News Channel

Snow Storm in the Northeast

Thu, 30 Jul 2009 19:37:00 GMT

(CNN) -- Heavy snow -- close to a foot in some cities -- blanketed much of the Eastern Seaboard on Monday and spelled a nightmare for morning commuters battling strong winds and freezing rain.

A snowstorm is threatening parts of the Northeast with as much as 15 inches of snowfall.

The heaviest snow, up to 15 inches, was forecast for the heavily populated Interstate 95 corridor between Boston, Massachusetts, and Providence, Rhode Island, northeast Connecticut and north into the Merrimack Valley in northeast Massachusetts, the National Weather Service said.

The storm covered the New York area in a foot of snow, and the New York City public school district declared its first snow day in five years.

The city's mayor, Michael Bloomberg, encouraged his fellow New Yorkers to use the snow day to go out and shop in support of local businesses.

Speaking at a news conference Monday afternoon, Bloomberg announced that 2,000 city workers continue to work around the clock to clear the snow-covered roads. The mayor noted that plowing the 6,000 miles of New York's streets is "like plowing from here to Los Angeles and back."

A snow emergency also was declared in Boston, and parking was banned from major thoroughfares so snow crews could do their jobs. Boston Public Schools canceled classes for Monday.

The city government Web site urged commuters to ride public transportation and stay off the roads.

Tragedy befell some traveling in the snow. In Boston, two women, one of them pregnant, died after their car smashed into a city plow truck, CNN affiliate WCVB reported. The pregnant woman was 25 years old and the other woman was 65 years old, police told WCVB.

In Washington, Mayor Adrian Fenty declared a snow emergency Sunday afternoon, meaning any street designated as "snow emergency route" by signs would be cleared of any parked vehicles, towed if necessary, so snowplows could work unimpeded. Washington was expected to have snow accumulations up to 10 inches by Monday night.

Winter storm warnings were in effect Monday afternoon from the Washington area to Maine. A winter storm warning is issued when an average of 6 or more inches of snow is expected in a 12-hour period, or 8 or more inches in a 24-hour period.

Most of the scheduled flights to and from Baltimore Washington International Airport were canceled or delayed Monday morning, airport spokesman Jonathan Dean said. The airport's Web site indicated the runways were still open with some flights landing and departing.

Delta Air Lines canceled 300 flights as of Monday morning, most of them to or from Atlanta, Georgia, because of snowy weather, airline spokesman Brian Kruse said.

Delta's Web site listed options for travelers who might be affected by the storm in Georgia, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Virginia and Washington.

Bounced-check collection deals draw fire

Thu, 30 Jul 2009 19:36:00 GMT

DETROIT, Michigan (CNN) -- Michelle O'Neil and her husband Michael are young, scrambling to stay afloat financially and, by their own admission, not the best money managers.

Both acknowledge they wrote two bad checks, totaling about $200, as they were moving from Florida to Michigan in late 2007. The bad checks, they say, were mistakes. But nearly a year after they settled in a Detroit suburb, letters and phone calls followed from Florida.

"They told me they were part of the attorney general's office," Michelle O'Neil told CNN. "And that was scary in the sense that I've never had any legal problems. I'm a teacher."

But the calls weren't coming from a state agency. They were coming from a company hired by a Florida county prosecutor's office to collect on bounced checks.

The firm -- American Corrective Counseling Services, or ACCS -- splits the money it collects with the prosecutor's office. But it also makes money from financial management courses that people who wrote the checks are required by law to attend at their own expense. And the company's contract with the prosecutor's office states those classes are its "principal business activity."

The $14 check Michael O'Neil wrote to a Florida drugstore ended up costing him $285, including the $160 class fee.

O'Neil said he and his wife tried to make good on the checks with the merchants involved and pay any fees required. But he said the companies told him it was too late -- they had turned the matter over to ACCS.

The couple had been in Michigan for 10 months before they got their first notice from the company, which warned that "the State Attorney will not discharge the report(s) of criminal activity against you until all program requirements, including attending class, have been met."

Prosecutors are hiring private firms to collect on bad checks.

"They make you feel like a criminal," Michael O'Neil told CNN. "They try scare tactics, harassment and everything. And you take a look and ask, 'Seriously, is the attorney general of Florida after me for a $14 bounced check?' "

The short answer is yes. Prosecutors are outsourcing some of their bad-check collections to companies like ACCS.

But Jennifer Osborn, a California student who bounced a $92 check to her college bookstore, said the company's money-management class was useless to her.

"It was boring. It was pointless," Osborn told CNN.

Congress changed federal law in 2006 to allow district attorneys' offices to contract out bounced-check collections to private collection firms like ACCS. Prosecutors hire them as part of pre-trial diversion programs aimed at keeping people like the O'Neils from going to court, and in Florida, educational courses are required parts of those programs.

But the practice has drawn criticism from the consumer watchdog group Public Citizen, which has filed lawsuits in three states to stop it. Deepak Gupta, the group's chief attorney in Washington, said companies like ACCS are effectively "renting out the prosecutor's seal" to collect money on cases prosecutors would not otherwise pursue.

"ACCS doesn't really care about these classes, about teaching people how to balance their checkbooks," Gupta told CNN. "It's really about collecting their fees."

ACCS, based in San Clemente, California, says it has contracts with prosecutors' offices in 17 states. In court papers, it says its actions are reviewed and authorized by local prosecutors, and calls its classes "remarkably successful."

"Less than 2 percent of the persons who complete the course commit repeat bad check offenses," it states.

In Los Angeles County, the largest prosecutor's office with an ACCS contract, supervising attorneys say they have had no complaints about the firm. Assistant District Attorney Sharon Matsumoto told CNN that the contract helped the county collect on 80,000 bad checks, bringing in $2 million in 2008.

"This particular function is one that we can legally outsource to a company experienced in doing this," Matsumoto said.

But another metropolitan prosecutor said he was wary of private debt collection firms acting on behalf of law enforcement.

"I did not favor the concept of having some office outside of the DA's office that would make contact with the public, and those folks would not be employees of the district attorney's office," said Paul Howard, the district attorney for Fulton County, Georgia, which includes Atlanta. "I felt that there should be a level of accountability that the program did not present."

In lawsuits filed in California, Indiana and Florida, Public Citizen accuses ACCS of violating the federal Fair Debt Collection Practices Act by moving against people without establishing probable cause, as prosecutors would be required to do.

"In fact, in many cases, stores are sending these checks directly to ACCS, and ACCS is sending out collection letters with prosecutor letterhead, and no prosecutor has actually reviewed those cases," Gupta told CNN.

But ACCS attorney Charles Jenkins said that probable cause "is already established because of what the prosecutor requires of the submitting merchant" -- namely, an affidavit stating that the check bounced, and efforts to obtain its money from either the purchaser or the bank had failed. When the firm decides to send out its initial mailings, "it is already a matter for the local prosecutor," Jenkins said.

And according to court records, the form letters have been approved by prosecutors.

The National District Attorneys Association lobbied Congress for the legislation that allowed such contracts, arguing that its members would be able to resolve bad-check cases more efficiently under the new law. The measure was part of a lengthy 2006 bill overhauling financial regulations, which passed both houses of Congress unanimously.

"The way it had been represented to us is that it was a way to avoid criminal prosecution," Rep. Barney Frank, now chairman of the powerful House Financial Services Committee, told CNN. "So I would be surprised if someone were to be prosecuted for one check for a few dollars."

Frank, D-Massachusetts, said the complaints raised by people with the collection process were "the first time this has been brought to my attention," and he told CNN that perhaps the law needs "some looking into."

ACCS recently filed for bankruptcy protection, a day before a federal judge in Florida was to hand down a ruling in one of the lawsuits filed against it. In court papers, the company named the law firm it hired to defend itself as one of its largest creditors. ACCS is still doing business, however.

As for the bad check writers, those interviewed by CNN say they had no criminal intent. Their sin was poor math or bad money management.

"I am disappointed in the system," Osborn told CNN. "It should not have happened at all."

Longer School Year?

Thu, 30 Jul 2009 19:35:00 GMT

WASHINGTON (CNN) -- Those lazy days of summer may become a thing of the past if the new secretary of education has his way.

Education Secretary Arne Duncan suggests giving incentives to teachers whose students perform well.

Arne Duncan, the Cabinet secretary charged with overhauling America's educational system, is studying programs that keep kids in school longer to boost their academic achievements.

"When I go out and talk about that, that doesn't always make me popular with students. They like the long summers," Duncan said in an interview Wednesday with CNN conducted in the Education Department's library.

But Duncan said American students are "at a competitive disadvantage" because the United States has shorter school years than other countries such as India and China.

"It doesn't matter how poor, how tough the family background, socioeconomic challenges," Duncan said. "Where students have longer days, longer weeks, longer years -- that's making a difference."

More time in school is one of several ideas under consideration as Duncan settles into his new role.

The lanky former college basketball player and father of two speaks quickly, with remarkable energy in the face of daunting challenges.

Thirty percent of high school students drop out before graduation, and another 50 percent won't finish college, according to Education Sector, a nonprofit think tank.

For Latino and African-American students, the numbers are more dramatic. About half of them will graduate from high school, the Washington-based group said.

As school administrators struggle with dropout rates, they also are confronting drastic budget cuts amid national economic uncertainty. Districts are slashing jobs and putting off plans to repair crumbling school buildings.

"What's going on, state after state, due to this tough economy, is devastating educationally. And we can't afford to get worse now. We have to get dramatically better," said Duncan, former chief of Chicago Public Schools.

President Obama and lawmakers have directed billions of dollars to the Department of Education through the stimulus package, and they propose to send more in the 2010 budget Obama announced Thursday.

Duncan said some of that money will provide schools with immediate relief to keep teachers.

"Thanks to the stimulus package, we have the chance to save literally hundreds of thousands of teacher positions. This is a huge, huge deal," he said, citing a University of Washington study that suggests 600,000 teachers could be lost this year without drastic intervention.

"We're going to be able to avert maybe not all of those cuts but a huge percentage of those, and that's very, very important," he said.

But the new funds may be only enough to keep a crisis at bay, said Kevin Carey of Education Sector. State and local shortages are forcing schools to make do with much less.

"The economic situation is hurting school budgets," Carey said. "The stimulus package that just passed will help that somewhat, but there still isn't a whole lot of new money to pay teachers more, reduce class sizes, reduce high school dropout rates."

In a recession, tech gadgets become a luxury

Thu, 30 Jul 2009 19:35:00 GMT

(CNN) -- Matthew Baron is one of those gizmo guys, the kind who covets all toys new and shiny.

The slumping economy has more consumers holding on to older gadgets while holding off on shiny new purchases.

But the Brooklyn, New York, attorney, like so many other American consumers who are watching their bank account balances, is reassessing his gadget habit.

"If I'm going to buy something, I want it to count. I want it to last," said Baron, who incidentally goes by "OMG! Ponies!" when he posts comments on Gizmodo, a popular tech and gadget blog.

So, even though he'd like to upgrade his 4½ -year-old HDTV, this cowboy's holding back the reins. And while the latest iPhone was a "must have" for Baron, he said he's "waiting to pull the trigger" on that camera he's been circling. "I just can't go out and spend $400 right now."

Ignoring what you want. Recycling the old. Fixing what can be saved. Is this the new American way when it comes to tech toys and electronics -- an industry in which new gadgets can become outdated within months?

Many consumers are hoping to make products last longer, which is keeping businesses that repair and refurbish computers and other gadgets and electronics as busy as ever.

"The percent of our business devoted to repair is definitely increasing," said Paula Baldwin, the mistress of propaganda (yes, that is her title) for Geek Squad, a consumer-electronics services company. People are seeking help "to either repair that gear or add to its functionality and what it [the product] does for them."

Scott Steinberg, publisher of DigitalTrends.com, said that function, in fact, "is the new fad."

People may need their cell phones and computers to work so they can simply get by, but they don't necessarily need the highest resolution screens, the sleekest designs and all the technological bells and whistles.

"Shiny is great, but shiny doesn't necessarily let you send that e-mail or send that text message," Steinberg said. "At the end of the day, as long as the gadget functions properly, does it have to be wrapped in white gold?"

But to hear it from Shawn DuBravac, an economist for the Consumer Electronics Association, which represents 2,200 technology companies, we're staying more true to our old selves than you might think.

"During other recessions, we could live without these technologies," he said. "Whether you're male or female, 18 or 81, chances are you'll buy a technology product this year."

People are more inclined to scrimp elsewhere -- tape a bumper to a car, for example -- than they are to go without a new cell phone, he suggested. In fact, the proportion of dollars spent on electronics versus other "durable goods," such as cars, has never been higher, he said, referencing Department of Commerce statistics.

To illustrate how strong the market remains, DuBravac pointed to the popularity of new televisions in 2008, saying that sales for LCD TVs were up 41 percent and digital TV sales, overall, were up 24 percent over the previous year.

"What he's telling you is right, but it's only half the story," said Wilson Rothman, feature editor at Gizmodo, the site "OMG! Ponies!" frequents.

While people are buying, they're paying much less, Rothman said. The Seattle, Washington, journalist believes the TV industry "kind of burned itself out" with its rock-bottom prices at the end of 2008.

"What ended up happening is after most people who wanted a TV bought a TV, the market vanished," leading to layoffs, slashed budgets and to Pioneer -- which he said currently has "the best TV on the market" -- getting out of the business.

"But the good news is everyone has an HDTV now," he added with a laugh.

Just as companies "bend over backwards to get people to buy," Rothman said the next best things are being held up in production because people can't pay for them. The OLED screens for phones and cameras, for example, aren't rolling in the way folks expected. iReport.com: How are you saving on gadgets?

"Kodak sent me an OLED photo frame," Rothman said. "A thousand dollars! I sent it right back and said, 'I'm not going to review it. If I did, I'd only spend 800 words making fun of you.' "

Not only do people want to pay less, they also want more free.

Gizmodo is seeing increased traffic for its Dealzmodo link, where visitors can find discounted games, computers, movies and more. Same for its Hobomodo link, which offers freebies -- including everything from software to teeth-whitening products and tacos.

Nice-looking teeth and food handouts may not make up for out-of-reach tech gadgets, but Rothman, who said his site's audience is made up of "college kids and nerds of all ages," is learning that such things also can't hurt.

"The only agenda we have is we love gadgets," he said, "But we're also sympathetic to consumers."

Germ Proof Your Home

Thu, 30 Jul 2009 19:34:00 GMT

MARIETTA, Georgia (CNN) -- Jake Austin, 10 months old, loves playing on the ground. On a typical February morning, Jake and his 4-year-old brother, Hank, are rolling around on the family's shiny hardwood floor, the same floor where they and their parents track in dirt from outside every day.

Hank Austin, bottom, and his brother, Jake, play together on the floor. What about germs?

The boys' parents, Laura, 28, and Clint, 36, worry that they and their children are constantly getting exposed to bacteria around the house.

"The thing that concerns me most is the baby crawling on the floor," Laura Austin said. "He licks the floor, so there is no telling what he is picking up."

CNN used the Austin house, in a suburb of Atlanta, Georgia, as a test case to see just how germy a four-person family home might be. Microbiologist Zehava Eichenbaum, associate professor at Georgia State University, came armed with swabs to test the hot spots for a variety of bacteria.

As it turns out, Eichenbaum did not find anything to be too concerned about in the Austin home. There were bacteria almost everywhere, but they were mostly the benign kind found in a normal environment. While most of these microorganisms are commonly found in or on our body, some that were found on the Austins' floor can produce disease -- such as shigella, staphylococcus pneumonia, or staphylococcus aureus -- if they are inhaled, ingested or touch skin breaks, Eichenbaum said. Still, nobody has gotten sick.

She offered tips on maintaining a healthy home, while not overdoing it. Having some bacteria is actually a good thing, experts say.

Normally, the most bacteria-filled place in a home is the kitchen sink, Eichenbaum said. Think about all the dirt and uneaten food that winds up in it. The sink is even less clean than the toilet seat. Learn how to safely navigate a public restroom

You can put bleach in it, but bacteria will still accumulate. The best solution: Don't let food you eat raw, such as fruits and vegetables, touch the sink surface before you eat them. And if you let utensils or vegetables hang around in the sink, rinse them before use.