Current Events in January 2012

Amtrak is rolling out an aggressive expansion plan in the Northeast Corridor, saying it will build the first of 70 new electric locomotives and 130 single-level long-distance cars this year.  The DC-based railway also says it will expand e-ticketing to all trains.

Despite perennial funding problems, Amtrak had a good year in 2011, transporting a record 30.2 million passengers and made onboard Wi-Fi available to 75 percent of passengers.

"Amtrak is building the equipment, infrastructure and organization needed to ensure our strong growth continues into the future,” said President and CEO Joe Boardman. “We are investing in projects critical for enhancing the passenger experience, essential for supporting our national network of services and vital for the future of America’s Railroad.”

The new locomotives will operate at speeds up to 125 miles per hour between Washington and Boston and up to 110 miles per hour from Philadelphia to Harrisburg, Pa.  

The new long-distance cars include sleepers, diners, baggage cars and baggage/dormitory cars. They will allow Amtrak to retire the oldest cars still in service that date back to the 1940s. 

Besides new trains and electronics, Amtrak's plans include expanding capacity for its popular high-speed Acela Express, upgrading tracks, bridges and tunnels along the Northeast Corridor and advancing work on the Gateway Program, which will expand capacity into Manhattan.

Bedraggled Sears Holdings, already planning to close 100 or more stores, has run into another hurdle -- CIT Group says it will no longer finance loans to Sears' suppliers who are awaiting payment from the company.

The loans, known as factoring, enable suppliers to finance their operations as they wait for payment from retailers.  Sears insists that CIT, the nation's largest factoring lender, provides only about five percent of the loans to its suppliers but the announcement is still likely to send chills through the Sears supply chain.

Sears has been struggling to overcome worries about its finances. All three major credit-rating firms have downgraded its debt in recent weeks, noting its declining earnings over the last year. Sears fell 5.8 percent to $31 at mid-morning Thursday as news of the CIT decision hit. The shares dropped 56 percent last year.

Sears Holdings has blamed poor holiday sales for the decision to close up to 120 underperforming stores, but analysts say the entire chain is underperforming, at least partly because it has failed to spend enough on freshening its stores so that they are attractive and inviting places to shop.

Inventory slipping?

If, on top on their already-dowdy appearance, Sears and Kmart stores begin to display empty shelves, sales could be further degraded. Judging from recent complaints to ConsumerAffairs.com, that may already be happening. 

"For the past 2 1/2-3 months I have been trying to order the Disney Botanical Baby Play Yard, only available at sears.com and Kmart.com," said Addie of Fort Riley, Kansas recently. "All four times I have ordered this item it has instantly gone 'out of stock.'" 

"For the last couple of years I have strictly shopped Kmart especially around the holidays but lately kmart has been falling behind on the availability of products," said Erica of Pearsall, Texas. "I have had to travel two hours to pick up my merchandise after completing the layaway plans."

"I ordered a combo toolbox for my husband on Dec. 4th with a delivery date of Dec. 23rd. When it didn't arrive, I called Sears and was told there was a backorder on the product," said Stacia of Jefferson, Ga. 

At least 12 people in five states have come down with a new strain of swine flu that isn't covered in this year's flu vaccine, the Centers for Disease Control and Prevention said.

The new strain is not the more common H1N1, that killed more than 17,000 people around the world over a two-year period. The new strain has been identified as H3N2v.

"In the second half of 2011, a number of U.S. residents were found to be infected with influenza A variant viruses, primarily H3N2v," the CDC said in a report. "Investigations revealed human infections with these viruses following contact with swine as well as limited human-to-human transmission."

Not known how widespread

While H3N2v viruses have been detected in U.S. swine, the CDC said it's unknown how widespread they are in swine herds. It's possible that sporadic infections and even localized outbreaks among people with this virus will continue to occur, according to the health agency.

So far, the CDC has counted only 12 cases. There are two in Indiana, three in Iowa, two in Maine, three in Pennsylvania and two in West Virginia.

"While there is no evidence that sustained human-to-human transmission is occurring, all influenza viruses have the capacity to change and it's possible that this virus may become widespread," the CDC warns.

Children appear more vulnerable

To date, the severity of illnesses associated with this virus in people has been similar to the severity of illnesses associated with seasonal flu virus infections. the limited studies that have been conducted so far suggest that adults may have some pre-existing immunity to this virus while children do not.

CDC said it is closely monitoring human infections with all novel influenza viruses, including H3N2v viruses, and will provide more information as it becomes available.

Swine influenza is a respiratory disease of pigs caused by type A influenza viruses that regularly cause outbreaks of influenza in pigs. Influenza viruses that commonly circulate in swine are called “swine influenza viruses” or “swine flu viruses.”

Swine flu viruses do not normally infect humans. However, sporadic human infections with swine influenza viruses have occurred.  

A number of consumers have recently complained about finding charges on their credit card bills for the MBNA Credit Protection Plan. Many, like Cyane, of San Francisco, Calif., have said they have no recollection of signing up for the service.

"I saw that a credit protection charge of around $58 - $65 had been applied to my bills," Cayne. "I don't remember seeing the charge so I called and asked for confirmation that I had ordered this service. The woman said I'd ordered it by phone. I asked for a record of the phone call, she said it was probably erased by now. I said I wanted to file a complaint. She said if I dropped the investigation, she'd credit my account two months. If I continued, with scant hope of winning my case, I would not be reimbursed. I just took the reimbursement for two months and am out $600, plus any interest I paid on that money."

Another reader, Steve of Ohio, was in the same situation but took another course.

"The same as other people who have complained, I had about $150 in charges accumulated over the past year," Steve told ConsumerAffairs.com. I finally noticed and contacted them.

Steve said he asked for the entire $150 back, saying he never signed up for the service. He says the customer service rep insisted that he had told a telemarketer he wanted the service. Steve says he stuck to his guns, demanding that MBNA Credit Protection provide a "proof of purchase."

"I was transferred to a supervisor who offered me a $30 credit to let it go," he said.

Holding out

Steve said he refused the offer and despite his repeated contacts didn't hear anything. He next filed a fraud report through his credit card company and not long afterward was reimbursed. The lesson for others in his situation?

"Stick to your word and demand proof, and they will either have to prove that you are wrong or else give you your money back," Steve said.

MBNA Credit Protection is a service that provides credit monitoring, as well as covering credit card payments in the event of certain adverse circumstances, such as loss of income. It's usually marketed in conjunction with another financial product or service.

Remember that the Federal Trade Commission requires that all such "negative option" sales clearly "clear and conspicuous" notice to the consumer that a sale is taking place. If you are unaware that you've bought something, chances are it doesn't meet that standard.

Getting an EZ Pass can make life simpler for commuters who use toll roads. Instead of coming up with the exact change, you simply zip through the toll booth. But just like anything else that relies on technology and removes people from the equation - DVD vending machines come to mind - mistakes can happen.

"Got my statement and they had been charging my husband $6.50 A day to cross the Delaware water gap," Elaine, of Andover, N.J., told ConsumerAffairs.com.

Presumably the toll to cross is significantly less. Elaine reports straightening it out hasn't been easy.

"This has been ongoing for months and they charged $6.50 every day my husband went across to work," she said. "Lots of my money tied up here.

We're also heard from EZ Pass users who say get hit with toll booth violations, even though they have plenty of money in their account. Makes you want to go back to carrying a coin purse.

Seems everyone's doing it now

When the phony payday loan collector scam first surfaced a couple of years ago, the scammer was described as having a thick, foreign accent. He would call someone and accuse them on not repaying a payday loan - usually citing a real company but not one the victim had done business with - and threatened them with jail unless they paid with a credit card immediately.

Harriett, of Morton, Pa., reports others seem to be doing the scam now. The names have changed but it's still a scam.

"I received a phone call from a Ben and Officer Clark stating I owe $8,000 and if I could not pay they would settle for $3,000," Harriett said. "I do not have a loan with US FAST CASH. They want me to send a fax with my credit card info and license and they will not take no for an answer. They have called my supervisor and has harassed me at work when I have told them not to call me. Just yesterday they called me 37 times on my cell number and 10 times at work and today at work five times. I am so stressed out about this and do not know what to do. They have threatened to pick me up and arrest me and send to prison."

Harriett does not have to worry about going to prison - these guys are trying to scam her. However, it's troubling that they know where she works. They may have other information on her as well. She should immediately contact all three credit reporting agencies and place a fraud alert on her credit accounts. Then, when "Officer Clark" next calls her she can let him know that she knows he's a scammer and has reported him to the real police.

Misplaced annoyance

Bruce, of Saratoga, Calif., is steamed at Amazon.com because an Amazon gift card he purchased at Best Buy doesn't work.

"I submitted a case with Amazon on this issue and ended up getting four different responses from four different people with different resolutions," Bruce said.

One of the Amazon reps told Bruce that, since he purchased the gift card at a store, he needed to return to the store to resolve the issue. Bruce didn't much like hearing that.

"You would think Amazon being a 'great' online company, it would be able to figure out why the gift card doesn't work and fix the problem."

How so? Amazon didn't activate the card, Best Buy did. Bruce's beef is with Best Buy, not Amazon.

Google's latest tinkering with its search results is causing concern among privacy advocates and online publishers while raising yet another set of antitrust concerns.

The search giant is now providing what it calls "personalized" search, basically meaning it not only searches for keywords that match your search query but also shuffles through comments and postings made by your friends on blogs and social media sites, most particularly Google+.

Aside from usability questions -- do you really care what your online "friends" are saying about trans fat's role in heart disease or do you want an expert opinion -- it raises concerns about whether comments made on Google+ will carry more weight than those made on other sites.

Trust and ...

Google is constantly making changes in its super-secret search algorithm, of course, and we're asked to trust that these changes are all being made to provide even better, more impartial and more timely search results to the end users.

Of course, there's no way to verify that since the process is so secret that it has spawned an entire industry of consultants and soothsayers who claim to know how search results can be slanted to benefit their clients.

Even if these modern versions of the phrenologists who claimed to measure mental acuity by analyzing head bumps are accurate, it raises a question that, as far as we know, Google has never answered: Should authors, reporters and publishers have to pay off probable charlatans in hopes of getting a few degrees of visibility for their efforts?  

There are those who will argue that Search Engine Optimization, as it is grandly known, amounts to little more than the protection rackets that used to plague small merchants and businesspeople back in the days when shakedown artists were real instead of virtual.

Big Brother

Some of this was OK when Google was still a fresh-faced start-up newly emerged from someone's garage in Palo Alto (or was it Mountain View?) but it causes a bit more concern now that Big G has grown into Big Brother.

"Google is an entrenched player trying to fight off its challenger Facebook by using its market dominance in a separate sector," Marc Rotenberg, executive director of the Electronic Privacy Information Center, told The Los Angeles Times. "I think that should trouble people."

It certainly troubles Rotenberg, who says regulators should take a close look at what goes into Google's new personalized search results to see if there are legitimate privacy and antitrust concerns. Rotenberg says he may file a complaint with the Federal Trade Commission, asking it to investigate the situation.

He's not alone.  Twitter is publicly complaining that the personalized search results will be less relevant for many users and may harm Google's rivals in the social media and search fields.

Twitter general counsel Alex Macgillivray, who formerly worked at Google, said in a tweet yesterday that Google's search results were being "warped" and Twitter later issued a formal statement saying the changes would be "bad for people, publishers, news organizations and Twitter users."

Twitter said many Google users are looking for the latest breaking news.

"Twitter has emerged as a vital source of this real-time information, with more than 100 million users sending 250 million Tweets every day on virtually every topic," but Twitter said such results would be much harder to find if they must compete with Google+ results and other social media blather.

Ick

Many online news sites and even some traditional news publications are also concerned about the growing influence on search results of Google+, fearing that Google's search results will increasingly be determined by what Google+ members happen to be reading and commenting on rather than by more neutral, objective results.

“Ick. Remember when Google used to be a neutral player that crawled the Whole Dern Web? So sad to see that era pass,” said John Battelle, founder and chairman of Federated Media Publishing. “It’s not Google’s fault, entirely, but it’s sad nonetheless.”

Venture capitalist MG Siegler, writing on his blog, summed it up in a one-world headline: “Antitrust+?”

“How on Earth is Google going to avoid antitrust inquiries with their new Search+ features announced today?,” he asked. “If Facebook, Twitter, etc., have any decent presence in DC, the ball began rolling a few hours ago. This is the type of case that Senators die for. Google wrapped it in a bow and placed it in one of their laps.”

Health experts agree that artificial trans fat is among the most harmful substances in food and we're constantly being told we should avoid it. But that's more easily said than done, as a recent survey by the Center for Science in the Public Interest (CSPI) demonstrates. 

Marie Callender’s pies, Pop Secret’s microwave popcorns, and Long John Silver’s Breaded Clam Strips are among the many products that still contain high levels of artificial trans fat, the nonprofit CSPI said.

After the Food and Drug Administration (FDA) required trans fat to be listed on food labels, most large manufacturers removed partially hydrogenated oil, the source of artificial trans fat, from their products. And after a series of lawsuits, bad press and new restrictions, most large restaurant chains similarly stopped using the discredited ingredient.

Thus, while many consumers might consider the problem solved, the sad fact is several large companies continue to market products containing unhealthy amounts of trans fat.

Examples:

• Marie Callender’s Lattice Apple Pie (ConAgra Foods) contains 5 grams of trans fat per serving.
• Varieties of Pop Secret microwave popcorn (Diamond Foods) contain 4 or 5 grams of trans fat per serving.
• An order of Long John Silver’s Breaded Clam Strips contains 7 grams of trans fat.
• While White Castle recently eliminated trans fat from most of its products, some regionally marketed pastries contain large amounts. White Castle’s doughnuts contain a whopping 8 or 9 grams of trans fat per serving.

Two grams

The American Heart Association recommends that people limit their trans fat intake to no more than two grams per day. Since small amounts of trans fat occur naturally in beef and dairy products, that leaves very little, if any, room for artificial trans fat from partially hydrogenated oil.

A sampling of foods containing three or more grams per serving includes:

• Pillsbury’s Buttermilk Biscuits (General Mills),
• Pepperidge Farm’s Luscious 3-Layer Lemon Flavor Cake (Campbell Soup Co.),
• Utz’s Cheese Flavored Puff’n Corn,
• Jimmy Dean’s Sausage, Egg & Cheese Croissant Sandwich (Sara Lee Corp.), and
• Celeste’s Original Pizza (Pinnacle Foods Group).

Mrs. Budd’s Original Recipe Chicken Pot Pie, a regional brand, has more partially hydrogenated oil than carrots or peas, but consumers would have no way of knowing how many of its 17 grams of fat per serving are from trans fat: The U.S. Department of Agriculture, which regulates food with meat or poultry, hasn’t adopted the FDA’s trans fat labeling rule. (The company told CSPI that the pot pie contains 5 grams of trans fat.)

Should be banned

In 2004, the Center for Science in the Public Interest filed a regulatory petition urging the FDA to ban the use of partially hydrogenated oil in food altogether.

“Considering the virtual unanimity among scientists that trans is the most harmful fat in the food supply, it is totally irresponsible for companies like Sara Lee, Pepperidge Farm, General Mills, and Long John Silver’s, along with many smaller ones, to continue marketing foods with artificial trans fat,” said CSPI executive director Michael F. Jacobson. “The FDA could readily ban the use of partially hydrogenated oil or set a strict limit on the amount of trans fat in a product. Unfortunately, the FDA has let CSPI’s petition collect dust.”

CSPI estimates that companies have eliminated well over half of the partially hydrogenated oil in the food supply. But the remaining trans fat continues to promote heart disease, likely causing thousands of unnecessary premature deaths annually. 

A highway safety group today released its annual report card grading states on their adoption of traffic safety laws -- or, to be more precise, on the states' adoption of traffic safety laws the advocacy group recommends. 

Advocates for Highway and Auto Safety gave the District of Columbia and 17 states the highest rating of "green." Besides D.C., the top-ranked states were New York, Illinois, New Jersey, Oregon, North Carolina, Georgia, Kansas, Maryland, Michigan, Washington, Delaware, Maine, Minnesota, Rhode Island, Tennessee, Louisiana, and California.

The states with the worst rating of red are South Dakota, Arizona, Mississippi, Virginia, Montana, Nebraska, Ohio, and Wyoming. All other states received a yellow rating indicating caution because there was a need for improvement because of gaps in traffic safety laws.

“If states want to save lives and save money, they should look to the 2012 Roadmap to State Highway Safety Laws for guidance," said Jacqueline Gillan, president of Advocates. “This report shows that too many states have unacceptable and deadly gaps in their traffic safety laws. Political leadership and action are needed now."

Among the 15 model laws Advocates evaluated are seat belt, booster seat and motorcycle helmet measures, in addition to restrictions and requirements for teen drivers, all-driver texting bans and tougher impaired driving laws.

The group did not present any statistics to support its contention that the laws it recommends actually prevent accidents or save lies.

The federal government estimates that motor vehicle crashes cost society $230 billion every year. In 2010, nearly 33,000 people died in crashes throughout the nation and over 2 million more were injured. This is equivalent to a “crash tax” of more than $750 for every person.

“The National Transportation Safety Board has made safety recommendations on every one of the 15 laws included in the Advocates’ report and some of those are also on the NTSB Most Wanted List this year,” said Mark R. Rosekind, Board Member, National Transportation Safety Board.

“Drunk driving costs the United States more than $132 billion annually,” said Jan Withers, president of Mothers Against Drunk Driving (MADD). “Effective laws like ignition interlock for all convicted drunk drivers will save lives and save money for states. With the technology at hand there is no excuse for states to delay enacting this lifesaving law.”

The group's grading system was based solely on whether or not a state had adopted a law as defined in the report, and not on any evaluation of a state's highway safety education or enforcement programs.

In 2011, two states improved their rating from Yellow to Green -- Maine and Rhode Island. Two states upgraded from Red to Yellow -- North Dakota and Pennsylvania.

In 2011, 13 states enacted one or more of Advocates’ recommended highway safety laws for a total of 16 new laws. No state enacted an all-rider motorcycle helmet law although there were 13 attempts to repeal existing laws.

Advocates for Highway and Auto Safety is a coalition of insurance, consumer, health, safety and law enforcement organizations that work together to advance state and federal highway and vehicle safety laws, programs and policies. The complete 2012 Roadmap to State Highway Safety Laws, speaker statements and the news conference webcast can be found at www.saferoads.org.

Sometime last year, as the stock market struggled and interest rates hovered just above zero, small investors discovered dividend-paying stocks. Many who got in early have pocketed gains that significantly outperformed the market as a whole.

A dividend is a premium a company pays to its shareholders, usually on a quarterly basis. It's a way to return profits to shareholders, but not all companies do it. Usually, it's well-established firms with steady, consistent growth and income.

For example, in the telecom sector, both Verizon and AT&T pay what are generally regarded as attractive dividends. AT&T, for example, currently pays $1.76 per share per year. Verizon pays $2.00 per share.

A dividend payment is called a stock's “yield,” and is a percentage of the money required to purchase the stock. Today, AT&T is trading at $29.83 per share. By dividing the dividend -- $1.76 – by the share price, $29.83, you arrive at the annual yield – 5.9%. That means if you purchased AT&T stock, the investment would earn at a rate of 5.9 percent, far more than any CD.

At the same time, the price of AT&T stock could rise after you purchase it, increasing the value of your investment. If the stock gained 2% in value in a year, it would make for a combined return of 7.9 percent.

Risk

So, why doesn't everyone rush out and buy AT&T stock, or Verizon, Coca-Cola, IBM, and all the other stocks that pay dividends? Because, as with most investments, there is an element of risk. Like any stock, the value could go down, not up.

Also, there is no guarantee that a company will not cut its dividend if it encounters hard times, or even eliminate it all together. That happened in 2010 after the Gulf oil spill. At the time, British Petroleum (BP) was a high-flying stock paying an astounding 8% yield.

After it became clear that BP faced huge liabilities from the spill, and would likely not be able to keeping paying its shareholders, the stock price plummeted. Indeed, weeks later BP was forced to eliminate its dividend. Investors who were not quick to sell not only lost the dividend, but saw the value of their original investment in BP stock decline.

Choose wisely

That's why investors who pursue a strategy of dividend stocks must choose their investments wisely and and follow their stocks closely, sensitive to any change in direction. How do you pick a good dividend stock?

First and foremost, the company behind the stock should be strong and stable. The question you must ask, can this company continue to keep making these payments to shareholders?

One way to answer this is to research the company and the sector in which it operates. Is it a stable, well-run firm in a business that has potential for growth?

The second clue is to look at the company's earnings per share, and compare that to the dividend it is paying.

The 50% rule

If the company is earning $1 per share but is paying a dividend of $2, chances are it will not be able to do that for long. Stock guru Jim Cramer has suggested a good rule of thumb is to select stocks for which the dividend is not more than 50% of the earnings per share.

That brings us to a third factor: don't be greedy. In your research you will find plenty of stocks paying 8% or more in yield. But many will be companies you have never heard of, in sectors you know little about.

Often times the yield is high because the price of the stock has recently dropped in dramatic fashion. Here's an example: suppose company A's stock is trading at $40 per share and is paying a dividend of $2 per share. That's a yield of 5%.

But then something bad happens, and the stock price plunges to $10 per share. For now, the company is still paying the $2 dividend, but now the yield – based on the new $10 stock price – has surged to 20%! But does anyone think that kind of payout is sustainable?

That's why careful research is required. Especially now, since many attractive dividend stocks have dramatically risen in price over the last few months because investors have purchased them for their stable yield. However, as the stock value rises, the yield goes down, unless the company moves to increase their dividend.

Still, for a long-term investor dividend stocks, chosen carefully, can provide a 3% or more income stream, if you choose wisely. Again, any equity investment carries risk, so you should do your research and consult with a knowledgeable financial professional before making any investment decisions.

Back during the housing bubble, Wachovia and Golden West Financial marketed “Pick-A-Payment” mortgages that turned out to be disasters for some homebuyers.

Now, Wells Fargo, which acquired the two companies, is settling charges brought by Maryland in connection with the marketing campaign. The bank has agreed to make loan modifications for certain consumers and provide nearly $1 billion in restitution to homeowners who eventually faced foreclosure.

"Especially in these difficult times, we focused this agreement on securing relief for vulnerable homeowners and those who have faced foreclosure," said Maryland Attorney General Douglas Gansler. "Wells Fargo is addressing these particularly troubling issues with mortgages issued by companies that Wells Fargo acquired."

According to the original complaint, Wachovia and Golden West offered borrowers a choice among several programs. Borrowers could choose a traditional, 30-year fixed rate, fully amortizing loan; a traditional, 15-year fixed rate, fully amortizing loan; a loan with payments of interest only; or a loan with payments that were less than the interest actually due.

Lack of information

According to the Gansler, Wachovia and Golden West did not fully explain to "Pick-a-Payment" borrowers who chose the fourth option that their minimum payments would not cover the full interest and that their principal debt would actually increase over time.

Under the terms of the agreement, Wells Fargo will consider loan modifications for homeowners who have "Pick-a-Payment" contracts, using the federal Home Affordable Modification Program. If the homeowner is not eligible for a HAMP modification, then Wells Fargo will use its own proprietary loan modification program.

The modifications may include principal forgiveness, loan extension, interest rate reduction and/or principal forbearance, depending upon the circumstances of the borrower.

Maryland officials will contact consumers who may be eligible for restitution funds under the settlement. In addition, the agreement will benefit homeowners who obtain loan modifications.

While federal agencies and prosecutors have taken little or no action in connection with the housing and financial crises, the states have consistently taken action on behalf of consumers. Prior to the Maryland settlement, 11 other states had reached similar agreements with Wells Fargo.

It's not just tax season, it's also tax scam season. While filing a federal return and waiting for a refund is at the top of everyone's mind these days, criminals are trying to figure out ways to trick taxpayers into turning over their cash or sensitive financial information.

The Internal Revenue Service (IRS) warns that taxpayers must carefully choose a tax preparer, ensuring that they are not only competent to prepare your return, but also trustworthy. The IRS has noted an increase in tax-return-related scams, frequently involving unsuspecting taxpayers who normally do not have a filing requirement in the first place.

South and Midwest have been targets

These taxpayers are led to believe they should file a return with the IRS for tax credits, refunds or rebates for which they are not really entitled. Many of these recent scams have been targeted in the South and Midwest.

Most paid tax return preparers provide honest and professional service, but there are some who engage in fraud and other illegal activities. Unscrupulous promoters deceive people into paying for advice on how to file false claims. Some promoters may charge unreasonable amounts for preparing legitimate returns that could have been prepared for free by the IRS or IRS sponsored Volunteer Income Tax Assistance partners. In other situations, identity theft is involved.

According to the IRS, taxpayers should be wary of any of the following:

• Fictitious claims for refunds or rebates based on excess or withheld Social Security benefits.
• Claims that Treasury Form 1080 can be used to transfer funds from the Social Security Administration to the IRS enabling a payout from the IRS.
• Unfamiliar for-profit tax services teaming up with local churches.
• Home-made flyers and brochures implying credits or refunds are available without proof of eligibility.
• Offers of free money with no documentation required.
• Promises of refunds for “Low Income – No Documents Tax Returns.”
• Claims for the expired Economic Recovery Credit Program or Recovery Rebate Credit. 
• Advice on claiming the Earned Income Tax Credit based on exaggerated reports of self-employment income.

In some cases non-existent Social Security refunds or rebates have been the bait used by the con artists. In other situations, taxpayers deserve the tax credits they are promised but the preparer uses fictitious or inflated information on the return which results in a fraudulent return.

Don't be tempted by fliers and advertisements for free money from the IRS, suggesting that the taxpayer can file with little or no documentation. These items have been appearing in community churches around the country, starting last year. Promoters appear to be targeting church congregations, exploiting their good intentions and credibility, the IRS says.

Many a timeshare owner has complained that operators promising they have a buyer for their unit have pocketed a big advance fee but not sold their timeshare.

Many of these victims have expressed outrage that no one has been held accountable in these scams. But now, someone has.

Florida, which has its share of timeshares, has teamed with the federal government to send one timeshare resale operator to prison. Florida Attorney General Pam Bondi says Jennifer Kirk, who operated Creative Vacation Solutions, was sentenced this week to 188 months in federal prison for conspiracy to commit fraud and wire fraud.

A $30 million take

Bondi says Kirk operated a timeshare resale scam that stole $30 million from more than 22,000 victims across the country. In December 2009 the Florida Attorney General's Office obtained a court order to close the company down.

"Florida will not tolerate people who prey on those trying to sell their timeshares," Bondi said. "This case is a great example of law enforcement working together to protect consumers."

Fraudulent time share re-marketing has become a bigger problem since 2008, when many people found they could no longer afford their timeshares and were desperate to get out from under the monthly payments and maintenance fees.

Targeted timeshare owners

According to the civil complaint, which was filed in December 2009, Kirk employed telemarketers who placed cold calls to timeshare owners and then falsely represented that their company had actual buyers for the owners’ timeshare property. Her telemarketers then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred.

The state maintains that, despite collecting fees from approximately $1,200 to $3,000 from each of the 22,000 victims, her companies never sold a single timeshare unit. The complaint also alleged that the defendant and her co-conspirators pocketed the closing costs.  

Last October J.D., of Van Nuys, Calif., returned to his parking spot on the street to find that his car had been damaged by another vehicle that left the scene. Fortunately, he has a lot more information about the incident than he would have otherwise.

“A witness identified the truck, with what turned out to be left over logos from a party rental company, and left a note with the license plate number,” J.D. said.

After following up, J.D. said he discovered the vehicle was rented from Enterprise and also learned the name of the driver and the company he represented. Sounds like an open and shut case, doesn't it?

“After contacting Enterprises' insurance company, RIS Rental Insurance Services, Inc., I was told that they were denying my claim,” J.D. said. “Now, any reasonable person would know that they are responsible when the truck was identified, with left over logos on the side from another business that rented the truck, and the name of the person who rented that truck on that day. Big business gets away again.”

J.D. didn't say whether he filed a police report. He should have done so.  Leaving the scene of an accident is a ticketable offense -- and a more serious offense in some jurisidctions.

A police investigation, and possible prosecution, would certainly provide some leverage. Leaving the scene of an accident is a crime. Depending on the extent of the damages, he could also sue the driver, the company he works for, and Enterprise.

J.D. should also have hired a lawyer.  He would have recovered his legal costs in court.

Cut out the middle man

William, of International Falls, Minn., says he has Dish Network and unlike many people posting complaints, he's very happy with it. He also observes there is a pattern to the complaints that he has read.

“I started my account directly with Dish Network,” William told ConsumerAffairs.com. “Most of the issues in this forum are by individuals who purchased the service through a third party who has everything to lose if the customer canceled service. I've seen this with friends who ordered the service from a third party contractor. When they ran into issues, I put them directly in touch with Dish and the issues were taken care of.”

We've also noted that some complaints about both Dish and DirecTV have to do with reception. In nearly every case, this is because the dish was not properly aligned to the satellite when it was installed. It makes William's point about the role of third party contractors.

Book directly

Here's another reason to by wary of third party travel booking sites.

“I purchased a round trip ticket to Cancun through Priceline,” said Caitlin, of Medford, N.Y. “When I received my confirmation it had someone else's name on it as the traveler. I was continuously told that it was my fault and I must have typed in this other persons name. Customer service was degrading, nasty and unwilling to help. I was told that I would receive a full refund until transfered to the supervisor who denied me that and refused to help me in any way, again stating that this is an error of my own. I have never been so poorly treated as a customer.”

Once you book travel through a third party site, it's pretty much set in stone, and as Caitlin points out, even obvious mistakes by the site are hard to correct. Remember that not all airlines participate in these sites. Southwest, for example, books exclusively through it's own site.

You might not know what Ubuntu is and even if you do, you may not associate it with TV, but nevertheless Ubuntu TV made its debut at the Consumer Electronics Show in Las Vegas today.

First things first. Ubuntu is generally considered the most popular version of Linux, the open-source software that powers most of the Internet and a lot of the other gadgets, utilities and industrial processes. 

In addition to that, Ubuntu produces an operating system adapted for laptops and desktop computers that's similar to what you'd see on an Apple or Microsoft-powered machine.   (The name derives from a Southern Africa philosophy that espouses caring and friendship).

Lately, users of the Ubuntu desktop -- who tend to be gearheads -- have been grousing that their computer screen increasingly resembles a tablet computer or, even odder, a TV set.  Instead of the usual small, boxy menus, Ubuntu has sprouted big buttons that appear and disappear as one mouses around the screen.

Now we know why.  Canonical, the U.K.-based company that produces Ubuntu, has been edging towards the home television market, promising that the software will provide:

• Easy integration of broadcast, online services and applications.
• Modern broadcast TV experience – search, watch, record and play.
• Millions of movies and TV shows streamed over the web on demand.

Sound familiar?

Does this sound a lot like what Apple, Microsoft and Google have been promising for their TVs?  If so, it's not surprising.  Ubuntu has for years matched -- some would say exceeded -- everything Apple and Microsoft have done for computers, so why would it not do the same for the new world of TV, the one that integrates the Internet, cable, broadcast, DVD, DVR and just about any other source you can think of?

Aside from complaints by its geeky users who resent anyone messing with their laptop design, Ubuntu has a sterling reputation for technical innovation and reliability.  Crashes, lock-ups, virus infestations are virtually unknown in the world of Ubuntu.  Of course, whether that rock-solid reputation transfers to TV remains to be seen.

Oh, did we mention that the versions of Ubuntu that power servers, laptops and desktops are free?  Commercial clients can buy support services from Canonical but it's not required and the vast majority of individual users rely on forums and their instincts to keep things running smoothly.

Canonical says it expects to have its first Ubuntu-powered TVs on store shelves by the end of this year. Canonical also promises tablets and smartphones sometime soon.

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Disclosure: The author is a longtime Ubuntu adherent who habitually pesters friends and colleagues, pressing Ubuntu installation CDs on them and pleading with them to dual-boot their machines, a suggestion not appreciated by those of a conservative bent.

Whole-house high-def is the mantra being chanted by Dish Network as it rolls out a collection of new services including  expanded streaming video services, corporate logos, mascots, and new programming, on-demand content, and satellite broadband offerings at the Consumer Electronics Show this week.

CEO Joe Clayton is calling it a "relaunch of the company," highlighted by the new whole-home DVR system, which will feature the Hopper HD DVR with a 2-terabyte hard drive that is capable of recording up to six HD signals at a time and playing back up to four live streams.

Hopper includes smaller Joey boxes, which will be deployed in various rooms around the house to allow video to be paused, played back, and recorded throughout the home.

The product enhances Dish's TV Everywhere efforts by being capable by automatically recording prime-time programming from all four major broadcast networks. This would provide access to programming quicker than the one-day window typically available on cable, Clayton argued.

Kid shows

Dish is expanding its Blockbuster @Home service to include 6,000 family and kids shows. For $10 per month, consumers can get access to more than 100,000 DVD movies, TV shows, and games by mail and streaming of more than 10,000 movies and TV shows, including more than 3,000 kids’ shows.

The main Hopper unit features:

• Three satellite TV tuners
• A two-terabyte hard drive for up to 2,000 hours of video entertainment
• Up to 250 hours of HD or up to 1,000 hours of SD user recordings
• Bluetooth for linking to devices such as wireless headphones
• Picture-in-picture for watching any two channels simultaneously

Combined with a Joey, the Hopper whole-home HD DVR system offers more advanced features:

• 750 MHz Broadcom processer -- the fastest satellite receiver processor available today for a quick, responsive on-screen guide
• Approximately 50 percent more energy efficient for a four-room installation than previous models
• ZigBee RF4CE using a proprietary protocol remote with "remote control finder" alert
• High definition user interface
• Easy-to-use, fast, graphical, tile-based user interface with predictive search
• Small, sleek chassis for convenient placement

"Building on a heritage of award-winning DVRs, DISH is proud to be the first to introduce a groundbreaking product that delivers the most choices for TV entertainment by integrating multiple sources of video into one set-top box," said DISH Network CEO Joe Clayton. "The Hopper gives our customers network TV shows on demand and thousands of family movie choices streaming or delivered to the hard drive. With its massive storage, the Hopper leads the industry in delivering the most entertainment options, bar none, for every member of the household."

The Hopper

The Hopper's new feature, PrimeTime Anytime, allows customers, with one click, to record using a single tuner all of the primetime TV programming from ABC, CBS, FOX and NBC -- the networks that deliver the most popular shows during primetime. Once activated by a customer, PrimeTime Anytime records network programming in high definition, where available, every night and stores them for eight days after they have aired.

This creates an on-demand library of approximately 100 hours of primetime TV shows, and makes it easy to catch up on episodes from last night and last week's airing.

The Hopper can record up to six TV shows at once (two live programs and four PrimeTime Anytime shows) while allowing viewers to watch up to four different recorded or on-demand shows in four rooms of the house, simultaneously. This gives a family a variety of options to control or view their recordings and to watch shows in any room from a single Hopper.

The Hopper also offers on-demand content for customers with limited or no Internet access with a feature called DISH Unplugged. This feature delivers via satellite hundreds of the most popular movies and TV shows to the hard drive, including transactional and authenticated videos on demand. DISH Unplugged provides a high quality picture without buffering and makes available many of the same streaming movie choices offered by Blockbuster @Home, including premium movie access.

At the U.S. government's urging, auto manufacturers have bought into a future of hybrid and electric cars in a big way. The North American International Auto Show in Detroit is a case in point, trumpeting a number of new hybrid and electric cars that get exceptional gas mileage.

But in a report from the auto show, Bloomberg News notes another, less-observed development: carmarkers are making ordinary gasoline-powered cars smaller, lighter, and with pretty impressive gasoline mileage.

For example, General Motors has introduced a Cadillac ATS that is said to achieve a nearly 40 miles per gallon highway rating, putting it on par with some hybrid models. And the Cadillac, even though it's a luxury car, costs less than some hybrids and certainly less than gas/electric plug-in models.

The Chevy Volt, for example, had a base sticker price of $40,000 when it was introduced last year. The Volt is powered by a bank of batteries that are charged when plugged in overnight. It also carries a small onboard gasoline engine that can recharge the batteries while underway.

GM has sold only a limited quantity of the cars so far and recently asked owners to return them to dealers for modifications to secure the batteries after a couple of fires were reported following crash tests.

There are many more hybrids on the road these days The Toyota Prius is perhaps the best known of the growing fleet of hybrids. It carries a base price of $23,520 for the hatchback model and achieves a 51 city, 48 highway miles per gallon rating.

Comparison

Compare that to the Hyundai Elantra, just crowned 2012 North American Car of the Year. The Elantra, powered by a four-cylinder gasoline engine, has a base price of $15,195 and achieves a mileage rating of 29 highway, 40 highway.

While the Prius is more fuel efficient, consumers will pay a premium to drive it. Then, there are maintenance costs.

ConsumerAffairs.com reported in 2008 that consumers reported a number of expensive repairs when they purchased a used Prius. The fuel savings were often offset by large repair bills.

The New York Times also noted an absence of buyers for hybrid and electric cars, noting analysts do not expect the segment to grow this year, if gasoline prices stay below $4 a gallon. The reason? The higher upfront costs. Initial sales for both the Chevy Volt and the competing Nissan Leaf fell short of expectations. 

Meanwhile, manufacturers do not seem deterred, unveiling still more hybrid and electric models at this week's auto show in Detroit.

Walmart is offering new services that it says will help consumers save money on their income tax preparation and it's offering to cash their refund checks for $3 if the check is under $1,000 and $6 for checks up to $7,500.

Last year more than 60 million Americans didn’t have access to traditional banking services – such as credit cards and checking accounts – adding up to billions of dollars in fees paid by Americans who can least afford them, Walmart noted.

The average refund is $2,902 and many taxpayers spend up to $90 just to cash the check.

“We believe Americans shouldn’t have to pay exorbitant prices on their everyday financial needs,” said Daniel Eckert, vice president of Walmart Financial Services. “It’s their money and we want to make sure they can cash checks, pay bills and transfer money at a low price.”

Leading up to the biggest tax filing week of the year, January 16 through 22, Walmart said it has worked with Jackson Hewitt and H&R Block to double its in-store tax kiosks and lower the cost for tax preparation services.

Jackson Hewitt will offer free federal Form 1040EZ filing at its Walmart kiosks throughout the tax season and H&R Block will offer a free federal Form 1040EZ until February 29 for simple returns. H&R Block will have 250 kiosks in Walmart stores, while Jackson Hewitt is adding approximately 800 kiosks bringing their Walmart footprint to 2,800.  

“Customers need to make every dollar count in this tough economy, and that’s why we’re committed to helping customers pay less for their financial services during tax season and throughout the year,” said Eckert. “With more than 3,000 tax preparation kiosks in Walmart stores across the U.S. and low flat-fee check cashing services, our customers can conveniently make their refund dollars stretch farther by simply taking care of their tax needs at Walmart.”

The popular image of someone suffering from dementia is a gray-haired senior citizen, but recent studies suggest the process of memory loss begins much sooner.

While some recent studies concluded that there was little evidence of cognitive decline before the age of 60, British researchers say the presence of amyloid plaques in the brain, one of the things associated with memory loss, has been detected in young adults.

A study at Inserm and the University College London studies nearly 7,300 men and women between the ages of 45 and 70. The subjects were monitored for ten years.

As expected, the results show that cognitive performance declines with age and more rapidly so as the individual's age increases. The decline is significant in each age group.

For example, during the period studied, reasoning scores decreased by 3.6 % for men aged between 45 and 49, and 9.6 % for those aged between 65 and 70. The corresponding figures for women stood at 3.6% and 7.4% respectively.

Significant consequences

The authors stress that evidence pointing to cognitive decline before the age of 60 has significant consequences.

"Determining the age at which cognitive decline begins is important since behavioral or pharmacological interventions designed to change cognitive aging trajectories are likely to be more effective if they are applied from the onset of decline." said Archana Singh-Manoux, one of the authors.

The study concludes that some patients should begin treatment for Alzheimer's disease and other cognitive impairments at an earlier age.

The issue is a significant one since the large Baby Boom generation is now entering its senior years. As many as 10 million Baby Boomers will die of Alzheimer's, according to some estimates.