The Survive and Thrive Boomer Guide

Report raises concerns about overdraft costs on checking accounts

It’s difficult for consumers to anticipate and avoid overdraft costs on their checking accounts.

Those are the findings of a report by the Consumer Financial Protection Bureau, which found wide variations across financial institutions when it comes to the costs and risks of opting in to overdraft coverage on debit card transactions and ATM withdrawals.

The report also found that consumers who opt in for overdraft coverage end up with higher account fees and more involuntary account closures than consumers who don’t opt in.

“What is marketed as overdraft protection can, in some instances, create greater risk of consumer harm,” said Richard Cordray, director of the bureau.

When consumers try to withdraw more money from their checking accounts than is available, the financial institution can reject the transaction. For some transactions, such as checks, the institution usually charges a non-sufficient funds fee. The financial institution can also choose to cover the payment by advancing funds on the consumer’s behalf, and often charges an overdraft fee for the service.

Most financial institutions have automated systems for handling overdrafts. The systems have contributed to the evolution of overdraft from an occasional courtesy to a significant source of industry revenues, said Cordray. The bureau estimates that overdraft and non-sufficient funds fees make up 60 percent or more of the fee income on consumer checking accounts.

Over the past decade, federal regulators have taken steps to improve overdraft practices. The bureau’s report will provide the basis to develop more uniform treatment of these issues across financial institutions, he said.

The report is based on data from large banks supervised by the bureau, other research, and information from consumers.

Findings from the report are:

Opting-in puts consumers at greater risk

In 2010, a new federal government regulation took effect requiring that financial institutions obtain a consumer’s consent or opt-in before charging fees for allowing overdrafts on ATM withdrawals and most debit card transactions.

Recall of the Week: Townsend Farms Organic Antioxidant Blend frozen berries due to possible hepatitis A contamination

Townsend Farms Inc. is recalling certain lots of its frozen Organic Antioxidant Blend berries because they may be contaminated with hepatitis A virus.

On June 3, Townsend Farms recalled all of the berries sold at Costco under the name Townsend Farms Organic Antioxidant Blend, 3 lb. bag, and UPC 0 78414 404448. The recalled codes are located on the back of the package with the words “BEST BY” followed by the code T012415 through T053115, followed by a letter.

The berries were also sold at Harris Teeter stores from April 19 to May 7 under the product name Harris Teeter Organic Antioxidant Berry Blend, 10 oz bag, and UPC 0 72036 70463 4, with a “BEST BY” code of T101614C and T041613E.

Consumers shouldn’t eat the recalled berries, the Centers for Disease Control and Prevention said. The berries should be disposed of immediately.

Consumers should keep proof of purchase and contact Townsend Farms Customer Service by phone at 800-875-5291 or e-mail townsendfarms5148@stericycle.com for a refund.

A hepatitis A vaccination can prevent illness if given within two weeks of exposure to the contaminated product, according to the CDC. The agency has this advice for consumers:

• If you consumed these berries in the last two weeks and have never been vaccinated, contact your health care provider to find out if you should be vaccinated. If you don’t have a health care provider, contact your health department. You can find your health department contact information at this website.

• If you have already received a hepatitis A vaccination in the past, you’re unlikely to become ill with the disease.

As of Friday, 79 people with acute hepatitis A infections that may be linked to consumption of the contaminated berries have been reported in eight states: Arizona, California Colorado, Hawaii, Nevada, New Mexico, Utah, and Washington.

These numbers are expected to change as the investigation continues, the CDC said.

Copyright 2013, Rita R. Robison, Consumer Specialist

Settlement requires health care credit card company to stop using high-pressure tactics for cards sold in providers’ offices

GE Capital Retail Bank and CareCredit LLC, its subsidiary, have agreed to a settlement that requires new protections for consumers who use CareCredit, a health care credit card that can carry an interest rate of more than 26 percent.

Settlement terms

The agreement requires a “cooling-off” period to give consumers an opportunity to consider the card’s terms and the treatment plan, a limit to what the provider can charge in advance, and transparency requirements to make consumers aware of high interest rates if the charge isn’t paid off at the end of the promotional period, said New York Attorney General Eric T. Schneiderman. 



Consumer complaints

An investigation began after hundreds of consumers complained of problems related to CareCredit. 



GE Capital Retail Bank issues the CareCredit card and contracts with health care providers who offer the card to their patients as a way for patients to finance the cost of treatment. GE pays the health care providers in full within 48 hours of the charge. About 65 percent of CareCredit cardholders apply for the card while they are in a provider’s office.

The investigation found that the application process is often rushed and occurs when treatment is set to begin.

Consumers reported being pressured into applying for CareCredit and charged the full amount for treatment in advance of receiving services. In many cases, providers failed to inform consumers of the basic terms of the CareCredit card and represented that CareCredit had “no interest,” when it carried retroactive interest of 26.99 percent if not paid in full during a promotional period. Other consumers were led to believe that they were signing up for an in-house, no-interest payment plan directly with their provider or a line of credit with 0 percent interest. Consumers who did complain often encountered difficulty in obtaining refunds. 



GE and CareCredit is the largest issuer of consumer health care financing in the nation, with about 160,000 providers offering it nationwide.

Of the 90 percent of CareCredit consumers who choose the "no-interest-if-paid-in-full" promotion, about 25 percent end up paying a 26.99 percent interest rate, when the promotional period ends. That’s because too often consumers aren’t given clear information about the terms of the financing and how to avoid paying the interest, Schneiderman said. 



Refunds or credits

The New York Attorney General’s Office estimates that the appeals process may result in refunds or credits of up to $2 million to about 1,000 consumers whose complaints to GE or CareCredit were rejected.

Under the agreement, GE will send out notices to these cardholders to let them know about their right to appeal.

Copyright 2013, Rita R. Robison, Consumer Specialist

Recall of the Week: Teavana glass tea tumblers due to laceration and burn hazards

Teavana is recalling glass tea tumblers, about 445,000 in the U.S, and 24,850 in Canada.

The glass tea tumblers can break or shatter unexpectedly, posing a laceration and burn hazard, according to the company and the U.S. Consumer Product Safety Commission.

Teavana has received about 302 reports of the glass breaking or shattering, including six reports of lacerations and burns when the tumblers broke during use. Injuries include cut fingers and legs and burned toes.

The glass tea tumblers are double-walled beverage glasses.

Most models have removable stainless steel tea infuser baskets, removable lids, and ornamental etchings on the inner wall. The tumblers were packaged in color-coordinated cylindrical packages with the SKU number and UPC code found on a sticker on the bottom of the package.

Some of the models with a lid were sold as part of a tea gift set. Only one model was sold without a lid or tea infuser basket and was sold in a set of four glasses. Click here for the model names, SKU/product codes, and UPC codes of the recalled tumblers.

Manufactured in China, the tea tumblers were sold only at Teavana stores and online at Teavana.com from August 2007 through May 2013. The cost was about $15 to $33 for the individual tumblers, about $40 for the Flourish Iced Tea Glasses Sets, and about $80 to $100 for the Imperial Blooming Collection Tea Sets. 

Consumers should immediately stop using the glass tea tumblers and return them to a Teavana store location, except for three stores: Columbia Mall, Columbia, Md.; Dallas Fort Worth Airport, Arlington, Texas; or Galleria Mall, Fort Lauderdale, Fla. Consumers will receive a free replacement metallic tea tumbler and a complimentary 2 oz. package of Opus Rouge Rooibos Tea.

Consumers returning tumblers or glasses sold as part of sets will receive a replacement tumbler and package of tea for each tumbler or glass in that set.

Consumers can also mail the tumblers or glasses to Teavana by calling the company and requesting a pre-paid mailer that will be sent at no cost to the consumer for returning the recalled tumblers or glasses.

A free replacement metallic tumbler plus the complimentary tea will be sent at no charge when the returned tumblers or glasses are received.

For more information, call Teavana at 877-261-1509 from 8 a.m. to 5 p.m. ET Monday through Friday or leave a message at other times, or visit the firm’s website at www.Teavana.com, and click on “Glass Tumbler Recall” for more information.

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

Copyright 2013, Rita R. Robison, Consumer Specialist

Recall of the Week: Insolroll roller shades with solar powered and rechargeable motor due to fire hazard

Insolroll is recalling about 1,500 Insolroll solar powered and rechargeable motor roller shades.

The motor of the roller shades has a built-in lithium battery that can overheat while being charged, posing a fire risk, according to the company and the U.S. Consumer Product Safety Commission.

Insolroll has received one report of the motor on the shade overheating and creating a fire. No injuries have been reported.

Manufactured in the United States by Insolroll Window Shading Systems, the window shades were sold at Insolroll independent window covering installer retailers nationwide from June 2012 through March 2013. The cost was between $400 and $700 per shade.   

The recall includes Insolroll roller shades available with a solar powered motor, model #IN-SOL-R, or rechargeable motor, model #IN-RCG-R. The model numbers are printed on the body of the motor located inside the roller tube.

The rechargeable motors on Insolroll interior solar screen and blackout shades have built-in lithium ion batteries that are used with a solar panel charger or plug-in charger.

The 18-inch by 1-5/16-inch solar panel charger is white on the interior side and black toward the exterior. The plug-in charger is black and measures about 3-inches by 1-5/8 inch by 1-1/16 inch and has a 13-foot cord.

The motors raise and lower the shades controlled by a hand-held remote control or surface-mounted wall switch. The manufacturer’s name is printed on a sticker on the roller tube that can be seen by taking down the shade and removing the fabric.

Consumers should immediately unplug the solar panel charger or unplug the plug-in charger and contact their Insolroll dealer to receive a free replacement motor and installation instructions. If the dealer is unknown, contact Insolroll for a list of dealers. 

For information, call Insolroll at 800-447-5534 from 8 a.m. to 5 p.m. MT Monday through Friday or online at www.Insolroll.com and click the Product Recall button.

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

Copyright 2013, Rita R. Robison, Consumer Specialist

Top tips for selecting a retirement community

As the number of baby boomers reaching retirement age increases dramatically, the number of retirement communities springing up to serve them also is growing.

Is moving into a retirement community a good decision for you? Selecting a retirement community is very complicated. Here are some factors to consider:

• Review your goals for retirement. Determine what your priorities are. If you need to work part time, but the retirement community is located on the edge of a big city where land is cheaper, it might not be a good location for you.

• Figure out where you want to live. If you’re planning on moving, you need to be certain that the community you’re moving to will meet your needs. One suggestion is to move to the city and rent a home or apartment before you buy a home or condo or sign up for a retirement community. See “How to Choose the Best Place to Retire” for items to consider for selecting the best community for your retirement.

• Find out about health facilities in the region and how far you’ll be from them.

• Tour the retirement communities that you’re considering and have a checklist for each. Spend time in every part of the facility. Have a meal, if meals are offered to some or all residents. Drop in unannounced for a second visit. See “Questions to Ask Series: When Selecting Active Independent Living and Retirement Communities” for a checklist to use.

• Analyze the costs thoroughly. Find out what’s included. There may be a buy-in fee or monthly homeowner’s dues. If so, find out what they cover. Ask if you have to pay extra for items such as art classes at the clubhouse.

• Check out the financial stability of the retirement community. Some don’t do a good job maintaining the buildings and grounds. Ask to see financial statements and homeowner association documents and minutes. Also ask to see licensing and inspection reports and any complaint investigations conducted. Be wary if the retirement community is under construction or is partly constructed. Some communities fail to provide the amenities promised and others go bankrupt. See the article “Searching for Security: How to Tell Whether a Continuing-Care Community Will Be Able to Keep Its Financial Promises” for information.

• Find out if the retirement community is a facility that will allow you to age in place. Check to see if it has grab bars and if it’s wheel chair accessible. You also need to consider how you’ll get around if you can no longer drive.

• Ask if there are any rules about children visiting or living with you. You may need to help an adult child with kids or a grandchild. You need to know if the rules preclude such living arrangements.

• Find out if the facility offers ways to help you keep active and what types of activities are offered in the community. Some people want amenities such as a fitness room, fitness classes, a pool, and walking trails, while others would like arts and crafts, bingo, and card games. Cultural activities, colleges that offer classes, nearby parks, and museums are pluses.

• Ask for the names of residents that you can talk with. Find out if there’ll be other residents that have the same interests as you. Also, ask about the ages of the people who live there.

• Review consumer complaints and pay attention to them.

• Don’t sign a contract until you understand pricing and have read the entire contract.

Good luck with your retirement planning and selecting a retirement community. It’s a complicated consumer decision, but using these steps will help you make the right choice for what you need.

Copyright 2013, Rita R. Robison, Consumer Specialist

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

Recall of the Week: Optimus infrared quartz radiant heaters due to fire hazard

Optimus is recalling about 355,000 portable infrared quartz radiant heaters.

The heater design can fail to prevent ignition of nearby combustible materials that come in contact with the unit, posing a fire hazard to the consumer, according to the company and the U.S. Consumer Product Safety Commission.

This recall involves two models of Optimus infrared quartz radiant heaters with model numbers H-5210, produced in 2011 and H-5211, produced in 2012.

The model number and the year of production are located on a label on the back of the heater. The recalled heaters are white and are approximately 12-inches wide by 13-inches tall by 6-inches deep. “Optimus” is printed on the top left of the heater. The control knob is located on the top right side of the heater.

No injuries have been reported.

Manufactured in China, the heaters were sold at Best Buy Market Place, Family Dollar, Heartland, Northern Tool,  Rite Aid, and other stores nationwide and online at Amazon.com, ebay.com, and Walmart.com from October 2011 through December 2012. The cost was between $25 and $30.

Consumers should immediately stop using the recalled heaters and contact Optimus to request a free replacement heater, the company and the commission advise. Consumers have the option of a comparable ceramic heater or new model quartz radiant heater, model H-5510, which will be available after August 2013.

For more information, call Optimus Enterprise Inc. at 888-672-5832 from 10 a.m. to 12:30 p.m. and 1:30 p.m. to 3 p.m. PT Monday through Friday, or go to www.optimusent.com and click on “recall.” Consumers can also e-mail the firm at return.optimus@gmail.com.

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

Copyright 2013, Rita R. Robison, Consumer Specialist

Strong women, aging, stereotypes, banks, shopping, stuff, and the empty nest are topics for this week’s Best of Boomer Blogs

Lisa Garon Froman of Tao Flashes is the host for this week’s Best of Boomer Blogs #308.

The boomer blog roundup is a collection of like-minded blogs cooperating to share their best stories of interest to the Baby Boomer Generation.

This week, as spring continues to give us beautiful flowers, boomer bloggers are writing about strong women in our lives, the difference between being old and really old, how you can get tripped up by stereotypes, banks violating terms of a mortgage settlement, the best place to shop in Dubai, the emotional and financial implications of “stuff,” and a look at preparing for the empty nest.

In addition to my blog, other members of the Best of Boomer Blogs are: The Midlife Crisis Queen, Sightings Over 60, Arabian Tales and Other Amazing Adventures, So Baby Boomer, Blue Blinds Media, and Tao Flashes.

Be sure to check back next week to see what baby boomer bloggers are thinking and writing about.

Copyright 2013, Rita R. Robison, Consumer Specialist