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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 |