All posts by Barbara Nevins Taylor

Videos, Vids: Student

President Obama Promotes Affordable College Tuition

President Obama stood up for college students and those who hope to go to college and despair at the debt that they face.  Here’s what he said during a speech at the State University of New York Buffalo:

 

THE PRESIDENT:  Hello, Buffalo!  (Applause.)  Hello, Bulls! (Applause.)  Well, it is good to be back in Buffalo, good to be back in the north.  (Applause.)

I want to begin by making sure we all thank Silvana for the wonderful introduction.  Give her a big round of applause.  (Applause.)  Her mom and dad are here somewhere.  Where are they? I know they’re pretty proud.  There they are right there.  Give mom and dad a big round of applause.  (Applause.)

A number of other people I want to acknowledge here — first of all, our Secretary of Education, Arne Duncan, who’s doing a great job.  (Applause.)  One of the finest governors in the country, your Governor, Andrew Cuomo, is here.  (Applause.)  Your outstanding Mayor, Brian Higgins, is here.  Give him a big round of applause.

AUDIENCE:  Congressman!

THE PRESIDENT:  What?

AUDIENCE:  The Mayor is Byron Brown!

THE PRESIDENT:  Byron Brown.  That’s — I’m sorry, Byron.  (Applause.)  What I meant was — your Congressman, Brian Higgins, is here.  (Applause.)  Your Mayor, Byron Brown, is here.  (Applause.)  This is what happens when you get to be 52 years old.  (Laughter.)  When I was 51 everything was smooth.  (Laughter.)  But your Congressman and your Mayor are doing outstanding work.  We just rode on the bus over from the airport, and they were telling me that Buffalo is on the move.  That was the story.  (Applause.)

A couple other people I want to acknowledge — SUNY Chancellor Nancy Zimpher, is here, doing a great job.  (Applause.)  University president Satish Tripathi is here.  (Applause.)   And we’ve got all the students in the house.  Thank all the students for being here.  (Applause.)

Now, today is a check-in day at the dorms.  So I want to thank all the students for taking a few minutes from setting up your futons and — (laughter) — your mini-fridges just to come out here.  I hear that the last sitting President to speak here was Millard Fillmore.  (Applause.)  And he was actually chancellor of the university at the same time — which sounds fun, but I’ve got enough on my plate.  (Laughter.)

This is our first stop on a two-day road trip through New York and Pennsylvania.  (Applause.)  And after this I head to Syracuse — (applause) — yay, Syracuse — to speak with some high schoolers.  Tomorrow I’m going to visit SUNY Binghamton and Lackawanna College in Scranton.  But I wanted to start here at University at Buffalo.  (Applause.)

And I wanted to do it for a couple reasons.  First, I know you’re focused on the future.  As I said, talking to the Mayor, he was describing a new medical school — (applause) — and new opportunities for the high-tech jobs of tomorrow.  So there’s great work being done at this institution.  I also know that everybody here must be fearless because the football team kicks off against Number 2, Ohio State, next weekend.  (Applause.)  Good luck, guys.  (Laughter.)  It’s going to be a great experience.  (Laughter.)  It’s going to be a great experience.  It could be an upset.  (Applause.)

And third, and most importantly, I know that the young people here are committed to earning your degree, to helping this university to make sure that every one of you “Finishes in Four” — (applause) — makes sure that you’re prepared for whatever comes next.  And that’s what I want to talk about here today.

Over the last month, I’ve been visiting towns across the country, talking about — yes, feel free to sit down.  Get comfortable.  (Laughter.)

AUDIENCE MEMBER:  We love you!

THE PRESIDENT:  Thank you.  I love you, too.  (Applause.)

Over the last month I’ve been out there talking about what we need to do as a country to make sure that we’ve got a better bargain for the middle class and everybody who’s working hard to get into the middle class -– a national strategy to make sure that everybody who works hard has a chance to succeed in this 21st century economy.  (Applause.)

Now, I think all of us here know that for the past four and a half years, we’ve been fighting back from a brutal recession that cost millions of Americans their jobs and their homes and their savings.  But what the recession also did was it showed that for too long we’ve seen an erosion of middle-class security.
So, together, we saved the auto industry.  Together, we took on a broken health care system.  (Applause.)  We invested in new technologies.  We started reversing our addiction to foreign oil. We changed a tax code that was tilted to far in favor of the wealthy at the expense of working families.  (Applause.)

And add it all up, today our businesses have created 7.3 million new jobs over the last 41 months.  (Applause.)  We now generate more renewable energy than ever before.  We sell more goods made in America to the rest of the world than ever.  (Applause.)  Health care costs are growing at the slowest rate in 50 years.  Our deficits are falling at the fastest rate in 60 years.  (Applause.)

Here in Buffalo, the Governor and the Mayor were describing over a billion dollars in investment, riverfront being changed, construction booming — signs of progress.  (Applause.)

So thanks to the grit and the resilience of the American people, we’ve cleared away the rubble from the financial crisis. We’ve started to lay the foundation for a stronger, more durable economic growth.

But as any middle-class family will tell you, as folks here in Buffalo will tell you, we’re not where we need to be yet.  Because even before the crisis hit — and it sounds like Buffalo knows something about this — we were living through a decade where a few at the top were doing better and better, most families were working harder and harder just to get by.  Manufacturing was leaving, jobs moving overseas, losing our competitive edge.  And it’s a struggle for a lot of folks.

So reversing this trend should be, must be, Washington’s highest priority.  It’s my highest priority.  (Applause.)  I’ve got to say it’s not always Washington’s highest priority.  Because rather than keeping focus on a growing economy that creates good middle-class jobs, we’ve seen a faction of Republicans in Congress suggest that maybe America shouldn’t pay its bills that have already been run up, that we shut down government if they can’t shut down Obamacare.

AUDIENCE:  Booo —

THE PRESIDENT:  That won’t grow our economy.  That won’t create jobs.  That won’t help our middle class.  We can’t afford in Washington the usual circus of distractions and political posturing.  We can’t afford that right now.

What we need is to build on the cornerstones of what it means to be middle class in America, focus on that — a good job with good wages, a good education, a home of your own, affordable health care, a secure retirement.  (Applause.)  Bread-and-butter, pocketbook issues that you care about every single day; that you’re thinking about every single day.  And we’ve got to create more pathways into the middle class for folks who are willing to work for it.  That’s what’s always made America great.  It’s not just how many billionaires we produce, but our ability to give everybody who works hard the chance to pursue their own measure of happiness.  That’s what America is all about.  (Applause.)

Now, there aren’t many things that are more important to that idea of economic mobility -– the idea that you can make it if you try –- than a good education.  All the students here know that.  That’s why you’re here.  (Applause.)  That’s why your families have made big sacrifices -– because we understand that in the face of greater and greater global competition, in a knowledge-based economy, a great education is more important than ever.

A higher education is the single best investment you can make in your future.  And I’m proud of all the students who are making that investment.  (Applause.)  And that’s not just me saying it.  Look, right now, the unemployment rate for Americans with at least a college degree is about one-third lower than the national average.  The incomes of folks who have at least a college degree are more than twice those of Americans without a high school diploma.  So more than ever before, some form of higher education is the surest path into the middle class.

But what I want to talk about today is what’s become a barrier and a burden for too many American families -– and that is the soaring cost of higher education.  (Applause.)

This is something that everybody knows you need — a college education.  On the other hand, college has never been more expensive.  Over the past three decades, the average tuition at a public four-year college has gone up by more than 250 percent — 250 percent.  Now, a typical family’s income has only gone up 16 percent.  So think about that — tuition has gone up 250 percent; income gone up 16 percent.  That’s a big gap.

Now, it’s true that a lot of universities have tried to provide financial aid and work-study programs.  And so not every student — in fact, most students are probably not paying the sticker price of tuition.  We understand that.  But what we also understand is that if it’s going up 250 [percent] and your incomes are only going up 16 [percent], at some point, families are having to make up some of the difference, or students are having to make up some of the difference with debt.

And meanwhile, over the past few years, states have been cutting back on their higher education budgets.  New York has done better than a lot of states, but the fact is that we’ve been spending more money on prisons, less money on college.  (Applause.)  And meanwhile, not enough colleges have been working to figure out how do we control costs, how do we cut back on costs.  So all this sticks it to students, sticks it to families, but also, taxpayers end up paying a bigger price.

The average student who borrows for college now graduates owing more than $26,000.  Some owe a lot more than that.  And I’ve heard from a lot of these young people who are frustrated that they’ve done everything they’re supposed to do –- got good grades in high school, applied to college, did well in school — but now they come out, they’ve got this crushing debt that’s crippling their sense of self-reliance and their dreams.  It becomes hard to start a family and buy a home if you’re servicing $1,000 worth of debt every month.  It becomes harder to start a business if you are servicing $1,000 worth of debt every month, right?  (Applause.)

And meanwhile, parents, you’re having to make sacrifices, which means you may be dipping into savings that should be going to your retirement to pay for your son or daughter’s — or to help pay for your son or daughter’s education.

So at a time when a higher education has never been more important or more expensive, too many students are facing a choice that they should never have to make:  Either they say no to college and pay the price for not getting a degree — and that’s a price that lasts a lifetime — or you do what it takes to go to college, but then you run the risk that you won’t be able to pay it off because you’ve got so much debt.

Now, that’s a choice we shouldn’t accept.  And, by the way, that’s a choice that previous generations didn’t have to accept. This is a country that early on made a commitment to put a good education within the reach of all who are willing to work for it. And we were ahead of the curve compared to other countries when it came to helping young people go to school.  (Applause.)

The folks in Buffalo understand this.  Mayor Brown was talking about the city of Buffalo and the great work that is being done through the program called “Say Yes,” to make sure that no child in Buffalo has to miss out on a college education because they can’t pay for it.  (Applause.)

But even though there’s a great program in this city, in a lot of places that program doesn’t exist.  But a generation ago, two generations ago, we made a bigger commitment.  This is the country that gave my grandfather the chance to go to college on the GI Bill after he came back from World War II.  (Applause.)  This is the country that helped my mother get through school while raising two kids.  (Applause.)  Michelle and I, we’re only where we are today because scholarships and student loans gave us a shot at a great education.  (Applause.)

And we know a little bit about trying to pay back student loans, too, because we didn’t come from a wealthy family.  So we each graduated from college and law school with a mountain of debt.  And even though we got good jobs, we barely finished paying it off just before I was elected to the U.S. Senate.

AUDIENCE:  Whew!

THE PRESIDENT:  Right?  I mean, I was in my 40s when we finished paying off our debt.  And we should have been saving for Malia and Sasha by that time.  But we were still paying off what we had gotten — and we were luckier because most of the debt was from law school.  Our undergraduate debt was not as great because tuition had not started shooting up as high.

So the bottom line is this — we’ve got a crisis in terms of college affordability and student debt.  And over the past four years, what we’ve tried to do is to take some steps to make college more affordable.  So we enacted historic reforms to the student loan system, so taxpayer dollars stop padding the pockets of big banks and instead help more kids afford college.  (Applause.)

Because what was happening was the old system, the student loan programs were going through banks; they didn’t have any risk because the federal government guaranteed the loans, but they were still taking billions of dollars out of the program.  We said, well, let’s just give the loans directly to the students and we can put more money to helping students.

Then we set up a consumer watchdog.  And that consumer watchdog is already helping students and families navigate the financial options that are out there to pay for college without getting ripped off by shady lenders.  (Applause.)  And we’re providing more tools and resources for students and families to try to finance college.  And if any of you are still trying to figure out how to finance college, check it out at StudentAid.gov.  StudentAid.gov.

Then, we took action to cap loan repayments at 10 percent of monthly income for many borrowers who are trying to responsibly manage their federal student loan debt.  (Applause.)  So overall, we’ve made college more affordable for millions of students and families through tax credits and grants and student loans that go farther than they did before.  And then, just a few weeks ago, Democrats and Republicans worked together to keep student loan rates from doubling.  (Applause.)  And that saves typical undergraduates more than $1,500 for this year’s loans.

So that’s all a good start, but it’s not enough.  The problem is, is that even if the federal government keeps on putting more and more money in the system, if the cost is going up by 250 percent, tax revenues aren’t going up 250 percent — and so some point, the government will run out of money, which means more and more costs are being loaded on to students and their families.

The system’s current trajectory is not sustainable.  And what that means is state legislatures are going to have to step up.  They can’t just keep cutting support for public colleges and universities.  (Applause.)  That’s just the truth.  Colleges are not going to be able to just keep on increasing tuition year after year, and then passing it on to students and families and taxpayers.  (Applause.)   Our economy can’t afford the trillion dollars in outstanding student loan debt, much of which may not get repaid because students don’t have the capacity to pay it.  We can’t price the middle class and everybody working to get into the middle class out of a college education.  We’re going to have to do things differently.  We can’t go about business as usual.

Because if we do, that will put our younger generation, our workers, our country at a competitive disadvantage for years.  Higher education is still the best ticket to upward mobility in America, and if we don’t do something about keeping it within reach, it will create problems for economic mobility for generations to come.  And that’s not acceptable.  (Applause.)

So whether we’re talking about a two-year program, a four-year program, a technical certificate, bottom line is higher education cannot be a luxury.  It’s an economic imperative:  Every family in America should be able to afford to get it.  (Applause.)

So that’s the problem.  Now, what are we going to do about it?  Today, I’m proposing major new reforms that will shake up the current system, create better incentives for colleges to do more with less, and deliver better value for students and their families.  (Applause.)

And some of these reforms will require action from Congress, so we’re going to have to work on that.  (Laughter.)  Some of these changes I can make on my own.  (Applause.)  We are going to have to — we’re going to be partnering with colleges to do more to keep costs down, and we’re going to work with states to make higher education a higher priority in their budgets.  (Applause.)

And one last thing — we’re going to have to ask more of students who are receiving federal aid, as well.  And I’ve got to tell you ahead of time, these reforms won’t be popular with everybody, especially those who are making out just fine under the current system.  But my main concern is not with those institutions; my main concern is the students those institutions are there to serve -– because this country is only going to be as strong as our next generation.  (Applause.)

And I have confidence that our country’s colleges and universities will step up — just like Chancellor Zimpher and the folks at SUNY are trying to step up — and lead the way to do the right thing for students.

So let me be specific.  My plan comes down to three main goals.  First, we’re going to start rating colleges not just by which college is the most selective, not just by which college is the most expensive, not just by which college has the nicest facilities — you can get all of that on the existing rating systems.  What we want to do is rate them on who’s offering the best value so students and taxpayers get a bigger bang for their buck.  (Applause.)

Number two, we’re going to jumpstart new competition between colleges –- not just on the field or on the court, but in terms of innovation that encourages affordability, and encourages student success, and doesn’t sacrifice educational quality.  (Applause.)  That’s going to be the second component of it.

And the third is, we’re going to make sure that if you have to take on debt to earn your college degree that you have ways to manage and afford it.  (Applause.)

So let me just talk about each of these briefly.

Our first priority is aimed at providing better value for students — making sure that families and taxpayers are getting what we pay for.  Today, I’m directing Arne Duncan, our Secretary of Education, to lead an effort to develop a new rating system for America’s colleges before the 2015 college year.  Right now, private rankings like U.S. News and World Report puts out each year their rankings, and it encourages a lot of colleges to focus on ways to — how do we game the numbers, and it actually rewards them, in some cases, for raising costs.  I think we should rate colleges based on opportunity.  Are they helping students from all kinds of backgrounds succeed — (applause) — and on outcomes, on their value to students and parents.

So that means metrics like:  How much debt does the average student leave with?  How easy it is to pay off?  How many students graduate on time?  How well do those graduates do in the workforce?  Because the answers will help parents and students figure out how much value a college truly offers.

There are schools out there who are terrific values.  But there are also schools out there that have higher default rates than graduation rates.  And taxpayers shouldn’t be subsidizing students to go to schools where the kids aren’t graduating.  That doesn’t do anybody any good.  (Applause.)

And our ratings will also measure how successful colleges are at enrolling and graduating students who are on Pell grants. And it will be my firm principle that our ratings have to be carefully designed to increase, not decrease, the opportunities for higher education for students who face economic or other disadvantages.  (Applause.)

So this is going to take a little time, but we think this can empower students and families to make good choices.  And it will give any college the chance to show that it’s making serious and consistent improvement.  So a college may not be where it needs to be right now on value, but they’ll have time to try to get better.

And we want all the stakeholders in higher education — students, parents, businesses, college administrators, professors — to work with Secretary Duncan on this process.  And over the next few months, he’s going to host a series of public forums around the country to make sure we get these measures right.  And then, over the next few years, we’re going to work with Congress to use those ratings to change how we allocate federal aid for colleges.  (Applause.)

We are going to deliver on a promise we made last year, which is colleges that keep their tuition down and are providing high-quality education are the ones that are going to see their taxpayer funding go up.  It is time to stop subsidizing schools that are not producing good results, and reward schools that deliver for American students and our future.  (Applause.)

And we’re also going to encourage states to follow the same principle.  Right now, most states fund colleges based on how many students they enroll, not based on how well those students do or even if they graduate.  Now, some states are trying a better approach.  You got Tennessee, Indiana, Ohio — they’re offering more funding to colleges that do a better job of preparing students for graduation and a job.  Michigan is rewarding schools that keep tuition increases low.  So they’re changing the incentive structure.

And I’m challenging all states to come up with new and innovative ways to fund their colleges in a way that drives better results.  (Applause.)

Now, for the young people here, I just want to say that just as we’re expecting more from our schools that get funding from taxpayers, we’re going to have to expect more from students who get subsidies and grants from taxpayers.  (Applause.)  So we’re going to make sure students who receive federal financial aid complete their courses before receiving grants for the next semester.  (Applause.)

We’ll make sure to build in flexibility so we’re not penalizing disadvantaged students, or students who are holding down jobs to pay for school.  Things happen.  But the bottom line is we need to make sure that if you’re getting financial aid you’re doing your part to make progress towards a degree.  And, by the way, that’s good for you, too, because if you take out debt and you don’t get that degree, you are not going to be able to pay off that debt and you’ll be in a bind.  (Applause.)

All right, second goal:  We want to encourage more —

AUDIENCE MEMBER:  We love you, Obama!

THE PRESIDENT:  (Laughter.)  Thank you.

The second thing we want to do is to encourage more colleges to embrace innovative new ways to prepare our students for a 21st century economy and maintain a high level of quality without breaking the bank.

So let me talk about some alternatives that are already out there.  Southern New Hampshire University gives course credit based on how well students master the material, not just on how many hours they spend in the classroom.  So the idea would be if you’re learning the material faster, you can finish faster, which means you pay less and you save money.  (Applause.)  The University of Wisconsin is getting ready to do the same thing.

You’ve got Central Missouri University — I went there, and they’ve partnered with local high schools and community colleges so that their students can show up at college and graduate in half the time because they’re already starting to get college credits while they’re in high school or while they’re in a two-year college, so by the time they get to a four-year college they’re saving money.  (Applause.)

Universities like Carnegie Mellon, Arizona State, they’re starting to show that online learning can help students master the same material in less time and often at lower cost.  Georgia Tech, which is a national leader in computer science, just announced it will begin offering an online master’s degree in computer science at a fraction of the cost of a traditional class, but it’s just as rigorous and it’s producing engineers who are just as good.

So a lot of other schools are experimenting with these ideas to keep tuition down.  They’ve got other ways to help students graduate in less time, at less cost, while still maintaining high quality.  The point is it’s possible.  And it’s time for more colleges to step up with even better ways to do it.  And we’re going to provide additional assistance to states and universities that are coming up with good ideas.

Third thing, even as we work to bring down costs for current and future students, we’ve got to offer students who already have debt the chance to actually repay it.  (Applause.)  Nobody wants to take on debt — especially after what we’ve seen and families have gone through during this financial crisis.  But taking on debt in order to earn a college education has always been viewed as something that will pay off over time.  We’ve got to make sure, though, that it’s manageable.

As I said before, even with good jobs, it took Michelle and me a long time to pay off our student loans — while we should have been saving for Malia and Sasha’s college educations, we were still paying off our own.  So we know how important it is to make sure debt is manageable, so that it doesn’t keep you from taking a job that you really care about, or getting married, or buying that first home.

There are some folks who have been talking out there recently about whether the federal student loan program should make or cost the government money.  Here’s the bottom line — government shouldn’t see student loans as a way to make money; it should be a way to help students.  (Applause.)

So we need to ask ourselves:  How much does a federal student loan cost students?  How can we help students manage those costs better?  Our national mission is not to profit off student loans; our national mission must be to profit off having the best-educated workforce in the world.  That should be our focus.  (Applause.)

So, as I mentioned a little bit earlier, two years ago, I capped loan repayments at 10 percent of a student’s post-college income.  We called it Pay-As-You-Earn.  And it, along with some other income-driven repayment plans, have helped more than 2.5 million students so far.

But there are two obstacles that are preventing more students from taking advantage of it.  One is that too many current and former students aren’t eligible, which means we’ve got to get Congress to open up the program for more students.  (Applause.)  And we’re going to be pushing them to do that.

The other obstacle is that a lot of students don’t even know they’re eligible for the program.  So starting this year, we’re going to launch a campaign to help more borrowers learn about their repayment options and we’ll help more student borrowers enroll in Pay-As-You-Earn.  So if you went to college, you took out debt, you want to be a teacher, and starting salary for a teacher is, let’s say, $35,000, well, only 10 percent of that amount is what your loan repayment is.  Now, if you’re making more money, you should be paying more back.  But that way, everybody has a chance to go to college; everybody has a chance to pursue their dreams.

And that program is already in place.  We want more students to take advantage of it.  We’re really going to be advertising it heavily.

Now, if we move forward on these three fronts –- increasing value, encouraging innovation, helping people responsibly manage their debt –- I guarantee you we will help more students afford college.  We’ll help more students graduate from college.  We’ll help more students get rid of that debt so they can a good start in their careers.  (Applause.)

But it’s going to take a lot of hard work.  The good news is, from what I hear, folks in Buffalo know something about hard work.  (Applause.)  Folks in America know something about hard work.  And we’ve come a long way together these past four years. We’re going to keep moving forward on this issue and on every other issue that’s going to help make sure that we continue to have the strongest, most thriving middle class in the world.  We’re going to keep pushing to build a better bargain for everybody in this country who works hard, and everybody who’s trying to get into that middle class.  (Applause.)

And we’re going to keep fighting to make sure that this remains a country where, if you work hard and study hard and are responsible, you are rewarded, so that no matter what you look like and where you come from, what your last name is, here in America you can make it if you try.  (Applause.)

Thank you very much, everybody.  God bless you.  God bless America.  (Applause.)

Consumer News, Money News, News, Scam News

NY Goes After Online Payday Lenders



 

 

 

 

 

 

 

 

 

 

 

 

New York State is after online payday lenders in a big way.  An investigation by the New York State Department of Financial Services (DFS) found 35 companies offering illegal payday loans to consumers and sent them cease and desist letters. Some of these companies offered loans with annual interest rates as high as 1,095 percent.

Benjamin M. Lawsky, Superintendent of Financial Services, also sent letters to 117 banks – as well as NACHA, which administers the Automated Clearing House (ACH) network and whose board includes representatives from a number of those banks – requesting that they work with DFS to cut off illegal payday lenders’ access to New York customer accounts.  Credits and debits that must pass through the ACH network make the loans possible. The Cuomo Administration is requesting that those banks and NACHA work with DFS to create a new set of model safeguards and procedures to cut off ACH access to payday lenders.

Governor Andrew Cuomo said, “Illegal payday lenders swoop in and prey on struggling families when they’re at their most vulnerable – hitting them with sky-high interests rates and hidden fees. We’ll continue to do everything we can to stamp out these pernicious loans that hurt New York consumers.”

Superintendent Lawsky said: “Companies that abuse New York consumers should know that they can’t simply hide from the law in cyberspace. We’re going to use every tool in our tool-belt to eradicate these illegal payday loans that trap families in destructive cycles of debt.”

Superintendent Lawsky also sent letters today to all debt collection companies operating in New York specifically directing them not to collect on illegal payday loans from the 35 companies DFS identified.

The move is winning praise from consumer activists like Sarah Ludwig of the New Economy Project, formerly NEDAP. She said,”Governor Cuomo and Superintendent Lawsky are taking exactly the right approach here — not only demanding that online payday lenders stop making illegal loans to New Yorkers, but also holding accountable banks and the payment system itself, which make this usurious and extremely exploitative lending possible in the first place.”

The following 35 companies received cease and desist letters today from Superintendent Lawsky for offering illegal payday loans to New Yorkers. The DFS investigation found that a number of these companies were charging interest rates in excess of 400, 600, 700, or even 1,000 percent.

watchmore  What’s Wrong With Payday Loans?

Here on the companies that are the list:

· ABJT Funding, LLC, www.dollarpremier.com
· Advance Me Today, www.advancemetoday.com
· American Web Loans, www.americanwebloan.com
· Archer Direct, LLC, www.archerdirectservices.com
· Bayside Loans, www.baysideloans.com
· BD PDL Services, LLC, www.bottomdollarpayday.com
· Blue Sky Finance, LLC , www.extrafundscash.com
· BS Financial Group Inc., www.paydayaccelerated.com
· Cash Jar, www.cashjar.com
· Cash Yes, www.cashyes.com
· Discount Advances, www.discountadvances.com
· DMA Financial Corp., www.qloot.com
· Eastside Lenders, LLC, www.eastsidelenders.com
· Fast Cash Personal Loans, www.fast-cash-personal-loans.com
· Golden Valley Lending, www.goldenvalleylending.com
· Government Employees Credit Center, Inc., www.cashdirectexpress.com
· Great Plains Lending, LLC, www.greatplainslending.com
· Horizon Opportunities, LLC, www.paydaycashlive.com/horizon-opportunities-PAYDAY-LOAN
· Loan Point USA Online, www.loanpointusaonline.com
· MNE Services, Inc., www.ameriloan.com
· MobiLoans, LLC, www.mobiloans.com
· MyCashNow.com, Inc., www.mycashnow.com
· National Opportunities Unlimited, Inc., www.itsmypayday.com
· Northway Broker Ltd., www.myzip19.com
· PayDayMax Ltd., www.paydaymax.com
· Peak 3 Holding, LLC, www.peak.3.holdings.pay.day.loans.750cashs.com
· Plain Green, LLC, www.plaingreenloans.com
· Red Rock Tribal Lending, LLC, www.castlepayday.com
· SCS Processing, www.everestcashadvance.com
· SFS, Inc., www.oneclickcash.com
· Sonic Cash, www.soniccash.com
· Sure Advance, LLC, www.sureadvance.com
· Tribal Credit Line, www.quickcredit911.com
· United Consumer Financial Services, Inc., www.ezpaydaycash.com
· Western Sky Financial, LLC, www.westernsky.com

 

55 Plus News, All 55 Plus, Featured Stories, Helpful Tips: Consumer, Helpful Tips:Eldercare, Medicare, Videos, Vids: 55 Plus, Vids:Medicare

Confused About Medicare

6 Comments

In the video Medicare Rights Center President Joe Baker explains why you need to sign up for Medicare Part B.

Our friend George Gentry in Atlanta made a costly discovery about his Medicare choices. He wrote, “I  just got a $1700 bill for ambulance service. My private insurance covered 70 percent but if I had Medicare Part B, it would have paid all of it. So how did I get sold on the idea that paying extra for private insurance was better?”

That’s a really good question. Many of us are confused about Medicare. Our health needs and concerns may be slightly different and every state has different insurance rules, but George’s story illustrates an issue that’s important for us all. His insurance situation is complicated because he’s a Vietnam veteran and has lingering health issues.
Courtesy George Gentry
Courtesy George Gentry

He says, “I am a 70 percent service-connected disabled vet so I need to use V.A. for things that are service connected, especially hearing aids and knee injury problems, but to do that I have to have a V.A. primary care doctor.”  Yet, he’s concerned about the quality of medical care offered by the V.A. “I don’t trust the V.A. medical care, so I also have a private primary care doctor.”

That means George has another health insurance layer. It’s a holdover from his last job for the federal government. He’s a brilliant videographer and photo journalist who set up the U.S. Fish & Wildlife Service TV Production Center for the National Conservation Training Center and trained a team of  videographers, producers and still photographers to produce education and outreach materials for the U.S. Department of the Interior and other conservation organizations.

He retired at 60 and continued the employer-based insurance he had with  MHPB, or Federal Employees Health Benefits. When he turned 65 he took Medicare Part A, but did not sign up for Part B and opted to pay for a continuation of MHPB. It worked pretty well, until recently when he discovered that he had a congenital heart defect and his medical costs started to pick up.

HOW DO YOU KNOW WHAT TO DO?

This it where it gets tricky. Decoding Medicare choices is complicated and while the Medicare website offers you a tool to try to figure out what to do, it is still a bewildering process.

Medicare experts tell us that when George turned 65, he should have signed up for Medicare B.  Joe Baker, President of Medicare Rights Center says, “A lot of people who take early retirement have the retirement coverage from their former employer and they say, ‘This is great.’ But it’s not enough. Baker is emphatic: “What they don’t realize is that when they turn 65 that coverage…becomes secondary to Medicare. You need to enroll in Medicare for primary coverage.

In addition, Barry Galkin, an insurance consultant who specializes in Medicare related issues says, “There have been cases that I’ve heard of where people who were 65 and still employed did not sign up for Part B. When they had medical issues, their insurers refused to pay anything at all because they were not signed up for Part B.”

KEY TIP

Don’t wait.  At 65 sign up for Medicare B

Going back to George-if he had  what MHPB calls its Medicare Part B Option, he would have paid nothing for the ambulance.  He can still switch over during an open enrollment period and sign on with MHPB to coordinate his Medicare Part B.  

That means he’ll have to use doctors in the MHPB network who accept Medicare. But since he is using MHPB anyway, it seems like it would work. One bad thing here, it’s likely that he’ll have to pay a penalty for signing up for Part B after 65.

Now George is not a whiner. He’s just like the rest of us. He’s trying to figure out the smartest way to get quality affordable health care.

But it’s not so easy.  He says, “I can afford the care and I’m really glad all this medical technology is available. Every time I go to the dentist and write big checks for  services or get something taken care of by a doctor, I am sooooo thankful that the service is there and that I can afford it. All that said, there is a lot of room for improvement.”

YOU MIGHT ALSO LIKE OUR OTHER STORIES ABOUT MEDICARE. 

readmore  Medicare Basics for Boomers and Everyone Else


 Boomers, Medicare Part B and Costly Mistakes

watchmore  Figuring Out Medicare Basics

readmore  Choosing Power of Attorney Tips

 

 

readmore Find out how to set up a College Savings  529 Plan for for your grandkids

 

Travel News

U.S.EmbassiesTo Close-Worldwide Travel Alert

The U.S. State Department issued a worldwide travel alert and plans to close some embassies in the Middle East and North Africa on August 4th.

This is the alert:

“The Department of State alerts U.S. citizens to the continued potential for terrorist attacks, particularly in the Middle East and North Africa, and possibly occurring in or emanating from the Arabian Peninsula.  Current information suggests that al-Qa’ida and affiliated organizations continue to plan terrorist attacks both in the region and beyond, and that they may focus efforts to conduct attacks in the period between now and the end of August.  This Travel Alert expires on August 31, 2013.

Terrorists may elect to use a variety of means and weapons and target both official and private interests. U.S. citizens are reminded of the potential for terrorists to attack public transportation systems and other tourist infrastructure.  Terrorists have targeted and attacked subway and rail systems, as well as aviation and maritime services.  U.S. citizens should take every precaution to be aware of their surroundings and to adopt appropriate safety measures to protect themselves when traveling.

We continue to work closely with other nations on the threat from international terrorism, including from al-Qa’ida.  Information is routinely shared between the U.S. and our key partners in order to disrupt terrorist plotting, identify and take action against potential operatives, and strengthen our defenses against potential threats.

We recommend U.S. citizens register their travel plans with the Consular Section of the U.S. Embassy through the State Department’s travel registration website. We strongly recommend that U.S. citizens Traveling abroad enroll in the Department of State’s Smart Traveler Enrollment Program (STEP).  STEP enrollment gives you the latest security updates, and makes it easier for the U.S. embassy or nearest U.S. consulate to contact you in an emergency.  If you don’t have Internet access, enroll directly with the nearest U.S. embassy or consulate.

For the latest security information, U.S. citizens traveling abroad should regularly monitor the Department of State’s Internet website attravel.state.gov where theWorldwide Caution, Country Specific Information, Travel Warnings, and Travel Alertscan be found. Follow us on Twitter and the Bureau of Consular Affairs page onFacebook as well. Download our free Smart Traveler app, available through  iTunes or Google Play, to have travel information at your fingertips.

In addition to information on the internet, travelers may obtain up-to-date information on security conditions by calling 1-888-407-4747 toll-free in the United States and Canada or, from other countries, on a regular toll line at 1-202-501-4444.  These numbers are available from 8:00 am to 8:00 pm Monday through Friday, Eastern Time (except U.S. federal holidays).”

 

READ ConsumerMojo.com’s story about  and travel warnings.

 

 

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Debt Relief Scam Stopped

Debt relief scams take advantage of people who can’t afford to make mistakes. So it’s good news to hear that the Federal Trade Commission put another one out of business. The FTC reached an agreement with a telemarketer who allegedly defrauded consumers with false promises of debt relief and charged them without their consent.

 Jeremy R. Nelson and four companies he controlled agreed to a plan that bans him and them from selling debt relief services, telemarketing, and making robocalls.

The FTC alleged  that they called phone numbers on the National Do Not Call Registry, called consumers who had told them not to call, delivered pre-recorded messages without prior written consent, repeatedly called consumers to annoy them, and delivered pre-recorded messages that failed to identify the seller, the call’s purpose, and the product or service.

The awful thing here is that the FTC tried to get money back for consumers, but apparently can’t. There’s a judgement of $4.6 million against the defendants. But it’s suspended because Nelson can’t afford to pay. He does have surrender his bank accounts and investment assets frozen by the court to the FTC.

You have to wonder what happened to the money?

If you have trouble with money, here are a 4 tips for dealing with debt.

1. Avoid debt collectors and debt settlement companies.

2. Find out how much you owe.

3. Contact your creditors and tell them that you are having trouble making payments. Work out a modified payment plan with them. Most companies want the money and will work with you.

4. Visit a not-for-profit counseling agency in your area if you need help. The U.S.Department of Justice offers a state-by-state list of approved counseling agencies.

 

watchmoreAvoid Debt Settlement and Debt Repair Companies and Debt Collectors-What are My Rights?

 

55 Plus News, All 55 Plus, Helpful Tips: Insurance, Helpful Tips: Retirement, Helpful Tips:Money, Latest News, Medicare, News, Vids:Medicare

Penalized for Failing to Sign Up For Medicare Part B



by Barbara Nevins Taylor

When it comes to Medicare and Social Security, details count. If you don’t pay attention and sign up for Medicare Part B in the specific open enrollment period, you might find yourself penalized and paying more for Medicare for the rest of your life.

 

The rules get pretty rigid and don’t allow for much wiggle room.

Wendy Blank discovered this when she turned 65.

The insurance executive had signed up for Social Security and Medicare Part A, the portion of Medicare that covers hospitalization, skilled nursing home care and some home health care. You usually don’t pay a premium for this because you paid taxes while you were working. But Wendy didn’t sign up for Part B. “I was covered by my husband’s insurance and didn’t need it,” she said.

She was surprised when she began to receive bills in the mail that asked her to pay for Part B insurance. Part B covers doctor visits, lab tests and some preventive care. Wendy says,”I kept getting bills and disregarded them. I didn’t think it pertained to me.” She says she called Social Security and told them that someone made a mistake. And she thought that was it. But she was wrong.

Courtesy Creative Commons via Flickr
Courtesy Creative Commons via Flickr

Losing Money

A few months later, her Social Security check was significantly less than it had been. Social Security deducted the cost of Part B from her payment for the months that she was billed.

Taking Action

Here’s where Wendy did the smart thing. She realized that a telephone call would not work. She went to her local Social Security office and explained what happened. The Social Security worker put in the order to stop the Medicare Part B charges, but Wendy also wanted a refund. Like many of us, she was a little skeptical about getting results from the big bureaucracy.  She said, “I never thought that I would get reimbursed.” But she pushed.

She ultimately received a letter from the Social Security Administration that sounds pretty begrudging. It said in part, “Based on your alleged contact with Social Security…your coverage would have been terminated…had the proper form been submitted timely.  It is therefore recommended you be refunded Part B premiums.”

Wendy was delighted to learn that she would receive a refund of $1107.30 that had been deducted for three months worth of Part B premiums. “I felt a real sense of victory, ” she said.

Bottom Line

Wendy’s experience reminds us that we all need to take care and read everything when we deal with Social Security and Medicare. It’s extremely important to pay attention to the details, review everything and always open your mail immediately. If a mistake is made, don’t sit back and let it slide. You can file forms, as the Social Security Administration suggests, or you can visit your local Social Security office. If you are in the right, you are likely to get results. But like everything else, it takes time and patience.

 

watchmore Figuring Out Medicare Basics

 

readmore Medicare Basics for Boomers and Everyone Else

 

watchmore Choosing a Medicare Part D Prescription Drug Plan

 

readmore Choosing Power of Attorney Tips

 

 

 

 

 

Consumer News, Helpful Tips: Consumer, Helpful Tips:All, News

You Won! What?

 

by Barbara Nevins Taylor

Someone named Carmen Chen, if that’s her real name, sent me an email that says, “You Won!” Sounds great. Won What? I hate to be cynical, but this is the Internet and it takes a little skepticism to remain free and clear of frauds and scams. I deleted Carmen without opening the link.  That’s what investigators suggest we all do. Clicking on these contest links can lead to computer viruses, malware that steals your personal information and other horrible things. So the warning is, don’t click on links from strangers or companies that you don’t know.

The Federal Trade Commission is trying to keep up with the bad guys and just took action to action to shut down an international network of scammers that sent millions of unwanted text messages to consumers, using the lure of “free” gift cards and electronics to entice consumers into an elaborate scheme designed to take their money and target them for illegal robocalls.

The FTC alleges this was a double assault on consumers because many had to pay for receiving the texts that promised free gifts or prizes, including gift cards worth $1,000 at major retailers such as Best Buy, Walmart and Target.

The FTC says, “Consumers who clicked on the links in the messages found themselves caught in a confusing and elaborate process that required them to provide sensitive personal information, apply for credit or pay to subscribe to services to get the supposedly “free” cards. In addition, consumers’ phone numbers were signed up to receive unwanted automated telemarketing calls, also known as robocalls.”

What happens when you click on the link?

According to the FTC, when consumers followed the links to the supposed gift cards, they were directed to sites that collected a substantial amount of personal information, including in some instances health information.  The FTC alleges that in addition to selling the information for marketing purposes, the defendants also made unwanted automated telemarketing calls to consumers selling products such as home security, satellite television and travel services.

The way the FTC describes the scenario, you couldn’t get the “free gift card” without spending money. In addition, clicking one link led to a mini labyrinth of offers.  In some cases, consumers were obligated to sign up for as many as 13 of the offers. These offers frequently included recurring subscriptions for which consumers were required to provide credit card information and pay up front for “shipping and handling” charges.  In other cases, they required consumers to submit applications for credit that would be reflected in their credit reports and possibly affect their credit score.

The defendants in the case are Acquinity Interactive, LLC, located in Deerfield Beach, Fla.; 7657030 Canada Inc., located in Kirkland, Quebec, and also doing business as Acquinity Interactive; Garry Jonas, an officer of Acquinity Interactive; Revenue Path E-Consulting Pvt Ltd, located in Pune, India; Revenuepath Ltd, registered in Nicosia, Cyprus; Worldwide Commerce Associates, LLC, registered in Las Vegas, Nev., and also doing business as WCA; Sarita Somani, an officer of the Revenue Path defendants and Worldwide Commerce Associates; Firebrand Group S.L., LLC, registered in Las Vegas, Nev.; and Matthew Beucler, an officer of Firebrand.

 

Consumer News, Money News, News, Scam News

Payday Lender to Pay $9.5 Million

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A federal judge just handed  a big victory to consumers and the Federal Trade Commission (FTC).  U.S. District Court Judge John Antoon II, in Orlando, ruled that a payday lender illegally debited consumers’ bank accounts when they visited the company’s websites seeking payday loans. 626,000 consumers were enrolled in programs and charged for services they didn’t want. Now Judge Antoon says they are owed $9.5 million.

The judge found that Direct Benefits Group LLC, Voice Net Global LLC, Solid Core Solutions Inc., WKMS Inc., Kyle Wood, and Mark Berry  failed to disclose that they would use consumers’ bank account information to charge them for enrollment in unwanted programs and services

Warning for Others

This details of this case provide a cautionary tale for all of us who fill in online applications and surveys. It’s extremely important to read everything carefully.

In this instance, the FTC found that when someone applied online for a payday loan they were asked for  personal and financial information. During the application process pop-up ads jumped on the screen for other services and unrelated programs for food, travel and merchandise discounts, or for long distance calling and Internet access. An undercover FTC investigator found that confusing instructions led him to press “OK” and sign up for a phone service he didn’t want.  This experience was shared by consumers who complained to the FTC.

Judge Antoon cited testimony from eight consumers. All filled out payday loan applications on one of WKMS’s websites and later discovered debits from their bank accounts that they did not recognize. Three of the eight recalled seeing a pop-up box but did not read the contents of the pop-up box. One explained that the box “look[ed] like a normal ‘I accept these terms and conditions’” type of box, and she assumed it was part of the terms and conditions of the payday loan, so she pressed OK as the box directed. Another did not recognize the pop-up box that she was shown in court as the one she recalled. The third thought the box had to do with the loan itself, and when she was unable to “x out” of the box, she eventually clicked “OK.” The other five consumers did not recall seeing a pop-up box during the loan application process.

Consumers were charged $39.95 to $99.90 per year for these unwanted services. Canceling the services was difficult, although many did.  But if you are one of the consumers victimized by this group, keep an eye out on ConsumerMojo.com. We’ll follow up with the details about refunds.

In the meantime, WATCH CONSUMERMOJO.COM’S VIDEO What’s Wrong with Payday Loans?

 

Consumer News, News

Why Pay To Report Rent Payments?

by Barbara Nevins Taylor

There’s a really big question about whether paying a company to report your rent payments helps improve your credit score.

ConsumerMojo.com found one company, RentReporters.com promotes its service to “boost your credit.”  It asks you to pay $9.95 upfront and then $9.95 a month. Its website says it collects information about your rent payments and in the Terms of Service says, “Your account might show up on one or many of the major bureau reports.”  

Copy on the homepage claims that it “actually helps improve your credit profile by reporting your monthly rental payments.” But Anthony Sprauve, a spokesman for FICO, the company that compiles credit scores used by major financial institutions, told ConsumerMojo.com, “the impact to the score is very weak”

In addition, the major credit bureaus do not get information from RentReporters. ConsumerMojo.com checked with all three bureaus.

TransUnion spokesperson Clifton O’Neal said, “RentReporters is not a data furnisher to TransUnion.”  Experian spokesperson Kristine Snyder said, “They do not file reports with Experian at this time.” And Equifax spokesperson Meredith Griffanti said, “…we do not load any data from RentReporters.com to our consumer credit database.”

RentReporters President and Founder Crispin Luna IV told ConsumerMojo, “RentReporters started a new industry – it broke the mold of the previously paper-only process and became the first company to automate that process of rental payment reporting.

As ‘rental payment reporting’ was unheard of early on, the acceptance of rental payment information was slow in adoption from the top credit reporting agencies.  In early 2005, RentReporters.com was the first company to begin reporting rental accounts to Pay Rent, Build Credit Inc. (PRBC).  In 2008, PRBC was acquired by MicroBilt Inc., a company well known for long lasting innovations in the credit data markets.” He explained that, “The PRBC system creates the opportunity to connect the estimated 40 million consumers underserved by the current credit reporting system to the thousands of lenders needing rental information during the underwriting process.”

Luna also said that the PRBC data is used in the FICO Expansion Score, which uses credit information from alternative sources.

WHAT IT MEANS

Okay. We asked FICO about how much the information RentReporters.com puts into PRBC system affects your FICO score.  FICO Director of Public Relations Anthony Alexander Sprauve said,  “The FICO Expansion Score-Mortgage version does use PRBC data in the calculation of the score.  However, I would guess that PRBC data is very limited in coverage, and I know that when it does factor in, its impact to the score is very weak.”

BOTTOM LINE

You have to evaluate whether paying $9.95 a month is worth it for you.

The Federal Trade Commission spokesperson Elizabeth Lordan says, “Consumers can’t go wrong by checking their credit reports themselves. It’s free and it empowers consumers to take charge of their own finances. They can see for themselves whether creditors are accurately reporting information about them to the credit bureaus.”

Remember you can check your credit report for free three times a year at annualcreditreport.com

Watch ConsumerMojo.com’s video How to Improve My Credit-The Truth

 

 

Helpful Tips: Consumer, Helpful Tips:All, Helpful Tips:Immigrants, Videos, Vids: Immigration

How to Apply for Deferred Action


Immigration attorney Ryan Muennich walks you through the application process for the U.S. Deferred Action Program for Childhood Arrivals program. He says in many cases you don’t need to pay a lawyer to fill out the paperwork for. Ryan also warns that you must follow all of the rules after you make yourself known to immigration authorities. That means you have to update them about where you live.

Deferred Action. You only need to get legal assistance from a qualified immigration attorney if you have a problem. Ryan tells you the circumstances in which you do need help in Dream Act Immigrants- Apply Without a Lawyer.

You are eligible if you were under 31-years-old as of June 15, 2012, came to the U.S. before you were 16, continuously lived in the U.S. since June 15, 2007, were physically present in the U.S. on June 15, 2012, your visa expired, you’re in school, graduated from high school, or have a GED and haven’t been convicted of a felony or a significant misdemeanor and are not a threat to the U.S.

HERE ARE THE STEPS TO TAKE

  1. Log on to U.S.C.I.S website. Read the guidelines and instructions.
  2. Go to the side of the panel and click on form I821D. You’ll have to download it and the instructions. Again, read the instructions carefully before you fill out the form.
  3. Fill out the form and sign it.
  4. Download the form I-765. This is the application for the work permit or Employment Authorization. It will ask the basis for the application. In other words, they want know why you should get a work permit. The basis is the Deferred Action Program for Childhood Arrivals. So be sure to put that in when you fill out the form. Attach this form to the I821D form.
  5. Download the form I-765WS. It’s the worksheet that will accompany the other two forms. This will ask about your income and your assets. It will also ask you to list the reasons that you are requesting the work permit. Again, your reason is the Deferred Action Program for Childhood Arrivals and your plan to get a job as soon as possible.
  6. You’ll need 2 passport photos. You can do this at a neighborhood shop, or through one of the online services. Write your name and your alien receipt number on the back of each photos. Attach the photos to the forms.
  7. Make sure you collect all of your documentation:

a. You need proof that you are under 31-years old as of June 15, 2012-your passport or school records.

b. You need proof that you came to the U.S. before you were 16-your passport, Visa or school records.

c. You need proof that your Visa expired-a copy of your Visa.

d. You need to show that you are in school- report cards, transcripts work. If you graduated, make a copy of your diploma and attach it. If you earned a G.E.D., make a copy of the certificate and attach it.

e. To show that you lived in the U.S. continuously since June 15, 2007, you need school documents, credit card receipts, paid bills, or other official documents.

f. To show that you were in the U.S. on June 15, 2012, you need credit card receipts, school documents, or other official papers.

Again, make sure that you have answered all of the questions with the documentation. More is better than less.

  1. Write a check, or get a money order made out to the U.S. Department of Homeland Security for $465.
  2. Put all of the forms, photos and documentation together with the check. Mail the package to the address that’s listed for your region on the forms.
  3. You should receive a receipt in less than month.
  4. Be patient. The next step could take four to six months, although people report quicker action.

 

 

readmoreTime for Immigration Reform

 

 

readmoreIMMIGRANTS SCAMMED BY TELEPHONE SPOOF

Videos, Vids: Mortgage and Housing

What’s the First Step To Get A Mortgage?

Credit Smart-Mortgage Ready

by Barbara Nevins Taylor

If you think it’s time to buy a home, it’s time to get credit smart. Take a hard look at your personal finances before you do anything else. Melissa Cohn of Manhattan Mortgage advises, “The most important thing to do is get your financial house in order.” That requires you to do a number of things.

EXAMINE YOUR CREDIT REPORT

Begin by examining your credit report. Your credit report is literally a report of the credit that you’ve applied for and your payment history.

CREDIT BUREAUS

Equifax, Experian and TransUnion are the three private companies that keep track of personal credit histories.

Student loans, credit card payment, late payments, car loans, mortgages and information about judgments against you are listed on the credit report. Sometimes the information is wrong, and that’s why it’s important to check your credit report.

CREDIT REPORTS

You can check your credit report for free three times a year by going to annualcreditreport.com. There is no need to pay for a credit report, or a credit check.

Former Federal Trade Commission Regional Director Leonard Gordon says, “If you’ve been paying your bills on time and it shows that you are paying them late, you want to fix that. If there is anything inaccurate in your report, you should write letters to both the reporting agency and the creditor explaining why the report is in error. Attach documentation and send it by certified mail.” Do not send the originals. Send copies, and keep a copy of everything that you mail. Find a sample letter at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm

The credit reporting company must investigate. It usually takes about 30 days. Then they must tell you, in writing, what they discovered. If there’s anything wrong, the company must make the changes and provide a free copy of the new report. You can also ask the credit bureau to send a copy of the new report to anyone who received your erroneous credit report in the previous six months.

ACCURATE NEGATIVE INFORMATION

If your credit report has negative comments and you have outstanding debts, there is no magic fix. Many companies advertise that they can help you improve your credit score. “That’s a lie,” says Herman De Jesus with the consumer advocacy group NEDAP in New York.

He says “We’ve seen a lot of people who have paid a large amount of money to these companies that promise a quick turn around on the repair of their credit, and it’s never, ever happened.”

You must pay your bills on time, and clear your previous debts. It takes seven years to completely clean up your credit report.

CREDIT REPORT AFFECTS CREDIT SCORE

What’s on your credit report affects your credit score. Your credit score is different than your credit report. The credit score is a statistical analysis of the information listed on the report. It takes into account how many credit cards you have, your outstanding debt and your bill paying history.

YOUR FICO SCORE

Most banks use the FICO Score created by the Fair Isaac Corporation. Fico Scores range from 300 to 850.

Banks consider 740 an A credit score. Mike Copley, Senior Executive Vice President of TD Bank, says, “We would look at anything from 680 up. Other banks have different policies. At New York’s Amalgamated Bank, Eric Ruskiewicz says, “We’ll lend to someone with a 620 score, and we think most people would qualify.”

Generally, if your credit score is high you’ll get a lower interest rate. “If it’s low and you’re still credit worthy, you’ll pay a higher interest rate. Copley explains, “If you have a lower FICO you are deemed more risky and the banks have to price in that element to protect themselves.”

DIFFERENCE IN RATES

The difference in interest rates can be significant. If you have a FICO Score of 780 to 850 and want to get a $300,000 mortgage, you will get 1½ percent lower interest rate than if you had a 620 to 639 credit score. And that means you’ll save more than $104,000 over the life of a 30-year mortgage.

But again, banks do things differently. At Amalgamated Bank for example, Ruskiewicz says, “The interest rate is usually the same, but you may pay more in fees.

NEXT STEP

Once you understand your credit score, it’s time to assess your budget. “Before you go shopping for a home you have to know how much you have to spend,” says attorney Adam Leitman Bailey author of Finding the Uncommon Deal.

PRE-QUALIFY FOR A MORTGAGE

A banker, mortgage broker, or a counselor at a not-for-profit agency can help figure it out, and pre-qualify you for a mortgage. You’ll need a complete financial package.

“That means your bank accounts and all the cash you have on hand. Banks will require that you provide a verification of your income for the past two years, meaning tax returns. You will have to provide verification of your liquid assets,” says Melissa Cohn of Manhattan Mortgage.

IMPORTANT TIP

It’s important to avoid making big purchases and opening new credit cards the year that you apply for a mortgage. Payments reduce the amount banks are willing to lend you.

Kenneth Totten of Metuchen Savings Bank offers an excellent example: “If you have a $300-a-month car payment, that will affect your ability to buy the house by about $60,000. If you were able to afford a $300,000 house that goes down to $240,000 because you are driving around in a $300-a-month car.”

 

GET A FREE COPY OF ALL THIS GOOD STUFF. HERE’S YOUR LINK:

What’s the First Step to Get a Mortgage

 

Helpful Tips: Mortgage and Homeowners, Helpful Tips:Money, Videos, Vids: Mortgage and Housing

10 TIPS TO FIND FORECLOSURES



by Barbara Nevins Taylor

 Foreclosure is a tragedy for most families who lose their homes. But it is also an opportunity for buyers.

Real estate attorney Adam Leitman Bailey author of Finding the Uncommon Deal is enthusiastic about the possibilities for buyers. “Never in American history have there been better deals than now.”

Tip 1  Look for a PRE-FORECLOSURE

Chose a neighborhood you like and begin to look for homes that are in pre-foreclosure. You want to find out if anyone needs to sell their property. Neighbors and friends are often good sources of information. A home in pre-forelcosure is more likely to be in better shape than a foreclosed home that has been vacant.

Leitman Bailey suggests you network, “Ask the neighbors. Listen when you go to a cocktail party, or a house party.”

Tip 2  Look at COURT RECORDS

You can also check records in the county clerk’s office.  Every time a bank sues for foreclosure it files what’s called notice of pendency, or Lis Pendis.

NOTICE OF DEFAULT

In simple language, it’s a notice of default. The notice of default is usually sent to a homeowner 30 to 45 days after the first payment is missed. The notices are available to the public in the local courthouse or administration building.  Some counties post everything online.

Tip 3  TALK TO THE HOMEOWNER

If you locate a property you’d like to buy and the homeowner still lives there, you might try simply knocking on the door.

Leitman Bailey says, “You want to use your social skills.  You are going to start with, ‘Hi.  How are you?  I’m looking to buy a home for my family, and I understand you may be selling.’  Stop there and let them speak.”

If the homeowner is willing to talk, you might suggest a short sale and offer to pay less than what the homeowner owes the bank.  Homeowners sometimes

Tip 4  Consider a SHORT SALE

If you agree on a price, call your attorney.  Leitman Bailey warns that you’ll need a contract.  “You want to have a contract with the seller saying that if they can sell and they get this number, they have to sell to you.”

But Mike Copley, Executive Vice President of TD Bank, says banks aren’t always quick to respond.  “The caution there is that the negotiation for the final sales price may be a little bit stressful.  Banks may not be willing to negotiate as quickly as the buyer may think and that takes time.”

Tip 5  Search NEWSPAPERS AND ONLINE SITES

When a property goes into foreclosure, some local governments list them in newspapers, and the newspapers often post the information online. Companies such as Property Shark and RealtyTrac compile all of this information and make it available online for a fee

Tip 6  Look for  FHA FORECLOSURES

HUD, the VA and other agencies often take property after homeowners with government-insured loans default.  These are listed online state by state and city by city at www.HUD.GOV.

 Tip 7. Look up BANK OWNED PROPERTIES

REO

Similarly, bank websites list foreclosed properties that they’ve taken back.

These big banks use the term Reo on their websites as short hand for Real Estate Owned.  These are the foreclosed properties in the banks’ possession. You can easily search the websites for property in your area and you may be pleasantly surprised by what you find.

Attorney Leitman Bailey says, “I love the bank-owned property because you don’t have to worry about what mortgage you are buying, or what liens there are on the property.

A lien is placed on the property if the homeowner owes someone money, say a plumber or roofer, or there’s another mortgage outstanding.  Make sure that no one has a claim to the home you want to buy.

Tip 9  Make sure you do a TITLE SEARCH

“The consumer really needs to know, is the title free and clear of any other liens or encumbrances prior to them taking over the home, “ says TD Bank’s Copley.

That’s why it’s important to use a professional title search company to research the property before you buy a foreclosure. Copley says, “The last thing you want to happen is you a buy a foreclosure and six months into it, you get a knock on the door or a letter in the mail saying, ‘You’re in my house. I have the title before you do.’”

   Get a HOME INSPECTION

It is also important to try to get a home inspection.  An inspection is an investigation of the structure and the mechanics including plumbing and electrical systems. You can hire a mechanical or civil engineer, or a licensed home inspector to do the job.

It’s money well-spent.

Tip 10 Try FORECLOSURE AUCTIONS

A home inspection may be impossible if you buy a house at a foreclosure auction. County sheriffs run foreclosure auctions regularly and there are opportunities if you are knowledgeable about the property and the process. But buying at auction is tricky. You are likely to find yourself in a small room with professionals who’ve investigated the property and know what it is worth. The bidding goes quickly and is often confusing for a novice.

Attorney Leitman Bailey warns, “It’s a risky game.  You had better know the market and what it should go for.”  Sheriffs usually list requirements for bidding on their websites. There is a protocol and cash is generally required in specific dominations at the time you bid.

GET A FREE COPY OF ALL THIS GOOD STUFF. HERE’S YOUR LINK:

How Do I Find Foreclosures

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How Do I Shop for A Mortgage?

by Barbara Nevins Taylor

Shopping for a mortgage is confusing. There’s strange language, complex details and interest rates that vary widely. “You need to know which banks will give you the lowest rates. Banks are competing for your business, let them do that,” advises Adam Leitman Bailey attorney and author of Finding The Uncommon Deal.

COMPARISON SHOP

Comparison shop. Check out the banks in your area and also look online to find out what rates are offered.

MORTGAGE BROKERS

Mortgage brokers can help cut through the confusion. A mortgage broker doesn’t lend money, but generally has good contacts at banks and knows the banks that offer competitive interest rates and the lowest fees.

ASK QUESTIONS

Put aside any fear you may have and ask a lot of questions. “There are no stupid questions when you go for a mortgage,” says Kenneth Totten, Vice President and Chief Lending Officer of Metuchen Savings Bank in New Jersey.

Be direct and ask, “What’s the best interest rate that I can get?” The answer will depend upon your credit score. The bank will check your credit score after you apply for a mortgage. ConsumerMojo.com’s video What’s the First Step to Get a Mortgage explains how your credit score affects the interest rate.

WHAT TYPE OF MORTGAGE DO YOU WANT

The banker will also ask you questions about the type of mortgage that you want.

Mike Copley, Executive Vice President of TD Bank, says a banker will typically ask, “Do you want a 30-year fixed-rate mortgage? Do you want a 15-year fixed- rate mortgage, or do you want an adjustable-rate mortgage?” The answer depends upon your age, your plans for the future and the home that you hope to buy.

15-YEAR, 20-YEAR MORTGAGE OR 30-YEAR MORTGAGE

You can select a 15-year fixed-rate mortgage or a 30-year fixed-rate mortgage. TD Bank’s Copley explains, “The difference between those two mortgages is the life of the loan interest you will pay.”

If you plan to live there for the rest of your life, then a 30-year mortgage may be better than a 15-year or 20-year mortgage. But both the 15 and 20-year offer lower monthly and overall interest.

A 15-year mortgage you are typically going to get anyplace between three quarters and a half a point less interest rate,” says Metuchen’s Totten. And a 20-year-fixed rate mortgage offers a slightly higher interest rate than a 15-year, but less than a 30-year mortgage.

To make the right decision, you have to analyze your needs. Totten says, “How much can you afford to pay? Where are you going in the future? If you are 48- years-old and you are looking to retire when you are 63, you probably don’t want to have a mortgage then. So you take the 15-year route,” he suggests.

FIXED RATE MORTGAGE

Most people choose a 30-year fixed-rate mortgage for a good reason. “A fixed- rate mortgage is a mortgage that you take the loan out and from day one to the day you pay if off, it is going to be fixed,” says Metuchen Savings Bank’s Totten. It offers security. “The consumer doesn’t really take much risk in a 30-year fixed- rate mortgage. The bank takes all the risk because it’s a long time,” says TD Bank’s Copley.

ADJUSTABLE RATE MORTGAGES

An adjustable-rate mortgage or ARM is riskier because the rate can go up and up. “An adjustable-rate mortgage is a fixed-rate on the initial term and that can be from one to three, to five, seven or ten years. Thereafter the interest rate will usually adjust annually and sometimes monthly,” says Metuchen’s Totten. So an ARM is a gamble.

You’re betting that the interest rate won’t go up faster than the value of your house. And that’s why Adam Leitman Bailey isn’t a fan of adjustable-rate mortgages. “Do not get an adjustable-rate mortgage period. Unless you are an expert in real estate or a trader on the stock market, don’t get one,” he insists.

Yet gambling works for some.

WHEN AN ADJUSTABLE RATE WORKS FOR YOU

“If you are young and just starting out and you expect your income is going to increase and you are not going to be in this home for a long time, you may want to consider an adjustable-rate mortgage,” says Melissa Cohn of Manhattan Mortgage.

TEASER RATES

There’s also another benefit. Banks offer teaser rates to get your business and to make an adjustable-rate mortgage attractive. Financial advisor Lewis Altfest says, “A teaser rate can be a good rate if you are going to leave your home in a relatively short period of time.”

In other words, the gamble pays off if you sell your home before the rate goes up significantly. Still, Leitman Bailey is skeptical. “Don’t gamble,” he advises.

GOOD FAITH ESTIMATE

Once you assess your needs and make a preliminary decision, the bank will give you a Good Faith Estimate with a rate quote. The Good Faith Estimate, will give you a clear picture of what the mortgage will cost over the long-term and what the fees will be right off the bat. When you have a Good Faith Estimate from one bank you can go shopping from bank to bank.

CREDIT CHECK CAUTION

But Totten says, “I would caution you, tell the banker what your credit score is. Do not let them run your credit again. Every time you pull your credit it has the impact of lowering your credit score.”

ConsumerMojo.com’s video What’s the First Step to Get a Mortgage explains all about credit checks.

 

GET A FREE COPY OF ALL THIS GOOD STUFF. HERE’S YOUR LINK:

How Do I Shop For a Mortgage

All 55 Plus, Latest News, News, Video: Most Viewed, Vids: 55 Plus

Tips for Older Job Seekers

If you’re over 55 and looking for a job, you know it’s not easy. It may be little comfort to know that others find themselves in the same boat.

More than 1,764,000 Americans between the ages of 55 and 64 years old are looking for work.

ConsumerMojo’s analysis of data from the Bureau of Labor Statistics found that another 853,00 older job seekers are considered “discouraged” workers. They stopped looking for jobs and yet they want to work and may need the income.

At a recent job fair in Brooklyn, New York, we found that most of the people handing out resumes were older job seekers. It was a discouraging day for them.

They went from table to table in the big school gym and found employers weren’t interested.

Vivienne Davis, in her mid-fifties said, “They seem to be geared to youth training; it’s not for people like myself.”  Even when the job didn’t involve training, prospective employers were polite but brushed off older applicants. Elaine Prosser, in her late fifties, told us, “They feel you are too old.”

Jeri Mendelsohn, Associate Director of the Samuel Field Y in Queens, New York, oversees programs that aim to help older workers.

She says many older workers “don’t have a skill set to translate into the new normal very well.”  

Sue Resnick, a job trainer and counselor at the Met Council part of the UJA, agrees: “The overriding issue is either their skills are outdated or unfortunately they are in fields that they didn’t play catch up in.”

But this doesn’t mean that older workers should give up.

 Mendelsohn says, “I think there have to be ways of making 50-plus workers in the workforce become more technologically independent and confident so that they can be an important team member.”  

Sue Resnick says, “If you can bring something to an office environment that no one else can, you have to put it on your resume.”

  • Tip 1 Update your resume immediately.
  • Include anything that makes you special
  • Include the foreign language or languages you speak.

You may not like the idea, but it is important to get comfortable with social media.

  • Tip 2 Make LinkedIn, Facebook and Twitter your friends. Social media helps you connect to others who can help in the job search. And it may be important to the job.
  • Many online sites offer guides to using social media.
  • If you need one on one help ask a younger family member to show you how they navigate social media.
  • Tip 3 Research a company before a job interview.
  • When you get a job interview, it’s extremely important to prepare.
  • Find out as much as you can about the company before the interview so you can talk knowledgeably when you sit down.  Learn exactly what the company does, who leads it, what it earns and where it stands in relation to its competitors.
  • Tip 4 Choose areas that you really want to work in. Even if it’s not the field that you’ve left behind, try to pick a company or organization that’s involved in work that interests you.

It’s extremely hard to start all over again. But some of us have to do that.

  • Tip 5 Think about reinventing yourself and investigate new fields to work in

RESOURCES

More attention is being paid to the growing need to help older workers retrain and find jobs. Not-for-profits like the Samuel Field Y and Metropolitan Jewish Council in New York provide training programs.  And organizations all around the country offer  similar programs. A Google search may help you find the right one in your area.

In addition many state labor departments offer services for older workers. We’ve provided links for several states whose websites feature information specifically for older job seekers.

New York State

New Jersey

California

Pennsylvania

Massachussetts

Georgia

Florida

Illinois

Colorado

Ohio 

Texas

Connecticut

Rhode Island

Vermont

New Hampshire

Maryland

We’ll continue to post stories about and tips for older workers.

Tell us your story.

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Obama Talks Candidly About Race In Amercia

President Obama talks about race in America and the Trayvon Martin case. It is a candid, personal, powerful and sometimes painful recollection. It is more of a talk than a speech and well worth watching. He asks us all to think about race

He asks, “How do we learn some lessons from this and move in a positive direction?”  He calls for an examination of laws like “Stand Your Ground.” And he also suggests we rethink our attitudes about race. He said, “I think it’s going to be important for all of us to do some soul-searching.  There has been talk about should we convene a conversation on race.  I haven’t seen that be particularly productive when politicians try to organize conversations.  They end up being stilted and politicized, and folks are locked into the positions they already have.  On the other hand, in families and churches and workplaces, there’s the possibility that people are a little bit more honest, and at least you ask yourself your own questions about, am I wringing as much bias out of myself as I can?  Am I judging people as much as I can, based on not the color of their skin, but the content of their character?  That would, I think, be an appropriate exercise in the wake of this tragedy.”

 

Student News, Vids: Student

Student Loan Rate to Drop

Just in time for the fall semester, the House of Representatives approved a Senate a plan to roll back student loan interest rates from 6.8 percent to 3.86 percent. The plan would tie student loan interest rates to the financial market, specifically to 10-year Treasury bills. Graduate student loan rates would be 5.4 percent and loans for parents would be 6.4 percent. The bill is on the way to President Obama for his signature.

After the Senate passed the bill, President Obama hailed the compromise that led to the passage. He said, “This compromise is a major victory for our nation’s students.”  The Congressional Budget Office estimates the deal will save the government about $715 million over the next ten years. The notions of raising money for the treasury on the backs of students and allowing interest rates to rise with market angered some Democrats.  Massachussets Senator Elizabeth Warren said, “This is obscene. Students should not be used to generate profits for the government.”

Here’s how it shakes out for borrowers

All undergraduate student loan rates would be set at the Treasury rate plus 2.05 percentage points.
Graduate student loans would be set at 3.6 percentage points above the Treasury rate.
Loans for parents will go to 4.6 percentage points above the Treasury rate.

The good news is that under the plan rates won’t escalate endlessly. They’ll be capped.

Maximum rates

The maximum rate for undergraduates would by 8.25 percent.
The maximum for graduate stude student would be 9.25 percent and the maximum for parents would be 10.25 percent.