By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

The lure of retiring where it’s warm is strong for baby boomers.

I know. I’d like to do it myself.

In my post, “The Dream of Retiring Where It’s Warm Overseas,” I offer tips and resources on how to go about this complicated project.

Baby boomer consumers can get themselves in a lot of trouble by not thoroughly checking out overseas housing deals.

Hundreds of people nationwide invested their retirement savings for a home in Costa Rica with Paragon Properties of Costa Rica, based in Hollywood, Fla.

A lawsuit filed in federal court alleges Paragon Properties was “a Ponzi-type scheme,” targeting people near or at retirement age. More than 900 Paragon Properties customers put down deposits for about 2,500 parcels of land in Costa Rica within the last six years, yet much of the land remains untouched and not a single customer has had a home built, according to court records.

Paragon Properties’ chairman has said the company’s 16 planned communities, primarily on the Central American country’s Pacific coast, stalled because of a poor economy and difficulties in obtaining local building permits, reports The Miami Herald’s article “Paradise Lost.” As of last fall, the company had been waiting for months for financing to come through, chairman and owner Bill Gale said in an October deposition in an earlier lawsuit against Paragon Properties.

Consumers who wanted to get their money back were apparently reimbursed using the deposits of later investors, according to the article.

Read The Herald’s article for details on this overseas housing project gone awry.

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By Rita R. Robison, Blogging at The Survive and Thrive Boomer Guide

Public Citizen, a consumer advocacy organization, offered recommendations this week to the U.S. Consumer Product Safety Commission on several steps to take to better protect the public.

They include:

• Committing to a rigorous review of the public online incident database during the first year after it launches.
•  Removing roadblocks to the enforcement of testing and certification requirements for consumer products.
• Publicizing performance benchmarks to achieve the commission’s goal to increase the speed in which it notifies the public about dangerous products.

“The CPSC is at a crucial point in implementing the mandates that Congress set out in the Consumer Product Safety Improvement Act of 2008,” said Christine Hines, Public Citizen’s consumer and civil justice counsel, who testified at a public hearing to discuss the commission’s agenda and priorities for fiscal year 2012. “We will continue to urge the commission to make decisions in favor of protecting consumers and not industry.”

The safety act was signed into law in 2008. Among its provisions are:

• Adding safety and testing requirements for consumer products, especially children’s products.
•  Calling for the gradual elimination of lead from products.
•  Banning phthalates in toys and children’s articles.

Calling for the creation of a comprehensive publicly accessible consumer complaint database.

The online incident database, expected to launch in March 2011, will allow consumers to more efficiently report potential hazards and better research products before they buy, Hines said.

Public Citizen urges the commission to be vigilant about including new product safety information and updating the database in a timely manner, she said.

Public Citizen also suggested that the agency support legislation that would require foreign manufacturers importing goods into the U.S. to maintain registered agents in the U.S. to receive notice of civil and regulatory claims initiated against them. Requiring a registered agent would allow the commission and consumers to hold foreign manufacturers accountable, especially given that the majority of potentially harmful consumer products are imported, Hines said.

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By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

On July 1, new rules went into effect for overdrafts on your debit or ATM cards. You now get to choose in advance what happens when you make a charge on your debit or ATM card and don’t have enough money in your account to pay for it.

According to the Federal Reserve Board Web site,  there are usually two ways that banks deal with an overdraft:

• Standard overdraft practices. Your bank will cover your transaction for a flat fee of about $20 to $35 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee.

• Overdraft protection plans. Your bank may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks typically charge a fee each time you overdraw your account, but these overdraft protection plans may be less expensive than their standard overdraft practices.

The different under the new rules

Basically, your bank has to give you the option to choose how it will deal with an overdraft from you. In the past, some banks automatically enrolled you in a standard overdraft program when you opened an account with them. Now, the bank has to ask your permission and you have to opt in. If you don’t opt in, beginning August 15, your bank’s standard overdraft practices won’t kick in when you charge too much. Instead, the transaction will typically be declined when you don’t have enough in your account to cover it. You won’t be charged an overdraft fee, but you also won’t be able to complete the purchase or withdrawal.

If you have an existing account that was opened any time before July 1, you’re supposed to get a notice from your bank about their standard overdraft practices, asking if you want them to continue or not. If you open an account after July 1, you will be asked if you want to opt in or out when you fill out the initial paperwork. Whichever way you decide, you can change your mind at any time.

A warning from the Better Business Bureau

If you write checks or set up automatic bill payment from your checking account, the new rules don’t cover checks or automatic bill payments. Your bank can still automatically enroll you in their standard overdraft practices for those types of transactions. If you don’t want that to happen, contact your bank, but you may find that you don’t have the option to cancel.

It pays to shop around when you open a checking account. Banks could lose significant revenue if a majority of customers now opt out of overdraft protection, so some banks may decide to charge their customers new fees to make up for that loss of revenue.

Always be aware of the terms of service of your account, and that includes reading those updates that come in the mail. If you don’t like your bank’s terms, shop for a bank whose fee structure you like better.

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By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

College graduates who need temporary work while looking for full-time jobs may be interested in mystery shopping, but the Federal Trade Commission cautions that many mystery shopping offers are scams.

It seems like an attractive proposition: getting paid to shop or dine out and then provide reports about the experience. However, scammers often ask mystery shoppers to pay an up-front fee before they start or to deposit a check that turns out to be phony.

 The FTC offers these tips on mystery shopping:

• Don’t pay upfront fees to be a mystery shopper. Legitimate companies don’t charge people to work for them.
•  Never agree to deposit a check from someone you don’t know and then wire money back. The check will bounce, and you’ll owe your bank the money you withdrew.

To learn more, go to Mystery Shopping Scams May Target New College Grads.

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By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

Millions of Americans are enjoying barbecues and picnics today, while others have loaded up the family and are traveling.

If you’re grilling food, use a meat thermometer to make sure the internal temperature of hamburgers has reached 160°. To avoid foodborne illnesses, don’t leave food out in hot weather more than two hours. If it’s above 90°, the time limit is one hour. See “Food Safety Tips for Fourth of July Barbecues” for details.

If you’re looking for decorating tips, one idea is to pick red, white, or blue as a theme for your party. See “Top 10 Tips for Celebrating the Fourth of July” for suggestions.

If you’re setting off fireworks, never have any portion of your body directly over a fireworks device when lighting the fuse and move back to a safe distance immediately after lighting. Never try to re-light or pick up fireworks that haven’t fully functioned. See “How to Avoid Injury and Death When Using Fireworks” for more information.

Happy Fourth of July. I hope you have the best celebration ever.

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