Milwaukee Biz Blog

I am the co-founder and president of the nonprofit Consumer Task Force For Automotive Issues and the independent consumer spokesperson for Educators Credit Union.

I am also the author of "Don't Get Taken Every Time," the book of record on the retail American auto industry.

For over 25 years, I have been a national advocate for consumers in their continuing battle to make wise decisions and conserve money at traditional car dealerships. 

Why am I writing this column? The Wisconsin Automobile Dealer Association is doing its best to destroy the one alternative Racine consumers have when it comes to buying a used vehicle: buying a used vehicle from a credit union rather than from a traditional automobile dealership.

Educators Credit Union established their auto and lease program six-plus years ago. It was and is a first in the nation: a car-buying program literally housed in a credit union, and more importantly, a car-buying program based on credit union principles. For six-plus years, the program has operated openly and with the tacit approval of all regulating bodies.

From day one, the Educators used-car program has been a dramatic success: over 3,500 members have purchased vehicles without the usual pressure and confusion associated with traditional car seller. The members have also saved tens of thousands of dollars. 

Traditional car dealers don't like this one bit. They want that money back - as profit for them.

Precisely because of Educators' success as a used-vehicle seller, the dealers and the dealer association of Wisconsin want the credit union program closed down.

To that end, they have filed a complaint with state authorities. And their complaint may succeed. You may lose this extraordinary alternative as a used-car source.

I believe the Educators Auto & Lease program is the clearest example in the country of how credit unions can (and most definitely should) help their members save money and make wise decisions when it comes to acquiring vehicles and vehicle financing.  

Here's the difference in a nutshell between the Educators' process and the traditional process:

• The objective of the Educators' program is to sell and finance to each person at the lowest possible price, regardless of the consumers' skills at negotiating.
• The objective of the traditional sellers is to maximize their profit on each consumer, regardless of the consequences to the consumer's pocketbook. Negotiating skills - even at "fixed price" dealerships - are needed at every turn. At dealerships, the principle of Caveat emptor, let the buyer beware, still reigns. Customers are "worked" (that's the dealership phrase) for higher profits on everything, and mourn your pocketbook if you let your guard down for an instant.
• The Educators' selling model, because of its reliance on credit union ethics, does not "work" members to ensure a larger profit. No one needs negotiating skills when they buy and/or finance at the credit union
• The difference in the two systems is as different as the proverbial difference in night and day.

And the difference makes a huge, huge impact on the consumers' pocketbook. Because many consumers are forced or tricked into buying and financing at some traditional dealerships, the consumers' money flies out the window - and into the dealers' pockets.

Can we prove that? Yes. Virtually every day, an  Educators member refinances a dealer's car loan at the credit union and that member is handed back on average a thousand dollars in excess dealer finance charges. Does anybody reading this work hard for a thousand dollars? At times, members are handed back $6,000 or more in excess dealer finance charges.

And we've only been talking about excess finance charges, not excess profit on the vehicles themselves.

If Educators Credit union is forced to close down their groundbreaking used-car operation, only one group of people will benefit. And believe me, you aren't one of those people, unless you're one of those dealers.

Consumers shouldn't put up with this. If you are an Educators Credit Union member, you know the ethical grounding of that credit union. If you've bought or financed a vehicle at a traditional dealership, you've felt the pressure and confusion that rules many dealerships.

Do you want to lose the right to choose between these two selling systems? If you don't, get involved in this issue now. Additional information is available at www.ecu.com.

Remar Sutton is president and co-founder of the non-Profit Consumer Task Force For Automotive Issues, a consumer advocate, and the author of five books, including "Don't Get Taken Every Time," a detailed looked at the inner working of automobile dealerships. His articles on consumer issues have appeared in thousands of publications, and he has regularly appeared as an auto expert on such shows as "Dateline NBC," "Good Morning America," "20-20," "60 Minutes," "All Things Considered," the "TODAY Show" and CNN.

All this week, we're celebrating National Tourism Week with the theme "Discovering Great American traditions." Certainly the Milwaukee area has more than its fair share of traditions from the State Fair and the Milwaukee Mile to Summerfest, the Brewers and Bucks and local companies such as Harley-Davidson and Usinger's Famous Sausage.

We also use National Tourism Week as the time to hold the Visit Milwaukee annual luncheon meeting report on the "State of Tourism" in the Milwaukee area (on Wednesday).

Let's take a quick look at the numbers for 2007. Total traveler expenditures: $2.579 billion (includes four counties of Milwaukee, Waukesha, Ozaukee and Washington). This is up slightly from the $2.578 billion recorded in 2006. Tourism employment increased from 64,020 jobs in 2006 to 64,854 in 2007. Tourism contributed $410 million in local and state taxes, down slightly from the previous year's total of $415 million.

The story behind the numbers is that traveler expenditures remained strong despite higher fuel prices and economic uncertainty. These challenges aren't likely to go away anytime soon. Looking ahead, we have several reasons to be optimistic about the future prospects of this industry, among them:

• Milwaukee remains a value destination. For cash-strapped consumers, Milwaukee when compared with other urban destinations offers travelers value in "core" expenditures such as lodging, food and entertainment.
• We're not resting on our laurels. The community continues to evolve and invest in new tourism amenities. From recent additions such as Discovery World to coming attractions such as the Harley-Davidson Museum, the Potawatomi Bingo Casino expansion and the fun bronze Fonz project, Milwaukee will soon provide travelers with even more reasons to visit.
• Continued promotion of our tourism assets, including sports, arts and culture, urban outdoors and culinary.
• Collaborating with the Milwaukee 7, the Cultural Alliance of Greater Milwaukee and Film Wisconsin (both housed in the VISIT Milwaukee offices) and other organizations, we're working to better leverage our region as a place to live, work, play and visit. And this includes developing strategies to promote our fresh water asset – Lake Michigan.

All of this is not without its challenges. When courting large convention groups we're still challenged by image issues of the past when smokestacks dotted our skyline. We must continue to expose people to "new" Milwaukee and our warm brand of hospitality to secure more visitors, both convention and leisure travelers, into the city. The more the business community works together to brand the region the more successful we are going to be in changing the image of the Milwaukee region.

Lastly, it's our 64,000-plus hospitality workforce that serves as our secret weapon. Our Certified Tourism Ambassador program, which we launched late last year, will count some 500 graduates by year-end. This army of trained tourism concierges has the tools and desire to exceed visitor expectations.

Tourism is economic development. It's about convincing the traveling public that they will have a better time visiting Milwaukee and receive more value for their dollar versus other competitive urban destinations. It's about growing the tourism economy and improving the quality of life for all of us who call this region home.

Doug Neilson is president and chief executive officer of Visit Milwaukee.

Is your business or company looking for ways to assistant local organizations fulfill their mission? Is your staff wondering how they can help the community without volunteering an extraordinary amount of their personal time?

If so, then we've got what you're looking for. It's called Heroes for the American Red Cross, a community-wide, grass-roots effort, designed to ensure the emergency needs of the community are met this year and in the years to come.

For over 125 years, we've provided communities with heroes; volunteers who saved lives and helped countless families survive and recover from disasters. Now we are asking communities to unite and become heroes for the American Red Cross in Southeastern Wisconsin by participating in the 2008 Heroes for the American Red Cross Campaign. The campaign officially began May 5 at a kick-off celebration held at the new Crowne Plaza Hotel in Wauwatosa. 

In our area, more than 1,000 people experienced disasters, such as house fires, floods, storms and explosions, were given shelter, food, financial assistance and mental health counseling this past year. We immediately respond to disasters but we need your help. Funds from the campaign will help take care of those affected by disasters right here in southeastern Wisconsin.

The concept of Heroes is very simple: dozens of local businesses and volunteers are recruited to serve as Heroes whose goal is to raise awareness of Red Cross and raise funds to support the programs and services. Funds are raised in a variety of ways. Every Hero is encouraged to pursue any fund-raising strategy they are comfortable with and think will be successful. Heroes come up with fun and unique fundraisers so be on the lookout for them within the month of May. Please support the Heroes when you see them in your community.

Currently, many Wauwatosa individuals, businesses and groups are volunteering to be Heroes for the American Red Cross. They include: Cranky Al's Bakery & Pizza, The Spice House, GE Healthcare, Crowne Plaza Hotel, Wauwatosa Savings Bank, Venturi's Market, Noodles & Co. – State St., Healthways Health Center, Wild Impact Marketing, Dr. Herbert Kuehnemann and the Milwaukee Public Market. In addition, Heroes have also been designated in Kenosha, Racine and Waukesha counties. 

It's not too late - anyone interested in volunteering to be a Hero or in donating funds is encouraged to call the local Red Cross at (414) 342-8680.

Kate Hinze is the director of media and communications for the American Red Cross in Southeastern Wisconsin.

Generally speaking, when giant corporations square off on a national level, consumers - be they here in Wisconsin or elsewhere - often find themselves quietly standing by the side, waiting for the dust to clear.

Such may be the case with Microsoft's recent bid for Yahoo. A seemingly good stock offer was turned down by the No. 2 Internet giant and Microsoft pulled back.

You might be wondering why anyone in Wisconsin should care. 

For businesses, a Microsoft-Yahoo merger represented a chance to provide some real competition with the Internet's No. 1 giant - Google. You don't have to search long in Milwaukee to find business leaders who say competition is a good thing when it comes to keeping costs low, preserving jobs and helping the economy.

Having both mega-Internet search providers duking it out for customers daily would also have helped provide consumers with a choice and not threaten online advertising. The merger would also have allowed Microsoft-Yahoo to check the market leader's ever-growing dominance of and control over the Internet.

But that was not to be, so now consumers in Wisconsin and across the globe have something else to think about. The potential for a Google-Yahoo merger. A pairing of the No. 1 and No. 2 search engine providers could create a monopoly that would dominate online advertising dollars and control the majority of all Internet search activities. And don't doubt for a second that the associated increase in business costs would be passed onto consumers here in the Midwest and elsewhere.

There are also those who have raised concerns with Google's gathering of user information. They will likely have even more privacy questions if Yahoo falls under the influence of Google. Will Yahoo join Google's information gathering practices and what voice will consumers here or elsewhere have in that matter? These giants joining forces will also likely raise serious anti-trust concerns and will need to be thoroughly reviewed and examined by Congress and the Senate.

In life, we all choose whether to get involved or stand on the side and wait for the dust to clear. In the Internet debate, our legislators in Washington need to clearly hear the consumer and business voices who believe in competition, be that here on the ground or in the virtual world of the Internet.

Protecting existing jobs, maintaining fairness in online advertising for our business community and preserving consumer choice is important to our economy. Leaving the door open to creating a monopoly is not.

Alderman Tony Zielinski represents Milwaukee's 14th District.

The prevailing perception around these parts is that Milwaukee has no chance of being the home for the corporate headquarters when Miller Brewing Co. and Molson Coors Brewing Co. merge their U.S. forces.

After all, Molson Coors vice chairman Pete Coors, who will serve as chairman of MillerCoors, said the future headquarters will probably located in a "neutral" city other than Milwaukee or his hometown, Golden, Colo.
The Denver Post reported that the cities being considered for the new MillerCoors headquarters include Chicago, Kansas City, Dallas, Atlanta, New York and Des Moines.

Still, that isn't stopping the folks at the Milwaukee 7, the Metropolitan Milwaukee Association of Commerce, Milwaukee Mayor Tom Barrett and Wisconsin Gov. Jim Doyle from continuing their efforts to convince the merged brewer to come to a town that has marketed itself as "Brew City" for decades.

The M7 is bringing the international site selection team of Deloitte LLP to our fair city this week to evaluate our region and provide insight about how it should market itself to companies that may be considering Milwaukee as an option for corporate headquarters.

Steve Baas, governmental affairs director of the MMAC, said the Deloitte team will be here today and Friday, sizing up the region's assets and making note of its weaknesses.

"We have them coming in to look at what we're pitching, to coach us up," Baas said. "You could call it due diligence, but it's much more than that. It's a great opportunity."

The M7 folks will use the feedback as they continue to make their case to MillerCoors and as they pitch Milwaukee to other corporations in the future, according to Pat O'Brien, executive director of the M7.

Deloitte had provided some consultant work related to the formation of the M7, which then invited the company's site selection team to hold its annual meeting here, O'Brien said. While they're here, the dozen-or-so members of the team are going to size up Milwaukee.

MillerCoors officials have been mum about their progress in determining the location of their combined headquarters, because they are awaiting the U.S. Department of Justice's antitrust review of the corporate marriage, O'Brien said. He said the government's decision is expected in June.

Ultimately, Milwaukee might need to come up with a new identity to supplant the "Brew City" moniker. After all, if Miller goes the way of Pabst, Blatz and Schlitz, the only thing left will be a collection of nice local microbreweries.

Still, the M7 has not given up on the notion of convincing MillerCoors to put its headquarters here, Baas said. The Milwaukee team will "dot every i" and "cross every t" until a decision is made, he said.

Baas acknowledged that a pessimist may believe the cause is lost. He said an optimist may believe Milwaukee still has a chance. But a realist believes Milwaukee must make its best case and let the chips fall where they may, he said.

In other words, the M7 gang is going to swing hard, in case it hits something.

Steve Jagler is executive editor of Small Business Times.

Dennis Elmaurer's April 29 entry in the Milwaukee Business Blog ("Connect the Ugly Dots in the Hospital Assessment Scheme") contained numerous inaccuracies and omissions that warrant a response.

As preface, by the end of this state biennium (June 30, 2009), it will have been over a decade since Wisconsin hospitals received a direct increase in what they are paid to care for Medicaid patients. In 2007, hospitals received, on average, 48 cents for every dollar they spent providing care to this population. In other words, 52 cents of every dollar of Medcaid cost (not charges) had to be collected from someone else. Last year, this meant roughly $600 million in unpaid government health care costs were shifted to every employer in Wisconsin.

And it hasn't mattered which party has been in control at the state capitol … paying for Medicaid/BadgerCare (eligibility for which has been expanded by both Republicans and Democrats) has not been a priority in Madison.

So who picks up the tab for these growing programs? Wisconsin employers and Wisconsin families.
Legislators from both sides of the aisle readily acknowledge this problem, but Medicaid cost shifting is largely unseen, inconspicuous among the various factors that comprise the cost of health care - so nothing gets done. 

History clearly shows that the only way to break this cycle of inaction is to find another approach. Our Association, along with major Wisconsin business groups, believes the hospital assessment is a solution that can be a "win-win" for all of us.

Here are a few more facts.

Medicaid (and BadgerCare) is a state/federal partnership. A dollar put into the Medicaid program garners well over $1 in additional federal matching money. It's the way the program works. And yes, as Mr. Elmaurer pointed out, that federal money comes from taxes we all pay. But today, those taxes we already pay are going to other states at astounding levels.

Wisconsin now ranks 47th in the amount of OUR federal tax dollars coming back home.  Shall we strive for 50th and watch health care costs continue rising in the process? Shall we slash state funding for Medicaid/BadgerCare and send back to Washington the millions we already receive so even more Wisconsin tax dollars can go to other states?

We don't need to pay more in federal taxes. We need to do a better job of making the taxes we pay matter  ... in Wisconsin. The hospital assessment is one way to do that.

The hospital assessment will not be a tax on a patient's bill, as claimed. If implemented, it will be an assessment on hospital gross revenues. The dollars generated will be placed into Medicaid and, like any money put into Medicaid, capture hundreds of millions in matching federal revenue. These dollars would in turn be used to increase hospital Medcaid/BadgerCare payments.

The net result: hospitals will receive far more than they were assessed, a significant dent will be made in the hundreds of millions now being cost-shifted onto employers and the legislature will finally begin addressing a long-ignored problem that is contributing to our high health care costs.

Lastly, we commend state and Milwaukee business leaders for supporting the assessment. The Wisconsin Manufacturers & Commerce (WMC) and the Metropolitan Milwaukee Association of Commerce (MMAC) are fighting for our fair share of federal dollars and lower health care costs. They deserve a "thank you" from taxpayers, not a misleading thrashing.

Eric Borgerding is executive vice president of the Wisconsin Hospital Association.

This week's report from the Public Policy Forum confirms what I and other Milwaukee County Board members have known for some time: route cutbacks and fare increases are causing major damage to mass transit in Milwaukee County.

I am glad that Public Policy Forum president Rob Henken is leading a team of professionals in providing detailed and thorough reports on issues of importance to the community, continuing the exemplary work he performed as research director for the Milwaukee County Board of Supervisors.

Preserving an extensive mass transit system is one of my top priorities as chairman of the board. Transit is not just a human services issue. It is also a main ingredient in building our economic infrastructure. Because of limited federal and state support for mass transit, I am going to arrange to meet with key members of the business community to assist the county in developing progressive ways to overcome these funding challenges.

There is no question that we must alter the path our transit system is on. Using property tax dollars to fund the local portion of mass transit funding is archaic. The time for change is now. All options are on the table as we consider ways to modernize transit funding and improve the service provided to people from all walks of life.

A resolution passed by the county board last year affirms Milwaukee County's top transit priority is identifying a non-property tax dedicated funding alternative for the ongoing operation of the existing rubber tire bus service.

A dedicated source of funding means reducing the burden on property taxpayers permanently. The stabilization of the mass transit system in Milwaukee County is dependent upon it being removed from the property tax.

The Milwaukee County Transit System provides an extensive route network that is easily accessible to nearly all county residents. It is imperative that we fulfill the needs of low-income and minority residents in our community. We must not leave the riders and employers who depend on this service behind.

Lee Holloway is chairman of the Milwaukee County Board of Supervisors. To view the Milwaukee Public Policy Forum's new analysis, "Milwaukee County's Transit Crisis: How Did We Get Here And What Do We Do Now?" click here.

As someone involved in small and medium sized businesses, I understand that current economic conditions coupled with time constraints often mean that charitable giving falls to the bottom of the to-do list. For me, helping others is a personal priority that I am very passionate about. In fact, it's one of the reasons I agreed to co-chair the United Way of Greater Milwaukee's 2008 Community Campaign.

If you need more tangible reasons, however, consider that it's good for business. Here are five reasons why giving to charity is good for your bottom line:

(1) Community Goodwill: When you donate to charity, you enhance your company's image and reputation, increase customer loyalty, and bolster your ability to attract and retain employees. In addition to a corporate donation, you can multiply your company's goodwill by considering strategic charitable donations like sponsorships, matching grants and allowing employees to volunteer during work hours.

(2) Give and Receive: Companies receive more than just goodwill for their good deeds. Last year, the national research firm Yankelovich released a report that proved businesses that get involved with charity also profit financially. Ninety-three percent of consumers believe that American businesses have an obligation to improve the social and environmental impact of their products and services. When price and quality are equal, 76 percent of consumers would switch brands or retailers to a company associated with a good cause. More than half of consumers (60 percent) agree that it is "right" to make purchases as often as possible from companies that support charitable causes in their local community.

(3) An Economic Boost: Giving to an organization like United Way that is addressing so many of the critical issues affecting our city, strengthens the economic viability of the local market which benefits local employers. 

(4) Tax Benefits: While traditional cash and check donations are still the main currency for charitable donations, stocks, bonds and planned gifts are options which also carry significant personal tax benefits.

(5) Filling the Talent Pool: A successful business requires a talented staff. By contributing to charities like United Way that support education for youth and job-training for adults, you are helping increase the number of qualified candidates available to your business.

Whatever your motivation, please consider giving and, when you do, realize that a contribution to charity is an investment that pays a positive return to you and others. United Way is an efficient and effective means of contributing to a wide range of needy causes as evidenced by the third-party endorsements it has received from BBB Charity Seal and a four-star rating from Charity Navigator.

There are over 75,000 small businesses with 250 employees or less in the Milwaukee area. If every business gave what they could, the result would total millions of dollars toward building our community and improving the living circumstance of thousands of individual every single day.

Please consider a gift to the 2008 United Way Community Campaign.

David Lubar is president of Lubar and Company in Milwaukee and is a campaign co-chair of the 2008 United Way of Greater Milwaukee. To donate, visit www.unitedwaymilwaukee.org.

Last week's Earth Day celebrations and the onset, finally, of spring weather gave us pause to revel in the beauty around us - and to consider our responsibility to be good stewards of our most precious asset, the environment.

We walk down a path cleared by Wisconsin's own Gaylord Nelson, John Muir and Aldo Leopold. And we stand now in the threshold of opportunity delivered to us in the guise of global climate change and a pressing need for energy independence.

For too many of us, the prospect of a global phenomenon is so overwhelming as to be paralyzing. We don't know how to begin to act; we aren't sure anything we do as individuals can possibly have an impact and change the course of what appears to be inevitable.

Two new initiatives in my Green Economy agenda provide you an easy point of entry and a powerful way to make a difference. The first is geared to all of us in our homes. You are likely one of the 2.3 million residential electricity customers in every county in the state with access to what the utilities call "Green Pricing Programs." Those programs offer you the option to purchase renewable energy to power your home at a small premium – usually ten dollars or less per month.

When you enroll, you effectively prevent one ton of coal from being burned this year. If only one thousand of us flipped the switch, it would be the equivalent of taking three hundred cars off the road, preventing 3.28 million pounds of CO2 from filling the atmosphere. And as even greater numbers of us insist on renewable energy, we speed up development of those resources and the new jobs that go with that, even as we increase our energy independence and reduce carbon emissions.

It took me no more than five minutes to make the change. Now our apartment in Madison gets its electric power from methane gas harvested from Dane County landfills; our home in Algoma runs on wind power. Your utility may offer hydroelectric power or biogas or a combination of the rich mix of resources being developed here to power our homes and businesses.

I partnered with Wisconsin's Office of Energy Independence to provide an online resource to help you make the switch. Just go to http://power.wisconsin.gov and click on "Renewable Energy." Select your county, click on your utility provider and you will learn the cost and source of energy used, and how to enroll.

The second initiative is designed to help school districts across the state become more energy efficient and save money for hard-working taxpayers. I challenged the state's school district administrators to become Energy Star Partners in a program offered by the Environmental Protection Agency (EPA).

According to the EPA, U.S. schools currently spend $6 billion a year on energy costs, more than they spend on textbooks and computers combined. Inefficient technologies and building design rob them of an average of twenty percent of that energy purchased. With energy costs high and rising, and sure losses due to the inefficiencies of Wisconsin's aging building stock, I aim to give school districts an easy way to begin to change operations and habits, and save money doing it.

Thirteen Wisconsin school districts have already enrolled as Energy Star Partners and enjoy impressive results. One district reports avoiding over $2 million in energy costs in just three years with a twenty-five percent reduction in energy consumption. They also report improved lighting and air quality. Another district started down this path planning to save enough money to fund a new roof. For all, savings become addictive and they continue to explore new efficiencies.

With my challenge, I created a page on my website devoted to linking schools to the resources and providing the support they need to shrink their carbon footprint, improve conditions for work and study, and save your hard-earned tax dollars. They need only go to www.ltgov.wisconsin.gov and click on the "Energy Star School Challenge" button to set down that path to savings.

We in Wisconsin don't wait for change; we author it. Take advantage of these new web tools to transform utility markets and strengthen the hand of our schools to educate our children. Together, we can improve our economic outlook and leave a proud legacy.

Barbara Lawton is Wisconsin's Lieutenant Governor.

Wisconsin’s Do Not Call List is phenomenally popular. During 2007, more than 1 million Wisconsin residential phone lines were covered by the list that is operated by the Wisconsin by the Department of Agriculture, Trade and Consumer Protection (DATCP).

Unfortunately, fewer telemarketers at dinner time mean more salespeople knocking on your door.
DATCP is warning residents to be aware of door-to-door salespeople who are popping up more frequently in Wisconsin neighborhoods selling home improvements, lawn care, the traditional vacuum cleaners, meat, and even investments. The department is offering tips on proceeding with caution whenever you get an unexpected knock on your door.

Avoid being pressured to sign any contract on the spot.

Call DATCP’s hotline at 1-800-422-7128 for information about complaints.

Rather than being compelled to make a quick, impulsive purchase, do some comparison shopping.
Be sure you are aware of the exact total you must pay, not just the monthly payment.

There is also the notorious fine print to worry about. DATCP reports one alarm company had in its contract fine print that it could increase monthly fees when it so desired and could demand payment of monthly fees in full if the purchaser ever canceled the contract. If you are being pressured to pay more than the original contract indicates, you are advised to call local law enforcement.

Since August 1, 1999, Wisconsin has had a direct marketing rule providing consumer protection that applies to telephone, e-mail, fax, mail, and door-to-door transactions. These include purchases made in places away from the seller's place of business.

All direct marketers, including door-to-door salespeople must, after a short greeting, tell who they are, who they are working on behalf of and what they are selling.

Before finishing the sale and taking any credit card information or cash, direct markets must tell consumers the cost, quantity, conditions, refund policy and the name and address of the principal company.

A direct marketer must obtain verifiable authorization before a credit card is billed and must keep transaction records for at least two years.

According to DATCP, the direct marketing rule also prohibits:

• Threatening, intimidating or harassing consumers.
• Failing to leave a consumer's premises upon request.
• Calling consumers who previously said they do not wish to receive telephone solicitations from that seller.
• Calling consumers before 8 a.m. or after 9 p.m. without their prior consent.
• Requesting or receiving payment for loan finder services before the consumer actually receives the promised loan. This is aimed at companies that promise loans, charge a fee, and disappear without producing the loan.
• Requesting payment for helping consumers recover money lost in a prior home solicitation transaction until at least seven days after the consumer recovers the money. This is aimed at so called "recovery room" schemes, which prey on previously victimized consumers.

Wisconsin law also enforces a three-day cooling-off period. A consumer has three business days to consider and cancel a direct marketing sale of $25 or more that occurs away from the seller's regular place of business. The three-day right to cancel begins after the seller has provided the purchaser a written notice of the right to cancel.

Consumers exercising the right to cancel are advised to send notice by certified mail. Money must be returned within 10 days. If the seller does not pick-up the product in 20 days, the purchaser may keep it.
Direct marketers who violate the rule may receive a civil forfeiture of up to $10,000 or a fine of up to $5,000 and be imprisoned for up to a year. For more information, contact the Division of Consumer Protection at 800-422-7128.

If you have comments on this or any other issue, please contact me at Sen.Lazich@legis.wisconsin.gov,

State Sen. Mary Lazich (R-New Berlin) represents Wisconsin's 28th Senate District.