Current Events in October 2012

Just because you have a disability, even if you are confined to a wheelchair, it doesn't necessarily mean you can't drive a car or truck. But in reality, some vehicles lend themselves to a disabled driver more than others.

But how do these drivers choose among the range of vans, sedans, coupes and SUVs that are available to accommodate their mobility challenges?

"Picking the right type of vehicle for your disability and your lifestyle is important," said Warren Clarke, an editor at automotive website Edmunds.com. "It's a decision that could have far-reaching effects on your comfort and your finances, so it shouldn't depend exclusively on your feelings toward a vehicle's image or appearance. For mobility-challenged drivers, function trumps form by a very wide margin."

Five key questions

If you or a loved one are in the market for a wheelchair-accessible vehicle, there are five questions that need to be asked and answered before you make a decision:

1. How severe are your mobility challenges? For many disabled drivers who are able to get around without wheelchairs — and some who may rely on wheelchairs, but who have good upper-body strength — sedans, coupes or SUVs may actually be solid options.
2. How important are practicality and convenience? Conversion vans and minivans offer superior practicality and convenience. For example, they typically don't require drivers to hoist themselves from wheelchairs to seats. This isn't the case with many sedans, SUVs and coupes.
3. Are you shopping for both current and future needs? Many mobility-challenged drivers suffer from conditions — such as multiple sclerosis, cerebral palsy, etc. — that can result in diminishing strength and agility as the years go by. Today, you may have the mobility to easily transfer to a sedan, but that may not be the case two or three years from now.
4. What's the weather like? It's important to consider how well-suited your potential new conversion vehicle is for use in your particular climate year-round.
5. Have you gotten the help of a qualified mobility dealer? A mobility dealer knows the full range of options available to shoppers and is in a position to tell you which choices suit you best. This kind of knowledgeable guidance is essential if you hope to choose a vehicle that will serve as a useful companion both today and years into the future. A qualified local dealer can be found through the National Mobility Equipment Dealers Association web site. 

Many types of vehicles can be converted for use by a driver in a wheelchair. The amateur-produced video below, by a consumer hoping to sell his converted pick-up truck, provides a good illustration of how a common conversion system works.

Anyone who takes the dog for a walk knows the drill; before leaving you stuff a couple of plastic bags into your pocket to clean up after your pet.

In fact, most municipalities now make it a law that pet owners must pick up after their dogs or else face a fine. What if there were a way to avoid that and stay within the law?

The makers of a new product, Doggie Doo Dissolver, claim they have the answer. By just squirting the dog feces with the liquid, the feces just melts away in a matter of minutes. A video posted on YouTube appears to show the fecal matter dissolving after being sprayed.

The product marketers claim their product not only removes the feces but is the most environmentally-friendly way to do it, since the plastic bags full of dog droppings aren't headed for a landfill. But does just “dissolving” the solid waste really solve the problem?

Misleading

“Although I have not seen the technical data of this product, the claim that it 'dissolves' the feces is extremely misleading, as it certainly does not eliminate any of the nutrients in the feces,” said Bruce Wiggins, a professor of biology at James Madison University, in Harrisonburg, Va. “This is the major reason the feces should be removed from the ground, so that the nutrients do not enter the groundwater.”

The product description says Doggie Doo Dissolver is “an incredible new-patented enzyme that when sprayed on dog feces will dissolve it within minutes.” It may, in fact, do that. But that may only eliminate the physical evidence and for many pet owners, that may be enough.

But pet owners who truly want to protect the environment will probably need to keep carrying those plastic bags.

The Internet has presented consumers with a powerful new tool to review their experiences with products and services but it has also given companies new arguments that they can muster to try to silence their critics.

In a case that sets an important precedent for protecting First Amendment rights on the Internet, the Massachusetts Court of Appeals last week held that including a company’s trademarked name in the title and meta tags of a Web page about that company does not violate trademark law.

“Title tags and meta tags are noncommercial speech that truthfully describe a subject of the Web page and should be protected by the First Amendment,” argued Paul Alan Levy, the Public Citizen attorney representing the defendant in the case of Jenzabar v. Long Bow Group. “People should be allowed to use the Internet as a tool for open criticism and debate. With this opinion, the court came down on the side of free speech.”

In particular, Levy said, the court’s emphasis on the need for evidence that confusion is probable; the court’s refusal to consider the possibility of confusion by merely careless consumers; and the insistence that there must be a deliberate intent to confuse will all help prevent targets of criticism on the Internet from using frivolous trademark claims to punish people for speaking openly and freely.

Tiananmen Square

The defendant, an award-winning documentary company named Long Bow Group, made a film about the historic 1989 Tiananmen Square protests in China, which featured Ling Chai, a student leader in the protests.

Chai now runs the company Jenzabar Inc., which makes software for colleges and universities. Chai didn’t like the way she was portrayed in Long Bow’s film, so she and her company sued over the website about the film.

After Chai’s claims of defamation fell flat, Jenzabar proceeded with claims of trademark infringement and dilution – based on Long Bow’s use of the name “Jenzabar” among the meta tags on pages about that firm on the film’s website. Both claims failed in Boston’s Suffolk County Superior Court when Judge John Cratsley ruled that Long Bow’s inclusion of the software company’s name in its meta tags was protected as fair use.

U.S. adults are more worried now about their retirement years than they were in 2009, when the economy seemed at rock bottom.

A Pew Research Center survey finds 38 percent of adults are “not too” or “not at all” confident they will have enough income or assets in retirement. That's up from 25 percent in early 2009.

In the last three and a half years the economy has begun to improve. The housing market has shown signs of life, the foreclosure wave is receding and job growth has been stable, although weak. On the other hand, household income has declined since the Great Recession officially ended in June 2009.

Young people now more worried

So why the growing pessimism about retirement? According to an examination of the two surveys, it's not the same people who were worried in 2009 that are worried now. According to Pew, it is now younger and middle-aged adults who are voicing the most retirement worries.

In 2009 it was “gloomy boomers” in their mid-50s who were the most worried that they would outlive their retirement nest eggs. Today, retirement worries peak among adults in their late 30s -- many of whom are the older sons and daughters of the baby boom generation.

According to a Pew Research analysis of Federal Reserve Board data, this is also the age group that has suffered the steepest losses in household wealth in recent years.

The new Pew Research survey finds that among adults between the ages of 36 and 40, 53 percent say they are either “not too” or “not at all” confident that their income and assets will last through retirement. In contrast, only about a third of those ages 60 to 64 express similar concerns, as do a somewhat smaller share of those 18 to 22 years old.

Unpleasant surprise

In 2009 baby boomers were caught off guard by the financial meltdown and the resulting drop in value of both their homes and retirement accounts. Being closer to retirement, they were alarmed at the dramatic turn of events.

As a result many boomers recalculated their retirement plans, deciding to remain on the job longer than previously planned. Those who didn't panic and sell their investments saw the stock market quickly rebound in mid 2009. For boomers, the outlook doesn't seem nearly as bleak.

Why are younger people now more worried about retirement? A review of Federal Reserve data suggests the reason.

The median net worth of this group, in their late 30s and early 40s, has fallen at a far greater rate than for any other age group both in the past 10 years and since the beginning of the Great Recession.

56 percent decline

Led by declines in home value, the median wealth of adults ages 35 to 44 was 56 percent lower in inflation-adjusted dollars in 2010 that it had been for their same-aged counterparts in 2001 -- the steepest decline for any age group during that decade and more than double the rate of loss among those ages 55 to 64.

Compounding the problem is that these tend to be expensive years, especially for couples that have delayed starting a family. Declining wealth and rising expenses makes it doubly difficult to put away money for retirement.

Yet personal finance experts say this is the best time to be saving and investing, since time is the greatest contributor to wealth-building. They say putting some money away each month into an IRA or 401 (k) account, is critical to building a nest egg over the next 20 to 30 years that can go a long way toward alleviating some of those retirement concerns.

Low interest rates and the likelihood that they'll stay that way and don't seem to be doing a lot for consumer confidence.

Nearly three out of four people (74%) are not more inclined to borrow money despite the Federal Reserve's recent pledge to keep interest rates low until mid-2015, according to research released by Bankrate.com. In fact, just 23% report a greater inclination to borrow money.

The findings were announced in conjunction with release of Bankrate's monthly Financial Security Index, which rebounded to its highest level since June (from a 2012 low of 96.6 in September to 99.2 in October).

This was still not enough to tip it back into positive territory, since any number less than 100 indicates deteriorating financial security over the prior 12 months. The index has been below 100 in 21 of the 23 months since its inception in Dec. 2010.

More progress needed

"Recent stock market returns, housing data and the latest jobs report all have Americans feeling a bit better about their finances, but more progress is needed in order to achieve sustainable long-term improvement," said Greg McBride, CFA, Bankrate.com's senior financial analyst. "When asked about their overall financial situation now versus one year ago, slightly more Americans said it is worse now (25%) than better (24%). And the negativity is particularly pronounced among retirees: just 16% say they are better off today. That's the same reading as the unemployed."

Four of the index's five components improved over the past month: job security, savings, debt and overall financial situation. The other component (net worth) held steady. Only two readings (job security and net worth) indicate improvement in how consumers feel now compared to one year ago.

Thirty-one percent of full-time employees report better overall financial security now versus 12 months ago. And one-third of households with income of $50,000 or more per year report an improved overall financial situation now versus this time last year.

The new survey was conducted by Princeton Survey Research Associates International.

Apple's long-running patent dispute with Samsung and its huge victory in court last summer made headlines. A jury found that Samsung violated a number of Apple patents in its smartphone and tablet designs.

But beyond the $1 billion damage award, which Samsung says it is appealing, the whole issue of patents affects the price of all kinds of consumer technology, according to at least one expert.

Aija Leiponen, associate professor of technology and innovation strategy at Cornell University, says the cost patents add to products can be significant.

13 percent of a smartphone cost

“The royalty cost for patents held by equipment companies such as Nokia, Motorola Mobility and Qualcomm is estimated to form about 13 percent of the price of a 3G wireless handset,” Leiponen said.

Not only does that raise the price of a smartphone, Leiponen says it makes it more costly and therefore harder for technology innovators to start new companies or develop new products.

Added to that is the legal environment. With huge damage awards in patent infringement cases, the total intellectual property cost to consumers and innovators is likely to keep climbing.

Leiponen has proposed something revolutionary and undoubtedly controversial. Yet he thinks that it would be good for the industry and for consumers. And he thinks he is not alone.

Royalties cap

“There is some consensus among analysts that an agreed level of maximum royalties would be beneficial for consumers and the industry as a whole, he said. “It would shift incentives away from intellectual property creation and royalty extortion and toward product innovation and commercialization.”

Leiponen is enough of a realist to know that such a proposal faces still headwinds from entities that hold intellectual property rights. The industry, he says, will not be able to agree on this by itself.

“This might present a fruitful opportunity for governments and international organizations to provide some ground rules for the licensing negotiations regarding standard-essential patents,” Leiponen said.

Nissan is recalling 13,919 model year 2012-2013 Altimas manufactured from May 10, 2012, through July 26, 2012. The vehicles may have been equipped with transverse link bolts and power steering rack bolts that were not torqued to proper specification.

The affected bolts could become loose and fall out which may lead to a loss of vehicle control, increasing the risk of a vehicle crash.

Nissan will notify owners, and dealers will tighten the bolts to the proper torque specifications. The safety recall is expected to begin on, or about October 29.

Owners may contact Nissan Customer Service at 1-800-647-7261.

An operation that allegedly used fake news Websites to deceptively market acai berry weight-loss products will pay more than $2 million to settle Federal Trade Commission (FTC) charges.

Last year, the FTC charged defendants Circa Direct LLC and Andrew Davidson with running Internet ads designed to look like news Websites, with misleading titles such as “News 6” and “New Jersey Job Report.” The Websites purported to provide investigative journalists’ reports on weight-loss products, work-at-home schemes, and penny auctions, But, according to the FTC, the sites were actually deceptive ads.

The FTC accused Circa Direct and Davidson, the company’s owner, with making false and unsupported claims about acai berry products and failing to disclose their financial relationship to the sellers of the products and services promoted on the fake news sites. In one fake news story, for example, a “reporter” claimed to have lost 25 pounds in four weeks using a supplement.

Seizing assets

The settlement imposes a judgment of nearly $11.5 million. The monetary judgment will be suspended when the FTC receives assets worth more than $2 million from the defendants’ personal and corporate bank accounts, investment and retirement accounts and proceeds from the sale of a home in Margate, New Jersey, and a 2010 Nissan Maxima.

Under the settlement, Circa Direct and Davidson are required to make clear when their commercial messages are advertisements rather than objective journalism. They are also required to disclose any financial connections they have with merchants.

The defendants are further barred from making deceptive claims about health-related products, such as the acai berry weight-loss supplements they marketed, and from making deceptive claims about other products, such as work-at-home schemes or penny auctions.

In approving the settlement order, U.S. District Court Judge Renee Marie Bumb cited the fact that the order does not contain an admission of liability, and required the FTC to create and host a Webpage that provides a notice from the court, a detailed summary of the factual allegations and links to supporting documents.

The FTC sued Circa and Davidson as part of a law enforcement sweep against 10 affiliate marketing operations accused of using fake news Websites to market acai berry weight-loss products. The agency has reached similar settlements with eight of the other operations.

Tennessee remains the hot spot in the nationwide meningitis outbreak, tied to contaminated steroid drugs distributed by the New England Compounding Center (NECC).

The U.S. Centers for Disease Control and Prevention (CDC) has confirmed 285 cases in 16 states resulting in 23 deaths. Tennessee's death toll is the nation's highest, with eight. North Carolina reported its first death over the weekend.

The outbreak began earlier this month when a few cases of meningitis were linked to injected steroid drugs that came from the NECC, a compounding pharmacy that doesn't manufacture original drugs, but creates a new drug by mixing two or more existing drugs.

Still spreading

The outbreak, which has continued to spread after the initial reports of illnesses and deaths, has prompted calls for increased oversight of these compounding pharmacies. Rep. Edward J. Markey (D-MA), senior member of the House Energy and Commerce Committee and in whose district the facility is located, asked the Food and Drug Administration (FDA) to look into increasing its oversight.

In a letter to the FDA, Markey asked the agency about current regulations and oversight practices that ensure that safety standards met by large drug manufacturing companies are also met by compounding pharmacies. Pharmacy “compounding”, which accounts for 37 million prescriptions each year, involves making a new drug whose safety and efficacy have not been demonstrated with the kind of data that FDA ordinarily would require in reviewing a new drug application, according to the lawmaker.

Regulatory black hole

“Compounding pharmacies currently fall into a regulatory black hole,” Markey wrote in his letter to FDA Commissioner Margaret Hamburg. “While such pharmaceutical operations capable of making specialized drug formulations play an important role for many patients who cannot take traditional medication such as pediatric patients, hospice patients, and patients with allergies to common dyes and fillers, they also carry inherent risks that are not always fully communicated to patients.”

The CDC and FDA investigations into the current outbreak are continuing. Specifically, the two agencies are trying to determine how the injectable steroid drugs became contaminated. Operations at NECC have been stopped since the outbreak and other drugs produced there have been recalled.

Last week investigators confirmed that they had found the extremely dangerous fungus Exserohilum in some of the vials NECC had used for its drugs.

Let’s face it, the cost of medicine and prescription drugs can really add up, and oftentimes we have to throw drugs away because they’re past their expiration date. But according to a new study conducted by researchers at the University of California, San Francisco (UCSF) finds drugs may remain potent a lot longer than expected.

A group of researchers examined eight different prescription medications that contained 15 active ingredients. And though all of the medicines expired between 28 and 40 years ago, the researchers learned the meds not only maintained their  level of potency, but also maintained the ability to work in the way they were intended to.

The lead author of the study, Lee Cantrell, says the expiration date on a prescription bottle is more or less a guideline, so patients can know what the minimum amount of time the medicine will be good for -- but that date isn’t necessarily a firm guide to how long the drug will remain effective, he says.

“All [the expiration date] means from the manufacturers’ standpoint is that they’re willing to guarantee the potency and efficacy for the drug for that long," said Cantrell. “It has nothing to do with the actual shelf life.”

The UCSF researchers also found the amount of active ingredient present in the drugs was at least 90 percent of the amount shown on the label, only diminishing by a small amount.

This was the case among 12 of the 14 drug compounds tested. The only active drugs that fell below the 90 percent mark were amphetamines and aspirin, say researchers.

All drugs have to contain between 90 and 110 percent of the active ingredient, which are guidelines set by the U.S. Food and Drug Administration.

Lots of waste

Researchers say because pharmacies have to discard prescription drugs right after the expiration date, and consumers have been told to throw medicines away after they expire, a lot of money and effective treatments are being vastly wasted.

It mirrors the same argument one could have against restaurants throwing away day-old food. Although the food isn’t freshly made and it wouldn’t be given to customers, shouldn’t it be given to those that can’t afford a meal? Or should it be wasted simply because it’s passed its expiration date?

In the same way, is it better for consumers to always scrape together the necessary funds to buy fresh prescriptions or should they save their money and just use medicines past their expiration date?

Cantrell says having consumers think they have to discard their medicine  simply because it stretched past its recommended date, is not only wasteful but illogical.

“We’re spending billions and billions on medication and medication turnover,” he says. “If a drug has expired, you’ve got to throw it away, it goes into a landfill, and you have to get a new prescription. This could potentially have a significant impact on cost.”

Planned obsolescence?

Some believe that drug manufacturers want consumers to keep buying medicine to make more money, and these same manufacturers are also responsible for creating the idea that medicine is ineffective and even harmful after the date on the bottle passes.

Others may say it’s just the manufacturer's way of letting the consumer know how long their medicine is supposed to be its most potent.

In a separate study conducted by both the Department of Defense and the Federal Drug Administration, it was learned that out of 3,005 drugs tested, 2,650 (88 percent) maintained the same level of potency, and upheld their strength for an average of 66 months after the expiration date.

There were also some drugs tested that didn’t lose any potency at all, and remained just as strong as the day they were released from the pharmacy. 

Colorado physician Dr. Phil Mohler says using expired prescription drugs is far better than a person going without their medicine because it’s outdated.

And for those who are more cash-strapped than others, using drugs past their expiration date may be their only choice to stay medicated and follow their doctor’s orders.

“In a situation where there are no reasonable alternatives, particularly if the expiration date is within the last few months, [or] years, it may be reasonable to use the expired drug,” said Mohler in a written statement.

“The risk of adverse effects related to the drug being out of date are small and  there is a high likelihood that the medication will be effective," he said.

As always, research studies should be taken only as general information. Future studies may come to other conclusions and general findings may not apply in a specific instance. All of which is a way of saying, talk to your doctor before making a decision about using drugs past their expiration date. 

We've all had the experience of signing up for a credit report, anti-virus tool or "free sample" of some useless product, only to find the charge shows up every month on our credit card.

Now consumers in California and elsewhere are complaining that the same thing is happening with their CVS prescriptions -- the prescriptions are being refilled without their permission.

The allegations came to light in a series of articles by Los Angeles Times consumer reporter David Lazarus. One of the consumers Lazarus found, George Engelke, 76, was on vacation in Montana when he had a CVS store there fill two prescriptions. After returning to California, Engelke was puzzled when the Montana CVS called and said they'd sent refills of the two prescriptions to his vacation address in Montana. 

A mistake? Doesn't seem likely to Engelke.

"It seems like a blatant attempt to sell more medicine and charge the insurance company for it," Engelke said.

Similar complaints

Since his first story appeared, Lazarus has heard similar complaints from dozens of CVS customers in California and elsewhere. He also came across some confidential emails from a CVS supervisor in New Jersey instructing pharmacists there to refill prescriptions and submit claims to insurers without consumers' approval.

CVS admitted the emails were sent but said they were an error by the supervisor and claimed the emails only went to East Coast pharmacies, which could explain why Maricar of Bellerose Manor, NY, wrote to us last month about her experience with CVS. 

Maricar said her local pharmacy closed and sent her prescriptions to a nearby CVS. She, however, chose to take her business to a different pharmacy, only to encounter difficulties getting her prescriptions filled a few months later because the insurance company said they had already been filled.

"I called the insurance to learn that CVS filled it without my authorization. First and foremost, why are they filling a prescription without my asking them to? Is this legal? Second, what are they doing with said prescription since I didn't ask for it to be filled?" Maricar asked.

CVS insists the company does not condone such practices.

"It is not our policy to refill prescriptions without a patient's authorization," CVS spokesman Mike DeAngelis told the Times.

Piling up

Nevertheless, complaints about refills are piling up. Lori of Waukesha, Wis., found it hard to cancel her refill, as she recounted in an April ConsumerAffairs posting. 

"I asked my CVS pharmacy to cancel an automatic refill. When I went in for another prescription, the pharmacist added the cancelled refill to my total," she said. "Being sick, I didn't hear him and just thought I was getting the two items prescribed for a viral infection. Having opened the bag at home, noticing the mistake and calling them back, he told me they couldn't take it back even though refill bag was still sealed. This was their mistake not mine and now I have a prescription I don't want and it's costly."

In the latest development, the Times reports today that the U.S. Justice Department's civil fraud division is investigating claims that CVS Caremark wrongly refilled prescriptions and billed insurers without the knowledge or the approval of its customers. The probe is likely to focus primarily on allegations of Medicare fraud.

State agencies may also become involved in the investigations.

A few years ago college students found themselves saddled with mounting credit card debt, in addition to student loans. Credit card companies eagerly sponsored campus events, signing up students for credit cards, even though they had no source of income besides Mom and Dad.

The CARD Act, signed into law in 2009, went a long way to end those activities. Researchers at East Carolina University say parents should do more to help their college-bound children make sensible financial decisions.

The researchers analyzed data for 413 undergraduate students from seven different American universities, who took part in the College Student Financial Literacy Survey. Through an online survey, the authors examined credit card debt and number of credit cards owned.

Parental influence

In particular, the researchers honed in on students’ interactions with their parents when discussing finances as a family, their years of work experience, financial knowledge of credit cards, loans, insurance, and personal finance. They also asked how comfortable they were making only the minimum payment each month.

Overall, nearly two-thirds of students had a credit card, and nearly a third had more than one. Gender and class year were the top predictors of the number of credit cards students had, followed by parents who argued about finances.

Specifically, juniors and seniors were nearly four times more likely to report having two or more cards, and females were more than twice as likely as males to have two or more cards.

Arguing parents a bad sign

Students who reported that their parents argued about finances were also twice as likely to have more than two cards than those who reported having parents who did not argue about finances. In addition, those comfortable with minimum payments were also more likely to have more cards.

In terms of debt, those students who had two or more credit cards were nearly three times more likely to report having credit card debt over $500. Parental influence, and parental arguments about finances specifically, was also one of the top predictors of a student having a credit card debt over $500.

“It is clear that the influence of parents cannot be underplayed,” the authors concluded. “Researchers, educators and policymakers should work with, and include, parents in finding effective ways to increase the positive financial behaviors of college students, particularly those behaviors related to credit card use. We need to help students and parents learn financial skills and establish healthy financial attitudes at earlier ages to prevent poor financial habits from taking root.”

Some good news

A survey of college students by CreditDonkey, released last month, is more encouraging, finding that most college students have improved their credit card performance In fact, it found that 30 percent of college students polled said they did not have a single credit card.

A major problem with credit cards is that consumers often run up their balances, intending to pay them down in the future, but find they are never able to do so. As a result, they suddenly find themselves with balances of several thousand dollars and, at credit cards' high interest rates, it is all they can do to keep up with the interest payments.

The CreditDonkey survey suggests college students have yet to fall into that trap. When asked how much they pay on their credit card bill each month, a surprising 42 percent said they paid off the balance each month. Only 17 percent confessed to paying just the minimum each month.

So, you think that guy on TV who says his company will get you out of debt will really help? Guess again.

As few as one in 10 unwary consumers who are lured into so-called “debt settlement” schemes actually end up debt free in the promised period of time, according to a major new consumer alert issued by the nonprofit National Association of Consumer Bankruptcy Attorneys (NACBA). That, the NACBA says, makes these risky schemes the No. 1 threat facing America’s most deeply indebted consumers.

Getting in deeper

The alert notes that already struggling with home foreclosures, harsh bank and credit card fees, and other major financial challenges, the most deeply indebted consumers are now falling victim to a major new threat – so-called ‘debt settlement’ schemes that promise to make clients ’debt free’ in a relatively short period of time.

Unfortunately, most consumers who pursue debt settlement services find themselves facing not relief but even steeper financial losses. Even the industry acknowledges -- though not in its ever-present radio, TV and online advertising -- that debt settlement schemes fail to work for about two thirds of clients.

Federal and state officials put the debt-settlement success rate even lower -- at about one in 10 cases -- meaning that the vast majority of unwary and uninformed consumers end up with more red ink, not the promised debt-free outcome.”

Robust industry

The private debt-settlement industry remains robust. More than 500,000 people with approximately $15 billion of debt are currently enrolled in debt settlement programs, according to industry estimates. And there is room for further growth: One in eight U.S. households has more than $10,000 in credit card debt.

“Based on what bankruptcy attorneys are seeing across the nation, we believe that debt settlement schemes are the number one problem facing America’s most deeply indebted consumers today,” says Durham, NC, bankruptcy attorney Ed Boltz, NACBA Board member and incoming NACBA president. “Bombarded with slick radio and Web advertising falsely promising a smooth road to being debt free in a short period of time, these companies prey on the most desperate victims of the economic downturn. These particularly vulnerable consumers usually end up getting sued, stuck with outrageous fees, more deeply in debt, and far worse off in terms of their credit score.”

Earlier this year, NACBA focused national attention on the “student debt bomb,” which then was identified as the fastest growing consumer debt problem being handled by consumer bankruptcy attorneys.

Horror stories

“I went with Freedom Debt and ended up getting sued by three of the credit companies,” writes Randy of Palm Desert, CA,  in a ConsumerAffairs post. “It cost me about $900.00 out of pocket. After talking to the companies, they would have worked out a deal with me if I had not used Freedom Debt. It has been the worst experience of my life. I have money to pay my debt, but they will not contact the creditor. You can do it yourself and not have to pay almost $2,000.00 before they say they will start. Save the money and do it yourself.”

“They (Debt relief Network) have about $1000 of my money, which they deduct from my bank account; and I cannot reach them,” Angela of Guadalupita, NM, tells ConsumerAffairs. “They stopped taking money, but their phone line is a recording and I have been trying to reach them without success. I do not want to be a client anymore, and I want my money back! I am getting ready to get my car repossessed, and my bills are piling up. Creditors call every minute of the day.”

Alert highlights

The NACBA consumer alert also notes:

• There is now across-the-board agreement on the danger that debt settlement schemes pose to consumers. The Better Business Bureau has designated debt settlement as an “inherently problematic business.” Similarly, the New York City Department of Consumer Affairs called debt settlement “the single greatest consumer fraud of the year.” Across the country, the U.S. Government Accountability Office (GAO), the Federal Trade Commission, 41 state attorneys general, consumer and legal services entities, and consumer bankruptcy attorneys have all uncovered substantial evidence of abuses by a wide range of debt settlement companies.
• Debt settlement schemes encourage consumers to default on their debts. Because creditors frequently will not negotiate reduced balances with consumers who are still current on their bills, debt settlement companies often instruct their clients to stop making monthly payments, explaining that they will negotiate a settlement with funds the client has paid in lieu of their monthly debt repayments. Once the client defaults, he or she faces fines, penalties, higher interest rates, and are subjected to increasingly aggressive debt-collection efforts including litigation and wage garnishment. Consequently, consumers often find themselves worse off than when the process of debt settlement began: They are deeper in debt, with their credit scores severely harmed.
• “Self help” may be the best answer for smaller debt burdens. If you have just a single debt that you are having trouble paying (such as a single credit card debt) and you have cash on hand that can be used to settle the debt, you may be able to negotiate favorable settlement terms with the creditor yourself. Creditors typically require anywhere from 25 to 70 percent on the dollar to settle a debt so you will need that much cash for a successful offer. Be sure to get an explicit written document from the creditor spelling out the terms of the debt settlement and relieving you of any future liability. Also be prepared to pay income taxes on any of the forgiven debt.

Red flags

NACBA urges consumers to steer clear of any companies that:

• Make promises that unsecured debts can be paid off for pennies on the dollar. There is no guarantee that any creditor will accept partial payment of a legitimate debt. Your best bet is to contact the creditor directly as soon as you have problems making payments.
• Require substantial monthly service fees and demand payment of a percentage of what they’ve supposedly saved you. Most debt settlement companies charge hefty fees for their services, including a fee to establish the account with the debt negotiator, a monthly service fee, and a final fee-- a percentage of the money you’ve allegedly saved.
• Tell you to stop making payments or to stop communicating with your creditors. If you stop making payments on a credit card or other debts, expect late fees and interest to be added to the amount you owe each month. If you exceed your credit limit, expect additional fees and charges to be added. Your credit score will also suffer as a result of not making payments.
• Suggest that there is only a small likelihood that you will be sued by creditors. In fact, this is a likely outcome. Signing up with a debt settlement company makes it more likely that creditors will accelerate collection efforts against you. Creditors have the right to sue you to recover the money you owe. And sometimes when creditors win a lawsuit, they have the right to garnish your wages or put a lien on your home.
• State that they can remove accurate negative information from your credit report. No company or person can remove negative information from your credit report that is accurate and timely.

“Many different kinds of services claim to help people with debt problems,” Boltz points out. “The truth is that no single solution works in all cases. Bankruptcy is an option that makes sense for some consumers, but it’s not for everyone. For example, the National Association of Consumer Bankruptcy Attorneys and its individual consumer bankruptcy attorney members do not encourage every person who looks at bankruptcy to enter into it. What makes sense for each consumer will depend on their individual circumstances. We encourage everyone to get the facts and do what makes the most sense in their situation.”

Last year most consumers waited for Black Friday to start their holiday shopping, looking extra hard for bargains that would stretch gift budgets. This year retailers are hoping to lure them into shopping earlier and spending more.

Already major retailers have rolled out promotions and bargains. Best Buy and Target have pledged to match prices of a handful of online competitors, including Amazon.com.

The National Retail Federation (NRF), relying on a survey conducted by BIGinsight, predicts the average holiday shopper will spend $749.51 on gifts, décor, greeting cards and more -- up slightly from the $740.57 they spent last year. NRF is forecasting holiday sales will increase 4.1 percent to $586.1 billion.

Attracting bargain-conscious consumers

"We’ve seen this pattern of cautious optimism all year and despite the challenges that still exist in our economy, it looks as if consumers are eager to celebrate with friends and family,” said NRF President and CEO Matthew Shay. “As the most promotional time of the year, retailers will continue to look for ways to stand out, specifically with attractive deals on toys, electronics and apparel, even well before the ‘official’ start of the holiday shopping season -- Black Friday and Cyber Monday.”

According to the survey, the biggest portion of shoppers’ budgets this year will go towards gifts for family members with the average person planning to spend $421.82 on children, parents, aunt, uncles and other family members. Additionally, people will spend $75.13 on friends, $23.48 on co-workers and $28.13 on others, such as pets and community members.

Consumers will also spend $100.76 on food and candy, $51.99 on decorations, $28.66 on greeting cards and $19.55 on flowers. Total spending on holiday décor will reach $6.9 billion, the survey predicts. But with all that spending, consumers will be focused on the best deals.

Economy still taking a toll

“More than half of Americans this holiday season will feel the impact of the economy and will compensate by doing what they’ve been doing for several years -- looking for ways to cut any corners, comparative shop online and in stores more often, and even planning to travel less or not at all,” said Shay.

For that reason, consumers say stores that offer the best deals will get their dollars. Thirty-six percent said the most important factor in deciding where to shop are offers for sales and discounts, along with 16.1 percent who say the most important factor is selection of merchandise and 13.7 percent who say it’s quality of merchandise.

Gift cards top wish list

And what will consumers be shopping for this year? The usual suspects top the list in the survey: clothing, DVDs and electronics. But six in 10 consumers said this year they would prefer to receive a gift card, so they could buy whatever they want.

And some are not waiting to receive a gift card but buying for themselves while they are out shopping for others. The survey finds “self-gift,” particularly among the young, is a growing holiday trend.

“It looks like young adults have the ‘one for you two for me’ mentality about the holiday season this year, which is surprising given that this is also the age group that typically doesn’t have the income or ability to splurge,” said BIGinsight Consumer Insights Director Pam Goodfellow. “What isn’t surprising is that retailers’ holiday promotions continue to strike a chord with this age group, especially with promotions surrounding popular electronics and apparel items.”

Dream On Me of South Plainfield, NJ, is recalling about 560 Happy Swing II infant swings.

The opening between the tray and seat or the grab bar and seat can allow a child’s body to pass through and become entrapped at the neck, posing a strangulation hazard to young children if the belt is not engaged. There have been no reports of incidents or injuries.

The Happy Swing II is a fabric infant swing that comes in red and green with a tray and grab bar attachment. The model/style number included in the recall is “432” and is printed on a label on the frame of the swing. The fabric swing sits on a triangular frame and is battery operated.

The swings, made in China, were sold at juvenile products stores and CSN stores nationwide and online at Wayfair and Amazon.com from October 2010 through September 2012 for between about $80 and $130.

Consumers should stop using the recalled infant swings immediately and contact Dream On Me for a replacement product. Consumers will have a choice between a free replacement swing or a Melody Musical baby walker.

For additional information, consumers may contact Dream On Me toll-free at (877) 201-4317 between 9 a.m. and 5 p.m. ET Monday through Friday.

Fewer people bought homes last month but Realtors say that was because there were fewer for sale. Existing home sales dropped 1.7 percent in September from August but rose 11 percent over September 2011, according to the National Association of Realtors (NAR).

"Despite occasional month-to-month setbacks, we're experiencing a genuine recovery," said NAR chief economist Lawrence Yun. "More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West."

Part of the reason for Yun's optimism is the decline in the number of homes on the market. With fewer homes to choose from, fewer consumers bought.

Inventory is down

Total housing inventory at the end September fell 3.3 percent -- to 2.32 million existing homes available for sale, which represents a 5.9-month supply at the current sales pace, down from a 6.0-month supply in August. Listed inventory is 20.0 percent below a year ago when there was an 8.1-month supply.

"The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production," Yun said.

Prices were, indeed, higher. The national median existing-home price for all housing types was $183,900 in September, up 11.3 percent from a year ago. The last time there were seven consecutive monthly year-over-year increases was from November 2005 to May 2006 -- at the height of the housing boom.

Distressed sales rise

Distressed homes -- foreclosures and short sales sold at deep discounts --accounted for 24 percent of September sales, versus 22 percent in August. A year ago they accounted for 30 percent of home sales.

The median time on market was 70 days in September, unchanged from August. Thirty-two percent of homes sold in September were on the market for less than a month, while 19 percent were on the market for six months or longer.

All-cash sales were 28 percent of transactions in September, compared with 27 percent in August. That suggests investors are still very active in the real estate market since it is mostly investors who pay with cash.

Dream On Me of South Plainfield, NJ, is recalling about 90 Bistro high chairs.

The front openings between the tray and seat bottom and on the side openings of the high chair between the armrest and seat bottom can allow a child's body to pass through and become entrapped at the neck. This poses a strangulation hazard to young children if the belt is not engaged. In addition, exposed springs between the seat and armrest on both sides of the high chair can create a pinch hazard to the child.

There are no reports of incidents or injuries.

This recall involves all Bistro high chairs with model/style number "255" printed on a tag attached to the back of the seat. The high chair was sold in blue or pink. The fabric on the seat has a polka-dot design and "Dream On Me" is printed on a label attached to the front of the white tray. The recalled high chair was manufactured in July 2011 and has a date code printed on a label on the back of the chair.

The chairs, manufactured in China, were sold at Americas Kids, Kid Pro USA and independent juvenile specialty stores and online at Toysrus.com between November 2011 and September 2012 for about $75.

Consumers should immediately stop using the recalled high chair and contact Dream On Me Inc. for instructions on receiving a free replacement high chair.

Consumers may contact Dream On Me Inc. toll-free at (877) 201-4317 between 9 a.m. and 5 p.m. ET Monday through Friday.

Millions of Americans take prescription medicine. Millions of Americans get colds and flu. If they take prescriptions containing acetaminophen and then take a cold remedy containing acetaminophen, that can spell trouble.

Chances are, if you take a pill, you take acetaminophen. It's the most common drug ingredient in America.

It is found in more than 600 different medicines, including prescription and over-the-counter (OTC) pain relievers, fever reducers, sleep aids and numerous cough, cold and flu medicines. It is safe and effective when used as directed, but there is a limit to how much can be taken in one day. Taking more than directed is an overdose and can lead to liver damage.

Safety campaign

With the start of cold season, the Acetaminophen Awareness Coalition is launching a nationwide initiative urging consumers to double-check their medicine labels so they don't double up on medicines that contain acetaminophen during the cold and flu season. It's easy to do.

Each year, Americans catch an estimated one billion colds, and as many as 20 percent get the flu. Seven in 10 consumers use over-the-counter medicines, many of which contain acetaminophen, to treat their symptoms.

"Adults typically suffer from two to four colds per year, and children six to eight colds. During cold and flu season, consumers who are taking a prescription medicine that contains acetaminophen should also check the labels of any over-the-counter medicine they take," Dr. Angela Golden, President of the American Academy of Nurse Practitioners, said. "Many cold and flu medicines contain acetaminophen, so I remind my patients to always double-check the label so they don't exceed the daily limit when taking multiple medicines."

Safety steps

When taking medicines for cough, cold or flu this coming season, consumers should follow these four simple acetaminophen safety steps:

1. Know if medicines contain acetaminophen, which is in bold type or highlighted in the "active ingredients" section of over-the-counter medicine labels and sometimes listed as "APAP" or "acetam" on prescription labels.
2. Never take two medicines that contain acetaminophen at the same time.
3. Always read and follow the medicine label.
4. Ask your healthcare provider or a pharmacist if you have questions about dosing instructions or medicines that contain acetaminophen.

After facing such things as IEDs and car bombs while serving overseas, the last thing a U.S. servicemember needs upon returning home is a hassle with a student loan.

But according to a newly-released report from the Consumer Financial Protection Bureau (CFPB), that's exactly what a lot of them are facing. The report, “The Next Front? Student Loan Servicing and the Cost to Our Men and Women in Uniform,” describes servicemember complaints regarding the difficulties they have accessing the protections granted to them under federal rules.

The hurdles they describe range from not being able to get the information they need, to being met with roadblocks when they do try to pursue their benefits.

“We are concerned that our men and women in uniform are not being given the opportunities they have earned under federal law,” said CFPB Director Richard Cordray. “For all the service our military members give us, the least we can do is protect them from this kind of disservice.”

Paying off loans

Many servicemembers have student loan debt, including both federal and private student loans. The average cumulative amount of student loan debt for active-duty servicemembers graduating from college in 2008 was about $26,000, according to the National Center for Education Statistics.

Student loan default can be particularly troubling for active-duty servicemembers because it can affect their security clearance and military career. Burdensome debt can also be distracting and difficult to deal with, especially if serving overseas.

Congress put in place laws and programs to grant additional protections to servicemembers with student loan debt. The Servicemembers Civil Relief Act (SCRA) gives an interest rate reduction to men and women in uniform who acquired student loan debt before they went on active duty.

The Income-Based Repayment program reduces monthly payments based on income and family size. And, among other choices, there are special loan deferral programs, principal reduction options on certain loans for service in hostile areas, and loan forgiveness on certain federal loans for public service.

Myriad problems

The report, based largely on complaints filed with the CFPB, as well as input from military borrowers at dozens of town halls and forums across the country, looks at how servicemembers are handling both their federal and private student loans.

It considers servicemembers who entered the military with debt and those who acquired it while serving. The report found that from trying to get good information to trying to take advantage of the benefits, servicemembers said they run into trouble. Specifically, servicemembers say that they:

• Receive incomplete or inaccurate information: A common theme the CFPB heard from servicemembers was that they relied on their loan servicers to properly inform them of their repayment options -- but that servicers were not providing clear and accurate information. According to servicemembers, this was particularly true for military deferment and forbearance. By relying on this information and choosing less favorable repayment plans, servicemembers may be setting themselves up for tens of thousands of dollars in excess debt over the life of the loan.
• Have difficulty navigating the system of benefits: The patchwork of options for military student loan borrowers can be confusing. Some laws and rules apply only to federal loans. Some benefits have specific eligibility requirements or conditions attached. Some require loan consolidation which might exclude borrowers from other protections. And other options vary greatly depending on the private student loan lender. Servicemembers who have multiple loans from multiple lenders say that it can be particularly difficult figuring out which loans are eligible for benefits.
• Face roadblocks when they try to get their benefits: Even if they navigate the maze of options, servicemembers report that they are often met with loan servicer roadblocks. For example, the CFPB has heard from military borrowers, including those in combat zones, who have been denied interest-rate protections because they failed to resubmit unnecessary paperwork. These kinds of servicing obstacles prevent servicemembers from taking advantage of the full range of protections they have earned through their service to this country.

The problems that servicemembers report are typically on top of the problems civilian borrowers report in loan servicing as outlined in the CFPB Student Loan Ombudsman’s Annual Report issued this week. That report -- which focuses specifically on private student loans -- described complaints received from private student loan borrowers, including surprises, customer service runarounds, and dead-end loan terms.

Education program

The CFPB is teaming up with the Department of Defense to create better awareness of the rights and options for servicemember student loan borrowers. The partnership will be multi-pronged, including Judge Advocate Generals, Education Service Officers and working with personal financial counselors on military bases.

CFPB staff, for example, will be visiting the Judge Advocate General’s Legal Center and School in Charlottesville, VA, to train legal assistance attorneys from all branches of the military about issues raised in the report, and to ensure they know about repayment options for servicemembers.

In an effort to educate military consumers and the advisers seeking to assist them, the CFPB has developed a guide for servicemembers with student loans with information on the various student loan repayment options, as well as frequently asked questions commonly posed by military student loan borrowers at Ask CFPB.

Servicemembers can also use the CFPB’s online Web tool, the Student Debt Repayment Assistant, to navigate their options.

More information about how the CFPB is helping servicemembers is available here.