Denise Richardson

Is Identity Theft Alive and Well? And who really cares?

Sat, 07 Nov 2009 16:35:28 -0500

Forget about who is minding the store. The more important question here is who is protecting the identities of consumers? Which businesses care about protecting our data? Are there any financial institutions taking this crime seriously? If not, why aren't they?

If financial companies, creditors, and other establishments that utilize important personal data obtained from their customers, clients, and patients are protecting consumers from identity theft, then why is so much of it occurring? Why is information still being stolen for the sole intention of using someone else's identity or data to obtain medical services, find employment, go on a spending spree or commit other crimes? More importantly, why haven't the FTC's Red Flags Rule guidelines been implemented by all businesses who store our data -whether or not they are mandated to do so?

Let's face it; the widespread occurrence of identity theft is continuing to grow in leaps and bounds. Is it any wonder? While the FTC may have put strong guidelines such as the Red Flags Rule in place to assist in the curtailment of identity theft, the deadline for the implementation of these rules has been pushed back several times already. The newest deadline is now June 01, 2010. Why are there so many requests for extra time to simply get a handle on how best to secure stored data and respond if and when it's compromised?

Moreover, with all of this confusion concerning deadline dates, is it any wonder that the institutions, companies, and businesses who haven't gotten on board with the Red Flags Rule, yet don't really know whether or not they are required to do so?

A few of these groups have even decided that they do not want to be included with those who are required by law to incorporate the red flag rules into their daily business practices. In fact, this disgruntlement with having to comply seems to be partly responsible for the deadline extensions. Leaders of the American Medical Association and American Veterinary Association said they will try to convince the FTC and Congress that physicians should not be included in the program.

This latest delay comes at the request from Congress, which is considering amendments to the identity theft rule. The House of Representatives unanimously passed Bill H.R. 3763 late last month to exclude groups with fewer than 20 employees from complying with the guidelines. It is now in the hands of the Senate. On Oct. 21, the bill was referred to the Senate Committee on Banking, Housing and Urban Affairs, where it is currently stalled.

In reality, when exclusions like this are put into place, is it any wonder that some businesses might not know whether or not they have to comply? Or when they have to comply?

Wouldn't it be helpful to all of us if everyone simply put their time and energy into putting the red flag guidelines into place -as opposed to focusing on avoiding the responsibility of it

The Federal Trade Commission created the Red Flags Rule guidelines to help thwart identity theft. Additionally, they have created helpful tools that should make the process of incorporating these rules easier for most companies. In addition to specialized guidelines, the FTC has published a number of informative articles, a video, and a template to help with this transition.

Who actually is required by law to implement the Red Flags Rule into their business seems to be an open question at the moment. Of course, banks, credit card issuers, and credit unions are already required by law to follow these guidelines. This is because they fall under the jurisdiction of the National Credit Union Administration and the federal bank regulatory agencies.

Put simply, the original intent of the Red Flags Rule was to provide 26 commonsense guidelines to help a business that stores our personal data prepare a written identity theft prevention plan aimed at securing data and detecting and responding to any potential data breach.

Consumers can only stand by and wonder why it is that while identity theft continues to skyrocket, interest in preventing it -isn't. Putting together a written policy aimed at preventing protecting sensitive data from falling into the wrong hands, shouldn't be that difficult.

Memo to Wall Street: It's simple, put pregnant women and children first.

Fri, 06 Nov 2009 11:01:19 -0500

While pregnant woman, children and those with weak immune systems wait in long, long lines to get a dose of the H1N1 vaccine, we learn that Wall Street's wants -once again comes before Main Street's needs. They not only get to move to the front of the line -they don't have a line at all.

As the below investigative report shows, while hospitals scramble to get enough vaccines for their high risk patients -and families across this country wait in massive lines to secure a flu vaccine, it seems a number of powerful firms on Wall Street already have access to the vaccine. In a "generous" move though, since this report aired, many of these firms are now offering to donate their secured allotment of vaccines to area hospitals.

As usual, it looks as though corporate America will only make a move to do what's right -after their wrongs have been exposed! This narcissistic, it's all about me, me, me attitude, validates taxpayer outrage and the need for implementing a Consumer Financial Protection Agency.

You would think that the financial industry would be a little grateful to the taxpayers who bailed them out of a billion-dollar hole, but no. In another stunning slap in the face to consumers trying to weather the current economic downturn, big banks are leading the charge AGAINST the kinds of financial reform that would ease mortgage restrictions and create opportunities for more homeowners to avoid foreclosure and protect financial interests.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Investigative Report Reveals Seniors Target of Investment Schemes

Thu, 05 Nov 2009 11:50:30 -0500

Bernie Madoff is not the only one trying to lure potential investors into risky investments, which might seem lucrative but are questionable.

Seniors living in affluent areas need to be especially cautious, as they are often the target of schemes like the one uncovered by Mc Nelly Torres, an investigative journalist based in South Florida.

In this piece for ConsumerAffairs.com, Torres investigated a company that seems to have disappeared as she began to ask questions to California regulators and found some discrepancies about the company in question.

It will not be a surprise, as it happens often, if the company emerges somewhere else under a new name. That is why Torres' article also tells readers that safe investment requires due diligence and she suggests a few resources that should be of interest to readers.

Read full article here:
HIGH-YIELD CD'S MAY BE TOO GOOD TO BE TRUE

Elizabeth Warren; A not-so-secret weapon for consumers fighting predatory financial practices

Wed, 04 Nov 2009 12:46:35 -0500

It turns out that the biggest weapon we as consumers have to wield against financial predatory practices (the one that scares big banks the most) is one of my own personal heroes Harvard Law Professor and Chairman of the TARP Oversight Committee -Elizabeth Warren. (See video below)

While the financial industry continues to fear the proposed implementation of a Consumer Financial Protection Agency it seems they are even more fearful of what might come along with it. They are worried that if this agency becomes a realitty -Warren could be at the helm- in charge of it and them. We can only hope!

A recent Boston Globe article addresses Warren's background and commitment to consumer advocacy that not surprisingly was born out of her own life experiences.

According to the Globe, her say-it-like-it-is articulate critique of predatory lending practices by big banks and mortgage companies is drawing plenty of ire from her critics who position her as a hater of banks. Her response to that, is one many of us can relate to; "That is just wrong. What I hate are banks that cheat people.''

Read the Boston Globe article in its entirety. Here's a couple short excerpts from it.

"She was once a registered Republican who believed that most families who filed for bankruptcy or had their homes foreclosed were irresponsible. It was only after years of study, she said, that she determined that many families were not primarily at fault. In Warren's view, the imposition of tougher bankruptcy laws made it more difficult for many people to forestall foreclosure on their home loans and played a role in the subsequent financial meltdown."

"...Elizabeth Warren is the nation's leading economic David, fighting to protect middle-class families from corporate Goliaths..."

Watch this earlier video where Elizabeth Warren appears on the Daily show. She details how much taxpayer money Wall Street received and what they've done with it.

The Daily Show With Jon Stewart

Mon - Thurs 11p / 10c

Elizabeth Warren Pt. 1

www.thedailyshow.com

Daily Show
Full Episodes

Political Humor

Health Care Crisis

Enforcement of Red Flags Rule Designed to Prevent Identity Theft Extended (again)

Tue, 03 Nov 2009 10:41:20 -0500

The Federal Trade Commission (FTC) has once again delayed full enforcement of the new identity theft prevention measures known as the "Red Flags Rule." Many of the businesses compelled by the FTC to comply with these changes now have a little breathing room with a new deadline of June 1, 2010 to meet.

This is the fourth extension since the rules first came into existence. Initially, the enforcement of the Red Flags Rule was expected to occur by November 1, 2008, then extended through May, 2009. Then once again, compliance dates were extended through this November 2009. Now the FTC has again, at the request of Congress, delayed the full compliance date through June 2010. This latest extension of time doesn't apply to banks, credit card issuers, credit unions, and other businesses regulated by the National Credit Union Administration and federal bank regulatory agencies who were previously mandated to meet full compliance with the "Red Flags Rule."

Part of the Fair and Accurate Credit Transactions Act of 2003, the Red Flags Rule are designed to shore up identity protection in an effort to reduce the incidence of identity theft, which has reached phenomenal numbers and percentages. Finally, a viable effort to prevent easy access to an individual's financial resources is being made as directed by Congress to the FTC.

This federal mandate increases the requirements for customer identification procedures for several types of companies and financial institutions. The companies that are forced to comply with these changes are not determined by their line of business, but rather, by whether or not their business practices fall within certain parameters.

The Red Flags Rule will have repercussions for both customers and financial institutions. For companies, it is going to entail a great deal more work. For customers, it is going to involve the presentation of more forms of identification proof. That's not a bad thing. Consumers are going to be required to show this proof to financial companies more frequently -something that is a commonsense measure that should have been required long ago.

True, the financial companies might need to spend a bit more to incorporate these measures. Plus, the customers might need to be a bit more patient when accessing their accounts as they are asked to present additional forms of identification. However, this practice is a lot more secure than simply hoping that no one steals your identity and runs off with your money. Those businesses that store our information will now be required to better protect it and have a written plan in place for all employees that handle our sensitive date.

The measures themselves are referred to as the Red Flags Rule simply because they include a list of 26 red flags that "creditors" should be watching for when dealing with customers. These red flags were compiled through the joint efforts of the Federal Trade Commission, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Treasury Department's Office of Thrift Supervision, the Federal Deposit Insurance Corp., and the Federal Reserve System.

Each red flag rule is designed to help prevent identity theft by identifying or detecting specific activities or patterns that are indicative of identity theft and creating a response to prevent these practices from developing into full fledged theft of an individual's identity.

The 26 Red Flags as provided by the Federal Trade Commission are:

1. A consumer report that includes a fraud alert.
2. Notice of a credit freeze prompted by a request for a consumer report.
3. A notice of address discrepancy provided by a consumer reporting agency.
4. Unusual credit activity including new acquisitions or inquiries.
5. The documentation provided for identification purposes appears to be questionable.
6. The photograph presented for photo identification does not resemble the individual in person.
7. The individual opening an account provides inconsistent information from that included on the papers presented for identification.
8. The records held at the financial institution and those presented by an individual are not consistent.
9. The application appears to be altered in some way.
10. The Social Security Number is questionable due to address, appearance on Death Master File, or associated filing.
11. A lack of correlation appears between the Social Security Number sequence and the individual's date of birth.
12. Presented identification information is related to existing fraud case or activity.
13. Phone numbers associated with answering service or pager or suspicious addresses provided such as a mail drop box.
14. The Social Security Number has already been presented by another customer.
15. A frequently used address or phone number.
16. Additional information cannot be provided when requested.
17. Personal information that is presented is not consistent with the information that is on file.
18. Challenge questions cannot be answered.
19. Request for additional users on an account immediately after a change of address on the account.
20. New credit is used for certain types of purposes including cash advances or high-end electronics.
21. Payment patterns change drastically.
22. Inactive accounts are suddenly awakened to frequent use.
23. Returned mail for current accounts.
24. Customer complaint about statements not arriving in the mail.
25. Customer complaint about unauthorized charges to an account.
26. The financial institution receives notification that the account was fraudulently opened by an individual known for committing identity theft.

Each financial institution that is compelled by law to enforce the Red Flags Rule is required to create a formal written policy of response to each individual red flag. This formal policy must be carried out every single time potential red flags appear. In fact, the companies involved are required to document the steps that are taken along with the results in order to provide proof that they have ensured that the particular red flag in evidence isn't related to identity theft.

The premise behind the incorporation of such rules is that identity theft will become more difficult to achieve and consumers will be protected in a manner that actually does protect their data and finances. As with any change, the growing pains are bound to put some people off, but the end result truly is worth it in this case.

Identity theft can ruin lives. It can create years of frustration. It is certainly about time to incorporate safeguards that actually protect consumers should someone gain access to their stored personal information. While these measures are not going to do away with identity theft, they will help to reduce the risk and impact on some level.

Consumers must still have their own plan of action in place and be ready to act when notified their data has been breached, hacked, stolen or compromised. Taking a little time now -may save you a lot of time later! Take control of your data and identity -before someone else does.

Petition Urging Congress to Regulate Mortgage Servicing Industry and Protect American Homeowners

Mon, 02 Nov 2009 10:25:39 -0500

A new petition urging Congress to take swift action and regulate the mortgage servicing industry is circulating and growing momentum. As the economy and homeowners continue to struggle, this unregulated industry continues to be the source of much of the pain and distress felt by borrowers who continue to search for help from the true holder of their mortgage, while simultaneously fighting against illegal foreclosure attempts by their mortgage servicing company.

Here are a few points made in the Petition to Congress:

Tens of thousands of homeowners across this nation have spent hundreds of hours dealing with mortgage servicers who have little incentive to actually help them/us achieve permanent loan modifications; while in the process of obtaining a modification, many homeowners have been lied to, misled, foreclosed upon or threatened with foreclosure.

We propose an immediate halt to all foreclosures until new, mandatory guidelines are established and that these guidelines be overseen by a new Consumer Protection Agency, which was recently recommended by President Obama and endorsed by Sheila Bair, chair of the FDIC.

The American Dream has now become the American Nightmare courtesy of the banking industry, which is taking a cavalier approach to the stress, heartache and despair caused by the current lack of oversight, transparency and enforcement of loan modifications. It is of the utmost importance that action be taken to correct this travesty in order to preserve home ownership for the thousands of Americans that are and will continue to be struggling in this economic time.

Click here to read the petition in its entirety, sign it and send your letter to Congress, urging them to take swift and immediate action.

Please also take the time to urge Congress to mandate that mortgage servicing companies allow all borrowers access to a Monthly Mortgage Statement that would allow the accounting of a mortgage be transparent.

If a borrower has the ability to track their payments they can learn of any misapplied fees and penalties applied erroneously to their account. They will become aware of any mishandled escrow monies, inaccurately applied extra principal payments and learn of any missing mortgage payments. Monthly mortgage statements will give borrowers the ability to verify their mortgage payments are received and applied accurately each and every month.

With access to a monthly mortgage statement, errors and fraud can be detected before they've become too big to repair. The borrower can learn of problems long before they wake up to a nightmare scenario where they are forced to prove their innocence -and forced to right complex corporate wrongs. Without the aid of a monthly statement borrowers are forced to blindly trust their mortgage is handled properly -and we should all know by now...that's just not the case.

UPDATE: today the Huffington Post did a piece today about the Petition! See their article:
Homeowners: Hey Congress get off your ***!

Want more homeowner stories? Read these;

Homeowners continue to speak out Coleen's story

Mortgage Servicing Complaints Rise; Tammy's Story

Don't Skip Mortgage Payments Mari's story

Why we need financial reforms The Parton's Story

If this can happen to me, it can happen to anyone Jessica's story

Loan modification runarounds McCloskey and Cheverez story

Think you're safe -think again! Jack's story

And, Coleen over at StopMortgageServicers.org offers us this view;

10 Easy Steps to Being a Mortgage Servicer
with a Money Back Guarantee    (StopMortgageServicers.org)

   1. Become a Business
   2. Open a Line of Credit
   3. Pay $1 Million for 1,000 Loans Worth $100 Million
   4. Use your line of credit to ADVANCE each payment to the investors
   5. Accept monthly payments from the borrowers
   6. Repay your advances with borrowers' monthly payments
   7. Make Money
   8. Pretend to help customers while you delay reporting defaults
   9. When you finally have to report a default, Foreclose....FAST
10. Lastly, above all else, play by the CRAs' Rules so your rating remains high

For more information and details about items 1-10 on being a mortgage servicer Download the Power Point Presentation

How Not to be Scammed!

Sun, 01 Nov 2009 20:15:07 -0500

As I've noted in a number of earlier blogs, whenever someone discovers they've been scammed it doesn't take long to notice the scammer has gotten away with much more than just money. They manage to steal the victim's sense of security and very peace of mind.

The truth is, whenever the economy takes a downward turn it's inevitable that crime rates turn upwards. Whether con-artists put a new twist on an old scam or use innovative technology as their weapon of choice, they are very good at what they do and figuring out ways to con us -is their number one priority.

What's the best way to avoid falling victim to their tricks or traps? Be wise to them!

Well known scam buster Chuck Whitlock goes undercover as a security guard to show just how easy it is for con-artists to swindle unsuspecting consumers. In this first video report, he pretends to be a security guard as he carries out the same scam that real crooks use to successfully steal money from people outside an ATM.

Watch this video and learn how easy it is for identity thieves operate to steal your life. In this video report Chuck easily assumes a police chief's identity (with the chief's permission).

In the below video, watch as Chuck poses as a water inspector to gain access to your home -and your money.
.

See a few earlier blogs for tips to avoid being scammed.

Also visit ScamVictimsUnited.org

Consumers rally against unfair banking practices as bankers gather in Chicago

Wed, 28 Oct 2009 11:37:27 -0500

As bankers gathered in Chicago this week, thousands of consumers from across the country showed up in Chicago too. Protesters are calling on these banks who received billions in our taxpayer bailout money to help consumers who have fallen victim to bad loan practices and are losing their homes to foreclosure.

As I've mentioned on numerous times, (see here and here for a couple) the financial industry is strongly opposed to any real regulatory reforms and continues to lobby forcefully against the proposed Consumer Financial Protection Agency. Consumers have been rallying outside the American Bankers Association annual conference in Chicago since Sunday, protesting against Wall Street banks and their lobbyists to call for much needed financial reform.

Though the Showdown in Chicago may have officially ended yesterday, the fight for fairness in lending and financial industry reform continues. A vote on the CFPA is expected soon. Please write to your members of Congress today and ask them to support the CFPA.

The Tale of Nettie Mcgee

Enough is enough -It's time for financial reform and accountability

Faith can't heal financial woes

To view more images and read more about the Showdown in Chicago, visit the Chicago Tribune and Huffington post.

Read a few of the many consumer stories on this blog and it becomes clear why we need reforms and an agency designated to protect consumers.

Scam Alerts: FBI and FDIC warn public not to fall for latest phishing scams

Wed, 28 Oct 2009 09:36:01 -0500

A Phishing email is designed to appear both urgent and legitimate. It may appear to come from your bank, credit card company, cell phone provider, or as in many cases -various government agencies. The spammers will often encourage you to click on an embedded link or call a specific phone number. Don't do it. These are hooks aimed at prompting you do follow their lead and once you do they can then get you to divulge personal information such as your Social Security Number, bank account information or even download malicious spyware on your computer.

The latest phishing scams are using names of high-ranking FBI executives and names of various government agencies.

This week the FBI and the FDIC have both issued warnings that any email received appearing to come from their offices are scams.

Don't fall for these scams;

FBI was "Department of Homeland Security and the FBI were informed";

The Department of Homeland Security and the FBI were informed you (the e-mail recipient) is allegedly involved in money laundering and terrorist-related activities. To avoid legal prosecution, you (the recipient) must obtain a certificate from the Economic Financial Crimes Commission (EFCC) Chairman at a cost of $370. The spam provides the name of the EFCC Chairman and an e-mail address from which the recipient can obtain the required certificate.

FDIC "check you Bank Deposit Insurance..." scam

The subject line of the email reflects a statement that would grab your attention. It states: "check your Bank Deposit Insurance Coverage."

The email states:

"You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets."

The email then urges its recipients to "visit the official FDIC website and perform the following steps to check your Deposit Insurance Coverage," -an embedded link is provided.

The provided link is believed to contain a malicious computer code code that when clicked on will infect your computer. Do not respond -or click on the links.

Depositors can go directly to the FDIC's website at www.fdic.gov to learn what banks have recently failed.The FDIC talks to consumers about deposit insurance and assures the public their money is safe and further details the state of the FDIC in this below video.

These phishing scams, like many others, are designed to capitalize on events in the news -and your fears. Government agencies do not send unsolicited e-mails of this nature. Government agencies use the legal process to contact you and they will not send threatening emails to consumers demanding payments for Internet crimes or urge you to click on embedded links.

If you have been a victim of Internet crime, please file a complaint at www.IC3.gov

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Removing Online Web Tracks from your Computer

Tue, 27 Oct 2009 13:21:23 -0500

If you have a computer, then you have web tracks -a/k/a footprints. What are they? Web tracks or footprints are those tiny traces that remain on your hard drive after you have used the Internet to read your mail, chat with your friends, browse through online stores, or any other activity that necessitates the use of the Internet.

Personal information that is typically stored on a computer includes the passwords, account numbers, email addresses, etc that are stored in the autocomplete file. Anyone or any spyware application that has access to your computer has access to this data unless you remove it.

Web tracks typically include the browser history, the browser cache, the autocomplete history, and cookies. More specifically, all of the keywords that you type into the search bar are stored on the computer. Plus, the URLs that you type into the browser are kept in storage on the computer. Information from each web page that you visit is stored on the computer's hard drive along with the identifiers from each and every web page that you visit.

Unfortunately, having web tracks stored on the computer also means that a lot of personal information is also stored on the computer. Is this a problem? Not initially, but it can become a problem if your computer becomes infected by spyware or if someone uses your computer without your permission.

You might find yourself wondering why the computer maintains all of this data in its resources. It does so to facilitate the loading of web pages that you visit frequently. Some of this information is found in the drop down menu for the search and address bars, offering the computer user the opportunity to simply click and surf without typing in the full word or address.

Many people like having web tracks on their computers strictly for this reason. The existence of faster-loading web pages means less waiting time for the computer users who are actively searching the web and browsing multiple web sites.

It is possible to clear your web tracks from your computer without too much difficulty so that you can maintain the security of your personal information.

Removing web tracks can be completed manually or through the use of a web track eraser. A web track eraser is an application that can be installed onto the computer and run so that it erases all evidence of selected data.

To remove web tracks from your computer, you must follow a short set of directions that have been designed for use with specific web browsers. Simply follow the instructions for the web browser that you have. The directions might vary slightly depending on the version of the browser that you are currently using.

Removing Web Tracks in Internet Explorer:
1.   Open up Internet Explorer.
2.   Navigate to Tools at the top of the screen and click.
3.   Select Internet Options.
4.   Select the General tab in the Internet Options dialog box.
5.   Select Clear History.
6.   Click on ok.

Removing Web Tracks in Firefox:
1.   Open up Firefox.
2.   Navigate to Tools at the top of the screen and click.
3.   Select Clear Private Data.
4.   Click the clear button next to Browsing History as well as any other data that you would
   like to delete including cookies, cache, passwords, etc.
5.   Click on ok.

Removing Web Tracks in Opera:
1.   Open up Opera.
2.   Navigate to Edit and open up Menu.
3.   Select Preferences.
4.   Select Navigator, which is listed under the category title.
5.   Select Clear History within the History listing.
6.   Click on ok.

Removing Web Tracks in Mozilla
1.   Open up Mozilla.
2.   Go to Edit and open Menu.
3.   Select Preferences.
4.   Select Navigator under the category title.
5.   Select Clear History under History.
6.   Click on ok.

To remove Web Tracks in Netscape:
1.   Open Netscape.
2.   Navigate to Edit and open Menu.
3.   Select Preferences.
4.   Select Navigator.
5.   Select Clear History.
6.   Click on ok.

It is important to periodically remove all traces of your web tracks from your computer to maintain the safety of the personal information that you have stored there.

For those who prefer, a number of web track eraser applications or privacy management tools are available. Rather than taking these steps to manually remove your web tracks, you can also find a number of web track eraser applications or privacy management tools that will accomplish the same.

Confused over where to get those free credit reports? The FTC wants to hear from you

Mon, 26 Oct 2009 11:46:54 -0500

Free credit reports -where? When was the last time you saw a television commercial or a public service announcement advising you how to get copies of your free credit reports? And I don't mean those non-stop catchy rhyming jingles singing "F.R.E.E. spells Free". I mean where and how to obtain the no-strings and no-dollars attached, genuinely free credit reports. Never -right? And that's why the FTC wants to hear from you.

Thanks to the Fair and Accurate Credit Transactions Act (FACTA), each of the big three credit reporting agencies (Experian, Equifax and Trans Union) must, when asked, provide every consumer with one free annual credit report-but finding the right place to get them has proven confusing and challenging to consumers. That's because unfortunately, FACTA didn't also mandate that the credit reporting agencies publicize how to go about getting them!

This omission turned out to be a big faux pas and has led to a variety scams and misleading advertisements all touting free credit reports that aren't really free at all-- that is, unless you pay for credit monitoring services or a credit score offered by the company behind the ads.

The FTC has received so many complaints from aggravated consumers that they now want to rectify this problem and change the way these for profit companies advertise their services and products.

The recently passed Credit Card Act of 2009 requires the FTC to issue a rule change that would make advertising for free credit reports less confusing to consumers. In order to accomplish this task, the Federal Trade Commission wants to hear from you -especially if you have a story to share or have been harmed.

It's important for them to get as much consumer feedback as possible. The changes that the FTC is considering include forcing websites to include a separate landing disclosure page that reads:

"This is not the free credit report provided for by Federal law. To get your free report, visit www.AnnualCreditReport.com or call 877-322-8228."

Additionally, the rules would require prominent disclosure in all forms of advertising: TV, print and radio.

For several years, consumers have been subjected to nonstop advertising for services that supposedly offer free credit reports. And for just as many years I've been hearing complaints from consumers who report they felt duped into buying services they didn't know they were buying after one way or another they were misdirected to a bogus site.

Aside from the confusing advertisements, the legitimate site annuacreditreport.com has been a major source of confusion and trouble for many consumers. If consumers are lucky enough to find their way to the legit site, many report difficulties in maneuvering the site and find that one wrong click on an inappropriately placed link can whisk them off to an impostor site.

Call me crazy, but isn't it reasonable to expect that the official site designated to ensure consumers get their free credit report -also be ad free? If you agree, be sure to send your comments to the FTC prior to November 30th.

To submit your comments online click here.

Comments made through snail mail can be mailed to Federal Trade Commission, Office of the Secretary, Room H-135 (Annex T), 600 Pennsylvania Ave. NW, Washington, D.C. 20580.

The proposed rules can be found on the FTC.gov site here.

Watch this FTC Spoof Video released earlier this year;

Report; Why Mortgage Servicers Foreclose when they Should Modify

Fri, 23 Oct 2009 10:53:12 -0500

Foreclosures vs loan modifications: Which costs mortgage servicers more? That question is answered in this below eye-opening report authored by Diane E. Thompson of Counsel, at the National Consumer Law Center .

Why Servicers foreclose when they should modify and other puzzles of the servicer behavior: Servicer Compensation and its consequences paints a picture of how the current mortgage servicing industry has little to no incentive to work with borrowers.

One commonsense solution to the foreclosure crisis would seem to be offering borrowers loan modifications. But as countless borrowers continue to point out -all they continue to get is a loan modification run-around that further ruins their credit and pushes them into unfair or illegal foreclosures.

The financial industry has responded to media questions as to why borrowers complain of mortgage servicers losing documents and slow -to no- responses on their loan applications indicating the problem is a result of too many applications for their staff to handle the load.

But this report takes us down a different path. Turns out there may be a good reason borrowers are getting the run-around pointing out that servicers may have a reason not want to help their customers modify their loan at all; "Even if the investor takes a hit on the post-foreclosure fire sale, the servicers have stopped its bleeding and recovered any fees, costs, and advances...".

According to this report, servicers unlike investors or homeowners, do not generally lose money on a foreclosure. In fact, loan modifications can be costly to the mortgage servicers;

"A servicer deciding between a foreclosure and a loan modification faces the prospect of near certain loss if the loan is modified and no penalty, but potential profit, if the home is foreclosed." And it turns out -the quicker the foreclosure -the more money they could potentially make.

"Servicing companies get repaid all advances when a foreclosure is concluded. They can also recognize as revenue on their books, after foreclosure, all previously unpaid charges, such as late fees, and collect the costs of those unpaid charges from the foreclosure. By moving to foreclose quickly and to sell the properties after foreclosures it can actually help servicers offset the costs of interest advances..."

Read and download this 60 page in-depth report on the mortgage servicing industry -and it may provide the answer that many homeowners have been repeatedly asking; "Why won't my moretgage servicing company work with me?"

The truth is, as things stand now, unless legislative regulatory actions are taken and homeowner complaints are taken seriously - the economy will continue spiral downward as homeowners continue to lose their homes.

NCLC Report on Mortgage Servicers -

See a few earlier blogs on mortgage servicing, and read about H.R. 1123 Produce the Note! as well as just a few of the most recent borrower stories on this blow;

Homeowners continue to speak out

Mortgage Servicer: Step up and do the right thing

If this can happen to me...

Don't skip mortgage payments

Mortgage Servicing Industry Subject of AP investigation

Congress Considering Bills to Reform Bank Fees and Save Consumers Money

Thu, 22 Oct 2009 08:51:54 -0500

There's a lot of talk lately over banking policies, rising fees and interest rates. The House Financial Services Committee is holding hearings and reviewing a number of proposed bills that involve further controlling the credit card industry. Everything is on the table, from regulating overdraft fees to reforming credit and debit card swipe fees to creating a Consumer Financial Protection Agency whose purpose would be to protect consumers and their financial interests from predatory practices--and the financial industry doesn't like any of it one bit. They prefer to keep things the same -trouble is, isn't that why our economy is in such bad shape to begin with?

Many of the proposed bills can be pretty confusing for consumers to understand. Here's a simplified version of the issues.

Overdraft fees

Senate and House bills, S. 1799 and H.R. 1456 are aimed at regulating bank overdraft fees and cover ATM and debit-card transactions as well as checks. Banks are projected to drain as much as $38.5 billion from consumers this year by charging so-called overdraft fees. Senator Dodd's bill, S. 1799, would put a stop to this in a big way, by allowing banks to charge only one fee per month and six fees per year. You might say, just don't over draw and you won't be charged anything. It's not always that simple. There are several ways you can wind up paying overdraft fees without knowing. See earlier blog.

Interchange "swipe" fees

H.R. 2382, the Credit Card Interchange Act of 2009. The bill would require credit card companies to disclose interchange rates, terms and conditions, prohibit any practices that violate consumer protection or anti-competition laws, allow merchants to give cash discounts, set minimum credit card purchase amounts, and choose which credit cards to accept--all things that would currently bring about hefty fines against store owners.

Lately the question of "swipe" fee regulation may have been shifted to the back burner. The Columbia Journalism Review and other outlets have been reporting that interchange fee legislation seems to have stalled.

Still, major organizations like The National Retail Federation (NRF), National Grocers Association, National Restaurant Association, and advocacy groups such as Americans for Financial Reform have come out in favor of reforming credit card interchange fees.

Americans for Financial Reform, a group of about 200 national and state organizations, recently announced its support for legislative action that would bring transparency and fairness to what they refer to as a broken system--particularly hidden "swipe fees" (interchange fees) "paid by all Americans, regardless of whether they use credit, debit, checks or cash."

In support of swipe fee reform they point out that "Swipe fees have grown at a staggering pace from about $16 billion in 2001 to about $48 billion in 2008. This is a clear sign of a broken market. Not only do these huge fees injure consumers by inflating the cost of goods and services, they create incentives for banks to view credit and debit cards as fee engines."

Brian J. Donovan, engineer, attorney and CEO of Renergie Inc has written a terrific explanation of the current state of the credit industry, Two Threats to Our Nation's Economy and has put out a plea for using funds from credit card transactions to bolster the faltering national Natural Disaster Fund. Donovan believes that the failure to regulate the U.S. credit card industry in a comprehensive manner and the lack of an adequately funded Natural Disaster Trust Fund are threats to our nation's economy

Donovan lays out the facts.

• Interchange fees are as high as three percent of the purchase total. These fees add up to "more than one quarter of all credit card revenue."

• Those interchange fees were designed to cover "processing" costs but in fact they pay for rewards programs on some higher-end cards.

• Interchange fees are not regulated in the United States. They continue to increase.

Donovan's idea for reform has an added twist. He proposes not only that interchange fees be regulated but that a small percentage of the fees be designated for natural disaster relief. Not only would consumers win--lower swipe fees means lower prices--and the entire nation wins when areas hit by natural disasters can be brought back to full health and productivity within a reasonable length of time. Download his letter to the President on The Need for Comprehensive Credit Card Reform.

Get in touch with your legislators and tell them to fight unfair credit card fees.

In case you missed it earlier, here's a video depicting why these fees are so costly to retailers, and why they are essentially passed on to consumers whether or we use a credit or debit card, cash or check.

Homeowners Continue to Struggle to get Loan Modifications

Tue, 20 Oct 2009 12:57:09 -0500

Many homeowners continue to get the run-around as they look for the elusive loan modification from their lender. A loan modification is simply a new mortgage that will help borrowers reduce their sizable monthly payments by reducing the interest rate or extending the length of the loan. Getting a loan modification can take months. Borrowers have complained that banks are unresponsive, lose paperwork, or brush them off telling them they "don't qualify" for assistance. Even though lenders can choose to help bail out taxpaying homeowners and modify a loan on their own, whether or not the borrower qualifies for the government's Making Home Affordable program, it appears they aren't doing so.

Read about Weston, FL attorney Kraig Weiss and his wife, Ana, who are living their own loan modification horror story. Earlier this year, they agreed to a loan modification with Bank of America, only to have the bank rescind the offer. Kraig and Ana sued. Now the bank is moving toward foreclosure, even though they are making mortgage payments. Read more about their situation here.

Despite all the rallying cries of foreclosure help by the banks, people actually losing their homes say they're being met with a different reality. Instead of help, they get the run-around. The Consumer Warning Network's Angie Moreschi reports on the frustration and road-blocks homeowners face when they try to negotiate with their lenders -in this case EMC/Chase.

Unsure what you can do to fight predatory practices? Need to talk with experts?

Come to the Consumer Empowerment Conference & EXPO in Hollywood, FL on Saturday, November 21st at the Crowne Plaza Hotel at 1:00 pm. Meet with your advocates and learn how to protect yourself against financial predatory practices. See PDF or feel free to email me directly questions. More details tba soon.

Debt Collection Complaints Continue to Rise Sharply

Tue, 20 Oct 2009 11:46:07 -0500

Even in a good economy, the debt collector comes knocking. However, in a bad economy, he knocks a little bit louder and a lot longer. As the unemployment rate climbs and fewer people can make good on their debts -debt collectors become more aggressive and more apt to use illegal methods to try and collect on outstanding debts -whether owed or not.

It's important to know what your Federal and State rights are in order to protect yourself from overly aggressive debt collectors. Always seek the advice of an experienced consumer attorney, especially if you believe your rights have been trampled on by illegal debt collection practices. Here's a few answers to the most common questions;

What if the Debt Isn't Yours?

The solution here may sound simple, but getting the debt collector to take note is not quite as simple. After all, they are determined to make you pay because that is how they get paid. If you don't cough up the cash, then he or she isn't going to earn their commission. Nonetheless, if the debt simply doesn't belong to you, Never pay it -in hopes it will get them to go away. That will cause further harm to your credit reports as it is an acknowledgment the debt was in fact yours. Whatever correspondence you send to a debt collector should be sent via certified mail.

What if the Debt is Very Old? Do You Have to Pay?

In most cases, a collection agency can only initiate a lawsuit to collect a debt within a very limited time frame. Although the number of years vary according to the statute of limitations in force in a particular state, check with an experienced attorney whether it is still even recoverable.

Old Debt? Can the Debt Collector Threaten to Place it Back on Your Credit Report?

The debt collector can threaten to place an old debt back on your credit report all he wants, but the truth of the matter is that after a predetermined time has passed, he cannot do so. Therefore, his threats to ruin your credit score by placing these debts on your credit reports are often idle threats. In most cases, old debts will remain on your credit report for seven years unless they are linked to a bankruptcy or foreclosure. Then, those debts will remain visible on your credit report for as long as ten years.

Can a debt collector threaten me?

NO! Debt collectors may not harass you, threaten you, humiliate you or intimidate you. They can't call you all hours of the day and night and they are not allowed to share news of your debt with anyone other than your spouse. That means they can't call your boss (or threaten to do so), leave messages on your answering machine with details of your debt, contact your neighbors or any relative other than your spouse

Know what your rights are -to best protect them! See a few earlier blogs with video and links here.

According to the Federal Fair Debt Collection Practices Act, the debt collector is not allowed to keep calling you once you notify them in writing not to. However, the collection agency is entitled to contact you if they are initiating a lawsuit, an unlikely event when the debt is not yours.

Also, today's Sun Sentinel has an article pointing out that consumer complaints against debt collectors in Florida have risen sharply.

Florida's attorney general received 5,342 complaints against debt collectors in 2008, a 25 percent increase from 2007. This year, complaints are on track to exceed 5,900. The state's Office of Financial Regulation, which licenses collectors, has received 780 complaints so far this year, compared with 629 in 2008. See article here. Debt collectors: More consumers reporting abusive, illegal tactics

Are you a consumer struggling with debt and unsure of your rights and how to stop illegal debt collection practices?

Come to the Consumer Empowerment Conference & EXPO in Hollywood, FL on Saturday, November 21st at the Crowne Plaza Hotel at 1:00 pm. Meet with your advocates and learn how to protect yourself against financial predatory practices. See PDF or feel free to email me directly questions. More details tba soon.