Current Events in October 2011

Netflix has done it again. The recently-announced price hikes that infuriated consumers was followed by the announcement that video streaming was being separated from DVD rental, which infuriated customers some more.

Now, the company says it's changed it's mind about at least one of the changes. In other words, forget about it.

Qwikster's demise

Just last month Netflix announced it was spinning off DVD rentals to a separate company and website to be called Qwikster. At the time, Netflix explained that the two companies would have a better chance to flourish on their own. DVD's would be rented from a separate website, through a separate account for a separate fee.

Last month's announcement was accompanied by an online mea culpa from Netflix CEO Reed Hastings that prompted this Saturday Night Live parody, which almost seems real in light of the latest announcement.

Over the weekend Hastings took to the Internet again, in a brief blog posting announcing the company would not follow through on its recently announced changes.

Netflix for both streaming and DVDs

“It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs,” Hastings said. “This means no change: one website, one account, one password… in other words, no Qwikster.”

The announcement of Qwikster was meant to explain Netflix's change to its membership structure. The consumer grumblings began in July when Netflix announced it was charging separate membership fees for streaming access and DVD rentals. At the time, consumers got both for the $8 a month fee. Despite dropping the Qwikster site, customers will have to still pay for both separately, in what amounts to a 60 percent price increase.

Missteps

The uncharacteristic public relations miscues have come at a bad time for Netflix, which finds itself under growing pressure from its higher priced competitors as well as the emergence of an increasing number on the low end.

Starz Entertainment recently rejected Netflix's $300 million contract renewal offer, stating it was bothered by the fact Netflix was offering access to the content for only $8 a month, while cable and satellite TV companies charged much more.

In the same blog posting announcing the end of Qwikster, Hastings also sought to reassure subscribers that they won't miss the Starz content.

“We’ve recently added hundreds of movies from Paramount, Sony, Universal, Fox, Warner Bros., Lionsgate, MGM and Miramax. Plus, in the last couple of weeks alone, we’ve added over 3,500 TV episodes from ABC, NBC, FOX, CBS, USA, E!, Nickelodeon, Disney Channel, ABC Family, Discovery Channel, TLC, SyFy, A&E, History, and PBS,” Hastings said.

When economists speak of a recession, they define it as two consecutive quarters of negative growth in the Gross Domestic Product (GDP), the total of all goods and services in the economy. By that definition, the recession ended in June 2009, with quarterly growth – albeit anemic – ever since.

But for many consumers, it feels like the recession has never ended. Two former Census Bureau researchers say that may be because consumer incomes are shrinking.

The researchers have compiled a study showing that from June 2009 to June 2011 – the two years following the official end of the recession - inflation-adjusted household income fell 6.7 percent. During that time, consumers have had to deal with sharply higher food and gasoline costs, as well as a reduction in available credit.

During the actual recession, one could argue that consumers actually fared better. Gas prices plunged and their incomes declined just 3.2 percent.

Significant reduction in the standard of living

Taken together, the years since the beginning of the recession, December 2007, household income is down nearly 10 percent. Researchers Gordon Green and John Coder call that a significant reduction in the standard of living.

Green and Coder say the 9.1 percent unemployment rate has a lot to do with the drop in household income. But even people with jobs appear to be earning less, with some unemployed taking new jobs at substantial pay cuts.

The research also found that groups already earning less than the average suffered the biggest drop in income, along with those who owned their own businesses. The drop in income for the self-employed in the two years since the end of the recession is nearly three times those who work for a private sector company.

In response to the foreclosure crisis, the federal government, non-profit organizations, mortgage lenders and private companies began offering loan modification services to financially distressed homeowners facing foreclosure.

But the system proved frustrating and complex for consumers who complained of incompetence and indifference from loan servicers. That led to a proliferation of predatory mortgage relief companies that charged excessive fees to perform services they lacked the knowledge and resources to perform.

While little has been done at the national level to offer relief, states have in recent months become active in prosecuting mortgage modification companies accused of deceiving homeowners. The state of Oregon, for example, has just sued one California-based modification and settled with another.

Collected $90 in fees

Oregon Attorney General John Kroger has sued NOD Consultants, LLC, charging it with illegally collecting about $90,000 in fees from nearly three dozen Oregon homeowners and then refusing to provide refunds after the company failed to obtain promised loan modifications.

Since November 1, 2009, Kroger says at least 34 Oregonians have become clients of NOD Consultants after company officials led them to believe they would successfully obtain loan modifications on their behalf.

The complaint alleges that the defendants collected advance fees ranging from $725 to $2,950 in violation of Oregon law, which caps advance fees at $50.

According to the complaint, although most of the defendants' Oregon clients were current on their mortgage payments, the defendants encouraged them to skip at least one payment, claiming it would encourage their lender to re-negotiate.

Notwithstanding promises to obtain loan modifications, NOD Consultants allegedly failed to obtain a loan modification for 33 of its 34 Oregon clients.

Settlement

Meanwhile, Kroger reports a previous lawsuit has yielded results. The agreement bans American Team Mortgage, Inc., dba American Mortgage Relief, and Steve Hufstedler from foreclosure counseling, credit/debt counseling, loan modification or mortgage origination in Oregon.

Under the agreement, 28 homeowners will receive $67,000 in restitution. Oregon will receive an additional $65,000 for its consumer protection efforts.

The Department of Justice (DOJ) and the Department of Consumer and Business Services (DCBS) conducted a joint investigation into allegations that the companies took illegal upfront fees to provide loan modifications. The investigation determined that 28 Oregon homeowners received neither the loan modification they paid for nor a refund.

"Distressed homeowners need help, not empty promises," Kroger said."I want to thank DCBS for its work on this case."

Everyone loves rewards associated with credit cards, but lately some consumers are expressing disappointment with the rewards that come in the form of airline travel.

“In June 2011, I attempted to redeem my 'Free Travel Companion Certificate' from American Express for a flight in March 2012, nine months in advance of flying,” Gerald, or Anaheim, Calif., told ConsumerAffairs.com. “I was advised no seats were available. I have only been able to use this 'Free Travel Companion Certificate' once out of three years. How far in advance of flying does one need to make reservations in order to use this 'benefit' of the costly Platinum Card?”

Not all rewards cards are created equal, and when it comes to air travel some have more blackout dates that others. Something to check into before committing to a card if the air travel rewards are important to you.

Cut out the middleman

Michelle, of Murfreesboro, Tenn., used Just Flowers to send flowers to her uncle on his 90th birthday. But the transaction didn't go without a snag.

“Just Flowers told me that my flowers were delivered but the floral company that was to deliver the flowers accidentally called me and said that the flowers were not delivered because they could not find the location,” Michelle said.

Michelle might have avoided the potential embarrassment by cutting out the middleman and dealing directly with a local florist.

Manage your card

With Bank of America adding a $5 monthly charge using a debit card, some consumers might be thinking of switching to a prepaid card like Green Dot. But keep in mind these cards also carry charges, and must be carefully managed.

“I have a green dot card I got last year,” Bill, of Ofallon, Mo., told ConsumerAffairs.com. “Last year, I put on the card like $50, bought some stuff online, spent all the money and it was all good. So I had the card all these months with zero dollars on it, or so I thought. I went to put some money on it, and only 10 bucks made it onto my account. It seems that they charge $5 a month for the card even when its empty, meaning to put any money on the card I'd have to pay off like $40.

Bill thinks it's unfair, but almost all prepaid cards carry a monthly service charge, whether you use the card or not. But sure to read the terms and conditions carefully before you apply.

Frustrated

When you order a specially-made product but change your mind, can you get your money back? Kim, of Carl Junction, Mo., recounts the story of her husband's attempt to get new classes at Sears Optical. After an extended wait of several weeks, she said the glasses finally arrived.

“He goes to get them and the same girl adjusts them and they seem to be fitting fine and then she goes to clean them,” Kim said. “She asks after she cleans them if they're his lenses and he said you told me they were and she said they are smudged - the AR (anti-reflective) was coming off. She'd have to order him more lenses, they'd arrive in two to three weeks. He says forget it - he wants his money back. She said she can't do that without a managers permission.”

Kim's husband certainly is within his rights to request a refund as he had not yet taken possession of the glasses and the company had damaged them. The company might drag its feet – no one likes to refund money – but Kim's husband needs to stick to his guns.  

With American consumers taking to the streets to protest the sluggish economy and moribund job market, it's not a good time for politicians, big banks and major corporations to try to stay about the fray.  Yet that seems to be exactly what they're doing.

Bank of America's decision to get even with Congress and its customers by slapping a $5 monthly fee on debit card users has done more damage to the bank's reputation in just a few short weeks than the agonzingly drawn-out Countrywide Mortgage fiasco.

Consumers have not sacked and burned BA branches, not yet anyway, but many thousands have said they will close their BA accounts and go elsewhere.

The question thus becomes: where can those disgruntled banking customers  go to find free or reasonably-priced checking accounts that include online banking and a debit card?

The options are literally too numerous to list but we rounded up  a few of the more obvious ones.  Keep in mind that all banks have multiple plans that depend in great part on how much money you're willing and able to keep in your account.

If you can keep $5,000 or more on deposit, most big banks will welcome you with free or inexpensive plans. If you can't or won't do that, prepare to be charged for just about everything -- or look for a smaller bank or credit union that's hungrier for business.  There are thousands of them out there, just waiting for you to come through the door.

And just to prove it, here is a tiny but representative sample of banks that offer free debit cards on at least some of their account plans.  Keep in mind, plans differ by state and you must read the terms carefully. Banks have numerous plans, so be sure you know which one you're getting.

Large Banks

• Ally The former GMAC, Ally is an online bank offering free debit cards, free onling banking, and free checking accounts.  The Ally Perks plan pays a small bonus each time you use the debit card to make an online purchase or at participating retailers.   
• Capital One  Once just a credit card issuer, Capital One has bought up several regional banks and is aggressively pursuing new customers.  It offers  at least one checking account that includes a free debit card, no monthly fee and free currency exchange services for overseas transactions.   
• Chase You can get a free debit card and free online banking if you keep a minimum balance of $1,500 or have direct deposits of $500 or more made to the account.  Higher balances will get you more freebies.  
• PNC Bank  PNC's Virtual Wallet Plus plan offers free debit cards as well as limited free checking, online banking, interest-bearing checking and a savings account.  Read the terms carefully; nothing in life is completely free.
• Provident Bank A free debit card is available with several of its checking plans, which offer free checking with an monthly average balance of as little as $500. 

Local Banks

Just because we're all drowning in advertising from huge banks doesn't mean we shouldn't patronize -- or at least check out -- local banks.  They often offer much better terms than the big guys and tend to provide more personal service.

Here are just a few local banks we picked at random:

• Community Bank & Trust, Sheboygan, Wis., offers a free personal checking account with no minimum balance requirement, including an ATM and debit card.
• Community Bank of DuPage, DuPage, Ill., offers free checking with no minimum balance. Includes free online banking and debit card.
• Shore Community Bank, Toms River, N.J.  It's the Jersey Shore, up close and personal.  This local bank provides free regular checking with no minimum balance requirement, free online banking and free debit card.  Hey, you got a problem with that?

Credit Unions

Credit unions are non-profit organizations that originally offered memberships to very specific groups -- employees of a local municipality, federal workers, etc. But these days, many credit unions have much more liberal membership standards. They are often the best source of loans, checking, credit card and savings accounts.

To find a credit union near you, visit the National Credit Union Association site. Enter your state and Zip code in the Find a Credit Union form and, chances are, you'll find one near you.  You can then check eligibility requirements and look over what the CU offers.

In Burbank, California, for example, we found the UMe (you & me, get it?) Credit Union.  Originally chartered to serve local school teachers, it now has about 12,000 members who live, work or worship in Burbank or attend school or belong to an organization that's headquartered there.

UMe offers free checking if you sign up for paperless statements or are 60 years of age or older.  The personal checking account includes a free Visa debit card, unlimited check writing and pays interest on account balances over $2,500, as well as dog treats for your dog and bottled water for you whenever you visit a branch.

It's a big country ...

We like cable news and the Internet as much as anyone but one result of the so-called information explosion is that there is a lot more national news and chatter than there used to be and less attention to local and regional goings-on.

It's easy to sit at home in front of the tube and get riled up at Bank of America, but take a look out your back door and you'll probably find a couple of local banks and credit unions a few minutes away.  Go introduce yourself and see what they'll do to win your business.  You might be surprised.  

Except for some pesky environmental demonstrators outside the White House, Washington, D.C., has been relatively free of the Occupy Wall Street-style disruptions that are spreading around the country.

While it's popular in the daily press to deride the protestors for not being able to say specifically what they want, it's pretty clear they're upset about the economy and what they see as a predatory financial system.

None of this cuts much ice in the U.S. Senate, where Republicans are vowing to jettison the nomination of former Ohio Attorney General Richard Cordray to head the new Consumer Financial Protection Bureau (CFPB).

Cordray was cleared by the Senate Banking Committee Thursday but Republicans have opposed the agency from the beginning and say they will block the Senate from voting on Cordray's nomination until the agency is watered down to their liking.

"Americans job creators are under siege," said  Sen. Richard Shelby (R-Ala.), ranking Republican on the committee.  "Regulators are about to subject those who had nothing to do with the financial crisis to hundreds of new rules and regulations without determining whether the benefits exceed the costs."

Democrats argue that the changes would weaken the new regulator, which opened its doors on July 21 and President Obama has gone on the offensive recently.

"Republicans have threatened not to confirm him, not because of anything he's done, but because they want to roll back the whole notion of having a consumer watchdog," Obama said at a news conference on Thursday.

Is it necessary?

But while Republicans and the financial institutions that have ponied up to finance opposition to Cordray's nomination say the CFPB isn't necessary, consumers have reacted with outrage to Bank of America's adding a $5 monthly fee for the use of debit cards. 

"My bank has not done this as of yet. But if it does that will be the day I cut up my debt card," said Joni Bonn of South Dakota. "They can try to charge all the fees they want. But we the people have to show them we are not going to pay ... we have to show them by not using the debt card or closing our accounts that we will not stand for all these fees."

While consumers were fuming, the Consumer Federation of America (CFA), a non-profit consumer advocacy organization, was drawing up a list of abusive financial practices that have become more widespread in recent months.

CFA released a list of the objectionable practices. They include:

Predatory Practices Targeted at Military Service Members: J.P. Morgan Chase disclosed that they have foreclosed on 14 active-duty military families and overcharged 4,000 others in wrongful fees or improper interest rates. Also, a growing number of banks make payday loans to their customers, called direct deposit advances that cost $10 per $100 borrowed or 365 percent APR based on a typical loan term of ten days. These bank payday loans carry the same high cost, short term, debt-trap features as non-bank payday loans. Military service members are also subject to pay high overdraft fees at on-base and off-base banks.

Mortgage Foreclosure and Servicing Abuses. In the wake of the housing crisis, some mortgage servicing companies have illegally sped up foreclosures and generated unjustifiable fees at homeowners’ expense. Default and foreclosure rates are higher than they have been since the Great Depression, while millions of consumers are currently subject to illegal actions by mortgage servicing companies, including misapplied payments, botched taxes, robo-signing and other fraudulent actions, CFA said.

Unfair Bank Overdraft Loans: Despite a new Federal Reserve requirement that banks get consumers to consent to paying for debit card overdrafts, only the FDIC has issued comprehensive guidelines for bank overdraft programs at the banks it supervises. Banks continue to charge steep and multiple fees for overdraft loans, require immediate repayment, and take payment first out of the account holder’s next pay deposit before other debits are paid, CFA alleged.

Plentiful Fees and Few Protections for Pre?paid Cards: As bank fees increase, prepaid debit cards are increasingly becoming substitutes for bank accounts. However, prepaid cards come with a dizzying array of fees and with fewer protections than consumers get with other forms of plastic. Consumers need simple and transparent fees. Prepaid cards must be covered by the same consumer protections that apply to bank account debit cards, CFA said. 

Internet Payday Lending: Internet payday lenders are marketing loans online at rates and terms that mire cash-strapped consumers in repeat borrowing at extremely high rates, CFA alleged. Finance charges to borrow $100 range from $15 (390% APR) to $30 (780% APR). Many of these loans have built in loan flipping, with finance charge-only payments withdrawn from borrowers’ accounts every payday without reducing the loan itself. 

Bank Payday Lending. A growing number of banks are offering “direct deposit advances” that have the same dangerous features as traditional payday loans that make them an unaffordable debt trap for many consumers. In addition, bank payday loans evade protections for Social Security, disabled and unemployment benefits and other laws designed to ensure that creditors do not take income needed for food, rent, medicine and other essential purchases.

The Federal Communications Commission (FCC) has taken the first steps to fund an expansion of broadband Internet service to rural America, proposing an overhaul of the Universal Service Fund, set up decades ago to expand rural telephone service.

FCC Chairman Julius Genachowski outlined the proposal in a speech in Washington, suggesting that the $8 billion subsidy be directed to making broadband Internet as common as landline telephone service.

“Broadband has gone from being a luxury to a necessity for full participation in our economy and society,” Genachowski said. “If we want the United States to be the world's leading market” for innovation, “we need to embrace the essential goal of universal broadband, and reform outdated programs.”

New objectives

Prior to the Telecommunications Act of 1996, the Universal Service Fund operated as a mechanism by which interstate long distance carriers were assessed to subsidize telephone service to low-income households and high-cost areas. The Communications Act of 1934 stated that all people in the United States shall have access to “rapid, efficient, nationwide … communications service with adequate facilities at reasonable charges.”

The Telecommunications Act of 1996 expanded the traditional definition of universal service - affordable, nationwide telephone service – to include among other things rural health care providers and eligible schools and libraries.

The revamped Universal Service Fund would be renamed the Connect America Fund. It would pay for expanded broadband infrastructure in under-served areas and improve wireless coverage.

Rural options are limited

Currently, rural areas are served by two principal satellite Internet providers – HughesNet and Wild Blue – both of which have issues with latency. Some consumers also use the mobile broadband services offered by Verizon Wireless and AT&T. However, these services are at 3G speed in most areas and the more affordable plans are limited to 5 gigabytes of data per month.

"If adopted by the Commission, the plan will spur broadband build-out to hundreds of thousands of homes and businesses beginning in 2012,” Genachowski said. “It will help cut the number of Americans bypassed by broadband by up to one half over the following five years, and it will put us on the path to universal broadband by the end of the decade. By connecting millions of unserved Americans who are being left out of the broadband revolution, this plan will bring enormous benefits to individual consumers, our national economy, and our global competitiveness."

The U.S. Food and Drug Administration (FDA) has approved Cialis to treat benign prostatic hyperplasia (BPH), a condition in which the prostate gland becomes enlarged, and for the treatment of BPH and erectile dysfunction (ED), when the conditions occur simultaneously.

Cialis was originally approved in 2003 for the treatment of ED.

Common symptoms of BPH include difficulty in starting urination and a weak urine stream; a sudden urge to urinate; and more frequent urination including at night.

In two clinical trials, men with BPH who took 5 milligrams (mg) of Cialis once daily experienced a statistically significant improvement in their symptoms of BPH compared to men who were treated with placebo. 

In a third study, men who experienced both ED and BPH and who took 5 mg of Cialis once daily had improvement in both their symptoms of BPH and in their ED compared to men who were treated with placebo. 

 “BPH can have a big impact on a patient’s quality of life,” said Scott Monroe, director of the Division of Reproductive and Urologic Products in the FDA’s Center for Drug Evaluation and Research. “A large number of older men have symptoms of BPH. Cialis offers these men another treatment option, particularly those who also have ED, which is also common in older men.”

Cialis should not be used in patients taking nitrates, for example nitroglycerin, because the combination can cause an unsafe decrease in blood pressure. Also, the use of Cialis in combination with alpha blockers for the treatment of BPH is not recommended because the combination has not been adequately studied for the treatment of BPH, and there is a risk of lowering blood pressure.

The FDA has approved eight other drugs to treat symptoms of BPH: Proscar, (finasteride), Avodart (dutasteride), Jalyn (dutasteride plus tamsulosin), and the alpha blockers: Hytrin (terazosin), Cardura (doxazosin), Flomax (tamsulosin), Uroxatral (alfuzosin) and Rapaflo (silodosin).

If you have a mortgage loan, you may have received a letter from your lender urging you to sign up to allow them to automatically withdraw your monthly payment. Sharon, of Playa del Rey, Calif., has one reason why you shouldn't do it.

“My mortgage was paid off on October 1, but Bank of America still took out my monthly payment out of my bank account on October 3,” Sharon told ConsumerAffairs.com.

And once they've taken the money, it's very hard to get it back. A better alternative, if your bank offers free online bill pay, is to set up a monthly payment from your bank account to the mortgage company. That way you keep control of your bank account.

Balance not budging

Stanley, of Huntsville, Ark., says he borrowed $400 from One Click Cash and, despite paying $135 every two weeks, still owes the entire $400!

“What I want to know is where is the money going besides their pockets if not towards the loan?” Stanley asked. “Because of this we will have to sell some of our stuff just to pay bills.

This makes the case of pay day loan industry critics, who say borrowers get sucked into an endless cycle of debt. If Stanley has something to sell, instead of paying his bills with it he should try to pay off the loan in its entirety.

Less than full coverage

Many consumers purchase service contracts for their vehicles because they're afraid of getting stuck with expensive repairs. Sandra, of Newnan, Ga., bought what she says she was told was a full coverage policy from the now-defunct US Fidelis.

“I took out the bumper to bumper paid coverage in 2009, paid $395.00 down and paid $143.33 a month until March 2011,” Sandra told ConsumerAffairs.com. “There was suppose to be no out of pocket money for repairs. Three weeks ago I needed a compressor on my car and they only paid $500.00 and I had to come up with $749.00. On October 4 my car went in the shop for a starter and they are paying $205.50, leaving me with a $241.06 balance.”

Sandra is understandably upset that she is not getting the full coverage that she thought she paid for, but let's look at the math behind her particular policy. From what she's told us this policy cost her about $3,800. Had she not purchased a service contract but put that money in the bank, she could have paid the entire $1.249 for the first repair and $446.06 for the second and still had more than $2,000 in her pocket – maybe for a down payment on a new car! So called “extended warranties” or service contracts rarely pan out.

Bad news, good news

B., of Ottawa, Canada, is miffed at Avis for the way the car rental company charged him for the repair of a chipped windshield, even though he bought the insurance.

“I sat and waited and the clerk finally told me that it was $136.00 and that they had taken it out of my Mastercard,” B. said. “I felt a little funny about them not telling me how much it was and getting my approval to put it on my Mastercard. But I didn't say anything because I thought it is over. Three to four weeks later, I get a invoice in the mail saying that I owed them $268.00.”

But while B. has little nice to say about Avis, he is very pleased with his credit card company. When he called to report the incident, he learned that one of the features of his card covered damage to rental cars.

Volkswagen says that it will recall more than 168,000 VW and Audi models with diesel engines.

There is a defect in the fuel injection system that could cause fuel leaks, possibly creating fire hazards, the company said.

The recall affects certain 2009-12 Jetta mid-sized sedans and wagons, and some 2010-12 Golf compacts, according to the National Highway Traffic Safety Administration (NHTSA).

Some 2010-12 Audi A3 models also are affected, NHTSA said on its Web site.

Models subject to the recall have 2.0-liter diesel engines, NHTSA said.

VW, in documents filed with U.S. regulators, said cracks can develop in the fuel injection system and cause fuel to leak, possibly causing fires.

VW said it is unaware of any fires, accidents or injuries caused by the problem.

On certain VW diesel engines, a vibration caused by the fuel injectors can generate stress that eventually can lead to cracks in the injector fuel lines, VW said in documents filed with NHTSA.

VW will replace a fuel injector line in some models and install dampers to reduce vibration in all affected vehicles, NHTSA said. Both services will be provided free, VW said.

Scam artists might want to scrub their email lists, to remove law enforcement officials.  

Ohio Attorney General Mike DeWine says he was tipped off to one of the latest scams when he received a suspect email that claimed to be from "The Google Team 2011" asking him to update his payment information.

What is it about smoking?  Everybody knows it's really bad for you but millions of people old and young, dumb and smart, rich and poor continue to smoke the evil weed, while others chew it or find other ways to get it into their system.

This is not the kind of question that can be left lying around, say public health officials.  It needs to be answered.  And so the U.S. Food and Drug Administration (FDA) and the National Institutes of Health (NIH) today announced a joint, large-scale, national study of tobacco users to monitor and assess the behavioral and health impacts of new government tobacco regulations.

We thought we might be able to help out find a few answers, so we conducted a computerized sentiment analysis of about 4.2 million comments posted over the last year on Twitter, Facebook and other social media and blogs.  Looking at about 10,000 comments from people who liked cigarettes, this is what we found:

OK, so 63% said they get pleasure, taste and smell from smoking.  Oddly, a few seemed to think cigarettes are "good for you." 

Dislikes

We found about 33,000 people who voiced very strong dislikes for cigarettes, including the smell and taste that tobacco lovers found pleasurable.  Only 7% mentioned fear of cancer.

The initiative, called the Tobacco Control Act National Longitudinal Study of Tobacco Users, is the first large-scale NIH/FDA collaboration on tobacco regulatory research since Congress granted FDA the authority to regulate tobacco products in the Family Smoking Prevention and Tobacco Control Act of 2009.

Scientific experts at NIH’s National Institute on Drug Abuse and the FDA’s Center for Tobacco Products will coordinate the effort.

“The launch of this study signals a major milestone in addressing one of the most significant public health burdens of the 21st century,” said FDA Commissioner Margaret A. Hamburg. “The results will strengthen FDA’s ability to fulfill our mission to make tobacco-related death and disease part of America’s past and will further guide us in targeting the most effective actions to decrease the huge toll of tobacco use on our nation’s health.”

40,000 smokers

Investigators will follow more than 40,000 users of tobacco-product and those at risk for tobacco use ages 12 and older. They will examine what makes people susceptible to tobacco use; evaluate use patterns and resulting health problems; study patterns of tobacco cessation and relapse in the era of tobacco regulation; evaluate the effects of regulatory changes on risk perceptions and other tobacco-related attitudes; and assess differences in attitudes, behaviors and key health outcomes in racial-ethnic, gender, and age subgroups.

“We are pleased to collaborate with the FDA on this study that may provide us with a better understanding of the impact of product regulation on tobacco prevention and cessation,” said NIH Director Francis S. Collins, M.D., Ph.D.

Study findings will help the FDA assess the impact of the Tobacco Control Act and will inform the agency about how to best use its tobacco regulatory authorities, such as making decisions about marketing of products, setting product standards, and communicating the risks from tobacco use to protect the public health.

While smoking rates have dropped significantly since their peak in the 1960s, nearly 70 million Americans ages 12 and older were current users of tobacco products in 2010. As a result, death and disease caused by tobacco use is still a tremendous public health burden.

Tobacco use is the leading preventable cause of disease, disability, and death in the United States. Cigarette smoking results in more than 443,000 premature deaths in the United States each year – more than alcohol, illegal drug use, homicide, suicide, car accidents, and AIDS combined.

Since cell phones became universal, drivers have had it drummed into them how dangerous it is to send and receive texts behinds the wheel. It turns out we didn't know the half of it.

Researchers at the Texas Transportation Institute (TTI) have concluded that a driver’s reaction time is doubled when distracted by reading or sending a text message. The study reveals how the texting impairment is even greater than many experts believed, and demonstrates how texting drivers are less able to react to sudden roadway hazards.

First study

The study is the first U.S. study to examine texting while driving in an actual driving environment – consisted of three major steps. First, participants typed a story of their choice (usually a simple fairy tale) and also read and answered questions related to another story, both on their smart phone in a laboratory setting.

Each participant then navigated a test-track course involving both an open section and a section lined by construction barrels. Drivers first drove the course without texting, then repeated both lab tasks separately while driving through the course again. Throughout the test-track exercise, each participant’s reaction time to a periodic flashing light was recorded.

Eleven times more likely to miss flashing lights

Reaction times with no texting activity were typically between one and two seconds. Reaction times while texting, however, were at least three to four seconds. Worse yet, drivers were more than 11 times more likely to miss the flashing light altogether when they were texting.

The researchers say that the study findings extend to other driving distractions that involve reading or writing, such as checking e-mail or Facebook.

“Most research on texting and driving has been limited to driving simulators. This study involved participants driving an actual vehicle,” said ChristineYager, an associate transportation researcher in TTI’s Center for Transportation Safety. “So one of the more important things we know now that we didn’t know before is that response times are even slower than we previously thought.”

For the first time ever, the average 30-year fixed rate mortgage rate has fallen below four percent. The new all-time low is 3.94 percent, with an average 0.8 point, according to Freddie Mac.

At this time a year ago, the average 30-year mortgage rate was 4.27 percent.

Other rates are even lower. The 15-year fixed rate mortgage this week averaged 3.26 percent with an average 0.8 point, down from last week when it averaged 3.28 percent. A year ago at this time, the 15-year FRM averaged 3.72 percent. The five-year Treasury-indexed hybrid adjustable rate mortgage averaged 2.96 percent this week, with an average 0.6 point, down from last week when it also averaged 3.02 percent. A year ago, the 5-year ARM averaged 3.47 percent.

Analysts said the falling interest rates reflect worries about the health of the global economy.

“Average 30-year conventional fixed mortgage rates fell below four percent for the first time in history this week following a sharp drop in 10-year Treasuries early in the week as concerns over a global recession grew.,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “Average 15-year fixed rates fell to a record low in the PMMS as well. Interest rates for 1-year ARMs, however, rose, as the Fed began replacing $400 billion of its short-term Treasury securities, which serve as benchmarks for many ARMs. Also, in his testimony to Congress's Joint Economic Committee on Tuesday, Federal Reserve Chairman Bernanke said the recovery is close to 'faltering' and stressed the need for lawmakers to act.”

Where are the buyers?

While record low interest rates ordinarily would set off a buying binge in the real estate market, no one expects that to happen. While rates are rock bottom, buyers first have to be able to qualify for a mortgage. Often that means having a stellar credit rating and a 20 percent or more down payment.

“We continue to experience a pattern in which financially qualified home buyers, willing to stay well within their means, are being denied credit – a factor in elevated levels of contract failures,” said Lawrence Yun, chief economist for the National Association of Realtors (NAR). “Based on the improving fundamentals of population growth, some job additions, rent increases and higher stock market wealth, we should be seeing existing-home sales closer to 5.5 million, but are expecting just over 4.9 million this year. The unnecessarily restrictive mortgage underwriting standards are attenuating the housing recovery and are a risk factor for the overall economy.”

Yun maintains that there is actually pent-up demand in the housing market, but those who want and need homes can't obtain financing.  

Tuesday's release of Apple's latest update of its iPhone has been overshadowed by the death the following day of its legendary founder, Steve Jobs.

Jobs, whose declining health was no secret, forcing him to limit his role at the company he co-founded, died Wednesday after a long battle with pancreatic cancer.

It may not have been a coincidence that the first recent product launch without Jobs at the helm – Tuesday's rollout of the iPhone 4S - fell a bit flat. Wall Street was obviously disappointed, with Apple stock selling off sharply in Tuesday's trading.

Expecting more

After weeks of rumors and hype, it was clear the technology world was expecting more than what it got this week. The technology site Fudzilla called it “an underwhelming launch.”

On the plus side, the iPhone 4S offers a more robust A5 processor, which should provide improvements in both processing speed and graphics capabilities. It also has improved optics, with an 8 megapixel camera and full HD video recording.

For sex appeal, the iPhone 4S the Siri “personal assistant,” a voice recognition app allowing users to call up information from their devices in normal conversational English, French and German. But not Spanish.

Where's the iPhone 5?

But many people were obviously also expecting the “iPhone 5,” with even more advances. For example, a phone that would run on the 4G LTE networks that providers are rolling out nationwide. A number of Android phones, for example, are already on the market with 4G capability.

The technology world, accustomed to being rocked back on it's heels with every Apple product launch, seemed oddly subdued after Tuesday's festivities in Cupertino, Calif. Maybe it was because, for the first time, the master showman in the black turtleneck wasn't on the stage, making the introduction.

Comeback kid

Jobs is being hailed around the world as the innovator of his generation. After co-founding Apple Computer in the 1970s, he was forced out in 1985 by the man he hired as CEO, John Sculley. With Apple on the ropes financially in 1997, Jobs returned to introduce one successful product after another – the iMac, the iPod, the iPhone and the iPad.

At the time of Job's death, Apple – which recently dropped “computer” from its name – was worth $359.4 billion, making it the world's most valuable company. It will be up to Job's successors to keep it at that lofty perch.

Automatic renewal policies continue to draw consumer ire. Once you subscribe to something, and the company has your credit card on file, you should simply expect that the subscription will auto renew.

“While I understand that the terms and conditions do specify that one cannot receive a refund once one has paid, eHarmony.com's auto-renew system is completely dishonest,” Daniel, of Irving, Tex., told ConsumerAffairs.com. “They don't alert you that your subscription is going to expire, let alone that it's going to be automatically renewed. They only tell you after they have charged your credit card, and after you can no longer get a refund.”

To be fair, some subscription services do alert you that your subscription is about to auto renew, but most don't. It's easy to understand why, since the cancellation rate would be much higher if people had the opportunity to bail on a service they no longer wanted. Auto renewal policies might be the next area of commerce for consumer agencies, like the Federal Trade Commission, to examine.

Maybe not a software issue

Tina, of Huntington Beach, Calif., thinks there's something wrong with Microsoft Office.

“I purchased MS Office Professional 2010 Student edition, but did it not work,” Tina said. “I then purchased the regular Office Professional 2010 but it still does not work. It is bad enough that Office 2010 is extremely slow in opening. I have been hundreds of problems with this version, from freezing programs, not responding programs, and even losing my work, and not being able to retrieve it. Just now I was writing a lenghty email and was almost finished, and lost it because Outlook just shut down. I was online chatting with Microsoft and the chatting window cleared out and lost the chat, and had to sign in.”

Since two different versions of the software had the same problem, and it also exhibited itself in an online chat, it sound's like Tina's problem is not with Office, but with her computer's system or hardware.

Blast from the past

Robert, of Bowie, Md., got an unexpected and unpleasant call recently. A debt collector had purchased a 10-year old account from Providian Bank. Robert says he remembers it well. He applied for a card but when he received it and read the terms, he didn't activate it and cut it up.

“The amount I qualified for was $400.00 and they wanted over $250.00 in fees right off the bat,” Robert said. I said there is no way I agree to those terms. I cancelled everything and didn't activate anything,”

Unfortunately, that might not have been enough to wipe out Robert's “debt.” When it opened the account, Providian socked Robert with that $250 fee. Unless the bank specifically waived it – very unlikely – it kept it on its books. That's just one of the problems with low-limit, subprime credit cards.

Trouble in Apple Land?

Apple has a great reputation for quality and Apple people, for the most part, love their devices. But lately, Rachael, of Long Beach, Calif., is having second thoughts about her iMac.

“I purchased my iMac in May, 2010,” Rachael told ConsumerAffairs.com. “I have loved using iMac programs such as iphoto, itunes, and others. I have never had a problem with the software. However, I am ultimately terribly disappointed with my iMac after having several major hardware issues. In the last six to 12 months our CD drive was replaced because it no longer worked. Three weeks ago our hard drive and mother board were replaced. Fortunately, we purchased the extended warranty and did not have to pay for replacements, but it was no small hassle. Had we not purchased the extended warranty, we would be out a couple of thousand dollars, essentially purchasing a new computer. Customer service at the Cerritos store was mediocre. I was treated as if the replacement wasn't a big deal and told how fortunate I am. To top it off, the camera on my NEW iPhone is not functioning.”

Apple is also dealing with some grumbling in its fan base about the new iPhone 4S, introduced on Tuesday. Apparently, Apple fans were expecting a bit more of an upgrade – a phone that runs on the 4G LTE network, at least.

Ford is eliminating the slow-selling Escape Hybrid for the 2013 model year.  It's also doing away with the V-6 engine option and will be offering the crossover with three different four-cylinder engine packages.

The Escape's hybrid powertrain will move to the C-Max Hybrid, which launches next year.

The base engine will be a naturally-aspirated 2.5-liter four-cylinder package, with 1.6 and 2.0-liter direct-injection options available.  The 2.0-liter version comes with the turbocharged direct-injection EcoBoost package that's also available in the Edge and Explorer crossovers.

The 2.0-liter engine is offered in Ford's Edge and Explorer crossovers.

Automakers seem to be backing away from the "hybrid" label, which has acquired a reputation for high cost and low performance, substituting other labels and alternative fuel-saving methods.

The 1.6-liter engine in the Escape, for example, is called the EcoBoost and it's expected to deliver better highway fuel economy than the Escape Hybrid, rated at 31 miles per gallon.

The 2.0-liter four-cylinder engine ix expected to at least match if not outperform the V-6 engines now offered in the Escape. 

Ford will be building the new Escape at its Louisville, Ky., plant instead of the Kansas City, Mo., plant where it's now assembled. 

The city and state of New York have joined legal forces to file suit against the Bank of New York Mellon (BNY Mellon), charging it defrauded clients in foreign currency exchange transactions.

The action seeks to recover the profits BNY Mellon illegally earned by deceiving customers. The victims, according to the complaint, include both public and private pension funds, including those of the New York City Employee Retirement System (NYCERS) and the State University of New York.

The New York Attorney General's Office maintains that over a 10-year period, BNY Mellon consistently misrepresented to customers the rates it would give foreign currency transactions. Instead of providing the best interbank rates– as it promised – BNY Mellon gave the worst or nearly the worst rates of the trading day. The bank reportedly made nearly $2 billion from these trades, accounting for over 65 percent of its foreign exchange revenues.

Both private and government pension funds were victims

“This landmark case uncovered a fraud committed against both government and private pension funds, Executive Deputy Attorney General Karla G. Sanchez said. “This office will continue to commit its full resources to hold those responsible accountable, seek restitution for the victims, ensure that our markets are fair and transparent, and uphold one set of rules for all market participants.”

New York City pension funds were among the most impacted of BNY Mellon’s clients and lost tens of millions of dollars as a result of its allegedly fraudulent rates. In addition to NYCERS, those funds include the Teachers Retirement System of the City of New York, the New York City Police Pension Fund, Subchapter 2, and the New York City Fire Department Pension Fund, Subchapter 2.

City and state teamed up

The Attorney General’s Office worked with the New York City Corporation Counsel and the Office of the New York City Comptroller in preparing and filing the suit.

“As we've demonstrated many times, we will use litigation to ensure that our pension funds are not shortchanged, now or in the future,” New York City Assistant Corporation Counsel John Low-Beer said. “We have therefore brought this suit to recover the damages we are entitled to under the law.”

The lawsuit follows a lengthy investigation during which the Attorney General’s Office said it uncovered extensive evidence and sworn testimony that revealed BNY Mellon’s elaborate scheme to lure customers with promises it did not intend to keep.  

The first fall chill usually prompts homeowners with fireplaces to light a fire. It's sometimes followed by a knock at the door from a helpful chimney repairman, offering a safety inspection.

Safety inspections are all well and good, but they can sometimes be the prelude to a chimney repair scam. New Jersey Attorney General Paula Dow recently sued a chimney cleaning and repair company accused of using high-pressure, deceptive tactics to mislead consumers – including several who were elderly or had disabilities – into paying thousands of dollars for repair services they did not need.

Far from enhancing safety, a scammer who isn't properly trained might make your chimney unsafe. By performing shoddy work, for example, the untrained repairman could create the danger of carbon monoxide leaks into the house.

The dangers from a chimney are real. After years of heavy use, a fireplace may build up a thick coat of creosote, a flammable tar-like substance, lining the chimney. Sparks from a fire that float up the chimney can ignite the creosote, causing extensive damage and even completely destroying your home.

However, it takes years for dangerous levels of creosote to form. If your chimney has been cleaned in the last year or two, it is unlikely to be in need of it now.

If you have just moved into a home and are uncertain in the chimney has ever been cleaned, it's a good idea to have it cleaned and inspected before using the fireplace.

Damaged and missing bricks

Besides creosote buildup, masonry fireplaces – especially older ones – may be damaged by missing mortar or even bricks. A scammer may claim that he noticed from the street that you have such damage and offer to fix it. It's always a good idea to seek a second opinion.

“Consumers must do their homework before hiring a contractor, and they must be extra vigilant before inviting someone to work on their chimney,” Thomas R. Calcagni, New Jersey's Director of the Division of Consumer Affairs, said. “The average consumer is unable to discern whether chimney repair work is truly necessary, or whether it's completed properly. Improper work can result in dangerous, even deadly, carbon monoxide leaks and fires.”

Before hiring a contractor, consumers should call their local building codes office to learn whether the business is properly registered, and whether it has been the subject of previous consumer complaints.