The Survive and Thrive Boomer Guide

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

Virgin America tops list of best airline performance while United Airlines ranks lowest

Airline performance in 2012 was the second highest in 23 years, according to an airline performance rating.

The researchers said that passengers are experiencing better performance by the airlines, although it might cost more to fly.

The performance of the nation's leading carriers in 2012 was nearly identical to the best year in 2011, according to the 23rd annual national Airline Quality Rating prepared by Wichita State University and Purdue University.

Of the 14 carriers rated for performance in 2011 and 2012, seven airlines improved, five airlines declined, and two are new to the rankings, including the overall No. 1 performing airline, Virgin America.

Improvement in two of four areas

Airlines improved in two of the four items in the rating: on-time performance and baggage handling. Involuntary denied boardings and the customer complaint rate were higher in 2012.

The challenge airlines have is whether airline performance quality improvements can be maintained as more people fly, said Dean Headley, associate professor of marketing at Wichita State University.

The airline industry performs most efficiently when the system isn't stressed by high passenger volume and high number of airplanes in the air, Headley said. When there are more planes in the sky and more people flying, airline performance suffers.

The researchers said when two airlines consolidate, it usually the airline quality ratings of the new company usually declines.

Brent Bowen, head of the Department of Aviation Technology at Purdue University, said the researchers will be watching to see if the consolidation of two highly rated carriers, former No. 1 AirTran and Southwest, will reverse the trend.

This year's ratings

Below is the 2013 ranking of the nation's leading 14 airlines, according to the Airline Quality Rating, with the 2012 ranking following the Airline name:

1. Virgin America – new to the ranking this year
2. JetBlue, 3
3. AirTran, 1
4. Delta, 6
5. Hawaiian, 2
6. Alaska, 5
7. Frontier, 4
8. Southwest, 7
9. US Airways, 8
10. American, 10
11. American Eagle, 15
12. SkyWest, 9
13. ExpressJet, not rated in 2011
14. United, 12

The rankings changed most for American Eagle Airlines, from 15 up to 11, for 2012. Virgin America came into the rankings as the top rated airline. JetBlue, 2, and AirTran, 3, both maintained their top positions for 2012.

On-time performance

Hawaiian Airlines had the best on-time performance, with 93.4 percent for 2012, and ExpressJet and American had the worst, with 76.9 percent.

Eight airlines improved their on-time arrival performance in 2012. Nine of the 14 airlines rated had an on-time arrival percentage of more than 80 percent. On-time for the industry in 2012 was 81.8 percent compared to 80 percent in 2011.

Denied boardings

JetBlue had the lowest involuntary denied boardings at .01 per 10,000 passengers. SkyWest had the highest involuntary denied boarding rate at 2.32 per 10,000 passengers.

Overall, five airlines improved their denied boardings rate in 2012. American Eagle recorded the greatest improvement, and SkyWest had the largest decline. JetBlue and Virgin American are the industry leaders in avoiding denied boarding incidents.

Industry performance was worse in 2012, with .97 per 10,000 passengers, than it was in 2011 with .78 per 10,000 passengers.

Baggage handling

Virgin America had the best baggage handling rate, with .87 mishandled bags per 1,000 passengers, of all airlines, and American Eagle had the worst baggage handling rate, with 5.80 mishandled bags per 1,000 passengers, of all the airlines.

Seven of 14 airlines improved their mishandled baggage performance for the year. The rate for the industry decreased from 3.35 per 1,000 passengers in 2011 to 3.07 in 2012.

Consumer complaints

Southwest again had the lowest consumer complaint rate, with .25 per 100,000 passengers, of all airlines. United had the highest consumer complaint rate, with 4.24 per 100,000 passengers, of all airlines rated.

Customer complaints per 100,000 passengers increased from 1.19 in 2011 to 1.43 in 2012. The majority of complaints were for flight problems, 32.7 percent; reservations, ticketing, and boarding, 14.6 percent; customer service, 14.3 percent; and baggage, 12.4 percent.

The researchers invite the flying public to participate in the Annual Passenger Survey at http://www.wichita.edu/aqrconsumersurvey.

Copyright 2013, Rita R. Robison, Consumer Specialist

Rich Products expands recall to all products made at its Waycross, Ga. plant

Rich Products Corp., which recalled some of its Farm Rich and Market Day products last week, is expanding its recall to include all products produced at its Waycross, Ga., plant with “Best By” dates ranging from January 1, 2013 to September 29, 2014 due to possible contamination with Escherichia coli O121 bacteria.

The expanded recall is in addition to products recalled on March 28.

For a list of the products involved in the expanded recall, click here.

The Centers for Disease Control and Prevention has reported 24 cases of E. coli 0121 in 15 states

Symptoms of the illness include mild to severe diarrhea and abdominal cramps. Blood is often seen in the stool. Usually little or no fever is present.

Although most healthy adults can recover completely within five to 10 days, some individuals can develop a complication called Hemolytic Uremic Syndrome, which can cause the kidneys to fail. HUS is most likely to occur in young children and the elderly. The condition could lead to serious kidney damage and death.

Rich Products said it’s unaware of any illnesses associated with the products included in the expanded recall, but due to its safety commitment to its customers, it took the action.

Consumers should check their freezers for recalled Farm Rich brand frozen food products. They shouldn’t eat the recalled frozen food products and should dispose of any remaining products, the CDC advises.

Consumers with questions about the recall should contact the company's consumer line at 888-220-5955 from 8 a.m. to 8 p.m. EST Monday through Friday or visit the company website at www.farmrich.com.

Farm Rich said on its website it will provide consumers with a refund or replacement.

Copyright 2013, Rita R. Robison, Consumer Specialist

Kraft meets with bloggers who want food dyes removed from its macaroni and cheese

These days, I don’t make macaroni and cheese, but I remember looking at the strange color of the cheese mixture when I used to prepare the packaged dish for my family. It just didn’t look like real food to me.

Food blogger Vani Hari and supporters delivered more than 270,000 petition signatures Tuesday to Kraft Foods' headquarters in the Chicago area asking the company to stop using artificial dyes in its macaroni and cheese products sold in the United States.

Hari and blogger Lisa Leake then met with Kraft representatives to discuss removing artificial dyes from their entire line of macaroni and cheese products.

Following the meeting, Hari said she hoped that Kraft would eventually remove the controversial dyes.

“If Kraft really wants to do right by their customers, like they’ve said, they’ll make their American products just as safe as their European ones,” she said.

Hari and Leake became concerned about the Kraft product after discovering that many countries ban the Yellow #5 and Yellow #6 artificial dyes and that the Center for Science in the Public Interest has linked the artificial colors to hyperactivity in children, migraines, and asthma.

The center also said tests on lab animals of dyes, including Yellow #5 and Yellow #6, showed signs of causing cancer.

On the use of the dyes, Kraft said it looks to regulators for guidance.

“The artificial colors allowed in the foods in the U.S., including the Yellow #5 and #6 used in some Kraft Mac & Cheese varieties, are some of the most well-studied ingredients,” Kraft said in a statement on its website. “The Food and Drug Administration has deemed them safe for use in food.”

Kraft also said other experts, including the European Food Safety Authority, have reached a similar conclusion.

However, in Europe, foods that contain Yellow #5, which is derived from petroleum, are required to carry a warning label, and the chemical has been banned in some countries, including Norway and Austria.

“Making ingredient changes isn’t as simple as it would seem,” Kraft said, adding all of the ingredients work together to deliver the distinctive taste, appearance, and texture consumers expect.

Kraft said it sells at least 14 other macaroni and cheese products made either with natural food colors or without added color.

“The safety and quality of our products is our highest priority, and we take consumer concerns very seriously,” Lynne Galia, a Kraft spokesperson, said in a statement. 

Copyright 2013, Rita R. Robison, Consumer Specialist

Multistate outbreak of E. coli linked to Farm Rich brand frozen food

Twenty four people infected with the outbreak strain of Shiga toxin-producing Escherichia coli O121 have been reported from 15 states.

• 78 percent are 21 years of age or younger.

• 33 percent have been hospitalized. One person developed hemolytic uremic syndrome, a type of kidney failure. No deaths have been reported.

The Centers for Disease Control and Prevention and state public health officials are interviewing those infected to obtain information about foods they might have eaten and other exposures in the week before illness.

The information available indicates that eating Farm Rich brand frozen food products is one likely source of infection for the ill people in this outbreak, the CDC said.

Testing conducted by the New York State Department of Health identified the outbreak strain of STEC O121 in an open package of Farm Rich brand frozen chicken quesadillas from an ill person’s home.

On March 28, Rich Products Corporation recalled about 196,000 pounds of Farm Rich brand frozen chicken quesadillas and several other frozen mini meals and snack items because they might be contaminated with E. coli O121. The recall is nationwide.

Consumers should check their freezers for recalled Farm Rich brand frozen food products. They shouldn’t eat the recalled frozen food products and should dispose of any remaining products, the CDC advises.

Consumers with questions about the recall should contact the company's consumer line at 888-220-5955 from 8 a.m. to 8 p.m. EST Monday through Friday or visit the company website at www.farmrich.com.

Farm Rich said on its website it will provide consumers with a refund or replacement.

The 24 infected people live in these states. Alabama, Arkansas, Illinois, Indiana, Michigan, Mississippi, New York, Ohio, Pennsylvania, South Dakota, Texas, Utah, Virginia, Washington, and Wisconsin.

The U.S. Department of Agriculture Food Safety and Inspection Service and the U.S. Food and Drug Administration are also currently conducting investigations to determine the source of infections in this outbreak.

Copyright 2013, Rita R. Robison, Consumer Specialist

Prescription drug prices vary widely at pharmacies, report shows

Consumers who don’t shop around for their prescription drugs may be paying significantly more.

Failing to comparison shop could result in overpaying by as much as $100 a month or even more, depending on the drug, Consumer Reports said in the May issue of the magazine.  

Consumer Reports compared drug prices for five top-selling drugs that have recently gone generic, including heart drugs Lipitor and Plavix. It found that Costco offered the lowest retail prices overall and CVS charged the highest. 

While consumers can find low drug prices at Costco, consumers may find a good deal too at their local independent pharmacies, Consumer Reports said.  

Consumer Reports’ secret shoppers called more than 200 pharmacies throughout the nation to get retail prices – what you would pay without insurance – on a month’s supply of five best-selling drugs that have recently become available as generics: 

• Actos, pioglitazone, for diabetes.

• Lexapro, escitalopram, an antidepressant.

• Lipitor, atorvastatin, for high cholesterol.

• Plavix, clopidogrel, a blood thinner.

• Singulair, montelukast, for asthma. 

The result? A difference of $749, or 447 percent, between the highest and lowest priced stores.

Some price comparisons

If you shop around, you could find a month’s supply of generic Lipitor at a cost of $17 at Costco. However, if you purchase it from CVS, you could pay $150. That’s a difference of $133. Rite Aid and Target were also pricey, the Consumer Reports’ shoppers found.

For the antidepressant Lexapro, a month’s supply of the generic version cost $7 at Costco and $126 at CVS. Rite Aid, grocery stores, and Walgreens also charged high prices on average, Consumer Reports found.

Generic Plavix, which is prescribed to people with cardiovascular disease, was also available at widely varying prices. For example, on the low end, a month’s supply was available at $12 through Healthwarehouse.com and $15 at Costco, while CVS quoted $180 when Consumer Reports’ secret shoppers asked about prices.

For the market basket of drugs Consumer Reports checked, independent and grocery store pharmacies’ prices varied widely between stores, sometimes offering the cheapest and the most expensive price for the same drug.

How to save

• Request the lowest price. Consumer Reports’ analysis shows that shoppers weren’t always given the best, lowest price. Make sure you ask.

• Go with generics. Generics are copies of brand-name medications whose patents have expired. The U.S. Food and Drug Administration requires that generics contain the same active ingredients in the same strength as the brands they copy. In addition, a generic must be “bioequivalent” to its corresponding brand, meaning that it delivers the same amount of active ingredients into a person’s bloodstream in the same amount of time as the original brand. 

• Leave the city and shop in rural areas. Consumer Reports found that some grocery-store and independent drugstores had higher prices in urban areas than rural areas. For example, Consumer Reports shoppers priced a 30-day supply of generic Actos at a pharmacy in Raleigh, N.C., for $203, while another pharmacy in a rural area of the state sold it for $37. 

• Get a refill for 90 days, not 30 days. Most pharmacies offer discounts on a three-month supply.

• Look for additional discounts. All chain and big-box drugstores now offer discount generic-drug programs, with some selling hundreds of generic drugs for $4 a month or $10 for a three-month supply. Just make sure your drug is on the list. Offers vary and check the fine print.

The report is available where magazines are sold, in libraries, and online at www.ConsumerReports.org. 

Copyright 2013, Rita R. Robison, Consumer Specialist

Tips for Easter and springtime for you and your pet

This spring, as people prepare to celebrate Easter or go on spring vacation, The Humane Society of the United States offers tips to keep pets safe and happy

Baby chicks and rabbits aren’t Easter gifts

Bringing a new pet into your home is a serious commitment that should only be made if your family is prepared to provide lifelong care for the animal. Some local and state laws regulate the ownership of animals such as chickens and ducks, and those animals aren’t always appropriate pets.

If you are sure about making this Easter the time to get a new family pet, consider adopting from your local animal shelter. Animal shelters are full of pets looking for homes, including rabbits and other animals.

Another consideration would be giving children a plush toy or a dark chocolate rabbit.

“Unless your entire family is committed to a pet who will need proper socialization, care, and companionship for many years, think twice before adding a baby animal to your Easter celebrations,” said KC Theisen, the society’s director of pet care issues.

After cats and dogs, rabbits are the animals most frequently surrendered to animal shelters, often because people acquire them as youngsters but aren’t prepared for the long-term commitment involved. Others are released into backyards by people who mistakenly believe they’ll be able to fend for themselves.

Unlike wild rabbits, domestic pet rabbits can’t survive on their own outdoors. Chickens also need dedicated, consistent care and far too many of them end up in shelters, rescues and sanctuaries. 

TheShelterPetProject.org or PetFinder.com lists rabbits, chickens, and other pets already in local shelters and rescues waiting for a new home.

The society’s resources on rabbit care and adopting and caring for backyard chickens can help you decide whether a rabbit or a chicken is the right pet for you. 

Air travel with your pets for your spring vacation should be avoided

The society encourages everyone to consider his or her pets’ travel needs carefully before departure day arrives. If at all possible, drive with your pets on your spring adventures or leave them at home with a trusted caretaker, as air travel can be dangerous for pets. Cargo space in an airplane isn’t designed to meet the needs of a dog, and many pets are lost or injured annually during air travel.

If you must take your pet with you in the air, consult the Department of Transportation’s airline pet transport performance records for detailed information. Pets traveling in the airplane cabin must be screened through TSA outside of their carrier, so cats and dogs should wear a metal-free harness and leash during the security process. Passengers can also request secondary screening in a room with a door to reduce the risk of accidental escape.

Make travel easier by practicing with your pet’s accessories before you leave. Whether driving or flying, introduce the leash, carrier, and other new items well in advance, using lots of praise and treats. Practice putting the harness and leash on at home and walk around. This can reduce anxiety and make travel day much less stressful for both pets and their people.

Copyright 2013, Rita R. Robison, Consumer Specialist

Recall of the Week: Lighting Science Group LED light bulbs due to fire hazard

Lighting Science Group is recalling about 554,000 LED light bulbs.

The bulbs can overheat during use, posing a fire hazard, the company and U.S. Consumer Product Safety Commission said in a statement.

Lighting Science Group is aware of 68 incidents of product failures, eight of which were accompanied by visible smoke or fire conditions. The incidents include damage to light sockets, melted fixtures, burned rugs/carpet/ floors, and damage to a circuit and lamp. There have been no reports of personal injuries.

The 120-volt LED bulbs, sold as 6-, 8-, and 9-watt bulbs (equivalent to 40 or 50 watts), were marketed under the brand names Definity, EcoSmart, Sylvania, and Westinghouse.

The model numbers A19, G25, and R20/PAR20 are found on the packaging and on the light-colored circular neck above the base of the bulb where the date code is also printed.

The date code has the week and year of manufacture: for example, date code L4010 was produced during the 40th week of 2010. The date codes may have the letters "CH " or "MX " at the end. For example, date code L4010 can also appear as L4010CH or L4010MX. Click here to see the date codes of the recalled light bulbs.

Manufactured in China, with a small number of products having final assembly in Florida or Mexico, the light bulbs were sold at various retailers including hardware, lighting, and electrical supply stores.

Consumers should immediately remove the bulbs from sockets and lamps and contact Light Science Group for replacement bulbs, the company and commission advise.

For further information, call Lighting Science Group at 855-574-2533 from 9 a.m. to 6 p.m. ET Monday through Friday or visit www.lsgc.com/recall.

For details on other recalls, see www.recalls.gov.

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

Recall of the Week: White House | Black Market women’s shoes due to fall hazard

White House | Black Market is recalling 13,500 pairs of high heel shoes.

The heels on the shoes can become unstable, posing a fall hazard, the company and U.S. Consumer Product Safety Commission said in a statement. No injuries have been reported.

This recall involves Versailles model (570053826) and Lourdes model (570053756) women's high-heeled shoes. The shoes have four-inch heels.

The Versailles is cream, black, and brown-colored faux snakeskin. The Lourdes is black-colored faux snakeskin with a white t-strap and trim.

The model name is stamped inside the shoes and on the shoebox. The model number is printed on the shoebox.

Manufactured in China, the recalled shoes were sold only at White House | Black Market stores nationwide or online at whitehouseblackmarket.com from August 2012 through October 2012. The cost was about $120.

Consumers should immediately stop wearing the recalled shoes and return them to a White House | Black Market store to receive a merchandise card for the full purchase price of the shoes, or contact White House | Black Market to receive instructions for returning the shoes by mail, the company and commission advise.

For more information, call White House | Black Market at 877-948-2525 anytime, e-mail customerservice@whitehouseblackmarket.com, or go to www.whitehouseblackmarket.com and click on the Recall tab at the bottom of the page.

For details on other recalls, visit www.recalls.gov.

Copyright 2013, Rita R. Robison, Consumer Specialist