Current Events in December 2012

Browse Current Events by year

2012

Browse Current Events by month

Get trending consumer news and recalls

    By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. Unsubscribe at any time.

    Thanks for subscribing.

    You have successfully subscribed to our newsletter! Enjoy reading our tips and recommendations.

    Food industry steps up production of gluten-free products

    But if you don't have celiac disease there are no benefits

    On store shelves you now find a gluten-free version of almost every food product. The Institute of Food Technologists (IFT) says the food industry has spent the last few years on that project.

    Gluten is the protein found in wheat, rye, barley and spelt that gives dough its elasticity, helps it to rise, and keep its shape. It’s because of gluten that baked goods have their characteristic texture, strength and crumb structure.

    However, in recent years doctors determined that people with celiac disease should avoid all gluten in their diets. According to the Mayo Clinic, People with celiac disease who eat foods containing gluten experience an immune reaction in their small intestines, causing damage to the inner surface of the small intestine and an inability to absorb certain nutrients.

    Celiac disease is more common that you might think. An estimated 1 in 133 people are afflicted with celiac disease, and another 18 million Americans may be gluten-intolerant. That's why the industry has put such emphasis on coming up with gluten-free alternatives.

    Gluten-free challenges

    There are some challenges involved, according to IFT. Taking the gluten out of baked products can reduce volume and create a dry, crumbly, grainy texture that consumers find a turn-off.

    As an alternative, companies are using flour made from ancient grains like amaranth, millet, quinoa, sorghum, and teff, as well as brown rice, corn and tapioca starch. These formulations achieve optimal texture, flavor, appearance, and functionality in a variety of grain-based foods. Breads, tortillas, muffins, cereals, cookies, cakes, pasta, pizza, soups, and even soy sauce are now available to gluten-free consumers.

    Even though you now see more gluten-free products on store shelves, there's no reason to buy them if neither you nor anyone in your family suffers from celiac disease. They won't make you healthier or help you lose weight.

    No health benefits

    The Journal of the Academy of Nutrition and Dietetics says there is no benefit of a gluten-free diet for the average healthy adult. It disputes the perception that going gluten-free is an effective way to lose weight and may in fact lead to weight gain because of extra sugar and fat often added to gluten-free foods to improve taste.

    A gluten-free diet usually contains more fresh produce and that usually is a healthy improvement. If someone eats more varieties of vegetables and fruits and engages in portion control of other foods, then this type of gluten-free living may elicit health benefits, experts say.

    If you don't have celiac disease, gluten won't hurt you and, in fact, is a good source of fiber. If you have any questions or concerns, you should discuss them with your doctor.

    On store shelves you now find a gluten-free version of almost every food product. The Institute of Food Technologists (IFT)says the food industry has spent...

    Seven vehicles get Cars.com's 'Best of 2013' nod

    Two Honda models make the list

    If a new car or truck is in your future in the coming year, no doubt you've already started doing some research. Automotive site Cars.com has some more data for you to consider. It's just named seven vehicles as finalists for its “Best of 2013” designation.

    The nominees are the BMW 3-Series, Honda Accord, Honda CR-V, Ram 1500, Scion FR-S, Subaru BRZ and the Toyota Prius c.

    "Each year, automakers roll out upwards of 70 brand-new or redesigned cars," said Patrick Olsen, Cars.com's editor-in-chief. "From those, we choose the very best new or fully redesigned cars that represent change, innovation, forward thinking and a breath of fresh air."

    BMW 3 Series

    According to Cars.com, the new 3 series has made so many improvements in so many areas it has to be considered one of the best cars of the year. It points to more interior room, a new contemporary design, and a lot of power and performance under the hood.

    Honda Accord

    The Accord boasts admirable EPA mileage, has improved driving refinement and generous standard equipment. “This impressive redesign improves in a number of areas where its predecessor lacked,” Cars.com said.

    Honda CR-V

    The compact-crossover segment is packed with comfortable, competent cars, but Cars.com said no automaker blends those two attributes better than Honda has with its CR-V. Helping the CR-V earn a place on the list are its “edgy” styling, standard features, affordable prices and fuel-efficiency.

    Ram 1500

    There is no other segment more competitive and more significant than full-size half-ton pickups. But the judges said the new 1500 from Dodge offers class-leading fuel economy, a segment-exclusive 8-speed transmission, another exclusive airbag suspension and a vastly improved and more technologically advanced interior than they've ever had before.

    Scion FR-S/Subaru BRZ

    These two vehicles are being listed together because Cars.com says they are nearly identical from chassis to sheet-metal. According to the judges, the FR-S and BRZ sports cars provide a rate driving experience. “In a market dominated by the practical and the expensive, sports cars at this price alone deserve praise,” the judges said.

    Toyota Prius c

    This is a new model for 2013 and comes in smaller than the regular Prius. Cars.com describes it as a subcompact that achieves an EPA-estimated 50 mpg combined, at a price that is about $5,000 lower than the regular Prius. The judges also praised its smaller features, saying it is ideal for city driving.

    "There is no shortage of great cars on the market these days," said Olsen. "However, these seven cars, representing a variety of segments, buyers and lifestyles are what we consider to be the best of the best. Car shoppers can be assured that a Cars.com award nominee has our highest seal of approval and is a worthy investment."

    If a new car or truck is in your future in the coming year, no doubt you've already started doing some research. Automotive site Cars.com has some more dat...

    Feds to take closer look at student lenders

    CFPB examiners will ensure lenders are following the law

    Are the folks who make student loans on the up-and-up?

    A set of student lending examination procedures  to be used by examiners from the Consumer Financial Protection Bureau (CFPB) is designed to make sure they are.

    “For many borrowers, a student loan may be their first major financial decision,” said CFPB Director Richard Cordray. “With student debt topping a trillion dollars, we will be working to ensure consumers are treated fairly and lenders are held accountable.”

    Ensuring compliance

    The CFPB has the authority to supervise large banks, as well as nonbanks, that make private student loans, and the procedures released today may be used to examine both types of lenders. Examiners will be assessing whether student lenders have the appropriate processes in place to prevent harm to borrowers. Examiners will be looking to verify that lenders are complying with requirements of federal consumer financial law, including:

    • Using accurate, nondiscriminatory advertising or marketing: Examiners will evaluate marketing and advertising materials, such as mail and text messages, telephone solicitation scripts, and agreements and disclosures for the products and services to make sure the materials are not deceptive, misleading, or discriminatory.
    • Making appropriate disclosures: Examiners will assess whether the lender or service provider makes proper, clear disclosures about loan costs and terms at the time of the consumer’s application, loan approval, and loan disbursement as required under special rules for education lending.
    • Providing borrowers with accurate account information: Examiners will determine if the lender or service provider -- if required to do so -- supplies the borrower with periodic statements that include such information as monthly payment requirements, charges, fees and interest rate changes.
    • Handling borrower inquiries and complaints: Examiners will determine if a lender or service provider has adequate and effective channels to receive customer questions and complaints. Examiners will also evaluate the systems, procedures and policies used by the company for tracking, handling, investigating and resolving consumer inquiries, disputes, and complaints.

    Exam procedure

    In general, CFPB supervision activities will include gathering reports from and conducting examinations of supervised entities. The examination process will be a process of pre-examination scoping and review of information, data analysis, onsite examinations, and regular communication with supervised entities, as well as follow-up monitoring. When necessary, examiners will coordinate and work closely with the CFPB’s enforcement staff to take appropriate enforcement actions to address harm to consumers.

    The CFPB has also recently published reports on the student loan marketplace, the Annual Report of the CFPB Student Loan Ombudsman about private student loan complaints, and The Next Front, which addresses student loan servicing issues faced by military families.

    The CFPB is working to arm consumers with information to make better financial decisions about paying for college. As part of its Know Before You Owe  student loan initiative, the CFPB worked with the Department of Education on a “financial aid shopping sheet.” More than 500 colleges have already agreed to use this format to improve information for students and families when making decisions about student loans.

    New consumer tools

    The Bureau is also developing a suite of new consumer tools, including:

    • Guides for students and families shopping for student loans and managing money while in college;
    • A comparison tool to help students and their families compare financial aid offers from multiple schools; and
    • A new Web tool to help student loan borrowers navigate their repayment options.

    Consumers can take advantage of these tools today and provide feedback as the CFPB adds new features.

    Are the folks who make student loans on the up-and-up? A set of student lending examination procedures to be used by examiners from the Consumer Financia...

    Get trending consumer news and recalls

      By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. Unsubscribe at any time.

      Thanks for subscribing.

      You have successfully subscribed to our newsletter! Enjoy reading our tips and recommendations.

      Is your smart TV watching you?

      Security firm claims Samsung devices can be hacked

      It sounds creepy to consider, but a security firm claims to have exploited vulnerabilities in all 11 of Samsung smart TV models, allowing it to take control of the devices' microphones and cameras.

      A smart TV is a television set that is made for integration with the Internet. The devices allow more seamless viewing of Internet TV and streaming content, along with traditional broadcast television programming.

      The company, ReVuln, says if it has figured out how to get access to consumers' TV sets to spy on them, hackers have probably figured it out as well.

      But it might not be so simple and if a Samsung smart TV is sitting in your den, you don't have to assume you are being watched. In order for a hacker to get control of the device, they must first hack into the network the TV is using and know the IP address the device is using.

      The TVs are vulnerable because they lack the same security features that protect computers connected to the Internet. Last year we reported that hackers had developed malware and worms that can infect your computer and take control of your Webcam. When you least expect it, your Webcam could be watching you.

      Once in control of your PC, hackers can turn any attached camera on and off at will. ReVuln warns the same risk applies to Samsung's smart TVs. The company produced the video below to show how it is done.

      ReVuln - The TV is watching you from ReVuln on Vimeo.

      It sounds creepy to consider, but a security firm claims to have exploited vulnerabilities in all 11 of Samsung smart TV models, allowing it to take contro...

      Privacy: tips for protecting your personal information

      Make sure you know what happens with all that info that's out there

      Every day you share personal information about yourself with others. It’s so routine that you may not even realize you’re doing it. You may write a check at the grocery store, charge tickets to a ball game, rent a car, mail your tax returns, buy a gift online, call home on your cell phone, schedule a doctor’s appointment or apply for a credit card.

      Each transaction requires you to share personal information: your bank and credit card account numbers; your income; your Social Security number (SSN); or your name, address, and phone numbers.

      It’s important to find out what happens to the personal information you and your children provide to companies, marketers, and government agencies. These organizations may use your information simply to process your order; to tell you about products, services, or promotions; or to share with others.

      Scoundrels abound

      And then there are unscrupulous individuals, like identity thieves, who want your information to commit fraud. Identity theft -- the fastest-growing white-collar crime in America -- occurs when someone steals your personal identifying information, like your SSN, birth date, or mother’s maiden name, to open new charge accounts, order merchandise, or borrow money.

      Consumers targeted by identity thieves usually don’t know they’ve been victimized. But when the fraudsters fail to pay the bills or repay the loans, collection agencies begin pursuing the consumers to cover debts they didn’t even know they had.

      Staying safe

      The Federal Trade Commission (FTC) encourages you to make sure your transactions -- online and off -- are secure and your personal information is protected. The FTC offers these tips to help you manage your personal information wisely, and to help minimize its misuse:

      • Before you reveal any personally identifying information, find out how it will be used and whether it will be shared with others. Ask about company’s privacy policy: Will you have a choice about the use of your information; can you choose to have it kept confidential?
      • Read the privacy policy on any website directed to children. Websites directed to children or that knowingly collect information from kids under 13 must post a notice of their information collection practices.
      • Put passwords on your all your accounts, including your credit card account, and your bank and phone accounts. Avoid using easily available information -- like your mother’s maiden name, your birth date, the last four digits of your SSN, or your phone number -- or obvious choices, like a series of consecutive numbers or your hometown football team.
      • Minimize the identification information and the number of cards you carry to what you’ll actually need. Don’t put all your identifying information in one holder in your purse, briefcase, or backpack.
      • Keep items with personal information in a safe place. When you discard receipts, copies of credit applications, insurance forms, physician statements, bank checks and statements, expired charge cards, credit offers you get in the mail, and mailing labels from magazines, tear or shred them. That will help thwart any identity thief who may pick through your trash or recycling bins to capture your personal information.
      • Order a copy of your credit report. Make sure it’s accurate and includes only those activities you’ve authorized. Each of the nationwide consumer reporting companies -- Equifax, Experian, and TransUnion -- are required to provide you with a free copy of your credit report, at your request, once every 12 months.

      To order your free annual report from one or all national consumer reporting companies, visit www.annualcreditreport.com, call toll-free 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to:

      Annual Credit Report Request Service

      P.O. Box 105281

      Atlanta, GA 30348-5281

      Every day you share personal information about yourself with others. It’s so routine that you may not even realize you’re doing it. You may write a check a...

      5-hour Energy stops 'deceptive' Web ad

      CSPI recommends consumers avoid product pending FDA investigation into deaths

      5-hour Energy -- the controversial caffeinated supplement drink under federal scrutiny for its reported role in 13 deaths -- has at least temporarily stopped running a Web-based video ad that the Center for Science in the Public Interest (CSPI) said misled the public about the nonprofit watchdog group's stance on the product's safety.

      Lawyers for the Farmington Hills, MI-based manufacturer of 5-hour Energy say the ad will remain down while the company "research[es] the legal issues further."

      Misleading quote

      The ad in question featured a quotation from Time magazine in which CSPI executive director Michael F. Jacobson answered a question about whether it is possible to die from caffeine. "It's highly unlikely," Jacobson told Time. "Someone would really have to make an effort to consume 40 or so 200-mg caffeine tablets." CSPI told 5-hour Energy that its use of that quote in its ad gave the false impression that Jacobson or CSPI endorsed the product.

      In fact, CSPI does have concern about 5-hour Energy, which contains far more than just caffeine. It also contains citicoline, tyrosine, phenylalanine, taurine, malic acid, glucuronolactone, unspecified natural and artificial flavors, the artificial sweetener sucralose, potassium sorbate, and sodium benzoate.

      "People have been drinking coffee and tea for millennia," said Jacobson. "People have been consuming 5-hour Energy only since 2004. Considering that the FDA is investigating reports of heart attacks, convulsions, and deaths associated with the product, we recommend people not consume 5-hour Energy until the FDA gets to the bottom of the problems."

      The company is also under investigation by the New York Attorney General's office, and Representative Edward Markey (D-MA) recently called for a Federal Trade Commission probe into the advertising for 5-hour Energy and other energy drinks.

      5-hour Energy -- the controversial caffeinated supplement drink under federal scrutiny for its reported role in 13 deaths -- has at least temporarily stop ...

      Anti-stalking app measure advances in U.S. Senate

      Would criminalize stalking apps for smartphones

      The Location Protection Act of 2012, better known as the Stalking Apps Bill, is headed for the floor of the U.S. Senate where it could be enacted into law. It cleared the Senate Judiciary Committee on a bi-partisan vote, suggesting chances of passage are good.

      The measure would criminalize stalking apps for smartphones. The apps are designed to help friends keep up with other friends' whereabouts. Critics, however, charge that stalkers can use them to follow their victims.

      Last week a report by the Federal Trade Commission found that some apps for children were transmitting location information to third parties without the parents' permission. These would be illegal should the measure become law.

      Closes loopholes

      Sen. Al Franken (D-MN), who drafted the bill, says the legislation closes legal loopholes by requiring all companies to get customers' permission before collecting their location data or sharing it with third parties. It also contains targeted provisions to protect against stalking apps.

      "I believe that Americans have the fundamental right to control who can track their location, and whether or not that information can be given to third parties," Franken said. "But right now, companies -- some legitimate, some sleazy -- are collecting your or your child's location and selling it to ad companies or who knows who else. Passing my bill out of committee means we're one step closer to ending this practice and ensuring people's privacy."

      Franken pushed the legislation over concern that the technological precision of GPS could put some consumers at risk.

      Puts onus on companies

      "Companies aren't protecting the information the way they should,” Franken said. “Half of apps give out location information to third parties without users' knowledge.”

      Franken also claims that a few developers are actually producing apps specifically designed to help abusers stalk their victims. The measure requires companies to get a customer's permission before collecting his or her location data or sharing it with non-governmental third parties.

      It also raises awareness and helps investigations of GPS stalking while making it a crime to operate intentionally a stalking application to facilitate stalking.

      With the fiscal cliff dominating lawmakers' attention in the lame duck session, it appears certain that Congressional action will have to wait until next year.

      The Location Protection Act of 2012, better known as the Stalking Apps Bill, is headed for the floor of the U.S. Senate where it could be enacted into law....

      Why you should be suspicious of government logos

      Pretending to be government-sanctioned is a scammer's favorite ruse

      You've seen the Internet ads. They feature President Obama's smiling face or the seal of a federal agency, suggesting the company making the offer has official sanction.

      They don't, and the Consumer Financial Protection Bureau (CFPB) is urging consumers not to fall for this blatant scam.

      “No, really. Just because something has a government logo on it doesn’t mean that it’s legitimate,” the agency warns on its website.

      Two cases

      As a case in point, the CFPB points to enforcement action is has launched against two mortgage modification operations it accuses of ripping off struggling homeowners. The Websites, emails and other promotional materials bear government agency logos, letterhead or other markings that could mislead a consumer into thinking these services are associated with government agencies.

      The government claims these two companies took in more than $10 million by charging consumers for services that falsely promised to prevent foreclosures or renegotiate troubled mortgages.

      “We are taking on schemes that prey on consumers who are struggling to pay their mortgages or facing foreclosure,” said CFPB Director Richard Cordray. “We are especially concerned with those who misrepresent government programs or Websites to divert distressed homeowners from needed assistance.”

      Both firms based in California

      The CFPB says it asked U.S. District Court Judges in California halt both operations, the Gordon Law Firm and the National Legal Help Center. In addition, the court froze their assets while the CFPB moves forward with the cases.

      “It is absolutely unacceptable for unscrupulous con artists to take advantage of our nation’s housing crisis by targeting homeowners looking for help from TARP’s Home Affordable Modification Program,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “We thank the CFPB for protecting homeowners. SIGTARP will continue to stop these scams and educate homeowners that mortgage modifications through HAMP are free.”

      It's on the Internet, it must be true

      CFPB says consumers can protect themselves by not believing everything they see on the Internet. Just because a Website looks official does not mean that it is.

      Mortgage assistance and foreclosure relief scams are designed to take your money, the agency warns. They often use mail or email designed with emblems, logos and names intended to mimic government agencies or programs, lawyers or law firms, or legitimate creditors.

      Unfortunately, scammers are also constantly re-inventing new ways to scam struggling homeowners. So it’s not always easy to tell the difference between the scams and legitimate services. But there are a number of ways to help spot the fakes. Keep an eye out for red flags if a mortgage assistance or foreclosure relief scheme:

      • Tells you to stop making mortgage loan payments. Not making your mortgage loan payments could hurt your credit score and limit your options.
      • Tells you to start making payments to someone other than your servicer or lender.
      • Asks you to pay high fees upfront to receive services.
      • Promises to get you a loan modification.
      • Asks you to sign over title to your property.
      • Asks you to sign papers you do not understand.
      • Pressures you to sign papers immediately.

      You've seen the Internet ads. They feature President Obama's smiling face or the seal of a federal agency, suggesting the company making the offer has offi...

      Obama on marijuana: policy shift or smokescreen?

      Critics say the President is waiting to see which way the smoke blows

      President Obama's latest statements about marijuna are igniting sparks  around the country but some pro-pot groups say they shouldn't set the night on fire.

      In an interview to be broadcast tonight, President Obama tells ABC's Barbara Walters that, "It would not make sense for us to see a top priority as going after recreational [marijuana] users in states that have determined that it's legal."

      Last month voters in Colorado and Washington approved ballot initiatives legalizing marijuana for recreational use in those two states. But federal statutes still outlaw possession of the drug and the feds could take a hard-nosed approach to enforcement.

      Obama's comments may make it sound like the feds will be backing off in states where marijuana use is legal but the chairman of Marijuana Majority warns the whole thing may be a smoke screen.

      "The president's statement about not targeting individual marijuana users doesn't mark a shift in policy. The federal government rarely goes after individual users," said Tom Angell. "The real question is whether the Obama administration will try to prevent voter-approved marijuana sales systems from being enacted or if they will force individual users to buy marijuana from the black market, where much of the profits go to cartels and gangs that kill people."

      In fact, as Angell sees it, Obama is trying to straddle the fence on the issue, much as critics say he did with gay marriage and deficit-trimming during his first term.

      "The president also tries to unjustifiably pass the buck to Congress, claiming that there's not much he can do to change federal policy on marijuana because 'Congress has not yet changed the law,'" Angell said. "The fact is, the executive branch was granted the power to unilaterally reschedule marijuana when Congress passed the Controlled Substances Act in 1970.

      "The president should lead on this issue instead of deferring to Congress, a branch of government that he probably knows better than most isn't exactly prone to getting a whole lot done these days."

      While the issue is a little too hot for many lawmakers to handle, a bipartisan group of lawmakers introduced legislation in the U.S. House of Representatives that would force the federal government to stand aside and not enforce the federal laws regarding marijuana in those states.

      Blowing in the wind

      In the Senate, Sen. Patrick Leahy (D-Vt.) wrote yesterday to Gil Kerlikowske, director of the Office of National Drug Control Policy, asking how the feds intend to deal with states that have recently legalized marijuana possession.

      "What assurances can and will the administration give to state officials involved in the licensing of marijuana retailers that they will not face Federal criminal penalties for carrying out duties assigned to them under state law?" Leahy asked.

      "One positive thing to take away from this interview is that the president couched his opposition to marijuana legalization by saying he doesn't support it 'at this point,'" Angell noted. 'That could indicate his position on this issue may 'evolve' to catch up with the majority of voters who now support letting states set their own marijuana laws, not unlike how his position on marriage equality 'evolved' as it became clear the what direction the public was moving in."

      President Obama's latest statements about marijuna are igniting sparks  around the country but some pro-pot groups say they shouldn't set the night on...

      Scientists find antidepressant drug that works almost immediately

      Although the drug is still in its trial phase, researchers are excited about its potential

      According to the Centers for Disease Control and Prevention, about one in 10 adults in the United States report having depression, although experts say the numbers are higher since many people aren’t properly diagnosed.

      Fortunately for patients living with depression, there are several drugs on the market, but unfortunately, some of the medications don't work as fast as some doctors and patients would like.

      To help patients get faster and longer relief from antidepressants, the National Institute of Mental Health (NIMH) conducted research on the experimental drug AZD6765, which scientists believe could provide more immediate results for those suffering from depression, particularly those patients who haven’t responded well to other drugs or other types of mental therapy.

      The study consisted of 22 volunteers, all suffering from various forms of depression, and each person filled out a survey so researchers could determine what type of depression each person had.

      Researchers then gave half of the participants AZD6765 and the other half placebo and later in the study the two groups switched. Eventually, the placebo group started taking AZD6765 and the treatment group began taking placebo.

      The results showed that 32 percent of the participants had positive effects from the drug--with feelings of relief for up to 48 hours--while others reported relief only lasting 30 minutes.

      Glutamate blocker

      Experts say AZD6765  works because of its ability to prevent a chemical in the brain called glutamate from attaching itself to nerve cells, thus lowering the chances of depressive feelings ever developing.

      Other antidepressant drugs like ketamine are known to work quickly and in the same way, however AZD6765 was found to have fewer  side effects.

      In a previous and separate study, scientists learned those taking ketamine had lasting positive results for up to a week, which shows the drug may be more potent than AZD6765, despite its side effects.

      But researchers in the recent NIMH study were still pleased with the results and appeared to be excited about AZD6765 and its possibilities of treatment.

      “Our findings serve as a proof of concept that we can tap into an important component of the glutamate pathway to develop a new generation of safe, rapid-acting practical treatments for depression,” said head researcher Dr. Carlos Zarate, of NIMH.

      Suicide prevention

      The new findings are important experts say, especially for those patients suffering from depression who may also be suicidal, as immediate relief for a lot of mental patients has been elusive for quite some time.

      Dr. Zarate also said these new findings could have a colossal impact within the health community and greatly assist those suffering from the serious mental disease.

       “One infusion of a low dose of the medication resulted in rapid effects within two hours compared with many weeks for many of our current treatments,” he told a news outlet.

      “In addition, those who responded had tried many of our medications. This proved that rapid antidepressant effects can be done in very sick people within a very short period of time. This could have a real impact on public health.”

      “From now on, it’s a matter of looking at different doses, repeated doses, etc. It also opens that door for other investigations and industry to jump in and see if they can identify other agents that work rapidly without the side-effects of ketamine.”

      Most likely to suffer

      In a separate study conducted by the CDC, scientists found that those aged 45-64 are most likely to suffer from depression, along with women, African Americans, Hispanics, and people who were married but are now single.

      The CDC study also showed those without health insurance or unable to secure employment make up a large portion of patients suffering from depression.

      According to the Centers for Disease Control and Prevention, about one in 10 adults in the United States report having depression, although experts say the...

      Microsoft's Surface RT comes to Staples and Best Buy

      Microsoft hopes the move to traditional retail will spur sales

      The news may not start a stampede but the Surface RT tablet is now on sale at Best Buy and Staples as Microsoft tries to jumpstart slow sales. The tablet has, until now, been available only through Microsoft's website or at its brick-and-mortar stores.

      Best Buy said it currently has the RT for sale online but expects to have it in stores starting Sunday. Staples said it has the tablet both online and in stores.

      Although it's thought that the Surface has been slow out of the gate, it has been getting favorable reviews from some consumers who like having their familiar Office programs readily available.

      Not so keen

      More ominously, however, a survey finds developers not so keen on the Surface and the Windows Phone, both Windows 8 products. The survey, by IDC and Appcelerator, found that while 56% of developers said they like the Surface hardware, they're skeptical of its sales prospects -- and thus reluctant to invest a lot of time and money developing apps for it.

      Of course, this may not matter to many consumers who use their laptops and tablets primarily for business and prefer to stick with Microsoft products. The same survey found developers cool to the Kindle Fire, which continues to burn up the marketplace.

      Pricing of the Surface is attractive, with most versions running about $100 less than a comparably-equipped iPad.

      By moving into bricks-and-mortar retail channels, Microsoft will also be exposing the Surface to consumers who may be relatively unaware of it. Believe it or not, not everyone waits breathlessly for the latest technogadget to emerge, and the Surface's bright colors and big screen may catch the eye of shoppers who weren't previously aware of it.

      "Customers have come to expect Best Buy -- both its store and website -- to be the place with the broadest selection of consumer electronics, and our sale of this much-hyped new tablet just reinforces that point," said BestBuy.com president Scott Durchslag.

      "Staples is excited to provide this innovative product to customers just in time for the holiday season," said Mike Edwards, Staples executive VP for merchandising.

      The news may not start a stampede but the Surface RT tablet is now on sale at Best Buy an Staples as Microsoft tries to jumpstart slow sales. The tablet ha...

      Ample supplies and looming fiscal cliff push gas prices lower

      Lowest prices found in south central region, highest in the Northeast

      Gasoline prices fell in nearly every state this week as supplies rose and crude oil prices fell, depressed by worries about Washington's "fiscal cliff."

      The national average price of self-serve regular today is $3.286 per gallon, compared with $3.371 last week, according to AAA's Fuel Gauge Survey. That's 16 cents lower than a month ago and only two cents higher than the price a year ago.

      The average price of diesel fuel today is $3.953 per gallon, versus $4.001 a week ago.

      Gasoline supplies are rising, even with increasing demand. The Energy Information Administration reported this week that for the week ending December 7 the U.S. had more than 217 million barrels of gasoline on hand, about three percent higher than the five-year average. Even in the Northeast, where Hurricane Sandy disrupted supplies last month, gasoline stockpiles are growing, not shrinking.

      Both Hawaii, with the nation's highest average gasoline and Missouri, with the lowest, are poised at key thresholds today. Hawaii is about to dip below $4 a gallon and Missouri $3 a gallon.

      Most states saw price dips between three and six cents a gallon this week. The average price in Minnesota dropped about 12 cents a gallon.

      The states with the most expensive gas prices this week are:

      • Hawaii ($4.000)
      • New York ($3.772)
      • Alaska ($3.698)
      • Connecticut ($3.698)
      • California ($3.588)
      • Vermont ($3.560)
      • Rhode Island ($3.543)
      • Maine ($3.522)
      • Massachusetts ($3.483)
      • Pennsylvania ($3.481)

      The states with the lowest gas prices this week are:

      • Missouri ($3.008)
      • Oklahoma ($3.062)
      • South Carolina ($3.069)
      • Texas ($3.075)
      • Tennessee ($3.082)
      • Arkansas ($3.095)
      • Mississippi ($3.098)
      • Louisiana($3.107)
      • Minnesota ($3.127)
      • Kansas ($3.141)

      Gasoline prices fell in nearly every U.S. state this week as supplies rose and crude oil prices fell, depressed by worries about Washington's "fiscal cliff...

      Feds revamping reverse mortgage rules

      Consumer groups worried borrowers have too little information

      As many Americans reach retirement age and decide to locate to a lower-cost area, they typically debate whether to buy or rent. But there is a third option, which involves staying put, that more and more homeowners are selecting -- a reverse mortgage.

      Reverse mortgages are a special type of home loan that lets homeowners convert the equity in their home into cash. It can give older Americans greater financial security to supplement Social Security, meet unexpected medical expenses, make home improvements, and more.

      But what is sometimes more important to retiring homeowners who are still making mortgage payments -- it can allow them to stop making payments.

      Worries

      Some consumer groups have expressed concern that some seniors are rushing into reverse mortgages without fully understanding the pros and cons. The Department of Housing and Urban Development (HUD) is proposing steps to strengthen the program but two groups -- Consumers Union and the California Advocates for Nursing Home Reform -- urge consideration of a more comprehensive package of protections to ensure reverse mortgages are a safe financial option for seniors.

      "More and more reverse mortgage borrowers are opting to take a lump sum payment at increasingly younger ages," said Norma Garcia, senior attorney and manager of the financial services program of Consumers Union, the policy and advocacy arm of Consumer Reports. "These borrowers are at higher risk of prematurely using up all their equity and losing their homes. FHA should be applauded for recognizing a serious problem and proposing steps to remedy it. But we need comprehensive reforms to ensure that borrowers are truly protected."

      How they work

      Reverse mortgages enable borrowers who are 62 or older to obtain income by tapping the equity in their home through a lump-sum payment, monthly scheduled payments, or lines of credit. The reverse mortgage loan becomes due when the borrower dies, leaves the home for 12 consecutive months or more, or fails to maintain the property or pay homeowners insurance or property taxes.

      Reverse mortgage borrowers must pay a loan origination fee, closing costs, and compounding interests on the loan principal, which can be significant.

      Earlier this year the Consumer Financial Protection Bureau (CFPB) found that people signing up for reverse mortgages are almost always opting to take a lump sum payment. They are also doing it at a relatively young 72 years of age. Borrowing a lump sum and too soon can result in seniors depleting their home equity prematurely. After exhausting their home equity, many senior borrowers will have no resources to fall back on.

      Changes

      At a recent Senate Banking Committee hearing, HUD Secretary Shaun Donovan proposed both immediate, interim steps and longer-term changes to reduce losses and permanently strengthen the FHA's Home Equity Conversion Mortgage (HECM) program.

      In the short term, the FHA is proposing to use its existing authority to reduce the maximum amount of funds available to a reverse mortgage. The FHA is proposing longer-term changes that would include limiting the borrower's draw at origination to mandatory obligations; requiring the performance of a financial assessment to determine the suitability of various loans for individual borrowers; and establishing a tax and insurance set-aside or an annuity to ensure there is sufficient equity available to pay taxes and insurance to avoid defaults from non-payment of taxes and insurance.

      "The FHA's proposals are a positive step that will help ensure borrowers don't wind up with a reverse mortgage that may not be suitable for them," said Prescott Cole, Senior Attorney with the California Advocates for Nursing Home Reform. "But more must be done to protect seniors and their families. Too many seniors are falling through a fiscal trap door while trying to unlock their home equity with a reverse mortgage."

      Seniors, meanwhile, need to understand that a reverse mortgage is not practical in every case. The borrower needs to own the house free and clear or have a large amount of equity in the property for the loan to be in both the best interests of the borrower and the lender.

      As many Americans reach retirement age and decide to locate to a lower-cost area, they typically debate whether to buy or rent. But there is a third option...

      Consumer prices go down in November

      Falling gas prices put more money in consumers' pockets

      The prices consumers pay for goods and services went down in November. The 0.3 percent decline in the Labor Department's Consumer Price Index (CPI) was the first drop in prices at the retail level since May.

      The big driver of negative inflation was a 7.6 percent drop in gasoline prices, which are only now returning to normal levels. Fuel prices inexplicably surged in late August and early September, just as the summer driving season was ending.

      Gasoline wasn't the only commodity that cost less last month. Prices of used vehicles, clothing and even medical care fell. In categories where prices increased, the gains were small and hardly noticeable. Food prices were up last month, mostly because of the summer's drought. It's possible those effects will increase in the months ahead.

      More money in consumers' pockets

      "The decline in consumer costs helped push up household spending power," said economist Joel Naroff, of Naroff Economic Advisors, in Holland, Pa. "Real earnings jumped in November as wages rose while prices fell. People had a little more to spend in November and if the retail sales numbers are any indicator, they put it to good use this holiday shopping season."

      Prices are also falling at the producer level, and again lower energy costs are mostly responsible. The government's Producer Price Index (PPI) fell 0.8 percent in November, led by a 4.6 percent drop in energy costs. As with the consumer numbers, food costs bucked the trend and moved higher.

      Naroff says the numbers mean that Federal Reserve Chairman Ben Bernanke is likely to keep pumping money into the economy since there is no sign of inflation. However, consumers may need to keep an eye on their food budgets since the damage of last summer's drought will likely be felt in full force early in 2013.

      The prices consumers pay for goods and services went down in November. The 0.3 percent decline in the Labor Department's Consumer Price Index (CPI) was the...

      You can help reduce your risk of heart disease, stroke

      It's not as hard to do as a lot of people think

      Poor eating and exercise habits could be the game-changer in the fight against heart disease and stroke deaths, according to the American Heart Association's "Heart Disease and Stroke Statistical Update 2013," published in the American Heart Association journal, Circulation.

      "Americans need to move a lot more, eat healthier and less, and manage risk factors as soon as they develop," said Alan S. Go, M.D., chairman of the report's writing committee and chief of the Cardiovascular and Metabolic Conditions Section of the Kaiser Permanente Northern California Division of Research in Oakland. "If not, we'll quickly lose the momentum we've gained in reducing heart attack and stroke rates and improving survival over the last few decades."

      Between 1999 and 2009, the rate of deaths from cardiovascular disease (CVD) fell 32.7 percent, but still accounted for nearly one in three deaths in the nation. That's 2,150 people dying from CVD each day -- about one death every 40 seconds.

      Meeting the goal

      In 2010, the American Heart Association set a goal to improve cardiovascular health of all Americans by 20 percent and reduce heart disease and stroke deaths 20 percent by 2020.

      However, according to projections in the 2013 report, heart health may only improve by six percent if current trends continue. The biggest barriers to success are projected increases in obesity and diabetes, and only modest improvements in diet and physical activity. On a positive note, smoking, high cholesterol and high blood pressure rates are projected to decline.

      Not in good shape

      Among heart disease and stroke risk factors, the most recent data show:

      • More adults age 20 and over are obese (34.6 percent) than normal or underweight (31.8 percent); 68.2 percent are overweight or obese.
      • Among children ages 2-19, 31.8 percent are overweight or obese.
      • Thirty-two percent of adults report no aerobic activity; 17.7 percent of girls and 10 percent of boys, grades 9-12, report fewer than an hour of aerobic activity in the past week.
      • 13.8 percent of adults have total cholesterol of 240 mg/dL or higher.
      • Thirty-three percent of adults have high blood pressure; blacks have among the highest prevalence of high blood pressure (44 percent) worldwide.
      • 8.3 percent of adults have diagnosed diabetes, and 8.2 percent have undiagnosed diabetes; 38.2 percent have prediabetes.

      Despite four decades of improvement, 21.3 percent of men and 16.7 percent of women age 18 and over still smoke cigarettes; 18.1 percent of students in grades 9-12 report cigarette smoking.

      Improving your health

      "As the leader in the fight against heart disease and stroke, we are taking a more aggressive and innovative approach, including taking some pages from the playbooks of the public health sector," said Donna Arnett, Ph.D., president of the American Heart Association and chairperson of the Department of Epidemiology at the University of Alabama at Birmingham School of Public Health. "We're focusing on population-based ways to improve health factors for all Americans."

      Some of these include:

      • Working with healthcare systems to support and reward providers who help patients improve their health behaviors and manage their health risk factors.
      • Working with insurers to cover preventive health services and reward positive health behaviors and medication adherence.
      • Working with the education community to make changes in schools that support healthy diets and physical activity for children.
      • Building comprehensive worksite wellness programs.
      • Building healthier communities with improved access to healthier foods and green space for physical activity.

      "In this race against time, it will take nationwide efforts driven by communities and systems — a patient-by-patient approach alone won't do it," Arnett said. "But we're optimistic that if we increase our efforts for improvements in prevention and reductions in risk factors, we can be successful — we can save lives."

      Poor eating and exercise habits could be the game-changer in the fight against heart disease and stroke deaths, according to the American Heart Association...

      Bon-Ton to pay civil penalty to settle drawstring charges

      The company failed to report drawstrings on children's jackets and sweatshirts

      The Bon-Ton Stores of York, PA, will pay a $450,000 civil penalty resolving U.S. Consumer Product Safety Commission (CPSC) staff allegations that it knowingly failed to report immediately -- as required by federal law -- that its children’s hooded jackets and sweatshirts were sold with drawstrings through the hood.

      Children’s upper outerwear with drawstrings, including jackets and sweatshirts, pose a strangulation hazard to children. CPSC and three U.S. importers announced recalls of children’s jackets and sweatshirts with drawstrings through the hood on February 18, March 10 and May 27, 2010. Bon-Ton was a retailer of about 800 total jackets and sweatshirts in all three recalls.

      Early warnings

      CPSC began warning about drawstring dangers in the early 1990s. The agency issued guidelines in 1996 about drawstrings in children's upper outerwear. Those guidelines were incorporated into an industry voluntary standard in 1997. In 2006, CPSC's Office of Compliance announced that children's upper outerwear with drawstrings at the hood or neck would be regarded as defective and presenting a substantial risk of injury to young children.

      Then, in July 2011, based on the guidelines and voluntary standard, CPSC issued a federal regulation that designated as substantial product hazards children's upper outerwear in sizes 2T to 12 (or extra-small to large) with neck or hood drawstrings, and children's upper outerwear in sizes 2T to 16 (or extra-small to extra-large) with certain waist or bottom drawstrings.

      Federal requirements

      Federal law requires manufacturers, distributors, and retailers to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect that could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC.

      Federal law also bars selling products that have been subject to a voluntary recall by a manufacturer or a mandatory recall ordered by the commission.

      In agreeing to the settlement, Bon-Ton denies CPSC staff allegations that it knowingly violated the law.

      The Bon-Ton Stores of York, PA, will pay a $450,000 civil penalty resolving U.S. Consumer Product Safety Commission (CPSC) staff allegations that it knowin...

      Debt collector settles Minnesota's 'robo-signing' complaint

      Midland Funding must now prove consumer owes the debt

      The term 'robo-signing' became part of consumer vocabulary in 2010 when major mortgage lenders were accused of cutting corners on legal documents required in a foreclosure. Now, the state of Minnesota has come to terms with a debt collector it accused of doing much the same thing.

      Minnesota Attorney General Lori Swanson last year sued Midland Funding, LLC, one of the country’s largest debt buyers, accusing it of filing unreliable “robo-signed” affidavits in collections lawsuits and sometimes targeting the wrong people for payment of old bills that it purchased from credit card companies and banks for pennies on the dollar.

      All about respect

      “This lawsuit was about respect for the legal system," Swanson said. "In its rush to quickly collect old debts that it purchased for just a few pennies on the dollar, the company ignored legal requirements designed to protect the rights of an individual in court.”

      In a settlement with the state, Midland has agreed to change a number of its business practices, including providing individuals with proof of the debt before filing a lawsuit. If an individual indicates that he or she doesn’t owe the money, Midland must investigate the matter and, if it cannot substantiate the debt, close the account.

      Midland buys old, charged-off debt from banks and credit card companies, including Bank of America,JP Morgan Chase, Citibank, Wells Fargo, from phone companies like Verizon Wireless, and from other debt buyers. Midland is one of the largest debt buyers in the country, Swanson said.

      Unreliable documents

      The attorney general's lawsuit claimed that Midland aggressively filed thousands of collections lawsuits against individuals in Minnesota courts, often supported by unreliable “robo-signed” affidavits generated at Midland’s St. Cloud, Minnesota offices.

      Several Midland employees admitted in sworn testimony to signing up to 400 affidavits per day, either without reading them, without personal knowledge of their contents, or without verifying the accuracy of the information contained in them.

      The state's lawsuit accused Midland employees of robo-signing hundreds of affidavits a day and falsely attested to have personal knowledge of their content, including the validity of the debt, the amount of the debt, the company’s ownership of the debt, and/or the documents giving rise to the debt, even though the employee did not have this knowledge and did not read the affidavit he or she signed.

      Earlier this year West Virginia Attorney General Darrell McGraw filed suit against Midland Funding, making similar accusations. The National Consumer Law Center (NCLC) has estimated that one out of ten lawsuits filed by debt buyers are premised on bad or incorrect information.

      The term 'robo-signing' became part of consumer vocabulary in 2010 when major mortgage lenders were accused of cutting corners on legal documents required ...

      Barcode inventor dies at age 91

      Norman Woodland came up with the idea on the beach

      Sixty years ago young Norman Woodland and a fellow student were relaxing on a New Jersey beach when Woodland drew four lines in the sand. It was the beginning of what we know today as the barcode, or Universal Product Code.

      Woodland died this week at his New Jersey home from complications of Alzheimer's disease. He was 91.

      What's an optical scanner?

      In October 1952 Woodland and classmate Bernard Silver were awarded a U.S. patent for something called "classifying apparatus and method." In a day before computers, Woodland had figured out that a pattern of thick and thin lines could be used to identify objects for an optical scanner, which at the time existed mostly in theory.

      He based his system on Morse Code, which he had learned as a Boy Scout. Instead of dots and dashes to form words, Woodland used lines.

      The world didn't exactly beat a path to his door. The invention lay dormant for two more decades. All the while, consumers waited patiently in line at the supermarket while the cashier dutifully looked for a price tag on each item and entered it in the cash register.

      Supermarkets take the lead

      By the mid 1970s grocery stores started experimenting with barcodes and optical scanners. The goal was to increase productivity and speed the checkout process for the consumer. By the 1980s nearly every supermarket chain in America was scanning products and speeding consumers on their way.

      The first barcodes, as designed by Woodland and Silver, were round -- almost like the bullseye of a target. The design was so a clerk could scan the code from any angle. They later became the rectangular pattern consumers now see every day.

      According to "A Brief History of Barcodes," published in Esquire in 2010, the first Universal Product Code marked item ever scanned at a retail checkout occured at Marsh's supermarket in Troy, Ohio, was at 8:01 a.m. on June 26, 1974, and was a 10-pack of Wrigley's Juicy Fruit chewing gum.

      Sixty years ago young Norman Woodland and a fellow student were relaxing on a New Jersey beach when Woodland drew four lines in the sand. It was the beginn...

      Psychosocial distress associated with increased stroke risk

      Stress and negative emotions often increase with age

      People over age 65 with high psychosocial distress -- a broad concept that includes depression, stress, a negative outlook and dissatisfaction with life -- face increased risk of stroke, according to new research in the American Heart Association journal Stroke.

      In their 10-year study, researchers followed 4,120 people in the Chicago Health and Aging Project for rates of death and stroke incidents. Due to some participants being involved in an HMO only 2,649 participants were analyzed for rates of incident stroke.

      Participants were 65 years and older (average age 77, 62 percent women, 61 percent black). Researchers identified 151 deaths from stroke and 452 events that led to first-time hospitalization for stroke.

      Race, sex not factors

      Those with the most psychosocial distress had three times the risk of death from stroke and a 54 percent increased risk of first hospitalization from stroke compared to those least distressed.

      The impact of psychosocial distress on stroke risk did not differ by race or by sex, researchers said.

      "People should be aware that stress and negative emotions often increase with age," said Susan Everson-Rose, Ph.D., M.P.H., study senior author and associate professor of medicine and associate director of the Program in Health Disparities Research at the University of Minnesota in Minneapolis. "Family members and caregivers need to recognize these emotions have a profound effect on health."

      In a separate analysis, researchers found a striking association between psychosocial distress and risk of hemorrhagic stroke (bleeding), but not ischemic stroke (caused by blood clot).

      "There was about 70 percent excess risk for each unit increase in distress that wasn't explained by known stroke risk factors," Everson-Rose said. "So there must be other biologic pathways at play linking distress to hemorrhagic stroke in particular."

      Measuring stress

      The researchers measured psychosocial distress by four indicators: perceived stress, life dissatisfaction, neuroticism and depressive symptoms. They used standardized rating scales to determine the score of each indicator, such as the 6-item Perceived Stress Scale. For each indicator, higher scores represent a higher level of psychosocial distress. A distress factor score was based on averaging the values of the psychosocial measures.

      For the study, researchers conducted in-depth interviews in homes in three stable neighborhoods on the south side of Chicago representing blacks and whites from the same socio-economic spectrum. The interviews covered medical history, cognitive function, socioeconomic status, behavioral patterns, traditional risk factors for stroke and psychosocial characteristics.

      Stroke deaths were verified by the National Death Index and stroke hospitalizations were based on Medicare claims from the Center for Medicare and Medicaid Services.

      "It's important to pay attention when older people complain of distress and recognize that these symptoms have physical effects on health outcome and clearly affect stroke risk," Everson-Rose said.

      People over age 65 with high psychosocial distress -- a broad concept that includes depression, stress, a negative outlook and dissatisfaction with life --...