The Survive and Thrive Boomer Guide

Beware of offers for a free home alarm system

In the last two weeks, I’ve received two offers for a free home alarm system.

The first one came after I filled out a form to win a drawing at a community celebration. I received a call saying I’d “won” a home alarm system. I’d only need to pay $1 a day to have it hooked up to a company that would respond when the alarm went off.

I asked the caller if he would send me information about the deal in the mail so I could mull it over. He said he couldn’t do that. Instead, he kept saying I needed to set up an appointment with a representative of the company. A big red flag. I told him I wasn’t interested if I couldn’t study the proposal.

The company called later and left me a message, but I didn’t call back.

Then on the Fourth of July, I heard a knock at the door. The salesman said he’d like to offer me a “free” home alarm system if I’d put his company’s sign in my yard so my neighbors would know I was a customer.

More knowledgeable now, I asked if I’d have to pay $1 a day for it.

I kept saying no. He kept talking. Finally, I closed the door.

One consumer rip-off that shows no sign of abating is the annual invasion of door-to-door salespeople who use dubious and intrusive tactics to sell burglar-alarm systems to unwary homeowners, according the article “Avoid Summer-Time Burglar Alarm Scams” on the ConsumerReports.org blog.

Consumer protection officials advise consumers to be sure that they verify everything the company says and do comparison shopping with firms that don't sell door-to-door.

They warn consumers to be suspicious of any alarm salesperson who:

• Attempts to upset you by telling about an upswing of burglaries in their neighborhoods.

• Claims to represent or wear clothing with logos from major alarm manufacturers such as GE and Honeywell, firms that don’t sell directly to consumers.

• Tries to gain entrance into your home.

• Offers a free system, because "free" systems usually come with higher monthly service fees and may be cheaply made.

• Says the company is ready to install your system right away.

• Claims your current alarm company is no longer in business.

Consumers need to focus on the quality of the equipment and service, the article advises. Also, look at the length of the agreement and determine if there are any early-termination fees.

Other tips include:

• Make sure that you deal only with well-established companies.

• Check out any company you may buy an alarm system from with the Better Business Bureau.

• Find out which local or state agency has jurisdiction over alarm companies and check the records of any company you're considering using.

• Find out whether your homeowner's insurance company offers a discount for using certain alarm companies.

Good luck avoiding these summer high-pressure salesmen. I’m glad I did.

Copyright 2009, Rita R. Robison, Consumer Specialist

Opportunity to win collectible gold coin appears in mailbox – again

In March, I wrote about an advertisement I received in the article “Honda Dealer Offers Questionable Promotion.”

A large post card said you could win a $5,000 credit card, a plasma screen TV, or a gold collectible coin.

I didn’t win a big prize, but the salesman did give me a gold-colored Andrew Jackson $1 coin.

Recently, I received another postcard with the same offer.

So I stopped by the Honda Dealer again to get another $1 coin.

The salesman was unapologetic when I said I’d done consumer research, and the coins are made from pure copper with a manganese brass outer clad.

I also told him the gold-colored coins are collectible only because presidents are featured on the coins in a series. Some people will collect them, such as the quarter series, but it’s unlikely they’ll ever be worth more than $1 because millions of the coins will be issued.

This time, President James Madison was on the coin I received.

The salesman did tell me that the marketing company had made a mistake. They sent the postcards to the same people who received the first one!

Copyright 2009, Rita R. Robison, Consumer Specialist

Was airline performance better or worse in 2008?

How were your experiences with airline travel during 2008 as a boomer consumer?

Were more of your flights late or canceled? Was your luggage lost more times? Was the food – what little there is these days – worse?

A report from a federal agency shows that 19 airlines reporting data on performance improved in most areas during 2008 when compared to 2007.

On-time performance

The on-time performance of the nation’s largest airlines improved in 2008 compared to the previous year, according to the "Air Travel Consumer Report" prepared by the U.S. Department of Transportation.

The 19 carriers reporting on-time performance recorded an overall on-time arrival rate of 76 percent for January through December 2008, up from 2007’s 73.4 percent rate, according to information filed with the Bureau of Transportation Statistics, a part of the department’s Research and Innovative Technology Administration.

Mishandled baggage

For all of last year, the carriers posted a mishandled baggage rate of 5.26 per 1,000 passengers, an improvement over 2007’s rate of 7.05.

Bumping

In 2008, the 19 U.S. carriers had a bumping rate of 1.10 per 10,000 passengers, down from the 1.12 rate for 2007.

Complaints about airline service

For all of last year, the department received 10,643 air service complaints, 19.2 percent fewer than the 13,180 complaints filed in 2007.

Complaints about treatment of disabled passengers

For all of last year, the department received 474 disability-related complaints, down 2.9 percent from the total of 488 received in 2007.

Complaints about discrimination

For all of last year, the department received 115 discrimination complaints, up 16.2 percent from the total of 99 filed in 2007.

If you’ve had a problem with an airline, you can file a complaint in writing with the Aviation Consumer Protection Division, U.S. Department of Transportation, C-75, W96-432, 1200 New Jersey Ave. S.E., Washington, D.C. 20590; by voice mail at 202-366-2220 or by TTY at 202-366-0511; or on the Web at airconsumer.dot.gov.

If you want on-time performance data for specific flights, you can call an airline’s reservation number or a travel agent. This information is available on the computerized reservation systems used by these agents.

The Air Travel Consumer Report is available on the department’s Web site at airconsumer.dot.gov.

Reductions in airline delays and other improvements in 2008 are due to flight cutbacks caused by fuel prices and the economic downturn and the decline in passenger traffic, said U.S. Department of Transportation Inspector General Calvin Scovel III in written testimony prepared for the House Transportation and Infrastructure Committee's Subcommittee on Aviation.

The testimony indicated that it's expected airline performance will decline again when air travel picks up and airports and flights become more crowded.

My next posts will be on “Comparing Airline Performance,” “Which Airlines Are the Safest?” and “Safe and Dangerous Airports.”

Copyright 2009, Rita R. Robison, Consumer Specialist

Credit card reform law ushers in new era of protection for consumers

President Obama signed a credit law on Friday that will help consumers battered by tough economic times by limiting fee increases and interest rate hikes.

The Credit Card Accountability, Responsibility, and Disclosure Act bans unfair rate increases, prevents unfair fees, requires plain language for disclosures, increases accountability, and institutes protections for students and young people.

The Federal Reserve has adopted similar protections but its provisions won’t become effective until mid-2010.

At the signing of the bill in the White House Rose Garden, President Obama recounted stories of hard-working people who had problems with credit card issuers, and a number of ways credit card companies take advantage of consumers. Obama described the new rules:

So we’re here to put a change to all that. With this bill, we’re putting in place some common-sense reforms designed to protect consumers like Janet. I want to be clear about this: Credit card companies provide a valuable service; we don’t begrudge them turning a profit. We just want to make sure that they do so while upholding basic standards of fairness, transparency, and accountability. Just as we demand credit card users to act responsibly, we demand that credit card companies act responsibly, too. And that’s not too much to ask.

And that's why, because of this new law, statements will be required to tell credit card holders how long it will take to pay off a balance and what it will cost in interest if they only make the minimum monthly payments. We also put a stop to retroactive rate hikes that appear on a bill suddenly with no rhyme or reason.

Every card company will have to post its credit card agreements online, and we'll monitor those agreements to see if new protections are needed. Consumers will have more time to understand their statements as well: Companies will have to mail them 21 days before payment is due, not 14. And this law ends the practice of shifting payment dates. This always used to bug me… suddenly it was due on the 19th when it had been the 31st.

Lastly, among many other provisions, there will be no more sudden charges – changes to terms and conditions. We require at least 45 days notice if the credit card company is going to change terms and conditions.

So we're not going to give people a free pass; we expect consumers to live within their means and pay what they owe. But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives.

See "A New Era for Credit Cards" on The White House Blog for a clip of President Obama’s remarks at the signing.

The bulk of the credit card requirements in the new law will go into effect in nine months, which will be February 2010.

The bill calls for phasing in credit card protections, with the earliest provision – giving consumers 45-day advance notice of significant changes in credit card terms – starting 90 days after enactment of the law, which is this fall.

Consumer groups warn consumers to be wary because banks and other credit card issuers may increase fees and interest rates before the law's new requirements take effect.

Copyright 2009, Rita R. Robison, Consumer Specialist

Badly need credit card reforms pass the Senate today

Credit card companies are raking in billions of dollars from consumers in raised interest rates and fees.

A bill passed by the Senate today, HR 627, would provide more disclosures and restrict how fees and interest rates could be changed after consumers have obtained credit cards.

Consumer Reports Money blog offers the following summary of the bill’s provisions in the post “Senate Passed Credit Card Reform: What’s in It for Consumers”:

• Interest rates can’t be raised during the first year of an account. Customers will be notified 45 days in advance of any change in interest rates.

• Bills can be paid online or over the phone without incurring a processing fee.

• Customers must be over 60 days late on payments before their interest rate can be raised on balances; if the rate is raised, it will go back to the lower rate if customers make the minimum payment on time for six months in a row.

• Overlimit fees can’t be charged unless cardholders are told that the purchase will put them over their limit and they authorize it to go through anyway.

• If your card has more than one interest rate on balances, then payments must be applied to the highest interest rate first.

• Gift cards can’t expire for five years, and issuers can’t charge dormancy fees for unused amounts left on the card.

• Credit card statements must be mailed out 21 days before they’re due.

• Individuals under 21 will need a co-signer on their cards unless they can prove that they have the means to make payments on their own.

• Credit card agreements will have to be posted on the internet.

The American Banking Association doesn’t like some parts of HR 627.

“The goal in the legislation should be to obtain the right balance: providing protections, while maintaining the important role of credit cards in providing loans to consumers and small businesses,” said the association in a statement on the bill. “Unfortunately, we believe the bill does not achieve that balance and will therefore cause an unnecessary decrease in credit availability.

“Most importantly, this bill fundamentally changes the entire business model of credit cards by restricting the ability to price credit for risk. What has been a short-term revolving unsecured loan will now become a medium-term unsecured loan, which is significantly more risky…"

Senator Christopher Dodd, D-Conn., said on his blog that consumers have the right not to be deceived, misled, or ripped off by unfair and arbitrary credit card industry practices that have become commonplace.

"Unfortunately, as the use of credit cards has soared, so too has the list of predatory practices, hidden fees and sudden interest rate hikes to which the industry has increasingly resorted – 'any time any reason' interest rate increases, 'double cycle billing' that charges interest on balances that the consumer has already paid, deceptive marketing to young people, and skyrocketing penalty interest rates, some as high as 32 percent.
 
"The industry has profited handsomely; between 2007 and 2008, credit card companies raised interest rates on nearly one out of every four accounts – 70 million cardholders in all who were charged $10 billion in extra interest.
 
"Put simply, this is an industry that has thrived in part on misleading its customers. Consumers should not have to live in fear that a clause buried in the fine print of their credit card contract might someday be their financial undoing."

In the next step, a compromise bill will be developed with the House, which passed a slightly different bill in April.

Then the compromise bill will go to President Obama for signature. The provisions could go into effect nine months after the president signs it.

Copyright 2009, Rita R. Robison, Consumer Specialist

Tell makers of household cleaners you want to know what’s in the cleaners you use

Household cleaner manufacturing giants want to keep secret the chemical ingredients in their products and the health risks they pose.

But you can take action to let these corporations know you want the truth.

Tell them consumers need a full list of ingredients and disclosure of their impacts to health. Armed with this information, consumers can make safe choices about what products to bring into their homes.

Tell Procter & Gamble, Colgate-Palmolive, Church and Dwight, and Reckitt-Benckiser to follow the law requiring them to disclose the chemical ingredients in their products and the health problems they cause.

Earthjustice, a public interest law firm that works to protect the environment, offers an Action Alert you can use to send an e-mail to these corporations to let them know you want action on cleaning ingredient labeling.

Take action on this important issue today.

Copyright 2009, Rita R. Robison, Consumer Specialist

The Survive and Thrive Boomer Guide Recall of the Week: Kinder-brand chocolate eggs

Despite the fact that Kinder-brand chocolate eggs are banned in the United States, the candy – with a toy inside – is still being sold in some places in the country.

This product is banned for sale here because the toy surprise hidden inside can pose choking and aspiration hazards to children younger than 3 years of age, reports the U.S. Consumer Product Safety Commission.

The Kinder eggs are hollow milk chocolate eggs about the size of a large hen's egg in an orange, white, and blue foil wrapper. The toy inside the egg is contained in an oval-shaped plastic capsule. The toy requires assembly and each egg contains a different toy. Labeling is in various languages.
 
Consumers who have purchased this product should immediately take it away from young children, the commission advises.

The commission conducted a recall of these chocolate eggs in August 1997.

Copyright 2009, Rita R. Robison, Consumer Specialist

Top 10 reasons for baby boomers to be optimistic

Yesterday’s post on the “Top 10 Baby Boomers Challenges” wasn’t upbeat. In these tough economic times, the problems can be great.

Here’s the other side of the coin, ways baby boomers can embrace new thinking and opportunities during the recession:

1. Reinventing yourself

A job loss or downsizing at your workplace can lead to the opportunity to look at what you really want to do in your work life. Doing research and finding companies or agencies that are hiring rather than only responding to ads are techniques that work even during a recession.

2. Reducing spending

Buying less and having fewer things often lead to a simpler and happier lifestyle.

3. Focusing your business

A recession offers the opportunity to slow down, examine your business, and make plans for the future.

4. Thinking positively

It promotes positive solutions and can draws things to you as in the Law of Attraction.

5. Investing opportunities

The financial crisis offers investment bargains if you have any new money to invest. Be sure to work with a financial planner to help you make wise choices in these unusual economic times.

6. Making different retirement decisions

Delaying retirement may have its advantages. You may be able to come up with a plan, such as moving to a lower-cost community with fantastic part-time employment opportunities, which will be better able to meet your retirement needs.

7. Improving health

Job changes and spending less may free up more time for exercising, walking, running, cooking nutritious meals, and learning relaxation techniques such as yoga. 

8. Contributing to the community

With the economy sagging and unemployment at record levels, you have the opportunity, through various community programs, to help those who have lost their jobs and homes.

9. Experiencing a more progressive society

With an administration in the White House that believes in pro-work, health-promoting policies and consumer protection, boomers can benefit from a federal government that serves them better.

10. Getting greener

Green projects and organic food sales are on the upswing. It’s a good time to consider green jobs, goods and services, and volunteer opportunities. Check green Web sites such as Green America, formerly Co-op America, Worldchanging, and Global Exchange for information on what’s happening. You won’t find many reports about green activities in the media.

Let me know your opinions. What do you see as opportunities for baby boomers today?

Copyright 2009, Rita R. Robison, Consumer Specialist

Watch out for trouble with firm handling liquidation at Ritz Camera stores

Ritz Camera will be closing 300 of its 700 of stores soon and offering liquidation sales.

If you love photos like I do, it sounds like a good opportunity to get a great bargain. Right? Wrong.

The firm handling the Ritz liquidations is the same firm that recently closed down Circuit City stores.

The Great American Group, SB Capital Group, Tiger Capital Group, and Hudson Capital Partners did a poor job selling Circuit City stock, according to the article “No Deals: Notorious Cabal to Oversee Ritz Camera Liquidations” on The Consumerist.com.

Scott Carpenter, executive vice president for Great American of Woodland Hills, said the discounts would begin at 10 percent to 20 percent off, depending on the category of merchandise.

“Then we will progress to 20 percent off, 30 percent off all the way to 90 percent off. We think it will take about seven to nine weeks," Carpenter said. The group said that about $50 million in merchandise would be liquidated.

But The Consumerist advises shoppers to be wary.

The liquidators reset all prices to manufacturer suggested retail price, which is considerably higher than most sale prices, and then apply discounts to the higher price point, The Consumerist reports. Even with 30 percent discounts, you can still find better prices online or at other local retailers, ones who issue refunds and are subject to state consumer protection laws.

Ritz Camera, based in Beltsville, Md., filed for bankruptcy protection in February after growing to a chain of more than 800 stores since its start as a single store in Atlantic City, N.J., in 1918.

Copyright 2009, Rita R. Robison, Consumer Specialist

The Survive and Thrive Boomer Guide Recall of the Week: Children’s fishing poles distributed by Zebco

About 2,700 children’s fishing poles are being recalled by the distributor W.C. Bradley/Zebco Holdings Inc., doing business as Zebco Brands, of Tulsa, Okla. The paint on the reels of these fishing poles contains excessive levels of lead, violating the federal lead paint standard, according to the U.S. Consumer Product Safety Commission.

This recall involves Zebco Advanced Youth Fishing Rod & Reel combo sets. The reels are painted orange and have the words “Zebco” and “ZAVS 10” on the reel handle. Only spinning reels are involved in this recall.

The fishing poles, manufactured in China, were sold at discount department and sporting good stores nationwide from August 2007 through December 2008 for about $35.

Consumers should immediately take the fishing poles from children and contact Zebco for information on receiving a refund.

For additional information, contact Zebco at 800-588-9030 between 8 a.m. and 4 p.m. CT Monday through Friday, or visit the firm’s Web site at www.zebco.com.

To learn about other recent recalls, see www.Recalls.gov.

Copyright 2009, Rita R. Robison, Consumer Specialist