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  • Bankruptcy law hurts consumers and lenders, reports find

    Posted Jul 22 2008, 11:34 AM by Karen Datko
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    Money Blog: Smart Spending Blog - MSN Money

    This post comes from Martin H. Bosworth at partner blog ConsumerAffairs.com.

    Two reports released this week show that bankruptcy reform passed in 2005 -- rather than helping consumers -- actually costs consumers in the form of more credit card debt, and may be causing greater losses to banks due to increased foreclosures.

    According to a study by Michael Simkovic of the John M. Olin Center for Law and Economics at Harvard Law School:

    Supporters of the law claimed that it would benefit consumers as well as creditors, because reducing the losses faced by creditors would lower the cost of credit to consumers. ... The data suggests that although bankruptcies and credit card company losses decreased, and credit card companies achieved record profits, the cost to consumers of credit card debt actually increased. In other words, the 2005 bankruptcy reforms profited credit card companies at consumers' expense.   Read More...

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  • Home warranties are not always what they seem

    Posted Mar 25 2008, 10:53 AM by Karen Datko
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    Money Blog: Smart Spending Blog - MSN Money

    This post comes from David Wood at partner blog ConsumerAffairs.com.

    "Protect your home, save money, and avoid the hassles of home repair now!" began the junk e-mail I received about American Home Shield, one of the largest providers of home warranties.

    Not to be confused with a builder's warranty, a so-called home warranty -- actually a service contract -- is typically purchased for existing homes, especially homes sold by real estate agents. These service contracts generally cost $300 to $600 for a yearly basic-coverage plan that includes items like ceiling fans, water heaters and furnaces.

    Here's how a home warranty is advertised to work: Instead of calling a repair company when something breaks down, you call the warranty company, which sends out a local contractor to diagnose the problem. You'll pay the contractor a service-call fee, typically $50 to $100, and the contractor informs the warranty company about what needs to be done to fix the problem.

    Once the OK is given, the contractor repairs or replaces the problem item, and you don't pay a cent more. Or so the ads promise.   Read More...

    Discuss ( 12 comments) 3,511 Views Digg this | Email this | Link to this

  • Air purifiers under scrutiny again

    Posted Jan 31 2008, 07:58 AM by Karen Datko
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    Money Blog: Smart Spending Blog - MSN Money

    This post comes from Truman Lewis at partner blog ConsumerAffairs.com.

    Sounds strange but the very device you put in your master bedroom to clear the air may in fact be creating more pollution.

    The Wall Street Journal reported this week that air purifiers may produce a highly reactive ozone gas that, while beneficial as a filter of harmful ultraviolet rays, may also serve as a pollutant on the ground.

    Air purifiers have been a source of controversy for years. In 2005, Consumer Reports magazine said that even the best air cleaner can be a frivolous investment and that there was little evidence the devices will reduce the effect of indoor pollutants for those with asthma or allergies.   Read More...

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  • The 12 duds of Christmas 2007

    Posted Dec 28 2007, 08:47 AM by Karen Datko
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    Money Blog: Smart Spending Blog - MSN Money

    This post comes from Mark Huffman at partner blog ConsumerAffairs.com.

    Some items under the tree bring joy and satisfaction. Others produce a heartfelt "bah, humbug!"

    In the latter category you'll find "the 12 duds of Christmas," our annual roundup of the year's worst consumer products. Some are good products poorly produced. Some were simply ill-conceived to begin with. And for some reason, China seemed to play a recurring role in this year's list.

    Oh, by the way, we consider only U.S.-based consumer products and services for the duds dishonor. And, no, government agencies and elected officials are not eligible. Good thing, too.

    Here, then, are our picks for "the 12 duds" for 2007.   Read More...

    Discuss ( 8 comments) 13,689 Views Digg this | Email this | Link to this