Consumer Talk with Michael Finney Saturday, January 3, 2009

4:00pm--

Michael offers advices and takes some calls.

4:35pm—

GUEST: Linda Sherry, Director of National Priorities, Consumer
Action

TOPIC: Federal Reserve Credit Card Rules

OVERVIEW:  

Statement of Linda Sherry, Director of National Priorities, Consumer
>Action
>
>Today, the Federal Reserve will issue groundbreaking rules to address
>unfair and deceptive practices by the credit card industry. The rules
>contain unprecedented protections for cardholders.
>
>We anticipate that the Board will allow 18 months for implementation of
>the new regulations. This is a grave misstep in an otherwise stellar
>consumer-protection rulemaking.
>
>The U.S. is experiencing the worst economic conditions in decades.
>Unprecedented debt loads are crushing many families.
>
>The Board has given banks another year and a half to continue
>indiscriminate interest rate increases on consumers with historically
>high credit card balances. When they can least afford it, cardholders
>will be vulnerable to the piling on of unconscionably high finance
>charges. This may be the straw that breaks the camel's back.
>
>The credit card industry has wailed about how the new rules will
>exacerbate the credit crunch, eliminate low teaser rates and make it
>difficult for many people to access credit.
>
>Under the new rules, the card companies have not lost the ability to
>manage risk - they are still allowed to increase prices going forward or
>cut back on credit limits to reduce losses. Nothing in the rule changes
>this.
>
>Consumer Action is pleased that the Fed has taken this step to provide
>substantive protections to cardholders. Now, we urge Congress to fill in
>the blanks and pass strong laws next year that will protect cardholders
>from universal default (raising rates for reasons unrelated to the
>account), excessive and unreasonable fees, and "any time any reason"
>changes in terms that leave cardholders in a constant state of financial
>insecurity.

5:05PM—

GUEST: Jerry Flanagan, www.ConsumerWatchdog.org

TOPIC: Congressional Budget Office Predicts Medicare Public Buy-In Would Lead to Higher Insured Rates and Lower Costs

OVERVIEW:

> Santa Monica, CA -- A detailed report issued by the Congressional 
> Budget
> Office comparing health care reform options found that a plan to allow
> Americans to buy into Medicare before turning 65 would lead to more
> people with health coverage and lower costs than private insurance
> coverage.
>

Download the CBO report here: http://www.cbo.gov/doc.cfm?index=9925

> The CBO studied a limited Medicare buy-in option for those between 62
> and 64 years old.  The CBO estimates that the annual premium for 
> single coverage in 2011 would be about $7,600 including drug coverage.  In comparison, a private insurance policy premium for a 64-year-old can easily cost $12,000-$16,000 a year not including copays and deductibles and after excluding coverage for those with even minor health problems. In 2006, Medicare spent about $10,200 on average per beneficiary, which currently includes an older and sicker population than that envisioned by the buy-in program.[1]

> "The report emphasizes an important point for policy makers to keep in
> mind as they grapple with fixing our nation's health care: Medicare
> provides more affordable coverage because it eliminates the waste and
> profiteering of the private market," said Jerry Flanagan of Consumer
> Watchdog. "Polls show that seniors are also happier with their coverage than those of us with private insurance policies because they have better access to health care."

> The CBO report did find that the Medicare buy-in program would lead to higher than expected Social Security payments because, due to the
> program, more Americans over 62 would retire earlier than without the
> program.  Consumer Watchdog said those expenditures, which the CBO found would be "minimal" over the long term, could be erased if the program were expanded to allow any American to buy-in to Medicare regardless of age.

5:40 PM--

GUEST: Rick Lopes, Contractor State License Board www.cslb.com

TOPIC: Investigators believe consumers and businesses are victims of a maintenance and installation company

OVERVIEW:

SACRAMENTO - The Contractors State License Board (CSLB) is joining the
Tulare County Fire Department and Tulare County District Attorney's
Office in warning consumers and businesses across California to be on
alert for anyone coming to their offices, stores or restaurants to
service their fire extinguishers, to perform service on the hood and
duct systems over cooking areas, or to conduct maintenance on automatic
sprinkler systems. 

Investigators believe that representatives of "American Fire Protection"
(CSLB License #726110) have been using high-pressure sales tactics and
deceptive methods to convince business owners to buy their service.
These methods include:

*         Wearing uniforms with patches similar to those worn by fire
department staff, giving the impression that they are from the fire
department.

*         Claiming they are fire marshals and authorized to close the
business if not allowed to do an inspection of the fire protection
systems and make subsequent repairs.

*         Claiming they are there to service fire extinguishers or hood
and duct systems prior to the date those devices are to be serviced.

*         Claiming they are at a business to provide service on
extinguishers or hood duct systems that have previously been serviced by
another company.

In many cases, when hired by the business owner, they will do
sub-standard work without proper building code inspections.
Investigators believe that American Fire Protection, which is based in
Camarillo (Ventura County), operates throughout California, from the San
Francisco Bay Area to Sacramento in the north, through the central
valley counties of Tulare, Kings, Fresno, Madera, Merced and Mariposa,
the San Luis Obispo coastal area and into Santa Barbara, Ventura, Los
Angeles, Orange and other Southern California regions.

A Tulare County Superior Court judge has granted a temporary restraining
order, restricting company Chief Executive Officer Danny Victor
Williams, Anthony David Ash and Ken Gordon Speck from:

*         Impersonating governmental fire protection officials to gain
admission to places of business; falsely representing that they have
serviced fire protection equipment and placing inspection tags on
equipment that has not been properly inspected and serviced; and

*         Making untrue and misleading statements in connection with the
sale or attempted sale of fire equipment contracting services.

The Tulare County District Attorney's Office is also seeking a
Preliminary Injunction, as part of a civil suit filed to stop the
company from engaging in "unlawful business practices," under Business
and Professions Code 17200 and 17500. 

"We're extremely concerned for anyone who's been pressured into using
this company's services over the past four years," said CSLB Registrar
Steve Sands.  "Their shoddy work has put human lives in danger, and the likelihood that property will be destroyed should fire break out."

Anyone who has contracted with "American Fire Protection" is urged to
either contact the Tulare County Fire Department Fire Prevention
Division at (559) 747-8233, or the Tulare County District Attorney's
Office at (559) 624-1054.

6:05PM—

GUEST: Steve Abernathy, CEO, www.Squaretrade.com

TOPIC: What happens to the warranty when retailers go out of business?

OVERVIEW:

With big retailers like Circuit City expected to close after the holidays, your viewers may be interested to know what happens to their extended warranty on consumer electronics, should they need to make a claim...

6:25PM—

GUEST: Trevor Traina, Founder www.DriverSide.com

TOPIC: Offer Tips on Extending Car's Life

OVERVIEW:

New car sales are at an all time low. Car manufacturers are seeing
sales drop 30% and Detroit is pleading Congress for help. Car financing
is out of reach for most.

What does this mean for consumers? It means older cars are staying on
the road. The average car age is 9.2 years, and that will rise
significantly in the coming year. With new cars not an option for most,
consumers must focus on the cars they own and ensure they stay on the
road. What can drivers do?

6:40PM—

GUEST: Therese Borchard, blogger at “Beyond Blue”- her work appears on the website, www.Beliefnet.com

TOPIC: 5 tips for KEEPING those New Year's Resolutions

OVERVIEW:

1. Bribe yourself.

A so-called parenting expert that I read last week claimed that bribing

your kid to get him to do something was an example of irresponsible and

ineffective parenting. I suspect that the same man sits in his quiet and

tidy little office cranking out advice like that while either his wife

or nanny is home changing diapers and doling out time-outs. Let's face

it. Bribing is one of the most effective tools to get anyone--your kid,

your stubborn mother, your golden retriever, or yourself--to do

something.

My running coach used this brilliant method to train me to run 18 miles.

Before our run, he hid Jolly Ranchers along our route, every two miles,

so he'd say to me when I wanted to stop, "In another half-mile, you get

a treat! Come, you can do it!" And like a rat spotting a half-eaten

hotdog, I'd run to the candy. You want to make sure you stick to your

resolution? Bribe yourself along the road there: at the one-forth mark,

one-half mark, and three-quarters mark.

2. Team up.

Think of the buddy system from Boy Scouts. Teaming up with someone means

that you have to be accountable. You have to report to someone. Which

brings down your percentage of cheating by 60 percent, or something like

that. Especially if you're a people-pleaser like me. You want to be

good, and get an A, so make sure someone is passing out such reviews.

Also, there is power in numbers, which is why the pairing system is used

in many different capacities today: in the workplace, to insure quality

control and promote better morale; in twelve-step groups to foster

support and mentorship; in exercise programs to get your butt outside on

a dark, wintry morning when you'd rather enjoy coffee and sweet rolls

with your walking partner.

3. Throw in a gimme.

This is to ensure on December 31 of next year, you will have succeeded

at one goal. So make it an easy one: "Throw out my Christmas sweater

with a sequenced reindeer," "Pitch my golf-ball socks with two huge

holes in the toes," "Give away my Yanni CDs," "Frame the family photo I

had taken two summers ago." You see where I'm going with this one? Heck,

if you list a bunch of gimmes, then you'll feel even better about

yourself come next December.

4. Allow some backtracking.

I think most of us say "to hell with it," around the third week in

January because it takes that long for the brain to realize it is going

to need a motherload of discipline to keep the resolution, and our goal

isn't so newish and cool anymore. Like last May, when I decided to eat

according to the "Skinny Bitch" diet. I consumed hummus and celery for

three weeks straight, feeling fantastic every time I fastened my loose

jeans. Then I got really stick of hummus and celery ... so sick of them

that I still can't eat them to this day.

We need to go in to our resolution knowing that we are very likely going

to mess up in a few weeks, or maybe days, and that's okay, because for

every two steps backwards we make another half-step forward.

Technically, then, we can categorize it as "progress." Moreover, if we

lose our black and white thinking, and adjust our vision to see more

colors-- situations and events in which we can't just eat celery and

hummus-- then we'll be able to hang onto to our resolutions until

February, and maybe even June!

5. Wear some resolution bling.

Let me explain this one. It has something to do with my

obsessive-compulsive self, and being raised by a lot of nuns who held a

lot of rosaries and holy water and other faith objects. I need

reminders--ideally 234 of them--to refresh me on goals, promises, and

prayers I promised myself or recited in the morning with my coffee. And

because tattoos are expensive and well, permanent, I go with jewelry,

medals, and beads I can hang on to.

So, for example, my resolution this year is to worry less and trust God

more, especially financially: to be a little more relaxed, in general,

and to try to let the big guy upstairs deal with it before I take it

from him, throwing a hissy fit. This is essentially the Serenity Prayer:

to accept the things I can't change, and to know the difference between

the things that I can't change and the things I can. So I wear a

serenity prayer bracelet, each bead symbolizing part of the prayer. My

key chain holds a large cross with the serenity prayer engraved on it,

and it makes a jingling sound as I drive, to remind me that the

pea-brained fellow in front of me who won't let me around him is one

thing I can't change.