The Survive and Thrive Boomer Guide

Watch out for charity fraud, home repair scams, and price gouging following tornadoes in Oklahoma

Photo: Ks0stm

Oklahoma Attorney General Scott Pruitt Tuesday issued a warning for Oklahomans and donors around the country to beware of charity fraud and scams following the severe storms in Oklahoma.

“For those folks around the country who want to donate funds to help families in Oklahoma, please be alert and only donate to reputable relief charities such as the Salvation Army or the Red Cross,” Pruitt said. “The first scam we typically see after devastation like this is charity fraud. We have more than 30 investigators in the field to help Oklahomans avoid scams, fraud, and price gouging as communities work to recover and rebuild.”

Investigators for the Attorney General’s Office ask that consumers who suspect charity fraud or experiences price gouging at gas stations, grocery stores, rental car companies, or hotels to call the agency’s hotline number immediately at 405-521-2029.

Over the next few weeks, criminals will shift focus to scams involving clean-up, removal, home repair, and tree trimming, he said.

“Home and business owners will want to quickly repair their property, but we urge them to be cautious and patient and to use reputable contractors,” Pruitt said. “We ask that residents pay particular attention to criminals known as ‘travelers’ who go from one community to the next to take advantage of vulnerable Oklahomans.”

Pruitt cautioned Oklahomans to be wary of repair services and contractors who:

• Solicit for work door-to-door.

• Offer discounts for finding other customers.

• “Just happen to have” materials left over from a previous job.

• Accept only cash payments.

• Pressure you for an immediate decision.

• Ask you to pay for the entire job up-front.


The Attorney General’s Office suggests the following tips for choosing a qualified contractor or repair service:

• 

Ask for referrals from people you trust.

• Try to do business with local companies.

• Request to see proof of certification and insurance.

• Check out the repair service with the Attorney General’s Public Protection Unit and the Better Business Bureau.
  

• Ask for customer references.

• Get written estimates from several companies.

• Don’t do business without a written contract.

• Get all guarantees, warranties, and promises in writing.

• Agree on start and completion dates, and have them in the contract.


For more tips and resources, go online to www.oag.ok.gov/oagweb.nsf/Consumer, or call the Public Protection Unit at 405-521-2029.

Copyright 2013, Rita R. Robison, Consumer Specialist

What consumers need to know about sunscreen as more ‘fun in the sun’ days approach

The vast majority of sunscreens available to the consumer aren’t as good as most people think they are, but a handful of products rise above the rest.

Those are the findings of the Environmental Working Group, which recently released its 7th annual Sunscreen Guide that rates the safety and effectiveness of more than 1,400 sunscreens, lotions, lip products, and makeups that advertise sun protection.

The EWG researchers found that only 25 percent of products on the market in 2013 offer strong and broad UV protection and pose few safety concerns.

Protection from clothing and shade

“The best advice for concerned consumers is to use sun-protective clothing, stay in the shade to reduce intense sun exposure, and schedule regular skin examinations by a doctor,” said Sonya Lunder, senior research analyst at the EWG.

Lunder said consumers should use the EWG’s guide to find the best sunscreens for skin that isn’t protected by clothing.

“Despite an increasing awareness of the sun’s risks, rates of melanoma – the deadliest skin cancer – have tripled over the past 35 years, with an annual increase of 1.9 percent per year since 2000,” she said.

Sunscreen protection weak

Part of the reason for the increase may be the decades of deceptive marketing claims by sunscreen manufacturers, EWG researchers said. 

The EWG believes that the U.S. Food and Drug Administration should require companies to stop selling high-SPF sunscreens – above 50+ – which account for one in seven products on the market. As a result of misleading and confusing marketing claims, consumers frequently misuse sunscreens and spend more time in the sun than they should, putting themselves at greater risk, according to the EWG.

In addition, until recently, sunscreens provided little protection from the sun’s ultraviolet A rays. Sunburns are caused mostly by short but intense ultraviolet B rays. Longer UVA rays, which penetrate the body more deeply, inflict more damage and may contribute to or cause cancer. 

The FDA’s current definition of “broad-spectrum” still results in inadequate UVA protection, according to the EWG.

In 2011, the FDA issued long-awaited sunscreen labeling standards promised since 1978. Under the new rules, companies are now prohibited from making misleading advertising claims such as “sunblock,” “waterproof,” and “sweat-proof.” The FDA also set the first-ever standards for sunscreens that claim to provide broad-spectrum protection.

However, the agency now allows most sunscreens on the American market to make claims that they help lower the risk of skin cancer and sun-related skin aging.

The FDA still hasn’t issued final rules on excessively high SPF claims, potentially harmful chemical ingredients, and sunscreen sprays that may be dangerous when inhaled.

The EWG’s analysis of 750 beach and sport sunscreens found that the new FDA rules haven’t led to dramatically better sunscreens than those offered in previous years.

Standards stronger in Europe

While nearly every sunscreen on the market meets the new FDA rule for broad-spectrum protection, that standard is so weak that half of the sunscreens on the American market couldn’t be sold Europe, where the safety and effectiveness rules are more stringent.

European sunscreen makers voluntarily comply with European Union recommendations that a product’s UVA protection and SPF be coordinated so that the UVA protection is at least one-third as strong as the SPF.

EWG’s top four things not to bring to the beach or pool or on vacation

• No sprays. While easy to apply, these popular spray sunscreens may pose serious inhalation risks and may not fully cover skin. About one in four sunscreens in EWG’s database is a spray.

• No super-high SPFs, above 50+. Products with high SPF values provide little additional skin protection and may contribute to consumer misperception and misuse. About one in seven sunscreens has an SPF value greater than 50+.

• No vitamin A or retinyl palmitate. Vitamin A is touted for its anti-aging effects on skin. But retinyl palmitate, a form of vitamin A added to almost one in four SPF-rated sunscreens, makeups, and moisturizers, could speed development of tumors and lesions on sun-exposed skin, according to a government study.

• No oxybenzone. Commonly used in sunscreens, oxybenzone penetrates the skin, gets into the bloodstream, and acts like estrogen in the body. It can trigger allergic reactions. Data are preliminary, but studies have found links between oxybenzone and health problems. Nearly half of all beach and sport sunscreens in EWG’s 2013 guide contain oxybenzone.

I hope your days in the sun are safe as well as fun.

Copyright 2013, Rita R. Robison, Consumer Specialist

Facts and figures for Mother’s Day this year

The driving force behind Mother's Day was Anna Jarvis, who organized observances in Grafton, W.Va., and Philadelphia on May 10, 1908.

As the annual celebration became popular around the country, Jarvis asked members of Congress to set aside a day to honor mothers. She succeeded in 1914, when Congress designated the second Sunday in May as Mother's Day.

What’s happening for Mother’s Day this year?

Consumers will spend an average of $168.94 on mom, up 11 percent from last year’s $152.52, according to a survey by the National Retail Federation. Total spending is expected to reach $20.7 billion.

While traditional gifts such as flowers, clothing, and gift cards will still be popular, many consumers will stretch their budget this year and treat mom to a tablet, smartphone, or necklace she’s had her eye on.

The survey found 14 percent – the highest in the survey’s history – of shoppers this Mother’s Day will spend more than $2.3 billion on electronics, up from $1.6 billion last year. More than one-third of gift givers will buy jewelry, spending a total of $4.2 billion, up from $3.7 billion last year.

In addition, gift givers will spend money on a special outing, such as brunch or dinner, $3.5 billion; flowers, $2.3 billion; gift cards, $2 billion; clothing or clothing accessories, $1.7 billion; and personal service gifts, such as a day at the spa, $1.5 billion.

Here are facts and figures from the U.S. Census Bureau on moms for Mother’s Day this year:

How many mothers

4.1 million

Number of women between the ages of 15 and 50 who gave birth in the past 12 months.

53%

Percentage of 15- to 44-year-old women who were mothers in 2010.

81%

Percentage of women who had become mothers by age 40 to 44 as of 2010. In 1976, 90 percent of women in that age group had given birth.

2,449

The fertility rate or estimated number births per 1,000 women in Utah in 2010, which led the nation. The state with the lowest fertility rate is Rhode Island, with 1,630.5 births per 1,000 women.

20%

Percentage of all women age 15 to 44 who have had two children. About 47 percent had no children, 17 percent had one, 10 percent had three, and about 5 percent had four or more.

89.7%

Percentage of all children who lived with their biological mothers in 2012. About 1.2 percent of all children lived with a stepmother.

Recent births

3.954 million

Number of births registered in the United States in 2011. Of these, 329,797 were to teens 15 to 19 and 7,651 to women age 45 to 49.

25.4

Average age of women in 2010 when they gave birth for the first time, up from 25.2 years in 2009.

29.2%

The percentage of mothers who had given birth in the past 12 months who had a bachelor's degree or higher and 84 percent of mothers have at least a high school diploma.

Jacob and Sophia

The most popular baby names for boys and girls in 2011.

Stay-at-home moms

5 million

Number of stay-at-home moms in 2012 – about the same for 2009, 2010, and 2011 – down from 5.3 million in 2008. In 2012, 24 percent of married-couples with children under 15 had a stay-at-home mother, up from 21 percent in 2000. In 2007, before the recession, stay-at-home mothers were found in 24 percent of married-couples with children under 15 households, about the same for 2012.

Employed moms

62.1%

Percentage of women age 16 to 50 who had a birth in the past 12 months who were in the labor force.

Single moms

10.3 million

The number of single mothers living with children younger than 18 in 2012, up from 3.4 million in 1970.

5.9 million

Number of custodial mothers who were owed child support in 2009.

36%

Percentage of births in the past 12 months that were to women age 15 to 50 who were unmarried, including divorced, widowed, and never married women.

In 2011, 407,873 mothers who had a birth in the past 12 months were living with a cohabiting partner.

So best wishes to moms everywhere on this important holiday. There’s no job more difficult or rewarding than being a mom. What mom’s do every day in caring for their children contributes to the health and wellbeing of our society.

Copyright 2013, Rita R. Robison, Consumer Specialist

What consumers need to know about crowdfunding

Within days, crowdfunding websites reportedly raised more than $2 million to support victims of the Boston Marathon bombing tragedy. 

While online giving provides a quick and easy way to support those in need, donors should ask questions and know what to expect when contributing through crowdfunding websites.

Crowdfunding websites are established to allow solicitation of money for a variety of purposes. The organizations or individuals to which the funds are given can be, but aren’t necessarily charitable, according to the Better Business Bureau. Some contributions through these sites may not be tax deductible as charitable donations.  

Donors should know that crowdfunding websites usually take a percentage of the donation ranging from 5 to 20 percent and may also deduct payment processing fees in addition. A few of these sites may allow the donor to cover all such fees but, in many cases, the recipient may not receive the full amount given.  

Crowdfunding websites can raise money for legitimate charities.  However, if you want to be sure that the charity receives the entire amount given, it’s a good idea to go to a charity’s website and make a direct online contribution, the BBB advises. 

Giving through established charities has advantages including the requirement that they register with state government authorities, must report on use of funds, and are subject to the oversight of a board of directors.

Only certain types of tax-exempt organizations are eligible to receive contributions deductible as charitable gifts, according to the Internal Revenue Service. 

Crowdfunding donations made to support a specific individual or family are considered a “personal gift” and not a charitable contribution. If charitable tax deductibility is important to you, be sure to donate to an eligible organization as defined by the IRS.

Additional tips from the BBB:

• Make sure the crowdfunding websites you use to donate securely encrypt all transactions using Secure Socket Layer technology. Look for https at the beginning of the website address.

• Read the crowdfunding site’s statement about its policies –  including its terms, conditions, and privacy policy – to understand how your donation and your personal information will be handled before giving.

• Check out charities through www.bbb.org.

Copyright 2013, Rita R. Robison, Consumer Specialist

Stay away from payday and deposit advance loans: Report shows they trap consumers in debt

A report on payday and deposit advance loans found that for many consumers these products lead to a cycle of indebtedness.

Loose lending standards, high costs, and risky loan structures may contribute to the continued use of these products, which can trap borrowers in debt, according to a report by the Consumer Financial Protection Bureau.

The report found that payday loans and the deposit advance loans offered by a small but growing number of banks and other financial institutions are similar and raise the same kind of the consumer protection concerns

Both are described as a way to bridge a cash flow shortage between paychecks or other income. They offer easy accessibility, especially for consumers who may not qualify for other credit.

The loans generally have three features:

• They’re small-dollar amounts.

• Borrowers must repay them quickly.

• They require that a borrower repay the full amount or give lenders access to repayment through a claim on the borrower’s deposit account. 

Key findings

Payday and deposit advance loans can become debt traps for consumers

The report found many consumers repeatedly roll over their payday and deposit advance loans or take out additional loans, often a short time after the previous one was repaid. This means that many consumers end up in cycles of repeated borrowing and incur significant costs over time. The study also confirmed that these loans are expensive and not suitable for continued use.

Loose Lending

Lenders often don’t take a borrower’s ability to repay into consideration when making a loan. Instead, they may rely on ensuring they’re one of the first in line to be repaid from a borrower’s income.

Risky loan structures

The risk posed by the loose underwriting is compounded by some of the features of payday and deposit advance loans, particularly the rapid repayment structure. Paying back a lump sum when a consumer’s next paycheck or other deposit arrives can be difficult for an already cash-strapped consumer, leading them to take out another loan.

High costs

Both payday loans and deposit advances are designed for short-term use and can have high costs. These high costs can add up – on top of the already existing loans that a consumer is taking on.

Continued use

The loose underwriting, the rapid repayment requirement, and the high costs all may contribute to turning a short-term loan into an expensive, long-term loan.

Bureau action

The bureau, which has authority to regulate the payday loan market and deposit advance loans at the banks and credit unions it supervises, is in the process of figuring out the right approach to protect consumers and ensuring that they’ll have access to a small loan market that is fair, transparent, and competitive, Richard Cordray, director of the bureau, said.

While the study looked at storefront payday lenders, the bureau will continue to analyze online payday lenders.

The bureau offers an Ask CFPB web tool to help consumers with their questions about payday and deposit advance loans.

A factsheet about payday and deposit advance loans is available at: http://files.consumerfinance.gov/f/201304_cfpb_payday-factsheet.pdf.

Copyright 2013, Rita R. Robison, Consumer Specialist

Attorney general's action a good reminder to beware when selecting a debt management firm

TV ads abound for companies that promise to help you figure out better ways to handle your debts, but an action in Texas is a reminder that consumers need to use caution when selecting debt management companies.

'Debt management' company charged

Texas Attorney General Greg Abbott has charged a Dallas-based “debt management” firm with defrauding its customers.

The state’s enforcement action sought an asset freeze and temporary restraining order against Shane V. Garner and Credit Alliance Group dba Credit Services Today.

The defendant marketed its services through a now-defunct website and direct customer e-mails, according to state investigators. Using purchased leads on individuals with debt-related problems, CAG allegedly contacted prospective customers claiming it would eliminate 20 to 60 percent of their outstanding balances within three years.

CAG promised that customers wouldn’t owe the firm “a dime” if the firm failed to deliver on its claims. However, the state’s investigation revealed that customers were charged up-front fees, sometimes up to 35 percent of the debt they owed, and that CAG failed to deliver on its services.

CAG customers were promised that their payments to the firm would be deposited into separate accounts that would be under their control and managed by the firm, according to court documents filed by the state. However, state investigators found that those promises weren’t honored and that CAG deposited/commingled customers’ funds into its own operating account. As a result, customers had no control over their own money.

In addition, court documents said Garner used customer funds to pay his personal bills. 


CAG clients discovered they couldn’t receive refunds on advance fees paid, nor on the accumulated funds the defendant promised to hold in trust to help manage and resolve their debts, the agency said.

The Attorney General’s Office review of 52 CAG clients’ accounts – out of about 800 – showed that CAG owes these 52 clients more than $180,000 in escrowed funds alone.

So beware if you’re selecting a debt management firm. You don’t want to end up in worse financial condition because of the company you select to help you.

Consumer credit counseling

You can get free or low-cost help from a trained, certified counselor who will assist you in determine the best options for your financial situation. See the National Foundation for Credit Counseling’s website to locate a credit counselor near you.

Money management classes

April is Financial Literacy Month, and you can find classes on managing your finances in most states during Money Smart Week April 22 through 27.

Copyright 2013, Rita R. Robison, Consumer Specialist

Happy Tax Day, April 15

I filed my taxes last week. I’m so happy I have them done.

If you’d like a free item, especially fast food or sugar, on Tax Day, see my article “Companies Offering Free Items to Help Reduce Your Income Tax Stress.”

I’d go get a donut from Krispy Kreme, which is free if you buy milk, or Potato Cakes from Arby’s, but I had wine and chocolate at a fundraiser yesterday and I’m not planning to go out today so a special trip for free items would be a waste of gas.

However, some of the freebies last beyond April 15. Office Depot's offer of free shredding of five pounds of documents expires May 1. I don’t have to worry about the sugar content of that one.

If you get an e-mail from the Internal Revenue Service or the company you used to file your taxes electronically about a problem with your taxes, check it out carefully. Last year, I received a notice my return was incomplete, but it was a legitimate e-mail. Scammers are taking advantage of e-mails like these to get private information so they can steal your money or identity. Be an alert, informed consumer.

Have a great day. If you’re still struggling with your taxes, my best wishes to you.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for tax scams as Tax Day approaches

April 15 is almost here, but that doesn’t mean consumers can’t get scammed by unscrupulous tax preparers.

“Tax scams peak around tax filing day,” Oklahoma Attorney General Scott Pruitt said. “We cannot stress enough to watch out for those who promise faster turnarounds, bigger refunds, or credits. What looks like a good deal at first, could cost you more in the long run.”

The Internal Revenue Service points out scams to be aware of this year:

• Identity thieves are using people’s Social Security numbers or other identifying information to fraudulently file tax returns and claim refunds.

• Fake e-mails, known as phishing, from the IRS are being used to attempt to obtain confidential personal and financial information so the sender can steal consumers’ identity. Never respond to these e-mails or open the attachments.

• Unscrupulous tax preparers prey on taxpayers by encouraging consumers to claim false information for larger refunds, which can result in fraud or theft.  

• Scammers often promote that “free money” is available from the IRS and claim that securing this money requires little or no documentation. Some even guarantee fraudulent Social Security refunds or rebates.

To avoid becoming a victim this tax season, the Attorney Generals Office’s offers these tax safety tips:

• Be wary of offers to split your refund in exchange for filing your return.

• When you file your taxes electronically, use a software provider that’s authorized by the IRS. If using a tax preparer, make sure they’re authorized to do so by the IRS.

• Look out for unsolicited offers to prepare your taxes from an unfamiliar company or one that’s located far away.

Pruitt reminds taxpayers that they’re responsible for what’s on their returns even if someone else prepared it for them.

If something sounds too good to be true, then it probably is, he said. Staying alert and being cautious can help prevent costly mistakes.

If you think you may be at risk or have been a victim of tax fraud, contact the IRS at 800-908-4490. If you have questions about your taxes, visit www.IRS.gov or call or visit your local IRS office.

Copyright 2013, Rita R. Robison, Consumer Specialist

Report describes how Big Soda uses ‘philanthropy’ to gain supporters, silence criticism

The state chapter of the NAACP and the Hispanic Federation unexpectedly joined Big Soda's legal fight against New York City’s Mayor Michael R. Bloomberg's proposal to cap soda servings at restaurants at 16 ounces.

Both groups received grants from Coca-Cola, with the national NAACP receiving at least $2.1 million from the soda company since 1986, including $100,000 as recently as December. The Hispanic Federation also lists Coke as a donor.

In addition to courting civil rights or minority groups, the soda industry, over the years, has given money to – and cultivated relationships with – groups representing doctors, dentists, dietitians, anti-hunger advocates, and others.

 A report by the Center for Science in the Public Interest, called Selfish Giving, shows that when Big Soda is under siege, as it was in 2009 when defending against a possible national soda tax to pay for health care reform, it can call on its nationwide network of organizations that have received grants to leap to its defense.

The soda industry organized groups to oppose a 2008 soda tax proposal in New York State and two 2012 soda-tax ballot initiatives in the California cities of Richmond and El Monte. All of the tax proposals were defeated.

"Big Soda's giving isn't solely motivated by its love for the arts or its concern for minorities' or anyone else's health," Michael F. Jacobson, executive director of the center, said in a statement. "Makers of sugar drinks give to burnish their soiled reputations. They give so they can soften, or even silence, potential criticism. But mainly the industry gives so when provoked it can activate an instant Astroturf army to advance its extreme, anti-health agenda."

The soda industry also is forging financial partnerships with city governments, which can have the effect of silencing municipal leaders' criticism of sugar drinks, according to the report. Last year, Miami Beach, Dayton, Ohio, and Ocean City, Md. all signed deals making Coke the "official soft drink" of those cities.

And while some cities were aggressively proposing taxes or prohibiting sugar drinks in public facilities, the American Beverage Association partnered with the cities of Chicago and San Antonio on a wellness contest centered on another favorite industry theme: personal responsibility over government intervention.

The soda industry's philanthropic focus on African American and Latino organizations is particularly troubling because those communities suffer disproportionately from obesity and soda-related diseases, Jacobson said.

The soda industry's coopting of nonprofit groups is like the tobacco industry's tactics in the 1980s and 1990s, when it enlisted minority groups that received grants to oppose curbs on smoking or tobacco advertising, he said. The New York state chapter of the NAACP, for example, worked with the tobacco industry to oppose separate non-smoking areas in restaurants and other public facilities.

"The industry playbook is clear – make philanthropic donations to divide and conquer the very constituencies these policies would ultimately benefit," said Anthony Iton, M.D., senior vice president of The California Endowment, a health-oriented foundation. "Big Soda has learned well from Big Tobacco. But, as more Americans start to see through their cynical tactics, public opinion will shift to protect children, not profits."

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for tax preparers who are scam artists

The deadline for filing personal income tax returns is less than a month away

Each year, consumers file thousands of complaints about tax preparation schemes. 

Some scammers prey on seniors or college students by impersonating tax authorities, soliciting follow up information on a tax form, and collecting identification numbers and social security information, which is then used to steal people’s money or identities.

Others have used “spoofing technology” to make their caller ID numbers come up to look like they’re from the Internal Revenue Service.

Taxpayers should be watch out for tax preparation businesses that advertise low fees to get the customer in the door, but then increase the final fee by hundreds of dollars claiming the tax return was more complicated than anticipated. Another trick fraudulent tax preparers use is to electronically withdraw more than the agreed on fee without notice to the consumer.

As taxpayers look for help in filing their taxes, New York Attorney General Eric T. Schneiderman offers the following tips for consumers:

• Use recognizable and established companies.

• Check the tax preparer's qualifications.

• Check the tax preparer's history through the Better Business Bureau at www.bbb.org.

• Ask for a written estimate of all fees.

• Avoid those who base their fees on a percentage of your refund.

• Make sure the tax preparer is accessible, even after the April due date.

• Never sign a blank return.

• Review entire return before signing.

• Make sure the preparer signs the tax form and includes a Preparer Tax Identification Number.

• Avoid "too good to be true" promises.

Consumers should also beware of refund anticipation loans or RALs and refund anticipation checks or RACs.

RALs are often marketed as "instant" or "24-hour" refunds but are actually high cost loans that come with fees and interest that reduce the amount of any refund.

RACs are temporary bank accounts established on behalf of a taxpayer into which a direct deposit refund can be received but these also come with fees that will reduce the consumer’s refund.

The tax preparer must give the consumer a written disclosure that explains:

• You aren’t required to take out a refund anticipation loan or refund anticipation check in order to receive your tax refund.

• The amount of fees and interest you’ll have to pay if you take out a refund anticipation loan or refund anticipation check.

• The amount you’ll receive after the fees and interest are deducted.

• The annual percentage rate of interest that you’ll be charged.

• The amount your refund will be if you don’t take out a refund anticipation loan

Consumers can avoid the costs of refund anticipation loans and checks by filing their return electronically and having refunds either mailed or directly deposited in their own bank account.

Check with your local library to see if there are any groups in your area that offer free income preparation assistance for older adults.

For additional information, see the Better Business Bureau’s “Choosing a Tax Preparer,” AARP’s “Don’t Get Scammed by Phony IRS Agents,” and the IRS’s “How to Choose a Tax Return Preparer.”

Copyright 2013, Rita R. Robison, Consumer Specialist