Texas merchants can’t add surcharges for credit, debit cards

 The Lone Star State is one of only 10 in the nation that prohibit merchants from charging swipe fees for credit card sales. For the 40 other states, merchants can charge up to 4 percent in extra “convenience fees.”

The Legislature passed a law in 2013 giving real enforcement power to state regulators to go after rogue merchants who charge extra.

It gets even better. The Legislature also passed a law prohibiting the same kind of surcharges on debit cards, too.

All hail the mighty pro-consumer Texas Legislature. (I never got to write those words before.)

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As readers of The Dallas Morning News Dave Lieber Watchdog column first learned, these two obscure bills passed in 2013 will save Texans in overcharges. If you see a merchant charging extra for credit or debit use, take a photograph of a sign proving the illegal surcharge. Or use a receipt as evidence.

debit card

File a complaint with the Texas Office of Consumer Credit Commissioner, which, for the first time because of the new law, is able to use its field agents, investigators and legal staff to go after violators.

“If we receive a complaint, we’ll investigate,” promises Rudy Aguilar, director of the OCCC. Previously, his office sent warning letters because it wasn’t allowed do more.

The no-surcharge law has been on the books for almost 30 years, but no one can remember anyone getting fined. Now administrative financial penalties are on the table, too.

The law was sponsored by state Rep. Cindy Burkett, R-Sunnyvale. She told me state regulators asked for her help to strengthen their enforcement abilities.

A second bill by state Rep. Jose Menendez, D-San Antonio, places debit cards under protective cover, too.

“We worked our backsides off to make that pass,” says Steve Scurlock, executive vice president of Independent Bankers Association of Texas.

“I’m amazed watching the younger people that never have cash. Ever. So it’s really become the banking system of sorts.”

His group supported the changes because they allow consumers and regulators “to make sure people were doing what the law said.”

Merchants can still require a minimum purchase of $10 before a credit card can be used, according to a federal rule. But nobody is allowed to set a minimum purchase level for using a debit card. That comes directly out of the card owner’s account.

There is one exception to the ban on these surcharges. A certain class of “merchant” is allowed to place surcharges on its invoices for using a credit card.

That merchant? Government. Local, county, school district and state government can tack on charges for credit cards for taxes, fees, licenses and other government transactions. Nobody should be surprised by that.

For everybody else, it’s time to start complaining to the Office to Consumer Credit Commissioner.

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The Watchdog: AT&T retiree asks if she’s victim of a bait-and-switch

Virginia Bowers was once in love, but not anymore. Her paramour was her company, Southwestern Bell, where she worked as a manager for almost three decades. The company helped her raise three children as a single mom.

“I was enamored with the security,” she says.

No more. Dealing with her old Southwestern Bell, now flying under the AT&T flag after Southwestern purchased AT&T in 2005, is like wrangling with an ex-spouse, she says.

 “Every call with them is frustrating,” she says about her customer service experiences. On one recent call, she confesses regretfully, “I ended that phone call screaming at the man.”

att (1)

As readers of The Dallas Morning News Dave Lieber Watchdog column first learned, Bowers’ breakup started eight months ago. Bowers gets a letter from AT&T telling her she needs to upgrade her service. Well, that’s not how AT&T puts it. AT&T writes that it is “proactively transitioning some customers who live in your area to the advanced AT&T U-verse network with fiber-optic technology.”

Bowers already has a sweet deal for Internet service: DSL cable for $19.99 a month — for life. The letter, though, promises, “The change is free.”

She calls to ask the new monthly price. She learns it’s even lower — $15 a month. She asks several times if that’s the true price. A few days later, she calls again and talks to someone else. She double- checks the price one more time. Everyone assures her: $15 a month.

A sweeter deal, so she gives the OK. Her Internet service is disconnected. The company installs a new modem setup. For the first months, her bill is the promised $15.

Then Bowers gets another letter. The company regrets that it must share bad news. An audit shows that she has been charged the wrong amount. She’s paying the active managers’ rate when she should pay the retired managers’ rate. Her new rate is higher. Forty dollars a month. A jump from $15 to $40 — a 167 percent increase.

She protests. AT&T gives her a $30 credit. That’s the equivalent of an air kiss. Bowers is out $300 a year in extra charges. Even if she wants to go back to her old DSL service, the company says she can’t.

“Does this sound like entrapment or bait and switch to you?” she asks The Watchdog.

Sounds like a potential case of deceptive advertising. The Texas Deceptive Trade Practices Act defines that as presenting a false statement about “the cost or character” of a product, service or financial security for sale.

AT&T calls it an unintentional error. The company caught the mistake. Now the correct price is being charged.

AT&T spokesman Dale Ingram says the company is treating Bowers fairly: “She had an active manager discount for almost a year. We didn’t go back and charge for that.”

He adds, “We’re applying the correct discount moving forward as a retired manager, and again, we have apologized.”

Sigh. Shouldn’t a promised price that is accepted by a customer stamp a deal as final? You’d think so, especially one involving a veteran former employee.

This is no surprise to AT&T critic John Spiller, who says AT&T employees sometimes struggle to present accurate facts to customers when making a sales pitch. Spiller wrote a 2011 tell-all book, The Ampersand DiariesAT&T and Life Lessons Learned from the Trenches of an American Icon.

ampersand

“They do the same thing to their employees, past or present, that they do to their customers,” he says. “Say one thing. Do another. Very, very common.”

Bowers actually faces two AT&T price increases. The bill for her AT&T cellphone went up 61 cents on May 1, as it did for millions of other customers. AT&T says the new charge will help cover company expenses.

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It was “a move that could bring in more than a half-billion dollars in annual revenue to the telecom giant,”The Wall Street Journal reported. (Other phone companies charge similar administrative fees.)

Bowers has two obvious options. She can file a complaint with the Texas attorney general’s office, which examines claims of deceptive advertising. She can also file a small-claims court lawsuit against AT&T for $300 to cover her lost money for a year and other added expenses. She doesn’t need a lawyer for small claims. But she needs proof of the deception, preferably in writing, photos or recordings.

How sad that Bowers’ longtime affection for her former company has come to this. She speaks nostalgically of “the universal relationship” the phone company once had with its customers.

“They frittered it away,” she says.

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Watchdog Video Tip of the Day: How to pick a cruise company

Check out that cruise company before you pony up the big bucks.

 The Dallas Morning News Watchdog Desk administrator Marina Trahan Martinez shows you how.

The Watchdog Video Tip of the Day, produced by DallasNews.com, is designed to solve a problem in less than a minute. Read more Watchdog reports here.

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Marina

Enterprise Rent-A-Car repair bills shock customers

Christina Morales got sideswiped in a small-time fender-bender with another car. What came next was typical: Getting the insurance company’s approval to pay for a rental car and then driving the rental car while the old car was in a body shop for repairs.

For Morales, a 29-year-old nurse, this little chore ended badly. She found herself in a faceoff with Enterprise Holdings, owner of Enterprise Rent-A-Car, the rental company she used. EH also owns Alamo Rent A Car and National Car Rental.

The company accused Morales of getting into an accident with her rental truck. She received a pay-or-else invoice for $1,000 in repairs and $100 for “administrative fees.”

She knew that was wrong. She was never in an accident. She began to research on the Internet and found dozens of similar customer accounts.

WDN Article_June 8_2013_Enterprise
File 2009/The Associated Press

(Half of all car rental complaints made to the Texas Attorney General’s Office in recent years came from Enterprise Rent-A-Car customers, The Dallas Morning News reported in March.)

As readers of The Dallas Morning News Dave Lieber Watchdog column first learned,, she found the work of my predecessor, Problem Solver Katie Fairbank, who wrote a series of columns about customers who claimed the same. I’ve studied and written about other people who said they were charged for accidents they didn’t know about, too.

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A close examination of Morales’ case shows the company is breaking its own protocols for handling these situations. EH executives are aware of public criticism of their damage claims units, but they say they must protect their fleet.

“The common phrase we hear from customers is, ‘I didn’t do it,’ ” said Roger Van Horn, vice president for corporate loss control. “… Basically, what we’re saying is we gave it to you. There was no damage on it. You returned it. There was damage on it. It happened while it was in your possession, and therefore, you’re responsible.”

As soon as he concluded, Christine Conrad Cavallini, vice president for corporate communication and public relations, jumped in: “That’s not to say we have not made a mistake before.”

Or in the case of Morales’ rental, a series of mistakes.

Conrad Cavallini talked about a new initiative to soften the blow. An Enterprise representative is now required to call a customer “to reach out and discuss” a claim before paperwork is filed.

That didn’t happen with Morales. No one contacted her until she got the claim letter last month.

Conrad Cavallini said she wants customers to reach out to the company when they discover serious problems. Nobody answered Morales’ letter laying out her facts and seeking information from the company.

Morales discovered other problems. She said Enterprise employees faked the amount of miles she drove. The return slip for the vehicle shows that in two weeks, she drove almost 17,000 miles. (The starting mileage number is crossed out with a second smaller one handwritten in.)

“I would have had to drive to South America three times,” she said, when she only used the vehicle for a daily 40-mile roundtrip commute.

The return slip states in large, handwritten letters, “No damage on truck.” Yet she was charged for damage two weeks after the truck’s return.

She questions whether the photo of proof the company sent her is of the truck she rented. Other Enterprise customers have told me that the company sent them a photo of a damaged car different from theirs.

The company blames the confusion on this: Morales’ mother dropped the truck off at the end of two weeks. The company said that’s against the rules, but Morales said she called the branch office and received permission for her mother to drop off the car.

After The Watchdog intervened, the company released a statement: “What happened is that an unauthorized driver (the renter’s mother) returned the car and confused our employee, and, as a result, the employee failed to point out the visible damage at the time.

“As a result of the confusion and delays, we are dropping the claim. However, please stress to this customer the importance of allowing only authorized drivers to operate rental cars, even if only returning the vehicle.”

The Dallas Morning News reported in March that half of all car rental complaints at the Texas attorney general’s office in recent years came from Enterprise customers.

My take: When picking up a car, make written notations on the company paperwork of all damage found. Keep a copy. Also, when picking up and dropping off, use a smartphone camera to video record and photograph all angles of a car.

“We’re all trusting of one another,” Morales said. “These are hard times right now. Now we can’t even trust the people we’re buying from or getting service from? When can we trust people?”

TIP: How to fix this problem: Watchdog Dave Lieber suggests if you have this problem, file a complaint with: 1) the Missouri Attorney General, 2) the attorney general of your home state, 3) the Better Business Bureau, 4) the Federal Trade Commission. And remember to always take photos and video of your rental car both BEFORE and AFTER your rental.

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Watchdog Video Tip of the day: A school mistreats your child

A school is mistreating your child, and you want to learn more so you can fight the system.
The Dallas Morning News The Watchdog columnist  Dave Lieber shows you how to file an open records request.

The Watchdog Video Tip of the Day, produced by DallasNews.com, is designed to solve a problem in less than a minute. See more free Watchdog reports here.

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Bam

Watchdog Video Tip of the Day: Fight a debt collection company

A debt collection company calls and threatens to have a debtor arrested and thrown in jail.

That’s not legal and The Dallas Morning News Watchdog columnist Dave Lieber tells you what to do.

The Watchdog Video Tip of the Day, produced by DallasNews.com, is designed to solve a problem in less than a minute.

Check out more of our Watchdog reports.

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Bam

The Watchdog columnist

Texans need front license plate – or face $200 fine

Here I am, The Watchdog, solving the mystery of the Texas front license plate.

Texans need a front license plate by Dave Lieber, Watchdog columnist of Dallas Morning News

If your vehicle doesn’t have a front license plate, or a rear one for that matter, as of September 1, 2013, you’re looking at a $200 fine. 

Which leads to another amazing discovery I made while solving the mystery of the front license plate. (More news coming!) For the past two years, until Sept. 1, 2013, any motorist in the state of Texas who was stopped for not having a front or rear Texas license plate could not be fined. That’s right. Not be fined.

Legislators in 2011 accidentally removed the punishment portion of the license plate law. (Uh-oh.) The law was on the books, but the fine was inadvertently deleted. (Embarrassing.) That made traffic cops much less likely to make stops for a missing front plate. They could write tickets with no fine. (Where’s the fun in that?)

In Texas, a law enforcement officer is allowed to stop any vehicle if a front or rear license plate is missing. It’s the same as an officer making a stop when a driver runs a stop sign, makes an improper lane change or, everybody’s favorite, drives too slow.

As readers of The Dallas Morning News Dave Lieber Watchdog column first learned, now, with the punishment tacked back on to the law, the fine for a missing front or rear plate is specifically set at no more than $200.

The mystery of the front plates in Texas came up when I mentioned it in a recent Watchdog report that the license plate law is a personal pet peeve. If Texas requires a front plate, why is the law rarely enforced? The result is a lot of cars without front plates. How come they get away with it? Either enforce the law or dump it.

I see it as a safety tool that helps eyewitnesses and law enforcement identify the bad guys. Front plates double the chance for a clear ID of, say, a hit-and-run driver, a child molester or a killer.

Drivers, including Corvette and Prius owners whose cars don’t come with ready-made front license plate brackets, tell me they are concerned. Hey, nobody wants to drill holes in their beauty’s front hood.

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One reader suggested, “Instead of forcing the law, why not eliminate front plates? Lots of states do not require front plates. The extra plate costs the state money. Put the savings in the highway fund.”

Another: “I think if cops would include checking stickers and license plates to the list when they pull someone over it would start to force more people to get current. Right now cops only ask for driver’s license and insurance.”

Car and truck owners without front plates may now be rushing out to Pep Boys for brackets. Or they could be running to their favorite auto parts website for the right make and model number. Yep, it’s my personal pet peeve, but please don’t blame me.

Who then? I looked up the recorded vote this year for House Bill 625, author, Rep. Linda Harper-Brown, R-Irving. The state Senate voted 31-0 for the new law; the House voted 139-4.

I talked to representatives of the San Antonio and Houston police departments who lobbied for it. Summarizing, they said both front and rear plates make it easier and safer for police to do their jobs.

With a money fine back in the law, San Antonio police Sgt. James Jones says he expects more officers to make no-front-plate stops.

“That would be enough to pull somebody over,” he said. “That is a traffic violation.” Officers will check for driver’s license, insurance and any outstanding warrants, he says.

I understand there are people across Texas who will not believe this is happening, people who’ve driven without front plates for years, and yeah, the Corvette and Prius owners.

There’s a bit of urban folklore about front plates in Texas. Considering the bungling in state law that was corrected, that’s no surprise. But let there be no doubt. The law is clear.

As of Sept. 1, 2013, it is required that all registered vehicles, including commercial vehicles, must display both front and rear plates.

“An offense under this section is a misdemeanor punishable by a fine not to exceed $200.”

Let the drilling begin.

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Watchdog Video Tip of the Day: Somebody stole your mail?

Somebody stole your mail? Who do you report the crime to?

The Dallas Morning News Watchdog columnist Dave Lieber has the answer. 

The Watchdog Video Tip of the Day, produced by DallasNews.com, is designed to solve a problem in less than a minute.

See more Watchdog tips at The Dallas Morning News Watchdog Desk here.

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Bam

 

The Watchdog mystery shops a Dallas congressional office

This could have been a Watchdog report about how a congressman’s office messed up. If that were true, nobody would be surprised. But it’s not.

Life in this low-rated 113th Congress is apparently so difficult for all involved that when I told the congressional office that this was a positive story, at first, they didn’t believe me.

Dave Lieber's Watchdog Nation won a 2013 writing award from the National Society of Newspaper Columnists

It begins when I hear a complaint from Kala King of Garland. Her 80-year-old mother breaks her hip and receives physical therapy through home health care. The agency providing PT charges $1,200 for six sessions. But Medicare pays $2,083.

“Medicare paid nearly twice the amount that the agency billed the claim for,” King tells me.

Believing it’s a computer error, King calls Medicare to let them know they paid too much. What she hears surprises her. The Medicare representative tells her that there’s a standard amount of payment for such a service, and the system automatically pays that amount no matter the actual billing amount, even if it’s higher.

“This makes no sense to me,” King says. “It’s not cost-efficient. It just seems crazy to me and a waste of money. What am I missing here?”

Kayla King

Kala King

King says she contacted her congressman, Rep. Pete Sessions, R-Dallas, but she never received an answer. Instead, she says, she starts receiving Sessions’ newsletter.

News of this kind aggravates The Watchdog. When you contact elected officials, The Watchdog believes, they should respond in a timely and accurate manner.

But when King tells me she contacted Sessions through his website, I realize that’s the problem. Website communication with any government agency is often a big fail. Nothing works better, I believe, than a phone call or, even better, an actual office visit. Give a face and name to a problem. I suggest to King that she get in touch with a Sessions caseworker in person.

As readers of The Dallas Morning News Dave Lieber Watchdog column first learned, I decide to follow this journey. This is like mystery shopping a government office, similar to the way major companies send secret shoppers into their retail stores to see how shoppers are treated. Can King get a straight answer? If she can’t, you’ll know in another negative story about the 113th Congress that will surprise nobody.

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Sessions caseworker Jennifer Lang of the Dallas office is assigned the case. She is the Medicare and Social Security specialist. It takes several weeks of back and forth with the Centers for Medicare & Medicaid Services, but Lang gets an explanation. She tells King. King tells me. Now I’ll tell you.

Jennifer Lang

Jennifer Lang

Medicare uses something called a “prospective payment system” to make these payments. The services involving home health agency visits are bundled. So even though the only service King’s mother receives is physical therapy, it’s bundled with other services such as nursing, occupational therapy and speech-language therapy that she does not receive.

A Medicare official tells the congressman’s caseworker that sometimes the billing amount comes in low and, as happened with King’s mother, the payment is higher. Other times, the billing amount is high, but bill payment is lower. Either way, the Medicare official explains, they cancel each other out. Really?

The Medicare official explains that this system is better than the old system, which paid per visit. The problem was that service agencies had a financial incentive to make more visits, even if the visits were unnecessary, so they could make more money. The new system is supposed to cut back on that kind of abuse by creating standard payment amounts. At least, that’s the logic.

King isn’t pleased with the answer. She believes, frankly, that it’s dumb to overpay. Why not simply pay the billed amount, whatever it is, rather than a fixed charge? Why not cap the amount? Why not depend on a doctor’s letter to determine what’s needed? Those are King’s ideas.

But Medicare makes the rules.

What I like is that King gets her answer in detail. This is what the Founding Fathers imagined when they created a U.S. House. Hundreds of representatives from small districts across the nation, running for election every two years, accountable to the people. We all know it often doesn’t work that way.

Medicare announced in June that it’s changing some of its payment rules next year. Medicare payouts to home health agencies are about $18 billion a year. The changes will save about $290 million. That’s a drop in the bucket. At least it’s something.

I wanted to tell you about Kala King, the asker of questions, and Jennifer Lang, the answerer, because this is the way representative democracy is supposed to work.

“I figured if this happens in our bill, it happens in lots of bills,” King says. “And if you multiply it across the United States, I figure it’s a very large waste of money.”

Lang says, “We understand that sometimes it’s hard for consumers to deal with government agencies…. I was just doing my job.”

Too bad that alone is today’s world is enough to muster special attention.

U.S. Rep Pete Sessions

U.S. Rep Pete Sessions

Here’s an alert to all federal, state, county, local and school district officials: You never know when a constituent asking you for help is actually a mystery shopper for The Watchdog. I’ll be doing this again. And again.

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Dave Lieber's Watchdog Nation won a 2013 writing award from the National Society of Newspaper Columnists

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Are you tired of fighting the bank, the credit card company, the electric company and the phone company? They can be worse than scammers the way they treat customers. A popular book, Dave Lieber’s Watchdog Nation: Bite Back When Businesses and Scammers Do You Wrong, shows you how to fight back — and win! The book is available at WatchdogNation.com as a hardcover, CD audio book, e-book and hey, what else do you need? The author is The Watchdog columnist for The Dallas Morning News. Visit our store. Now revised and expanded, the book won two national book awards for social change. Twitter @DaveLieber

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Bam