Current Events in July 2011

This might not be the biggest annoyance in your life, but if you're a pet owner, you're familiar with the spills, splashes and splatters that accompany mealtime for your dogs and cats.

A new product, the Neater Feeder, aims to put a stop to the wet floors and stained walls that irk pet owners.

The key is the Neater Feeder's two-container system with protective walls and a colander-like filtering system, which separates spilled food from spilled water. Spilled food is contained in the upper reservoir so it can be safely eaten or easily discarded. Spilled water drains into the lower reservoir, and can be reused for your pet, your plants, or the planet, or neatly discarded without ever touching your floors.

Neater Feeder says its design is also ant-proof, keeping your dog or cat's dining area more sanitary. The Neater Feeder for dogs also provides all of the health benefits of an elevated feeder, the company says.

A new standard

“The Neater Feeder sets a new standard in pet feeding because it takes the mess out of meal times,” said Fernando Becattini, Jr., President of Neater Pet Brands. “By dramatically reducing the spilled food and water that reaches the floor around your pet's food and water bowls, the Neater Feeder creates a more sanitary dining environment than your current dog bowl or cat dish, and a cleaner home for you.”

“Spilled food is preserved, and spilled water is filtered for reuse or easy disposal. The spill-proof and kick-proof design will keep you from worrying about water-stained wood, splattered baseboards, warped tiles or sloppy floors around your pet's bowls ever again,” Becattini said.

Neater Feeder says its contoured design is comfortable for cats and dogs of any size. The small Neater Feeder is appropriately sized for all cats and dogs up to 35 pounds, and the large Neater Feeder is designed for breeds 35 to 100-plus pounds. Optional leg extensions increase feeding height for an elevated feeding position that is shown to be beneficial for dogs' digestion and joint health.

The Neater Feeder is made in the U.S. by Neater Pet Brands, from recyclable polypropylene plastic, and is easily cleaned and dishwasher safe. For more information, visit Neater Feeder's web site at www.NeaterFeeder.com.

ConsumerAffairs.com has not tested this product and has not received any consideration from the company. The company's site clearly states the prices and shipping costs for different models, supplies complete contact information and otherwise appears straightforward.

If you decide to try this product, please let us know how it works for you by filing a consumer review.

In the months immediately following the 2008 credit crisis, consumers for the most part drastically reduced their use of credit cards. Now, they're reaching again for their plastic.

The Federal Reserve reports consumer credit rose in May for an eighth straight month, mostly because of – you guessed it – credit card use.

According to the Fed's data, credit rose by $5.08 billion after a revised $5.67 billion gain in April. The increase was more than $1 higher than the consensus projection.

Buying necessities

It's not that consumers are using their credit cards to buy big screen TVs and go on expensive vacations. Since many consumers use their credit cards for gasoline purchases, and gasoline costs have risen in the last year, it stands to reason that gasoline is responsible for a part of the rise in consumer credit.

Other economists suggest that consumers are also turning to plastic to buy groceries and pay for other day-to-day needs. Revolving debt, which includes credit cards, rose by $3.37 in May after decreasing $877 million in April, according to the central bank’s data. It was the first gain this year and the biggest since June 2008.

 In addition to revolving debt like credit cards, non-revolving debt rose $1.71 billion in May after jumping $6.54 billion in April. Non-revolving debt includes things like auto financing and auto loans.

Other debt

Non-revolving debt is usually set up for a uniform, long-term payback period and as a rule, is less troublesome for consumers than credit card debt, which carries much higher interest rates and often, added fees.

To keep credit card debt under control, the Center for Responsible Lending says consumers should always pay more than the minimum amount due on the monthly bill.

Paying more than the minimum can save you as much as $2 for every extra $1 you pay, the group advises. For example, before the CARD Act, paying $100 extra could save you $164 in interest charges, but now that same payment amount can save you $224. 

Last week the New York Attorney General filed suit against a group called the Coalition Against Breast Cancer, branding it a “sham charity.” It's a more extreme example of a corporate trend researchers call “pinkwashing.”

According to Amy Lubitow, Portland State University (Oregon), and Mia Davis, Campaign for Safe Cosmetics, “pinkwashing” describes the practice of companies adopting pink colors and ribbons to imply they support breast cancer research, while at the same time permitting the use of chemicals shown to cause cancer.

The concern is not exactly new, but the rhetoric is sharpening. In very strong words, Lubitow and Davis accuse such companies of “committing a form of social injustice against women.” The two have co-authored an article on “pinkwashing” in the journal Environmental Justice.

The authors say that aligning oneself with a cause such as breast cancer, while carrying out research, manufacturing, or other types of policies or processes that involve the use of chemicals with a proven link to cancer crosses a critical line between just and unjust practices.

Pure profit motive?

They accuse companies that “pinkwash” with being motivated solely by the profit motive. These companies, they say, link themselves to the cause to increase profits but are taking actions and pursing policies that might contribute to higher cancer rates.

Last year, the company marketing an alcoholic lemonade product came in for some criticism for its campaign to “pink your drink,” a way the marketers said people could promote breast cancer year round.

Breast cancer awareness and breast cancer research have become enormously popular causes in recent years, with hundreds of businesses and organizations joining the effort to fight the disease. October, the official breast cancer awareness month, is usually marked by a sea of pink, as these organizations, most of whom sincerely and wholeheartedly support the effort, show pink.

Real men wear pink

For example, the National Football League observes the month by having players wear pink accessories, like gloves and shoes, along with their normal team colors. These efforts have won praise for raising the profile of breast cancer awareness, though some in the movement wondered aloud last year if they weren't getting just a bit over-exposed.

Those in the movement are also concerned about the trend Lubitow and Davis highlight in their article, claiming too many companies are simply trying to cash in on the good feelings.

"The authors of this article draw needed attention to the dangerous use of consumers' social and sometimes environmental consciousness by institutions who contribute to environmental health disparities,”said Sylvia Hood Washington, PhD, ND, MSE, MPH, Editor-in-Chief of Environmental Justice, and Research Associate Professor at the University of Illinois at Chicago School of Public Health. “The blind financial support of these entities, by affected consumers, is a form of environmental injustice that is clearly elucidated by the authors.'

In other words, breast cancer awareness groups would like consumers to think carefully about the product they buy, and not choose it just because it has a pink label. 

The Food and Drug Administration (FDA) is advising consumers not to purchase or use “Slim Forte Slimming Capsules,” “Slim Forte Slimming Coffee,” and “Botanical Slimming Soft Gel,” products for weight loss sold on various websites and distributed by InterCharm, Inc.

FDA laboratory analysis confirmed that “Slim Forte Slimming Capsules,” “Slim Forte Slimming Coffee,” and “Botanical Slimming Soft Gel” contain sibutramine, controlled substance that was removed from the U.S. market in October 2010 for safety reasons. 

These products pose a threat to consumers because sibutramine is known to substantially increase blood pressure and/or pulse rate in some patients and may present a significant risk for patients with a history of coronary artery disease, congestive heart failure, arrhythmias, or stroke. 

These products may also interact in life threatening ways with other medications a consumer may be taking.

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

Healthcare professionals and patients are encouraged to report adverse events or side effects related to the use of these products to the FDA's MedWatch Safety Information and Adverse Event Reporting Program:

• Complete and submit the report Online: www.fda.gov/MedWatch/report.htm

• Download form or call 1-800-332-1088 to request a reporting form, then complete and return to the address on the pre-addressed form, or submit by fax to 1-800-FDA-0178

Growing trend 

The FDA says there is a growing trend of products marketed as dietary supplements or conventional foods with hidden drugs and chemicals. 

These products are typically promoted for sexual enhancement, weight loss, and body building, and are often represented as being “all natural.” 

FDA is unable to test and identify all products marketed as dietary supplements that have potentially harmful hidden ingredients.  Consumers should exercise caution before purchasing any product in the above categories.

Ohio Attorney General Mike DeWine today announced lawsuits against Nicholas Lamb and Robert White, Ohio residents accused of running a craigslist scam offering to sell video game systems, video games, phones, and phone cards.

"These individuals took advantage of unsuspecting consumers," DeWine said. "They posted hundreds of items for sale on craigslist and accepted payment from dozens of consumers but never delivered the products. Simply put, they committed a scam." 

According to the lawsuits, Lamb and White offered PlayStation 3 systems (PS3), PS3 games, and Boost Mobile phones and phone cards via craigslist posts that primarily targeted out-of-state consumers. Their posts indicated that they were Ohio residents, but they told potential buyers that they previously lived in the buyers' states to gain the buyers' trust.

Lamb and White usually requested that payment be made through a wire transfer service, such as Western Union or MoneyGram. Once the buyers completed the payment, the men did not deliver the products and did not provide refunds.

More victims?

The Ohio Attorney General's Office currently has 29 consumer complaints against Lamb and 27 against White. The office believes there may be more victims because both men made hundreds of posts on craigslist.  Craigslist currently provides a direct link on its website to the Ohio Attorney General's Office for consumers to report would-be scammers, www.craigslist.org/about/scams. 

The lawsuits charge Lamb and White with multiple violations of Ohio's Consumer Sales Practices Act, including failure to deliver and advertising products without having possession of the products. In the lawsuits, the attorney general seeks permanent injunctive relief, civil penalties, and full restitution for consumers.

The Internet Crime Complaint Center has reported that online fraud costs consumers hundreds of millions of dollars. To protect themselves, consumers should follow these guidelines:

• Check a seller's reputation. Check feedback ratings and reports from the Attorney General's Office and the Better Business Bureau. Never give out personal or financial information unless you know the seller is legitimate.

• Contact the seller in person. Verify the seller's physical location and phone number. Deal locally with sellers you can meet in person. Always meet in a public place and bring someone with you for safety. Limit the amount of personal information you give to a seller. Only reveal what is absolutely necessary.

• Be wary of requests for wire transfers. Requests for wire transfers often signal fraud. Instead of wiring money, pay with a credit card, if possible. When you pay by credit card, your transaction is protected by the Fair Credit Billing Act—a federal law that gives you the right to dispute unauthorized charges.

• Keep printed records. Print purchase confirmations and all other documents related to your transaction.

• Trust your instincts. If it sounds too good to be true, it probably is. If you suspect fraud, report it.

Texas Attorney General Greg Abbott today charged Encore Capital Group, Inc. with falsifying and robo-signing affidavits, attempting to collect debts based upon inaccurate or incomplete account information, and employing unlawful and deceptive debt collection tactics.

The state’s enforcement action cites the defendants for committing multiple violations of Texas debt collection laws and the Texas Finance Code. Encore, which is one of the nation’s largest debt collection companies, and its subsidiaries – Midland Funding, LLC and Midland Credit Management, Inc. – are named as defendants in the case.

According to state investigators, Midland Funding purchased debt portfolios from a broad spectrum of creditors for pennies on the dollar. As the purchaser of the debt, the defendants attempted to collect the money that was allegedly owed to various creditors.

However, the defendants’ debt collection letters contained very little information about the debt they were attempting to collect, provided no supporting documentation, and included no proof that they actually acquired the debt from the original creditor.

When Texans contacted the defendant to dispute the legitimacy of an alleged debt or seek additional information, the defendants made little or no effort to investigate or verify whether their collection efforts were proper.

Incomplete information

Court documents filed by the state indicate the defendants sometimes even used incomplete or inaccurate account information, targeted the wrong individuals for collection and attempted to collect debts that had been fully or partially paid. As a result, some Texans unnecessarily suffered financial hardships, such as improperly decreased credit ratings, loss of job opportunities or the ability to refinance their home.

When individuals refused to comply with Midland Funding’s improper collection efforts, the defendants hired attorneys to sue the accused debtors. Court documents reveal that the defendants’ lawyers filed breach of contract lawsuits demanding principal, interest and attorneys’ fees.

The defendants have filed more than 60,000 lawsuits in Texas since 2002. According to state investigators, the defendants’ lawsuits contained inaccurate information and used false statements to claim they were owed certain debts. 

To protect Texans from being sued for debts they did not actually incur, the law may require that debt collectors verify the validity of their claims through “sworn affidavits.” However, the defendants submitted falsified affidavits, which the courts relied upon as proof that the debt collector properly verified the identity of the debtor and the amount owed, the suit charges.

Robo-signers

The state’s investigation revealed that the defendants also employed “robo-signers” to supply the legally required verification. Court documents filed by the State indicate the defendants’ robo-signers routinely signed more than 300 affidavits per day and did not actually review the underlying credit agreements or the alleged debtor’s payment history.

In sworn testimony provided to state investigators, the defendants’ robo-signers acknowledged that they also had no personal knowledge of the original debt or the defendant’s acquisition of the debt portfolios – which was contrary to the information contained in sworn affidavits that these defendants filed with the courts.

Because the court presumed the falsified affidavits were truthful, judges relied upon them to issue judgments against debtors. As a result, the attorney general charged the defendants with defrauding the Texas judicial system by knowingly submitting false affidavits to state courts.

Because 90 percent of the defendants’ lawsuits named individuals who were not represented by counsel, these purported debtors did not have lawyers to challenge the legitimacy of the defendants’ claims. As a result, default judgments were improperly entered against them based upon the defendants’ falsified affidavits.

The state’s enforcement action seeks to establish a restitution trust fund for money that the defendants unlawfully coerced from Texans. The Attorney General also seeks civil penalties of up to $20,000 per violation of the Texas Deceptive Trade Practices Act, as well as penalties that apply under the Texas Finance Code for third-party debt collectors who violate state law.

Texans who believe they have been deceived by improper or unlawful business practices may call the Office of the Attorney General’s toll-free complaint line at (800) 252-8011 or file a complaint online at www.texasattorneygeneral.gov.

With new security restrictions on carry-on item, airline passengers must pack more things in their checked bags. That turned out to be trouble for Vanessa, who lives in Asia but is from Lawrence, Kan.

“When in LAX I saw the handler, the way he threw the luggage, and it did cross my mind that it appeared he was being really careless, but the rude operator grab our attention saying that we must pay $120 dollars to put our luggage in for domestic flights,” Vanessa told ConsumerAffairs.com. “Apparently this the 'new thing' in the U.S. So when we got to my mother's home and we opened this said bag we discovered a laptop, which had been carefully wrapped), mashed, gifts for my family ruined, books for an art museum soaked in a fluid. The fluid had been double bagged and were sealed containers as well- completely empty now. 

Since Vanessa said she had never frown Delta before, and it happened on Delta, she blames the airline. Sadly, it could have happened on any number of other carriers as well.

Don't pay in advance

Jeff, of Tulsa, Okla., reports a bad experience with Resorts Rescued, a company he says charged an upfront fee to sell his timeshare.

“In November of 2010, I was contacted by Resorts Rescued and got a big sales pitch about how they could sell it, and the upfront fee was for sales presentations like the one I had been to when I bought it,” Jeff said. “It has been over seven months and no bites. All they have done is place a dinky ad on their website that nobody will see, and kept the $900 ripoff fee. I reported them to the CT Attorney General's Office, but do not know if it will do any good.”

According to the FTC, the number of complaints related to fraudulent timeshare resales has more than tripled over the past three years, as more consumers have attempted to sell their timeshares. And complaining to the Connecticut Attorney General's Office is not wasted effort. It takes a number of complaints to spark an investigation.

Bad connection

Cell phone providers like Boost Mobile offer the convenience of no contract. You simply pay month to month, and if you decide to do something else, you don't pay an early termination fee. Melissa of Oceanside, Calif., Doesn't like the trade off.

“I have been with Boost Mobile since February 2010, always pay my bill on time and have had nothing but problems with this company,” Melissa told ConsumerAffairs.com. “I never have service, even in 'good coverage' areas. I call several times a month when the phone loses service always to be transferred around three to four times, getting disconnected at least once on every occasion, ending up with someone who is unable to do anything about the problem.”

First, Melissa needs to make sure she isn't in a dead spot for all cell networks. By asking around, however, she may find one provider who has good coverage where she needs it. That's the one she needs to go with. Even major carriers like Verizon now provide no contract plans.

Online imposter

A lot of people love Facebook because it gives them a personal webpage and allows them to stay in touch with a lot of people. But there can be a downside to social networking, as Ivy, of Fitzgerald, Ga., discovered when someone stole her online identity and created a duplicate page. Only, it was not very nice.

“She slandered any of my friends and family members who spoke to her on this profile page she created when they contacted the profile, thinking it was me,” Ivy told ConsumerAffairs.com. “When I became aware of the profile and the damage she had caused, I hunted down this profile page and reported it as a fake profile.

But Ivy said that only made matters worse. She said Facebook disabled her actual account, leaving up the fake one.

“Facebook still has this fake profile up and running with pictures of myself and my children that she stole from other profiles,” Ivy said.. “I even gave them the name and address listed with this young womens local sheriff's office where I filed identity theft charges and the issue has still not been resolved. The fact that not one human being has contacted me about the issue and that they have only an automated response for issues of this op any nature is beyond me.”

Facebook now has an estimated 750 million members. Keeping track of them all – and which ones are legitimate – is apparently becoming something of a challenge. 

In Mississippi, 34.4 percent of the adults in the state are obese. Not just overweight, obese.

Not to pick on the Magnolia State, which has led the nation in the Trust for America's Health and Robert Woods Johnson annual obesity survey for the seventh year in a row, it should be noted Alabama was close behind, with an adult obesity rate of 32.3 percent. West Virginia was third at 32.2 percent.

According to the report, obesity rates increased in 16 states in the past year and did not decline in any state.Twelve states now have obesity rates above 30 percent. Four years ago, only one state was above 30 percent.

Geographic pattern

When you place the obesity rate on a map of the country, a geographic pattern emerges. The problem appears to be the most dramatic in the south, with nine of the 10 states with the highest adult obesity rates.

States in the Northeast and West tend to have lower rates. Colorado has the lowest obesity rate and, remarkably, is the only state with a rate under 20 percent.

This year's survey takes a look back, measuring today's epidemic against conditions 20 years ago. The contract is startling.

A lighter country 20 years ago

Twenty years ago, no state had an obesity rate above 15 percent. Today, more than two out of three states, 38 total, have obesity rates over 25 percent, and just one has a rate lower than 20 percent.

Since 1995, when data was available for every state, obesity rates have doubled in seven states and increased by at least 90 percent in 10 others. Obesity rates have grown fastest in Oklahoma, Alabama, and Tennessee, and slowest in Washington, D.C., Colorado, and Connecticut.

“Today, the state with the lowest obesity rate would have had the highest rate in 1995,” said Jeff Levi, Ph.D., executive director of TFAH. “There was a clear tipping point in our national weight gain over the last twenty years, and we can’t afford to ignore the impact obesity has on our health and corresponding health care spending.”

What happened?

How did this happen? Chances are, a lot of factors have contributed to America's weight problem. Processed food provides plentiful and cheap calories. During the Great Depression, people shed pounds because calories were expensive and scarce. Today, the opposite is true.

More adults spend their work days in front of computer screens, getting little exercise – moving from the office chair in the day to the living room couch in the evening. And while the survey measures only adult obesity, it's easy to conclude that each year children enter adulthood already packing too many pounds.

Health officials are alarmed at the trend because obesity has long been associated with other severe health problems, including diabetes and high blood pressure. New data in the report show how rates of both also have risen dramatically over the last two decades.

Since 1995, diabetes rates have doubled in eight states. Then, only four states had diabetes rates above 6 percent. Now, 43 states have diabetes rates over 7 percent, and 32 have rates above 8 percent. Twenty years ago, 37 states had hypertension rates over 20 percent. Now, every state is over 20 percent, with nine over 30 percent. 

The nation’s largest airlines posted an on-time arrival mark in May that was an improvement from April’s showing but down from the performance recorded in May 2010, according to the Air Travel Consumer Report released today by the U.S. Department of Transportation (DOT).

The 16 carriers reporting on-time performance recorded an overall on-time arrival rate of 77.1 percent in May, down from the 79.9 percent on-time rate of May 2010 but up from April 2011’s 75.5 percent rate. 

Tarmac Delays

The carriers filing on-time performance with the department reported 16 total tarmac delays of more than three hours reported in May by the airlines that file on-time performance data with DOT, compared to one in May 2010 and four in April 2011. 

Fourteen of the delays involved American Eagle Airlines flights arriving at Chicago’s O’Hare airport on May 29, a day in which the Chicago area experienced weather issues.  The other two long tarmac delays involved an American Eagle flight from New York JFK to Indianapolis on the same date, and a May 11 Southwest Airlines flight from Denver to Seattle.  All of the reported tarmac delays are under investigation by the department. 

Cancellations

During May, the carriers canceled 2.1 percent of their scheduled domestic flights, compared to 1.2 percent in May 2010 and 2.0 percent in April 2011.

Chronically Delayed Flights

At the end of May, there was only one flight that was chronically delayed – more than 30 minutes late more than 50 percent of the time – for three consecutive months.  There were an additional 46 flights that were chronically delayed for two consecutive months.  There were no chronically delayed flights for four consecutive months or more.  A list of flights that were chronically delayed for a single month is available.

Causes of Flight Delays

In May, the carriers filing on-time performance data reported that

• 6.67 percent of their flights were delayed by aviation system delays, compared to 7.57 percent in April;

• 7.71 percent by late-arriving aircraft, compared to 8.35 percent in April;

• 5.47 percent by factors within the airline’s control, such as maintenance or crew problems, compared to 5.68 percent in April;

• 0.68 percent by extreme weather, compared to 0.55 percent in April; and

• 0.05 percent for security reasons, compared to 0.04 percent in April. 

Mishandled Baggage

The U.S. carriers reporting flight delays and mishandled baggage data posted a mishandled baggage rate of 3.52 reports per 1,000 passengers in May, up from both May 2010’s rate of 3.23 and April 2011’s rate of 3.24.

Incidents Involving Pets

In May, carriers reported two incidents involving the loss, death or injury of pets while traveling by air, down from the three reports filed in May 2010 and four reports filed in April 2011.  May’s incidents involved the death of one pet and the injury of one pet. 

Complaints About Airline Service

In May, the department received 1,062 complaints about airline service from consumers, up 32.9 percent from the 799 complaints filed in May 2010, and up 20.8 percent from the 879 received in April 2011.

Complaints About Treatment of Disabled Passengers

The report also contains a tabulation of complaints filed with DOT in May against airlines regarding the treatment of passengers with disabilities.  The department received a total of 57 disability-related complaints in May, up from both the total of 40 complaints filed in May 2010 and the 54 complaints received in April 2011.

Complaints About Discrimination

In May, the department received 10 complaints alleging discrimination by airlines due to factors other than disability – such as race, religion, national origin or sex – equal to the total of 10 recorded in both May 2010 and April 2011.

Consumers may file their complaints in writing with the Aviation Consumer Protection Division, U.S. department of Transportation, C-75, W96-432, 1200 New Jersey Ave. SE, Washington, DC 20590; by voice mail at (202) 366-2220 or by TTY at (202) 366-0511; or on the web at http://airconsumer.dot.gov.

In April the U.S. government presented the food industry with a set of voluntary guidelines designed to reduce childhood obesity. The message in the guidelines was clear: don't use clever marketing to sell junk food to kids.

If adopted, the new guidelines would change how many food items like cereal, sodas, snacks and fast food meals are advertised. They could also radically change many companies' advertising budgets, a prospect that has not gone unnoticed on Madison Avenue.

Opposition

AdWeek Magazine reports that advertising agencies are openly cheering for an amendment to a House Appropriations Bill that could render the new guidelines toothless. The amendment, offered by Rep. Jo Ann Emerson (R-Mo.), would freeze funds for the implementation of the guidelines unless and until the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) conduct a cost-benefit analysis. There is no money budgeted for such a study.

The measure is destined for a floor vote later this year and is expected to pass. A lot of people in the ad industry are pulling for it.

"We think the provision will get strong support, but we'll just have to see," Dan Jaffe, executive vice president of government relations for the Association of National Advertisers, told AdWeek.

Both advertisers and food manufacturers have been fighting the proposed new guidelines since they were announced. Even though the guidelines are voluntary, advertisers understand that they invite direct oversight if they don't follow them.

Long-sought controls

Food industry critics, meanwhile, have long called for tighter controls on the way food is marketed to children. They say advertising messages often directly contradict sound nutritional advice.

“Children are strongly influenced by the foods they see advertised on television and elsewhere. Creating a food marketing environment that supports, rather than undermines, the efforts of parents to encourage healthy eating among children will have a significant impact on reducing the nation’s childhood obesity epidemic,” said Health and Human Services Secretary Kathleen Sebelius.”These new principles will help food and beverage companies use their creativity and resources to strengthen parents’ efforts to encourage their children to make healthy choices.”

The guidelines are the product of a working group comprised of four federal agencies – the Federal Trade Commission (FTC), FDA, CDC, and the U.S. Department of Agriculture (USDA). The guidelines were published for public comment in late April.

Assuming the House passes the appropriations measure, the Democrat-controlled Senate could take out the language, meaning it would be up to a House-Senate Conference Committee to reconcile the two versions.

M., of Locust Grove. Ga., is a mother and college student and was looking for an inexpensive hotel when she logged onto Priceline.com.

“I submitted a bid as I have done in the past but this time for a 3.5 star hotel,” she told ConsumerAffairs.com. “I deliberately did not choose a resort because I knew I could not afford the fees this time.”

But when her bid came back, she said it was a resort, with a $10 fee to park, $10 for Internet and an $8 resort fee.

“I was told that because the terms say they could book me at a resort, there was nothing they could do,” she said.

It's good to remember that there can be other costs to staying in a hotel besides the daily rate. If you don't want to run the risk of landing in a hotel with a lot of extra fees, you are probably better off booking directly with the hotel.

Slow Down

When you arrive at the car rental desk make sure you take your time and aren't rushed into signing anything. After all, you are signing a contract.

“I rented a car from Avis for nine days through Hotwire.com and paid for the car with my debit card,” said Catlyn of Lake Lure, N.C. “When I arrived at the counter, I specifically told the clerk that I did not want any insurance coverage. However, he put it on the bill and because there is a line that says 'initial accept or decline optional coverages as shown above' I thought I was declining the coverage.”

It's an easy mistake to make because, in fact, most contracts have you initial that you are declining the coverage. Yes, they should have explained it more carefully, but it's up to the consumer to make sure she understands what she's signing.

Planned obsolescence?

Lisa, of Fort Worth, Texas, says she bought a new  front loading LG Trom in January 2007 from Home Depot. She said it replaced a Maytag washer that lasted 16 year, so she had pretty high expectations for this new appliance that cost $1,300.

“A couple of months ago it began making a terrible sound during the spin cycle,” Lisa told ConsumerAffairs.com. “I called the repairman, who said it would cost $800 to fix it. The bearing and rollers and tub shaft were going out. His statement was 'they are designed to fail between 3 and 5 years.'”

This is not the first comment that we have heard about expensive washing machines and flat screen TVs. It would be interesting to hear directly from some of the folks who repair these appliances.

We're done here

Lots of consumers have complained over the years about unauthorized charges on their credit cards by Columbia House. But believe it or not, some consumers actually have ordered the products because they wanted them. But that doesn't mean their transaction was trouble free, or ended when they thought it would.

“I fulfilled my purchase agreement and they still charged me for it, saying that I didn’t,” said Kimberly, of Rochelle Park, N.J. “My account even said: 'you have fulfilled your purchase agreement.'”

The fact that Kimberly has a statement that says she has fulfilled her purchase agreement should clear up the problem – if she can find someone in authority at the company to speak to. 

WellPoint, Inc., a major health insurance company, will pay the State of Indiana $100,000 to resolve charges stemming from a data breach. During the security lapse, the personal information of thousands of WellPoint customers was potentially accessible via the Internet.

"This case should be a teaching moment for all companies that handle consumers' personal data: If you suffer a data breach and private information is inadvertently posted online, then you must notify the Attorney General's Office and consumers promptly. Early warning helps minimize the risk that consumers will fall victim to identity theft," said Indiana Attorney General Greg Zoeller.

The WellPoint data breach occurred when applications for individual insurance policies submitted to WellPoint - containing social security numbers, financial information and health records - were potentially accessible through an unsecured web site from October 23, 2009, to March 8, 2010. The records of 32,051 people in Indiana were potentially accessible through the online application tracker website operated by companies owned by or affiliated with WellPoint for potentially anyone to see.

Alert consumer

WellPoint was notified by a consumer on February 22, 2010 and again two weeks later, at which time the company secured the site. WellPoint began informing consumers of the data breach the following June, but ran afoul of the law when it failed to also notify Zoeller's office.

A law passed in 2009 requires companies that experience data breaches must notify both their consumers and the Attorney General "without unreasonable delay." Prompt notice allows consumers to take precautions to mitigate the risk of identity theft. However, Zoeller said he learned of the data breach from news reports.

"The requirement to notify the Attorney General 'without unreasonable delay' is not fulfilled by having me read about the breach in the newspaper," Zoeller noted.

Exposed for 137 days

During the breach, consumers' private data was accessible online for approximately 137 days, and one consumer lodged a complaint about possible identity theft as a result of it. Approximately 645,000 consumers nationwide eventually were notified about the breach.

To resolve the litigation and end the lawsuit, WellPoint has agreed to do the following:

• Pay a settlement of $100,000 to the State that the Attorney General's Office can use in the Consumer Assistance Fund, which provides restitution to certain consumers who were defrauded and provided assistance in investigations of the fraud. 
• Agree to comply with the Indiana Code 24-4.9, the Disclosure of Security Breach Act. 
• Admit that WellPoint had a security breach and failed to properly notify the Attorney General's Office as required by law.
• Provide up to two years of credit monitoring and identity-theft protection services to Indiana consumers affected by the breach. 
• Provide reimbursement to any WellPoint consumer of up to $50,000 for any losses that result from identity theft due to the breach.

A longtime sore point between the United States and Mexico may have finally been resolved.

U.S. Transportation Secretary Ray LaHood and his Mexican counterpart, Dionisio Arturo Pèrez-Jàcome Friscione, met today in Mexico City to sign agreements resolving the dispute over long-haul, cross-border trucking services between the United States and Mexico. 

As part of the agreement, Mexico will soon lift retaliatory tariffs on more than $2 billion in U.S. manufactured goods and agricultural products, providing opportunities to increase U.S. exports to Mexico and expanding job creation in the U.S., LaHood said.

“The agreements signed today are a win for roadway safety and they are a win for trade. By opening the door to long-haul trucking between the United States and Mexico, America’s third largest trading partner, we will create jobs and opportunity for our people and support economic development in both nations," LaHood said.

A previous cross-border trucking program, established as part of the North American Free Trade Agreement (NAFTA), was canceled in March 2009 after complaints from U.S. consumer groups concerned with the safety of the Mexican trucks.

Diplomatic flap

The flap put a serious kink in U.S.-Mexican relations and led to the imposition of stiff tariffs by Mexico.

The agreement signed today also provides that Mexico will suspend 50 percent of the retaliatory tariffs within ten days.  Mexico will suspend the remainder of the tariffs within five days of the first Mexican trucking company receiving its U.S. operating authority. 

As a result, Mexican tariffs that now range from five to 25 percent on an array of U.S. agricultural and industrial products such as apples, certain pork products, and personal care products would be immediately cut in half and will disappear entirely within a few months. 

LaHood said the agreement addresses the recommendations of over 2,000 commenters to the proposal issued by the Federal Motor Carrier Safety Administration in April. 

As a result of these meetings, and in consultation with Mexico, trucks will be required to comply with all Federal Motor Vehicle Safety Standards and must have electronic monitoring systems to track hours-of-service compliance. 

In addition, the U.S. Department of Transportation will review the complete driving record of each driver and require all drug testing samples to be analyzed in Department of Health and Human Services-certified laboratories located in the U.S.  The Department will also require drivers to undergo an assessment of their ability to understand the English language and U.S. traffic signs. 

The new agreement also ensures that Mexico will provide reciprocal authority for U.S. carriers to engage in cross-border long-haul operations into that country.

Rising food prices, and popular TV shows like Extreme Couponing, have renewed consumer interest in the use of discount coupons at the checkout counter.

While you can save money on your grocery bill, it's wise to keep couponing in perspective and not get carried away. Don't buy something, for example, just because you you have a coupon for a dollar off.

And it's almost always a bad idea to pay for coupons, in the hope that you can use them to save money in the future. Nevada Attorney General Catherine Cortez Masto recently cautioned residents of her state about a radio advertising campaign offering $2,000 in grocery coupons for shopping.

Consumers are directed to call a toll-free telephone number which goes to an inbound telemarketing company. Consumers who call the number will be asked to provide his or her credit card information in order to receive a packet of information about the coupon program.

Not exactly free

The packet will contain information, either offering or actually signing the consumer up for a variety of “programs” which can cost the consumer hundreds of dollars if he or she does not call and cancel the services within a few days. The packets do not include $2,000 in grocery coupons and the consumer will be charged a fee “for shipping and handling” of the information packet.

The packet directs the consumer to GrocerySavers.com. Masto says GrocerySavers is a legitimate coupon provider, but cautions consumers that the coupons it provides are not free. They cost 10 percenrt of the face value of the coupons plus a service charge.

The offer of $2000 in grocery coupons will ultimately cost the consumer $200 plus shipping and handling. Many of the coupons offered can be obtained free at the merchant’s or manufacturer’s websites.

By wary of 'free' offers

Masto says it's just the latest example of so-called “free trial offers,” which usually end up enrolling the consumer in an ongoing program that places a monthly charge on their credit card.

Masto says consumers should never provide information about your credit cards, bank accounts, or other financial information to persons unknown to you. Another good rule of thumb is to never accept any “free offer” that requires you to provide credit card information in order to receive it.

As for coupons, remain alert to offers in your local newspaper and advertising circulars and only use them for things you would buy anyway. 

So far, Apple's decision to begin selling an iPhone through Verizon Wireless appears to be paying off. Apple's share of the smartphone market soared 1.2 percent between February and May, according to data compiled by comScore, which follows trends in the U.S. mobile phone industry.

For the three month period ending in May, 234 million Americans ages 13 and older used mobile devices. Apple strengthened its position at number four with 8.7 percent share of mobile subscribers, up from 7.5 percent in February, when Verizon began selling the iPhone.

Prior to that time, the iPhone was available only on the AT&T network.

Samsung still leads

While Apple showed the most movement over the last three months, it has a lot of ground to cover before becoming the number one mobile phone on the market. Device manufacturer Samsung ranked as the top manufacturer with 24.8 percent of U.S. mobile subscribers, followed by LG with 21.1 percent share and Motorola with 15.1 percent share.

RIM, which makes the Blackberry, continued to lose marketshare, and is in fifth place with 8.1 percent of the market.

Android gains ground

As for mobile device platforms, Google's Android solidified its lead during the February to May period. According to comScore, 38.1 percent of mobile devices in use during that period run on the Android system, a 5.1 percent increase over February.

Apple's system was second with 26.6 percent of the market, an increase of 1.4 percent.

RIM was third with 24.7 percent marketshare, a loss of 4.2 percent of the market in just three months.

Microsoft was a distant fourth and still losing ground, at just 5.8 percent of the market.

In May, 69.5 percent of U.S. mobile subscribers used text messaging on their mobile device. Browsers were used by 39.8 percent of subscribers (up 1.5 percentage points), while downloaded applications were used by 38.6 percent (up 2.0 percentage points).

Accessing of social networking sites or blogs increased 1.8 percentage points to 28.6 percent of mobile subscribers. Game-playing was done by 26.9 percent of the mobile audience (up 2.3 percentage points), while 18.6 percent listened to music on their phones.

Viking Range Corporation has agreed to pay a civil penalty of $450,000 after admitting that it was aware for years of a defect involving its refrigerator door hinge support mechanisms that resulted in incidents and injuries to consumers but failed to report the defect, as required by federal law.

Viking reported the safety defect to the U.S. Consumer Product Safety Commission (CPSC) in April 2009, and the firm agreed to a recall in June 2009.  Subsequent investigation conducted by CPSC staff uncovered that by that time the firm was aware of at least 10 reports of injuries involving Viking refrigerator hinge failures going back over several years.

CPSC and Viking announced a recall of more than 45,000 Viking refrigerators in June 2009.  The hazard identified with the refrigerators is that refrigerator hinges and hardware that attach the doors to the refrigerator box can loosen, sag and detach, posing an impact injury hazard to consumers if the door detaches.

Viking sold the refrigerators through appliance and specialty retailers from July 1999 through April 2006.

Federal law requires manufacturers, distributors and retailers to report to CPSC within 24 hours after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC.

In agreeing to the settlement, Viking Range Corporation denies CPSC staff allegations as to the existence of a defect or hazard or that it violated the law.

The number of U.S. consumers filing for bankruptcy protection fell sharply in the first half of 2011, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC).

Filings totaled 709,303 nationwide during the first six months of 2011, an eight percent decrease from the 770,117 total consumer filings during the same period a year ago. Economists said it could be a hopeful sign that consumers are beginning to better cope with their debt loads.

"The drop in bankruptcies for the first half of the year shows the continued efforts of consumers to reduce their household debt, and the overall pull back in consumer credit," said ABI Executive Director Samuel J. Gerdano.

5% decrease

The overall June consumer filing total of 119,768 represented a five percent decrease from the 126,270 filings recorded in June 2010. The June 2011 filings represented a four percent increase from the May 2011 consumer bankruptcy total of 114,803 filings. The percentage of chapter 13 filings for June was 28 percent, a one percent increase from May.

Bankruptcy laws are designed to help people who can no longer pay their creditors get a fresh start, by liquidating assets to pay their debts or by creating a repayment plan. Most cases are filed under the three main chapters of the Bankruptcy Code – Chapter 7, Chapter 11, and Chapter 13. Federal courts have exclusive jurisdiction over bankruptcy cases. This means that a bankruptcy case cannot be filed in a state court.

More bad news for Chantix, the smoking-cessation drug from Pfizer. A new meta-analysis of health studies finds a 72% increase in the risk of congestive heart failure, stroke and other problems among Chantix users.

The findings were published Monday in the Canadian Medical Association Journal, less than a month after the U.S. Food and Drug Administration (FDA) ordered stronger warnings for the drug's labeling and medical guides.

The lead author of the Canadian study, Sonal Singh of Johns Hopkins School of Medicine said the finds are "another reason to consider avoiding Chantix altogether." Singh said smokers "don't need Chantix to quit."

The FDA's warning came after a randomized clinical trial of 700 smokers with cardiovascular disease who were treated with Chantix or a placebo.

While the trial found that Chantix was effective in helping smokers quit, there were also more frequent "adverse events" in patients treated with Chantix rather than a placebo.

The authors of the Canadian study said that while the increased risk of cardiovascular events was slight – 1.06% among Chantix users, 0.82% among those given a placebo – the study nevertheless "raises safety concerns" and suggests further research is needed.

While it remains very hard to get a mortgage, there seems to be plenty of money for car loans. But keep in mind that, just like mortgages, not all car loans are alike. And just like mortgages, there are predatory car loans that end up making a vehicle a lot more expensive.

How do you know if the loan you are being offered is predatory? The Center for Responsible Lending says there are five red flags consumers should look for.

Dealer kickbacks

Car dealers usually have deals with lenders. The lender agrees to a low “buy rate” but allows the dealer to raise it at the dealer's discretion. The dealer often will do that since most of the additional interest ends up in the dealer's pocket.

Loan packed with Junk fees

Dealers inflate the overall price of the car loan through overpriced add-on products – often sold in packages –including “GAP” insurance, vehicle service contracts, credit life and disability insurance, rust proofing, theft deterrent packages, and “window etching.” By inflating vehicle cost, the dealer is inflating the loan size. As a result, the potential loan kickback for the dealer is increased.

Yo-Yo Sales

The buyer is either convinced to enter into or unwittingly placed in a conditional sale agreement rather than a final sale. After the buyer drives the vehicle home, the dealer later claims to be unable to fund the loan at the agreed-upon terms. The buyer is required to return the car and renegotiate an often more costly loan. Often, the buyer is told that their down payment is non-refundable and/or their trade-in has already been sold.

Buy Here, Pay Here

Buy Here Pay Here (BHPH) dealerships typically finance used auto loans in-house to borrowers with no or poor credit histories. The average APR is much higher than a bank or credit union loan. BHPH dealers expect much higher default and repossession rates.

Instead of responsibly financing affordable cars, the business model depends on churning the same vehicles to local buyers as many times as possible. Dealers usually require a disproportionate percentage of the car’s actual value for down payment and pack the loan with unnecessary fees to make more money up front.

No option to sue

“Mandatory arbitration” clauses essentially waive the customer’s right to sue and appeal in court. In simple terms this means that if you have a valid complaint with a car dealer, you won’t be allowed to take action through a court of law. Instead, companies require their customers to pursue complaints through an arbitrator—a process that is more likely to favor the dealer.

One of the best ways to avoid predatory loans is to avoid financing the vehicle through the dealer, period. Instead, get pre-approved for the loan at your bank or credit union. To avoid a yo-yo sale, read the contract carefully to make sure it is a final, not a conditional sale. To keep from inflating the value of the car, say no to the add-ons you don't really need.

Remember, the saleman may be very persuasive but the consumer holds the ultimate power on a car lot. If you are prepared to walk away from a bad deal, you will find that very few salesmen will let you walk without giving ground.