The Consumer Information Center draws on a variety of sources to bring you useful consumer news, tips and advice.
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October 1999 - Fall is a great time for camping, the weather is crisp and the leaves are starting to turn color. An important aspect to camping is safety-not just the gear you bring and where you hike, but also making sure the food you bring is safe and will not make you ill.
Here are some tips from the USDA's Meat and Poultry Hotline to help you keep your food safe while camping this fall.
-
Plan ahead. Know what you are going to eat and how you are going to cook it before your trip.
- If car camping or boating, use a cooler for "cold foods"-perishable
foods such as luncheon meats, cooked chicken, and potato or pasta salads.
- If you are hiking or backpacking, pack foods in the frozen state
with a cold source. Keep raw foods separate from prepared foods.
Never bring meat or poultry without a cold source to keep them safe.
- If you are hiking or backpacking, pack foods in the frozen state
with a cold source. Keep raw foods separate from prepared foods.
Never bring meat or poultry without a cold source to keep them safe.
- Bring disposable wipes or biodegradable soap for hand- and dishwashing.
- Plan on carrying bottled water for drinking. Otherwise, boil
water or use water purification tablets.
- Do not leave trash in the wild. Burn leftover food and carry
trash back with you.
- Leftover food is only safe in a cooler if there is ice in it.
Discard leftover food if it cannot be stored with ice.
- Protect yourself by washing our hands before and after handling food.
If you are camping for more than one day, there are a variety of foods that are lightweight and do not need refrigeration. These include:
-
Peanut butter in plastic jars
- Concentrated juice boxes
- Canned tuna, ham, chicken, and beef
- Dried noodles and soups
- Beef jerky and other dried meats
- Dehydrated foods
- Dried fruits and nuts
- Powdered milk and fruit drinks
- Powdered mixes for biscuits or pancakes
- Dried pasta
For more information, call the USDA Meat and Poultry Hotline toll-free 1 (800) 5353-4555 from 10 a.m. to 4 p.m. EST. Or visit the web site www.fsis.usda.gov. CIC also features the publication "Can Your Kitchen Pass the Food Safety Test" and "Critical Steps Toward Safer Seafood" in its fall catalog.
Protect Yourself from Free PC Scams
September 1999 - It seems too good to be true-a free computer in return for simply filling out a form or sending in a rebate card. Each day there are more and more offers on the Internet for free PC's. But are they legitimate?
There are three basic types of offers for free PC's: a free refurbished PC for three years paid internet service, a PC package that costs nothing after rebates and a free PC received in return for filling out a questionnaire and allowing companies to run continuous ad banners across the screen.
Some of these offers are legitimate, but a growing number are not. These scams include an offer that advertises a free PC for a $20 "enrollment fee." Other offers, while legitimate, may put you at risk of being scammed because of the large amount of personal information they require.
To protect yourself from future fraud follow these easy steps:
-
Find out what the offer includes. Don't assume that the offer includes the whole system-it may only include only the hard drive. You may be required to pay extra for the mouse, keyboard, monitor and other extra components.
- What are the requirements to participate in the offer? You
may be asked to provide a large amount of information about yourself.
Ask the company how they intend to use this information and how your
privacy will be protected.
- Know the total cost of the offer and all the restrictions and requirements.
- Is the PC new or refurbished? You may get all the latest
add-ons and gizmos with a new computer, but don't assume that the
computer being offered has the latest technology. Keep in mind that a
refurbished PC may have all the features you need.
- Inquire about service and support. Is there a toll-free
number for tech support? Are you limited in how much support you'll
get? Is there a warranty on the PC? What are the terms and
conditions? Can you call for local service, or take it to a local
store, or must you return it to a manufacturer or seller for repairs
or maintenance?
- Can you change your Internet Service while your agreement is
in affect? Do you have to keep paying for the service even if you
are not using for it?
- Will you be able to get a refund?
For more information, on online scams visit the Better Business Bureau Online. CIC also features the publications "Site-Seeing on the Internet" and "The 1998-1999 Consumer's Resource Handbook" in its fall catalog.
May 1999 - We've all heard the hype about the Y2K computer problem-unfortunately so have scam artists. And they're cashing in on popular fears. What scams should you be looking out for?
Scam artists are jumping on the Y2K bandwagon and taking advantage of consumer concern about the date change. While there hasn't been a nationwide outbreak of scams, here have been scattered reports of Y2K scams and regulators are on the look out for more Y2K fraud as we get closer to January 1, 2000.
In a scam making the rounds and reported in Connecticut, Florida, Georgia, Texas and the Washington D.C. area, scam artists are calling consumers pretending to represent a bank. The scam artists ask the consumer if they have permission to transfer the consumer's deposits into a special bond account for safe-keeping until the bank completes Y2K repairs. Consumers were told that if they did not, they could lose all of their money. Consumers were then asked for their bank account number and their authorization to make the transfer.
If you receive one of these calls, don't fall into the scam artist's trap. According to the Federal Trade Commission (FTC), most banks are already Y2K compliant. Also, bank employees would not ask for a consumer's bank account number-they already have it on record. As a precaution, don't give out bank account information over the phone.
In another scam, callers claim that the magnetic strip on the back of a consumer's credit card will also be affected by the Y2K bug and cause the card to malfunction after January 1, 2000. The scam artist offers new strips for a fee and asks the consumer for their credit card number. The scam artist then uses the card to make fraudulent charges. If you receive a call like this, report it to your credit card company, the police, the telephone company, and the consumer protection agencies.
Another scam making the rounds involves investment opportunities in businesses advertising that they can fix the Y2K bug. Be wary of any offers to invest in new companies claiming that they have a Y2K cure-these may be fraudulent.
For more information on the Y2K computer problem, CIC features the publications "The Year 2000 and You" and "The Year 2000, Your Bank and You" in its summer catalog. For more information on fraud check out the 1998-1999 Consumer's Resource Handbook.
National Food Safety Education Month-September 1999
August 1999- Entertaining guests for dinner can be fun, but one dinner guest you do not want to have is the bacteria that causes foodborne illness. September is National Food Safety Education Month, a great time to learn how to protect your family from this unwelcome guest.
This year's theme is "Cook It Safely." One of the most effective ways to prevent foodborne illness is to cook food to safe temperatures. Foods are cooked safely when there are heated for a long enough time and at a high enough temperature to kill the harmful bacteria that causes foodborne illness. Here are some tips to help you "Cook It Safely:"
-
Use a clean food thermometer to make sure that meat, poultry and casseroles reach a safe internal temperature.
-
Cook meat and poultry to safe internal temperatures
- ground beef 160°F
- roasts and steaks 145°F
- poultry (chicken breasts) 170°F
- whole poultry (turkeys/chickens) 180°F
- ground beef 160°F
-
Cook eggs until the yolk and white are firm. Don't use recipes in which eggs remain raw or partially cooked.
-
Fish should be opaque and flake easily with a fork when done.
-
When cooking in a microwave oven, makes sure there are no cold spots in food where bacteria can survive.
-
Leftovers should be heated to at least 165°F.
For more information on safe food preparation and handling please visit www.foodsafety.gov/September. CIC also features the publication "Fight BAC! ™ Four Simple Steps to Food Safety" in its fall Catalog.
Lower Student Fees on Direct Loans
August 1999- Paying for college can be a challenge. Fortunately, the Department of Education has announced three new discounts on student loan fees. With these discounts, over 2 million students will be eligible to save an average of $631 on their direct student loans.
The three new discounts include:
-
A one percentage point reduction in the up-front loan fee, also called the origination fee, that students in the Direct Loan program now pay. The origination fee will be reduced from four percent to three percent of the total loan balance.
-
A 0.25 percentage point interest rate reduction for borrowers paying electronically.
-
A 0.6 percentage point interest rate reduction for a direct loan borrowers who consolidate their loans while they are in school, or during the grace period before they enter loan repayment.
The average total savings to the average graduate with a debt of $10,000 and a standard 10-year repayment plan will be over $631 over the life of the loan. That student will save an estimated $100 on the origination fee; $157 for the interest rate reduction for electronic debit repayment; and $374 for the in-school or grace consolidation savings.
For more information, CIC features the publication "All About Direct Loans" in its fall Catalog.
September Is National Cholesterol Education Month
August 1999-What's your number? Your cholesterol count, that is. September is National Cholesterol Education Month and this year's theme is "Keep the beat-cholesterol counts for everyone." An important part of keeping your heart healthy is keeping track of your cholesterol level. To help you do this, order your free Cholesterol Month Kit. Contact the NHLBI Information Center, PO Box 30105, Bethesda, Maryland 20824-0105; 301-592-8573; fax 301-592-8563. Or email [email protected]. You can also download the kit at www.nhlbi.nih.gov.
For more information CIC features the publications "So You Have High Blood Cholesterol" and "A Consumer's Guide to Fats" in its fall Catalog.
Choosing a college can be tough, but there is help. A new web site from the National Center for Education Statistics in the U.S. Department of Education now puts information about over 9,000 U.S. colleges and universities at your fingertips.
The site, College Opportunities On-Line (COOL) serves as a clearinghouse of information about colleges and universities. Its goal is to help college students, future students and their parents understand the differences between colleges and how much it costs to attend college. You can use its search tool to look up a specific college or a group of colleges. You can search based on the school's location, program or degree offerings. Once you've found some colleges that interest you, you can get more detailed information on the institutions and their programs.
For more information, CIC features the publications "Planning for College" and "Think College? Me? Now? A Handbook for Students in Middle School and Junior High" in its summer catalog.
The Facts on Long-Term Telephone Number Portability Charges
August 1999 - Thinking about changing your local phone company but afraid you may have to change your telephone number? With the new competition among local telephone service providers, consumers have more choice about how they will receive their telephone service. But does this choice mean that you have to change your telephone number if you decide to change providers?
A new provision by the FCC, telephone number portability, makes it possible for you to keep the same telephone number, even though you have changed local telephone service providers (however, this does not allow you to keep the same phone number if you have moved).
Local telephone companies recover the costs of telephone number portability through a new fixed monthly charge that appears on your telephone bill (a phone company may, but is not required, to charge for these costs). The charge will be the same each month, and you will have to pay for each separate phone line in your home. These charges began appearing on telephone bills in February 1999. At that time, Portability was available only in major metropolitan areas. It will continue to expand to other service areas. Consumers will not be charged for telephone number portability until the service is available in their area. Once a telephone company begins assessing this charge, it may only do so for five years.
Even if you do not decide to change telephone companies, you may still have to pay a telephone number portability charge. These charges help pay for others who do decide to use telephone portability. Remember, you always have the option to change companies, these charges will cover the cost of your telephone number portability if you change your mind down the road.
Tips for Consumers:
-
If you have questions regarding any charges on your telephone bill, call your local telephone company. A customer assistance telephone number, the telephone number to call for answers to your questions on billing or service, should be listing on your monthly bill. Let the company know if you believe these charges are inappropriate or too high. It's in the company's best interest to meet the needs of its customers.
- If your local telephone company has placed a long-term number
portability end-user charge on your telephone bill, call the company
to ask questions about the service and to make certain that long-term
number portability is available in your area.
- Look for competition in your local telephone market. As new
competitors offer local telephone service, use your available local
telephone service provider options wisely and shop around. Local
telephone service providers may take very different approaches to
whether and how they are charging their customers to cover their
costs of providing long-term portability service.
- If other companies are operating in your local telephone market,
call them and ask if they add these types of charges to their
customers' bills. If these types of charges are added to customers'
bills, ask each company to explain how these charges are calculated
and exactly what amount would appear on your bill if you decide to
use the company's services. You should make sure that you are getting
the best deal for the types of services your require
- If you have any questions or concerns regarding long-term telephone number portability after you talk to you local telephone company, call the FCC's National Call Center at 1-888-Call FCC (225-5322).
For more information, please visit www.fcc.gov/Bureaus/Common_Carrier/Factsheets/portable.html.
FCC Addresses U.S. Phone Numbering Exhaust
August 1999 - With the information technology explosion, it's common for one person to have more than one phone number. We use new phone numbers for wireless phones, fax machines, and to access the internet from our homes. But where will all these new phone numbers come from?
In 1991, the U.S. had 119 area codes. Today it has 215-with 70 close to exhausting the phone numbers they have available. Current projections show that the U.S. may completely run out of new area codes in 10-15 years. Fortunately, the Federal Communications Commission (FCC) is taking steps to remedy this. The FCC has adopted a Notice of Proposed Rulemaking to consider a variety of strategies to increase the efficiency with which telecommunications carriers use telephone numbers. This will slow the rate at which new area codes are required.
The Commission has proposed the following measures:
-
Administrative Standards. The FCC proposed changing the industry guidelines that govern number allocation. These changes would ensure that carriers will request numbers only when they need them and return numbers they no longer need so other carriers can use them.
- Number Pooling. Currently, telephone carriers receive
telephone numbers in blocks of 10,000 for each geographic area-even
though the carrier may not use all of these numbers for this area.
This creates wasted phone numbers that can be used in other areas.
Number pooling would give carriers telephone numbers in smaller, more
manageable blocks of 1,000. This would decrease wasted telephone numbers.
- Carrier Choice. The FCC is also considering making these
efficiency measures voluntary rather than mandatory. The FCC may set
goals for the usage of telephone numbers by carriers, but carriers
will be able to decide on their own how to best meet these goals.
- Incentive-based approach. The FCC is also considering
whether a system in which carriers pay for telephone numbering
resources would improve their efficiency of telephone number usage.
- Area Code Relief. The FCC is also considering more traditional remedies to this problem, such as boundary realignments for area codes.
For more information contact Jared Carlson or Tejal Mehta, Common Carrier Bureau, 202-418-2320. Or visit the FCC's web site.
Questions Keep Sprouting About Sprouts
August 1999-Sprouts. They seem to be popping up everywhere lately-from salad bars to produce departments. They're part of a healthy diet-but can they make you ill?
The most common kind of sprouts, alfalfa sprouts, have been linked to a number of food-borne disease outbreaks since 1995. These diseases have included the bacteria Salmonella and E coli. In August 1998, as a result of these outbreaks, the Food and Drug Administration issued a health advisory for high risk groups warning them not to eat raw alfalfa sprouts. High risk groups include the elderly, children and people with compromised immune systems. In September of 1998 the FDA decided to have a public hearing to determine what further steps, if any, were needed to ensure the safety of sprouts.
The elderly, children and people with compromised immune systems should not eat sprouts. But, if you are a healthy adult, here are some steps you can take to prevent illness.
-
Buy only sprouts kept at refrigerator temperature. Select crisp-looking sprouts with the buds attached. Avoid musty-smelling, dark, or slimy-looking sprouts.
- Refrigerate sprouts at home. The refrigerator should be set at no
higher than 40 degrees Fahrenheit (4 degrees Celsius).
- Wash hands with warm water and soap for at least 20 seconds
before and after handling raw foods.
- Rinse sprouts thoroughly with water before use. Rinsing can help remove surface dirt. Do not use or other detergents.
For more information please visit www.fda.gov/fdac/features/1999/199_sprt.html.
Program Helps Consumers Obtain Free Prescription Drugs
June 1999-As you get older, you may need more prescription medications to keep you healthy, treat illness, or manage the symptoms of a chronic disease. However these prescription medications can often be expensive-making it difficult for the people who need these medications to get them. Where can you turn for help?
A new nonprofit volunteer organization helps consumers obtain their prescriptions drugs at no cost. The Medicine Program puts consumers in touch with drug manufacturers who are willing to supply free medications. Most drug manufacturers already offer free medications to those in need and have programs with their own applications and requirements. However, most consumers are not aware that such help is available.
The Medicine Program assists consumers who don't have prescription-drug coverage or those who have exhausted this coverage and cannot afford to purchase their medications, regardless of their age. Applicants who qualify for the program usually have incomes that are too high for Medicaid but not enough to buy health care with drug benefits.
To get an application form, call 573-778-1118 or visit www.themedicineprogram.com. Mail the form, along with a $5.00 processing fee for each prescription, to The Medicine Program, P.O. Box 515, Doniphan, MO 63935-0515. Once your form is received, you will be sent an application packet to be reviewed and completed by you and your doctor. If you qualify, the program will send a free three-month supply of your medication to your doctor. If you do not, you may write to The Medicine Program within 120 days and your $5.00 fee will be refunded.
For more information on prescription drugs, CIC features the publications "Making Your Medications Work Better," "Medications and Older Adults" and "Questions to Ask Your Pharmacist" in its summer catalog.
Fireworks and celebrations go together, especially during the Fourth of July and the upcoming millennium.
But fireworks can be dangerous, causing serious burn and eye injuries. That's why the U.S. Consumer Product Safety Commission (CPSC) and its national and state partners recommend that you leave fireworks to the professionals.
But if fireworks are legal where you live and you decide to set them off on your own, be sure to follow these important safety tips:
-
Never allow children to play with or ignite fireworks.
- Read and follow all warnings and instructions.
- Be sure other people are out of range before lighting fireworks.
- Only light fireworks on a smooth, flat surface away from the
house, dry leaves and flammable materials.
- Never try to re-light fireworks that have not fully functioned.
- Keep a bucket of water handy in case of a malfunction or fire.
For more information please visit the CPSC's web site.
You May Already Be A Winner! The Facts on Sweepstakes
April 1999-They're hard to resist-the promise of large amounts of money, the official-looking envelope, and the claim that you may already be a winner. But are sweepstakes really all they appear to be? Here are the facts.
Despite the millions of dollars in prizes, these sweepstakes are little more than clever marketing devices to get people's attention for deals on magazine subscriptions, jewelry and household gadgets.
Many offers can be misleading-some are designed to look like ornate stock certificates or government documents. These offers will state that the consumer has won a large sum of money in large print and then in smaller print state "if you have and return the grand prize winning number." Other offers are designed so that the consumer believes their chances of winning are greater than they actually are and that their odds of winning increase if they buy a product, which is not the case. If the sweepstakes is legitimate, no purchase is necessary to win.
Before you enter a sweepstakes here are some tips to keep in mind:
-
No purchase or entry fee is required in sweepstakes.
- Under the law, you should have an equal chance of winning,
whether you order or not.
- Read the rules carefully. If you can't find, read or understand
the rules, think again.
- If you receive a notice that you have definitely won a prize,
think before you respond. Check the postmark. Bulk rate mailings,
noted by a postal permit number, are sent to thousands of consumers;
not all of them could be major award winners-so if you're a winner,
it's probably for something that's of nominal value, not the highest
value that's touted in large print.
- If you receive a promotion congratulating you on winning a prize,
but requiring a shipping or handling fee, the sweepstakes may be
fraudulent. You should never have to pay a fee before receiving a
prize in a sweepstakes. And don't give out your credit card or bank
account number.
- Make sure you know the company that's offering the sweepstakes. It may sound like a well-known firm but many disreputable companies use a variation of a nationally recognized name. Call the sweepstakes sponsor directly to verify. Or check with the Better Business Bureau where the company is located.
Could this be your lucky day? Here are your odds of winning a sweepstakes compared to other events.
|
Event |
Odds |
|
Winning the American Family Publishers $11 million sweepstakes |
1 in 150,000,000 |
|
Winning Powerball |
1 in 80,089,128 |
|
Winning the Publishers Clearing House $10 million sweepstakes |
1 in 50,000,000 |
|
Dying in a fireworks accident |
1 in 1,733,250 |
|
Getting a royal flush in five-card poker |
1 in 649,739 |
|
Dying from bites by venomous snakes, lizards and spiders |
1 in 216,656 |
|
Dying in catclysmic earth surface movements |
1 in 138,660 |
|
Dying in an airline or space accident |
1 in 4,073 |
|
Dying in a car accident l(lifetime odds) |
1 in 80 |
Who Enters Sweepstakes?
According to the Direct Marketing Association (DMA), 55% of adults of all ages have entered sweepstakes contests. However some may not be acting in their own best interests and may be ordering more merchandise than they can afford. In these cases, reputable companies will note these consumers and try to assist the caregivers of these consumers in helping these individuals.
How can you tell if someone is a problem purchaser? Here are some signs you can look out for: the person saves stacks of sweepstakes solicitations from a multitude of companies, the person receives an unusual number of packages containing a variety of merchandise that you suspect they do not want or can use, or there are many magazines lying around, apparently unread. Ask yourself whether these purchases seem unnecessary.
You may also want to ask the person about their recent behavior-why do they purchase as often as they do? Do they have difficulty paying their bills from purchases that accompany sweepstakes?
If you suspect someone you care for may have a purchasing problem there are some steps you can take to help them. First, contact the DMA. The DMA will either direct you to the proper company contacts for assistance or will contact the companies on your behalf. You can contact the DMA by either writing the Direct Marketing Association, Attn: Sweepstakes, 1111 19th St. NW-Suite 1100, Washington D.C. 20036-3603 or faxing 202-955-0085. Or email [email protected]. Members of the DMA will remove the names of these consumers from their customer and prospect lists when requested. These consumers will not receive unwanted promotions.
Some other steps you can take to help a problem purchaser include:
-
Volunteer to pick the person's mail-this will give you a better idea whether questionable offers or solicitations are arriving.
- Volunteer to review sweepstakes mailings together with the older
person to make sure that the person understands them. Point out that
no purchase is necessary to enter the sweepstakes.
- Review credit card statements together, ask about multiple or questionable charges to the same company.
What About Fraud?
Some fraudulent companies pass themselves off as legitimate sweepstakes marketers. Operators for these fraudulent companies will often call elderly consumers and inform the consumer that they have won a large prize and must pay a fee to collect it. Legitimate sweepstakes marketers will never require a purchase or payment of any kind to enter or claim a prize.
If you have a problem and cannot get it resolved first by the company sponsoring the sweepstakes, you can contact the Direct Marketing Association. For help, write: DMA, Mail Order Action Line, 1111 19th St. NW, Suite 1100, Washington, D.C. 20036-3603. Fax: 202-955-9985. You can also write to the Federal Trade Commission, 600 Pennsylvania Ave. NW, Washington D.C. 20580 or phone: 202-382-4357. If the sweepstakes promotion was sent in the mail, you also can contact the U.S. Postal Service: Mail Fraud Complaint Center, 1-800-372-8347.
For more information on sweepstakes, you can visit the Direct Marketing Association's Web site. To learn more about fraud, and how to avoid it CIC features The 1998-1999 Consumer's Resource Handbook in its Spring Catalog.
Survey Lists Top Consumer Complaints
February 1999 - Auto sales, home improvement and auto repair top the list of hot topics for consumer complaints in 1997. This is from a survey conducted by the National Association of Consumer Agency Administrators (NACAA) and the Consumer Federation of America. (CFA). The survey is based on information from the 46 NACAA members who responded to questions about their 1997 complaint records.
Here are the top ten problem areas for consumer complaints and the percentages of agencies that listed them:
-
Auto Sales (new and used) 74%
- Home Improvement 61%
- Auto Repair 48%
- Credit 46%
- Household Goods 41%
- Telemarketing 28%
- Mail Order 20%
- Collections 17%
- Landlord/Tenant 15%
- Cable TV 11%
The biggest jump in the survey came from complaints of slamming and cramming. Slamming is the unauthorized switching of a consumer's phone service and cramming is when phone companies charge consumers for services they have not purchased.
Another area of growth was the Internet. From 1996 to 1997 complaints about problems with Internet Service Providers, scams and fraud on the Internet and problems with merchandise ordered through the Internet increased by an average of 23%.
NACAA and CFA also looked at trends in the past five years of survey data. One of the biggest changes is this time period is the rise of credit complaints. Seventh place in 1994, these complaints have risen to fourth place in the most recent survey. Credit complaints include identity theft, bogus debt consolidation plans, and fraudulent credit protection plans.
For more information on scams and how to avoid them, the Consumer Information Center features the 1998-1999 Consumer's Resource Handbook in its winter catalog.
February 1999-You've heard them before-rumors about special deals and loopholes that everyone seems to know about. But are they true? The National Association of Consumer Agency Administrators (NACAA) recently published a list of common consumer "urban legends" and gives the facts on these popular misconceptions. Here is the real information.
-
"I can return my car within three days of purchase." While this is believed by many people, there is no cooling off period for motor vehicles.
- "My credit report information is confidential."
Although wrongfully obtaining another person's credit report is a
crime, there are a growing number of ways that the information can be
legally distributed. Recently enacted federal laws allow corporate
affiliates to share most information.
- "My creditor's can't call me at work." In most
states, creditors (but not third-party debt collectors) can keep
calling and writing-days, nights, weekends, and holidays-until the
debts are repaid.
- "You can't repossess my car; it's private property."
While state laws differ, the general rule is that repossession cannot
occur if involves force, a breach of the peace, or entry into a
dwelling. Vehicles in driveways and unlocked garages are usually fair game.
- "An auto lease is like a rental; if I have problems with
the car or a problem paying, I can just bring it back." Most
leases require payments for the duration of the contract. Early
termination can often result in various additional charges.
- "If I lose my credit cards, I'm liable for purchases."
Companies perpetuate this myth in an attempt to sell "credit
card protection" coverage. Federal laws limit charges on lost or
stolen cards o $50. Most national credit card companies will not even
charge the $50 if the consumer makes a good faith effort to quickly
notify the lender of lost or stolen cards.
- "It says right here that I've won; it must be true." Fake prize notifications continue to become more convincing. Some consumers actually go to the company office to try to pick up their prizes.
For more myths, visit the NACAA's web site . And don't forget you can get answers to all your consumer questions with the 1998-1999 Consumer's Resource Handbook, featured in CIC's winter catalog.
Getting the Real Deal on Dial-Arounds
February 1999-We've all seen those ads on TV promising great savings with those dial-around long distance companies. You know, the ones you access by dialing 10-10 followed by another three digits, like 321 or 220, and the number you are calling. But can you really save using these numbers?
Maybe not. The Federal Communications Commission and the Federal Trade Commission are now investigating how the growing business of "dial-arounds" is advertising their long distance services. The two agencies are looking into whether these commercials are deceptive to consumers.
Some may not be giving consumers the whole story on the services they offer. These commercials may not be disclosing important pricing information, such as monthly fees or minimum charges. For example, a commercial may advertise a rate of a 5 cents-per-minute, but not tell you about the $5 monthly fee that you have to pay on top of that. Or, a company may advertise that you can call 20 minutes for just one dollar. Sounds great-but what you may not realize is that it's one dollar for every call twenty minutes or less. That means you may make a call that lasts only one minute, but it still costs you a dollar-which isn't a great deal.
Dial-arounds don't automatically mean discounts. You may not necessarily save any money using these services-it all depends your calling pattern.
These advertisements may also make it difficult for the consumer to determine who to contact if they have a question or complaint. Three of the most advertised services are actually owned by well-known long distance carriers with whom these new services are supposed to be competing. MCI Worldcom owns the 10-10-321 and 10-10-220 dial-around services and AT&T owns the 10-10-345, or "Lucky Dog" dial-around service. But you wouldn't know that from their commercials-their corporate names are hard to find.
So far, the FCC has received 250 complaints about these services in the past six months-and this number is growing. Complaints have also been received by local governments and other organizations. The ads that appear to be generating the most confusion and complaints are those for MCI's dial-around services.
Last year, eleven percent of U.S. Households used dial-arounds and these services made more than $2 billion. This year, this amount is expected to grow to $3 billion. Here are some things to keep in mind to make sure you are getting the best deal on dial-around services:
-
Know the rates you are currently paying for your long distance service.
- Ask about the basic rates for the dial-around service.
- Are there any monthly fees for the dial-around?
- Will you be charged a monthly minimum even if you don't make many
calls using the service?
- Is there a per-call rate in addition to the per-minute rate?
- Is there a per-call minimum for the dial-around?
This table can help you figure out which service offers the best deal for you.
|
What Dial Arounds Offer Vs. What Consumers Get |
|||||
|
Dial Around |
Owner |
Promotion |
The Catch |
||
|
10-10-321 |
Telecom USA(owned by MCI WorldCom) |
50 percent off "basic" long-distance rates |
Discount kicks in only for calls 10 minutes or longer and basic rates are often highest offered by long-distance firms. |
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10-10-220 |
Telecom USA (owned by MCI WorldCom) |
99 cents per 20-minute call |
Any call under 20 minutes costs 99 cents, no matter how long you talk. |
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10-10-345 (Lucky Dog) |
AT&T |
10 cents a minute |
There's a 10-cent fee for every call (so a one-minute call always costs 20 cents). |
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10-10-432 |
Qwest |
Nine cents a minute, evenings, weekends; 20 cents weekdays. |
Add 4.8 percent surcharge for universal service fund (USF); customers may also be paying a USF charge to their regular long-distance carrier. |
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10-10-502 |
WorldxChange Communications |
Five cents a minute for the first 60 days, then 7 cents a minute. |
$4.95 monthly fee plus $1.49 USF. |
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10-10-297 |
Telco Choice (owned by Excel Communications) |
10 cents a minute. |
Add a 4.4 percent surcharge for USF. |
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10-10-811 (Dimeline) |
VarTec Telecom |
10 cents a minute. |
Three-minute minimum (so a one-minute call costs 30 cents) and a 4.9 percent USF charge. Existing customers also may be paying a $5 monthly service fee--if so, every other call, 10 minutes or less, is billed at 5 cents per minute. |
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For more information on choosing telephone service, CIC features the 1998-1999 Consumer's Resource Handbook in its winter Catalog.
How To Avoid Buying A Rebuilt Wrecked Car
Unbeknownst to consumers, some unscrupulous dealers have been selling poorly-rebuilt salvaged cars, which are dangerously unsafe and overpriced. Typically, the cars were involved in major accidents or floods. They look fine because of cosmetic repairs; however, they may have defective brakes, steering problems, faulty and inadequate welds, and poorly aligned structures.
The Consumer Federation of America lists the following guidelines for determining if a car has been wrecked:
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Check to see that the paint on the outside of the door matches the paint inside the door frame.
- Make sure that the parts of the car line up with each other. Make
sure that the gaps between the doors and around the hood and trunk
are straight and even.
- Have a mechanic check underneath for evidence of welding of the
frame or unibody.
- Check the title to see if the car is an out-of-state vehicle.
Severely damaged cars often move from one state to another.
- Look for evidence of flood damage. Check the mat under the trunk for mud or dirt. Look for watermarks on the inside of the doors and for moisture inside the trunk and under the seats.
How to Communicate for Better Automotive Service
Even in this age of computerized engine diagnostics, communication between vehicle owner and repair shop is still essential, reports the non-profit National Institute for Automotive Service Excellence (ASE). Among ASE's suggestions:
Do your homework before taking your vehicle in for repairs or service.
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Read the owner's manual to learn about the vehicle's systems and components.
- Follow the recommended service schedules.
- Keep a log of all repairs and service.
Use all of your senses to inspect your car frequently for:
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Unusual sounds, odors, drips, leaks, smoke, warning lights, gauge readings;
- Changes in acceleration, engine performance, gas mileage, fluid levels;
- Worn tires, belts, hoses;
- Problems in handling, braking, steering, vibrations.
Note when the problem occurs.
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When did the problem first start?
- Is it constant or periodic?
- When the vehicle is cold or after the engine has warmed up?
- At all speeds? Only under acceleration? During braking? When shifting?
Once you are at the repair establishment, communicate your findings.
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Be prepared to describe the symptoms. In larger shops, you'll probably speak with a service writer or service manager rather than with the technician directly.
- Carry a written list of the symptoms to give to the technician or
service manager.
- Resist the temptation to suggest a specific course of repair.
Just as you would with your physician, tell where it hurts and how
long it's been that way, but let the technician diagnose the problem
and recommend a remedy.
- Don't rush the service writer or technician to mke an on-the-spot
diagnosis. Ask to be called and apprised of the problem, course of
action, and costs before work begins.
- Do not be embarrassed to ask questions.
- Before you leave, be sure you understand all shop policies
regarding diagnostic fees, labor rates, guarantees, and acceptable
methods of payment.
- Leave a telephone number where you can be reached.
Warning about Electric Deregulation Scams
According to the National Fraud Information Center, a hotline program operated by the National Consumers League, con artists have "plugged into" the deregulation of the electric industry as a new opportunity for fraud. The NFIC is beginning to hear from consumers who are seeking advice about solicitations for business opportunities, multilevel distributorships, and potentail investments in electric power.
NFIC Director and AAFT Coordinator, Susan Grant, predicts that "electric deregulation fraud will be as big as FCC license were a few years ago," referring to the proliferation of fraudulent money-making schemes for wireless cable, cellular phones, paging and other new telecommmunications products and services in the early 1990's. While electric deregulation may present an opportunity to "get in on the ground floor" for investors, people should be very cautious. There are always risks involved in investments, especially in new companies that don't have proven track records and in new, untested competitive markets.
And money-making opportunities involving resale of electric power may not pan out--for distributors or their cutomers--if there isn't really any power to sell. Recalling problems with some multilevel sales of long-distance phone service that didn't work because the companies that offered it never paid the major phone carriers who were to supply it, Grant warns of similar scams with electric service.
Unauthorized switching of consumers' electric service, dubbed "shocking," is also likely to occur as competition heats up. "We've had a few calls at the fraud center from consumers who are concerned about aggresive sales tactics for electric power," Grant says. In one case a woman reported finding her five year old child on the phone with a telemarketer who was asking questions about the family's electric service.
The Alliance Against Fraud in Telemarketing is interested in hearing about any telemarketing or Internet fraud relating to deregulation of electric service.
There has been growing concern about a practice called "cramming," in which customers are billed for unexpected telecommunications services that in some cases they neither ordered nor used. This practice became known as cramming because, quite often, the charges are positioned in the consumers bill such that they may be easily overlooked.
Major phone companies are concerned for their customers. A customer can be crammed as a result of just accepting a collect call, filling out a sweepstakes or raffle ticket, or responding to voice prompts in the course of placing a call.
The following tips will help consumers detect cramming early and avoid becoming a victim of the practice:
Early Detection
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Review your telephone bill thoroughly for all charges.
- Questions the telecommunications services provider (whose name
and logo appear on the page of the bill) of any unfamiliar charges.
- Notify your local phone company if you do not recognize a charge, or are unable to resolve a disputed charge with the telecommunications service provider.
Prevention
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Do not divulge personal information, such as telephone numbers, credit card or social security numbers on sweepstakes or raffle tickets. Quite often this information is not secure and may be used for reasons other than intended.
- Keep a copy of applications you fill out. You will have a
reference if there is ever a time of dispute.
- Avoid filling out entries that seem vague in nature.
- Do not accept collect calls from unfamiliar persons.
- Do not return calls to unfamiliar phone numbers.
- Beware of faxes and e-mail, voice mail and pages requesting a return call to an unfamiliar phone number.
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