April 07, 2009

Lessons from one family's encounter with a forclosure rescue scam

While the government announced yesterday that it is cracking down on mortgage and foreclosure fraud, Consumer Reports tackled to the problem in the March issue and gave some advice on how to protect yourself and your home.

In the video on the right, meet Kari and Roger Mizer, first-time homeowners who faced foreclosure on their home in 2007 after the monthly payment on their adjustable-rate mortgage hit $1,850.

The Mizers found hope when they received a letter from a mortgage-restructuring firm that claimed to have a 95.5 percent success rate in stopping foreclosures, but it turned out to be a scam. (Read more of the Mizer's story here.)

To keep from getting into a similar situation yourself, Consumer Reports advises you to avoid some common traps:

  • Watch out for unsolicited offers
  • Be wary of demands for up front fees
  • Stay away from any service that advises you to stop contact with your lender
  • Stay away from any service that asks you to transfer title of your home

Here's what you should do to deal with the threat of foreclosure:

Anyone anticipating problems making mortgage payments should seek legitimate free or low-cost help as soon as possible. Contact a housing counseling agency certified by the Department of Housing and Urban Development (www.hud.gov/foreclosure or 800-569- 4287). Their agents can assess options and advise you in negotiating with the lender. Advice is also available at the Homeowner's Hope Hotline, at 888-995-4673 (see box below). Another good source of help is the Institute for Foreclosure Legal Assistance, www.foreclosurelegalassistance.org, which funds and trains groups nationwide that give subsidized legal representation to families facing foreclosure.

— James Klatell

The results of our toilet paper tests can save you $130 per year

Last week we showed you how Consumer Reports tests toilet paper, and a lot of you asked what the results of those tests were.

Here is your answer: The Consumer Reports toilet paper ratings are online now.

Just one highlight from the report:

At just 12 to 15 cents per 100 sheets, CR Best Buys Kirkland Signature (Costco) and White Cloud (Walmart) cost roughly half what we paid for three pricey performers from Quilted Northern, Charmin, and Cottonelle. That can add up to roughly $130 per year for a family of three.

Click here to read the rest of the toilet paper ratings.


— James Klatell

March 30, 2009

Why is GM better off than Chrysler? White House points to Consumer Reports ratings

As President Barack Obama announced today, his administration believes that General Motors can restructure and be successful, but the president said Chrysler needs a partner to survive.

If you're wondering what, in the White House's opinion, separates the two companies' pursuits of success, there are several answers.

Chrysler is a smaller company, while GM has "a much more substantial collection of assets," a senior administration official told reporters on a conference call this weekend.

Here's one measure the government's auto task force used to determine the value of those assets that Mike Allen of the Politico called the "Consumer Reports Factor."

"If you look at things like Consumer Reports' ranking of cars, you'll see very great differences between those two companies," the White House official said. "Chrysler has zero cars, no cars that are recommended by Consumer Reports."

That administration official was correct, no Chrysler, Dodge, or Jeep models are recommended by Consumer Reports.

To be Consumer Reports recommended, a vehicle must have performed well in CR's tests, have average or better reliability, and, if crash-tested, provide good overall safety. This safety rating is a composite of accident avoidance from our testing and crash protection, based on insurance-industry and government crash tests. (Watch our videos about how CR tests cars.)

But CR's car experts did find some bright spots for Chrysler. In our Report Card for Detroit, Chrysler got this assessment:

Chrysler needs to give its model line a major overhaul and raise its reliability, interiors, fuel economy, and overall refinement up to the level of its styling.

That might have begun. Our initial impressions of the redesigned 2009 Dodge Ram pickup we're testing are mostly positive, and the ride is markedly improved. Newer Chrysler models, such as the Dodge Journey and Ram, have higher-quality interiors.

On the other hand, several recent GM models have performed well in Consumer Reports testing and have average or better predicted reliability.

The Chevrolet Avalanche was a Consumer Reports Top Pick in the pickup truck category, and other models fare well in their classes.

However, just 17 percent of the GM models tested meet the criteria to be recommended.

By contrast, 70 percent of models from Ford, Detroit's least endangered car company, are recommended by Consumer Reports.

The Report Card's look at GM's future:

GM needs to maintain the overall performance and quality it has shown in its newer models while developing a stronger line of small vehicles and raising its reliability to a more consistently high level.

The company is developing more efficient gasoline engines, using direct injection and turbocharging to help achieve a better balance of power and fuel economy. Its more fuel-efficient two-mode hybrid technology is expected to be available on more models. And it's investing heavily in electric powertrains, such as that in the forthcoming Chevrolet Volt, and in fuel-cell technology.

GM's next generation of small cars, including the Chevrolet Cruze, looks promising. And the company is active in developing interactive traffic-safety systems, wireless service checks, and other advanced applications.

If you're looking for the best makes from domestic companies, our 2009 list of American top picks is here.

Visit the Consumer Reports Cars page for all of our testing results, recommendations, and buying advice.


— James Klatell

March 23, 2009

Some Consumer Reports history

One of the hundreds of dedicated folks who test, write, edit, and produce for Consumer Reports forwarded this video clip to all of us this morning, and you should see it, too.

It's a 1960 film produced for Consumers Union, our publisher, showing what was happening inside the Consumer Reports test labs.


The video is old and a bit grainy, but the mission is the same as it is today: to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves.

For a more timely take on what we're doing here at Consumer Reports, visit our video page.


— James Klatell

March 17, 2009

Happening in Washington: CR gives your prescriptions a workout

CR Best Buy Drugs For Less Consumer Reports is launching a public campaign in support of comparative effectiveness research to urge policy makers to get behind the effort to provide doctors and patients with independent comparisons of different treatments for medical conditions.

We've set up an interactive display in Washington's Union Station today to get the word out.

That's our booth to the right, where  we're running some medications through a bit of vigorous testing.

(Click for a larger photo.)

If you're in the nation's capital, stop by and pick up a copy of our latest publication, Best Drugs for Less.

If you can't make it in person, you can learn about Best Drugs for Less online.

Best Drugs for Less provides unbiased, independent evaluations to help people choose medicines that are safe, effective, and affordable.  The magazine aims to help patients and doctors in cutting through the clutter of drug advertising so they can make informed decisions about their medications.

Get started with your own comparative research by checking out our list of 10 ways to reduce your drug costs.



— James Klatell

March 12, 2009

Happening in Washington: Consumer Assembly 2009

The Consumer Federation of America is hosting its annual Consumer Assembly today and tomorrow in Washington.

Consumer Assembly 2009 is focusing on consumer needs during a period of financial crisis, economic recession, and political change.

Representatives from Consumer Reports and our publisher, Consumers Union, will be among the many attendees from non-profits, government, and media.

Marc Perton, the executive editor of ConsumerReports.org, is on hand for a panel about blogs and consumers. He'll also be reporting on what's happening.

We'll post updates here as we get them. You can also follow our notes about the conference on Twitter. The Consumer Reporter tweets at @CReporter, and @marcperton will be live-tweeting throughout the day.


— James Klatell

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