Congress Leads in Decreasing Lead Paint

Thu, 05 Jun 2008 23:57:49 GMT

In 2007 the Consumer Product Safety Commission (CPSC) issued more recalls for products with illegal levels of lead paint than it had for the three previous years combined. During the height of the Christmas shopping season Congress took a substantial step to decrease the amount of lead allowed in children’s products and to increase the CPSC’s budget to further enforce these laws. Though the Consumer Product Reform Act of 2007 has not yet become law the bill has strong bipartisan support and is likely to become law soon.

The budget increase for the CPSC seems to be needed. In 2007 there were over 70 product recalls because of lead paint; a search of the CPSC website shows there were 20 in 2006, 13 in 2005 and only 6 in 2004. There has already been one lead paint recall this year.

Current law allows for lead levels of 600 parts per million. The new law will set a goal for lead content in children’s toys of 100 parts per million within four years after the law’s passage. This new standard is only for children’s products, which are products designed for use by children 12 years of age and younger.

The National Institutes of Health National Toxicology Program has released a report citing dangers similar to lead paint. Plastic bottles made out of polycarbonate plastic contain the chemical bisphenol A. The report found that bisphenol A leaches out of the container and is absorbed by the food in the container. Bisphenol A was discovered in 1891, and it has been known to mimic the chemical effects of estrogen since the 1930s.

The report found that high levels of exposure may disrupt hormones and genes, and lead to a higher level of cancer for children exposed to it. Like the lead paint issue, the chemical is most harmful to children and is most often found in children’s products. The government said that bisphenol A is found in hard plastic beverage containers such as baby bottles, as well as from liners in cans containing food and infant formula.

Though the Consumer Product Safety Commission has had its authority and budget expanded that will not solve the plastic bottle problem. Because food is packaged in these bottles they do not fall under the CPSC but under another agency, the Food and Drug Administration (FDA). The technical term for these bottles is a “food contact substance”, which are regulated by the FDA’s Office of Food Additive Safety. Like our toys, most of these bottles are manufactured overseas.

Most toys sold in the US are imported and 80% of those come from China. Congress may now have to act to reduce the level of Bisphenol A in products as well. Thus, the new laws designed to make products safer in the US may be aimed not at domestic producers, but foreign manufacturers.

Critics of US trade policies have previously cited lax foreign laws as the reason for the decline in product safety. This rise of the “fair trade” and not “free trade” argument may empower Congress to pass more laws to force foreign countries to raise their own labor and environmental standards that cannot be accomplished in trade negotiations.

For more about decreasing lead paint, contact a consumer protection attorney today.

How do I fix errors on my credit report?

Wed, 01 Apr 2009 02:04:23 GMT

Your credit report contains important information about your life, such as where you live, what debts you owe, whether you’ve been sued, and whether you’ve filed for bankruptcy. Credit reporting agencies sell information about you to insurance companies, mortgage companies, employers, and banks so that they can evaluate your applications for loans, credit, insurance coverage, renting a home, and/or employment. The information in your credit report will help these companies decide whether to loan you money, the interest rate at which you can obtain credit, and, in some cases, whether you can rent a home or get a job. Therefore, it is essential that your credit report contain only accurate information, a right that is protected by the Fair Credit Reporting Act (“FCRA”).

The first step to ensuring that your credit report contains only accurate information involves periodically reviewing your credit reports for errors. You are entitled to get one free credit report per year from the three major credit reporting agencies – TransUnion, Experian, and Equifax – through a service called the “Annual Credit Report Request Service,” which will allow you to find any mistakes on your reports. You also are entitled to a free copy of your credit report if it was used to deny your loan or credit application, if you’re unemployed, or if you are receiving welfare benefits. Not only can reviewing your credit report information for errors potentially improve your ability to obtain credit, but you can also help guard against identity theft by catching any unauthorized accounts or charges that show up on your credit reports.

If you discover an error on your credit report, you first must notify the credit reporting agency to investigate your complaint. You must do this by submitting your complaint in writing, explaining what is wrong on your credit report, and providing any evidence in support of your position. Be sure to keep a copy of everything that you send to the credit reporting agency, and request that the credit reporting agency delete or correct the error on your credit report.

When it receives a complaint, a credit reporting agency must normally investigate your complaint within 30 days, unless it is a frivolous complaint. The credit reporting agency must notify the company that provided it with the information about you of your complaint, and that company must review the information and verify whether it is correct. If there is a genuine error, the credit reporting agency must correct the error, not only on its credit report, but also on the reports of the other two major credit reporting agencies. You are then entitled to receive the results of the investigation in writing, as well as a corrected copy of your credit report. Even if the investigation does not result in a finding of error or a change to your credit report, you can still ask the credit reporting agency to keep your complaint information on file and provide it to anyone who asks for a copy of your credit report, although this service may cost you a fee.

Your next step would be to dispute the incorrectly reported information with the creditor or company that reported the information to the credit reporting agency. You should provide that company with any documentation that you have to support your position. If the company finds that it has made an error, then it can no longer report this incorrect information about you to credit reporting agencies.

How to Make Sure Your Money Goes to a Legitimate Charity

Mon, 20 Oct 2008 20:10:55 GMT

Many Americans enjoy donating to charity each year and many other Americans benefit from their generous donations. However, each year we also hear about dishonest people who have started an organization that is made to look like a legitimate charity but is instead a means for personal gain that doesn’t benefit any charitable group. Therefore, it is important to investigate any charity to which you are thinking about making a donation.

Ask Questions

If you get an unsolicited phone call asking for a charitable donation then the first thing that you should do is to start asking questions. Request that the caller send you written information. A legitimate charity will be able to send you information about its mission and its work. The caller should also be able to answer questions about how the charity’s money is spent.

Be aware that many illegitimate charities have names that are very similar to legitimate and respected charities. This is designed to confuse you and to encourage you to send money without asking a lot of questions.

It is especially important to exhibit caution if the charitable request comes via e-mail or comes right after a major disaster. While some legitimate charities certainly solicit money after a disaster and do so via e-mail, remember that a legitimate charity will gladly accept money from you in the weeks to come and should not be putting immediate pressure on you to contribute right away.

Research the Charity

    State Attorneys General have charitable divisions that maintain information about both legitimate charities and fraudulent entities that have posed as charities in the past.

    The Better Business Bureau (BBB) has similar information to the state Attorneys General offices and can answer questions over the phone or via their website. The Philanthropic Advisory Service Reports is maintained by the BBB’s Wise Giving Alliance and has information on charities including a description of their programs, finances and fundraising methods.

    The American Institutes of Philantrhopy (AIP) rates more than 400 different charities in the United States. Its ratings take into account the amount of money that actually reaches the people or causes supported for the charity.

The Guide Star National Database of U.S. Charities has Basic information about more than 600,000 legitimate U.S. nonprofit organizations.

Tax Donations

In order for you to take the tax deduction for your donation on your federal tax return, the charity needs to be operating as a charity pursuant to section 501(c)(3) of the Internal Revenue Code. Also, it is a good idea to pay by check so that you have a record of the transaction for your file. Further, a check prevents cash from being diverted from the stated charitable purpose and your credit card number from being used for unauthorized purposes.

Reporting a Fake

It is important that people consistently report solicitors that are actually fraudulent charities. That way the groups can be forced to stop accepting money from well meaning Americans. Complaints regarding possible fraudulent charities should be filed with the state Attorney General’s office. Information can also be provided the BBB who will investigate the allegations and use the information to update its information for other concerned donators who are researching charitable causes.

For more information on legitimate charities, contact a consumer protection attorney today.

How to Prevent Automatic Withdrawal Scams

Wed, 06 May 2009 18:33:52 GMT

Every year many Americans become victims of automatic withdrawal scams. They may be offered a free item only to find that it was not in fact free, they may be charged recurring withdrawals which they did not expect or they may be otherwise taken advantage of and charged unexpected fees. While the situation is serious and troublesome, there are some steps that the government, the banks and the individual consumer can take to prevent these types of scams from succeeding.

The Government

The government has three critical roles to play in reducing the occurrence of automatic withdrawal scams. First, the government can educate people about the potential for automatic withdrawal scams in order to increase awareness and thereby decrease the occurrence of such scams. This can be accomplished through public service announcements, information on government websites and press releases. Second, the government may be able to prosecute companies that make unauthorized withdrawals since they are defrauding banks which are federally regulated. Third, the government can make sure that there are stringent laws in place which appropriately punish those who make unauthorized automatic withdrawals.

The Banks

When a consumer discovers that an unauthorized automatic withdrawal has been made, the consumer contacts his or her bank in order to report the unauthorized charge and to stop future withdrawals from occurring. The bank then investigates the allegation and should look at all information supporting the authorization for withdrawal. This puts banks in a unique position of knowing when a business is repeatedly making unauthorized withdrawals from customer accounts. Banks can then refuse to let companies that repeatedly make unauthorized withdrawals from automatically withdrawing money from customer accounts.

Banks can also set policies that allow bank employees to thoroughly screen any businesses that would like to make automatic withdrawals from customer accounts. If they feel that a business is seeking to commit fraud or be dishonest with its customers then it could refuse to allow them to conduct automatic withdrawals and instead require them to present a signed check or point of sale receipt for each transaction.

The Individual Consumer

Consumers can also take proactive steps to avoid unauthorized withdrawals. Individuals should be careful to never give out their bank account information over the phone, especially if they do not regularly do business with the company. It is safer to provide credit card information over the phone if there really is a deal that is too good to pass up. Consumer should also carefully review their banks statement each month and immediately report any unauthorized activity to the bank. Since many unauthorized withdrawals occur when telemarketers convince people to provide bank account information over the phone, consumers should be wary of any high pressure sales talk or refusal to provide information in writing.

The government, the banks and individual consumers can reduce the prevalence of automatic withdrawal scams in the United States by making it harder for would be scammers to succeed and less lucrative for the ones who do succeed. However, in order for a meaningful reduction in the occurrence of automatic withdrawal scams to take place, the government, the banks and the individual consumers must work together to prevent scams from occurring.

My bank is threatening to repossess my car. Can my bank do that?

Wed, 31 Dec 2008 02:02:02 GMT

If you have failed to make your car loan payments as agreed, or, in some states, if you have failed to maintain car insurance, the bank or lender can repossess your car. Repossession means that the bank can take your car back without going to court, filing a lawsuit, or even giving you any advance warning. However, banks and other lenders do have to follow some important rules in repossessing your car, or they may have to pay certain penalties and/or damages to you.

Typically, the contract that you signed for your car loan will define what has to happen for you to “default”, or not keep up your end of the loan agreement. Most commonly, default happens when you don’t make your loan payment as you agreed. If you default, then the bank can repossess your car. Although the bank can send someone to come onto your property to repossess the car, he or she cannot “breach the peace”, the meaning of which varies from state to state. For instance, the person attempting to repossess your car cannot threaten you or physically assault you during the repossession. If he or she does “breach the peace”, then the bank might have to pay a fine or compensate you for any damages that were caused by the repossession. Likewise, you are entitled to get back any personal property that was in the car at the time it was repossessed.

Once your bank has repossessed your car, the bank can either keep the car or resell it publicly or privately. In some states, the bank may have to notify you about how the car is going to be sold; this information gives you the ability to “redeem”, or buy back your car at the sale or auction. If you cannot redeem your car, however, the bank has to sell your car in a “commercially reasonable” manner. This doesn’t necessarily mean that the bank has to sell it for the amount of your loan, or even the amount that the car is worth, but it has to be a reasonable sale.

Plus, if the bank can’t sell your car for the amount that you still owe on your car loan, then you may owe the bank the “deficiency”, or the difference between the amount that the car sold for and the amount that you owe on the car loan, plus interest and fees. If there is a deficiency, then the bank can sue you to collect that money from you. On the other hand, if the bank sells the car for an amount that is greater than what you owe on the car loan, then the bank has to give you the surplus amount.

The bottom line is that if you want to avoid having your car repossessed, you should make every effort to communicate with your bank or lender if you are having difficulty making your payments. In some situations, you may be able to work out a different payment plan or loan with the bank, which will avoid repossession. Furthermore, if you simply cannot afford the car loan payments at all, then you might be able to work out a voluntary repossession of the car, which can reduce costs for both you and the bank.

My local car dealership just closed. What can I do about my cars warranty? What if the automaker shuts down altogether? What are my rights?

Tue, 26 May 2009 03:11:32 GMT

With a record number of car dealership closings in the last year, you may be wondering what you will do if your local car dealership closes, or what if the auto company that manufactured your car fails. How will you have warranty work done on your vehicle?

The short answer is that it may be impossible for you to get warranty service, or any manufacturer-based service, done locally. Automakers are quick to point out that you will still be able to have warranty work done on your vehicle at another certified dealership in your area, which will honor any warranties that you received at the time that you purchased the vehicle. In a larger urban area, another dealership is usually located relatively nearby. But in rural areas of the country, you may be faced with long travel distances to the affiliated dealership that is closest to your location, which can result in a major inconvenience for you and your family. As other automakers’ dealerships won’t honor your warranty, you may have no choice but to travel the distance to the nearest dealership that is affiliated with your vehicle’s manufacturer, forego the warranty work altogether, and/or pay for any service to your vehicle yourself.

Furthermore, while most dealerships of any automaker can handle routine maintenance and repairs such as oil changes, tire rotations, etc., more complex repairs with your vehicle may be more problematic. If it is necessary to run an electronic diagnostic test on your Chrysler Jeep, for instance, a Honda dealership probably won’t be able to do that for you. On other hand, there are some independent mechanics and repair shops that may have the capability to perform repairs that are more specific to the brand of your vehicle, so long as you are willing to pay for it.

You should also be cautious about continuing to have warranty work done on your vehicle at a local dealership that is soon to close. For instance, Chrysler has announced that it will not honor any warranty work done after a certain date – June 9, 2009 - at a local dealership that is scheduled to close.

Given the continuing recession and its effects on domestic automakers, you might be wondering whether you should sell your domestic vehicle and opt for a foreign-made vehicle. However, it is clear that even if the automaker that manufactured your car goes out of business, you will still have some rights under your car’s warranty. Due to recent announcements about the financial decline and bankruptcy proceedings for major automakers such as Chrysler, the United States government has pledged that it will guarantee any warranties on new vehicles purchased during any restructuring periods, even if the automaker eventually goes out of business. The value of your vehicle may drop quite drastically if the anticipated financial collapse does occur, but you should still be able to have warranty work done on vehicles from major automakers like GM and Chrysler.

Protect Your Personal Finances While You Shop Online

Wed, 06 May 2009 18:37:59 GMT

The Electronic Funds Transfer Act and the Federal Credit Billing Act were enacted in the 1970s and 1980s to provide individual consumer rights to consumers who paid with electronic funds or credit cards. While the laws were enacted well before the advent of online shopping, they have important implications for individual consumer purchases made on the internet. Many consumers pay for their internet purchases with credit cards and those consumers are protected by the Fair Credit Billing Act. Consumers who chose to pay for their transactions with their debit cards or ATM cards are protected by the Electronic Funds Transfer Act.

If You Pay By Credit Card

Many people are concerned about having their credit card number stolen or misused if they use their credit card to pay for online purchases. While a stolen credit card can be a big headache, it is important for online customers to know that the Federal Credit Billing Act includes protection for the online consumer. If a credit card number is stolen then the credit card holder has no liability for the unauthorized purchases made on that card (if the card itself is stolen then the customer is responsible for the first $50 of unauthorized purchases). The law also protects the credit card user against billing errors. However, it is important for the consumer to remember that he or she has an obligation to notify the credit card company as soon as possible and no later than 60 days after receipt of the first bill containing the error or unauthorized charges. The report should be made in writing to the address provided by the credit card company.

IF You Pay By Debit (ATM) Card

Consumers who use debit cards that are connected to their bank accounts face different liabilities for unauthorized use than do consumers who use credit cards. The Electronic Funds Transfer Act provides that a customer must report unauthorized use within 2 days of learning of it if the liability for the unauthorized charges is to be limited to $50. If, instead, the consumer waits and reports the problem within 60 days then the potential liability is usually $500 and if the consumer waits more than 60 days then the potential liability may be unlimited.

Minimize Your Risk

There are some ways to minimize your risk while you shop from the comfort of your home or office. You can shop on secure websites and patronize online businesses with good business reputations. You might want to research a company with the Better Business Bureau before you provide your personal financial information. Some consumers prefer to do business with a company whom they have had a good relationship with in the past in a traditional brick and mortar store. Furthermore, you should carefully review the website’s return policies before placing your order and always print out a copy of your order form for your records.

Every year millions of Americans shop online without any problems. However, the best way to protect your own transactions is to minimize your risk up by following the recommendations described above, by keeping a careful eye on your monthly statement for any errors and knowing your rights as a an online consumer.

Protecting Paperless Money: The Electronic Funds Transfer Act

Wed, 06 May 2009 18:37:15 GMT

With each passing year, technology becomes more integrated into fundamental parts of our lives. Our bank accounts and financial transactions are no exception. Today, more and more transactions are conducted electronically without the passing of a check or paper money. Some examples of electronic fund transfers include: transactions conducted at an ATM, transactions conducted with an ATM or debit card, regularly scheduled preauthorized transfers including automatic payroll deposits and automatic payments and one time authorized transfers. Consumers who make these types of transactions are protected by the Electronic Fund Transfer Act.

The Electronic Fund Transfer Act Protections

The Electronic Funds Transfer Act provides certain protects to consumers who make electronic transactions. Significantly, the Act allows consumers to:

· Get a receipt for all transactions: The receipt must show the amount of the transaction, the date and the name of the other party to the transaction. All of this information must also show up on your regular bank statement.

· Correct mistakes: You have the right to correct mistakes that were made with regard to your account. In order to correct mistakes you must notify the financial institution within 60 days of the time that the first statement showing the error was sent to you. It is important to make your claim in writing and to provide all of the relevant detail. The financial institution then has approximately 45-90 days to resolve the error, depending on the particular circumstances. If an error is found then it must be corrected and if no error is found then the financial institution must provide you with a detailed written explanation of how it came to that conclusion.

· Protect themselves from theft: However, the protection that accompanies this right is dependent on how quickly you notify the financial institution of the suspected theft. If you notify the financial institution within 2 business days of learning of the theft then your liability is limited to $50. If you do not report the transaction within 2 business days but do so within 60 days then you could lose up to $500 for unauthorized transactions. If you do not report the transaction within 60 days of receiving a statement that shows an unauthorized transaction then you may be responsible for all amounts associated with the theft of your debit card or bank account information.

· Refuse to pay a creditor with electronic funds: The law is explicit that a consumer cannot be required to pay a loan or other credit obligation with electronic funds. However, it is important to note that employers and government agencies can require employees and citizens to receiving payroll and other financial benefits through electronic funds. The person receiving the funds has the right to determine which account and in which financial institution the deposit is made.

Electronic fund transfers are part of the way America does business in the 21^st century. While it may be impractical to avoid ATMs, debit cards and other electronic transfers it is important to understand how to protect yourself and your money at all times.

Protecting Your Personal Accounts From Unauthorized Charges

Wed, 06 May 2009 18:35:55 GMT

Life is busy and going through the mail takes time. However, when the mail includes your monthly bank or credit card statement then your time is well spent to review the statement carefully. Both your monthly checking account statement and your credit card statements will include automatic debits or automatic charges to your account. For one or more reasons, your account may include unauthorized automatic debits or charges and if you do not catch them and properly dispute them then you will pay the financial cost.

Why Unauthorized Debits or Charges Occur

There are several reasons why you may be a victim of unauthorized debits to your checking account or charges to your credit card. Those reasons include:

You have recurring payments set up and something goes wrong: Many people make arrangements to pay their regularly recurring bills through an automatic payment. For example, people may have their monthly mortgage, insurance payments, telephone or television payments automatically deducted from their checking accounts or billed to a credit card. These payments are valid and intended to make bill paying easier since they eliminate the need for writing checks and addressing envelopes. However, sometimes mistakes happen and the creditor or business billing your account makes a mistake by charging you the wrong amount, by billing you more than once or by billing you for services which you did not authorize.
Telemarketing scams: many people may be lured into providing their checking account information to telemarketers who promise to provide them with a “free gift.” A telemarketer may claim that he needs a checking account number or credit card to verify gift and then use that information to charge a fee for the so called “free gift”.
Fraud: Unauthorized debits or credit charges can occur if your account information is stolen. The information may be used to set up automatic withdrawals from your checking account since the person making the purchases would not have to show identification or even present a physical check.

Also, remember the free trial of that magazine or satellite radio station that you signed up for? Many different companies offer free trial periods. However, if you do not cancel within the required time then the company may continue to take automatic payments from you. While their actions are not technically unauthorized, they may come as a surprise to you. So, be sure to check the fine print to find out when and how to cancel so that you do not keep paying month after month for the free trial.

What to Do if Your Account Has an Unauthorized Charge

It is important to review your monthly statements each month to determine if there has been any unauthorized use. If you find that there has been unauthorized use then you should immediately follow the instructions on the bill for filing a dispute. By filing a complaint immediately, your financial liability may be limited by law and you may stand the best chance of stopping the charges from recurring. You should also file a complaint with the Federal Trade Commission (FTC). While the FTC may not be able to recover your money, it can keep track of patterns of unauthorized charges being made by particular companies and prevent the company from taking advantage of other consumers.

The Federal Reserve Boards New Credit Card Protections for the Consumer

Wed, 06 May 2009 18:29:57 GMT

Are the days of unfair credit card practices over? While the credit card companies may mourn their passing, American consumers are seeking fair credit card practices that they can understand. In an effort to protect American consumers, the Federal Reserve Board enacted new rules in December 2008 that are set to go into effect on July 1, 2010. The new rules are part of a coordinated effort with the Office of Thrift Supervision and the National Credit Union Administration. The Federal Reserve’s rules were passed after consumer testing and reviewing more than 60,000 comments.

The New Rules

According to the Federal Reserve’s press release, the new rules are designed to accomplish several major objectives including:

Limiting When Credit Card Companies Can Charge Late Fees: The new rules require credit card companies to provide consumers with a reasonable amount of time to pay their bill before they impose late fees. Late fees may be imposed if the bill is sent at least 21 days prior to its due date and the payment is not received by the due date.
Directing How Payments Will Be Applied: Credit card companies may legitimately charge different interest rates for different types of transactions. For example, the interest rate on cash advances may be significantly higher than the interest rate on point of sale purchases. However, the new rules require that payments made in excess of the minimum amount due be applied first to the amounts owed with the highest amounts of interest.
Limiting When Interest Rates Can Be Raised: All scheduled changes in interest rates that will apply in the first year should be disclosed to the consumer at the time the consumer signs up for the credit card. After the first year, interest rates may increase on new purchases as long as the consumer is provided with at least 45 days prior written notice in accordance with the rules. Interest rates can be raised if the minimum balance is not received within 30 days of the billing cycle due date. Finally, interest rates that are tied to a variable index may be raised in accordance with that index at any time.
Ending Two Cycle Billing: Currently, if a consumer pays a bill in full one month but carries a balance the following month, the credit card company can calculate interest using time from the previous cycle. This practice will be prohibited by the new rules.
Reducing High Fee / Low Credit Accounts: The new rules seek to provide some balance with regard to the fees charged for low credit limit accounts. The new rules provide that fees for the first year of the account may not exceed 50% of the available credit limit.
Making Applications Easier to Understand: Changes will be required for credit card applications and solicitations so that they are easier to understand for the consumer.

According to Federal Reserve Chairman Ben Bernanke, the rules adopted are “sweeping reforms” that are designed to allow consumers to access credit on fair and easily understandable terms. Time will tell if Chairman Bernanke’s assessment of the rules is correct and if consumers will in fact be provided with important and meaningful protections.

The Pros and Cons of Electronic Check Conversions

Wed, 06 May 2009 18:34:35 GMT

Today, many businesses are processing check payments as electronic check conversions. Typically, this allows businesses faster access to the funds in your checking account. Many consumers may be unaware that an ordinary paper check that is processed as an electronic check creates has different implications for them. This article will highlight some of the pros and cons of the electronic check conversion payment methods for the consumer.

Pros

If you have a dispute with a merchant and you paid via electronic check conversion then you have the right to have your financial institution investigate any transfers which you believe were unauthorized or incorrect. However, you only have 60 calendar days from the time the bank statement was sent to you to notify the bank of the problem. So, it is important for you to carefully review every statement that you receive.
Merchants typically cite several benefits to the electronic check conversion payment system. They claim that it reduces their bank fees, reduces the time that their employees spend on deposits and reduces fraud. While these benefits directly benefit the merchants, they may also benefit consumers by preventing price increases.
If you do not have a debit or credit card, many businesses will accept an electronic check conversion as a form of payment while they may not accept traditional checks. This may allow you to purchase things that you would not otherwise be able to do absent a credit or debit card and you can do so with the risk of credit card debt since the money is withdrawn directly from your bank account.

Cons

Some of the drawbacks of this payment method for the consumer include:

Funds are typically released from your bank account much faster than when you pay by ordinary check. Therefore, you must make sure that you have enough money in your account to immediately cover the payment.
You will not receive any copies of the cancelled checks from your bank, even if you provided a paper check for payment.

The Electronic Funds Transfer Act requires that you be provided prior notice if your payment may be processed as an electronic check conversion. The notice may be included with your paper bill for items that you pay through the mail or posted by the cash register in a retail shop. Notice, in the form of a detailed receipt must also be provided to you after the transaction. The receipt should include the merchant’s name, the date the transaction was processed and the amount of the transaction.

The Federal Trade Commission recommends that you carefully review your statement each month to make sure that all transactions were processed correctly and that you be vigilant in protecting your checking account number and other personal information since the information could be used to conduct an unauthorized electronic check conversion. If you believe that your rights have not been honored in an electronic check conversion transaction then you have the right to file a complaint with the Federal Trade Commission (FTC) by calling 1-877-FTC-HELP.

The Truth About the Truth in Lending Act

Thu, 06 Nov 2008 20:48:34 GMT

Since 1968, American consumers have been entitled to clear disclosure of credit terms and costs in lending agreements. It was in 1968 that Congress passed the Truth in Lending Act. The law applies to many types of personal credit including credit card debt and residential mortgages. It applies to personal consumers who are seeking or applying for credit but it does not apply to business or government borrowers.

The stated purpose of the act is to stabilize the economy and encourage competition amongst financial institutions by having consumers be informed about the terms and conditions of the credit for which they are applying and accepting. At the application stage, disclosure of terms and conditions will allow the consumer to compare credit offers from different financial institutions. At the acceptance stage, full disclosure of terms and conditions will allow the consumer to adequately predict how much the credit arrangement will cost him and whether it is a good financial move.

What Terms are Regulated by the Truth in Lending Act?

Two of the most important terms that are regulated by this Act include finance charges and the annual percentage rate. Both of these terms can be hard for the lay person to understand, can vary widely from lender to lender and, can greatly impact a consumer’s personal finances. The Act explains that the amounts of both the finance charges and the annual percentage rates need to be disclosed and may not vary significantly from the disclosed values. This is important to a consumer’s understanding of the credit terms and ultimate repayment amount.

The Three Day Waiting Period

In an effort to protect consumers from being pressured or coerced into credit arrangements that affect their home, the Truth in Lending Act provides consumers with a three day waiting period when they sign a home equity loan. That means that if consumer is taking a loan against his primary residence, he or she has three business days to rescind that agreement after agreeing to it in writing. The funds are not dispersed until the end of the three day waiting period. However, if there is an emergency for which the homeowner needs the fund sooner than three business days from the time of execution of the agreement, the three day period may be waived.

Violations of the Truth in Lending Act

There are both civil and criminal penalties that are possible for different violations of the Act. Creditors can be liable for violating the disclosure terms of the Act even if the consumer was not hurt by the violation unless the creditor fixes the error within 60 days of notification or proves that the error was made unintentionally.

If a creditor does not comply with the requirements of the Act then the consumer can file a lawsuit within one year of the alleged violation. The court may award the consumer actual damages, attorney’s fees, court costs, statutory damages and more.

Willful violations of the Act could result in criminal charges being brought and sentences of fines and prison time being imposed.

The credit market is an important part of the American economy. Therefore, it is important that consumers understand their individual terms of credit and that creditors are truthful in their disclosures.

Travel Insurance

Tue, 14 Oct 2008 22:13:30 GMT

Whether you are planning your first trip abroad or just a weekend jaunt to the mountains, you should ask yourself whether or not you need travel insurance.

Most average American travelers don't need travel insurance for relatively minor trips. For instance, if you are planning a week stay at Disney World or a romantic weekend in the Keys there may not be a need to spend the extra $25+ (depending on the provider), to “insure” your trip. Theses days the big push is to insure your trip “just in case”. It’s rare to not see the Protect Your Trip line item at the end of your list of travel fees. While it’s optional, a lot of travel sites are pushing the insurance as a necessity rather what it is, an option. It is supposed to cover your expenses in case you miss your flight or loose your luggage, but for a domestic trip it is not a necessity. Many credit cards may offer the same protection. You should investigate whether you are offered any such insurance through your credit card company before deciding whether or not to buy the extra insurance coverage.

There are some circumstances where travel insurance is recommended. If you are booking a group vacation, an international airline ticket or a Safari in South Africa, it is usually a good idea to spend the extra money on travel insurance. The insurance provided by tour companies typically includes some sort of medical insurance as well coverage for things like missed flights, lost luggage or attraction/excursion replacement tickets. Make sure to read the fine print, the buyer may still be liable for a small portion of whatever is being replaced.

Travel Insurance is also good idea for older travelers, those with a history of illness or a large group of small children. You never know when a medical issue will arise that may prevent you from being able to go through with your plans. Typically, travel insurance provided by tour companies and cruise ships will include a cancellation provision. This allows you to cancel your trip, depending on the company and type of trip, up to 60 days prior to departure with just a minimal transaction fee (usually the cost of the insurance).

Remember, travel insurance is just that: insurance. It is only going to help you if something happens that requires it to kick in. Remember that not all travel insurance is created equal. Consider all your options carefully before adding it to your next adventure.

For more information on travel insurance, contact a today.

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Sun, 29 Nov 2009 15:21:19 GMT

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