The Survive and Thrive Boomer Guide

Banks, telecoms, electronics, retailers among companies requiring forced arbitration

If your bank, cell phone provider, employer, or other company that you conduct business with violated your rights or cheated you, would you want to be able to take them to court?

Many companies are now using fine print to stop consumers from taking legal action, according to Public Citizen, a consumer advocacy group.

Below is Public Citizen’s listing of some of the largest corporations that have placed “forced arbitration” clauses in their terms of service. Forced arbitration blocks consumers and employees from holding companies accountable in court because they must take their claims to private, secretive tribunals that often favor the companies, the consumer group said in a statement.

Telecommunications: DirectTV, Verizon, AT&T, Comcast, Sprint, T-Mobile, Clearwire, Time Warner Cable, Tacfone.

Consumer banking and credit: Wells Fargo, US Bank, Regions Banks, BB&T, Discover, PNC Bank, Chase.

Student loans: Sallie Mae, Citibank, Chase, Discover.

Consumer electronics: Sony, Dell, Gateway, Electronic Arts, XBox Live.

Nursing homes: Candansk, Covenant Dove, Driftwood Rehabilitation and Nursing Center, Kindred Nursing Center, Manor Care of Florida, OP Winter Haven, SA-PG Sun City Center, Triad Health Management of Georgia.

Home builders: D.R. Horton, Pulte Homes, Centex Corp., Lennar, KB Home, Hovnanian Enterprises, NVR (Ryan), The Ryland Group, Beazer Homes.

Gift cards: Starbucks, Pep Boys, Gold’s Gym, Ticketmaster, Crocs, In-N-Out Burger, Red Mango, Patagonia, Discover.

Ecommerce and entertainment: amazon.com, Barnes & Noble, Netflix, Hulu.

Employment: Hooters of America, Forever 21, Nordstrom, Neiman Marcus Group, Macy’s West Stores, Yahoo! Inc.

Miscellaneous: New Leaf Academy, Orkin.

Public Citizen asks consumers to add more companies that are taking away their rights with forced arbitration by sending an e-mail to action@citizen.org.

Copyright 2012, Rita R. Robison, Consumer Specialist

National Consumer Protection Week: Take action to become an alert, informed consumer

By Rita R. Robison

This week, March 4 through 10, is National Consumer Protection Week.

Here are some suggestions from consumer groups and government agencies on what consumers can do during this important consumer week to improve enhance their consumer lives.

NCPW.com

This is the website for the National Consumer Protection Week organization. For information on how to set up activities in your community, see its Great Outreach Ideas page.

National Association of Attorneys General

Check the Attorney General’s Office website in your state for the resources consumers need to make informed decisions on issues that include home foreclosures, investments, credit, and business opportunities.

Consumer Financial Protection Bureau

Read about the steps the new agency has taken to help protect your financial interests.

U.S. Department of Health and Human Services

The department urges consumers to learn more about their new health insurance rights and the resources offered by the Affordable Care Act.

Federal Deposit Insurance Corp.

The agency encourages consumers nationwide to protect themselves and make better-informed decisions by taking advantage of available resources. Information on credit, debit, and prepaid cards are offered.

Consumer World

The consumer information website urges people to reserve a copy of the great resource, the “Consumer Action Handbook for 2012” or read it online now.

Consumer Action

The consumer group offers a Take Action Center, reviews of consumer books, consumer news, and consumer action publications.

Office of the Comptroller of the Currency

The agency suggests consumers take a look at its HelpWithMyBank web page for answers and solutions for customers of national banks.

Federal Trade Commission

To learn about identity theft, investment scams, shopping tips, and telemarketing and telephone services, see the FTC’s Consumer Information web page.

Better Business Bureau

You can sign up to get a consumer tip a day from the BBB.

And don't forget to file consumer complaints when you have problems in the marketplace. Filing complaints lets companies and government regulators know when things are going wrong when consumers purchase goods and services.

 

Copyright 2012, Rita R. Robison, Consumer Specialist

Obama did a better job this year of addressing consumer needs in his State of the Union speech

By Rita R. Robison

Maybe it was Occupy Wall Street or just the fact that he’s finally getting the message that consumers are suffering, but President Obama’s State of the Union address contained more for consumers this year than his 2011 speech.

Obama talked about the new Consumer Financial Protection Bureau and its role in keeping an eye on credit card, payday loan, and mortgage companies.

He also said he will set up a unit in the Justice Department, which will work with leading state attorneys general, to investigate the business practices that led to the housing crisis. This action is long overdue, but at least it’s happening.

On income equality, Obama suggested that millionaires pay more in taxes, at least the same percentage that average Americans pay. He suggested a rate of 30 percent.

Obama also talked about creating jobs, in clean energy and through public works projects, and the importance of keeping the slowly growing economy moving in a positive direction.

While Obama received lots of applause when he talked about cutting government programs and spending, it’s not an easy task to figure out how to make government leaner and work better.

Not so positive for consumers was Obama’s support of offshore drilling for oil and his willingness to work with Congress to cut Medicare and Social Security benefits.    

Copyright 2012, Rita R. Robison, Consumer Specialist

Obama’s recess appointment of financial bureau chief is a good step for consumers

By Rita R. Robison

Yesterday, President Obama appointed Richard Cordray to head the new Consumer Financial Protection Bureau in a recess appointment.

While Cordray isn’t Elizabeth Warren, who conservatives saw as too powerful for the job, getting him appointed to lead the new agency is important for consumers.

After the housing market collapse due to fancy footwork by the mortgage industry and Wall Street and the ensuing Great Recession, Warren saw the need for an agency that would be a watch dog for consumers in credit card, mortgage, and payday loan transactions.

Warren served as interim director of the agency and hired Cordray to be its top enforcement officer.

Previously, consumers filed complaints with a number of different federal agencies, including those regulating different kinds of banks, with varying results.

Speaking yesterday in Ohio, where Cordray served as attorney general and state treasurer, Obama said:

When Congress refuses to act, and as a result, hurts our economy and puts our people at risk, then I have an obligation as president to do what I can without them. I’ve got an obligation to act on behalf of the American people. And I’m not going to stand by while a minority in the Senate puts party ideology ahead of the people that we were elected to serve. Not with so much at stake, not at this make-or-break moment for middle-class Americans. We’re not going to let that happen.

The Constitution gives the president authority to make temporary recess appointments to fill vacant positions when the Senate is in recess. The Senate has been in recess for weeks. But, in an attempt to prevent the president from exercising his authority, Republican Senators have tried to use “pro forma” sessions, sessions during which no Senate business is conducted and one or two Senators gavel in and out of session quickly. Legal experts agree that the Senate can’t use sham “pro forma” sessions to prevent the president from exercising a constitutional power.

Without a director, the agency was unable to regulate non-bank financial businesses including payday lenders, mortgage companies, and debt collection agencies.

Conservatives want to further weaken the bureau by having it run by a five-member commission and its budget approved by Congress rather than the Federal Reserve.

For more information on the new federal bureau, see “Consumer Financial Protection Bureau 101: Why We Need a Consumer Watchdog.”

Copyright 2012, Rita R. Robison, Consumer Specialist

Playing it safe at the ATM when you travel

By lisa Shusterman, Guest Blogger

Blogging at Around the World in Easy Ways

Whether you’re traveling domestically or internationally, ATM machines are the number one way people obtain cash for their travels. They work great, except when they don’t. Following some basic rules for ATM use will help insure things continue smoothly through the duration of your trip.

1. Always use an ATM machine that is attached to a bank, not a stand-alone machine.

2. Cover the keypad with your hand while entering your pin number.

3. Avoid ATMs in areas that are overly busy or deserted.

4. Withdrawal cash only during banking hours.

5. Withdrawal from ATMs in the town in which you are staying. If you are planning a day trip, obtain your cash prior to leaving town.

6. Try not to transact business on the day prior to leaving town.

7. When possible, visit the ATM machine as a separate trip, stopping back at your accommodation to drop off your card and excess cash prior to your other activities for the day.

Does this sound a little excessive? It is. Until an ATM machine eats your card on a Saturday when the bank is closed and you are on a day trip an hour away from where you are staying and all of this occurs on the day before you are supposed to leave for Rome. Or, until you go to the ATM, withdrawal your cash, and then go for a day of sight seeing only to have your pocket picked and you are now down not only the fresh cash you just obtained but also your ATM card. 

When you are dependent on something, it never hurts to be a little extra cautious and take a little extra care – even if it seems excessive.

The first picture is of the ATM machine in Chiusi, Italy, that ate our ATM card on a Saturday when, of course, the bank was closed. The second one is of a kind man in the tourist office in Chiusi who couldn't do anything for us at the moment, but wrote a note, in Italian, explaining what happened so that we could present it to the bank.

Copyright 2011, Rita R. Robison, Consumer Specialist

What were your best and worst consumer experiences this week?

Which consumer happenings cheered you this week and which ones made you want to scream or weep?

Here are my best and worst consumer experiences this week:

My best: Visiting Diva Boutique

 

My niece Suzi Coombs has a new location for her store Diva Boutique in Bellingham, Wash.

I had a great time visiting and picking out a new Joseph Ribkoff jacket and a pair of black pants.

My worst: Outrageous Visa credit card fees

I’m a subscriber to the Problogger’s Forum, which has a monthly charge of $1.95. Since it goes on my credit card and is an overseas charge, Visa charges me $2.50 monthly.

What a rip-off.

I sent the Problogger a tweet about it, and he didn’t bother to reply.

I’m going to spend a month or two using the Forum, then unsubscribe from it.

Copyright 2011, Rita R. Robison, Consumer Specialist

What were your best and worst consumer experiences this week?

Which consumer happenings cheered you this week and which ones made you want to scream or weep?

Here are my best and worst consumer experiences this week:

My best: Getting historic family photos scanned

A few months ago, I paid $50 to Ritz Cameras to get 500 photos scanned. Before Christmas, I submitted 50 of our most famous family photos so I could give disks of the photos to my sister, daughters, and nieces. This week I rounded up 450 more.

Then I got lucky. When I brought the photos in, Ritz was having another sale. I’m organizing 500 more photos for scanning.

It’s so much fun to look at family photos from 1930 to 1960. It brought back memories of my parents and other relatives and growing up in rural areas of Eastern Washington.

My worst: Huge hike in Visa fees

In the fourth quarter of 2010, credit card giant Visa’s revenue worldwide rose 14 percent to $2.24 billion, compared with $1.96 billion in the prior-year quarter.

I can see why. Instead of paying 1 percent for credit card transactions, the Visa fee has jumped to a $2.50 minimum fee for overseas transactions.

I was stunned to find this out when I traveled to Madrid. I went to Prado Museum – a $2.50 charge to use my credit card. A lunch break at the Prado – another $2.50 charge.

I didn’t receive any notification about this increase.

I’m furious. I’m going to call Visa and complain.

Copyright 2011, Rita R. Robison, Consumer Specialist

Obama’s State of the Union speech a disappointment for consumers

While eloquently worded with lofty ideas on how America can regain its greatness, President Obama’s State of the Union speech was a big disappointment for the consumers of America.

Reflecting the shellacking the Democrats took in the 2010 mid-term elections, Obama embraced conservative ideas that will hurt consumers. Most notable among them are limiting the amount of money consumers can sue for, reducing Medicare and Medicaid benefits, restructuring Social Security, and amending the health care reform law.

But perhaps the most notable omission for consumers in Obama’s address was the lack of the help for homeowners facing foreclosures. The banking industry and Wall Street giants have been bailed out and are making billions again.

But banks are dragging their feet in working with homeowners who want reduced payments or to negotiate a short sale. They’re insisting that consumers pay the inflated mortgagees that led to the housing bubble and the collapse of the economy.

Obama, reeling from the November election, is embracing cutting government regulations and reducing the size of the federal government – both big items on the conservative agenda.

These actions can lead to disaster. The BP oil spill showed America what a weak government agency and lack of regulations can do.

Obama achieved some consumer successes in his first two years in office: credit card reform, food safety, health care reform, and creation of the Consumer Financial Protection Bureau.

However, his move to the right to appease conservative voters that he showed in tonight’s speech could lead to policies that hurt consumers, especially baby boomers who are preparing for retirement.

Let’s hope that this flowery speech was the best Obama and his advisers could come up with and that he’ll remember the needs of consumers, using the power of his veto pen to beat back ill-advised conservative legislation.

Copyright 2011, Rita R. Robison, Consumer Specialist

Top 10 consumer stories for 2010

It’s been a mixed year for American consumers. While some important consumer protection measures have been passed, a sluggish economy continues to hurt those who are unemployed and corporations continue to gain power at the expense of consumers.

1. The Great Recession continues on.

As of November, more than 6.3 million people have been without work for six months or more, making up nearly 42 percent of the unemployed. People out of work for long periods find it difficult to get back to work.

2. Gigantic gains in corporate power are devestating to consumers. 

With the U.S. Supreme Court’s Citizen United decision ushering in unlimited corporate campaign contributions, corporations bought dozens of elections throughout the country. It happened in the Third Congressional District where I live. A young, conservative woman – who touted as experience playing varsity basketball in high school and belonging to 4-H – defeated a candidate with extensive experience in government.

3. Help is lacking for consumers with housing dilemmas.

American taxpayers bailed out the big banks. However, very little help is being made available to homeowners who are having housing problems. The banks and the mortgage industry, through predatory lending, roped consumers into ill-advised loans. Then complicated mortgage instruments were created, including bad loans now called toxic assets. Despite a collapse in the housing market, the banks want to collect inflated housing prices. They harass consumers who want to do short sales and are forcing thousands of families into foreclosure.

4. Food safety bill grants new authority to curb the contamination of food.

Congress passed the most comprehensive reform of the Food and Drug Administration’s food safety authority in 70 years. The new law provides the FDA with the authority to proactively help prevent food from becoming contaminated. It requires food companies to develop preventive controls; empowers the FDA to set standards for safe production of fruits and vegetables; mandates mandatory minimum inspection periods for food processing plants; improves food traceability systems; puts in place programs to assure that imported foods are as safe as domestic foods; and provides the FDA with authority to mandate food recalls.

5. Consumer financial agency is created.

As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress created the Consumer Financial Protection Bureau to guard against unfair, deceptive, and abusive practices when consumers take out a loan, use a credit card, or get a mortgage. The bureau will monitor the financial services market and write and enforce consumer protection rules.

6. Credit card reforms help consumers.

The Credit Card Accountability, Responsibility and Disclosure Act or CARD Act provides consumers with a number of new protections. Creditors are prohibited from: increasing interest rates on old charges in most cases; charging unjustifiably high penalty fees; assessing over-limit fees unless consumers choose to exceed their credit limit; and assessing interest charges on purchases that have already been paid off. Companies also must provide at least 45-days notice before making significant changes to card terms, mail monthly bills at least three weeks before payment is due, and apply payments first to the highest interest rate balance that is owed.

7. Tax cut compromise is unfortunate.

Now that corporate American has been bailed out and corporate executives are making big bucks again, the political right wants to cut the federal deficit. But cutting taxes for the rich isn’t how they want to go about it. They’re proposing to slash Medicare, stop unemployment payments, reduce Social Security benefits, and cut other social programs. These unfortunate proposals would hurt consumers already reeling from the 2008 economic collapse.

8. Corporate disregard for the environment continues.

The BP Gulf oil spill shows the lack of regard corporate America has for the environment. The diminishing of regulatory authority and the disregard for safety on oil rigs led to the worst oil spill in history. And spills of even larger amounts are common throughout the world. While a handful of environmental groups work to reverse these trends and the U.S. Environmental Protection Agency tries to regulate, corporate power wins again and again. Another example this year is the failure by Congress to pass reforms of toxic chemical laws. Legislation was proposed, but industry flexed its muscles. This comes at a time when more is being learned about the link between chemical exposure and cancer.

9. Retirement uncertainties continue for baby boomers.

On Jan. 1, 2011, the oldest baby boomers will turn 65. Every day for the next 19 years, about 10,000 more will cross that threshold. Among those baby boomers ages 50 to 61 who are approaching the end of their working years, six-in-10 say they may have to postpone retirement, according to Pew Research Center survey.

10. Another year at war brings more deaths and expenditures.

America’s foreign policy continues to drag the country into unfortunate wars. Now, the United States is involved in two at the same time. While the killing of civilians and our young men and women is wrong, the tremendous expenditures for war efforts affect domestic programs. We need to wind up these actions and concentrate on what consumers need here.

                  Copyright 2010, Rita R. Robison, Consumer Specialist

Top 12 holiday season scams

If you want to have a merry, merry holiday season, be sure to be on the lookout for scam artists.

Just because it’s the time of year for good cheer doesn’t mean that fraudsters are going to take a vacation from ripping off consumers.

Here are the 12 scams of Christmas as offered by the software security company McAfee.

1. “Help! I’ve been robbed” phony distress messages from “family members” or “friends.”

2. Fake gift cards promoted on social media.

Holiday job offers for “high-paying,” work-at-home schemes that ask for your personal information, including your Social Security number.

3. “Smishing,” SMS texts that appear to come from your bank or online retailer saying something is wrong with an account.

4. Suspicious holiday rentals that ask for down payments on properties by credit card or wire transfer.

5. Recession scams such as pay-in-advance offers where consumers pay a processing fee for a supposedly low-interest loan or credit card.

6. Fake greeting cards that load computer viruses onto your computer.

7. Low price traps such as auction sites and fake websites that offer too-good-to-be-true deals to get your money and personal information.

8. Fraudulent charities that ask you to donate.

9. Dangerous holiday downloads – such as screensavers, jingles, and animations – that spread viruses.

10. Free hotel and airport Wi-Fi, which thieves use to hack into networks.

11. E-mail banking scams in which scam artists trick consumers into giving their bank details by sending official-looking e-mails.

12. Password stealing scams where hackers get control of your computer and hijack files.

So happy holidays, and beware of the bad guys and gals interested in separating you from your money.

Copyright 2010, Rita R. Robison, Consumer Specialist