Obama meets with credit card executives, promises reform

President Barack Obama called his Thursday meeting with top executives from the nation's largest credit card companies "constructive," and then he said he would do what he could to change the way those companies do business.

"We had a discussion with some of the top issuers here, and what I communicated to them is that I think credit cards are an important convenience for a lot of people ... so we want to preserve the credit card market," Obama said. "But we also want to do so in a way that eliminates some of the abuses and some of the problems that a lot of people are familiar with--people finding themselves starting off with a low rate and the next thing they know their interest rates have doubled; fees that they didn't know about that are suddenly tacked on to their bills; a whole lack of clarity and transparency in terms of the terms and conditions of their credit cards."

The White House will work with leaders in Congress who have already introduced credit card reform legislation, the president said. On Wednesday a House committee approved a bill that would limit credit card rates and fees. A Senate committee approved similar legislation a few weeks before.

Obama set out four points which his administration would work to change:

1. "I think that there has to be strong and reliable protections for consumers -- protections that ban unfair rate increases and forbid abusive fees and penalties.  The days of any time, any reason rate hikes and late fee traps have to end."
2. "All the forms and statements that credit card companies send out have to be written in plain language and be in plain sight.  No more fine print, no more confusing terms and conditions.  We want clarity and transparency from here on out."
3. "We have to make sure that people can comparison shop when it comes to credit cards without being afraid that they're going to be taken advantage of.  So we believe that it's important to require firms to make all their contract terms easily accessible online in a fashion that allows people to shop for the best deal for their needs."
4. "We think we need more accountability in the system.  And that means more effective oversight and more effective enforcement so that people who are issuing credit cards but violate law, they will feel the full weight of the law."

Learn more from Consumer Reports about credit card rates that jump overnight.

And, learn the dark secrets of debit cards.

Consumer Reports Morning Update

Good Thursday morning. Here are the top stories our editors are keeping an eye on today. Check back with ConsumerReports.org throughout the day for updates and analysis on these topics and many more.

White House Pushing Credit Card Companies:

President Obama, who is said to support efforts by Congress to pass new credit card regulations, is scheduled to meet today with the heads of major credit card companies to discuss lending practices. "The president believes new rules of the road for the credit card industry are needed and he looks forward to having an open and productive conversation tomorrow with the representatives of the credit card industry," White House senior adviser Valerie Jarrett said Wednesday in a written statement. (ABC News)

Obama and some congressional leaders are particularly focused on what they consider to be abusive and deceptive practices that squeeze people into paying much higher fees or interest rates than anticipated. Both the House and Senate are considering a credit card "bill of rights" to limit the ability of credit-card companies to raise interest rates on existing balances and to require greater disclosure. (Associated Press)

Have you had a bad experience with your credit card company? Share your story with Consumers Union.

Consumer Lending Program Struggles:

In its first two months, the government's signature initiative to support consumer lending has fallen well short of expectations, deploying only a fraction of the amount officials had hoped to extend to stimulate auto loans, student loans and credit card lending. The slow rollout of the program has frustrated staff at government agencies working on the effort and diminished hopes that they could engineer a rapid return to healthy lending levels, according to interviews with government and industry sources. (Washington Post)

Housing Crisis Keeps Americans Where They Are:

The housing crisis has dramatically eroded Americans' ability to move, driving the custom of relocating for better opportunities to its lowest level since the Census Bureau began tracking it in 1948, data released Wednesday show. About 35.2 million people moved from 2007 to 2008, about 3.5 million fewer people than the previous year. The moving rate dropped to 11.9% of Americans from 13.2%, the Census Bureau reported. (USA Today)

Falling home prices are starting to ignite bidding wars in a few parts of the U.S. as first-time buyers compete with investors for the same foreclosed properties. In most of the nation, the supply of unsold homes continues to swamp demand. Home prices in many markets continue to fall, and foreclosures, which slowed in late 2008 as mortgage companies delayed taking action against delinquent borrowers, are picking up again. (Wall Street Journal)

Good Economic News Of The Day: Apple Outperforms

Shrugging off a bad economy, Apple Inc. on Wednesday reported a 15.2% jump in profit and an 8.6% uptick in revenue for its first quarter, juiced by sales of its iPhones and iPods. "Apple continues to surprise," said Hudson Square Research analyst Daniel Ernst, who noted that consumer jitters about job losses and lower housing values did not prevent them from buying millions of the relatively pricey iPod Touches, which sell for $229 to $399 depending on the capacity of the disk drive. (Los Angeles Times)

In the market for a new MP3 gadget? Check out the Consumer Reports guide to digital music players.

Earth Day: Even more tips on going green to save some green

As we recognize Earth Day, the Consumer Reports blogs are offering some tips for you to be both environmentally conscious and budget friendly.

As President Barack Obama said in his Earth Day proclamation, protecting the environment and the economy are closely related:

The story of the United States is inextricably tied to our vital natural resources. As we enter a new era filled with challenges and promise, we must protect our land, wildlife, water and air--the resources that have fueled our growth and prosperity as a Nation and enriched our lives. Doing this not only fulfills a sacred obligation to our children and grandchildren, but also provides an opportunity to stimulate economic growth.

Here are some more hints from Consumer Reports.

From the Cars Blog:

• Making greener automotive choices
• Future panel says electric cars are inevitable

From the Electronics Blog:

• 7 ways to a greener computer
• Don’t trash that digital camera!

From the Home & Garden Blog:

• Looking back at 20-plus years of greenwashing

From the Money Blog:

• 7 ways to help the environment

From the ShopSmart Tip Sheet:

• Earth Day freebies
• Shop and save the planet

Check out more Consumer Reports Earth Day tips here.

Consumer Reports Morning Update

Good Wednesday morning and happy Earth Day. Here are the top stories our editors are keeping an eye on today. Check back with ConsumerReports.org throughout the day for updates and analysis on these topics and many more.

Obama Steps Into Credit Card Negotiations:

Credit card CEOs thought they had it bad: The economy has crashed, the credit market is tight and customers are stressed. Now add to that list of woes a White House bent on reforming the industry — by shutting down some of the industry’s most lucrative, and controversial, practices. On Thursday, 14 CEOs of credit card divisions of major banks will be summoned to a White House meeting that reportedly will include President Barack Obama, Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers. They are expected to demand that the credit card issuers do something to lower interest rates for vulnerable borrowers and increase disclosure of rates and what they mean. (Politico)

Looking For Solutions On Earth Day:

The Interior Department will announce new rules today that clear the way for the first offshore wind turbines to be erected along the Atlantic Coast. The rules will set long-awaited guidelines for offshore leases, easements and royalty payments that the Bush administration worked on for years but did not complete. The guidelines represent the most aggressive move yet from an administration that hopes to shift the nation's offshore energy supply from oil to wind power. (Los Angeles Times)

With Americans looking to reduce their "carbon footprints," food seems an obvious place to start. Choosing a diet with a smaller carbon footprint means choosing foods that are processed in ways that emit less carbon dioxide — a heat-trapping "greenhouse" gas — into the atmosphere. (USA Today)

Want to know how to go green and save some green? The Consumer Reports Blogs have some Earth Day tips.

Crib Safety In The Spotlight:

Toys "R" Us Inc., the big toy retailer, has stopped ordering drop-side cribs because of safety concerns, the company's Chairman and Chief Executive Jerry Storch said Tuesday. The move comes as federal regulators are planning to launch Wednesday a push to set stronger standards for cribs following a series of recalls. Concerns about the safety of popular crib designs have led to 21 recalls of 4.2 million cribs over the past two years because of hazardous defects. (Wall Street Journal)

Check the Consumer Reports Babies & Kids Blog for more news and advice for your family.

A Bit Of Good Economic News:

While much of the rest of the country remains mired in the depressing gray of recession, this rural town of fewer than 3,500 people on the Georgia-Alabama border, about 80 miles southwest of Atlanta, has somehow managed to draw the winning ticket in the nation’s economic lottery. A new Kia Motors Corporation automobile manufacturing plant is opening here this year, an event that many residents of this former mill town, where life had slowly been ebbing away, can only describe as heaven-sent. (New York Times)

Earth Day: More tips on going green to save some green

Here are a few more Earth Day tips from the Consumer Reports blogs on how to be environmentally friendly and to save a little cash.

From the Heath Blog: 5 ways to save on organic food

From the Home & Garden Blog: Consider exchanging your gas lawn mower for an electric model

From the Cars Blog: 48-mpg Kia Soul Hybrid

From the Cars Blog: Pricing on the 2010 Toyota Prius

Check out more Consumer Reports Earth Day tips here.

Sebelius clears HHS confirmation hurdle

The Senate Finance Committee voted to send the nomination of Kathleen Sebelius as health and human services secretary to the full Senate.

The nomination process for Sebelius, the Kansas governor whom President Barack Obama chose in February, has hit some snags over her stance on abortion rights and tax troubles.

According to an Associated Press report:

The committee vote came after several Republicans voiced concerns in recent days about Sebelius' ties to Dr. George Tiller, a late-term abortion doctor who is under investigation by the Kansas medical board.

The GOP also questioned her commitment to ensuring that the government doesn't try to interfere with the doctor-patient relationship.

"I believe in the right of every American to choose the doctor, the hospital, the health plan of his or her choice," Sen. Jon Kyl, R-Ariz., said before the vote. But he contended that Sebelius had displayed "insufficient commitment to these principles."

Sebelius had offered assurances that she believed it was the job of doctors, not the government, to prescribe care. That wasn't enough for some GOP lawmakers worried that the Obama administration's plans to overhaul the nation's costly health care system could move the country toward a government-operated health care system.

Sebelius is the White House's second pick to lead the Department of Health and Human Services. Former Sen. Tom Daschle withdrew his name in February after tax issues arose.

States give consumers more protection

Iowa moves ahead on consumer rights bill
Iowa would join every other state in allowing consumers to individually sue companies for fraud under the state consumer protection law. But the bill is criticized for too many exemptions: insurance companies, banks, lawyers, cable TV providers, doctors, veterinarians and architects.The governor still must sign the measure.
Des Moines Register

Now, how do you pay for college?
The Illinois state treasurer is trying to recoup money parents had invested in a state-sponsored college savings program. One investment option lost $85 million last year.
CBS 2 Chicago

New Jersey plan would require greater notice on debt
A bill in the New Jersey General Assembly would require debt collection agencies in the state to provide debtors with additional information about their accounts, a copy of the Fair Debt Collection Practices Act and would increase fines per violation to at least $10,000.
InsideARM

Consumer Reports Morning Update

Good Tuesday morning. Here are the top stories our editors are keeping an eye on today. Check back with ConsumerReports.org throughout the day for updates and analysis on these topics and many more.

20 Criminal Probes Already Looking At Bank Bailouts:

In the first major disclosure of corruption in the $750-billion financial bailout program, federal investigators said Monday they have opened 20 criminal probes into possible securities fraud, tax violations, insider trading and other crimes. The cases represent only the first wave of investigations, and the total fraud could ultimately reach into the tens of billions of dollars, according to Neil Barofsky, the special inspector general overseeing the bailout program. (Los Angeles Times)

Government Lost About $900 Million On Citi:

The U.S. Treasury estimated $900 million in losses as of the end of last year on $301 billion in Citigroup Inc. assets that the government is guaranteeing, according to a new audit report. The Treasury, the Federal Reserve and the Federal Deposit Insurance Corp. have agreed to share in losses on the assets as part of $50 billion that Citigroup has received so far under the Troubled Asset Relief Program, the $700 billion bank rescue effort enacted last year. (Bloomberg)

Drive As I Say, Not As I Drive:

Most motorists in the USA — 78% — call aggressive driving a serious concern yet nearly half admit speeding on major highways in the past 30 days, according to a survey and analysis of research made public today by the AAA Foundation for Traffic Safety. (USA Today)

Did Chrysler Turn Down Loan Over Executive Pay Caps?

Top officials at Chrysler Financial turned away a government loan because executives didn't want to abide by new federal limits on pay, according to new findings by a federal watchdog agency. The government had offered a $750 million loan earlier this month as part of its efforts to prop up the ailing auto industry, including Chrysler, which is racing to avoid bankruptcy. Chrysler Financial officials denied in a statement that the company's executives had refused to accept new limits on their pay, adding that the firm turned down the loan because it no longer needed it. (Washington Post)

Measuring The Car Market By Commercials:

The 2nd Street Tunnel in Los Angeles is probably the most recognizable city landmark most Americans have never heard of. The tunnel has achieved its obscure fame for the number of car commercials shot there. But the light has gone out of the tunnel of late. According to FilmL.A., the nonprofit organization that coordinates on-location shooting in the city, no permits have been issued in 2009 for car commercials. (Los Angeles Times)

For much more on the auto industry, check the Consumer Reports Cars Blog.

Earth Day Is For Everyone:

Environmental activists no longer have a monopoly on April 22. Events this week show that Earth Day is attracting a broad and growing fan base that includes music lovers who flocked Sunday to the National Mall in Washington, D.C., and college students, community gardeners, moviegoers, corporate executives and others. (USA Today)

Finding New Power In Waste:

Scientists at Virginia Tech are experimenting with technology that would convert what you might call an abundant resource here in the Shenandoah Valley into energy. Using a process called pyrolysis, the device super-heats chicken droppings to transform them into three products: an oil that can be used for heating, a slow-release fertilizer and a gas that the researchers hope will one day be recycled to power the machine. (Washington Post)

The Economics Of Your Morning Cup Of Coffee:

The high-end specialty coffee industry isn't immune to the effects of a recession, but many companies are still doing well. Portland Roasting had a slow holiday season, but business is picking up, said owner Mark Stell. "February was a great month for us," he said. "People don't leave coffee ... They just get it differently." (CNN)

Which coffee got the best rating from Consumer Reports? Our subscribers can find out here.

Earth Day: Going green to save some green

As Earth Day approaches, the Consumer Reports blogs are taking a look at how you can save some money while saving the planet.

We'll post more tips in the coming days, but here are some ideas to get started:

Cars Blog:

• Weight reduction is key to Ford’s green car goals
• Can diesels save money and oil?

Home & Garden Blog:

• Your clunker of an appliance could someday be worth cash
• Do the Kill a Watt or Watts Up devices save you money?

Electronics Blog:

• How green is that gadget?
• LG recharges my phone with the sun

ShopSmart Tip Sheet:

• Return your empty cosmetic cases to Origins
• Buying a greener TV

Also check out Consumer Reports special Greener Choices section.

Kellogg settles FTC charges that cereal ads were deceptive

Breakfast cereal maker Kellogg will settle with the Federal Trade Commission over charges that its ads for Frosted Mini-Wheats were misleading, the FTC announced Monday.

Ads for Frosted Mini-Wheats said that kids' attentiveness improved by 20 percent after eating the cereal, but the government disagreed.

According to the FTC:

The complaint alleges that, in fact, according to the clinical study referred to in Kellogg’s advertising, only about half the children who ate Frosted Mini-Wheats for breakfast showed any improvement in attentiveness, and only about one in nine improved by 20 percent or more.

The complaint also challenges the claim, made in a different television ad, that a breakfast of Frosted Mini-Wheats was clinically shown to improve children’s attentiveness by nearly 20 percent when compared to children who ate no breakfast. In fact, the study showed that the children who ate the cereal for breakfast averaged just under 11 percent better in attentiveness, by comparison, and that relatively few were nearly 20 percent more attentive. Based on the clinical study results, the complaint alleges that both of the challenged claims are false and violate the FTC Act.

The proposed settlement would prevent Kellogg from making similar claims in the future, the FTC said.

“We tell consumers that they should deal with trusted national brands,” said Chairman Jon Leibowitz. “So it’s especially important that America’s leading companies are more ‘attentive’ to the truthfulness of their ads and don’t exaggerate the results of tests or research. In the future, the Commission will certainly be more attentive to national advertisers.”

Kellogg responded with a statement: "We stand behind the validity of our clinical study yet have adjusted our communication to incorporate FTC's guidance."

The latest cereal ratings from Consumer Reports put Frosted Mini-Wheats in the "GOOD: Room for improvement in sugars and/or fiber; high in or a good source of iron" category. (Ratings are available to subscribers.)

CR's look at breakfast cereals found that some child-focused products are as much as 50 percent sugar.