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Have you ever misplaced your wallet or had it stolen? If so, what is your immediate reaction? Panic! Why? Because we keep so much of our vital information in our wallet and when it is lost or stolen, we have a feeling of helplessness. Here are some tips from your community banker to help minimize your distress.
At least every six months, you should make a photocopy of everything in your wallet or a written list of all of the contents. At the very least, the items will probably include:
Driver's license
Gasoline credit cards
MasterCard, Visa and other credit cards
Bank debit card
Health insurance card
Remember, when you're making a photocopy of the cards, be sure to copy the back side of the card as well as the front. The back of the card usually includes a phone number to call to report a lost or stolen credit card.
Be careful what you carry in your wallet. Experts recommend that you never carry your social security card, birth certificate or passport around with you. Information contained on these cards is an easy target for a thief to steal your identity and quickly set up new accounts in your name.
Always keep your hand on your wallet whenever you have it out in a restaurant, grocery store, department store or other public place.
Take the following steps if your wallet is stolen:
- File a police report immediately and keep a copy in case you need to provide proof of the crime to your credit card company or bank
- After canceling your credit cards, call the three major credit reporting bureaus and ask them to put a "fraud alert" on your account.
- Ask the credit bureaus for a copy of your credit report and review it carefully to make sure no new accounts have been opened in your name.
- Get a new ATM card and personal identification number from your bank.
- Report your missing driver's license to the department of motor vehicles.
Consider making a personal guide with pertinent information and keep it in a safety deposit box or other safe place.
- For all bank and credit cards, list the institution name, toll-free number, account number and expiration date of the card
- List the phone number for the police department
- List the phone numbers of the three major credit reporting bureaus:
- Experian: 888.397.3742
- Transunion: 800.680.7289
- Equifax: 888.766.0008
- List the phone number for your local social security administration office.
- List the phone number for the department of motor vehicles.
- List the phone number of the U.S. State Department Regional Passport Agency.
Remember, it's always better to plan ahead for the unexpected.
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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In today’s uncertain times, it might be
advantageous for you to consider using direct deposit for payroll
and federal paychecks.
By using direct deposit, you can be assured that your payments
will be automatically transferred to your account and available
for immediate use. You can sign up for direct deposit through
your employer, who will provide you with the required paperwork.
Your employer will need your Social Security number and a voided
check containing your account number and the bank’s routing
number. The routing number is the first set of numbers on the
bottom of your check. It will take a couple of weeks before your
checks can be directly deposited, but after the process is in
place, you will receive an earnings statement from your employer
detailing how much was deposited into your account, along with
an itemized list of deductions and taxes that are currently on
your paper check.
For Social Security payments or other federal paychecks, you
can usually handle direct deposit over the phone by checking
with the appropriate federal agency from which you receive your
check. Again, you will need to provide your checking account
number and the bank’s routing number. While you will receive
a letter confirming the change to direct deposit, you will not
receive a monthly voucher. You will need to check your bank balance
or call your bank to confirm direct deposit of your check.
Some Americans distrust the electronic age and prefer to receive
their checks by mail. But consider the cost savings to taxpayers
by using direct deposit. According to the latest government figures,
it costs 68-cents to process and mail each Social Security check
and the government sends out 13 million checks each month. By
the end of each year, the government spends almost $100 million
on processing and mailing all of these government checks.
Not only does direct deposit save taxpayers money, it also could
save you money. Many banks offer free or low-cost checking accounts
for people who use direct deposit because it saves the bank the
cost of processing checks.
This fall, the federal government will be rolling out a new
marketing campaign to encourage people receiving federal benefits
to enroll in direct deposit. Remember, with direct deposit:
You don’t have to worry about lost checks should the postal
service be disrupted due to a terrorism attack or other catastrophe;
Your check is safe in your account, even if the weather outside
is frightful and you can’t get to the bank or you’re
sunning at the beach on vacation;
You don’t have to stand watch at our mailbox until your
check arrives, fearful that some thief might steal your check;
and
You don’t have to wait in long teller lines at the bank
to do yourself what could be done for you—easily, conveniently
and efficiently.
Use direct deposit and forget about it!
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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“Don’t worry about bad credit. For only $29.99,
we’ll erase your bad credit history and provide you with a fresh
start!” Heard that one before? Don’t believe it or you may
be throwing much more than $29.99 down the drain. Some of these so-called “credit
repair” companies have charged their customers thousands of dollars
to do what you can do for yourself.
Basically, anything that a credit repair service can provide, you can
accomplish on your own. You may decide that you would rather a reputable
company do the “leg-work” for you, but make sure you understand
what they can and cannot legally do and make sure they are legitimate.
First, understand that if accurate negative information appears on your
credit report, nothing but time and slowly rebuilding your credit history
will solve the problem. The negative information will remain on your credit
report for seven to 10 years.
Sometimes a fraudulent credit repair scam will offer to provide customers
with a new social security number so they can create a new credit file.
This practice is called “file segregation” and it is illegal.
If you file fraudulent information over the phone, through the mail or
over the Internet, you could be charged with a federal crime and chances
are the credit repair scam artist will be long gone.
If, in fact, the credit repair company is able to provide you with a
new credit card, it will probably be a “secured” credit card,
which you have to “secure” with a cash deposit in order to
draw on the credit line. Additionally, you are probably looking at a high
application fee and high interest charges.
It is also a federal crime for a credit repair company to make
false claims about their services. Be aware that the company cannot charge
you until they have performed the promised services. These companies also
need to provide you with a written contract that details what services
they will provide, the total cost, and the length of time it will take
to achieve results. The company must also inform customers that they have
three days to cancel their contract at no charge.
If you feel you have been defrauded by a credit repair scam artist, contact
the Consumer Affairs Division of the state’s Attorney General’s
Office
If you find yourself with a bad credit history, you should
obtain a copy of your credit report from one of the three major
credit reporting bueaus. If you find erroneous information
on your report, you should write to each of the three bureaus
and provide corrected information. If you’ve been denied
credit in the past 60 days, you are entitled to a free copy
of your credit report. Phased in over the next year, credit
bureaus will be required to provide a free credit report upon
request in all 50 states.
Remember, bad credit can be repaired only if you approach it with disciplined
and sensible financial management. Once you establish a new reliable payment
history, your chances of receiving the credit you need will improve.
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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Beginning in October, new legislation becomes
effective which eventually may put an end to “floating” checks.
At one time or another, almost all of us have probably “floated” a
check. Perhaps it was close to the end of the month and you bought
groceries on Friday, knowing that the check you wrote couldn’t
get back to your bank before payday on Monday.
While more of us are using debit cards to pay for purchases,
many consumers still rely on paper checks taking 2-3 days to
clear their banks.
After October 28, you may find this more difficult. That is
when Check 21 becomes effective. The primary purpose of Check
21 is to provide an alternative to our nation’s reliance
on processing paper checks. You will still be able to write a
check, but once it leaves your checkbook, the banking system
will handle it differently. Should our nation experience another
tragedy like 9/11, our dependence on moving paper checks could
result in serious consequences for our national financial system.
This situation was the impetus for the adoption of Check 21.
Another reason for Check 21 is to stifle white-collar criminals
who write checks on a regular basis knowing that they have insufficient
funds to cover the transaction.
Currently, it takes 1-5 days from the time you write a check
to a retailer to the time the check reaches your bank account
for payment. With Check 21, you will write a check to the retailer
and the check’s image is then transmitted electronically
through the system. If your bank is set up to receive electronic
images, the transaction reaches your bank account for payment
on the same day. If your bank is not set up with electronic imaging,
it
could take a day for the money to be deducted from your account.
Rather than using paper checks, the new law would permit financial
institutions to use “substitute checks”—a digital
image of the original paper checks with all of the information
contained on the original check. The “substitute check” would
be required to contain the words, “This is a legal copy
of your check. You can use it the same way you would use an original
check.”
Although it will take several years for most banks to move to
paperless transactions, you can eventually expect to see the
end of “float” periods as well as the end of returned
paper checks in your bank statement. Rather, you’ll receive
replicas or images of the original checks, or those payments
may appear as electronic withdrawals on your bank statement.
While electronic presentment is not mandated for banks and other
financial institutions, it may prove beneficial not only to the
bank, but to its customers. Currently, it can take up to five
days to access funds on an out-of-state check. Under Check 21,
bank customers will be able to access these funds more quickly.
If you have any questions or concerns about Check 21, don’t
hesitate to contact your local community banker.
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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Automated Teller Machines (ATMs) have made our lives a lot easier. So what if you forget to go by the bank before closing time to get money for the weekend. No problem. Just zip into one of the ATMs in the area and access the money in your checking or savings account day or night. But always be aware of your surroundings and use safety precautions when using an ATM or debit card.
PULSE, the nation’s leading independent financial industry-owned electronic funds network, offers several safety tips when using an ATM. Even though you’ve heard them before, it never hurts to have a refresher course. Remember the old adage: An ounce of prevention…
- Always observe the ATM surroundings before conducting a transaction.
- Block the view of others when using an ATM to make sure they cannot see your Personal Identification Number (PIN).
- Look for possible fraudulent devices attached to an ATM. If anything looks suspicious, go to another machine.
- Never allow a cashier or any other person to enter your PIN for you.
- Minimize time spent at an ATM by having your card ready.
- When using a drive-up ATM after dark, keep your doors locked, passenger windows rolled up and headlights on when conducting your transaction.
- If using an ATM at night, try to take someone with you.
- Check your ATM receipts against your monthly bank statements, just as you do your cancelled checks.
- Don’t store the magnetic strip on the back of your ATM card against the magnetic strip of another credit card in your purse or wallet. It will corrupt the strip and make your card un-useable.
- If you think you are being followed after leaving an ATM, call 911 or look for a police officer.
- If you see overgrown shrubbery, poor lighting or other potential hazards at your bank’s ATM, report it to your bank immediately.
- Your ATM card is the same as cash, so make sure you keep it in a safe place. Keep your PIN a secret and don’t disclose confidential information about your card over the telephone or the Internet.
Ninety million Americans have ATM cards. According to PULSE, some 1.4 billion ATM or debit transactions will be conducted this year alone.
By following these safety precautions and using common sense, you can enjoy this convenience rather than becoming the latest crime statistic.
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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Do you remember the good old days when you knew your banker and your banker knew you? The bankers lived in the community, went to church with their customers and were active in civic activities. You shared a personal relationship with your banker.
In the 1990s, we saw a wave of large regional banks setting up branches across the nation and the decision-makers were no longer your neighbors and friends, but faceless strangers in another state who determined your credit-worthiness based on a credit scorecard.
Contrary to popular belief, big bank mergers often mean less competition, fewer branches, higher loan rates and fees and less personal service. Recent studies have shown that big bank fees are 16 percent higher than those at a smaller community bank. Following a merger, many big banks often pull out of the smaller communities in favor of the more urban metropolitan marketplaces.
Fortunately, the large bank merger-mania is on the decline and people are returning to the community bank and to people they know and trust. And while many community banks are joining forces, they are still committed to providing personal and focused services to their communities. But what should you do if your bank merges with another financial institution?
First, you need to determine if the new bank will offer the products and services you need. Talk to the customer service representative to make sure that you are signed up for the best programs to fit your needs. It may be wise to do some comparison shopping to compare products and services of the “new” bank with other banks in towns.
- Does the new bank have ATMs and how many can you use without having to pay fees charged to non-customers?
- Is the new bank offering incentives to keep you as a customer?
- Are the checking and savings account fees the same as they were at your old bank?
- How do the bank’s other fees compare with other banks in town?
- Does the bank offer on-line banking services?
- What other financial services are being offered by the bank in addition to traditional banking products? Do they offer investment options, insurance, etc?
- What are the interest rates on checking and savings accounts?
- What about interest rates on credit cards and other loans?
- Are the bank personnel that you have known and trusted the same or have they been replaced?
- Are loan decisions made locally or made in another location?
- Does the bank offer special services and incentives for groups that you may belong to, such as senior citizens or small business owners?
Regardless of the reasons for a bank’s merger, the one most affected is you — the customer. Make sure you investigate the effects of the merger on you and your money.
Provided as a public service by the members of the Nebraska Independent Community Bankers.
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Do
you know what could happen if you buy a car or a boat or other
large item and miss even a single payment? You may wake up one
morning and find your property is no longer in your driveway.
That’s right. It has been repossessed by the seller.
If a buyer fails to make timely payments on an installment
agreement, the creditor has the right to take possession of the
property. However, in so doing, the creditor cannot cause a breach
of the peace by a physical confrontation with the buyer or cause
property damage. Additionally, a creditor cannot keep personal
items found inside your boat or car. Personal property does not
include improvements, such as a CD player or a luggage rack.
If your property is repossessed, you can reclaim
it by paying the entire balance due, plus repossession charges,
plus attorney and court fees. In the meantime, the creditor has
the right to resell the property and if he receives less than
the original value of the property, you can be held liable for
the difference in the original price and the selling price.
For example, let’s say you still owe $3000
on your car. The creditor repossesses your vehicle and sells it
for $1500. You are still responsible for the remaining $1500 and
any charges related to repossession. This is called a deficiency;
an amount still owed by the debtor after the creditor sells the
property and applies that amount to your unpaid balance. In the
end, you could lose not only the vehicle, but all of the payments
you made on the vehicle.
Before reselling your property, the creditor must
first take reasonable steps to notify you, the debtor, of the
sale and make sure the sale is conducted in a reasonable manner
to obtain a reasonable price for the item. If the creditor does
not take these steps, then the debtor is not liable for the deficiency
between the original price and the resale price. The debtor can
also participate in the bidding process and possibly reclaim the
property.
If you’re unable to make a payment or a special
circumstance forces you to make a late payment, talk to your creditor
to explain the situation. Creditors don’t want the property
back and many times are willing to work with you and revise your
payment schedule. If you negotiate a payment schedule, be sure
to get the terms in writing because oral agreements are hard to
prove in court. Until you make that last payment, the property
actually “belongs” to the creditor and can be repossessed
any time you default in your payments.
Take care you don’t over-extend yourself,
make timely payments and you’ll have one less worry when
you wake up in the morning.
Provided as a public service
by the members of the Nebraska Independent Community Bankers.
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In
2000, consumers wrote nearly 19 billion checks for retail transactions.
The check handling costs and losses totaled more than $23 billion.
Understandably, more and more merchants are moving toward a payment
system known as electronic check conversion (ECC). If you haven’t
already experienced ECC, you may in the near future.
With ECC, your check is used as a source of information.
The merchant uses a specially designed scanner to capture your
check number, your account number and the bank routing number
that identifies your financial institution. Your check is then
voided and returned to you.
Automated clearinghouse rules require the merchant
to post a sign that your check may be used to make an electronic
payment from your account. Funds are generally transferred within
48 hours. If you don’t want your account used for electronic
check conversion, you may want to consider paying for your purchases
with a credit card or cash.
Although the paper check is not a method of payment,
the information on the check is used to process the payment information.
Electronic check conversion makes check acceptance the same as
a credit card transaction and reduces fraud and provides the merchant
faster access to funds. It also saves time and money because the
merchant no longer has to physically deposit checks at the bank.
Not only is ECC helpful to the merchant, it also
helps the consumer. A paper check is usually handled by several
people before it finally reaches the customer’s bank account,
thereby increasing the possibility of fraud.
With ECC, the cashier scans the information and
returns the check to the customer. ECC minimizes fraud risk because
checks can be verified at the point of purchase against closed
accounts or accounts with bad-risk histories.
- Make sure you have adequate funds in your
checking account to cover the cost of the purchase.
- Be sure the clerk returns your voided check
to you.
- Make sure you enter the purchase in your
check registry.
- When you reconcile your bank statement, expect
the item to show up in the section for electronic items (like
ATM withdrawals).
If you have any questions on electronic check conversion, contact
your local community bank or other financial institution.
Provided as a public service
by the members of the Nebraska Independent Community Bankers.
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Do
you have any CDs? No, not the latest George Strait compact disc,
but the “Certificates of Deposit” kind.
A certificate of deposit (CD) is a special type of deposit account
with a bank or savings institution that typically offers a higher
rate of interest than a regular savings account. CDs are low-risk
investments that are federally insured up to $100,000. If you
have other accounts with the institution, make sure that you have
set them up so that all are insured. The FDIC has a tool called
EDIE that you can use online at www.fdic.gov.
When an individual purchases a certificate of deposit, he invests
a fixed amount of money for a fixed period of time ranging from
one month to 10 years or longer. The financial institution issuing
the CD pays the investor at regular intervals. When it is time
to cash in the CD, the investor receives all of his original investment,
plus any interest that has accrued over the time period. However,
if the investor redeems his CD before the maturity date, he will
have to pay an “early withdrawal” penalty. The penalty
for withdrawing within the first week is set by law. However,
otherwise it is fixed by the institution.
While CDs originally paid a fixed interest rate until the CD
matured, today’s investor can choose from variable rates,
long-term rates or a special redemption feature in the event of
the owner’s death. You may compound interest or have it
paid to you by check or electronic transfer.
Before investing in a CD, be sure to read all of the disclosure
statements and don’t hesitate to ask your banker for help
in understanding any questions you may have. Make sure you understand
when the CD matures. Some CDs automatically renew. The rate typically
changes at renewal. The institution is required to give you an
advance notice of the changed rate.
Some CDs give the issuing financial institution the right to
terminate the CD after a set period of time, but the investor
may not have the same right. Make sure to investigate any call
features of the CD. Typically callable CDs are sold by brokers—sometimes
over the phone. Your State Securities Board should have a helpful
checklist to use in evaluating these as investments.
Keep in mind that although CDs are a safe investment, interest
rates are locked in. While this is good in a bad economic market,
if rates go up, you’re stuck with a locked in rate unless
you have a variable rate CD with a good index.
CDs can be a good investment for young and old alike. For younger
people, a high yield long term investment with a maturity date
of 18-20 years may be a good investment. However, if you’re
55 or older, you might prefer a CD with a shorter maturity date.
Many Americans may be hesitant to deal with today’s volatile
stock market. They want to know their money is safe, federally
insured and will provide them with a predictable source of income.
Check with your local community banker to see if a CD is right
for you. While you’re at it, go ahead and buy the latest
George Strait CD as well.
Provided as a public service
by the members of the Nebraska Independent Community Bankers.
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The
holiday season has come and gone and you may find yourself in
your own reality series: Surviving Credit Card Debt.
The airwaves are full of offers from credit counseling agencies
or debt management plans to erase your debt. Be careful.
While most of these firms are reputable, be sure to do your homework
before signing up with a credit counseling or debt management
firm. Otherwise, you could find yourself paying high fees to set
up and maintain a program.
There are more than 1,000 credit and debt management organizations.
Before deciding on a credit counseling agency, check to see if
it is a member of either the National Foundation for Credit Counseling
(www.nfcc.org)
or the Association of Independent Consumer Credit Counseling Agencies
(www.aiccca.org)
and if it is accredited by the Council on Accreditation. These
organizations require members adhere to professional standards
and ethics in dealing with their clients.
Determine the cost. In most cases, there is generally a fee to
set up a debt management plan and a monthly fee to maintain the
plan. While these fees can go up to $50-$75, overall the prices
for these services are much lower. Additionally, there are some
non-profit firms that provide debt counseling services at no or
minimal cost to their clients.
In a debt management plan, you make one payment to the credit
counseling agency during regular intervals and the agency disburses
the money to your creditors. Determine how often the agency will
make payments (weekly or monthly) so that you can be sure the
payments reach your
creditors on time. Make sure you find out whether your first monthly
payment is considered a set-up fee or is that money going directly
to your creditors.
Some people fear that by using a credit counseling agency or
debt management plan, their credit score will be affected. According
to officials at Fair, Isaac and Company, which developed the credit
score, they do not use this against your credit report. However,
you could have some problems with individual creditors. Even though
the credit counseling service has negotiated a repayment plan
with your creditors, the creditor may still send in a negative
report to the credit bureau because you are only paying part of
your payment, rather than fulfilling your agreement to pay the
entire amount.
Another benefit to look for in selecting a credit counseling service
is whether they offer budgeting classes. If the agency is interested
only in signing you up for debt management, look to another agency.
The agency also should offer you educational classes to help you
manage your finances.
Your community banker advises you to be leery of firms that promise
to erase your bad debt quickly and provide you with a clean credit
report. Impossible. You didn’t get into trouble overnight
and it will take some time to rebuild your credit. But, it can
be done and it is worth the extra effort.
Provided as a public service
by your community bank a member of the Nebraska Independent Community
Bankers association. To find a community banker in your area go
to Find A Bank on our website and
click on the map or select a county for a list of community banks.
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