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tv   The Willis Report  FOX Business  March 30, 2014 4:00am-5:01am EDT

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>> you ready, jeff? >> i'm ready. >> all right. >> oh, dear! oh, no! whoa. stay tuned for "across america" gerri: hello, everybody, i'm gerri willis. right now on "the willis report," a warning to travelers as crime ring is busted at airport. >> you think that people would work here get screened, background checks and everything. so you think that they're good people. gerri: new information how to protect yourself. also a bank makes a big mistake and now a teen faces prosecution. whose side are you on? we'll crack open the case. they have been likened to termites eating away at your retirement. time to tamp out those pesky chiefs thieves. we're watching out for you on "the willis report."
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gerri: we begin tonight with finding the perfect bargain. markets think we'll fall for anything and you want the best deal when you shop but how do you know you're getting, competenting a good deal with all the creative pricing and sales gimmicks out there. are you waiting for sales that are not bargains? we have bruce terkel a marketing expert. markets out there, just like you my friend. you think we'll fall for anything. what do you think consumers really want? do they want every day low pricing or want a pricing on sales day? >> we see enough situation that prove they don't want every day low pricing. they want to feel like they're getting something special. they feel like they're smarter, done more research, have more information. nobody wants to feel like a rube. nobody wants to feel like a patsy. they all want to feel like they scored. thrill of the hunt is what they're looking for. gerri: i see you cite as a
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example. jcpenney. >> absolutely. gerri: those guys had big sales and bargains. they got rid of it and every day low pricing and things didn't go so well. >> that somebody say are right. people were excited about what they knew. they had inside track. saved the flyers. remember that customer had been trained to look for something special. all of sudden jcpenney came out we'll give you everyday low pricing that suggested one of two things. either we've been ripping you off all along, or you've been wasting your time. you're not as smart as you thought you were. gerri: right. look i think there was a lot of stuff going on with jcpenney. it wasn't just the change in pricing. it was also what they were selling that i think was so offensive to so many, so many consumers out there. the stores were not in great shape. lots of issues going on. >> right. gerri: bruce, let me say this about that i think there is company out there called walmart that loves everyday low pricing and they made it work for them. >> yes, of course. they have. but remember, walmart is one
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company, one enormous company that is winning the race of low prices. because really if you stop and think about it, the low price leader means you're racing to the bottom. the best you can ultimately do is give away products for nothing. you have to have economies of scale that walmart has. gerri: they control it. >> right. they control the entire vertical drib shun chain. gerri: smart thing. and you know, their bottom line shows that kind of effort. i want to share something with you and the viewers here that drives me nut sow and is what happens when you wait for the best sale. so this is the price evolution of a sweater. let me show you. suggested retail price of a sweater christmastime, 50 bucks, right? you see that. that is pretty normal. first markdown price. maybe you wait for that. $44.99. the final discount, oh, my god, getting such a great deal, $21.99. but, hello, look at what the retailer paid pour this sweater, i'm not telling you that they
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only paid $14.50 for that sweater. the average retail price that they charged when you average all those numbers from the previous screen together, 28 bucks. so, you think you're getting a great deal. they're making a ton of dough. these sales make no sense when you really examine them. >> the sales make sense for a very different reason. what happens here is something called, progressive justification. it is a simply told you the price, you wouldn't pay it. but for example, say a refrigerator -- gerri: wait, wait. this is marketing gimmickry for what these guys do to the prices. it is progressive justification. >> gimmickry is one word or you can say it is arithmetic. either way depends how you look at it. take a product or refrigerator,hundred bucks. add in $60 of delivery. add in tax, 7 and 9%. gerri: on and on it goes. >> exactly, all of sudden it is 825 bucks or so. but if they tell you the
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refrigerator is $699. you hear six, that sound like five, so really not that much. the others things add on, all of sudden you convinced yourself you want the product, then those other add-ons don't matter that much. works the other way as well. >> you know, i think, let me just posit this and see what you say. i don't think consumers are that stupid. i really don't. i think maybe they don't keep track of everything you guys are doing out there. they're not watching over your shoulder every day. they're not making sure they're getting ripped off. say? >> well i don't agree with the thing about getting ripped off either. remember, you said what the store paid wholesale. first of all the consumer doesn't have access to that product at that price, at that time. second of all you have all the costs of store to get consumer there to service them, accept returns. you have to figure all of that into your pricing. so a very smart consumer who pays attention and most importantly is concerned about urgency, can get great prices.
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but if you have to have it now, which is the great secret of the fashion world, oh look, lapels are wide. lapels are thin. gerri: okay. >> then if you have to have it now, if you want to look in latest look and latest thing you will pay too much. gerri: all right. sales mavens out there, watch out. jeff green will join us. he is a retail consultant. jeff, have you had a chance to listen to any of this nonsense you're talking about. >> i listened to whole thing. gerri: i don't think consumers are stupid but i may be alone on this panel. >> consumers are not stupid but they certainly want a bargain. gerri: yes. >> people like macy's kept us definitely looking for value in shopping for value, and like, your, your last example, we think we're getting a deal but yet it is quite a bit above wholesale. gerri: yeah. i think that the marketers are betting on the fact that we'll fall for anything. what is your advice to consumers? as you look at this, jeff, you
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know, bruce just said, you have to be patient. you can't be obsessed with getting the latest and greatest and the most edgy, stylish thing. what would you tell people? you're on the inside. you know what these companies are doing. both of you. go right ahead. >> well, basically i would say that consumers ought to be patient, but that kind of goes against our grains as americans. we want, what we want, now. and i think that's the big issue. gerri: and bruce, in our quest to find the lowest prices ever, tell us about the internet, isn't it? >> well, of course because the internet has democratized pricing and made all pricing information available. once again, you need to take your time. you need to do your reserve. you need to realize functionally the products are interchangeable. so you have to look for the best deal, based on what will fulfill your needs at the right price. but i still don't think it's a matter of consumers being stupid. not at all. gerri: oh good. >> i think it is a matters of
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consumers being emotional. dale carnegie, said it, an consumer is emotional creature and that is how they respond. gerri: consumers are emotional. jeff, last word. jeff, can you hear me? i don't think jeff can hear me? he had problems with us. thanks for both of you coming on saying such smart things. jeff and bruce, thank you so much. we want to know what you think, here is our question tonight. do you prefer sales or everyday low prices. log on to vote on the right-hand side of the screen. i will share the results at the end of tonight's show. we have some auto updates i want to tell you about right now. the latest on gm's recall. the trade journal, automotive news, is telling what general motors won't. it identified nearly all the fatal crashes linked to that is anything switch recall. of the crashes the paper identified, eight of 12 deaths occurred before gm allegedly fixed the problem switch in 2006. but as you know there was no recall to fix the switch. fixes were made on a
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case-by-case basis. in other words, if the company had told consumers at least four deaths could have been avoided. tragic news. that new-found abundance of caution could behind gm's latest headlines. the company he willing dealers to stop selling some 2013 and 2014 chevy cruze cars. no one at gm is saying why. dealers say stop sale order are routine and are to fix a major safety problem. toyota is getting back into the recall game too. the auto maker is selling or recalling that is, 119,000 avalon sedans from the 2003 and 2004 model years because the airbagses can deploy anytime. circuits within the airbag module could be damaged if exposed to other electrical components in the car. only the minor, one minor injury has been reported. on we go to usps the u.s. postal service is in the red. that is not stopping its workers
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from spending taxpayer green. a report from the "washington examiner" exposing postal service employees using their government credit cards to gamble and pay their bills. with more on this, david williams, the president of taxpayers protection alliance. this is, i have to say a really shocking story. so you wonder why the postal service is having so many financial problems? well, here's your answer. tell us about what's going on here and what these employees have been doing. >> well, this is absolutely amazing and you're right, the postal service in the red, not just a little bit in the red, a lot in the red. and now we saw this inspector general's report talking about people using money, taxpayer money to gamble. and in one case, someone withdrew $32,000 from a credit card to gamble at a casino. $32,000. first the employee said, well, i really don't know why it happened. then she said, oh, i got it confused with my other credit card. gerri: oh.
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that happens all the time. the company credit card, my credit card, i can't tell them apart. they're using them to pay their even bills. they're going bowling on the taxpayer dime. i mean, it's funny but also tragic because it is our money. >> it's funny and it's sad. we've seen a postmaster general in north carolina, she padded her travel expenses by about $9500. and we see it for personal use. we see $1,000 in just walking around money. literally this is just cash advance they got, a thousand dollars and they bought personal stuff. here's the problem is, there are two levels of a problem here. first is upper management. where were the red flags? if someone is take $32,000 out of an atm or getting that money in cash advance, where are the red flags? we have online banking. we have technology to be able to tell us when these things are happening. why wasn't the usps alerted to this before the 32,000 was taken out? gerri: nobody is watching.
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doesn't it go to management? doesn't it go to a lack of management and a lack of controls? >> and if you notice, in this story, they talk about the employee's paying back some of the money. some were suspended. shifted to other jobs. gerri: i got a great example like that. one employee spent $45,000 of the government's money. she retired. she repaid the theft but what are chances woman is getting a big fat government pension. >> what about the managers? what about the managers that let this happen? and what is ironic, that credit cards were brought into the federal government to streamline the procurement system so we wouldn't have a 600-dollar toilet seat or $400 hammer. credit cards were suppose to solve the problem, not be the problem. i have not read about any managers taking responsibility for them paying back the money but there has to be multiple levels of responsibility here. gerri: so, people aren't fired. they don't lose their jobs. they don't lose their pensions. hmmm. this any way to run the federal
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government which we're paying for? and should the usps bailed out by taxpayers, david? what do you say? >> well, we are going to bay them out, let's be honest. first class mail, less and less of first class mail is going out. guess what, people using this crazy thing called email. we're not seeing a lot of first class mail. they're really struggling. they're making good decisions. if you can't stop the easy stuff, if you can't stop someone from withdrawing $32,000 off of a credit card how are you going to address the tougher issues inside the postal service? gerri: that's a great question. we have none of the answers. we just have a lot of outrage tonight. unbelievable. david, thanks for coming on the show. great to see you. have a great weekend. >> thank you. gerri: well we're just getting started here. we have got more to come, including an answer to the question how do you do that? in the wake after luggage theft bust, at lax, los angeles's airport we'll help you keep your suitcase and everything in it
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safe. if you took out home equity lines of credit to get out of the financial crisis, your time may be up. a deadline you need to know about, that's next. ♪
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learn more from the american heart assocation at gerri: if you took out home equity lines of credit during president george w. bush's second term, that line may be coming due. what should you do now. we have the executive vice president of right now. great to see you. these home equity loans are reaching end of draw period and they will reset. what will happen to so many americans out there. >> when these home equity lines reset, gerri, one of two things will happen. either there will be balloon payment due. the borrower has to pay total balance or loans will reset at current market rates. which mines that for a lot of people, their monthly payments will go up by 3 or $400. gerri: ouch. do you think people will be shocked. do they know it is coming? >> i think a home equity line of credit unfortunately goes on back burner until the reset
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happens. i think there will be sticker shock or payment shock. really what, anybody with a home equity line need to do right now, is to get in touch with their lender. find out what the terms really, when this will happen and see what steps they can take to avoid problems. gerri: does this have broader implication? >> a lot of people could be in the situation. will it hurt the economy. >> there are some people that are concerned that this could create a new wave of foreclosures. i tend not to think it is going to be that dramatic. but there are going to be certain number of people who default on the loans, just won't be able to bring them up to current status. gerri: wow. so contact your lender. make sure understand terms and what is going on so you can be prepared because last thing you want to do find out you owe a ton of dough to pay it right now. rick, talk a little bit what is going on more broadly in the housing market. we talk ad lot this week how professional investors appear to be getting out of the market. they're just not that interested. why is that? >> well, home prices are gone up and for a lot of investors, who
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are looking to buy foreclosed properties and convert them into rentals. there is no inventory left to buy. we are seeing activity, at auction dot-com. we sell a lost properties to the institutional investors but at love them are buying short sales right now. a lot are buying propers at foreclosure actions and they moved into secondary markets where home prices are less expensive and they can get return they need on rentals. gerri: we're starting to see that the margins they can take out of the market are not as big as they once were. you would think this would be opportunity for individual homebuyers, maybe even first-time homebuyers to get into the market. i know a lot of people out there think that is not going to happen. >> well, unfortunately i'm one of those people, gerri. i think there is less competition for first-time homebuyers as investors back off a little bit, but i don't think that the main reason first-time home buyers aren't buying. think that 25 to 35-year-old age group is having a hard time finding good of paying jobs. a lot are burden with enormous
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amount of student loan debt. a lot of them simply don't qualify for the new tougher lending standard out there and won't qualify for a loan. so, we're going to continue to see lower household formation for next couple of years and a higher percentage of those household that is usual will be rental households as opposed to homebuyers. gerri: rick, i don't think there isn't anything this country that couldn't be solved by a better economy. >> house something certainly one of those, gerri. gerri: rick, thanks for coming on, great to see you. thanks for being on the show tonight. have a good weekend. >> you too. gerri: later in the show, should a teenage boy who spent house thousands dollars he found in his bank account have to give the money back? next, workers at lax busted for stealing travelers luggage. how can you keep your belongings safe when you fly? stay with us. ♪
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up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.
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all right, i know this isn't any fun to talk about, but we should. ok, so who's going to do what? i'll pack the dead batteries. great. girl: i'll only put what i don't need into a duffle bag. perfect. that's totally unhelpful. no problem. meanwhile, i will try to comfort everyone by speaking in a calm voice. and i'll try to get the generator going without any gas. oh, let's not forget the cell phones, which probably won't work. right. and who is going to handle supplies? i can forget to do a list for us. thanks, pal. well, i think we couldn't be any less prepared. i'm proud of you guys. announcer: talk to your kids about who to call, where to meet, what to pack. visit for tips and information.
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gerri: getting caught red-handed. how a ring of baggage handlers stole heeps of travelers
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gerri: what could be the biggest baggage theft scandal to ever rock lax, look at these pictures. we have actual video of these guys ripping off consumers. these are baggage handlers who are taking stuff, repeatedly stealing items from checked bags that is, amounting to thousands of dollars. police alleged heist could have gone on for several months before anybody could have caught on. look at this? how do you make sure your luggage is safe on your next flight? joining us mark murphy, ceo of travel pulse,.com.
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so nice to have you here. really? >> yeah, a lot of shenanigans going on at lax. gerri: so how are they doing this. >> you know what? they colluded is what we think. early reports so far they have 25 people that they rounded up. they put under cover police in there. they saw that -- gerri: pictures. >> secure areas. they were documenting what they were doing and were in cahoots. the guys would turn around. take whatever they could get and go out on craig's list and e pay as far as we can tell and sell them to make some money. gerri: so you would find your lou very vuitton bag on craig's list maybe? >> you know, what don't check a louis vuitton bag, right? gerri: wait a minute. i will get you to advice in second. what do you think they got? what were they looking for? what is the most valuable thing. >> people put jewelry in their bags which i don't get. electronics they're putting in. other high-end items. anything that is expensive take in the carry-on bag, unless a liquid that you can't bring in
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on you have to check. doesn't make any sense to check those things but they were doing that. gerri: this went on for months? >> went on for months. gerri: how is it we don't figure that out? people are complaining. consumers are up in arms. >> millions and millions of bags flow through lax every year. tens of millions of bags. you're not talking about tens of millions of bags getting infiltrated. you're talking about a handful. that is really the challenge. in this case there were so many people up to no good. they were able to get their arms around it. i'm sure it happens all over the place. gerri: absolutely. we've even got a list of airports where this is likely to happen. number one airport is miami. >> and then jfk and lax is the top three. so, when you look at those, when you look at those airports, yeah, you got a likelihood something bad might happen with your luggage. gerri: hartsfield which is atlanta and las vegas. top four, they are just big, big, big. they're processing -- >> law of numbers. sometimes you will get the bad apples that that big batch. that's a challenge. gerri: here is what i want to
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know. what do i do? how do i protect myself? what are airlines supposed to do? >> you have the carriage contract. so, what you have to do is you have to look at that that is basically what your ticket says. gerri: carriage contract. >> contract of carriage. which basically says what is the obligations of airlines should they lose your luggage. not very much. what american airlines will tell you we rent reimburse you for any electronics, jewelry, nothing that is excluded. what you have to make sure you have is get travel insurance. but also make sure your homeowners -- gerri: travel insurance? i don't want to pay on top of my ticket. why don't i carry stuff that is valuable. >> i would that. never check anything valuable. cheap bag is 500 bucks. that is more than reimbursement, $400 per bag that the airlines will commit to giving you. you're not talking about much money coming back to you if you lose it. so homeowners insurance. you own a home? have homeowner's insurance. have a key. make sure they cover something like that. that way you avoid extra cost of
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travel insurance. gerri: unbelievable. these people get away with murder. thefts on rise at lax, up 37% in 2013. great stuff, mark murphy. good to see you. thanks for coming on the show. wow, don't go to lax. coming up we're looking out for you and your money with more evidence of an uneven playing filed. and next, its illegal. a teenager gets thousand of dollars accidentally deposited into his accounts and spends it all before the bank find out. so whose money is it anyway? ♪
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♪ ♪ ♪
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♪ ♪ our planet together our hands can save it connect your hands with ours and we can save our land, our water, our future. join us at the nature conservancy protecting nature, preserving life >> imagine $30,000 magically appears in your bank account and you're not playing mow moply.
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a georgia teenager did. and after going on the spending spree of a life time, the bank now says it made a mistake, oop. is that legal and what you should do if the bank does this to you? joining me now, and fox news legal and list. >> you have a 16-year-old kid who said i came into an inheritance lumped into his account and goes and spends it. he's a 16-year-old kid, that's what a 16-year-old kid will do. he thinks he got an inheritance and spending it. the bank says i want the money back, i don't think so. >> when something is too good to be true, it usually is. there's a word for this called step by conversion. in other words -- >> what does that mean? >> when you get something that doesn't belong to you -- >> he's a kid and didn't know. >> $31,000? >> $31,000, what he needs is a
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get out of jail free card. that's my view. it's not a crime. >> why isn't it is crime? >> it is a crime. >> errors omissions with bank insurance. the bank will be insured. so they're going to come after a 16-year-old kid for therapist take. he didn't say give me $31,000. they made the mistake. >> whenever you get money that doesn't belong to you -- >> maybe if you're 35. >> if you get an overpayment from a bank, a pension, anywhere, you have to give it back. >> so he's not even 18. he's not an adult. >> a 10-year-old knows when they get another kid's toy to give it back. >> i'm the proud owner of a 16-year-old daughter myself pan if i would get this money, i think she would think, there's a payer there. >> the kid is a knucklehead and i have too my own. laughter >> however, it's obvious when you get that kind of money it doesn't belong to you and the law requires you give it back.
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>> the idea, the bank going, it's your fault, we made in mistake. pay every penny back. >> is there a precedent on this? >> yes, overpayment, the law is clear, you're supposedded to givsupposed to giveit back. the bank would be on the hook. >> the last time banks made mistakeses we bailed themselves out. >> that's correct. but the truth of the matter -- [laughter] >> when you get a statement from the back, if it's wrong you get 60 days to correct it. >> why didn't the kid say to mom and dad, $30,000 in my accountant they may have said, oh, my gosh but the responsibility is on the bank and it could have been old uncle harold had died and no one told the kid. >> the bottom line is the kid did not do anything wrong in the sense it was handed to him but he did something wrong when he
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hand had it. lawfulfully it was given to him. >> lawfulfully, correct. personal story here and oh, by the way the teenager spend $25,000 like that. >> when there's a will, there's a way. >> this happened to me many, many years ago, $3,000 pops up in my account, what do i do? ago to the bank add say, i don't think this money is mine. >> that's what is your legally obligation is. it's not funny but it is your legal obligation. i'm sorry to say but it is true. >> 16-year-old, come on. >> i'm torn. i have to say. he's not of age. >> exactly. if this were a full scale adult, 35 or something, but a kid conscience seeing that kind of money, it's prom season, i can buy the biggest corsage or car. >> i would be disappointed in my kids if they just did that. >> that's all you would be disappointed for? [laughter] >> that's how my mom disciplined
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me. >> this is too much. >> thanks for comin on. >> thank you. >> you were perfectly wonderful. >> thank you. >> and some sad news now for consumers who love gadgets, your local brookstone store may be going away. the store is reportedly getting ready to file bankruptcy. brookstone is well-known to many of you as known selling strange gadgets. it's a great place to go to get a gift for somebody who has everyone and we're looking at what we think are the whackiest gs. number five is the pillow remote control, pest for the couch potato in your life and newspaper four, the stamina elyptical trainer and now you can peda pedal aand number thre, stretching multiple fan, the pitch is 98% fan and great for goofing off in the office. number two, the wireless control spy tank, perfect for your little one considering a career with the nsa and our perm favorite, the happy force
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because there's nothing more ne that's having your fork vibrating to tell you when to stop eating. the vibrating gizmos are too numerous. i like their stuff and this is covering up my ipad here, tweet me at jerrylewisfbn. when we come back, does your north carolina owfounding oweowy
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>> are activists investors, are they cheating the wall street journal reporting their leaking plants to buddies on wall street before disclosing the mistake they will take in a stock.
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here is garry of caulbaum. what do you make of this move? >> well, look, these activists investors that are doing this, it's insider trader for me, enimage callahan shoulunethical. when there's material information and they're acting, that's bad news. >> these folks are more and more important, some $93 million by activists, they're becoming a real player in the martial here happened from what i understand they're leaking this information to bring people over to their side. they're short handwriting a stock, they want more people to feel the way they do. what's wrong with that? >> because if somebody is buying up the stock before the material is out to the public, that's the definition of insider trading. look, there's a lot of great activists out there. i can mention a nelson p involved with restaurants and
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food companies and who has done a fabulous job. you had carl icahn gu trying tot something out of apple. what you should look for is anybody acts on somebody where the news is not out there and you're benefiting just a few. >> well, here's is my problem with it from a consumer's point of view, the buyer of stocks, somebody who wants to retire some day on the money i make from stocks, this information never goes to consumers. it's linked to buddies on wall street, the heavy fund managers scratching the back and that's the problem i have with it. >> well, that's why they call it inside information and therein lies the big problem. what the regulators look at, do the malignancie masses have a fd when you can buy a stock and a week later it's known somebody took an 8% position and it goes up 10% because of that news,
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that person is benefiting the public doesn't make a dime off it. so the regulators are out to protect the public versus the bad guys. the good news is i don't think -- at least i don't think it's rampant but if they're looking at it, they're definitely looking at something. >> here are the facts. announcements are activists investors the stocks rise 2%. barrish, the stocks fall 3.8%. so you see the stocks move on this stuff but here's what's happened. the information that's moving the stock might be a report, might be some additional data, might be details that weren't previously public. that information given to people, a hands full of folks in the marketplace, they trade on that, ahead of the news breaking full-time to everybody and they make a ton of dough and you and i are left sitting on our hands wondering what the heck happened. >> that's the level playing field.
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martha stewart went to jail for it. many with fcc capitol want to jail so the regulators are on to the game. i'm a big they're believer. i want the public to have a playing field with the insiders out there. unfortunately, no matter what on wall street with the greed, there's plenty of bad guys. hopefully they find them out and get rid of this. >> garry, thanks for coming on. >> you too, thank you. >> time now for a look at stories you're clicking on. as we mentioned earlier, general motors is taking 202013 and 2014 cruise cars off the road and won't say why. they say this is not an unusual move to fix a small problem but it comes a gm deals with a recall of 1.5 million older cars to fix an ignition switch problem. shaking off another two day sludge, traders arslump.
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the sentiments slipping in march as members were less likely to buy cars and homes because of rising interest rates because they're more optimistic about the economy saying they expect their finances to improve in the year ahead. that is the highest proportions since the recession ended in 2009. and the bad news, it continues for blackberry which reported a huge drop this profits as the company looks to get out of the smart phone business and into safety where. john chen is trying to turn around the company after last year's failed launch. those are some of the hot stories on forget putting your money into a retirement account, your north carolina four 401k may owe you money.
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>> you systems emerging over employees being overcharged. could your 401(k)
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>> breaking news, general motors is recalling at least 824,000 more vehicles because of those reportedly faulty ignition switches. the recall is being expanded to include model years twiligh 2000 is 1, pontiac, g5 within solstus and sky. more versions dating back to
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tweet wer2003.we'll keep be upds story. from cars to retirement, a group of employees are now suing a company called novant health saying the company overcharged them by millions of dollars. it was costly 401(k) investments and overpaying providers. here with more, ricedelman. what happened here. >> well, this happened in many, many other departments. compani. they were giving their employees expensive retail mutual funds, far more expensive than others in the marketplace and the employees recognized this and sued their employer and said you need to give us the money back that we paid in excessive fees? we're seeing this over and over. great west paid by retirement mans, 8.6 million. this happens over a long period
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of time and frankly consumers look at the fees they're being charged and don't realize how big they are. they think 1% is not very much money, but if you have that money over 30 years, it's a lot of dough. >> according to the department of labor, that 1% fee per year for your working career can cut your retirement balance by 28%. >> whoa! >> we're talking hundreds of thousands of dollars per employee, and the wall street machine has gotten away with this no decades and this is c so many lawsuits are flying and worker have won to my knowledge every lawsuit so far. >> wow, that's impressive. so what people don't realize is the huge pot of money out there. so the money in worker retirement accounts across the country, $5 trillion. you know, think about this, you take just a little bit of that and it adds up to a lot.
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>> it sure does and the worst part most employees don't realize they're being charged any fees at all. aerp did a study and 65% of workers veered said that they thought they weren't paying any fees. that's because the fees don't show up on your statement every quarter. so if a fee doesn't show up on your statement, the people figure there must not be a pee. maybe my boss is paying. that's not what is happening. >> it's a tragedy. tell us how to figure out what the fees are. >> it's simple. you can just ask your employer. ask your hr department or planned provider, give me a list of the vest investments and shoe the fee. it's easy to find out. the fee should be under 1% per year. many would argue it should be under one half of under 1% per area. if your funds is chargings is% or 1.5% a area, go to your boss and complain. your boss has the incentive to
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cooperate. >> can you get anywhere doing that? >> yes, because my cases, employers don't even know this is happening. your boss is not the perpetrator here. your boss is as clueless as you are. they just want to hire a company, like a mutual funds firm or somebody else, have them provide the 401(k) and go about your business. the boss doesn't know and the boss will be equally shocked. they don't realize they have a fiduciary position to fix it. they'll be happy to fix it. >> whose responsibility is it at the end of the day to make sure we're getting a fair deal? >> at the regulatory level, the department of labor. at the corporate level, it's the hr department, general council and chief executive officer and individual level, you and me. it's our money. >> ric, thank you for bringing this information, taking this to school and what's an important
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consumer right and obligation. thank you for being on the show. appreciate your time. >> my pleasure. >> thank you. >> and we'll be right back with my two cents more and the answer to our question of the day, do you prefer sales or everyday low prices? day with us. up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.
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[ vet 1 ] i'm a returning veteran looking for advice... [ vet 2 ] to start a career... [ vet 3 ] write a resume... [ vet 4 ] translate my skills... [ vet 5 ] and make my military experience... [ vet 6 ] a real asset.
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[ alex ] acp advisornet has built a non-profit online community to connect our veterans with business professionals, like you and me. so why not share your valuable experience? please go to acp advisornet. because their service deserves our service. ♪ gerri: a new survey shows that consumers are likely to become prey to pricing tricks. here is what you are posting on my facebook page. david everyday prices. the sales can sometimes mislead you. it is all safe at at the consumer seems to expect it. interesting. and we also assess on 20% said sales and 80% said everyday low pricing.
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be sure to log onto for online question every weekday. here are some of your e-mails. dj from texas right but it seems to me if we had personal personnel, it seems that obama would use the same personnel around the united states. and jean says this about the government-backed flood insurance program. what they should do it at home is destroyed in a flood, it may be paid for by insurance, but only one. it should not be rebuilt or it should be self-insured by the owner not the taxpayer. it makes sense to me. and david from florida agrees. i don't think people that have chosen to live in a floodplain should be asking for the rest of us to help cover the cost. flood insurance program is and has been for a long time just like any insurance program. it ought to pay for itself. and they also want to change the program so you can only collect
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once. sending e-mail. go to and finally, we talked a lot about investment these on this program. i know you have heard me. we have rick adelman and i'm on fire about this. if you do pay a more for your retirement community to take action. just 1% in fees ca need tens of hundreds of thousands of different so a long time. esther plan administrator for the fee statement heard make sure their 1% or less. that's all they need to make. after all the companies are administrating $5 trillion worth of savings. keep the best for yourself. because you need it. that is my "two cents more". a coming up on monday, our panel rick scott on monday where the law goes next and the truth behind the numbers.
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that's it for tonight's "willis report." have a greati ♪ ♪ ♪ neil: time to kiss another saudi prince. welcome, everyone, i am neil cavuto. and you bet president obama will be paying his respects to saudi arabia. those princes arcane, but we certainly do need their oil. the part where we turn our back on a trusted u.s. ally and they constantly switch sides after they were toppled. the


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