I wish I had more time to do this every week, but here are some interesting tidbits I thought you savvy consumers shouldn't miss (which you probably didn't since you're all such sharp shoppers, right?).

United Airlines ditched attempts to merge with US Airways and create the world's largest carrier. While a merger might have helped both companies financially (or maybe not), the deal likely would have meant fewer routes and higher ticket prices for consumers.

D.C. Mayor Adrian M. Fenty and Ward 1 Councilman Jim Graham announced proposed legislation today to ban the use and sale of all consumer fireworks inthe District of Columbia, except those staged by professional pyrotechnics experts. I know fireworks are banned here in the city, but that hasn't stopped plenty of people in the neighborhoods I frequent from putting on a pretty good show of their own.

The Better Business Bureau of Greater Baltimore is warning online car shoppers that scammers have stolen the identity of a legitimate company, Global Payments Inc., in order to offer phony escrow services and defraud consumers out of thousands of dollars.  More than 50 victims have lost a total of $200,000 as the result of this single operation.

 

Here's a bonus:

Do you use antifreeze, coolants, solvents, cosmetics and pharmaceuticals, detergents, wastewater-treatment and disposable diapers? Get ready for some price increases. If you missed it, the print paper ran a story about Dow Chemical's decision to raise its prices by up to 20 percent to offset the soaring cost of energy. Dow Chemical points an angry finger at the nation's energy policymakers for failing to deal with rising energy costs over the years.

What would you do without these weekly tax rebate updates from the Treasury Department? Would your life feel incomplete? Would you not be able to go on? Would you feel a little tear?

I live to please you so here it is:

The Treas sent out 5.757 million economic stimulus payments to American households totaling $4.320 billion this week.

The grand total so far is 57.433 million total economic stimulus payments. That equals $50.041 billion pay-out.

Just so you know, the Treas says this week's numbers represent the near completion of all direct deposits, with the continued mailing of paper checks.

They're still working on completing the mailing of regular tax refund checks, and thus are not at full capacity for printing and mailing stimulus checks. In June, once the regular tax refund mailings are complete, Treasury will print and mail stimulus checks at full capacity and weekly volumes will increase.

PK, I have no idea what this means for you. I still don't know where your rebate is. Don't forget to let me know when you finally get it.

One of the worst financial ideas out there is the 401(k) debit card, which basically allows you tap your 401(k) like it was an ATM machine.

I wrote about this disturbing product in March. The story is posted below. 

The good news is that the card isn’t widespead – yet. But regulators are worried.

The Financial Industry Regulatory Authority – the industry group representing brokerages – issued an alert on the cards.

"Regardless of how easy it might be to do, borrowing against your retirement savings should be a last resort - and done only in emergency situations," says John Gannon, the group’s senior vice president for investor education, in a news release. "If a debit card is one of the options in your 401(k) plan, be mindful of the hazards that can come with using the card - from a smaller nest egg when you retire to a possible loan default that can deal a serious financial blow. Remember that with every swipe comes the real potential to wipe out a portion of your hard-earned retirement savings."

Money in a 401(k) is best left alone and allowed to grow. Even taking out a loan from a 401(k), which most plans allow, will leave you with a smaller nest egg than if you didn’t borrow at all. Sure, you pay that money back with interest. But you may go for years without that money invested and growing. Also, money goes into a 401(k) before taxes have been paid on it. You pay income tax on those dollars when you withdraw them iin retirement.

FINRA warns of a variety of reasons why debit card loans are bad. Fees are one of them. The other is double-taxation. Money goes into a 401(k) before taxes have been paid on it. You'll pay income tax on those dollars when you withdraw them in retirement. But when you borrow from a 401(k) using a debit card, you repay the short-term loan with money you've already been taxed on. Later, when you pull the money out in retirement, you'll pay taxes again on those dollars.

“This is double taxation that would not take place if you took out a conventional loan,” the group says.

So, if your employer offers a 401(k) debit card feature, just say, “No, thanks.”

  To improve retirement savings, we should be making it harder for workers to get their hands on 401(k) money -- not easier.

 

    Certainly not as easy as going to the ATM machine.But that's exactly what the 401(k) debit card by Reserve Solutions does.

 

    The ReservePlus card allows you -- with the 401(k) plan's approval, of course -- to tap retirement money by using the card at an ATM or to make purchases at merchants that accept Visa cards.

 

    This seems like a new way to sacrifice your future. A 401(k) is not just another savings account to use for shopping, vacations or other wants. Outside of Social Security, this is what many of us will be living on in our old age. Borrowing this money today -- and paying to do so -- means you will have less money in retirement.

 

    "This is an amazingly dumb idea. It shouldn't have a slow death; it should be a fast one," says Michael Scarborough, president of Scarborough Capital Management in Annapolis, which manages 401(k) accounts for workers.

 

    This is not the first attempt to combine plastic with a 401(k). Banc One Corp. in the mid-1990s proposed a 401(k) credit card. The outcry was immediate. Congress didn't like it. And Banc One backed off.

 

    The ReservePlus card has been out since 2003, but it has only recently appeared on the radar screen of financial experts who, like Scarborough, tend to pan it.

 

    Reserve Solutions is no longer commenting on its product. The company was founded by the Reserve, an asset manager that says it created the first money market fund in 1970.

 

    When Reserve Solutions was still granting interviews, director David Young told Advertising Age in an article this month: "All ReservePlus is doing is making the process to acquire [money] more convenient for both plan sponsor and participant." About 5,000 to 10,000 workers have signed up, he said. That's small given the tens of millions of workers enrolled in 401(k)s.

 

    Additionally, the company's Web site states, "Unlike traditional loan programs that immediately remove the entire line requested by you from your retirement investment account, ReservePlus keeps your money working for you within your retirement plan until the moment you access your loan line by debit card or check."

 

    The debit card has failed to gain any traction among industry players, says Rick Meigs, president of 401khelpcenter.com. "If it started to gain some traction, you would find a lot of people shouting it down, too," he says.

 

    It feels too much like "easy money," Meigs adds. "That bothers me."

 

    Workers can access 401(k) money through loans or hardship withdrawals and 22 percent of participants have outstanding loans, adds Pamela Hess, director of retirement research for Hewitt Associates.

 

    "That's very significant," she says. Employers and plan administrators, like Hewitt, aren't keen on making it even easier to tap a 401(k). "Adding a debit-card feature will ... detract from their retirement savings," Hess says.

 

    The ReservePlus debit card follows the same rules as regular 401(k) loans.

 

    With the card, though, money is moved out of investments and into a dividend-paying account within the plan. You may have to pay an annual fee and a set-up fee, depending on your plan -- in addition to interest on the loan. The rate will be the prime rate plus 2.9 percent. The prime rate interest is paid to your 401(k) account, but the 2.9 percent goes into the pockets of Reserve Solutions. So, you're paying nearly 3 percent to borrow your own money.

 

    You trigger a loan when you use the card and will receive monthly statements that show the minimum payment due. Defaults occur if you miss payments for three months, which can then trigger taxes and a penalty, according to the company's Web site.

 

    Granted, the ReservePlus card has a nice feature. Borrowers who leave their jobs don't have to quickly repay their debit withdrawals as they would do with a regular 401(k) loan. ReservePlus gives you up to five years from the day you took out the money to repay it, even if you switch jobs. That can save you from getting hit by taxes and an early-withdrawal penalty if you don't have the cash on hand.

 

    "Just think about how many people have lost those dollars because they can't pay [the loan] back," Meigs says.

 

    Employers typically allow loans, figuring workers would not contribute to the plan if their money was locked up for decades. But borrowing from a 401(k), whether through a loan or debit card, has some less visible costs.

 

    By borrowing, you pull money out of investments and lose the opportunity to reap potentially bigger gains in the market than on the interest you earn on the loan. And there's the risk that borrowers will reduce their contributions -- or be prevented by the plan from contributing -- while a loan is being repaid.

 

    Borrowing from a 401(k) should always be a last resort. Should you ever be tempted to tap your account with a debit card, do yourself a favor and pass.
To suggest a topic or share a tip with readers, contact Eileen Ambrose at 410-332-6984 or by e-mail at eileen.ambrose@baltsun.com.

Check out this excellent video shot by my good friend and colleague, Dynamic Doug Donovan.

Check out Randallstown resident Steve David commuting to his job downtown on a Segway (with an assist from the subway system). Check him out cruising on the road with cars with ease. Check him out on the elevator. Check out awesome David as he glides along the sidewalk, hand in pocket.

Beyond the fact that David just looks extremely cool, consider the fact that his initial investment for a Segway was $5,000.

Then add in the fact that David figures he's saving $1,200 a year on gas, not to mention the money he's saving on wear and tear on his car. Even better for environmental lovers out there, the 12-mile portion of David's Segway commute saves 8 pounds of carbon a day.

I just have two questions:

How in the world has he managed to avoid getting run over by Baltimore's drivers? (Hey, they scare me when I'm just trying to cross the street on foot.) And, how amazing is it that he hasn't been mugged on his way in or out of town yet? (I know I know. That's a low blow. I kid, you know I love our city.)

Let's all do David a favor and watch out for him on the road.

Middle River Baptist plans to discount gas at a nearby gas station by 50 cents a gallon for three hours on Monday.

It's a strategy we told you about earlier --- how churches, noting the anxieties surrounding fuel costs, are offering free or low-cost gas as a kind gesture to consumers.

These offers generally stand with no strings attached and few limitations (they'll only fill vehicle fuel tanks --- no portable ones) ... but if it convinces a few drivers to check out Middle River Baptist to check out a Sunday service, they won't say no.

Here's the details if you want to go help yourself to the offer: 

When: 10:30 a.m. to 1:30 p.m., Monday June 2.

Where: Compass Road BP, 601 Compass Road (at Middle River Road), Middle River, MD

For more information: Middle River Baptist Church, www.middleriver.org or (410) 686-8810.

(photo: Chiaki Kawajiri/Baltimore Sun)

 
According to this story, more Marylanders "staycationed" over Memorial Day instead of traveling this weekend. Traffic was down on the Bay bridge and at toll plazas along I-95; hotels were not booked despite lovely weather on all four days.

Well, Budget Travel has compiled a list of deals designed to lure you out onto the open road by overcoming the gas price dilemma. Many are still in effect for at least June, if not the rest of the summer.

Here are the specials within reasonable driving distance:

Pennsylvania
Lancaster, from $69 per room per night
There are 25 hotels and B&Bs participating in the free gas program in Pennsylvania Dutch Country. Simply book a two-night stay and you'll receive a $25 gas card, redeemable at 60 Lancaster County Turkey Hill Minit Markets. When Through June 26, 2008. Details Does not include tax of 11 percent. Requires a two-night minimum stay. Contact 800/290-1457, padutchcountry.com.

South Carolina
Myrtle Beach, from $189 per room per night
The Summer Vacation Fuel Rebate at the Marina Inn gives you 10¢ back on every mile in your round-trip drive, up to 1,600 miles. The hotel staff will use Mapquest to calculate the mileage of your trip. You can get up to a $160 credit, which will be deducted from your final hotel bill. When Through Aug. 31, 2008. Details Does not include tax of 11 percent or resort fee of $15 per night. Requires a three-night minimum stay. Contact 866/437-4113, marinainnatgrandedunes.com.

Virginia
Shenandoah National Park, from $129 per room per night
The Weekday Getaway package includes two nights' accommodations at Skyland Resort or Big Meadows Lodge, breakfast daily, and two tickets to Luray Caverns, a series of caves with huge, cathedral-like rooms. Plus, get a $30 gas voucher good at any ARAMARK gas station in the park. When Through July 31, 2008. Details All taxes included. Mention code SMWE when booking the second night. Requires a two-night stay midweek (Sun.-Thurs.). Contact 888/896-3833, visitshenandoah.com.

Charlottesville, from $159 per room per night
Receive a $20 credit on your bill for each night of your stay at the Boar's Head Inn. For more great deals in Virginia, see the official tourism website. When Through Aug. 28, 2008. Details Does not include tax of 10 percent or $8 resort fee per stay. Requires a two-night minimum stay. Mention "Gas Card Credit." Contact 800/476-1988, boardsheadinn.com.

Sun restaurant critic and food blogger extraordinaire Elizabeth Large offers this heads up: Sylvan Beach ice cream is changing its name to the Taharka Brothers Ice Cream Company. It's keeping the socially consicous mission, however.

To kick off the new brand, they're offering free ice cream and other giveaways from 2 p.m. to 6 p.m. on Sunday at the company's Mount Washington location, 1405 Forge Ave. (next to the Whole Foods in Mount Washington).

As Dan Thanh pointed out earlier, banks don't have too many fans these days. 

Take a look at the Internets Celebrities' amusing video about why people in poor neighborhoods use check-cashing services. (Thanks to Maryann over at Baltamour for the heads up on this one.)

There are so few banks in poor neighborhoods that it makes sense to use one of the check-cashing centers conveniently located in their communities. And banks are not open when you're available, after business hours.

Then again, banks earn a lot of money charging their customers for penalties and services as well, especially if you don't carry a large balance. Consumerist.com tallied a local check casher's fees and found them to be 1 to 4 percent per transaction.

 

Fees for low balances can really eat away at savings when you live your life paycheck-to-paycheck and don't have a cushion to protect yourself from unexpected expenses.

Obviously for-profit banks need to act in the interests of their shareholders, and lower-income banking clients can be a greater risk. But one could argue that they could still make money charging lower fees to a larger --- poorer --- group of people.

At least with check-cashers you know up front how much you're going to sacrifice from your hard-earned pay.

(ed note: Good point Liz. I know check cashers aren't great, but you know that old saying, "The devil you know..." Pay a one-time fee now or get whacked unexpectedly by a bank fee, which is taken directly out of your account, which could throw all your other bill payments off, which would then get you whacked with other fees for insufficient funds and bounced checks. Not sure if that's better. Banks just have more of a whiff of legitimacy to how they rake you over the coals. -- DD)

Hate those overdraft fees and ATM fees? Hate calling your bank only to listen to an automated voice? Hate the hoops you have to jump through to resolve a banking problem?

Join the angry crowd.

The third annual J.D. Power survey on banking, which was released yesterday, found that overall satisfaction in retail banking decreased considerably since last year — down 26 index points on a 1,000-point scale to 737 in 2008.

Contributing to the banking industry's image problem in particular is the growing dissatisfaction with fees. Fees are the most commonly reported problem by customers, as well as the second-most common reason for switching financial institutions, the survey says. Customers are also less than happy with a rise in the number of problems experienced and problems that go unresolved, increases in wait times to see tellers or speak to phone representatives, and declines in the ease of accessing branches all contribute to the drop in satisfaction.

The study, which was based on responses from 19,602 households, analyzed customer satisfaction through six factors: transactions, account statements, account initiation/product offerings, convenience, fees and problem resolution.

Best performing banks by region are:

Mid-Atlantic Region: Commerce Bank (Bancorp) ranks highest in the region with a score of 781 points, performing particularly well in convenience. First National Bank of Pennsylvania (764) follows in the regional rankings.

Midwest Region: Commerce Bank (Bancshares) ranks highest in the region with a score of 750, performing particularly well in statements. WaMu (742) and Comerica Bank (739) follow in the region.

Southeast Region: BancorpSouth Bank ranks highest with a score of 782, performing well in the transaction factor. First Tennessee Bank (774) and WaMu (768) follow in the region.

Southwest Region: With a score of 802 points, Wachovia Bank ranks highest in the region, performing particularly well in the transaction factor. Bank of America, Capital One and Zions First National Bank follow with scores of 740, in a tie.

West Region: Bank of the West ranks highest in the region with a score of 772, performing particularly well in the transactions factor. Citibank (759) and Union Bank of California (746) follow in the regional rankings.

Guess which four banks scored lowest in the Mid-Atlantic region?

(Image courtesy of stockxchng.com)

A New York judge ruled yesterday that computer retailer Dell engaged in repeated false and deceptive advertising of its promotional credit financing and warranties.

According to the AP by way of CrainsNewYork.com, the judge ordered Dell to disclose more clearly that most customers do not qualify for free financing or get “next day” repair service.

New York Attorney General Andrew Cuomo sued Dell last year.

The story quoted Cuomo saying, “For too long at Dell the promise of customer service was a bait and switch that left thousands of people paying for essentially no service at all." The AG's office had 700 complaints against Dell when the lawsuit was filed in May 2007 and received more than 1,000 since, a spokesman said.

Naturally, a Dell spokesman disagreed with the decision. The company did not say whether it would appeal the ruling.

According to the story, the judge aid Dell ads offered promotions like free flat-panel monitors, additional memory, rebates, instant discounts and financing with no interest or no payments for a period to “well qualified” or “best qualified” customers. Cuomo said as few as 7% of New York applicants qualified for some promotions.

Also, the judge cited many affidavits that mentioned "long telephone waits for technical support, numerous phone transfers among departments, the need for repeated customer calls to get through and 'numerous instances' when Dell refused to provide on-site service before it had determined what parts needed to be replaced."

Not sure yet how this affects Dell or the customers who got the shaft.

But in a little bit of useless trivia for today, how many people out there knew that "Dell Dude" Benjamin Curtis was arrested on Manhattan's Lower East Side on suspicion of trying to buy marijuana in 2003? Points to anyone who can remember his hokey signature line.

(Image from threeminds.organic.com)

With the price of food inching up, you might be tempted to cut back on your grocery shopping bill. Here's a quick-and-dirty way to compare prices --- without wasting too much gas, which is also plenty expensive.

Every market has 'loss leaders' designed to draw you in, where merchants hope they can earn money selling you other products and services.

Your task: identify which supermarkets sell the most things you regularly purchase at the lowest prices. Trent Hamm over at The Simple Dollar suggests you compile a most-frequently-purchased list and then, take it to one of the three or four stores you're likely to patronize for a regular shopping trip.

As you're picking you what you need, jot down the price of items on your list. Add the size and/or quantity to guard against package shrink. Then do it again at the other stores.

Finally, tally up the bills and expect to be surprised, he said.

A price book can also help you determine when a sale's really a sale --- i.e. cheaper than the store's regular price, but not necessarily the lowest price for a product. 

You could probably also glean a lot of information about sizes and prices from supermarket receipts from past shopping trips, if you've still got them handy.

It was inevitable.

With gas prices approaching $4 a gallon comes news that gas theft is on the rise.

Although drive-offs have declined earlier this decade since most stations make you pay before you pump, the National Association of Convenience Stores says they’re rising sharply again.

Even worse, the police told msnbc that thieves are getting bolder.

* Using an empty gas can and a siphon, thieves were able to suck 30 gallons of diesel from a bus in a Bethesda, Md., parking lot.

* In Beaver Dam, Wis., “they’re just going to cars at night and siphoning gas out of them,” said Stephanie Lehmann, who said several cars in her neighborhood had been hit.

* Police in Evansville, Ind., said thieves drained all of the fuel this month from seven trucks belonging to a local office of JBM Inc., a metal fabrication chain. They put the loss at $700.

* And police in Denver are investigating a rash of of incidents in which thieves drill small holes into gas tanks and siphon off the fuel. “This is clearly not the way it’s been done in the past, by taking a hose and putting it in a gas tank,” police Detective John White said.

Police suggest buying a locking gas cap to prevent thieves from siphoning the gas out of your tank, but as you all know, where there's a will there's always a way. A locked gas cap won't keep everyone out if they're really desperate.

If you ask me, I liked the praying at the pump trend way more than this gas theft one. How angry would you be if you came out one morning and found your car tank empty? Anyone seeing any funny business with your gas or your gas tanks around here?

(Image courtesy of stockxchng.com)

Every year, the variable rates on federal student and parent loans are adjusted based on the last Treasury bill auction in May.

That auction was today. And the results mean that beginning in July, the new rates on variable-rate loans will be about 3 percentage points lower for the next year.

“This is the biggest drop ever in the interest rates on variable-rate loans,” says Mark Kantrowitz, publisher of FinAid, in an e-mail. “The new rates themselves are the fourth lowest rates in the history of the student loan program.”

If you have a federal Stafford loan or a parent PLUS loan issued before July 2006, then you have a variable rate loan. (Loans made after that date have a fixed rate of 6.8 percent for student loans and 8.5 percent for a PLUS loan.)

And if you have variable rate loans, consider consolidating those loans after July 1, when these new low rates kick in. Your variable-rate loans will be combined into a new single loan at a fixed rate based on these new low rates.

According to Kantrowitz, if you consolidate a Stafford loan while in school or during the grace period the new rate will be 3.625 percent. The rate on a Stafford loan now in repayment will be 4.25 percent. And the rate for a consolidated PLUS loan will be 5.125 percent.

A new grad, for instance, with $20,000 in Stafford loans would save $3,521 in interest over the 10-year life of the loan by consolidating while in the grace period.

Kantrowitz says there is little benefit to consolidating fixed-rate loans.

Also, you may find it difficult to find a lender willing to consolidate your loans. Many have been bailing out of the business during the credit crunch. Kantrowitz says borrowers will likely have to go the Federal Direct Consolidation Loan program.

On Sunday, I wrote about BlueHippo and the unending complaints that are still coming in about the Woodlawn-based retailer that sells computers and other electronics to people with poor credit.

Maria Allwine of Baltimore wrote in to say:

How about a story on who owns Blue Hippo and its history. I think publishing the names of the owner(s) and the history, finances, etc. of this company might be helpful.

The bad news is that I didn't include that information because I only have 25 inches of space to work with for my Sunday column. The good news is that The Sun and fellow blogger (a.k.a. Financial Guru) Eileen wrote a terrific story on this very question back in 2006.

But, being the generous, thoughtful soul that I am, I'm going to copy and paste the lengthy article after the jump instead of making you search and pay for it in our archives like my bosses would like for you to do. Why? Because it's all about you readers, that's why.

BlueHippo Funding LLC, a Woodlawn company that sells computers and plasma TVs nationwide to people with poor credit, is under investigation by the Federal Trade Commission after being hit with hundreds of consumer complaints in its three years in business.

In addition to the federal probe, the Illinois attorney general's office sued the Baltimore County company late last year, Florida has begun an investigation and, last week, two Californians sued BlueHippo and are seeking class-action status to represent thousands of consumers.Launched in April 2003, BlueHippo grew quickly through radio and cable television ads that pitched computers to those without access to traditional credit. Consumers pay through electronic debits to their bank accounts over one year. The company promises to ship merchandise once customers make three months' payments worth hundreds of dollars.

Early on, however, consumers began to complain that they didn't get their computers and weren't able to get refunds, and complaints have persisted.

The Better Business Bureau of Greater Maryland says it has logged 799 complaints in three years, making BlueHippo their most complained-about company. "We get calls every day," said Kerri Kelly, public relations manager with the BBB in Baltimore.

In August, the FTC subpoenaed Wachovia Bank for records relating to BlueHippo, according to a letter from FTC Secretary Donald S. Clark posted on the agency's Web site. BlueHippo, according to the letter, said the records were irrelevant to whether it had violated laws against deceptive mail or telephone ordering, and it tried unsuccessfully to quash the order. As recently as early March, the FTC was collecting evidence from consumers.

FTC officials say they don't comment on whether an investigation is taking place. But Clark, in his letter, stated, "BlueHippo's claim that this investigation is limited to issues related to the `timing of sales and shipments and delivery' ... is simply wrong."

BlueHippo's spokesman, Michael Waldron, would not comment about an investigation but said, "If an appropriate regulatory agency has a question with regard to the company's practices, BlueHippo fully cooperates with them in the interest of clearing up any concerns they may have."

BlueHippo said it caters to consumers earning an average of $40,000 but with a history of credit problems. The typical customer's credit score is 455, a level considered extremely risky, the company said. It said staffers explain the sales terms, including its no-refund policy. The number of complaints is small compared with the 160,000 customers served in the past three years, Waldron said.

"The company offers consumers with credit challenges the opportunity to purchase very expensive electronics when no other retailer or lender will," Waldron said.

Critics complain that BlueHippo prices its computers at three to five times the retail cost, so by the time customers get their computer they've already paid more than it's worth.

The higher prices reflect the higher cost of doing business with poor credit risks, the company said. It says more than 40 percent of its customers don't complete the payment plan once they receive the computer. About one-third give false bank account information, or the first payment is returned for insufficient funds, the company said.

One dissatisfied customer is Stacey Simms, who responded last year to BlueHippo's pitch.

"I said, `It must be legitimate. They have a TV commercial and are on the radio all the time,'" said Simms, a clerk with the Prince George's County vital records office.

She said she paid about $125 upfront, and $84 was debited from her bank account every two weeks. Simms said she was initially told she would get a computer after her first payment. But the delivery dates kept changing, extending out to three or four months, she said.

She complained to the Better Business Bureau. She also stopped payments despite BlueHippo's no-refund policy. "It was a hard decision. They had $500 of mine that I would never see again," she said.

Simms told the company she was reporting it to the Better Business Bureau. The next day, the company told her the computer had been shipped. She has the computer, but the experience has left her angry. "I was noticing they still have their commercials. How are they surviving?" she said.

After receiving 15 complaints, the Illinois attorney general sued BlueHippo and its president, Joseph K. Rensin, in November, accusing them of deceptive sales tactics. The lawsuit seeks to bar them from making sales in the state. "It seemed that these consumers were very much taken advantage of. That's why we acted quickly," said Melissa Merz, a spokeswoman for the Illinois attorney general.

Florida's attorney general's office, with 17 complaints against BlueHippo, launched an investigation in December.

Maryland's attorney general's office has received 257 complaints about BlueHippo but has not filed a lawsuit. Most of the complaints are from out of state, and 82 were resolved through mediation. Spokesman Kevin Enright said his office can't discuss any action it has taken or will take against BlueHippo.

BlueHippo's practices violate state consumer laws across the country, said David Marshall, a Washington consumer lawyer representing the Californians suing BlueHippo.

"State-level regulators should have taken action against this company long ago and prevented them from cheating so many people as they have out of their money," he said. "That's the reason we are doing this lawsuit."

Filed in the U.S. District Court in California, the lawsuit seeks class-action status to represent thousands of California consumers who never received their computers and potentially lost millions of dollars, Marshall said.

BlueHippo claims to sell top-of-the-line computers when in reality the machines are basic or outdated models, the lawsuit states. Consumers can end up paying nearly $2,000 for a computer that sells for $400 or less in the stores, the suit alleges.

Customers aren't told of critical sales terms, such as the price of the computer. And those who back out of the deal never get a computer or the return of their money, the lawsuit states.

"I can't think of another situation where people make weekly payments for a number of months then, if they default, they don't get their money back," Marshall said. Consumers would be better off buying a computer on a retail lay-away plan, he said.

Kelly Cannon, a medical assistant for the Sacramento County Sheriff's Department, said she saw BlueHippo's TV ad last year and liked the offer of low payments and delivery in weeks. BlueHippo debited $99 from her checking account upfront and arranged to withdraw $100 every two weeks.

But when the sales agreement arrived for Cannon's signature, the terms were difficult to understand and she complained to the company about its misrepresentations, the lawsuit states. She agreed to sign the agreement, though, when a BlueHippo representative told her she would forfeit the money she had already paid if she didn't sign. The lawsuit states that the computer BlueHippo proposed to sell Cannon for $1,970 was available directly from the manufacturer for less than $500.

Blue Hippo also kept switching her delivery date, Cannon said. Finally, when a date was set, Cannon said, she stayed home from work to wait for the computer that never came. She continued to complain to the company. In the end, she never received a computer or the return of the $600 she had paid. She wrote to the company's president, asking for her money back. She also wrote to top Maryland officials.

"The reason I did, I was so upset. If [BlueHippo] can do this to me, how many other people are they doing this to?" she said. "They need to be stopped."

The FTC's New York office asked this month for Cannon's statement for its investigation.

BlueHippo's Waldron said the company won't comment on the specifics of the lawsuit. But BlueHippo "vigorously disagree[s] with the premise and assertions in the complaint," he said.

eileen.ambrose@baltsun.com

I wrote about credit monitoring services and how they don't fully protect you against identity theft in today's Q&A. If you haven't read it, check it out since we discuss LifeLock, an identity theft protection company whose CEO has been flaunting his Social Security Number all over the place in an attempt to prove to potential customers how safe he feels using his company's services..

Too bad he's had dozens of attempts by various people to steal his identity with at least one person being successful.

In the column, I talk about credit freezes so I just wanted to remind everyone how we've told you before how to request a credit freeze here.

Also, Hugh Williams wanted to remind readers that:

I read with interest your column today regarding credit monitoring services. I noted that the consumer you spoke with mentioned that she checks her credit report every three months. I thought it would be worth mentioning that Maryland residents can get 6 free credit reports a year; 3 under the federal law, and 3 under MD state law (we were the first in the nation to pass a law allowing free access). A consumer can access their report undef the state law by contacting the credit bureaus individually.

Hugh is the administrator for the OAG's Identity Theft Program. Thanks for the reminder Hugh.

Have you ever accidentally given someone a $5 when you meant to hand them a $1?

That's what I was thinking about while working on this story about blind people and those with limited vision saying the paper money we now use puts them at a disadvantage. 

I talked to Eric Bridges of the American Council of the Blind about how this affects his life:

"... he has to trust store clerks and others to identify his bills for him. He then folds them in different ways to distinguish different denominations in his wallet.

'We rely upon the kindness of strangers and the truthfulness of strangers to indicate to us what denominations they are handing back to us,' he said."

More than 180 countries incorporate accessibility features into their paper currency, whether it's intentionally or by accident. Some of the accommodations can be as simple as colors to help distinguish different bills (check out a gallery of world money here).

Remember that scene in the movie Ray where blind musician Ray Charles beats up a boss who tries to cheat him by paying him ones instead of the larger bills he pretended to count out? That kind of stuff happens all the time, according to this NYT story. And since the population of individuals with low or no vision will only increase as baby boomers age, the current designs leave a growing number of people vulnerable.

Yes, if the U.S Treasury Department changes its policies instead of appealing the appellate court decision, we'll all have to cover the costs of retrofitting our world --- everything from ATMs to possibly our wallets.

But think about all the ways our entire population benefits from existing accommodations for people with disabilities. Plenty of folks take advantage of curbcuts when traveling with wheeled luggage or strollers. We use the handicapped buttons to open doors when our hands are full of stuff.

 

I know you've been dying with anticipation for this. So here goes.

This week the Treasury Department sent out 6.211 million economic stimulus payments to American households totaling $4.927 billion.

The grand total so far is 51.675 million total economic stimulus payments totaling $45.720 billion.

The Treas (I feel like I can call them that given that we've been talking about them so much lately) says this week's numbers represent the near completion of all direct deposits, with the continued mailing of paper checks.

Treasury facilities are still also working on completing the mailing of regular tax refund checks, and thus are not at full capacity for printing and mailing stimulus checks. In June, once the regular tax refund mailings are complete, Treasury will print and mail stimulus checks at full capacity and weekly volumes will increase.

Holler back at us if you've still seen not a cent of your rebate yet. Or if you want to tell us how you've already spent it...er... I mean responsibly saved it.

Have a good holiday weekend you cheeky monkeys!

The Maryland Department of Environment's Waste Management Administration handed out the following enforcement actions between Jan. 15 and April 15, 2008:

Solid Waste:

Mona Enterprises, Inc., et al., Charles County -- On January 31, 2008, MDE issued a Consent Order to Mona Enterprises, Inc., et al. requiring that they pay a civil penalty of $12,000 for violations of solid waste laws.

Mona had operated an unpermitted dump for wood waste and some demolition debris on their property in Charles County. MDE sued them in Charles County Circuit Court to stop this unpermitted operation, which led to the settlement. Modern landfills are required to have a both the State permit and sophisticated systems to keep pollutants from escaping the landfill, which the Mona site lacked. In addition to paying the penalty, Mona is also required to clean up the dump, which is ongoing.

 

Oil Control:

Euclid of Virginia, Inc. and 3507 Enterprise, LLC, Prince George’s County, MD –- On March 28, 2008, MDE issued a Consent Order equaling $40,000 to Euclid of Virginia, Inc. and 3507 Enterprise, LLC for violations of Maryland’s Oil Pollution Laws.

Lead Violations:

Omar Osman, Decatur, Georgia – 4 affected properties – On January 24, 2008, MDE sued an Administrative Complaint, Order and Penalty to Omar Osman equaling $35,000 for properties that were out of compliance with risk reduction standards.

Steve A. Foland, Linthicum, MD – 4 affected properties – On January 25, 2008, MDE issued an Administrative Complaint, Order and Penalty to Steve A. Foland equaling $25,500 for properties that were out of compliance with risk reduction standards.

Glenn W. Smith, Cambridge, MD –1 affected property – On January 31, 2008, MDE issued an Administrative Complaint, Order and Penalty to Glenn W. Smith equaling $20,000 for a property that was out of compliance with risk reduction standards.

Andrew Osazuwa, Bowie, MD – 4 affected properties – On January 31, 2008, MDE issued an Administrative Complaint, Order and Penalty to Andrew Osazuwa equaling $27, 500 for properties that were out of compliance with risk reduction standards.

Johnny Rhodes and Chaunte Edwards, Baltimore MD – 8 affected properties – On February 5, 2008, MDE issued an Administrative Complaint, Order and Penalty to Johnny Rhodes and Chaunte Edwards equaling $49,500 for properties that were out of compliance with risk reduction standards.

Edwin Ndubisi, Fort Washington, MD –10 affected properties – On February 11, 2008, MDE issued an Administrative Complaint, Order and Penalty to Edwin Ndubisi equaling $31,500 for properties that were out of compliance with risk reduction standards.

Shabana Yakcub and Mahesh Dayaram– 14 affected properties – On February 11, 2008, MDE issued an Administrative Complaint, Order and Penalty to Shabana Yakcuband Mahesh Dayaram equaling $15,000 for properties that were out of compliance with risk reduction standards.

Arthur Cooke t/a AC Enterprises, Baltimore, MD – 1 affected property – On February 12, 2008, MDE issued an Administrative Complaint, Order and Penalty to Arthur Cooke t/a AC Enterprises equaling $16,000 for a property that was out of compliance with risk reduction standards.

Franklin C. Showell, Catonsville, MD – 3 affected properties – On February 15, 2008, MDE issued an Administrative Complaint, Order and Penalty to Franklin C. Showell equaling $33,000 for properties that were out of compliance with risk reduction standards.

Cicely B.P. Payne, Dorchester Center, Massachusetts – 1 affected property – On February 15, 2008, MDE issued an Administrative Complaint, Order and Penalty to Cicely B.P. Payne equaling $16,000 for a property that was out of compliance with risk reduction standards.

Michael Davis, Baltimore, MD – 12 affected properties – On February 15, 2008, MDE issued an Administrative Complaint, Order and Penalty to Michael Davis equaling $49,500 for properties that were out of compliance with risk reduction standards.

Kimberly F. Jones, Accokeek, MD – 6 affected properties – On February 15, 2008, MDE issued an Administrative Complaint, Order and Penalty to Kimberly F. Jones equaling $33,000 for properties that were out of compliance with risk reduction standards.

Ronald D. Brasher, Columbia MD – 4 affected properties – On February 22, 2008, MDE issued an Administrative Complaint, Order and Penalty to Ronald D. Brasher equaling $22,000 for properties that were out of compliance with risk reduction standards.

Betty Tunon, Glen Burnie, MD – 10 affected properties – Betty Tunon signed a Consent Decree with MDE on February 22, 2008 agreeing to pay a civil penalty to MDE in the amount of $6,000.

John A. Peoples and Bonnie L. Peoples, Rising Sun, MD – John A. Peoples and Bonnie L. Peoples signed a Settlement Agreement and Consent Order with MDE on February 22, 2008 in the amount of $10,000.

Percy Mack, Baltimore, MD – 3 affected properties – On February 29, 2008, MDE issued an Administrative Complaint, Order and Penalty to Percy Mack equaling $13,000 for properties that were out of compliance with risk reduction standards.

Barry R. Glazer & Gina Gargeu, Baltimore, MD – 10 affected properties - On March 5, 2008, MDE issued an Amended Administrative Complaint, Order and Penalty to Barry R. Glazer and Gina Gargeu equaling $40,000 for properties that were out of compliance with lead paint risk reduction standards.

Christopher A. Richardson, Columbia, South Carolina – 1 affected property – On March 5, 2008, MDE issued an Administrative Complaint, Order and Penalty to Christopher A. Richardson equaling $14,850 for a property that was out of compliance with lead paint risk reduction standards.

Antonia Rivera, Silver Spring, MD – 2 affected properties - On March 12, 2008, MDE issued an Administrative Complaint, Order and Penalty to Antonia Rivera equaling $32,000 for properties that were out of compliance with lead paint risk reduction standards.

Jeffrey E. Risberg, Baltimore, MD – 1 affected property - On March 12, 2008, MDE issued an Administrative Complaint, Order and Penalty to Jeffrey E. Risberg equaling $16,500 for a property that was out of compliance with lead paint risk reduction standards.

Monique Tate, Fort Washington, MD – 2 affected properties - On March 12, 2008, MDE issued an Administrative Complaint, Order and Penalty to Monique Tate equaling $23,000 for properties that were out of compliance with lead paint risk reduction standards.

Mark B. Howie, Randallstown, MD – 2 affected properties - On March 12, 2008, MDE issued an Administrative Complaint, Order and Penalty to Mark B. Howie equaling $22,000 for properties that were out of compliance with lead paint risk reduction standards.

James McInerney, Bethesda, MD – 4 affected properties – On March 12, 2008, MDE issued an Administrative Complaint, Order and Penalty to James McInerney equaling $27,000 for properties that were out of compliance with lead paint risk reduction standards.

Tri County Properties, LLC, Centreville, MD – 6 affected properties - On March 12, 2008, MDE issued an Administrative Complaint, Order and Penalty to Tri County Properties, LLC equaling $24,000 for properties that were out of compliance with lead paint risk reduction standards.

Rental Maintenance Corporation, Baltimore, MD – 3 affected properties - On March 17, 2008, MDE issued an Administrative Complaint, Order and Penalty to Rental Maintenance Corporation equaling $16,500 for properties that were out of compliance with lead paint risk reduction standards.

Wong B. Johnson, Baltimore, MD – 2 affected properties - On March 20, 2008, MDE issued an Administrative Complaint, Order and Penalty to Wong B. Johnson equaling $33,000 for properties that were out of compliance with lead paint risk reduction standards.

RMS Target Properties, LLC, Baltimore, MD and RM-KENA, LLC, Albany, New York – 19 affected properties - On April 2, 2008, MDE issued an Administrative Complaint, Order and Penalty to RMS Target Properties, LLC and RM-KENA, LLC equaling $33,000 for properties that were out of compliance with lead paint risk reduction standards.

Mitchell B. Mock, Jr., Baltimore, MD– 1 affected property - On April 7, 2008, MDE issued an Administrative Complaint, Order and Penalty to Mitchell B. Mock, Jr. equaling $16,500 for a property that was out of compliance with lead paint risk reduction standards.

Angelo V. Bell, Dumfries, Virginia and Kevin Dozier, Baltimore MD – 8 affected properties - On April 7, 2008, MDE issued an Amended Administrative Complaint, Order and Penalty to Angelo V. Bell and Kevin Dozier equaling $30,000 for properties that were out of compliance with lead paint risk reduction standards.

Horace Waybright and Evelyn Waybright and Waybright Joint Ventures, Gettysburg, Pennsylvania – 6 affected properties - On April 9, 2008, MDE issued an Administrative Complaint, Order and Penalty to Horace Waybright and Evelyn Waybright and Waybright Joint Ventures equaling $40,000 for properties that were out of compliance with lead paint risk reduction standards.

Here's a question that plenty of parents have about the tax rebates:

 "I was wondering if you knew the answer to my question about eligibility for certain folks. I have a 20 year old son living at home and attending college. He filed a return, but my husband and I claimed him as a dependent on our return. I had assumed that since he is our dependent, we would get $300 for him as part of this stimulus package (I actually kind of told him that if we claimed him as a dependent - which saved us money on our taxes- we would give him the $300 of the stimulus check that was attributable to him).

"Today I got my stimulus check direct deposited ...Anyway they deposited $1500, $1200 for the married couple, and I suppose $300 for my 3 year old son. Nothing for my 20 year old that was also my dependent. Are dependents over 18 not qualified for the stimulus check, even is they otherwise qualify to be classified as a dependent by the IRS?'

The answer: The rebate is for children who were under age 17 as of the end of last year. Dependents over that age don't qualify.

Are you a haggler?

Are price tags merely a starting point for you? Do sales people groan when they see you walk up to the register? Do you firmly believe in never paying full price?

Well, my friend, you might be a haggler.

A lot of people are embarrassed to ask for a better price. Some people think it's unseemly to shop with a flea market or bazaar-like mentality. Some just feel downright foolish to bargain for anything, period.

I have to confess that I go back and forth about this. Sometimes, I'm too embarrassed to ask for a better deal on that dress, those shoes or that book I want. And then there are times where I have no qualms about asking if that's the best price I can get for the TV, fruit or flowers I'm about to buy.

The thing I have learned, however, is that it never ever hurts to ask. I might seem petty, but I've had good results pointing out stains or missing buttons, scratches on products or just simply asking if that's the final price.

Shop Smart, the sister mag of Consumer Reports, has a response for you haggling naysayers: pshaw.

In fact, Shop Smart wants you to wrap your brain around the idea that paying full price for anything should be considered foolish.

So embrace these tips to find the haggler in your:

NEVER buy anything major without first researching prices. Shoppers should check out price comparison sites such as www.bizrate.com, www.shopzilla.com, www.pricegrabber.com, and www.shopping.yahoo.com. Also look through store ads and visit competing stores in the area.- knowing prices that a competitor is offering makes its easier to haggle.

ALWAYS decide what you’re willing to give up to get a better deal. Shoppers who know what they can’t live without, can focus on what is important and use the other stuff as negotiating points. For example, you may not need heated seats in a new car, but you must have rear speakers.

NEVER start with the price you’re willing to pay. Starting at a lower price point allows room for maneuvering and gives shoppers a better chance of negotiating a price closer to what they want to pay.

ALWAYS try to get a break on something else if the salesperson won’t lower the price. If the product requires delivery or installation, shoppers should ask for a deal on these services if the salesperson won’t budge on the price of the product.

NEVER give up. Sellers need to make sales and you need to stay within your budget. The worst that can happen is that someone says no. At least you’ll know you’re not missing out on any discounts you could have nabbed.

So what do you think? Is haggling still beneath you? Or are you a long-time CHP, a Certified Haggling Pro? Tell us what your best techniques are to bargain down a price. Or tell us the best story you have of how you talked your way into a terrific deal.

A show of hands, please. How many of you out there Google? If you have a question, do you head straight for Google? Before you head on a date with someone new, do you look to Google to dish all the dirt you might need to know? When you research a company or products online, do you Google?

If you answered yes to those questions, Microsoft wants you to cut it out.  

But just in case you don't want to listen to what Bill Gates wants or doesn't want you to do, Microsoft wants to try to convince you to give someone else (like, hm, maybe Microsoft?) a chance by offering you rebates for finding and buying products using its search engine.

The NYTimes says "the program, called Live Search cashback, is part of a plan to come up with new approaches to areas of the search business where they see opportunities to make inroads against Google, the market leader." Yahoo is second and Microsoft is a distant third in that race.

The story also says that the new program focuses on searches for products to be bought online, which Microsoft executives said account for roughly a third of search queries and a majority of search advertising revenue.

Apparently, 700 merchants offering more than 10 million products have agreed to participate in the program. Some of those merchants include Barnes & Noble, Circuit City, eBay, Home Depot and Hewlet-Packard.

So how about it, if Microsoft started offering you small rebates (say as much as 2 to 5 percent) to use Live Search to search for products and buy products online, would you see yourself stepping away from your itchy Google finger?

(AP Photo) 

Michelle Deal-Zimmerman, The Sun's travel guru, has posted links to traffic columnist Mike Dresser's tested detours to assist any road-trippers out there headed north toward New Jersey, NYC or New England.

As she points out, any moment spent idling in traffic wastes gasoline that could be used to get you closer to your destination. Makes driving miles out of the way seem worth it --- especially when you consider saving your tolls instead of giving them to Delaware.  

I don't have a high-def player yet, so I have to confess that my knowledge of this technology is fairly limited. Does anyone have an answer for Reader thomas' question under a prior Blu-ray post?

Will a ripped Blu Ray movie 720p play in a stand-alone hd-dvd player?

Any high-def ubergeeks out there want to help us out?

Mitchellville Xtra Fuel Mart #7585, Mitchellville – On April 3, Mitchellville Xtra Fuel Mart paid $178 in restitution for six transactions. This is the second case in the past six months confirmed by a MDA investigation based on a consumer complaint of a gas station not delivering the proper amount of product. On March 11, MDA investigated a consumer complaint against the fuel mart and found the diesel fuel pump shorting customers by 27 percent. The fuel pump was repaired, inspected by MDA and placed back in service on March 17, 2008. 

The following is a list of Maryland firms that were found in violation of Maryland Weights and Measures Law and were assessed civil penalties:

Giant Food #357, Bethesda – On Jan. 22, MDA received $2,000 for a civil penalty (3rd violation) assessed to Giant Food #357. The civil penalty was assessed for short weight packages.

Shopper’s Food Warehouse Store #2656, Wheaton – On Feb. 1, MDA received $750 for a civil penalty assessed to Shopper’s Food Warehouse Store. The civil penalty was assessed for short weight packages.

Snow Hill Food, Snow Hill – On Feb. 19, MDA received $500 for a civil penalty assessed to Snow Hill Food, Snow Hill, Md. The civil penalty was assessed due to price verification violations.

Safeway #4964, Silver Spring -- On March 3, MDA received $500 for a civil penalty assessed to Safeway #4964. The civil penalty was assessed for short weight packages.

Bay Ace Hardware, Rising Sun – On March 28, MDA received $500 for a civil penalty (2nd violation) assessed to Bay Ace Hardware. The civil penalty was assessed due to price verification violations.

If you're in the market for anything from refrigerators to computers, there's nothing preventing you from running out to buy it RightNow. But if you're a Smart Shopper, you'll wait for certain times of the year to get what you want and save money.

For instance, did you know you shouldn't buy furniture in the late fall? Or that January or March is the best time to buy that HD TV you've been eyeing? Check out Consumer Report's sister mag, Shop Smart, for tips like these:

Appliances: Because sales happen in January, stores are open to haggling in December. For refrigerators, snag sales and get discounts when new models arrive in May and June.

Furniture: Always ask about upcoming sales which typically occur around Presidents’ Day and July 4, when stores need to make room for merchandise, or at the end of the month when store owners are balancing their books. Consumers should try to avoid purchasing furniture in the late fall, because stores are swamped with shoppers upgrading their homes for the holidays.

Clothing: Make friends with salespeople so they will give you advance notice of sales. Shop at the end of the season, when stores need space for new inventory.

Hotel Rooms: Travelers can usually score a better rate if the reservation is booked far in advance to lock in the business.

Salons & Spas: Consumers should call or visit a salon or spa during a slow period and negotiate a discount on services.

Cars: The best times for shoppers to negotiate prices on cars are November and December – when sales are slow, late summer – when new models come out, or the end of any month – when salespeople are trying to meet sales quota.

TVs, Computers & Other Electronics: Shop for certain electronics during specific months in order to get a better deal – July or December for computers, January or March for TVs, and February or April for digital cameras.

Happy shopping.

 

Still wondering whether you to go road trippin' this weekend? The Sun has an excellent fuel cost calculator to help you gauge how much you'll spend on fuel if you load up the kids for a weekend getaway. (Updated: AAA also has a fuel cost calculator that automatically plugs in estimated distances and fuel costs --- more of a ballpark figure.)

Of course, this doesn't include tolls, lower gas mileage due to AC/idling in traffic, and any number of other contingencies ... like if you add a detour to see Tulsa's Giant Oil Man to your itinerary.

Then again, you could always get someone else to drive ...  

Baltimore's home to more than one discount bus line these days, such as MVP, although their best deals are usually secured a few weeks out.

Either way, the road trip calculator can be helpful information to have when comparing bus, train and plane fares. I wonder at what intersection of time and distance the difference between flying and driving becomes a wash. 

If it all seems too much, you could always decide to "staycation" at home, although you'll be the one making your own bed each morning.

So, tell us ... what are you doing this weekend?  

 

Remember, the free Car Care Clinics organized by the Baltimore Metropolitan Council and the Maryland Department of the Environment are coming up next week and through the month of June.

Check out this list of dates to get a free inspection by Precision Tune Auto Care. 

For more tips on easing your commute's impact on the environment and your wallet, go to www.cleancommute.org. 

I've hired a number of home contractors since I bought my home in the city several years ago, I didn't follow my own advice at all in three instances. (hey guys, I am human. I make mistakes, too). I was really fortunate that those experiences didn't turn out to be huge disasters.

There's a right way and a wrong way to hire contractors as I wrote about in my Tuesday column (I'll post the Q&A column in the jump to keep it on the blog permanently), and I definitely took some chances when I hired the guy to help renovate my first floor, who then recommended someone to install my central air.   

They were both messy and sometimes, didn't show up when they were supposed to, but calling them repeatedly and in some cases, sitting there watching them work ensured that the work was eventually done. In the third case when I hired a plumber to replace all the pipes in the house, I just took a recommendation from a good friend and colleague of mine. The guy just happened to do terrific work and his bid came in lower than the other two I got. I never background checked anyone of them, although I did make sure they were licensed and insured.

When I reflect on it, I can't help but think I was really stupidlucky.

Here's the right way to go about it:

THE Q:

All this rain might be great for your garden, but it's doing a number on homes. We're talking about leaky roofs, wet basements, clogged gutters and precariously hanging tree limbs. If those troubles aren't enough to give you heartburn and anxiety, the task of finding a good plumber, roofer, or tree service could just send you over the edge.

What's the best way to find a home contractor? Is word of mouth best? Is the Better Business Bureau your only shot at finding a reputable company? Do you open the phone book and try eenie-meenie-miney-moe?

The A:

The first rule in hiring a home contractor is: Don't panic.

Panic makes you think less clearly. Panic makes you rush your decisions. Panic causes you to hire companies without checking around first.

We understand that under dire circumstances, such as when your basement is slowly turning into your swimming pool, it might be hard not to freak out. Take a deep breath, though, and do your homework.

Remember that no one source of information is going to save you from hiring a bad company. Don't just take your neighbor's word. Don't just look to the BBB. Don't just pick the first company you see in the phone book. I repeat, do not rely on any one source.

When searching for a contractor, it's best to ask your friends and neighbors for recommendations. If you can't find referrals from people you know, try companies such as ServiceMagic at www.servicemagic.com or Angie's List at www.angieslist.com. ServiceMagic is a free site for homeowners where service professionals, who pay a fee to be listed, are given ratings by other homeowners. Angie's List, which charges a membership fee for homeowners, offers a list of member ratings and reviews on local contractors. Companies do not pay to be included on Angie's List.

Now, once you've got a short list of companies you're interested in hiring, the next step is checking the background of each company.

First head to the Department of Licensing, Labor and Regulation Web site at http://www.dllr.state.md.us to make sure your company is licensed and insured. Check the BBB of Greater Maryland Web site for complaints on your company at http://www.baltimore.bbb.org. Then go to the Maryland Judiciary Court Search at http://casesearch.courts.state.md.us and plug in the names of your companies to make sure none of them are getting sued for bad work.

If you've still got some companies left after all that research, you've still got some more work ahead of you.

Call each contractor and get at least three bids for the work you need. Don't automatically pick the lowest bid since it can be a sign of inferior work, but don't pick the highest price since it's not always a sign of the best work. To find out which is true, ask for a list of homeowners and numbers from each company. Call those people and find out if they can recommend that company's work.

If you've finally found the perfect company for you, don't mess it up now. Make sure you get a contract that spells out the work that needs to be completed in detail. Specify what materials are needed and make sure you have approval over any changes. Last, but not least, work out a payment schedule based on completion of each phase of the work. Do not pay the entire cost of the project upfront. If the company demands all the money at once, that's a red flag. If it asks for a down payment, offer 10 percent or $1,000, whichever is lower.

Do not pay the final installment until the job has passed inspection.

There is no foolproof way to avoid bad companies and their shoddy practices, but taking the time beforehand to do your research can save you money and headaches down the road. Now go get that leak fixed.

Now, Daniel Powers who is president of Home Builders wrote in to say:

I enjoyed your story on finding a good contractor in this mornings paper.I just wanted to add a few things. The BBB to many of us,is nothing more then a referrall service. Contractors pay to get listed and the BBB,when called,tell if there are any complaints against the contractor, or if he is a member in good standing.They try to get contractors to join up,by saying that people have been calling and asking about your company. When you ask who,they never have a name,and you find out that it is just another  cold sales call trying to get you to join their services.So,not all good contractors are members, nor care to be.

Second,contractors are by law,allowed to ask for up to a third of the contract price,for a deposit.Please don't make it any harder,on an industry that is in a major recession,by telling people to offer only 10 % of the total cost as a deposit.Some small contractors,who do fantastic work,or are just starting out,may need the additional money  ( 20 % ) to get started by buying the materials,and for payrolls. Additional draws,or payments,can be made at anytime,during the contract,and for various amounts.Most contractors clearly state payments on their contracts.

And Jim Rafferty, marketing manager of Welsh Construction Remodeling Co., said:

Thank you for your column on hiring a contractor, which contains generally good advice.

I would further add that the current slow economic climate has had effects on our industry which are generally negative for the consumer.  We are receiving more reports of consumers stranded by unlicensed and/or incompetent contractors than in the past.  Something like 8 out of 10 remodeling companies fail to survive 10 years in business in normal times; I would imagine that rate is on the increase.  Additionally, many homebuilders facing their own slowdown are gravitating toward remodeling work to stay afloat (this happened in the early '90s as well), the problem being that they may or may not have any expertise in remodeling, which is quite different from homebuilding in both its techniques and its economics.

The unfortunate reality is that a consumer who has a bad experience with a contractor is in an especially difficult circumstance, as most reputable contractors will not want to get involved in the no-win situation of correcting or re-doing someone else's work.

When checking a company's record online, the consumer needs to look not only for complaints but how those complaints were resolved.  Any company that's been in business for more than a short time has had complaints filed against it (incredibly, consumers are not always reasonable ... see this recent article from the New York Times: ).  Ditto for checking a company's record in court.

The one item I would take issue with is the notion of paying no more than a 10 percent deposit at contract signing.  Virtually all of a contractor's unrecoverable costs occur before the work begins: fixtures and materials such as kitchen cabinets, windows, doors and so forth are often custom-made and are either non-returnable or subject to hefty restocking fees.  It's not reasonable to ask a contractor to undertake that risk with a deposit that won't even cover costs should something go wrong in the interim between contract signing and start of work. 

Maryland state law limits the deposit to 33%; this is a more generally accepted figure.  Just as consumers should be wary of someone who wants full payment up front, a contractor who will accept only 10 percent (unless the project is strictly labor) is not likely to last very long in our business.

David Foley of Foley Construction and Residential Services said:

I am writing in reference to Ms. Dang's invaluable column, "Take Time to Find a Good Contractor," about the difficulties inherent in locating the right repair companies to fix whatever ails one's house, whether one is in the throes of an emergency or a family requiring an addition on their home. All of what she said is true. Moreover, selecting contractors can be difficult, dealing with them maddening, and getting the work performed properly and within the required schedule a full time job.

 

In fact, it is a full time job. One specific means of insuring work quality that Ms. Dang excluded is the use of a construction supervisor for moderate to large jobs. The idea often frightens homeowners for the additional costs they might incur. But, when a good construction supervisor is hired, it is often well worth the money spent because the burden of acquiring resources and individuals for the work completely shifts. Further there becomes one singular coherent voice to deal with multiple firms, a voice that knows the industry inside and out. Of course, the individual or company hired should have accreditation, strong credentials, a glowing list of clients, and a history of getting jobs done properly, at cost, and to code, freeing the owner to do his or her job, which they both know and understand far better.

Hiring a construction supervisor is another very good way to ensure that the work done meets everyone's expectations.

I can't stress this enough, the BBB should not be your only source of information. Just because you find a company on the BBB Web site doesn't mean that they're automatically good or reputable. It just means that they've either had a complaint filed against them or they've agreed to mediate consumer complaints through the BBB (and agreeing to mediation doesn't always mean a favorable outcome to consumers.) With that said, you should still check with the BBB (and the Department of Labor Licensing and Regulation and the AG's Office) to see if a company has any complaints filed against them and how the problems were resolved.

Both men are also right that contractors can ask for up to a third down before they start a job, but I am recommending that you ask if you can put 10 percent down. I realize that some contractors need that much money just to start the job to buy supplies and materials, but I can't tell you how many times I hear from people who say they put a third down (which can amount to thousands of dollars depending on how big the job is) and never saw their contractor again.

I say it's best to try to set up a payment schedule so that you can see exactly where your money is going. If you can put 10 percent down and then write it into the contract that once materials start showing up and the job is started, you'll pay another 20 percent in the first or second week depending on the progress of the job. It's important to have a detailed contract that spells out the terms of payment. It's not just to protect you the consumer, but also to protect businesses, too, so that they can meet a homeowner's specific job expectations.

(Sun Photographer Algerina Perna)

Got camping gear but little time to hit the trails? A drill or a chafing dish that live in your attic or a prom dress that rarely sees the time of day, or books you're too embarrassed to showcase on your shelves?

Activists for living an uncluttered lifestyle have long advocated that people reduce their inventory of stuff by selling it. Frugal-minded folks understand they can trade stuff they don't want for stuff they do.

Online services such as eBay can facilitate such sales, but there are some other good options as well. One friend told me she sold her formal dresses to The Zone, a Mount Vernon consignment store, and often checks the selection at similar stores like Plato's Closet in Towson.

Another friend scours her bookshelves for titles to trade on paperbackswap.com. Enter the ISBN number on the back and earn credits toward books that you actually want. Then, print out the mailer and send off books you don't need.

Now here's another variation on this theme.

Zilok.com wants to help you rent items you own but perhaps use infrequently to someone who needs it --- but doesn't want it forever.

Owners can post information about their stuff, renters can search the database for stuff, each party signs a customized rental agreement and the deal is done.

Zilok makes money on both listing fees --- after Oct. 1, it's 10 cents an item -- as well as commissions once deals are done. 

I've got a coupla questions:  

1. How do you guarantee the stuff comes back to you? Some owners can charge security deposits, but if you're a renter how do you guarantee a deposit will be returned?

2. Wouldn't it make more sense to sell stuff you needed/used once or twice but hasn't seen the light of day for quite a while? Because if you like it and might use it again, how can you trust someone who has rented it not to break/lose/damage it in some way?

Renting is a good idea for some things you REALLY won't use frequently. Home Depot and even some neighborhood associations have rental centers to help you with your DIY projects. The only catch: you have to plan ahead.

With gas prices running about $3.80 a gallon for regular unleaded, we knew sooner or later that smart businesses would start offering gas deals to coax consumers into choosing them over a competitor. Most of these deals can be found in hotel deals that are trying to lure you away from home.

Check out Expedia which is offering a $50 gas card to travelers who book a stay at a participating hotel for 3 or more nights. You have to book book by May 23, 2008, 11:59 PM Pacific, and complete travel by September 30, 2008.

BedandBreakfast.com has a list of "tanks a lot" deals from b&bs, some of which are offering as much as $50 gas cards for booking a stay. I can't find a Web site for it, but I've seen several news reports that Rehoboth Beach innkeepers are also offering free gas deals.

Benchmark Painting in Kensington, Md., is offering a $50 gas card for any job up to $500 or a $75 gas card for any job over $500. Offer expires Dec. 31, 2008.

For those of you wondering if Chrysler Corp.'s  $2.99 a gallon for three years deal (for customers in the United States who buy or lease new vehicles from Wednesday through June 2) is good or not, check out Consumer Report's breakdown of whether this is a good deal or not. If you're not sure, I'll give you a hint:

If it's too good to be true, it probably is. Here's CR's sum-up of the deal:

Yes, you may save some money on gas, at least in the short term. But our owner cost data shows that, even with growing fuel costs, depreciation remains the biggest chunk of vehicle ownership costs. The competitors' vehicles listed in the chart have lower depreciation than their Chrysler counterparts, saving thousands over the life of the car and erasing the savings from the cheap gas deal. Also consider that, in general, vehicles sold with hefty discounts see more rapid depreciation than those that sell for closer to retail price. After all, it has essentially depreciated BEFORE you drove it off the lot, and it will continue to drop in value soon as it leaves the dealership. A model with better fuel economy (not to mention test scores and reliability) will likely hold its value better and be cheaper to refuel, possibly negating the benefit of the gas card.

If you know of any other gas deals out there, please do give us a holler and let the rest of the gang know so we can all save a buck or two. 

(Photo courtesy of stockxchng.com) 

Last Sunday's Money & Life column involved Gary Brawerman's disappearing e-mail address and Comcast's slower than molasses response to his problem. If you didn't see it, check it out here.

Whenever I write about problems with a big company like Comcast or Verizon, it's inevitable that more complaints about that same company will come in. Instead of piling on in the newspaper some more, I'm just going to start posting those complaints here.

Feel free to add a good story (I'm sure the companies would appreciate it) about your experience or jump right in their and join the angry scrum.

The Rev. Neil writes:

I enjoyed reading your Sunday column because the same thing happened to me: my Comcast e-mail just quit working, and since it was the administrative e-mail address, I was frozen out of the system altogether. I called technical assistance, and the person on the phone said that he couldn’t fix it, and would have to buck it to Comcast’s tech specialists. It could take up to 72 hours to address the problem. I waited the requisite three days and called back. Luckily, in the meantime I could use my Verizon e-mail account from work, but it was a hassle.

When I called Comcast back to complain when the e-mail still wasn’t working, I fortunately got someone who understood their systems better, and helped me on the spot. He looked at my service record on their computer and discovered that the first tech support representative noted that I had called but then didn’t follow up as he had promised.

Comcast is telling you a big one when they say that this is a rare occurrence—the shutting down of an e-mail account inexplicably—and they are also being disingenuous when they say that this one customer who fell through the cracks was an aberration of their policies and systems. Comcast has a history of not handling these cases well, they tell their customers anything to get them off the tech support phones, their tech support people aren’t properly trained, and Comcast has developed no protocols for addressing the problem of disappearing e-mail accounts and the havoc it creates for consumers.

Comcast is just a badly managed company. I took three visits from three different technicians to get my new TiVo machine up and running because they kept sending out bad media cards that the TiVo box required. Their pricing plans would need a mathematician to understand. After my one-year introduction ran out for their three-in-one service, I called about unbundling my service and to cancel unneeded features to try and save money, but everything I suggested cost more, so that having fewer features was more pricy. They want to sell the bundles they want to sell at the price they quote, and that’s that. However, just for calling, I saved $40 a month, so I possibly shouldn’t complain. However, how many customers know to call to ask for a cheaper rate?

Verizon is just as bad. They also sold me their three-in-one package, but didn’t tell me that my home was too far from their switching station to get reliable DSL service. Their computers should have flagged that immediately. By the time the fourth technician showed up (and I can’t tell you how many hours I spent on the phone with technical assistance) and told me that I just couldn’t receive DSL at my location, I was locked into a year-long contract with DirectTV. Thus, instead of saving money, I spent more money because I had to resubscribe to Comcast’s internet only.

Consumers are between a rock and hard place. Comcast and Verizon are both badly managed companies, and there are no alternatives. And if they represent “market competition,” they are competing for who can provide the worse service and the fewest answers and the longest waits on the phone for technical assistance.

I enjoyed, as I said, your Sunday column, but don’t believe what Comcast is telling you. The problem is worse than they said, and their response is more typically bad than good.

KTJ wrote:

Thanks for your article in today's Baltimore Sun referencing Comcast and the exceptionally slow response (3 1/2 mos.) Mr. Brawerman received regarding his e-mail issue. I thought it was very ironic that a "Michael" and "Byron" at Comcast also said the exact same thing to me when I called Comcast about a different problem.

Making a long story short, I wonder if Comcast is training their customer support staff in a less than professional manner.After making ten calls over a month... I just gave up. They tired me out! Comcast Won.

Again, thanks for your article and exposing companies with less than credible customer service behavior. I would bet your right arm that if Mr. Brawerman owed Comcast money they would have busted his doors.

Hopefully, our society will become more civil and respectful to each other. Similar to a CEO who sets the tone and desired culture throughout the organization, I hope a new administration in Washington come January will not only improve our country's respect around the world, but also domestically. Keep up the great work.

Megan from Catonsville reported similiar problems:

I read your Sunday Sun article about Mr. Brawerman's email highjacking with interest. I, too, had my Comcast email highjacked. I realized it when I started to get more and more "email not found" notices and realized that the email address was my comcast account, but the name associated with it was different. I too called Comcast and I too never received a call back. Luckily I had no personal data in my email box. I did email my address list and ask if they had received an email from me lately that seemed strange and no one had. The Comcast Customer Service person (who promised to call me and never did) did suggest that I change my password. Yes, my password was very easy because my whole family used it. Once I changed my password, I didn't have anymore issues.

Unfortunately, the "I don't care and I won't call you back after promising" experience with Comcast applies to all aspects of their business - TV, Internet Service and Phone. Yes, I have all three with Comcast. For the first year everything was wonderful - no issues. Then in November 2007 I started losing channels. losing phone messages, having calls go straight into Voicemail and then not being able to access Voicemail and having degraded Internet service. I still have all those issues in May 2008. Comcast supposively has replaced my outside cable twice, they have replaced my modem, my box outside and connectors. I have waited for atleast 6 techs to come to my house, once no one showed up at all. All have referred my problem to the outside techs. In each case, the outside tech never shows up unless I call several times. I have spent hours waiting on the phone to talk to someone (I currently believe that Comcast has it's musaic playing just loud enough to drive you crazy).

I have learned several things: 1. Comcast will rarely call you back.(18 calls and only twice did I get a call back.) 2. The inside techs know that the outside techs won't come, but have no control over the situation 3. Catonsville has some equipment issues which Comcast swears they fixed, but I am still experiencing issues. 4. Always get a ticket number from your Comcast service person. When you call always use the ticket number. After a month Comcast drops any comments from your customer record. If you don't have a ticket number, the Customer Service Rep doesn't know anything about your issues. 5. If you push hard enough you can get a refund, but it will take hours of your time and your service will not be fixed. 6. If you are referred to a supervisor, your customer record will not be updated so the next time you call, the customer service rep will not know about your problems. So after you call the Supervisor, call back to a customer rep to update your ticket. In my experience, it took 6 calls and a demand to talk to the Supervisor's manager to get a call back from the Supervisor, Chavis Robinson.

After all this time and effort, my service continues to have issues, Obviously, I am looking at alternatives. Thanks for helping people!

(AP Photo)

Lately, there have been a number of online tools to help with budgeting. You give your account and credit card numbers and these sites inform you when bills are due and show you where you’re spending your money.

One of the latest is Quizzle from online mortgage lender Quicken Loans.

But Quizzle is more in-depth than some of the other sites. It will look at your credit report.

The site doesn’t ask for your Social Security number, but it does ask lots of personal information to get access to your Experian credit report. Quicken says the inquiry into your credit report doesn’t affect your credit score, as it does when a potential creditor takes a peek.

Giving out so much personal information made me Queasy when I tried Quizzle. But Quicken’s Mike Dunklee swears the site is secure and the company is not going to start pitching you products. (The site’s disclosure information does say it may contact you to take part in a survey, and if you agree, will then ask for contact information.)

Quizzle is fun. You immediately get your Experian credit score and can look at the accounts open in your name, the balances, whether you have been late and who has looked at your report of late. It makes estimates on your home’s value and taxes. It’s interactive, so you can update your Quizzle account when your finances change.

The site also creates a Quizzle Score, which is a combination of your credit score, home value, savings and the amount of debt you have in relation to your income. According to Quicken, the debt-to-income ratio weighs far more heavily in mortgage lending decisions than the credit score.

The site is free. Dunklee says Quicken hopes that if users ever are in the market for a mortgage, that they will think of Quicken. So far, more than 12,000 accounts have been opened.

Let us know what you think if you try Quizzle.

 

 (photo: Bloomberg News)

Do you --- and your hard-earned money --- want to go to Atlantic City? Here's one way to score a free place to stay ... and no, I'm not talking about sleeping on the beach.

On May 28, "logo-painted representatives" from Harrah's Casino be at the Inner Harbor, giving away keys to 960 rooms in the resort's new waterfront tower.

But the keys are only good for one night:  

Thursday, June 19, heretofore known as "Harrah's [hearts] Baltimore Night". 

Harrah's is giving away free Thursday nights in New York, Philadelphia and Washington too --- $1 million in all, to introduce visitors to its new 44-story tower, which features a spa, a 86,000-gallon heated pool and entertainment area and regional food complex.

The representatives, in all their logo-painted glory, will distribute the keys between 5 p.m. and 7 p.m. on the northeast corner of Pratt and Light streets.

Now, as Dan Thanh pointed out, it's all part of a shameless ploy to lure you --- and your gambling dollars --- onto the strip. Now, if they threw in a free tank of gas ...

Updated: Michelle Deal-Zimmerman has a few more details on this promotion on her travel blog, What's the Deal? 

So I told you yesterday that I finally got my rebate last week. I had figured it was coming since, according to the last two digits of my Social Security Number, it was supposed to land on Friday.

I can't say that I was 100 percent confident that I was going to see it since I started seeing a few stories about rebate glitches. The Akron Beacon Journal is reporting that "about 1,500 tax rebates nationwide have been deposited into wrong bank accounts, and the IRS is working with the taxpayers and banks on a case-by-case basis. The IRS said to date, nearly 30 million rebates worth more than $27 billion have been issued and the vast majority went directly to the correct bank accounts."

According to the ABJ:

As many as 350,000 households are not getting the $300 per child refund owed as part of economic stimulus rebate payments. The IRS says taxpayer error and problems with commercial tax preparation software were responsible for the problem affecting a tiny percentage of the 130 million taxpayers expected to benefit from the refunds.

The IRS said corrected checks will be mailed out automatically and taxpayers don't need to call or take any additional steps. However, those checks will not be sent until early July.

Anyone out there worried that you might be one of the ones affected by the glitches? My sister got a letter from the IRS in the mail that said her rebate was being mailed to her even though she filed electronically. She figures that's fine as long as it shows up.

(AP Photo)

Not sure what to spend your tax rebate on? Here's some great ideas from fatwallet.com on deals that will help you stretch your money a little farther:

As the Web site says:

Stretch that tax stimulus check and save on good bargains for the things you really need. Here's a list of super hot deals, special offers and coupon codes that will help you get more for your money . . . so you can have a some extra coinage to put back into your gas tank! This page keeps getting better all the way through June 30th. And with Cash Back on most things you purchase, you can really compound the savings? We call it "fuel for your fire". Enjoy!

You'll find deals on everything from $359 Off Inspiron 1525 Laptop w/ 2GB Memory, 250GB Hard Drive & Choice of 8 Colors - $599 (not combinable w/ all other offers) at Dell Home Systems to 4+ Night Beach Vacation Packages from $556 at Expedia.com.

Check it out if you're looking to pump that rebate check right back into the economy.

p.s. I just checked and my rebate landed in my checking account last Thursday. hooray!

 

 

Although they use it for research, few people are turning to the Internet when it's time to buy items like music or cell phones, according to a study released by the Pew Internet & American Life Project.

Only 22 percent of music buyers and 12 percent of cell phone purchasers bought online, the survey found.

You might think the survey was skewed along generational lines, but not so.

Yes, more than three-quarters of younger folks were more likely to use some means to find out about music online. For example, twice as many 18 to 35-year-olds said they listen to streaming online samples of songs (46 percent), compared to those 36 and older.

But most music purchases were still CDs, and still taking place in stores. About 69 percent of the younger survey population said they bought all or mostly CDs.
 
Then again, about 27 percent of those 18 to 35-year-olds were buying most, all or half of their music as downloads, twice as many as those over 35.

You can read the full report here. 

 

 

(photo: Barbara Haddock Taylor/Baltimore Sun)

One more entry in the 'Everything is More Expensive' file: shoes.

Some manufacturers like Brown Shoe Co., which makes Buster Brown and Via Spiga brands, are raising prices from 5 to 12 percent this fall, reports the Wall Street Journal. Payless Shoes has already increased its prices, and Nine West will increase by 15 percent on certain styles next year, according to the article. 

Why the boost?     

Another drumroll please....

This week, the Treasury Department sent out 15.575 million economic stimulus payments to American households totaling $13.562 billion.

The grand total so far?

Have you gotten your rebate yet? According to the Q&As we've been running, I'm supposed to get mine today, but I haven't checked my bank account yet.

Let us know if you got yours yet and how you spent or saved it.

 

 

 

Planning to use that tax rebate money on a little home improvement, like painting the exterior of your home?

You might be surprised by the price of paint. Add it to the growing list of products affected by the skyrocketing costs of petroleum. 

But don't skimp on the paint you purchase for the exterior of your house, or you might spend more money in the long run, sez Consumer Reports.

Some newer formulations developed to meet government standards for volatile compounds didn't last as long under CR's tests for dirt, cracking, mildew and color change.

Here are the researchers' tips for making your paint job last as long as possible or, if you're not a DIYer, how to hire a good painter.

 

Retail gas prices hit record highs for a ninth day in a row, according to auto travelers group AAA, as the nationwide average for a gallon of regular unleaded hit $3.787, up from the previous high of $3.776.

Due to those high gas prices, AAA predicts that the nmber of Americans traveling during the Memorial Day holiday will drop compared to the previous year. This is the first decrease in Memorial Day travel projections and marks an indication of summer travel trends. 

About 37.87 million Americans will travel 50 miles or more from home this holiday, AAA says, a decrease of nearly 360,000 travelers from last year's total.

AAA also expects that more travelers will stay closer to home this year, which means local tourist attractions could reap the benefits of higher gas prices.

I haven't made any vacation plans yet so I'm not sure how this affects me. Anyone out there changing their summer plans because of high gas prices?  

Posted by Dan Thanh Dang at 11:15 AM | Permalink | Comments (0)
Categories: Cars, Energy/Utilities, Travel