The best advice is to only use debit cards in ATM machines. Maybe with all this fraud, the banks will go back to offering plain old ATM cards.

The Student PIRG Student Debt Alert campaign has launched a new and dizzying debt clock, where you can watch student debt mount up.

Get your fellow students to participate in the Debt Clock - and you could win 200 small ball-and-chains to attach to your graduation caps. Organize your commencement to take aim at the irony: college graduates beginning a life of opportunity that is limited by record amounts of deep student debt.

Today PIRG released its 20th annual Trouble In Toyland report, documenting choking (small parts, balloons), strangulation (yo-yo balls), noise and toxic hazards found in children's toys. We also petitioned the Federal Trade Commission to investigate whether toy companies are violating deceptive advertising rules by claiming toys are free of the toxic chemicals known as phthalates when it turns out that they are not, according to independent lab tests we commissioned. From the FTC letter:

The FTC Act gives the Commission the power to bring law enforcement actions against false or misleading marketing claims, including environmental or “green�? marketing claims. The “phthalate-free�? label qualifies as an environmental or green marketing claim, as the label implies that the product is less toxic than products containing phthalates.

Phthalates are a class of chemicals that pose serious reproductive and cancer threats and have been banned in the European Union, although U.S. regulators haven't acted. Six of eight toys labeled "phthalate free" contained the toxic chemicals. We also separately petitioned the Food and Drug Administration over hazardous chemicals found in children's nail polish according to their labels (we didn't test the nail polish):

Play cosmetics — cosmetics intended for children under 14 — must conform to the requirements of the Federal Food, Drug and Cosmetic Act (FD&C Act). Under the FD&C Act, a cosmetic is deemed adulterated—and therefore subject to regulatory action—if it contains any “poisonous or deleterious substance which may render it injurious to users under the conditions of use prescribed in the labeling thereof, or, under such conditions of use as are customary or usual.�? We believe toluene, xylene and dibutyl phthalate meet these requirements.

Over the past 20 years, the Consumer Product Safety Commission (CPSC) has recalled or taken other corrective actions on at least 120 toys identified in PIRG reports. PIRG maintains a website for parents and toygivers at www.toysafety.net where you can download English or Spanish printable versions of PIRG's Tips for Toy Safety. Also, here's a link to a blog on our recent report on toxic chemical hazards in other children's products.

We are receiving an increasing number of complaints that banks are refusing to comply with federal rules governing losses due to ATM and debit card fraud. Complain to your bank and its regulator and send us a copy!

Disclaimer. This is not legal advice, simply consumer information:

While credit cards are subject to the more consumer friendly Truth In Lending Act (your maximum liability for loss/fraud is $50) and the Federal Reserve Board's Regulation Z, an ATM or debit card is subject to the FRB Regulation E, implementing the Electronic Funds Transfer Act (EFTA). Full legalese of Regulation E (an "access device" is an ATM/debit card) here; easy to read Fed fact sheet here. If your ATM/debit card is used fraudulently, there is a 3-tiered system of liability -- if you notify the bank within two days, your liability is $50, within 60 days, $500, and after that, as much as all the money in your account and other accounts (e.g, savings) or over-draft lines of credit linked to it. Worse, of course, you are fighting to get your own money back.

The banks, of course, have promoted their much ballyhooed voluntary schemes purporting to limit your liability to either zero or $50, same as a credit card. These claims are subject to asterisks and exceptions.

Regardless, however, of whether banks are sometimes honoring those purported voluntary liability limits, some banks and credit unions are also denying legitimate claims of fraud, where the consumer does make timely notice ("Sorry, your son wasn't authorized. Too bad he supposedly lost the card" OR "you must have given up your PIN, you lose.") Don't put up with these sorts of "go away" responses. The law requires an adequate and timely investigation and the law describes the circumstances under which you can be held liable. These may or may not be among them, depending on the facts. That's why you need to copy the regulators, so the bank (1) knows you mean business and (2) the regulators know that these problems are occurring and can review the investigation and disposition of your complaint.

You must, if you are a victim of debit card fraud, notify the bank immediately and keep copies of all documents as well as a written log of your interactions with the bank. We advise also sending copies of all communications with the bank to the bank's primary regulator. It lets the bank know you aren't willing to put up with any shenanigans.

Also send copies to the Federal Reserve Board here. If a bank has national in its name or NA after its name, it is regulated by the Office of the Comptroller of the Currency (OCC) which regulates most bigger (and a lot of smaller) banks. You can get a list of the other regulatory agencies here.

The fed’s general consumer fact sheet on Regulation E is here explaining your EFTA rights. PIRG's factsheet is here.

We've updated our list of state security freeze and breach laws. The page links to legislative pages of the 10 state legislatures that have enacted freeze laws and the 19 states that have enached breach notification laws. NJ has both sitting on the governor's desk. The NJ laws will be signed in September. Our main identity theft and credit reporting page includes a lot more detailed information, including information about free credit reports. We also have a detailed list of specialty credit bureaus on our downloadable short id theft fact sheet. These tenant, employment, check clearing and similar bureaus also must provide free reports-- through 800#s.

Last week, the nation's chief national bank regulator, the OCC, took time out from its prime directive -- to seek out and destroy strong state consumer laws. Instead, OCC published an almost ludicrous brochure called "Writing A Check: Understanding Your Rights." The brochure's own text highlights the serious flaws in consumer protection laws applying to checks, especially since the just-implemented Check 21 law (PIRG Release) accelerated the speed at which checks you write clear, without also giving you faster access to the checks you deposit.

Here are some excerpts from the brochure, which explains that your limited dispute rights depend on how a merchant or bank decides to handle your check. To be fair, some of the blame goes to Congress, but not all. The agencies lobbied Congress heavily for Check 21-- they have never lobbied Congress in favor of any consumer protection laws.

"What if something goes wrong? Different laws and rules apply, depending on how your check was processed."

"Although electronic processing might mean that the check you write will clear more quickly, the funds that you deposit might not be available to you any more quickly." [That's because Congress didn't change the law that applies to deposited checks, as it should have.]

"May I choose the processing method for my check? Not usually."

"Can I tell how my check is being processed? You probably will be able to tell how your check was processed, after the fact, by looking at your bank statement." [After the fact, very helpful.]

"Be sure that the available account balance you're counting on does not include funds from your bank's "overdraft protection" program."

[Hunh, you mean some banks offer seamy payday-loan loan-like products where you are charged $35 or more per overdraft and, even worse, your true balance is disguised so you actually think have the money in your account?" Yes, some banks do. Good question. here's a better one-- why haven't the sleazy products been banned?]

"Can I get my cancelled checks with my bank statement? No law requires your bank to send you your cancelled checks."

Next week, students, we will tackle the related question: "Why are debit card liability rights so much more anti-consumer than credit card liability rights." PIRG Fact Sheet.