All posts by Barbara Nevins Taylor

Crackdown on Sallie Mae and Student Loan Servicers

May 13th, 2014

Maybe it’s because graduation season is here, who knows? But it’s welcome news that serious attention is being paid to some aspects of the student debt crisis. We can all be encouraged by the crackdown on Sallie Mae and the serious examination of the way student loan servicers do business.

Sallie Mae agreed to settle a lawsuit with the U.S. Justice Department that will require the banking giant to pay out $60 million to about 60,000 service members. The Justice Department alleged that since 2005 Sallie Mae charged service members more than the allowed 6 percent interest on student loans.

The excessive interest rates had damaging ripple effects. When many couldn’t pay their loans, Sallie Mae sought default judgments and hurt the credit reputation of borrowers.

Consequently, the settlement also requires Sallie Mae to notify credit bureaus and ask for the default judgements to be removed from service members’ credit reports.

Attorney General Eric Holder said, “By requiring Sallie Mae to compensate its victims, we are sending a clear message to all lenders and servicers who would deprive our service members of the basic benefits and protections to which they are entitled: this type of conduct is more than just inappropriate; it is inexcusable. And it will not be tolerated.”

BEYOND MILITARY MEMBERS

The National Consumer Law Center (NCLC) asked the Education Department to take a look at the way loan servicers treat all student loan borrowers.

These are the NCLC’s key concerns:

Servicers frequently push borrowers to accept solutions that may not be right for them. They suggest putting off loan payments through forbearance rather than working out a long-term solution like repayment tied to an individual’s income.

Aggressive collection agencies apparently violate consumer protection laws and there is little oversight.

Department of Education collection agencies apparently do not have clear repayment plans.

Borrowers who face default need access to better information about their accounts.

Home Buying Choked By Student Debt

May 13th, 2014

You invest in an education and then hope to reap the benefits. In America, traditionally, you graduate from college or grad school, enter a profession, make money, maybe marry or partner-up and buy a home. But the paradigm seems to have changed, at least for the current crop of twenty-five to thirty-year olds.

Home buying appears choked by student debt, according to the latest analysis by the Federal Reserve Bank of New York. Its 2014 Household Debt and & Credit Report found student loan debt increased $31 billion in the first quarter of the year.

That’s pretty serious because it brings the overall student debt to more than $1.11 trillion and affects a huge group of people. 69 percent of twenty-five-year-olds who took student loans are now in debt for, on average, about $20,926.

It may not be a staggering number, for some. But it’s big enough to make starting out in the game of life tough. Carrying this kind of debt hurts buying power and stifles the ability to invest in a home.

In 2013, the Fed discovered the same pattern it first identified in 2012. Young people who didn’t go college were more likely to buy a home than those who graduated from college. College grads were either worried about taking on new debt, or their credit wasn’t strong enough to get a mortgage, or we’re seeing a shift in cultural values.The analysts aren’t ready to identify a reason.

Auto buying is the one bright spot for young people. Previous reports from the Fed said they were putting off buying cars or vehicles because of their debt problems. That seems to have changed slightly in 2013. Twenty-five year olds, who are paying off student loans, are now borrowing to buy cars, but not in the numbers that they once did.

The latest news provides more evidence that there’s an urgent need to reform student loan borrowing, interest rates and the repayment process.

Consumer News, Featured Stories, Money News, News, Scam News

Danger of Pension Advance Plans

May 9th, 2014 7 Comments

by Barbara Nevins Taylor

Construction mechanic Darren Smith was working on a road crew in 1995 when a drunk driver hit him head-on and put him out of work for good. Today, a pension through the Operating Engineers union keeps him afloat. But a pension advance deal, something he thought was a loan against his pension, threatens to undermine Darren’s financial security and take a big bite out of his income.

What happened to 51-year-old Darren is emblematic of a growing national problem that threatens pension and retirement security.

Stuart Rossman, Director of Litigation for the National Consumer Law Center, says, “Virtually every situation where a person has a pension, a guaranteed income stream, there’s a vulnerability. It’s an area that’s ripe picking for those individuals who engage in scams to rip people off.”

Retired military members, those like Darren on disability, and older people with pensions find their way to Internet sites that seem to provide an easy answer to difficult situations.

AARP attorney Jay Sushelsky told ConsumerMojo, “This is predatory lending. These are lenders of last resort. The people who borrow money are very desperate for quick cash. But chances are they are going to be in worse shape six months after the transaction than they were before.”

It’s unclear how many people have been sucked into these deals. But we do know that interest rates often run from 25 percent to over 100 percent. All you have to do is Google “pension advance,” and pages fill with companies ready to sign you up.

Details may vary, but Darren’s experience seems to mirror that of many others. He needed money to help pay for a young cousin’s funeral and to consolidate some of his own debts. “In August, 2013, I was looking online for a loan for about $5,000 and this company kept popping up,” he explained.

CONTINUE→

Or go to page 1 2 3 4 5

Consumer News, Money News, News, Scam News

Snapchat And Its Not-So Disappearing Photos

May 8th, 2014

Lemon juice, water and a Q-Tip is supposed to make pretty good disappearing ink. But that disappearing photo? Well, there’s a rethink on 21st century app Snapchat and its not-so-disappearing photos.

Snapchat, the popular app that promised to make photo messages disappear, settled false claims charges with the Federal Trade Commission (FTC). It turns out that photos and messages sent via the app remained accessible.

Snapchat’s marketing claimed that if you used the app to sent a photo, it would disappear after a designated time period. But the Federal Trade Commission followed the trail of complaints and found the app didn’t work quite that way.

The FTC says photos remained accessible through widely used third party apps and photos could be viewed or saved indefinitely. The company apparently was alerted to the problem by a security researcher, but the FTC says that even after the warning, “Snapchat continued to misrepresent that the sender controls how long a recipient can view a snap.”

And there’s more.

Snapchat did not use encryption to store video snaps on recipients’ devices. That allowed the videos to remain accessible to anyone who connected a device to a computer and accessed it.

Snapchat promised that users would be notified if someone took a screenshot of their photo. But Apple devices created before iOS 7 can avoid the screenshot detection system.

Snapchat said that it didn’t track or access location information. But the FTC says it misrepresented there,too.

And maybe most embarrassing of all, Snapchat’s “Find Friends” feature had big problems. Consumers complained that when they used the feature and thought they were sending personal photos to friends, the photos often went to strangers who had registered with other peoples’ phone numbers.

What happens now?

The FTC says, “Under the terms of its settlement with the FTC, Snapchat will be prohibited from misrepresenting the extent to which it maintains the privacy, security, or confidentiality of users’ information. In addition, the company will be required to implement a comprehensive privacy program that will be monitored by an independent privacy professional for the next 20 years.”

We reached out to Snapshot for a response, but haven’t heard yet.

55 Plus News, All 55 Plus, Money News, Mortgage News, News

Warning About Mortgage Debt for Older Americans

May 7th, 2014 1 Comment

You worked hard. You saved and like 80 percent of the 41 million Americans over 65 you own your home. You achieved the dream and we hope you’re living it. But there is concern about the future for older homeowners and the mortgage debt they might be carrying. Baby Boomers may want to listen up.

A decade ago, most older homeowners had paid off their mortgages. Today, that’s not the case and people with mortgages owe more than ever before. The median mortgage debt for people over 65 increased by 82 percent, according to the U.S. Census Bureau. And because a home is the greatest asset for most, the decline in equity is a bad sign.

It’s also troubling that most older homeowners spend more than 30 percent of their income on mortgage payments. It’s estimated that 4.4 million retired homeowners with mortgages struggle to keep up payments.

That’s why the Consumer Financial Protection Bureau (CFPB) issued an advisory to warning about mortgage debt for older Americans.

CFPB Director Richard Cordray said, “A home can be a place of security for older Americans in their retirement years – a roof over their heads as well as a valuable asset. But as more seniors carry significant mortgages into retirement, they put themselves at risk of losing their nest eggs and their homes.”

TAKE ACTION

The CFPB suggests steps you can take:

Plan for your mortgage payoff date and include that in your retirement plan.
Before paying off a mortgage, talk about the tax implications with your attorney and accountant.
Think twice about getting a new mortgage, refinancing or tapping into your home equity.
If you do get a new mortgage, beware of the details and make sure the payments wont be burden in later years.
Consider choosing a 10-15 year mortgage when you are close to retirement. Your mortgage payments will be higher now, but you’re less likely to have a mortgage in the years to come.
Before you take a home equity line of credit, take a hard look at the fees and the costs that eat into your equity.
Remember that using your home equity to consolidate loans or credit card debt is risky. If you miss payments, a home equity lender can foreclose on your home.
Estimate your retirement income and expenses. Consider that you might have to modify your home as you age and that can be extremely expensive.

THE BOTTOM LINE

The idea behind this dismal warning is to get us to think about our how our homes and our mortgage debt figure into our retirement plans.

Your opinion matters to us. Tell us what you think about this post and please SHARE THE LINK.

Consumer News, Helpful Tips: Consumer, Helpful Tips:All, Money News, News, Scam News

Warning About Deceptive Auto Ads

May 6th, 2014

by Barbara Nevins Taylor

How comfortable did you feel the last time you visited a car dealer and how long did you have to think about it? If you worried about whether you got the straight story from a salesmen when you shopped for a vehicle in a dealership, you may have good reason. And you also have a lot of company.

Car dealer complaints are on the Federal Trade Commission’s (FTC) top 10 list. After a sting operation that visited ten dealerships in six states, the FTC reached a settlement with dealerships that the agency alleges engaged in deceptive practices and Truth in Lending Act and Consumer Leasing Act violations

All promised, without admitting guilt, to avoid these practices in the future. But a look at what investigators found offers a pretty chilling warning for us all.

The take-away: when you visit an auto dealer you want to be very careful that you really get the deal that’s advertised.

Here’s what the FTC found.

In California, a dealership allegedly falsely advertised a low price for vehicles when the price was actually $5,000 higher. Another allegedly advertised a zero upfront payment for leased vehicles, and failed to disclose the fees it charged.
In Georgia, a dealership allegedly advertised low teaser rates and failed to disclose that the low payments were temporary.
In Illinois, a dealer allegedly used the zero upfront payment ploy for leased vehicles and again failed to disclose the fees.
In North Carolina, a dealership allegedly used the bait of low teaser payments and failed to point out that regular payments would be much higher.
In Michigan, a dealership allegedly sent fliers that falsely claimed people won sweepstakes prizes when there was no sweepstakes.
In Texas, a dealership allegedly told consumers they could purchase a vehicle for a low monthly payment but failed to disclose the big balloon payment at the end.

WARNING

The FTC hopes that its action against this handful of dealers will send a warning about deceptive auto ads to other dealers.

But it’s also a great idea to make sure that you know as much as possible about what a dealer is offering you.

WHAT TO ASK THE DEALER OR THE SALESPERSON

Do I have to pay additional fees, a down payment or a big payment at the end of a lease or payment schedule?
Does the advertised price apply only to certain models?
Can I order a vehicle, or does the price only apply to one at the dealership?
Do I need certain qualifications to get the discount, the price or the advertised credit or financing?
Do I have to pay the loan off in a short period of time like 36 months?
Do I need to take the loan for a specific time period?
Do I have to buy extra things like a warranty, a service contract or rustproofing?
Will I get same good price if I pay cash or get my own financing from a bank or credit union?
Do the advertised payments remain the same for every month of loan, or do they increase after a few months?
Is there a balloon payment at the end?
If the ad says, “$0 Due at Lease Signing,” do I have to pay something before I drive the vehicle off of the lot. Do I have to pay fees, taxes, a security deposit or the first month’s lease payment.

Here are the 10 dealerships that settled with the FTC:

All 55 Plus, Medicare

Why Medicare Advantage is Popular

May 4th, 2014

It turns out, Medicare Advantage is popular for a growing number of Baby Boomers. That may be because the monthly premium is only about $35 and there’s a full range of healthcare services included.

The Kaiser Family Foundation’s latest report says that 15.7 million Americans, or 30 percent of everyone on Medicare, is in a Medicare Advantage Plan.

If you’re not familiar with the options available, here’s a quick look it how it works. When you turn 65 you automatically get Medicare Part A.

Part A Covers

Hospitalization
Nursing Care
Nursing Home Care
Hospice
Home Health Services

If you are not working and covered by your employer’s insurance, you must sign up for Medicare Part B within three months of your 65th birthday. There’s more about this in Boomers Part B and Costly Mistakes.

Part B covers:

Doctor Visits
Routine Medical Care
Preventive Care
Ambulance Service

Once you sign up for Part B, you confront a range of options because Medicare only covers 80 percent of your health care costs. If you choose Medicare Advantage it covers the other 20 percent.

The government pays private insurers to offer Medicare Advantage plans that are run like HMOs and PPOs. That means you get all your health care from doctors, hospitals and providers in your insurer’s network.

As a result of Affordable Care Act, which became law in 2010, Medicare Advantage insurers’ payments were reduced and they’ve been encouraged to provide more benefits. So you might find a plan that offers:

Wellness benefits
Payments for vision checks and eyeglasses
Gym memberships
At-home visits from healthcare professionals
Part D drug benefits.

The Kaiser Foundation says, “In 2014, 83 percent of Medicare Advantage plans offer prescription drug coverage.

Kaiser also found premiums in Medicare Advantage plans average $35 per month in 2014 compared to $39 in 2011 and $44 in 2010.

The downside is that out-of-pocket spending limits are rising. 44 percent are enrolled in plans with limits over $5,000.

However, Medicare Advantage plans are required to limit their out-of-pocket costs for services covered under Parts A and B:

$3,400 is recommended
$6,700 is the maximum

Find out about Medicare Supplemental plans: Figuring Out Medicare Choices

Consumer News, Insurance News, Money News, News

Lost A Job And Worry About Health Insurance?

May 2nd, 2014

If you lost a job and worry about health insurance because COBRA is too expensive, and it can be, there’s an alternative.

Insurance through the Affordable Care Act (ACA) may work for you. A majority of the 8 million who enrolled in health insurance plans through Obamacare receive a subsidy to help offset the cost, and you may be eligible for a subsidy too.

The Obama Administration is making a big push to get the word out to people who might turn to COBRA. Health officials want you to know, it’s possible to get insurance through the federal or state health insurance marketplaces. You can find that information easily on Healthcare.gov.

Assistant Secretary of Labor for Employee Benefits Security Phyllis C. Borzi said, “In many cases, workers eligible for COBRA continuation coverage can save significant sums of money by instead purchasing health insurance through the Marketplace.”

The Department of Health and Human Services proposed changes to notices that employees receive about COBRA when they lose a job. HHS wants employers to include information about health insurance under the Affordable Care Act and the possibilities for financial subsidies.

Even though you are outside of the open enrollment period, you can sign up through Healthcare.gov now.

APPLYING OUTSIDE OF THE OPEN ENROLLMENT PERIOD

You can only apply outside of the open enrollment period under these circumstances:

1. You’re getting married.

2. You’re adopting a child or a child is placed in your home.

3. You’re moving to a new area that offers different health plan choices.

4. You’re losing your healthcare coverage after a divorce, because you’ve lost your job, your COBRA is expiring, or you no longer qualify for Medicaid.

NEXT OPEN ENROLLMENT PERIOD

The next open enrollment period for Obamacare begins November 15, 2014 and ends February 15, 2015.

If you sign up in November your health insurance can begin as early as January 1, 2015. But you must make your first month’s payment before the health insurance kicks in.

Insurance News, Money News, News

Who Signed Up For Obamacare

May 1st, 2014

The final stats came in for the first open enrollment period for the Affordable Care Act, and Health and Human Services officials took a victory lap pointing to the big number of people who signed up for Obamacare during March.

More than 54 percent of those who now have insurance through the Affordable Care Act are women. What happened to the men?

In all more than 8 million enrolled from October through March. Other big numbers include:

3 million under 26 remain on their parents’ health insurance plans.
4.8 million people enrolled in Medicaid or the Children’s Health Insurance Program (CHIP) because of the Affordable Care Act.

In a teleconference, HHS officials touted the numbers and pointed to success in states like Florida, Texas and Georgia. These states saw a last-minute rush in March and large numbers applying.

In Texas more than 730,000 enrolled, in Florida over 980,000 and in Georgia more than 316,000. In all, 12 states doubled enrollment during the last month.

California leads the nation with more than 1.4 million enrolled. There are also surprises. The number of people who signed up for Obamacare plans in New York seems low. A little more than 370,000 enrolled.

There also appear to be problems when it comes outreach in minority communities. Latino enrollment is 10.7 percent; that’s only about 400,000 .

Myra Alvarez, HHS Associate Director over the Office of Minority Health, said, “When it comes to the Latino community, we recognized that there are challenges that we tried to address.”

She explained that HHS is trying to ramp up its outreach network during the coming months. “We are looking to reach those 10.2 million Latinos who are eligible, ” Alvarez said.

There also appear to be communication problems in the African-American and Asian communities. Only 600,000 African-Americans enrolled and only 7.9 percent of those who signed up are Asian.

On the plus side, there was a big effort to convince younger people to get health insurance through the program to offset the cost for older people who use more healthcare. That had some success. 28 percent of those who now have health insurance plans under the Affordable Care Act are between 18 and 34.

Retiring Department Health and Human Services Secretary Kathleen Sibelius took hits from every quarter when the enrollment website Healthcare.gov failed during the launch. On the conference call, she applauded the success of the signup program and said, “People now have health insurance that can’t be taken away from them…and they can’t be denied insurance because of a pre-existing condition.

If you need insurance and didn’t sign up

NEXT OPEN ENROLLMENT PERIOD

The next open enrollment period for Obamacare begins November 15, 2014 and ends February 15, 2015.

If you sign up in November your health insurance can begin as early as January 1, 2015. But you must make your first month’s payment before the health insurance kicks in.

APPLYING OUTSIDE OF THE OPEN ENROLLMENT PERIOD

You can only apply outside of the open enrollment period under these circumstances:

1. You’re getting married.

2. You’re adopting a child or a child is placed in your home.

3. You’re moving to a new area that offers different health plan choices.

4. You’re losing your healthcare coverage after a divorce, because you’ve lost your job, your COBRA is expiring, or you no longer qualify for Medicaid.

Money News, News, Scam News

Are Free Credit Score Offers Real?

May 1st, 2014

Are free credit score offers real? They pop up in your inbox and appear as texts and seem like a good idea. But you might want to click delete.

It’s pretty confusing because there are a lot of companies using similar names and offering you services that supposedly provide your credit report and credit score regularly.

Most say they offer free credit scores and you might not need their service. Maybe you want to save the $29.95 a month, or whatever they charge.

This is what you need to know.

A credit score is different than a credit report. You generally have to pay to get your credit score.

Your credit score is based on your credit history, which is laid out in your credit report. And you can get a credit report for FREE, with no strings attached, at ANNUALCREDITREPORT.COM.

This service is provided by the three major credit bureaus: Experian, Equifax and TransUnion. Each company is required by law to offer a free report once a year.

So they pooled their efforts to create one service and now you can get a free report three times a year through AnnualCreditReport.com.

Your credit report is a record of your credit and payment history: how many credit cards you have, whether you pay on time, whether you pay medical bills, if you have bankruptcies, if you pay child support, in some cases your rent payment history and more.

SUGGESTION:

Norm Magnuson of the Consumer Data Industry Association says, “We encourage people to get their free credit report because it’s the basis on which the credit score is built. And it provides consumers with a good idea of their credit worthiness.”

WHAT’S A CREDIT SCORE?

A credit score is a statistical evaluation of what’s on your credit report and Magnuson points out that different companies calculate credit scores different ways.

So getting the score from one company may not help you at all. He says, “The scores are sold to lenders by companies like FICO that compile them. And then lenders often add their own formula to create a score that they use.”

As an example Manguson explains, “Let’s say you get something that says your score is 740. That could be an A score with one lender and an A minus with another lender.”

Getting your free report, instead of paying to get your score, allows you to work on improving your credit by paying bills you may not have realized you have, or correcting errors on the report.

Why Credit Report Mistakes Matter

In the meantime, the Federal Trade Commission (FTC) cautions against what it calls “Imposter Sites” that offer free scores or credit reports. The FTC says, “…websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.”

As for the companies offering these services. We called and sent emails to one that uses several domain names and haven’t received an answer.

THE BOTTOM LINE: Try hitting the delete button the next time an ad pops up. Better safe than sorry.

Banking News, Money News, News

How Payday Lenders Work

April 30th, 2014

You can’t say much good about payday lenders, but you have to admit they’re clever about exploiting opportunities to get their hooks in. New York State officials discovered how payday lenders work to avoid laws and use loopholes to do end runs to make illegal loans.

LOANS WITH OVER 1000 PERCENT INTEREST

Payday lending is outlawed in New York for a good reason. These short term loans come with interest rates that sometimes exceed 1,000 percent and the loans often trap people in debt for years.

But many payday lenders figured out how to use the Internet to offer loans in New York and elsewhere where payday lending is illegal. When the New York State’s Department of Financial Services discovered how these payday lenders work, the department got the electronic network that processes payments for banks to agree that it will not handle these loans.

After they were cut off by the banks, payday lenders got creative. They began to notify borrowers, on their websites, that they no longer use the electronic network to process payments. Instead, they ask for debit card information so payments can be automatically deducted from borrowers’ accounts.

New York state investigators discovered the new tactic and reached out to Mastercard and Visa. Both companies say they’ll partner with New York to stop illegal debits.

Governor Andrew Cuomo says, “By working with us to root out this illegal conduct, Visa and MasterCard have stepped up to the plate and shown how private companies can work alongside state government to protect vulnerable New Yorkers.”

The state’s Department of Financial services launched an investigation into payday lending last year. And in August 2013, DFS sent letters to 35 online payday lenders ordering them to stop peddling illegal loans in New York.

Now it has sent letters to another 20 companies, including 12 that appear to use the debit card ploy.

DFS Superintendent Lawsky said, “Whenever online payday lenders try new schemes to flout our laws and exploit New York consumers, we will take strong action to head them off at the pass.”

THESE PAYDAY LENDERS RECEIVED LETTERS:

AALM Consulting Services, Ltd. d/b/a MultiLoanSource
Action Payday, LLC
Coral Keys, Ltd.
Fast eFunds
First American Capital Resources ONE, LLC
Iggy Group, LLC d/b/a Iggy Loans
Joro Resources, LLC d/b/a Idealgelt
MB Marketing, LLC d/b/a My Next Day Cash
Rapital Capital
Red Leaf Ventures, LLC d/b/a Red Leaf Lending
Sierra Lending, LLC
Uncle Warbucks
VIP PDL Services d/b/a VIP Loan Shop
Fast Next Day Cash (aka Vista B Loans)
First America Credit
My Web Funds
Net Cash 123
Platinum Cash Link
CWB Services, LLC d/b/a
Vandelier Group, LLC
Shoreline Online,LLC
Cutter Group, LLC
Hydra Financial Limited Fund d/b/a Hydra Fund II

WHAT’S WRONG WITH PAYDAY LOANS?

How Do I Find Out If Someone Used My Credit Card?

April 30th, 2014

updated September 17, 2017

Anyone worried about a stolen credit card, or credit compromised in any way, should take action immediately. You can do this yourself for free.

We made that suggestion to Melissa who has an all too familiar story. She’s shy about using her real name, but what she told us shows how easy it is to become a victim of credit card fraud.

After she ate lunch at the bar in a popular chain restaurant in Brooklyn, she paid with her Chase Visa card. The bartender took it and swiped it. Everything seemed okay.

But two days later, Melissa received an email from Chase alerting her about fraudulent activity on her account. The restaurant was the only place she used the card in that two-day period. She remembered that she left her credit card receipt on the bar, and thought maybe that’s how someone got her credit card information.

Melissa was upset because she likes the restaurant and she also worried about the effect on her credit. “I was scared. I wondered about a lot of things. How did it happen? How much did the person charge on my account, and how will it affect my credit rating?

In the email, Chase told her the bank was closing the credit card account and promised to sent her a new card with a different account number.

Melissa called Chase to follow-up, but she was still left with questions about the effect on her credit score.

“How do I find out if someone used my credit card?”Melissa asked ConsumerMojo.

We suggested that she review her credit report immediately to see if there is any fraudulent spillover, and if anyone opened an account using her information.

Do this immediately.

GO TO ANNUALCREDITREPORT.COM

You can get a free copy of your credit report three times a year by going to AnnualCreditReport.com. Do not pay anyone to pull your credit report. You can do this by yourself.

A federal law says that three credit reporting bureaus — Experian, TransUnion and Equifax — must make your credit report available to you. They teamed up to create AnnualCreditReport.com. Avoid other websites that promise to get your credit report.

We wrote this post before the Equifax data breach that compromised the credit reports of 143 million people and as a result of that hack you may have trouble getting your credit report online. So you may also want to read Why Your Credit Report May Not Be Available Online.

You can also write and request a copy:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

WHY SHOULD YOU CHECK YOUR CREDIT REPORT ROUTINELY?

It’s important to thoroughly review your credit report because prospective employers look at it, lenders look at it and many landlords use credit reports before they decide to rent to you. You also want to examine the report to:

See where you stand.
Make sure no one has opened accounts in your name.
Make sure the information on your credit report is accurate.

WHAT’S ON YOUR CREDIT REPORT?

Your credit report is a history of your financial life. It has your bill paying history. It lists and shows:
The credit cards you have, and your payment record.
The loans you have, or had, and your loan payment history.
Your mortgage and your mortgage payments.
Student loans you have or had, and the way you repay them.
Judgments or liens against you.
Alimony or child support payments and how you pay.
Money you may owe a doctor or healthcare provider.
Money you may owe a hospital.
Your outstanding parking ticket fines.
Whether you’ve been sued.
Whether you’ve been arrested.

The list will include all of your debts and financial activity and anything to do with your money. It is unlikely to include local retailers, gasoline credit card companies and landlords with just one or two properties.

Inaccurate Information

Credit bureaus make mistakes. If there is a mistake, you must dispute it. You do this by sending letters with proof — your cancelled checks, credit card receipts or other proof that you have paid a bill.

Experian-1-888-397-3742

www.experian.com

TransUnion-1-800-916-8800
www.transunion.com

Equifax-1-800-685-1111
www.equifax.com

The Federal Trade Commission created a sample letter. Or, you can use our version:

SAMPLE LETTER TO CREDIT BUREAU

Date

Your Name

Your Address, City, State, Zipe Code

Complaint Department

Name of Company

Address

City, State, Zip Code

Dear Sir or Madam:

I am disputing the following information in my file. I have circled the items I dispute on the attached copy of the form that I received.

This item (s) (List the item or items you’re disputing and the name of the source such as creditors or tax court and identify the type of account- credit card or judgment, etc.) is inaccurate or incomplete. (Describe what is inaccurate or incomplete and why). I am requesting that the item be removed to correct the information.

Enclosed are copies of my documentation that support my position. (Describe what you enclose: receipts, payment stubs, court records, etc.)

Please reinvestigate this matter (or these matters), and correct or delete the information as soon as possible.

Sincerely,

Your Name

Enclosures: List all the documents that you are enclosing.

Do not send originals. Send copies and keep a copy of your letter.

Send the same letter to the creditor with the same documentation. Send both by certified mail and keep your receipt.

CREDIT REPORTING COMPANIES MUST INVESTIGATE

Credit reporting companies must investigate within 30 days of receiving your letter. They also must send your dispute and your information to the company or organization involved. That company is required to investigate and report back to the credit bureau. If they find that you are right, the information must be corrected on your credit reports by all three reporting companies.

The credit reporting companies must give you the results in writing and a free copy of your updated credit report. This doesn’t count as one of the three free annual credit reports.

If there was an error, you can ask the credit reporting company to send a letter to companies or individuals who received a copy of your credit reporting within the previous six months.

If a company refuses to correct what you claim is an error, you can request that credit reporting bureau keep a copy of your statement in your file.

Theoretically, this should work. But many people have a great deal of trouble getting inaccurate negative information removed. If you have a problem, file a complaint with the Consumer Financial Protection Bureau (CFPB). It is actively investigating the way credit bureaus keep their files and handle complaints.
HOW LONG DOES IT TAKE TO IMPROVE YOUR CREDIT?

Your credit gets better as you pay your bills. But if it is really bad, it will take seven years of regular on-time payments to clean everything up.

If you had a bankruptcy, it will take ten years to clear your record.

YOUR CREDIT SCORE

What’s on your credit report is reflected in your credit score. Most banks and lenders use the FICO Score created by a private company called Fair Isaac Corporation. It developed a formula, or formulas for calculating your credit worthiness based upon the following.

35 percent based on your payment history.

30 percent based on the amount you owe.

15 percent length of credit history.

10 percent new cards.

10 percent types of credit.

FICO TIPS:

Apply for and open credit accounts if you really need them.
Don’t open accounts just to have a new card.
Closing a credit card won’t make the debt go away.

In fact, if you close a credit card it’s likely to factor as a negative in your score. If you clear your bill and don’t ever use it, that may be a problem too. So it’s probably a good idea to pay one bill with it, and keep it in a drawer the rest of the time.

3 Tips to Manage Credit Card Debt

Also when you use your credit card, make sure that you don’t exceed 50 percent of the limit. If you go beyond 50 percent, bankers advise that you split the debt between two credit cards. That it is likely to improve your credit score.HOW TO HANDLE OUTSTANDING DEBT

If you want to pay your bills but can’t make the monthly payments, NEGOTIATE.

A company will write off your debt after 180 days, but it is still held against you and you will still have to pay.

The company would rather have your money than write off the debt. It’s better for you, and them, if you negotiate.

Here’s what to do:

Call the customer service number on the back of the bill.

Be very polite.

Say that you would like to set up a payment plan.

See if you can negotiate a sum that you can actually afford.

If the person on the other end of the phone won’t help you, ask to talk to supervisor.

Don’t lose your temper.

Explain what you want. You are likely to get it.

If you don’t, go right to the top to reach a decision maker. Do a Google search. Find the name of the company president and the address and write a letter explaining what you want.

You may be surprised at how successful you are.

Why Your Credit Report May Not Be Available Online

Homeland Security Alert for Internet Explorer

April 29th, 2014

This is a PC user’s potential nightmare. The Department of Homeland Security (DHS) reports a security breach in Internet Explorer versions 6 through 11 and it suggests using another browser.

An advisory says there’s a vulnerability in Internet Explorer that allows someone to insert code in the browser. The code may create a message or link that could lead you to a site that may contain malware or worse.

Homeland Security also suggests that the hackers may use Adobe Flash to break into the system. Its release says, “Although no Adobe Flash vulnerability appears to be at play here, the Internet Explorer vulnerability is used to corrupt Flash content in a way that allows ASLR to be bypassed via a memory address leak. This is made possible with Internet Explorer because Flash runs within the same process space as the browser. Note that exploitation without the use of Flash may be possible.”

Microsoft acknowledges the problem and warns, “An attacker could host a specially crafted website that is designed to exploit this vulnerability through Internet Explorer and then convince a user to view the website.”

Microsoft says it’s investigating and may provide security updates to explain what consumers should do.

But in the meantime,

Homeland Security offers this partial solution: “The Microsoft Enhanced Mitigation Experience Toolkit (EMET) can be used to help prevent exploitation of this vulnerability. Note that platforms that do not support ASLR, such as Windows XP and Windows Server 2003, will not receive the same level of protection that modern Windows platforms will.”

The bottom line — you may want to switch browsers and choose Firefox or Safari.

ADOBE VULNERABILITY

Homeland Security also says it’s aware of “active exploitation of a vulnerability in versions of Flash Player, which could potentially allow an attacker to take control of an affected system.”

DHS suggests, “Users and administrators review Adobe Security Bulletin APSB14-13 and apply the necessary updates.”

How Does Your Garden Grow?

April 26th, 2014 2 Comments

Gerry and Mary Chambers sent us these glorious photos of their garden in Augusta, Georgia. They stirred our imagination and whet our appetite for more. How does your garden grow? Share with us.

Post your garden pictures in our comment section and tell us something about the garden or a place you like where things grow.

Here’s Robert Frost’s garden recollection

In a Vale

by Robert Frost,

When I was young we dwelt in a vale

By a misty fen that rang all night,

And thus it was the maidens pale

I knew so well, who garments trail

Across the reeds to a window light

The fen had every kind of bloom,

And for every kind there was a face,

And a voice that has sounded in my room

Across the sill from the outer gloom.

Each came singly unto her place,

But all came every night with the mist;

And often they brought so much to say

Of things of moment to which, they wist,

One so lonely was fain to list.

That the stars were almost faded away

Before the last went, heavy with dew,

Back to the place from which she came—

Where the bird was before it flew,

Where the flower was before it grew,

Where bird and flower were one and the same

And thus it is I know so well

Why the flower has odor, the bird has song

You have only to ask me , and I can tell

No, not vainly there did I dwell,

Nor vainly listen all the night long.

And here’s another, this one by Emerson. It’s a little long but a nice read, especially if you’re catching your breath from working in your garden.

My Garden

by Ralph Waldo Emerson

If I could put my woods in song

And tell what’s there enjoyed,

All men would to my gardens throng,

And leave the cities void.

In my plot no tulips blow,–

Snow-loving pines and oaks instead;

And rank the savage maples grow

From Spring’s faint flush to Autumn red.

My garden is a forest ledge

Which older forests bound;

The banks slope down to the blue lake-edge,

Then plunge to depths profound.

Here once the Deluge ploughed,

Laid the terraces, one by one;

Ebbing later whence it flowed,

They bleach and dry in the sun.

The sowers made haste to depart,–

The wind and the birds which sowed it;

Not for fame, nor by rules of art,

Planted these, and tempests flowed it.

Waters that wash my garden-side

Play not in Nature’s lawful web,

They heed not moon or solar tide,–

Five years elapse from flood to ebb.

Hither hasted, in old time, Jove,

And every god,–none did refuse;

And be sure at last came Love,

And after Love, the Muse.

Keen ears can catch a syllable,

As if one spake to another,

In the hemlocks tall, untamable,

And what the whispering grasses smother.

Æolian harps in the pine

Ring with the song of the Fates;

Infant Bacchus in the vine,–

Far distant yet his chorus waits.

Canst thou copy in verse one chime

Of the wood-bell’s peal and cry,

Write in a book the morning’s prime,

Or match with words that tender sky?

Wonderful verse of the gods,

Of one import, of varied tone;

They chant the bliss of their abodes

To man imprisoned in his own.

Ever the words of the gods resound;

But the porches of man’s ear

Seldom in this low life’s round

Are unsealed, that he may hear.

Wandering voices in the air

And murmurs in the wold

Speak what I cannot declare,

Yet cannot all withhold.

When the shadow fell on the lake,

The whirlwind in ripples wrote

Air-bells of fortune that shine and break,

And omens above thought.

But the meanings cleave to the lake,

Cannot be carried in book or urn;

Go thy ways now, come later back,

On waves and hedges still they burn.

These the fates of men forecast,

Of better men than live to-day;

If who can read them comes at last

He will spell in the sculpture,’Stay.’

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Peru Tourist Warning Eased

April 25th, 2014 2 Comments

by Nick Taylor

A year or so ago the State Department warned Americans to avoid areas of Peru including the popular tourist sites Machu Picchu and Cuzco. The warning was based on intercepted chatter that Shining Path militants wanted to kidnap Americans and other westerners visiting the Peruvian Inca highlands. That warning is no longer in place, although Canada cautions its citizens not to travel to certain highland areas if they don’t have to.

It’s good news that Machu Picchu and Cuzco are off the U.S. State Department warning list, because it’s an eye-opening trip that’s relatively easy to make. We spent twelve days there not long ago, flying from New York to Lima and then catching one of the regular, short flights to Cuzco. We loved it and would go back in a heartbeat.

Cuzco is over 11,000 feet high and you need to take something to deal with the altitude. Our Casa Andina hotel in Yanahuara, and most hotels in the Valle Sagrado – the Sacred Valley of the Incas – offer coca tea but you can’t rely on that alone as an altitude remedy.

Machu Picchu

Machu Picchu was the highlight, of course. Most visitors reach this wonder of the world via train from Ollantaytambo, as we did, but trains also leave from Cuzco. Machu Picchu seems impossible when you actually see it, temples and terraces on mountainsides so steep they give you vertigo. Miguel, our coca-chewing guide, explained its social order, its construction, and the Incas’ grasp of astronomy over a several hour visit while llamas grazed on the heights and ignored the visitors. In addition to his excellent English, Miguel spoke Quechuan, a descendant of the Inca language that many natives of the highlands speak with pride.

Inca construction remains a wonder. They didn’t have the wheel, metal tools or cement and their only pack animals were llamas and alpacas, yet they moved and shaped and joined huge blocks of stone into buildings and cities that have endured for centuries without crumbling.

Valle Sagrado

Machu Picchu is a must, but the Valle Sagrado has much more to offer. We visited other Inca sites with Chino our expert local guide. These included farming terraces that grew different crops only feet apart in elevation to mimic different microclimates. We saw Spanish colonial towns and a salt farm of collecting ponds fed by natural springs. We bicycled along mountain trails that brought us in close touch with the rugged Andes. You can also take mountain rides on horseback. Our hotel was a central jumping off spot for all these adventures and even offered night views of the Southern heavens from its small planetarium.

Cuzco

We returned to Cuzco, the former Inca capital, to conclude our visit to the highlands. It’s an easily walkable town with good restaurants and a lot of shops that sell alpaca sweaters at bargain prices. We saw examples of Inca stonework everywhere. On Loreto, a narrow pedestrian street leading to the main square, a sidewalk barker pointed out “the famous twelve-sided stone” in a massive wall. It showed, impressively, the pains the Inca masons took to make their jigsaw puzzle pieces fit into a whole. We visited Inca and pre-Columbian art museums, and the Church of Santo Domingo, built upon the ruins of an Inca temple.

There was a local festival going on. The Festa de Santa Rosa de Lima, patron saint of the police, brought brightly costumed marchers and beautiful dancers into the streets. Detectives and uniformed police were everywhere, chatting up the girls.

Machu Picchu and the Sacred Valley account for most of the American and western tourists in Peru, and they give Peru’s economy a boost, so Peru had a financial as well as a diplomatic stake in neutralizing the Maoist-inspired Shining Path. It remains active as a criminal enterprise that levies tribute from cocaine growers in the remote jungle highlands. It’s always good to travel cautiously, but apparently Americans can once again explore the Inca highlands and enjoy one of the true wonders of the world.

Consumer News, Money News, News, Scam News

Cash The Telemarketing Refund Check

April 24th, 2014

There’s a little payback on the way for 4,800 people who fell victim to a telemarketing scam that promised to lower their credit card interest rates if they paid an advance fee.

The Federal Trade Commission (FTC) says that starting in 2011 National Card Monitor, an Arizona-based company, began a national cold-calling campaign that was allegedly a flat-out swindle.

The FTC says telemarketers falsely told consumers they would get them low-rate credit cards and balances from other cards could be transferred to the new ones. They asked for an advance fee of between $499 and $599. The callers assured consumers they’d get a full refund if they did not get a new card.

You know what happened? Nothing. The company agreed to settle with the FTC in July 2013. Its assets were frozen, but the amount of money it will give back doesn’t look like it will match what consumers lost. It’s a penny on the dollar kind of thing.

PENNY ON THE DOLLAR

If you were cheated by this scam you’ll receive $25.13. And it’s important to cash the telemarketing refund check as soon as possible. It must be cashed within 60 days of the day it was mailed. It’s small change, but why not collect it?

The FTC never requires an advance fee, or any kind of payment for these refunds. So if someone asks you for money to process the refund understand that it’s another kind of scam. Don’t fall for it.

If you think that you should be included in the refund program you can contact the company hired to send the money — Gilardi & Co., LLC. 1-877-295-8829.

Tips To Avoid Getting Ripped Off

Don’t give out your credit card information. Once a scammer gets it, he or she can run up charges on your account, or sell the information to others.

Don’t share any personal or financial information like your bank account or Social Security numbers. Scam artists casually ask for this and then use it in identity theft schemes themselves, or they sell the information.

Question any unsolicited sales calls that are prerecorded, especially if your phone number is on the Do Not Call Registry.

The FTC says, “If your number is on the National Do Not Call Registry, a telemarketer may call you only if you have agreed to accept calls from the company the salesperson works for, if you have bought something from the company within the last 18 months, or if you have asked the company for information within the last three months.”

You can report violations of the National Do Not Call Registry or to register your phone number, visit DoNotCall.gov or call 1-888-382-1222.