Current Events in November 2011

The proposed merger of AT&T and T-Mobile is shaking up some traditional alliances.  Some consumer groups, most notably the Consumer Federation of America, have supported the merger while others denounce it as anti-competitive.

Just yesterday, Attorney General Eric Holder told a Senate committee the Justice Department was "ready and eager" to fight the merger in court.

But now an analysis by the Communications Workers of America (CWA) concludes that the AT&T/T-Mobile merger will bring back 5,000 net quality jobs from overseas and create as many as 96,000 additional quality jobs in the buildout of high speed wireless broadband to 97 percent of the population.

The report will be filed today with the Federal Communications Commission, the CWA said.

Opponents of the merger have used inaccurate and false comparisons in their jobs numbers, the report alleges. Opponents include Sprint, which made a failed bid to buy T-Mobile, Public Knowledge, and others.

The claim that the merger will eliminate jobs stems from a faulty and convoluted analysis of wireline and wireless employment characterized by “sloppy research and the inability to distinguish between the change in the number of wireline and wireless jobs” in a Sprint-commissioned study, CWA said.

Instead, the CWA report said, the merger will create up to 96,000 new jobs based on AT&T’s commitment to build out high speed wireless broadband to 97 percent of the population, and AT&T’s commitment to bring back a net 5,000 quality wireless jobs to the United States.

Major commitments

CWA said AT&T also has made additional specific commitments to protect non-management workers:

• No call center worker employed at either AT&T Mobility or T-Mobile at the time of the merger will lose their jobs because of the merger.
• Job offer guarantees will be provided for all T-Mobile non-management workers whose jobs are affected by the merger.

CWA has a long history of negotiating and enforcing such commitments with AT&T, including following the company’s acquisition of Centennial and Dobson, and with the Cingular-AT&T Wireless merger.

“The process used a combination of attrition and lateral transfers to nearby locations to secure jobs for current employees,” the report noted, adding that CWA has experience negotiating and enforcing such commitments with AT&T and that they have proven to be effective.

“The AT&T/T-Mobile merger will create, save or retain more U.S. jobs than a stand-alone T-Mobile which is already on a downward spiral…A Sprint/T-Mobile merger would have been a disaster in terms of technology and finances, and would led to a decline in U.S. jobs,” since Sprint outsources its network management and up to 70 percent of customer contact work, the report found.

Other benefits to the AT&T/T-Mobile merger cited by CWA:

• It will accelerate the buildout of high-speed wireless broadband to 97 percent of the population, enabling an additional 55 million people, especially in rural and underserved areas, to share in the benefits of Internet technology.
• AT&T will develop T-Mobile’s assets and offer T-Mobile customers the latest in technology.
• AT&T and T-Mobile utilize compatible technologies.
• AT&T has a demonstrated commitment to workers’ rights, supporting management neutrality that enables workers to make a free and fair choice about union representation and bargaining rights.

Most of the time we hear the health reasons why you shouldn't smoke, or if do do, why you should quit. Heart disease, lung cancer, emphysema – the list goes on.

But Dr. Carlos Reynes of Loyola University Health System’s Gottlieb Memorial Hospital, says there's also a very strong economic incentive not to smoke cigarettes.

“At $7 to $9 each, a pack-a-day habit sets you back between $2,500 and $3,300 each year, “ Reynes said. “And improved health also will save you trips to the doctor.”

Sometimes, smokers who are trying to save money turn to illegal cigarette sites on the Internet. Demetrios, a ConsumerAffairs.com reader who has looked into these products after purchasing some, says the products are even more dangerous than regular cigarettes.

Cheap cigarettes may be more dangerous

These companies advertises as a 'duty free shop' offering authentic international cigarette brands at bottom dollar prices,” Demetrios said. “The cigarettes you will receive will be illegal counterfeits smuggled out of China. These fake cigarettes are illegal and extremely dangerous to your health. Scientists who have analyzed Chinese cigarette knockoffs have found elevated levels of toxic heavy metals like arsenic, cadmium and lead, as well as human feces, sawdust, mold, insect eggs and rat droppings.”

Reynes is board-certified in internal medicine and also integrative medicine. For those who want to quit, he says there are a number of aids that have proven effective.

“Hypnosis and acupuncture as well as nicotene patches and chewing gums are just a few of the successful tools out there to help smokers kick the habit,” he said. “The important step is to make the effort to quit and if you are unsuccessful, to keep trying different techniques.”

Reynes says the United States is winning the war against smoking. More than three million Americans quit smoking every year and fewer are adopting the unhealthy and expensive habit. That's producing, he says, a declining smoking rate in the U.S.

“From 1965 to 2006, smoking rates fell by half, falling from 42 percent to 20.8 percent of adults and we will continue to do even better through education and incentives,” he said.

Great American Smoke Out

The Great American Smoke Out, a day sponsored by the American Cancer Society to end smoking, is Thursday, Nov. 17 and thousands of smokers are expected to take a 24-hour break from cigarettes.

While saving money is nice, Reynes says the best reason to give up smoking is to save your health. Kicking the habit, he says, pays off almost immediately.

“Twenty minutes after quitting, your heart rate and blood pressure drop. Twelve hours after quitting the carbon monoxide level in your blood drops to normal,” Reynes said Dr. Reynes. “One year after quitting the excess risk of coronary heart disease is half that of a continuing smoker’s.

An estimated 46 million adults in the United States currently smoke, and approximately half will die prematurely from smoking, according to the American Cancer Society.

A tankful of gasoline to get you to grandma's house for Thanksgiving is likely going to cost more. Gas prices appear poised to jump again.

Motorists have gotten a break at the pump over the last few weeks as economic uncertainly pushed crude oil prices below $80 a barrel at one point. But despite those worries – and new concerns about Italy's solvency - oil prices have come roaring back.

Crude oil was trading around $97 a barrel at midday today on the New York Mercantile Exchange. Gasoline prices have begun rising this week.

The national average price of self-serve regular today is $3.430 a gallon, up two cents from Tuesday, according to the AAA Fuel Gauge Survey. If history is any guide, it will move higher over the next couple of weeks, assuming oil prices continue to hold their lofty positions.

Supplies are down

While the price of crude oil is rising, U.S. supplies of petroleum are being drawn down. The U.S. Energy Information Administration (EIA) reported today that U.S. crude oil stockpiles fell by 1.4 million barrels in the last week. That's more than seven percent low U.S. supply levels a year ago.

With falling supplies, refiners may be forced to purchase more of the increasingly expensive oil in the weeks ahead, passing the increase along in the form of higher prices.

Not surprisingly, consumers are doing their best to cut back on gasoline purchases. The EIA reports U.S. demand for gasoline was down 5.6 percent compared to a year ago. Despite that, U.S. gasoline stockpiles fell by 2.1 millions barrels.

If gasoline prices seem low at the moment, consider that one year ago motorists were paying what now seems like the bargain price of $2.85 per gallon. Prices peaked in early May at just under $4 a gallon.

Toyota says it is recalling 420,000 vehicles solid in the U.S. because of potential problems in the steering.

The carmaker said the recall includes certain models of the 2004 Avalon; the 2004 and 2005 Camry, Highlander, Sienna, and Solar and the 2006 Highlander HV. Some Lexus models - the 2004 and 2005 ES330 and RX330 and the 2006 RX400h – are also included in the recall.

Toyota says the issue involves the misalignment of the outer and inner rings of the crankshaft pully. If not corrected, the driver could lose the use of power steering.

Toyota has ordered recalls in the past to deal with steering problems. In 2006 the company recalled 2003 to 2005 Prius models to repair a flaw that could cause drivers to lose control of steering. Then last year Toyota recalled approximately 373,000 2000-2004 Model Year Toyota Avalons sold in the United States because the vehicle's steering lock bar could break under certain conditions.

Despite the recalls, at least one Prius driver is still having problems.

“We own a 2005 Toyota Prius,” Ray, of Denver, Colo., told ConsumerAffairs.com in September. “Recently, the steering made a grinding sound and then broke completely, leaving the car utterly uncontrollable. Luckily, no one was hurt in the failure, this time. We checked and found that Toyota had issued a recall for this exact failure, but they claim they had already repaired this car in 2006. Obviously not.”

Ray reports the repair bill topped $2,300, as the air bag sensors were damaged when the steering sheared off in his wife's hands.

Toyota will not be sending out formal notifications in this latest recall until January, but the company said owners should make earlier appointments if the hear abnormal noises coming from their vehicles' steering columns.

The first nationwide test of the Emergency Alert System (EAS) will occur today (Wednesday) on all broadcast media, including television and radio. The thirty-second message will appear to be real, but it is only a test of the EAS system.

The test will use a live national alert code to deliver a message that will alert viewers as if an actual emergency announcement is coming.  It will also include an audible notice that "this is a test."

The EAS system test is being conducted by the Federal Communications Commission (FCC) and the Federal Emergency Management Agency (FEMA) to check the reliability of the EAS system, including equipment, operators and participants. 

For people with vision and hearing disabilities, the test will include an audio message announcing that the exercise is a “Test Only,” but there may or may not be a corresponding visual message alerting viewers that this is only a test of the EAS system.

If you have a family member or know of an individual or neighbor that has a visual or hearing disability, please let them know this is only a test.

Toyota is recalling 550,000 vehicles worldwide after discovering a potential flaw that may suddenly affect steering.

The company said 283,200 Toyota and 137,000 Lexus vehicles are being recalled to replace the crankshaft pulley on the V6 engine.

There is a possibility that the outer ring of the crankshaft pulley may become misaligned with the inner ring, causing noise and/or illumination of the discharge warning light. If this condition is not corrected, the belt for the power steering pump may become detached from the pulley and the driver may notice a sudden increase in steering effort.

There have been no reports of accidents or injuries.

The vehicles involved are certain:

• 2004 Avalon
• 2004 and 2005 Camry, Highlander, Sienna, and Solara
• 2006 Highlander HV
• 2004 and 2005 ES330 and RX330
• And 2006 RX400h

No other Toyota or Lexus vehicles or these Toyota models with 4-cylinder engines are involved. 

Toyota is currently working on obtaining the necessary replacement parts. Once the replacement parts have been produced in sufficient quantities, Toyota will send an owner notification by first class mail advising owners to make an appointment with an authorized Toyota or Lexus dealer to have the crankshaft pulley inspected and if necessary, replaced at no charge. The owner notifications will be mailed by first class mail beginning in January, 2012. 

In the meantime, if an abnormal noise is heard coming from the engine compartment, the owner is asked to make an appointment with any Toyota or Lexus dealer to have the vehicle inspected for this condition. 

Detailed information and answers to questions are available to customers at www.toyota.com/recall and the Toyota Customer Experience Center (1 800-331-4331) or www.lexus.com/recall and Lexus Customer Satisfaction (1 800-255-3987). 

About 80 percent of the vehicles are in the U.S., Amiko Tomita, a spokeswoman for the automaker said today.

Toyota recalled the vehicles to replace the crankshaft pulley on the V6 engine, Tomita said. No accidents have been reported, she said.

"If this condition is not corrected, the belt for the power steering pump may become detached from the pulley and the driver may notice a sudden increase in steering effort," Toyota said in a statement.

The vehicles being recalled are the 2004 Avalon, the 2004 and 2005 Camry and 2006 Highlander HV. Within the Lexus brand, the 2004 and 2005 ES330, the RX330 and the 2006 RX400h are being recalled, according to the statement.

Toyota recalled millions of U.S. vehicles last year and in 2009, mostly for defects related to unintended acceleration, and paid a record $48.8 million in fines because of the way some of the recalls were conducted.

The recalls caused the company to briefly halt sales of some models in 2010 and contributed to its 0.4 percent U.S. sales decrease last year, the only such decline among large automakers.

The carmaker recalled 1.7 million Toyota and Lexus vehicles in January for defects in fuel pipes and pumps, pressure sensors and spare tire carriers. It called back 2.17 million in February for carpet and floor-mat flaws that could jam gas pedals.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20111109/COPY01/311099837/1292#ixzz1dDa0lCt3

The operator of www.skidekids.com, a website that advertises itself as the “Facebook and Myspace for Kids,” has agreed to settle Federal Trade Commission charges that he collected personal information from approximately 5,600 children without obtaining prior parental consent, in violation of the Commission’s Children’s Online Privacy Protection Act (“COPPA”) Rule.

The FTC’s complaint also charges the operator, Jones O. Godwin, with making deceptive claims in Skid-e-kids’ privacy policy about the site’s information collection practices. The proposed settlement will bar future violations of COPPA and misrepresentations about the collection, use and disclosure of children’s information.

COPPA Rule

The FTC’s COPPA Rule requires that website operators notify parents and obtain their consent before they collect, use or disclose personal information from children under 13. The Rule also requires that website operators post a privacy policy that is clear, understandable and complete. 

According to the FTC, Skid-e-kids is a social networking site targeted at children ages 7-14 that allows them to register, create and update profile information, create public posts, upload pictures and videos, and “friend” and send messages to other Skid-e-kids members. 

The FTC alleges that the Skid-e-kids’ online privacy policy claimed that the site “requires child users to provide a parent’s valid email address in order to register on the website. We use this information to send the parent a message that can be used to activate the Skid-e-kids account, to notify the parent about our privacy practices, to send the parent communications either about the parent’s and child’s Skid-e-kids accounts or about features of our Web site . . .” 

But the complaint alleges that the defendant registered children on the website without collecting a parent’s email address or obtaining permission for their children to participate.

Children who registered were able to provide personal information, including their date of birth, email address, first and last name, and city. In addition to violating the COPPA Rule by collecting kids’ personal information without parental permission, the FTC alleged that the Skid-e-kids’ false privacy policy claims violated the FTC Act.

In addition to barring future violations of COPPA and misrepresentations about the collection and use of children’s information, the settlement order also requires Godwin to destroy information he collected from children in violation of the Rule, and, for a period of time, link to online educational material and retain an online privacy professional or join a Commission-approved safe harbor program to oversee any COPPA-covered website he may run. 

Think the fix is in on the $39 billion AT&T/T-Mobile merger?  Think again. Attorney General Eric Holder says his antitrust litigators are "ready and eager" to fight the case in court.

The Justice Department filed suit to block the deal in August, claiming the proposed merger would be anticompetitive.  It would reduce the number of national cell phone companies from four to two and Holder says it would raise prices for consumers.

"The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James M. Cole said when the suit was filed.  

“Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”

Lobbying campaign

AT&T has claimed the deal would help consumers, saying it would speed the deployment of high-speed Internet access nationwide by making more spectrum space available to AT&T.

The company has unleashed a ferocious lobbying campaign aimed at persuading Congress and the Obama Administration that the deal is a win for consumers.

It has also recruited non-profits and even consumer groups to weigh in on its behalf.  Critics say it has done so through the skillful application of funds rather than a compelling argument.

But the effort has so far had no visible impact on the government's stance. Holder appeared at a Senate hearing today and said his department is  ready for action.  

"There is a trial team that is in place and they are ready and eager to go to court,'' he said.

Consumers' view

Besides its lobbying efforts, AT&T has launched an advertising barrage aimed at winning the hearts and minds of consumers but so far with little notable effect.

“Ask the T-Mobile users. We all know what saved AT&T. Apple did! That's how come they can throw all that money around. Less competition is not the American way,” a consumer named Dave said in a recent ConsumerAffairs.com posting.

“This could raise cell phone rates for everyone, not just T-Mobile users,” another poster, Daniel, said. “Less compition means higher prices, its basic economics. Let's band together and stop this, everyone speak out.”

Another poster, Craig, chimed in with “AT&T + T-Mobile = better reception? Oh, that's a good one.”

Those highly graphic images the government hoped to use as warning labels on cigarette packages will not appear – at least not anytime soon.

U.S. District Judge Richard Leon has granted a stay for tobacco companies, who have sued to block the use of the labels, arguing they violate the companies' First Amendment rights. Leon granted the stay, saying he believes the tobacco companies will win in their suit against the U.S. Department of Health and Human Services (HHS).

Until that case is tried, Leon ruled the labels cannot be used.

HHS proposed the new warning labels almost exactly one year ago. They were designed to have more impact than the text warnings that have appeared on cigarette packages since the mid 1960s. The proposed new labels were to appear on the top half of the package and include graphic – some might same gruesome images – designed to deter smokers.

The nine new labels included pictures of a diseased lung, a corpse, diseased gums and a man smoking through a hole in his throat.

Public response to the images was mixed.  A ConsumerAffairs.com analysis of about 6,100 postings on Twitter, Facebook and other social media found opinion roughly evenly divided, although the number of comments was too small to draw any conclusions.

Health advocates protest

“The ruling ignores the overwhelming, decades-long need for strong cigarette warning labels and allows Big Tobacco to proceed ’business as usual,’ continuing to promote its addictive and deadly products," said Christopher W. Hansen, President, American Cancer Society Cancer Action Network.

“For decades, the tobacco industry has grown increasingly aggressive in preying upon America’s youth with misleading and fraudulent marketing practices, while the warning labels have not been changed in 25 years," Hansen added. "Larger, graphic warning labels have the potential to encourage adults to quit smoking cigarettes and deter children from starting in the first place."

"Judge Leon's ruling ignores the overwhelming scientific evidence about the need for the new cigarette warnings and their effectiveness. It also ignores decades of First Amendment precedent that support the right of the government to require strong warning labels to protect the public health," said Matthew L. Myers, President, Campaign for Tobacco-Free Kids.

Leading cause of death

In proposing the big change in warning labels, HHS pointed out that tobacco use is the leading cause of premature and preventable death in the United States -- responsible for 443,000 deaths each year. Thirty percent of all cancer deaths are due to tobacco. Each day 1,200 lives of current and former smokers are lost prematurely due to tobacco-related diseases.

The government strategy included a proposal issued by the Food and Drug Administration (FDA) titled "Required Warnings for Cigarette Packages and Advertisements."

Specifically, it detailed a requirement of the Family Smoking Prevention and Tobacco Control Act that nine new larger and more noticeable textual warning statements and color graphic images depicting the negative health consequences of smoking appear on cigarette packages and in cigarette advertisements.

The final rule was to have gone into effect in September 2012, requiring all cigarettes sold in the U.S. to carry the enhanced warning.

Five cigarette companies filed suit in Washington last year, seeking to block the warnings. The industry's lawyer argued that the government can require the tobacco companies to print a straightforward and “essentially uncontroversial” warning on the package, but said “turning cigarette packs into mini billboards for anti-smoking messages” crosses the line constitutionally.

There was more evidence today the housing market is far from being out of the woods. The national mortgage delinquency rate - the rate of borrowers 60 or more days past due - increased for the first time since the end of 2009, edging upward to 5.88 percent at the end of the third quarter, according to TransUnion.

The credit reporting agency issues a series of reports on credit-active consumers that track how they are managing mortgages, credit cards and auto loans.

"Until this quarter, we had seen six straight quarters where progressively more people were able to make their mortgage payments on time. We expected that trend to continue given recent, relatively more conservative lending policies and the apparent stabilization of both home values and unemployment," said Tim Martin, group vice president of U.S. Housing in TransUnion's financial services business unit.

"However, in the third quarter, the consumer was hit with several unanticipated shocks, including the U.S. credit rating downgrade, stock price declines, European debt concerns, stubbornly high unemployment, more downward pressure on home values and low consumer confidence. All of this affects a borrower's net worth and desire, or ability, to continue making house payments -- especially if they are facing negative equity in their homes due to price depreciation."

Loss of income

An anemic economy, however, may be a bigger reason. As homeowners continue to lose jobs, they tend to fall behind on the credit obligations.

“I lost my job 2 years ago,” Melissa, of Statesboro, Ga., told ConsumerAffairs.com. “Immediately after filing unemployment we contacted Bank of America to let them know and to see if there was any type of assistance. After several months of getting the run around, we were told that we did indeed qualify for loan modification and that the papers were in the mail. We never recieved the paperwork and by the time I started working again part time, they said I was making too much money and could not get assistance. We were already seven months behind at that point, then it moved into foreclosure process.”

A loss of income also caused Rich, of Oklahoma City, Okla., to fall behind on his mortgage last month.

“I called Vanderbilt (Mortgage) today about my payment that will be behind a month and 15 days on the 31st of October,” Rich said at the end of last month. “They told me that I either make a payment by that date or they will cancel all extensions and the full amount will be due.”

National trend

These stories have been repeated nationwide. According to TransUnion, between between the second and third quarters of 2011, all but 10 states and the District of Columbia experienced increases in their mortgage delinquency rates.

The nation's cities have been particularly hard hit. Sixty-four percent of metropolitan areas saw increases in their mortgage delinquency rates in the third quarter.

TransUnion says it's a significant difference compared to the second quarter of 2011 when only 21 percent of metropolitan statistical areas (MSA) experienced a rise. In the first quarter of 2011, 32 percent of MSAs experienced an increase.

This could be bad news for the real estate industry, which has begged the mortgage industry to loosen it's ever-tightening lending standards a bit. Statistics showing borrowers having a difficult time repaying loans isn't likely to inspire banker confidence.

TransUnion, meanwhile, believes the increase in delinquency is not a long-term trend. After a quarter or two, the company said it expects the delinquency rate to drift lower again in 2012.

Telemarketers who peddled medical “insurance” that was actually a bogus medical discount plan have agreed to settle charges by the FTC and Attorney General of Tennessee that they violated federal and state laws.

The settlement bars the defendants from engaging in any health care or discount program business; misrepresenting elements of any business they engage in; collecting payment from any of their previous “customers”; and, violating the Telemarketing Sales Rule, including calling consumers on the Do Not Call Registry. It also imposes a judgment of $15.7 million, which is partially suspended.

In August 2010, the FTC and the Tennessee Attorney General charged that United States Benefits, LLC, and its principals deceptively claimed they were offering comprehensive health insurance coverage - even to those with pre-existing conditions - for a one-time enrollment fee and recurring monthly fees of up to $1,300.

They also claimed they were selling coverage from major insurance carriers and that the monthly “premiums” provided broad medical coverage, including prescription drug, dental and vision care. Consumers provided credit card or bank account information to sign up.

Benefits association

According to the FTC, instead of medical insurance, what the defendants provided was membership in a benefits association that purportedly offered access to various health care and non-health care-related discounts, but consumers were unable to realize any significant savings or medical discounts.

Unlike health insurance, the memberships did not pay for a significant share of consumers’ health care expenses. Consumers who tried to cancel their memberships were often ignored.

The FTC also alleged that the defendants called consumers on the Do-Not-Call Registry and used illegal robocalls.

The settlement order bans the defendants from selling or promoting any health care-related benefits or discount programs or assisting others who do so. It bars them from misrepresenting the benefits, costs, performance, restrictions or cancellation policy of any good or service that they provide, and from misrepresenting that they are affiliated with, endorsed or approved by or affiliated with the federal government or a state government.

They also are prohibited from collecting money from their former customers and violating the Telemarketing Sales Rule. Finally, the order imposes a judgment of $15,738,941, which will be suspended upon their surrender of various assets worth approximately $1 million, including all corporate assets, a parcel of land, bank accounts, seat licenses for Tennessee Titans season tickets, a Harley Davidson motorcycle, and a wine collection. The defendants also must surrender a Hummer H2 and Lexus back to their lenders.

Who says the boomers are a wild and crazy bunch?  Time was when our elders tsk-tsked at the baby boomers and their carryings-on, wondering if they would ever straighten up, tie the knot and settle down.

Well, they're done both ... numerous times.  A new study finds that boomers are setting new records for divorce.  The rate of divorce among the over-50 crowd has doubled in the past 20 years,  according to the National Center for Family and Marriage Research at Bowling Green State University.

It's not just that more boomers are getting divorced. Rather, boomers are getting divorced over and over again.  Many are now on their third or fourth marriage and already thinking about moving on to the next one, the divorce information site Splitstown reports.  

The Bowling Green researchers say more than 300,000 couples over 50 divorced in 2008, and at the current rate that number is likely to jump to more than 400,000 in 2030.

There are all kinds of theories -- short attention span, too much TV in childhood, empty-nest syndrome -- but whatever the reason behind all this marrying and unmarrying, it's a financial disaster in the making for the couples and, for that matter, the national economy.

At a time when Congress and everyone else is trying to figure out how to lower the country's deficits, boomers are furiously divorcing each other, in most cases further depleting their already threadbare retirement accounts.

Just the act of divorcing is expensive.  You have to hire a lawyer, sell the house, split up the personal belongings and divide the savings and investments.  

With many middle-income families having virtually no net worth, a divorce or two can easily put boomers underwater financially, leaving them with no cushion for the 20 to 30 years they can expect to spend in retirement.

As Splitstown put it: Couples used to say they stayed together “for the children.”  Now, they might be well-advised to stay together “for the retirement portfolio” but that doesn’t have the same ring, apparently.  There are worse things than being in a somewhat dull marriage, however.  Being penniless, old and alone is one of them.

How much do you pay on your credit card bill each month? The entire balance, the minimum payment, or something in between?

Your payment probably has a lot to do with your financial circumstances and your money management philosophy, but a new study suggests there is another factor at work.

International researchers say they found credit card customers will pay less if the bill lists information about the minimum amount due. According to Boston College Professor of Marketing Kay Lemon and Assistant Professor Linda Salisbury, it can reduce the amount they pay each month by as much as 24 percent – about $120 less on a $2,000 balance.

Too much information

“The mere presence of minimum payment information acts like an anchor on borrowers’ repayments, pulling them downward,” said Salisbury. “This presents a tricky balancing act for lenders; removing the minimum required payment may increase repayments overall, but it would also put lenders at greater risk of increasing default levels.”

The findings are based on surveys of more than 500 U.S. consumers and an analysis of anonymous data for more than 100,000 British cardholders from 11 different lenders.

Average household credit card debt is around $10,000. Those who have a high interest rate and make only the minimum payment each month might never pay down the balance.

Counterproductive?

The U.S. government now requires lenders to include a range of debt and repayment information with monthly statements. The researchers wondered if providing that information actually motivates consumers to pay down their debt.

The study found that increasing the minimum required payment – typically from two percent to five percent of the loan balance – actually had a positive effect on repayment for most consumers. However, that alone wasn’t enough to overcome the negative effects of posting the minimum required payment, according to the researchers from Boston College and the University of Warwick, University of Essex and University College London, all in the United Kingdom.

In addition, displaying information like payment scenario timelines and potential long-term interest costs – as is now required on US credit card statements – did not encourage increased payments. In fact, disclosing future interest costs significantly increased the likelihood a cardholder would pay only the minimum required.

It may be that some borrowers pay the minimum each month because that's all they can afford to pay. Before the CARD act went into effect, some credit card companies jacked up interest rates on existing balances, causing minimum payments to rise and in some cases, balances to grow.

Tires are increasingly expensive, so it is important to get as many miles out of them as possible. Joseph, of Lincoln, Neb., is disappointed with his Firestones.

“I got 13,332 miles on a 50,000-mile tire, the Destination A/T, 285/70/17, and not only is there unusually heavy tire wear for such low mileage, but driving on the highway yesterday I experienced a catastrophic failure of the right rear tire,” Joseph told ConsumerAffairs.com.

While there could indeed be a problem with the tires, other factors can influence tire wear, including alignment and issues with the wheel. Joseph should take his car and tires to a repair shop – not the place where he bought the tires – and get an independent assessment.

Not in Kansas anymore

Recently adopted airline rules regulate how long U.S. domestic airlines can keep passenger on the tarmac before facing fines. But that's only for their lights within U.S. borders.

“After five hours on the tarmac, our flight out of Quito, Ecuador was cancelled,” said Lisa, of Chapel Hill, N.C., and a passenger aboard an American Airlines flight. “We were then faced with a 2 1/2 hour wait in line to rebook our flight and get a lunch and dinner voucher as well as a hotel voucher. During this time, we were give approximately three ounces of water and a granola bar. It just gets more interesting in that we got in a taxi which was in front of the airport in order to take us to the hotel. As I was standing in line to check in the hotel, the taxi driver took off with all of my belongings.”

To their credit, American did provide Lisa a $200 travel voucher for her trouble.

Strapped

Adrienne, of Philadelphia, Pa., has learned the hard way about payday loans. She said she took out a loan from Fast Cash, then lost her job and told the company she couldn't pay.

I then received several phone calls to my ex-employer, home and cell number with nothing but threats and ignorance,” Adrienne told ConsumerAffairs.com. “It got to the point they were calling my ex-employee and telling co workers my personal business in reference to the loans, leaving messages and threats with my children and then leaving me harrassing, disrespectful and unneccessary messages.”

Two issues. First, just because Adrienne lost her income doesn't remove her debt obligation. Regardless of what you think about payday lenders, an agreement entered into with full knowledge of the terms and conditions is a legitimate debt. However, if Adrienne is correct about the nature of the collections calls, the company could be in violation of the Fair Debt Collection Practices Act, which forbids harassing phone calls to employers and co-workers. She should contact someone in Pennsylvania Attorney General Linda Kelly. 

Just the facts, please

When buying a used car, you want as much information about the vehicle as possible. But it's wise to remember that there's no guarantee the information will be accurate.

“I purchased a car October 15 based on the information Carfax provided me, claiming this car had no reported accidents," said David, of Richardson, Tex. “Took the car to a dealership to possibly trade up toward another vehicle and now the Carfax shows 'frame damage' and one accident from 2009! I'm beyond upset.”

Understandably so. Whenever possible, you should take the car to an independent mechanic you trust before purchasing it. That's better than any report. A car salesman once told us that sometimes new cars are damaged when they are unloaded from trucks at the dealership. That damage, of course, never makes it into an accident report.

Also, Carfax reports are based on public records.  These days, with states and localities strapped for cash, those records aren't always up to date. Buyer beware!

The Transportation Security Administration (TSA) today announced eight airports which are set to receive recently purchased millimeter wave Advanced Imaging Technology (AIT) units.

The machines will be deployed with new automated target recognition (ATR) software designed to enhance privacy by eliminating passenger-specific images while improving throughput capabilities and streamlining the checkpoint screening process.

“This technology, combined with our many layers of security, gives our officers the best ability to detect and deter non-metallic threats,” said TSA Assistant Administrator for Security Technology Robin Kane. “In addition to improving security, advanced imaging technology continues to strengthen passenger privacy through the elimination of passenger-specific images.”

TSA plans to deploy units to the following airports in the coming weeks:

TSA will make additional airport announcements as plans are finalized. Many factors are taken into consideration before AIT units are deployed including airport readiness and checkpoint infrastructure.

Air fresheners and scented candles are popular in many homes, especially especially around the holidays, to mask normal household odors. But allergists say these products can be linked to a growing number of respiratory problems.

“This is a much bigger problem than people realize,” said Stanley Fineman, MD, American College of Allergy, Asthma and Immunology (ACAAI) president-elect. “About 20 percent of the population and 34 percent of people with asthma report health problems from air fresheners. We know air freshener fragrances can trigger allergy symptoms, aggravate existing allergies and worsen asthma.”

The upside to these products is they make a house smell pleasant, often evoking fond memories of apple pie or cinnamon. But Fineman says many of these products contain volatile organic compounds (VOCs) and are merely “covering up” — not eliminating — odors in the home.

VOCs commonly found in air fresheners include: formaldehyde, petroleum distillates, limonene, esters and alcohols. Fineman says a study of plug-in deodorizers found more than 20 different VOCs with more than one third of those classified as toxic or hazardous.

Respiratory issues

Fineman says consumers should be particularly concerned if someone in the household has any kind of respiratory issues. He says studies show that even VOC exposure levels below currently accepted recommendations increase risk of asthma in children.

High concentrations of VOCs can trigger eye and respiratory tract irritation, headaches, dizziness, and even memory impairment.

Despite all this, the home fragrance industry is expected to see continued growth, reaching $8.3 billion in global sales by 2015. So, why the fondness for air fresheners?

“There has been a shift among home fragrance consumers that pleasant smelling homes are not just for the holidays,” Fineman said. “We also are seeing a trend by manufacturers to market these products as aromatherapy which implies health and mood-boosting benefits although there are no scientific studies to support these claims.”

2010 study

Fineman is not the first to warn about dangerous chemicals in air fresheners. A 2010 study led by the University of Washington discovered that 25 commonly used scented products (like laundry detergent and air freshener) emit an average of 17 chemicals each. Of the 133 different chemicals detected, nearly a quarter are classified as toxic or hazardous under at least one federal law.

Only one emitted compound was listed on a product label, and only two were publicly disclosed anywhere. Even so-called "green" products were not "safe." 

More than a third of the products emitted at least one chemical classified as a probable carcinogen by the U.S. Environmental Protection Agency, and for which the EPA sets no safe exposure level.

The best air freshener, he says, is fresh air. On days when the weather allows, he suggests opening a window, at least for a short time, to naturally air out the house.

Holiday shopping madness is getting even madder -- and many retail employees are pretty mad about it.

It all has to do with time creep, the definition of "Friday" and retailers' desperation to move as much merchandise as they can during the holiday season.

Best Buy is the latest to join the list of retailers planning to open at midnight Thanksgiving night (or Friday morning, depending on your preference).  Others include Target, Macy's and Kohl's.

The advantage for shoppers?  They don't have to get up early Friday. They can just stay up late and hit the stores in the wee hours. 

The disadvantage for the poor souls who work in the stores?  Well, it's obvious.  It puts a big crimp in your family holiday if, instead of sleeping off the traditional feast, you have to stay up and work all night, dealing with unruly and often tipsy crowds.

This is basically the grueling ordeal that's routinely faced by police officers, firefighters, medical personnel and industrial workers.  Oh, and newspeople too, not that anyone wastes any sympathy on them.

Best Buy CEO Brian Dunn admits the decision won't be popular with his employees.

"I feel terrible," Mr. Dunn, who was once a store manager, said, according to The Wall Street Journal.  "It will change some Thanksgiving plans for our employees. It certainly changes mine."

So who has not yet joined the party?  The biggest retailer of all, that's who.  WalMart has not yet tipped its hand about iots plans for Black Friday.  Many Walmart stores are already open 24/7 but Black Friday sales don't usually start until 5 a.m. on Black Friday.  Whether that holds true this year is still unknown.

Who cares?

More importantly, does any of this really matter?  With daily deals sites galore and giant retailer Amazon offering low prices, giant selections and fast delivery, who wants to stay up all night just to go shopping for the same stuff that's available 365 days a year.

It's not as though previously unknown magical products will magically appear at the stroke of midnight, after all.  It's the same stuff we see in ads and on stores shelves and Web sites all year 'round.

Nevertheless, it seems that -- like a little red-nosed reindeer -- Black Friday has wormed its way into consumers' hearts.  ConsumerAffairs.com conducted a computerized trend analysis of about 1.8 million consumer comments on Twitter, Facebook and other social media over the last year.

We found consumers strongly positive, although many were directing their comments towards online Black Friday sales.

The message for retail workers, then, must be something along the lines of, get used to it.   

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Rob Eshman couldn't wait to get his Nissan Leaf, the first mass-produced all-electric car.  He rushed out to put down a deposit as soon as Nissan began taking orders and waited eight months to take delivery.

He was so excited he wrote about his decision to buy a Leaf in the publication he edits, the Jewish Journal.  And how does Eshman feel about his Leaf today?

"It makes me feel like a jackass," he wrote in a recent column.  The car simply doesn't live up to its promises, Eshman said.

"According to every ad and brochure Nissan put out, the Leaf gets 100 miles per charge ... [but] after driving this car for five months, I can tell you I have yet to get 100 miles per charge. The last three times I measured, it was 55, 58 and 58," he said.

Range anxiety

"My life now revolves around a near-constant calculation of how far I can drive before I’ll have to walk. The Nissan Leaf, I can report, is perfect if you don’t have enough anxiety in your life," Eshman wrote.

Similar complaints are popping up around the Internet, with consumers reporting their cars go into "turtle" mode prematurely, meaning the car will creep along at slow speed before finally shutting down entirely.

Part of the problem is related to the meaning of "empty."  In gas-powered cars, the fuel gauge shows "empty" when the tank still contains a few gallons of fuel, creating a reserve capacity of 20 to 30 miles.  For an all-electric car to do the same thing, it would have to show "empty" when it had used up about 79% of its charge, according to Green Car Reports.

This would mean the car showed it was "empty" after between 60 and 80 miles of driving, assuming the Leaf in question was meeting the EPA estimated range of 73 miles.

Get a Volt

Which brings us back to Rob Eshman and his 100-mile-per-charge expectations.

Nissan likes to say that the Leaf will get up to 100 miles of driving on a full charge of its lithium-ion battery. But EPA testing has put the range at only 73 miles, still more than Eshman gets on his car.

Nissan's explanation is that the car is primarily intended for urban driving, basically creeping along crowded city and suburban streets. Driving at highway speed uses more juice, and aggressive driving uses more yet.

That explanation doesn't satisfy Eshman and he doesn't think it will satisfy many other consumers either.

His advice to consumers looking for an electric car?  "Buy a Volt," he tells them.  The Chevrolet Volt has a small gas engine that kicks in when needed. 

Some, but far from all, consumers have done just that.  GM sold 1,108 Volts in October, while Nissan moved only 849 Leafs.  It was the first time the Volt managed to overtake the Leaf, but it's a little too early to declare a trend and, in fact, sales of both models are well below manufacturers' estimates.

"Nissan must be feeling some backlash now, as well. Leafs — which the company had expected to sell out — are piling up on dealer lots like, well, fallen leaves," Eshman concludes ruefully. 

Best Buy is expanding its Best Buy Mobile venture, buying out its European partner and shelving plans to open more big-box stores outside the U.S.

Best Buy Mobile is built around an "impartial advice" concept, promoting its blue-shirted store personnel as experts who can help you find just the right cell phone and wireless plan.

It's been one of the few bright spots for Best Buy, which has outlasted Circuit City and other electonics retailers only to face a steady erosion of its core business to discounters and Amazon.

Best Buy may indeed be onto something.  ConsumerAffairs.com analyzed about 20,000 consumer comments posted on Twitter, Facebook and other social media over the last year and found net sentiment for Best Buy Mobile as high as 96% positive.

ConsumerAffairs.com readers have submitted 21 negative reviews in the same time period compared to more than 172 for AT&T Wireless, more than 300 for Verizon Wireless and more than 200 for Sprint.

$1.3 billion 

Best Buy will be paying  $1.3 billion to buy out Carphone Warehouse Group Plc, enabling it to keep all future revenue from the fast-growing mobile business.

The Best Buy Mobile business has grown from a standing start to include mobile stores in 1,100 Big Box stores and almost 250 standalone Best Buy Mobile outlets in the U.S.

That contrasts with a 30% drop in Best Buy's quarterly sales of consumer electronics.

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