The Survive and Thrive Boomer Guide

Facts and figures for Mother’s Day this year

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

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

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

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

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

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

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

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

How many mothers

4.1 million

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

53%

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

81%

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

2,449

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

20%

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

89.7%

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

Recent births

3.954 million

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

25.4

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

29.2%

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

Jacob and Sophia

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

Stay-at-home moms

5 million

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

Employed moms

62.1%

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

Single moms

10.3 million

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

5.9 million

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

36%

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

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

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

Copyright 2013, Rita R. Robison, Consumer Specialist

Attorney general charges two big banks are violating terms of mortgage settlement

New York Attorney General Eric T. Schneiderman plans to sue Bank of America and Wells Fargo for repeatedly violating the terms of the National Mortgage Settlement.

Signed in 2012, the settlement requires the nation’s five largest banks to improve their customer service practices by complying with new mortgage rules called servicing standards. Among these are four requirements spelling out the timeline for banks to process mortgage modification applications.

Violations documented

Schneiderman’s office has documented 339 violations of those standards by Wells Fargo and Bank of America since October 2012.

In response to complaints from New York homeowners put at risk by these banks’ violations of the standards, Schneiderman sent a letter to the agencies that oversee the settlement informing them that he intends to sue Wells Fargo and Bank of America.

Terms of the settlement

Last year, Schneiderman joined 48 states, the U.S. Department of Justice, and the five largest mortgage servicers in negotiating the settlement. The agreement includes $25 billion for 49 states and requires consumer relief, such as mortgage modifications for at-risk homeowners, which could include lower-interest rates and principal reductions.

The settlement also includes 304 “servicing standards,” which participating servicers are required to follow and are intended to make it easier for homeowners to seek loan modifications. The servicing standards were included in the settlement to address long-standing complaints from consumers and advocates that servicers agreeing to the settlement – Ally Financial/GMAC, JP Morgan Chase, Citibank, Bank of America, and Wells Fargo – often failed to provide fair and timely services to their customers.

The servicing standards include: a prohibition against dual tracking, the practice of negotiating a loan modification with a borrower while at the same pursuing foreclosure; a requirement that every customer requesting assistance be assigned a single point of contact; and requirements that set out the timeline in which the servicers must respond to customers who are actively seeking loan modifications.

Settlement enforcement

The settlement agreement also provides that any party to the settlement may bring an enforcement action in U.S. District Court for the District of Columbia following a 21-day notice to the Monitoring Committee set up to enforce the agreement.

During the 21-day notification period, the committee may choose to pursue legal action on behalf of the party using the committee’s own authority under the settlement, or they can defer action. If the committee defers, then the complaining party may pursue the legal claim on its own after waiting an additional 21 days.

On Friday, Schneiderman sent a letter to the monitor and to each member of the Monitoring Committee notifying them of his intention to bring a legal claim if the committee doesn’t act. The letter includes written complaints against Bank of America and Wells Fargo and back up documentation showing the severity of the violations.

The Neighborhood Economic Development Advocacy Project, New York Communities for Change, Center for New York City Neighborhoods, Empire Justice Center, Faith NY, South Brooklyn Legal Services, housing counseling agencies, and legal services organizations assisted Schneiderman office in documenting violations by the banks.

Many of the organizations are grantees of the Attorney General’s Homeowner Protection Program, or HOPP, a three year, $60 million effort to fund housing counselors and legal services providers to help homeowners avoid foreclosure.

Attorney General Schneiderman’s letter to the Monitoring Committee can be found at www.ag.ny.gov/pdfs/Letter%20to%20Monitoring%20Committee%20NYS%20AG%205%206%2013.pdf.

Copyright 2013, Rita R. Robison, Consumer Specialist

Recall of the Week: Target Giada De Laurentiis lasagna pans due to laceration hazard

Target Corp. is recalling about 148,700 Giada De Laurentiis ceramic 9 by 13 inch lasagna pans.

The pan can break causing sharp edges and posing a laceration hazard, Target and the U.S. Consumer Product Safety Commission said.

Target has received 39 reports of the pan or its handles breaking or cracking during normal use, with cuts and lacerations occurring in six of those cases.

The recall involves Giada De Laurentiis-branded ceramic lasagna pans. The cream-colored pans are 9 by 13 inches in size, and they were sold individually and as part of a six-piece set.  The bottom of the pan is stamped “Giada de Laurentiis for Target.”

Manufactured in China, the pans were imported by Wilton Industries Inc. and Target Corp. The pans were sold in Target stores nationwide and on Target.com from January 2009 through October 2012 for about $22 for individual pans and between $35 and $50 for the six-piece sets.

Consumers should immediately stop using the recalled lasagna pans and return them to any Target store for a full refund, Target and the commission advise. Consumers who purchased the pan as part of the six-piece set should return the lasagna pan only.

For details, call Target at 800-440-0680 from 7 a.m. to 8 p.m. CT Monday through Friday, or visit www.target.com, click on Product Recalls at the bottom of the page, and then select Home & Kitchen. 

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

Copyright 2013, Rita R. Robison, Consumer Specialist

Get rid of old, unwanted prescription drugs at today’s Take-Back Day

Today is National Prescription Drug Take-Back Day from 10 a.m. to 2 p.m.

This is a great opportunity to safely dispose of unwanted, unused prescription drugs.

In the five previous Take-Back events, the U.S. Drug Enforcement Administration and state, local, and tribal law enforcement partners have collected more than two million pounds of prescription medications, removing them from circulation.

The National Prescription Drug Take-Back Day offers a safe, convenient, and responsible way to dispose of these drugs, while also educating the general public about the potential for abuse of these medications.

Getting rid of these drugs is important so they are kept away from toddlers, who could accidentally inject them, and teens and young adults, who could abuse them.

Click here to locate a collection site near you.

There is no charge to participate and the drop-off is anonymous.

You can also call the DEA’s Call Center at 800-882-9539 if you need assistance.

For details about National Take-Back Day, visit http://www.deadiversion.usdoj.gov/index.html.

Copyright 2013, Rita R. Robison, Consumer Specialist

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

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

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

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

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

The loans generally have three features:

• They’re small-dollar amounts.

• Borrowers must repay them quickly.

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

Key findings

Payday and deposit advance loans can become debt traps for consumers

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

Loose Lending

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

Risky loan structures

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

High costs

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

Continued use

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

Bureau action

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

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

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

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

Copyright 2013, Rita R. Robison, Consumer Specialist

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

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

'Debt management' company charged

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

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

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

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

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

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


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

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

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

Consumer credit counseling

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

Money management classes

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

Copyright 2013, Rita R. Robison, Consumer Specialist

After Boston: Make sure you’re prepared for emergencies

If you’re looking for something positive to do after the Boston Marathon tragedy yesterday, you can make sure you and your family are ready for emergencies.

Baby boomers, age 49 to 67, can look over this list and see what actions are needed. Do you have:

• An emergency plan?

• Emergency equipment including a battery-operated radio and emergency supplies for your car?

• Medical insurance?

• Ways to retrieve financial information?

• A will?

• A living will?

Consumers often put off being ready for emergencies, although we never know when they’ll occur.

It’s best to be prepared.

See my article “Boston Tragedy Reminds Us to Be Ready for Emergencies” for resources to help you get ready for emergencies.

Copyright 2013, Rita R. Robison, Consumer Specialist

Happy Tax Day, April 15

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

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

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

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

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

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

Copyright 2013, Rita R. Robison, Consumer Specialist

Manda Packing Co. recalls 468,000 pounds of cooked meat, poultry, and deli products due to possible bacterial contamination

Manda Packing Co. is expanding its recall to include about 468,000 pounds of roast beef, ham, turkey breast, tasso pork, ham shanks, hog head cheese, corned beef, and pastrami due to possible contamination with Listeria monocytogenes, the U.S. Department of Agriculture’s Food Safety and Inspection Service announced Friday.

The recall involves products from the company’s Baker, La., facility with sell dates between May 13 and July 2, 2013. Click here for a list of the products, the “sell by” dates, and the establishment number inside the USDA mark of inspection.

The products may have been sliced at retail delis, and if so won’t have this packaging information.

The products were shipped for further distribution, for sale to stores, and for sale to delis in Alabama, Arkansas, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, South Carolina, Tennessee, and Texas.

If consumers purchased one of the recalled products, they can return it to the place it was purchased for a full refund.

The FSIS was alerted to the problem by the Tennessee Department of Agriculture, who collected a sample of cooked roast beef at a retail store on April 5, 2013, which later was found to be positive for Listeria monocytogenes.

The recall is being expanded because more samples from additional production dates have tested positive for Listeria monocytogenes.

The FSIS and the company have received no reports of illnesses associated with eating these products.

Copyright 2013, Rita R. Robison, Consumer Specialist

Watch out for tax scams as Tax Day approaches

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Copyright 2013, Rita R. Robison, Consumer Specialist