http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules2.htm

More new rules from the Federal Reserve mean more new credit card protections for you. Here are some key changes you should expect from your credit card company beginning on August 22, 2010:

Reasonable penalty fees

Let’s say you are late making your minimum payment.

• Previously: Your late payment fee may be as high as $39, and you likely pay the same fee whether you are late with a $20 minimum payment or a $100 minimum payment.
• Under the new rules: Your credit card company cannot charge you a fee of more than $25 unless:
  • One of your last six payments was late, in which case your fee may be up to $35; or
  • Your credit card company can show that the costs it incurs as a result of late payments justify a higher fee.

In addition, your credit card company cannot charge a late payment fee that is greater than your minimum payment. So, if your minimum payment is $20, your late payment fee can’t be more than $20. Similarly, if you exceed your credit limit by $5, you can’t be charged an over-the-limit fee of more than $5.

Additional fee protections

• No inactivity fees. Your credit card company can’t charge you inactivity fees, such as fees for not using your card.
• One-fee limit. Your credit card company can’t charge you more than one fee for a single event or transaction that violates your cardholder agreement. For example, you cannot be charged more than one fee for a single late payment.

Explanation of rate increase

• If your credit card company increases your card’s Annual Percentage Rate (APR), it must tell you why.

Re-evaluation of recent rate increases

• Previously: Your credit card company can increase your card’s APR with no obligation to
  re-evaluate your rate increase.
• Under the new rules: If your credit card company increases your APR, it must re-evaluate that rate increase every six months. If appropriate, it must reduce your rate within 45 days after completing the evaluation.

This set of rules is the latest in a series of regulations that implement the Credit Card Accountability, Responsibility, and Disclosure Act (the Credit Card Act). For information on protections under the Federal Reserve’s other credit card rules, read What You Need to Know: New Credit Card Rules Effective Feb. 22.

As of August 15, 2010, the banks and credit unions will no longer pay debit and ATM charges if you do not have enough money in your account. Instead the purchase will be declined.  If you want to continue receiving overdraft protection, you must opt-in to your bank’s overdraft plan. Banks and credit unions are beginning to send out notices for opting-in or out now.

If you decide to opt-out, you will be allowed to opt-in later. You can also cancel your opt-in agreement at any time.

Currently, if you have Overdraft Protection, and you use your ATM card to make a purchase or withdraw money and you do not have enough funds in your account, the bank or credit union will allow the purchase to go through, but will charge you an overdraft fee. These fees can be as much as $20-$30 per transaction. If you make several purchases without enough money in your account, the fees can really add up.

The new laws do not cover checks or automatic bill payments. The bank may still automatically enroll you in their standard overdraft service for these types of transactions or they may require that you make a choice to opt-in or out of this service as well. If you do not want the standard overdraft coverage, talk to your bank. Some banks allow cancellation of the coverage and others do not.

Whether you decide to opt-in to debit and ATM overdraft protection, it is important to remember that every dollar you pay in fees is a dollar you lose. It may have gone towards your retirement, vacation, new car, new house, etc. If you are struggling to make ends meet and need help managing your money talk to a certified credit counselor.

The course covers the benefits of working with a mainstream financial institution in order to meet your financial service needs and avoid losing money by using check cashing or payday lending services. In addition, participants will learn how to:

• Find out what information is being stored about you in ChexSystems;
• What to do about negative information in ChexSystems or other bounced check registries;
• How to keep your account balanced and;
• How to keep your account safe.

The CheckWise web based education and tracking system has many advantages for the student. You will enjoy the easy to navigate format and upon completion of CheckWise, you may print a certificate of achievement. Completing this program and any other requirements of a financial institution may help you to open a checking account at participating financial institutions.  You may present the certificate to a bank or credit union in your area or provide the bank or credit union a telephone number which they can call to verify that you completed the course.

Take the next step and learn about the benefits of being a member of a bank or credit union. Visit us online at www.myfinancialgoals.org to learn how to register and pay for this new service.

• Less than perfect credit?
• No credit?
• Bankruptcy?
• No problem! Generic lending company can help you get approved for a loan right now!

We have all heard the commercials or even seen them in the Internet. Some company offering a loan to help you meet your needs regardless of your credit qualifications. Unfortunately, these offers are often scams or loans that leave consumers worse off financially than they were when they started.

Here are some more warning signs that a lender you are considering is actually operating a scam.

1. The guarantee. A legitimate company will not guarantee they can provide you a loan, “regardless of your credit.” Loans made without accessing your credit report will, most likely, have numerous fees and high interest rates.  You will pay a lot more for the “privilege” of getting a loan regardless of your credit history.
2. Fees. We mentioned fees above. It is a good practice to ask lenders about their fees. A good lender is clear and upfront about their fees. In a typical loan, fees are deducted from the amount you borrow and paid to the lender when the loan closes.  Other lenders may require you pay them upfront in exchange for the loan. This type of agreement is usually a scam.
3. Another indicator a lender is not practicing ethically is if they offer loans over the phone, and then ask you to pay for the loan before it comes through. According to the Federal Trade Commission, this type of lending practice is illegal.[1] 
4. Wiring money. A particularly distressing scam is one where an individual is offered money in exchange for cashing a check and wiring money back to someone else. The check is not legitimate and unfortunately, the consumer who cashes the check is often confronted with repaying the funds or faces potential prosecution.

So what are some ways to protect yourself from these scams? Always take the time to determine if the lender you are dealing with is licensed in your state. Start by visiting your State Attorney General’s office. If they do not have this type of information, they will know what agency in your state does.  Being licensed does not mean the lender is wonderful, but it is a way of determining whether they are trying to obey the laws of your state.

Also, if someone offers you cash in exchange for cashing a check, walk away. This is definitely a scam. And remember, you should not have to pay money in advance in order to receive a loan.

If you are unsure whether a lender is legitimate, ask a friend or family member to look over paperwork with you. You can also shop around for the best loan available. If one lender believes you are loan worthy, then chances are, someone else will too.

For more information on how to recognize loan and financial scams, and for other options on how to manage your finances, call and speak to a certified credit counselor. They are available Monday through Friday, 6:00 a.m. to 7:00 p.m. PST at 1(888)282-5492.

There are two separate pots of money you can tap into when making energy efficient improvements to your home; tax credits offered by the federal government and Energy Star Appliance Rebates offered through your state. 

Federal tax credits will be available through 2010 for thirty percent of the purchase or up to $1,500.  Tax credits are offered on items such as; windows, doors, insulation, roofs, air conditioning units, furnaces, biomass stoves, solar panels and more.  For more information visit Energy Star .

All 50 States, Washington DC, and 5 US territories will have an ENERGY STAR Appliance Rebate program.  Each state has its own timeline for launching the program and will announce the details and rules for how to apply.  If you are in the market for a new appliance check your states approved efficient appliance programs.  

For more information visit the Database for State Incentives for Renewables & Efficiency  or the Department or Energy  Recovery Act Clearinghouse at 1-888-DOE-RCVY.  You may also find other special offers and rebates from Energy Star by using the rebate locator.

Are you struggling to pay your mortgage or sell your home to avoid foreclosure? Help may be right around the corner.  Last month the government announced that it is making adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) programs.

While the programs listed below have been updated to allow additional people to qualify, the biggest benefit to consumers are the incentives HAMP is offering to lenders and loan servicers who agree to provide a homeowner with one of the services listed below. The incentives encourage loan servicers to agree to loan modifications, refinance loans and agree to short sale offers that they previously may have denied.

Here are just a few of the highlights of programs for homeowners coming down the road. Some will be available in the next two weeks; others will be rolled out over the coming months.

1.     For borrowers who have not been able to refinance a loan due to the decreased value of their home, the HAMP may help you get into a more affordable mortgage. Borrowers’ loans must be backed by Fannie Mae or Freddie Mac. To see if your loan qualifies click here and select the link for Fannie Mae or Freddie Mac.

This is also an option for people who have a second lien on their property. Refinancing may allow you to consolidate the two loans and have one, affordable monthly payment.

2.     If you have experienced a loss of income or an increase in the interest rate on your home loan, a mortgage modification may be the key to staying in your home. If you are eligible for the modification, visit this website to find out if your lender has a contract agreeing to participate in the Home Affordable Modification Program.  

3.     Another option for homeowners who are not able to stay in their homes is through the Home Affordable Foreclosures Alternative. If you sell your home through a short sale or deed-in-lieu of foreclosure, you may receive up to $3,000 to help with relocating to a more affordable residence. Visit http://www.makinghomeaffordable.gov/hafa.html to find out more information.

Eligibility for all programs is different. To determine whether you qualify go to http://www.makinghomeaffordable.gov/eligibility.html and click on the link under the program you are interested in. 

If you need assistance with your mortgage and understanding the different options available, talk to a Department of Housing and Urban Development (HUD) approved housing counseling agency near you. Also, foreclosure and loan modification scams are increasing in numbers. Be wary of anyone who offers to “save” your home or lower your loan payment “for a fee”.

For more information about any of these programs visit www.makinghomeaffordable.gov.

New York, NY 10005 § phone (866) 262-8088 § www.coanet.org

North Seattle Community College Foundation dba American Financial Solutions is interested in becoming accredited by the Council on Accreditation (COA).  COA is a national organization that sets standards for quality service and sends teams of experienced professionals to visit organizations to see whether they meet these standards.

Since you are currently using or have recently used this American Financial Solution’s services, it would be very helpful for COA to know what you think about those services. 

To start the survey, call the toll-free number contained below or go on-line. Note: When you are prompted, please enter the organization code shown below.

TOLL-FREE NUMBER: 888-312-2415

ON-LINE: http://info.coanet.org/survey?iv=b6120fcd09375a6&q1=0065000000Cqmhh

ORGANIZATION CODE: 2064

The information you provide will be kept confidential and what you tell us will not contain your name.

Thank you for your help.

For questions 1 – 11 select (A) Always, (S) Sometimes, or (N) Never.

For questions 12 – 15 select (T) True or (F) False.

  Scoring

How Did You Score?

26 to 30 points

A score of 26 to 30 points suggests that you are handling your finances very well. Keep up the good work!

21 – 25 points

A score of 21 to 25 points suggest that you are successful at managing some aspects of your financial life; however, you may want to investigate opportunities for increasing your savings or reducing your debts.

16 – 20

A score of 16 to 20 points suggests that while you typically manage your finances well, you are probably missing some items that can either improve your current situation or protect you from future hardship. You may benefit by talking to a credit counselor and developing a step-by-step approach for managing your money.

0 – 15

A score of 0 to 15 points suggests that you need to improve your money management skills to protect yourself and your finances. Think about taking a financial education course or talking to a credit counselor to help you learn ways to successfully and effectively manage your finances. 

Educational Credit Management Corp. said the data included names, addresses, Social Security numbers and dates of birth of borrowers, but no financial or bank account information.

The data was on “portable media” that was stolen sometime last weekend, ECMC said in a statement. Company spokesman Paul Kelash wouldn’t specify what was taken, citing the ongoing investigation, but said there were no indications of any misuse of the data.

The St. Paul-based nonprofit said it discovered the theft last Sunday and immediately contacted law enforcement, and made the theft public when it received permission from authorities. The Minnesota Bureau of Criminal Apprehension is leading the investigation.

ECMC said it has arranged with credit protection agency Experian to provide affected borrowers with free credit monitoring and protection services. Borrowers will be receiving letters from ECMC soon on how to sign up, gain access to fraud resolution representatives, and be provided with identity theft insurance coverage.

“We deeply regret that this incident occurred and the stress it has caused our borrowers and our partners and are doing everything we can to help protect our borrowers’ identity and personal information,” Richard Boyle, president and CEO of ECMC, said in the statement.

ECMC is a contractor for the U.S. Department of Education to provide collection and document management services. It guarantees student loans through the Federal Family Education Loan program, and provides support services for student loans that are in default or bankruptcy. The company can act as the guarantor, loan holder or loan servicer.

Department of Education spokesman Justin Hamilton said protecting student privacy is a top priority.

“We are working with ECMC to make sure that affected individuals are provided with resources to protect their information and to provide with them with identity theft insurance,” Hamilton said. said protecting student privacy is a top priority for the agency.

Those who believe they may be affected were encouraged to visit ECMC’s Web site, www.ecmc.org, or call 1-877-449-3568 beginning Saturday.

According to the Privacy Rights Clearinghouse, more than 347 million individuals have been affected by data privacy breaches at hundreds of government agencies, universities and businesses since 2005.

Student loan company: Data on 3.3M people stolen | KOMO News – Breaking News, Sports, Traffic and Weather – Seattle, Washington | National & World News.

Today, having a good credit report and score is a necessity. Below are some methods for establishing or reestablishing positive credit, so that when it comes time to apply for a job or establish a utility account, you can provide your credit information without fear or being denied or being asked to pay large fees. 

First a bit about credit reports and scores

A credit score is a number used to help lenders identify the credit risk associated with lending you money and there are a variety of scoring methods used to determine an individual’s score.  There is the FICO Score, the Vantage Score, Equifax’s ScorePower, and Experian’s Scorex PLUS.  Additionally, some large lenders have developed their own scoring models.

You can get a free copy of your credit reports one time per year at www.annualcreditreport.com however, to receive the credit score there is a nominal fee.  This is the only site where you can receive a truly free copy of your credit report.

No credit score

It is hard to believe that some people do not have a credit score, yet it’s true.   This occurs when there is no data or a lack of data for the credit scoring methods to calculate. 

Adults that have never used credit and young people just starting out may find that it is difficult to get credit or a loan.  This is because without that information, lenders do not know if you are a good credit risk or if you will make your payments on time.   Follow these tips to begin your positive credit history:

1. Apply for a secured credit card through your bank.  A secured card requires that you put money down to secure the credit card. This makes it less risky for the lender because they know if you do not pay, they will get their money. 
2. Ask someone with a good credit history to co-sign for you.  A co-signer becomes liable for the debt in the event you do not make the payment. 
3. Once you get credit, be certain to make your payments on time, every time. 
4. On credit cards, avoid charging more than thirty percent of the limit.  For example, if the limit is $300 avoid using more than $100.
5. Avoid opening multiple credit card accounts.  Build your credit slowly and methodically.
6. Remember that you are building your history, the longer you keep an account the better. 

Low credit score

Low credit scores may be caused by a number of factors such as a short period of time using credit, late payments, too much credit, collection accounts and bankruptcy.  If you find that you have a low credit score, you are not alone.  Turn your focus to improving your credit score by following these tips;

1. Dispute any invalid or incorrect information in your credit profile.
2. Pay all existing credit accounts on time, every time.
3. For bills you have fallen behind on, get current and stay current.
4. Focus on paying down debt and credit card balances.  Avoid using more than thirty percent of any revolving credit balances. 
5.  Avoid opening new accounts in order to transfer existing balances.
6. Keep accounts with a long, positive credit history open.

It takes about six months to begin establishing credit and two years to see significant changes in a negative credit report and score. On the other hand, it can take one late payment to undo the positive credit you have established. Keep track of what is on your credit by checking it annually at www.annual creditreport.com.  Your future job, home or auto insurance rate depends on it.