CONSUMER NEWS & ALERTS, June 20, 2005

[Guest guest]

Consumer News & Alerts | June 20, 2005THE WEAKEST LINK It doesn't matter how short you cut your hair or how big an SUV your security director drives, it takes only one determined -- or negligent -- insider to thwart even the most elaborate security system. Such is the case in the last few mega-flubs involving consumer data, witnesseth: • Cardsystems Solutions Inc. Its payment-processing system was hacked and about 40 million credit card accounts jeopardized. Although the press has been beating it hard, this incident is not as serious as some others, as it involves only names and credit card account numbers, not address, birthdates, Social Security numbers and other information tailor-made for identity theft.• Trouble in Topeka When the Topeka Credit bureau shut down, employees simply walked away, leaving thousands and thousands of Experian consumer data records lying around for anyone to look at. Although the new owner of the office building wants to do the right thing, no one -- from Experian to the Federal Trade Commission -- has lifted a finger to help. See our exclusive report for the gruesome details. • BJ’S Wholesale Club Through sloppy handling, the chain exposed thousands of customer records to thieves who ran up millions of dollars in fraudulent charges.• Puddle Phishing: Online Fraud Goes Local It's not just the big guys who are the targets of online scam artists. They're now turning to local banks and credit unions for phishing expeditions. Translation: Any e-mail you receive from any bank, credit union, credit card issuer or PayPal that asks you to verify just about any kind of information is probably fraudulent and should be ignored. Poor Timing It was just a day or two before the Cardsystems story broke that Visa proudly announced its "new anti-fraud technology," said to be capable of stopping fraud "before it happens." Well, almost anyway.SPITZER VS. THE UNITED STATES A few weeks ago, we noted that business interests were targeting state attorneys general as enemies of the people. They've recruited some powerful assistance. The Office of the Comptroller of the Currency, the federal agency that regulates national banks, last week sued New York's feisty Eliot Spitzer charging that his probe of racial discrimination in mortgage lending impinged on federal turf. Spizer called the OCC's suit "unconscionable" and said he would not back off his investigation."Evidence already disclosed by the banks appears to show a significant racial disparity that could violate state civil rights laws, which my office is responsible for enforcing," Spitzer said. This was all happening around the time the Michael Jackson verdict was being revealed so, of course, it went largely unnoticed. First things first, after all.OVERDRAFT FEES OVERDONE A study finds that consumers are being relieved of as much as $22 billion per year in overdraft fees. The Consumer Federation of America study found that over 80 percent of the nation's largest banks charge consumers high overdraft fees without their permission. Consumers are only informed of these charges in the fine print of their account agreements, which can cause them to inadvertently overdraw their accounts when making an ATM or debit card transaction. Smaller banks have been mildly admonished by the FDIC. Big-bank regulators are on the sidelines so far.ROCKING AND ROLLING Oh, those quirky Californians. The Detroit Free Press Friday reported that after a series of earthquakes, many Californians were "stocking up on water, food, cash and even insurance." Even insurance? We don't see what's odd about that. The sharp tremors should send every California homeowner and renter rushing to check her or his insurance -- since earthquake damage is not, repeat not, covered by homeowners and rental policies. Fortunately, earthquake insurance is available and is a California commodity as essential as bottled water, a manual coffee bean grinder and fresh flashlight batteries. See our story for other preparedness tips. FORDS BELONG IN THE STREET Vehicles are recalled right and left to fix faulty windshield wipers, seat belts that may not fit snugly and taillight lenses that can melt. Meanwhile, our complaint bin fills up with reports from consumers whose Ford trucks old and new burst into flame while parked. Most of the fires we hear about occur in trucks that are parked outside. And why might that be? Well, a logical explanation is that when a truck that's parked in an attached garage bursts into flame, it burns down the house, likely killing its occupants, who then fail to file a complaint. That's what a lawsuit says happened in Iowa not long ago. We can't help but wonder how many others have suffered the same fate. Ford Not Liable in Crown Vic Fire A state trooper was killed when his patrol car burst into flames after being rear-ended -- exactly the scenario that police departments around the country say proves the Crown Vic Interceptor isn't safe. But a jury in Missouri found that it was the vehicle that slammed into the trooper's car that caused the explosion. It's a setback for similar suits pending on behalf of other police officers killed and maimed in rear-end accidents. -----advisory----- AN END TO QUIPS AND RANTS Many readers tell us they like the content of our newsletter but could do without our editor's interjections and interpolations. He has one answer to this; we have another -- The Daily Consumer. It's a short, even terse, bullet-point synopsis of the day's top developments affecting consumers, published each weekday afternoon. Sign up now to get yours. It's free and you can cancel anytime.-----advisory-----BETTER BEEF Consumers Union warns that earlier, more complete testing of beef cattle is needed to prevent the spread of mad cow disease, an invariably fatal disorder caused by eating meat from cattle infected with the disorder. CU is one of many organizations beefing about the U.S. Agriculture Department's slow pace in adopting more advanced testing procedures already widely used in Europe and Japan. This kind of talk offends cattlemen, who've been writing to us about it. Pardners, do you really think that using an outmoded test and hog-tying the press will restore our trading partners' confidence that their New York Strip won't kill them? Sipping Through Straw Reduces Cavity Risk A study finds that drinking sugar-laden sodas and juices is less harmful if you use a straw. The straw should be positioned towards the back of the mouth, researchers report. Not too far towards the back, though.Treadmill Workstation Coming Soon The Mayo Clinic is hard at work on a stand-up desk that, instead of a footrest, includes a treadmill. The idea is that you could lope along with composing e-mails, sorting spam and crunching numbers, thus fighting off fat without sweating too copiously. DADS TAKE NOTE OK, we missed Father's Day by a few hours but here are some timely Nanny 9-1-1 notes for dads (and moms): • Helmets On, Boys and Girls Powered scooters are very, very dangerous and probably belong in the crusher. There were more than 10,000 injuries in the latest year for which figures are available. Even worse, a study finds that just 4 in 10 of the kids killed, disabled for life or otherwise harmed were wearing helmets. • On Your Feet, Kids Technology has turned our kids into couch spuds while their caloric intake has stayed the same. Result: flab. A new study finds that kids need -- really, really need -- at least 60 minutes of daily physical activity. More is better. • Five Worst Summer Jobs Danger awaits many teens entering the summer job market. This year, landscaping jobs have been added to the list of those most likely to cause death or serious injury. Sure, it's good for kids to get a taste of the world of work but not at excessive risk of life and limb. • Tell Your Dad The next phase of Medicare's prescription assistance program starts in January 2006. Extra help is available to seniors with limited incomes -- but in many cases, it's not automatic and seniors should apply now to be included. If you have an aging dad or mom, make sure they know about this and be ready to help them apply. It's confusing. ASTRONOMERS FEAR PHONES Lovers of solitude aren't the only ones worried about the effects of allowing cell phone usage on the commercial airlines. Astronomers say the transmissions could hamper researchers using radio telescopes, including those seeking alien forms of life in the far-flung reaches of space. Of course, they could just pay close attention to the conversation in the next seat for clues to life in parallel universes.Cell Phone Safety Case Sprints Ahead A federal judge in Maryland has ruled that a class action complaint challenging the cell phone industry's failure to disclose safety issues relating to certain phones sold to consumers in Washington, D.C., and Maryland should be returned to D.C. Superior Court for trial. Basically, the suit charges the companies didn't tell consumers some phones emit a lot more radio-frequency energy than others. Air Fares Take Flight Northwest has given its fares a leg up and other major airlines, desperate for revenue, are adjusting their fares to match. How long this lasts is open to question but for now, many fares popular with business travelers are up. Well, we shouldn't say "fares popular with business travelers" but you get the drift. Airlines just can't resist trying to beat higher fares out of business travelers, a brilliant strategy that is a major factor in the success of Southwest, JetBlue and other low-fare carriers heavily patronized by business travelers. ALL TIRED OUT Another raging controversy involves aging tires. We reported last week that Ford and DaimlerChrysler had agreed that tires should be thrown out after six years, whether they're ever been on the ground or not. GM disagrees. So do the tire manufacturers, maybe. They've issued a rather rubbery statement that asks the government to decide. The tire manufacturers generously say they want to avoid "consumer confusion." Doesn't sound to us that it's consumers who are confused. VW Fined $1.1 Million for Clean Air Violations Ooops. Just as VW was readying its campaign for "clean-burning" diesels, the EPA slaps it with the largest civil fine ever assessed by the EPA. Problem: a defective oxygen sensor caused excessive ozone emissions in many 1999-2001 VW models.Gas Prices They're going up again. The average price of a gallon of regular unleaded gasoline was $2.13 last Tuesday, an increase of 2 cents from June 7. Several factors affect gas prices: crude oil prices, refining capacity and transportation issues. Crude prices are up lately, which hurts. Refining capacity in the U.S. is a long-standing problem; in a nutshell, it's inadequate. Crude oil storage capacity is also lacking in key areas. A California antitrust action has created a little relief on that front, opening up more crude oil storage and possibly easing future California price increases.SCAMS & OUTRAGES• Inhuman Growth Promoter Thanks to Florida's homestead protection laws, Creaghan A. Harry, doing business as Hitech Marketing, Scientific Life Nutrition, and Rejuvenation Health Corporation, gets to keep his $2.4 million estate while the consumers who fell for his pitch split a mere $485,000.• States Sue Promoter of Unapproved Drugs Heavily-advertised drugs aren't approved and "free trial" offers are misleading, suits charge. Otherwise, no problem.• Ford Pays $700,000 to Settle Charges Its Money Market Account Misled Investors The "money market" fund was actually unsecured Ford debt, the SEC charged.• North Carolina Shuts Down Modeling Scam Nearly every applicant was told they had "the look." RECALLS & SAFETY ALERTS • Ford Recalls Big Pickups and SUVs The diesel engine can stall without warning. • NHTSA Investigates Toyota Sienna Rear Seatbelts The webbing in the rear middle-row seatbelt can jam and cause excessive slack in the seatbelt assembly. • NHTSA Recalls Triumph Motorcycles The engine can seize suddenly. • Bright Starts Doorway Baby Jumpers The clamp that holds the jumper in place can break. • Wal-Mart Fun Frog Soft Gyms A wire can poke out and cause injuries. • Fisher-Price Power Wheels The plastic tire rim can break. • Razor Electric Scooters A weld can break, causing the handlebar to come off. • Razor PowMax Battery Chargers Sold with Razor Electric Scooters, Motorcycles and Go Karts They can overheat. • Shakespeare Children's Fishing Kits There's lead in the paint. • Jøtul Liquid Propane Stoves The glass door can shatter. NOT TO BE IGNORED We can't imagine anyone would ever do this, but just for the sake of argument let's say someone didn't pay their income tax. No, that would never happen. But just in case it does, the worst thing you can do is ignore the problem. It's like ignoring parking tickets, only a lot worse. Our Martin Bosworth reports that the IRS is, believe it or not, happy to help you get back on track if you are upfront, proactive and willing to start coughing up what's due. ABOUT THIS NEWSLETTER Consumer News & Alerts is published by ConsumerAffairs.Com Inc., which is solely responsible for its content. You are on the list either because you asked to be or because you filed a consumer report at our site. See removal instructions below. The editor is James R. Hood. You can reach him through our Contact Form. This is a private form exclusively for readers of our newsletter. DISCLAIMERS The information provided in this newsletter and on our Web site is for informational purposes only. It is not intended to replace or substitute for sound legal advice from a qualified attorney. Your use of this information constitutes acceptance of the Terms of Use. ConsumerAffairs.Com Inc., 1601 Cloverfield Blvd., 2nd Floor, South Tower, Santa Monica CA 90404 Copyright 2005 © ConsumerAffairs.Com Inc.