All posts by Barbara Nevins Taylor

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Why Girls Should Care About Social Security

by Barbara Nevins Taylor

I love HBO’s Girls. It’s embarrassing. My legs shake and I cringe, squirm and cover my mouth with my hand when I watch. The girls remind me of me in my twenties. Their flailing recklessness mirrors my behavior and frequent despair so many years ago. I gave little thought to the future. Life was a day-to-day negotiation that had a lot to do with sex and figuring out how to make a living and maybe turning a job into a career.

If someone told me then that I’d be thinking about Social Security today I would have laughed. But I not only think about it, I worry.

The Social Security Trust Fund will run out of money in 2033 and that means it will only pay out 75 percent of each person’s benefits.  Without getting hysterical here, this is important for all “girls.” Even the youngest, most cavalier should worry about what happens.

 Girls and Old Ladies

Sorry to say, but girls turn into old ladies and statistically, we’re likely to be on our own journey when we need Social Security. We live longer then men and we often exhaust savings and other assets.  Even those women who have some money count on Social Security as a big part of a support system. In 2010, Social Security represented 63 percent of the income of an 80-year-old woman.

Extra Benefits

Many older women today receive benefits as wives or widows. But younger women — you know who you are — aren’t marrying, or are likely to have shorter marriages that end in divorce. This eliminates that bonus payment from a husband, or reduces it significantly.

Of course, many in the current Girls generation will get traction, build a career and make money.

You’ll pay into Social Security and that’s why you need to pay attention now. By 2033, unless there are adjustments, remember they’ll only be able to pay about 75 percent of what you should receive.

That’s why it’s important for all of us to zone in on what Congress does. There’s a push to change the formula for cost of living increases and that might save the system money for the future.

But there are also those who want to privatize Social Security and they don’t seem to have the interests of real people at heart.

Who is in charge

Just FYI, it’s the Ways and Means Committee in the House of Representatives and the Committee on Finance in the Senate that oversee Social Security.  Look up the players and stay on top of what these legislators are doing, or not doing.

It matters.

readmoreWill Social Security and Medicare Be There for Me and My Family

Money News, News, Scam News

Email Scams Target Small Businesses

 

 

The Federal Trade Commission (FTC) is celebrating “National Consumer Protection Week” in the U.S., but it’s not celebrating an impostor email scam that targets small business. The agency issued an alert to warn small businesses about an email that falsely claims it’s from the FTC.

 It’s important to discard this email because clicking on links can install viruses or malware on your computer.

The agency didn’t provide a copy of the email, but the fake subject headline shouts, “NOTIFICATION OF CONSUMER COMPLAINT.”

Everything about the email is phony. It says there’s a complaint filed against the small business and of course there’s a link to something that’s supposed to be the FTC.  Again, that’s where the trouble lies. In a blink of of eye, bad stuff can invade your computer. Do not click on the link.

The FTC’s advice:

  • Do not open the email
  • If you have opened it, do not click any links or attachments because they may install a virus or other spyware on your computer.
  • Delete the email.

Contact the FTC If you receive one of the emails and are concerned contact the FTC at its real site  https://www.ftccomplaintassistant.gov. We have more useful information and great videos on ConsumerMojo.com.  Take a look.  Join our growing community. “Like” the videos and let us know what you think.  

 

Money News, News, Scam News

Email Junk


It makes me furious to find sucker-trolling email in my inbox.  The latest piece of potentially dangerous junk comes from someone called Angelique Correa from a url that I traced to the University of Paris Est Marne La Valle.  It’s a come-on to click a link and compete to become one of, “lucky individual “(their spelling error) to divide “1.million dollars,” (again their  punctuation error).  There’s a sob story and the pitch to greed. You can read the email below.

Email spells trouble

But the bottom line for all of us is that emails like this one spell trouble. First of all, if you click on the link, there’s the possibility that malware will automatically download to your computer.  The second part of the horror show would require you to send them bank information so they can deposit your winnings. They get your bank information and they can clear out your account.  Maybe they’ll ask for your social security number, too. Then they can open credit cards in your name and ruin your credit rating.

Delete. Delete.

Don’t even think twice about this kind of email. Just delete.  This appears to be a combination of the foreign lottery and phishing scams.  Despite the French connection a lot of these scams are run out of Montreal, Canada.  I’ve interviewed investigators with the Royal Canadian Mounted Police.  It  has a squad dedicated to the scams and frauds that spring up as quickly as they are shut down.  The detectives offer this advice: Don’t get sucked in. Don’t enter into any kind of communication with the scammers.

Internet scammers are very difficult for investigators to track down and once your money is gone, it’s gone.

What you can do is pass the email on to the Federal Trade Commission  https://www.ftccomplaintassistant.gov,  or the Canadian fraud center info@antifraudcentre.ca and perhaps if they have enough complaints they’ll investigate.

“Dear Sir/Madam,

I saw your email address during the course of my  research today. My name
is Allen my wife and I won a Jackpot Lottery $11.2 Million in July and during
the process my wife passed away as a result of cancer illness, we are
donating
the sum of 1.million dollars to 6 lucky individual  over the world and if you
received this email then you are one of the luck recipients and all you
have to
do is get back with is so that we can send your details to the payout bank.
Please note that you have to contact my private email for more information

You can verify this by visiting the our web pages below.
http://www.dailymail.co.uk (They give a link to a new article. I’m not encouraging the scam)

Goodluck,
Allen and Violet Large
Email: (They give an address. I’m not encouraging the scam)”

 

Money News, News, Scam News

Stealing Your Child’s Identity


by Barbara Nevins Taylor

A Pennsylvania mom called me after she filed her income tax return and discovered someone had already claimed her three children and collected the tax refund. She was justifiably outraged,upset and concerned.  This was big problem that affected more than the income tax refund.

Stolen Social Security Numbers

When I investigated, I found her children’s Social Security numbers were stolen and used for the false claims. In addition, the thief, or thieves, opened credit cards in their names and outrageous charges went unpaid.  The mom said, “I’m worried about my children’s credit in the future.  How will they be able to get a loan, buy a car, buy a house?”  Her questions get to the heart of identity theft’s long-term harm.  Once the Social Security number is stolen, it’s very difficult to repair the damage.  Government agencies are not quick to help, and your local police may want to investigate but often can’t track down the bad guys.

The Social Security Administration says it may assign a new number if you can prove that the number is repeatedly misused.  This is likely to be a long, tedious process.

Take Action In Advance

It’s best to take action in advance and keep an eye on your children’s credit reports.  You can get them for free three times a year at AnnualCreditReport.com. Do not pay anyone to pull a credit report.

Look for charges that don’t make sense and for a notation of credit cards that you never opened.

What To Do

If you discover your child’s Social Security number was stolen:

1. Contact the three national reporting bureaus: Experian, Equifax and TransUnion. Write letters to explain that the number was stolen and ask for a manual check of the report.

They may ask for:

  •      Your child’s birth certificate that lists the parents
  •      Your government issued identification. This can be a driver’s license, military identification or some form that shows you are the parent.
  •      Your proof of address. This can be a utility bill, a credit card statement or other official piece of mail sent to your address.

2.  Ask the credit bureaus to remove all accounts, collections and inquiries about your child’s Social Security number. Keep copies of the letters and documents that you send.

2. Ask one of these companies to place a fraud alert on your child’s account. That company will contact the other two.

3.  File a fraud report with the Federal Trade Commission (FTC), or call 877-438-4338.

Again, this is not easy to fix.  And that’s why it’s important to be proactive and check credit reports for fraud and errors.

We have a lot more information on ConsumerMojo.com., so take a look around.  Let us know what you think.  And if you have a question, “Ask Barbara.” Let me go to work for you.

Consumer News, News, Work News

“DUMB” Move In Washington

The latest unnecessary crisis in Washington will cost 750,000 people their jobs, according to President Obama. Federal agencies will now have to cut $85 billion from their budgets and that means lay-offs and furloughs for government employees including FBI agents, Border Patrol agents and  air traffic controllers.

In a speech in the White House Briefing Room, the  President told reporters, “At a time when our businesses have finally begun to get some traction — hiring new workers, bringing jobs back to America — we shouldn’t be making a series of dumb, arbitrary cuts to things that businesses depend on and workers depend on, like education, and research, and infrastructure and defense. It’s unnecessary. And at a time when too many Americans are still looking for work, it’s inexcusable.”

The President said he’ll continue to reach out to Republicans in Congress to try to reach a compromise. The main issue for Republicans is reduction of the $16 trillion national deficit caused by wars in Iraq and Afghanistan and in part by the federal stimulus that kept the country out of another Great Depression. President Obama wants to reduce the deficit with a combination of spending cuts and tax increases on the wealthy. To get there, he wants to eliminate tax loopholes.  But the Republicans resist efforts to tax the wealthy or cleanup loopholes that let some people skate.

Seems like it’s time for grownups to get serious.

 

Money News, Mortgage News, News

What’s The First Step To Get A Mortgage?

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,” says Leonard Gordon, Northeast Regional Director of the Federal Trade Commission.

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.

The FTC’s 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.”

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 different. At Amalgamated Bank 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.

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 Mellissa Cohn of Manhattan Mortgage.

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.”

Helpful Tips: Consumer, Helpful Tips:All, Helpful Tips:Money

Saving Money-A Novel Idea?

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Are you saving money?  Or is it an idea in the back of your mind that twirls round and round, and you never quite get to it?  Maybe today’s a good day to put the idea into practice.  America Saves, a campaign from the Consumer Federation of America is trying to encourage us to save money.  And  as part, “America Saves Week,  they are ask us to take a pledge  and start to save now.

The Consumer Financial Protection Bureau (CFPB) is part of the campaign and offers these tips to get started:

  • Set goals and identify the specific reason you want to save. 
  • Create a savings plan.  Decide how much you want to put away each month and how much it will take to reach your goal.
  • Direct Deposit is the easiest way to go.  Have a set amount taken out of your paycheck for automatic deposit into your account.

The CFPB produced the cute video. Hope you enjoy it and look at more videos with good tips on ConsumerMojo.com.  Let us know what you think.

 

 

Uncategorized

Prepaid Credit Card Protection

Prepaid credit cards used instead of a checking or debit account may seem like a great idea. But hefty fees, in some cases, can eat into the money you load on to your card. The Consumer Financial Protection Bureauwants to set up new rules to regulate fees and other practices of prepaid card programs.

“The people who use prepaid cards are, in many instances, the most vulnerable among us. All consumers need, and deserve, products which are safe and whose costs and risks are clear up front,” said Consumer Protection Bureau Director Richard Cordray. Consumer Advocates worry that celebrity endorsements lure some to sign up for the cards. The CFPB points out that the Kardashian sisters, baseball player Alex Rodriquez and characters from the Twilight movie pitched for prepaid cards. And CFPB Director Cordray says , “This kind of celebrity marketing can be an unhelpful distraction to consumers who don’t know how the card works…”

In addition there’s concern that some providers steer low-income consumers toward prepaid cards rather than offering lower cost checking accounts. The CFPB wants to regulate the cards now because an increasing number of consumers are signing up for them. 7 million consumers use the cards and the Mercator Advisory Group projects the amount loaded on to prepaid cards will reach $167 billion dollars by 2014.

No changes right away. The CFPB is getting input to shape new regulations and if you have something to say, the bureau wants to hear from you.

 

Consumer News, Latest News, News, Student News

High Debt For Medical Students


The debt that medical students carry is at record high levels and rising.  86 per cent of medical students had a debt of about $170,000 after earning their M.D. degrees, according to a new study by the Association of American Medical Colleges. This is an increase of 5 percent over last year.

Medical Student Debt

 

 

 

 

 

Pay Later Approach

Medical students are certainly  aware of the high cost when they enroll and borrow money, but interest on deferred repayment is staggering.  And it’s not clear that students are aware of the options they have.  The new study lays out the numbers starkly. If a student does not start to pay down a loan during residency and waits until he or she is finished with school, with the interest, they  may owe between $320,000 to $476,000.

The chart below tells all:

Medical Students Loans with Interest

 

 

 

 

 

Money News, News, Scam News

Top Consumer Complaints

Identity theft tops the list of consumer complaints to the Federal Trade Commission (FTC) for 2012.  The latest numbers remind us of the need to take extra care with how we handle our personal information, especially when we fill out forms.  Every doctor, dentist and service provider does not need our social security number.  Try saying, “No.”

The most complaints about identity theft came from South Florida and the area that stretches from Miami to Ft. Lauderdale to Pompano Beach. There’s no analysis of why, but there is a large concentration of older people in South Florida and they are frequent targets of scams and ripoffs.  New York and Northern New Jersey ranked second on the list of identity theft victims and complaints and the Los Angeles area followed in third place.

Complaints about debt collection took second place on this unhappy list.  Here’s what the top 10 look like:

1. Identity theft

2. Debt collection

3. Banks and lenders

4. Shop-at-home and catalog sales

5. Prize sweepstakes and lotteries

6. Imposter scams

7. Internet services

8. Auto-related complaints

9. Telephone and mobile services

10. Credit cards

 

Money News, News, Scam News

Crackdown On Payday Lenders


by Barbara Nevins Taylor
We don’t understand why state legislators coddle payday lenders. 15 states and the District of Columbia have  strict laws either banning or limiting payday loans, according to the National Conference of State Legislators. This type of loan is a rip-off and a trap for an estimated 12 million Americans who pay as much as 400%-700% interest because they made the mistake of  getting a short-term loan as an advance on their paycheck.  You’d think elected officials would vote to help and protect consumers.  Instead, legislators in Virginia recently failed to vote for a proposal to tighten its laws.  A proposal in North Carolina’s state senate would bring back payday loans, which were abolished there ten years ago, according to the Center for Responsible Lending.

New York Takes Aggressive Action

That’s why we like the aggressive action of  New York’s Governor Andrew Cuomo.  Even though payday lending is illegal in New York, lenders work the Internet to circumvent the law and attract unsuspecting borrowers.  Cuomo just sent a letter to debt collectors in New York State reminding them that collecting on a payday loan is illegal in the state because payday lending violates the New York’s usury law.  He warned the debt collectors that New York intends to prosecute anyone found violating the law.

Cuomo gets it right.  He said, “Studies clearly show that payday loans are not a solution for people with low incomes, but rather a high cost debt trap.  That’s why they are illegal in New York, and the state will continue to protect consumers from these misleading loans.”

There’s an excellent The New York Times article that explains how big banks enable the online payday lending industry.

Watch the Video

ConsumerMojo.com’s, “What’s Wrong With Payday Loans? video gives a clear picture of why more states should crackdown on payday lenders.