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Open House

Wal-Mart Will Now Offer Debit Card to Customers; Hidden Hotel Fees; Water Sense

Aired June 23, 2007 - 09:30   ET

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

GERRI WILLIS, HOST: Hello. I'm Gerri Willis, and this is OPEN HOUSE, the show that saves you money.
Nothing is worse than picking up your hotel bill after a relaxing vacation and finding fees you never expected. Coming up, I'll show you how to fight back.

Plus, how to save both water and money at the same time.

But we begin with the world's largest retailer.

Wal-Mart is opening 1,000 Wal-Mart money centers by the end of next year. So now, besides buying anything from socks to sheets to cereal, you can go to Wal-Mart to cash checks, pay bills and transfer money. Now, Wal-Mart says it will offer these services for less than competitors; therefore, saving customers money.

And to top it all off, Wal-Mart says it's going to offer something called a money card. This will be a prepaid Visa card that customers can load up at a Wal-Mart banking center and then use anywhere like a credit card, until the balance runs out, of course, and then you have to reload.

But is it a good thing?

Here to help us sort it out is Greg McBride of bankrate.com.

Now Greg, you say that there are good things about this money card. What are the positives?

GREG MCBRIDE, BANKRATE.COM: The positives, Gerri, are the fact that it helps somebody have the convenience of having that paycheck loaded on to the card and reducing the risk of carrying around a large amount of cash. It also shaves some of the cost off of cashing that paycheck at a convenience store or a check cashing outfit that could charge considerably more.

WILLIS: Yes, I think the issue is paramount here. A lot of people find that they're doing that payday check-cashing thing that they end up getting robbed.

So one of the downsides, you've to agree with me here, Greg, are the fees associated with this thing. Check this out.

Issuance alone costs $8.94. When you put more money on it, it's $4.64. ATM fee, $1.95. Monthly maintenance fee, almost $5. I've got to tell you, that's going to erode the money you put on this card pretty darn quickly.

What do you think?

MCBRIDE: I agree with you, Gerri. I mean, I agree with you.

I mean, as with any financial transaction or any product or service, you always have to look at the fees and ask yourself, does this fit with my lifestyle? Is this going to work for me?

You've highlighted the ATM fee, the monthly maintenance fee if you don't load at least $1,000 on to the card. I have got another one for you. They charge you $2 if you call customer service to either check your balance or ask a question instead of looking online.

So, again, another one that could really add up and erode some of that savings that you're garnering elsewhere.

WILLIS: You know, one of the things I really object to here is that you're not really building credit. I mean, the advantage of having a regular, old-fashioned banking account is that you get your name known in banking circles, you establish a credit history. People get to know you so that ultimately you can borrow money, get a credit card, some day you'll get a mortgage. But this kind of thing really doesn't have any of those advantages.

MCBRIDE: It really doesn't. This is not geared for the banking population, consumers that have a banking relationship and are on the pathway to establishing credit and formal financial relationships. Instead, this prepaid card, your balance essentially sits idol until you spend it, unlike with a bank account, where you could be earning interest in that interim until that money ...

(CROSSTALK)

WILLIS: You could be earning on your money instead of paying it out, absolutely.

There's some 10 million people out there that don't have a banking account, and it can be tough convincing them to get into the system.

Do you think that the banking industry is doing enough for these folks?

MCBRIDE: I think the banking industry has really awakened to the potential growth market that unbanked households represent. The fact that growth is really the name of the game in banking and the fact that there's so many intense competition is really leading to a lot of innovation in this area. We're seeing not only the prepaid cards and the expansion of check cashing, but everything up to mortgages geared for households that either don't have existing banking relationships, or many of the immigrant population that are new to this country and don't have those established relationships.

WILLIS: Right. Well, they're stepping up it a little bit, but I think more can probably be done.

Greg McBride, thank you for joining us today.

Getting a bank account even if you don't have one is critical. It establishes your financial identity, what you'll need down the line to buy a house or take out a loan.

Here's how to pick one right for you.

Look for banks that pay interest on your checking account and see if they'll waive any monthly account maintenance fees. Make sure the bank is a member of the FDIC. Now, that protects you if the bank goes out of business.

And remember, convenience matters. Pick a bank with plenty of ATMs in your neighborhood. Using another bank's ATM, the average cost is $1.64. Well, that adds up quickly.

And finally, think about this -- the best bank for you, well, it may not be a bank at all. Credit unions often offer better deals to members.

Coming up on OPEN HOUSE, ways to save water and money in your home.

Then, how to complain and get exactly what you want.

And don't you hate those hidden fees on your hotel bill? How to read between the lines.

But first, heading to that hotel by plane? Some things you need to know.

Here is your "Tip of the Day".

(BEGIN VIDEOTAPE)

WILLIS: Everyone agrees you save when you buy your airline tickets on the Web, but how much? Farecast.com offers fare predictions free of charge.

Simply plug in your departure and destination cities, your desired dates of travel and cabin preference. You'll get a fare prediction for the next seven days as to whether it will rise, drop or stay the same, along with a confidence rating, average reported fare change, and a buying tip.

You'll also get a fare history, a graph plotting the fare each and every day 90 days back. And while sites like Orbitz, Expedia and Kayak are great ways to view comparison rates for competing airlines, keep in mind the cheapest fare may be directly from the airline itself.

That's your "Tip of the Day".

(END VIDEOTAPE) (COMMERCIAL BREAK)

WILLIS: OK. We've all been there. You go to check out of your hotel and your bill is chock full of mysterious charges. We spent about an average of $1.7 billion -- yes, billion -- on hotel fees this summer.

Here to expose all these secret fees is Tod Marks. He's a senior editor with "Consumer Reports." And he's joining us from Yonkers, New York.

Tod, great to have you here.

I want to start with the thing that drives me so crazy, which is resort fees. You go to some fancy, schmancy hotel, and they start billing you for extra stuff that you think should be included in with the price of the room.

TOD MARKS, "CONSUMER REPORTS": Well, yes, you'd think that when you call a hotel a "resort," that you would expect it would have nature trails, golf courses ...

WILLIS: Right.

MARKS: ... a pool, tennis courts, things like that, and that would be all inclusive. But lo and behold, more and more hotels that bill themselves as "resorts" are charging what they call a resort amenities fee. Whether or not ...

WILLIS: Right. How much is that?

MARKS: ... you use it.

WILLIS: Yes. How much is that?

MARKS: Yes. It can be anywhere from $12 to $40 a day. And again, the fee can be applied whether or not you use those facilities at all.

WILLIS: Right. It's crazy.

OK. Let's talk about minibars. That's another thing that drives me crazy.

MARKS: Sure.

WILLIS: I have heard -- now, you tell me if this is true -- that if you accidentally knock into the minibar, you can incur charges. How is that possible?

MARKS: Well, more and more minibars today are being equipped with motion detectors.

WILLIS: Really?

MARKS: Yes, absolutely. WILLIS: That's crazy.

MARKS: It is. But when you think about a minibar, a lot of people think of those little refrigerators with the key and the lock and that whole thing. But you know what? At a lot of hotels, the minibar may actually be a big basket of goodies that they put on top of the chest of drawers.

WILLIS: Right. You know, and I hate that so much, because, you know, you walk in the room, you see the food sitting there, the chocolate, the bananas, the fruit, the this, the that. And you're kind of tempted -- you know, you see it all the time. It's crazy.

I've got to get you to the Internet and the phone charges.

Hey, what is up with that? Shouldn't Internet be free?

MARKS: Well, you know what? The higher the -- fancier the hotel you go to, the more you're going to pay for. So, some budget and moderate-priced hotels, typically you'll get high-speed Internet access for free. But as you move up the hotel food chain, you'll find yourself paying anywhere from $10 to $20 a day for those connection fees.

WILLIS: What do you mean as you move up the hotel chain?

MARKS: More luxurious. When you go from budget hotels and moderate-priced hotels, where this stuff is free -- when you go to upscale, luxury and then super-fancy, you're going to incur more of those charges. You'd think just the opposite.

WILLIS: I think they figure you can just afford it. That's hilarious. OK.

MARKS: Yes.

WILLIS: Let's talk about cancellation fees. Look, it used to be you could cancel 24 hours ahead, no problem. Not so easy now.

MARKS: No. As a matter of fact, most hotels required a cancellation period of between 48 and 72 hours. It used to be, like you said, 6:00 the night before, cancel, no problem.

WILLIS: Right.

MARKS: Now if you wait, you could forfeit one day's actual payment. A whole day. That can be a lot of money.

WILLIS: Let's talk about my favorite topic, complaining. I think the best time to explain about this stuff is before you actually book the room. Ask about these fees as you're making your reservation.

MARKS: Absolutely, the most critical thing to do is at the time you're getting a price quote or you're booking the room, ask the reservation clerk in no uncertain terms, please tell me if there are any other fees in addition to my room fee and my sales tax. You must ask that to avoid a lot of surprises later on, because it's hard to get those charges reversed.

WILLIS: Absolutely.

Grab that pen and paper. It's time for the list.

Know what to look for. Inquire about all fees besides room and sales tax when you make the reservation. Watch for rising fees.

Check out the cancellation so you don't get penalized. The rule of 24 hours before check-in is no longer the case in many cases.

Also, if you're using the phone or the Internet, know the rates before you sign on. And beware the minibar. Many are equipped with sensors and have restocking fees, even if you're just looking.

Finally, complain ASAP if you have any questions or want to dispute any of the charges.

Speaking of which, how to get what you want when you want it. We're going to show you the right way to complain.

Then, save water and money at the same time. A way to do both starting today.

But first, your mortgage numbers.

(COMMERCIAL BREAK)

WILLIS: We're all trying to do our part to go green, but there are small eco-friendly fixes you can do in your home right now in less than one day to conserve water and save money at the same time.

Ed Del Grande, hey, he's one of our favorite handymen, and is the author of "Ed Del Grande's House Call".

Welcome, Ed. Good to see you again.

You know, I understand that people spend about $500 every year on their water bill and they want to save some money. What's the best thing to do?

ED DEL GRANDE, AUTHOR, "ED DEL GRANDE'S HOUSE CALL": Well, the best thing to do is really do quick fixes around your house, like upgrade your toilets, your faucets and your showers.

WILLIS: But start with the showers.

DEL GRANDE: Well, you know, the showers are the place to start.

WILLIS: You know, because people complain that these new showerheads, they're not doing the job when it comes to actually delivering strong flow. But you say you can actually pick a good product.

DEL GRANDE: Here's the whole deal. And I'll explain it right from start to finish.

The government regulates you can use 2.5 gallons, but these new eco heads actually use two gallons. But the trick is to get people to use them. Well, the manufacturers ...

WILLIS: And this is the old-fashioned ...

DEL GRANDE: Yes.

WILLIS: This is the old school showerhead right here.

DEL GRANDE: This is the old school one. I mean, this is going to save you some water, but it may not deliver the power that you need.

So this is what the manufacturers are doing, and it's very clever.

WILLIS: Hey, this is the new one. Look at this. This is amazing.

DEL GRANDE: Yes, they redesigned it. What they've done is they've increased the velocity of the flow to it, Gerri.

And look at that. I mean, you could almost see the power between the two. And once you get this thing running, this will actually use only two gallons of water, and it will give you the strong shower. So why go with the government regulations when you can beat them?

WILLIS: Let's install this thing right now. Do I just like ...

DEL GRANDE: Well, here's what you've got to do ...

WILLIS: ...take this thing off? What do I do?

DEL GRANDE: Yes, this will be on your wall. We have it coming up here for a display, but this would be your wall. Very important. Protect your fitting in the wall so it won't break.

WILLIS: Because that would be a nightmare if you broke it off.

DEL GRANDE: Yes. Then you ...

WILLIS: And then you'd have to call in some professional.

DEL GRANDE: Have to call me up.

(CROSSTALK)

DEL GRANDE: But here's the trick.

WILLIS: Yes.

DEL GRANDE: You want to back off. And backing off means you're supporting that shower arm coming out of the wall. Now you just get your other pliers and wrench, and now you loosen it up, and you can take that off with your hand if you'd like.

And then the showerhead is completely removed. That simple.

WILLIS: All right, we're going to ...

DEL GRANDE: Well, before that -- no, see, that will leak. So what you want to do is get some teflon tape.

WILLIS: Teflon tape.

DEL GRANDE: Teflon. It's special tape made just to seal up threads. Now, see how I'm going around it?

WILLIS: Yes.

DEL GRANDE: And now, Gerri, feel that difference when you go to put it on. You can feel it sealing right up.

There you go.

WILLIS: I've got a future, Ed. If this doesn't work out for me, I know what I can do next.

DEL GRANDE: Absolutely. Hey, you know, there's always room in my plumbing truck. So we can get to work tomorrow if you'd like.

WILLIS: All right. Ed, I've got to move you on, because we're going to do so much here.

DEL GRANDE: Sure.

WILLIS: And I want everybody to get the best advice.

Let's talk about faucets, OK? You've got some great ideas for saving water with faucets.

DEL GRANDE: All right.

With faucets, every faucet has what is called an aerator right at the end there. Now, you can take off your present aerator on the faucet.

Right now they use about maybe two gallons. So you can get water-saving aerators that look like that.

Now, see the inside there, Gerri?

WILLIS: There's like four little holes here.

DEL GRANDE: Yes. Well, because it's very tiny, that means it's really going to restrict the water. But the water-saving aerators will increase the velocity while cutting down your water use. So just like the showerhead we installed, once you install that aerator into place, you have a water-saving faucet as well.

WILLIS: Let's talk about water sense. There is a new standard out there from the Energy Department, just like ENERGY STAR, but it's for toilets? Is that right? OK.

DEL GRANDE: Well, we have mow star toilets on the market. And what the WaterSense means is that it's going to use less water -- remember, the government regulation on toilets is 1.6. These WaterSense toilets use less than 1.3 gallons, but the trick is the manufacturer has them flushing at the top end of the testing. They do special testing for toilets, so a WaterSense toilet has to flush strong, but save water over the government standard.

WILLIS: Ed, as always, great information. Thank you so much for being with us today.

DEL GRANDE: It's always my pleasure.

WILLIS: Time now for the list. Save some money and the Earth.

Upgrade to a water-efficient fixture such as an eco-friendly showerhead and aerator faucets. And green your toilet. If you're remodeling, consider putting in a WaterSense toilet.

Taking these steps could save you 15,000 gallons of water a year and a ton of dough.

As always, if you have an idea for a "Weekend Project," send us an e-mail to openhouse@cnn.com. And if you want to check out this "Weekend Project" again, check out our Web site, cnn.com/openhouse.

Up next, learn how to complain and get exactly what you want. Good idea, huh?

But first, the most expensive city in the world in this week's "Local Lowdown".

(BEGIN VIDEOTAPE)

WILLIS (voice over): Long live Moscow, if you can afford it. Russia's capital is the most expensive city in the world for the second year in a row.

JEANNE SAHARDI, SR. WRITER, CNNMONEY.COM: What they did is they used New York as a base and determined Moscow to be 34 percent more expensive, taking into account the cost of housing, transportation, food, clothing, household goods and entertainment.

A luxury two-bedroom now rents for the equivalent of $4,000 a month. A CD costs $25, and a regular cup of coffee will run you more than $6.

At the other end of the spectrum, though, is Asuncion, Paraguay. The cheapest city of those surveyed (INAUDIBLE). It's almost two- thirds less expensive Moscow and half as expensive as New York.

WILLIS: And that's your "Local Lowdown".

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WILLIS: Are you sick and tired of poor service but don't think there's anything you can do about it?

We talked earlier with a man who doesn't take bad service lying down.

Mel Stein is the author of "How to Complain."

(BEGIN VIDEOTAPE)

WILLIS: All right. So here is my bottom-line question. If you're so good at complaining, what's the best thing you ever got by complaining?

MEL STEIN, AUTHOR, "HOW TO COMPLAIN": I actually got a totally new car, replacement car, for a car that had 30,000 miles.

WILLIS: That's impressive. How did you do it?

STEIN: This car just kept using oil and oil and oil, and I complained and complained. And this complain was two years.

And eventually, I spoke to a guy and I said, you know, "I need a new car." And he said, "I can't give you a new car. It's too old." I said, "But it wasn't too old when I started complaining."

So, anyway, we battled on and we battled on. And eventually, eventually they got so fed up with me they just gave me a brand new car. So that was my triumph.

WILLIS: A whole new car.

STEIN: Whole new car.

WILLIS: That's amazing.

STEIN: And it's a good car.

WILLIS: That's impressive.

OK. So now we'll take you seriously on your tips.

Let's talk about the best ways to complain. You say be polite.

STEIN: I think you have always got to have the high moral ground, because if you are complaining about something which really isn't justified, just because you want to get something for nothing, that's wrong. So you have got to have justification, you have got to be polite, you've got to be calm, and you have also got to be complaining to somebody who can do something about it.

WILLIS: And that's a real problem, though, Mel. How do you find that right person?

STEIN: Well, it is difficult. You've got to persist. I mean, I've got a story. I very recently dealt with my mother- in-law's estate, and one of the letters I got was from a bank, and it was signed by somebody. I thought, this is great, they have a direct phone number.

So I phoned the direct phone number. And very quickly, I realized that I was actually talking to a call center in India.

And I spoke -- I said, I really want to speak to this guy. I said, he sent me a letter. That's very nice of me. And eventually, they confessed that this man whose signature went out on all of these letters from this bank didn't exist.

WILLIS: He didn't exist at all?

STEIN: Didn't exist at all. He was just a signature on the letter.

WILLIS: How frustrating is that?

STEIN: So I wrote to the chairman of the bank, and I said, "Listen, do you know that you're sending out letters under a name of somebody who is fictional?" So I got phone call from the chairman of the bank, very apologetic, sorted it all out, paid for -- waived all the charges I was complaining about.

So that's an example of somebody that can do something about it.

WILLIS: Is it better to write a letter or handle it by telephone?

STEIN: It's always better to create a paper trail. I mean, at the end of the day, if you've got a paper trail, you can actually demonstrate. If you are actually making phone calls, always write down the name of the person you're speaking to.

WILLIS: And you have to complain early, right? You've absolutely got to do it early in the process rather than later.

STEIN: Oh, yes. I mean, if you're having a meal, for example, and just say the soup was cold and you do nothing about it, and you get to the end of the meal and you start complaining, they're going to think you're trying to avoid paying the bill. But if you complain contemporaneously, it's fine.

What you want to do is actually to get what you've actually paid for. And from the supplier's point of view, they should be giving you that because they want to keep you as a customer. Because you know what? You'll actually forgive bad service if people acknowledge it and apologize.

WILLIS: That's true. It always pays for the company itself to do the right thing.

STEIN: Absolutely.

WILLIS: Mel Stein, thank you for joining us today.

STEIN: My pleasure.

WILLIS: Appreciate it.

STEIN: Thank you.

(END VIDEOTAPE)

WILLIS: As always, we thank you for spending part of your Saturday with us.

OPEN HOUSE will be back next week, right here on CNN. And you can catch us on HEADLINE NEWS every Saturday and Sunday at 5:30 p.m. Eastern Time.

Don't go anywhere. Your top stories are next in the "CNN NEWSROOM".

Have a great weekend.

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