Walmart's "free" offer could come with a price

CONSUMER BEWARE!

Mon, Jan 09 2011 18:16 PM EST

By Mitch Lipka and Jessica Wohl

(Reuters) - As tax season begins, a decision by Wal-Mart Stores Inc to offer some free and discounted tax preparation in conjunction with its check-cashing services at more than 3,000 U.S. stores is less about giving back and more about bringing in, experts cautioned.

"No company does anything altruistically," Morningstar analyst Michael Keara said.

Now that the holiday shopping season is over, the retailer is looking for new revenue sources, he said. The company's latest offer allows consumers to have their tax refunds deposited for "free" onto a Walmart cash card. In addition, the company is working with major tax preparation firms to provide free "assisted" form 1040EZ filings.

It will take a while to see how lucrative the new service will be, given that some people will choose to pay down debt from their previous round of spending with their tax refunds, Keara said. Either way, it's going to put more money into Walmart stores and is another play to reach millions of Americans who don't use traditional banking services.

"It just locks in that they'll spend their rebate checks at Walmart," Keara said. "It's pretty smart."

Walmart already is a big player in the marketplace to cash checks for those who don't use traditional banking services and who often face steep check cashing fees. Walmart charges a flatrate price of $3 or $6 (depending on the size of the check) rather the 3 percent to 5 percent fees at check cashing services. For a $500 check, that means paying $3 at Walmart or $15 to $25 at a check cashing service.

The new program, which kicked off on Monday, come as Walmart tries to reach "unbanked" consumers, who typically don't have credit cards, either. About 85 percent of transactions at Walmart stores are paid with cash.

Some 2,800 Walmart U.S. stores have a Jackson Hewitt location, and another 250 or so stores feature H&R Block Inc.

Those providers will offer free 1040 EZ filings with tax preparation consultants in Walmart stores, said Daniel Eckert, head of Walmart financial services. Prices for other tax preparation services will be about 7 percent to 10 percent lower than at both companies' other locations, he added.

Jackson Hewitt and H&R Block already offer free basic tax return preparation through their offices and websites. It also is free to file the simplified 1040EZ on your own, or even through one of the online services, such as Intuit's TurboTax.

More than 60 million Americans do not use traditional financial services such as credit cards and checking accounts, Eckert said. Last year, these consumers paid billion of dollars in fees and interest to financial services providers. Within the next few months, they will be looking to cash more than $31 billion in tax refund checks and many could pay up to $90 for such check cashing services, he said.

"It's money that we want to make sure ends up in the right place, which is back in their pocketbooks," Eckert said.

Walmart, whose core customer has a household income of $30,000 to $60,000, has been trying to stand out to those with limited financial means. The world's largest retailer brought back holiday-season layaway on toys and electronics, letting shoppers pay in installments for a modest fee, a move that appears to have been a success.

Tax preparation is just one offering in Walmart's "MoneyCenter." The retailer also offers Walmart credit cards and money cards, money transfers, money orders along with $3 check cashing.

Ed Mierzwinski, consumer program director for U.S. PIRG, cautioned consumers to look at skeptically at Walmart's proposition.

"Consumers who are considering the Walmart offer should understand that Walmart is not your friend," he said.

One area of concern is the company's offer to allow consumers to have their tax refunds deposited for "free" onto a Walmart cash card, which Mierzwinski pointed out comes with a lot of fees. Some of the fees include $3 if $1,000 isn't added to a card in a given month, $2 to withdraw cash from an ATM, $1 to check your balance and $3 to replace a lost or stolen card.

"You put your refund on their card, so you're more likely to spend your refund at their store than save your refund," he said. "And you're more likely to be an impulse shopper." (Editing by Lauren Young and Beth Pinsker Gladstone)

NH Presidental Primary Election Results

FULL election results

Snow And Rain In Forecast For Thursday Commute « CBS Boston

Snow And Rain In Forecast For Thursday Commute « CBS Boston

Fire whom? Romney draws flak before N.H. primary

January 10, 2012, 05:00 AM By David Espo and Kasie Hunt The Associated Press

NASHUA, N.H.  — Republican front-runner Mitt Romney stumbled down the homestretch of the New Hampshire primary on Monday, declaring, “I like being able to fire people who provide services to me” as his rivals intensified already fierce criticism. “Gov. Romney enjoys firing people. I enjoy creating jobs,” said former Utah Gov. Jon Huntsman, who has staked his candidacy on a strong showing in Tuesday’s primary and has shown signs of gaining ground in recent polls. Adding insult to any injury, Texas Gov. Rick Perry posted a ringtone to his campaign website that consisted of Romney saying, “I like being able to fire people,” over and over. Romney is the odds-on favorite in New Hampshire, and Huntsman as well as other Republicans who are contesting the state have generally been content to vie for second place in hopes of emerging as his main rival in the South Carolina primary on Jan. 21. “Second place would be a dream come true,” said former Pennsylvania Sen. Rick Santorum, as he raced through a final full New Hampshire campaign day that began before sunrise and stretched for more than 14 hours. The former Pennsylvania senator finished a surprising second in last week’s Iowa caucuses, but without money for television ads he has appeared to struggle as he seeks to convert that into momentum. Romney, the former Massachusetts governor, won in Iowa by eight votes. A victory in New Hampshire would make him the first Republican in a contested presidential nomination battle to capture the first two races of the campaign since Iowa began leading off for the GOP in 1976. The battle has grown increasingly rancorous in recent days — both in New Hampshire and next-up South Carolina — with Santorum, Perry and former House Speaker Newt Gingrich escalating their attacks on Romney’s claim that a background in business uniquely qualifies him to help create American jobs. At the same time, an organization that backs Gingrich has spread the word that it intends to spend $3.4 million on television ads in South Carolina that are expected to attack Romney with gusto. “Now we’ll see if he has the broad shoulders and can stand the heat,” said Gingrich, relishing the battle ahead as the nominating campaign wheels South. Romney’s remark about firing people was the second jarring moment for the front-runner in the span of less than 24 hours. On Sunday afternoon, the millionaire businessman told an audience that he understood the fear of being laid off, adding, “there were a couple of times when I was worried I was going to get pink-slipped.” His aides refused to provide details. On Monday morning, addressing the Nashua Chamber of Commerce, he said he wants individuals to be able to choose among different health insurance policies as they seek coverage. “That means the insurance company will have an incentive to keep you healthy. It also means if you don’t like what they do, you can fire them,” he said. “I like being able to fire people who provide services to me. If someone doesn’t give me the good service I need, I’m going to go get somebody else to provide that service to me,” he added. A few hours later, in a previously unscheduled appearance before reporters, Romney emphasized he had been talking about insurance companies. “Things can always be taken out of context, and I understand that’s what the Obama people will do. But as you know I was speaking about insurance companies and we need to be able to make a choice and my comments entirely reflected that discussion.” As for once fearing he would be fired, he said, “I came out of school, and I got an entry level position like the other people that were freshly minted MBAs, and like anybody that starts at the bottom of an enterprise you wonder, when you don’t do so well, whether you’re going to be able to hang onto your job.” Romney has made his career in business the core credential of his candidacy, saying that his firm, Bain Capital, created 100,000 jobs on balance as it started some firms while taking over, remaking and then spinning off others. Gingrich told one interviewer during the day that Bain Capital “apparently looted the companies, left people totally unemployed and walked off with millions of dollars.” He wasn’t asked to provide details. But Perry, campaigning in Anderson, South Carolina, was — and did. “If you’re a victim of Bain Capital’s downsizing, it’s the ultimate insult for Mitt Romney to come to South Carolina to tell you he feels your pain. Because he caused it,” he said. ‘I have no doubt that Mitt Romney was worried about pink slips — whether he’d have enough of them to hand out.” He cited Holson Burns Group Inc. of Gaffney, S.C., where he said 150 workers who made photo albums lost their jobs. “They looted that company,” Perry said, referring to Bain Capital. Santorum’s message in New Hampshire was the same as it had been in Iowa. “Give us an opportunity to be the conservative alternative,” he said. He sidestepped questions about his proposal to reduce or eliminate Social Security benefits for wealthier beneficiaries, saying efforts by reporters to obtain specifics were “gotcha games.” Even though he runs second in some of the New Hampshire polls, Texas Rep. Ron Paul campaigned lightly in the state. He unveiled a new television ad in South Carolina that took aim at Santorum. It notes the former senator’s votes against right-to-work legislation and in favor of increases in the federal debt ceiling. “Rick Santorum, a record of betrayal, another serial hypocrite who can’t be trusted,” it says. Protesters with Occupy and Paul signs swarmed events in Manchester hosted by Gingrich and Santorum. Outside a sports bar, they pushed toward Santorum as he made his way to his car, surrounded him and at times jostled his children. Police stepped in to get the Santorums to their cars. Gingrich canceled an appearance at his state campaign headquarters after about 40 protesters gathered at its entrance. His spokesman, R.C. Hammond, said the former House speaker’s private security detail had security concerns. ———————— GOP rivals turn Romney’s jobs record against him AP Photo NHCD110, NHCD106, NHCD109 Eds: Corrects that S.C. ads from pro-Gingrich group have not started airing. With AP Photos. By KASIE HUNT and CHARLES BABINGTON Associated Press NASHUA, N.H. (AP) — Mitt Romney’s Republican rivals accused him Monday of exaggerating his successes and coldly laying off thousands of workers while heading a profitable venture capital firm, an effort to turn the presidential front-runner’s biggest asset into a liability. The heightened focus on the firm Bain Capital threatens to slow Romney’s cruise-control campaign because it goes to the heart of his No. 1 appeal to voters: the claim that he knows far more than President Barack Obama about creating jobs. Romney’s takeover-and-restructuring firm “apparently looted the companies, left people unemployed and walked off with millions of dollars,” former House Speaker Newt Gingrich said on NBC’s “Today” show. A group friendly to Gingrich is preparing to air TV ads of laid-off workers denouncing Romney, who interrupted his time at Bain to serve as Massachusetts governor. Texas Gov. Rick Perry joined in. He cited South Carolina companies that Bain bought and downsized, and he practically dared Romney to ask for voters’ support there in the name of easing economic pain. “He caused it,” Perry said in Anderson, S.C. Romney points to thousands of jobs created at companies that Bain bought, invested in or restructured. But he struck a discordant note Monday, just as attention to the Bain jobs history was spiking. Speaking of insurance options before a New Hampshire audience, Romney said, “I like being able to fire people who provide services to me.” He remained favored to win Tuesday’s New Hampshire primary. But his rivals might improve their hopes of halting his momentum in South Carolina’s Jan. 21 primary if they can persuade voters that his jobs legacy is not what he claims. Thanks to millions of dollars from a Las Vegas casino owner who supports Gingrich, TV ads in South Carolina will try to do just that. Like many attack ads they are emotional, one-sided and not subtle. They show angry victims of layoffs from Bain-controlled companies, according to excerpts shown to reporters. “We had to load up the U-Haul because we done lost our home,” a woman says. On the campaign trail, Romney rarely mentions his four years as governor unless asked. But he constantly touts his time in the private sector, asking voters to trust his instincts and experience in creating jobs. The claims rely on Romney’s career at Bain, a Boston-based private equity firm that poured investors’ money, and Bain executives’ expertise, into more than 100 companies in the 1980s and ‘90s. Some of the companies thrived and expanded. Some took on unsustainable debt and went bankrupt. Some became leaner or were broken into various parts, shedding jobs and improving profits. In a recent debate, Romney repeated his claim that the Bain-run companies netted a total increase of 100,000 jobs. Studies by The Associated Press and other news organizations conclude that the claim doesn’t withstand scrutiny. That alone, however, hardly suggests Romney was an unsuccessful business executive. He became wealthy, a hero to many entrepreneurs, and the leader of the much-praised 2002 Winter Olympics. The 100,000 jobs claim comes from activities at only three companies, all of them successes: Staples, Domino’s and Sports Authority. However, it counts many jobs that were created after Romney left Bain in 1999. And it ignores job losses at many other firms that Bain invested in or took over. The Wall Street Journal, which examined 77 businesses that Bain invested in during Romney’s tenure, concluded Monday that the record is mixed. Twenty-two percent of the companies closed down or filed for bankruptcy reorganization within eight years, “sometimes with substantial job losses,” the Journal reported. “Bain produced stellar returns for its investors,” the paper reported. But 70 percent of the profits came from 10 deals. A separate AP analysis found that at least 4,000 workers lost their jobs at 45 companies bought by Bain between 1984 and 1994, according to company reports, news releases and news coverage. The tally probably is higher, because it does not include other jobs lost in bankruptcies and other store and factory closings. Like any venture capital company, Bain’s main purpose was to generate profits for investors, not to create jobs. So it is easy for political campaigns to find dazzling success stories and heartbreaking plant closures in the company’s history. A new 28-minute film, “King of Bain,” portrays Romney as a profit-driven predator. A pro-Gingrich super PAC bought the film and plans to use excerpts for the attack ads in South Carolina. The group says it will post the entire film online. Gingrich’s struggling campaign has been helped by $5 million given to the super PAC by casino owner Sheldon Adelson. Obama’s campaign aides have long considered the Bain record to be Romney’s weakest spot, more damaging than his much-discussed flips on abortion and other issues. Romney told reporters Monday in New Hampshire that the attacks from Gingrich and Perry surprised him. “Free enterprise will be on trial” in the 2012 election, Romney said. “I thought it was going to come from the president, from the Democrats, from the left. But instead it’s coming from Speaker Gingrich and apparently others, and that’s just part of the process. I’m not worried about that.” Romney’s record at Bain has both helped and hurt his political career for nearly two decades. Bain was a pioneer in the often lucrative practice of “leveraged buyouts,” which involve heavy borrowing against the assets of a just-purchased company, and sometimes aggressive restructuring. Romney’s role there is generally lauded in corporate circles. But in his unsuccessful 1994 Senate bid, Democrats ran ads featuring a worker who lost his job after Bain bought and restructured American Pad & Paper. According to The Wall Street Journal, the deal generated $102 million in investment gains. But Ampad filed for bankruptcy protection in 2000. ——— Babington reported from Washington. Associated Press writers Stephen Braun in Washington and Brian Bakst in South Carolina contributed to this report.  Press writers Brian Bakst, Thomas Beaumont and Jim Davenport in South Carolina and Holly Ramer, Shannon McCaffrey, Philip Elliott and Beth Fouhy in New Hampshire and Stacy A. Anderson in Washington contributed to this report. Espo reported from Washington. SOURCE

Victory! Grand Canyon Protected from New Uranium Mining!

Thank Secretary Salazar! Dear Reader, Victory at the Grand Canyon! Thanks to supporters like you, Department of the Interior Secretary Ken Salazar has decided to continue the ban on new uranium mining claims on more than one million acres of public lands surrounding Grand Canyon National Park! This tremendously important decision will not only preserve the integrity and incredible views surrounding the park, but also prevent uranium mining pollution from contaminating the Colorado River, which supplies drinking water to 25 million people.  Take Action: Show your appreciation for Secretary Salazar’s decision by thanking him for continuing the ban on new uranium mining claims near the Grand Canyon. Victories like this could not happen without the continued support from people like you. It's up to all of us to ensure that national treasures like the Grand Canyon are protected for future generations. Thank you for helping make this victory possible and thank you for taking the time to let Secretary Salazar know that his action is greatly appreciated. Sincerely, David Nimkin Sr. Regional Director, Southwest Share this on Facebook    Share this on Twitter This message was sent to drpeatfield@yahoo.com by the National Parks Conservation Association. E-mail us at TakeAction@npca.org, write to us at 777 6th Street, NW, Suite 700, Washington, DC 20001, or call us at 800.NAT.PARK (800.628.7275). Can't see this message? View it on the NPCA Website. NPCA | 777 6th Street, NW | Suite 700 | Washington, DC 20001 | 800.NAT.PARK | npca@npca.org