Tornadoes Strike Western New York – Corfu and Darien Suffer Significant Storm Damage

An extremely rare series of tornadoes struck western New York this weekend, causing significant damage from east of Buffalo to west of Rochester.  All of the confirmed tornadoes have been designated as F1 on the enhanced Fujita scale.
Storm Specifics
Location: Darien and Corfu, Genesee County, New York
Date: Saturday July 25, 2009
Time of Tornado: 4:50-5:00pm EDT
Fujita Scale [...]

FCC Granted Monopoly to Sirius-XM, Customers Pay The Price Again and Again

The FCC and Department of Justice dropped the ball on approving the merger between XM and Sirius. The results? Rate increases and new fees for access to the new satellite radio monopoly.

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Specialized Loan Servicing Redux: Bizarre Statement Adds to the Confusion

November 17, 2009 Consumer Issues 4 Comments

Specialized Loan Servicing, which took over tens of thousands of home equity loan accounts from GMAC Mortgage, continues to confound its involuntary newest customers.  Many were shocked and surprised to discover their home equity credit line was sold off to a company better known for dealing with “problem payers” and “sub-prime” account management, despite never making a late payment and maintaining an excellent credit score.

SLS has caused additional consternation for consumers by charging them late fees on accounts given just days to make payment on, despite assurances in a welcome letter that such late fees or negative credit references cannot be charged on newly transferred accounts for a period of 60 days.

For those who managed to squeak by with an online or phone payment, discovering that in certain circumstances, the $9.95 convenience fee is waived for such transactions, November’s challenge is understanding the next monthly statement that follows, showing a much lower minimum payment requirement and an apparent partial-month bill.  In our case, the bill amounted to just 11 days of account service and required a significantly lower minimum payment.  Although the due date on the bill did not change, the number of days covered by the statement did in this case.

No accompanying explanation was provided.

For consumers who make every effort to protect their credit rating and payment history in this incredibly difficult credit marketplace, unexplained “surprises” and concerns about mistaken billing, “late” payments, and even worse, a hit on a credit report, can be devastating as other creditors take note and begin cutting off lines of credit, lowering credit lines, or dramatically increasing interest rates because of their new-found concern for your credit worthiness.

SLS must take stronger measures to better inform consumers of their actions and take every precaution to protect consumers’ hard-earned credit ratings.

Additional oversight is warranted, particularly because most consumers have little choice in the transition to SLS, unless they are able to pay off their existing balance and close the account, or manage a refinancing that transfers the account somewhere else.

GMAC Mortgage may require additional financial assistance from the U.S. government in the form of bailout money to stay solvent.  It is likely some original mortgages may be the next thing to be sold off to third party companies in GMAC’s efforts to remain operational and meet the terms and conditions imposed on it by the federal government.

My advice: You have to watch GMAC and SLS like a hawk, and never assume “it will be taken care of.”  If anything seems questionable or is unclear, pick up the phone and call for immediate answers.  You must protect your payment record and credit rating at all costs in this economy.

Keep reporting your experiences here and in the original article on this issue.

GMAC Mortgage Dumps Tens of Thousands of Home Equity Loans: Sells to Abysmal ‘Specialized Loan Servicing’

October 20, 2009 Consumer Issues 15 Comments
The Mortgage Insider

The Mortgage Insider

Financially troubled GMAC Mortgage this fall sold tens of thousands of prime home equity loans to a company rated so poorly, it is considered by some experts to be among the worst mortgage servicers in the nation.

Specialized Loan Servicing of Colorado, in just a few years, has racked up a stunning number of complaints against it.  The Mortgage Insider found the complaints among the worst that he has ever seen levied against a mortgage servicing provider.

Known more for its servicing of loans sold off by the original mortgage holder, SLS has amassed hundreds of complaints with the Better Business Bureau, online, and on online communities discussing mortgage providers.

Based on a survey of complaints reviewed online, SLS seems to have attracted a number of sub-prime mortgage accounts and those forced to undertake loan modifications in this difficult economy.  Calls to SLS customer service routinely include a notification the company is “attempting to collect a debt” and any information gleaned from that call may be used as part of that process.

For prime GMAC Mortgage home equity loan holders with stellar credit scores and perfect payment records, the sudden sell-off of their loans has come as quite a shock.

They were further disheartened when they called SLS to inquire about the transfer and were introduced to the SLS way of doing business.

Jamie writes, “I am not sure why it was sold because we are good customers with outstanding credit and have always made our payment on time. I called SLS today and they would not give me any account information to make a payment! I told the woman I wanted to make a payment over the phone but she was unwilling to even process a payment. I can’t even access their website and my payment is supposed to be due in a few days. The woman I spoke with was rude and unhelpful. Apparently they treat new customers like this. I am not looking forward to working with this company.”

Jamie’s experience is not atypical.  We found hundreds of complaints about rude and obnoxious customer service representatives who were either undertrained or presumed your problems were just an excuse to not pay them their money.  Long hold times, customers hung up on, and promised outcomes from calls that never materialized were all-too-easy to find.

Some GMAC Mortgage customers had their home equity credit lines frozen after the transfer for “delinquent loan-access termination,” despite never making a late payment and maintaining a FICO credit score of 800 or more.

One customer received someone else’s loan documents in the mail, chock full of personal information that would represent a goldmine for an identity thief.

We contacted SLS Loan Servicing and were surprised to discover the company requires online payments be made through Western Union.  Customers accustomed to making regular monthly online payments through the GMAC Mortgage website will be unhappy to learn SLS requires them to use Western Union SpeedPay to make a payment, with a “convenience fee” of $9.95 for each payment.  Making a payment by phone, convenient for SLS who is assured of getting their money, will be very inconvenient for you — it carries a $9.95 “convenience fee” as well.  You can also wire them the money.

The only way to make a payment without incurring a charge each time you make a payment is to mail a paper check or go through the tedious process of establishing a direct debit with your checking account, which in some cases will also incur bank fees.  Of course, a pre-configured direct debit payment program does not provide the flexibility to make payments in different amounts to pay off your loan more rapidly, as GMAC Mortgage allowed.

Customers are concerned.  A company with an established reputation of mishandling accounts can risk the good credit standing of its customers, and if the SLS horror stories continue, formerly prime credit customers may join their sub-prime brethren courtesy of the damage a poor loan servicer can wreak on an individual’s credit score.

Unfortunately, short of refinancing your mortgage or paying off the home equity balance and closing the account, consumers have no recourse or ability to opt-out from the sale.  Stringent oversight by appropriate state and federal agencies to ensure quality service is about the only protection consumers have from sudden sell-offs of their mortgage accounts.

You Lie: Bank of America’s Claim It Will Not Raise Credit Card Interest Rates Outright Deception

October 7, 2009 Consumer Issues No Comments

credit-cardIn all of the years I have reported on consumer issues, I’ve dealt with my share of deceptive press releases and public relations campaigns from companies trying to do damage control or fight a policy battle on Capitol Hill.  But not since tobacco CEO’s appeared before Congress to testify they didn’t believe nicotine-laced tobacco products were addictive, have I encountered a company that so disingenuously engages in outright, naked deception.

In its campaign to protect itself from regulatory measures to reign in an industry gone wild, Bank of America Monday wrote a letter to Sen. Chris Dodd (D-Conn.) informing him the company would not raise its credit card interest rates on customers unless they made late payments.  The Washington Post this morning reported:

Bank of America said it will not raise credit card interest rates before February, when a law restricting industry practices takes effect, unless a cardholder is in default.

In a letter sent to Sen. Christopher J. Dodd (D-Conn.) on Monday, John Collingwood, the bank’s director of federal government relations, wrote that the bank was making the change “in light of the concerns expressed to us by our customers.”

I was unimpressed by the coverage by the Post, who didn’t bother to ask actual cardholders what they thought — reporter Nancy Trejos would have quickly learned that millions of Bank of America credit card customers were already victimized by unwarranted interest rate hikes the bank implemented over this past summer, after notifying customers of the changes back in April.  This reporter is one of those customers.

In my case, I came out better than some.  A Bank of America credit card I hold that carried a fixed interest rate of 7.99% for at least the past four years was converted into a variable interest rate (which virtually every bank is doing to escape the credit card reform regulation requirement that limits their ability to hike rates on consumers — variable rates allow them to continue to change interest rates monthly), but also increased to around 12%.  Many customers reported much higher increases, some now confronting rates exceeding 20%.  You could have had a pristine payment record and your rate still increased.

Bank of America explained in their letter the rate change was due to a changing business environment.

Bank of America’s claim they are responding to the concerns of its customers is also amusing, at best.  Bank of America has yet to demonstrate much concern for their customers, who contacted the company en masse back during the spring round of rate hikes asking them to reverse their decision, particularly when the customer has never made a late payment and maintains an excellent credit score.  The company routinely told customers, “no.”  Your only option was to “opt-out,” which works only if you treat your credit line as closed, and are prepared for the hit to your credit score when they close your account upon achieving a zero balance.

That intransigence remarkably eases not when customers call, complain, or even cancel their accounts.  It changes when Congress threatens to make further regulatory changes to the credit card industry in response to their ongoing customer abuses.

A change represented in a letter to Senator Dodd is just a piece of paper.  For millions of consumers just like myself, where is our letter from Bank of America apologizing for the naked profit grab, refunding the difference in interest changes many millions of Americans have been subjected to since Bank of America’s interest rate hikes, and a restoration of our former, fixed, interest rate?

Call your member of Congress and two senators and inform them Bank of America is engaged in outright deception if they think a letter to Senator Dodd is proof enough that they are actually changing course.  Until the company publicly states they are restoring the interest rates of all Bank of America customers without a late payment history to the interest rate they paid in January 2009, they have a lot of explaining to do.

Credit card reform legislation has not provided consumers with actual relief.  The legislation provided enough loopholes, and a lengthy delay before full implementation, to allow the credit card industry to pelt consumers with an endless series of “changes in terms” letters from credit card companies increasing rates, decreasing credit lines, closing accounts, increasing the minimum payment requirements, and a whole parade of other changes that are so punishing, they are tipping consumers over the edge into insolvency.

Until Congress supports the Obama Administration’s idea of a federal consumer protection agency that has the flexibility to outmaneuver and ban anti-consumer tricks and traps unintentionally allowed by federal law, Americans will continue to be victimized by cat and mouse games by the credit card industry.

US Capitol Switchboard: (202) 224-3121
Toll-free: (877) 851-6437

Coping With Cable’s “Switched Digital Video” Technology: TiVo and CableCARD Users Take Note

The transition to digital high definition television continues on cable and satellite as providers rush to add new “HD” versions of cable networks that have been available in standard definition for years.  Your cable or satellite provider is probably already pelting you with mailers and promotional announcements talking about new channels coming to your lineup.  Most of the new channels turn up on those very high channel numbers accessible on your set top box.  Time Warner Cable loves to put a lot of their HD channels on channels starting at 1000, others put them on channel numbers above 100.  Satellite providers already offer dozens of HD channels, and have for sometime now, a point they routinely raise in their advertising.  So cable systems are in a hurry to catch up.

But for some cable systems, there is a capacity problem.  Carrying those high definition signals requires a lot more “bandwidth” (or space) on the cable coming into your home.  Most cable systems in the United States were last upgraded in the early 1990s to accommodate the launch of “digital cable,” which actually has nothing to do with the recent digital TV transition, or HD for that matter.  Digital cable channels are simply compressed, allowing more channels (often up to six or more) to fit in the amount of space it takes to provide one analog channel (such as those you watch on television sets around your home that do not have those big set top boxes attached to them).

In the 1990s, we suddenly saw hundreds of new channels arrive on digital cable, from niche cable networks like Current and History International, to premium movie channels which suddenly had six to eight extra channels, to a myriad of pay per view and on demand channels.  We even got cable radio like Music Choice.

But the challenge of trying to provide 100 or more digital HD channels on today’s cable systems has resulted in some creative thinking by the nation’s cable operators to fit everything into the space they have today, without spending millions of dollars to once again upgrade their cable systems.

Some cable systems like Comcast, the nation’s largest, have been dropping a dozen or more analog channels (which use a lot of space) and moving them to the digital cable tier.  Others, like Time Warner Cable and Bright House, are using a new technology called Switched Digital Video (SDV).  Simplified, SDV only sends the digital channels people in your neighborhood are watching down the cable line.  The cable operator assumes not everyone on your street will watch every digital channel at the same time, so why waste space sending Fox Business News or C-SPAN 3 down the cable if nobody nearby is watching it?

Motorola released a short video which explains how the system works:

The trick, of course, is to make the system as transparent as possible for cable subscribers. Who wants to wait around for a channel to appear as you flip through them with your remote control. The technology is designed to make it look like those “switched video” channels are no different than any others. For subscribers using set top boxes, it has not been difficult to make the whole thing transparent to consumers.  The only time a problem can pop up is if the cable company runs out of room because lots of people are watching lots of different channels.  Sometimes the cable company makes the “party line” too big, and that increases the chances the system will run out of room at peak viewing times, and someone gets a black screen with a message saying the channel they want to watch is “temporarily unavailable.” When someone down the street switches channels or turns the set off, there is once again room to show more channels.

If you do not watch digital cable, or have a basic cable subscription that does not have a set top box, none of this will matter to you. Analog cable channels are not provided to you this way.

If there is no room in your neighborhood to show additional SDV channels, or if the cable system thinks you are no longer watching the channel, you may see this message on your television.

If there is no room in your neighborhood to show additional SDV channels, or if the cable system thinks you are no longer watching the channel, you may see this message on your television.

If you use a “CableCARD” provided by the cable company to plug into your HD television, or if you use an HD TiVo Digital Video Recorder without a cable box, you could run into another problem. The current generation of CableCARDs often cannot communicate with the cable company’s SDV system.

That means when you try to tune a channel provided using SDV, you end up with an error message saying the channel is not available. Those CableCARDs that can successfully request an SDV-provided channel may not be able to respond to the cable company when its software periodically asks (in the background) whether your TV set is still watching an SDV channel. If the equipment cannot respond that you are, the system will assume you are not and the channel will go blank.

Sometimes, the cable system will display a message and let you press a key on your remote to let the system know you are still watching the channel, and do not want it to go away.  Unfortunately, without the two way communication that the cable company-provided set top box or add-on equipment provides, there may not be a way to get your request back to the cable company.

The cable industry will ultimately need to release a new generation of CableCARDs that are fully capable of two-way communications.  Until that happens, some cable companies are loaning out, often at no charge for at least a year, special add on equipment to deal with this problem.

A Tuning Adapter is a small set top box that adds two-way capability to your existing equipment, so it can “talk” back and forth with the cable system.  Some cable companies, like Bright House, will provide up to two of these devices for no charge for 12 months.  After that (and for each additional box), the rental fee is $3.80 per month for each Adapter.  Time Warner Cable provides them for free.

Uh Oh... the cable system wants to doublecheck you are still watching this channel.  If your equipment can't communicate with the cable system, it will assume you are no longer watching, and turn it off.

Uh Oh... the cable system wants to doublecheck you are still watching this channel. If your equipment can't communicate with the cable system, it will assume you are no longer watching, and turn it off.

It’s unfortunate existing CableCARDs can’t work properly without requiring the extra equipment, but when the original CableCARD specifications were developed, SDV wasn’t available.

Eventually, most cable systems will either upgrade systems to handle more channels and services, or will slowly move more and more analog cable channels to digital, opening up lots of additional space for high definition cable and broadcast signals, as well as on-demand and broadband services.

The newest generation systems from Verizon (FiOS) and AT&T’s U-verse use fiber optic cable, which has tons of capacity to handle everything.  Verizon installs the fiber cables right to your home.  AT&T installs it on the poles in your neighborhood, and then sends only the individual channel(s) you are watching across the copper wire phone cable already in your home.  Since AT&T doesn’t send any channels you are not watching across your phone cable, capacity isn’t much of an issue with U-verse.

There are two Tuning Adapter brands, Motorola and Cisco. Your cable system will send you the one that will work for you.

There are two Tuning Adapter brands, Motorola and Cisco. Your cable system will send you the one that will work for you.

Satellite television relies on a fleet on satellites to deliver channels to subscribers, either on a national “beam” which reaches every home, or a focused narrow “beam” which only reaches small regions of the country (which is used to deliver local television channels).  To add capacity, satellite providers launch additional satellites, or find new ways to compress their existing channels to make room for additional programming.

The Tennis Channel: Not Playing in NYC

September 1, 2009 Cable Television No Comments
Tennis Channel ad being run in New York print media (click to enlarge)

Tennis Channel ad being run in New York print media (click to enlarge)

Expensive sports channels frequently run into roadblocks when cable systems refuse to pony up the several-dollars-a-month fees charged for every subscriber who can watch the channel.  Sports programming is, hands down, the most expensive type of programming carried on cable television basic/standard lineups.  Getting the rights to show major sporting events is usually decided through bidding battles.  Before 1992, most television rights were won by one of the broadcast television networks, who were the only ones capable of turning in the big bids.  But by the mid-1990s, basic cable sports networks like ESPN started competitively bidding for sports programming — and won.

Recouping the multi-million dollar bids through advertising alone wasn’t enough, so sports networks began increasing their fees charged to cable systems for carrying their programming.  In turn, that helped fuel ever-increasing cable rates for consumers, even for those who have never watched any sports-related programming.

In an effort to slow down rate increases, cable systems began to create special “sports tiers” on their digital cable lineups.  For $4-6 a month, sports aficionados could subscribe to a package typically including 10 or more regional sports channels, as well as those devoted to individual sports.  Since cable networks typically charge cable systems based on the number of subscribers who can watch, this dramatically reduced the costs of carrying such networks.  Only those who want the sports tier need be charged.

Of course, sports cable networks do not like specialty sports tiers.  They can earn much higher revenue (and get a higher profile) if they collect from every basic/standard customer.  Some sports networks steadfastly refuse to allow their channels to be carried on such sports tiers, to varying degrees of success.  Usually, an obstinate network tries to leverage the value of their programming (and the anger from sports fans denied access) by running public relations campaigns telling fans to bug the local cable company to add the network to their basic lineup.  It’s then up to the cable company to try and explain why they want to carry the channel on a special sports tier, one that neither the programmer will accept, nor the subscriber, who is not thrilled to learn he has to pay even more to watch the channel in question.

That brings us to the latest squabble — The Tennis Channel and New York City cable systems.

Time Warner Cable

Time Warner Cable’s New York City system has opted out of providing the free two week preview of The Tennis Channel that it is promoting in several other cities where it has cable systems.  That’s annoying for tennis fans, who this year won’t find the U.S. Open on the USA Network, where it has traditionally been televised in years past.  Instead, it will be found on ESPN 2, which is carried by Time Warner Cable and can easily be found on the lineup, and the much more obscure Tennis Channel, which is “buried” in a digital sports programming tier Time Warner Cable sells for $3.95 a month.  Only a small percentage of subscribers pay the four bucks a month for more sports, so that effectively means subscribers will have to take what they can get from ESPN 2.

Why did Time Warner decide not to carry the two week free preview?  Why give it away for free when you can make money selling it:

Ken Solomon, the Tennis Channel’s chief executive, said it was surprised when Time Warner said it was not considering New York. The New York system had carried free previews of the last three French Opens — all that the cable operator had been offered. “They changed their mind, saying they wanted to sell the sports tier, it’s the U.S. Open, it’s in New York and they’re in New York, and they shouldn’t have to give it away for free,” Solomon said.

He added: “It’s disappointing, but it’s not a giant issue. At the end of the day, we’ll be in 54 million homes, not 55.5 million. This is not a business maker or a business breaker.”

Why didn’t USA Network simply keep providing coverage themselves?  The cost.  Inflation in the bids for sports programming television rights is just as outrageous as the ever-increasing cable television bill consumers face every month:

USA no longer had much interest in sports or in paying $22 million a year to show the United States Open, regardless of the tradition it had become. So ESPN stepped in, agreeing to pay $140 million over six years to gain the cable rights to its fourth Grand Slam tournament. And the Tennis Channel, seeking credibility and more subscribers, also coveted a fourth Grand Slam tournament and sublicensed its coverage from ESPN. CBS, of course, is still the tournament’s broadcast partner and has not surrendered the singles semifinals and finals to cable.

So New Yorkers will either need to pay to get The Tennis Channel on the digital sports tier, find another provider that does carry the channel on its basic/standard lineup, or do without.

Cablevision

At least Time Warner customers can subscribe to a package to get The Tennis Channel.  In suburban New York, particularly on Long Island, Cablevision subscribers can’t get the network at all because of a nasty spat between the channel’s owners and the cable company.

The Tennis Channel executives were just annoyed with Time Warner burying their channel on a sports tier, but they are tearing their hair out over Cablevision, which wants $5.95 a month for their digital sports tier.  The channel refused to sell to Cablevision under those terms and declared the negotiations were at an impasse.  But a creative employee at Cablevision figured out they could theoretically get access to the network despite the failed negotiations.  The cable company, one of the nation’s largest, joined the National Cable Television Cooperative, which serves the nation’s smallest family owned and independent cable systems.  Since volume discounts are provided to cable systems based on the number of subscribers they have, the NCTC was formed to pool small cable systems together to get a volume discount price for programming.

The NCTC already has a contract with The Tennis Channel for its member systems, so Cablevision simply hopped on board the NCTC contract.

Not so fast, comes the reply from The Tennis Channel, who turned out to have the last word for now.  They have refused to activate Cablevision’s receiving equipment to receive their encrypted satellite signal.

Cablevision insists that it has a valid deal to carry the channel on its sports tier and is portraying the Tennis Channel as the intransigent party that is denying fans access to its United States Open coverage. The Tennis Channel says the deal is not valid and has not flipped the switch to enable Cablevision to carry it.

Cablevision said that the Tennis Channel is “refusing to do the right thing.”

Assuming negotiations over the creative NCTC “solution” to problem fails, the next chapter in this saga will likely include the lawyers.

The Mendon Theater of the Absurd Presents… Health Care Reform With Rep. Eric Massa

August 7, 2009 Personal Thoughts 1 Comment

As we approached the Mendon Community Center, the lines of cars up and down Route 65 were our first indication things were going to be interesting last night.  I made a point to check out many of the license plates and rear ends of the cars parked and was “surprised” to discover among those purchased and driven locally were a whole mess of license plates and dealer stickers from Pennsylvania, New Jersey, Massachusetts, Florida, Georgia, and a whole bunch of automobiles purchased from Buffalo, Syracuse, and other dealers further east.

Discounting the snowbirds who return to western New York every summer, there was still apparently quite a contingent of “out of the district” visitors to last evening’s town hall meeting on health care.

The astroturf crowds had arrived.

I also made a point to scan through some of the sign-in sheets that were scattered across the table, and just from looking at a few pages visible, it was quickly evident a whole bunch of the estimated 500 attendees did not identify themselves, or perhaps more importantly, from where they came.  Clearly, a large segment were from our area, with the signature Raaachester accent evident, but several voices were coming from downstaters and midwesterners that wouldn’t know what you were talking about if you offered them a “red” or “white” hot dog.

Despite being 15 minutes late, after finally finding a parking spot, the discourse was as anticipated.  Perhaps 20-25 members of the crowd were obviously the cheering section for the disenchanted and disenfranchised Republican base who were there to cheer on the far fewer half dozen regularly rude instigators that were standing in the back of the canopied seating section.  They occasionally purposefully scattered to different sections to try and boost their apparent sound and numbers.

The Glenn Beck contingency, who showed up in yellow t-shirts, were also there and were the source of much of the heated rhetoric and shouting that they learned from the grand master, the self-described “rodeo clown,” Beck himself.  I think anyone who knows who Glenn Beck is automatically will discount the position of someone who calls themselves one of his rabble.  Beck illustrates just how insane some Republicans get when they are shocked to discover the country does not love them anymore.

As the evening progressed, I realized just how absurd most of this really was.  The protesters were effectively outmaneuvered repeatedly by Rep. Massa, who is not a reflexive supporter of any party position, but makes his own way based on what he feels is the best way forward for his district, which leans Republican but is also increasingly disaffected by the southern base of the GOP.  The recitation of the talking points and slogans, often repeated even after Massa had effectively countered their earlier use, only made the transparency of the stagecraft before us even more apparent.  The countering crowd of progressives and those who found the behavior of these people boorish underlined it.

Protesters brought up all of the usual stuff that, to me, made it clear that of all the people they’ve repeatedly demanded “read the bill,” they had smugly exempted themselves.

The bizarroworld theory that health care reform will kill old people was there, along with ludicrous fears that losing private insurance just once would force people into a lifelong public plan with no way out, the wacko Socialism charge was there as well.  In two particularly terrible performances, one anti-abortion guy overplayed his emotions in the worst acting performance since Sofia Coppola appeared in The Godfather: Part III.  Why is it always men that end up screaming about the abortion issue?  I would have liked to know whether he would have supported contraception in health care reform, and a commenter on the Fighting 29 blog pondered whether he’d demand coverage for male impotence medication, an even better question.

The second instance was a bizarre outcry from an old guy a few feet from me who put forth completely overwrought indignation about swastikas and Nazi references that nobody was really making, except other protesters who were bashing Nancy Pelosi.

A woman who made a point of wearing a generic white jacket who used it as some sort of credibility enhancer (which anyone could have picked up at a uniform store), and claimed she was in the profession then delivered the same talking points anyone in the profession would have rejected out of hand, which was happening among at least one doctor and his wife standing adjacent to me.

The rudeness factor was obviously kept in check by an equal number of people who repeatedly hushed and shot back remarks at those who felt their individual rights were more important than anyone else’s.  Anyone who had the microphone in hand who began delivering talking points or reading from a paper was likely to be taunted within 30-60 seconds, more often from protesters than from those challenging them.

I felt, in the end, this was much more about heat than light, and I doubt very much any opinions were changed at all.  It did show off Rep. Massa’s skills at crowd control, and his ability to rapidly deflate the rhetoric without ever losing his cool.  He came away better than anyone.

In all of these kinds of meetings, there is one point where everything is crystallized about the sentiments of each respective side. For me, it was the rare moments of hearing honest questions from ordinary people about whether the bill would have mental health parity and co-pays — real questions from real people.

The progressives demanded single payer health care, a concept which is dead in Congress, at least for now.

The protesters “moment of clarity” crystallized when one young guy stood up and boiled down the rhetoric of the opposition to his point that nowhere in the Constitution does it claim he (or any of us) should have to be responsible for taking care of each other in this society, it is up to each of us individually to take care of ourselves, and that anything different is anti-American and socialism.

This Ayn Rand moment really spoke a lot about those who fundamentally believe that as long as they have theirs, all is well. That the sense of people helping people is fundamentally wrong and represents socialism, and that the individual right is more important than collective will (except when election results or social policy doesn’t go their way of course). These are the same people, when you drill down, who will inevitably tell you that because nobody helped them with issue “x” in their lives, why should anyone, least of all them, help you or anyone else.

Thankfully, these kind of people represent a small minority in this country, and if there was a way we could give them an official minority opt-out, they could live out their Ayn Rand theory of living on a compound somewhere in Texas. That would be a Survivor-like TV show I’d watch as they destroyed one another trying to climb on top.

Eric Massa had the perfect response, once again noting in the military, you are only as strong as your weakest link. Massa’s idea is to strengthen that link. The audience member’s idea would be to throw him in the sea.

Bottom line, the circus of the absurd will be in town for the rest of the month, but if you want real health care reform, you don’t have to pet the elephant.  Just pick up the phone or write a letter to your Congressman and two Senators and tell them what YOU want.  By all means do attend and watch the spectacle, but it’s obvious Congressman Massa is not rattled by any of this, realizes who and what it really represents, and none of this will be the determining factor in his vote on this matter.

Rep. Eric Massa is Right – No Real Public Option = A No Vote

As the staged theater continues at town hall events, with out of district, often paid “protesters” showing up to disrupt meetings, insurance executives essentially ordering their employees out to meetings to “create opposition,” and now an escalation of rhetoric leading to death threats in some instances, elected representatives are under siege by Special Interest Stagecraft.

Lost in all this, of course, are ordinary consumers who live in the district, who are too often being drowned out by the rabble at many of these events.

Now we have more noise in the mix coming from groups on the left that want to fritter away true health care reform just for the sake of getting anything passed.  Some of them are upset that Rep. Massa has stood firm in his conviction that a health care reform bill that jettisons a “public option” isn’t health care reform at all — it’s just a watered down insurance reform bill that will evoke heaving sighs of relief from the insurance and big pharmaceutical lobbies.

Citizens Action New York (who?) showed up Tuesday at Rep. Massa’s Pittsford office with 5,000 signed petitions from “New Yorkers” (how many are inside the 29th Congressional District is an open question) who want health care reform, apparently even if it means passing a bill that has a title page by the name, with little to no reform in the actual bill.

Meanwhile, Local 1170 of Communications Workers of America and the Working Families Party also turned up begging Massa for a vote that constitutes appeasement with the health care industry.

While the teabagging rabble attempts to shout down people at town hall meetings, some of the “watered down health care” crowd is manning out-of-district phone banks, actually encouraging people to tell Congress to vote for whatever scraps that eventually result from compromising away the core principles of health care reform.

I’ve fought legislative battles on telecommunications law for more than 20 years now.  The one true fact of life I’ve learned repeatedly in my own battles, a lesson I wish my Democratic lobbying friends would finally learn, is that it is worse to pass a bill that doesn’t solve the problem than killing the bill and starting all over again from scratch.

A health care reform bill, at the bare minimum, must contain a true public option.  There is a reason why the other side is quiet about “co-ops,” because they know that’s not true reform — it’s window dressing.

For once, can the Democratic Party not be the ONLY group that actually believes Republican talking points?  Progressives have already compromised away the single-payer health care system concept and are forced to live with “the public option.”  The other side, who wants to keep the status quo, has compromised not a single one of their core principles away, yet now there are Democrats who are back before progressives once again asking them for more compromises, while the other side merrily pounds away on one of the most important reform issues of the last 50 years.

Enough.

Citizens Action New York and the CWA, among others, want Congressman Massa to throw away his core values and beliefs and support what looks more and more like a health care lobby’s dream come true – a bill that hands them tens of millions of new customers forced to pay into a system modified with lukewarm reform that I assure you will be chipped away through exploitation of loopholes that always exist in these bills.

But it’s worse.  The passage of such frittered away legislation will kill momentum for real, honest reform for at least two decades.

“Didn’t we already address this issue in the Health Care Reform Act just x years ago? Why do we need to make changes – we should wait and allow the legislation’s impact to be fully measured in a few years.”

I’ve heard exactly the same kind of language on the telecommunications issues I’ve fought for in the past.

It is always better to realize that if you’ve been outmaneuvered or have been stabbed in the back by the “colleagues” in your own party that traded away their souls for fat campaign contributions, it’s much better to kill a bad bill and begin anew than to pass bad legislation that changes little or nothing.

Congressman Massa recognizes that reality.

The correct response to all of this is for the president and leaders in Congress to start cracking the whip, and for once get the wavering Democrats on board and unified… or else.

For the rest of us, we’re remembering the names of those who stood with consumers and will be there to support them come election time.  Congressman Massa is one of those.  Those that decided to throw their constituents under the bus so they could keep those nice big campaign contributions will also need our help – to force a primary challenge, raise money for the opponent, and get those people out of office.

Citizens Action New York, CWA, and others — stop being part of the problem and start getting into the hand to hand combat we need right now to force through legislation that has a public option.  Doing anything less is like doing nothing for the people you claim to represent.

Orchestrated Hooliganism At Town Hall Meetings on Health Care Reform

August 4, 2009 Personal Thoughts 6 Comments

This is vile.

Having attended my fair share of town hall gatherings, I’ve never seen a more loathsome representation of organized thuggery on the part of the health care lobbies organizing so-called “spontaneous” citizen protests against health care reform.

The group behind all of this, Freedom Works, is an astroturfing group I’ve dealt with before on our municipal broadband issue that I write often about on Stop the Cap! It suckers ordinary citizens into advocating against their own best interests by… well, making stuff up and scaring them. They always hide their true funding backers, pretending to be a “consumer group.”

Municipal broadband isn’t a way for local governments to supply broadband service at the speeds and pricing consumers want, it’s an ‘Obama-engineered socialist takeover of the Internet, as part of his secret campaign for stifling dissent.’  They load mostly retired folks who sit around all day listening to talk radio onto several buses and send them into various places to protest and disrupt.

We endured this nonsense in our successful battle in North Carolina, and those asking some of these people questions quickly learned they had no idea what the specific issues were — they were given basic talking points, a bus ride, and told to chant various slogans which usually had little to do with the issues at hand.

Consumers who actually did understand and support the issue of municipal broadband, who usually lived in the communities affected (unlike so many of the imported protesters), were far more effective with legislators than the talk radio rabble.

Now we’re seeing the same basic thing happening all over again, on a larger scale, with congressional town hall meetings on health care reform being turned into what is starting to resemble a beer hall putsch.

Everyone should have a right to express their opinion and ask questions, but in a respectful manner that recognizes those with opposing views have exactly the same rights.  These meetings need to start with a clear warning that any disruption of this kind should be met with immediate removal of those involved from further participation.  Don’t worry, Mr. or Mrs. elected official, these people weren’t voting for you anyway.

The most vile part of this, of course, is that it is a carefully organized, health care lobby-run and paid for effort, suckering citizens into doing the bidding of health insurance companies that will stop at nothing to grind health care reform to a halt.  They do it with lies, scare rhetoric, and outright nonsense.  The results, encouraged by leaked documents that specifically instruct in disruptive tactics, are the kinds of disruptions that Rep. Dan Maffei (D-New York), a congressman that represents part of suburban Rochester east towards Syracuse, had to endure.

The media rarely exposes the fact these are lobbyist organized protests that involve a tiny minority of people. The majority of constituents support health care reform, but you wouldn’t know that from the media coverage generated with TV-friendly scenes of chaos at town hall meetings like these:

On a personal note, my partner and I have health care insurance from MVP (formerly Preferred Care), one of two major providers serving the Rochester area. Unlike most employers, the company my partner works for doesn’t mask the true cost of health care to its employees. It provides every employee with a base salary and then offers health care coverage at the actual cost imposed by the employer’s provider. For two person coverage in an HMO, with average coverage and prescription drug benefits, with a lower co-pay for doctor visits, we’re talking more than $800 a month. That’s well above a car payment, and within 15 years, at the present rate of growth, will exceed our mortgage payment.

Too many people have no idea what the true cost of health care is in this country. They don’t realize a significant chunk of their salary is sidetracked for a benefits package that hides the actual costs employers pay for covering their employees. Most only pay a small percentage of “cost sharing” towards their insurance coverage, and assume that must represent the true cost of the plan. It absolutely does not. In most cases, for a whole family plan, the costs are above $1000 a month. You may not realize you would normally have a salary $10-12 thousand dollars higher a year, had it not been diverted for benefits.

I am a supporter of single payer health care that builds on and learns from the successes and failures of other nations. Nobody says our system has to be identical to Canada or any other country. This is the United States of America. We can do it better.

Right now, at least a quarter of our health care dollar is handed over to a middleman insurance company that too often rewards itself and its executives with fat pay and bonuses for actually doing very little.

Which makes more sense? Choosing your own doctor, making an appointment yourself, paying a small co-pay, and getting the treatment you need or having to navigate through a bureaucratic health care insurance system that rewards claims denials, limits care, and denies treatment for a myriad of reasons, particularly when it starts getting costly.

The fear mongering about government bureaucrats supposedly making your health care decisions for you completely ignores the fact that is precisely what insurance company executives do right now, and they have a profit motive and shareholders they answer to, not to you. If the government doesn’t do the job the way you want it, throw out the people running it and elect new people. In too many areas, you don’t get that choice with your insurance company.

Remember, I don’t see too many opponents to health care reform demonizing Medicare, nor do I see members of Congress foregoing the excellent government-run health care they receive either.

Of course, single payer doesn’t appear to be in the cards during this first go-around. The “public option” is the best we can appear to do. Only big corporate health care will do anything to kill that as well. That’s because once a public option exists, the veneer of the pricing system we live with today will be torn off, finally allowing consumers some real savings. With one or two commercial insurance companies in the market, wholesale cost reductions threaten profits and revenue, and anger Wall Street and shareholders. Better to incrementally make changes that do not rock the boat (or shareholder value) than to viciously compete for customers.

The precise same argument has been there for municipal broadband projects. When two providers stick consumers with plans that “are good enough for you, so pay us” and refuse to make the upgrades customers want, local governments occasionally decide they’ll commission their own municipal projects that will give the citizens what they want, often at amazing savings. Once consumers find out how much profit is built into the commercial broadband services they’ve endured for years, they get mad — and switch to the municipal system. Then and only then do the private providers suddenly find it within their means to upgrade their networks and actually compete. The winner? Customers. These systems were built from bond issues, not taxpayer dollars, and are built to be sustained with the revenue earned from customers, not taxpayers.

The reaction to both the “public option” and “municipal broadband” is amazingly similar from the private sector. Scare rhetoric, falsehoods, and big fat campaign contributions to elected officials and propaganda campaigns to fool voters help achieve victory for providers and loss for consumers. When consumer friendly reform fails, providers and the lobbyists they hired high-five each other and get back to doing business the usual way, as your wallet gets squeezed more and more.

Let’s not do this all over again. I lost my mom to cancer in 2006, and we had our fair share of battles with insurance companies. When someone is fighting for their life, should even five minutes have to spent arguing with insurance companies whose default answer is always “no” until worn down into saying “yes.”

This isn’t just a Republican or Democrat issue. We have elected officials serving as well-paid prostitutes for the health care industry from both parties. Be they a high ranking Republican taking millions in contributions, or a “blue dog” Democrat that is running to the bank to cash lobbying checks, doing favors for money equals prostitution in my book. Anyone who doesn’t get back to representing their constituents instead of big pharmaceutical and insurance companies needs to find another line of work.

Cable’s War on Public Broadcasting

WPBS

Cable operators in Canada and the United States continue their purge of secondary PBS stations from analog cable lineups from coast to coast.  Subscribers in many communities where multiple PBS stations can be found on the cable lineup are most likely to be impacted.

Some lineup changes have sparked local viewer campaigns to preserve the stations, others draw protests mostly from the stations themselves.  In many American cities with several nearby PBS stations that have traditionally enjoyed carriage, wqlncable operators and PBS have agreed that cable companies can keep one PBS station on the analog basic cable lineup, and switch others to space-saving digital service tiers.  In Canada, cable operators are moving away from over-the-air reception of public broadcasters just across the American border, preferring to grab stations from Detroit or Seattle, well-distributed across Canada by fiber and satellite.

Rogers Cable Plans to Dump Watertown, NY and Erie, PA PBS Stations For A Detroit PBS Station

Rogers Cable, one of Canada’s largest cable companies, is furiously cost-cutting in order to preserve profits in a troubled economy.  One way to save money, apparently, is to dispense with two over-the-air PBS stations Rogers imported for its Ottawa and London, Ontario cable subscribers.  In their place, a fiber-fed signal from the PBS affiliate in Detroit.

First to Watertown, a small city on the eastern shore of Lake Ontario, in northern New York state.  WPBS-TV, the local PBS station, has been a part of the eastern Ontario cable lineup for decades.  The station has carefully cultivated a relationship with its Canadian viewers in and around Ottawa for years, and has more than 1,600 Canadian members contributing money to keep WPBS on the air, representing 23% of the station’s membership.  The station also promotes and sponsors Canadian cultural events, and is extremely sensitive to the tastes of its Canadian audience, hence the station’s strong lineup of British television shows.  Rogers gave WtvsWPBS no respect, and elected to notify subscribers it was dropping the station, replacing it with WTVS-TV in Detroit, several hundred miles away.  The station found out when a viewer e-mailed WPBS to complain about the decision.

The news stunned station management.

“We didn’t see this coming. We heard absolutely nothing about it,” said Lynn Brown, the station’s director of programming and development. “It would have been nice after a 30-year-plus relationship for them to call and say, ‘We’re considering this’ and give us an opportunity to respond if they wanted us to improve something.  It took a good half hour just kind of staring at one another and getting over that shock,” she said.

Brown said she spoke to a Rogers official who told her there was no requirement to notify the station in advance because it is American and not governed by Canadian broadcasting regulations.

She was told the switch is part of a “streamlining” effort by Rogers to make the channel lineup more “efficient” for viewers.

Rogers Cable also told the Ottawa Citizen:

“Over the years our customers have asked for the PBS Detroit feed, so we’ve decided to replace PBS Watertown with PBS Detroit because it offers higher quality reception and signal reliability. The PBS Detroit feed is delivered through our fibre network rather than through antenna (over the air), which gives us redundancy through our network and improves reliability in poor weather conditions. Typically, our communication is with PBS in Detroit. We called the Watertown station to apologize for the oversight.”

The decision outraged subscribers, who have been pelting Rogers with complaint calls and e-mail.  Several angry letters were published in Ottawa newspapers, a protest Facebook group was formed, and complaints were filed with the Canadian Radio-television Telecommunications Commission (CRTC), Canada’s version of the Federal Communications Commission.

The protest worked.  Late Thursday, WPBS received word from Rogers they had changed their mind and would retain WPBS on the lineup.

Meanwhile, in London, southwestern Ontario, Rogers customers accustomed to watching PBS programming from WQLN-TV in Erie were also going to see a nearby PBS station replaced by WTVS in Detroit.  WQLN received more than $200,000 in contributions from London area viewers, and that funding is critical to WQLN in a year that Pennsylvania governor Ed Rendell proposed eliminating $800,000 in state funding for the public broadcaster.  Combined with the loss of viewership in London, the station could have gone off the air altogether.

Late Thursday, Rogers notified WQLN it would also retain its signal for London area viewers, if the station agreed to spend between $30,000-50,000 to pay for a direct fiber link to deliver the station signal to Rogers master control center in Toronto.

Southern Ohio to Lose Half of Its Public Stations on Time Warner Cable
Kentucky_Educational_Television_logo

In southern Ohio, Time Warner Cable customers are about to lose half of the public broadcast channels they used to receive.  The Cincinnati Enquirer had the bad news:

Covington’s (Kentucky) WCVN-TV (Channel 54) and Dayton’s WPTD-TV (Channel 16) will be dropped from Time Warner’s most affordable service level Aug. 25, says Mike Pedelty, vice president for communications.

Only CET (Channel 48) and Oxford’s WPTO-TV (Channel 14) will remain on basic cable.

At the same time, Time Warner will cancel six public TV channels from its more popular digital level – CET’s Kids channel, plus WPTO-TV in high definition and all digital multicast channels.

Overall, Time Warner will drop eight of 22 public TV channels in a major channel realignment. Time Warner will replace Channel 16 on basic cable with the Home Shopping Network.

“We are making changes to prevent duplicate programming,” Pedelty says.

In addition to Cincinnati and Hamilton County, WPTD-TV will lose viewers in Butler and Warren counties, where some residents work or shop in Dayton.

The stations affected weren’t happy to learn of the news, and are meeting with Time Warner Cable in an effort to retain service.  Cable customers are not happy about the changes either, especially considering at least one of those channels will go to a home shopping channel instead.

West Virginia Battled Comcast To Preserve Statewide PBS Station

Coverage area of West Virginia Public Television

Coverage area of West Virginia Public Television

In West Virginia back in late May, Comcast customers in the state were notified that if they wanted to continue receiving the statewide PBS/public broadcasting station network, dubbed West Virginia Public Television, they would need to upgrade to digital cable service.  That’s because viewers in northern West Virginia were only going to receive WQED-TV Pittsburgh, and areas in the eastern panhandle of the state would receive PBS from a station in Washington, DC.

Once again, viewer complaints and West Virginia Public TV management managed a compromise with Comcast – retention of the WVPBS service on basic cable, but placed on the system in a digital format.  Comcast customers received free, very basic, digital decoder units for two years to continue to receive the channels.

Expect additional controversy in the months ahead if your cable system carries multiple PBS stations.

Two Confirmed Tornadoes Hit Cattaraugus County in Western NY Sunday Evening

Two more tornadoes have now been confirmed by the National Weather Service office in Buffalo that struck Cattaraugus County in the southwestern corner of New York Sunday night, just a few miles from the Pennsylvania border.

Tornado over the Allegany Reservoir in Onoville, New York

Tornado over the Allegany Reservoir in Onoville, New York

Tornado Details – Oroville/Steamburg, NY

Date: 07/26/2009
Estimated Time: 6:50pm EDT
Maximum EF-Scale Rating: EF1
Estimated Maximum Wind Speed: 90-95 mph
Maximum Path Width: 75 yards
Path Length: 4.5 miles
Beginning Latitude/Longitude: 42.02N / 79.06 W
Ending Latitude/Longitude: 42.04N / 78.94 W
Fatalities: 0
Injuries: 1

The Onoville tornado touched down in southwest Cattaraugus County Sunday evening, damaging docks and boats at the Onoville Marina.  A few trailers were moved, but one was rolled over.  Several awnings were also destroyed.  One minor injury was reported.

Tornado Details – Cain Hollow/Cold Spring – Allegany State Park, NY

cainDate: 07/26/2009
Estimated Time: 7:10pm EDT
Maximum EF-Scale Rating: EF0
Estimated Maximum Wind Speed: 75-80 mph
Maximum Path Width: 30 yards
Path Length: 0.50 miles
Beginning Latitude/Longitude: 42.04N / 78.90W
Ending Latitude/Longitude: 42.05N / 78.79W
Fatalities: 0
Injuries: 0

The tornado touched down in the Cain Hollow area of Allegany State Park, near Cold Spring.  Fifteen to twenty trees were damaged or felled by the tornado’s impact.  No injuries were reported.

Television stations in Buffalo and Rochester covered these latest tornadoes as part of their newscasts.  Video can be found below the jump.

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