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.

Think sustainability for Mother’s Day this year

Mother’s Day is a holiday where food plays a central role as a token of appreciation or a gesture of love.

This Mother’s Day, Danielle Nierenberg and Ellen Gustafson, co-founders of the Food Tank, offer tips for how to create a better, more sustainable celebration:
 
1. Buy local.

Consider cooking your a mom meal at home instead of going out to a restaurant and trying to buy as many ingredients as possible from local farmers . 
 
A study by the Natural Resources Defense Council about the environmental impact of food transportation in California showed that importing food products into the state released nearly 250,000 tons of greenhouse gases. That’s the equivalent amount of pollution caused by about 40,000 vehicles. Also, shipping food from far away also means that it's not as fresh, or tasty, when it reaches consumers. 

Local Harvest has a search feature that allows consumers to find area farmers markets’ and farms in their communities.  
 
2. Dine responsibly.

If Mom wants to go out for dinner on her big day, do some research and find a restaurant that follow best practices for sustainability.

Use the The Green Restaurant Association’s search feature that allows diners to locate the most environmentally friendly places to eat. In addition, make sure to eat leftovers. The NRDC reports that consumers eating in restaurants leave an average of 17 percent of meals uneaten, and that more than half of that is thrown away. 

3. Learn something new.

Understanding why it’s important to eat locally and to support sustainable operations is vital. Documentaries such as Food, Inc., What’s on Your Plate, and Food Chains can provide great conversation topics for Mother’s Day dinner.
 
Also, these books are worth reading to learn more about food and agriculture: “Cooked” by Michael Pollan; “VB6: Eat Vegan Before 6:00 to Lose Weight and Restore Your Health . . . for Good” by Mark Bittman; “Bet the Farm: How Food Stopped Being Food” by Frederick Kaufman; “Foodopoly: The Battle Over the Future of Food and Farming in America” by Wenonah Hauter; “Behind the Kitchen Door” by Saru Jayaraman; “The Perfect Protein: The Fish Lover's Guide to Saving the Oceans and Feeding the World” by Andy Sharpless and Suzannah Evans; “Salt Sugar Fat: How the Food Giants Hooked Us” by Michael Moss; and “Full Planet, Empty Plates: The New Geopolitics of Food Scarcity” by Lester R. Brown.
 
4. Make a donation.

Instead of buying another gift for Mom that she doesn’t need, find an organization that supports a food- and agriculture-related issue and make a donation in her name.
 
About 17.2 million U.S. households didn’t have enough food to eat in 2010, according to the U.S. Department of Agriculture. In New York City, City Harvest collects food from restaurants, grocery stores, and other food businesses for donations, and also supports educational programs about nutrition in low-income communities. Oxfam America also has a gift section where you can donate a vegetable garden for a family in need.

5. Help out in the community.

The latest U.S. census report shows that 46.2 million people were living in poverty in 2011, and poverty is the leading cause of hunger. 
 
Share a meal with those less fortunate on Mother’s Day by lending a helping hand at a food bank or a soup kitchen. Food Pantries has a website to locate food pantries and soup kitchens in your area. Sharing a plot in a community garden is another great activity. For example, Chicago’s Green Network offers a map showing area community gardens and information on how to get involved. 
 
6. Buy fair trade.

Chocolate, fresh fruit, coffee, or flowers are often given as Mother’s Day presents. These are all items that can be purchased from fair trade producers. Fairtrade International helps support smaller producers and farmers who may have a difficult time covering their costs while remaining competitive in the global market. Fair Trade USA offers a global reach map that shows organizations involved in fair trade. 
 
Food Tank co-founder Ellen Gustafson recently launched the Apron Project. The first collection of aprons is handmade in Rwanda by Indego Africa, a nonprofit organization supporting women-owned businesses in Rwanda. It helps businesswomen build economic independence through access to markets and education.
 
7. Plant a garden.

Planting a vegetable garden at home is a fun Mother’s Day activity that will help make sure mom has fresh produce available throughout the summer.
 
It’s also a money saver. The National Gardening Association estimates that the average return on the investment of a home garden is $530. For the urban gardener with limited space, these tips from Inhabitat are a good place to start.

Happy Mother's Day. I hope the tips are helpful. I'll be thinking about my mom as I plant my garden this week.

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

Think nutritious, organic, locally grown food on World Health Day

Today is World Health Day

Its focus is on high blood pressure, one of the many chronic diseases that is increasingly common around the world.

One-third of adults worldwide have high blood pressure, and one in 10 adults worldwide have diabetes, reports the World Health Organization.

In the United States, high blood pressure affects 31 percent of American adults. However, the highest levels of hypertension now occur in many African countries, where more than 40 percent of adults are affected. Poor diets are among the most significant causes of high blood pressure.

The Food Tank: The Food Think Tank offers these strategies for creating healthier food and agriculture systems:

1. Eat more vegetables and fruits.

Less than one in three Americans meets the minimum goal of eating two servings of fruit and three servings of vegetables each day, as recommended by the U. S. Department of Agriculture.

2. Strengthen soil with intercropping, agroforestry, and cover crops.

Many essential nutrients come from the soil, making soil health critical to producing nutritious food. Intercropping with legumes, including alfalfa or peas, helps return nitrogen to the soil and support healthy plant growth. Using cover crops, which can be ploughed into fields after harvest and return nutrients to the soil, is another strategy that helps increase the amount of nutrients in food. Planting trees on farms – or agroforestry – can also help keep nutrients and water in the soil.

3. Know your nutrients.

Many don’t know that kale, sesame seeds, dried figs, salmon, and broccoli are excellent sources of calcium. Dark green, leafy vegetables are also rich in vitamin K, which is similar to vitamin D in the way it helps the human body make the most of the calcium in food. The Harvard School of Public Health website features a section called The Nutrition Source, which offers a list of topics on nutrients in foods and the benefits of different products, such as fish oil.

4. Support family farmers.

Small and medium scale family farms are more likely than big farms to produce nutrient rich crops, using practices that help keep nutrients in the soil. Family farmers also produce more nutrient dense foods, including fruits and vegetables.

5. Choose whole grains.

Whole grains are increasingly popular, but they still make up less than the recommended half of total grain use in the U.S. Whole grains are also valuable, low-cost sources of protein and fiber, and can help reduce the risk of heart disease, cancer, type-2 diabetes, and other diseases.

6. Eat out less.

The Natural Resources Defense Council reports that some American restaurants serve portions up to eight times those recommended by the USDA and U.S. Food and Drug Administration.

7. Buy and grow organic.

The London School of Hygiene and Tropical Medicine found that organic fruits and vegetables repeatedly had equal or greater nutrient content than the same conventional produce. The Environmental Working Group publishes a Shopper’s Guide assessing which fruits and vegetables have the most pesticides. In 2012, apples, celery, and sweet bell peppers were in the top three; however, onions, sweet corn, and pineapples were among the safest conventional foods to buy.

8. Choose grass-fed meat.

Lean meat can contain many valuable nutrients that support a healthy diet. Grass-fed meat usually has less fat than conventional corn- and grain-fed meat products.

9. Support indigenous, heritage, and heirloom food.

A study from the University of Texas, Austin found that the amount of nutrients in 43 different food crops have significantly decreased since 1950.

Copyright 2013, Rita R. Robison, Consumer Specialist

EPA proposes cleaner gas and car standards, aimed at slashing pollution and improving health

It’s troublesome that the auto, oil, and gas industries have been allowed to make products that for so many years have caused millions of illness and deaths from emissions.

But the good news is the U.S. Environmental Protection Agency announced Friday it’s proposing standards for cars and gas that will significantly reduce harmful pollution and prevent thousands of premature deaths and illnesses, while also improving the efficiency of the nation’s cars and trucks.

When adopted, the standards will help avoid up to 2,400 premature deaths a year and 23,000 cases of respiratory ailments in children, the EPA said.

The proposal will slash emissions of harmful pollutants that can cause premature death and respiratory illnesses, including reducing smog-forming volatile organic compounds and nitrogen oxides by 80 percent, establish a 70 percent tighter particulate matter standard, and reduce fuel vapor emissions to near zero, said EPA Acting Administrator Bob Perciasepe. 

The proposal will also reduce vehicle emissions of toxic air pollutants, such as benzene and 1,3-butadiene, by up to 40 percent.

The proposed standards support efforts by states to reduce harmful levels of smog and soot, he said.

By 2030, the EPA estimates that the proposed cleaner fuels and cars program will annually prevent up to 2,400 premature deaths, 23,000 cases of respiratory ailments in children, 3,200 hospital admissions and asthma-related emergency room visits, and 1.8 million lost school days, work days, and days when activities would be restricted due to air pollution.

Total health-related benefits in 2030 will be between $8 and $23 billion annually, Perciasepe said. 

The program would also reduce exposure to pollution near roads. More than 50 million people live, work, or go to school close to high-traffic roads, and the average American spends more than one hour traveling on roads each day.

To develop the proposal, the EPA met with representatives from auto, oil, and gas industries as well as environmental, consumer, and public health organizations. Based on feedback and a rulemaking process, EPA’s proposal is estimated to provide up to $7 in health benefits for every dollar spent to meet the standards.

The proposed sulfur standards will cost refineries less than 1 cent per gallon of gasoline on average when the standards are in place, according to the EPA. The proposed vehicle standards will have an average cost of about $130 per vehicle in 2025. The proposal also includes flexibilities for small businesses, including hardship provisions and additional lead time for compliance.

The proposed standards will reduce gasoline sulfur levels by more than 60 percent – down to 10 parts per million in 2017. Reducing sulfur in gas enables vehicle emission control technologies to perform more efficiently.  That means that vehicles built before the proposed standards will run cleaner on the new low-sulfur gas, Perciasepe said.

The proposed standards will work with California’s clean cars and fuels program and enable automakers to sell the same vehicles in all 50 states. The proposal is designed to be carried out over the same timeframe as the next phase of the EPA’s national program to reduce greenhouse gas emissions from cars and light trucks beginning in model year 2017.

After the proposal is published in the Federal Register, the public can comment on it, and the EPA will hold public hearings.

Copyright 2013, Rita R. Robison, Consumer Specialist

Six ways to be a better shopper

It’s National Consumer Protection Week.

Government agencies, consumer organizations, and advocacy groups are joining forces March 3 to 9 with shopping strategies and consumer tips to empower you to make better buying decisions and protect your rights in the marketplace.

Sales pitches and financial advice come at you from every direction – by phone, by mail, and every time you read an ad, go online, or turn on your TV.

Here are six tips from the USA.gov blog to help you sort through all the pitches:

• A free mobile app can help you check any product or vehicle, new or used, to see if it’s been recalled or has safety complaints. Keep up with recent recalls of things you may have around the house or check on that great thrift shop bargain before you buy. Use the Recalls.gov app and mobile site to search by product type and brand name

• When your wallet is lost or stolen, there are eight steps you need to take right away. A thief won’t waste time trying to cash in on your loss. Learn now so you’ll be ready to protect your identity and your credit as soon as your wallet goes missing.

• A new federal agency is working to eliminate deceptive and unfair lending practices. Established in 2010, the Consumer Financial Protection Bureau works to make sure providers of mortgages, credit cards, student loans, and banking services market their products honestly, clearly, and legally. Learn more about their work, and their simple tips for protecting yourself.

• Scammers see tough economic times as an opportunity. Job scams are abundant, as swindlers “guarantee” you an unadvertised job, try to get you to pay for their placement services, or tell you that you can get rich by working from home. Learn more about financial scams and saving money at the Federal Trade Commission’s Consumer.gov.

• There’s a formula for complaining effectively. If you’re not satisfied with a product or service, use the Consumer Action Handbook’s sample complaint letter to let the company know where they went wrong and how you want them to fix it. To get the free Handbook or its Spanish counterpart, la Guía del Consumidor, visit the consumer protection sections of USA.gov or GobiernoUSA.gov.

You can get consumer questions answered during a special National Consumer Protection Week online Q&A session.

USA.gov will connect you with government resources to answer your questions during a live event on Wednesday, March 6 from 2 p.m. to 3 p.m. EST. You can find out about the latest scams, how to protect your family from identity theft, and more. 

To participate, submit your questions during the event on Twitter using the hashtag #NCPW.

Copyright 2013, Rita R. Robison, Consumer Specialist

This week’s Best of Boomer Blogs features information on food, advertising, midlife humility, clutter, and the recession

Tom Sightings of Sightings Over Sixty is the host for this week’s The Best of Boomer Blogs #295.

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 February offering, boomer bloggers are writing about the best chef in Dubai, manipulative advertising, humility at midlife, a survey that shows more couples fight about a messy house than money, and boomers as worst hit by the Great Recession and its grim aftermath.

Boomers, born between 1946 and 1964, are leading corporations, serving as governmental officials, heading up non-profits, worrying about retirement, and experiencing layoffs at a higher rate than younger workers. They’re also reinventing themselves in trying economic times, with some looking for their dream jobs to keep them happy in retirement.

At each stage in their lives, boomers have changed things. They’re continuing to make America different as they begin entering into their retirement years.

 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, Life After Marriage, and Tao Flashes.

Be sure to stop by again next week to see what our baby boomer bloggers are writing about.

Copyright 2013, Rita R. Robison, Consumer Specialist

PepsiCo promises to take brominated vegetable oil out of Gatorade

PepsiCo announced this week it will remove brominated vegetable oil, a flame retardant, from its Gatorade drinks in response to customer concerns.

BVO keeps flavor oils in suspension, giving a cloudy appearance to citrus-flavored soft drinks such as Mountain Dew, Fanta Orange, and Gatorade. Safety questions have been hanging over BVO since 1970, when the U.S. Food and Drug Administration removed BVO from its "Generally Recognized as Safe" list of food ingredients, according to the Center for Science in the Public Interest. In 1970, the FDA permitted its use only an "interim" basis pending additional study – one of only four interim-allowed additives.

Health concerns start with the finding that eating BVO leaves residues in body fat and the fat in brain, liver, and other organs, according to a report on BVO on the center’s website. The report also states:

Animal studies indicate that BVO is transferred from mother's milk to the nursing infant and also can cause heart lesions, fatty changes in the liver, and impaired growth and behavioral development. Those studies suggest that BVO might be harmful to people who drink large amounts of soft drinks that contain BVO. And, doctors have identified bromine toxicity in two people who drank extremely large amounts of such sodas. Sensitive, modern studies are urgently needed to better understand the risk, especially at the lower levels typically consumed by large numbers of children.

Michael F. Jacobson, executive director for the center, said in a statement:

Brominated vegetable oil is a poorly tested and possibly dangerous food additive, and there's no reason to use it in Gatorade or other drinks. After all, safe substitutes are used in Europe and elsewhere. It's crazy that the Food and Drug Administration has let BVO linger in the food supply on an "interim" basis for 42 years…

I applaud PepsiCo for doing the responsible thing and voluntarily getting it out of Gatorade without waiting for government officials to require it to do so. That said, Gatorade without BVO is nutritionally no better than with it. A typical 20-ounce bottle has 130 calories, all from its 34 grams of refined sugars, which promote obesity, diabetes, and heart disease.

While it's good news that PepsiCo will remove BVO from Gatorade, it's disappointing that it's been allowed in food for 42 years. This is a definite failure by the FDA to protect consumers from harmful food additives.

Copyright 2013, Rita R. Robison, Consumer Specialist

This week’s Best of Boomer Blogs offers information on dementia, suicide, travel, sleeplessness, consumer issues, and food

Katie Foster of Arabian Tales and Other Amazing Adventures is the host for this week’s Best of Boomer Blogs #293.

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

For this installment, boomer bloggers are writing about staving off cognitive decline, suicide as a taboo topic, sleeplessness, President Obama’s support for consumer issues, travel, and Thai food.

In addition to my blog, other members of The Best of Boomer Blogs are: The Midlife Crisis Queen, Sightings From 60, Arabian Tales and Other Amazing Adventures, So Baby Boomer, Blue Blinds, and Life After Marriage.

Be sure to stop by again next week to see what our baby boomer bloggers are writing about.

Copyright 2013, Rita R. Robison, Consumer Specialist

New Coca-Cola advertising campaign on obesity not helpful in addressing nation’s weight crisis

The Center for Science in the Public Interest is critical of the approach Coca-Cola is taking in its new obesity ad. Executive Director Michael F. Jacobson said in a statement:

The soda industry is under siege, and for good reason. This new advertising campaign is just a damage control exercise, and not a meaningful contribution toward addressing obesity. What the industry is trying to do is forestall sensible policy approaches to reducing sugary drink consumption, including taxes, further exclusion from public facilities, and caps on serving sizes such as the measure proposed by [New York City] Mayor Bloomberg.

The center urges consumers to watch the video The Real Bears. Viewed by more than two million people, the video is a sometimes harrowing portrait of a polar bear family's struggle with obesity, diabetes, and other soda-related health problems.

"Manipulative marketing techniques position soda as a life-affirming source of happiness, when in fact out-of-control soda consumption is fueling an epidemic of disease," Jacobson said in another statement.

In addition to the video, The Real Bears web site has a fact sheet that calls attention to a number of what CSPI says are lies told by soda executives. For example, research has proven a direct relationship between consumption of sugary drinks and an increase in obesity, which promotes diabetes, heart disease, stroke, and many other health problems, he said. However, the soda industry refutes the connection.

Other information from the fact sheet:

• Each additional sugary drink consumed per day increases the likelihood of a child becoming obese by about 60 percent.

• Sugary drinks are connected to other health problems as well.

• Each soda consumed per day increases the risk of heart disease by 19 percent in men.

• Drinking one or two sugary drinks per day increases your risk for type 2 diabetes by 25 percent.

• Diabetes can lead to erectile dysfunction.

If you drink a lot of soda, be sure to take a look at The Real Bears video and webpage. It could improve your health and save your life.

Copyright 2013, Rita R. Robison, Consumer Specialist