Consumer News & Alerts   |   April 2, 2007

DOWNSIZE TO SURVIVE
The press is full of stories about how bad things are for the subprime mortgage industry. It's unfortunate, all right, but what's even worse is that the reason all the loan sharks are in trouble is that the poor folks they suckered into taking out loans they can't afford are about to lose their homes, ruin their credit and wind up in the street.

And just who are these people who can't pay their sky-rocketing mortgages? They're what's left of the middle class, which is in even worse shape than the, mortgage brokers, real estate developers and Enron executives. Some are working multiple low-paying jobs trying to make ends meet, others are retired and struggling through what they thought would be their "golden years." Why, the situation's so bad that even Federal Reserve chairman Ben Bernanke has started to think that widespread access to credit may not always be a good idea.

We hope none of this affects you, but if it does, our Fred Yager has some advice -- take a cue from business and do what the titans of industry do when things get tough: Get Congress to .... oh, no wait. What we meant to say was: Downsize now, before it's too late. The key to surviving hard times is to act fast. If you wait too long and wind up in foreclosure, the game is pretty much over. Fred outlines concrete steps you can take now to survive the hard times.

Senate Targets Mortgage Brokers Cleaning up the mortgage business is tricky because so many mortgages are written by independent mortgage brokers. Like the creeps who sell pots and pans and vacuum cleaners door-to-door, they're independent agents and thus hard to keep track of. That may be changing, however, as the Senate considers tough regulations that would include everyone from the biggest mortgage company to the guy who uses a mail-drop and meets his clients at Denny's.

The economic situation is worse than many of us realize in states like Michigan, Illinois, Ohio and Missouri -- strong union states once home to automakers and heavy equipment manufacturers. Asian automakers like to note that they assemble many of their cars in the U.S., but they do so mostly in the South, where they're largely free of the unions that protect workers' collective and individual rights. What's happening today in the Upper Midwest is approaching the economic devastation that struck the Southwest during the Dust Bowl.

WORST PLACE TO BUY A CAR
Buying a car is easier than ever these days. Why, you can just go online and find the exact car you're looking for. So what if it's hundreds of miles away and offered for sale by someone you've never heard of. Truth is, most of these deals go bad. At best, the car isn't what the buyer expected; at worst, it doesn't even exist. Think we exaggerate? Check our video interview with auto transporter and skip tracer Michelle Gomez, then take her advice and buy no car you have not personally driven straight to a reputable mechanic for a thorough going-over.

Public Citizen Objects to Carfax Settlement Many online buyers think that running a Carfax check makes it safe to buy a car they've never seen. We all know that's not true and now Public Citizen charges that a class-action lawsuit settlement lets Carfax off too easily. The company would not be required to fully disclose the limitations of its vehicle searches, Public Citizen argued.

More auto news ...

• Feds Sued For Release Of Safety Data Taxpayer-owned information that could help consumers make better buying decisions is being hidden from the public by federal employees.

• West Coast Gas Prices Lead the Nation Prices shoot past $3 and just keep climbing.

• Chevy Ponders a Minicar GM shows three models at New York Auto Show to gauge consumer reaction.

• Hyundai to Tap U.S. Sport Sedan Market South Korean automaker takes a page from BMW and Mercedes-Benz.

PROBLEM SOLVED, SAY PET FOOD MAKERS
Everything's fine, says Menu Food President and CEO Paul K. Henderson. He says his company is investigating why his company's cat and dog food contained wheat gluten contaminated with a chemical commonly used in plastic. Oh, and also how rat poison got into the mixture. Henderson also said the contaminated wheat gluten is not in any of his company's other products -- those that weren't among the 60 million cans of "cuts and gravy" style food recalled recently. Meanwhile, Hill's Pet Nutrition recalled its Prescription Diet m/d Feline dry cat food, saying it included wheat gluten from the same supplier that Menu Foods used. You can add some Alpo pet foods to the recall list too.

Our Lisa Wade McCormick has been covering this story all week and at one point, she asked leading Ph.D. veterinarians whether it might be better to feed our pets table scraps. The reply was that commercial pet food is manufactured according to formulas devised by learned men and women with Ph.D.-level training that the rest of us could never hope to match. Well, OK, but did all those Ph.D. nutritionists ever consider that their clients, the pet food manufacturers, would buy bulk ingredients from countries where small mammals are as likely to be classified as food rather than pets? Lisa is continuing to paw around and will have more next week.

If you want to ruin your Monday, read some of the consumer complaints on our site from pet lovers whose animals have died or become seriously ill.

WHAT IF IT GETS WET?
Besides being incredibly annoying, the cell phone has introduced a new fragility into modern life. Used to be, you could jump into a lake, roll down a mountain or get sand into your pockets without worrying about it damaging anything other than yourself. No more. Cell phones swoon at the slightest provocation, leading many to take out insurance on the cursed contraptions. Is this a good idea? Our David Wood has the answer.

FREE NO MORE
No one likes commercials but it's easy to overlook the fact that they pay the freight for over-the-air radio and television. All you need to catch Sanjay Malakar's latest hairdo is a TV and maybe a pair of rabbit ears. But that all changes -- at least for some -- in a few years, when the U.S. shifts to all-digital TV in a new frequency band. Old TV sets will be obsolete and the diehards among us will have to pony up for a new receiver, or at least a converter box. It's a little confusing but our Dawn Carlson explains it all in plain American English.

Note to amateur radio operators: Please don't send us any more hate mail on this subject. We know we're glossing over technical details but we're not writing this for you because you already understand it so much better than anyone else.

Foul Ball The Senate last week made clear its displeasure with a DirecTV deal that shuts out baseball fans without a dish. Those poor souls wouldn't be able to see out-of-market games. At last word, Major League Baseball had given DirecTV's rivals a one-day extension, until Monday, to pony up some big bucks.

ASTHMATICS PAY THE PRICE
Many asthma sufferers got that way by breathing polluted air. But never mind that: they're now being told they must give up their trusted albuterol inhalers in favor of a new, much more expensive variety that more efficiently protects the ozone layer. It's still quite OK to drive a Hummer to the Metro station, fire up the backyard grill or smoke your brains out in public places, but we simply must put a stop to these thoughtless asthmatics poisoning the atmosphere through their selfish preoccupation with breathing.

DANGER IN THE MEDICINE CABINET
Drugs can help us but all drugs carry some risks, as we're reminded by the withdrawal of Permax and other forms of pergolide from the market. The drugs, used to treat Parkinson's disease, can cause heart valve damage. The FDA also wants Novartis to withdraw Zelnorm, used to treat irritable bowel syndrome. FDA says it "recently" learned of possible heart problems but Public Citizen notes it petitioned the agency six years not to approve the drug.

Merck Wins One Merck won one of its many Vioxx cases last week in Madison County, Illinois. A jury found Vioxx wasn't responsible for a patient's death. The case got a lot of attention because Madison County juries have a reputation for being, shall we say, plaintiff-friendly.

Dumb It Down An advisory panel that looked over the drug information brochures given to patients along with their prescriptions says the brochures are "nearly useless." They're written in complex language and the layout is dense and hard-to-read, the panel found. Pfizer says it's trying to write all of its patient material at the sixth-grade level, which isn't as easy as it sounds when intelligent medical workers are trying to explain complicated medical topics.

Political consultants try to get political candidates to talk at the sixth-grade level too. That's not easy either, but not for quite the same reason.

How About Those Liver Spots? Lots of stuff starts growing on your skin as you get older. Liver spots are generally harmless but some similar growths aren't, Healthy Geezer Fred Cicetti reports. An annual full-body check-up isn't a bad idea, especially for older fair-skinned people, says Fred.

Sleepy Sounds, Colorful Food Grown-ups don't usually have anyone willing to sing them a lullaby, although our Dr. Henry Fishman says it would be a great idea. In his debut on ConsumerAffairs.TV, Henry also waxes on about colorful foods and fresh vs. dried fruits.

BIGGEST NOT ALWAYS BEST
TJX Corp. has set a record -- and not one to be proud of. The company says 46 million customers' personal data exposed to identity thieves during a data breach at its computer center. Data stolen included names, credit card and drivers license numbers. Martin Bosworth reports that businesses, meanwhile, are backing off the "spy chip" concept, fearing a consumer backlash if it becomes known they're using the RFID chips.

VINI, VIDI, VIDEO
We try not to get too close to the cutting edge but we don't want to be on the dull side either, so we've been moving carefully but steadily to get more video onto our site. Links to various video reports and interviews are scattered around in appropriate spots. You can also find a complete collection of them in our new video section, also known as ConsumerAffairs.TV.

If your company or organization has a Web site, you're welcome to use our video clips. Just fill out our online syndication form. Also, if you have videos of, say, your Ford truck burning or the remains of your Martha Stewart table, we'd like to see them. Just click on the "Submit your video" link that appears in the video player in the right-hand news column of our site.

Need custom video production for your organization or community Web site? Our not-for-profit affiliate, ConsumerAffairs.Org, can work with you to economically produce effective consumer education video content. Contact us for more information. Email info@consumeraffairs.com.

PASSPORT FRENZY
Tightened border requirements are sending travelers scrambling to the passport office, where they find long waiting times and more than a little confusion. Thanks to the Western Hemisphere Travel Initiative, which went into effect Jan. 23, all air travelers arriving in the United States must have U.S. passports. The only exceptions are those arriving from Puerto Rico, the U.S. Virgin Islands, Guam, or other territories. Since only one in four Americans had passports at the start of the year, the imposition of the new rules created a sudden stampede.

Booted Imams May Sue Passengers Who Reported Them Imams were kicked off their p*** in Minneapolis after passengers complained about them.

TSA Dragnet Aims to Block Potential Threats Agents targeting southeastern U.S. and Puerto Rico airports first for stepped-up surveillance of airport workers.

RECALLS

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