Archive for the ‘Credit and Debt’ Category
Fake Site Helps People Spot Loan Scams
April 26th, 2010
by Amy
Esteemed Lending Services
A loan for every situation…guaranteed. Loans for a new business, college, or even a vacation. Consolidating the debt you already have. The loan you need, even if you’ve been turned down by other lenders because of a poor credit history. Loan specialists waiting to help you.
The website looks reliable, the company sounds reputable, and the offer is just what many people are looking for. Unfortunately, this is the pitch for an advance fee loan scam. Scammers promise you a loan, but you soon find out there’s a fee you have to pay first. If you pay, it’s unlikely you’ll see the promised loan, and you run the risk of someone using your personal information to steal your identity.
That’s why the FTC created the Esteemed Lending Services website. The company and site are fakes, designed to tip you off to the signs of an advance fee loan scam (and an important reminder that just because a site looks trustworthy doesn’t mean it is). Click on any link, and you’ll go straight to a page letting you in on the truth behind the site and telling you what you need to know to recognize advance fee fraud.
I hope you’ll link to, write about or talk about the site with your audience, members or anyone else in your network. It’s an opportunity for people to see what an advance fee scam looks like, and avoid losing their hard-earned money.
The FTC also offers other “teaser sites.” Learn to weigh the evidence in diet products and spot claims that signal a rip-off at our phony FatFoe site, or to evaluate health claims through Glucobate, a made-up diabetes treatment. Find them all at wemarket4u.net.
Tags: advance fee, debt, diabetes, identity theft, loans, lose weight, scams
Posted in Credit and Debt, Scam Watch | 4 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 »
National Financial Capability Challenge
February 23rd, 2010
by Nicole
A Message from U.S. Department of Education Secretary Arne Duncan
A few weeks ago, my colleague Colleen wrote about the challenges of her first credit card. Many of us have had similar experiences—when we realize we won’t be able to pay off our debt as quickly and easily as we thought. More than ever, it’s important that kids and young adults learn practical financial skills, so they can avoid costly mistakes.
The U.S. Department of the Treasury and the U.S Department of Education have teamed up to launch the National Financial Capability Challenge for 2010. The Challenge is an awards program designed to increase the financial knowledge and capability of high school students.
During February and March, educators who accept the challenge will teach students the basics of personal finance. Then, students will take a voluntary online exam. In April, educators and top-scoring students will receive award certificates, and schools and states with the highest participation rates will earn special distinction.
All educators working with U.S students (ages 13-19) are encouraged to register for the Challenge, download the free Educator Toolkit, prepare their students, and administer the online exam.
Registration ends on March 14, so please spread the word to high school educators in your local community!
Tags: budget, children, education, financial literacy, high school, kids, teaching
Posted in Credit and Debt, For Kids, Money | No Comments »
Memories (and what I learned) About Getting My First Credit Card
January 27th, 2010
by Colleen
Ever heard the phrase “If I knew then what I know now”? Well, some of us can relate that phrase back to getting our first credit card. You know what I’m taking about…buying the latest electronic gadget, tickets to a must-see concert, or a new outfit for a special date, certain you can pay off the balance rather quickly. But of course, that’s when the unexpected happens: your car needs a new battery, your TV [or computer] gets fried during a thunderstorm (note to self: use a surge protector), or your hours get cut at work. Suddenly, making payments on, let alone paying off, your credit card isn’t going to be as easy as you thought.
Being out on your own can be fun and exciting, but it also means taking on new financial responsibilities. The decisions you make now about how you manage your finances and borrow money will affect you in the future – for better or worse.
Did you know that there are companies that keep track of whether you pay your debts and if you make payments on time? They’re called credit reporting companies, and they sell this information, in the form of a credit report, to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a place to live.
A bad credit history can haunt you for a long time – seven years or more. That’s why the best thing to do is learn how to maintain good credit before there’s a problem. While this might seem complicated at first, it gets easier once you understand the basics of credit and how it works.
So rather than getting your credit education through the “school of hard knocks,” let the FTC help – for free: Getting Credit: What You Need to Know About Your Credit and Focus on Finances: Preparing for Your Future provide tips on budgeting, shopping for credit cards, using cards carefully, and keeping your credit record clean. They also explain credit reports and credit scores, how to protect your identity, improve your credit record, and what to do if you are a victim of identity theft. Focus on Finances also navigates the ins and outs of buying a car, new or used. Both publications are good sources of information for people like you who are just learning about credit and making your own buying decisions.
And as they say, “pay it forward.” Share this information with your friends – and your parents. They may learn something, too.
Tags: children, credit, credit cards, kids, teaching
Posted in Credit and Debt, For Kids | 4 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 »