Money Smart Week April 18-25, 2015

Money Smart Week is here and underway! Money Smart Week was created in 2002 by the Federal Reserve Bank of Chicago. It is a public awareness campaign full of events that teach people how to handle their personal finances in a way that benefits them most. There are Money Smart Week events happening in counties all over Washington State. Here are just a few of the educational events that will be put on during the rest of the week:

• April 21st:
• "Kids & Cash" is a program that gives tips and advice to parents on how to talk to their kids about money and forming responsible money habits
• April 22nd:
• "Navigating Your Credit World" will teach you how to build, repair, and access your credit score                                                                                                     
• "We’re Talking Money!" is an opportunity to get one-on-one assistance with your librarian and explore all the financial resources your library has to offer 
• April 23rd:
• The "Online Banking" class will teach people how to safely and securely pay their bills online 
• "Establishing, Improving and Maintaining Credit" shows people how credit companies calculate credit scores and how consumers can use this knowledge to improve their credit score
• April 24th:
• "Be Money Smart!" is happening in libraries all over the state. This is a display with take-home financial information for consumers, small business owners, and entrepreneurs with information on loans, financial management, investing and job training
• April 25th: 
• "Cyber Theft-How to Protect Yourself" will be giving tips on how to keep yourself safe from identity theft and internet scams
• "Shred Day" is a great opportunity to get all your personal and financial documents shredded on the spot and keep yourself safe from identity theft
• "The Financial Family Fun Fest" is an event for the whole family with crafts for kids and free financial one-on-one signups for the adults.

These are only a few of the great events offered during the rest of Money Smart Week. To see the entire list of events, visit https://chicagofed.org/applications/msw_calendar/public.htm?campaign=14.

What To Do If Your Credit Card Has Been Stolen or Hacked

With the recent news of the Target security breach, you may be wondering what steps you should take if your credit card information has been stolen.  Here’s a step by step guide on what to do.

1. Contact your credit card issuer immediately
   Find the contact information for your credit card issuer, whether it’s a bank, credit union or other financial institution, and call them to inform them you’re credit card information has been stolen. Your financial institution has procedures in place on how to handle incidents like this, and they’ll be able to assist you.
    
2. Ask that your card number and PIN be replaced
   Chances are your financial institution will do this anyways, but if they don’t, request that a new card and PIN number be issued.
    
3. Monitor your accounts
   Monitor your financial accounts for any fraudulent behavior. If you notice a charge that should not be there, dispute it right away with your financial institution.
    
4. Monitor your credit reports
   It’s also a good idea to monitor your credit reports to make sure no one is opening new lines of credit in your name. You can request a free copy of your credit report at www.annualcreditreport.com
    
5. Consider credit freezes and fraud alerts
   Depending on the severity of the fraud, you may want to request a credit freeze or fraud alert from the three major credit bureaus. The Washington State Office of the Attorney General has more information about these options at http://www.atg.wa.gov/freeze.aspx

Additional Resources

• Recovering From Identity Theft or Fraud
  Information from the Washington State Office of the Attorney General.
• Credit Card Loss Protection
  Information from the Federal Trade Commission on protection services offered by credit card companies and your $50 liability.
• Target Security Breach Information
  Information for Target customers regarding the breach.

 

 

Fixing Errors on Credit Reports

The Federal Trade Commission (FTC) recently released the results of a 10-year study on the accuracy of credit reports. The study found that one in five consumers’ reports have errors.

The findings highlight the importance of checking your credit report.

Obtaining Your Free Credit Report

According to the FTC, the Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.

To order your free credit report, visit annualcreditreport.com or call 1-877-322-8228.

Finding Debt Help

One of the questions we frequently get asked at the Washington Department of Financial Institutions (DFI) is where can I go to get help with my debt?

Credit counseling agencies work with you to solve your financial problems. These organizations offer services through local offices, the internet, or via phone.

Credit counselors will discuss your financial situation with you, and help you develop a personalized plan to solve your money problems. Credit counselors typically negotiate lower payments with your creditors, and then make payments using money you send them each month.

Debt Collectors Harassing You? What You Can Do About It

The Washington State Department of Financial Institutions (DFI) continues to receive complaints from consumers regarding debt collectors intimidating, harassing, or even threatening them in connection with the collection of debt.

Washington State law prohibits intimidating, threatening, or harassing conduct in connection with the collection of a debt.

The Washington State Department of Licensing can take disciplinary action against a collection agency’s license if they violate the Washington State Collection Agency Act.

If you feel your rights have been violated, call the Washington State Department of Licensing at (360) 664-1421. You can also file a complaint with the Department of Licensing at http://www.dol.wa.gov/.

Do You Know Your Vantage Credit Score?

Today, I presented on credit scores and how they can impact our financial life. To my surprise, many of my class attendees had not heard of the Vantage Score.

The Vantage credit score was developed in 2006 by 3 major credit bureaus: Experian, Equifax, and TransUnion. It is differen't from your FICO score.

Your Vantage Score is based on the traditional A,B,C,D, and F rating scale. Vantage scores are scored numerically from 501-990.

Credit Card Shopping Tips from the Consumer Bureau

The Consumer Financial Protection Bureau today wrote a informative blog about with tips on shopping for a credit card.

Did you know that your interest rates can rise if you’re 60 days late paying your bill?

Check out the tips and blog at http://www.consumerfinance.gov/how-do-i-shop-for-a-credit-card/

Increase Your Credit Savvy With These 5 Resources

There are many great resources out there to help you learn more about credit and credit scores. Below are five that we pulled from our bookmarks that we think you should know about.

1. FICO – FICO is the credit score that many major lenders use to judge your creditworthiness. Visit FICO’s website to learn how you are scored and tips for improving your credit score. http://www.myfico.com/CreditEducation/
2. AnnualCreditReport.com – You are entitled to one free credit report a year from each of the three major credit bureaus (Experian, TransUnion, and Equifax). Pull your free credit report and check for errors or inaccuracies. Report any errors right away directly to the credit bureau. Carefully examining your credit report is also a good way to determine if you're a victim of identity theft. Visit http://www.annualcreditreport.com/

Have a Credit Card Complaint? New Consumer Financial Protection Bureau Wants to Hear About It

The new federal Consumer Financial Protection Bureau (CFPB) opened for business last Thursday and immediately began accepting credit card complaints from customers.

Through the CFPB website, ConsumerFinance.gov, you can submit complaints or issues regarding your credit card company.

The CFPB will forward your issue to your credit card company, give you a tracking number, and keep you updated on the status of your complaint.

Free FICO Scores for Active Duty Military Members

The FINRA Investor Education Foundation announced today that it is giving active duty servicemembers and their spouses access to their FICO Scores and the educational information and tools in the FICO Standard service from FICO.com.

The FINRA Foundation is working with the Department of Defense's network of military financial educators and counselors to distribute the FICO® Standard service to the military community.

In addition to showing users their actual FICO Score, used by most banks and lenders, the FICO Standard service provides a FICO Score Simulator that analyzes the effect of specific behaviors, such as the impact of paying off a credit card, opening a new account, reaching credit card limits, obtaining a car loan or missing a payment.

Servicemembers and their spouses will have access to the FICO Standard service through the extensive network of military financial educators and counselors who work on every military installation in the United States and around the world.

For more information, see the announcement from FINRA.

What Does “Pre-Approval” Mean?

Your questions answered.

Question:
I just received a pre-approved credit card. What does a pre-approved credit card mean?

Answer:
Generally, "pre-approved" means that a preliminary review of your credit record by the card company indicates that you may meet the criteria it seeks in a borrower.

Shoot! I Lost My Credit Card. What Do I Do?

Begin scene:

After waiting in line for almost 20 minutes, you finally reach the register to buy a holiday gift for a family member.

You hand over your credit card in a hurry, sign in a hurry, and rush out in a hurry with your gift. You are efficient.

You get home and realize you left your wallet on the counter at the store. Quick, what do you do?

1. Call Your Credit Card Company Right Away
   Many companies have toll-free numbers and 24-hour service to deal with lost credit cards. Credit card issuers often place instructions for lost or stolen cards on your monthly statement. Follow these instructions. You may also visit your credit card company’s Web site for further instruction.
   
2. Follow Up With A Written Letter
   It is a good idea to follow up with a letter to your credit card company.Include in your letter: your account number, when you noticed your card was missing, the date you first reported the loss.
   
   Be sure to send the letter to the address provided for billing errors. Do not send it with a payment, unless directed to do so.

Credit and Loan Phone Scams – Protect Yourself

This morning on KOMO’s Web site I saw a blog article about a Washington resident who was targeted by a potential loan phone scam. In this potential scam, the telemarketer was asking the resident to verify their social security number in connection with an unpaid online loan.

Telemarketing fraud is a common problem and nets many victims a year. It’s important to be able to recognize the warning signs of a possible scam and to take the necessary steps to protect yourself.

Steps You Can Take To Protect Yourself

• Register For The Do Not Call Registry
  By registering for the do not call registry, you essentially tell telemarketers to stop calling. Most legitimate telemarketers recognize the do not call registry and won’t call your number if it’s registered.
• Protect Your Personal InformationDo not give out personal information such as your social security number, credit card information, or mothers maiden name, until you have done proper research on the company, individual, or offer.

Featured Resource - The Internet Crime Complaint Center or IC3 for Short

October is National Cybersecurity Month, so I wanted to feature a really great resource, the Internet Crime Complaint Center, or the IC3 for short.The IC3 is a partnership between the Federal Bureau of Investigation (FBI), the National White Collar Crime Center (NW3C), and the Bureau of Justice Assistance (BJA).

The IC3 addresses and monitors crime committed on the Internet. The IC3 is a helpful resource for both consumers and law enforcement agencies.

Internet users who feel they are a victim of a cyber crime are encouraged to report their experience to the IC3 at http://www.ic3.gov/

Who Is Responsible For Paying The Debts Of A Deceased Relative?

When a family member dies, the last thing grieving relatives may expect are calls from debt collectors asking them to pay their loved one’s outstanding debts.

The fact is surviving family members often have no legal obligation to pay the debt of a deceased relative. Even a spouse’s obligation to pay may be limited under state probate law.

To help consumers understand who is responsible for a dead relative’s debts, the Federal Trade Commission (FTC), the nation’s consumer protection agency responsible for enforcing the Funeral Rule, just published a consumer alert Paying the Debts of a Deceased Relative: Who Is Responsible?

View & Print Alert
Paying the Debts of a Deceased Relative: Who Is Responsible?

Are You Checking Your Bank And Credit Statements? Errors Happen. How To Correct Them

When life gets a little hectic, it can be a pain to review your credit and bank statements line by line. I hate it almost as much as matching socks fresh out of the laundry.

However, it is important to check these statements regularly. By doing so, you can correct mistakes that may have been made and even detect if you have become a victim of identity theft.

What If There Is A Billing Error?

If you notice a billing mistake on a bill or statement, the first thing that probably pops into your head is to call the company to correct the problem. This is a good first step. But, to be protected under the Fair Credit Billing Act, you must send a separate written billing error notice, to the creditor.