Giving to Charity Safely
Many people use the end of the calendar year as a time to give to charity—partially because of the holiday season, and partially because it's the last chance to make donations that can be claimed on their taxes.
While it's wonderful to give charitably, it's also important to be wise about your giving. Here are some tips to giving to charity in a way in which both recipient and donor will win:
Avoid giving cash. Legitimate charities will be happy to receive a check or credit card payment. It's easier for your record-keeping, and safer for your wallet. Checks should always be made to the charity, not to the person collecting the money.
Check out the charity to be sure it's legit. You can use websites like the Better Business Bureau to find out more about the charity. Oregonians should also use the Oregon Department of Justice Charities Database to find out about organizations that are headquartered in Oregon.
Don't give to the 20 worst charities. Oregon Attorney General John Kroger last week announced a list of Oregon's 20 Worst Charities. In the non-profit world, one indicator of an organization being run well is if it spends at least 65% of their donations going toward the mission of the organization. The charities on the 20 Worst list used less than 30% of their donations for the mission.
Donate after research and planning, not on impulse. While door-to-door solicitations may be worthy and have a good story, it's best to do your research and be sure that organizations are legitimate and solid before giving.
For more smart giving tips, you can check out the Oregon Department of Justice's new Tips for Charitable Giving.
Our voices were heard: B of A backing off debit card fees.
We reported in August that Wells Fargo was planning on implementing a monthly fee to Oregon customers using a debit card, and then Bank of America announced that it would be implementing a similar fee nationwide.
Consumer outrage was loud and strong, as customers bailed from Bank of America and other institutions that were planning on fees.
As of this week, all major banks have rescinded their plan and will not be charging the planned-on debit card fees.
This story is proof-positive that consumer voices do matter, and that institutions listen when the collective voices of their customers are loud.
"We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee," said David Darnell, co-chief operating officer. "Our customers' voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so."
Selling Your Structured Settlement Not Always the Best Answer
Perhaps you've seen the advertisements on television for structured settlements where a company is offering to turn a structured settlement into cash.
Structured settlements are a way in which an accident victim can be paid over time. Structured settlements in the right cases are great ideas. For accident victims who have challenges managing money, a structured settlement ensures that money will be available in the long run and will not be spent on whims or as a result of pressures from long-lost family members.
Sometimes, the structured settlement payments don't meet the accident victims' needs and there is financial pressure, especially in this economy, to sell.
The problem is that many of these companies only offer a fraction of what the structured settlement is really worth.
Before you or someone you love decides to sell their structured settlement, it is best to get sound advice--either from the original attorney or a trusted financial advisor. Other financial options should be explored before a decision to sell is made. If selling is the right option, then a reputable company should be sought.
The company should be willing to provide all the relevant information, including the "discount rate" (the way of translating tomorrow's payments in to today's dollars) and the fees and charges involved. Companies that are motivated to deal fairly with accident victims can provide a valuable service for those who are cash-strapped.
How to: Close a bank account properly to protect your credit and good name
When closing a bank account, it is important for your credit rating that you take appropriate steps to make sure you are properly protected.
Retired Oregon farmer Norman Chase discovered this the hard way, and told the Baltimore Sun that leaving $3.21 in an unused checking account led to hundreds of dollars of fees, and his account being sent to collection.
Experts suggest that, when closing accounts, you do the following:
1) After closing an account with the bank, follow up with a written letter declaring your action, and your understanding of that account's balance.
2) Ask the bank to report the action to the credit bureaus, and that the account was closed at your request (not the bank's).
3) Make a note of automatic deductions, and make the changes with the appropriate companies. Some people have utility bills, or other automatic withdrawals which come from their accounts. Avoid interruption and fees by switching those accounts before closing your bank account.
4) Remember to make sure that all checks associated with the account have cleared, or issue new checks.
5) Make a note of any automatic payments to your account, and change those with the appropriate companies. These include direct deposits from employers or contracts, IRS refunds and PayPal.com payments. Experts recommend you do this about a month before closing the account to be sure that you don't miss money coming to you.
Further Reading
To end a banking relationship, don't just walk away. The Baltimore Sun, 09/13/11.
Helpful tips before closing a bank account. eHow.com.
Wells Fargo customers in Oregon to see $3 debit card fees soon.
Wells Fargo has announced that it will test a monthly $3 fee for debit cards for customers in Oregon (and four other states) beginning October 14, 2011.
Customers will see the charge on their November statements. There are many exemptions to the new rule (e.g., military, college and teen checking accounts as well as many consumer and business accounts). This rule comes after new federal rules limiting the amount that banks can charge retailers for a debit card "swipe."
Read More:
The Oregonian: Wells Fargo rolls out monthly $3 fee on debit cards in Oregon & Washington
Consumer protection legislation passes!
Yesterday, Congress passed the Wall Street reform and Consumer Protection Act—this historical legislation will help to protect consumers from predatory
financial practices. After passing in the House and the Senate they worked to combine the two bills into one and now it is just waiting for President
Obama signature to become law.
“Nearly two years after the financial crisis brought the nation’s economy to its knees, this bill is a critical first step toward reversing the deregulatory excesses that culminated in the 2008 financial collapse. A strong new consumer regulator, transparency and accountability for Wall Street derivatives trading, and new limits on speculation by banks all target the abusive and risky practices that were root causes of the financial crisis.
“Nevertheless, there is more work to be done on the road to comprehensive financial reform. We must monitor implementation of the new law that leaves significant discretion in the hands of regulators. The fight will continue for stronger regulation, including stricter limits on bank size and leverage to ensure no bank will ever again be deemed ‘too-big-to-fail’. This bill sets the wheels in motion to replace the failed deregulatory policies of the 1990s with real oversight of Wall Street,” said Carmen Balber, Washington Director for Consumer Watchdog. (Read more).
Sham company works to swindle Oregonians by offering fake sweepstakes
Fraudulent companies have all sorts of ways to scam unsuspecting consumers. They often send out checks of unsolicited winnings claiming that the winner can deposit the check, pay a small fee to cover taxes and be rich! In reality though, these checks can sit for up to a week in an account before they are proven false and bounce.
Recently, throughout the State of Oregon, individuals have been receiving letters calls from the “Data Release Division” based in Jericho, New York claiming that the recipients have won $1.4 million. Unfortunately, this is too good to be true and these claims are attempts to make money off of honest Oregonians.
More and more students graduate with debt rather than jobs
If you are looking into college, remember that college does NOT guarantee you a job in this economy. Consider going to a two-year community or city college before transferring to a four-year institution. If living at home is an option—seriously consider it. You can read the story of Cortney Munna here. She went to NYU assuming that going to such a good school would pay off. Now she’s paying it off. Since graduating in 2005, she is for the first time, making enough to make the monthly payment on her $97,000 loan.
Washington Mutual is Reprimanded for Their Contribution to the Financial Crisis
The Senate Permanent Subcommittee on Investigations recently published a report on the actions leading up to the largest bank failure in US history--that of Washington Mutual. The irresponsible actions of banks like Washington Mutual contributed to the greatest financial crisis since the great depression.
The subcommittee has blamed Washington Mutual for contributing to the financial crisis by originating a huge volume of risky loans that were wold as mortgage-backed securities and ultimately became toxic. Senators criticized former bank leaders for both originating those loans and for not entirely disclosing their risky--and sometimes fraudulent--nature when they were securitized.
