Current Events in June 2014

This is a bad time to be a frequent flyer in America, not only because of the Transportation Security Administration and other post-9/11 indignitiesinflicted upon innocent fliers, but because the value of “frequent flyer” status itself keeps eroding. This week, United Airlines made itself the latest anecdote in support of that theory.

In February, Delta Air Lines changed its SkyMiles frequent flyer program, henceforth awarding points based on dollars spent rather than miles flown. At the time, Delta announced on its Facebook page that the change “will make Award redemption easier and better reward your loyalty,” though many irate SkyMiles customers responded with posts detailing how Delta's changes leave them much worse off than they were before.

In April, the Supreme Court ruled in a 9-0 decision that airline companies (Northwest Airlines, in that specific case) have the right to kick customers out of their frequent flyer programs if the customers complain “too much,” with the airlines deciding how much is too much. (The Supreme Court decision was actually based on the legal distinction between contracts and covenants: a frequent flyer agreement is only a covenant.)

And this week, United Airlines decided to imitate its competitor Delta, and change its frequent flyer program to reward miles based on dollars paid rather than miles flown.

United's Mileage Plus Updates website discusses “The 2015 Mileage Plus Program” and says:

As of March 1, 2015, the award miles you earn on most United and United Express® tickets will be based on your ticket price (that is, base fare plus carrier-imposed surcharges) instead of the distance you fly, so members will be rewarded for their travel spending on United. And when you have Premier® status, you’ll earn even more.

In its press announcement, United spelled it out a bit more precisely, saying:

"Beginning March 1, 2015, members will earn award miles based on the price of their ticket – specifically the base fare and carrier-imposed surcharges – and their MileagePlus status. Members will earn five miles for every dollar spent, while those with MileagePlus Premier status will earn the following on their base fare and carrier surcharges:

The new earning structure will apply to MileagePlus members worldwide for most tickets for travel on United and United Express flights, and most United-issued tickets for flights on the company's airline partners – tickets with numbers that begin with "016." Members may earn up to 75,000 award miles per ticket."

Facebook announcement

As with Delta three months before, United announced the change to its customers through its Facebook page. On June 10, United posted this:

We're changing the way you'll earn MileagePlus award miles on flights beginning March 1, 2015. Details and answers to frequently asked questions are available on mileageplusupdates.com.

Also as with Delta, many angry customers on Facebook responded with detailed complaints, and some luckless employee of the airline had to try winning those customers back.

For example: the very first comment on United's Facebook announcement was made by someone named Alex (and at presstime, with that comment only slightly more than 24 hours old, it had already collected 85 “likes”):

Have been a massive united fan, 1K for several years in the last, club credit card holder etc. There have been small changes in the last that were slightly bad but this is horrendous. Time to explore my options.... Looks like 2014 is my last united year.

The United employee responded (with 0 “likes” as of presstime):

Alex, we hope you'll take the time to read about all of the changes that are going to occur and make the decision to stick with us. Thanks for your post

Alex's prompt reply (with 35 “likes”):“Appreciate the reply united... But the problem is I have read it and it only be benefits those buying high value biz class tickets …. that is a small sub seg of your consumers....”

Another customer, “Jered,” was more specific:

This is really disappointing. By my read, flight earning has been devalued by about 50%. I could understand this _or_ the devaluation of international redemption options that happened in February, but together you've reduced the value of United points to me by 75%!

A simple example: BOS-SFO. This is 5,416 PQM round trip. After the 1/1/2014 changes, to get the corresponding now necessary PQD, I need a ticket that costs at least $542.

That $542 ticket that keeps me at 1K status (assuming I fly enough, which I do) used to earn me 5,416+100% = 10,832 RDM. With your new chart, it earns me 5,962.

Why are you doing this? This drives more point earning to credit card partners, which largely don't have United loyalty -- I can transfer my Chase points to a dozen different programs.

Sarcastic suggestions

United responded, “Jered, you will still earn PQM based on the distance of your flights,” which led to dozens of derisive comments, such as “Yes Jered, you don't really need those "extra" 5,000 miles do you?”

“Mark” offered a sarcastic suggestion of United executives' rationale:

right, no one needs the miles, they were just a little extra perk that allowed you to bring your family along on trips. who could possibly need that? …. I can image the conversation in the backroom - "just where do you think the line is? You know, where we tick them off so much they actually go somewhere else? Let's play with that a little. We don't really need people flying in Economy anyway. Let's focus on the people from large companies that always fly business class and actually have no idea what the flight actually costs? In fact, why don't we re-configure to 70% business and 30% economy? We can sell that 30% to the clueless and desperate. We will be rolling in the dough! (outrageous laughter ensues)"

Many cynical commenters predicted that even switching from United to an airline with a better frequent flyer program wouldn't necessarily work: after all, how likely is it that Delta and United will be the only two airlines who impose such changes?

For that matter, the Washington Post's Wonkblog seems to agree; it reported the changes to United's policy under the headline “The slow demise of the frequent flyer program,” and ended with the suggestion that anyone who's been hoarding frequent flyer miles should consider using them soon, in case future program changes leave them less valuable than they are now.

Sales of new cars are booming in the U.S., which is good for manufacturers and dealers. It's also pretty good for lenders, at least for now.

As they flood new car showrooms consumers are taking on longer-term debt to pay for their new rides. According to Experian Automotive, the three-year car note is pretty much a thing of the past.

The credit agency now says the average automotive loan term in the first quarter of the year reached 66 months for the first time.

But five years is just the average. The company's analysis shows loans of 73 to 84 months – that's six to seven years – accounted for nearly 25% of all new vehicle loans originated during the quarter, up 27.6% since the same period in 2013.

Pricier cars

Loans are lasting longer because the price of the cars consumers are buying is rising. The Experian Automotive analysis found the average monthly new vehicle payment reached a record high $474 in the first quarter, rising from $459 in the first quarter of 2013.

"As the cost of purchasing a new vehicle continues to rise, consumers clearly are stretching the loan term to help lower monthly payments, keeping them at a manageable level," said Melinda Zabritski, Experian Automotive's senior director of automotive credit.

Zabritski says stretching out the payment is both good and bad. On the positive side it allows for a lower, more affordable monthly payment. But there is a downside.

"Consumers can find themselves paying more in interest or being upside-down on their loan if they seek to trade their vehicle in early,” she said. “It is definitely a choice that consumers will want to weigh carefully before making a final purchasing decision."

Leases gain ground

Perhaps because new cars cost more and lengthy loan terms are still expensive, more car buyers are going the leasing route. According to Experian Automotive's figures, auto leasing was at an all-time high in the first quarter.

Leases accounted for 30.2% of all financed vehicles, compared to 27.5% in the first quarter of last year. Even when you consider the cars purchased for cash, a staggering 1 in 4, or 25.6%, were leased in in the first 3 months of this year, compared to 22.9% a year ago.

It was also easier to finance a car in the first quarter of the year. For new vehicle loans the average credit score was 714, down 17 points from the same period a year ago.

"Over the last several quarters, leasing has come back as a very desirable option for consumers," Zabritski said. "Whether they are interested in getting the latest and greatest models or simply do not want to commit to a long-term purchase, consumers are leasing new vehicles in greater numbers than ever before.”

Credit card debt

Taken by itself, the Experian report may not tell you a lot about consumers' level of comfort with debt. But an analysis of credit card balances suggests consumers are reverting to their old, pre-recession habits of carrying more of a debt load.

A study by CardHub, a financial website, looked at how much consumers paid on their credit card balances in the first quarter of the year. The numbers show they paid off about $32.5 billion in credit card balances during the period.

While it appears to be an encouraging development, the study shows that's actually 1% less than they paid in the first quarter of last year.

“Consumers historically pay off a lot of credit card debt during the first quarter of the year – with tax refunds, annual salary bonuses, and New Year’s Resolutions fueling their efforts,” the authors write. “But last year’s first quarter pay down was 4% smaller than in 2012, and we ended 2013 having incurred 6% more debt overall.”

As a result, CardHub projects that U.S. consumers will end 2014 with a $41.9 billion net increase in credit card debt. That's 8% more than consumers accumulated last year and a 14% increase compared to 2012.  

You would think that scientists had just discovered a way to stream music over the Internet. After ignoring it for years, the giants of the online world are falling over each other to launch their version of Pandora, which by most reckonings is the oldest legitimate (meaning, legal) music streamer.

Spotify came along a few years later and offered a more customizable experience than Pandora, which remains by far the largest. 

In recent weeks, Apple has bought Dr. Dre's Beats, which not long before had bought MOG, and Google is said to be in talks to buy Songza, which we're told programs music to suit your mood, time of day and what you happen to be doing -- or, at least what you say you're doing.

Now, reports say Amazon will follow suit, launching a streaming music service for its Amazon Prime members tomorrow.

Prime, which costs $99 a year, already offers a streaming video service, free two-day shipping on many items, a Kindle lending library and probably some other things everyone's forgotten about. Most of the competing music services cost about $10 a month.

Amazon already has a pretty good cloud player that will strum the music you buy from Amazon and songs you've uploaded from CDs. Its streaming service will be somewhat truncated, with a somewhat smaller library than Spotify, according to a report in the New York Post. 

Sony and Warner Music are already on board, the Post said, while Universal Music hasn't yet inked a deal.

Like lots of things, seafood is good for you, except when it's not. Generally speaking, seafood is healthful because it contains omega-3 fatty acids but it can also contain mercury and other potentially harmful pollutants.

Doctors have long advised pregnant and nursing women to avoid seafoods that are high in mercury and now the U.S. Food and Drug Administration and the Environmental Protection Agency are updating their recommendations, but only after being sued into action by food safety advocates.

The latest draft of the agencies' recommendations advise pregnant and breastfeeding women, those who might become pregnant, and young children to eat at least eight ounces and up to 12 ounces (two to three servings) per week of a variety of fish that are lower in mercury to support fetal growth and development.

The latest guidance is the result of a lawsuit filed by the Center for Science in the Public Interest (CSPI) and the Mercury Policy Project (MPP) after the FDA failed for more than two years to resond to a petition asking that the FDA require more information on ingredients on seafood labels and in store signage.

After two and a half years, CSPI and MPP filed a lawsuit asking for a deadline on just when the FDA might get around to doing something.

In May, FDA Commissioner Margaret Hamburg said the agency would finally update its guidance for pregnant women and children but had no intention of requiring labels or store signage, Food Safety News reported. 

Before issuing a final version of its guidance, the agencies will consider public comments and go through some of the other rituals that precede such actions, including a series of focus groups and seeking advice from the FDA’s Risk Communication Advisory Committee and conduct a series of focus groups.

Statins -- the drugs that lower cholesterol -- have no doubt saved many lives by preventing heart attacks. But they can also have a devastating side effect, raising the risk of diabetes in some users.

Now, Canadian researchers at McMaster University say they have found one of the pathways that link statins to diabetes, a key tool in developing the next generation of statins.

"Statins are among the most prescribed drugs in the world, and have been fantastic at reducing cardiovascular events," said McMasters researcher Jonathan Schertzer. "But the side effects of statins can be far worse than not being able to eat grapefruit. Recently, an increased risk of diabetes has been added to the warning label for statin use. This was perplexing to us because if you are improving your metabolic profile with statins you should actually be decreasing the incidence of diabetes with these drugs, yet, the opposite happened."

Immune response

Schertzer's group investigated further.

"We found that statins activated a very specific immune response, which stopped insulin from doing its job properly. So we connected the dots and found that combining statins with another drug on top of it, Glyburide, suppressed this side effect."

He says the finding has the potential to develop new targets for this immune pathway that do not interfere with the benefits of statins.

Schertzer emphasized that statins are important and widely prescribed drugs and understanding how they promote adverse effects may lead to necessary improvements in this drug class, which has the potential to affect a large segment of the population.

"With the new federal warning label on the risk of diabetes with statin usage, people are heavily debating its pros and cons. We think this is the wrong conversation to have. Statins are a great drug for many people. What we really should be talking about is how to make them better and we are beginning to understand the basic biology of statins so we can do just that."

The research is published in the medical journal Diabetes and was supported by funding from the Canadian Institutes of Health Research and the Canadian Diabetes Association.

After posting 2 straight declines, mortgage applications bounced back with a surge of 10.3% in the week ending June 6.

The Mortgage Bankers Association (MBA), in releasing its weekly mortgage applications survey, said the previous week’s results included an adjustment for the Memorial Day holiday.

The Refinance Index surged 11%, pushing the refinance share of mortgage activity up 1% -- to 54% of total applications. The adjustable-rate mortgage (ARM) share of activity was unchanged at 8% of total applications.

Contract interest rates

• The average contract interest rate for 30-year fixed-rate mortgages (FRMs) with conforming loan balances ($417,000 or less) rose 8 basis points -- to 4.34% from 4.26% -- with points increasing to 0.16 from 0.13 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
• The average contract interest rate for 30-year FRMs with jumbo loan balances (greater than $417,000) increased from 4.22% to 4.27%, with points increasing to 0.12 from 0.11 (including the origination fee) for 80% LTV loans. The effective rate was higher.
• The average contract interest rate for 30-year FRMs backed by the FHA was up 7 basis points to 4.06% from 3.99%, with points increasing to -0.03 from -0.46 (including the origination fee) for 80% LTV loans. The effective rate rose from last week.
• The average contract interest rate for 15-year FRMs jumped to to 3.43% from 3.39%, with points increasing to 0.22 from 0.07 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
• The average contract interest rate for 5/1 ARMs rose 7 basis points to 3.18%, with points increasing to 0.35 from 0.05 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

The survey covers over 75 percent of all U.S. retail residential mortgage applications.

Airline passengers had a little less to grouse about during April.

According to the Transportation Department’s (DOT) Air Travel Consumer Report, the nation’s largest airlines posted an on-time arrival rate of 79.6% in April compared with the 77.3% rate posted in April 2013 and the 77.6% rate the month before.

In addition, carriers canceled just 1.1% of their scheduled domestic flights that month. The rate a year earlier was 1.8% and 1.9% in March 2014.

There was even more good news when it came to delays. In April, airlines reported no tarmac delays of more than 3 hours on domestic flights and just 1 tarmac delay of more than 4 hours on an international flight.

The report also includes data on chronically delayed flights and their causes, mishandled baggage reports, airline service complaints, and incidents involving the loss, death, or injury of pets traveling by air.

The complete Air Travel Consumer Report is available on the DOT website.

The U.S. Consumer Product Safety Commission (CPSC) has agreed to accept a payment of a $3.1 civil penalty by Cinmar LLC, of West Chester, Ohio, to settle charges that the company knowingly failed to report to a defect with its foldaway two-and three-step ladders.

CPSC staff charged the company knowingly failed to report immediately -- as required by law -- that the steps of the step ladders, made of mahogany wood and designed for use in walk-in closets, could break unexpectedly, posing a fall hazard to consumers.

The ladders were sold nationwide between November 2005, and July 2010, for $90 to $150.

Delayed reporting

According to CPSC, Cinmar did not file its full report with the agency until July 29, 2010. By that time, more than 1,200 consumers had returned their ladders to Cinmar, most citing breakage, and others citing cosmetic problems.

Additionally, by that time, Cinmar had received notice of at least two dozen injuries, one requiring surgery and another necessitating hospitalization. On January 20, 2011, Cinmar and CPSC announced the recall of 38,000 wooden step ladders.

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 which 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.

Compliance program ordered

In addition to paying a monetary penalty, Cinmar has agreed to implement and maintain a compliance program designed to ensure compliance with the safety statutes and regulations enforced by CPSC. Cinmar has also agreed to maintain and enforce a system of internal controls and procedures designed to ensure that:

• information required to be disclosed by the firm to the commission is recorded,processed and reported, in accordance with applicable law;
• all reporting made to CPSC is timely, truthful, complete and accurate; and
• prompt disclosure is made to Cinmar management of any significant deficiencies or material weaknesses in the design or operation of such internal controls that are reasonably likely to adversely affect, in any material respect, the company’s ability to record, process and report to the Commission.

Cinmar further agreed to provide written documentation of such improvements, processes and controls, upon request of CPSC staff; to cooperate fully and truthfully with CPSC staff; and to make available all information, materials and personnel deemed necessary by staff to evaluate the company’s compliance with the terms of the agreement.

In agreeing to the settlement, Cinmar neither admits nor denies CPSC staff’s charges.

Weil-McLain of Michigan City, Ind.,is recalling about 8,340 Ultra models 80, 105, 155 and 230 MBH Ultra series boilers in the U.S. and Canada.

A cap on the boiler’s manifold can crack and release gas into the home, posing a risk of fire and explosion.

The company has received 11 reports of manifold caps cracking. No fires or injuries have been reported.

This recall involves Weil-McLain Ultra models 80, 105, 155 and 230 MBH gas-fired boilers used for space heating. The boilers have a serial number range between CP 6557046 and CP 6955985. Model and serial numbers are located on a bar-coded label affixed to the lower right side of the boiler, behind the removable front panel.

The boilers have a Weil-McLain logo plate affixed to the front, a pewter/flat black cover and are either freestanding or wall-mounted.

The boilers, manufactured in the U.S., were distributed by plumbing and heating wholesale distributors, plumbers and contractors nationwide from June 2012, through March 2014, for about $4,200 to $6,200.

Consumers should immediately stop using the recalled boilers, turn off the gas supply to the boilers and contact Weil-McLain to schedule a free inspection and repair.

Consumers may contact Weil-McLain toll-free at (888) 770-7139 from 7 a.m. to 6 p.m. CT Monday through Friday.

Time passes. You get on with your life and you have plenty to worry about – the kids, the mortgage, your job.

But you've never worried about your parents because they have always been the rock in your life. They have always looked out for you. Then, one day you realize you have to look out for them.

And sometimes the first time you realize that is when a con artist has made them the victim of a scam.

"Unfortunately, we know from our research that seniors are very attractive targets," Eleanor Blayney, Consumer Advocate for the Certified Financial Planner Board of Standards told ConsumerAffairs recently.

In a 2013 report, AARP recorded a surge in scams in New York City directed at senior citizens. Not only were the numbers up, the AARP report estimated that one third of elderly fraud victims don't report the crimes.

"Scam artists and fraudsters in New York City looking for their next victims have their craft honed down to a science," said AARP's state director Beth Finkel, in reporting the data.

Law enforcement has known for a long time that criminals usually prefer seniors as their victims, especially for economic crimes. Seniors are likely to have money tucked away. They probably own their home, or have lots of equity in it and have excellent credit.

So now it's your job to protect your elderly parents from scammers – and sometimes from themselves. What are the signs that they're being victimized?

What to look for

First, pay attention to what they are buying. If you notice a sudden change in financial behavior, such as a normally frugal parent suddenly making an odd major purchase – such as an incredibly expensive vacuum cleaner -- it could be cause for concern.

If they start expressing an interest in a reverse mortgage, you should ask why. Reverse mortgages are highly complex loans that are not right for everyone.

The New York Times reports regulators are cracking down on new cases of abuse as smaller mortgage brokers, including some that used to be in the subprime sector, target seniors.

Often seniors only hear that a reverse mortgage on their paid-for home could give them cash, without disclosing the numerous fees and other conditions.

Pay attention to who calls your parents on the phone. If you notice a large number of telemarketer calls, there is a good chance your parent has already been scammed at least once. Victims go on lists that are bought and sold on the black market.

The same goes with direct mail. Pay attention to the solicitations your parents get. Baby Boomers tend to ignore these of pitches and immediately toss them in the trash. The older generation – which lived through an era when daily mail was important -- read them, and all too often respond.

Slick pitches

Carol, a reader posting a comment on one of our previous stories about elder scams, said she must constantly stay vigilant to guard her mother from slick con artists.

“Last week, she got a call from a children's charity thanking her for her for the $40 pledge she made to them over the phone the week before,” Carol wrote. “Funny, mom was not home that week! She was at my house in another state! I told them what they could do with their fictitious pledge.”

The scammer obviously was hoping Carol's mother would be embarrassed she forgot the pledge – which she never made -- and write the check.

Another reader, Kathy, reported her mother got a call saying her husband had agreed to make a major purchase and they now needed a credit card number. An impossibility, since Kathy's father was deceased.

Monitor credit reports

Protecting an elderly parent requires some work. With your parent's permission, obtain their free credit report from the 3 credit reporting agencies, as allowed by federal law, at www.annualcreditreport.com. Read the reports carefully, looking for suspicious entries.

Since its establishment the Consumer Financial Protection Bureau (CFPB) has tried to offer help to caregivers who not only have to worry about their parents' physical well-being, but also protect them from financial predators.

If you are in the position of having to manage an elderly parent's financial affairs, you may find some help here.

It's that time of the year -- time to haul the gas grill out to the patio and fire it up. This often turns out not to be as easy as it sounds. Many grills sit outside all winter and the damp, cold weather takes its toll, even when the grill is covered, as Jill of North Babylon, N.Y. discovered.

"Grill remained covered all winter, and still rusted out. I went to move the grill and the wheels collapsed from rust and fell on me!" Jill said of her Char-Broil grill. "I see online others posted pics with the same exact problem. The grates do not last even if you bring them in, they deteriorate and are a pain to clean!"

It's not always rust that's the problem. Heather of Evansville, Ind., was using her Char-Broil for only the second time. She had kept it clean and covered up when not in use, she said, but things quickly went awry anyway.

"Fired it up and went in to get my meat, and when I returned the grill was on FIRE! Flames were pouring out the front and I couldn't even turn it off because the knobs had melted and disintegrated. The ignition knob had melted along with the wires connecting the side burner," Heather said. "I had to spray water on it in order to get the fire down enough to shut it down at the propane tank. ... Never in my life have I seen something like this with a new grill."

Then there's Bob of Battle Creek, Mich., who describes his grill as "total junk," thanks to recurring rust problems.

"They sent new burners when i paid shipping and I also bought both parts of the grates flame tamers cross-over tubes. One year later it is all junk again," Bob said. "All the other stuff is rusted through and crumbling and now the tub is rusted out. The parts to replace are more than a brand new grill."

Universal problem?

It's not just Char-Broil grills that are prone to rusting and other problems, of course. We've heard recently about Kenmore about Sue from Wharton, N.J.

"We purchased a 4-burner gas grill from Sears in July 2012. The tray below the burners is already rusted out. The grill is kept on the deck covered at all times. I called customer solutions to help, but the only answer I received was that I would have to pay $96 to repair it."

Dave of Sunrise, Fla., is steamed about his Brinkmann Zone LP.NG grill -- but not because it rusted or caught fire.

"It does not get hot enough to sear, it bakes rather than grills," Dave said, adding that he purchased the natural gas conversion kit for $60 but found to his dismay that the kit came with no instructions. "I have been trying to contact Brinkmann for a week now ... they have an automated system to call back and they NEVER called me back."

Lost it all

But while Char-Broil and Brinkmann are leading the gas grill complaint derby so far this year, that old standby Weber is not sitting on the sidelines.

"We purchased a new Weber gas grill from Home Depot. We used it to cook two pork chops the day after we purchased it," said Carrie of Bedford, Va. "My husband lit it for the second time to cook a couple of steaks. The steaks never made it to the grill. After turning on the burners to preheat the grill, there was a boom and the grill was shooting 8-foot flames out of the back.

"The flames were so instantly big that they jumped to my house. It was only minutes before the house was ablaze. We lost it all. We are now using charcoal and will never buy anything from Weber again," Carrie concluded.

Safety tips

Not everyone is an unfortunate as Carrier but the U.S. Consumer Product Safety Commission (CPSC) says that damage and injuries from gas grills are common, with an average of 30 people injured by fires and explosions each year.

Many of the fires and explosions occur when consumers first use a grill that has been left idle for a period of time or just after refilling and reattaching the grill's gas container, CPSC notes. To reduce the risk of fire or explosion, consumers should routinely perform the following safety checks:

-- Check the tubes that lead into the burner for any blockage from insects, spiders, or food grease. Use a pipe cleaner or wire to clear blockage and push it through to the main part of the burner.

-- Check grill hoses for cracking, brittleness, holes, and leaks. Make sure there are no sharp bends in the hose or tubing.

-- Move gas hoses as far away as possible from hot surfaces and dripping hot grease. If you can't move the hoses, install a heat shield to protect them.

-- Replace scratched or nicked connectors, which can eventually leak gas.

-- Check for gas leaks, following the manufacturer's instructions, if you smell gas or when you reconnect the grill to the LP gas container. If you detect a leak, immediately turn off the gas and don't attempt to light the grill until the leak is fixed.

-- Keep lighted cigarettes, matches, or open flames away from a leaking grill.

-- Never use a grill indoors. Use the grill at least 10 feet away from your house or any building. Do not use the grill in a garage, breezeway, carport, porch, or under a surface that can catch fire.

-- Do not attempt to repair the tank valve or the appliance yourself. See an LP gas dealer or a qualified appliance repair person.

-- Always follow the manufacturer's instructions that accompany the grill.

It's the start of summer vacation season, and although you might be looking forward to taking a few days off work, the thieves, fraudsters and con artists of the world have no intention of doing so.

Fortunately, most of the “protect yourself from summer scams” rules you see out there refer merely to summer-specific variations of common scams you know to guard against already.

On June 9, for example, the Better Business Bureau released a list of the “Top Five Summer Scams.” Number one on the list is “Vacation scams,” covering everything from fake timeshare rentals to bogus resort vacations.

The BBB had this to say:

Fake travel agents and websites use too-good-to-be-true deals only to take your money. … Make sure the offer is legitimate by checking with BBB at bbb.org. If BBB does not have a BBB Business Review on the company, dig deeper by conducting a Google search of the company’s phone number, address or website to see if consumers have reported any issues.

Those particular scams — wherein the scammer collects money for a timeshare, resort trip, or other good or service he doesn't actually have for sale — are basically the same as the infamous rental or home-selling scam: the thief copies photos and listings from legitimate real-estate (or vacation, resort or timeshare) websites, uses the photos to put up fake advertisements, and fools victims into paying for rentals they have no chance of ever getting.

Many of the rental-scam-protection rules also apply to vacation scams: don't trust anyone who demands payment in cash, via wire transfer or prepaid money card, or any other untraceable method of payment. But other rental-scam protection rules, like “always meet the landlord face-to-face,” clearly aren't practical when booking time in a vacation resort hundreds or thousands of miles from home.

Moving rip-offs

The Better Business Bureau also warns that summer is peak season for “moving scams,” mainly because warm weather is when most people move to new homes anyway.

In addition to researching possible moving companies, to see if there are complaints about them registered with the Better Business Bureau and on consumer-reviews websites like this, the BBB also advises: “Be careful with price quotes over the phone and online estimates, as they might not be binding.  Also, remember that the lowest estimate can sometimes be an unrealistic, low-ball offer, which may cost you more in the end.”

In other words, never trust an oral price quote; get everything in writing before you agree to let a moving company take possession of all your material goods.

Concert tickets

The BBB's third summer scam involves fraudulent sales of concert tickets — again, because summer is when the most concerts happen, anyway. This too is similar to fake rental or fake resort scams — the fraudster gets money for something he doesn't actually have to sell.

However, the rental-scam protection rules do apply in full to concert scams. As the BBB said:

“Oftentimes, phony sellers trick consumers into wiring money with no intention of sending real tickets. Most concert venues allow ticket holders to print tickets from personal computers, which gives scammers the opportunity to sell the same ticket repeatedly to unsuspecting consumers. Be wary of sellers who offer a sad tale as to why they cannot use the tickets, only accept cash, want the money wired or transferred through a prepaid account, and/or pressure you to act quickly.”

Warm weather also brings out the door-to-door salesmen, which is why door-to-door scams occupy the fourth spot on the BBB's summer-scam list. The Bureau says “Many door-to-door salesmen offer deals for everything from driveway paving and air conditioning repair to security systems. Before saying yes, get all promises in writing, including start and finish dates. Never sign a contract that has an open-ended completion date or blank spaces.”

It's also worth remembering a certain anti-scam rule we've promoted here many times: where businesses are concerned, expect them to obey the rule “Don't call me, I'll call you.”

For example, if you think there's a problem with your driveway pavement or home air-conditioning system, by all means do some research and find a reputable repair person to hire. But if people come to you out of the blue, offering to repair your driveway, fix your AC, improve the quality of your tapwater or anything else — ignore them as you would ignore any business that violates the “Don't call me; I'll call you” rule.

Summer jobs

The fifth and final summer scam listed by the BBB is the employment scam, because of all those extra people seeking summer jobs. The BBB's anti-scam rules apply to those seeking employment at any time of the year, not just a summer job: “Be wary of employers who require fees for training and background checks.” (The whole point of getting a job is that your boss is supposed to give you money, not the other way around.)

On the same day the BBB released its list of summer scam warnings, Fox Business News warned its readers of more vacation-specific scams. Some of those warnings were similar to the BBB's — watch out for scammy timeshare offers — and other were, again, vacation-specific versions of standard scam warnings. You know, for example, to be on guard against identity theft anytime you use your credit or debit card; this rule is especially important on vacation, when you're constantly handing your card over to restaurant staff, hotel personnel and other strangers.

Other types of scam are more specific to hotels and motels: for example, somebody slides a pizza delivery menu underneath your door, you call and use your credit card number to order a pizza — and it never arrives, but your credit card information is now in the hands of an identity thief.

Fox also reminded readers to be wary of connecting their electronic devices to publicly available wi-fi, since it's easy for thieves to intercept and steal information that way,. Some thieves will even set up public wi-fi networks specifically to entice people to use them and make their computers vulnerable.

Personal electronics

That said: where your smartphone, laptop, tablet and other important personal electronics are concerned, you might very well want to invest in an additional layer of security: buy a cheap, old-gen phone, tablet, laptop or whatever, solely for use on vacations.

I personally own two computers: a modern, powerful “work laptop” which never leaves my home, and an older netbook I use just-for-fun, including vacations. (One of these days, when I upgrade to a new work computer, my current work laptop will be downgraded to “just-for-fun.”) There are three reasons you should avoid bringing your truly important electronics with you on vacation. Reasons one and two are “they might get stolen” and “you don't always know if you can trust whichever wireless connections you find on your travels.”

Reason three involves various post-9/11 changes to the American legal landscape: in an end-of-2013 court decision, a federal judge ruled that the U.S. Border Patrol has the right to confiscate and/or search any laptops, smartphones or other electronics without a warrant.

In addition to the ruling's obvious anti-privacy implications, there's also the concern that even if you're completely innocent and “have nothing to hide,” you still might go a couple of weeks without being able to use your own electronic devices, so don't take any electronics on vacation that you require to do your job when you get back.

And always remember: you view your vacation as a chance to relax and take it easy, but scammers think it as an opportunity to line their pockets at your expense. Don't let them get away with it.

The couple wanted to take a vacation in Granada, Spain, but the airline sent them to Grenada in the Caribbean instead. They did eventually make it back home safely, but their planned Spanish vacation was ruined, Courthouse News Service reported.

Edward Gamson and Lowell Canaday had planned to leave home and visit Granada, in Spain, changing planes in London. 

Incidentally, if you're in America and want to visit Spain or anyplace else in Europe, flying to London to catch a connecting flight to your final destination makes perfect sense, and is actually a fairly common travel itinerary.

However, if you live in America and want to visit any island in the Caribbean Sea (which, roughly speaking, refers to the part of the western Atlantic between Central America, southern Mexico and Cuba), then flying across the ocean first to catch a connecting flight out of London is completely insane. And if you're an airline booking agent, you're presumably supposed to know that.

You might wonder why Gamson and Canaday didn't figure it out for themselves, though Gamson told Courthouse News that their tickets didn't list their flight duration, country or airport code, so they had no way of knowing they were headed to Grenada rather than Granada until they saw the in-flight maps.

A common error?

Even worse, Gamson says, such errors are apparently common at British Airways; supposedly, a ground crew member who heard about their plight exclaimed, “Not another one of these! We had another one of these happen last week.”

The recent court decision in their favor hinges on the proper interpretation of the Montreal Conventions covering international travel laws; basically, British Airways tried avoiding responsibility due to the conventions' rules regarding “the carriage of passengers;” but U.S. District Judge James Boasberg ruled that the provision doesn't apply to Gamson and Canaday's complaint, which involves not their carriage but their booking.

There's never a shortage of complaints about airlines but in most cases, consumers at least get a civil, if somewhat robotic, response when they try to get satisfaction from the carrier.

That's often not the case with AeroMexico. Take the case of Joan of East Northport, N.Y. She and her family purchased 5 round-trip tickets from New York to Cancun, departing May 21 and returning May 28.

So far, so good. But hours before they were to leave, AeroMexico informed them they had been bumped from their return flight and had instead been put on a flight leaving one day earlier, May 27.

"So we were losing [one vacation day] and $1,000 in hotel and all-inclusive fees we had paid," Joan said in a posting to ConsumerAffairs. "AeroMexico customer service was nasty when we tried to talk to them. They hung up on us numerous times and have no supervisors working."

Upoon arriving in Mexico, Joan tried to get assigned seats for their return trip, only to be told the flight was overbooked "but if we paid thousands of dollars we could get our original flight on May 28th."

Bumped and forlorn

Ed of Cranston, R.I., flew Delta to Mexico City en route to Puerto Vallarta. Upon arriving in Mexico City, AeroMexico said the flight to Puerto Vallarta was oversold; if he volunteered to be bumped, AeroMexico said he would get vouchers good for a round trip anywhere AeroMexico flew.

"Since that time we have been told that the vouchers can only be used from Mexico City to Puerto Vallarta. It is impossible to call their customer service department without endless transfers and being cut off," Ed said. "Not only was I misinformed originally but there is no way to get satisfaction afterwards."

Vicki of Corona, Calif., had never visited Mexico before and after a recent experience with AeroMexico, she says she'll never do so again.

A traveling companion collapsed and had to be med-evaced to the U.S. Vicki and her husband needed to cut short their stay in Mexico to return to the U.S. to be with their friend but didn't get much help from AeroMexico when they tried to change their return flight.

"They asked us for hospital records which we provided them the next day. We have received conflicting statements regarding the refund. We did receive an email stating we would be penalized $150 per ticket. When my husband called back today to process the refund he was told they would instead keep $200," Vicki said.

Vicki's husband asked to speak to a supervisor and was told the supervisor did not speak English.

"He told the rep this would not be a problem as he spoke fluent Spanish. The supervisor was immediately unavailable and he was told she would be for some time," she said. "He was also told the email he received would not be honored. ... Their customer service is appalling and their representatives are not consistent in what they say or trustworthy. Their policies seem to change daily and depending on whom you speak with."

Passengers with complaints about airline flights that begin or terminate in the United States can submit their grievances to the U.S. Transportation Department using an online form. 

Among the many revelations to have come out about General Motors in the wake of its ongoing recall scandal is that GM executives knew about problems with its ignition switches as early as 2004 and did nothing, even as people died in fatal accidents caused by those faulty switches.

One of those fatal accidents involved Texas residents Candice Anderson and her boyfriend Mikale Erickson, who in 2004 were 21 and 25 years old, respectively. Anderson drove a Saturn Ion (one of the many models GM later recalled due to the faulty ignition switches).

One night, while driving the Saturn with Erickson next to her in the front seat, Anderson's car drove off the road while she rounded a curve. Anderson suffered serious injuries, and Erickson died.

Even worse, Anderson was indicted and prosecuted on felony charges, after the accident was blamed on criminally bad driving rather than defective ignition switches shutting down the car's steering and other vital electronic systems.

But on June 10, Reuters reported that both Candice Anderson and the family of Mikale Erickson filed suit against General Motors this week, accusing the company of fraud and seeking to re-open previous settlements made with the company.

100% of the blame

The lawsuits were filed in Texas on June 9. Attorney Robert Hilliard, representing Anderson and the Ericksons, released a statement saying “GM placed 100 percent of the blame [for Erickson's death] on a 21-year-old innocent girl and ended up paying $75,000 to settle the entire case.”

After the accident, Candice Anderson was charged with manslaughter, and pleaded guilty to criminally negligent homicide in her boyfriend's death. Only late last month did she learn that Erickson's was one of 13 fatalities which GM confirmed were caused by the faulty ignition switches.

Mikale's mother Rhonda has since said that, since Anderson was not responsible for the death of her son, her criminal record should be cleared.

In the past few months, unregulated or third-party energy providers have received not only a lot of bad press, but a lot of negative attention from legislators and government regulators, all based on complaints which boil down to poor customer service: confusing or hard-to-break contracts, hidden and unjustified rate increases, and more.

Last week, for example, authorities in New Jersey filed a lawsuit against various unregulated energy providers in the state, alleging that the companies defrauded customers through misrepresentation of their actual billing rates and practices.

Early in May, legislators in Connecticut passed a bill to protect state residents from similar practices, and a couple weeks later, in Illinois, the Citizens Utility Board released a scathing report about the state's unregulated or “third-party energy suppliers,” prompted by a 115% jump in consumer complaints and describing “some of northern Illinois’ worst deals in a market that is much more treacherous for power shoppers than it was just a year ago.”

Not that southern Illinois is immune to such problems. Here's a complaint we just got today from “Denzil,” a Jerseyville resident who recently stopped getting power from Constellation (formerly known as MXEnergy):

I got tired of the high charges that they let my electric provider charge me. So I changed suppliers. Immediately I get a letter from Constellation saying I owe them $150 for an early termination fee even though my contract has expired with them. They have lied to me from the beginning. The rates continue to raise. It seems as though this is one of those companies when they get in trouble with the govt. they just change their name and keep going with their same tactics. They have many many complaints to the BBB, but they don't seem to care. I have called them and they are very rude and told me if I'm not happy with the service to call my power company.

Bad advice, unsurprisingly: if you have a complaint about your utility provider — whether your local regulated utility or a third-party provider (if any exist in your area) — the people to call are your state utility regulators. The federal government's Consumer Action Handbook maintains this list (in .pdf form) of the names and contact information for utility regulators in all U.S. states and territories, including toll-free numbers for in-state calls.

As an Illinois resident, Denxil should contact the Consumer Affairs department of the Illinois Commerce Commission, either by calling 1-800-524-0795 (in Illinois only) or getting other options from the Commerce Commision website.

Hopefully, he still has a copy of his original contract showing the agreed-upon termination date, to settle the disputed early termination fee (and because saving the contract, and reading it carefully before you sign, should be standard operating procedure anytime you do anything involving a contract, anyway).

A growing number of people in the U.S. have diabetes -- and a lot of them don't know it.

According to a report released by the Centers for Disease Control and Prevention (CDC), more than 29 million people in this country diabetes 3 million more than the CDC estimated in 2010. The scary thing is that 25% of those who have it don't know.

Another 86 million adults in the U.S. -- that's more than one -- have predicates, where their blood sugar levels are higher than normal but not high enough to be classified as type 2 diabetes. Without weight loss and moderate physical activity, 15-to-30% of them will develop type 2 diabetes within 5 years.

Alarming development

“These new numbers are alarming and underscore the need for an increased focus on reducing the burden of diabetes in our country,” said Ann Al bright, Ph.D., R.D., director of CDC’s Division of Diabetes Translation. “Diabetes is costly in both human and economic terms. It’s urgent that we take swift action to effectively treat and prevent this serious disease.”

According to the National Diabetes Statistics Report, 2014 (based on health data from 2012):

• 29 million people in the United States (9.3%) have diabetes.
• 1.7 million people aged 20 years or older were newly diagnosed with diabetes in 2012.
• Non-Hispanic black, Hispanic, and American Indian/Alaska Native adults are about twice as likely to have diagnosed diabetes as non-Hispanic white adults.
• 208,000 people younger than 20 years have been diagnosed with diabetes (type 1 or type 2).
• 86 million adults aged 20 years and older have predicates.
• The percentage of U.S. adults with predicates is similar for non-Hispanic whites (35%), non-Hispanic blacks (39%) and Hispanics (38%).

Danger lurks

Diabetes is a serious disease that can be managed through physical activity, diet, and appropriate use of insulin and oral medications to lower blood sugar levels. Another important part of diabetes management is reducing other cardiovascular disease risk factors, such as high blood pressure, high cholesterol and tobacco use.

People with diabetes are at increased risk of serious health complications including vision loss, heart disease, stroke, kidney failure, amputation of toes, feet or legs, and premature death.

In 2012, diabetes and its related complications accounted for $245 billion in total medical costs and lost work and wages. This figure was $174 billion in 2007.

It's been 16 years since you could buy a new Alfa Romeo in the United States. Many devotees of the iconic Italian marque had just about given up but Chrysler Group says an initial batch of 86 dealers have been awarded Alfa Romeo franchises in the United States and Canada.

In the U.S., 82 Alfa Romeo dealers are located in 33 states, with California, Texas, and Florida having the largest concentration of dealerships. There are four Alfa Romeo dealers in Canada. 

These 86 dealers will be the first to sell the 2015 Alfa Romeo 4C coupe and limited-edition 4C Launch Edition when the Alfa returns to the North American market this year.

“This group of dealers represents the first phase in the Alfa Romeo dealer network selection process,” said Peter Grady, Vice President of Network Development, Chrysler Group LLC. “Each Alfa Romeo dealer will have a unique staff dedicated to the brand’s premium market clientele."

Grady said he expects the Alfa Romeo dealer network ultimately will exceed 300 franchises in North America.

Additional Alfa Romeo franchises will be awarded this year. Initially, each franchise will receive the Alfa Romeo 4C Launch Edition.

Here are the dealers by state that have been awarded an Alfa Romeo franchise in the U.S., followed by the four dealers in Canada:

Alabama
FIAT of Huntsville, dba Alfa Romeo of Huntsville, Huntsville, Ala.

Arkansas
Landers FIAT, dba Landers Alfa Romeo, Benton, Ark.
FIAT of Fayetteville, dba Alfa Romeo of Fayetteville, Fayetteville, Ark.

Arizona
Larry H. Miller FIAT Tucson, dba Larry H. Miller Alfa Romeo Tucson, Tucson, Ariz.
FIAT of Scottsdale, dba Alfa Romeo of Scottsdale, Scottsdale, Ariz.

California
FIAT of Burlingame, dba Alfa Romeo of Burlingame, Burlingame, Calif.
FIAT of Bakersfield, dba Alfa Romeo of Bakersfield, Bakersfield, Calif.
McKevitt FIAT, dba McKevitt Alfa Romeo, Berkeley, Calif.
Premier FIAT of Fremont, dba Premier Alfa Romeo of Fremont, Newark, Calif.
Orange Coast FIAT, dba Orange Coast Alfa Romeo, Costa Mesa, Calif.
Santa Monica FIAT, dba Santa Monica Alfa Romeo, Santa Monica, Calif.
FIAT of Los Angeles, dba Alfa Romeo of Los Angeles, Los Angeles, Calif.
Kearny Mesa FIAT, dba Kearny Mesa Alfa Romeo, San Diego, Calif.
Walter’s FIAT, dba Walter’s Alfa Romeo, Riverside, Calif.
Mossy FIAT, dba Mossy Alfa Romeo, National City, Calif.
FIAT of San Francisco (San Francisco Motors), dba Alfa Romeo of San Francisco, San Francisco, Calif.
Maserati of Walnut Creek, dba Alfa Romeo of Walnut Creek, Walnut Creek, Calif.

Colorado
AutoNation FIAT North Denver, dba AutoNation Alfa Romeo North Denver, Northglenn, Colo.

Connecticut
FIAT of Fairfield County, dba Alfa Romeo of Fairfield County, Stamford, Conn.

Florida
Rick Case FIAT, dba Rick Case Alfa Romeo, Davie, Fla.
FIAT of North Miami, dba Alfa Romeo of North Miami, North Miami, Fla.
FIAT of Melbourne, dba Alfa Romeo of Melbourne, Melbourne, Fla.
FIAT of Pensacola, dba Alfa Romeo of Pensacola, Pensacola, Fla.
Sunset FIAT of Sarasota, dba Sunset Alfa Romeo of Sarasota, Sarasota, Fla.
FIAT of Winter Haven, dba Alfa Romeo of Winter Haven, Winter Haven, Fla.
FIAT of Orange Park, dba Alfa Romeo of Orange Park, Jacksonville, Fla.
Greenway FIAT of East Orlando, dba Greenway Alfa Romeo of East Orlando, East Orlando, Fla.
Fields FIAT, dba Fields Alfa Romeo, Orlando, Fla.

Georgia
FIAT of Savannah, dba Alfa Romeo of Savannah, Savannah, Ga.

Iowa
D&D FIAT, dba D&D Alfa Romeo, Davenport, Iowa
Billion FIAT, dba Billion Alfa Romeo, Clive, Iowa

Illinois
FIAT of Chicago, dba Alfa Romeo of Chicago, Chicago, Ill.
Bettenhausen FIAT of Tinley Park, dba Bettenhausen Alfa Romeo of Tinley Park, Tinley Park, Ill.
FIAT of Metro East, dba Alfa Romeo of Metro East, Fairview Heights, Ill.

Indiana
FIAT of Glenbrook, dba Alfa Romeo of Glenbrook, Fort Wayne, Ind.
Expressway FIAT of Evansville, dba Expressway Alfa Romeo of Evansville, Evansville, Ind.

Kentucky
Jake Sweeney FIAT, dba Jake Sweeney Alfa Romeo, Florence, Ky.

Louisiana
Landers FIAT, dba Landers Alfa Romeo, Shreveport, La.

Maryland
Heritage FIAT, dba Heritage Alfa Romeo, Owings Mills, Md.
Criswell Maserati, dba Criswell Alfa Romeo, Germantown, Md.

Michigan
Suburban FIAT, dba Suburban Alfa Romeo, Ann Arbor, Mich.
Fox FIAT, dba Fox Alfa Romeo, Traverse City, Mich.
Golling FIAT, dba Golling Alfa Romeo, Bloomfield Hills, Mich.
FIAT of Lakeside, dba Alfa Romeo of Lakeside, Macomb, Mich.
Zeigler FIAT of Grandville, dba Zeigler Alfa Romeo of Grandville, Grandville, Mich.

Minnesota
FIAT of Bloomington, dba Alfa Romeo of Bloomington, Bloomington, Minn.

Missouri
Northtowne FIAT of Kansas City, dba Northtowne Alfa Romeo of Kansas City, Kansas City, Mo.

North Carolina
Hendrick FIAT of Cary, dba Hendrick Alfa Romeo of Cary, Cary, N.C.

Nebraska
FIAT of Omaha, dba Alfa Romeo of Omaha, Omaha, Neb.

New Jersey
FIAT of Maple Shade, dba Alfa Romeo of Maple Shade, Maple Shade, N.J.
Fullerton FIAT, dba Fullerton Alfa Romeo, Somerville, N.J.

Nevada
FIAT of Las Vegas, dba Alfa Romeo of Las Vegas, Las Vegas, Nev.
Findlay FIAT, dba Findlay Alfa Romeo, Henderson, Nev.

New York
FIAT of Larchmont, dba Alfa Romeo of Larchmont, Larchmont, N.Y.

Ohio
Bob & Chuck Eddy FIAT, dba Bob & Chuck Eddy Alfa Romeo, Youngstown, Ohio
Yark FIAT, dba Yark Alfa Romeo, Toledo, Ohio
Bob-Boyd FIAT, dba Bob-Boyd Alfa Romeo, Columbus, Ohio
Bob Ross FIAT, dba Bob Ross Alfa Romeo, Centerville, Ohio

Oklahoma
FIAT of Edmond, dba Alfa Romeo of Edmond, Edmond, Okla.

Pennsylvania
Baierl FIAT, dba Baierl Alfa Romeo, Wexford, Pa.

South Carolina
Benson FIAT, dba Benson Alfa Romeo, Greer, S.C.

Tennessee
Harper FIAT, dba Harper Alfa Romeo, Knoxville, Tenn.

Texas
FIAT of Austin, dba Alfa Romeo of Austin, Austin, Texas
Holt FIAT of Fort Worth, dba Holt Alfa Romeo of Fort Worth, Fort Worth, Texas
Northside FIAT, dba Northside Alfa Romeo, Spring, Texas
Randall Noe FIAT, dba Randall Noe Alfa Romeo, Tyler, Texas
Allen Samuels FIAT, dba Allen Samuels Alfa Romeo, Waco, Texas
FIAT of Corpus Christi, dba Alfa Romeo of Corpus Christi, Corpus Christi, Texas
Helfman FIAT, dba Helfman Alfa Romeo, Houston, Texas
Brown FIAT, dba Brown Alfa Romeo, Laredo, Texas
FIAT of McKinney, dba Alfa Romeo of McKinney, McKinney, Texas
Cavender FIAT, dba Cavender Alfa Romeo, Selma, Texas

Virginia
Safford FIAT of Tysons Corner, dba Safford Alfa Romeo of Tysons Corner, Vienna, Va.
Safford FIAT of Fredericksburg, dba Safford Alfa Romeo of Fredericksburg, Fredericksburg, Va.
FIAT of Alexandria, dba Alfa Romeo of Alexandria, Alexandria, Va.
Pomoco FIAT of Newport News, dba Pomoco Alfa Romeo of Newport News, Newport News, Va.

Vermont
Berlin City FIAT, dba Berlin City Alfa Romeo, Williston, Vt.

Washington
FIAT of Tacoma, dba Alfa Romeo of Tacoma, Tacoma, Wash.
Barton FIAT, dba Barton Alfa Romeo, Spokane, Wash.

Wisconsin
Bergstrom Maserati, dba Bergstrom Alfa Romeo, Appleton, Wis.

West Virginia
Urse FIAT of Morgantown, dba Urse Alfa Romeo of Morgantown, Morgantown, W. Va.
Moses FIAT of St. Albans, dba Moses Alfa Romeo of St. Albans, St. Albans, W. Va.

Canada
FIAT of Vancouver, dba Alfa Romeo of Vancouver, Vancouver, B.C.
Maranello FIAT, dba Maranello Alfa Romeo, Vaughan, Ont.
LaSalle FIAT, dba LaSalle Alfa Romeo, LaSalle, Quebec
JD FIAT, dba JD Alfa Romeo, Boischatel, Quebec

A Pennsylvania-based home builder that offers home financing has settled Federal Trade Commission charges that it deceived consumers by advertising low-cost mortgages while hiding fees and not disclosing vital information about the true cost of the mortgages.

“These defendants tricked consumers into believing they’d found an affordable mortgage with very favorable terms,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC is committed to holding mortgage advertisers accountable.”

Using the catch phrase "Zip, Zero, Nada," Heritage Homes Group claimed in ads on websites, and in newspapers, flyers, and direct mail, that consumers could finance their homes without a down payment or closing costs. In fact, they were required to pay a “good faith deposit,” settlement costs, and an annual fee, according to the complaint.

The defendants’ ads also touted specific monthly payment amounts, such as $1,198 per month, but they failed to disclose that to get such a low monthly payment, consumers would have to obtain financing through the USDA Rural Development Loan Program, which requires them to meet specific credit and income criteria. The defendants also failed to make adequate disclosures about the annual percentage rates consumers would pay for the mortgages.

The complaint alleges that the operation violated the Federal Trade Commission Act; the Mortgage Acts and Practices Advertising Rule (or “MAP” Rule) and Regulation N; and the Truth in Lending Act and Regulation Z.