Consumer Blog

You may have heard the legend of the notch babies. There is always a group out there raising money to try to increase Social Security benefits for notch babies, who were born between 1917 and 1921. The fundrasiers say they need money to lobby Congress to correct an error that led to notch babies receiving less money than they should have for the last 30 years.

This article has a full explanation - and some mythbusting - on this topic.

Missouri consumer writes:

If I choose to close the account instead of depositing money to cover a bank overdraft charge (and/or overdraft amounts) what will the bank do? Will this affect your credit report? Can the bank take legal action?

Your first step should always be to contact the bank and try to get the charges removed. 

Now, I'll answer your questions in reverse. Yes, as with any unpaid debt before the statute of limitations, the bank has the right to sue. As for the credit report, the bank is not likely to report you to the credit bureaus.

Instead, the bank will probably report you to TeleCheck or ChexSystems, which keep databases on customers with negative banking history like bouncing checks, overdrawn accounts, etc. Here's more info on that, along with instructions on checking your on banking history file with those companies.

We have blogged extensively about how to check your free credit report three times a year. The credit report we usually talk about tracks your history of paying bills, loan payments, etc.

But there is another kind of report on you that you have a right to access for free - this one tracks any negative banking history, such as bounced checks, unpaid fees, etc. This report is kept in a national database, and banks check it before agreeing to open an account for you.

One big difference between this report and the traditional credit bureau report: all of us have files with the credit bureaus. But with this banking database, only consumers with negative history will have a file. So if you're told there is no record for you, that's good.

There are two companies that keep these negative history files, Telecheck and ChexSystems. ChexSystems will let you submit your request online, by mail or by phone, while TeleCheck requires you do it by phone. Both will mail your report to you.

Missourians now have protection against utility shutoffs in hot weather, just as they do in cold weather. The legislature this year passed a law creating a "hot weather rule," so that utility customers can't have their power shut off on extremely hot days. This is the summer equivalent of the "cold weather rule," which has been the law for 30 years in Missouri. Here's how they breakdown:

Hot weather rule (effective Aug. 28, 2008): From June 1 to September 30, utilities can not shut off service for nonpayment if the temperature is forecast to be above 95 degrees or the heat index above 105.

Cold weather rule: From November 1 to March 31, utilities can not shut off heat for nonpayment if the temperature is forecast to be below freezing.

Consumers often need to get a copy of something in their medical file from their doctor, either for themselves or to have sent to another doctor.

Your doctor owns the contents of your medical file. This includes the dates you've been seen, billing, diagnosis, drug use, etc. It also includes images like x-rays and MRIs.

Under the federal law HIPAA, you have a right to get a copy of anything in your file. Your doctor has the right to charge you a reasonable fee to copy that item.

With images, many are now done digitally, so making a copy is no problem. If your provider only does them in hard copy film, they may have to hire an outside company to make copies, so that may drive up the cost.

Cost of digital copies are not regulated in Missouri, but paper copies are. Here is the fee schedule that limits what providers can charge to make copies of medical records.

Many consumers are suprised to find there is no limit on credit card interest rates (APR) under federal law. Those limits are set by state law, and card issuers are governed by the laws of the state they're based in.

So let's say you're in Missouri, and you a have a credit card account with a bank based in California. That card company is subject to California laws when it comes to the interest rates they can charge you.

As you'll see in this article, that's why a lot of credit card companies set up shop in states like Delaware and South Dakota, which have laws that are generally more favorable to the banking industry.

Curious how soon you can get out of credit card debt? You can use our handy calculator.

In Missouri and across the country, those planning a funeral have the right to buy a casket anywhere they choose. When a loved one dies and you enlist the services of a funeral home, you will see an assortment of caskets to choose from. But you don't have to buy from there.

Federal law says you have the right to buy a casket from a vendor or store of your choosing, and the funeral home handling your service can't charge you extra to handle that casket.

You have a number other rights when dealing with a funeral home, and the FTC has this summary of your rights.

AG Nixon issued a consumer alert today reminding veterans and their families that they don't have to pay when trying to qualify for veterans benefits.

There are a number of companies - "Veterans benefits specialists," insurance companies and others - who charge a fee (or get some other kind of gain) from helping consumers wade through the complicated process of applying for benefits through the Department of Veterans Affairs, or VA.

But there are accredited organizations who will provide that service for free. They'll help with the paperwork, make sure you provide all the info required, hit your deadlines, etc.

There's nothing illegal about charging veterans / family members / widows a fee for this help, but just know that the help is available for free. Pass this along to veterans who may be appyling for benefits in the near future.

The massive flooding in northeast Missouri will surely be followed by a massive campaign by con artists to scam those flood victims. AG Nixon put out a consumer alert with the warnings.

It could be price gouging: for example, people need pumps, generators, bottled water, etc, and merchants start jacking up the prices, simply to take advantage of the dire need.

It could be home repair scams: for example, a carpet, siding or cleaning contractor comes knocking on doors soliciting business in a flood-damaged neighborhood. He collects $2000 to do a job, then disappears.

Take a look at the consumer alert for our best advice on avoiding and reporting these problems.

The Attorney General's Office issued a Consumer Alert today regarding student loans. After your college is chosen, you must decide what financial aid program will work best for your family. AG Nixon provided some tips for this big decision process.

First, you may be given a list of lenders by the school's Financial Aid department. This is just a list of perfered lenders, and by no means complete. You may choose any lender you perfer.

Second, there are several scam web sites that resemble the name and the URL address of the Free Application for Federal Student Aid (FAFSA). Beware of these phony sites! Also, watch for companies that advertise filing your FAFSA for a fee. The FAFSA application is free.

Third, to learn more about the many factors that go into your borrowing decision, check out this helpful student loan calculator the AGO provides.

eBay apparently is promising to give 100% protection to buyers who get ripped off after using PayPal to pay for a product on eBay. 

When buying an item from an online auction like eBay, there's always the risk that something goes wrong - even that the seller is a crook. AG Nixon has prosecuted cases like this.

We get lots of consumer complaints every year about problems with these auctions. In 2007, this category was 9th on our list of top consumer complaints.

So what eBay seems to be saying is that if you use PayPal to purchase, and you don't get your stuff, they will cover your entire loss, no matter how big.

Keep in mind there are some stiff time restrictions for filing disputes - you need to act quickly for eBay to cover you. You can also file a consumer complaint with our office.

The federal government has a Web site designed for consumers regarding the banking system, laws, regulations, how to file complaints, etc.

We often get questions about bank policies - "Is it legal for them to charge me an overdraft fee," and all kind of other questions. Bank regulations are complex and handled by several different agencies. Literally, if a bank has the word "national" in its name, that changes who regulates it. There's the FDIC, the Comptroller of the Currency, the Federal Reserve, Office of Thrift Supervision and state agencies like the Missouri Division of Finance.

This Web site is a one stop shop that may answer your questions and show you where and how to file consumer complaints.

Rebate checks--first, they do exist, and many people have received them. That being said, a lot of us, myself included, are still waiting. There are lots of questions that Missouri's consumers have regarding their rebate check status. Maybe some of the answers can be found in a letter that a coworker of ours recently received.

The letter, from the Department of the Treasury, has a headline that says:

"Understanding Your Economic Stimulus Payment." It begins by stating how much he will receive, and the date that he should expect the check.

Also in the letter:

"If you do not receive [your check] within six weeks of this notice, please contact us at 866-234-2942.You will not be required to report the amount of your stimulus payment as taxable income on your 2008 federal income tax return.

If you received a refund on your 2007 federal income tax return and had it directly deposited into a bank account, we will directly deposit your stimulus payment into the same bank account. If not, your stimulus payment check will be mailed to you. If your tax refund was directly deposited into a refund anticipation loan account, your stimulus payment check will be mailed to you.

Your payment is based on information you submitted on your 2007 federal income tax return such as your filing status, the number of qualifying children, and your net income tax liability."

The letter also explains that the calculation of dependents is based on the number of qualifying children multiplied by $300. Children that qualify are born after December 31, 1990, and has a valid Social Security number.

Again, if you have more questions, you can call 866-234-2942 or visit www.irs.gov.

We've added some new features to our KnowMO service that lets you search online for consumer complaints. When we launched a year ago, we showed you how many complaints there had been against a particular company.

We believe the new version is even more helpful. You'll see "complaints" and "complaints resolved successfully." We think it's informative to consumers to know which companies try to work out problems when they arise.

So if a consumer files a complaint and the company does nothing, that will obviously not go into the "Resolved successfully" category. But two scenarios that we classify as successful:

1. Consumer files a complaint, we contact the company, and the company grants the consumer's wish (refund, credit, perform requested services, redo a job, etc)
2. Consumer files a complaint, we contact the company, and the company makes a good offer to resolve the problem. Even if the consumer refuses to accept the offer, we will call that successful.

If you have friends or relatives without Internet access, they can still get this information by phone at our Consumer Protection Hotline, 1-800-392-8222.