FTC Offers Tips on Making the Most of Your Auto Warranty

Source: Federal Trade Commission

Can a dealer void your car’s warranty if you have someone else do routine maintenance on the vehicle?  The answer is no, and the Federal Trade Commission wants to make sure consumers know it.

Under federal law, it is illegal for manufacturers or dealers to refuse to honor a warranty or to deny coverage simply because someone other than the dealer did work on the car.  And dealers must be able to demonstrate that improper repair caused the damage that they refuse to cover.

The FTC, the nation’s consumer protection agency, offers these and other tips for American consumers to help them make smart decisions and get the most out of their auto warranties.  For example, if an independent mechanic improperly replaced a belt and the engine is damaged as a result, a manufacturer or dealer may only deny responsibility for fixing the engine under the warranty after demonstrating that the improper belt replacement – rather than some other defect – caused the engine damage.  However, the warranty would still be in effect for other parts of the car.

The same is true of ‘aftermarket’ parts made by a company other than the vehicle manufacturer or the original equipment manufacturer:  The manufacturer may not deny warranty coverage unless it can show that the aftermarket equipment caused the need for repairs.
Other tips from the FTC include:

• Read the warranty that came with the car, or check the “Owners” section of the manufacturer’s website.
• Be aware of when the warranty period ends, and get any problems that arise checked out beforehand.
• Service the car at regular intervals, following the manufacturer’s recommended service schedule.
• Keep all service records and receipts, regardless of who performs the service.  This includes oil changes, tire rotations, belt replacement, new brake pads, and inspections.  These receipts can be used to prove that the vehicle was properly maintained.
• Complain if you believe yourwarranty claim has been denied unfairly.  Speak to a supervisor at the dealership, then go to the manufacturer or another dealer.  Consider filing a complaint with the state Attorney General, local consumer protection office, local Better Business Bureau, or the FTC.

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP ( 1-877-382-4357 ); TTY: 1-866-653-4261 . Watch a new video, How to File a Complaint, atftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad.

Bankruptcy Filings Up 20 Percent in June

Source: US Courts

Bankruptcy filings rose 20 percent in the 12-month period ending June 30, 2010, according to statistics released today by the Administrative Office of the U.S. Courts. A total of 1,572,597 bankruptcy cases were filed in federal courts in that period, compared to 1,306,315 bankruptcy cases filed in the 12-month period ending June 30, 2009. This is the highest number of bankruptcy filings for any period since many of the provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 took effect.

Read more.

FTC Report on Scholarship Fraud

Source: Federal Trade Commission

Federal Agencies Release Annual Report to Congress on Scholarship Fraud

The Federal Trade Commission, the Department of Justice, and the Department of Education have issued their annual report to Congress pursuant to the College Scholarship Fraud Prevention Act, describing their continued efforts to combat scholarship and financial aid fraud.  Each year, millions of students seek help in financing their college education, and some fall prey to scholarship and financial aid scams that “guarantee” money for college in exchange for a fee.

This report provides an update of the agencies’ activities to prevent and prosecute financial aid fraud, including the FTC’s law enforcement efforts and the agency’s consumer education campaign to help students, parents, educators, and financial aid administrators identify and avoid financial aid scams.  An analysis of consumer complaints about financial aid fraud shows that:

• complaints have remained fairly constant during the past decade
• compared to all of the other types of complaints registered with the FTC, the percentage of financial aid fraud complaints has decreased over time
• the nature of financial aid fraud has shifted from scholarship search services to financial aid consulting services.

Read report.

FTC Alert on Oil Spill Scams

Source: Federal Trade Commission

FTC Urges Consumers to Watch Out for Scams Related to Gulf Oil Spill

As the nation follows news of the oil spill in the Gulf of Mexico, so do scammers. The Federal Trade Commission issued an alert urging consumers and businesses to watch out for con artists trying to take advantage of the oil spill in the gulf and to report their experiences to federal and state authorities.

In a new consumer alert, FTC Warns of Oil Spill Scams, the agency said scammers will likely use e-mails, websites, door-to-door collections, flyers, mailings and telephone calls to solicit money by claiming they’re raising money for environmental causes or offering fraudulent services related to the oil spill. In reality, many could be trying to get inside consumers’ homes or get access to their personal information. The consumer alert advises consumers to check with the Better Business Bureau to get information on businesses and charities, and offers tips on how to avoid these scams.

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Financial Fraud Enforcement Task Force Launches StopFraud.gov

Source: Department of Justice

President Obama’s Financial Fraud Enforcement Task Force today announced the launch of StopFraud.gov. StopFraud.gov is a one-stop shop for the American people to learn how to protect themselves from fraud and to report it wherever - and however - it occurs. It will also serve as a hub of information about the task force’s work.

LifeLock Settles FTC Suit

Source: FTC

LifeLock Will Pay $12 Million to Settle Charges by the FTC and 35 States That Identity Theft Prevention and Data Security Claims Were False

LifeLock, Inc. has agreed to pay $11 million to the Federal Trade Commission and $1 million to a group of 35 state attorneys general to settle charges that the company used false claims to promote its identity theft protection services, which it widely advertised by displaying the CEO’s Social Security number on the side of a truck.

In one of the largest FTC-state coordinated settlements on record, LifeLock and its principals will be barred from making deceptive claims and required to take more stringent measures to safeguard the personal information they collect from customers.

Read more.

Bankruptcy Filings Up in 2009

Source: U.S. Courts News Release

Bankruptcy Filings Up In Calendar Year 2009

March 2, 2010 — Bankruptcy filings in the federal courts rose 31.9 percent in calendar year 2009, according to data released today by the Administrative Office of the U.S. Courts. The number of bankruptcies filed in the twelve-month period ending December 31, 2009, totaled 1,473,675, up from 1,117,641 bankruptcies filed in CY 2008.

Read more.

New DOT Site for Aviation Complaints

Source: DOT

DOT Unveils Improved Aviation Consumer and Enforcement Website

            Air travelers will find it easier to file complaints with the U.S. Department of Transportation (DOT) about airline service, compare the historical on-time and baggage mishandling records of airlines, and find helpful tips about air travel thanks to a redesigned, more user-friendly aviation consumer web site unveiled today by the Department.  The web site can be found at http://airconsumer.dot.gov .

            “This updated web site is part of our ongoing effort to improve resources for consumers and ensure that airline passengers are treated fairly when they fly,”
U.S. Transportation Secretary Ray LaHood said.  “We want to make it as easy as possible for consumers to find the information they need to make their air travel experience as smooth and hassle-free as possible.”

            The improved site contains useful information about the Department’s complaint handling system for consumers who experience air travel service problems, including a web form that consumers can use to file a complaint with DOT about airline service.

            The site also offers guidance regarding aviation rules and statutes, advice concerning airlines that have stopped operating or filed for bankruptcy protection, and travel tips and publications related to air travel, such as the Air Travel Consumer Report, Fly-Rights and the annual report on disability-related air travel complaints.

            It also features easy-to-navigate links to all of the Department’s information for air travelers, as well as links to other agency web sites with useful material for air travelers.  The public will also find it easier to obtain enforcement orders, rules and guidance pertaining to a wide array of subjects such as baggage, fare advertising, refunds, overbooking, disability and flight delays.

The website is also available in Spanish. An individual can access the Spanish website from the English site by simply clicking the word “Spanish” on the homepage.

“It is important that the growing number of Spanish speakers in our nation and flying on U.S. airlines have access to information about their rights as air travelers,” said Secretary LaHood.

FTC Issues Report of 2009 Top Consumer Complaints

Source: FTC Release: 2/24/2010

The Federal Trade Commission today released a report listing top complaints consumers filed with the agency in 2009. It shows that while identity theft remains the top complaint category, identity theft complaints declined 5 percentage points from 2008.

The FTC is releasing a new animated video showing how people can file a complaint, and offers examples of what complaints the FTC handles. To watch the video, visithttp://ftc.gov/multimedia/video/scam-watch/file-a-complaint.shtm (also available in Spanish athttp://ftc.gov/multimedia/video/scam-watch/file-a-complaint_es.shtm).

The report breaks out complaint data on a state-by-state basis and also contains data about the 50 metropolitan areas reporting the highest per capita incidence of fraud and other complaints. In addition, the 50 metropolitan areas reporting the highest incidence of identity theft are noted.

The top complaints were:

A complete list of complaints can be found at: http://www.ftc.gov/sentinel/reports/sentinel-annual-reports/sentinel-cy2009.pdf

See also Consumer Sentinel Network Fact Book (101 pages; PDF) Numerous details, tables, and charts. Statistics everywhere. Essential for consumer collections. Legal collections might also want to have a copy.

Excise Tax Deduction on New Vehicle Sales

IRS Issue Number:    IRS Tax Tip 2010-26

Eight Facts about the New Vehicle Sales and Excise Tax Deduction

If you bought a new vehicle in 2009, you may be entitled to a special tax deduction for the sales and excise taxes on your purchase.

Here are eight important facts the Internal Revenue Service wants you to know about this deduction:

1. State and local sales and excise taxes paid on up to $49,500 of the purchase price of each qualifying vehicle are deductible.

2. Qualified motor vehicles generally include new cars, light trucks, motor homes and motorcycles.

3. To qualify for the deduction, the new cars, light trucks and motorcycles must weigh 8,500 pounds or less. New motor homes are not subject to the weight limit.

4. Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010.

5. Purchases made in states without a sales tax — such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon — may also qualify for the deduction. Taxpayers in these states may be entitled to deduct other qualifying fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee.

6. This deduction can be taken regardless of whether the buyers itemize their deductions or choose the standard deduction. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.

7. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

8. Taxpayers who do not itemize must complete Schedule L, Standard Deduction for Certain Filers to claim the deduction.

For more information about these rules and other eligibility requirements visit IRS.gov/recovery.

Store Brands Provide Considerable Savings

The following is from a recent Nielson Report

Within food, drug and mass-merchandisers (including Walmart), Nielsen reports that the price gap between store brands and manufacturer brands is considerable—especially for non-edible departments such as health & beauty and general merchandise where gaps ranged from 74% and 63% respectively. Food departments have a smaller percentage gap—store brand prices in the deli department were 22% lower than branded and up to 50% lower in the dairy department. Since the same period in 2006, price gaps have widened in four of seven departments (deli, frozen foods, dry grocery, dairy, non-food, general merchandise, health & beauty).

Read more. The Lowest Price Is Not Always the Best Price | Nielsen Wire

Savings From Using Public Transit Increases

This study from the American Public Transportation Association bases the savings on the full cost of owning an auto, not the marginal cost.

Riding Public Transit Saves Individuals $9,242 Annually  

Transit riders now save $600 more per year compared to last year at this time as the cost of gas has increased nearly $1 per gallon

Washington, DC – Individuals who ride public transportation can save on average $9,242 annually based on the January 11, 2010 national average gas price and the national unreserved monthly parking rate.  Compared to last year at this time, the average cost per gallon of gas was $1.79 which is nearly $1 less than the current price of gas at $2.75 per gallon.  This increase in cost equates to an additional $600 in savings per year for transit commuters as compared to last year’s savings amount at this same time.

“The Transit Savings Report” released monthly by the American Public Transportation Association (APTA) calculates the average annual and monthly savings for public transit users.  The report examines how an individual in a two-person household can save money by taking public transportation and living with one less car.

Read more.

Luxury Goods Make You Selfish or The More You Have, The More You Want

The Devil Wears Prada? Effects of Exposure to Luxury Goods on Cognition and Decision Making

Published:
November 25, 2009

Paper Released:
November 2009

Authors:
Roy Y.J. Chua and Xi Zou

Executive Summary:

Gandhi once wrote that "a certain degree of physical harmony and comfort is necessary, but above a certain level it becomes a hindrance instead of a help." This observation raises interesting questions for psychologists regarding the effects of luxury. What psychological consequences do luxury goods have on people? In this paper, the authors argue that luxury goods can activate the concept of self-interest and affect subsequent cognition. The argument involves two key premises: Luxury is intrinsically linked to self-interest, and exposure to luxury can activate related mental representations affecting cognition and decision-making. Two experiments showed that exposure to luxury led people to think more about themselves than others. Key concepts include:

• Luxury does not necessarily induce people to be "nasty" toward others but rather causes them to be less concerned about or considerate toward others.
• Experiment 1 showed that when primed with luxury, people are more likely to endorse self-interested business decisions (profit maximization), even at the expense of others.
• Experiment 2 further demonstrated that exposure to luxury is likely to activate self-interest but not the tendency to harm others.
• Exposure to luxury goods may activate a social norm that it is appropriate to pursue interests beyond a basic comfort level, even at the expense of others. It may be this activated social norm that affects people's judgment and decision-making.
• Alternatively, exposure to luxury may directly increase people's personal desire, causing them to focus on their own benefits such as prioritizing profits over social responsibilities.

Read more.

Riding Public Transit Saves Individuals $9,190 Annually

Please note that the savings calculated by the APTA includes the cost of ownership and operations.

Yearly Transit Savings over $250 Higher Than This Time Last Year

WASHINGTON, DC – Individuals who ride public transportation can save on average $9,190 annually based on the November 9, 2009 national average gas price and the national unreserved monthly parking rate.  Over the last year, an individual riding public transportation would have saved an additional $255 due to the 41 cent increase of gasoline per gallon since November 2008.

Read more.

2010 Annual Fuel Economy Guide Now Available

WASHINGTON, DC – The U.S. Environmental Protection Agency and the Department of Energy today unveiled the 2010 Fuel Economy Guide, which gives consumers important information about estimated fuel costs and mileage standards for model year 2010 vehicles.

Read more.

2010 Annual Fuel Economy Guide Now Available

Source: U.S. Department of Energy

The U.S. Environmental Protection Agency and the Department of Energy today unveiled the 2010 Fuel Economy Guide, which gives consumers important information about estimated fuel costs and mileage standards for model year 2010 vehicles.
…
Fuel-efficient models come in all types and sizes, so consumers can save thousands of dollars over a vehicle’s lifetime without sacrificing performance. Model year 2010 fuel economy leaders include a wide range of hybrid models, from compact cars to sport-utility vehicles.

Each vehicle listing in the Fuel Economy Guide provides an estimated annual fuel cost. The estimate is calculated based on the vehicle’s miles per gallon (mpg) rating and national estimates for annual mileage and fuel prices. The online version of the guide allows consumers to input their local gasoline prices and typical driving habits to receive a personalized fuel cost estimate.

Read report.

Riding Public Transit Saves Individuals $9,062 Annually

This is the conclusion in a recent study published by the American Public Transportation Association. The study uses car costs published by AAA. However, the dramatic savings result from including both the variable and fixed cost of car ownership. It assumes the family can survive with one less car.

See report.

Forced Arbitration Is Ubiquitous, New Public Citizen Study Finds

Public Citizen is highly critical of industries that impose contractual obligations forcing consumers into binding arbitration. They contend that arbitrators often favor businesses over consumers.

Read more.

Top 10 Consumer Complaints

The list was complied by the National Association of Attorneys General:

1. Debt Collection
2. Auto Sales
3. Home Repair/Construction
4. Credit Cards (tie)
5. Internet Goods and Services (tie)
6. Predatory Lending/Mortgages
7. Telemarketing/Do-Not-Call
8. Auto Repair
9. Auto Warranties (tie)
10. Telecom/Slamming/Cramming (tie)

Read more.

Top 10 Vehicles Bought With Clunker Trade-ins

Global Investor lists the top ten vehicles purchased by people trade in clunkers. The Toyota Corolla tops the list.

See Top 10 list.