Short Sale - Not As Easy As It Sounds
August 8, 2008
“Short sales” of homes are great deals, right? Well, not always.
A “short sale” is a desperate act by a seller that also requires a bank to accept some misery. The seller paid more for the home and the bank lent more than what the property is now worth. The seller is desperately trying to avoid foreclosure and hopes the bank will agree to cut its losses and accept less than what is owed on its mortgage. The buyer hopes to grab the property at a bargain. That might be wishful thinking. It sometimes happens, but not without patience and not at the bargain basement price the buyer typically expects.
Skyrocketing Price of Platinum Causing Skyrocketing Theft of Catalytic Converters
August 5, 2008
In 2008 the theft of catalytic converters has been increasing at an alarming rate. Catalytic converters have been standard equipment on cars since the 70’s. Today some vehicles have as many as four converters. So why the sudden increase in theft? The answer is the price of platinum.
Five years ago platinum was going for about $600 per ounce. In 2008 the price of platinum soared to $2,200 per ounce and now stands around $1,700 per ounce - and there is platinum in that converter. In fact there is enough platinum to make each stolen converter worth as much as $200 on the black market.
An experienced thief can remove a converter in less than 2 minutes. Unfortunately, the repair cost to the owner can run as high as $1,000 depending on how much damage was caused during the theft. The converters are usually sawed off with a battery powered saw. Bold thieves do not even bother to steal the car, but actually crawl under vehicles that are parked in remote lots and begin sawing.
The AAA reports that sport-utility vehicles and pickup trucks are the prime targets. SUVs and pickups are higher off the ground, so it is easier to crawl under them to cut off the converters. Criminals tend to be lazy types. 
Toyota 4Runners are particular targets because a thief can remove the converter with just a socket wrench, and their converters contain plenty of platinum.
There are products on the market that make it more difficult to steal a converter, such as the CatClamp. However, the price of the protective cage goes for around $225. The best protection is to avoid remote parking lots. However, the permanent solution will come from the automobile industry. Collectively automakers spent about $2 billion dollars a year on platinum and in an effort to cut costs are searching for ways to reduce the need for platinum. Mazda has created a catalytic converter that uses 70 to 90 percent less platinum making the converter worthless on the black market.
San Diego sues Bank of America to halt foreclosures
July 24, 2008
SAN DIEGO (Reuters) - San Diego’s city attorney said on Wednesday he filed a lawsuit against Bank of America Corp and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in the city, which he aims to make a “foreclosure sanctuary.”
Motorcycle Fatalities At 9-Year High, And The Cause Might Surprise You
July 23, 2008
Higher gas prices are leading to higher motorcycle sales. In 1997 there were 356,000 motorcycles sold. In 2006 there were 1.1 million motorcycles sold. In the same time frame motorcycle fatalities rose nationally from 2,110 to 4,810.
Nationally passenger car fatalities are at a 15-year low, but motorcycle fatalities are at a 9-year high. The Governors Highway Safety Association (GHSA) recently released a comprehensive report on motorcycle safety, and while wearing a helmet is always important, the main cause for the sudden increase in motorcycle fatalities appears to be a lack of proper training for new riders.
AAA found that improper driving skills were a factor in 51% of the crash fatalities involving motorcycles and that one in four motorcyclist involved in a fatal crash nationally did NOT have a valid license. Only 16 states mandate motorcycle training. If you are interested in your state GHSA has published a survey of State Safety Programs.
Bruce Gullifer of Hendersonville, North Carolina, has been riding motorcycles for more than 35 years. He just returned from a 40 day round trip from North Carolina to Alaska, and he says you can always spot the novice riders. They buy bikes that are too large, don’t pay attention to what they are doing, and are not dressed properly. Bruce has attended six advanced motorcycle training classes.
AAA Carolina recommends that motorcyclists:
1) Take a state approved education course for training on how to ride a motorcycle safely BEFORE getting on the highway.
2) Wear a helmet at all times, and be sure to replace broken down and worn helmets (14% of motorcycle riders use helmets that do not comply with Federal Motor Vehicle Safety Standards). State laws vary on wearing a helmet. If you are driving across the nation be sure you are legal.
Cell Phone Scams Target Unsuspecting Teenagers
July 18, 2008
Better check your cell phone bill. Especially if you have teenagers.
Cell phone companies are billing customers for ringtones, wallpaper, horoscopes and a variety of other services advertised as “free.”
The target? Unsuspecting teenagers.
Here’s how the scam works:
Glitzy web ads offer cash prizes or free ringtones to customers who provide their cell phone telephone number. There is absolutely no charge and a chance to win even more cash. At least that’s what it says in the regular size type that’s easy to read.
The tiny print outlining the “terms of service” tells a different story. The prize “service” is charged to your cellular phone and billed monthly with the cell phone carrier collecting a cut.
Not surprisingly, it’s tough to figure out what you’ve been charged for by looking at the bill. The charges often appear under headlines such as Direct Bill Charges, 3rd Party Downloadable Content, Premium SMS Messages, Premium Text Messages, M-Qube and M-blox.
AT&T – formerly Cingular – already has agreed to pay back consumers under a settlement with Florida Attorney General Bill McCollum. Check here to find out if you’re entitled to a refund.
The practice isn’t limited to AT&T. Verizon, Sprint, Alltel, Nextel and T-Mobile all are under investigation by McCollum’s CyberFraud Task Force, a special team the Attorney General put together to investigate internet scams. The investigation isn’t limited to cell phone carriers. His office already has busted two online marketing companies.
Want to protect yourself?
Call customer service and tell them to block all third party charges. The block keeps any company from billing your cell phone without your specific approval in advance.
10 Most Stolen Vehicles For 2007
July 17, 2008
You might be surprised which cars were the most stolen by thieves last year. The National Insurance Crime Bureau just came out with its list for 2007 and only 2 vehicles on the list were late models. The reason older models are targeted is simple. The value in stolen vehicles is replacement parts.
The list of most stolen vehicles for 2007:
1. 1995 Honda Civic
2. 1991 Honda Accord
3. 1989 Toyota Camry
4. 1997 Ford F-150 pickup
5. 1994 Chevrolet C/K 1500 pickup
6. 1994 Acura Integra
7. 2004 Dodge Ram pickup
8. 1994 Nissian Sentra
9. 1988 Toyota pickup
10. 2007 Toyota Corolla
Consumer Reports has some helpful tips on how to avoid a theft, but I suspect that if you are reading this post you probably already incorporate these tips into your everyday life.
John Newcomer
Some Spam Can Be Hazardous To Your Health
July 14, 2008
Lately the spam for online prescriptions has been on the rise. Spam is always irritating, but this spam can actually be deadly. With the economy in a tailspin consumers may be tempted to use online pharmacies to save a few dollars. But beware — not all online pharmacies are legit.
Take for example the death of Marcia Bergeron of British Columbia. An autopsy revealed that at the time of her death she had in her body a sedative, an antidepressant, a muscle relaxant, high levels of aluminum, phosphorous, titanium, tin, arsenic and other heavy metals. An investigation of her computer revealed that she had been shopping online for medication and ended up with counterfeit drugs.
In some cases the pills ordered online contain sugar, cement or other placebos. On occasion the correct drug is used but not the correct dosage. Some online medicines have been found to actually contain dangerous chemicals such as the ones that Marcia Bergeron ingested.
The problem has become so prevalent that last year the FDA issued a warning about purchasing medicine online.
To be sure there are many safe, reputable, and cost saving online pharmacies. The challenge is separating safe Web sites from unsafe Web sites. To protect yourself follow these 4 Don’ts:
- Don’t buy from sites that sell prescription drugs without a prescription.
- Don’t buy from sites that offer to prescribe a medication for the first time without an exam by your doctor.
- Don’t buy from a site that does not have a licensed pharmacist to answer your questions.
- Don’t give any personal information, unless you are sure the Web site will keep your information private.
Luckily there is a very quick and easy way to insure the website is safe. You can be confident that an online pharmacy is safe if it is VIPPS® approved by the National Association of Boards of Pharmacy. Legitimate pharmacies that carry the VIPPS® seal are listed at www.vipps.info .
Finally, if in doubt, always ask your doctor or local pharmacist.
John Newcomer
Suit reinstated against Ford: Troubled engine used in later model
July 10, 2008
By Brett Barrouquere
Associated Press
– A federal appeals court has reinstated a lawsuit alleging that Ford used an earlier model engine known to have problems in its 2004 F-250 Series Super Duty trucks.
The 6th Circuit Court of Appeals in Cincinnati ruled yesterday that Kenneth E. Corder Sr. of Louisville could pursue the suit against Ford. The court split 2-1 in favor of Corder, finding that under the Kentucky Consumer Protection Act, Corder suffered an “ascertainable loss of money or property.”
“The engine in the 2003 F-250 truck was notorious for its deficiencies which were widely publicized, including ‘leaky fuel injectors, oil leaks, broken turbochargers, wiring harness troubles, faulty sensors, defective exhaust gas recirculation valves and bad computers,’ ” Judge William Schwarzer wrote for the panel.
Judge David McKeague said the two-judge majority misinterpreted Kentucky’s law as it applied to Corder’s case.
“Again, I believe the majority takes improper liberties with Kentucky law,” McKeague wrote.
Marcey Evans, a Ford spokeswoman in Detroit, said the company was disappointed.
“The company agrees with Judge McKeague that it is not misleading or deceptive not to inform car purchasers about the manufacturing history of vehicle components, and that the plaintiff in this case, who is satisfied with his properly performing vehicle, has suffered no loss. We believe that a jury is likely to reach these same conclusions as well,” Evans said.
Corder’s attorney, Robert Klein of Louisville, praised the ruling.
“I think the court made a very wise decision,” Klein said.
Corder sued the automaker in 2005, alleging Ford used a 2003 model engine in the 2004 F-250 Series Super Duty truck, but didn’t disclose to buyers that the earlier model engine was in the vehicle. Corder claims the 2003 engines were known to be faulty and he waited a year to buy the vehicle to avoid the 2003 model.
Klein said about 50,000 people bought the 2004 trucks with the older engines, making the case eligible to become a class-action lawsuit. A motion to certify it as a class-action was pending at the time the suit was dismissed. Klein said that motion will become active again.
Ford claimed there were no differences in the engine models and that different engines were produced for each new model truck year.
Corder produced enough evidence to show that different engines were installed in the 2004 trucks, Schwarzer wrote. Schwarzer, joined by Karen Nelson Moore, ruled that Corder presented enough evidence to show that a reasonable consumer would expect the newer engine in the 2004 truck and that Ford provided the older model.
The case returns to U.S. District Court in Louisville.
The Hidden Danger - New Old Tires
June 24, 2008
Have you ever gotten a great price on new tires and wondered how can this tire be new? Well the answer might be that you just purchased old but UNUSED tires. The problem is that tires, like any rubber product, degrade over time and could present a significant yet hidden safety risk regardless of tread depth. Read more
Produce The Note “How-To”
June 19, 2008
The Mortgage Meltdown
Fight Foreclosure: Make ‘Em Produce The Note!
Produce the Note - Steps To Follow:
Using the “produce the note” strategy is something all homeowners facing foreclosure can do. If you believe you’ve been treated unfairly, fight back. We have created templates for a legal request, a letter to your lender and a motion to compel to help you through the process. Read more
Banding Together and Fighting Back!
Get your Mortgage Crisis message to your State Attorneys General Office. Read more »CWN Contact Form
Want to contact one of our columnists, or send a message to the CWN staff? Click here »
Recalls and Product Safety News- Sony Recalls Notebook Computers Due to Burn Hazard
- Wolf Appliance Recalls Gas Ranges Due to Burn Hazard
- Pendants and Candle Charms Recalled Due to Risk of Lead Exposure
- Optave Inc. Recalls Action Baby Carriers Due to Fall Hazard
- Cordless Screwdrivers Recalled by Menards Due to Fire and Burn Hazards
- Worldwise Inc. Recalls Retractable Dog Leashes; Metal Clasp Can Break and Cause Facial and Body Injuries to Dog Owners
