Banking Safely in Troubling Times

By: Jim | October 08, 2008 | Category: Money

Bank On October 3, the President signed into law the Emergency Economic Stabilization Act of 2008. Commonly referred to as the bailout, feedback on Colleen's recent bailout comments indicate that some call it other things. Whether you were for or against the legislation, there are a few details in it to be aware of.

For example, it includes a provision temporarily raising the cap on federally insured deposits from $100,000 to $250,000. This provision will expire at the end of 2009. It's important to remember that there is no indication that the provision will be extended or become a permanent change. This applies both to banks insured by the FDIC and to credit unions insured by the National Credit Union Administration.

Your money is safe if you're using a financial institution insured by the FDIC or NCUA. But I admit that the recent headlines about bank closures made me curious about my bank's soundness and what I'd go through if my bank failed. Although the FDIC never releases its ratings on the safety and soundness of banks and thrift institutions to the public, it does provide information on private companies that provide their own ratings of bank safety, often for a fee. FDIC's information on when a bank fails helped me get an idea of what to expect if that happened.

If you're looking for a new bank or credit union, the Consumer Action website has some helpful tips. Check out MyMoney.gov's Saving and Investing page to learn more about banking, interest rates, how to complain about a financial institution, and more.

Have you experienced the closure of your bank or credit union by the FDIC or NCUA?

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Avoid Foreclosure Rescue Scams

By: Nicole | August 15, 2008 | Category: Home and Family

Mortgage PaymentsA few weeks ago, I wrote a post about avoiding mortgage foreclosure. I know that topic resonated with a lot of folks. In addition to other worries, homeowners must now be more guarded than ever against foreclosure rescue scams. The fear of losing their homes can make even the savviest consumers susceptible.

The Federal Trade Commission and the Office of the Comptroller of the Currency both provide general descriptions of the most common foreclosure rescue scams:

  • Lease-back or repurchase scams happen when someone offers to pay your mortgage and rent your home back to you. This scheme often involves signing over your deed to a con artist.
  • Refinance Fraud occurs when people pose as mortgage brokers and offer to refinance your loan so you can afford the payments. Con artists may trick you into signing over the ownership of your home by saying that you are signing documents for a new loan.
  • Bankruptcy Schemes attempt to abuse the bankruptcy laws. The con artist may even file a bankruptcy case in your name, without your knowledge.

Here are some general tips to help you avoid these scams:

  • Read and understand everything you sign.
  • Don’t sign blank or partially completed documents.
  • Make payments directly to your lender or mortgage provider.
  • Contact your lender directly to discuss payments and options.
  • Never sign over the deed to your house without consulting a lawyer.
  • Report suspicious activity to the FTC or your state consumer protection office.

For more information about housing, visit the USA.gov Homes and Housing Page. Do you have any other tips for avoiding foreclosure scams?

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Latest Presidential $1 Coin Debuts

By: Stephanie | August 13, 2008 | Category: Money

Jackson presidential $1 coin

Have you seen any of the presidential $1 coins in your change? The U.S. Mint has issued more than one billion of these coins since February 2007. The coins are issued in the order the presidents served, beginning with George Washington, and four coins come out each year.

Tomorrow the seventh presidential $1 coin makes its debut: Andrew Jackson’s. As a boy, Jackson fought in the Revolutionary War, and later gained national prominence as a hero of the War of 1812, when his troops defeated the British at New Orleans. Jackson was nicknamed "Old Hickory" for his firm discipline as a commander, and he once killed a man in a duel over his honor. He served two terms in office as president from 1829 to 1837.

Tomorrow’s ceremony issuing the new presidential $1 coin will be held at Jackson’s home, The Hermitage, near Nashville, Tennessee. The public is invited for free, and can exchange dollar bills for Andrew Jackson presidential $1 coins.

Along with the Presidential $1 coins, the U.S. Mint also is issuing gold collectible coins of the first ladies. But since Jackson’s wife, Rachel, died just a few months before his inauguration, the First Spouse gold coin representing his presidency features Liberty as depicted on a U.S. coin during his time in office.

Contact your bank to find out if it has the presidential $1 coins. See the coin designs (including the upcoming eighth coin), and read a citizens committee's design recommendations to the Secretary of the Treasury. For more information on new currency, visit USA.gov’s Currency and Economy page and FAQ on new dollar designs. Finally, for a little fun, unwind with some online coin-doku.

Have you seen any of the presidential $1 coins in circulation? Are you collecting them?

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