Archive for the ‘Banking’ Category
Fake Check Scams
March 10th, 2010
by Guest Blogger
[Today's guest blogger is Susan from the Consumer Federation of America.]
An official-looking envelope arrives in the mail with a check or money order for $20,000 inside. The letter says you have won $4 million in a sweepstakes or lottery. You just need to wire $3,000 for taxes to claim the rest of your winnings. Is this your lucky day?
No! It’s a fake check scam that will cost you thousands. These scams take many forms. You might unexpectedly receive notice that you are getting a grant or that a company wants to hire you to work at home as a mystery shopper. You might be selling something and the “buyer” sends you more than your asking price with instructions to wire the extra money back to him or to someone else.
- A fake check from an FTC investigation
No matter the story, fake check scams always involve someone giving you a genuine-looking check or money order and asking you to wire money somewhere in return. After you deposit the check and send the money, you will learn that it was phony. The crook will have the money, and you will owe it back to your bank or credit union.
According to a survey by the Consumer Federation of America, many people mistakenly believe that banks and credit unions confirm that checks are good before posting that money to the account. That’s not how it works. Funds from deposited checks are available within days, but a counterfeit check can take weeks to detect. You’re responsible for checks you deposit because you’re in the best position to know if the person who gave it to you is trustworthy.
Believe it or not, losing thousands of dollars might not be the worst part of a fake check scam. If there isn’t enough money in your account to cover the check, you could face collection or be sued. Your account may be frozen or closed, and you could be reported to a database of checking account abusers, making it difficult to open another account. Some victims are even charged with check fraud.
Remember, there is no legitimate reason for anyone to give you a check or money order and ask you to send money somewhere in return. If that’s the deal, it’s a scam. Check out our website for more information about these scams and how to protect your hard-earned money.
Tags: check, lottery, money transfer, mystery shopper, wire transfer
Posted in Banking, Scam Watch | 5 Comments »
New Credit Card Rules Explained
March 5th, 2010
by Guest Blogger
[Today's guest blogger is Yvonne from the Federal Reserve.]
As the famous folk song goes, “Oh, the times they are a changing.” And so have the rules governing your credit card. (I guess that song reference shows my age, huh?) Well, no matter what age you are, 
you’ll want to know about the new federal credit card protections that took effect on February 22.
The new rules require credit card companies to adopt practices that will benefit credit card users, for example:
- Your credit card company cannot change your interest rate or make significant changes to the terms of your account without giving you 45 days notice and the chance to close your account.
- If you make more than the minimum monthly payment, the excess amount must be applied to the balance with the highest interest rate.
- If your credit card company raises your interest rate, the new rate will apply only to new charges, not to your existing balance.
The Federal Reserve has launched a new site, which summarizes the new rules and explains how they will affect you. On the site, you can:
- Get the basic facts about common credit card options, interest rates, and fees.
- Estimate how long it will take to pay off a credit card balance and develop a plan for paying off the balance sooner.
- Use interactive features to learn more about credit card offers and the new features of your monthly statements.
- Find a glossary of common credit card terms for quick reference.
- Read federal credit protection laws.
- Discover additional resources, such as the “5-Tips” consumer publication series (also available Spanish).
Tags: credit, credit card rules, credit cards
Posted in Banking, Credit and Debt | 7 Comments »
New Video Explains Rights of Consumers Facing Debt Collection
January 22nd, 2010
by Lisa
During uncertain economic times, it’s especially important that people not only know how to manage their debt, but also their interactions with debt collectors. To remind people of their rights – and debt collectors of their obligations – the Federal Trade Commission is featuring a new video at ww.ftc.gov/MoneyMatters. The video also is available in Spanish.
The FTC’s Money Matters website offers information about avoiding scams, dealing with mortgages and loan modifications, using job placement services, applying for credit and loans, and coping with debt. These materials are available in Spanish as well.
Feel free to pass this along to organizations and individuals in your network.
Tags: bill collectors, credit, debt collection
Posted in Banking, Credit and Debt, Money | 5 Comments »