Consumer News & Views
July 2009

In this Issue:

• Consumers Confidence Index Suggests More Caution.
• What’s the Summer Spending Forecast for Consumers?
• Where is the Federal Stimulus Money We Were Promised?
• Health Care and College Tuition Concerns Weigh Heavy.
• Pinnacle Federal Credit Union Helps New Jersey, New York, Pennsylvania Members Make Money.
• Green C™ Certification Program Accepting Applications for 2009 certification

Consumer Confidence Index Suggests More Caution. The Reuters/University of Michigan consumer sentiment index indicates that consumers’ spirits are improving, but only slightly. The index rose 1.8 points from mid-month to the end of June stalling at 70.8, up only 1.9 points from May. The index had jumped nearly 4 points in May and nearly 8 points in April. ACC foresees more caution as economic uncertainty continues.

What’s the Summer Spending Forecast? According to our analysis and polling data, the June consumer sentiment index suggests that most consumers are sitting on the sidelines with a “wait-and-see” attitude.” ACC president Thomas Hinton says, “Consumers are tightening their belts. They’re not traveling far from home this summer, and they will enjoy a quiet Fourth of July with family and relatives instead of spending lavishly on hotel resorts, airline tickets and rental cars.” Hinton also noted that consumers will try to save money for the next few months because they are seriously concerned about rising unemployment, foreclosures, and mounting credit card debt. This is good news for credit unions and banks as consumers make more deposits and fewer withdrawals. But, it’s bad news for the travel industry and retails who rely on summer spending.

Where is the Federal Stimulus Money We Were Promised? While President Obama gets high marks for engineering the federal stimulus package through Congress, consumers aren’t seeing any money yet. In fact, a credibility issue is developing among consumers as government red tape stalls the flow of desperately needed money to jump-start small businesses and other consumer spending. This is not good news for the president and Congress because the summer will drag on and consumers will not be spending money on distant vacations or other summer necessities.

Higher Health Care Costs Concern Consumers. Another reason consumers are tightening their belts is due to the rising cost of health care premiums. With no short-term federal solution in site, consumers are worried that they will not be able to afford rising health care premiums. Despite the pledge of health insurers to hold the line on premium increases and discriminatory practices that purge undesirable and high-risk policy-holders from their ranks, several health care insurers are violating their pledge to Americans by bumping their rates and denying more claims to policy holders.

This is exactly what most consumers expected according to spot surveys by the American Consumer Council last month. In essence, the health care insurers cannot be trusted. Meanwhile, President Obama is spending much of his time trying to resolve in-party fighting among Democrats who are unhappy with his call for a government-run insurance plan to compete with the private sector. Ironically, a significant number of Americans support a government-run insurance plan that will close the gap for the 15 million uninsured and the 30 million under-insured Americans while protecting the individual’s right to choose their own physician. But, fear tactics and political rancor are stalling legislative progress.

College Tuition Costs for 2009. In California, Alabama and dozens of other states, the cost to attend a community college, state college, or university has increased by 10 percent or more. Given the dismal economy, college-bound students are faced with a tough decision -- defer their college plans, scale back to attend a community college, or work a second job to cover tuition costs. Consumers are complaining that college is just too expensive for parents, especially if they have several children. While parents don’t want to dash their child’s hopes of attending a good college, the reality is fewer parents can afford the rising costs of college. What’s the answer? One solution is for Congress to dramatically increase affordable federal loans for college-bound students and mandate lenders to provide reasonable terms for such loans. We cannot afford to cheat this generation out of an education.

Pinnacle Federal Credit Union Offers Great Benefits and Rates to ACC Members.

Who is Pinnacle Federal Credit Union?

Pinnacle Federal Credit Union is a full service financial institution which serves more than 28,000 members and many employer groups located throughout New Jersey, New York and Pennsylvania. As a member of the American Consumer Council you are eligible to join Pinnacle FCU and take advantage of their outstanding savings programs and low loan rates! confidence and will prevent an economic recovery until the spring of 2010.

As a non-profit organization, Pinnacle FCU offers you a rational alternative to conventional banking, and a wide variety of low cost financial products and services. Once you open a savings or checking account with Pinnacle FCU, you become a "member" of the institution for life! Visit: www.pinnaclefcu.com to become a member.

With five branches located in Edison, Fairfield, Manchester, Somerset, Leisure Village West, and ATM locations in Edison, Fairfield, Somerset (Bakelite Branch), Manchester Plaza, Edison Municipal Building, North Brunswick (in DeVry), South Plainfield (Pathmark Store), AND all 7-Eleven convenience stores, Pinnacle FCU strives to be where you are!

Whether you are looking to establish a checking account, great rates on car loans, mortgages, or other types of loans -- or just fast friendly service, PINNACLE FCU provides it all to you!

Please visit: www.pinnaclefcu.com or call their toll-free number to join: 1-800-742-5050. Be sure to mention you’re a member of the American Consumer Council!

The Green C Certification program is now accepting applications from companies and organizations that want to be certified for their Green practices and Corporate Social Responsibility initiatives. For more information, please call ACC at 1-800-544-0414 or visit ACC’s website.

To become a member of the American Consumer Council, visit us at: www.americanconsumercouncil.org