Consumer Blog

Missouri consumer writes: 

Is this rebate taxable by the federal and/or state government at the time we prepare our 2008 tax forms?

The answer is no to both questions. On these pages, you'll see that the IRS (see question #6) and the Missouri Department of Revenue explain that this stimulus payment is not considered income and therefore is not taxable.

Missouri remains in the vast minority of states with no breach notification law. That means if a company loses our personal information, they're under no legal obligation to tell us. So you could be an identity theft victim and not realize you're at risk.

An employee raids the database full of credit card numbers, a laptop is stolen from a car trunk, etc. You can see countless examples of security breaches at this link. You've probably heard about many of them. These are just the ones we know about.

Missouri is one of seven states that has no breach notification requirement in the law. 

Fortunately, many companies and organizations disclose this information voluntarily. Also, most ID theft results from lost purses and wallets and unshredded trash, rather than from data breaches.

I want to clear up some misunderstandings about placing a security freeze on your credit report, also called freezing your credit report. Missouri now has a security freeze law.

A security freeze makes your credit report unavailable to those who try to check it -- say to evaluate you for a loan -- without your express permission. It is therefore the most powerful prevention of ID theft. Let's say an identity thief takes your Social Security number and birth date and goes to a bank to take out a loan in your name. Because you have a security freeze, the banker can't see your credit file, and the thief gets rejected. Beautiful.

A security freeze has no effect on the everyday activity on your credit report. When you make your credit card and loan payments (or not), that will still go on your credit report. If you open a new credit card or take out a loan, that will hit your report. You can still check your own credit report three times a year for free using the usual system. It won't stop you from using your credit cards.

It simply stops unauthorized people from opening new accounts in your name.

Missouri consumers like their No Call list. So when a telemarketer violates the law by calling them, those consumers file complaints. Many times those complaints lead to lawsuits by AG Nixon. And those lawsuits lead to court orders requiring telemarketers to pay.

Our enforcement efforts have now hit the $3 million mark with those court orders. So as I've written before - you can't say it doesn't do any good to complain.

File your complaints against telemarketers with us here.

We put out our Top 10 consumer complaints list every year, and the Missouri Secretary of State puts out her Top 10 Threats to Missouri Investors each year. Here is the 2008 list, which is summarized thusly:

1. “Senior Specialists”
2. Unlicensed Sellers & Unregistered Products
3. Free Lunch or Dinner Offers
4. Real Estate Investment Schemes
5. Internet Fraud
6. Variable and Equity Indexed Annuities
7. Oil and Gas Scams
8. Gold, Precious Metals and Foreign Currencies
9. Auction Rate Securities
10. Prime Bank Schemes

We cover investment scams on page 24 of AG Nixon's publication Know Your Rights.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.