Credit Card News
Want to avoid inadvertently paying an overdraft fee for that $3 quick cup of java that you just used your debit card for? Check out the ‘customer service’ pamphlet from your bank or credit union to make sure that they aren’t providing you with ‘automatic overdraft protection services’. If you were $1 short of the $3 then, you are probably $30 - $35 shorter now – and more fees to accumulate daily – until you get that automated notice in the mail – days later – that says OOOPS. Many banks have added this ‘option’, which pays the vendor and then charges you with an overdraft fee, without customer knowledge. Legislation is in progress that will require the banks to get your consent before giving you protections that you do not necessarily want for yourself or for your teen. In 2008, financial institutions earned $7.8 billion in overdraft fees from ATM and debit cards alone. H.R. 1456 – authored by Rep. Carolyn Maloney (D-NY) is winding through Congress to help protect consumers from receiving these short term loans without expressly ‘opting in’. The open comment period ended Monday, March 30. More than 1,600 comments were posted to the Federal Reserves website. This bill has now been referred to the House Financial Committee.
Mortgage Debt
On April 2nd Freddy Mac stated that rates are at the all time low of 4.78%. Lenders have tightened their standards dramatically so only individuals with solid credit can qualify. Investors are scooping up foreclosed homes by the bucketful. All you need to do is open the paper to see the ‘carrots’ dangled by developers. One of the newest ones is the “layoff insurance” now being offered in several areas. The homebuyer is guaranteed that “if he gets laid off during the first 2 years after purchasing the home” – six months of mortgage payments will be made. A spokesperson from the Consumer Federation of America has said homebuyers may be better off to pass on the insurance and ask for a discount on the home price. So beware of the carrots. Even with President Obama’s Stimulus Package there have been 619,117 foreclosures recorded since January 1.
Consumer and Business Bankruptcies
President Obama announced on Monday that Chrysler and GM did not do enough cost cutting to show that another bailout package would help them get on the right track. He gave them both extensions to see if they could put together a program that would show that more tax payer funds would not be throwing good money after bad. He gave GM 60 days to come up with an acceptable plan. Chrysler was given 30 days to close the merger with Fiat or another partner. Many analysts were surprised that President Obama took such a hard line with the troubled auto giants. His announcement also included a guarantee that the government would back all warranties for the two companies were they to fall into bankruptcy. One comment after the President’s speech alluded to the need for customers to purchase the autos once they are made.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
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