Consumer gouging cases settled

Tennessee settles gas station pricing complaints
The attorney general’s investigation began last fall after consumers complained that some gas stations unfairly raised gas prices after hurricanes shuttered Gulf Coast oil refineries and left several Southern states without enough gas.
Knoxville News Sentinel

South Dakota warns of fake lottery
A new e-mail come-on gives the appearance of having been sent by the South Dakota State Lottery. Consumers are told that they are the lucky recipient of a $500,000 cash drawing from the "South Dakota Web Lottery." But the e-mail doesn't come from the lottery and there is no web lottery.
Marshall County Journal

Illinois protection on gas utility service
Gov. Patrick Quinn has signed a law that regulates alternative natural gas suppliers' marketing to protect consumers from misleading advertising and excessive termination fees.
Crain's Chicago Business

Texans battle over homeowners' insurance
Saying Texas homeowners pay the highest insurance premiums in the nation, State Senate Democrats blocked action on a major insurance bill. They are seeking changes, including one that would require insurers to get prior approval from the state insurance commissioner before increasing rates. Currently, companies can raise rates simply by notifying the insurance department.
Dallas Morning News

You can get advice on how to buy homeowner's insurance from the CR Money Blog.

Consumers cope with disaster recovery

Tennessee tornado victims warned about repair ploys
Consumers who need repair work done quickly following a natural disaster are often targets of faulty construction work or price gouging, according to Tennessee consumer protection officials and the attorney general’s office. They urged victims of last week’s storms, which killed a mother and her baby and injured dozens, to check licenses and backgrounds of contractors before they commit to a project.
(Murfreesboro Post)

Alabama hit with flood damage
More than 100 roads were closed in Geneva County in Alabama as of the weekend. Hundreds of homes have been damaged by flood waters. And state officials warned businesses and homeowners to watch out for potential gougers.
(Dothan Eagle)

How to prepare for emergencies
You can get ready before a disaster strike: visit Consumer Report’s emergency guide
for advice advice about securing your home and protecting your family.

Consumers fighting back over debt

As the economy puts more people in financial trouble, debt collection tactics are getting a tougher look.  Here’s what’s happening around the country:

Debt collectors sued in Houston
Consumers are increasingly fighting back by suing those who use illegal tactics. In Houston, U.S. District Court statistics show lawsuits filed against debt collectors under a federal consumer protection law are up 60 percent in the first quarter of this year, compared to last year. (Houston Chronicle)

Consumers get help in Oregon
A blog from Oregon notes that a new state consumer law allows the state’s Attorney General to investigate debt collectors' methods and sue over use abusive practices. (The Oregonian)

Feds getting into the act
Michelle Singletary has a column on the Federal Trade Commission’s effort to change how companies collect past-due obligations. (Washington Post)

How to avoid financial traps
In March 2009, Consumer Reports provided advice about how you could sidestep some of the problems  posed by debt consolidation offers.

States list more top consumer complaints

North Carolina's hit list
Concerns about health care topped the list of consumer complaints to the North Carolina Attorney General's office in 2008.

A total of 4,202 state residents filed complaints about insurers, health-care providers, health products and services, the AG's office says. It was the fifth consecutive year that health care topped the list.

Other top consumer complaints: unwanted telemarketing calls, lenders, credit issues such as debt collectors and identity theft, car repair and towing services.
Charlotte Business Journal

Biggest complaints in Utah
The state's consumer agency reports that its top 10 complaint list for 2008 includes Internet offers, retail sales, home repair, coaching services, and alarm systems. 
Utah Division of Consumer Protection

NY State reclaims $14.2 million for consumers
The New York State Insurance Department says it has recovered $14.2 million for 3,164 consumers and health care providers from insurance companies between October 2008 and March 2009.

The cases included a dispute over health coverage for a premature baby who needed heart surgery and the claim of an 85-year-old grandmother who was the victim of a hit-and-run case.
NY State Insurance Department

How to get help
If you have a consumer complaint, here's advice on how to get satisfaction.
CR Money Adviser

Consumer action ramps up in states

Several states are tackling consumer protection issues this spring:

"No Call" list violations top Wisconsin consumer complaints, according to the state's officials.
Appleton Post-Crescent

Oregon lawmakers target chemicals in furniture, plastics, electronics and more.
The Oregonian

Minnesota proposal would allow property and casualty insurance products to be offered without prior state approval. MinnPost.com

Maryland considers boosting protection on consumer products.
Baltimore Sun

Michigan bill would let patients sue drug makers.
MLive.com

Industry study: Consumer bankruptcy filings up 41% from last year

Forty-one percent more consumers filed for bankruptcy in March 2009 than in March 2008, according to an analysis by a loan industry group.

Last month there were 121,413 consumers who filed for bankruptcy, the American Bankruptcy Institute said, noting that number is also a 24 percent jump from February.

“Given the great financial stress facing U.S. households today, the March numbers are consistent with our prediction of over 1.4 million consumer filings for 2009,” ABI Executive Director Samuel Gerdano said in a statement.

If you're worried about your personal finances, check with CR's Money team for advice on protecting yourself during the recession.

FTC offers financial help with new Web site

The Federal Trade Commission has launched Money Matters, a new Web site to help people struggling through the recession.

"Practicing positive, tried and true money management techniques – and learning how to recognize and avoid some 'ripped from the headlines' consumer scams and rip-offs – can help you weather tough economic times," the site tells visitors.

According to the announcement:

Money Matters offers short, practical tips, videos, and links to reliable resources for more information on topics like credit repair, debt collection, job-hunting and jobs scams, vehicle repossession, managing mortgage payments, and foreclosure rescue scams.

If you're looking for more tips on saving money and living in a tough economy, visit CR's Money Blog. 

Congressional hearings tackle consumer credit issues

More and more of us having trouble paying the bills--whether they're from the mortgage, credit cards, or car loans--and it doesn't look like there is a bailout in store for individual consumers. But all of our tough times being talked about in Washington.

Today two Congressional hearings tackled the problems consumers are having in this recession. A House subcommittee examined "Consumer Credit and Debt: The Role of the Federal Trade Commission in Protecting the Public,” while a Senate subcommittee took on “Abusive Credit Card Practices and Bankruptcy.”

The head of the FTC told the House Subcommittee on Commerce, Trade, and Consumer Protection that his agency is trying to protect regular folks, but it needs more funding and more authority.

"The agency has used its traditional consumer protection tools of law enforcement, broad-based research and policy development, and consumer and business outreach to provide important protections for consumers of financial services," FTC Chairman Jon Leibowitz said. "However, the Commission must do more. To enable the FTC to perform a greater and more effective role protecting consumers, it recommends changes in the law and resources to enhance its authority to promulgate needed rules, prosecute cases against law violators, and conduct critical research. If given more authority, the Commission certainly will use it to protect consumers."

The Senate hearing focused on one area of personal finance over which the FTC chief said his agency had very little authority: credit cards.

Senators on the Judiciary Subcommittee on Administrative Oversight and the Courts heard about how credit card companies--some of which have taken billion-dollar bailouts from the government--are treating their customers.

"The standard credit card agreement gives the lender the power to bleed their customer through evolving and ever more crafty trick and traps," Sen. Sheldon Whitehouse said. "Under this business model, the lender focuses on squeezing out as much revenue as possible in penalty rates and fees, pushing the customer closer and closer to the edge of bankruptcy."

Whitehouse is sponsoring legislation that would limit interest rates that credit card companies can charge consumers who are in bankruptcy proceedings.

The proposal would change bankruptcy laws to dissolve claims for repayment of debt carrying interest over a certain level, now 18.5 percent, according to the Associated Press. It could affect millions of dollars in claims made by credit card companies from consumers who have filed for bankruptcy protection.

Financial responsibility, the theme park ride

Now that we find our economy in shambles--with mountains of credit card debt, mortgages that can't be paid off, and a very low personal saving rate--many people have decided that we all need lessons in financial responsibility, particularly for younger generations.

Two unlikely bedfellows have volunteered to teach some of those lessons. The investment firm T. Rowe Price and entertainment giant Disney announced plans to open "The Great Piggy Bank Adventure" exhibit at Disney's Epcot Theme Park.

"This interactive exhibit will bring basic saving and investing concepts to life in a fun and captivating way," T. Rowe Price's news release said. "The experience will entertain and empower families, while encouraging them to engage in regular dialogue about the importance of saving and how to manage money responsibly."

The company says the exhibit will focus on "four key financial themes":

• setting goals
• saving and spending smartly
• staying ahead of inflation
• diversifying your investments

There's one more lesson about money the exhibit can teach kids: nothing is free. One day tickets for Walt Disney World sell for $75 for adults and $63 dollars for kids under 10, meaning a family of four would have to pay $276 just to get inside.

"The Great Piggy Bank Adventure" is scheduled to open this spring at INNOVENTIONS at Epcot at the Walt Disney World Resort in Florida.