The new credit card tricks.

the-new-credit-card-tricks: Personal Finance News from Yahoo! Finance

It's been less than two weeks since new banking legislation went into effect and the banks are making their counter move.  See the link above.

Let me put it another way...what if you went into McDonalds and ordered a burger. While you were getting your money the cashier reached over the counter and grabbed an extra $5 from your wallet. What would your reaction be? I would hate to think of it. Then when you demanded to know why they took the $5 the cashier told you it was because you were too slow at taking the money out of your wallet. Then the cashier turns around and gives your $5 to his manager who slips it into his pocket.

Or, what if the reader board at the drive thru said that the Big Mac cost $1.99. When you got to the window they told you your total was $5.99. You ask why. The cashier tells you that the $1.99 price is only for those who get to the window in 45 seconds and you took 60 seconds. And, an additional surcharge was added because you had not been to McDonalds in over a month and had supersized your fry the last time you were there. They further tell you that you should have read the fine print on the reader board and that if you do not pay the entire $5.99 they will report you to the fast food hotline and that you will not be able to buy fast food anyplace in the country for 7 years.

What would you do? How many times would you continue to go back to McDonalds?

This is what customers have been experiencing with the major banks for the last few years. And, yet they are still in business. Why is that? It is because the American people continue to deposit their paychecks.

This is not the fault of your local teller who works hard and does their job just like everybody else. The policies that dictate this go straight to the very top and are now being battled at the congressional levels. Rumors of the battles are filtering down to the people who keep depositing their checks every week. What makes things worse is that some of the officials who are elected by the people are actually siding with the banks.

Don't stop looking over your shoulder yet. If you still have credit cards the banks are still trying to eke out every fee possible. They are definitely tenacious. Every time a law goes into effect to block exorbitant fees they find a way to go around it.

So, have you changed your bank yet? Have you closed your credit cards? Are you tired of paying for someones fancy lifestyle while you continue to cut corners?

It's your money. It's your choice.

Summary of new banking legislation

Free From Broke financial blog has done a nice job in summarizing some of the changes that will happen as a result of the new banking legislation.  Everyone has lots of questions about this huge document and what it all means.  The summary will help outline some of the key provisions.

http://freefrombroke.com/2010/07/doddfrank-wall-street-reform-consumer-protection-act-signed-law.html

Obama signs sweeping financial overhaul into law - Yahoo! News

Obama signs sweeping financial overhaul into law - Yahoo! News

Yes!!!! Finally! Despite all the big money opposition the American people can say "something tells me I'm in for something good"

It's just a beginning and there is much work left to do after the havoc that the major financial institutions have caused. The results are still snowballing for the millions of homes and jobs lost but we will recover and be stronger and better for it.

Priceless.....

How much does it cost to buy an American politician?

BREAKING NEWS!BREAKING NEWS!  BREAKING NEWS!

REF: http://www.foxbusiness.com/story/markets/industries/finance/goldman-political-donations/


Tuesday, July 06, 2010
Goldman Done With Political Donations, for Now
By Charlie Gasparino and Sital Patel
FOXBusiness

I'm not sure of the exact copyright requirements so rather than me reprinting the article please go to the link above. 

The message from the heads of the banks is clear....vote how we want or all the campaign contributions are gone...or, did it say kickbacks?

The article is EXPLOSIVE and POWERFUL.  Please take a look and pass it on. 

whats-behind-those-urgent-notices-from-your-bank: Personal Finance News from Yahoo! Finance

whats-behind-those-urgent-notices-from-your-bank: Personal Finance News from Yahoo! Finance

If you are the type, like me, who throws away all extra "junk mail" from your financial services it would be easy to miss these very important banking changes. The banks are counting of a certain percentage of the population to do just that! As the article mentions, banks make BILLIONS in overdraft fees so it is in their best interest for you to continue to have the overdraft protection line so they can whop you with an overdraft fee if you go over your balance by a dollar. This legislation is especially important to those who use debit cards for all daily little expenses.

The article also provides a number of possible alternatives of how you can set up your accounts to optimize your use of funds and protect you from large expenses for silly mistakes. I want to add an additional idea: keep separate accounts for your primary bills from your daily use account. I don't know about you but I don't want my mortgage payment or light bill to bounce, period. I want overdraft protection for these payments. Possible fees, especially on credit card payments, are more than the OD fee and your record could be tarnished if your payment is posted late. It may takes days before you are aware of the problem.

If you keep your spending money in a separate account and funds run low because you forgot to write something down your transaction will be rejected and you therefore be "notified" of the error without a big fee attached. Keeping a reserve $20 in your wallet allows you to buy that morning coffee that most of us can't do without. This will provide you the time to go figure out what mistake may have been made, or if your spouse used the card and forgot to tell you. If you think that would create embarrassment then weigh the chagrin against the hundreds of dollars that might have already been spent on OD fees that make you sick when the bill is opened.

Bottom line is that many people are keeping lower balances than they would like as they are trying to stretch every dollar. The ideal situation would be to keep high balances wouldn't it? In the meantime, we all make mistakes. Review the options and choose what will work best for your situation. Pass the word along to those you know have complained about the fees in the past.

The Creature from Jekyll Island by G Edward Griffin

You are probably aware that I only update this site as I find articles and information that I feel is pertinent.

A couple things I'm watching now and hope you are too. The new banking legislation that congress is working on, and,

a book called The Creature from Jekyll Island by G Edward Griffin, A Second Look at the Federal Reserve.  I have had it on request at the library for months and finally got a copy. It is recommended by Ron Paul (Congress, House Banking Committee)and Robert Kiyosaki, (Rich Dad Poor Dad).  And, Willy Nelson, imagine that.

The book is huge!  I just started reading and it is fascinating with lots of history and photos.  It came highly recommended to me.  Despite the size it reads faster than one would expect.  But here's the thing.  When I went to renew it someone else was in line so back to the library it goes and I will get in line again.  Instead of trying to do my own review I have decided to post the link to the Amazon reviews.  Sorry for the short cut but I want to make sure this book is getting out there and people are aware of it.  I did notice that Amazon also carries an abridged version on CD.  This might be the way to go if time is an issue.  Five Star.
http://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/product-reviews/0912986395/ref=sr_1_1_cm_cr_acr_pop_hist_all?ie=UTF8&showViewpoints=1&qid=1277963135&sr=8-1

Boise woman becomes a mortgage crusader on Facebook | Local News | Idaho Statesman

Boise woman becomes a mortgage crusader on Facebook Local News Idaho Statesman

There's good and bad news about the experience people have with loan modifications. If you are considering one you may find this article and facebook link helpful.

I know that my experience with Chase last year was overwhelmingly terrible and I never was able to get my problem solved. The hours of being re-routed and being on hold was miserable.

But, the loan modification program can have great benefits to homeowners who are struggling to find a way to keep going and well may be worth the effort in the long run.

Should we expect better service than this? Of course.