Current Events in October 2012

A day after announcing it would police credit reporting agencies, the Consumer Financial Protection Bureau (CFPB) proposed a rule that would allow it to supervise the larger consumer debt collectors for the first time.

The CFPB also released the field guide that examiners will use to ensure that companies and banks engaging in debt collection are following the law.

“Millions of consumers are affected by debt collection, and we want to make sure they are treated fairly,” said CFPB Director Richard Cordray. “Today we are announcing that we will be supervising the larger debt collectors in the market for the first time at the federal level. We want all companies to realize that the better business choice is to follow the law — not break it.”

Source of complaints

Debt collectors are a frequent source of complaints from consumers, who feel they are being unfairly pursued. Often times they complain of harassment both at home and at work.

Debt collectors are, in fact, allowed to collect legitimate debts but must abide by the Fair Debt Collection Practices Act. Under the law, a collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.

Approximately 30 million Americans have, on average, $1,500 of debt subject to collection. Debt collectors often report consumers’ collection status to the credit bureaus.

If they get the information wrong, this can be the difference between getting approved or denied for such financial products as a mortgage or a car loan.

Types of debt collectors covered

The consumer debt collection market covered by the rule includes three main types of debt collection: first, firms that may buy defaulted debt and collect the proceeds for themselves; second, firms that may collect defaulted debt owned by another company in return for a fee; and third, there are debt collection attorneys that collect through litigation.

A single company may be involved in any or all of these activities. By expanding the supervision program to oversee the non-banks that are larger participants in the consumer debt collection market, the CFPB would have a window into every stage of the process – from the origination of credit to debt collection.

The CFPB’s supervision authority over these entities will begin when the rule takes effect on January 2, 2013. Under the rule, any firm that has more than $10 million in annual receipts from consumer debt collection activities will be subject to the CFPB’s supervisory authority. This authority will extend to about 175 debt collectors, which account for over 60 percent of the industry’s annual receipts in the consumer debt collection market.

In the past the Federal Trade Commission (FTC) has had jurisdiction over debt collectors. Once the new rule takes effect, consumers will have another avenue to air their complaints about debt collectors they believe to be abusive.

We’ve all seen the commercials for Vonage.

The company has created several TV ads that show people tossing old phone bills in a giant pile, and other ads that have customers speaking about giving up old phone services, so they can speak to love ones in distant places for lower costs.

The company says it’s an ideal alternative to traditional phone services because it offers unlimited calling around the globe for one cost, and all you need is a strong Internet connection and a home phone.

Vonage also says it offers much lower rates than practically every other phone company that exists in the U.S. and is ideal for those who regularly call long distance.

Vonage also says it provides a flat rate for global calls, has sound quality that equals traditional landlines or mobile services, and customers can  keep their original phone numbers if they choose.  

For $24.99 a month the company offers unlimited calls to U.S. and Canada, and for $19.99 a month customers can get 750 minutes of outgoing local and long distance calls. Each additional minute cost 3.9 cents, the company says.

Other packages include $11.99 a month for 300 minutes of outbound calls both local and long distance, and with two of its smaller packages--the company says it offers low rates for calling several countries, like Jamaica, Philippines and Guatemala.

On the surface ...

Consumers posting to ConsumerAffairs have complained about everything from being over-charged to not being able to cancel their accounts when they requested it.

“I wanted to cancel Vonage because I moved and wanted to get bundled service via Verizon,” said David of Arlington, Va. 

“I called Vonage to cancel and the first customer service rep routed me to the account manager. Since I had bad experience with canceling anything from online accounts to gym memberships, I wanted to make sure that it gets canceled on the day I made the phone call.”

Vonage offered David everything but the sun and moon to keep his business, but after he refused and went ahead with the cancellation, he found out his account was still active.

“Two months later my account is still active and they charged me a month of service,” he said.

“I called Vonage and went through three people regarding account cancellation and refund. The reason my account was open is that they said I agreed to their service comparison free service. At the end, I spoke to a person named May. She was the unfriendliest person I ever spoke on the phone with. I’ll be calling back and make sure I get my refund," David wrote.

Unlimited calling

 Many people join Vonage because of its unlimited calling feature which is arguably the company’s biggest draw -- and it makes sense, because if one can pay only $24.99 a month to call anywhere in the world with no hassles or hidden fees, it sounds like it would be worth it.

However, some customers said they were charged more than their agreed upon monthly payment, and felt extremely duped after Vonage called them and said their phone plans were being misused.

“Vonage is cheating customers and I believe committing fraud in the name of unlimited calling to US/Canada and 60 countries,” said Jay of New York.

“I live in the USA and have family and friends in India. I call my parents and friends very often. My kids call their grandparents, and sometimes phone calls can last for an hour or more. This month, I got an email from Vonage stating that I am misusing my phone, and my plan will be upgraded if usage goes above 3000 minutes a month.”

“Excuse me,” Jay added. “I have unlimited calling plan, right? I called Vonage and the rep told me that there are certain criteria that he didn’t explain and based on that, they can bump up my plan and charge me $49.99 a month, not $25.99 a month.”

Not just lately

And customer dissatisfaction didn’t just start recently, as my colleague Truman Lewis reported some years back that a class action suit against the New Jersey based company was filed for misleading consumers about how well its services worked, and for conducting questionable business practices.

ConsumerAffair readers also complained about the lack of good customer service, due to rude agents, painfully long hold times and unfulfilled company promises.

We reached outto  Vonage to get a response.  We’re still waiting for Vonage to reply.

In the 932 comments that Vonage received from our readers, it was a challenge to find any positive reviews, so customers should really think long and hard before being lured in by the unlimited call offer.

Wilvert of Killeen, Texas, who’s a soldier in the armed forces and uses Vonage to communicate with his family back home, says using the company has mainly been a big headache for him.

“I’m a soldier in the United States Army,” he wrote. “My only line of communication to my family is a Vonage line. I’ve been with them for one year and all of a sudden, they decided to change my plan without my consent and charge me for going over the minutes.”

“I’m currently stationed in Korea and now I can’t talk to my family as needed. I have to worry about minutes,” Wilvert added. “The service was okay sometimes, but lots of time when I call my wife, she wouldn’t be able to hear me and vice versa, constant call drops, systems error, etc.

Since they decided to make a profit on my need to communicate with my family, I then decided to look elsewhere for other options,” he said.

As the nation gets closer and closer to Election Day, both Democrats and Republicans are scrambling to strengthen their base and win over independent voters, and just like years past--Florida has become one of the key states for both parties.

Today, Florida officials are investigating a string of phony voter eligibility letters that were sent to voters in more than 20 counties, questioning the voters' citizenship along with their legal right to vote.

State officials say if anyone receives this letter they should completely ignore it and continue with their plans to vote, as the document is fraudulent and appears to be an attempt to scare certain people away from voting in this upcoming Presidential election.

“If you receive one of these fraudulent letters, it’s completely bogus and it has absolutely no impact on your eligibility to vote,” said Tim Durham the country chief deputy election supervisor of Collier County, in Florida.

Looks official

The phony letters had many worrying in Florida about not only their right to vote, but also their U.S. citizenship--as the document looked pretty official with a symbol of the American flag and eagle in the upper left hand corner.

The letter also contains a header which says it’s from Jennifer Edwards, supervisor of elections, although it has no signature from Edwards herself, which should also make Floridians automatically suspicious.

The letter not only questions voters' true citizenship, it also threatens jail time for those that aren’t citizens and choose to cast a vote. In addition, the document threatens to remove the recipient’s name from voter registration lists if they don’t respond within 15 days. However, it has no return address, which makes it a little hard to respond, no?

But the letter still had some Florida citizens worrying, because it also said heavy legal action would be imposed on those who received the warning, but still tried to cast a vote.

The letter says state officials are “bringing into question your eligibility as a registered voter. A nonregistered voter who casts a vote in the State of Florida may be subject to arrest, imprisonment, and/or other criminal sanctions."

"Request a hearing"

The document also tells recipients before casting a vote in this upcoming election, “you may request an administrative hearing with the Supervisor of Elections to prove U.S. citizenship." 

A representative of Orange County in Florida said those familiar with official state documents, should be able to tell the difference between the fake letters and the legitimate ones.

“It’s just unfortunate that someone is playing a game this late in the elections," said Linda Tanko in a published interview. “This letter does not look anything like our normal letter we would send out," she said.

Florida officials say the phony letters will not be tolerated and those found responsible for creating and sending it, could face some pretty hefty jail time.

“The Florida Department of State unequivocally opposes all attempts at voter fraud or intimidation and will pursue every avenue to ensure free, fair and open elections for all eligible voters,” said Ken Detzner, Florida’s secretary of state in a statement. “Voter fraud and intimidation can deny voters their voice in government and will not be tolerated.”

Some believe the phony letters wanted not just to than intimidate voters, but also wanted to steal personal information, as it also asked for people’s driver’s license and social security numbers. 

Florida resident Jeff Siewert told a news outlet that he’s voted in many elections and has never received these kinds of letters or any form of voter intimidation. Initially, he really questioned whether he was able to vote for his chosen candidate legally or not.

“I was born in the U.S., Siewert said. “I’m 65 years old. I’ve voted in multiple elections since the mid ‘60’s and I was a little taken aback,” he said. I was just concerned that for one reason or another my vote wouldn’t be counted, and in this election every vote counts."

Although Democrats are blaming Republicans for the fake letters, many Republicans have received them too. Florida officials say recipients should call the state voter fraud hotline at 1-877-868-3737.

Consumers are revving up for the holiday shopping season and, since more than 110 million of them have smartphones, it's likely technology will play a bigger role than ever this year.

A survey from online shopping comparison site PriceGrabber finds that 31 percent of consumers already have shopping apps on their smartphone and 82 percent of them plan to use those apps to save money on holiday purchaases.

In addition, 32 percent of respondents with smartphones said they plan to download new shopping apps in preparation for the upcoming 2012 holiday season. Conducted from Sept. 14 to Sept. 27, 2012, the survey includes responses from 2,469 U.S. online shopping consumers.

Coupons, coupons, coupons

Asked what types of shopping apps they plan to download for holiday shopping, coupon apps were the most popular with 70 percent of the vote.

"Instead of clipping coupons, shoppers are scouring the internet and turning to their mobile devices to find the best deals.  Our survey data states that 82 percent of consumers who already have shopping-related apps will use them in an effort to save money when purchasing gifts this season," said Rojeh Avanesian, vice president of marketing and analytics of PriceGrabber. "With mobile shopping growing at a rapid rate, it will be interesting to see how retailers will gain the shoppers' attention in the competitive mobile market space this holiday season."

Comparison-shopping apps were close behind smartphones, with 66 percent of shoppers saying they will download comparison shopping apps; 63 percent plan to download price check apps with the ability to scan barcodes; and 54 percent of respondents will download apps dedicated specifically to searching Black Friday deals.

Forty-three percent of consumers plan to download deal-of-the-day apps from daily deal websites such as Groupon and Living Social; 32 percent selected price calculator apps to determine discounts, tax and total cost of purchases; and 30 percent plan to download a gift list app to manage their shopping lists.

Fewer trips

Saving money, time, or just for fun, holiday shoppers are turning to new shopping apps to complement their in-store buying this year.

When PriceGrabber survey respondents were asked how many trips they plan to make to retail stores for holiday gift purchases this year, 45 percent of consumers said they plan to make the same amount of trips, 7 percent indicated more trips, and 48 percent said less trips this year.

Of those respondents, 57 percent of consumers said they plan to make between one and five trips to retail stores to purchase holiday gifts. Thirty-three percent plan to make six to 10 trips; 8 percent of shoppers plan to take 11 to 20 trips; and 2 percent plan to make more than 21 trips to brick and mortar stores.

Microsoft has taken the wraps off Windows 8, the latest edition of its operating system. Beginning tomorrow, Oct. 26, consumers can start downloading the new OS.

To encourage upgrades the company has offered price incentives. Through the end of January, consumers currently running PCs with Windows XP, Windows Vista or Windows 7 may download an upgrade to Windows 8 Pro for $39.99.

And eligible Windows 7 PCs purchased between June 2, 2012, and Jan. 31, 2013, in more than 140 markets can download an upgrade to Windows 8 Pro for $14.99 with the Windows Upgrade Offer, available at http://www.windowsupgradeoffer.com.

Those who want a DVD copy of the software will pay a standard retail price of $69.99.

1,000 devices

The long-awaited upgrade will run on more than 1,000 certified PCs and tablets, including Microsoft Surface -- Microsoft's own tablet.

“We have reimagined Windows and the result is a stunning lineup of new PCs,” said Microsoft CEO Steve Ballmer. “Windows 8 brings together the best of the PC and the tablet. It works perfect for work and play and it is alive with your world. Every one of our customers will find a PC that they will absolutely love.”

Some of the new devices built to run on Windows 8 will incorporate a touch-screen function. On those devices the touch-screen interface will replace the standard Start button and Start screen.

The new version of the operating system also incorporates social media and cloud integration.

Three versions

At retail, Windows 8 will be available in two primary versions -- Windows 8 and Windows 8 Pro -- as well as Windows 8 Enterprise for large organizations. Windows will also have a third version, Windows RT, designed for ARM-based tablets and available pre-installed on new devices.

In addition to Microsoft Office 2013, Windows RT is designed to run apps in the new Windows Store. Windows 8 features a redesigned Start screen that gives users one-click access to favorite apps and content. It comes with a new version of Microsoft's browser, Explorer 10.

Obese patients have a greater risk of complications following total knee replacement surgery, including post-surgical infections, according to a new literature review recently published in the Journal of Bone and Joint Surgery (JBJS). Because of complications, obese patients are more likely to require follow-up surgery or revision.

Obesity is reaching epidemic proportions, particularly in the United States, and is a well-documented risk factor for the development of osteoarthritis. Arthritis is initially treated non-surgically, but total joint replacement often becomes necessary if the disease progresses. Consequently, the rate of joint replacements in obese individuals has increased in the last several decades.

Higher risk

"Orthopaedic operations can technically be more difficult in obese people, and it is important for us to know whether there is a higher complication rate in the obese, and if the long-term outcome is worse," says Gino M.M.J. Kerkhoffs, M.D., Ph.D., an orthopaedic surgeon at the Academic Medical Center Amsterdam, University of Amsterdam, and lead author of the study.

Findings include:

• Obese patients have double the rate of infection following total knee replacement surgery compared to non-obese patients.
• Obese patients' rate of infection is higher for both superficial and deep infections.
• The long-term surgical revision rate for obese patients is nearly double that for non-obese patients.

Patient education

The paper's authors advise that knee replacement surgery not be withheld from obese patients. Rather, obese patients should be well-informed of the likelihood of complications following their total knee replacement, and advised to lose weight before surgery.

Orthopaedic surgeons should be prepared to refer them to medical weight-loss professionals, if necessary. The authors also note that weight loss could lessen some patients' osteoarthritis symptoms.

"Although these results are not really surprising," Kerkhoffs says, "for the obese patient, this literature sheds new light on treatment options for symptomatic knee osteoarthritis: a total knee replacement is not the 'easy solution.'"

Two weekly mortgage rate surveys show the costs of home mortgages were little changed over the last week as rates remained near record lows. At the same time, the number of pending home sales increased slightly last month.

Freddie Mac's Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaged 3.41 percent with an average 0.7 point for the week ending October 25, 2012 -- up from last week when it averaged 3.37 percent. Last year at this time, the 30-year FRM averaged 4.10 percent.

The average 15-year FRM was 2.72 percent with an average 0.6 point, up from last week when it averaged 2.66 percent. A year ago at this time, the 15-year FRM averaged 3.38 percent.

The 5-year Treasury-indexd hybrid adjustable rate mortgage averaged 2.75 percent this week with an average 0.6 point -- the same as last week. A year ago, the 5-year ARM averaged 3.08 percent.

Can low rates spur sales?

"Mortgage rates remained relatively unchanged this week and should continue to support the housing market and mortgage refinance," said Frank Nothaft, vice president and chief economist, Freddie Mac.

"Existing home sales in September eased slightly to 4.75 million but was the second strongest annualized pace since May 2010."

Meanwhile Bankrate.com's weekly survey revealed similar results. The average 30-year FRM was 3.61 percent -- down from 3.62 percent last week with average points of 0.44. The 15-year FRM was 2.90 percent, down from 2.91 percent the previous week with average points of 0.32. The rate on the 5/1 ARM ticked up slightly, from 2.72 to 2.73 percent.

Pending home sales

Meanwhile, there was a slight increase in the number of home sales contracts last month. The National Association of Realtors (NAR) reports pending home sales rose 0.3 percent from August, but were 14.5 percent higher than September 2011.

Pending home sales measure the number of home contracts signed, but not closed. Pending contracts usually close within 60 days but in this market, many have fallen through because buyers didn't qualify for a mortgage or the home didn't appraise for the contract price.

Nevertheless, pending home sales have risen for 17 consecutive months on a year-over-year basis, Which NAR sees as a sign of a solid housing recovery. In September all regions were showing double-digit increases in contract activity from a year ago with the exception of the West, which is constrained by limited inventory, NAR said.

A nationwide meningitis outbreak that has claimed 24 lives has been traced to a steroid drug produced at the New England Compounding Center (NECC), a so-called "compounding pharmacy." Now, Massachusetts health officials say they may know why.

Working with the U.S. Food and Drug Administration (FDA), the Massachusetts Department of Public Health (DPH) has been investigating the facility, which shut down immediately after the outbreak facts became known.

"During the facility inspections, investigators documented serious health and safety deficiencies related to the practice of pharmacy," the DPH report states.

Alleged violations

Among the alleged violations of Massachusetts health regulations, DPH said NECC distributed large batches of compounded sterile products directly to facilities apparently for general use rather than requiring a prescription for an individual patient. It said records also show that NECC had lists of potential patient names but did not have patient-specific prescriptions from an authorized practitioner when compounding and dispensing medication, as required by state law.

The report also said manufacturing and distributing sterile products in bulk was not allowed under the terms of its state pharmacy license. If NECC was appropriately licensed as a manufacturer with the FDA the company would have been subject to additional levels of scrutiny. The investigation also found that NECC did not conduct patient-specific medication history and drug utilization reviews as required by regulations.

While counter to regulations, those alleged violations don't explain how the drugs became contaminated. But the DPH report gets to that.

Release drugs before testing

"NECC distributed two of the recalled lots of methylprednisolone acetate 80 MG/ML prior to receiving results of sterility testing," the investigators wrote.

While NECC’s records show the sterility tests found no contamination, DPH says the adequacy of NECC’s sterility testing methods are currently under examination. It said final sterilization of products did not follow proper standards for autoclaving, which is sterilization through high pressure steam, as required.

In addition, investigators said visible black particulate matter was seen in several recalled sealed vials of the drug. Powder hoods, intended to protect pharmacists from inhaling substances during medication preparation, within the sterile compounding area were not thoroughly cleaned pursuant to regulations.

Residual powder

"Residual powder was visually observed within the hood during inspection," the report states. "This contamination may subsequently lead to contamination of compounded medications."

Finally, investigators said a leaking boiler adjacent to the requisite clean room created an environment susceptible to contaminant growth. A pool of water was seen around the boiler and adjacent walls, creating an unsanitary condition. Investigators said the culture results of this potential contaminant are pending.

Since September 24, 2012, the outbreak of fungal meningitis has affected people in 17 states, infecting 317 people and causing 24 deaths, according to the U.S. Centers for Disease Control and Prevention.

Mortgage lenders who made high-interest rate loans to home buyers who couldn't afford them have come under regulatory pressure. Now, so has a company that purchased those loans and packaged them into securities.

Nevada Attorney General Catherine Cortez Masto has announced a $42 million settlement with RBS Financial Products (RBSFP) to resolve an investigation into the firm’s role in purchasing and securitizing subprime and payment option adjustable rate mortgages in her state.

The agreement requires RBSFP to commit to certain changes in its practices to the extent it securitizes Nevada mortgages and to pay the State $42 million to be used for payments to affected borrowers, mortgage fraud enforcement, foreclosure prevention and attorney’s fees and costs.

Holding 'players' accountable

“I remain committed to enforcing Nevada’s laws against the players --including those on Wall Street -- that contributed to and profited from reckless and deceptive mortgage lending in Nevada,” said Masto. “The payment from RBS will alleviate some of the injury to the Silver State and its residents. The changes to its securitization process should help make sure that we do not go down this road again.”

Nevada was at ground-zero of the housing market collapse. The state recorded among the highest percentage of foreclosures in the nation, primarily because so many homes in Las Vegas and other cities were financed with subprime mortgages.

Subprime mortgages, bundled into securities and sold to hedge funds and other investors, were attractive investments because they paid a high return. But when homeowners began to default on those loans, the securities became "toxic" because it was difficult to determine which securities contained bad loans.

Misrepresentations by lenders

Nevada's nearly two-year investigation centered upon potential misrepresentations by lenders, including Countrywide and Option One, to Nevada consumers who took out subprime loans and payment option ARMs that were bought and securitized by RBS between 2004 and 2007. These include whether lenders deceived consumers about the actual interest rate and payments on their loans, the appraised value of their property, and the potential payment shock when the initial “teaser” rate on their mortgages expired.

Masto said she was concerned that many borrowers who took these loans did not understand the likelihood that they would not be able to repay their loans or that they would have to refinance the loan before the payment increased. She also examined the extent to which RBS was aware of the lenders’ allegedly deceptive practices through its due diligence process when it bought the loans and whether RBS substantially assisted these lenders by financing and purchasing their loans.

Compensating homeowners

Part of the $42 million settlement will go to consumers whose subprime mortgages were purchased and packaged by RBSFP. For now, these borrowers do not need to do anything in order to obtain the benefits of the settlement as the distribution plan for eligible recipients is still being finalized, Masto said. Borrowers eligible for relief should periodically visit http://ag.nv.gov/RBS for information.

Only borrowers whose loans were financed or acquired by RBS are covered by this settlement.

Fifteen of 17 booster seats introduced in 2012 earn the top rating of BEST BET from the Insurance Institute for Highway Safety (IIHS), evidence that more than ever, manufacturers are designing seats to provide good safety belt fit for booster-age children.

The improvements mean that BEST BET boosters now outnumber seats in any of the three other categories for the first time since the Institute released its inaugural booster ratings in 2008. Boosters are supposed to improve how adult lap and shoulder belts fit children so the belts can properly restrain them in crashes. BEST BET boosters correctly position belts on a typical 4-to-8-year-old child in almost any car, minivan or SUV.

“Booster manufacturers have risen to the Institute’s challenge to improve seat design, giving parents more choices than ever when shopping for a booster that will provide a good, safe fit for their children,” says Anne McCartt, Institute senior vice president for research.

Forty-seven make the grade

In all, there are 47 BEST BET boosters for 2012. The new rankings include the latest models, plus older top-rated designs still on the market. Five seats are a GOOD BET, meaning they provide acceptable belt fit in most vehicles.

The 37 boosters in the Check Fit category may provide good fit for some children in some vehicles, but not as many as a BEST BET or GOOD BET. As with any booster, parents should make sure the lap belt lies flat across their child’s upper thighs and the shoulder belt crosses snugly over the middle of the shoulder. If not, try a different seat.

Two boosters are not recommended because they don’t provide proper belt fit, and consumers are advised to avoid them. The Safety 1st All-in-One and Safety 1st Alpha Omega Elite -- both made by Dorel Juvenile Group Inc. -- are older designs first evaluated in 2009. These models are 3-in-1s that can be used as rear-facing and forward-facing child restraints with a built-in harness. They can be converted to boosters by removing the harness and using lap and shoulder belts to restrain a child.

Although these seats should work well as child restraints, they aren’t the best option for boosters because they leave the lap belt too high on the abdomen and the shoulder belt too far out on the shoulder. Four other boosters on last year’s not recommended list have been discontinued by Evenflo Company Inc.

2012 IIHS booster evaluation results

(New models for 2012 are in bold)

Work needed

“Dorel should redesign the All-in-One and Alpha Omega Elite to improve booster function,” McCartt says. “Parents who own these seats should use them with the built-in harness as long as possible, up to Dorel’s recommended height and weight limits.”

There are better options for consumers who prefer the versatility of a 3-in-1. Four BEST BETs are 3-in-1s. These include the Evenflo Symphony 65 e3 and three models from Diono LLC -- the RadianR100, RadianR120 and RadianRXT. Another choice is the Evenflo Symphony 65, which is a GOOD BET.

Why fit matters

Federal regulations don’t address how a booster should position safety belts. Manufacturers crash test boosters, but these simulations don’t tell parents how boosters will fit their children in their vehicles.

The Institute launched its ratings program after research showed most boosters weren’t doing a good job of fitting safety belts correctly and consistently in a variety of vehicles.

Using a belt-positioning booster is important for kids who have outgrown harness-equipped child restraints and aren’t big enough for adult belts. Children ages 4-8 in boosters are 45 percent less likely to sustain injuries in crashes than kids restrained by belts alone. Children who are using improperly fitted belts are at risk of a host of crash injuries known as “seat belt syndrome.” These include spine injuries and internal organ injuries. Boosters help by elevating a child into position and guiding the belts for better protection.

No crash tests are conducted as part of the evaluations. The Institute’s ratings focus on belt fit. They don’t assess how boosters might perform in a crash because safety belts do the main job of protecting children, not boosters.

Some manufacturers say their boosters provide enhanced protection in a side crash, but the Institute hasn’t evaluated these claims. To assess belt fit, Institute engineers use a test dummy representing an average-size 6-year-old child. They measure how lap and shoulder belts fit the dummy in each booster under four conditions representing the range of belt configurations in real-world vehicles.

The Institute evaluates models new to the market each year. Ratings of boosters with designs that carry over into the next model year remain on the list until the seats are discontinued. In all, the latest ratings cover 91 boosters.

Dual-use boosters

Boosters come in two main styles: highback and backless. Highbacks have guides to route lap and shoulder belts and can offer some head support. Backless models have lap belt guides but may need a plastic clip to properly position shoulder belts in many vehicles. Some highbacks, called dual-use, can be converted to backless seats.

These get two ratings, one for each mode, because belt fit can differ by mode. Consumers should pay attention to each rating and consider how they will use the seats in their vehicles.

Six of the 24 dual-use boosters included in the 2012 ratings earn BEST BET or GOOD BET in both modes. These include two from Harmony Juvenile Products, the Dreamtime and V6 Highback Booster; one from Combi USA Inc., the Kobuk Air-Thru; and three by Graco Children’s Products Inc., the TurboBooster, TurboBooster Elite and TurboBooster Safety Surround.

“Parents often tell us they want a dual-use booster that’s a BEST BET no matter how they use it,” McCartt says. “Having more to pick from really simplifies things.”

Plenty of choices

This year’s top-rated boosters come in a variety of styles and a range of price points. BEST BETs retail for as little as $19 to as much as $300. Among the new BEST BET models, the backless Graco TurboBooster COLORZ sells for about $26, the highback TurboBooster retails for about $50 and the backless Harmony Carpooler starts at about $35.

McCartt points out that manufacturers sometimes use similar names for different seats, or even the same names for new models, so consumers should consult the Institute’s Website for model numbers, manufacture dates and photographs when they shop for a new booster seat.

She advises parents not to be in a hurry to switch to a booster. Kids should ride in harness-equipped child restraints in rear seats as long as possible, up to the height and weight limits of the seats. Many typically accommodate children up to about 65 pounds -- and some go higher. When children outgrow child restraints, they should use boosters until adult belts fit properly, usually when a child reaches 4 feet 9 inches and 80 pounds.

Most people are aware that economic climates tend to fluctuate—which is why they are called climates I guess, but one good thing no matter what the job situation is like, is that there always seems to be a spike in job offerings during each holiday season.

Whether it's department stores or online retailers, employers are always looking for warm bodies to handle the rush of consumers during the holidays. In fact, Amazon announced it will hire about 50,000 workers this holiday shopping season.

Additionally, Macy’s said it will bring on about 80,000 seasonal employees, Toys "R" Us plans to employ 45,000, and Wal-Mart says it will hire about 50,000 store associates for this year's holiday shopping rush.

But although stores are looking to fill all of their departments with qualified staff,  the need for cashiers may be a little lower this season compared to years past.

As many have already noticed, self-check-out has grown bigger and bigger in recent times and consumers will see stores using it more than ever this holiday season.

Target QR

It seems like Target is leading the way in providing parents a faster and maybe easier way to buy gifts for their kids this season, as it announced the use of QR Code shopping, where parents can quickly scan and, using their smartphone, purchase a toy for later delivery, even if their child is right next to them. The new shopping program will begin in early November.

Many consumers have expressed a preference to buying items the traditional way, as some folks like to deal with a live person and don’t see waiting on line for a few minutes as a big deal.

Also, many people are cognizant of cashier jobs being at risk of becoming obsolete, so sometimes self-checkout systems are purposely avoided by consumers to make a statement to retail chains that cashiers are still not only preferred but appreciated.

However others would say Target’s new way of scanning holiday gifts is extremely helpful to consumers, namely the parent who has trouble finding a babysitter so they can go holiday shopping without their child.

With Target’s self code shopping, parents could easily maintain the surprise element of holiday gift giving, which can sometimes be a challenge when the determined mind of a child is ready to unearth the secrets of what you’ll get them.

The nationwide retail chain will select about 20 or so of this season’s most popular toys and place them in a specific area of the store, and once consumers get home they can arrange where they would like the gift to be sent on their smartphone or computer, and shipping is free anywhere within the United States, Target says.

Think of the cashier?

But the question here is should retail chains just ignore the growing amount of technological advancements that could make holiday shopping easier for the consumer or should they place emphasis on preserving cashier jobs?

More specifically, should Target’s ability to help the busy mom who has to shop with her kids be suppressed or should the store think of the cashier who needs a job to buy gifts for their own family?

Sure Target wants to sell more toys this holiday season, and being able to scan items could certainly make that happen for the retail chain.

But this futuristic way shopping does provide some real conveniences for parents during the holiday shopping season, says Target, and the fact that a customer can have all of their toy shopping done and walk out of the store without lugging a bunch of heavy packages will be of great benefit.

Of course Target feels its new shopping method will be the next wave in holiday gift buying, and according to the chain’s Vice President of Toys Stephanie Lucy, QR code shopping was specifically designed for the parent who doesn’t have enough time to spend days and weeks shopping for their children’s gifts.

“Not only do we have the hottest toys, we are helping guests shop the way they want in stores, online and directly for their mobile devices,” said Lucy.

“Our in-store QR codes for this year’s top toys will add real convenience for busy moms. Now, rather than hoping the kids won’t notice when a gift is slipped into the car, guests can scan the QR codes to buy top toys and have them shipped anywhere for free.”

October is Breast Cancer Awareness month, and each year many groups in the United States look to educate people not only about the disease itself, but also how to detect it early.

Lifeline Biotechnologies has licensed a new bra technology called First Warning System (FWS) that it says will assist women in detecting early signs of breast cancer, and the company says the bra will be more responsive and less costly than getting a mammogram.

Lifeline says the FWS can be used either by the OB/GYN or primary care physician, and if the bras test successfully during the trial phase, they could be available for retail purchase by 2014 in the U.S.

That's assuming, of course, that the Food and Drug Administration (FDA) doesn't declare the bra a medical device and require it to undergone rigorous testing, which could slow approval by months or even years. 

Accuracy results

The trial phase for FWS began with 650 women being tested, and the company claims it gave the correct diagnosis 92.1 percent of the time.

Lifeline Biotechnologies said mammograms usually have a 70 percent accuracy reading, and noted proper diagnosis heavily relies on the knowhow of the radiologist. Diagnosis following FWS test results would also rely on the examining physician's knowledge, presumably.

“The goal of the First Warning Breast System is to enhance clinical breast examination aiding in the reduction of superfluous mammograms, needless biopsies and other screening/diagnostic procedures, as well as to develop a physiological profile of the changing breast over time to identify breast tissue abnormalities at their earliest stages,” the company wrote on its website.

The company says the bra works by detecting temperature changes in the breast, which can be a sign of cancer. 

Physicians not sold

But, doctors aren't sold -- either on the idea of the bra or thermography in general. 

“A woman who chooses any breast cancer screening test based on thermography instead of mammography would be making a serious mistake that could have fatal consequences,” said Dr. Ted Gansler of the American Cancer Society in an interview with Fox News. “The main reason is that once these new products are rigorously tested in clinical trials, the result of the study is that they are less effective than current practices.”

However, other medical experts said they believe new methods should be added to breast cancer detection and having the FWS could potentially keep many women from being misdiagnosed. And although the FWS may not be a perfect breast cancer detector, it could be another useful test that backs up mammograms, some believe.

“Hypothetically, it’s conceivable that malignant processes would have a temperature gradient compared to non-malignant tissues,” said Dr. Therese Bevers of the University of Texas in a published interview. “But that gradient may not be very large.”

“We see some thermograms come back as abnormal, and we do all kinds of imaging with mammogram, ultrasound and MRI and we follow the women and nothing develops, and we have women with breast cancers that are not seen on the thermograms,” she said.

"Non-radiogenic"

Lifeline Biotechnologies also says because FWS is non-radiogenic it isn’t toxic, and physicians could immediately start using the bra for breast cancer detection because they wouldn’t require any special or additional training on how to use it. Mammograms are not toxic either, medical authorities note.

If it goes beyond the testing phase, the bra will sell for about $1,000. The company also says the FWS will be somewhat affordable for consumers if it’s ever is sold over the counter, and patients could quickly and easily use the bra for testing, without it taking a lot of time from their day.

Black Friday is now less than one month away and the latest shopping forecast suggests the stores will be full, despite research showing it's actually one of the worst days of the holiday season for shopping.

Accenture's annual consumer holiday shopping study finds that 53 percent of consumers surveyed said they expected to shop the day after Thanksgiving. But it's not that they like rising before dawn, waiting in the cold for the store to open, and then jostling with other consumers for bargains.

In fact, 52 percent said they would be content to spend Black Friday shopping online if they could find the kinds of deals they expect to find in brick and mortar stores. Of course, if they just wait three days for "Cyber Monday" they would find that online retailers do, in fact, offer large discounts on that shopping day.

Reversing a decline

According to Accenture's previous surveys, interest in Black Friday shopping has been on the decline over the last three years. In 2011, the survey showed that only 44 percent of respondents were interested in shopping on Black Friday, down from 47 percent in 2010 and 52 percent in 2009.

Over the years consumers have complained that big box retailers seem to change the rules at the last minute, opening the doors earlier than advertised. They also complain that many of the "door-buster" specials that drew them to the store in the first place were in such short supply the chances of purchasing the prized merchandise were slim.

Earlier this month the Wall Street Journal crunched the numbers and found what many long suspected. While a limited number of big screen TVs might be generously marked down, the kinds of things you routinely buy as gifts aren't. If you want a wristwatch or Barbie doll for example,you'll save more money by watching sale circulars throughout the year and sleeping in on Black Friday.

Better times to buy

And if you really want a flat-screen TV, Black Friday might not be the time to buy. The Journal found that these items get more expensive the closer you get to the holidays. The lowest prices on the widest selections of sets, it turns out, is in October.

But the Accenture study also suggests consumers will be careful, savvy shoppers this holiday season. Fifty-one percent says they have already made their shopping plans and will use cash they have set aside throughout the year, rather than run up credit card balances.

“The U.S. consumer refuses to be counted out and is entering this holiday season better prepared and more willing to open his or her wallet,” said Chris Donnelly, managing director of Accenture’s Retail practice. “Self-sacrificing will be down and spending will be slightly up, however, our research also shows that shoppers will remain disciplined in their spending.

Showrooming

"Showrooming" will also be a factor. That's when consumers shop for merchandise in a brick and mortar store, then use their smartphones to check prices elsewhere and online. The study shows 56 percent of shoppers expect to "showroom" this year and 27 percent of these same shoppers say they would likely make the purchase online, using their smartphone or tablet, while they are still out shopping.

“The research illustrates a shift in U.S. consumers’ approach to their holiday spending,” said Donnelly. “Many consumers are still struggling to balance their household budgets, at the same time that pay raises and bonuses remain in short supply, and they are realizing that this is not a short-term phenomenon. Consumers will remain resistant to the impulse purchase, and retailers will have to work harder to secure that extra spend by having a unique product, service or experience, and being clear on the value to the customer.”

The federal government has sued Bank of America again -- this time claiming that the bank's Countrywide mortgage subsidiary caused government-underwritten mortgage lenders Fannie Mae and Freedie Mac to lose more than $1 billion. 

Preet Bharara, the United States Attorney for the Southern District of New York, said that after the subpriime lending market collapsed in 2007, Countrywide devised a loan-processing system it called "Hustle." Bharara said the name was meant to describe the speed at which the system could process loans but said it also resulted in inadequate quality controls.

“For the sixth time in less than 18 months, this office has been compelled to sue a major U.S. bank for reckless mortgage practices in the lead-up to the financial crisis," Bharara said. "The fraudulent conduct alleged in today’s complaint was spectacularly brazen in scope. As alleged, through a program aptly named ‘the Hustle,’ Countrywide and Bank of America made disastrously bad loans and stuck taxpayers with the bill.

"As described, Countrywide and Bank of America systematically removed every check in favor of its own balance – they cast aside underwriters, eliminated quality controls, incentivized unqualified personnel to cut corners, and concealed the resulting defects. These toxic products were then sold to the government sponsored enterprises as good loans. This lawsuit should send another clear message that reckless lending practices will not be tolerated,” Bharara said.

It's just the latest in a long series of state and federal actions against Bank of America and Countrywide. In an earlier case, Bank of America agreed to a $1 billion settlement of a suit that accused it of defrauding the government on loans insured by the Federal Housing Administration. 

The bank has also faced numerous civil cases, including class actions and suits on behalf of individuals and other corporations.  All told, it has spent tens of billions of dollars in settlements and legal fees.

Toxic products

Fannie Mae and Freddie Mac rely on lenders’ representations and warranties that the loans they are delivering for sale comply with the agencies' quality standards, Bharara noted. They do not conduct their own pre-purchase loan review, relying instead on the banks to do so, according to Federal Housing Finance Agency Inspector General Steve A. Linick.

“To prevent fraud, conducting quality reviews and complying with underwriting standards are critical," Linick said. "Countrywide and Bank of America allegedly engaged in fraudulent behavior that contributed to the financial crisis, which ultimately falls on the shoulders of taxpayers. This type of conduct is reprehensible and we are proud to work with our law enforcement partners to hold all parties accountable.”

The actions allegedly occurred both before and after taxpayers invested $45 billion in TARP funds in Bank of America, said Christy Romero, Special Inspector General for the TARP program.

“The complaint filed today alleges serious and significant misrepresentations that Bank of America made before and during the time taxpayers invested $45 billion in TARP funds in the bank. SIGTARP and its law enforcement partners will investigate allegations of wrongdoing by TARP recipients, particularly conduct that results in substantial losses to the government and taxpayers.”

The Hustle

According to internal Countrywide documents, the goals of the Hustle were high speed and high volume, where loans “move forward, never backward” in the origination process, the suit charges and says that to accomplish these goals, the Hustle removed necessary quality control “toll gates” that could slow down the origination process.

"For example, the Hustle eliminated underwriters from loan production, even for many high-risk loans, such as stated income loans. Instead, the Hustle relied almost exclusively on unqualified and inexperienced clerks, called loan processors," according to the complaint. "The Hustle also did away with compliance specialists, whose job it was to ensure that any loans that were approved with conditions had the conditions satisfied before closing."

Barnes & Noble says hackers broke into payment devices at 63 of its stores nationwide and may have stolen credit and debit card information from customers.

"We have detected a sophisticated criminal effort to steal credit and debit card information from our customers who have swiped their cards through PIN pads when they made purchases at certain retail stores. The tampered devices were capable of capturing information such as name, card account number, and PIN," the company said.

Barnes & Noble said it discovered the tampering during maintenance and inspection of the devices and has discontinued the use of all PIN pads in all of its stores.

Customers can make transactions securely today by asking booksellers to swipe their cards through the card readers connected to cash registers, the company said.

Machines were tampered with in Connecticut, Florida, Illinois, Massachusetts, New Jersey, New York, Pennsylvania and Rhode Island. 

In Connecticut, where three stores were hit, Attorney General George Jepsen wants to know what Barnes & Noble is doing to protect its customers.

Debit Card Users:

• Change the PIN numbers on your debit cards
• Review your accounts for unauthorized transactions
• Notify your banks immediately if you discover any unauthorized purchases or withdrawals

Credit Card Users:

• Review your statements for any unauthorized transactions
• Notify your card-issuing banks if you discover any unauthorized purchases or cash advances

Stores listed

Here is a list of the stores B&N has identified as being hit by hackers.

In 2012 it seems that scammers have not only become more advanced in their techniques, but also more brazen.

Maybe you’ve received an email that says you won a new flat screen TV, or maybe you’ve gotten a phone call from somebody that said by answering a survey and providing some information, you’ll get a check in the mail.

A good portion of consumers could probably see these types of scams approaching from light years away, because getting something for nothing usually makes our consumer antennas stand up in skepticism.

But when someone contacts us and speaks of things close to our hearts, like donating to a charity, we may lower our antennas and think, “Hey, I’ve heard about this particular cause before and I personally know people who have contributed, so the call must be legitimate.”

Scammers are aware of these occasional consumer slip-ups, so instead of using the old congratulations-you-won-a trip line, they may tug at your emotions in another way, like asking you to donate towards a political campaign.

Cameron Camp, a security researcher at the cybersecurity company ESET, and an expert on phone and Internet scams, says that political con games--especially this election season--are a growing threat. 

Election season scams

“There are two main kinds of phone scams exploiting the election season,” he said in a ConsumerAffairs interview.

“First is a scam that pretends to be a political survey to get around Do Not Call List restrictions and offers a free cruise for participation. Consumers who go along with this scam are asked to provide their credit card to pay “non-refundable port fees” or other fees to complete booking of the “free” cruise.

"We documented this, with a picture of the cruise ship on our blog. In this case the scammer wanted a government port tax of $59.00 per person." 

“The second kind of phone scam is when someone pretends to be calling for donations to a political campaign or candidate but is in fact just a con artist,” Cameron said.

But how does one tell a con artist from a real political affiliate? Because any skilled con artist can transform into an identical version of what they’re pretending to be.

See, many times a crook, thief or con person has already figured out how they’re going to con you before they're out of bed and their feet have hit the ground in the morning.

And once they do get out of bed they make a bee-line to the telephone or Internet to start their day-long attempts of gaining money, personal information or both.

Free speech

Cameron says that nowadays political scammers use free speech as an effective way to get around the protection of Dot Not Call lists, and he also says that scams related to elections are just portals to larger and more intricate types of cons.

“Companies are not [only] using free speech as a loophole,” he says. “They are abusing the free speech exemption to the Do Not Call List, namely calls from or on behalf of political organizations, charities and telephone surveyors. Hence the political survey which leads to the cruise scam.”

Although the Internet is still one of the most popular con artist hangouts, the telephone remains a useful weapon for those looking to cheat you.

According to a report released by Pindrop, a company that deals with the prevention of phone scams, there were 1.3 million successful cons related to the telephone in just a six month period in 2012. And this year alone, phone scams have increased by 29 percent, according to the report, and a fraudulent call is placed in the U.S. more than five times each minute.

Many people might say by using common sense one could successfully avoid being the victim of a con, but sometimes common sense gets defeated by our emotions, and very few things pull at our emotions like the causes we believe in.

Plus, sometimes when discussing a cause in the heat of the moment, that heat has the potential to melt away some of our good reasoning.

A few simple steps

Even though that may be, Cameron says by just doing simple things one can reduce the chances of a scammer getting their way.

“I said it before: Only make donation by check, in person or by mail, to individuals and organizations you know are legitimate,” he says. “I would avoid giving credit card information over the phone.”

“A more extreme but quite effective measure is to stop using a landline. According to the FTC, telemarketing to cell phone numbers has always been illegal in most cases because FCC regulations prohibit telemarketers from using automated dialers to call cell phone numbers,” he said.

With the Presidential race nearly coming to a draw, the next couple of weeks promise to be filled with even more election emails and annoying phone calls, so be on your best guard against fraud.

Of course another way to avoid being scammed over the phone this political season, is to not answer it.

According to the Centers for Disease Control and Prevention (CDC), 71 million adults in the U.S. have high cholesterol, but a recent study published in the Journal of the American Medical Association finds that LDL or bad cholesterol has gone down significantly between 1988 and 2010.

In the recent study, CDC researchers found the increase of U.S. adults taking cholesterol medications like statins is among the main reasons for lowered cholesterol levels.

“Statins dramatically reduce LDL levels and reduce risk of heart attack and stroke, and people live longer,” explained Dr. Holly Anderson of New York-Presbyterian Hospital in a published interview.

According to the findings, only 3.4 percent of U.S. adults used statin between 1988 and 1994, and between 2007 and 2010, that amount grew to 15.5 percent.

High cholesterol is one of the leading factors when it comes to developing heart disease, along with obesity and smoking. And the decrease in the number of high cholesterol patients is having a direct impact on the amount of heart attacks in the U.S., say health officials.

“Levels of LDL cholesterol have declined substantially, and along with that decline, we are seeing a reduction in age-related heart disease," said Dr. Steven Nissen to WebMD. Nissen heads-up the cardiovascular unit at Ohio’s Cleveland Clinic.  

"We know that the single best predictor of heart disease is cholesterol levels, and they have been going down," he said.

Many still at risk

Health experts also say although cholesterol levels have dropped within the last twenty years, a large amount of U.S. adults are still at risk of developing heart disease because many are still eating unhealthy foods and not  exercising. In fact, researchers found the consumption of fatty foods hasn’t dropped since 1988 in the United States.

If one is taking a statin but still living an unhealthy lifestyle, the medication isn’t enough to completely remove the risk of developing heart disease, say experts.

“Cholesterol levels are just one measure of heart health,” said California physician Gregg Fonarow in an interview with HealthDay.

“While cholesterol levels have significantly improved in the U.S. during this 1998-to-2010-time frame, other components of heart health—such as maintaining a healthy body weight and participating in regular physical exercise have not.”

 The CDC, which conducted the research, also learned cholesterol levels dropped from 206 mg/dL between 1988 and 1994, to 196 milligrams between 2007 and 2010, and the good news is, it doesn’t stop there.

Kids also improving

A separate study conducted earlier this year—also by the CDC-- found significantly lower high cholesterol cases among children too. After examining 16,000 adolescents and children for a 20-year span, researchers found cholesterol levels dropped to 160 from 165.

Obviously children aren’t taking statin like adults to lower cholesterol levels, and researchers say there hasn’t been an increase in the amount of exercise among children either. But the younger ones seem to be eating less trans fats, say experts -- which has seemingly been the catalyst in lowering their cholesterol readings.

And kids’ eating a less amount of trans fats is directly related to it being removed from many popular children’s foods like desserts, fried foods and salty snacks. New York City has banned the use of trans fats altogether since 2008.

“I love the idea that reduced use of hydrogenated trans fats might be responsible” for lowering cholesterol among children, said Marion Nestle,  a professor and nutritionist at New York University, in an MSNBC interview.

“If so, and as usual, it’s clear that more research is needed—it would mean that public health measures like the trans fat ban in New York City are actually doing enough good to be measurable.”

Childhood obesity

Other health experts that weren’t part of the CDC study said although cholesterol levels have dropped for kids and adolescents, the positive results are tainted by the continuing problem of childhood obesity.

During the last three years of the study, between 2007 and 2010, the CDC found only one out of 12 children had high cholesterol, which equates to a 28 percent drop.

Dr. Sarah De Ferranti of Boston Children’s Hospital added to the CDC study, and said she finds the news of kids having lower cholesterol levels are extremely positive, but since many young people are still not leading healthy lifestyles, the effects will eventually catch up to them by adulthood.

“We may have a small effect in the right direction from lower cholesterol, but I’m worried it will be overwhelmed by the earlier onset of obesity in younger and younger children, she told the Associated Press. “I’m still pretty worried about how many kids are going to wind up patients of adult cardiologists.”

For years, we here at ConsumerAffairs have received your complaints about problems with credit reporting.

Examples are legion. Typical is a posting by from Cathy of Casper, WY, regarding CreditReport.com: "I was charged $19.95 for credit report that their system would not let me into,” she writes. “I called when I received the bill and still could not get into their system. I talked to a few different people and all they said they could do was cut my bill in half. And I never received my credit report from them. I never received anything from them but a bill."

Now, the Feds are getting into the act. The Consumer Financial Protection Bureau (CFPB) has started accepting consumer complaints, giving consumers individual-level complaint assistance for the first time at the federal level.

“Credit reporting companies exert great influence over the lives of consumers. They help determine eligibility for loans, housing, and sometimes jobs,” said CFPB Director Richard Cordray. “Consumers need an avenue of recourse when they feel they have been wronged.”

Big business

Consumer reporting agencies, which include what are popularly called credit bureaus or credit reporting companies, are private businesses that track a consumer’s credit history and other consumer transactions. The credit reports they generate -- and the three-digit credit scores that are based on those reports -- play an increasingly important role in the lives of American consumers.

The largest credit reporting companies issue more than 3 billion consumer reports a year and maintain files on more than 200 million Americans. The consequences of errors in a consumer report can be catastrophic for a consumer, shutting him or her out of credit markets, jeopardizing employment prospects, or significantly increasing the cost of housing.

Although a small number of large businesses dominate the credit reporting market, there are many consumer reporting agencies in the United States. The market includes: the three largest credit reporting companies that sell comprehensive consumer reports; consumer report resellers that repackage information they buy from the largest companies; and specialty consumer reporting companies that primarily collect and provide specific types of information like on payday loans or checking accounts.

Following the procedure

For consumers who believe that there is incorrect information on their credit reports or who have an issue with an investigation, before filing with the CFPB, they should first file a dispute and get a response from the consumer reporting agency itself. There are important consumer rights guaranteed by federal consumer financial law that may be best preserved by first going through the credit reporting company’s complaint process.

Once that process is complete, if the consumer is dissatisfied with the resolution or if the consumer reporting agency does not respond, the CFPB is available to assist.

A consumer can go to the CFPB if he or she, for example, has issues with:

• Incorrect information on a credit report;
• A consumer reporting agency’s investigation;
• The improper use of a credit report;
• Being unable to get a copy of a credit score or file; and
• Problems with credit monitoring or identify protection services.

Expanding the reach

The new announcement extends the kinds of complaints the CFPB already handles. The CFPB began taking credit card complaints when it launched on July 21, 2011. Since then, it has expanded to take complaints on mortgages, bank accounts and services, consumer loans and private student loans.

Consumers are given a tracking number after submitting a complaint with the CFPB and can check the status of their complaint here. Each complaint will be processed individually and sent to the company for response.

The CFPB expects the consumer reporting agencies to respond to complaints sent to them within 15 days with the steps they have taken or plan to take. Consumers will have the option to dispute the company’s response to the complaint.

To file a credit reporting complaint, consumers can:

• File online at www.consumerfinance.gov/Complaint
• Call the toll-free phone number at 1-855-411-CFPB (2372) or TTY/TDD phone number at 1-855-729-CFPB (2372)
• Fax the CFPB at 1-855-237-2392
• Mail a letter to: Consumer Financial Protection Bureau, P.O. Box 4503, Iowa City, Iowa 52244

Consumers can receive free copies of their credit reports every 12 months from AnnualCreditReport.com. This is the only authorized source that provides free disclosures from the three major national credit reporting companies -- Equifax, Experian and TransUnion.

Next week lawyers will go before the U.S. Supreme Court and present arguments in a case that could determine whether you have the right to resell something you own on eBay or at a yard sale.

The case is Kirtsaeng vs. Wiley, which centers on a graduate student, Supap Kirtsaeng, who bought current textbooks -- published by John Wiley & Sons -- through friends and family in Thailand and sold them online in the United States.

The publisher sued, claiming that the right of first sale did not apply because the books were manufactured overseas, and he was therefore not authorized to sell the books.

The “first sale doctrine” is a common-law concept recognized by U.S. courts for more than 100 years. A coalition of retailers, libraries, educators, Internet companies and associations is worried that a ruling for the publisher in this case could eventually jeopardize that right. In the future, they say, consumers may not be able to sell goods they no longer want without running afoul of the law.

Erosion of ownership rights?

"The sudden erosion of ownership rights is becoming an alarming trend in the United States due to recent federal court decisions,” said Andrew Shore, executive director of the Ownership Rights Initiative (ORI). “Our position is simple: if you bought it, you own it, and you can resell it, rent it, lend it or donate it, and we believe the American people fundamentally agree.”

The case going before the court is far removed from the neighborhood yard sale, however. The publisher charges Kirtsaeng was basically running an import business, buying the textbooks for little money in Thailand and selling them for a large markup in the U.S., while still undercutting the price of the publisher.

ORI is concerned, however, that a decision against the right to resell a purchased product will eventually be expanded to include all types of items. For example, if you sold your old iPhone on eBay, the group says it's possible Apple would demand a cut, since it holds the copyright.

What did Congress intend?

"It is hard to conceive that Congress intended to incentivize manufacturers to move operations overseas, force American consumers to pay higher prices, make it hard for us to donate our own stuff to charity, and cripple the ability of libraries to lend books -- without saying anything like that in the law," said Marvin Ammori, a legal advisor to ORI and an Affiliate Scholar at Stanford Law School's Center for Internet & Society.

Ammori says if the high court rules in favor of Wiley's interpretation, it could be illegal for American consumers and businesses to sell, lend, or give away the things they own, but only if the company happened to have manufactured the goods overseas and put a little copyrighted logo or text on them.