Six tricks to avoid when renting a car

Renting a car this summer travel season? Get your motor running.

But, before heading out on the highway, make sure you avoid the games car rental companies are playing to raise revenue from unsuspecting consumers. Yep, rental groups are getting creative with a slew of odd add-on fees and wacky rules in an apparent attempt to lift their profits.

The folks over at CNN serve up a list of six odd rules consumers should steer clear when shopping for a summer car rental:

1. The price game
Agents are charging exorbitant late fees, like $1,000 a day with one example in Dayton, Ohio, and are even raising rates if patrons return their rentals early. The remedy? Secure a rate online using a site like Priceline or CheapOair.

2. Age limits often apply
Under 25-years-old? You may have to shell out additional cash. Car rental companies often add a $20 a day or more surcharge to your bill. If you're younger than 21, it may be almost impossible to score an auto.

3. Additional drivers cost more
Plan to share the wheel with another driver? Buyer beware. If there's a second driver, car rental groups often charge additional fees running about $10 to $12 per day.

4. Child safety seats cost more
Even though safety seats for children is a requirement, some car rental companies are tagging on a surcharge for upgrading car seats for kids.

5. Car sizes redefined
Some sneaky car rental companies are changing the class of the vehicle--from compact to a mid-size auto-- in an attempt to raise rates for unsuspecting consumers.

6. Short trips penalized
Plan to drive under 75 miles in a rented car? You may be penalized. Rental companies are charging an automatic refueling service charge for those taking shorter trips.

Click here for the lowdown.

Consumer Woes :: Pizza Hut coupon fraud

This is the story of a die-hard Pizza Hut fan ... who is accused of coupon fraud.

Danielle orders Pizza Hut frequently online and receives advertisements and promotions via email. At the beginning of August, she received a Pizza Hut coupon offering her two free medium pizzas and an order of breadsticks. Danielle could claim her free pizzas as long as she signed up for a free trial of Rhapsody (followed by membership).

According to her story, the coupon was advertised on the Pizza Hut Web site. Thinking the advertisement was legitimate, Danielle signed up for her free trial of Rhapsody and clicked on the link where she could redeem her prize.

She followed the instructions and when she went to check out she was charged $10. Why was she charged $10? A fee was only supposed to be applied if the order was a delivery. The order was marked as takeout so this fee didn't make sense.

Here is where the consumer woe sets in.

Danielle calls Pizza Hut asking about the coupon and why there was a fee. She first spoke with a rep who didn't have any idea about the coupon. He transferred her to his supervisor.

The woman claims Danielle was "making the coupon up" and tells Danielle that she is complaining about a charge that was legitimate. The woman could not explain how the charge was legitimate, or how the coupon got onto the Pizza Hut Web site. The woman proceeds to explain that if she had "read the fine print, it says the two companies aren't connected and that we have no responsibility regarding the coupon."

Danielle demands the coupon be honored, because it was Pizza Hut who sent her the coupon. Eventually she got the woman to call her local store to get the $10 charge taken off.

To read Danielle's version of the consumer woe, click here.

Oil prices hover around $100 per barrel

There has been no shortage of factors to influence the fluctuating price of a barrel of crude oil lately, but as Wall Street reorganizes prices seem to be reaching a plateau around $100.

The string of hurricanes in the Gulf drove prices up over concerns of damage to infrastructure, but the shaky days on Wall Street pushed prices downward due to fears of stagnant growth in the future.

The New York Times reports that the full extent of the damage from Hurricane Ike and the other storms has not been fully assessed because most oil and natural gas refineries in the affected states have not reopened.

The article also references statements made by the nation's energy department which indicate that oil inventories and stockpiles are declining. This decrease in supply could drive prices up.

In addition, although concerns over future growth can drive the price of oil down, in a very turbulent economy, oil can be seen as a more stableinvestment. As some investors more their money into commodities such as oil,prices are likely to go up. The price of oil is also tied to the strength of the dollar.

If the dollar gains value, investors are less likely to look to commodities. When the dollar is weak compared toother major currencies, commodities become more attractive investments and the price of oil is likely to go up. After reaching more than $140 per barrel during the summer, oil had fallen to around $90 as Wall Street readjusted to the recentrestructuring.

Concerns over hurricane damage, growth and the stability of the dollar all seem to be keeping oil around $100 perbarrel, at least until new information emerges from the financialsector.

Click here for more.

--Bridget O'Sullivan

Bigger isn't better with shrinking grocery stores

In an industry that has long declared "bigger is better," many supermarkets are opening increasingly smaller stores, according to the New York Times.

The article reports that Safeway has already opened a smaller store in California and Whole Foods and Wal-Mart are contemplating doing the same.

The previous mentality within the industry seemed to be that offering the largest selection would attract the largest customer base, but that is being reconsidered. Shoppers often go to the grocery store on the way home from work or to pick up a few last-minute items and in those cases the speed of the visit is very important.

A trend toward more prepared and ready to eat foods is also contributing to the shrinking stores. The article reports that themany of the plans for these smaller stores still include large deli counters and quick-meal options.

Big supermarkets continue to be very successful, so the trend is likely to emerge in new locations. Instead of building increasingly larger stores, more major supermarkets are planning to downsize their new branches.

A relatively new entrant in the US market, the British retailerTesco, has pursued the "shrinking store" strategy in the Southwest.

The article reports the company has opened more than 70 stores in the past year alone. Retailers are hoping that revisiting the concept of the small localgrocery store will keep their customers loyal.

Click here for more information.

--Bridget O'Sullivan

Suspected fraud fuels sub-prime mortgage hysteria

As the sub-prime mortgage situation continues to worsen, the FBI confirms that they're investigating lenders for possible fraud. According to articles in The Wall Street Journal and CNN Money, Countrywide Financial Corporation could be involved in the suspected fraud within the industry.

The company’s practices of representing their losses and underwriting loans are said to be under examination. In addition, the company has also come under scrutiny after sending out letters to customers this week informing them that some personal data may have been compromised.

A former employee is cited as the cause of the leak and Countrywide is providing two years of credit monitoring services for free to customers believed to be impacted. This comes at a difficult time for Countrywide, the country’s biggest home-loan lender.

Though Countrywide is the biggest lending company involved, it's not the only company under investigation. CNN Money reports that the FBI is looking into the lending practices of a total of 16 mortgage companies.

As other major financial institutions continue to experience the negative effects of the subprime mortgage market, the FBI would not release the names of the lenders under investigation.

"The FBI has been investigating potential fraud in the mortgage/sub-prime lending industry, however, we can not confirm or deny which companies are under investigation," FBI spokesman Richard Kolko told CNN.

Click here for more information.

--Bridget O'Sullivan

Liar loans prolong mortgage crisis

Crippled by the downward spiral of real estate prices, homeowners who signed up for "liar loans" in better times are now unable to qualify for legitimate mortgages.

Liar loans are types of mortgages taken out with little or no amount of documentation. In other words, they're quick-fix loans approved without requiring proof of the borrower's assets or income.

Ninja loans, which is short for "no income, no job and no assets," is an extreme example of a liar loan that's causing major turmoil in the already tumultuous mortgage market.

According to the Associated Press, agencies like Fannie Mae and Freddie Mac have lost a combined $3.1 billion between April and June because of defaulted "liar loans."

Click here for more information.

Consumer Woes: Traumatic AirTran experience

A pair of newlyweds are verbally threatened and harassed at Boston's Logan Airport. And what does AirTran offer in compensation? A $25 travel voucher.

Returning from their honeymoon, a couple checks in three bags before boarding an AirTran flight. Since one bag is oversized, the worker informs the duo that there's a $29 charge. The newlyweds, who had a legitimate gripe, mentions that there was no charge for the bag when they initially flew into Boston.

Annoyed by the question, the AirTran work calls over her supervisor.

The supervisor arrives and says, "If you don't watch it, I'll charge you for that first leg, too." The couple protests and asks for the supervisor's name. The manager will only give out her first name and walks away.

At this point, the worker tucks her badge into her sweater and calls out "Next!" The newlyweds don't budge, and again, they ask for the supervisor's name. The worker refuses to give out her name and yells profanities at the couple, screaming at them to get out of her face. Based on reports, there are numerous witnesses and small children in the line.

AirTran initially denied the couple's claims. However, as reports began to surface, AirTran offered a $25 travel voucher as compensation.

Read more here.

Consumer Woes: Exploding iPod

Are you afraid of your iPod exploding? Buyer's beware.

Dale had his iPod plugged in to charge, using the USB cable that came with his iPod and attaching it to his PC. After around 10 minutes, the iPod began to produce a sizzling sound. He looked at his iPod, just in time to see an explosion of sparks and spewing smoke and immediately disconnected the device.

In most alleged "exploding" iPod cases this is the end of the story. Not in Dale's case. The iPod continued to smoke and spark while exuding a sooty substance. This went on for several minutes, causing a small fire on his table. He extinguished the fire before any harm could be done to his laptop. Eventually, the iPod calmed, although it was extremely hot for many minutes following.

Dale called the Apple hotline and the tech told him he would immediately be granted a new iPod at his local store, regardless of how old Dale's iPod was. When he went in to the local Apple store, no one would replace the iPod. The GM said there was NO WAY the iPod could be replaced, because it was not under warranty and there was no way Apple could ever really know what happened.

It turns out Dale's iPod will be replaced, and the GM at Apple apologizes for Apple and the tech, and for how the situation was handled. Read the full article here.

Apple yanks 'I Am Rich' iPhone app

The iPhone has quickly become a status symbol in today’s society and even though the price has dropped considerably in the past year, they're hardly a product for the average consumer.

Perhaps to poke a little fun at the spending habits of iPhone owners, the Los Angeles Times reports that Armin Heinrich, a German software developer, developed an application called “I Am Rich.”

The application costs $1,000 for iPhone owners to download to their devices. Unlike other handy apps such the scientific calculator, the level, or any number of flashlights which can be purchased for about $.99, the “I Am Rich” application has no function.

It merely displays a picture of a ruby on the screen, and, if you show your friends, proves that in fact you are rich. The New York Times reports that eight people have purchased the app, but that several have demanded a refund.

Heinrich, the software developer, has no problem with that.

“It’s OK to return the money. I did not want to harm anybody with my app,” he tells the New York Times.

He simply thought it would be funny to create one that was so expensive because some people complain when they have to pay for any kind of app. The shoppers who asked Apple for their money back probably didn’t see things in the same light as Armin Heinrich.

“I regard it as art. I did not expect many people to buy it and did not expect all the fuss about it,” he says.

Click here for the latest.

Consumer Woes :: Down the drain

Here's a rant from one of our members:

Why do technicians feel they can charge gobs of money for so little time? Recently, Maureen had her brother replace the innards of her toilet. Everything looked great and was working well.

A few days later Maureen noticed water leaking from the bottom of the toilet. Instead of bothering her brother again, she called a plumber located in Gardner, Mass. The plumber came, looked at the problem and tightened two screws under the toilet tank's bottom. The bill? $142.94.

Let's do the math. 5 minutes tightening the screws, 10 minutes writing out the ridiculous bill and a fuel surcharge of $15. When asked why the bill was so high, the plumber said he was charging a "diagnostic charge."

Maureen has emailed the company twice regarding the total rip off and has yet to hear from them.

High price of a free credit report

Looking for a free credit report? Interested in FreeCreditReport.com? Think again.

The site's TV ads feature slackers singing of their life problems and are appealing to a younger crowd. It also has a Web site name that implies the report is free. Little do people know FreeCreditReport.com charges a credit-monitoring service that costs $14.95 a month, automatically taken from your credit card.

Kris Steele remembers these commercials, especially the lyrics that spell out F-R-E-E. Anxious about his credit, he went to the site and signed up for the report. A few months later, he checked his statements and found the Web site was charging him $14.95 a month. Steele doesn't recall seeing anything about this fee and feels duped by the sites faulty name and advertising.

The problem with FreeCreditReport.com is in its advertising. Due to legal issues in the past, it now has a disclosure on its home page saying it's not affiliated with the annual free credit report program. This disclosure is in fine print on the side of the home page, on a subdued background.

This is leaving consumer groups concerned.

The three major credit bureaus, Experian, Equifax and TransUnion are required to offer reports through the authorized AnnualCreditReport.com but the bureaus also make money from their own credit reports. The only authorized site for free credit reports is AnnualCreditReport.com.

To see the NY Times report, click here.

Senators address student loan crisis

On Thursday, July 31, a group of 39 state senators signed a letter urging Governor Deval Patrick to act quickly to assist the Massachusetts Educational Finance Authority, the quasi-public lending concern that this week announced it has no money for private student loans this fall.

According to reports released last week, more than 40,000 students will be unable to acquire loans this fall.

The Massachusetts Educational Financing Authority is a nonprofit lending authority that has been granting loans to students for 26 years. Last year the authority gave out $510 million dollars in student loans. The loans have a low fixed rate, which is optimal for students attending school in Mass.

This year, 40,000 students will be out of luck because the authority is facing fiscal difficulties. A month ago the authority thought they would be able to find money for private loans, but a bond insurer faced a possible downgrade in its credit rating, causing the loan rates to increase.

Thousands of families are nervous, and are running out of options. The authority is currently contacting the families impacted by the news urging them to seek federally backed loans, then shop for private loans based on the school's recommendation.

Lois Rosenthal of Winthrop adds, "I'm a little dismayed to hear that they won't have money, because it's a jungle out there, getting private loans."

DRIVER'S ED: Avoiding gas gimmicks

Don’t let your desperation for a cheaper tank of gas fool you into becoming the victim of a gas station ripoff. As gas prices continue to rise, some unsavory con artists are trying to turn their own illegitimate profits.

CBS News reports that more consumers are being duped into buying products that claim to increase a car’s fuel efficiency. These products are often chemicals you put into your gas tank or mechanical devices applied directly to your engine. Unfortunately, they’re useless.

Even worse, Kelli Grant of smartmoney.com tells CBS News, that "the really scary part is that they actually void your manufacturer's warranty. If your car is damaged by these products, you'll have to foot the bill.”

Another pitfall consumers should avoid in the quest to save on gasoline is buying coupons online. While many coupons and gift cards offered on popular auction sites are legitimate, not all of them are the real thing.

As a result, it’s advisable to check whether the company associated with the coupon is in fact willing to redeem it. In addition, beware of offers that claim to provide free gift cards for gas. Read carefully because the fine print often makes these offers seem much less valuable.

More and more drivers are also being hit with hidden fees when they try to pay with credit cards. Even worse, it might not always be clear that you will be charged. “You won't find out about the surcharges until you swipe your credit card," says Grant.

Visa and Mastercard don’t permit such charges to be assessed, the article reports, but you still have to read the fine print. Many cards that offer rewards for gasoline often stipulate a lot of restrictions that make it difficult to redeem those rewards.

Click here for the lowdown.

--Bridget O'Sullivan

CONSUMER WOES: Digging deep into the debt hole

Why do Americans continue to dig themselves into a hole?

Back in the day, people set money aside for personal purchases and saved for surprise expenses. Today, the average American household carries $8,565 in credit card debt, a 15% increase from the year 2000.

In total Americans have $2.56 trillion in consumer debt, up 22% since the year 2000 according to the Federal Reserve Board. For some reason, debt is increasing as most American's incomes are not. We have grown into a consuming society that believes it is OK to be in debt, in order to have that new phone, new outfit, or new car.

Disposable income that must be used for debt (credit card payments, car loans, mortgage interest, principle) is up to 14.5% from 11% just 15 years ago.

The New York Times tells the story of Diane McLeod and her debt hole.

McLeod began debt free, but a divorce caused her to spend and rack up $25,000 in credit card debt. She bought a home soon after with a $135,000 mortgage. Five years later illness and irresponsibility caused McLeod to owe $237,000 on her mortgage.

Now in foreclosure, it is hard for her to see light at the end of the tunnel.

CONSUMER WOES: Gas prices for dummies

Due to the rapid gasoline spike and decline, gasoline stations seem to be selling for extremely different prices. So keep your eyes on the news and the current price at the pumps.

Adam Gaffin from UniversalHub.com had an interesting observation here about the tumultuous fluctuation of prices at the pumps. He points out on his blog here that the gasoline price at a Shell station in West Roxbury, MA was $4.20 a gallon. Meanwhile, the Hess station a mile away on Centre Street was selling gasoline for $3.86 a gallon.

It seems to be a city-wide phenomenon. On Memorial Drive, for example, two stations had gasoline prices at $3.85, and a third station with a price of $4.10 per gallon. The stations listing these prices are all in a row.

Click here for more.

CONSUMER WOES: Bank of America nightmare

Chris Hooley lost his wallet and canceled his Bank of America debit card immediately. Canceling his debit card should have let Bank of America know to freeze his account. However, the bank allegedly sat back as an identity thief withdrew $40,000 dollars from Hooley's account in a single day.

According to his blog here, Bank of America didn't even have a clue of what was happening. Hooley only noticed the massive withdrawals after the identity thief was arrested at Best Buy, trying to purchase multiple computers.

Thankfully, Best Buy caught the thief red handed. As the identity thief attempted to use Hooley's card, Best Buy's register system sent an alert to the police. Luckily for Hooley, if a reported lost or stolen card is in use in the system, the police are alerted instantaneously.

Unfortunately, the thief managed to make five transactions with Hooley's account earlier in the day. The first two were deposits. Two checks were written and a large portion of the checks were less cash received, handing the thief a total of $12,500. The last three were withdrawals. One withdrawal was for $26,000 politely handed over from a Bank of America teller. The last was for $12,500, again left unnoticed.

Keep in mind all five transactions occured inside five different Bank of America centers.

Lesson learned? Watch your account activity and watch your wallet at all times ... especially if you have an account with Bank of America.

CONSUMER WOES: Nightmare at the pump

James stopped for gas at a Kum & Go, in Springfield, MO last night on his way to drive across state to visit his family. On his journey his car was acting increasingly strange and died abruptly in the driveway of his family's home.

The next morning, James had his car towed to the shop. The cause of this automotive disaster? The car had been filled with diesel. It turns out a trucker poured diesel into a gasoline tank at a distribution center. At least one other station was filled with gasoline, however the other station closed down after an hour of pumping out Diesel. Kum & Go pumped out diesel for nearly five hours.

Kum & Go is paying for all repairs, and has claimed full responsibility.