Paying Attention to the Paycheck Cycle

PepsiCo Inc. has found that paying attention to the paycheck cycle (the cycle revolving around receiving a paycheck), especially in today's economy, really pays off. Consumers buy more at the begining of the month when they first recieve their paychecks, and less at the end of the month when money is running low, and planning marketing strategies around this cycle has increased PepsiCo's profits. John Compton, CEO of PepsiCo America Foods, said "The first of the month we might promote bigger sizes and at the end of the month we might shift down to smaller sizes...it's worked well."

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Consumer-Goods Makers Heed 'Paycheck Cycle'

Cali Cracks Down on Internet Scams

We all know the routine of the get rich quick scheme, and it starts with something like this:

"Are you ready to claim YOUR share of eBay's annual $3.2 Billion in revenue? By attending our FREE 90-minute ‘eBay Entrepreneur Training' Conference

you will learn how eBay PowerSellers run successful Internet businesses and how an elite few use additional strategies to boost revenues way beyond the average seller. Learn how nearly half-a-million people create full-time incomes using eBay!"

For only a 'small' initial investment (in this case, between $2700 and $6,000), a company will claim that a investor can earn a full time income, all from the comfort of their own home. Obviously, claims like these are completely false, and investors always end up loosing far more on their 'business' than it generates. Do people really still far for this sort of thing?

Unfortunately, the answer is a resounding yes. In response to a recent scam (the example used above), the Califonia Attorney general is seeking restitiution on behalf of dozens of California residents duped by it. It's really shocking in today's age of information technology that ignorant, gullible consumers still remain an undying breed, but unfortuately, today's consumer seems just as uninformed as ever.

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California Cracks Down on Internet Get-Rich-Quick Scams

Creditworthiness: Appearance Really Does Matter (.....wait, what?)

A lot of consumers might be upset to know that a recent study revealed that consumers who are perceived as being physically attractive are more likely to be given a loan by a bank. Now, this can't really come as a surprise, we've always known that people are often judged (usually unfairly) based largely on their physical appearance.

However, consider another recent study that sought to empirically prove whether or not people could accurately judge people's creditworthiness based on physical appearance. 25 subjects were given only the photographs of a group of loan applicants, and were asked to judge each applicant's ability to repay a $100 loan on a scale of 1 to 5. Researchers were shocked at the correlation between the perceived trustworthiness of each applicant and the ratings on their credit score. So, as far as this study goes, it turns out that a person's perceived trustworthiness really is predictive of creditworthiness.....who would have ever guessed?

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Is Creditworthiness More Than Skin Deep?

Consumers struggeling to make payments, according to TransUnion

According to TransUnion, consumers aren't just falling behind on their mortgage payments, but their auto loan and credit card payments as well. The credit agency reports that in the fourth quarter of 2008, the number of auto payments more than 60 days past due rose by 8.9%, and the number of auto payments more than 90 days past due rose by 11%. At the same time, the average amount of credit card debt rose by .33% in the past year. However, TransUnion did state that these numbers are not as alarming as they sound, as auto loan delinquency actually decreased by about 11% in the past year, and the difference in the amount of credit card debt amounts to around $19 on average.

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Consumers Falling Farther Behind on Payments

Second Homes: A Buyer's Market

Anytime someone says "It's a buyer's market," I'm immediately skeptical. However, in the case of second or vacation homes, it couldn't be truer. Considering the mean price for vacation homes in Florida fell a jaw dropping 33% from last year, any consumer interested in purchasing a vacation home (plus the necessary financial backing) would be wise to consider jumping on this. Think about it: in five years, you'll could very well be able to tell your friend who tells you how much he just bought the vacation home next to yours for, "I paid half that" (and that's something just about any consumer likes doing).

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2nd-Home Market Offers Bargains

When it comes to your credit, if it sounds too good to be true, it is

These days, consumers are more concerned than ever about their credit score and credit history. As such, it's not surprising that any consumer with a less-than-perfect credit history would jump at the opportunity to have negative information on their credit history removed - an that's just what a few companies advertised that they could do (for only a small fee of up to $2,000).

Unfortunately, it was too good to be true - not only is removing any information from a credit history not possible, it is also seriously illegal for a company to advertise that they could provide such a service. Seven companies who have advertised such a service have been charged by the FTC of violating federal law, and will seek restitution for the unlucky consumers swindled by this scam.

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Feds Charge Seven Credit Repair Companies With Deceiving Customers

This is what happens when you don't read the fine print.....

A consumer in Oklahoma is suing AT&T Wireless over a bill in excess of $5,000, claiming that she was intentionally misled concerning the terms and conditions of the contract for her wireless internet card. Namely, the contract specified (yes, in the fine print) that AT&T reserves the right to impose additional charges if a customer's monthly usage exceeds 5 GB of data - a condition listed in the fine print that the women claims she was never informed of. (To put this in to context, that amount of usage is the equivalent of downloading between 5 to 7 full length movies, which seems a little excessive for any consumer.)

Should this unfortunate women be punished for failing to read the fine print? Speaking as a former AT&T Wireless employee, I know that sales reps are obligated to inform customers about this stipulation, and failure to do so could be construed as intentional deception. On the other hand, it is my belief that it is ultimately the responsibility of the customer to read any legal contract of this nature from beginning to end, and I know for a fact that this condition is stated on that contract. This issue could certainly be debated from either side, and I'm genuinely curious to see what the ruling will be.

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Radio Shack, AT&T Face Class Action Suit