T-mobile's misleading "makeover" pitch

Since late May, T-Mobile has been running an ad campaign that promises to help consumers find a wireless plan with the “best coverage and price—even if it’s not with us.” Online, an image of actress Catherine Zeta-Jones is the centerpiece for the T-Mobile web page that points bargain hunters to BillShrink.com, an independent website that evaluates your calling needs “against every national wireless plan.” From May through the end of July, T-Mobile says about a million consumers have clicked through to do a makeover and provided Billshrink with key information about their individual cell phone usage. 

But we found one problem: BillShrink searches for plans offered by only four national carriers—AT&T, Sprint, T-Mobile, and Verizon Wireless—which dominate the market with mostly contract plans and some prepaid offerings. So Billshrink doesn’t search “every national wireless plan,” a fact we confirmed with Samir Kothari, Billshrink’s co-founder and vice-president of products. 

Conspicuously missing are four national prepaid carriers—Boost Mobile, Net10, Tracfone, and Virgin Mobile—which together serve some 22 million price-conscious U.S. customers. 

Don't throw out that toothpaste tube so fast

In the September issue of Consumer Reports, we published the results of a curious series of tests one of our experts ran to gauge how much skin lotion, detergent, ketchup, mustard, glass cleaner, bottled hand soap, and toothpaste is typically left over after consumers think they've used up all the contents in the container. 

After emptying the contents in the usual way, our tester waited a few days to allow the remnants to settle. Next he pumped, poured, squeezed, shook, and tapped as much as possible to extract any additional amounts. After that, he cut open the packages, and removed and weighed whatever was left.  Click here for the details. At the end of the trial, our tester calculated that, depending on the product, as much as 25 percent of the stuff you we paid for could have easily been tossed in the trash.

Being a tightwad, I know a thing or two about getting my money's worth out of packaged goods. So, our exercise got me thinking about products that encourage wastefulness, and the little tricks I employ to eke out a bit more mileage.

I can think of eight products right off the bat:  Mayonnaise, honey, maple syrup, sugar, barbecue sauce, shampoo, toothpaste, and corn flakes.  

Ever try to remove the coating of mayo from the sides and contoured bottom of the jar? It's tough. I use a pliable rubber spatula with a long handle and narrow head, and it's pretty effective. With honey, which can turn solid over time, I put the bottle in a small pot of boiling water until the crystalized syrup dissolves and reverts back to its original viscosity. Similarly, when the last of the maple syrup in a jar becomes sugary and sticks to the container, I put it in the microwave for a few seconds until it melts. Over the years, I've discarded way too many bags of granulated white sugar because they turned rock hard. That usually happens when the sugar is exposed to moisture and humidity, causing the surface to dry. When that occurs, I pummel the block with a rolling pin, then throw the chunks in the food processor. These days, I make it a practice to take the sugar out of its paper bag and store it in a sealed container.

If I can't wring out the final drops of thick liquids like barbecue sauce and shampoo by storing the containers upside down (it's especially easy with wide-mouth bottles made expressly for that purpose), I add a few drops of water and swish it around. Cider vinegar works particularly well with tangy condiments like ketchup, mustard, and barbecue sauce. When I've reached the bottom of the corn flake box and only broken pieces remain, I grind the shards until fine in the food processor, then use the crumbs to coat fish or poultry. And finally, when I'm not longer able to squeeze any more toothpaste out of the tube with my thumb and forefinger, I run the smooth hard side of my toothbrush handle over the flattened tube, which inevitably yields enough paste for another couple of days.

Now you know a few of the tactics I use to avoid wastefulness, so it's time to share your secrets. What products do you tend to toss prematurely, and how do extract the last drops?

Cuomo: Lots of Dell users in NY are due compensation

Cary Lou Canfield has a nightmare computer repair story that is, unfortunately, all too familiar to many Dell customers. The White Plains, N.Y. resident paid $209 for an in-home service warranty when she bought her Dell computer several years ago. Six months after purchase, when the computer started exhibiting a "multitude of problems," she called the company's "800" service number and was connected to a representative in Mumbai. Thus began numerous, hour-long phone conversations in which she was asked to 1) turn off the power, 2) move the processor  3) pull off the back of the computer and 4) remove and replace memory sticks on her own. 

That $209 sure was paying for a lot of nothing. 

Eventually Dell dispatched a repair person to her home. That genius replaced a mother board and went away. The computer still didn't work, so Ms. Canfield finally took it to a local repair shop. The shop replaced a part that the Dell folks hadn't even diagnosed as a problem, and charged Ms. Canfield $100. The computer has worked well ever since.

"They should pay me for the in-home service plan because I did most of the work," she told a sympathetic crowd today at Consumers Union. 

As I listened to Canfield, I remembered my own frustrating experiences with a Dell technical service rep years ago. I knew I was in trouble when he asked me if I owned "a small screwdriver."

Fortunately, Canfield–and thousands of other Dell customers in New York–now have redress through their state attorney general's office. Today, New York Attorney General Andrew Cuomo spoke at Consumers Union, home of Consumer Reports, about a $4 million settlement with Dell Computer and Dell Financial Services intended to compensate New York residents harmed by Dell's fraud, false advertising, deceptive business practices, and abusive debt-collection practices.

He also intimated that other states might be initiating similar settlements soon, for the benefit of their residents.

Dell legal settlement doesn't settle our issues with its service

In light of Dell's $4 million settlement today with the New York State Attorney General's office regarding deceptive practices in its warranty-covered tech support, our colleagues in electronics looked at how the computer maker was doing now with its support practices, compared with two years ago when the complaint was first filed. Click here to link to view those decidedly mixed results.

Mint + Quicken Online = The best of both?

Intuit's recent announcement of its intention to acquire Mint, the largest of the free online personal-finance services, portends good things for consumers--if the company can combine what's best about Mint and  its own free online product, Quicken Online. The Mint press release noted that Mint would now take the lead as Intuit's premier online personal finance product. Scott Gulbransen, a spokesman for Intuit, said both products would continue to be available for free. 

When Consumer Reports Money Adviser reviewed these services recently, we found much to like about both, but found neither perfect. Quicken Online, for instance, didn't split transactions, so you could characterize a debit-card purchase plus cash back in two different categories (it now does this). I also had trouble getting it to include my American Express account properly, and customer-service responses were of little help. 

Mint, for all its snazzy design, still doesn't allow you to account for checks that haven't cleared, allowing you to see what you really still have in the bank. Quicken Online does that with aplomb.

A merger of these two products that takes the best of both would be ideal, in my view.

From the companies' press releases, however, it's not clear that's going to happen–at least not where it counts for users. Gulbransen did say Intuit would adopt Mint's search-engine capabilities that recommend, for example, lower-interest credit cards–including cards from companies that advertise with Mint. I consider that function to be tangential to the main role of such products: helping consumers do a complete job of organizing their finances. 

If you're not sure whether to stay or go from either product, here's my advice: Stay with what you already have at this point, and watch for changes. If you haven't started with either, you might want to hold off until next year, after the acquisition is expected to be finalized. Or, consider a third alternative. As our report shows, there are other worthy competitors, such as ad-free Yodlee MoneyCenter, that apparently aren't leaving the market or merging with anyone–as far as we know.–Tobie Stanger

Marketing the same products to men and women

Have you ever wondered why companies make distinct versions of everyday consumer products like shaving cream, hair coloring, deodorant, pain reliever, even breakfast cereal for men or exclusively for women? Or why the woman's version of denim jeans, shampoo, or designer fragrances might cost more than a similar version of the same brand product aimed at men? Sometimes there's a logical reason for the different products lines, for instance, unique nutritional needs or a scent that's particularly manly or feminine. Other times, it smacks of marketing to an audience that's willing to pay a premium for certain goods.

Here at Consumer Reports, we're just as curious as you are. For an upcoming story, we'd like you to help us track down products you've seen that come in specific versions aimed at women and men, and whether you've noticed any price difference between the two.

Keep your eyes peeled.

No tax bite on cash-for-clunkers vouchers

In case you were wondering, those vouchers of up to $4,000 to purchase a new car through the government's "cash for clunkers" program aren't considered taxable income to buyers. So it won't cost you anything on the 2009 federal income tax return you file next year.

For tax geeks, here's the language from the Consumer Assistance to Recycle and Save Act of 2009 (CARS): 

Sec. 1302 (h)(2)

FOR PURPOSES OF TAXATION- A voucher issued under the program or any payment made for such a voucher pursuant to subsection (a)(3) shall not be considered as gross income of the purchaser of a vehicle for purposes of the Internal Revenue Code of 1986.

For a change, good news from the IRS!–Tobie Stanger

Ways to improve college 529 plans

The Treasury Department's analysis of Section 529 plans, published this week, offers some useful recommendations for improving these state-based college savings plans, which have become increasingly popular financing vehicles for the middle class.

The report offers several ways states can improve their plans. Here are two we like a lot:

•Offer more age-based index funds. Funds that provide stock and bond allocations tied to a child's age are popular and well-suited for many middle-class families. That's because the proportion of stock gradually decreases over time, reducing risk of serious financial loss as the child approaches college age. But 5 of 48 state-based programs don't offer such funds. And while index funds have proved to be a cost-effective way to achieve good returns over the long run, only 23 of the 43 states with age-based funds offer them in index versions.

•Dump the home-state bias. Only Arizona, Kansas, Maine, Missouri, and Pennsylvania give a state income tax break to residents who put their money in the 529 plans of other states. If all states would do this, more parents could shop around for the least-costly plan that suited their needs.

Click here to read more of the Treasury's recommendations. Recently, Consumer Reports Money Adviser's Money Lab analyzed 529 plans, and found 5 that earned A's.  Click here for the report.

In praise of food that gives you gas

If you're of a certain age, you probably recall an era when supermarkets concocted wacky promotions to tempt you to spend more money and shop more often. Remember collecting Green Stamps and Plaid Stamps, and counting the days until you saved up enough to buy one of those swell gifts pictured in the wishbook catalogs? Then there were those in-store deals for books, linens, and tableware. At my house, we had a stash of mismatched dishes, tumblers, and steak knives, along with the ugliest collection of beach towels you ever saw. We also owned about a dozen different encyclopedias, all in letter "A" because the first volume was always cheap and my parents quickly lost their enthusiasm when successive volumes came with a higher price tag.

Budget-wise holiday planning: Will you give homemade this year?

The holidays are still months away, but here at Consumer Reports, we're already thinking ahead. In particular, we're interested in what types of homemade items budget-minded readers are planning to give to friends, colleagues, and family, and to service providers in lieu of cash holiday tips.

What's the best homemade gift you've given as an adult? What's the best one you've received? And what homemade gifts and/or tips are you considering giving this year?

Comment below. We'd love to know.

And if you're more concerned this year about your finances, now's the time to create a holiday budget. Planning this far in advance  allows you avoid overspending at crunch time. In a recent Consumer Reports Money Adviser, we reviewed several popular budgeting software products and services to get you started. And click here for additional advice on budgeting.–Tobie Stanger

Sour economy pits age against youth

Last month, I celebrated my 20th anniversary with Consumer Reports, and while I generally don't make a big deal out of milestones, this one meant a lot. My father was a blue-collar worker who came of age during the Great Depression, and his frugal ways rubbed off on me. He advised me to keep my money in the bank, never invest in anything riskier than a CD, and limit the balance in passbook savings account to the maximum insured by the FDIC. Since I had woefully little savings back in those days and retirement was an alien concept, his words of wisdom sounded perfectly reasonable.

Car dealers can use your drivers license to access your credit report

Considering all the time we spend fretting about protecting our Social Security numbers, this may come as a shock: Your SSN isn’t necessary for a car salesperson to surreptitiously peek at your credit report. He or she has the technological ability to unlock your file using only the information on your driver’s license.

“An auto dealership checking a consumer’s credit through TransUnion is not required to have the individual’s social security number (SSN) in order to submit the request,” says Steven Katz, a TU spokesman. Does the dealer need your permission to do that? “The dealer does not need ‘permission’; rather, it needs only certify a permissible purpose (such as extension of credit),” says Katz.

Equifax told us the same thing about the ability to get your credit report without your SSN, but stressed that anyone who pulls your file must get your permission to do so.

Experian did not respond to our query.

TransUnion prefers to get the SSN, because it more reliably helps locate your exact credit file, but it’s not absolutely necessary. The credit report access keys on the license are your name, address, and date of birth, all of which are essentially public information. The driver’s license number itself is not relevant, since the credit bureaus don’t use that as an identifier.

Car dealers commonly ask for and photocopy your driver’s license before they’ll let you take one of their cars out for a test drive, says Charles Cyrill, a spokesman for the National Automobile Dealers Association. If you encounter this situation and are worried that your privacy may be compromised, explicitly tell the salesperson that you are not authorizing use of your license to pull your credit report.

Buzzword: Media risk

The money world abounds with risks, as the past year  has vividly illustrated. And financial jargon has a name for most of them. There is, for example, “credit risk,” or the chance that a debtor won’t repay. Or “interest-rate risk,” the danger that interest rates will rise, causing investments like bonds to lose value. Or “currency risk,” when the value of an investment declines because of a change in the underlying currency. Just recently, via this article in a trade magazine for financial planners, we read about a new one: “media risk,” or the possibility of making a dumb move by overreacting to the financial news. Not that any of us would ever do anything like that, of course...

Consumer Reports Index: Credit card woes hurt consumer sentiment

Despite a rebounding stock market and promising economic indicators, consumers say they are feeling far worse about their finances than they have in the last seven months, according to the Consumer Reports Index for September.  Increased credit card, healthcare, and personal loan issues have contributed to stress levels, with 15.6 percent of Americans experiencing higher credit card interest rates and fees, and 8.5 percent losing health insurance or having their coverage reduced in August. 

On a positive note, consumer reactions showed the economy is no longer in freefall. Retail is stabilizing and consumers showed more interest in shopping for big ticket items like homes and cars. Employment improved significantly in August.  

The monthly Index—actually a composite of several indices—tracks trends in several areas of consumer sentiment, through responses from a nationally representative sample of households polled in August. Here are some of the key findings:

Consumers are facing more economic hardships. The Consumer Reports Trouble Tracker crept up to its highest level in the past seven months with almost 38 percent of Americans experiencing at least one major negative personal finance event in the past 30 days. For the sixth straight month, the ability to afford medical bills or medications remains the most prominent trouble Americans are reporting.

Lower-income households, earning less than $50,000 a year, were hurt most. In the past 30 days:

• 24 percent have been unable to afford medical bills or medications.
• 7.4 percent lost their job or were laid off.
• 12.2 percent lost or have reduced healthcare coverage.
• 14 percent missed a payment on a major bill (not mortgage).

Sentiment is declining. The Consumer Reports Sentiment Index is at the lowest level (38.1) since October ’08. When the index is greater than 50, more consumers are feeling positive about their situation. 

Small signs of life in shopping. The Consumer Reports Retail Index showed that purchasing in the past 30 days was up slightly for personal electronics and small appliances in the month of August compared to July, but flat for all other categories. Planned purchases in September are on par with August. 

Stress is up. When the Consumer Reports Stress Index is more than 50 consumers are feeling more stress than a year ago. It currently stands at 65.7, which is up from a year ago.

To read more about the Consumer Reports Index, including how it was conducted, click here.

President Obama puts focus on retirement saving

In his weekly radio address yesterday, President Obama laid out what he called "several common-sense changes" aimed at bolstering Americans’ savings, especially for retirement.

The major one will encourage employers to enroll more workers automatically in a 401(k) or IRA plan.

Automatic 401(k) enrollment has been around for some time. The automatic IRA, which we covered here earlier this summer, would provide a way for employers without 401(k) plans to offer their workers something similar.

Enrolling employees automatically in a retirement plan, rather than having them elect to sign up for it, is intended to get people to save for retirement who might not otherwise be inclined to.

Of course, people fail to save for many different reasons. In some cases it may be procrastination or a lack of understanding of their options, which automatic enrollment should help address. Others, though, may not save for the future simply because they can barely ends meet in the here and now. So this initiative, well intentioned as it may be, isn’t going to do much for them all by itself. However, another Administration proposal, currently before Congress, would expand the saver’s credit, which could make it more practical for people in that situation to put some money aside.

Other initiatives mentioned in the radio address include:

• A check box on tax returns allowing people to receive their tax refunds in the form of U.S. Savings Bonds. Savings Bonds generally have to held for 12 months before they can be redeemed and for five years to be redeemed without penalty, so this could encourage at least short-term saving (assuming anybody actually checks that box).
• Making it possible for employees to direct payments from unused vacation and sick days into their retirement accounts, rather than taking them in cash. This could benefit workers with the financial resources, as well as the will power, to take advantage of it.

--Greg Daugherty

Greg writes the “Retirement Guy” column each month in the Consumer Reports Money Adviser newsletter.