Recent news reports indicate that some retirees, disabled veterans and others, who do not normally file a tax return, may miss out on receiving their economic stimulus check if they do not file a tax return by October 15^th.

Persons who normally ARE NOT required to file a return -- because their income is too low or nontaxable -- MUST file a tax return this year to obtain their stimulus payment approved by Congress. The legislation provides a minimum payment of $300 for individuals ($600 for married couples). It also provides a payment of $300 for each qualifying child younger than 17. The married couple or individual must have qualifying income of at least $3000 to be eligible for the payment.

Various types of Social Security and veterans benefits may qualify you -- but not all.

 The IRS has Taxpayer Assistance Centers to help with filing for individuals whose income is $40,000 or less. More information about how to file and eligibility is available by going to this link http://www.irs.gov/newsroom/article/0,,id=177937,00.html at IRS.gov or call 1-800-906-9887 for a taxpayer assistance site near you.  

Being prescient after making against-the-grain predictions is a UCAN tradition. Now that the price of oil has reached $105 a barrel, the mainstream media is finally admitting what we've been saying for years: that OPEC's price "increases" aren't really increases at all - what's really happening is that the dollar's value is dropping so quickly that it takes $105 in U.S. dollars to buy what used to cost $75 U.S.  Not only that, these cuts in the value of the dollar actually help the U.S. Treasury pay its debts. Good for Uncle Sam, but very bad for you ... especially if you happen to live in America.

Economists have a word for this: They call it "Inflation."

Unfortunately our government has not been monitoring inflation. About ten years ago, the United States began reporting what was called the "Core Rate" of inflation. This "Core Rate" is deceptive ... it does not include the cost of energy, food or housing - those items are considered mere "statistical noise"

That's why Mr. Bernanke has been able to claim that our inflation woes are manageable. The official numbers do not reflect the true price of anything that people actually buy. Apparently, Mr. Bernanke has not purchased a gallon of gas lately ... gone grocery shopping ... or tried to buy a home or pay rent.

Mr. Bernanke's claims that we have "minimal inflation" are wearing thin. Even mainstream economists are waking up and smelling their overpriced coffee (as evidenced by Starbuck's recent financial woes). 

Here's how bad it is - the Mexican Peso is actually gaining on the U.S. dollar. That's right, the currency of a third-world country - a country where flush toilets are considered a luxury -- actually has a stronger monetary system than the U.S.A.

So why would our government inflate your money? They have three very good reasons:

1) in the short term, it stimulates the economy by creating the illusion of wealth. When there is more money in the system, it is easier to get into debt, because the money available to banks is cheaper.

2) In the long term, it is a great way to cut the benefits of wounded veterans and social security recipients.

It's ugly but true: Government benefits are tied to the Core rate of inflation" which doesn't measure the true rate of inflation. That means that COLAs (Cost of Living Adjustments) do not keep up with inflation. This process cheats Americans, but helps keep the government in the black. 

3) It is a fantastic way to pay off war debts and other foreign debts, such as money we've borrowed from the Chinese ... the debt is payed in dollars that are worth far less than the value of the money that was originally loaned. This is how Germany paid its debts to allied nations after World War I. At one point, it took a wheelbarrow of money to buy a loaf of bread in post-war Germany. Hopefully it won't get that bad here.

UCAN is known for making some pretty good predictions. We didn't predict that the Peso would outstrip the dollar, but we did tell you that the government was lying about the inflation rate more than two years ago. And we observed (correctly) that every major economic upheaval of the last 50 years has been accompanied by high oil and energy costs.

Of course UCAN members knew all about this trend TWO years ago, because we explained it in our Spring 2006 newsletter, which is available in print form to our members long before we ever put it on the Internet.

So the next time somebody offers you a penny for your thoughts, say "No Thanks, I prefer a stable currency, like the Peso."  And don't forget what President Gerald Ford said, "Inflation is the cruelest tax of all."

Consumers who bought the cold remedy Airborne, and related products, between May 1, 2001, and November 29, 2007, can get their money back. Simply visit airbornesettlement.com to make your claim, I just did, and I'll give an update on the results. You can file a complaint online or print and send a claim form, but you'll want to rack your brain and try to remember...

1. The store from which you bought the product(s),
2. The amount you spent on the product(s).
3. The city in which you bought the product.
4. The type of product you bought

According to Cory Doctorow at Boing Boing, the company that made Airborne "settled a lawsuit brought by customers who were upset to learn that the 'clinical trials' that proved that it worked were faked. If you bought any of this snake-oil, you can get some money back.

Boing Boing points to the Lede blog from the NY Times, which reports that

"Under the agreement, a special Web site was created here to accept claims from customers, who have spent far more than $23.3 million on the range of Airborne products, from Airborne On-the-Go and Airborne Nighttime to Airborne Gummi and Airborne Power Pixies, which is sweetened for children..."

Most consumers who purchased homes or condos from sub-prime lenders knew the time would come when interest-only payments would end and that the actual montly mortgage payment to which they agreed, would be due.  The truth is that 95%+ of the people that took out the loans and now have problems knew the risks. And they took those risks in order to live the American dream. 

For future reference, the following tips could serve as a checklist: 

1.       Only bank with reputable conservative companies;
2.       If it seems too good to be true, it is;
3.       Always ask about the worst case scenario.  If you cannot afford it now, don’t do it; and
4.       Never assume that things won’t go bad.
 

Foreclosure trauma depends on where you live because of the differences in state laws and the backlog of the court systems.  Here are two tips for navigating the dangerous waters of potential foreclosure.

Before borrowers take the following steps, it's best to call lenders prior to missing payments to try to get payments frozen, delayed, or suspended for as long as the negotiation process results will allow---enough time to avoid any actions after the fact.  People who waited for the default notice (especially in states where no court actions are necessary), the clock has pretty much struck midnight!  Rick Sharga, VP of marketing for foreclosure listings firm RealtyTrac said "that the very first two calls distressed borrowers should make are to the lender loss-mitigation department and not collections -- and secondly, to a local real-estate agent to assess for how much the house will sell and how long it would take".  More tips can be found at http://www.hud.gov/foreclosure/.

The degree of foreclosure trauma depends on where you live due to differences in state laws and the backlog of the court systems.  Having owned and sold properties in Texas, the state allowed lenders to auction properties just 21 days after the notice of public sale (http://www.foreclosures.com/www/pages/state_laws2.asp?state=tx.   Homeowners in New Jersey or New York could have more than a year to raise money http://www.foreclosures.com/www/pages/state_laws2.asp?state=ny), refinance or sell their place, courtesy of slow court systems. 

The long foreclosure timeline in some states means more red ink for lenders due to court costs and missed loan payments stacking up.  With a bigger risk on the other end, the underwriting standards are usually more difficult.  Getting loans would be much harder for buyers in these markets. Complicating matters are right-of-redemption clauses that allow homeowners in many states to buy the house back for the amount of the note plus interest which can be found together with the following summary of foreclosure rules for each state (http://www.tryforeclosures.com/z-article-state-foreclosure-laws.shtml).

In Minnesota or Alabama (http://www.foreclosures.com/www/pages/state_laws2.asp?state=al), the previous owner has up to a year to buy it back, causing headaches for new buyers or investors if they don't get the previous owner to waive this right.

A long foreclosure process is no guarantee that owners can sell and duck foreclosure. In these cases, the "timing" wouldn't necessarily work to the borrower's advantage.

In hot markets like California or Florida, where real-estate values increased at such a dramatic and rapid rate before cooling off,  recent buyers are stuck with notes worth much more than the house. James Gaines, a Texas economist said, "They can't afford to pay a 6% real-estate commission and come out whole".  Also, if the mortgage has been securitized or sold on the secondary market, finding someone with the authority to agree to a short sale could be difficult".  California timelines and procedures can be found at http://dca.lacounty.gov/TSForeclosure.html.  Another source for the most common California forcelosure laws can be found at http://www.foreclosures.com/www/pages/state_laws2.asp?state=ca.

Real estate advisors say many foreclosures can be avoided if people call their lender and try to work something out before missing a payment. Most lenders don't want to incur the hassles and costs associated with the foreclosure process.  Therefore,  many are  waiting a bit longer than state timelines to give buyers a better shot at keeping their homes. Freezes or delays in the foreclosure process are better options for lenders if borrowers are taking verifiable actions to work out the debt..

If a default notice has been issued, remember the advice provided by Rick Sharga, VP of marketing for foreclosure listings firm RealtyTrac. "The first two calls distressed borrowers should make are to the lender loss-mitigation department- not collections and the second call should be made to a local real-estate agent to assess sale value of the homel and how long it would take". 

As if losing homes to predatory lenders isn't bad enough, there are Internet scam artists ready to help the rest of us eliminate debt with "legal" ways to dispose of mortgage loans or credit card debt. The most frequent method is asking the victim to send between $1200 to about $2,000 to the scam artist, along with all the loan information particulars tha contain all of your personal information.  These predators then require a special power of attorney authorizing the victim to enter into transactions regarding the title of the  homes on their behalf. The scam artist proceeds to issue bonds and promissory notes to the lenders that purport to legally satisfy the debts of the victim. . In exchange, the victim is then required to pay a certain percentage of the value of the satisfied debts to the "scammer". The risk for identity theft is drastically increased because victims have provided all of their peronsal information to the scam artists.  

You can file complaints with the FBI at http://www.fbi.gov/ and with the National White Collar Crime Center at http://www.nw3c.org/ if you, a friend or relative has fallen victim to a debt collection scam.  This alert is close to me because a dear friend who was housebound due to illness, fell prey to Internet cyber crime.

A UCAN member reported that he purchased 2 prepaid credit cards through an H&R Block-sponsored program help his grandaughter establish credit.  The grandfather bought 2 cards @ $300 each for his grandaughter at a Rite Aide in Coronado, CA sold to the store by a third party vendor of H&R Block called Greendot Moneypack.   One card worked and the 2nd one did not. Repeated attempts to reload the dysfunctional card were unsuccessful and  constant calls tothe Greendot Money company were never returned.  The UCAN member faxed us proof of payment and talked with limited English proficient customer service representatives in L.A., Colombia, India, and the Phillipines.  He got absolutely no results.  During each call, he was promised that a manager would call him back.  Return calls were never honored and he called UCAN for help.  He was only trying to get back the $5 total incurred for 2 calls to the company and the $5 he paid to order the card.  UCAN researched the company and found a corporate location in Monrovia, CA to once and for all help our member get a working card. 

With the ever-increasing outsourcing companies are using to keep costs low for their customer service, fewer individuals are successful in resolving their own complaints.  It makes no difference whether or not customers have proof of payment because most "outsourced" customer service representatives working in other countries have the decision-making ability to remedy problems.  It is also a shame that companies are making it more and more difficult to find the corporate offices where someone would have the power to fix these simple and frustrating problems.

You’ve heard the saying: “There’s no free lunch.” Well, that is turning out to be true for many of the nation’s senior citizens who are being courted by investment firms in the form of free meals or free “educational” events that end up being mere sales pitches for their investment products.

This problem has become so pervasive that The Securities and Exchange Commission (SEC) and AARP held a “Senior Summit” to focus on these practices that, in some cases, have left seniors with full stomachs but empty pockets.

Why are senior investors such attractive targets for these schemes? The Associated Press reports that an estimated $16 TRILLION -- three quarters of the nation’s consumer financial assets -- is held by households headed by persons 50 and older.

The SEC, now on full alert about the growing problem in California and other states where there are large numbers of retirees, has put together the following tips for seniors to consider before exposing their hard-earned money to possible investment fraud. Investors will find more valuable information by going to the SEC Web site at www.sec.gov

Seniors — Beware of Investment Seminars
No Free Lunches

INVESTMENT SEMINARS ARE DESIGNED TO SELL

Although you have been invited to an “educational” program or investment “workshop,” never lose sight of the fact that the sponsor's goal is to sell investment products to new customers. Don't be taken in by laims of “urgency” or “limited space availability" for the seminar.

BE ALERT TO POSSIBLE SCAMS

Investment seminars are legitimate sales practices. However, some seminars may involve fraudulent sales practices such as sales of fictitious products and outrageous misrepresentations of risk and return. You should always thoroughly check any product before investing.

THE SEMINAR'S SPEAKERS MAY BE BIASED IN THEIR PRODUCT RECOMMENDATIONS

ADVERTISING AND SALES MATERIALS MAY BE MISLEADING

“EXPERTS” MAY MISREPRESENT THEIR QUALIFICATIONS

PRODUCT RECOMMENDATIONS MUST BE SUITABLE FOR YOU

DON'T BE A VICTIM OF “BAIT AND SWITCH” TACTICS

Source: “Protecting Senior Investors: Report of Examinations of Securities Firms Providing 'Free Lunch' Sales Seminars.” (Joint Report of SEC, NASAA, and FINRA, September 2007)

Have you been receiving debt collection phone calls and messages from 800-684-8429? If so, you are not alone. A UCAN member recently filed a complaint regarding incessant phone calls and messages she had received about someone else's debt from the number 800-684-8429. The calls appear to be made on behalf of HSBC Bank, or Orchard Bank, a banking and credit provider. Under the Fair Debt Collection Practices Act, debt collectors must honor any request to cease telephone communication and contact you only in writing.

• Tell HSBC to quit calling you and Stop Debt Collection Harassment using our sample letter.

• If HSBC is calling you about a debt that you do not owe, send them a Collection Agency Debt Dispute letter.