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Open House

Energy Prices Soar; Cutting Your Gas Bills; Getting In Touch With Customer Service; Writing Complaint Letters That Get Results; What Gadgets Really Work

Aired February 04, 2006 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

BETTY NGUYEN, CNN ANCHOR: In just a few hours, the body of Coretta Scott King will lie in state at the Capitol rotunda in downtown Atlanta. On Monday, there will be a public viewing at Ebenezer Baptist Church. Now, the funeral for the civil rights icon will be held Tuesday at New Birth Missionary Baptist Church, and today we will be following that procession through the streets of downtown Atlanta. Stay tuned for that coverage.
In other news, Iranian officials threaten to take immediate action after the U.N. nuclear watchdog voted today to report them to the U.N. Security Council. The U.N. says it's concerned Iran's nuclear program may not be exclusively for peaceful purposes. Iran says it will stop allowing inspectors to monitor its nuclear activities, and it's going to begin enriching uranium.

According to the Associated Press, U.S. Senator John McCain says allies must be prepared for military option to stop Iran developing nuclear weapons. Now, he's going to weigh in on this showdown live in our 11:00 Eastern hour. You'll want to stay tuned for that.

ABC News has released a videotape shot moments before the attack that injured anchor Bob Woodruff and cameraman Doug Vogt. A roadside bomb, as you recall, went off while they were reporting from atop of an Iraqi military vehicle last weekend. Doctors say both men are making excellent progress in their recovery.

"OPEN HOUSE" is next.

GERRI WILLIS, HOST: Having a hard time with that heating bill? You're not alone. Costs are rising. Oil companies are making more money than ever. And, well, we all want to know what to do.

Good morning, I'm Gerri Willis.

Today on OPEN HOUSE, I'll take a look.

Also, ever wonder what happened to customer service? Well, stay tuned. I've got some secrets to share.

And you've seen those late-night infomercials. I'll sort out which products are worth the price.

First, your home heating bill.

(BEGIN VIDEOTAPE) WILLIS (voice-over): When President Bush addressed the nation this week, he underscored something we already know.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Americans are addicted to oil.

WILLIS: And it's that addiction that's helping to send prices through the roof.

The federal government's Energy Information Administration predicts home heating oil will cost the average American household $380 more this year than last year, a 32 percent increase.

Natural gas users can expect to spend $350 more this year, a 48 percent increase. And that's with Mother Nature's recent helping hand.

JACQUI JERAS, CNN METEOROLOGIST: We had about a dozen cities that recorded all-time record-high average temperatures for the month of January, from Kansas City extending all the way over to Washington, D.C. Now, this trend started in about the middle of December and continues right up to this time.

WILLIS: Still, energy analysts point out, there's plenty of time for prices to soar.

PHIL FLYNN, ALARON.COM ENERGY ANALYST: Well, we expect heating bills -- if we get another blast of cold, we could see heating-oil prices go back up to $2 a gallon, potentially. And we could see natural gas prices go back to all-time highs.

WILLIS: Another strain on the energy budget, electric bills. They're near or at all-time highs, because oil and natural gas are often used to produce electricity. And that won't change with the season.

FLYNN: This summer, it's -- we're going to have to worry not only how hot it's going to be, but also, we're going to be a lot more worried about the hurricane season.

WILLIS: Still, there is a potential upside to soaring prices. Analysts say they could spur the kind of innovation needed to end America's addiction to oil.

(END VIDEOTAPE)

WILLIS: In the meantime, ExxonMobil is earning record profits, $36 billion last year. That's more money than any company has ever made in a single year.

Of course, you probably already know that if you've filled up your gas tank lately or paid your heating bill.

And if you're looking for ways of cutting those bills, we've got some ideas.

David Fox is executive director of the Campaign for Home Energy Assistance.

David, welcome.

DAVID FOX, EXECUTIVE DIRECTOR, CAMPAIGN FOR HOME ENERGY ASSISTANCE: Thank you. It's good to be here.

WILLIS: You know, it doesn't matter who I talk to, everybody's bill is out of control.

FOX: Indeed.

WILLIS: Bills are up 35 percent year over year. What are you seeing out there? Are people really hurting?

FOX: People really are hurting. Middle-income people are hurting just as badly as low -- well, perhaps not as badly as low- income, but nonetheless, everyone is feeling the effect.

I just opened my gas bill this past week, and it was about $100 higher than last year. I didn't have too much trouble paying it, but imagine what it's like for a senior citizen living on a fixed income, maybe making $12,000 a year to pay those kind of increases.

WILLIS: Yes, you bet. I think that's where the real pain is, is people on fixed income, and even if you have to have care in home, maybe you have some equipment that's hooked up that has to be in place, if you're going to stay healthy. What is your organization doing to help those people?

FOX: Well, we are a coalition of human service organizations, energy-related trade associations, and utilities, which all are supportive of the federal Low-Income Home Energy Assistance Program. It is a federal program created back in 1981 to provide one-time, relatively low payment benefits to -- grants -- to low-income households.

WILLIS: Let's, and let's talk about some of those limits.

FOX: OK.

WILLIS: It's known as LIHEAP, right?

FOX: That is correct.

WILLIS: How much money can I have in income every year to qualify to get this cash?

FOX: It's going to vary from state to state. There are some broad federal requirements. Number one, a state cannot be any more stringent than a limit of 110 percent of federal poverty level.

WILLIS: OK, well, what does that mean as a practical matter?

FOX: As a practical matter, that, I guess, would be in the range of $10,000 to $12,000 a year. I actually don't have the figures in front of me. And I certainly don't want to give you bad information. WILLIS: Well, that gives us a rule of thumb to work with. Clearly, people who are on fixed income would probably be helped by this program.

There is some more good news here. There's your program, there's LIHEAP, but there's also moratoriums in place in most states. If you can't pay your bill, particularly during the winter months, your utility can't necessarily cut off your service, right?

FOX: You're absolutely correct. Most states do have moratoria that run from -- anywhere from December 1 or 15 through sometime in March or early April. During that period, if you can't pay, you're not shut off. However, once the moratorium ends, it's like the click heard around the world. If you're not paying on your bill, there's a very good chance that you're going to be without utility service when the moratorium ends.

WILLIS: And you got to pay that money after the moratorium ends, right?

FOX: That is correct.

WILLIS: The bill does come eventually due.

There's also something I want you to tell us a little bit about called the National Fuel Funds Network. This is another place to go for some cash if you can't pay your bill.

FOX: Fuel funds are private, nonprofit organizations that accept contributions from individuals, from corporations. And they use that money to supplement the LIHEAP program. For example, if a state has a requirement of 150 percent of federal poverty level as the maximum you can earn, if you make -- your household makes 151 percent of the federal poverty level, then you don't qualify for LIHEAP assistance.

That's where the National Fuel Funds Network's member organizations come in.

WILLIS: OK.

FOX: They can provide money...

WILLIS: All right.

FOX: ... for those who might otherwise not qualify.

WILLIS: Now, there are a lot of charities that get involved too. I mean, a lot of people try to help folks who are struggling right now. What are some of the charities that I could appeal to that would help me if I was in this situation?

FOX: There are some that are very well known for their charitable efforts in this area. Salvation Army, Catholic Charities, Lutheran Services, all of which are members of the campaign, and also have their own fuel fund programs to help individuals in need. WILLIS: David, I know that if -- let's say you're not low income. Let's say that you do have some money coming in, but it's not enough to cover these incredible bills right now. You can't simply appeal to your utility, right?

FOX: Well, yes, you can, in a way. The very first step that anyone should take if they're having trouble meeting those bills is to contact their utility. Most utilities have some form of program to assist their customers, because they don't want to shut people off.

They typically will have budget billing plans whereby your payment can be spread out over the course of a year. So that's a help, even for middle-income households.

And quite frankly, as long as you're paying something, the utilities are going to be a lot more willing to work with you.

WILLIS: OK.

FOX: If you simply ignore them, then it tends to become a different story.

WILLIS: Well, that's great advice.

David Fox, thanks for joining us today. We appreciate it.

And this note for all us interest-rate watchers. The Federal Reserve has a new face and a new chairman. It's Ben Bernanke, sworn in this week. If he has the longevity of Alan Greenspan, he'll still be in office in 2024.

The one thing you need to know about him right now is that he's expected to raise rates faster and more often than Greenspan.

Of course, we'll be watching, and we'll tell you all about it.

Up next, that dishwasher may not be working so well. Maybe your car keeps breaking down. I'll show you how to write a complaint letter that gets results.

And later, have you considered buying a dog translator that may be still advertised on late-night television? I'll look at some well- known infomercial products and find out how they really work.

But first, your tip of the day.

(BEGIN VIDEO CLIP)

WILLIS (voice-over): You can save money in the long run with an energy-efficient mortgage. They enable you to finance the cost of a major renovation, like adding solar panels, that will save you energy.

That means you'll have lower utility bills, more cash in your pocket, and therefore qualify for additional mortgage money. And when it comes time to sell, your house will be more marketable. Energy-efficient mortgages are available in all 50 states. For more, check out the Department of Housing and Urban Development's Web site at HUD.gov.

And that's your tip of the day.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

WILLIS: Well, if you've ever used one of those 800 customer service numbers, you've got to wonder what part of the experience is service, the endless voice prompts, countless menus. And who knows how long you're going to be on hold?

When hitting zero doesn't work, there are some tricks to getting through to a real person.

I tried some of them out with Paul English. He's creator of the Web site GetHuman.com.

You have some really fabulous ideas for cutting through the phone...

PAUL ENGLISH, GETHUMAN.COM: That's right, that's right.

WILLIS: ... tree, actually getting to a human being. What is step number one?

ENGLISH: These computers are programmed that if you do something like hit star-zero or pound-pound or something it doesn't expect, the computer gets confused. The first thing it does, it will say to you, Invalid entry. Please try again, in which case...

WILLIS: And then what do you do?

ENGLISH: Ignore it. And that means a good thing. It means it confused it. Do the same thing again. And after you've confused it two or three times, many times it will drop you right into the human queue.

WILLIS: So you just keep at it.

ENGLISH: That's right.

WILLIS: Awesome.

ENGLISH: That's probably the most common technique.

One that someone told me just recently, with tests with a lot of companies is, people been frustrated when they call the company. It says, Press one for English, you know, press 2 for Spanish, whatever. And people think that maybe it should be English by default or whatever.

One really good benefit of that is, if the English line is busy, hit 2 to connect to the Spanish line. All the Spanish operators are bilingual. Many times you connect right through, absolutely.

WILLIS: All right, let's try calling some people...

ENGLISH: All right, sure.

WILLIS: ... and see what we come up with.

All right.

ENGLISH: I'm going to call Amtrak. You ready?

JULIE, AUTOMATED AMTRAK AGENT: Hi, I'm Julie, Amtrak's automated agent. I invite you to visit our Web site.

OK, to check if a particular train is running on time, say "Train status." Or, to get schedule and price information, say "Schedules."

WILLIS: Schedules.

JULIE: Sorry, I didn't get that. I may ...

WILLIS: Schedules. Sched-u-les.

JULIE: Sorry, I didn't understand. Please say "Introduction."

Sorry, I still didn't get that.

(CROSSTALK)

WILLIS: I think we're lost.

Julie, come back.

JULIE: Sorry, I'm having trouble understanding you.

WILLIS: All right, so now we're going to do the shortcut.

ENGLISH: Right. And this is an easy one.

JULIE: Hi, I'm Julie, Amtrak's automated agent. Invite you to visit our Web site, Amtrak.com. Lower fares may be available.

OK, to check if a particular train is...

OK, I'll transfer you to an Amtrak agent. Your call may be recorded to ensure quality.

WILLIS: That was 23 seconds.

ENGLISH: Twenty-three seconds ...

WILLIS: OK. So let's say you get through on the telephone.

But if you have a complaint, how can you be sure you'll get your way?

Janet Rubel is here with the answers. She's the author of "101 Complaint Letters That Get Results."

Janet, welcome.

JANET RUBEL, AUTHOR, "101 COMPLAINT LETTERS THAT GET RESULTS": Thank you for inviting me.

WILLIS: It's good to have you here.

You know, I got to tell you, though, writing a letter seems so old-school. Why not just send an e-mail?

RUBEL: You can send it if it makes you feel better, but e-mails are ineffective. They usually wind up in cyberspace somewhere, floating in the ether, and you never get any resolve to your complaint. You might get an automatic response, but that's it.

WILLIS: Well, that's not too satisfying. So how do you write that perfect letter? I don't think people do it anymore, so they really don't know how to put pen to paper. What's the single most important thing to know?

RUBEL: Know the rules about the product or the service you're complaining about. You should organize your thoughts, get all your documents together, proof of sale, bills, rebate forms, whatever it is, and only send copies. Never send the original unless you're instructed to do so. And then, of course, you keep a copy.

Limit your complaint letter to one page.

WILLIS: Are there key phrases or words that really get results when you're sitting down and trying to write the letter?

RUBEL: The first thing I would try to do is remind the company that you are a good customer. Generally, companies don't want to aggravate their customers.

Second of all, the word "warranty," if that's a problem, "defective product," "unsatisfactory service," those are zingers that get their attention.

And be polite, above all. No obscenities, no threats of lawsuits.

And ask for a date by which the problem can be resolved.

WILLIS: And you also say, you're really big on following the procedure. So if the company has a way of dealing with complaints, you say, don't just fire a letter off to the CEO, go step by step through their process, right?

RUBEL: That's correct. You should always keep a file on your complaint. Get back to the person who promised to do something for you, or to whom you wrote.

If that does not work, then you should follow up, whether that's a phone call, or whether you need to go to a state agency for help, or your credit card company to dispute the bill if your product hasn't arrived after you've ordered it, for example.

WILLIS: That's a real issue, though, is the follow-up thing, because you sort of lose track. I mean, there's a lot of other stuff going on in your life. Do you suggest keeping a little folder with all the information about your complaint? How do you make sure you don't lose track of what's going on?

RUBEL: I would recommend doing what lawyers do, which is keeping what we call a tickler file. You date it, you put your file together, put your letter. And maybe 10 days later, note that you should get -- you should have had a response by then. And then, if you don't have a response, go to plan B, whatever that may be in your case, the state agency complaint, another letter, a call, something.

But don't let it languish, because too much time that elapses is a guarantee to have your complaint never resolved.

WILLIS: Well, Janet, thank you so much for your help today. We appreciate your good advice.

RUBEL: Well, thank you very much.

WILLIS: You're not going to want to miss our next segment. What really works among all those products you see advertised on television?

But first, here are the mortgage numbers.

(COMMERCIAL BREAK)

WILLIS: OK, if you ever lie awake at night, you know this. The airwaves are filled with ads for the latest gadgets and gizmos.

But do they really work? That's a question the March issue of "Real Simple" asks.

Suzanne Rust of "Real Simple" is here to walk us through some of the products.

Welcome, Suzanne.

RUST: Hey, Gerri, how are you?

WILLIS: It's good to see you.

Listen, I look at these ads. Is it worth buying this stuff?

RUST: Well, we're all tempted, you know. At "Real Simple," we decided we were going to put some of these to the test to see, you know, because, when you look at it long enough, it's, like, oh, you know, maybe I do want to try that.

So we narrowed it down to a few things that, you know, we gave a few items to our editors...

WILLIS: All right. (CROSSTALK)

RUST: ... different periods of time to see if this stuff actually worked, if it did any good.

WILLIS: Let's start with this.

RUST: Yes, this is the Windstorm vacuum.

WILLIS: Wow.

RUST: It's got cyclonic force in it ...

(CROSSTALK)

WILLIS: Cyclonic? Really?

RUST: Yes. But, you know, I'm imagining cyclonic. So it's pushing the dirt to the side, and it's just got really strong suction. It's extremely light and easy to fold. It comes apart. And it's bagless, that's its, like, claim to fame. It just comes out. And, you know, you dump it out. You don't have a bag.

WILLIS: And how does I work? Is it worth it?

RUST: Yes, they -- people were very happy with this. And then you can take those apart that removes, that you can use kind of like a, you know, like a handheld vacuum tube. This comes out.

WILLIS: Oh, well, that's pretty exciting.

RUST: So, you know, it's not a bad deal for ...

WILLIS: How much does it cost?

RUST: ... $55.

WILLIS: Fifty-five? That's not too bad.

RUST: Not too bad, right?

WILLIS: Now, your next product, I've actually seen this on TV many times, and...

RUST: Yes, we've all seen this ...

WILLIS: I think this a great idea.

RUST: Yes, I mean, you know, between being in a restaurant, maybe you're struggling for your reading glasses or whatnot, this is kind of like, you know, kind of discreet way of taking a peek. This is the wallet. You know, you do this, and you can look at your mutual funds as well, you know, it lights up down there, and just move along the line...

(CROSSTALK) WILLIS: There's a light and it actually -- it does a great job of allowing you to read small type, maybe...

RUST: Exactly.

WILLIS: ... in a dark restaurant, or...

RUST: So it's lighting and magnifying, and the ...

WILLIS: Check out your investments.

RUST: ... only $10. So, you know, you can't really go wrong ...

(CROSSTALK)

WILLIS: Cheapo.

Now, this, I love. I have to put this on, the Ov Glove.

RUST: Beautiful Ov Glove. The Ov Glove is great because it's extremely heat-resistant. It's got Dupont fabrics like Kevlar Nomex to make it heat-resistant, even, you know, for pots and pans, but maybe even, like, a light bulb you want to take out and you have to wait for it to cool off. These are perfect, you know...

WILLIS: And how much do those cost?

RUST: These are $17. And you can get them...

WILLIS: So that's not much money.

RUST: ... in supermarkets -- no, it's not bad, it's a good investment if you do...

WILLIS: Can you wash these?

RUST: ... a lot of baking. I believe you can, yes. You can touch them and they're ...

WILLIS: Yes, I think they are really handy...

(CROSSTALK)

WILLIS: ... and they're soft...

RUST: ... the cotton inside and a nice sturdy fabric outside.

WILLIS: Looks like a mitten. OK.

RUST: Right.

WILLIS: Now, I got to tell you, this is one of those things, people are always trying to sell you things for your kitchen that you don't need.

RUST: Yes. WILLIS: I think that might be that thing.

RUST: Well, you know, for people who like gadgets, the Batter Pro's interesting. What you're doing with the Batter Pro is, you're going to put your seasoning, and your flour or bread crumbs in the bottom. You put your chicken, fish, veggies, whatever else you like here.

And you're going to basically giving it a shake, you're turning it upside-down.

WILLIS: And I can't do that ...

(CROSSTALK)

RUST: Well, you could. But if you're a gadget freak, you know, this is good. And now the Super Bowl's coming up, so if you've got a lot of, you know, wings to fry or something like that, this is not a bad thing to have, if you've got space in your cupboard.

WILLIS: If you've got space in your cupboard, and that...

RUST: And it's $22.50.

WILLIS: So it's cheap. So...

RUST: Yes, it's not expensive.

WILLIS: ... great Valentine's Day gift.

RUST: Exactly.

This is our friend Dylan. And Dylan -- hopefully -- we have something...

WILLIS: Hi, Dylan.

RUST: ... called the Bilingual Dog Translator, Gerri. And the Bilingual Dog Translator, you put the little gadget around the dog's neck, and it's got a monitor. It was Japanese technology. They've managed to take voiceprints from dogs. And what they're doing is, the dog barks, it monitors the pitch. And you've got about 200 sayings that the translated, you know, the dog's emotions, into little phrases, like...

WILLIS: Like, like, what is your dog...

RUST: ... you know...

WILLIS: ... saying?

RUST: "I'm so frustrated. Why don't you understand me?" or, you know, it just radiates their different moods from happy to sad to greedy, you know, hungry, and greed.

WILLIS: And do people really think this is true? RUST: I think they have fun. I think if you have a pet, you know, it's just one more thing to have with the pet to play with it a little bit. And, you know, Dylan doesn't bark, so I don't know if we're going to actually get...

WILLIS: Darn.

RUST: ... any kind of reading from our gadget today.

WILLIS: Will you talk for us, will you talk for us, mister?

RUST: And dogs that don't bark, it, you know, reads barks, so your dog has to bark a little bit to get it going, but just a fun way to see what mood they're in, you know, where they're -- where they are...

WILLIS: You could see, you could see them talk to each other, right?

RUST: Yes, yes, you can see them communicate.

WILLIS: If you've got more than one dog.

RUST: Yes, and you can, you can -- see, it's just for fun, it's fun.

WILLIS: And do we have the gadget here? Now, how expensive is this, Suzanne?

RUST: This is $40.

WILLIS: It's $40.

RUST: Yes.

WILLIS: And you have to put that on their little collar.

RUST: Yes, you put it on his little collar, like that.

WILLIS: And Dylan's looking very uncertain about that.

RUST: Yes, he's not so sure.

WILLIS: Not too sure whether he likes that or not.

RUST: You know, but it's, it's, it's fun.

WILLIS: And then this is handheld.

RUST: And this is handheld. And if he were to bark, we would see, you know, his little comments, and how he -- what kind of mood he was in today, and...

WILLIS: All right. So 200 different sayings from dogs.

RUST: Yes. WILLIS: It's a limited vocabulary but it's an important.

RUST: It's more than enough, I'm sure, that you want to know from your dog.

WILLIS: Suzanne, thank you for being with us today.

RUST: You're welcome.

WILLIS: I'll be right back with one more look at customer service.

(COMMERCIAL BREAK)

WILLIS: I really enjoyed talking to Paul English about customer service 800 numbers. Now, he didn't have time to tell you that one shortcut to getting a real human being on the line is to yell at the phone. No kidding. Apparently, some 800 service programs, they get the fact that you're frustrated, and they automatically send you to a customer service rep. Just hearing those voices makes my blood pressure go up. Yelling shouldn't be too hard.

And finally, Washington's famed Watergate Hotel is going condo. Developers are turning the hotel rooms into luxurious condominiums, with one bedrooms starting at $750,000. Penthouses are $9 million.

Of course, the Watergate is best known as the site of the break- in that helped bring down the Nixon administration.

Let's hope all those prospective buyers out there saw our show last week on burglar-proofing.

We want to hear from you. Send us your comments, your questions to openhouse@cnn.com. You'll find more on today's guests and topics on our Web site, cnnmoney.com/openhouse.

Thanks for watching OPEN HOUSE. We'll see you here next week.

The day's top stories are next on "CNN SATURDAY."

Have a great weekend.

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