DMN Shines Light on Insurance Companies

The Dallas Morning News has a good investigative piece on Loya Insurance and Old American County Mutual. DMN took a look at the Texas Department of Insurance complaint lists, where many legitimate claims are often ignored. Here's a glimpse at what they found:

"An analysis of the Insurance Department figures by The Dallas Morning News showed that 10 of the 25 largest auto insurers in the state — those with more than 100,000 policies — had worse-than-average customer service records."

For the complete article, click here.

Sad but true, the complaints of the individuals mentioned in the article are all too familiar for many Texans.

As you enter the summer vacation season, protect your own interests by reviewing your own insurance policy for changes and to ensure adequate coverage, make sure you've made any necessary adjustments before you hit the road. Also, keep a camera in your car (unless you carry a camera phone) so that you can take your own photos if you happen to end up in a fender bender. For more tips on safe travel, visit the National Highway Transportation Safety Association website.

Over the Top Overdraft Fees

As if banks weren’t in enough trouble already, now more than one is being sued for over-penalizing account holders with excessive overdraft fees.

According to Law.com, a suit filed by Georgia resident Ken Vollmer claims Wachovia “posted charges to consumer accounts in such a way as to maximize overdraft fees, even at times when the actual funds in the account are sufficient to cover the transaction.”

There are similar bad-faith bank fee suits pending in federal courts across the country, not only against Wachovia but also against Bank of America and Wells Fargo, which took over Wachovia last October. Those suits accuse the banks of deceptive practices intended to maximize bank profits at the expense of their customers and challenge bank policies governing the assessment of overdraft fees.

No one is denying banks their right to charge overdraft fees. It’s the method in which they post drafts and deposits that is being questioned. If banks rearrange postings, as court documents claim they are doing, to post larger amounts first this may be considered to be deceptive and in violation of states’ fair business practices laws.

What can you do? Keep tabs on your account and watch for questionable charges. You can learn more about how overdraft charges work and what you can do to minimize them at the Federal Reserve website.

Chinese Drywall: Something Smells Rotten

Plagued by complaints from homeowners about unusual sulfur odors coming from new drywall, the Florida Department of Health commissioned Unified Engineering to perform a study of drywall, comparing three Chinese-made samples to American brand National Gypsum Co.’s GridMarx brand. Results were released this week.

"There is a distinct difference in drywall that was manufactured in the United States and those that were manufactured in China,” said Lori Streit, a principal scientist with Unified, in a letter. “The Chinese samples contained traces of strontium sulfide inclusions and more organic material than the GridMarx sample ( United States ). However, it is not yet known if either contributed to the odor.”

State releases findings of drywall investigation Jacksonville Business Journal 3/23/09

The Chinese drywall is extremely toxic and corrosive as evidenced by the fact it corroded copper and electrical wiring within a relatively short time after installation. (See CNN video here.) Required removal and repair is extensive and expensive. Some consumers have also experienced headaches, sore throats and other health problems. As a result of complaints, the U.S. Consumer Product Safety Commission is also investigating the complaints.

According to an article in Time, imports of Chinese drywall increased dramatically in 2006. Why? Because as they have done with other products previously investigated for inferior quality and outright danger to users, the Chinese obtain a competitive price advantage over the products of National Gypsum and other U. S. manufacturers, by cutting quality and safety. The U. S. homeowner and manufacturer each lose, because of a poor quality foreign product that is not subject to U. S. regulation.

More than 550 million tons of the defective drywall were shipped and used to build more than 60,000 homes in more than a dozen states. Texas is one of them.

Currently, class action suits have been filed in Florida as well as Alabama and Louisiana. If your relatively new home is under siege from toxic fumes, consider the source. And, contact an attorney to learn more about your rights as a homeowner.

Dallas Morning News Endorsements, Pt. 1

Just a few years ago, if you went to the Dallas Morning News (DMN) to read the political endorsements you’d see nothing but Republicans. Today, the DMN is reflecting the changes in Dallas County voting. Here’s a brief review of the first round of endorsements:

Criminal District Court No. 2 – Don Adams “has won praise from both sides of the courtroom and has significantly lowered his court's cost-per-disposition ratio by handling more pleas and jury trials.”

Criminal District Court No.3 - Gracie Lewis “A broader, more thoughtful perspective helps make Judge Lewis the better choice.”

Criminal District Court No. 4 – Judge John Creuzot “He is a Democrat-turned-Republican-turned-Democrat-again…Regardless of what letter is next to his name, Judge Creuzot's performance merits his re-election.”

Civil District Court No. 14 – Eric Moyé “He has experience that the younger Republican can't match.”

Civil District Court. No. 95 – Ken Molberg “We questioned him closely, and his answers satisfied us that Mr. Molberg can become the latest example of a North Texas judge to make the transition from political warfare to effective and impartial judicial leadership.”

Civil District Court No. 162 – Judge Lorraine Raggio “Judge Raggio is fair and thorough, and she should be returned to the bench.’’

It’s not surprising to see that the DMN endorses these strong candidates who all happen to be Democrats. It is, however, more surprising to see that the paper stepped out of a comfort zone to recommend a John Ames for Tax-Assessor Collector over longtime seat-holder David Childs. Problems and lack of progress in the Childs administration led the DMN to say, “We expect that Mr. Ames will build on what good work Dr. Childs has done and make the county office even better.”

In the coming weeks it will be interesting to see how the news rates other candidates. While I’m pleased to see so many Democrats earning the paper’s praise, as an attorney I want to make sure that we are assured of the most qualified, most impartial judges – regardless of party.

For more information on the candidates and to read their responses to the DMN questionnaire, go here.

One-Fourth of Texans Don’t Have Insurance

It’s worse around here:

“…the Census Bureau reported Tuesday. Texas' overall uninsured rate of 25.2 percent, and its 20.2 uninsured rate for children, continued to be the highest in the country.”
- From the Houston Chronicle

California ranks higher in numbers than Texas, but percent-wise is still doing better.

It’s not like every state has an equal problem. According to the Temple Telegram, only 8.3 percent of residents in Hawaii and Massachusetts were uninsured between 2005 and 2007.

For information on each county, check out Texas Medical Association’s Table of Uninsured Rates for all Texas Counties here. It’s a little outdated, but it gives a good idea of just how bad it is for Texas’ families.

Don’t Be Misled: Decrease in Uninsured Does Not Signify Improvement

The Census Bureau is reporting that for the first time since W came into office, the number of uninsured Americans has decreased. In 2006, 47 million families were uninsured. Today, that number is 45.7 million. Hurrah for the one million families who now have coverage, but what about the nearly 46 million more who don’t?

“The numbers represent a kind of scorecard on President Bush's stewardship of the economy at the kitchen-table level. However, they only go as far as the end of last year, before the current economic downturn started gathering force. Indeed, they could come to be seen as a snapshot taken at the high point of the administration's tenure.”
MSNBC Census: Number of uninsured dropped in 2007

I’m sure that the current administration would like the public to view these numbers as a sign of its success and of improving economic conditions. Ha! Only an idiot would believe that. God knows, the Bush administration has run out of time to make a difference. I’m praying our next president can and will.

Sunset Commission Says TRCC Flawed, Harmful

Thank God.

The Texas Sunset Advisory Commission is recommending that the Texas Residential Construction Commission (TRCC) be abolished.

Their report, the full text of which can be found here, minces no words: “Current regulation of the residential construction industry is fundamentally flawed and does more harm than good.”

Consumer groups stand with the Sunset Commission. Here’s what Alex Winslow, Executive Director of Texas Watch, had to say:

“Like many of the homes built by bad builders in our state, the TRCC is beyond repair. We need to scrap it, go back to the drawing board, and implement a process that truly protects homeowners.

“We endorse the Sunset staff’s recommendation to bring an end to the TRCC as we currently know it. Lawmakers should replace the feckless TRCC with real reforms that ensure builder accountability, quality building standards, and true oversight and regulation of the homebuilding industry. Instead of a builder protection agency like the TRCC, homeowners need an agency designed to serve their needs.

“Consumers need real protections against unscrupulous builders who build shoddy homes, and the TRCC has never provided homeowners with that kind of protection. Indeed, homeowners – not builders – are the ones regulated by the TRCC.

“We look forward to working with the Sunset Commission and the Legislature to develop real solutions to the problems facing Texas homeowners”

As attorneys know and, unfortunately, many consumers find out, the TRCC’s dispute resolution process to settle issues between homeowners and builders is a disgrace and waste of time. Recent legislation designed to increase penalties on negligent builders has done nothing to relieve the nightmares that homeowners are having, since the Commission has no power to enforce.

Of course, the TRCC sees it differently. The Quorum Report's Daily Buzz posted the TRCC response to the Sunset Commission on Tuesday. The TRCC worries that if it is abolished, “Texas families will be left to fend for themselves if an issue arises with their home.”

Let’s be honest. Texas families have been alone on this front for a long time without help and in most cases, with hindrances, from the TRCC.

Without the TRCC, at least homeowners can proceed directly to the one arena where they still stand a chance – the courtroom.