The Daily Dollar
Get the inside scoop on financial privacy and identity theft legislation and other issues affecting your wallet.
Finally some action against the worst credit card practices Posted
by money mom at 05/02/08 05:25 PM
The federal banking regulators have finally done something about credit cards. They have approved for public discussion a proposed rule that would stop or limit some of the worst credit card practices. There is much more to be done, but also some reason for optimism. The proposed rule, announced on May 1st and made publicly available on May 2nd, finally acknowledges that consumers need real protection, not just disclosure. All the disclosure in the world can’t make it fair to send the bill too close to the due date; to raise the interest rate on money already borrowed: or to charge a fee for a problem caused by the bank’s practice to allow a credit hold or a debit hold.
The proposed rule responds to a sustained outcry from consumers and strong interest in Congress in credit card reform and in reform of bank account practices such as overdraft loans.
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BANK FEES… (The Clandestine Pick-pocket) Posted
by Jamie at 04/28/08 11:31 AM
Have you ever added up your bank fees? Wow! When I added up the bank fees on my fairly new business account, I had a suprise I wasn't banking on...
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Buying a car? That super-low monthly payment offer may cause trouble down the road. Posted
by money mom at 04/18/08 04:00 PM
Don't get caught upside down...Should your car take six years or longer to pay off?
Car dealers now offer six and even seven year car loans. This reduces the monthly payment, but increases the total cost of the loan. The low payment makes the car look cheaper than it really is – and it increases the time for which you will owe far more than the car is worth. That means when you are ready to trade in the car, you have to come up with extra cash or roll the amount you still owe into the loan on your next car, making the problem worse. Experts call this being “upside down” on the loan. To read more, click here.
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Mortgage mess help – too little, too late? Posted
by Gail H at 04/14/08 03:28 PM
The Federal Reserve Board has proposed some changes in regulations to respond to the subprime mortgage mess, but the first draft of those regulations is too short on real consumer protections.
The Board acknowledges the need for strong regulation and the problems faced by borrowers when dealing with the mortgage lenders. But its proposals won’t prevent another mortgage meltdown. That’s because the Board continues to make access to credit the guiding principle for regulation – even when the terms of the credit are harmful to the consumer.
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Retirement savings - diversify! Posted
by money mom at 04/07/08 12:40 PM
If your company stock takes a nose dive like Bear Stearns – from $170 to $10 a share in a year – would your retirement plans evaporate as quickly? They just might if your 401(k) is heavily invested in company stock.
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No more dangerous financial products! Posted
by money mom at 03/31/08 04:04 PM
We expect the government to keep dangerous products off the market – toys, prescription drugs, food. But dangerous financial products?
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Where are your credit card and debit card numbers? Posted
by money mom at 03/24/08 12:53 PM
Going to the grocery store can hold more dangers than rotten meat or tainted spinach – the Associated Press reports that thieves stole 4.2 million payment card numbers from an East Coast supermarket chain. About 1,800 of those numbers already are being fraudulently used.
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Could your tax refund be stolen? Posted
by money mom at 03/13/08 05:59 PM
Stolen credit cards, stolen Social Security numbers and now stolen tax refunds? The Internal Revenue Service’s national taxpayer advocate lists ID theft among the most serious problems facing taxpayers today.
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Gift Cards – An Unexpected Pitfall - Bankruptcy! Posted
by money mom at 03/12/08 12:11 PM
The bankruptcy filing of Sharper Image raises questions beyond where you can get a Human Touch Zero-Gravity Massage Chair. Namely, if you have a Sharper Image gift card – or a gift card for any other retailer facing financial troubles – can you still use it?
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What the Postal Service and the FTC didn’t say about ID theft Posted
by money mom at 03/03/08 11:37 AM
Money Mom and many of her colleagues at Consumers Union got a brochure in the mail this past week from the Postal Service warning about identity theft. The brochure is from the Federal Trade Commission and tells consumers how to “Deter, Detect and Defend” themselves from identity thieves… with one glaring oversight: no information on how to place a security freeze.
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Spending is not the way to save Posted
by money mom at 02/22/08 06:14 PM
Monday’s Tip from Money Mom – Bank of America’s “Keep the Change” and Wachovia's "Way2Save" programs aren’t the way to build up family savings. Instead, pick an amount to save from every paycheck and “pay yourself first” by making an automatic deposit directly into savings every time you get paid.
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Read your bank statements carefully Posted
by money mom at 02/11/08 12:14 PM
Money Mom’s Monday Tip: Read Your Bank Statements Carefully
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Telephone check? Could the Wachovia “demand draft” problem happen to you? Posted
by Gail H at 02/06/08 12:57 PM
Did you know that your bank can pay someone from your checking account because that person says you authorized it - even though you never signed a check?
News stories today say that this happened at Wachovia Bank, and that documents from a lawsuit show that Wachovia knew about it.
Consumers Union can't say what Wachovia did or didn’t know, but here is what consumers need to know: The method reported as the means to steal from Wachovia’s customers can occur at other U.S. banks.
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Kiss Credit Card Rip-offs Goodbye! Posted
by Meg at 02/04/08 04:27 PM
We're taking aim at unfair industry practices...
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Don't borrow from your 401(k) Posted
by money mom at 01/28/08 11:24 AM
Monday's Tip from Money Mom - Avoid a Debit Card Tied to Your 401(k).
Money Mom just heard about a truly bad idea - a debit card that pulls money straight from your "qualified retirement plan" such as a 401(k). You spend money for everyday purchases using the debit card, but with every purchase you are borrowing a bit more money from your retirement account.
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Money Mom says don’t let tax time become ID theft time Posted
by money mom at 01/21/08 07:22 AM
January is the month when we all receive tax information containing our social security numbers. Protect that mail and be sure it gets to you, not an identity thief.
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Money Mom says get your free credit report Posted
by money mom at 01/11/08 05:56 PM
Monday’s tip from Money Mom – get your free annual credit report online at www.annualcreditreport.com, by calling 877-322-8228, or by making a request by mail.
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Monday’s tip from Money Mom: Don’t borrow your tax refund Posted
by money mom at 01/07/08 12:03 PM
Money Mom says: Stay away from offers to get your tax refund instantly. This is not a faster tax refund, it is a high cost loan.
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New "Direct Express" card for Social Security payments Posted
by Gail H at 01/04/08 12:15 PM
The U.S. Treasury Department announced today the “Direct Express” card. This card could set a new standard for prepaid cards, with real consumer protections and no nasty overdraft fees.
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Monday Tip From Money Mom: Spend those gift cards now! Posted
by money mom at 12/31/07 06:00 AM
As a consumer advocate, I usually say that consumers should make a budget and stick to it, think carefully before making purchases, as so on. Here is a fun and refreshing piece of consumer advice: if you just received a gift card this holiday season, get out there and spend it!
A nationwide survey by the Consumer Reports National Research Center in November 2007 found that 27% of consumers who received a gift card the year before still had not spent all of the funds on those gift cards. Read more about this survey at: http://www.consumersunion.org/pub/core_financial_services/005188.html.
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Prepaid cards – pitfalls and profit? Posted
by Gail H at 12/18/07 02:02 PM
A prepaid spending card looks and works like a bank account debit card, but it may have more fees and fewer consumer protections. It is time for the Federal Reserve Board to clearly apply basic consumer protections such as the right to get stolen money back within ten business days to all general spending cards, particularly cards which are designed to hold enough money at one time that they can serve as substitutes for a bank account.
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Monday’s tip from Money Mom: “No payments until 2009” may cost more than you think! Posted
by Gail H at 12/17/07 11:36 AM
The advertisements are full of “buy now, pay later” promises, such as “no payments, no interest for 90 days” and “No payments until January 2009.” These programs can cost much more than you might expect. They are often filled with fine print conditions that can cause you to lose the “no interest” feature.
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Do you know where your SSN is? Posted
by Brent at 12/12/07 02:23 PM
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It’s time to get Social Security numbers off the Internet, out of our wallets, and out of our mail.
The Federal Trade Commission (FTC) held public a workshop on Security Numbers (SSN) in Washington, DC on Monday and Tuesday, December 10 and 11, 2007. |
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No One Is Immune From Identity Theft Posted
by Brent at 12/07/07 04:44 PM
Whether you're from Malibu or Manhattan, Tacoma or Tallahassee, no one is immune from identity theft.
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Money for nothing Posted
by Brent at 11/15/07 05:44 PM
A new study exposes subprime credit cards with high start up fees.
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