By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

On July 1, new rules went into effect for overdrafts on your debit or ATM cards. You now get to choose in advance what happens when you make a charge on your debit or ATM card and don’t have enough money in your account to pay for it.

According to the Federal Reserve Board Web site,  there are usually two ways that banks deal with an overdraft:

• Standard overdraft practices. Your bank will cover your transaction for a flat fee of about $20 to $35 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee.

• Overdraft protection plans. Your bank may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks typically charge a fee each time you overdraw your account, but these overdraft protection plans may be less expensive than their standard overdraft practices.

The different under the new rules

Basically, your bank has to give you the option to choose how it will deal with an overdraft from you. In the past, some banks automatically enrolled you in a standard overdraft program when you opened an account with them. Now, the bank has to ask your permission and you have to opt in. If you don’t opt in, beginning August 15, your bank’s standard overdraft practices won’t kick in when you charge too much. Instead, the transaction will typically be declined when you don’t have enough in your account to cover it. You won’t be charged an overdraft fee, but you also won’t be able to complete the purchase or withdrawal.

If you have an existing account that was opened any time before July 1, you’re supposed to get a notice from your bank about their standard overdraft practices, asking if you want them to continue or not. If you open an account after July 1, you will be asked if you want to opt in or out when you fill out the initial paperwork. Whichever way you decide, you can change your mind at any time.

A warning from the Better Business Bureau

If you write checks or set up automatic bill payment from your checking account, the new rules don’t cover checks or automatic bill payments. Your bank can still automatically enroll you in their standard overdraft practices for those types of transactions. If you don’t want that to happen, contact your bank, but you may find that you don’t have the option to cancel.

It pays to shop around when you open a checking account. Banks could lose significant revenue if a majority of customers now opt out of overdraft protection, so some banks may decide to charge their customers new fees to make up for that loss of revenue.

Always be aware of the terms of service of your account, and that includes reading those updates that come in the mail. If you don’t like your bank’s terms, shop for a bank whose fee structure you like better.

College graduates who need temporary work while looking for full-time jobs may be interested in mystery shopping, but the Federal Trade Commission cautions that many mystery shopping offers are scams.

It seems like an attractive proposition: getting paid to shop or dine out and then provide reports about the experience. However, scammers often ask mystery shoppers to pay an up-front fee before they start or to deposit a check that turns out to be phony.

 The FTC offers these tips on mystery shopping:

• Don’t pay upfront fees to be a mystery shopper. Legitimate companies don’t charge people to work for them.
•  Never agree to deposit a check from someone you don’t know and then wire money back. The check will bounce, and you’ll owe your bank the money you withdrew.

To learn more, go to Mystery Shopping Scams May Target New College Grads.

By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

Millions of Americans are enjoying barbecues and picnics today, while others have loaded up the family and are traveling.

If you’re grilling food, use a meat thermometer to make sure the internal temperature of hamburgers has reached 160°. To avoid foodborne illnesses, don’t leave food out in hot weather more than two hours. If it’s above 90°, the time limit is one hour. See “Food Safety Tips for Fourth of July Barbecues” for details.

If you’re looking for decorating tips, one idea is to pick red, white, or blue as a theme for your party. See “Top 10 Tips for Celebrating the Fourth of July” for suggestions.

If you’re setting off fireworks, never have any portion of your body directly over a fireworks device when lighting the fuse and move back to a safe distance immediately after lighting. Never try to re-light or pick up fireworks that haven’t fully functioned. See “How to Avoid Injury and Death When Using Fireworks” for more information.

Happy Fourth of July. I hope you have the best celebration ever.

By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

On my last trip, I was a stressed, frustrated traveler. It took 16 hours to fly from Miami to Seattle. Delay after delay occurred, and I had to pay extra to sit by the window in the front of the plane – twice. On top of that, airline staffs were rude.

In a telephone survey, Consumer Reports asked 2,000 consumers about what annoys them when they’re traveling.

The complaints are scored on a 10-point scale, with 10 being the most annoying.

Here are the results:

Airlines

Luggage charges –  8.4

Added fees – 8.1

Rude or unhelpful staff – 7.7

Can’t reach a life service rep – 7.6

Poor communication about delays – 7.1

Seatmates who hog your space – 7.0

Flight delays – 6.8

People who hog carry-on space – 6.7

Long waits at baggage claim – 5.9

Long lines for security or check-in – 5.2

Puny snacks or none – 5.1

Crying babies, unruly kids – 4.9

Hotels

Rude or unhelpful staff – 7.8

Added fees – 7.6

Inadequate A/C or heat – 7.5

Uncomfortable beds – 7.3

Room not ready at check-in time – 7.2

Insufficient or chintzy linens – 6.7

Pricey in-room snacks – 5.6

Rental cars

Rude or unhelpful staff – 7.9

Added fees – 7.7

Dirty or damaged car – 7.0

High-pressure pitches – 6.5

Ordered car unavailable – 6.1

What are your top travel gripes? Let me know in the Comment section below.

The results of the survey were reported in the June 2010 issue of Consumer Reports.

By Rita R. Robison, Blogging at The Survive and Thrive Boomer Guide

In a recent study, specific meditation performed daily for eight weeks increased brain activity in areas important to memory and actually improved cognition or thought processes in 15 patients suffering from memory problems.

Kirtan Kriya or KK, the meditation evaluated in the study, is a 12-minute practice from the Kundalini yoga tradition.

At the beginning of the study, participants, ranging in age from 52 to 77, were given cognitive tests and blood flow was measures with imaging scans. They were taught KK and instructed to practice it each day for eight weeks.

A small comparison group, who listened to music, also was recruited. The “music group” was instructed to listen to two Mozart violin concertos each day for approximately 12 minutes.

After eight weeks, cognitive tests and scans were repeated for both groups. The study found that:

• Central blood flow was increased in the KK group.
• The KK group did better on a neuropsychological test that measures cognition by asking subjects to name as many animals as they can in one minute.
• Improvements were also seen in the KK group in three other cognitive tests that measured general memory, attention, and cognition.
• The music group had no statistically significant improvements in cognition.
• Participants found the meditation to be enjoyable and beneficial and thought their cognitive function had been improved.

The researchers believe that KK meditation can have a meaningful impact on memory and on the quality of people’s lives as they age.”

The results of the study, conducted at the University of Pennsylvania, were published in the Journal of Alzheimer’s Disease.