Debt Card Definitions and Uses Changing
With shift this week of the largest private employer in the United States, Wal-Mart Stores Inc., from paper payroll checks to debit payroll cards the change in the definition of what a debit card is will be swift. The use of debit cards, which automatically withdraws money from private bank accounts, has outpaced the use of credit cards in the past decade. Using ‘plastic’ no longer automatically means a person is charging a purchase to a credit card. The first bank cards issued in the 1980’s were not called debit cards due to survey results that indicated consumers disliked the term debt. Today the term is used to cover many different types of cards. Many nationwide companies went to payroll cards after the disasters of 911 and Hurricane Katrina when transportation methods for delivering payroll checks failed. Government agencies have moved over to the use of debit style cards for distribution of food stamp allocation and other benefits. Tons of paper and ink are saved each year with the use of electronic banking. Individuals that previously took pride in being technologically challenged will need to learn the ways of electronic banking and security to access they’re paycheck.
Mortgage Foreclosures
This week the Internal Revenue Service Treasury inspector revealed in a letter plans to expand a program that makes greater use of the mortgage-interest payment data furnished to it by banks in an effort to find individuals who don’t file tax returns or report less income than they paid in mortgage interest. The letter stated the plan is slated to be in effect on a nationwide level by December 2011. The IRS Form 1098 will be one of the primary tools for establishing if income is coming in. The caution to individuals staving off foreclosure by using savings and retirement accounts is to document the source of all funds being used. The 2010 audits will undoubtedly include the current crisis years and to avoid tax, penalties and interest charges jobless homeowners will want to keep an accurate and complete paper trail of where funds are coming from to make house payments. The burden will be on the individual to prove they are not tax cheats.
Identity Theft Arrests Continue
On Tuesday, September 1, 2009 another member of the identity theft ring that stole more than $2.1 million from more than 500 people and at least 10 financial institutions made her first court appearance in Miami. U.S. Magistrate Judge William Turnoff ordered Shonya Michelle Young, 38, of Myrtle Beach, South Carolina to be held until Thursday when it would be decided when she would be transferred into federal custody in Virginia. Ms. Young was arrested Monday with a fraudulent New Your driver’s license and a Visa debit card with the name Deborah L. Taverna in an apartment complex near Miami International Airport. Ms. Young has been a fugitive for two months, since suspected ringleader, Clyde Austin Gray Jr. pleaded guilty on July 22.
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