinogens. "We could not have completed this report without the significant input we received from the public, industry, academia, and other government agencies."

      Formaldehyde

      Formaldehyde was first listed in the 2nd Report on Carcinogens as a substance that was reasonably anticipated to be a human carcinogen, after laboratory studies showed it caused nasal cancer in rats.

      There is now sufficient evidence from studies in humans to show that individuals with higher measures of exposure to formaldehyde are at increased risk for certain types of rare cancers, including nasopharyngeal (the nasopharnyx is the upper part of the throat behind the nose), sinonasal, as well as a specific cancer of the white blood cells known as myeloid leukemia, HHS said.

      Formaldehyde is a colorless, flammable, strong-smelling chemical that is widely used to make resins for household items, such as composite wood products, paper product coatings, plastics, synthetic fibers, and textile finishes. Formaldehyde is also commonly used as a preservative in medical laboratories, mortuaries, and some consumer products, including some hair straightening products.

      Aristolochic acids

      Aristolochic acids have been shown to cause high rates of bladder or upper urinary tract cancer among individuals with kidney or renal disease who consumed botanical products containing aristolochic acids. Aristolochic acids are a family of acids that occur naturally in some plant species.

      Despite a warning issued in 2001 by the U.S. Food and Drug Administration that advised consumers to discontinue use of any botanical products containing aristolochic acids, they can still be purchased on the Internet and abroad, and may be found as a contaminant in herbal products used to treat a variety of symptoms and diseases, such as arthritis, gout, and inflammation.

      Formaldehyde Added to List of Carcinogens. Chemical industry opposes action, which has been pending for years...

      Study: Doctors Prescribe Too Many Drugs

      Fewer drugs would save lives and money, researchers say

      Americans would not only save money, but might be in better health if they didn't take so many prescription drugs. That's the conclusion of researchers at the University of Illinois at Chicago College of Pharmacy.

      Their study appears in the online edition of the Archives of Internal Medicine as part of the journal's "Less is More" series.

      Several studies over the past decade have concluded that the use of many new and frequently-prescribed medications was either harmful or not beneficial to patients, says Bruce Lambert, co-author of the paper and professor of pharmacy administration.

      Using the prior research as a guide, 24 principles were developed that can help prescribers avoid excessive and harmful prescribing, said Lambert, who is director of UIC's Center for Education and Research on Therapeutics.

      Radical, but conservative

      "None of these principles are particularly novel, nor should they be terribly controversial," he said. "But taken together they represent a radical shift in the way clinicians think about and prescribe drugs."

      Ironically, the radical shift is known as "conservative prescribing," and if adopted by every prescriber, could save many lives and dollars, Lambert said.

      Dr. Gordon Schiff, co-author of the report, says physicians need to move away from the mindset that leads them to heavily prescribe the "latest and greatest" new drugs, to "fewer and more time tested is best."

      24 principles

      The report identified 24 principles of conservative prescribing, including the consideration of non-drug therapies such as diet, exercise or physical therapy. The report says doctors should look for and treat underlying causes rather than just masking symptoms with drugs; emphasize prevention rather than treatment.

      Physicians are also urged to avoid frequent drug switching and be vigilant for side effects when a patient begins a new drug therapy.

      Americans spend more than $307 billion on medication in 2010, according to the consulting firm IMS Health. The most-prescribed drugs are those that lower cholesterol and fight depression.

      Researchers say Americans would live longer and save money by taking fewer drugs...

      Fixing A Big Company's Mistake Is Rarely Simple

      One consumer's descent into customer service hell

      Forgive Tammy, of Barre, Vermont, if she feels a bit like Don Quixote, but tilting at windmills is nothing compared to trying to straighten out a mistake in a major corporation's customer service department.

      Her saga began on March 31, when her mother stopped by her home and asked if she could use her daughter's credit card to order service from DIREC TV.

      “She does not have a credit card and one is required in order to set up an account,” Tammy told ConsumerAffairs.com. “We called their number and carefully explained, at least three times, that the phone number we were calling from was not my mother's. We gave them her number several times.

      After a lengthy conversation, Tammy said the order was placed. The installation cost of $21.15 was charged to her VISA card on that date, and was subsequently paid.

      Signs of trouble

      The first sign that this relatively simple transaction had gone horribly wrong was when Tammy got a call two days before the scheduled install, verifying that the equipment was being installed at her home.

      “I explained, again, that they were calling the wrong number,” Tammy said. “The staff person assured me she would take care of that. One day before the scheduled visit, DIREC TV called me again to verify the site. Again, I gave them my mother's number.”

      But it still wasn't straightened out, Tammy says. On the day of the installation, she says the dish installation person called her to make sure someone was home for the install. Once again, she says she explained the whole thing again and gave him her mother's number.

      “Two hours later, the driver called me again to say he was running late,” Tammy said. “By that time I had given up any hope that they could get the correct phone number on their records so I just said OK and called my mother to make sure she was home.”

      Somehow, the equipment was installed at the correct location and Tammy breathed a sign of relief. But her ordeal was just beginning.

      Mystery charge

      “On May 28th, I opened my Visa bill to make the payment,” Tammy said. “On it is an April 11, 2011 charge from DIREC TV in the amount of $862.66!”

      Tammy said she called the DIREC TV customer service line and went through the lengthy process of getting a live person on the line, only to be told that there was no record of the charges anywhere. She said she was told to complete the dispute form that was emailed to her and fax it back to the fax number provided. She said she do so within the hour.

      “According to the instructions and to the lady I was speaking with, they needed to get back to me within 10 business days, which put the date at June 10, Tammy said. I called on June 9 in hopes that perhaps it had been taken care of, but it had not.”

      Once again, Tammy said she had to go through the lengthy process of getting a live person on the line. Even after that, there was more confusion.

      “The system obviously doesn't recognize my mother's phone number, and would only repeat my number as being the one that they 'see I am calling from.' When I finally got a live person, she had no idea what I was talking about and I had to explain it all again.”

      Tammy said she called again the following day and had to explain everything one more time.

      We'll get back to you

      “I was told that it is a matter for the Financial Department and that they would return my call on that day,” Tammy said. “I asked if there was a job number, or anything, that I could refer to in case I didn't hear from them and had to call back. She said there was not. Needless to say, they never called.”

      On June 11, Tammy said she tried again, calling the DIREC TV number listed for her area. The recording said they were closed on weekends. She called another toll-free number and told the automated system she was calling about “billing questions.”

      “There was a lot of squealing on the line, then another recording that said 'We're sorry, your call was unable to be completed. Please hang up and dial the toll free number again.' I did call again and got the same results,” Tammy said.

      She called back and this time, said she pushed the button for “new service.” Almost instantly, she was connected with a customer service rep.

      “I explained most of it again before she agreed me that it was a matter for the billing department and that she would transfer me,” Tammy said. “After a while, the recording came back on and I was right back to the same beginning menu.”

      Nothing we can do

      After spending most of her Saturday morning making calls, navigating the phone tree and sitting on hold, Tammy said she was finally able to speak with a supervisor. After explaining her situation again, no doubt memorized by now, the supervisor told her what everyone else had told her.

      There was no charge on her account, because she didn't have an account. There was also no charge on her mother's account. As for resolving the $862.66 charge on Tammy's credit card, she said the supervisor saw no way for his company to rectify it.

      “He suggested that I simply go through my financial institution, 'which is the way they prefer it,'” Tammy said.

      So Tammy's only recourse is to dispute the erroneous charge with her credit card company, letting them charge back the amount to DIREC TV. That may, in fact, resolve the issue, but won't compensate her for the hours she spent, away from her small business, dealing with the matter.

      “I am quite angry at how absolutely impossible it seems to solve what I consider a simple matter,” Tammy said.

      Why are large companies seemingly incapable of resolving mistakes? Maybe it's an over reliance on automated systems or too few people in positions of accountability. Whatever the reason, it is changing the way many consumers view the companies they do business with – or in Tammy's case, don't do business with.

      And it all began when she did a favor for her mother. These days, it seems, no good deed goes unpunished.

      When a big company makes a mistakes, it can be nearly impossible to find someone who can resolve it....

      CitiGroup Presssed for More Answers on Data Breach

      Connecticut attorney general says company has "failed to explain" the incident

      Connecticut Attorney General George Jepsen wants more information from Citigroup because he says the company’s disclosures about a recent data breach fail to explain how it occurred and what is being done to protect affected customers from potential financial fraud.

      “As one of the largest lending institutions in the country, Citigroup must assiduously protect the personal information it collects from its customers and employ the highest levels of data security. I expect Citigroup to fully compensate and protect any Connecticut consumers harmed as a result of this breach,” Jepsen wrote in a letter Monday to the corporation’s chief executive officer and general counsel.

      Citigroup said last week that account information – name, account number and contact information, including e-mail address -- of approximately 1 percent of its Citi North America bankcard customers was viewed as a result of “unauthorized access” to Citi’s Account Online.

      Delayed warning

      It turns out, however, that the attack occurred nearly a month before the bank got around to telling anyone about it.

      “Unfortunately, critical facts about the intrusion remain unclear, including details concerning the number and characteristics of impacted accounts, the cause of the breach, the steps taken to notify and protect the affected individuals, and the nature of any procedures adopted to prevent future data breaches,” Jepsen said.

      Citi says it took all appropriate measures.

      “Citi immediately rectified the data breach upon discovery, while also placing internal fraud alerts and monitoring on all accounts at risk,” a spokesman said. “Simultaneously, we began analysis to determine the precise accounts and type of information accessed, which resulted in roughly 1 percent of North America Citi-branded credit cards. Within three weeks -- June 3 precisely -- we began sending notification letters to clients, the majority of which included re-issued credit cards.”

      CitiGroup Presssed for More Answers on Data Breach Connecticut attorney general says company has "failed to explain" the incident...

      Not All Sunscreens Are Created Equal

      Using the wrong sunscreen can result in sunburn, or worse

      Slathering on sunscreen before you venture out is a good idea but it's only effective if you pick the right sunscreen.

      The U.S. Food and Drug Administration has come up with some new measures that are supposed to make it easier to find an effective sunscreen. They include:

      • final regulations that establish standards for testing the effectiveness of sunscreen products and require labeling that accurately reflects test results

      • a proposed regulation that would limit the maximum SPF value on sunscreen labeling to “SPF 50+”

      • a data request for safety and effectiveness information for sunscreen products formulated in certain dosage forms (e.g., sprays)

      • a draft guidance for sunscreen manufacturers on how to test and label their products in light of these new measures.

      These measures are necessary, says Lydia Velazquez, PharmD, in FDA’s Division of Nonprescription Regulation Development, because “our scientific understanding has grown. We want consumers to understand that not all sunscreens are created equal.”

      “This new information will help consumers know which products offer the best protection from the harmful rays of the sun,” Velazquez says.  “It is important for consumers to read the entire label, both front and back, in order to choose the appropriate sunscreen for their needs.”

      Everyone is potentially susceptible to sunburn and the other detrimental effects of exposure to UV radiation.

      FDA's final regulations

      The final regulations, which become effective in one year, establish a standard test for over-the-counter (sold without a prescription) sunscreen products that will determine which products are allowed to be labeled as “Broad Spectrum.” 

      Products that pass this test will provide protection against both ultraviolet B radiation (UVB) and ultraviolet A radiation (UVA).  Sunburn is primarily caused by UVB.  Both UVB and UVA can cause sunburn, skin cancer, and premature skin aging.  A certain percentage of a broad spectrum product’s total protection is against UVA. 

      Under the new regulations, sunscreen products that protect against all types of sun-induced skin damage will be labeled "Broad Spectrum" and “SPF 15” (or higher) on the front.

      The new labeling will also tell consumers on the back of the product that sunscreens labeled as both “Broad Spectrum” and “SPF 15” (or higher) not only protect against sunburn, but, if used as directed with other sun protection measures, can reduce the risk of skin cancer and early skin aging. For these broad spectrum products, higher SPF (Sun Protection Factor) values also indicate higher levels of overall protection.

      By contrast, any sunscreen not labeled as “Broad Spectrum” or that has an SPF value between 2 and 14, has only been shown to help prevent sunburn.

      Reynold Tan, a scientist in FDA’s Division of Nonprescription Regulation Development, notes that FDA has been developing testing and labeling requirements for sunscreen products for decades. However, only recently have the data become sufficient to establish an accurate and reliable test for broad spectrum UV protection, he says.

      To help consumers select and use sunscreens appropriately, the final regulations include these additional labeling provisions:

      • Sunscreen products that are not broad spectrum or that are broad spectrum with SPF values from 2 to14 will be labeled with a warning that reads: “Skin Cancer/Skin Aging Alert:  Spending time in the sun increases your risk of skin cancer and early skin aging. This product has been shown only to help prevent sunburn, not skin cancer or early skin aging.” 

      • Water resistance claims on the product's front label must tell how much time a user can expect to get the declared SPF level of protection while swimming or sweating, based on standard testing. Two times will be permitted on labels: 40 minutes or 80 minutes.

      • Manufacturers cannot make claims that sunscreens are “waterproof” or “sweatproof, or identify their products as “sunblocks.”   Also, sunscreens cannot claim protection immediately on application (for example, “instant protection”) or protection for more than two hours without reapplication, unless they submit data and get approval from FDA.

      Sun safety tips

      Spending time in the sun increases the risk of skin cancer and early skin aging.  To reduce this risk, consumers should regularly use sun protection measures including:

      • Use sunscreens with broad spectrum SPF values of 15 or higher regularly and as directed.

      • Limit time in the sun, especially between the hours of 10 a.m. and 2 p.m., when the sun’s rays are most intense.

      • Wear clothing to cover skin exposed to the sun; for example, long-sleeved shirts, pants, sunglasses, and broad-brimmed hats.

      • Reapply sunscreen at least every 2 hours, more often if you’re sweating or jumping in and out of the water.

      Not All Sunscreens Are Created Equal. Using the wrong sunscreen can result in sunburn, or worse...

      What's On Your Mind? Time Warner, Michigan Bulb Company, Sirius

      Our daily look at consumer reviews

      Cable TV companies now offer phone service and phone companies now offer cable TV service. Different companies have different policies, but Time Warner's seems a bit odd, at least the way Darlene of Coronado, Calif., tells it.

      “For the past several month’s Time Warner has blocked my international phone service saying that I am past due,” Darlene told ConsumerAffairs.com. I explained that my last statement was in May, and have not received another statement. The rep. said my statement would be mailed out next week, but I would not have service until it was paid.”

      So, was Darlene's account past due? Darlene said she checked her account online and it shows a balance due of $376 on June 27.

      “If my payment is not due until June 27, then why are my calls being blocked, Darlene asks?

      If part of that $376 is past due from an earlier month, that could be the reason. Otherwise, this seems am odd policy.

      Late Spring

      We get lots of complaints about Michigan Bulb Company and other mail order plant retailers.

      “Sent this company an order for tulips on May 9th,2011,” Shirley, of Streator, Ill., said. “My check was cashed on May 14,2011. Needless to say no bulbs! Can't reach them by phone, get a recording saying number is disconnected.”

      Michigan Bulb Company is owned by Gardens Alive, of Lawrenceburg, Ind. Complaints about mail order garden centers include not receiving the order, as Shirley has noted, and receiving dead plants. Consumers would be much better off buying locally.

      Put the debit card away

      Consumers should avoid using their debit cards for online and telephone transactions. Too many mistakes can happen, with very unpleasant consequences. Dominick, of Islip Terrace, N.Y., has a lifetime subscription to Sirius Satellite Radio. Earlier this month he called and added a feature to allow him to listen on his smartphone. He gave his debit card to pay the $32.26 annual charge.

      “The next day I checked my account and found out they billed me $906.75 for a second Lifetime subscription which I never agreed to,” Dominick told ConsumerAffairs.com. “This transaction put my account negative $500.00. With overdraft fees from bills being paid from this checking account I'm now negative $700.00.”

      Dominick should ask Sirius to pull the audio recording of the transaction. If the company is not cooperative, he can sue them in small claims court, since the amount is less than $1,000. Often this is a good way to make a big company take you seriously.

      Play hardball

      A lot of subscription services won't budge when consumers feel they were unfairly charged and call for a refund. Marilyn, of Kinmount, Ontario, says two can play that game.

      “Classmates charges my VISA without my permission,” Marilyn said. “I contacted my credit card company they told me to phone Classmates at 206-301-5900. I phoned them and they told me too bad. I told them I had already flagged the charge with the credit card company and was giving them a chance to fix this without me escalating it further.”

      Marilyn said Classmates (now Memory Lane) then agreed to refund a portioin of the $439, but she said no.

      “I said no, it will be the whole amount or I will be calling back my credit card company and escalating this,” she told ConsumerAffairs.com. “I was told my refund for the full $39 would be processed today. Lets hope so, so please follow the same formula and do not take no for an answer.”

      Playing hardball with Classmates seemed to work for Marilyn. Maybe you should give it a try.

      Here is what's on consumer's minds today: Time Warner, Michigan Bulb Company, Sirius, Late Spring, Put the debit card away and Play hardball....

      Five Bad Ideas for Father's Day

      There are lots of things Dad will like. Here are some he won't.

      We all want dear old Dad to have a great time on Father's Day but finding just the right gift or special event isn't always easy. We don't want to encourage any bad habits so whiskey and fast cars are out.  We won't even mention what could go wrong with a new minicam and Twitter account but here are some other great ideas that have proven to be a bust for many of our readers.

      Flat-Screen TV

      Most dads like to grab the remote and park themselves in front of the TV, but finding a flat-screen TV that will last more than a few years and won't burn the house down isn't easy.

      Tracy of St. Louis bought her husband a nice new 32-inch Polaroid TV a few years ago. The first one turned out to be defective. So did the second one. The third one was OK for awhile but then the screen went black and the thing started to smoke.

      Polly of Cedar Park, Texas, shelled out $1,895 for a 42-inch Panasonic plasma TV for for her husband. It worked for two years before the picture blinked out and Polly paid $135 to learn that it would cost another $600 to fix i.

      "This is a major disappointment for my husband who now has Alzheimer's disease. His main interest is watching TV all day and now it is impossible," Polly said.

      Ann bought her husband a 32-inch Vizio TV. " He was quite pleased with the appliance until this morning when he went to turn it on. Instead of a program all he heard was a popping sound," she reported.

      If this doesn't dissuade you from buying a flat-screen TV, take our advice and buy a back-up power supply to go with it. This will protect the delicate electronics from surges more effectively than a simple surge protector. Also, don't put the TV in a cabinet. LCDs generate lots of heat and need adequate ventilation.

      So does Dad, for that matter. Get him something that will get him outside more often, as long as it's not a gas grill.

      Gas Grills

      All right, it's hard to get those charcoal grills started, but at least they're cheap and pretty simple to use, which you can't say for a lot of gas grills.

      Deborah of Virginia Beach bought her husband a Charmglow grill as a Father's Day gift. As Dad stood proudly by holding the couple's two-year-old daughter, the propane hose sprung a leak and set fire to the grill.

      "My grill is half black and I spent a lot of money on this," Deborah complained.

      Things didn't turn out much better for Jennifer of Corning, NY. "I purchased my Perfect Flame SLG2008A from Lowe's fourteen months ago as Father's Day present for my husband. Today it decides the burn up for no reason at all," she wrote.

      "The third burner igniter appeared to have started the problem. It caught the gas line on fire, disintegrating the line, it also caught the inside of the grill on fire bubbling up the black coating and making it peel," she said.

      Outdoor Furniture

      OK, ladies, we know you like to decorate the deck, backyard and so forth with tables, umbrellas and whatnot, but pause for a second and ask yourself if Dad wants to spend his special day putting this stuff together and dealing with all the things that can and often do go wrong.

      Take Barbara of Dracut, Mass., for example. She bought a Hampton Bay outdoor umbrella for Father's Day last year. The first one failed when the tilt adjustment failed. So did the second one.

      "This is not a cheap umbrella it cost almost $300.00. Home Depot is kind enough to return them with out a sales slip but how many times is this going to happen?" she asked. Answer: Most likely, it will keep happening until Dad refuses to set up one more of the infernal contraptions.

      Now listen to Pam of Tampa: "Purchased Hampton Bay Portachi 5 piece patio table and chairs June 2007 for Father's Day gift for my husband. My 2 stepsons and I really shopped and looked at many sets before we found one my husband liked. I'm talking about a 3 year quest here before we talked him into (emphasis added) this beautiful patio set. … Six months later, the first chair had a weld break and now if you sit in the chair you fall backward. Second chair broke the same way two months ago. We are not fat people and chairs were not abused."

      Don't even mention Martha Stewart tables. Judi of Tonawanda, NY, had her family over for Father's Day around their Martha Stewart patio table. After everyone went in I went about my usual routine of putting away my umbrella and cushions. I went into the garage to get the cover to protect the table and before my eyes suddenly the entire table top shattered."

      Gift Cards

      Here's the thing wives and children don't understand about men: We don't like to go shopping. If you give us a gift card, it will go into the sock drawer where it will be found someday by our heirs.

      If we do try to use it, chances are things will turn out about as well as they did for Rod of Fox Island, Washington: "My daughter purchased a [Home Depot] gift card for me on Father's Day for $40. I lost the card, but had the receipt that she was given at the time of purchase. Two separate service employees said that there was no way that they could verify that the gift card had not been used and that they could not issue me another card."

      Rod even sent a certified letter to Home Depot's CEO explaining the situation but got no response.

      Getting Up Too Early

      Dad gets up early all year round to go to work. He doesn't want to get up early on Father's Day. All kinds of bad things can happen if he does. Gerri of Merrick, N.Y., got her husband up bright and early on Father's Day and made him take her to the AT&T Wireless store.

      But they got there before the store was open, so they parked in the store lot and went for a stroll. When they came back, their car was gone. Towed away, actually, just as the "Parking For Customers Only" sign warned.

      So Dad wound up hitching a ride to the car pound and shelling out $300 cash to get his car back. Gerri didn't come out of it too well either. She said her blood pressure rose so high she passed out on the floor and got a nasty bump on her elbow.

      What's Left?

      So what should you get Dad for Father's Day? If your Dad's anything like this one, we'd recommend a good cigar, a bottle of cheap red wine and his favorite dinner, preferably cooked inside using reliable and time-tested kitchen appliances. Add spice as needed.

      Five Bad Ideas for Father's Day. There are lots of things Dad will like. Here are some he won't....

      Study: Just Working Longer Not Enough To Cover Retirement Expenses

      Some people might have to work into their 80s

      You know you haven't saved enough for retirement and stock losses have made your mediocre retirement portfolio worse. “No problem,” you think to yourself, “I'll just work a few years longer than I planned.”

       You might still have a problem. A new study by the Employee Benefit Research Institute (EBRI) finds that if Baby Boomers and Gen Xers work past age 65, they would still experience a retirement shortfall unless that otherwise save and invest.

       Even delaying retirement into your 80s might not be enough to provide an adequate nest egg, the study finds.

      High health care costs

      As you might expect, the complicating factor is health care. As costs skyrocket, it's hard to keep up. Assuming that Medicare survives, the cost of supplemental coverage, to pay for what Medicare doesn't, will become ever more expensive.

      “Our research finds that many people may have to delay retirement far beyond age 65 to increase the probability that they will have enough money to cover their retirement at a comfortable level,” said Jack VanDerhei, EBRI's research director and co-author of the report.

      Just to be clear, we're not talking about having enough money in retirement to raise horses, start a vineyard or travel the world. We're talking basic living expenses.

      Current income a factor

      How much money you make now also makes a difference. The report found that of those in the lowest income group, only 29.6 percent would have enough money to avoid running short in retirement 50 percent of the time. Delaying retirement to age 69 only adds 13 percent more households to the group that will be adequately funded.

      But the outlook is not hopeless.

       “What really makes a positive difference, we found is if people who continue to work after age 65 also continue to contribute to a defined contribution retirement plan,” VanDerhei said.

      The analysis is based on data of EBRI's Retirement Security Projection Model, designed to provide an assessment of national retirement income prospects. This year, for the first time, the analysis included an assumption that individuals would continue working past age 65.

      A new study finds that working past age 65 won't be enough for most people to cover the costs of retirement....

      Walmart Express Makes Its Debut

      Smaller stores go after dollar stores, convenience outlets

      Walmart has unveiled its new smaller-format store concept, dubbed Walmart Express, opening its first store in Gentry, Ark., last week with two more opening this week in Prairie Grove and Gravette, Ark.

      The stores are targeting dollar stores, convenience stores and, in some cases, pharmacies. They emphasize food, pharmacy and limited general merchandise.

      The new store – less than a tenth the size of a Walmart superstore – is a no frills affair with bare concrete floors and an open rafter ceiling and the merchandise mix is heavily oriented toward food along with an emphasis on Walmart’s Site-to-Store service where it ships merchandise ordered online to stores for free.

      Bill Simon, president and CEO, Walmart, U.S., said the company has several formats it will be testing -- some with pharmacies, some without. 

      “The aim here, folks, is to get the right model so that we can rapidly roll these things out. At our peak we built about 350 supercenters in a year, so when we get this thing right, these are going to come real fast and we’re real excited about this format,” Simon said at a recent investors' conference.

      The first stores are a stone's throw from Walmart's corporate headquarters in Bentonville, Ark. But not all of the Express stores will be out in the boondocks. The company has snagged a site in the West Englewood area of Chicago, according to Drug Store News, a trade journal.

      West Englewood is an underserved community with very few retail outlets.

      Dollar stores have been enjoying strong revenue growth while Walmart stores have posted declines for eight straight quarters. High fuel prices are seen as partly to blame: consumers not only have less to spend but are also more likely to look for a store closer to their home.

      Walmart Express Makes Its Debut Smaller stores go after dollar stores, mom-and-pop convenience outlets ...

      Richmond Students Charge Medical Tech School Is a 'Sham'

      Lawsuit says school lures students with promises of jobs but fails to deliver

      A federal class action accuses the for-profit Richmond School of Health and Technology (RSHT) of targeting poor and black students and using their student loans as its "source for cash."

      The suit calls the Richmond, Va., school - which got 86 percent of its income from financial aid programs in 2008-2009 - "a sham," which "exists to make money without any regard for the education its students receive in exchange."

      The suit charges that the school makes its money by enrolling almost exclusively students who receive federal financial aid, mostly consisting of student loans.

      Most students leave RSHT "saddled with large debts … without the prerequisites and knowledge to obtain a license and/or a job in their field of study," the class action charges.

      This, the suit says, often leads to students defaulting on their student loans, which destroys their credit ratings and impairs their ability to get credit and to pass workplace background checks in the future.

      School earns an 'F'

      "RSHT does well in earning money off its students, but it earns an 'F' in serving their educational interests because it is concerned only with profit, not education," the complaint alleges.

      In the suit, Mary Morgan, 49, of Richmond says she was a student in the school's Community Home Health program. Amanda Smith, 28, was a student in the Surgical Technology program.

      Morgan paid $10,000, most of it with federal student loans and Pell Grants after the school persuaded her that taking the home health program would qualify her for a "license in community home health" and that this credential would be "higher" than the Certified Nurse Aid (CNA) license she had previously held, the suit says. In fact, no such certification in community home health exists in Virginia.

      Smith received $20,000 iin federal financial aid, all of it student loans, based on the school's allegedly telling her the course would enable her to become a license surgical technician, but Smith said the training she received "was not remotely sufficient" to prepare her for the written exam. She was able to pass only through self-study, she said.

      Smith said RSHT also failed to arrange the surgical internship she needed to be licensed. She arranged an internship at a surgical center on her own but RSHT failed to follow through and, as a result, Smith did not get the internship and cannot get her license, she said.

      Tougher rules

      RSHT is one of about 2,000 for-profit colleges in the country that will soon be facing tougher regulations if they want to continue receiving federal funds.

      The U.S. Department of Education recently issued a new rule that sets a standard for these schools: their programs have to ensure graduates can earn enough to pay off the hefty student loans they must carry to pay for their enrollment.  But consumer advocates say the rule doesn't go far enough.

      The RSHT suit charges the school with violating the Equal Credit Opportunity Act, the Virginia Consumer Protection Act, breach of contract and fraudulent inducemnt. It was filed in U.S. District Court in Washington, D.C., by attorneys John Relman and Glenn Schlactus.

      Richmond Students Charge Medical Tech School Is a 'Sham' Lawsuit says school lures students with promises of jobs but fails to deliver...