This U.S. Banking System Change Will Help You

If you would like to get paid quicker or avoid last minute bill paying fees you might like this information. There is a change in the U.S. banking system that will help you. The St. Louis Post-Dispatch reports on the change to the U.S. banking system.

The change goes by the less-than-sexy name Same Day ACH, but it could save a nice amount of cash for consumers living on a tight month-to-month budget. ACH stands for Automated Clearing House, which is the name of the network banks use to move money between one another. It’s in need of an update.

Banks tend to batch process such transactions once per day, which is one reason bill payments can be frustratingly slow. That’s also one reason some bill collectors charge a $10 to $20 fee to take an immediate bill payment over the phone when a consumer is about to pay late.

NACHA, the nonprofit which oversees the ACH Network, and the Federal Reserve are out to eliminate these consumer-unfriendly pay-to-pay arrangements. Same Day ACH – and the same-day bill pay it promises – should help a lot.

Banks, it turns out, are slowly catching up with the computer age and being forced to share some of the benefits. Here is how same day ACH works.

  • Payment orders received by 10:30am eastern time must be settled by 1pm
  • Payment orders received by 2:45pm eastern time must be settled by 5 pm
  • Banks will immediately begin receiving same day payments
  • Banks will be required to originate such payments no later than March of 2018

It turns out that many banks are already in compliance across the board.

How This Banking System Change Can Help You

Banks typically process payments in bulk. This has usually means once a day. Get in the door to late and your deposit is not credited until the next day. Have your paycheck deposited directly into your bank account and you may not have access to funds until the next day. This changes with same day ACH. If you are living paycheck to paycheck and paying bills in the nick of time this change in the U.S. banking system will be good for you.

Are There Any Problems?

Complaints from the banking industry are that this speed up may cost them more money and may make the system more prone to fraud attacks as bankers will have less time to make sure that transactions are proper. However, forward looking bankers are saying that new products and services may results from the speeded up same day ACH system. In the end, however, it is your money that they are dealing with and that money should be available to you and not sitting in the bank system gaining overnight interest for the bank! According to the NACHA which administers the ACH network the same day ACH rules will affect how 80 percent of the nation’s 28 million businesses move $40 Trillion in funds each year.

Cross Selling Can Hurt You

The banking giant, Wells Fargo, has been in the news due to its cross selling scandal. Apparently more than 5,000 of their employees signed up clients for various services from the bank but did not tell the clients. This may have appeared to be cross selling but was really fraud. What is cross selling when it is not done illegally? Is it a good thing or can cross selling hurt you? The Wall Street Journal looks a bank cross selling.

Cross-selling is a widely used sales technique in which companies pitch consumers of one product on complementary products or extra features, such as a warranty, for an added fee.

On one hand, banks and others engaged in cross-selling may offer savings for customers who show brand loyalty. These savings opportunities include deals on mortgages, savings and checking accounts, as well as fee waivers and similar perks.

On the other hand, cross-selling can pressure consumers into buying products they don’t need or cause them to pay more for something they could have bought for cheaper elsewhere.

To the degree that cross selling allows you to buy products or services all from the same supplier, at a regular or reduced cost this practice allows you to take advantage of economy of scale and save you time. Amazon Prime is a good example of a service that gives customers free shipping and other savings in return from shopping exclusively via Amazon. When cross selling like this can hurt you is when you are missing out on better products, services or deals. What can really hurt is when bank employees are incentivized to fraudulently set up services and bill you without your knowledge.

How Did the Cross Selling Scandal Happen?

Bloomberg writes about how Wells Fargo cross sells its reputation as well.

Let’s skip straight to the punch line: You know those two million fake deposit and credit-card accounts ginned up by Wells Fargo employees to meet sales quotes?

The ones that sent the bank’s reputation from first to worst in record time?

The ones that are calling into question the firm’s entire aggressive cross-selling business model?

And making people wonder if even Chairman and CEO John Stumpf’s well-compensated head should roll?

Well, the bank had determined that the whole investigation into the practice was “not material” enough to disclose to investors in regulatory filings. Sure, at $185 million the legal slap is less than 2 percent of last quarter’s net income and thus arguably not a “material” hit to the company’s bottom line. But it sure is a material hit to the notion that Wells, Warren Buffett’s favorite bank, is a choirboy compared with the rest of the big banks.

The problem started with draconian demands on Wells Fargo employees. Cross sell or work overtime without pay. Cross sell or get no advancement or even get fired. Then management was apparently not watching because more than 5,000 employees acted illegally in setting up unwanted accounts and services without talking to employees. Can cross selling hurt you? It sure can when you knew nothing about it and maybe it will if you don’t pay attention along the way.

What Can I Do to Avoid Foreclosure?

What do you do when the bank is going to foreclose on your home? The 2008 financial crisis is gone but in its aftermath there are still many home owners in precarious positions. If this is happening to you what can you do to avoid foreclosure? First of all your lender is required to help you. You have the right to ask and they have the obligation to help determine if you have options such as refinancing or modifying your loan. The Consumer Financial Protection Bureau (CFPB)  has just issued a new set of rules in this regard. This can be a complicated matter and if you need help check out the CFBP website for finding a housing counselor.

Housing counselors throughout the country can provide advice on buying a home, renting, defaults, foreclosures, and credit issues. Using the search box below, you can find one near you. The counseling agencies on this list are approved by the U.S. Department of Housing and Urban Development (HUD) and they can offer independent advice about whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances, often at little or no cost to you. This list will show you several approved agencies in your area. There is also a list of nationwide HUD-approved counseling intermediaries.

And if you have not yet purchased a home but want to make sure that you can make payments and not end up in foreclosure check out the CFBP Know before You Owe page.

The Know before You Owe mortgage disclosure rule replaces four disclosure forms with two new ones, the Loan Estimate and the Closing Disclosure. The new forms are easier to understand and easier to use. The rule also requires that you get three business days to review your Closing Disclosure and ask questions before you close on a mortgage.

Staying out of trouble is a lot easier than getting out of trouble in the mortgage market. But what if none of this is working? Does it help to get a lawyer? Bankrate offers tips for choosing a foreclosure attorney. These are the tips and our comments:

Call a HUD certified counselor first. This may be all you need and it will save you money.

Organize your paperwork first. A HUD counselor can help and again you will be saving money.

Start with a legal aid office for recommendations. Trust is a big issue in dealing with an attorney.

An attorney appointment is a business meeting. The attorney is not your friend or therapist or life coach.  Be prepared and dress accordingly. Know what you want and remember that you may be in for a fight and you want someone who will win for you.

Evidence of Predatory Lending is reason to help you avoid foreclosure so make sure that you have everything in order including notes about what was said and when to present to the attorney.

The hard truth is that if you do not have sufficient income to support even a written down mortgage you will likely lose. Don’t pay money to an attorney who immediately says he can help you without reviewing your case.

You Need a Plan and it is the lawyer’s job to devise one. If he or she is not doing this don’t waste your time and money.

You can get help and avoid a foreclosure but you need to get organized, get help and pay attention as you go.

Can You Be Scammed by an Internet Bot?

Computer programs are getting smarter and smarter and that can be a problem. A software application that automatically runs repetitive tasks is commonly known as a web robot or bot for short. Technopedia defines internet bot.

An Internet bot, in its most generic sense, is software that performs an automated task over the Internet. More specifically, a bot is an automated application used to perform simple and repetitive tasks that would be time-consuming, mundane or impossible for a human to perform.

Bots can be used for productive tasks, but they are also frequently used for malicious purposes.

The term “bot” comes from robot. An Internet bot may also be known as a Web robot or WWW robot.

As bot programming gets more advanced these programs can interact with real people on the internet, engage in conversation and all too often engage in monetary scams or identity theft. How can you be scammed by an internet bot?

The “Person” You Met on Tinder Might Be a Bot!

Bot scamming is like other scamming in that when something seems too good to be true it probably is just that, too good to be true. Consumer Affairs describes how bots roam the internet.

The latest wrinkle is the deployment of bots – web robots – to seek out and engage victims, meaning one scammer can become a million times more effective.

A recent report found humans account for about 51% of traffic. The rest is driven by bots.

And these bots have added a whole new dimension to the online dating scam. A decade ago, this scam consisted of an individual scammer seeking out and engaging a potential victim, building trust, then swindling him or her out of thousands of dollars. It was a labor-intensive and time-consuming enterprise.

Today, bots do the work, engaging males on Tinder, pretending to be females.

The bots are programmed to engage in dialog. They have no problem remembering personal details like name, location or whatever they once learn as it is in a computer data base.

How Can You Know?

If you are engaging with a bot on the internet they “type” faster than you and typically not make mistakes in spelling or grammar. But responses are generic, the image of the “person” is gorgeous and they move very quickly to ask for personal information or money.

What Can You Do?

These scams are not limited to dating sites. When you get an official sounding email saying there is a problem with a recent order (of which you know nothing) do not open it. Do not click anything. Put it in your junk file and then block that address from sending further emails to your account. If you thought you were talking to a real live person and they immediately ask for money or personal information insist on a face to face meeting and if that does not happen cut them off. We have written before about scams, dating and otherwise.

There may be things about a developing relationship that should sound alarm bells. One is that when things are way too good to be true they probably are too good to be true. A friend of this author lost in wife in his 50’s and a year or so later ran into a 30ish good looking woman who proceeded to take him for all of his savings, in the form of gifts. When he sued the woman and her partner he lost, as did many others before him. This was because he freely gave away his life savings to buy this too good to be true woman a brand new corvette. Getting scammed by the love of your life can be devastating. A little consume research and little common sense can be helpful when you enter the online dating arena.

As the Romans said, let the buyer beware.

Why Do I Need to Read a QR Code to Know if My Food Is OK?

The United States is the last major nation to require that food packaging contain information about genetically modified ingredients. The problem is that the labeling can be in a QR code which requires a smart phone and software to read the code. Why do I need to read a QR code to know if my food is OK? The pieces of the puzzle here are QR codes, genetically modified organisms and the new law.

GMOs

What are GMOs or genetically modified organisms? The University of California in San Diego comes to the rescue.

When a gene from one organism is purposely moved to improve or change another organism in a laboratory, the result is a genetically modified organism (GMO). It is also sometimes called “transgenic” for transfer of genes.

There are different ways of moving genes to produce desirable traits. For both plants and animals, one of the more traditional ways is through selective breeding. For example, a plant with a desired trait is chosen and bred to produce more plants with the desirable trait. More recently with the advancement of technology is another technique. This technique is applied in the laboratory where a gene that express the desired trait is physically moved or added to a new plant to enhance the trait in that plant. Plants produced with this technology are transgenic. Often, this process is performed on crops to produce insect or herbicide resistant plants, they are referred to as Genetically Modified Crops (GM crops).

Humans have been modifying plants by selective breeding for thousands of years. The results have been better foods, prettier flowers and the loss of biologic diversity as single varieties that produce well crowd out the rest. An example in history is the Irish Potato Famine. Farmers grew just a couple of varieties of high producing potatoes which turned out to be easily infected by a fungus that destroyed potato crops on the entire island. The same concern is valid with GMOs when they come to replace the use of diverse plant species.

But Are GMOs Bad for You?

The primary concern about GMOs is that their extensive use will decrease genetic diversity and that by pollination their doctored genes will spread throughout adjacent plant communities. Additionally if you happen to have an allergy to something in the new genetically modified food you may have a real problem when everything you want to eat contains that set of genes.

How Do You Know?

A first rational step in this situation is to provide consumers with information. Does the food you are about to purchase contain GMOs? One of options in the new law is that the producer can put the appropriate information on the contain in the form of a QR code, a two dimensional bar code. But you need a smart phone and the appropriate software in order read these codes. Most consumers will think, why do I need to read a QR code to know if my food is OK and they will not bother.

How Has the Internet Changed News Reporting?

Once upon a time people who wanted the news subscribed to the morning or evening news paper or both. They listened to the news on the radio and later they tuned into the local and national news on the television. Those news sources still exist but the internet has changed news reporting. The Pew Research Center looks at what they call the modern news consumer.

Wave after wave of digital innovation has introduced a new set of influences on the public’s news habits. Social media, messaging apps, texts and email provide a constant stream of news from people we’re close to as well as total strangers. News stories can now come piecemeal, as links or shares, putting less emphasis on the publisher. And, hyper levels of immediacy and mobility can create an expectation that the news will come to us whether we look for it or not. How have these influences shaped Americans’ appetite for and attitudes toward the news? What, in other words, are the defining traits of the modern news consumer?

Today 70% of Americans follow the local and national news and 65% follow international news. 81% of Americans get some of their news if not all of it from websites, apps or social networking sites. The immediacy of internet news reporting has changed expectations of the modern news consumer and how the news is reported.

Television news is still the most common source of news. As print media have lost ground their readers have gone to online apps. The most people watch the news on television and those who read the news now are twice as likely to get their news online.

Has Technology Disrupted the Truth?

The Guardian says that technology disrupted the truth.

Social media has swallowed the news – threatening the funding of public-interest reporting and ushering in an era when everyone has their own facts. But the consequences go far beyond journalism.

The newspaper discusses at length the lies used by those who promoted the exit of Britain from the EU and how any comment by anyone was presented as news without any vetting of the facts. This is reminiscent of Rupert Murdock saying that the news is basically entertainment. When asked why he had purchased both the London Times and the daily with the nude woman on the second page he replied that both periodicals provided entertainment for different sorts of readers and many, in fact, purchased both. The difference with the internet is that news arrives faster, often with no attempt at fact checking. It can be the electronic equivalent of gossip in the town square.

Google quotes Bill Gates:

“Paper is no longer a big part of my day. I get 90% of my news online, and when I go to a meeting and want to jot things down, I bring my Tablet PC. It’s fully synchronized with my office machine so I have all the files I need. Bill Gates, Microsoft CEO”

And they note the results of the speeded up version of the news via the internet.

However, as the methods of providing news have changed, so have the providers. While in the past, journalists and reporters would present stories to the public that were extensively researched and fact-checked to ensure accuracy and maintain accountability, now there is an increasing pressure to distribute news stories as quickly as possible to avoid being pre-empted by the blogs. Unfortunately, the quality of the news is suffering.

How the internet has changed news reporting is by speeding it up at the expense of quality.

How to Reduce Prescription Drug Costs

There are new wonder drugs that did not exist a generation ago. These medications treat diseases that previously had no cure. New prescription drugs can prolong life. But all these wonder drugs come with a price. This article is about how to reduce prescription drug costs. WXYZ in Detroit wrote about prescription drug prices rising and how to reduce prescription drug costs.

The problem of rising prescription drug prices is rampant. Some 32-million people were hit with price hikes in the past year, according to a Consumer Reports survey. And it’s not just for big brand names or specialty drugs. Even prices for longtime generics drugs are increasing.

Too many people simply don’t fill their prescriptions when the cost is too high. Thus they may not be getting medicine that they need. What is the answer? Here are a few thoughts on how to reduce prescription drug costs.

Talk to Your Doctor

Tell your physician that cost is an issue with you for prescription drugs. He or she can often choose an alternative that costs less. For example many trade name drugs have generic equivalents. A generic drug is the same medicine without the trade name. Generic drugs are available for most medications after patent protection for the original drug expires. Medications that are sold as a combination of two drugs commonly cost more than if you buy the medications separately. Talk to your doctor and say that cost is an issue and that you need help to reduce drug costs.

Shop Pharmacies

If you prescription drugs are too expensive shop around from pharmacy to pharmacy and tell the pharmacist that you could be a regular customer but price is an issue. They may also suggest generic equivalents to what you are taking if you doctor has not done so. Tell your pharmacist that you need to reduce prescription drug costs.

Small Quantities First of All

If your doctor gives you a two month supply of a brand new and expensive drug ask the pharmacist to only fill enough for a few days. That way if you find that the medication does not agree with you the cost will be less.

Coupons and Discounts

The world of selling drugs is competitive. When someone offers discounts or coupons for a certain drug find out from your doctor if that drug is an appropriate substitute for what you are taking. You can find coupons online at sites like GoodRX.com.

High Volume, Low Cost

There are pharmacies online that make their profit from a small markup and high sales volume. The fact that they have no bricks and mortar stores helps keep their prices down. HealthWarehouse.com is an example. In this case, however, be aware that there fraudulent actors in this arena. Online pharmacies should display the VIPPS symbol which refers to a verified internet pharmacy practice site.

Do You Really Need All of Those Pills?

Some physicians tend to prescribe a new medication each time you have a new complaint. This sort of prescription drug accumulation can result in a lot of expense and it can result in side effects as drugs interact with each other. Periodically ask your doctor if you really need all of the pills that he prescribes. And do this when you ask for help in reducing prescription drug costs.

How to Prevent Zika Virus

If you are a professional golfer who was going to compete in the summer Olympics, how to prevent Zika virus is not to go to Brazil. According to ESPN one of the highest ranking golfers in the world, Rory McIlroy decided not to go to Brazil to compete in the Olympics because of fears of the Zika virus.

“After much thought and deliberation, I have decided to withdraw my name from consideration for this summer’s Olympic Games in Rio de Janeiro,” McIlroy said in a statement. “After speaking with those closest to me, I’ve come to realize that my health and my family’s health comes before anything else.

“Even though the risk of infection from the Zika virus is considered low, it is a risk nonetheless and a risk I am unwilling to take.

The virus can be contracted from a mosquito bite in Brazil where the disease is rampant. It can then be spread by sexual contact. McIlroy and his wife want to have children. He is not willing to accept the low risk of getting the disease and then passing it on to his wife thus risking the birth of a child with microcephaly. How to prevent Zika virus is not only an issue for those going to Brazil for the Olympics as the virus has already spread to the USA.

Are Mosquito Repellants Enough Protection?

The Zika virus was discovered in the Zika Forest in Uganda in 1947. It spread across the globe over the decades arriving in the Americas in Brazil in 2015. According to Reuters:

By 2016 cases have been reported in Suriname, Panama, El Salvador, Mexico, Guatemala, Paraguay, Venezuela, French Guiana, Martinique, Puerto Rico, Guyana, Ecuador, Barbados, Bolivia, Dominican Republic, Nicaragua, Curacao, Jamaica and the United States.

This is a disease primarily spread by mosquito bites. So, do mosquito repellants help prevent Zika virus? To the extent that your only risk of catching Zika is a mosquito bite please use insect repellants when you are in a region where the insect has been found. According to the CDC fact sheet on Zika the maps show mosquito distribution in the USA where Zika would be possible.

http://consumerresearchdept.com/wp-content/uploads/2016/02/aedes-mosquito-distribution-USA.png

Condoms to Prevent Zika Virus

Zika is also a sexually transmitted disease. If you think you are safe from Zika virus when you live in the Northern USA think again. Cleveland.com reported Ohio’s first sexually transmitted Zika case.

A 61-year-old Lucas County woman infected with Zika virus by her husband is the state’s first sexually-transmitted case of the mosquito-borne virus.

The woman’s husband traveled to a country with active Zika transmission, according to a release from the Ohio Department of Health. It’s the state’s 15th travel-associated case, and the woman’s husband’s case brings the state total to 16.

There are now 755 travel-associated Zika cases nationally, with another 12 cases acquired through sexual transmission, according to the CDC. No one in the U.S. has been infected with the virus locally through the bite of a mosquito.

In this case how to prevent Zika virus would have been to use insect repellant when traveling to an endemic area and condoms when coming home!

What to Do When the IRS Calls You

There is a new scam in the Wilmington, Delaware area according to WillingtonBiz.com. Hackers posing as IRS agents are engaged in identity theft.

The latest scam affecting the Wilmington area involves hackers calling residential phone numbers, impersonating IRS agents. In the automated call, a robotic voice issues the following voicemail: “This is an alert to notify you that the IRS has filed a lawsuit against you. Please call (719) 217-4004 for more information.”

When the confused and alarmed person returns the call to find out what is going on, the criminal at the other end of the line initiates a conversation aimed at building credibility. By sharing information that is either publicly available or that has been compromised as a result of a data breach from a different organization, the hacker establishes trust with the target of the scam.

The fact of the matter is that the IRS will never contact you by way of an automated call or email. What to do when the IRS calls you is to hang up. If the IRS is interested in you and your taxes you will receive a registered letter. Furthermore the IRS will never ask you for a credit card number over the phone.

What to Do If the Hackers Call You

The IRS has information on their web site regarding this problem. Go to the IRS.gov site for information about continued scams.

The Internal Revenue Service today issued a warning that scammers may try using the April 18 tax deadline to prey on hard-working taxpayers by impersonating the IRS and others with fake phone calls and emails. Even after the tax deadline passes, taxpayers should know the telltale signs of a scam and tips to protect themselves from a variety of phone scams and phishing emails.

“We’ve seen continuing activity in these scams throughout the filing season,” said IRS Commissioner John Koskinen. “As the tax deadline nears, these criminals may try and trick honest taxpayers over the phone or via email, and people should remain vigilant. After the tax deadline, watch out for these scammers promising a refund or threatening you with an unexpected tax bill.”

If you believe that you have been targeted by hackers and scammers send an email to phishing@irs.gov. You can also send complaints to Complaints@tigta.treasury.gov. But whether you complain or not do not provide these people with any personal identifying information.

Identity Theft

The goal of these scammers is your personal financial information. Identity theft has become a common crime in our electronic age. In our article Who Is Stealing Your Identity were reported an FTC settlement regarding people who selling sensitive info.

A constant concern of consumers today is identity theft. We have written about identity theft protection and identity theft related to gift card fraud. Now a blatant new scam has come to light. LegalNewsline.com reports an FTC settlement with three parties who were selling sensitive consumer information.

The common thread in each of these cases is scammers looking for your credit card, banking or other personal info in order to commit financial crimes. What to do when the IRS calls is hang up because it never is the IRS calling.

Do You Read Food Labels?

Do you read food labels? If you read the new labels that the Food and Drug Administration (FDA) requires you may be surprised. Changes in food labeling require more information for the consumer and presented more clearly according to the Chicago Tribune.

Over the past couple of weeks, the Food and Drug Administration announced major changes to food labeling that could have a significant impact on what people eat and drink – or at least how often certain products are consumed.

For example, you might still enjoy that ice cold Coca-Cola, but you could decide it’s more for special occasions when you see that a 20-ounce bottle contains 65 grams of added sugar that represent 130 percent of daily value. Daily value is how much a given nutrient in a serving of food contributes to a daily diet.

Most food manufacturers have until July 26, 2018, to roll out the new labels.

If you read the new labels on food and beverages you will see how much sugar is added to the natural product such as with fruit juices or milk. Labels will show serving size, calories and the proportion that given ingredients are in a normal healthy diet. And the print will be bigger allowing everyone to read the label without a magnifying glass.

Clearly Identifying What a Product Really Is

Additional FDA rules include naming ingredients accurately. One example is evaporated cane juice. Sugar cane is one of the sources of sugar. Evaporated cane juice is, in fact, sugar. The FDA is identifying products like this and encouraging companies to provide accurate labeling, in this case sugar instead of evaporated cane juice.

Why Is This Important?

Organizations like the American Diabetes Association are happy with the changes as they will make for diabetics and people at risk for diabetes to have accurate information in order to adjust their diets. Did you know, for example, that the 65 grams of extra sugar added to a bottle of Coca Cola constitute 130 percent of daily value? For the average person this just contributes to obesity but for a diabetic too much sugar can be life threatening.

How Much Fat Is in Your Potato Chips?

Don’t you just love those tasty potato chips? What you are enjoying is a vehicle for delivering salt and fat. Livestrong.com writes about the types of fat found in potato chips.

Potato chips are made from either thinly sliced potatoes that are deep-fat fried or dried potatoes that are processed into chips, according to the U.S. Food and Drug Administration. Potato chips can be cooked in a variety of fats. The most common types are sunflower, corn and cottonseed oils.

The cheapest oil is typically cottonseed oil which is high in saturated fats and can raise your cholesterol. This oil also commonly has measurable to high pesticide levels. When the label says “may contain one of more of” cottonseed oil is typically the largest part. New labeling will hopefully make it more clear just what kind of oil is in your chips. And how about all that salt? Too much salt raises your blood pressure and worsens existing heart failure. Do you read food labels? You should.


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