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Financial meltdown creates opportunities for scammers

The year 2008 has been marked by economic turmoil, first with high gas prices, followed by the subprime mortgage crisis, which in turn triggered a full-scale financial meltdown. It's been a fertile year for the world's scammers, who find fear and desperation helpful.

Getting a home loan altered is no easy task
Home loan modifications are designed to save homeownership, but they've also created another mortgage maze pitted with "buyer bewares."

Automaker's financing arm could access bailout funds

GMAC, the financing arm of General Motors, will become the nation's newest bank. The Federal Reserve this week approved GMAC's application to become a bank holding company, making it eligible for federal assistance.

Bush says letting Big 3 collapse is "not responsible"

In the end, the pressure to prevent the collapse of the U.S. auto industry was greater than concerns about "throwing good money after bad." The Bush Administration has announced plans for a $17.4 billion rescue package that will help General Motors and Chrysler avoid certain bankruptcy.

Five steps to protect Social Security numbers

The Federal Trade Commission is recommending five measures to help prevent Social Security numbers from being used for identity theft.

Injections of naltrexone may help reduce desire to drink

Alcoholics struggling to keep off shots of the hard stuff over the festive season may want to consider an alternative shot — a monthly injection that keeps them off the booze.

Madoff Ponzi scheme rattles securities officials

With all of the attention focused on the $50 billion Ponzi scam allegedly run by Wall Street money manager Bernard L. Madoff, the North American Securities Administrators Association is offering investors a series of tips to avoid dishonest investment services providers.

30-year fixed loan hits 5.94 percent

When it cut the Federal Funds Rate to nearly zero Tuesday, the Federal Reserve was hoping to push home mortgage rates to record low levels. It seems to be working, at least so far.

Voluntary industry guidelines a failure, bankruptcy lawyers charge
Much-hyped foreclosure prevention programs relying on voluntary loan modifications are failing to reach a significant number of troubled homeowners and are often backfiring when they do so, according to newly updated research released today by the National Association of Consumer Bankruptcy Attorneys (NACBA).

New rules ban unfair practices against consumers

As expected, federal banking regulators approved a final rule Thursday that addresses longstanding consumer complaints about credit cards.

Buy one car, get one free -- now that's an incentive to get your attention! It's not likely that many auto dealerships will be following the lead of University Dodge, a Davie, Fla., dealership that's attracted a lot of attention with an offer of a free Dodge Ram two-door truck with the purchase of a 2008 Dodge Ram Quad Cab.

Losses may reach $50 billion; many prominent families affected

The latest cataclysm to rock Wall Street is the news that prominent financier Bernard Madoff has been arrested for running what he allegedly called "a giant Ponzi scheme." Losses to investors may run as high as $50 billion, the Securities and Exchange Commission (SEC) charged in a civil complaint.

Weak sales push venerable toy seller into the red

In yet another sign of a collapse in consumer spending, KB Toys Inc., a staple of shopping malls coast to coast, says it's bankrupt again and will close all its stores.

Economics predict the recession will begin to ease in June 2009

Just about the time government statistics found that American families' net worth had plunged $2.8 trillion, a group of economists predicted that the current recession may turn out to be the longest and most painful downturn since the Great Depression.

Company illegally collected information on its Web sites, FTC charged
Sony BMG Music Entertainment will pay $1 million to settle federal charges that it violated the Children's Online Privacy Protection Act (COPPA) by collecting, maintaining, and disclosing personal information from thousands of children under the age of 13 without their parents' consent.

Buyers of U.S. vehicles could get low-cost loans, cash discounts

It's not only Congress and the American taxpayer coming to the aid of ailing U.S. automakers. A group of Midwest credit unions are pledging $10 billion in low-cost financing for the purchase of General Motors vehicles.

Consumer sentiment continues to drop as economic concerns increase

Consumers aren't feeling very cheery this holiday season, as consumer economic sentiment fell to a record low and concern over personal finances reached record highs.

To shop or not to shop? That's the question when it comes to private student loans.
Every time you apply for credit, the potential lender pulls your credit report. That action can send your FICO score down a few points on average, according to Craig Watts, public affairs manager at Fair Isaac Corp., the company that formulates the FICO score.

Owners of multiple homes need to mark Jan. 1, 2009, on their calendars. That's the day that the rules change when it comes to how much profit you might be able to keep out of IRS hands when you sell.

110-page investigative report exposes "broken" agency culture, process

In a blistering 110-page report released today, the House of Representatives' Committee on Energy and Commerce took Federal Communications Commission (FCC) chairman Kevin Martin to task for what they called "a number of troubling allegations."

Solidify your loan terms when you have the chance

Mortgage interest rates are down to their lowest level in nearly a year, likely to get lower, but just as likely to reverse course at any time.

Homeowners with modified loans fall back into delinquency, official says
Providing help to homeowners facing default, many who had subprime loans, was supposed to help stem the wave of foreclosures. But the preliminary evidence doesn't support that, a top federal banking officials says.

Broadband expansion included as part of public works program

President-elect Barack Obama pledged to expand Americans' access to broadband Internet as part of a massive new public works program designed to generate jobs and improve the economy, he said in his weekly video/radio address.

Quick financial fix can cause more problems than it solves

Some 10 million American households borrow money through payday loans each year, and payday lenders now have more storefronts than McDonald's and Starbucks combined. But those turned down by payday lenders may be better off than those who get a loan.

Supposed lawsuit settlement is bogus

Consumer protection agencies in South Carolina are warning of a new under-handed scheme to separate you from your money. It's called the class-action scam and it works like this:

Shoppers flock to Internet in search of bargains

Drawn by sharp discounts, consumers hit the Internet in near record numbers Monday, as online merchants logged $846 million in online spending, an increase of 15 percent over 2007's Cyber Monday sales.

Lower rates equal more loans, refinancings

The Federal Reserve's decision to guarantee most new mortgages caused mortgage rates to drop dramatically. As a result, there was a rush to take out new loans and refinance existing ones.

Keep yourself safe from scammers while hunting bargains

If you're shopping online instead of at the malls this holiday season, the Federal Bureau of Investigation (FBI) warns you to be wary of cybercriminals.

Bad economy, risk aversion causes banks to pull back

Credit cards have become as synonymous with America as baseball and apple pie--but those days may be coming to an end. According to one industry analyst, the financial industry may cut as much as $2 trillion in credit card account lines over the next 18 months in order to reduce risk of damage from increasing delinquencies and defaults.

Yellow-bellied sliders, map turtles may contain Salmonella risk
What do 1,000 yellow-bellied sliders and Mississippi map turtles have to do with public health? They can make people very sick.

Alternatives sought for dangerous diet pills

The weight loss drug Fen-phen was banned more than a decade ago after research revealed its life-threatening side effects. But researchers say if a safe equivalent to Fen-phen could be found, it might be a powerful weapon against obesity.

Black market for stolen data prospers even in bad times

It may be a gloomy financial picture out there for those who make an honest day's living, but for thieves, hackers, and traffickers in stolen data, business is booming.

Consumers defy pundits' predictions

Despite forecasts that economic fears would prompt consumers to sit on their wallets this holiday season, "Black Friday" sales at the nation's retailers rose three percent over 2007, according to ShopperTrak, a provider of retail information.

Pregnant woman injured in bargain-hunters' frenzy

Police on Long Island, New York shut down a Wal-Mart store after early-morning shoppers trampled and killed a store employee in an effort to reach "Black Friday" bargains.

Marketers barred from selling risky loans

With mounting foreclosures and rising unemployment, the State of Colorado has taken a number of actions against deceptive mortgage brokers and foreclosure rescue firms.

Budget cuts, bad economy haven't stopped flood of advertising mail
Dwindling budgets haven't stopped banks from reaching out to clients through direct mail. During the third quarter of 2008, Mintel Comperemedia reports that the estimated number of banking direct mail offers sent to current customers rose 42 percent from the second quarter.

Reduction in third quarter is largest on record

Nationwide home prices continue to fall, with the decline in the third quarter the largest on record, according to S&P/Case-Shiller Home Price Indices. It's a continuation of a trend that began last year.

Government will purchase more mortgages, offer backing for loans

The U.S. Federal Reserve has upped the ante significantly in the fight to unfreeze the credit market for consumers and would-be homebuyers.

Agency insists amounts were "minute" and do not pose an immediate danger
Melamine -- the chemical blamed for the deaths of four infants in China and countless pets in the United States -- has been found in infant formula, the U.S. Food and Drug Administration (FDA) said, according to The Wall Street Journal.

Ebb and flow of markets may provide relief people seek
Talk is intensifying in Washington about the need for an economic stimulus package early in the Obama Administration, to help lift the country about of its economic plunge. But economics, itself, has already delivered something of an economic stimulus, without the Treasury Department having to write a single check.

Increased debt loads have many Americans feeling pressure

For many Americans, holding onto their jobs a while longer may top their holiday wish list this year.

Buyers should be told if vehicles have been wrecked or flooded

Attorneys general from 42 states are asking the U.S. Federal Trade Commission to strengthen "Buyer's Guide" notices to indicate if used cars, trucks or SUVs that are for sale have suffered prior damage from collisions or floods.

A class action suit claims various insurance companies failed to deliver the promised benefits to thousands of East Coast homeowners after Hurricane Isabel.

A class action lawsuit charges pharmacy benefits management firm Caremark Rx Inc. violated the Tennessee Consumer Protection Act with its mail order service policy. The suit accuses Caremark of �unfairly and deceptively representing to consumers� that they must use the company�s mail order pharmacy system rather than retail pharmacies.

About 50 of the largest U.S. employers will form a health insurance pool for about four million part-time, temporary and contract employees who lack coverage, as well as early retirees, former employees who have exhausted their COBRA coverage and children of employees who are students but no longer qualify for coverage.

Reverse mortgages have the potential to pay for long-term care at home, according to a study released by the National Council on the Aging (NCOA).

Americans have been responding to warnings that without long-term care insurance, they may be plunged into poverty if chronic disease incapacitates them. But now many of the 6 million policyholders are hearing the part of the story their agent didn't tell them.

New York Attorney General Eliot Spitzer says health plans in New York State are failing to disclose required information that could help consumers obtain coverage for medically necessary treatments.

Dems reject pleas for bailout funds, want specific spending plans

The Big Three U.S. automakers, who went hat-in-hand to Congress this week for a bailout, won't get it -- at least not right away.

Britax car seats mispriced on Target site, store refuses to complete sales

Bargain-hunting parents were thrilled when Internet chat boards lit up with news of a big sale on Britax car seats at Target.com -- just $43 instead of the usual $280.

One-month decline is largest on record in sixty years

Led by falling gasoline prices, the government's Consumer Price Index plunged a record one percent in October. It was the largest one month decline in prices since the U.S. Labor Department began keeping records in 1947.

Britax car seats mispriced on Target site, store refuses to complete sales

Bargain-hunting parents were thrilled when Internet chat boards lit up with news of a big sale on Britax car seats at Target.com -- just $43 instead of the usual $280.

Attorney General warns against scams targeting homeowners in trouble

The state of Illinois has filed seven new lawsuits against so-called mortgage "rescue" companies and warned consumers about an alarming rise in these scams that prey on vulnerable homeowners on the verge of foreclosure.

State Attorneys General strong-arm retailer to make good on its deals

When electronics retailer Tweeter entered bankruptcy, it told consumers it would not be able to honor gift certificates after November 15, 2008. Several attorneys general had other ideas.

Home sales rise five percent in the Sunshine State

Florida is among the nation's hardest hit states when it comes to home foreclosures, so the news today from the Florida Association of Realtors should catch the attention of real estate watchers nationwide.

Treasury head says automakers should get help from other sources

Treasury Secretary Henry Paulson says if Congress wants to bail out General Motors and other U.S. automakers, it should appropriate the money. But he told the House Financial Services Committee Tuesday he's not giving carmakers any of the $700 billion from the Troubled Asset Relief Program.

New Congress, White House may clamp down on contract clauses

Have a dispute with a business and want to take it to court? You may be out of luck. If you signed a contract for those services, there was probably a "mandatory arbitration" clause in it.

Agency breaks with Bush administration over helping homeowners

The Federal Deposit Insurance Corporation (FDIC) has "gone rogue," publicly breaking with the Bush Administration on the best way to end the housing crisis.

CPAs offer advice on how to be ready for the unexpected

A wind-whipped fire that destroyed at least 100 homes and a college dormitory in the celebrity hideaway of Montecito, Calif., is a reminder that disaster can strike anywhere, anytime. At least four people were injured in the Montecito fires and thousands of homeowners and college students had to flee as flames and smoke approached.

Alternatives are available, even with tight credit

Despite the $700 billion dollar government bailout plan for financial institutions which was supposed to encourage commercial banks to start lending again, and recent news stories about a so-called thaw in the frozen credit markets, getting a loan these days is still difficult, even for those with pristine credit ratings.