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We live in an era of cheap, disposable goods. My closet full of clothing, much of it rarely worn, even though I sort through my wardrobe about once a year to eliminate items I no longer need, is a good indicator of this situation. For a good period when I was a kid, I wore hand-me-down clothes — as the eldest child, I received clothing from a family friend — and when an item became damaged, my mother fixed it with her sewing machine.

Prices for clothes have certainly increased over the last few decades, but clothing is not expected to last. When a piece of clothing becomes damaged, it’s easier and cheap enough to replace.

Broken ToasterBroken kitchen appliances, lamps, and other household devices past their warranty periods can’t be fixed with a sewing machine. Many would need specialized care by a professional, and with today’s disposable consumer culture, many people just opt for replacement rather than finding a repair shop and paying nearly as much money as they would to buy a new item.

Additionally, retailers and manufacturers have embraced the concept of planned obsolescence. To keep manufacturing costs low and to maximize profits, there is little concern for making products that last as long as their owners. This is a primary feature of high technology — a house phone sold fifty years ago may still function properly today, but a cell phone purchased five years ago not only doesn’t keep up with the latest technology, but it likely doesn’t work at all. Furniture built in the eighteenth century was made to last in a family for generations; IKEA furniture might last a few years under regular stress of use.

In Amsterdam, there is a small movement in opposition to this disposable consumer culture. The community has come together to repair its members’ broken items. Volunteers bring their tools and sewing machines to an open building several times a month and offer to fix any broken item brought to the gathering. This Repair Café helps reduce waste by encouraging reuse of broken items, and makes fixing an affordable alternative to replacement.

The government in the Netherlands, private groups, and individual donors have helped the Repair Café Foundation raise $525,000 over the past few years, and these funds have helped the organization create these gatherings at various locations across the country. These Repair Cafés provide a chance for consumers to make better use of their goods and for volunteers, particularly those with repair skills that might no longer be in demand, use those skills for a good cause.

Would Repair Cafés; be welcome in the United States? It’s not exactly a profitable business venture, and as such, is unlikely to draw much attention. The model, however, could easily be recreated, perhaps in low socioeconomic neighborhoods, to provide a money-saving alternative for spending money to replace slightly damaged items. Strong marketing encouraging consumers to exist in a cycle of buying and replacing comes at a price to retailers and manufacturers. If these expenses were redirected towards making better, durable products without planned obsolescence, consumers might lose the desire to constantly have new items, and would be able to hold onto the same products for a longer period of time. There would be less waste. Companies and their shareholders would find they have more loyal, life-long customers. Customers would shop with a focus on the differentiation in quality rather than with their tunnel-vision focused solely on price. Companies that build their products to last would succeed while those focused on the short-term would fail.

Could Repair Cafés be an answer to the consumer culture of disposable products? Would the availability of free repairs in the United States change the way consumers buy goods, and thus force companies to build products that are made to last rather than go obsolete? Is the trend towards disposability reversible at all?

Photo: phozographer
New York Times

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Several readers contacted me yesterday with this piece of good news. After months of promising its customers to launch the new feature soon, ING Direct now offers remote check deposit. The delay was likely caused by the efforts that resulted in Capital One purchasing ING Direct USA. Previously, in order to deposit a check into an ING Direct savings or “Electric Orange” checking account, you would have needed to mail the check to a deposit address, deposit the check in a local bank branch and transfer the money to ING Direct later, or find an ATM that allowed deposits to the online bank.

Although paper checks are heading towards obsolescence and electronic person-to-person transactions are becoming more mainstream, some people still find paper checks convenient. For self-employed individuals and business owners, checks from clients are still a very common way of doing business.

Remote check deposit, where you do not need to visit a bank to deposit a check or send it through the mail and wait, is made possible by the “Check 21″ law. With the advancement of technology, an image of a check is just as legitimate as the check itself. In the last decade, banks have been providing scanners to business customers to securely scan and email check images for deposit.

This was an expensive proposition. In recent years, the process has improved, thanks again to technology. The cameras on cell phones now have enough resolution for these purposes. Rather than sending its customers large pieces of hardware, banks offer mobile phone applications — often for both iOS and Android — that use the phone’s camera and a secure internet connection to make remote deposit as easy as snapping a photograph or two.

How ING Direct’s remote deposit “CheckMate” works

ING DirectI wanted to try ING Direct’s remote deposit service, but without a check written to my personal account handy, I wrote myself a check for $10, withdrawing from my local Wells Fargo account. I downloaded the ING Direct app for my Android phone and configured my account. As expected, I needed my customer number, PIN, answers to several security questions, and recognition of my secret image, similar configuring online access on a new computer.

Once logged in, “Deposit” was an option at the top of the screen, alongside my account overview and transfers. To initiate remote deposit, the software required me to read and accept the CheckMate terms and conditions. The terms included a warning that deposits will be held by the bank for up to 5 business days. This is typical for check deposits to ING Direct, so it’s not completely unexpected. It is unfortunate, as even check deposits are often considered electronic transactions. The hold doesn’t apply to payroll checks or checks from the U.S. Treasury like federal tax refunds.

Check deposits using the ING Direct software are limited to $3,000 per check. Compared with Chase Bank’s $500 limit, this is an improvement, but could still make the service useless for some customers.

Once I agreed to the terms, the software prompted me to take a photograph of first the front of the check then the back of the check. It was difficult to focus on the back of the check, so I tried twice, changing the lighting environment to try to get a photograph that was more precise and included a legible copy of my signature.

After confirming both photographs, I entered the amount of the check and selected the account in which I wanted the $10 deposited. At the end of the process, I tapped the button to deposit the check and received this response:

All done. Your deposit will be available April 30. Hang on to your check until you get an email saying it posted. Then, void it.

ING Direct did send an email notification to say that my submission was successful, but this notification did not indicate that the funds were posted. For this, I’ll need to wait for a later email. I’ll update this article once I receive the email to indicate how long it takes to post $10. I checked my account online immediately after completing the deposit, and this appeared in my transaction history:

ING Direct Deposit

Notice how the total “Amount” is zero; the $10 is not available for me to use yet.

How to deposit checks without a cameraphone

The above process depends on having a mobile device with a camera and an internet connection. Not everyone has a smartphone or web-enabled, camera-equipped tablet. I didn’t see it at first, but ING Direct provides an option to remotely deposit checks without a camera. After you endorse your check for deposit, take a photograph using a digital camera of the front and back of your check. You could also use a scanner. Save the front and back as two separate JPG images. Access your account online, and click on “Image Upload” under the “Transfers & Deposits” heading. The website will take you through a process similar to the above.

Overall, whether using a mobile phone or your computer, depositing a check with ING Direct is now a simple and convenient process. If receiving checks is still a part of your life, and you’re looking for a way to exclude high-cost local banks from your personal finance system in favor of online banks like ING Direct, remote deposit is a necessity. ING Direct has made good on their promise to offer this service to their users.

Hat tip to Daniel from Sweating the Big Stuff and many others, including the bank itself, who brought the news to my attention.

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Will You Buy the iPad 3?

This article was written by in Consumer. 16 comments.

All signs are pointing to Apple releasing the latest iteration of its popular tablet this coming week. I gave in last year and purchased the original iPad, and I made this decision just days before the iPad 2 was announced. Now, tech geeks are expecting the iPad 3 to hit to streets this week. The iPad was my first Apple-branded product. I’ve never been a fan of Apple’s computers, with my objections stemming from everything from the keyboard layout to the graphical user interface. Nevertheless, I’ve used the iPad almost daily.

I won’t upgrade yet I’m satisfied with my original iPad, so I see now reason to spend money on the latest device.

iPadAre you planning to buy an iPad 3?

Here are a few articles I’ve discovered recently that I’d like to share.

Neal from Wealth Pilgrim has reviewed the social lending website, Prosper. Peer-to-peer and social lending is an intriguing idea. I think tools like Prosper, helping borrowers and lenders work with each other without layers of third parties like banks, are needed. It’s slightly more efficient, but not free from regulation. Without a trusted party between borrowers and lenders, large-scale borrowing and lending would be risky. At the same time, most financial institutions have too much overhead.

Social lending isn’t perfect. I couldn’t loan money to a friend at a decent rate through either Prosper or Lending Club because the state in which he lives has anti-usury laws that prevented a loan at the interest rate he qualified for. I couldn’t easily and directly invest in a basket of loans through a service because the state in which I live wasn’t ready to allow this type of investment opportunity.

Jim from Bargaineering explains how to print USPS postage at home for free. I didn’t take this approach a few years ago when I was selling old text books online through Amazon.com; media mail rates was not available for online printing. Now that media mail rates are available, it is easy to save money printing postage online for those who ship books, CDs, and video often.

The latest Carnival of Personal Finance was hosted earlier this week on Well-Heeled Blog. The Carnival included a number of excellent personal finance articles, as well as my article about modifying your behavior to improve your finances. The Carnival followed the Little Price’s journey to financial enlightenment. It’s always fun to read a Carnival that has an entertaining theme.

Photo: Veronica Belmont

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As more consumers in the United States are jumping on the smartphone and tablet bandwagon — personally, I contribute to this mess with one of the latest phones with Android software as well as a first-generation iPad — there’s less room in the limited airwaves for customers’ needs to access the internet and occasionally make telephone calls over mobile networks. Mobile carriers are doing what they can to preserve what remains of the spectrum, usually by increasing prices or limiting bandwidth.

The idea behind the peak oil movement is that in the future — and sometime soon — the world will not be able to efficiently produce as much oil as the citizens of the world need to consume, and due to the imbalance between supply and demand, prices for oil (and thus everything else that relies on oil) will skyrocket. Peak oil has been proven difficult to predict.

TabletUnlike peak oil, wireless carriers know how much spectrum they have left before they can’t support any additional traffic over the air. The situation is similar to real estate. There’s only so much available land for construction, and as the available land in any area with adequate demand is sold, the pressure of the lack of supply drives prices up. Dish Network, for example, has a significant amount of unused spectrum, and it would like to sell what it isn’t using to a wireless provider that desperately needs the spectrum to satisfy its customers.

As companies need to devote more of their resources towards increasing spectrum — whether through consolidation attempts in the industry like AT&T’s purchase of T-Mobile — or through buying spectrum from other owners at a high price — and as companies use pricing to limit customers’ use of the spectrum, the cost for a family or an individual to receive the same level of service is going to increase.

Save money on your cell phone bills

You can keep your cell phone bills in check:

  • Use a service like Validas to make sure you’re paying for the best mobile plan for you.
  • Compare prices across carriers. Don’t just consider the mainstream plans with the major carriers; pre-paid mobile phone plans could cost less.
  • Consider skipping internet-enabled devices. If all you need to do is talk, you can save yourself the expense of the latest high-tech phones and stay on a less expensive voice plan.
  • If you have other telecommunication services, like cable television and home phone, consider bundling these services to save money.
  • Call and ask for a discount. Sometimes, you can get a price break just by asking. Don’t threaten to leave, though, unless you’re willing to live up to that promise.

I’m currently paying over $100 per month for my mobile phone service with Verizon Wireless, which includes my phone with 4G smartphone service as well as a 3G service for my iPad through a separate device. How much do you pay for your mobile phone service? Are you prepared for this cost to increase in the next year or two as companies fight over remaining broadband spectrum?

Photo: @iannnnn
CNN Money

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Buy a Humidifier to Save Money

by Flexo

This weekend, I purchased a humidifier supposedly large enough to affect the relative humidity level throughout my apartment. I have a loft area, making heating and cooling my apartment evenly difficult, and I figured I’d need a large humidifier to affect the bulk of my square-footage. I purchased the humidifier mainly to reduce static electricity. ... Continue reading this article…

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Top Ten Personal Finance Start-Ups

by Flexo

The financial industry has been mostly static for centuries, with companies doing business and offering services not much different from how the companies operated for earlier generations of consumers. When there is innovation in the industry, it generally comes from smaller companies and entrepreneurs looking to fill a need that isn’t covered by larger, less ... Continue reading this article…

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TurboTax 2012 Online Review

by Flexo
tt-featured-img

This is a relatively long review of TurboTax 2012 Online, software for completing tax forms and submitting them to both the federal and state authorities. I’ve updated the review to reflect the changes to the software in 2012 (for filing 2011 tax returns). Recently, the IRS began accepting federal tax returned filed electronically. Even before ... Continue reading this article…

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Podcast 139: Buying and Owning a Mac: Secrets Apple Doesn’t Want You to Know

by Flexo

Today on the Consumerism Commentary Podcast, Bryan J Busch talks to Jonathan Zschau, author of the book Buying and Owning a Mac: Secrets Apple Doesn’t Want You to Know. They discuss the staggering frequency of commercials in daily life, how it’s easier to avoid than resist the temptation to shop, and the convincing argument that ... Continue reading this article…

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