State Bars Company Claiming Police Ties

Washington and several other states have reached a settlement with a Texas company that falsely claimed it was sharing magazine ad revenues with police. PMI Corporation did business as “Trooper Recovery Journal” or “National Enforcement Journal,” and mislead businesses and consumers into believing it was affiliated with a legitimate law enforcement agency, according to Attorney General Christine Gregoire.

Using deceptive telephone calls and other tactics, PMI billed consumers for advertisements they never purchased and told them to call 911 if they had any questions about the solicitation.

The agreement with PMI, its owner and the attorneys general of Washington, Oregon, Texas, Arkansas and Wisconsin forces the firm to stop making any solicitation calls in the five states. PMI also has paid $40,000, to be divided among the states for consumer restitution, costs and fees.

Gregoire’s office received 15 written complaints from Washington consumers regarding PMI. One Lynnwood man will receive restitution in the case.

Consumers may call the Attorney General’s office toll-free at 800-551-4636, or for the hearing impaired, 800-276-9883, to file a complaint or request information on how to handle telemarketing and fundraising calls.

Consumers may also find out if a charity is legitimate by calling the Secretary of State’s office at 800-332-4483.

Super Bowl prognosticator

For some, Sunday’s football game was important for deciding the champion of professional football, and any number of bets.

For investors, the outcome of Super Bowl XXIX was important solely for its prognostication value. Although it had a mixed record last year, the Super Bowl has been an uncanny predictor of the stock market.

The Super Bowl Predictor stems from 1978, when New York Times sportswriter Leonard Koppett wrote a humorous column noting that the stock market generally rose in years when the Super Bowl was won by teams that had belonged to the original National Football League. When teams that had belonged to the old American Football League won the big game, stocks had down years.

Through 1994, the Super Bowl Predictor had correctly predicted the movement of the Dow Jones industrial average in XXV of the XXVIII years that the Super Bowl had been played, or 89.3 percent of the time.

Because an original NFL team, the Dallas Cowboys, won the 1994 Super Bowl, the Predictor called for an up year for stocks. The Dow industrials eked out a 2.14 percent gain (not counting dividends). Standard & Poor’s 500 stock index and the New York Stock Exchange composite index were down for 1994, so the predictor erred on those indices. Still, the Super Bowl accurately predicted the direction of these broader indices in 24 of 28 years - an 85.7 percent success rate.

Now that the San Francisco 49ers, an original NFL team, are the 1995 champions, believers in the Super Bowl Predictor know to expect an up year in stocks.

But before betting the ranch, remember that markets, like footballs, can take funny bounces.

Money-handling freebies

You needn’t spend a lot to learn a lot about handling your money. Indeed, there are a number of free publications that can help. Here are some useful freebies that I’ve come across recently:

“The State Tax Laws” is a thorough, 112-page guide to each state’s income taxes, property taxes, sales taxes and estate or inheritance taxes. The guide, produced by the Scudder group of mutual funds for its AARP Investment Program, is designed for older investors but is informative no matter your age.

It shows tax rates for each state and how each treats income from wages, Social Security, private and government pensions and investments. It shows, for example, that Washington is one of only seven states that does not tax income, and that its Homestead Exemption on property taxes kicks in when the owner hits age 61. For a copy of “State Tax Laws,” call 800-322-2282, extension 8238.

“Managing Your Debts: How to Regain Financial Health” suggests several steps you can take to get out of big debt trouble. It also warns about credit-repair scams and other pitfalls for those in debt. The brochure was produced by the Consumer Federation of America and several other organizations. To get one, send a stamped, selfaddressed envelope to: CFA’s Managing Your Debts, P.O. Box 12099, Washington, D.C. 20005-0999.

“Social Security … What Every Woman Should Know” is a booklet from the Social Security Administration. It explains Social Security benefits and coverage for women, whether they have worked outside the home or whether they qualify for coverage as the spouse of a worker. For a copy, call 800-772-1213. Be prepared: You may be kept on hold for a few minutes.

“A Plain & Simple Guide for First-Time Home Buyers” offers basic information about getting a mortgage. It explains mortgage loan terms and provides guidelines for how much income and down payment are required to qualify for a loan. You can get a copy from the Mortgage Bankers Association of America at 800-599-7735.