Alternative Check Cashing Solutions:

Let’s say you receive a check. As you may know, the next step would be to cash the check. Although this may sound like a simple task, it is difficult if you do not have a bank account. Some consumers that experience financial problems may also have trouble opening a checking account. According to Transaction World Magazine, a publication that caters to the electronic processing industry, it is estimated that 20-24 million Americans fall into this category for a variety of reasons. If you are one of them, consider the following solutions that may help you.

Shop around. All banks use their own criteria when a consumer wants to open a checking account. In most cases, credit history is not a major factor since you are not borrowing money. However, you may have a problem if you had bounced a large amount of checks in the past. If the bank does deny you
the right to open up an account, be sure to ask why and if your credit report was used. You can also try to explain your situation, especially at a small, neighborhood bank. Remember to choose accounts that are free or have low monthly fees. Try to stay away from bank accounts that require a high minimum balance in order to avoid fees. In the end, this may cost you money.

Credit unions: Credit unions are nonprofit financial institutions that are usually linked to a specific employer. All credit unions are owned by their members and the deposits are insured by the National Credit Union Administration (NCUA). Contact your employer to see if they belong to a credit union or you may visit NCUA web site located at http://www.ncua.gov/indexdata.html to find a credit union in your area. You may also access the NCUA initiative site www.accessacrossamerica.gov. Credit unions may allow you to open a bank account at little or no cost and also offer other services such as car loans and mortgages. Establishing a good relationship with a credit union now may help you rebuild your credit once you complete your debt negotiation program.

Community Development Financial Institutions (CDFI): These organizations offer a variety of financial services to low-income and underserved communities. Visit www.cdfi.org for more information. If you want to open a checking account or find check cashing services, specifically contact the National Federation of Community Development Credit Unions at www.natfed.org.

Electronic Transfer Accounts (ETA): These accounts are available to consumers that receive regular federal payments such as Social Security or VA benefits. According to the U.S. Department of Treasury, an ETA will cost you no more than $3.00 a month and it is not based on credit. Once you enroll in an ETA, you will also sign up for direct deposit. Participating banks will usually give you the privileges of withdrawing money via an ATM or an over-thecounter transaction. However, consumers do not have any check writing privileges in an ETA. For more information on eligibility requirements and ETA providers in your area, visit www.eta-find.gov/Index.htm.

Additional options for payroll checks:
Grocery Stores: Contact your local grocery store to see if they offer check-cashing services. You can then purchase money orders to pay your bills in place of writing checks.
Employers: Consider talking to your employer to see if they will cash your check for you. If your company has a good relationship with a certain bank branch, you may also be able to cash your check at that particular location.
Issuing Banks: Even if you cannot open a checking account with a certain bank, most banks will cash a check for free or for a small fee if it was issued by them.

Be wary of check cashers!
The U.S. Department of Treasury reports that check cashing establishments typically charge up to 3 percent of the check total. This would cost a minimum wage worker between $15 and $30 per month! Also, many of these companies also offer financially-strapped consumers
other high risk services such as payday loans.

UCan Corner.
United Consumer Advocacy Network The FDIC Consumer News offers a special money management guide for teens. Have your child take this quiz and then visit www.fdic.gov/consumers/consumer/news/cnsum06/ to read the helpful information. The answers are listed below.

Money Management Quiz for Teens
1. All banks offer checking and savings accounts that are pretty much the same in terms of features, fees, interest rates, and opening balance requirements. True or False?
2. Let’s say you put money in a savings account paying the same interest rate each month, and you don’t take any money out. Even though your original
deposit and the interest rate remain unchanged, the amount of money you will earn in interest each month will gradually increase. True or False?
3. FDIC insurance covers deposits, like checking or savings accounts, but not investments such as stocks, bonds, or mutual funds. True or False?
4. Because credit cards offer the option to pay a minimum amount due each month — for example, $20 or $30 on a purchase of several hundred dollars —
it’s always smart to send in the minimum and stretch out the card payments as long as possible instead of paying the bill in full. True or False?
5. If you receive an e-mail saying that a company you or your family does business with needs you to update your records by re-entering your Social Security Number or bank account numbers, it’s always safe to provide these details as long as the e-mail explains the reason for the request
and shows the company’s logo. True or False?
6. It’s possible that a gift card you receive for your birthday or another occasion may come with an expiration date, meaning if you don’t spend the entire balance by that date you could lose whatever amount remained on the card. True or False?

 

Answers:
1) F 2) T 3) T 4) F 5) F 6) T

UCAN client receives justice in collector harassment case.

At UCAN we receive calls from clients that say collectors have repeatedly called them at work about a delinquent debt. The Fair Debt Collection Practices (FDCPA) prohibits collectors to contact consumers at their place of employment if they were told not to and if it could jeopardize their employment. Despite this fact, some unscrupulous collectors choose to disregard this law. Below is a story about how a Texas debt settlement client took action against a major debt collection company.

Mistake #1: The debt collector continued to contact the client at work after he knew her employer disapproved of this action. The client remembers one particular day when she began to receive calls from this collection agency in the morning. After answering the first call, she politely informed the collector, as she did many times in the past, that she could not take calls at work. Nonetheless, the harassing calls continued approximately every five minutes.

Mistake #2: The debt collector falsely represented himself as an attorney. When the collector did not receive any response from the client, he started to call the receptionist at the client’s workplace. After several rude exchanges with the receptionist, the collector moved on to the consumer’s HR and payroll department. This collector violated the FDCPA once again by claiming to be a lawyer and requesting wage information for a “wage garnishment.”

Mistake #3: The debt collector informed third parties about the client’s delinquent debt. In addition to all of the havoc that occurred on this day, the consumer discovered that the collector also called many of her family members and became very agitated when they did not give him the information that he wanted.

UCAN is on your side. Having been educated by UCAN to preserve all debt collector contacts as well as keeping a precise call log,
the consumer gathered written statements from all witnesses (receptionist, payroll, HR personnel) and sent those materials to UCAN.
Upon reviewing the consumer’s issue, a UCAN representative forwarded the matter to their attorney network.

After some investigation, the matter was referred to an experienced FDCPA attorney located close to where the consumer resided. From the written statements and other evidence, the FDCPA attorney was convinced the actions of this national debt collection company went well beyond what the law allowed. The attorney agreed to take the case on a contingency basis, which means that the consumer did not have to pay any fees to the attorney.

Justice is served! The FDCPA attorney found that the collection agency’s actions also violated Texas state laws designed to protect consumers
against heavy handed debt collection tactics. The attorney swiftly obtained a settlement payable to the client. In addition, the debt collection company had to pay full attorney fees.

Feel free to contact UCAN. It is vitally important for debt settlement clients to be proactive in their programs, to keep accurate call logs and be prepared to produce such things as witness statements and, if possible, voice recordings from collectors that seem over the line. With your due diligence, the assistance of UCAN and of the attorney network, many more clients will be able to turn a negative and stressful collection experience into a positive one. You can call us at 1-877-462-8226 or e-mail us at info@ucan.net. Our normal business hours are Monday thru Thursday 9 a.m. to 7 p.m. EST and Friday 9 a.m. to 5 p.m. EST.

Helpful Web Site
Choose to Save® is a national education and public outreach program. You can access a wealth of valuable information and financial calculators at www.choosetosave.org.

Spare Change
News briefs and financial tips
FTC alleges ads for “free” credit report violate federal court order.

Consumerinfo.com, doing business as Experian Consumer Direct, will pay $300,000 to settle Federal Trade Commission charges that ads for its “free credit report” offer failed to disclose adequately that consumers who signed up would be automatically enrolled in a credit-monitoring program and charged $79.95. The FTC alleged that the failure to clearly disclose the enrollment and charges violated a previous settlement. The only site that allows consumers to obtain free credit reports is www.annualcreditreport.com. Under the Fair and Accurate Credit Transactions Act (FACT Act), each consumer may request one free credit report per year from each of the three major credit bureaus. Keep in the mind that free credit reports that are requested through this site do not include your credit score, only your credit disclosure file. Please visit this web site for more information.

Consumers are overloaded with direct mail. According to Cardwatch.com, a web site that tracks the credit card industry, consumers have received approximately 8.0 billion direct mail credit card solicitations in 2006, a 30 percent increase from the previous year. This source also reports that American Express and Capital One sent the most mail. If you are still receiving “preapproved” credit card offers, you may call 1-8885OPT-OUT. This process will block your file in the three major credit bureaus.

Take the six degree challenge. The Power is in Your Hands campaign is supported by 23 trade and non-profit organizations that are dedicated to helping consumers conserve energy. Visit their informative web sites at www.powerisinyourhands.org and www.sixdegreechallenge.com. You can find many energy-saving tips and interactive quizzes such as “Take the Six Degree Challenge.”

FTC offers advice on giving the bounce to counterfeit check scams. A new scam is swindling consumers: counterfeit checks that seem legitimate to both bank employees and consumers, but leave unsuspecting consumers footing the bill. The FTC is issuing a new brochure entitled, “Giving the Bounce to Counterfeit Check Scams.” While the angles used by scam artists may vary, the basics of the counterfeit check scheme remain the same. The consumer receives a generous check with an explanation that they have just won an award, a prize, a lottery or some other windfall. The consumer is instructed to deposit the check and wire a portion back to pay fees, taxes, or the like. The consumer deposits the check, the bank credits the funds to the consumer’s account, and the consumer wires the money to the sender. Eventually, both the bank and the consumer learn the check was bogus. Unfortunately, the consumer is out of luck: the money that was wired can not be retrieved and, by law, the consumer is responsible for the deposited check, even though they did not know it was fake. Visit the consumer section of the FTC site at www.ftc.gov or access this topic directly at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre40.htm.

Banks swipe fees as consumers swipe debit cards. Banks across the nation are taking advantage of the upward trend in debit card use to make high-cost overdraft loans more common, according to a recent study released by the Center for Responsible Lending (CRL). The report, “Debit Card Danger,” analyzed the checking accounts of more than 5,000 customers of the nation’s 15 largest banks and found that debit card purchases and ATM withdrawals trigger 46 percent of high-cost overdraft loans. Written checks, on the other hand, are responsible for just over one quarter. Making an in-store debit card purchase is by far the most expensive way to overdraft, costing $2.17 for every dollar borrowed. By comparison, check-triggered overdraft loans cost $0.86 per dollar borrowed. CRL claims that banks could prevent debit card overdrafts at checkouts and ATMs by denying the transaction or warning the customer, though doing so would eliminate the opportunity to charge an average $34 fee. Let’s talk about a helpful web site. If you want to find a better cell phone plan, visit www.letstalk.com. This site allows you to compare plans that are available in your area.

 

Inspiring Thoughts
If you can find a path with no obstacles, it probably doesn’t lead anywhere. ~Frank A. Clark

Inspiring Thoughts As you move through your debt negotiation program, you may long for the day that you will be free of debt, which certainly will be a significant accomplishment. Of course, many people realize that once we achieve one goal in life, we then face another opportunity or challenge.
One goal that certainly could be of interest is rebuilding your credit. This is a topic that may bring about mixed feelings. You may be eager because you have a chance to start anew, yet overwhelmed because you may not know where to begin. Although rebuilding your credit is an exciting time to focus on the future, it may take as much time as paying off your debt. At first, you may still experience some rejection and adversity. For example, a lender may deny your application for a car loan or you may be forced to pay a higher rate. While these situations may be diffcult to bear, you must not regret all of your hard work and perseverance during your debt negotiation program. Keep in mind that some potential lenders simply view you as a low three-digit credit score number or label you as “high risk.” Banks lend people money because they want to make more money in return. If you are not approved for a loan, it is not a reflection on your character; it is simply a business decision. You have probably heard the saying “good things come to those who wait.” This cliché could also be applied to re-establishing your credit. Upon completing your program, make a conscious effort to take steps to improve your credit rating. Consider applying for a credit card and charge small amounts which you can afford to pay in full each month. Secured credit cards are also an option. Timely payments on all of your bills will eventually put you in a low risk category. Although it is impossible to guarantee anything in life, practicing good financial habits should sooner or later boost your credit score. Remember that there are also many opportunities to improve your financial skills as you strive to settle your debts. For instance, take advantage of the many financial resources available online and at your local library. Knowledge is power and educating yourself on money matters will help you at all stages on the road to financial freedom.

 

Overwhelmed by Clutter?
Consider selling unused items online! As the spring season approaches, you may engage in a spring cleaning ritual. After you finish this project, you realize that you have a heap of unwanted and unused items. In order to unload all of your things, you may want to consider online auctions, a selling tool of the new millennium. One of the most popular acution sites is eBay (www.ebay.com).

Steve Kemerer of North Huntingdon, PA started selling personal items on eBay in February 1999. Shortly afterwards, he decided to launch a small online business and sell glow bracelets via eBay. “It is cheaper to list on eBay rather than place an ad in the local paper, simply because you reach millions of people worldwide,” said Kemerer.

This online expedition only requires an Internet connection, a scanner or digital camera; and stuff to sell…which you already have. Before you begin to list items, carefully review the policies, fees, and procedures of the online site. Here are a few tips to keep in mind when posting your product:

Research price. As you decide on a starting price, search for similar products on the site so you can set a comparable rate.

Describe items in detail. Write thorough and accurate descriptions of the items that you plan to sell. Be honest about the condition and flaws in the product. Remember to use keywords that you think people will type in the search field to find your product.

Post a picture of your item. Most people are reluctant to spend money on something they are not able to see.

Educate yourself on various shipping methods. Become familiar with shipping companies such as Federal Express and UPS.

As far as payment is concerned, Kemerer encourages buyers and sellers to use secure auction payment sites, like eBay’s PayPal. This site keeps all personal financial information secure from both parties. Also, Paypal protects sellers against certain types of fraudulent transactions.
Some online auction sites such as eBay give buyers and sellers ratings and the opportunity to leave feedback. Take advantage of this feature so you can discover if a buyer has a dishonest bidding history. Read comments from other sellers and be wary if a buyer has ever bid on an item and not paid for it or engaged in other unscrupulous activities.
It is also important for you to maintain a credible online reputation as a seller. Therefore, be certain to write accurate descriptions and ship items in a timely manner so buyers will leave you positive feedback.
“My online reputation was very important to me because people are ordering from you ‘sight unseen.’ They do not have any way of knowing how reputable you are unless you have some way of assuring them that others are satisfied with the service they received from you,” Kemerer explained. Although online auction sites serve as a great way to sell unwanted items and earn extra cash, they also can tempt you to spend money and make unnecessary purchases. Resist the urge to type in keywords for your favorite products. A few mouse clicks might cause you to spend more money than you received from the sale of your items.

The Road to Financial Freedom (RTFF) is published by The Premier Institute for Financial Freedom. While articles in the RTFF newsletter are factual and accurate, they are not intended to replace the advice of professional financial, accounting, and/or legal advisers. As with all decisions regarding your finances, the advice, techniques, ideas and suggestions offered herein should be followed under the supervision of the appropriate competent professional.