Current Events in January 2013

For the third time in as many months, the Producer Price Index (PPI) for finished goods -- also popularly known as wholesale prices -- has posted a decline

The U.S. Bureau of Labor Statistics reports that on a seasonally adjusted basis, prices for finished goods were down 0.2 percent in December following declines of 0.8 percent in November and 0.2 percent in October.

Food and energy

Most of the December decline is due to a drop of 0.9-percent in prices for consumer foods. Over one-third of the the drop in food prices can be traced to beef and veal costs, which plunged 4.8 percent. Lower prices for fresh and dry vegetables and for natural, processed, and imitation cheese also were factors in the decline.

Energy prices were down 0.3 percent in December -- the third straight decrease. Leading the December decline, gasoline prices fell 1.7 percent. Lower prices for liquefied petroleum gas also contributed to the decrease in the finished energy goods

The core rate of wholesale inflation, which strips out the volatile food and energy categories, edged up 0.1 percent in -- the same as in November. The December advance was a 2.0 percent increase in cigarette prices.  

Housing prices are continuing to rebound -- and the outlook for that to continue appears bright.

Home prices nationwide -- including distressed sales -- increased 7.4 percent this past November from the same month a year earlier, according to the latest CoreLogic HPI report

The provider of information, analytics and business services says that represents the biggest increase since May 2006 -- and the ninth consecutive increase in home prices nationally on a year-over-year basis. On a month-over-month basis home prices were up 0.3 percent in November. The HPI analysis shows that all but six states saw year-over-year price gains.

Excluding distressed sales, home prices nationwide increased on a year-over-year basis by 6.7 percent in November. On a month-over-month basis, they rose 0.9 percent. Distressed sales include short sales and real estate owned (REO) transactions.

November highlights

• Including distressed sales, the five states with the highest home price appreciation were: Arizona (+20.9 percent), Nevada (+14.2 percent), Idaho (+13.8 percent), North Dakota (+11.3 percent), California (+11.1 percent).
• The five states with the lowest home price depreciation were: Delaware (-4.9 percent), Illinois (-2.2 percent), Connecticut (-0.5 percent), New Jersey (-0.5 percent) and Rhode Island (-0.3 percent).
• Excluding distressed sales, the five states with the highest home price appreciation were: Arizona (+16.5 percent), North Dakota (+12.9 percent), Nevada (+12.6 percent), Hawaii (+11.6 percent) and Idaho (+11.6 percent).
• Only two states posted home price depreciation: Delaware (-3.5 percent) and Alabama (-2.2 percent).
• Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to November 2012) was -26.8 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -20.7 percent.
• The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-52.9 percent), Florida (-44.3 percent), Arizona (-39.8 percent), California (-35.8 percent) and Michigan (-35.4 percent).
• Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, only thirteen are showing year-over-year declines in November -- seven fewer than in October.

The outlook

The CoreLogic Pending HPI indicates that December 2012 home prices -- including distressed sales -- are expected to rise by 7.9 percent on a year-over-year basis from December 2011 and fall by 0.5 percent on a month-over-month basis from November 2012 reflecting a seasonal winter slowdown.

Excluding distressed sales, December 2012 house prices are poised to rise 8.4 percent year-over-year from December 2011 and by 0.7 percent month-over-month from November 2012. The CoreLogic Pending HPI, which provides the most current indication of trends in home prices, is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month.

"As we close out 2012 the pending index suggests prices will remain strong," said Mark Fleming, chief economist for CoreLogic. "Given that the recently released Qualified Mortgage rules issued by the Consumer Financial Protection Bureau are not expected to significantly restrict credit availability relative to today, the gains made in 2012 will likely be sustained into 2013."

If an apple a day keeps the doctor away, think what berries might do.

A study reported in Circulation: Journal of the American Heart Association finds eating three or more servings of blueberries and strawberries per week may help women reduce their risk of a heart attack by as much as one-third.

Blueberries and strawberries contain high levels of naturally occurring compounds called dietary flavonoids, also found in grapes and wine, blackberries, eggplant, and other fruits and vegetables. A specific sub-class of flavonoids, called anthocyanins, may help dilate arteries, counter the buildup of plaque and provide other cardiovascular benefits, according to the study.

A separate study  has found that blueberries likely help prevent the cell damage caused by cancer.

"Blueberries and strawberries can easily be incorporated into what women eat every week," said Eric Rimm D.Sc., senior author and Associate Professor of Nutrition and Epidemiology at the Harvard School of Public Health in Boston, Mass. "This simple dietary change could have a significant impact on prevention efforts."

Blueberries and strawberries were part of this analysis simply because they are the most-eaten berries in the United States. Thus, it's possible that other foods could produce the same results, researchers said.

Four-year study

Scientists from the Harvard School of Public Health in the United States and the University of East Anglia, United Kingdom, conducted a prospective study among 93,600 women ages 25 to 42 who were registered with the Nurses' Health Study II. The women completed questionnaires about their diet every four years for 18 years.

During the study, 405 heart attacks occurred. Women who ate the most blueberries and strawberries had a 32-percent reduction in their risk of heart attack compared with women who ate the berries once a month or less -- even in women who otherwise ate a diet rich in other fruits and vegetables.

"We have shown that even at an early age, eating more of these fruits may reduce risk of a heart attack later in life," said Aedín Cassidy, Ph.D., lead author and head of the Department of Nutrition at Norwich Medical School of the University of East Anglia in Norwich, United Kingdom.

The findings were independent of other risk factors, such as age, high blood pressure, family history of heart attack, body mass, exercise, smoking, caffeine or alcohol intake.

The American Heart Association supports eating berries as part of an overall balanced diet that also includes other fruits, vegetables and whole-grain products. Eating a variety of foods is the best way to get the right amounts of nutrients.

As any pet owner can tell you, providing care and love for an animal can bring about a lot of joy. It can also get messy. 

One area of cat care that owners wish they could avoid, for example, is scooping out the litter box. A potential solution is the Litter-Robot, which is supposed to dramatically cut down the numbers of times you have to remove your cat’s wastes.

This is the second version of the Litter-Robot released by Automated Pet Care Products over the years, and it's a mechanism that allows cats to do their business while giving owners at least a partial respite from clean-up duties.

When your cat leaves the device, it spins and gathers the waste, then dumps it into a bagged compartment. From there, you simply remove the bag and throw it away.

One of the main advantages of the Litter-Robot, the company says, is that it can hold waste for several days, which is especially useful for the times when you have to take a short business trip or go on a weekend excursion.

And since the robot gathers waste by rotating and dumping it into a separate drawer, owners no longer have to scoop it out by hand.

Other companies make similar devices, including the LitterMaid, which unfortunately has generated a lot of complaints from cat owners who say it fails in its most essential mission. 

The company also says Litter-Robot’s rotating process is a patented and unique sifting method that removes waste clumps in the litter, and the waste drawer itself is designed to remain odorless and to prevent mold from growing on the inside of it.

Both of these design features are supposed to ensure the device remains clean each time your cat uses it, but owners should still remove the drawer's contents at least once a week, the company says.

Another perk of Litter-Robot is that it doesn’t require a special receptacle, and its drawers can hold bags of many sizes. The company does offer biodegradable bags, but just about any bag can be used inside the drawer--including old shopping bags.

The makers also say the globe-shaped apparatus uses a special carbon filter which insulates the unpleasant odor of the waste, thus releasing less odor throughout your home than traditional litter boxes. The device also doesn’t require any special kind of litter, which of course is nice.

The Litter-Robot itself looks like a spaceship of sorts, and it's designed to fit just about any size cat. And to ensure the device doesn’t start to rotate while your cat is in it, the company installed a sensor, so the globe won’t move if your cat is within range.

If there’s a downside to this product, it would have to be its steep price of about $340, but for those who want to cut down their litter box cleaning to just once a week, and allow their cats to have a little more independence, it might be worth the high cost.

Another not so great thing is that it makes a bit of noise when it rotate, so if you live in smaller quarters and you’re unable to put the machine in a distant space, then you may be disturbed by it.

Road work

Another product that might be worth the money for dog owners is The Canine Treadmill, which costs between $500 and $1,000, depending on the size of the treadmill and where you buy it. Currently it’s on Amazon for $523.99.

Is it expensive? Yes. But for those times when walking your dog is inconvenient for a variety of reasons, The Canine Treadmill could pay itself off in terms of human effort, specifically for the times when it’s too cold for you and your dog to walk or when temperatures are so high that even going for a short trip outside could be dangerous.

Also, many veterinarians and pet experts say dogs need at least of 15 to 45 minutes of walking time per day, depending on the type of dog you have, so pets that aren’t getting that amount of exercise can use the treadmill no matter what the weather is like outside.

The treadmill is also useful for dogs that could stand to lose a little bit of weight and need a little more than the required 15 or 45 minutes of physical activity per day.

The creators of The Canine Treadmill say the walking belt is made of a soft rubber so it’s easy on your dog’s paws, and it also comes equipped with safety barriers so your dog remains in position and doesn’t tip over or shift.

Owners can adjust the speed and level of resistance of the treadmill, so your dog will be able to get their needed level of exercise regardless of their size or breed.

The motorized exercise machine comes with training guidelines so owners will know just how to use it, and also know how much walking your dog will need to stay healthy.

The company says the treadmill uses a quiet motor so it doesn’t disturb other people in the house, and it looks really cool, so it won’t stand out in your home like a sore thumb or look like an ugly and serious piece of exercise equipment.

In its advertising, Western Sky, a division of Payday Financial, is upfront and unapologetic about its fees.

"Yes, the money's expensive, but it's a lot cheaper than a payday advance," the message says. "And it's enough to really get you over the hump. So get off the payday treadmill."

Payday lenders often make small loans of $200 or so but Western Sky makes larger loans, usually of $850 to $10,000. Owned by a Native American and based on the Cheyenne River Indian Reservation in South Dakota, it has sought to set itself apart from payday lenders but has generated some of the same kinds of consumer complaints.

Complaints

Karen, of Portage, Wis., said she applied and was approved for a loan of $1,500.

"Right away they took $500 off that I had to pay back," Karen wrote in a ConsumerAffairs post. "Then I gave them all my information including my account number and routing number and password. She told me she was going to email me. An hour later I got an email, then she said she was going to call back and didn't. So I called to cancel. The supervisor was rude to me and I kept telling him, 'No, I don't want the loan,' and he hung up on me. A $1,500 loan is costing me $5,000 in 24 months."

Everado, of Defiance, Ohio reports taking a loan of $2,500 in November 2010 and was also chagrined to see he had been charged a $500 origination fee.

"My payments are $298.94, which I have been paying for 19 months, so far," he writes. "I cannot find a way out. They say I still owe $2,500.00 as of today. Do the math and I have so far paid back $5,679.86."

Different than a payday loan?

Just like most payday loan customers, Everado and Karen are finding it's very hard to get out of debt. But perhaps a difference is most payday loan customers go into the two-week transaction believing they will somehow be able to repay the loan in that time. When they can't they are forced to take out an endless series of payday loans that the Center for Responsible Lending calls the payday loan debt trap.

Western Sky says it is more upfront about the costs of its loans, which it says are installment loans of up to seven years. Indeed, that appears to be the case.

On it's web page devoted to rates, Western Financial lists six representative loan amounts and shows the origination fee, the amount of money the borrower receives, the annual percentage rate (APR), the number of payments and the length of the loan.

What it costs

In the example of the $5,000 loan the borrower would pay a $75 origination fee -- it's $500 for loans under $1,500 -- and would pay 116.73% APR for seven years, making monthly payments of $486.58. Over the life of the loan the borrower would pay a total of $40,872.72. The loan of $5,000 would cost $35,872.72.

"Yes, the money's expensive," as Western Financial acknowledges in its ads. Are there cheaper alternatives for people with poor credit?

Subprime alternative

Let's compare it to First Premier Bank's Mastercard, which often makes the list of the most expensive subprime cards and draws a number of complaints at ConsumerAffairs. It, too, is aimed at poor-credit consumers and charges a $120 annual fee and 59.99 % APR.

Using the example of the $5,000 loan for seven years, the credit card's monthly payment would be $254.18 (assuming the $120 annual fee was paid in full each year) as opposed to $486.58. The cost of the loan over seven years, including the seven annual payments, would be $1,7191.12, a savings of about $18,681.

Western Sky's parent company has run afoul of state and federal authorities in the last couple of years, though not for its loan rates. Other business practices have come under scrutiny.

Colorado crackdown

In March 2011 Colorado Attorney General John Suthers sued Western Financial, accusing the company of making unlicensed, high-interest loans to Colorado consumers. The suit claimed the company made more than 200 loans to Colorado consumers since at least March 2010, during which time it was not licensed with the state.

The loans ranged in value from $400 to $2,600 and had terms ranging from seven months to 36 months. The loans’ annual percentage rates ranged from 140 percent to 300 percent. Under Colorado’s Uniform Consumer Credit Code, lenders making subprime loans must be licensed with the Office of the Attorney General. Because Western Sky Financial made loans with interest rates higher than 12 percent, it must be licensed, the suit said.

A year later West Virginia Attorney General Darrell McGraw reached a settlement with Western Sky's parent, knocking down one of the company's principal shields against prosecution. The company claimed that the loans originated on the Cheyenne River Indian Reservation in South Dakota, where Payday Financial was located, and were subject to tribal laws rather than the laws of West Virginia or other states where the borrowers resided.

Not an Indian tribe

After a lengthy court battle a circuit court ruled that Payday Financial was not an Indian tribe and therefore was not entitled to tribal immunity. The judge ruled that the loans were governed by West Virginia laws. Payday Financial challenged the ruling by filing a petition for writ of prohibition with the West Virginia Supreme Court of Appeals, but the Appeals Court let the ruling stand.

Because of actions by various states, Western Sky says it does not do business in California, Colorado, Maryland, Missouri, South Dakota and West Virginia.

Early last year the Federal Trade Commission (FTC) expanded its case against Payday Financial, charging that it sought to unfairly and deceptively manipulate the legal system and force debt-burdened consumers throughout the country to travel to South Dakota and appear before a tribal court that did not have jurisdiction over their cases.

In an amended complaint, the FTC charged that the South Dakota-based lender's suits against customers are unfair, and that its contract language about the court where such suits would be brought is deceptive.  

The days of coupon-clipping are just about over, as various forms of online coupons displace the old printed coupons. The latest entrant in the field is, who else, Google with a product called Zavers.

Zavers is basically a coupon book that you tie to your smartphone. You add coupons to the account and they're automatically applied at check-out.

The benefits to the consumer are pretty obvious: no more coupon clipping and no fumbling around at check-out trying to find a coupon you just know you saved somewhere in your email folder.

There are also some big benefits for retailers, at least as Google tells it. It says Zavers will give manufacturers a real-time way to see coupon performance and redemption rates, and the service also offers a personalization and targeting system that sounds a lot like Google's AdWords.

"Today we’re excited to introduce Zavers by Google — a digital coupon solution that enables retailers and manufacturers to reward loyal customers with coupons that are relevant to them -- increasing basket size and redemption rates. So dog owners don’t get cat food coupons and parents of teenagers don’t get diaper coupons," said Spencer Spinnell, Director, Emerging Platforms, Google Commerce.

Spinnel says the system is convenient and trouble-free for shoppers and manufacturers.

"With Zavers, shoppers find manufacturer discounts on their favorite retailer websites, and save the digital coupons to their accounts. Then they simply shop for those products and check out as usual.Redemption occurs in real time, with savings automatically deducted at checkout when shoppers provide their rewards cards or phone numbers — no scanning or sorting necessary. Manufacturers only pay when a product is moved off the shelf," he said.

Spinnell said New York City supermarket chain D'Agostino is the newest retailer to join the Zavers network. Other participating retailers include

A&P, Waldbaum's, Superfresh, The Food Emporium, Pathmark, Harris Teeter, Price Chopper Northeast, and BI-LO.

It's said that only death and taxes are inevitable. You might want to add insurance to that short list, especially since the new healthcare law will require all of us to be covered

Are you paying more for insurance, less or about the same? According to Bankrate's Financial Security Index, more than a third of consumers in the U.S. saw their overall insurance spending increase last year -- mostly due to rising premiums. In its survey, Bankrate asked people about their household insurance budgets. Relatively few spent less on insurance, suggesting – according to experts -- consumers may be missing out on insurance savings.

The survey says...

The survey results show that 37 percent spent more overall for all kinds of insurance, including homeowners, renters, auto, life and health coverage, while 52 percent spent about the same; just seven percent saw their insurance bill decrease.

Of those whose overall insurance tab rose, 62 percent attributed the increase to a rise in premium costs. Other reasons included: the addition of coverage for a new home, vehicle, boat or RV (12 percent); changes in coverage due to family circumstances, such as marriage or addition to the family (nine percent); and a decision by the consumer to boost coverage on an existing policy (four percent).

Why you may be paying more

Michael Barry, spokesman for the Insurance Information Institute, an industry trade group, says an unusual streak of natural disasters in 2011 almost certainly contributed to a rise in homeowners insurance rates for many during 2012.

"We had Hurricane Irene, the Joplin tornado that was the single biggest insurance event in Missouri history, and widespread winter storms, tornadoes and flooding in interior states like Minnesota," he notes. "While homeowners rates don't move significantly in just one year, when you look at how some of the costliest natural disasters in U.S. history have all occurred in the last decade, this is not a surprise."

Consumer Federation of America's director of insurance J. Robert Hunter has a different prime suspect for the cost increase.

"It's probably health insurance," he says. "That's one that people recognize because a lot of times it comes through their employer, so they have an opportunity to look at various options and think about that policy a little more."

In Hunter's view, the percentage of survey respondents who actually faced higher insurance bills last year was probably higher than the survey shows.

"I'd guess more than half probably had premium increases and just don't realize it," he says. "Consumers are buying insurance in six-month pieces instead of annually, and insurance companies have taken advantage of that. Instead of raising rates 10 percent every two years, they raise them 2.5 percent every six months, and people don't notice that."

Some consumers aren't so sure why they're paying more. Pam of Anderson, SC, says she purchased a term life insurance policy for her husband approximately four years ago after he retired. "New York Life through AARP was happy to draft my checking account for the monthly premiums", she writes in a ConsumerAffairs post. "This month the premium increased with no notification from New York Life - AAPR. When I called to question the increase, NYL would not talk with me because the policy is on my husband. I only wanted to know why the premium increased, no other information. They draft from my account, therefore, I feel I have the right to ask why the draft amount increased!"

Ken of Pasadena, TX, has an auto insurance policy with Allstate. "I just received my premium statement," he writes in a ConsumerAffairs post. "Last year it went up 5%. This is to be expected, all prices increase in this economy. This year, my premiums went up 20%! I have been calling my agent and he is unable to find a cause for this jump. There was no warning this was about to happen, there is no explanation of why. This is unprofessional. I will be moving my account to another insurance carrier."

Inertia could cost you

Hunter says insurance companies know we dislike shopping for insurance, don't understand our policies, and so are prone to park ourselves with one carrier.

"There's a huge inertia in insurance," he says. "People are afraid if they move from a company after 20 years and then have an accident, the company might cancel them, so they pay the occasional $50 (increase) and stay put."

Now that insurers have the technology to identify those inert clients through online buying and other behaviors, chances are if you appear willing to spend a little more, you probably will, Hunter says.

Reining in costs

"Shopping is the key," says Hunter. "When I was insurance commissioner in Texas, we got 25 regular people to bring in their auto policies and 25 their home insurance policies, gave them our buyers guide and a telephone. In one hour, the average person saved $125 per car and $85 on home insurance. We called it the $100 hour."

Barry, of the Insurance Information Institute, offers these tips to save on insurance without unduly sacrificing on coverage:

• Increase your homeowners deductible. "A lot of people can achieve double-digit percentage decreases in their homeowners insurance premiums by going from a $500 to a $1,000 deductible, if you're in the position to pay the first $1,000 out of pocket," he says.
• Adjust your auto policy options. To trim your auto insurance bill, ditch collision coverage rather than comprehensive, especially if you drive an older vehicle. "Collision should be the first to go because it's the most expensive," Barry says. "I would recommend keeping the comprehensive coverage because it covers so many events such as a tree falling on a car or the car being flooded."
• Bump up your auto deductibles. As with your homeowners, it may make sense to increase your auto insurance deductibles, depending on how much risk you're willing to assume. "That will almost certainly result in premium savings," Barry says.
• Bundle home and auto policies. Most insurers offer a discount to customers who purchase more than one type of policy with them.
• Consider a new term life insurance policy. Premiums for term life policies have dropped significantly in recent years. If you currently own a waning term policy, you may be able to purchase the same or better coverage for less by shopping around.

Taking a picture of your food before you eat is extremely commonplace nowadays, as capturing a meal before diving into it has become a daily ritual for many. Some say all of this food sharing is entertaining and others say meals should be eaten not photo’d.

Some take these pictures so they can share the joyous occasion of eating a yummy plate of food with a fellow foodie, and others play Gordon Parks with their meal to document the moment, so it can be experienced in the future--at least visually.

But a good number of people today snap pictures of their meals for other reasons, and they use a variety of apps to help them either lose weight, control bad eating habits or get a better idea of what things they need to change in order to eat healthier.

Take the “The Eatery” app for example, that allows users to take pictures of each meal and provides feedback in terms of how those meals are contributing to overall weight gain or loss.

The app also lets you know what specific foods aren’t allowing you to reach your dietary goal and points out the times of day that seem to challenge you the most when it comes to eating better.

Picks out patterns

The creators of The Eatery say the app differs from others that people use today, because it focuses less on the calories and measurements and instead uses photos to point out bad dietary patterns that you might not  realize you have.

Apparently, the best way to reach consumers is through their mobile device these days, so there’s no surprise that dieting has gone digital just like everything else. It makes one wonder how people were inspired to eat healthier before these apps and healthy living websites came along.

Was it the random highway billboard that reminded us to put down that greasy burger before apps took over? Was it the sporadic TV commercial or public service announcement that we came across that nagged us to eat better? Or maybe our spouses or significant others nagging us?

It seems with all of the new research findings, health warnings and  suggestions coming via the Internet these days, using your mobile device for dieting will soon be just as conventional as using a piece of exercise equipment or a personal trainer.

And Massive Health—the company that created The Eatery app—says providing people with deeper insight into themselves, as well as their eating habits, will allow folks to have a better chance of modifying unwanted food behaviors.

Since we’re now living in a digital society that counts heavily on visual stimulation through handheld electronics, using photos as both inspiration and a perpetual reminder to alter bad food patterns makes extremely good sense.

Just snap a pic

To use The Eatery, users just snap a picture of each meal—which many people do anyways—and rate it whether it's “fit or fat.” The app will then give you guidance on where to make changes, and also give feedback about the time of day you choose to eat bad foods.

Massive Health says it uses crowd-source feedback from people chosen by the company, to help you along your dietary journey, so you’re not just guessing about what to tweak in your meal regimen.

And by users being able to see all of their meals, snacks and beverages in one place, it’ll be much easier to see problem areas or negative patterns, like being able to see how many slices of bread you've eaten in a given week or how many sugar-loaded cups of coffee you had in two months’ time.

And just like every other company and brand these days, The Eatery uses Facebook to include the obligatory social network component to help keep users motivated.

The logic here is that by allowing your friends and followers to see everything you’re eating--while they’re also being advised of what you’re trying to accomplish--you’ll be provided with more motivation that could go a long way in getting you to your goal.

Also, if users know their followers will see everything they’re eating, maybe they’ll be more mindful of eating better, if for no other reason than sheer embarrassment -- not wanting to appear like an undisciplined glutton who only likes the unhealthy stuff.

The company also says that being able to see everything you consumed over a long period of time, like in a course of several months let’s say, you’ll be able to see your progress and also be able to view any transgressions.

“Studies show that simply recording your meals helps you lose more weight,” says Massive Health on its site for the app. “It’s not about counting calories, it’s about becoming aware of your habits.”

It’s apparent that Massive Health also feels that by being able to record all of your meals over a course of time, you will naturally draw useful conclusions about why you eat certain foods, and why you choose to eat them at certain times.

Probably the most challenging thing about using The Eatery app is having to take a photo of everything you eat.

For those who aren’t accustomed to this, taking all of those photos could get annoying, but for those who happen to be unpaid food journalists already, this app may be right up your alley.

It seems like it was just a minute ago that Ryan Seacrest made his ten-second countdown to usher in the New Year, and since then, 2013 has been off to a fast start.

And with each New Year comes a certain level of anticipation for consumers, when it comes to new products being released, and seeing what companies will do to win our dollars and get us to pay attention.

A lot of people are also interested in seeing what new laws and government policies will be announced or what medical breakthroughs will be introduced in 2013.

To get an idea of what consumers will be seeing this year, we put together a small list to moisten your palette.

Take the new smartphones that Samsung is creating -- with a screen that’s able to bend and twist into various shapes, so one can either use it like a traditional phone and put it to their ear, or they can bend it and wrap it around their wrist like a watch or bracelet.

These bendable smartphones were announced in this year’s Consumers Electronics Show in Las Vegas. The screens are made of a thin plastic material that’s malleable enough to be turned and twisted into a number of positions.

So imagine getting a phone call, and unrolling your smartphone like a map to answer it.

What’s great about the new phones is that they'll take up less space in your bag or pocket and they should be lighter and easier to handle than regular smartphones, which will come in handy when you’re trying to multitask.

What’s also cool about these new phones is that the actual size won’t matter that much, because whether you get a tiny or colossal-sized model, you’ll be able to fold and twist it into a size that suits your needs.

The Molemate

Almost every year, scientists and researchers announce a new finding or medical breakthrough that has a huge impact on all of us, and so far there’s been a lot of talk about a skin cancer-detecting device called the MoleMate Skin Imaging System, which allows dermatologists to test for melanoma by just running the device along the skin, instead of doing an invasive procedure like a biopsy.

The inventor of the handheld device, Symon Cotton, says physicians will be able to read the machine's light waves to detect melanoma without having to remove a portion of the skin.

The MoleMate “operates by using wave lengths of light that interact with different cells in different ways,” said Cotton in an informational video about the device. “Because we know how they interact with these cells we can identify what’s in the skin without having to do a biopsy, i.e. cut a piece of the skin out.”

The company also says the MoleMate is extremely easy to use, as one pretty much just has to hold the oblong device to a patient’s skin.

What’s also terrific about the device is that physicians will be able to learn how to use it in just a couple of hours. It’s also said the device will be able to detect melanoma at earlier stages and provide more accurate readings.

Although there hasn’t been an exact release date of the Molemate, it has already been approved by the FDA and is rumored to hit U.S. doctor offices by this year. Hopefully by 2014 it will be a device commonly used by dermatologists.

Cool wheels

Let’s face it, it wouldn't be a New Year for many consumers unless a nice-looking new vehicle is released, and although there are a bevy of highly price cars being introduced this year by higher-end brands like Mercedes Benz and BMW, the 2013 Ford Fusion Mondeo seems to be on the lips and minds of those consumers who want a practical and affordable vehicle with a little pizazz.

This year’s Mondeo is built with a lot of new features that previous models didn’t have, and it will join a lot of cars being released this year that will have far better gas mileage.

The “all new Mondeo is the first model built on Ford’s new global CD-segment platform to deliver more driver-focused, dynamic performance,” Ford said in a press release. “All-wheel drive diesel powertrain and retractable panoramic roof offered for the first time; as well as segment-first adaptive full LED headlamps.”

Ford also said the Mondeo will be the first car to have a 1.0 liter powertrain, which will allow consumers to dramatically lower the amount they spend on fuel. Expect to see this vehicle on the roads a lot in 2013.

That masked man

Besides electronics, medical breakthroughs and new cars, many people are eager to see what will be new in the world of entertainment this year, and there’s arguably no area of entertainment bigger than the movies when it comes to getting the chatter among consumers really going.

The movie on the minds of many people this year is the big screen version of The Lone Ranger, starring Johnny Depp as Tonto, and the rising star Armie Hammer as the masked Kimosabe himself.

Being released on July 3, just in time for Independence Day, the story will show the origin of the Lone Ranger, and how he and his partner Tonto came to be the horse-riding vigilantes that many of us know today.

Based on the trailer for the movie, it appears The Lone Ranger will focus more on the Tonto character compared to the old black and white TV show, as Tonto finds the young cowboy passed out after experiencing some sort of cataclysmic event, and explains to him how and why he must now be a crime fighter and become the Lone Ranger.

But despite looking forward to cool movies and new products; none of us ever knows what the New Year will bring, and within the next 12 months most of us are bound to experience our fair share of peaks, valleys and winding roads that will sometimes be challenging for us to navigate.

But there’s one thing that most of us are certain of -- there will be more products for us to consume, more gadgets and forms of entertainment that will intrigue us, and hopefully a lot more medical breakthroughs that will allow us to experience many more New Years to come.

Who doesn’t want to find a mate at some point in their life?

Sure, being a single person has its perks. You can come and go without checking in with anybody, you can have all of the space you want to do whatever you want, and you have the opportunity to keep your dating options open until just the right person comes along.

But with that being said, finding a person that you can face life’s harsher times with, while also having that person be there for the beautiful moments, is really a great thing to have.

So to help in this area of finding a mate, a lot of folks have gone the digital route instead of the bar route, and spend their time cruising dating site profiles instead of cruising the local neighborhood singles bar. And among the most popular dating sites are eHarmony and Match.com, both with aggressive advertising and huge marketing efforts.

But which site is better when it comes to finding you a mate, staying true to its word and being open about membership rules and billing?

To answer this question, we went to our readers. We weren’t interested so much in which site is least expensive, but rather which site treats its users better.

eHarmony

Let’s first take a quick look at eHarmony. The founder and lead pitchperson for the site is Dr. Neil Warren, who says eHarmony is the first dating site to use a scientific approach to match people who are extremely compatible.

eHarmony says it has over 20 million users, which leads one to believe there’s a huge chance of meeting somebody, because common sense dictates that having millions of profiles to search through will better the odds of finding that ideal mate.

But is that really the case? Most of those posting reviews to ConsumerAffairs say it's not, giving the company a 1 rating out of a possible 5.

“I am giving them one star for two reasons,” a reader from Canada wrote.  “It’s impossible to cancel your subscription. I turned off auto-renew option three times and three times I still saw charges on my credit card. Their help desk keeps telling me that I didn’t turn it off properly.

“Sure enough, I asked the help desk to turn off the auto-renew for me and send me and email confirmation that they did that and what happens? I get another charge on my credit card! They only refunded 50 percent after I complained,” the reader wrote.

The second reason this person eHarmony just one star was that there just weren’t any matches for them, and it didn’t seem like the company screened the user profiles for fake information. The reader also suggested that eHarmony didn’t use any of that scientific approach they love to talk about, because there was not even one person who fit the reader’s wants.

But Frank of San Jose, Calif. did find success with eHarmony, and he went on a handful of dates in a pretty short amount of time.

“The first subscription didn’t pan out so well,” wrote Frank in his ConsumerAffairs posting.

“The first month, I had plenty of matches and was able to go out on 2-3 dates out of the whole pile, so far, so good. The only irregularity was that it seemed like I’d often get matches far outside of my strict criteria that I had set.

“Fast forward to the last month and I started receiving matches again but went only on 1 date. So all total, about 3-4 dates over a 3 month span. Not exactly a stellar record, but I’m hoping that the next few months won’t’ be as busy at the office."

It’s safe to assume that many eHarmony users who weren’t as satisfied as Frank would be happy to go on four dates in three months.

Match.com

And what did readers have to say about Match.com?

Like eHarmony, it's a challenge to find folks that were completely happy with the site.

Match.com said it pioneered the dating site industry when it started back in 1995, which sounds rather strange considering there weren’t that many people on the Internet in the mid-90s for a site to have a decent dating pool, but we’ll take their word for it.

The creators of the site also say they receive stories from hundreds of happy couples who met and courted each other on the site. If true, this would suggest that Match.com may be a little better at bringing romance ito their customers' lives.

But, like eHarmony, many Match.com clients complain their membership renewed when they didn't want it to and many complain of double-billing.

Many complaints alleged the company is not vigilante enough at removing phony profiles and finding matches that meet the user’s specifications.

“I cancelled my account in November 2011 over the phone,” wrote Cyril of Durham, N.C. about Match.com. “Since then I have been charged 3 times $119.54 through PayPal. I just noticed that today and got a refund for the last period. Their policy is one refund a year. They have no trace of my cancellation, but they could tell me that I haven’t used my account since November 2011.

“They make money on people not checking their account carefully and can slip some charges until the consumer starts noticing them. The site wasn’t even worth $59 for the 6 months trial period, but they still managed to squeeze $239 over one year period with their scheme. Stay away from them,” Cyril said.

Lola of Minnesota had another take on Match.com, since she’s experienced a great deal of success in the dating department because of the site. “I’ve been on Match for 4 months and I’ve never, ever had any problems,” she wrote. “I’ve met tons of great guys.

The verdict

So which site is the one that consumers should go with when looking for that perfect someone?

According to reader reviews and comments, Match.com seems to do a better job of matching people with suitable choices. Although there are some readers who found that same kind of success with eHarmony, the balance seems to top towards Match.com.

Match.com also has a slight advantage over eHarmony for the live events that the site puts together. However, readers didn’t seem to have as many billing issues with eHarmony as they did with Match.

So, both sites can either help or frustrate you when it comes to finding a mate, and according to our readers, the more time you spend reading all of the guidelines, the more likely you’ll be less surprised about certain charges. You'll also be able to get the most out of either site if you do your research beforehand.

Or, you could try to find a mate the traditional way, but that will require putting down the computer or mobile device and going for fae-to-face experiences, which for some can be a challenge.

The Internal Revenue Service has made a number of changes for tax year 2013 -- including the tax rate schedules – as a result of the recently-passed American Taxpayer Relief Act (ATRA) of 2012.

The tax items for 2013 of greatest interest to most taxpayers include the following changes:

• Beginning in tax year 2013 (generally for tax returns you will file a year from now), a new tax rate of 39.6 percent has been added for individuals whose income exceeds $400,000 ($450,000 for married taxpayers filing a joint return). The other marginal rates -- 10, 15, 25, 28, 33 and 35 percent -- remain the same as in prior years. The guidance contains the taxable income thresholds for each of the marginal rates.
• The standard deduction rises to $6,100 ($12,200 for married couples filing jointly), from $5,950 ($11,900 for married couples filing jointly) for tax year 2012.
• The ATRA of 2012 added a limitation for itemized deductions claimed on 2013 returns of individuals with incomes of $250,000 or more ($300,000 for married couples filing jointly).
• The personal exemption rises to $3,900, up $100 from the 2012 exemption. However beginning in 2013, the exemption is subject to a phase-out that begins with adjusted gross incomes of $250,000 ($300,000 for married couples filing jointly). It phases out completely at $372,500 ($422,500 for married couples filing jointly.)
• The Alternative Minimum Tax exemption amount for tax year 2013 is $51,900 ($80,800, for married couples filing jointly), set by the ATRA of 2012, which indexes future amounts for inflation. The 2012 exemption amount was $50,600 ($78,750 for married couples filing jointly).
• The maximum Earned Income Credit amount is $6,044 for taxpayers filing jointly who have three (3) or more qualifying children; the total is $5,891 for tax year 2012.
• Estates of those who die during 2013 have a basic exclusion amount of $5,250,000, up $150,000 from the 2012 amount.
• For tax year 2013, the monthly limitation regarding the aggregate fringe benefit exclusion amount for transit passes and transportation in a commuter highway vehicle is $245, up $5 from tax year 2012 (the legislation provided a retroactive increase from the $125 limit that had been in place).

Can you remember the last time you bought a food item at the supermarket and did NOT check to see how many calories or grams of sodium it contained? Didn't think so.

It seems like something we've been doing for most of our lives, but it's only been for the past 20 years that the Nutrition Facts label has been required.

This now-familiar rectangular box provides -- in a standard format -- important information about the nutritional content for most packaged foods, including breads, cereals, canned and frozen foods, snacks, desserts and drinks.

A sea-change for consumers

"It was revolutionary," says Jessica Leighton, Ph.D., senior nutrition science and policy advisor in the Food and Drug Administration (FDA) Office of Foods and Veterinary Medicine. "For the first time, people had consistent information they need right at the point of purchase for the majority of packaged food products."

In the years since FDA issued the final rule for this labeling on Jan. 6, 1993, the Nutrition Facts label has influenced many companies to make their foods more healthful. Additionally, notes Claudine Kavanaugh, Ph.D.,M.P.H.,R.D., a scientist at the agency, "FDA was really a trailblazer in nutrition labeling. The Nutrition Facts label has been adapted by countries around the world that have chosen to mandate food labeling."

Label use increasing

The Nutrition Facts label was mandated after passage of the Nutrition Labeling and Education Act of 1990. Before it became standard practice, manufacturers provided nutritional information on a voluntary basis that wasn't consistent from product to product, explained Felicia Billingslea, M.S., director of FDA's food labeling and standards staff.

"The label is all about the attributes of the food," she said. "It's not to say that this is a good food or a bad food. It provides information that consumers can use and rely upon in developing healthful diets for themselves."

FDA survey data show that use of the Nutrition Facts label has been increasing. In comparing the Health and Diet Survey conducted in 2002 with the most recent one conducted in 2008, the percentage of consumers reporting that they often use the label rose from 44 to 54 percent.

This usage has influenced many companies to change their ingredients to make the foods more healthful and thus more appealing to many consumers.

FDA cites as an example the decrease in consumption of trans fat, which has been linked to heart disease, primarily because of a decrease in manufacturers' use of partially hydrogenated oils. From the late 1990s to 2010, trans fat intake in adults decreased from 4.6 grams to 1.3 grams per day, with most of the reduction occurring after trans fat was added to the food label in 2003.

Changes may be coming

FDA is planning to update the Nutrition Facts label based on the latest science-based nutrition recommendations.

Paula Trumbo, Ph.D., acting director of FDA's nutrition programs staff says updates are being assessed to address such factors as current nutrient recommendations, public health concerns based on recent data on food consumption, and the agency's desire to make this information as clear and useful as possible.

The updates are still being formulated. The public will be asked to comment when the changes are proposed.

Two current news stories illustrate a seeming imbalance: a brilliant Internet prodigy is hounded to death by federal prosecutors for misdeeds involving scholarly papers. Meanwhile, flaws in a giant corporation's software threaten worldwide economic catastrophe but elicit no federal action except a fix-it-yourself warning to consumers.

The Internet prodigy was Aaron Swartz, who took his life at the age of 26 while facing federal prosecution that could have resulted in a 30-year prison sentence.

The above-it-all corporation is Oracle, which markets Java, the popular program that gives the Internet much of the interactivity prized, frankly, more by advertisers than consumers.

While still a teen-ager, Swartz developed RSS -- the Internet protocol that is distributed free to users that has enabled millions of Web sites to easily syndicate their content to anyone who want to display it elsewhere on the Web. The technology was key to the development of the popular content-sharing site Reddit, which counted Swartz as its co-founder.

Scholarly papers

Swartz ran afoul of the law when he was accused in 2011 of illegally accessing documents on the Massachusetts Institute of Technology's Web site, downloading them and making them freely available to others. 

While this may have been a bit more than a prank, it was not a scheme to make money or expose vital defense secrets to enemy nations. It was, apparently, primarily an exercise in unlocking information and making it freely available to everyone.

The government calls it theft, although it is hardly comparable to the act of using a mask and gun to deprive a storeowner of his day's receipts or bankrupting consumers through sleight-of-hand deception. It's not even comparable to copying CDs and DVDs without permission, a "crime" that drives the the entertainment and software industries to reach out frantically to their friends on Capitol Hill, seeking ever tougher penalties for what in most cases are laughably minor infractions.

But maybe it's not so strange. This is, after all, a country where you can without difficulty buy a car that will go 175 miles per hour or a rifle that will shoot hundreds of rounds without reloading but where you face prosecution for buying too many nasal decongestant tablets or using the wrong kind of asthma inhaler.

It's not as though Swartz' actions, even though technically illegal, would actually bring physical harm to anyone. Perhaps one or two tenured faculty members would receive a few dollars less in royalties for a learned article, an outcome that does not seem to warrant a $1 million fine or 30 years in prison for the perpetrator, the penalties that hung over Swartz' head.

Or, as Aaron's family and friends said in a statement: "“Aaron’s death is not simply a personal tragedy. It is the product of a criminal justice system rife with intimidation and prosecutorial overreach. Decisions made by officials in the U.S. Attorney’s office and at MIT contributed to his death.”

Above it all

Then there's Oracle, which sat on its hands for weeks as reports circulated of serious security deficiencies in its Java software. There was, critics warned, a real and present danger that hackers would be able to insert malware into computers running Java that posed a threat both to individual consumers and to businesses and governments.

The threat to consumers involves identity theft. By eavesdropping on individuals' computers, crooks could gain access to bank and credit card accounts, possibly cleaning out consumers' checking and savings accounts and plunging them thousands of dollars into debt.

An even more severe threat involves the ability of thieves and terrorists to take control of computers and turn them into zombies that could be used to carry out gigantic denial-of-service attacks on government and industry, the same types of attacks that have repeatedly disabled major banks' Web sites in recent months.

Security analysts also worry that such attacks could compromise national security, disrupt power distribution and shut down vital transportation networks.

It's a big deal, in other words. Security vulnerabilities in commercial software can result in billions of dollars in economic losses and major loss of life. This is several orders of magnitude more serioues than pilfering someone's Ph.D. thesis.

Taxpayer dollars

So worried was the Department of Homeland Security that last week it issued a nationwide warning to consumers, asking them to disable or uninstall Java on their machines. Of course, most consumers have no idea how to do this, or whether they even have Java on their computer.

Oracle remained silent during all of this, as government agencies spent taxpayer dollars to identify the threat and warn consumers. It finally issued a statement over the weekend saying it was working on an update, which it planned to issue on Tuesday.

Although issuing a terse statement, which it did not bother including in the Pressroom section of its Web site, Oracle had no information for consumers readily available on its corporate site. 

So that's it, apparently. If you're a youthful enthusiast of the information-should-be-free school, the Justice Department will spend vast quantities of taxpayer funds to prosecute and persecute you for doing what amounts to not much of anything.

But endanger hundreds of millions of consumers by exposing them to the very real potential of critical economic and physical harm? No problem. Have a nice day. We're from Washington and we're here to help you.

Java software, a key tool installed on most personal computers, is vulnerable to attack and should be shut down or removed, the U.S. Department of Homeland Security is warning.

Hundreds of millions of users are at risk of having their computers infected with malware that could result in identity theft or worse.

What's worse than identity theft? Well, your computer could be taken over by hackers and used to stage botnet attacks on innocent business or government networks in what are called denial-of-service attacks.

The threat applies to Windows, Apple and Linux operating systems.

"We are currently unaware of a practical solution to this problem," said the DHS' Computer Emergency Readiness Team (CERT).  "This vulnerability is being attacked in the wild, and is reported to be incorporated into exploit kits. Exploit code for this vulnerability is also publicly available."

Oracle Systems, which maintains Java, has yet to come up with a response to the problem.

For most computer users, uninstalling or disabling Java is relatively simple but will affect certain Web browser functions that will make some sites respond slowly, or not all.

You can find a guide to uninstalling Java here.

Over the last few weeks Wall Street has been wringing its hands over Apple. The once high-flying stock has returned to earth, down 25 percent from its peak.

The word on the Street is Apple has lost it's mojo. Once a company that could seemingly do no wrong, it has lately seemed to be, well, ordinary.

When the late Steve Jobs was running the company and serving as its driving creative force, Apple was more than a brand, it was a lifestyle, a new approach to modern consumer technology.

It started with the iPod, a portable music player making it easier for consumers to always have their music collection with them, accessible at the touch of a button.

Revolutionizing smartphones

In 2007 Apple revolutionized smartphones with the introduction of the iPhone. It quickly displaced the reigning smartphone, the Blackberry, which was designed for business customers who valued its robust encryption and instant access to email.

But Jobs and Apple figured out consumers wanted in on smartphones too, but were more interested in applications giving them access to games and the Internet.

By 2010 Apple again turned the mobile world on its ear with the introduction of the iPad, a sleek tablet computer that did just about everything the iPhone did except make telephone calls.

Last summer a California jury awarded Apple more than $1 billion in its patent infringement suit against Samsung, its main competitor from the Android side of the smartphone world. Apple appeared to be on a roll, but oddly enough that seems to be the time when things started to slide.

Fighting back with satire

Instead of being cowed by the verdict, Samsung appealed and kept turning out products. It introduced several new smartphone models in the time Apple introduced one, and made fun of its competitor with the ad below.

Being the target of Samsung satire notwithstanding, should Apple users care that the company appears to be losing marketshare to its Android and Windows competitors? Does that, in any way, diminish the products the company produces? Let's ask consumers about their recent experiences.

What customers say

"Up to this point, I have been a long, loyal, and valued apple customer," writes Mark, of St. Paul, Minn., in a ConsumerAffairs post.

Mark said he's been an Apple customer since 1987, purchasing the company's desktop computers, Powerbooks, iPods, three iPhone 4s', and an iPad 2. Mark said the problems began when his family upgraded their phones.

"All three of us have had issues with accessing/losing voicemails; many crashes on safari, contacts, and calendars resulting in lost data; battery requires frequent charging (2-3 times daily)," Mark wrote. "My family is beginning to question whether Apple products are right for us. We certainly do not want to act as Beta testers for their products."

Mark isn't alone. Some consumers, like David, of Las Vegas, Nev., seem to have a case of buyer's remorse.

"I lost my Blackberry Storm when it dropped into a huge materials shredder when it fell out of its holster," David posted at ConsumerAffairs. "This iPhone does not measure up to my antiquated 3g Blackberry, which is not available any longer . This truly is not advancement of engineering but in this current state of the world, not much is."

Two perspectives

But to be fair, Apple still has legions of loyal customers and Wall Street's perspective and consumers' view are not the same. The problem for Wall Street is that Apple's once-dominant position in the industry is threatened.

Samsung produces great products and more of them than Apple does. While Apple virtually invented the tablet, it resisted the smaller versions of the device until its competitors were well ensconced in that space.

All of this has caused investors to recalculate their assumptions about Apple, hence the falling stock price. But Apple still makes great products and whether one brand is better than the other is mostly a matter of opinion.

For consumers, the overriding question is which product provides what they want and at what price. That's the way it's always been. The fact that Apple may now be just another product troubles Wall Street but consumers probably shouldn't care.

If we've learned nothing else during the financial meltdown it's that buying a home is serious business. The landscape is littered with the results of consumers failing to pay attention to what they were doing.

In many cases, potential homebuyers were unaware of some of the pitfalls. The Consumer Financial Protection Bureau (CFPB) is taking steps to remedy that by issuing final rules to strengthen consumer protections for high-cost mortgages and to provide consumers with information about home ownership counseling. The agency is also finalizing a rule that requires escrow accounts be established for a minimum of five years for certain higher-priced mortgage loans.

“Addressing problems in the mortgage market is critical to helping our economy recover,” said CFPB Director Richard Cordray, adding that the changes “will better help consumers to understand the real costs of owning a home while protecting them from harmful practices that can trap them into high-cost mortgages.”

Addressing abuses

The Home Ownership and Equity Protection Act (HOEPA) was enacted in 1994 to address abuses in home-equity lending and refinances. Since then, HOEPA has deterred high-rate and high-fee lending in those markets. In recent years, high-cost mortgages have made up only about 0.2 percent of those types of loans.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) expanded HOEPA to cover home purchase loans and home equity lines of credit (“HELOCs”); revised HOEPA’s rate- and fee-thresholds for coverage; added a new coverage test based on a transaction’s prepayment penalties; and provided new limitations on risky loan features, as well as other new protections for high-cost mortgages. The CFPB has finalized rules to implement the Dodd-Frank Act’s amendments to HOEPA.

For loans that are high-cost mortgages, the final rule:

• Bans potentially risky features: For mortgages that qualify as high-cost, the rule generally bans balloon payments (a large, lump sum payment usually due at the end of the loan) with some exceptions, such as for certain types of loans made by creditors serving rural or underserved areas, and bans penalties for paying the loan early.
• Bans and limits certain fees and practices: The CFPB’s rule bans fees for modifying loans, caps late fees at four percent of the payment that is past due, generally prohibits closing costs from being rolled into the loan amount, and restricts the charging of fees when consumers ask for a payoff statement (a document that tells borrowers how much they need to pay off the loan). The rule also prohibits certain bad practices, such as encouraging a consumer to default on an existing loan to be refinanced by a high-cost mortgage.
• Requires housing counseling: The rule requires consumers to receive housing counseling before taking out a high-cost mortgage.

Other changes

In addition to strengthening the protections for high-cost mortgages, the CFPB is implementing a requirement of the Dodd-Frank Act that lenders provide a list of home ownership counseling organizations to consumers shortly after they apply for a mortgage so consumers know where to get help when deciding what loan is best for them.

The agency is also implementing other changes made by the Dodd-Frank Act concerning escrow accounts. An escrow account is an account that a lender may set up to pay certain recurring property-related expenses on a consumer’s behalf, such as property taxes and homeowner’s insurance. Escrow accounts help to ensure that consumers have enough money to pay those bills when they come because the lender breaks the expenses down into monthly installments and adds them to the monthly mortgage payment.

Through an escrow account, consumers can better see the true cost of owning a home with insurance and tax costs laid out with each mortgage payment and are better assured that those costs are paid in a timely manner.

Under current regulations, creditors are required to establish escrow accounts for certain higher-priced mortgage loans for a minimum of one year. The new final rule implements changes from the Dodd-Frank Act that generally extend the required duration of an escrow account on such mortgage loans from a minimum of one year to a minimum of five years. To preserve access to credit, the rule exempts loans made by certain creditors that operate predominantly in rural or underserved areas, as long as certain other criteria are met.

It seems that 2013 is off to a fast start, at least when it comes to new business acquisitions.

So far one of the biggest acquisitions to be announced in 2013 is the purchasing of Zipcar by the rental car company Avis for a reported $491.2 million.

The deal will undoubtedly allow Avis to better compete with other rental car companies like Hertz, who have also gotten into the car-sharing craze, which has exploded among younger consumers who would rather be part of a membership and get as-they-need-it access to a vehicle, instead of renting or owning one the traditional way.

The deal also gives Avis a much-needed dose of cool and youth appeal, as Zipcar pretty much created the car-sharing business, which is mainly used by college students and 20-somethings. Because, let’s face it, younger consumers use their vehicles differently.

And just like Hertz, Avis is aware of this purchasing difference and up until now the company has missed out on a big portion of the consumer dollar. But now, not only will Avis tap into those younger consumer dollars, it will also give itself a necessary shot in the arm and appear a little more hip and modern. 

But what does this all mean for the consumer?

It means that folks will have another way to use Avis and another way to avoid going to a branch office, forming a line and filling out a bunch of pain-in-the-neck-paperwork when renting a vehicle.

The acquisition could also mean cheaper prices for the consumer, as the car sharing model typically allows for lower rental costs and automated,  flexible pick-up and drop-off times, which greatly benefits those people who only need a vehicle for a few hours at a time.

Zipcar’s current customer base will also benefit, since Avis will undoubtedly be able to provide more vehicles at more locations, and also bring car sharing further into the everyday lives of adults, families and business travelers.

Pinterest pinches Punchfork

Another acquisition announced in 2013 was Pinterest buying out the recipe site Punchfork.  

Jeff Miller, who is CEO of Punchfork, says the deal is a perfect pairing, which many would probably agree with since both sites look similar, and allow users to share trendy ideas through big, bright colorful photos.

“We believe that a unified destination benefits our users in the long run," said Miller. “And the Punchfork team will focus on contributing to Pinterest as the premier platform for discovering and sharing new recipes and other interests on the web.”

Last month we did a feature on Punchfork and explained how it’s been a popular site for people to receive and offer new cooking ideas, and the visual candy that the site provides is almost as fun to access as the unique recipes.

The new deal serves as Pinterest’s first acquisition, and many people were surprised that Punchfork sold its brand, since the site only started in 2011 and just really began to gain momentum.

But Punchfork being bought out only means a stronger Internet presence for the company, and although the site will be officially taken down and users will have to log on through Pinterest, the deal will only make the recipe site more present in the mind of consumers, and also more present on their web browsers.

What does the Pinterest deal mean for the consumer?

If you liked the way Punchfork gives cooking inspiration then you’ll probably be even more inspired, as the site will take on countless more users since Pinterest has become an official Internet powerhouse.

The deal also makes the Internet cooking community even bigger, which is perfect for those folks who go online for meal ideas.

And since sharing seems to be one of the main benefits to being online nowadays, Punchfork users will be able to share and receive ideas in larger doses and take advantage of even more recipes. Plus, you’ll be able to see more big beautiful pictures of tasty foods, which is a nice plus.

Tully's

This last acquisition primarily affects our readers on the West coast, but actor Patrick Dempsey’s buying of Tully’s Coffee--a Seattle-based coffee chain--is significant because it’s the first David and Goliath story in the business world since 2013 began. 

Dempsey’s company Global Baristas LLC won a bankruptcy auction against the godfather of coffee houses Starbucks, and saved the beloved chain from closure, while announcing that he plans to keep the original name.

“We met the green monster, looked her in the eye and she blinked,” tweeted Dempsey after winning the bid. “We got it! Thank you Seattle!”

The deal will allow the small coffee chain to stay in business, at least for now. Tully’s filed for chapter 11 in October of 2012, mainly due to low sales and not being able to maintain some of its store leases.

It also allows the beloved coffee brand to remain in the public eye and still be able to throw blows at the bigger and much more powerful Starbucks for coffee supremacy on the West coast.

But what does the deal mean for the consumer?

It means another alternative for coffee lovers, especially since Tully’s is known for a lighter, less harsh cup of Joe.

Hopefully, it will also mean cheaper prices for a cup of coffee compared to Starbucks, which has taken coffee prices practically to the moon.

The deal also means thousands of Tully’s workers will keep their jobs,  which will make the Grey's Anatomy heart throb a real hero, at least in the Seattle area.

Maybe the locals should buy Dempsey a cup of coffee as a thank you.

Being in an auto accident is a traumatic event. Even if no one is seriously hurt there can be lasting repercussions, especially if you encounter resistance during the insurance claims process. And that appears to be happening a lot, industrywide.

Diana, of Fresh Meadows, N.Y., reports being in an accident on November 29.

"I was making a left turn in the proper turning lane when a minivan struck me on the right hand side attempting to make a left turn from a middle lane," Diane wrote in a recent ConsumerAffairs post. "Laws of driving, we know this is not allowed!"

Geico insured them both

To make matters worse Diana said the driver of the other car left the scene, but not before she got the make of the car and the license number. She phoned the police and initiated an accident report. She said she also called her insurance company, Geico, providing pictures of her car at the scene. Police quickly tracked down the other driver and Diana assumed all was well. But, she said, the other driver was also insured by Geico.

"Geico inspected the other party's car and found that he had past damage to his minivan but there was no concrete evidence that he had hit my car and now is denying the accident ever happened," Diana writes. "Now he is saying he never touched my car. I have the paint on my car still to prove it and pictures. Geico wants to dismiss this case."

Takeisha, of Ft. Lauderdale, Fla., writes that she was also involved in an accident. Though she says she was not at fault the company insuring the other driver initially refused to pay. She said she was forced to cover the repairs out-of-pocket until she was finally reimbursed. But it turned out she wasn't finished paying.

Escalating premiums

"I had zero fault for the accident yet my insurance premium at Allstateis now more than 200 percent more than it was before the accident," Takeisha wrote. "I have a good driving record. I am over 40 yet my premium is like that of a teen driver. I have paid for insurance and never used it . Why am I being penalized for something beyond my control?"

J.B., of Richmond, Va., reports a two-year wrangle with Progressive after a serious accident injured both him and his children.

"Progressive attempted to allow the statute of limitations to run out, thereby having no obligation to pay me a dime," J.B. wrote. "I had to file a Warrant in Debt to wrangle a settlement from them, which did produce a low ball offer, and they would not offer more."

Advice

J.B. said he went to court to get a higher settlement and said the court granted it, but that the company has yet to pay. His advice to those who get in an accident:

"Get a lawyer, day one," J.B. wrote. "That is the way the lawyers have written the statutes, ensuring their own business."

Lawyers at Lane & Lane, in Chicago, would probably agree with that advice. In the firm's blog, attorneys also recommend that you go to the emergency room, even if you don't feel hurt.

Getting immediate medical attention creates a paper trail you will need should things go sour with the insurance company, as an increasing number of consumers have found.

Google said it will provide free Wi-Fi in the Chelsea neighborhood of New York City, where the company maintains its New York offices. It will become the largest contiguous Wi-Fi network in New York.

"This network will not only be a resource for the 2,000-plus residents of the Fulton Houses, it will also serve the 5,000-plus student population of Chelsea as well as the hundreds of workers, retail customers and tourists who visit our neighborhood every day," said Ben Fried, Google's Chief Information Officer.

The network will cover all of the outdoor areas of the Fulton Houses, a property owned and managed by the New York City Housing Authority, as well as several of the local public schools.

“We are excited to partner with Google in creating an important digital amenity in New York City and giving thousands of New Yorkers free Internet access,” said Dan Biederman, President of the Chelsea Improvement Company, which partnered with Google in the effort.

“New York is determined to become the world’s leading digital city, and universal access to high-speed Internet is one of the core building blocks of that vision,” said Mayor Michael Bloomberg. “Thanks to Google, free Wi-Fi across this part of Chelsea takes us another step closer to that goal.”

Fiber trial

Google is also conducting a massive experiment in bringing super-high-speed Internet connections to the home, wiring sections of Kansas City with fiber optic cable.

A recent survey found 30 percent of possible subscribers in the Kansas City metro area footprint, coined "fiberhoods," have paid a $10 pre-registration fee and 60 percent say they are interested in signing up for the service.

"Google Fiber has conducted a remarkable marketing campaign," said Glen Friedman, president of Ideas & Solutions Inc. "Historically, pay TV 'overbuilders' penetrate about one-third of their marketplace over time. This level of interest in the beginning is unprecedented. For Google Fiber, the challenge moving forward is to do an equally good job on the fulfillment."

The Internet giant employed a host of measured marketing tactics in Kansas City beyond the usual advertising and news coverage. Google and Google Fiber used their online advertising juggernaut, together with social media; they also hosted local promotional events planned by neighborhood organizers, opened a Google Fiber store, operated a Google ice cream truck and planted yard signs.