More Identity Data Woes: Bank of America Loses Tapes With One Million Records
Bank of America reported Friday that it had lost data tapes containing financial information for federal employees. Media sources throughout the country put the total number of individuals impacted at 1.2 million, but the company's press release referred only to "a small number of computer data tapes" and not mentioning the number of people affected.
WNCT television in Greenville, NC called Bank of America and confirmed through a spokesman that the bank would be responsible for any damages caused by the lost information. The Associated Press, meanwhile, reports that Sen. Patrick Leahy (D-Vt), who has been calling for hearings regarding ChoicePoint's release of 140,000 consumers' records, was among those federal employees whose records have been lost by Bank of America.
Investors did not seem troubled by the events on Monday, inching the bank's stock down 14 cents per share to close at $46.55.
Monday, February 28, 2005
Friday, February 25, 2005
ChoicePoint Debacle Prompts Senate Review, Timing of Stock Trades questioned
The United States Senate Committe on the Judiciary, chaired by Arlen Specter (R-Pa), is considering holding hearings in response to ChoicePoint, Inc's release of 140,000 consumer records including consumer information. That hearing has not been scheduled yet although the Committee does have an Executive Business Meeting scheduled for Thursday, March 3 at 9:30 a.m.
The hearing was requested by Sen. Patrick J. Leahy (D-Vt.), who along with Sen. Charles Schumer (D-NY), yesterday criticized the information services industry and its safeguards. Senator Schumer's officer reportedly was able to obtain social security numbers and other private information used by identity thieves without undergoing scrutiny. Schumer's office used Westlaw.com, another well known information services company.
In a statement released this afternoon, the Direct Marketing Association reiterated its member guidelines, which require, "...that organizations -- both marketers and legitimate organizations that use such data -- develop staff policies, procedures, training, and responsiveness measures to protect personally identifiable information."
A related story reported by MSNBC has questioned the timing of a series of stock sales by ChoicePoint's CEO Derek Smith and President Douglas Curling. MSNBC reports that a ChoicePoint spokesperson denied any connection between the stock sales and the first arrest case last fall.
The United States Senate Committe on the Judiciary, chaired by Arlen Specter (R-Pa), is considering holding hearings in response to ChoicePoint, Inc's release of 140,000 consumer records including consumer information. That hearing has not been scheduled yet although the Committee does have an Executive Business Meeting scheduled for Thursday, March 3 at 9:30 a.m.
The hearing was requested by Sen. Patrick J. Leahy (D-Vt.), who along with Sen. Charles Schumer (D-NY), yesterday criticized the information services industry and its safeguards. Senator Schumer's officer reportedly was able to obtain social security numbers and other private information used by identity thieves without undergoing scrutiny. Schumer's office used Westlaw.com, another well known information services company.
In a statement released this afternoon, the Direct Marketing Association reiterated its member guidelines, which require, "...that organizations -- both marketers and legitimate organizations that use such data -- develop staff policies, procedures, training, and responsiveness measures to protect personally identifiable information."
A related story reported by MSNBC has questioned the timing of a series of stock sales by ChoicePoint's CEO Derek Smith and President Douglas Curling. MSNBC reports that a ChoicePoint spokesperson denied any connection between the stock sales and the first arrest case last fall.
Thursday, February 24, 2005
Midwest Consumers Can Check Credit For Free Beginning March 1
In the continuing national rollout allowing consumers free access to their credit reports annually, consumers in 11 more states will have be able to participate beginning March 1.
Residents of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin are eligible to receive one free copy of their credit report from each of the three major credit reporting bureaus. Each of those bureaus has separate web pages to visit to order a report. Consumers can also call toll-free to (877) 322-8228.
The rollout of these additional states is timely, given ChoicePoint's admission this month that it had improperly sold data about 140,000 consumers to improper individuals. "Knowledge is power,” said Norman Garcia, Senior Attorney for Consumers Union’s West Coast Office. “Obtaining and reviewing your credit report is an important step in protecting yourself from errors and identity theft and maintaining a positive credit history.”
In the continuing national rollout allowing consumers free access to their credit reports annually, consumers in 11 more states will have be able to participate beginning March 1.
Residents of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin are eligible to receive one free copy of their credit report from each of the three major credit reporting bureaus. Each of those bureaus has separate web pages to visit to order a report. Consumers can also call toll-free to (877) 322-8228.
The rollout of these additional states is timely, given ChoicePoint's admission this month that it had improperly sold data about 140,000 consumers to improper individuals. "Knowledge is power,” said Norman Garcia, Senior Attorney for Consumers Union’s West Coast Office. “Obtaining and reviewing your credit report is an important step in protecting yourself from errors and identity theft and maintaining a positive credit history.”
Wednesday, February 23, 2005
Bissell Recalls 750,000 Vacuums, Electrick Shock Threat Prominent
Bissell Homecare has announced the recall of 750,000 vacuum cleaners because consumers can be shocked by the unit's upper metal handle. The company and the federal government have requested that any consumers owning the units immediately stop using them.
The affected units were sold between 2001 and 2004. The model names and numbers are:
PowerLifter® Plus (model number 1620)
PowerSteamer® ClearView® (model numbers 1692, 1692-1, 1692-R)
Power Steamer® (model numbers 1685, 1693, 1693-R, 1693-W, 1694, 1694-1, 1694-R)
Power Lifter® (model number 1694-3)
Rubbermaid X-tra-Lift™ (model 9E00)
Consumers can call toll-free to (866) 860-2392 between 8:00 a.m. and 5:00 p.m. eastern time on weekdays to learn the location of the nearest service center. That service center will inspect the vacuum and make any necessary repairs for free. Bissell's web site states that units with the marking "INSPECTED" on or near the label are note affected.
"I'm concerned that no compensation is being given to people who have to drive long distances to have a defective product repaired," said Consumer Help Web President Joan Bounacos. "We checked for service centers in major metropolitan locations and found that a 30 or 40 minute roundtrip was common. This isn't like an automotive recall with a network of dealerships nationwide. Not compensating the consumer for the time and trouble to visit a Bissell service center is just bad business and disrepectful to consumers."
Bissell Homecare has announced the recall of 750,000 vacuum cleaners because consumers can be shocked by the unit's upper metal handle. The company and the federal government have requested that any consumers owning the units immediately stop using them.
The affected units were sold between 2001 and 2004. The model names and numbers are:
PowerLifter® Plus (model number 1620)
PowerSteamer® ClearView® (model numbers 1692, 1692-1, 1692-R)
Power Steamer® (model numbers 1685, 1693, 1693-R, 1693-W, 1694, 1694-1, 1694-R)
Power Lifter® (model number 1694-3)
Rubbermaid X-tra-Lift™ (model 9E00)
Consumers can call toll-free to (866) 860-2392 between 8:00 a.m. and 5:00 p.m. eastern time on weekdays to learn the location of the nearest service center. That service center will inspect the vacuum and make any necessary repairs for free. Bissell's web site states that units with the marking "INSPECTED" on or near the label are note affected.
"I'm concerned that no compensation is being given to people who have to drive long distances to have a defective product repaired," said Consumer Help Web President Joan Bounacos. "We checked for service centers in major metropolitan locations and found that a 30 or 40 minute roundtrip was common. This isn't like an automotive recall with a network of dealerships nationwide. Not compensating the consumer for the time and trouble to visit a Bissell service center is just bad business and disrepectful to consumers."
Tuesday, February 22, 2005
ChoicePoint Reveals Details Of Improperly Sold Data
ChoicePoint, the information services company that admitted selling personal data about 140,000 consumers, has announced the timeline of this matter.
According to a company statement, they were first aware of the potential for improper release of information in October 2004 and notified local law enforcement, the Los Angeles County Sheriff's Department. ChoicePoint states that they were asked to not disclose any information regarding this matter because of a criminal investigation. The company was allowed to begin contacting customers in January 2005. By then, law enforcement had identified 750 consumer victims of identity theft that were linked to this release of information.
The price of ChoicePoint stock has dropped 10% since the company announced the information's release. Since then, ChoicePoint has released a table showing that the release impacted consumers in every state. The company has also pledged to increase its investigation of companies attempting to purchase consumer data.
On Friday, Consumer Help Web published a list of tips for consumers who become the victim of identity theft.
ChoicePoint, the information services company that admitted selling personal data about 140,000 consumers, has announced the timeline of this matter.
According to a company statement, they were first aware of the potential for improper release of information in October 2004 and notified local law enforcement, the Los Angeles County Sheriff's Department. ChoicePoint states that they were asked to not disclose any information regarding this matter because of a criminal investigation. The company was allowed to begin contacting customers in January 2005. By then, law enforcement had identified 750 consumer victims of identity theft that were linked to this release of information.
The price of ChoicePoint stock has dropped 10% since the company announced the information's release. Since then, ChoicePoint has released a table showing that the release impacted consumers in every state. The company has also pledged to increase its investigation of companies attempting to purchase consumer data.
On Friday, Consumer Help Web published a list of tips for consumers who become the victim of identity theft.
Friday, February 18, 2005
Consumer Data Improperly Sold, Thousands At Risk Of Identity Theft
Information services company ChoicePoint admitted this week that they sold data to various entitities posing as legitimate businesses. More than 140,000 records containing "consumers’ names, addresses, Social Security numbers and credit reports" may have been improperly released, putting those consumers at risk for identity theft.
California is the only state that currently requires companies notify consumers if Social Security numbers or similar information is impropely released, but a group of state Attorney Generals have written ChoicePoint and urged the company to do the same for consumers in their states. Officials from the following states signed that letter: Alaska, Arizona, Connecticut, Florida, Idaho, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Ohio, Oregon, New York, North Carolina, North Dakota, South Dakota, Vermont and Washington. The company has agreed to notify all impacted consumers and cites law enforcement requests for the delay in releasing the information.
If you are a victim of identity theft, the federal government advises taking the following steps:
Information services company ChoicePoint admitted this week that they sold data to various entitities posing as legitimate businesses. More than 140,000 records containing "consumers’ names, addresses, Social Security numbers and credit reports" may have been improperly released, putting those consumers at risk for identity theft.
California is the only state that currently requires companies notify consumers if Social Security numbers or similar information is impropely released, but a group of state Attorney Generals have written ChoicePoint and urged the company to do the same for consumers in their states. Officials from the following states signed that letter: Alaska, Arizona, Connecticut, Florida, Idaho, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Ohio, Oregon, New York, North Carolina, North Dakota, South Dakota, Vermont and Washington. The company has agreed to notify all impacted consumers and cites law enforcement requests for the delay in releasing the information.
If you are a victim of identity theft, the federal government advises taking the following steps:
- Contact the fraud departments of the three major credit bureaus.
Request that a “fraud alert” be placed on your file and include a statement that creditors must get your permission before any new accounts are opened in your name. Get a copy of your credit report from each credit bureau so that you can dispute any inaccurate information. Check your reports at least every six months.The three major credit bureaus are:
Equifax
Order Credit Report: 800-685-1111
Report Fraud: 800-525-6285
www.equifax.comExperian
Order Credit Report: 888-397-3742
Report Fraud: 888-397-3742
www.experian.comTrans Union
Order Credit Report: 800-888-4213
Report Fraud: 800-680-7289
www.tuc.com - Contact all the creditors involved.
Let them know that your accounts may have been used without your permission, or that new accounts have been opened in your name. If your accounts have been used fraudulently, ask that new cards and account numbers be issued to you. Check your billing statements carefully and report any fraudulent activity immediately. Many banks and creditors will accept the “ID Theft Affidavit” available at www.consumer.gov/idtheft, to dispute the fraudulent charges.
- File a police report.
Get a copy of the report to submit to your creditors and others that may require proof of a crime.
- Contact the Federal Trade Commission.
The FTC provides useful information to identity theft victims and maintains a database of identity theft cases for use by law enforcement agencies. File a report with the FTC by calling the FTC’s Identity Theft Hotline: 1-877-IDTHEFT (438-4338); by mail, Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington DC 20580; or online at www.consumer.gov/idtheft. Also request a copy of the publication, ID Theft, When Bad Things Happen to Your Good Name.
- Keep a record of your contacts.
Start a file with copies of your credit reports, the police report, any correspondence, and copies of disputed bills. It is also useful to keep a log of your conversations with creditors, law enforcement officials, and other relevant parties. Follow up all phone calls in writing and send all correspondence certified, return receipt requested.
Wednesday, February 16, 2005
IPO Suit Wins Approval, But Consumers Will See Pennies Per Share
US District Judge Shira Scheindlin has issued an order giving approval of a unique pooled settlement of $1 billion in a class action suit filed against nearly 300 startup companies and 55 investment banks.
The suit claims that the banks artificially inflated the share price of companies that were brought public. If the class representing the investors in those stocks receive payment of $1 billion as a class, the companies will have to pay nothing. Any difference between the banks' settlement and $1 billion must be made up by a pool of the companies involved.
Judge Scheindlin, a 1994 appointee of then-President Clinton, noted in her opinion that "the average per-share recovery across all 298 class actions is $0.087 per share." She also remarked that the range of recovery ranges from very small ($0.002 per share for CNet) to larger ($0.507 for McAfee.com).
Even investors in McAfee, the largest per share settlement noted, will receive relatively little compensation. Shares of McAfee (MFE) were trading at approximately $25 each when Judge Scheindlin released her opinion. The company, which does not pay a dividend, has earned $1.36 per share over the past twelve months, representing $229 million in net income.
US District Judge Shira Scheindlin has issued an order giving approval of a unique pooled settlement of $1 billion in a class action suit filed against nearly 300 startup companies and 55 investment banks.
The suit claims that the banks artificially inflated the share price of companies that were brought public. If the class representing the investors in those stocks receive payment of $1 billion as a class, the companies will have to pay nothing. Any difference between the banks' settlement and $1 billion must be made up by a pool of the companies involved.
Judge Scheindlin, a 1994 appointee of then-President Clinton, noted in her opinion that "the average per-share recovery across all 298 class actions is $0.087 per share." She also remarked that the range of recovery ranges from very small ($0.002 per share for CNet) to larger ($0.507 for McAfee.com).
Even investors in McAfee, the largest per share settlement noted, will receive relatively little compensation. Shares of McAfee (MFE) were trading at approximately $25 each when Judge Scheindlin released her opinion. The company, which does not pay a dividend, has earned $1.36 per share over the past twelve months, representing $229 million in net income.
Tuesday, February 15, 2005
Consumer Help Web Gets Results For Consumer With Lost Baggage: CASE STUDY
Celina W. is a consumer who lives in Miami and visited Honduras in December 2003 using a small, regional airline.
As happens sometimes, the airline lost her luggage. Statistics regarding lost baggage claims are difficult to come by at either the Bureau of Transportation Statistics (BTS) or the Federal Aviation Administration. BTS data is available on a voluntary reporting basis through 2003 for large carriers on direct flights. Between 1990 and 2003, the number of reports about mishandled baggage per 1,000 passengers ranges between 3.84 and 6.73. The number is trending downward, but still remains a significant problem for airlines and an annoyance that can ruin a trip for consumers.
Celina's luggage was lost on an international flight, which typically has higher liability limits, but comes with restrictions. For example, passengers are typically required to report lost or damaged luggage within 24 hours, but airlines are not required to make restitution within any time limit. Each airline's "Contract of Carriage", the fine print accompanying the ticket or displayed on the web site, spells out the airline's commitments and responsibilities.
After reporting her luggage lost in December 2003, Celina was told that she would be reimbursed and "not to worry". A smart consumer, Celina logged her calls to the airline's customer service department and even noted the name of the customer service representative she spoke with.
That information proved invaluable when Celina still had no resolution after 10 months. She contacted Consumer Help Web and placed an order for the company's Complaint Resolution Service for only $14.99. A consumer advocate wrote the airline on October 25, the day Celina's complaint was received and was forced to write again several weeks later. Finally, after Consumer Help Web and Celina were ready to give up, the company contacted her to resolve the problem.
"It took nearly a year for the company to resolve this issue," notes Consumer Help Web president Joan Bounacos. "This woman persistently contacted them and even hired our consumer advocacy company to get results. We believe that airlines should be held to similar standards as consumers and be required to resolve any lost baggage claims within a set time period."
As for Celina, she reports that the airline has made good so that score is settled. With resolution in hand, her family retained Consumer Help Web again in January to attempt to obtain a refund from a vocational school that refused to cancel a contract after making sales claims that appear to be inaccurate.
"We get lots of repeat business," says Bounacos. "Once people learn that we can help them for only $14.99, they quicly sign up. With busy lives and time consuming efforts needed to solve some cases, it often pays to hire a professional if the company is unresponsive."
Celina W. is a consumer who lives in Miami and visited Honduras in December 2003 using a small, regional airline.
As happens sometimes, the airline lost her luggage. Statistics regarding lost baggage claims are difficult to come by at either the Bureau of Transportation Statistics (BTS) or the Federal Aviation Administration. BTS data is available on a voluntary reporting basis through 2003 for large carriers on direct flights. Between 1990 and 2003, the number of reports about mishandled baggage per 1,000 passengers ranges between 3.84 and 6.73. The number is trending downward, but still remains a significant problem for airlines and an annoyance that can ruin a trip for consumers.
Celina's luggage was lost on an international flight, which typically has higher liability limits, but comes with restrictions. For example, passengers are typically required to report lost or damaged luggage within 24 hours, but airlines are not required to make restitution within any time limit. Each airline's "Contract of Carriage", the fine print accompanying the ticket or displayed on the web site, spells out the airline's commitments and responsibilities.
After reporting her luggage lost in December 2003, Celina was told that she would be reimbursed and "not to worry". A smart consumer, Celina logged her calls to the airline's customer service department and even noted the name of the customer service representative she spoke with.
That information proved invaluable when Celina still had no resolution after 10 months. She contacted Consumer Help Web and placed an order for the company's Complaint Resolution Service for only $14.99. A consumer advocate wrote the airline on October 25, the day Celina's complaint was received and was forced to write again several weeks later. Finally, after Consumer Help Web and Celina were ready to give up, the company contacted her to resolve the problem.
"It took nearly a year for the company to resolve this issue," notes Consumer Help Web president Joan Bounacos. "This woman persistently contacted them and even hired our consumer advocacy company to get results. We believe that airlines should be held to similar standards as consumers and be required to resolve any lost baggage claims within a set time period."
As for Celina, she reports that the airline has made good so that score is settled. With resolution in hand, her family retained Consumer Help Web again in January to attempt to obtain a refund from a vocational school that refused to cancel a contract after making sales claims that appear to be inaccurate.
"We get lots of repeat business," says Bounacos. "Once people learn that we can help them for only $14.99, they quicly sign up. With busy lives and time consuming efforts needed to solve some cases, it often pays to hire a professional if the company is unresponsive."
Monday, February 14, 2005
GM Recalls 200,000 Vehicles
General Motors and the National Highway Traffic Safety Administration (NHTSA) have issued two safety recalls for more than 200,000 vehicles.
The largest, covering 150,000 vehicles, involves brake assemblies for the 2004 and 2005 model years for the following vehicles:
General Motors and the National Highway Traffic Safety Administration (NHTSA) have issued two safety recalls for more than 200,000 vehicles.
The largest, covering 150,000 vehicles, involves brake assemblies for the 2004 and 2005 model years for the following vehicles:
- CHEVROLET / AVALANCHE
- CHEVROLET / EXPRESS
- CHEVROLET / KODIAK
- CHEVROLET / SILVERADO
- CHEVROLET / SUBURBAN
- GMC / SAVANA
- GMC / SIERRA
- GMC / TOPKICK
- GMC / YUKON XL
- HUMMER / H2
The second recall is for 20,000 model year 2004 cars regarding the accelerator pedal assembly. The vehicles being recalled are:
- CADILLAC / SRX
- CADILLAC / XLR
- PONTIAC / GRAND PRIX
In both situations, consumers can call NHTSA's toll-free Auto Safety Hotline at 1-888-327-4236 for more information.
Friday, February 11, 2005
Consumer Group Loses Product Placement Request
A request that could have limited advertisers' ability to place products in television shows without regulation was rejected yesterday by the Federal Trade Commission (FTC). The 2003 request was made by Commercial Alert, a consumer advocacy group based in Oregon and founded by Ralph Nader.
The 17 page September 30, 2003 letter to the FTC referred to "product placements" as embedded advertising and "stealth advertising" and asked the FTC to determine whether product placements should be disclosed as advertisements.
In a written response yesterday, Mary K. Engle, the Commission's Associate Director for Advertising Practices, stated that "...there may be instances in which the line between advertising and programming may be blurred...", but concluded "...existing statutory and regulatory framework provides sufficient tools for challenging any such deceptive acts or practices."
“Today, the FTC has essentially endorsed the deceptive and dishonest practices of the product placement industry, and turned its back on children who are suffering from an epidemic of marketing-related diseases like obesity and type 2 diabetes,” responded Gary Ruskin, executive director of Commercial Alert
A Penn State study partially support the concept that product placement were more effective at "increasing positive brand attitudes" and increasing recognition and recall of featured products. The 2000 study was presented at the 50th conference of the International Communication Association.
More recently, a Washington Post profile of public relations agent Jonathan Cheban showed the secrets behind how product placement for products like Evian water work. The article quotes Cheban as saying, "We're not tricking anybody...It's a service for consumers because they want to know. Average people want to know what's hot. And I only will do things that are classy and high-end."
The same paper reported the next day that Cheban was banned from VH-1's The Fabulous Life. The article quoted a VH-1 spokesperson as saying, "The network had no idea that there was any connection between Evian water and Jonathan Cheban. We're not going to be booking him in the future."
A request that could have limited advertisers' ability to place products in television shows without regulation was rejected yesterday by the Federal Trade Commission (FTC). The 2003 request was made by Commercial Alert, a consumer advocacy group based in Oregon and founded by Ralph Nader.
The 17 page September 30, 2003 letter to the FTC referred to "product placements" as embedded advertising and "stealth advertising" and asked the FTC to determine whether product placements should be disclosed as advertisements.
In a written response yesterday, Mary K. Engle, the Commission's Associate Director for Advertising Practices, stated that "...there may be instances in which the line between advertising and programming may be blurred...", but concluded "...existing statutory and regulatory framework provides sufficient tools for challenging any such deceptive acts or practices."
“Today, the FTC has essentially endorsed the deceptive and dishonest practices of the product placement industry, and turned its back on children who are suffering from an epidemic of marketing-related diseases like obesity and type 2 diabetes,” responded Gary Ruskin, executive director of Commercial Alert
A Penn State study partially support the concept that product placement were more effective at "increasing positive brand attitudes" and increasing recognition and recall of featured products. The 2000 study was presented at the 50th conference of the International Communication Association.
More recently, a Washington Post profile of public relations agent Jonathan Cheban showed the secrets behind how product placement for products like Evian water work. The article quotes Cheban as saying, "We're not tricking anybody...It's a service for consumers because they want to know. Average people want to know what's hot. And I only will do things that are classy and high-end."
The same paper reported the next day that Cheban was banned from VH-1's The Fabulous Life. The article quoted a VH-1 spokesperson as saying, "The network had no idea that there was any connection between Evian water and Jonathan Cheban. We're not going to be booking him in the future."
Thursday, February 10, 2005
Consumer Alert - $2 Billion In Tax Refunds To Be Forfeited
The Internal Revenue Service (IRS) reports that more than 1.7 million taxpayers are due more than $2 billion in federal income tax refunds for 2001.
The IRS estimates that half of those who could claim refunds would receive more than $484. In some cases, individuals had taxes withheld from their wages or made payments against their taxes out of self-employed earnings but had too little income to require filing a tax return. Some taxpayers may also be eligible for the refundable Earned Income Tax Credit.
“The window is closing for 2001 refunds,” IRS Commissioner Mark W. Everson said. “As soon as you send us your tax return, you’ll get your money. But if you don’t file, you won’t get anything.”
When no tax return is filed, Everson's office states that federal law allows the money to revert to the federal government after a three year period. The agency posted a list of tax refunds due by state and has embarked upon a massive public relations campaign to reunite taxpayers with their refunds.
For additional help, consumers can also call the IRS toll-free help line at 1-800-829-1040.
The Internal Revenue Service (IRS) reports that more than 1.7 million taxpayers are due more than $2 billion in federal income tax refunds for 2001.
The IRS estimates that half of those who could claim refunds would receive more than $484. In some cases, individuals had taxes withheld from their wages or made payments against their taxes out of self-employed earnings but had too little income to require filing a tax return. Some taxpayers may also be eligible for the refundable Earned Income Tax Credit.
“The window is closing for 2001 refunds,” IRS Commissioner Mark W. Everson said. “As soon as you send us your tax return, you’ll get your money. But if you don’t file, you won’t get anything.”
When no tax return is filed, Everson's office states that federal law allows the money to revert to the federal government after a three year period. The agency posted a list of tax refunds due by state and has embarked upon a massive public relations campaign to reunite taxpayers with their refunds.
For additional help, consumers can also call the IRS toll-free help line at 1-800-829-1040.
Wednesday, February 09, 2005
Another Ford Recall
Several weeks after recalling a significant portion of its truck line for those vehicles' potential to cause a fire, Ford Motor Company is recalling 350,000 Focuses. The company states that the rear door latches may corrode and eventually malfunction, causing them to improperly close.
The conmpany plans to begin notifying customers March 1 and stated that dealers will replace corroded latches and clean and lubricate others.
Several weeks after recalling a significant portion of its truck line for those vehicles' potential to cause a fire, Ford Motor Company is recalling 350,000 Focuses. The company states that the rear door latches may corrode and eventually malfunction, causing them to improperly close.
The conmpany plans to begin notifying customers March 1 and stated that dealers will replace corroded latches and clean and lubricate others.
Tuesday, February 08, 2005
USPS Targets Work At Home Scams
"Make big $$$ working from home. Earn$50 to $200 /hour in the comfort of your home!" You've seen the ads innewspapers, on flyers stapled to telephone poles, and on the Internet. Theysound great. In fact, working at home has become more attractive than ever asstay-at-home moms, college students, and retirees look for new ways to earn extra money. But be wary of these offers, warn U.S. Postal Inspectors. There are some genuine job opportunities, but too many don't deliver on their promises.
During National Consumer Protection Week, Postal Inspectors and the PostalService's Consumer Advocate are joining other federal, state, and local consumer-protection agencies to educate the public about ways to avoid becoming victims of fraud. This year's postal message is "Work-at-Home Scams:They Just Don't Pay."
Chief Postal Inspector Lee R. Heath says, "With so many Americans interested in working at home, it should come as no surprise that job scams have grown in popularity -- but too many offers not only don't pay, they cost victims thousands of dollars."
According to the Postal Service's Consumer Advocate Mike Spates, job seekers should do some homework before accepting a work-at-home offer. "Our goal is to educate consumers so we can reduce their chances of falling victim to work-at-home scams," says Spates.
Postal Inspectors report the most common work-at-home scam is envelope stuffing. The ads promise you money in return for stuffing envelopes at home. But Postal Inspectors say that none of the promotions they've seen pay off as promised. The newest scam is reshipping fraud. Work-at-home shippers are promised substantial amounts of money -- all they have to do is receive, repackage, and then mail merchandise to a foreign address. What the shipper doesn't know is that the merchandise was paid for with stolen credit cards. In effect, the work-at-home shipper becomes part of a fencing operation by receiving and mailing stolen goods. Reports to date indicate the scam has cost victims thousands of dollars, but as long as the ads appear, people unaware of the fraud continue to respond.
Other work-at-home jobs may involve product assembly, craft work, and multi-level marketing. Some ask victims to front money for products or more detailed instructions. Others require that you recruit other people to do thework -- which continues the fraud. Postal Inspectors encourage consumers to closely examine offers beforeresponding. They offer these protection tips:
* Don't give out personal information to a person or company you don't know.
* Be suspicious of any offer that doesn't pay a regular salary or involves an overseas company.
* Check out the company with the Federal Trade Commission, the Better Business Bureau, state Attorney General, or your local consumer protection agency.
"Be smart," says Chief Inspector Heath. "There is no easy way to wealth. If the offer sounds too good to be true, it probably is." For more than 225 years, the U.S. Mail has been one of the safest and most efficient ways for Americans to do business. The Postal Inspection Service works to maintain that trust. Last year, the Postal Inspection Service received 82,000 complaints from people who believed they were defrauded by offers received in the mail. During the same period, Postal Inspector sarrested 1,446 suspects for mail fraud. For more information on fraud or to order the free DVD, Work at Home Scams, visit http://www.usps.com/postalinspectors.
"Make big $$$ working from home. Earn$50 to $200 /hour in the comfort of your home!" You've seen the ads innewspapers, on flyers stapled to telephone poles, and on the Internet. Theysound great. In fact, working at home has become more attractive than ever asstay-at-home moms, college students, and retirees look for new ways to earn extra money. But be wary of these offers, warn U.S. Postal Inspectors. There are some genuine job opportunities, but too many don't deliver on their promises.
During National Consumer Protection Week, Postal Inspectors and the PostalService's Consumer Advocate are joining other federal, state, and local consumer-protection agencies to educate the public about ways to avoid becoming victims of fraud. This year's postal message is "Work-at-Home Scams:They Just Don't Pay."
Chief Postal Inspector Lee R. Heath says, "With so many Americans interested in working at home, it should come as no surprise that job scams have grown in popularity -- but too many offers not only don't pay, they cost victims thousands of dollars."
According to the Postal Service's Consumer Advocate Mike Spates, job seekers should do some homework before accepting a work-at-home offer. "Our goal is to educate consumers so we can reduce their chances of falling victim to work-at-home scams," says Spates.
Postal Inspectors report the most common work-at-home scam is envelope stuffing. The ads promise you money in return for stuffing envelopes at home. But Postal Inspectors say that none of the promotions they've seen pay off as promised. The newest scam is reshipping fraud. Work-at-home shippers are promised substantial amounts of money -- all they have to do is receive, repackage, and then mail merchandise to a foreign address. What the shipper doesn't know is that the merchandise was paid for with stolen credit cards. In effect, the work-at-home shipper becomes part of a fencing operation by receiving and mailing stolen goods. Reports to date indicate the scam has cost victims thousands of dollars, but as long as the ads appear, people unaware of the fraud continue to respond.
Other work-at-home jobs may involve product assembly, craft work, and multi-level marketing. Some ask victims to front money for products or more detailed instructions. Others require that you recruit other people to do thework -- which continues the fraud. Postal Inspectors encourage consumers to closely examine offers beforeresponding. They offer these protection tips:
* Don't give out personal information to a person or company you don't know.
* Be suspicious of any offer that doesn't pay a regular salary or involves an overseas company.
* Check out the company with the Federal Trade Commission, the Better Business Bureau, state Attorney General, or your local consumer protection agency.
"Be smart," says Chief Inspector Heath. "There is no easy way to wealth. If the offer sounds too good to be true, it probably is." For more than 225 years, the U.S. Mail has been one of the safest and most efficient ways for Americans to do business. The Postal Inspection Service works to maintain that trust. Last year, the Postal Inspection Service received 82,000 complaints from people who believed they were defrauded by offers received in the mail. During the same period, Postal Inspector sarrested 1,446 suspects for mail fraud. For more information on fraud or to order the free DVD, Work at Home Scams, visit http://www.usps.com/postalinspectors.
Monday, February 07, 2005
Identity Theft Protection, Awareness Kick Off National Consumer Protection Week
National Consumer Protection Week, a federal initiative to educate and assist consumers, began February 6 and runs through February 12.
Identity Theft is the 2005 theme. A coalition of state and federal agencies as well as non-profits dedicated to consumers have put together a wonderful web page that teaches consumers how to avoid identity theft as well as presenting resources for victims. Many of the pages are also translated into Spanish.
The Federal Trade Commission received more than 200,000 reports of identify theft during 2004. The problem is no longer an isolated occurrence, but occurs in every state every day. You can help protect yourself by viewing this site and putting into practice the tips and hints provided.
National Consumer Protection Week, a federal initiative to educate and assist consumers, began February 6 and runs through February 12.
Identity Theft is the 2005 theme. A coalition of state and federal agencies as well as non-profits dedicated to consumers have put together a wonderful web page that teaches consumers how to avoid identity theft as well as presenting resources for victims. Many of the pages are also translated into Spanish.
The Federal Trade Commission received more than 200,000 reports of identify theft during 2004. The problem is no longer an isolated occurrence, but occurs in every state every day. You can help protect yourself by viewing this site and putting into practice the tips and hints provided.
Thursday, February 03, 2005
Consumers May Pay More As Fed Raises Rate
The Federal Reserve's Open Market Committee yesterday increased the interest rate banks charge each other for overnight loans from 2.25% to 2.5%. Many banks have responded by increasing the prime rate they charge business customers, and that has an impact on many consumer rates.
"Financial obligations like credit card rates tied to the prime rate should result in increased consumer rates within one billing cycle," predicts Consumer Help Web president Joan Bounacos. "These rates have been at historic lows for so long that many consumers may not have factored the cost of carrying loans into their budgets. Now is the time to start planning because most economists are forecasting that rates will continue to increase slowly."
A report in today's Washington Post predicts "...the Fed[eral Reserve will raise the rate again by a quarter-point at each of the next two scheduled meetings, in March and May." The paper also states that economists believe that the rate could rise an additional 1.5 percentage points during 2005.
The Federal Reserve's Open Market Committee yesterday increased the interest rate banks charge each other for overnight loans from 2.25% to 2.5%. Many banks have responded by increasing the prime rate they charge business customers, and that has an impact on many consumer rates.
"Financial obligations like credit card rates tied to the prime rate should result in increased consumer rates within one billing cycle," predicts Consumer Help Web president Joan Bounacos. "These rates have been at historic lows for so long that many consumers may not have factored the cost of carrying loans into their budgets. Now is the time to start planning because most economists are forecasting that rates will continue to increase slowly."
A report in today's Washington Post predicts "...the Fed[eral Reserve will raise the rate again by a quarter-point at each of the next two scheduled meetings, in March and May." The paper also states that economists believe that the rate could rise an additional 1.5 percentage points during 2005.
Wednesday, February 02, 2005
FTC Releases Complaint Data By City, Type
The Federal Trade Commission has released its annual report on identity theft and fraud. The federal agency acts as a clearinghouse for these complaints, channeling them to local authorities as appropriate.
More than 38% of 635,173 complaints received during 2004 dealt with identity theft, the theme of next week's National Consumer Protection Week. The three major cities were identity theft was highest per capita were Phoenix, Riverside-San Bernadino-Ontario, CA and Las Vegas.
The government agency's report also broke down more than 300,00 fraud complaints into the following categories:
The Federal Trade Commission has released its annual report on identity theft and fraud. The federal agency acts as a clearinghouse for these complaints, channeling them to local authorities as appropriate.
More than 38% of 635,173 complaints received during 2004 dealt with identity theft, the theme of next week's National Consumer Protection Week. The three major cities were identity theft was highest per capita were Phoenix, Riverside-San Bernadino-Ontario, CA and Las Vegas.
The government agency's report also broke down more than 300,00 fraud complaints into the following categories:
- Internet Auctions - 16 percent
- Shop-at-Home/Catalog Sales - 8 percent
- Internet Services and Computer Complaints - 6 percent
- Foreign Money Offers - 6 percent
- Prizes/Sweepstakes and Lotteries - 5 percent
- Advance-Fee Loans and Credit Protection - 3 percent
- Business Opportunities and Work-at-Home - 2 percent
- Telephone Services - 2 percent
- Other (miscellaneous) - 12 percent
Tuesday, February 01, 2005
IRS Allowing 2004 Deductions for January 2005 Tsunami Charity
The Internal Revenue Service has announced that charitable deductions made for tsunami relief efforts in January 2005 are tax-deductible for 2004.
As tax season approaches, remember that you can deduct on your 2004 federal taxes any "charitable donations made during Jan. 2005 for relief of the victims of the Indian Ocean Tsunami".
The IRS originally released this bulletin to encourage more giving, but it is a good reminder as tax season starts.
The Internal Revenue Service has announced that charitable deductions made for tsunami relief efforts in January 2005 are tax-deductible for 2004.
As tax season approaches, remember that you can deduct on your 2004 federal taxes any "charitable donations made during Jan. 2005 for relief of the victims of the Indian Ocean Tsunami".
The IRS originally released this bulletin to encourage more giving, but it is a good reminder as tax season starts.
