All posts by Barbara Nevins Taylor

First Memorial Day And the Civil War

The Civil War took the lives of 750,000 soldiers from the North and the South and many who fought in the battles and watched fellow soldiers die, knew that wound needed healing. In 1868, three years after the war ended,  veterans’ leader and Union Major General John A. Long proposed Memorial Day as day of tribute and suggested decorating the graves of the war dead with flowers. May 30th was chosen as Decoration Day, and it may be because flowers were in bloom in every part of the reunited nation then.

General and Mrs. Ulysses S. Grant presided over the first ceremony in Arlington National Cemetery on the veranda of what was once the home of General Robert E. Lee.  After the ceremony veterans and  children from the Soldiers’ and Sailors’ Orphan Home walked through the cemetery placing flowers on the graves, reciting prayers and singing hymns.

The Veterans Administrations says springtime tributes to the Civil War dead already had been held in cities in both the North and the South. Columbus, Mississippi held one of the first on April 25, 1866. Women decorated  graves of Confederate soldiers who killed in the battle at Shiloh.  They also placed flowers on the bare graves of Union soldiers.

Since 1866, cities in the North and South have argued over which was first to begin the decoration ceremonies.  Macon and Columbus, Georgia; Richmond, Virginia; Carbondale, Illinois; and Boalsburg, Pennsylvania all claim the title.

One hundred years later, in 1966, President Lyndon Johnson and Congress named Waterloo, New York as the “birthplace” of Memorial Day.  The town first honored its Civil War veterans on May 5, 1866 and it was a community event where flags flew at half-staff and businesses closed.

 

eBay Hack: Time to Change Your Password

If you use eBay, it’s time to change your password. It’s troubling that the company was hacked in late February or early March, discovered this about two weeks ago, and waited until May 21st to start sending  email alerts. The alert didn’t hit my inbox until May 25th. Clearly, companies that get hacked should notify consumers immediately.

eBay says hackers got access to the credentials of a few employees and broke into data bases with customers names, encrypted passwords, email and physical address, phone numbers and dates of birth.  In the email, eBay Global Marketplaces President Devin Wenig said the company conducted, “extensive analysis and found no evidence that any customer  financial information or credit card was involved.”

Apparently, no PayPal information was hacked. 

Nevetheless, the company is asking all its users to change eBay passwords  and it’s relatively simple.

This hack reminds us of the need to change passwords often on sites that we use frequently.

And even though, eBay says no financial information was compromised, it’s a good idea to keep an eye on your accounts.

This is what you need to do: 

  • Monitor accounts for unauthorized charges or debits.

 

  • Regularly review accounts online if possible, and at a minimum examine monthly statements closely.

 

  • Report even small problems immediately. Some thieves may process a small charge or debit just to see if the account is live or whether the consumer notices.

 

  • Be aware that fraudulent charges may occur many months after information is stolen.

 

  • Even if you think the PIN on your debit card was not stolen, consider changing the PIN to be on the safe side.

 

  • Alert your bank or card provider immediately if you suspect fraud.

 

  • Alert your bank or card provider immediately if you suspect an unauthorized debit or charge.

 

  • If you find  fraudulent charges, ask the card provider to close access to the account and issue a new card before more transactions come through.

 

  • Follow up with the bank or card provider and maintain records. Call the bank or credit card provider first, also ask about how you can follow up in writing. Make sure you keep a copy of your correspondence.

If you don’t like the way your bank is handling things, the CFPB says, “If consumers are unsatisfied with how their bank or card provider responds to a report of fraudulent charges, they can submit a complaint to the CFPB. Card providers should investigate charges and respond quickly. Consumers have a right to see the results of the bank’s or card company’s investigations.”

 

Volunteer Caregivers Show the Way

by Barbara Nevins Taylor

About 300 people packed a church recreation room in Toms River, New Jersey, to share a meal and the knowledge that they enrich the lives of strangers. These volunteer caregivers show the way to help older people in our communities. They deserve applause and more and being with them makes you wonder why this group isn’t the model for a movement across the U.S.

Barbara and Lynette Whitehead

I met these inspiring people because Lynette Whiteman, the executive director of Caregiver Volunteers of Central Jersey, invited me to give the keynote speech at the group’s annual volunteer appreciation dinner. I talked about helping my mom,  Aunt Ethel and Cousin Marilyn and I ended in tears.  But my participation is beside the point here.

The others who were in the room are the real stars. In their communities in Ocean County they use their own vehicles and invest their physical and emotional energy to help older people live at home and hold on to things that are important to them.  Most of the volunteers are in their 60’s and 70’s.

Each volunteer works with what they call a “care receiver.” They do the little things that in previous generations a family member who lived nearby might help out with. They shop for groceries, take someone to a doctor’s appointment and often spend much needed person-to-person time. Some even bring a pet.

Visits like these matter. I know that my mom wanted to chat and brightened at the possibility of conversation. “What’s new in the world of news, sports and entertainment?” she always asked.  And if I didn’t hold up my part of the talking, she might even ask the same question again. She craved the communication experience and wanted to sit across from someone who was animated and distracted her from the daily routine.

The volunteer caregivers brighten lives in the part of New Jersey with the oldest population. Many of the people they help have children who live too far away to assist. Others outlived their own kids and family members. Most of those paired with a caregiver are in their 80’s and 90’s and twelve are over 100.  And Angela Spagnoli, at 107, is the oldest.

The volunteers also give a break to grown children who are full-time caregivers.  54-year-old Penny Kellow counts on the Volunteer Caregivers as an essential resource. Her dad Robert lives with her and suffers from Alzheimer’s Disease. He requires a great deal of attention. She says, the volunteers who come to give her a break relieve the stress and give her a little time off to take care of herself.

The Volunteer Caregivers of Central Jersey offer essential services and it seems like a perfect model for neighboring counties, the state and  the entire nation. We’re going to need a lot of people helping others.  The Centers for Disease Control says the older population is growing at an unprecedented number because Americans live longer than ever before, and because of aging Baby Boomers. By the time the last Baby Boomer turns 65 in 2030, 1 in 5 Americans, about 72 million people, will be older adults.

Consider this a Call To Action.

Don’t call us “seniors.”  But do work with us and groups like the Volunteer Caregivers of Central Jersey to figure out how one generation can help the next and how neighbors can enable us to live relatively gracefully in our own homes.

 

 

 

 

 

Washington State Aims to Stop Pension Advance Companies

We’ve reported about the dangers of taking an advance on your pension because you can end up losing a big chunk of your money. Now Washington State aims to stop  pension advance companies from doing business with people who live in the state. It issued cease and desist orders to two big players in the national pension advance business.

The Washington Department of Financial Institutions (DFI) Consumer Services Division filed charges against Pensions, Annuities and Settlements, LLC, and Pension Funding, LLC.  The companies are accused of  operating without a lending license and making  loans to Washington consumers as cash advances secured by future income from pensions.

Washington DFI  alleges the companies made, “at  least 95 loans to Washington consumers, charging fees that would equate to interest rates ranging from 22.7 percent to 129.9 percent.”

In Washington State, the  maximum interest rates can legally range from 12  to 25 percent.

The state claims, “pensioners signed a contract to receive a lump sum of cash, totaling sometimes as much as $60,000, in exchange for monthly payments from their pensions to the lender for a fixed number of months, either by direct withdrawal from the pensioner’s bank account or from another bank account set up by the lender for the sole purpose of collecting the required payment.”

Consumers  who signed up with these companies are in 23 different pension systems including the U.S. Department of Defense, U.S. Department of Veterans Affairs, and Washington Department of Retirement Systems.

The state says, ” Pension Funding, LLC claimed it did not make “loans,” but DFI confirmed one borrower and is confident more will be identified as the case proceeds”.

New York State and Massachusetts are also investigating pension advance schemes.  State officials and those at the Consumer Financial Protection Bureau are interested in receiving complaints if you’ve been ripped off.

You can contact the Consumer Financial Protection Bureau (CFPB) at 855-411-2372 or www.consumerfinance.gov/servicemembers.

 

 

Medical Bills Drag Down Credit Scores

At some point a lot of of us discover that we owe a medical bill for something that we thought was paid long ago.  Maybe we owe money, maybe it was a billing error. Nevertheless, medical debt can have a seriously negative impact on a credit score. That’s why it’s really important to check your credit report regularly. You can do it for free through annualcreditreport.com

The Consumer Financial Protection Bureau (CFPB) found that we’re “overly penalized for medical debt that goes into collections.”  Once this shows up on your credit report it can affect your score by a least 10 percent. If your credit is already shaky, your score may drop as much as 22 percent and that could cost you tens of thousands of dollars when you borrow money to buy a home or use credit.

Your credit score is based on information in your credit report compiled by credit reporting agencies, or credit bureaus. These scores play a role in your financial life because most lenders decide to grant credit and set interest rates based on them.

Every time you make a late payment, it’s likely to be noted on your credit report and that decreases your credit score.  Lenders will take more caution and charge higher interest rates to those who have a history of late or missed payments. 

The Federal Reserve Board reports that over half of all collections on credit reports involve medical bills. Most medical debt goes directly to collection agencies. And in some instances consumers may not even be aware of a debt that has been sent to collections or that it is on their credit record. A collection account generally can stay on a report for up to seven years.

The CFPB took up the issues after it received many complaints from consumers. It found many credit scoring models don’t distinguish between medical and non-medical debt in collections and called for change.

CFPB Director Richard Cordray said, “Getting sick or injured can put all sorts of burdens on a family, including unexpected medical costs. Those costs should not be compounded by overly penalizing a consumer’s credit score.” 

 

 

 

 

 

Crackdown on Sallie Mae and Student Loan Servicers

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

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.

 

 

 

Danger of Pension Advance Plans

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→

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Snapchat And Its Not-So Disappearing Photos

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.

 

 

 

 

 

 

Warning About Mortgage Debt for Older Americans

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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warning About Deceptive Auto Ads

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

  1. Do I have to pay additional fees, a down payment or a big payment at the end of a lease or payment schedule?
  2. Does the advertised price apply only to certain models?
  3. Can I order a vehicle, or does the price only apply to one at the dealership?
  4. Do I need certain qualifications to get the discount, the price or the advertised credit or financing?
  5. Do I have to pay the loan off in a short period of time like 36 months?
  6. Do I need to take the loan for a specific time period?
  7. Do I have to buy extra things like a warranty, a service contract or rustproofing?
  8. Will I get same good price if I pay cash or get my own financing from a bank or credit union?
  9. Do the advertised payments remain the same for every month of loan, or do they increase after a few months?
  10. Is there a balloon payment at the end?
  11. 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:

 

 

Why Medicare Advantage is Popular

 

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  

 watchmoreFind out about Medicare Supplemental plans: Figuring Out Medicare Choices

 

 

Lost A Job And Worry About Health Insurance?

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.

Doctors and Patient

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.

 

 

 

 

 

 

 

Who Signed Up For Obamacare

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.

 

 

 

 

 

 

 

Are Free Credit Score Offers Real?

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.

Courtesy 401kcalculator.org

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?

Credit Score Simon Cunningham

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. 

watchmoreWhy 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.                  

How Payday Lenders Work

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.

Courtesy Pixabay
Courtesy Pixabay

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

 

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