NEW HAVEN - David Fein, U.S. States Attorney for the District of Connecticut, announced today that Marta Lozada, 43, of New Haven, was sentenced today by U.S.District Judge Janet C. Hall in Bridgeport to 30 months in prison, followed by three years of supervised release, for bank robbery.
Hall also ordered Lozada to reside in a halfway house during the first 6 months of her term of supervised release.
According to court documents and statements made in court, on February 4, 2010, Lozada robbed a Bank of America branch at 100 Amity Road. She took $4,858, records show.
Showing posts with label Connecticut. Show all posts
Showing posts with label Connecticut. Show all posts
Thursday, May 26, 2011
Thursday, March 17, 2011
Donating to Japan relief efforts? Screen carefully
In the wake of the massive earthquake and tsunami that devastated northern Japan, people around the world and in Connecticut are opening up their hearts and wallets to help those who survived the devastation.The Connecticut Department of Consumer Protection is urging residents around the state to diligently and carefully check out charities before making a monetary donation toward relief efforts.
“The devastation is overwhelming and the losses, both personal and economic, move us to donate quickly and generously,” Consumer Protection Commissioner William M. Rubenstein said. “But because scam artists are adept at exploiting disaster for personal gain, I urge you donate carefully, so that your kindness and generosity are not exploited.”
Donate to well-known, established charities.
This is the best way to ensure that your donation is used appropriately. Establishing an effective, efficient new charity following a crisis is nearly impossible. Find a charity with a proven track record in providing disaster relief on a massive scale, one that has worked in Japan and other affected regions.
One source for checking out the details about a charity that you are considering is http://www.charitynavigator.org/.
Specify that your donation is for this crisis in Japan.
Do not send supplies unless a charity specifically requests them. Otherwise, there may be no system to receive, organize and distribute your donation.
Avoid responding to e-mail and telephone solicitations on behalf of supposed victims.
Unless you personally know someone in Japan, anyone contacting you in this way is most likely part of a scam.
Delete unsolicited e-mails and don’t open attachments.
Never respond to unsolicited emails and don’t open any attachments to these emails even if they claim to contain pictures from Japan. The attachments may be viruses designed to steal personal financial information from your computer.
Beware of copycat organizations.
Criminals are likely to set up bogus sites to steal the identities and donations of generous, unsuspecting individuals. When giving online, be sure to find the charity’s legitimate website. Again, you can access links to each bona fide charity’s sites from the Charity Navigator site referenced above.
Remember: social media sites also require caution and scrutiny – Twitter, Facebook, YouTube and blogs about the disaster include emotional pleas for donations. Do not blindly give via these vehicles. As with any charity, investigate the groups behind such pleas to ensure that they come from a legitimate organization.
“The outpouring of concern and support for those affected by this tragedy is enormous, but unfortunately, so is the potential for fraud,” Rubenstein said. “We all must take precautions to ensure that the generosity of Connecticut residents is not abused."
Suspicious solicitations can be reported to your local police department and to the state Department of Consumer Protection at 1-800-842-2649.
"Anyone caught engaging in fraudulent activity will be prosecuted to the fullest extent of the law,” Rubenstein said.
Wednesday, January 26, 2011
CT guaranty fund repaid $2.7 million to homeowners last year
Connecticut's Department of Consumer Protection repaid 335 state property owners $2,728,365 in 2010 to satisfy unpaid home improvement-related court judgments from the Home Improvement Guaranty Fund.
When planning ahead to the spring 2011 home improvement season, DCP reports homeowners should choose carefully, get referrals from people they trust and always work with contractors who are registered to do home improvement work in Connecticut.
All home improvement contractors and salespersons working in Connecticut are required by state law to register annually with the Department of Consumer Protection and the agency keeps a public roster of licensees. A portion of each registration fee is allocated to the Home Improvement Guaranty Fund, a pool of money administered by DCP which is used to help satisfy an unpaid court judgment to a homeowner.
Consumers may be eligible for up to $15,000 per contract from the fund if they experience a home improvement problem that meets certain criteria. The Guaranty Fund can cover actual damages, court costs and attorneys’ fees as ordered in a court judgment, up to $15,000.
Here are some of the parameters:
• The contractor must have been registered with the Department of Consumer Protection at the time the consumer signed their contract, within two years before the contract was signed OR at the time of the court judgment against the contractor.
• The contract must have been for work on residential property (single or multifamily dwellings of six units or less, or condos or cooperatives).
• The total price of the work involved must have been more than $200.
• The consumer must apply to the fund within two years after receiving the court judgment.
More information and applications are available on the Department of Consumer Protection's website or by calling 1-800-842-2649.
When planning ahead to the spring 2011 home improvement season, DCP reports homeowners should choose carefully, get referrals from people they trust and always work with contractors who are registered to do home improvement work in Connecticut.
All home improvement contractors and salespersons working in Connecticut are required by state law to register annually with the Department of Consumer Protection and the agency keeps a public roster of licensees. A portion of each registration fee is allocated to the Home Improvement Guaranty Fund, a pool of money administered by DCP which is used to help satisfy an unpaid court judgment to a homeowner.
Consumers may be eligible for up to $15,000 per contract from the fund if they experience a home improvement problem that meets certain criteria. The Guaranty Fund can cover actual damages, court costs and attorneys’ fees as ordered in a court judgment, up to $15,000.
Here are some of the parameters:
• The contractor must have been registered with the Department of Consumer Protection at the time the consumer signed their contract, within two years before the contract was signed OR at the time of the court judgment against the contractor.
• The contract must have been for work on residential property (single or multifamily dwellings of six units or less, or condos or cooperatives).
• The total price of the work involved must have been more than $200.
• The consumer must apply to the fund within two years after receiving the court judgment.
More information and applications are available on the Department of Consumer Protection's website or by calling 1-800-842-2649.
Wednesday, November 17, 2010
IRS holding $1.53 million in undelivered refund checks to CT taxpayers
The Internal Revenue Service is looking for 1,013 Connecticut taxpayers who have not yet claimed their share of undelivered refund checks totaling $1.53 million.
These undelivered refund checks were returned to the IRS by the U.S. Postal Service due to mailing address errors. The IRS can reissue the checks, which average $1,517, after taxpayers correct or update their addresses with the IRS.
Nationally, there are 111,893 taxpayers with undelivered refunds, totaling $164.6 million with an average refund of $1,471.
“We want to make sure taxpayers get the money owed to them,” IRS Commissioner Doug Shulman said in a statement. “If you think you are missing a refund, the sooner you update your address information, the quicker you can get your money.”
Gregg Semanick, the IRS Connecticut spokesperson, said taxpayers only need to update the information once for the IRS to send out all checks that are due. “Some taxpayers are due more than one check,” Semanick said.
Nationwide, undelivered refund checks average $1,471 this year, compared to $1,148 last year. The average dollar amount for returned refunds rose by 28 percent this year, possibly due to recent changes in tax law which introduced new credits or expanded existing credits, such as the Earned Income Tax Credit.
Taxpayers can generally update their addresses with the online “Where’s My Refund?” tool, where they also can check the status of refunds.
A taxpayer must submit his or her Social Security number, filing status and amount of refund shown on their 2009 return.
Those checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.
While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Taxpayers can receive refunds directly into their bank, split a tax refund into two or three financial accounts or even buy a savings bond.
These undelivered refund checks were returned to the IRS by the U.S. Postal Service due to mailing address errors. The IRS can reissue the checks, which average $1,517, after taxpayers correct or update their addresses with the IRS.
Nationally, there are 111,893 taxpayers with undelivered refunds, totaling $164.6 million with an average refund of $1,471.
“We want to make sure taxpayers get the money owed to them,” IRS Commissioner Doug Shulman said in a statement. “If you think you are missing a refund, the sooner you update your address information, the quicker you can get your money.”
Gregg Semanick, the IRS Connecticut spokesperson, said taxpayers only need to update the information once for the IRS to send out all checks that are due. “Some taxpayers are due more than one check,” Semanick said.
Nationwide, undelivered refund checks average $1,471 this year, compared to $1,148 last year. The average dollar amount for returned refunds rose by 28 percent this year, possibly due to recent changes in tax law which introduced new credits or expanded existing credits, such as the Earned Income Tax Credit.
Taxpayers can generally update their addresses with the online “Where’s My Refund?” tool, where they also can check the status of refunds.
A taxpayer must submit his or her Social Security number, filing status and amount of refund shown on their 2009 return.
Those checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.
While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Taxpayers can receive refunds directly into their bank, split a tax refund into two or three financial accounts or even buy a savings bond.
Thursday, October 21, 2010
Foxwoods turns over $15.1 million to state of CT
MASHANTUCKET, CT – Foxwoods Resort Casino and MGM Grand at Foxwoods reported slot revenue of $56.1 million for the state of September to the state Division of Special Revenue.
Casino officials said that amount represents an increase of 2.1 percent in slot win and 4.1 percent in total slot handle ompared to September of 2009. The Mashantucket Pequot Tribal Nation, the casino’s owner, also reported a $15.1 million payment to the state of Connecticut for September 2010.
Last month's contribution increases the total dollar amount given to the state to approximately $3.08 billion since January 1993, when slot machines were first introduced at Foxwoods.
"While we are pleased with September’s results, we remain keenly aware of the sluggish economy and will continue to focus on new initiatives that keep visitation strong," Mashantucket Pequot Gaming Enterprises (MPGE) President William Sherlock said in a statement. "We keep customers coming through our doors by providing them with an unparalleled entertainment experience and offering signature events that appeal to a broad audience, such as our annual Foxwoods Food & Wine Festival."
This fall the Fourth Annual Foxwoods Food & Wine Festival will run from Nov. 5 to 7, featuring nationally-acclaimed chefs from Foxwoods and Craftsteak chef/owner Tom Colicchio; Michael Schlow of Alta Strada; Paragon's Scott Mickelson; David Burke Prime's David Burke; and Foxwoods' Franck Iglesias.
There will be a variety of culinary events, from book signings to cooking demonstrations, epicurean seminars to cocktail receptions, as well as luncheons, tastings, and celebrity chef dinners.
For more information, call 1-800-FOXWOODS or visit http://www.foxwoods.com/.
Casino officials said that amount represents an increase of 2.1 percent in slot win and 4.1 percent in total slot handle ompared to September of 2009. The Mashantucket Pequot Tribal Nation, the casino’s owner, also reported a $15.1 million payment to the state of Connecticut for September 2010.
Last month's contribution increases the total dollar amount given to the state to approximately $3.08 billion since January 1993, when slot machines were first introduced at Foxwoods.
"While we are pleased with September’s results, we remain keenly aware of the sluggish economy and will continue to focus on new initiatives that keep visitation strong," Mashantucket Pequot Gaming Enterprises (MPGE) President William Sherlock said in a statement. "We keep customers coming through our doors by providing them with an unparalleled entertainment experience and offering signature events that appeal to a broad audience, such as our annual Foxwoods Food & Wine Festival."
This fall the Fourth Annual Foxwoods Food & Wine Festival will run from Nov. 5 to 7, featuring nationally-acclaimed chefs from Foxwoods and Craftsteak chef/owner Tom Colicchio; Michael Schlow of Alta Strada; Paragon's Scott Mickelson; David Burke Prime's David Burke; and Foxwoods' Franck Iglesias.
There will be a variety of culinary events, from book signings to cooking demonstrations, epicurean seminars to cocktail receptions, as well as luncheons, tastings, and celebrity chef dinners.
For more information, call 1-800-FOXWOODS or visit http://www.foxwoods.com/.
Friday, June 18, 2010
Personal income up in Connecticut and most states
State personal income growth across the nation averaged 0.9 percent in the first quarter of 2010, up from 0.5 percent in the fourth quarter of 2009, according to estimates released today by the U.S. Bureau of Economic Analysis (BEA).
Personal income is the income received by all persons from all sources and is measured before taxes are deducted.
Nationally, personal income grew to $12.1 trillion in the first quarter this year, compared to a 2.3 percent decline to $11.9 trillion in the first quarter of 2009.
In Connecticut, personal income grew by 0.6 percent to $193 billion, compared to a 3.6 percent decline to $189.9 billion in the first quarter a year ago.
Use this BEA spreadsheet to find your state.
It declined last quarter in all but two states with growth ranging from 1.6 percent in Mississippi to –2.0 percent in North Dakota. Inflation declined to 0.4 percent in the first quarter from 0.6 percent in the fourth quarter of 2009.
Turning to property income, that fell 0.4 percent nationally in the first quarter as declines in dividends offset rises in interest and rental income. Property income fell the most in Wyoming, 1.2 percent, reflecting the relatively high share of dividends in that state's property income, while rising by 1 percent in Louisiana, boosted by an increase in homeowner assistance payments related to Hurricane Katrina.
Property income is rental income of persons, personal dividend income, and personal interest income
The BEA said the industry making the largest contribution to first-quarter personal income growth nationally was health care. The administrative and waste management industry and the military made the next largest contributions. Members of the military received a 3.4 percent pay raise in the first quarter but federal civilian workers received an average 2.0 percent increase.
Construction and real estate earnings continued to fall, the quarterly report said.
Personal income is the income received by all persons from all sources and is measured before taxes are deducted.
Nationally, personal income grew to $12.1 trillion in the first quarter this year, compared to a 2.3 percent decline to $11.9 trillion in the first quarter of 2009.
In Connecticut, personal income grew by 0.6 percent to $193 billion, compared to a 3.6 percent decline to $189.9 billion in the first quarter a year ago.
Use this BEA spreadsheet to find your state.
It declined last quarter in all but two states with growth ranging from 1.6 percent in Mississippi to –2.0 percent in North Dakota. Inflation declined to 0.4 percent in the first quarter from 0.6 percent in the fourth quarter of 2009.
Turning to property income, that fell 0.4 percent nationally in the first quarter as declines in dividends offset rises in interest and rental income. Property income fell the most in Wyoming, 1.2 percent, reflecting the relatively high share of dividends in that state's property income, while rising by 1 percent in Louisiana, boosted by an increase in homeowner assistance payments related to Hurricane Katrina.
Property income is rental income of persons, personal dividend income, and personal interest income
The BEA said the industry making the largest contribution to first-quarter personal income growth nationally was health care. The administrative and waste management industry and the military made the next largest contributions. Members of the military received a 3.4 percent pay raise in the first quarter but federal civilian workers received an average 2.0 percent increase.
Construction and real estate earnings continued to fall, the quarterly report said.
Wednesday, April 28, 2010
CT House passes bill banning dormancy fees
State Rep. Ryan Barry (D-Manchester), House Chairman of the legislature’s Banks Committee, says HB 5045 would prohibit a financial institution from imposing a dormancy fee on an inactive deposit account for which periodic statements are not provided if the primary account holder has another active account with them.
It now goes to the state Senate, where it died last year.
“This bill protects all consumers, and in particular senior citizens who have fixed incomes,” Barry said. “If a customer has at least one active account with a bank, the bank should not charge an inactive account fee on another account that the customer maintains with the bank. This is only fair to the customer and certainly not burdensome on a bank.”
It is not unusual for senior citizens to have two or more passbook accounts and be subject to dormancy fees of up to $25 for each of their accounts, he said.
To avoid dormancy fees, the customer must be the primary account holder on a second account maintained primarily for personal, family, or household purposes. The account must also be currently filed in the institution's records for tax reporting purposes.
If signed into law by the governor, the provisions would take effect Oct. 1.
It now goes to the state Senate, where it died last year.
“This bill protects all consumers, and in particular senior citizens who have fixed incomes,” Barry said. “If a customer has at least one active account with a bank, the bank should not charge an inactive account fee on another account that the customer maintains with the bank. This is only fair to the customer and certainly not burdensome on a bank.”
It is not unusual for senior citizens to have two or more passbook accounts and be subject to dormancy fees of up to $25 for each of their accounts, he said.
To avoid dormancy fees, the customer must be the primary account holder on a second account maintained primarily for personal, family, or household purposes. The account must also be currently filed in the institution's records for tax reporting purposes.
If signed into law by the governor, the provisions would take effect Oct. 1.
Friday, April 16, 2010
CT Secretary of the State: Fewer businesses closing
Secretary of the State Susan Bysiewicz Friday said there was a nearly 17 percent decline in the number of businesses that closed in Connecticut during the first quarter of 2010, compared to the same period in 2009.
The number of new businesses starting up in CT was lower during the first quarter by 0.8 percent, compared to the first quarter a year ago. Bysiewicz's office releases quarterly reports based on monthly totals of business starts and stops around the state.
For the quarter, 2,961 businesses filed paperwork to dissolve their companies, 17.4 percent lower than the 3,477 that filed during the first quarter of 2009.
There were 6,894 new business starts during the first quarter, compared to 6,941 in the same period last year.
The numbers are far from ideal, she said, but they do show "signs of hope that the recession has eased" and the business climate may be improving.
"The numbers recorded for the first quarter of 2010 are encouraging and show that more Connecticut businesses have been able to prosper and avoid shutting down," said Bysiewicz, who serves as the state's chief business registrar. "We are still not seeing the number of new business start-ups we want to see but that, too, is improving. It is my sincere hope that the sharp decline in business closures will also be reflected in a reduction in Connecticut's unemployment rate in the coming months."
The number of new businesses starting up in CT was lower during the first quarter by 0.8 percent, compared to the first quarter a year ago. Bysiewicz's office releases quarterly reports based on monthly totals of business starts and stops around the state.
For the quarter, 2,961 businesses filed paperwork to dissolve their companies, 17.4 percent lower than the 3,477 that filed during the first quarter of 2009.
There were 6,894 new business starts during the first quarter, compared to 6,941 in the same period last year.
The numbers are far from ideal, she said, but they do show "signs of hope that the recession has eased" and the business climate may be improving.
"The numbers recorded for the first quarter of 2010 are encouraging and show that more Connecticut businesses have been able to prosper and avoid shutting down," said Bysiewicz, who serves as the state's chief business registrar. "We are still not seeing the number of new business start-ups we want to see but that, too, is improving. It is my sincere hope that the sharp decline in business closures will also be reflected in a reduction in Connecticut's unemployment rate in the coming months."
Friday, March 26, 2010
Forum in Hartford, CT on gender rating in the health insurance market
WHAT: Informational Forum on Gender Discrimination in the Health Insurance Market
WHEN: Tuesday, March 30; 1:00 p.m.
WHERE: Legislative Office Building, Hartford , Room 2D
WHO: This forum is being organized by the Insurance and Real Estate Committee, and is sponsored by the Permanent Commission on the Status of Women (PCSW), Connecticut Women’s Education and Legal Fund (CWEALF), and Citizens for Economic Opportunity. Speakers will include representatives of the National Women’s Law Center, based in Washington, D.C. and Jamie Stirling, CEO of Stirling Benefits of Milford, CT.
WHY: Women are paying up to 30% more for health insurance than men simply because of their gender. The presentation will include how the federal health care reform bill will affect the gender rating used by health insurance companies.
WHEN: Tuesday, March 30; 1:00 p.m.
WHERE: Legislative Office Building, Hartford , Room 2D
WHO: This forum is being organized by the Insurance and Real Estate Committee, and is sponsored by the Permanent Commission on the Status of Women (PCSW), Connecticut Women’s Education and Legal Fund (CWEALF), and Citizens for Economic Opportunity. Speakers will include representatives of the National Women’s Law Center, based in Washington, D.C. and Jamie Stirling, CEO of Stirling Benefits of Milford, CT.
WHY: Women are paying up to 30% more for health insurance than men simply because of their gender. The presentation will include how the federal health care reform bill will affect the gender rating used by health insurance companies.
Wednesday, November 4, 2009
U.S. Senate Votes to Expand Homebuyer's Tax Credit and Extend Unemployment Benefits
U.S. Sen. Christopher Dodd's office announced late Wednesday that the Senate passed legislation to extend the $8,000 tax credit for first-time homebuyers and create a $6,500 tax credit for so-called "move-up" buyers who purchase before April 30, 2010.
Qualifying move-up buyers are those who already own a home that has been their principal residence for 5 years or more; are 18 years or older; have incomes of up to $125,000 for an individual tax return or $225,000 for a joint return. The homes must cost less than $800,000 and homebuyers with binding contracts as of April 30 will also qualify for the credit if they complete the transaction within 60 days.
Dodd, a Democrat representing Connecticut, was an original co-sponsor of the bill, which would provide 14 additional weeks of jobless benefits for Connecticut workers.
"This is a double victory for families in Connecticut," Dodd said. "Extending unemployment insurance benefits will help Connecticut families make ends meet in a tough economy. And thousands more middle class Connecticut residents may now be eligible to take advantage of the successful homebuyer's tax credit. By helping unemployed workers keep from falling further behind, and helping middle class families get ahead, we're taking positive steps to get our economy back on track."
Dodd was joined in announcing the Senate action by U.S. Sen. Johnny Isakson (R-GA) .
Members of the military, military intelligence, and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.
Qualifying move-up buyers are those who already own a home that has been their principal residence for 5 years or more; are 18 years or older; have incomes of up to $125,000 for an individual tax return or $225,000 for a joint return. The homes must cost less than $800,000 and homebuyers with binding contracts as of April 30 will also qualify for the credit if they complete the transaction within 60 days.
Dodd, a Democrat representing Connecticut, was an original co-sponsor of the bill, which would provide 14 additional weeks of jobless benefits for Connecticut workers.
"This is a double victory for families in Connecticut," Dodd said. "Extending unemployment insurance benefits will help Connecticut families make ends meet in a tough economy. And thousands more middle class Connecticut residents may now be eligible to take advantage of the successful homebuyer's tax credit. By helping unemployed workers keep from falling further behind, and helping middle class families get ahead, we're taking positive steps to get our economy back on track."
Dodd was joined in announcing the Senate action by U.S. Sen. Johnny Isakson (R-GA) .
Members of the military, military intelligence, and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.
Sunday, August 16, 2009
Ten Tips for Renters
Leases are rental agreements that outline the rights and responsibilities of both the property owner and the tenant. A lease can cover an apartment or a house.
If you are searching for a rental unit, be sure to read the lease carefully and ask questions about any clauses that you do not understand.
Make sure the landlord gives you a signed copy for your records and store it someplace you will remember, that way you can refer to it whenever necessary.
There are both federal and state laws that protect tenants’ interests. The use of security deposits is regulated at the state level. Here in Connecticut, landlords can not require a security deposit any greater than two months’ rent, which can be in addition to rent for the month of move in.
When it comes to tenants age 62 or older, landlords may not demand more than one months’ rent, which can be in addition to rent for the month of move in, under Connecticut law.
Connecticut landlord/tenant law can be found on the Judicial Branch's Web site.
For a state-by-state directory of landlord/tenant law visit the U.S. Department of Housing and Urban Development (HUD).
Here are 10 Tips for Renters, courtesy of the Federal Citizen Information Center:
1. Be prepared to provide a prospective landlord with written references from previous landlords, employers, friends and colleagues; and have a current copy of your credit report with you.
2. Carefully review all the important conditions of the tenancy before you sign a lease.
3. To avoid disputes or misunderstandings with the landlord, get terms and conditions in writing.
4. Ask about your privacy rights before you sign the lease.
5. Know your rights to live in a habitable rental unit – and don’t give them up.
6. Keep communication open with your landlord.
7. Purchase renters’ insurance to cover your valuables.
8. Make sure the security deposit refund procedures are spelled out in your lease or rental agreement.
9. Learn whether your building and neighborhood are safe and what you can expect your landlord to do about it if they aren't.
10. Know when to fight an eviction notice and know when to move. Unless you have the law and provable facts on your side, fighting an eviction notice is usually shortsighted.
Thursday, July 9, 2009
Interest-ing
Credit Card Interest Rates Rising Ahead of Rule Changes
There are about six weeks left before some provisions of the new Credit Card Accountability, Responsibility and Disclosure (CARD) Act go into effect. The federal legislation was sponsored by U.S. Sen. Christopher Dodd, D-Conn., and signed by President Barack Obama in May.
One of the key regulations to kick in Aug. 20 applies to interest rate hikes. Credit card issuers will then be required to give consumers 45 days notice before going up on rates, a substantial increase from the 15 days required now.
Bill Hardekopf, chief executive officer of Lowcards.com, said the 45-day mandate will give approximately two cycles' worth of time for consumers to shop around and change cards if they desire.
This may be small comfort to the many cardholders who have experienced interest rate hikes over the past year, as issuers seem to be raising rates before new rules are implemented, he said.
"Issuers realized that change was coming and they have raised rates, cut limits and changed practices quickly and frequently in advance of the regulations going into effect, just as they said they would do," said Hardekopf, also author of The Credit Card Guidebook.
As of Aug. 20, credit card companies also must start mailing or delivering periodic statements 21 days or more before the payment due date in order to charge a late fee.
Lowcards.com reviewed some of the practices that credit card companies have initiated in advance of the new law.
One of the "harshest" changes reported by Lowcards.com was recently announced by JP Morgan Chase, increasing the minimum payment percentage from 2% to 5% for some cardholders, which more than doubles their monthly payment.
For example, if the balance is $8,000, then the minimum payment at 2% is $160. The payment jumps to $400 at 5%.
While a higher minimum payment forces cardholders to pay off their debt faster and thus saves them money in the long run, this increase could make the minimum payment unaffordable for some consumers and could damage their credit scores.
"If this is effective and reduces risk for one issuer, expect other issuers to follow," Hardekopf said.
Dodd, who is chairman of the Senate Banking Committee, on Thursday sent a letter to the heads of key regulatory agencies directing them to write and enforce robust rules requiring credit card companies to review rate increases imposed on their customers since January 1st of this year.
Most of the provisions of the CARD Act take effect after Jan. 1, 2010. Among other changes, the law bans practices such as universal default and sets parameters on the issuance of cards to college students.
Here are some other changes, already implemented by card companies, noted by Lowcards.com:
* Simmons Visa Platinum is moving from a fixed rate to a variable rate. The current annual percentage rate or APR will remain at 7.25%, but it will now be variable. In addition, Simmons is moving from an 8.95% fixed rate to a 9.25% variable rate. Both changes take effect today, July 10.
* IberiaBank has received attention for having one of the lowest rates available. However, the bank raised its low rate from 6.25% to 8.25%, effective June 26.
* Bank of America increased the balance transfer fee from 3% to 4% on June 1.
* Chase increased its balance transfer fee and cash advance fee to 5% effective in August. Both fees are the highest in the industry.
* Both Bank of America and Chase announced that they will be moving a number of their cards from fixed rates to variable rates.
* At the beginning of June, Chase restructured its rewards program. It launched the Ultimate Rewards, a program where cardholders earn one point per $1 spent, with no earnings cap or expiration date.
This will replace versions of its Freedom card, some of which have offered more generous cash-back rewards and bonus opportunities. The Freedom cardholders who want to keep a fixed 3% bonus for spending in grocery, gas and fast-food categories, will pay a $30 annual fee for the card.
Click "comments" below to share your thoughts on this post.
There are about six weeks left before some provisions of the new Credit Card Accountability, Responsibility and Disclosure (CARD) Act go into effect. The federal legislation was sponsored by U.S. Sen. Christopher Dodd, D-Conn., and signed by President Barack Obama in May.
One of the key regulations to kick in Aug. 20 applies to interest rate hikes. Credit card issuers will then be required to give consumers 45 days notice before going up on rates, a substantial increase from the 15 days required now.
Bill Hardekopf, chief executive officer of Lowcards.com, said the 45-day mandate will give approximately two cycles' worth of time for consumers to shop around and change cards if they desire.
This may be small comfort to the many cardholders who have experienced interest rate hikes over the past year, as issuers seem to be raising rates before new rules are implemented, he said.
"Issuers realized that change was coming and they have raised rates, cut limits and changed practices quickly and frequently in advance of the regulations going into effect, just as they said they would do," said Hardekopf, also author of The Credit Card Guidebook.
As of Aug. 20, credit card companies also must start mailing or delivering periodic statements 21 days or more before the payment due date in order to charge a late fee.
Lowcards.com reviewed some of the practices that credit card companies have initiated in advance of the new law.
One of the "harshest" changes reported by Lowcards.com was recently announced by JP Morgan Chase, increasing the minimum payment percentage from 2% to 5% for some cardholders, which more than doubles their monthly payment.
For example, if the balance is $8,000, then the minimum payment at 2% is $160. The payment jumps to $400 at 5%.
While a higher minimum payment forces cardholders to pay off their debt faster and thus saves them money in the long run, this increase could make the minimum payment unaffordable for some consumers and could damage their credit scores.
"If this is effective and reduces risk for one issuer, expect other issuers to follow," Hardekopf said.
Dodd, who is chairman of the Senate Banking Committee, on Thursday sent a letter to the heads of key regulatory agencies directing them to write and enforce robust rules requiring credit card companies to review rate increases imposed on their customers since January 1st of this year.
Most of the provisions of the CARD Act take effect after Jan. 1, 2010. Among other changes, the law bans practices such as universal default and sets parameters on the issuance of cards to college students.
Here are some other changes, already implemented by card companies, noted by Lowcards.com:
* Simmons Visa Platinum is moving from a fixed rate to a variable rate. The current annual percentage rate or APR will remain at 7.25%, but it will now be variable. In addition, Simmons is moving from an 8.95% fixed rate to a 9.25% variable rate. Both changes take effect today, July 10.
* IberiaBank has received attention for having one of the lowest rates available. However, the bank raised its low rate from 6.25% to 8.25%, effective June 26.
* Bank of America increased the balance transfer fee from 3% to 4% on June 1.
* Chase increased its balance transfer fee and cash advance fee to 5% effective in August. Both fees are the highest in the industry.
* Both Bank of America and Chase announced that they will be moving a number of their cards from fixed rates to variable rates.
* At the beginning of June, Chase restructured its rewards program. It launched the Ultimate Rewards, a program where cardholders earn one point per $1 spent, with no earnings cap or expiration date.
This will replace versions of its Freedom card, some of which have offered more generous cash-back rewards and bonus opportunities. The Freedom cardholders who want to keep a fixed 3% bonus for spending in grocery, gas and fast-food categories, will pay a $30 annual fee for the card.
Click "comments" below to share your thoughts on this post.
Wednesday, July 8, 2009
A New Way to Get 'Carded'
Connecticut Restricts Credit Card Marketing to College Students
Connecticut Gov. M. Jodi Rell Wednesday announced her signing of a bill that regulates credit card marketing on campuses to college students and restricts debt collection actions that can be taken by credit card companies against parents.
Rell said the new law sets strict parameters on when, where and how credit card companies may attempt to attract young adult cardholders. “Students are already burdened with education loans by the time they leave college. They risk taking on even more financial pressure when they give in to the lure of credit cards made available to them right on campus,” the governor said.
The move was lauded by state Rep. Ryan Barry, D-Manchester, House chairman of the General Assembly's Banks Committee and a sponsor of the legislation.
“College students are targeted by credit card companies because they are easy prey and active consumers. Since college students are generally new to managing debt obligations, spending can easily get out of hand and cause serious future credit rating problems,” Barry said.
House Bill 6483, An Act Concerning Credit Card Offers on College Campuses requires the Boards of Governors of Higher Education to adopt a policy, on or before Jan. 1, 2010, requiring credit card companies to register with colleges and universities before conducting any business on campus.
Provisions of the law:
· Prohibit credit card companies from marketing during orientation and class registration periods;
· Require companies to distribute credit care management education materials along with marketing information;
· Prohibit companies from offering gifts and incentives at athletics events as part of their marketing strategy;
· Prohibit colleges and universities from selling student names and addresses to credit card companies.
It also bans credit card companies from trying to collect a student’s debt from his or her parent unless the parent agrees in writing to be liable for the debt.
“Connecticut is leading the charge against unfair and deceptive credit card practices,” said U.S. Sen. Christopher Dodd, D-Conn. “These strict regulations, coupled with the tough new protections against predatory practices established by the Credit CARD Act, will go a long way towards ensuring that Connecticut college students don’t fall prey to the tricks and traps of credit card companies.”
Dodd sponsored federal legislation - the Credit Card Accountability, Responsibility and Disclosure Act - which President Barack Obama signed into law in May.
Susan Bruno, a certified public accountant and principal of Beacon Wealth Consulting LLC in Norwalk, Conn., said she has a daughter in college and believes it is a good idea for students to build a credit history responsibly.
"Credit cards have caused a sense of over-spending because it's so easy," she said.
Parents would be in a better position to teach their children financial literacy and help protect their children's credit scores if they can have access to credit card account activity, Bruno said.
"There is a question of privacy. Similarly to transcripts, we pay the tuition bills, but we don't get to see the grades. We have to ask her to show that to us," Bruno said. "How can we teach financial literacy if we don't know what's going on? You can't."
The American Bankers Association, an industry group that represents credit card issuers, said that as a co-signer, a parent would not be able to receive copies of monthly statements. But joint accounts allow both the primary cardholder (i.e. the student) and the co-signer (i.e. parent or guardian) to access the account, including online.
Joint borrowers usually designate who would receive statements, the ABA said.
The federal CARD Act bans universal default, double-cycle billing, retroactive rate increases unless the cardholder is delinquent by 60 days or more and over-the-limit fees unless the cardholder chooses to exceed the limit. It also requires credit card companies to post their card agreements online and mandates notice of 45 days before rate increases are imposed.
Anyone under 21 must show proof of ability to repay the debt before getting a card or complete a certified financial literacy course.
Card issuers also are prohibited from charging customers a fee for paying a bill by telephone or Internet.
Coming tomorrow: Some provisions of the CARD Act go into effect next month.
Connecticut Gov. M. Jodi Rell Wednesday announced her signing of a bill that regulates credit card marketing on campuses to college students and restricts debt collection actions that can be taken by credit card companies against parents.
Rell said the new law sets strict parameters on when, where and how credit card companies may attempt to attract young adult cardholders. “Students are already burdened with education loans by the time they leave college. They risk taking on even more financial pressure when they give in to the lure of credit cards made available to them right on campus,” the governor said.
The move was lauded by state Rep. Ryan Barry, D-Manchester, House chairman of the General Assembly's Banks Committee and a sponsor of the legislation.
“College students are targeted by credit card companies because they are easy prey and active consumers. Since college students are generally new to managing debt obligations, spending can easily get out of hand and cause serious future credit rating problems,” Barry said.
House Bill 6483, An Act Concerning Credit Card Offers on College Campuses requires the Boards of Governors of Higher Education to adopt a policy, on or before Jan. 1, 2010, requiring credit card companies to register with colleges and universities before conducting any business on campus.
Provisions of the law:
· Prohibit credit card companies from marketing during orientation and class registration periods;
· Require companies to distribute credit care management education materials along with marketing information;
· Prohibit companies from offering gifts and incentives at athletics events as part of their marketing strategy;
· Prohibit colleges and universities from selling student names and addresses to credit card companies.
It also bans credit card companies from trying to collect a student’s debt from his or her parent unless the parent agrees in writing to be liable for the debt.
“Connecticut is leading the charge against unfair and deceptive credit card practices,” said U.S. Sen. Christopher Dodd, D-Conn. “These strict regulations, coupled with the tough new protections against predatory practices established by the Credit CARD Act, will go a long way towards ensuring that Connecticut college students don’t fall prey to the tricks and traps of credit card companies.”
Dodd sponsored federal legislation - the Credit Card Accountability, Responsibility and Disclosure Act - which President Barack Obama signed into law in May.
Susan Bruno, a certified public accountant and principal of Beacon Wealth Consulting LLC in Norwalk, Conn., said she has a daughter in college and believes it is a good idea for students to build a credit history responsibly.
"Credit cards have caused a sense of over-spending because it's so easy," she said.
Parents would be in a better position to teach their children financial literacy and help protect their children's credit scores if they can have access to credit card account activity, Bruno said.
"There is a question of privacy. Similarly to transcripts, we pay the tuition bills, but we don't get to see the grades. We have to ask her to show that to us," Bruno said. "How can we teach financial literacy if we don't know what's going on? You can't."
The American Bankers Association, an industry group that represents credit card issuers, said that as a co-signer, a parent would not be able to receive copies of monthly statements. But joint accounts allow both the primary cardholder (i.e. the student) and the co-signer (i.e. parent or guardian) to access the account, including online.
Joint borrowers usually designate who would receive statements, the ABA said.
The federal CARD Act bans universal default, double-cycle billing, retroactive rate increases unless the cardholder is delinquent by 60 days or more and over-the-limit fees unless the cardholder chooses to exceed the limit. It also requires credit card companies to post their card agreements online and mandates notice of 45 days before rate increases are imposed.
Anyone under 21 must show proof of ability to repay the debt before getting a card or complete a certified financial literacy course.
Card issuers also are prohibited from charging customers a fee for paying a bill by telephone or Internet.
Coming tomorrow: Some provisions of the CARD Act go into effect next month.
Monday, July 6, 2009
Credit Defaults: Don't Wait -- Negotiate
Credit card default rates are now above 10 percent for several major issuers, meaning some banks might not get paid back on more than 10 percent of their credit card loans, which are unsecured.
To cut their losses, issuers have been be more willing to negotiate a payment plan or settle accounts with card holders.
"While settlement and payment plans may relieve a bit of the pain for issuers and cardholders, this is not an ideal solution. It is merely a way out to avoid total loss. For cardholders, it means their financial situation is so difficult that they can't pay anything on their loans," said Bill Hardekopf, CEO of Lowcards.com and author of The Credit Card Guidebook.
"They probably already have a poor credit score and settling their debt could make it worse, but it does remove some of the weight from the burden of the debt. For issuers, they are losing money on loans, but at least it isn't a total loss," he said.
LowCards.com simplifies your shopping for credit cards. It is a free, independent Web site that helps consumers compare credit cards across a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card.
Hardekopf said cardholders struggling to meet payments should be proactive and try to work out a solution that avoids more serious financial problems.
Bank of America, the largest bank in the U.S., reported that its default rate jumped to 12.5 percent in May, up from 10.5 percent in April. American Express said its default rate rose to 10.4 percent from 9.9 percent.
Defaults are expected to climb as the recession lingers.
That trend is troublesome for card issuers, Hardekopf said, because they have to write the balance down to zero once a person has been delinquent for six months. They may continue to try to collect the debt through a collection agency, but they must post the loss on their books.
If you are having financial difficulties and can't make your credit card payments, now is the time to contact your issuer, explain your situation and work out a payment plan, he said.
Here are some steps to consider:
*Start with trying to adjust interest rates and fees.
If you can make some monthly payment, ask the issuer to lower your rate and waive your fees. That could make a big difference in how much of your debt gets paid off. If you are in danger of missing a payment, contact your creditors as soon as you realize you have a problem.
The sooner you contact them, the more willing they may be to work with you. If the first person you speak with can't help lower your rate or make adjustments to your account, ask to speak with a supervisor. Document all conversations, including whom you spoke with, the date, time, and the results.
Remember: persistence, persistence, persistence.
*If you are already in default, DON'T ignore the problem and hope it goes away.
A good place to start is "Help With My Credit," a service started by financial institutions and credit card issuers to educate and assist cardholders who are struggling to make their credit card payments. The service can be reached toll free at 1 (866) 941-1030.
Operators will provide information about contacting credit card issuers and accredited credit counseling agencies. Consumers can also get help and information through a website, HelpWithMyCredit.org.
*If you are close to or over 90 days past due on your account with no hope of paying it off, talk directly with your credit card issuer about debt settlement.
Credit card companies might be able work out a settlement whereby the account is closed and you pay a portion of the amount that is due.
Keep in mind that there are negatives to arranging a settlement for debt. Closing an account due to settlement will affect your credit score for several years.
Also, income taxes must be paid on any forgiven debt greater than $600. You would need to file Form 1099-C with the IRS.
*Do not respond to ads from debt settlement companies promising to cut your debt in half.
They charge high fees, much of it due up front, for services that you can sometimes do yourself with about the same success. In some cases, scammers have disappeared with the funds, making the situation worse.
A non-profit accredited counseling agency can help you get lower interest rates and develop a debt management plan. The National Foundation of Credit Counselors is a good place to start, Hardekopf said.
The foundation has a Debt Management Plan for paying down outstanding balances through monthly deposits to a credit counseling agency, which would then distribute the funds to creditors.
It takes approximately 36 to 60 months to repay debts through such a plan, but once finished, it can help re-establish a positive credit history. Fees include a $25 counseling fee and a $10 to $25 monthly fee for administering the plan.
To cut their losses, issuers have been be more willing to negotiate a payment plan or settle accounts with card holders.
"While settlement and payment plans may relieve a bit of the pain for issuers and cardholders, this is not an ideal solution. It is merely a way out to avoid total loss. For cardholders, it means their financial situation is so difficult that they can't pay anything on their loans," said Bill Hardekopf, CEO of Lowcards.com and author of The Credit Card Guidebook.
"They probably already have a poor credit score and settling their debt could make it worse, but it does remove some of the weight from the burden of the debt. For issuers, they are losing money on loans, but at least it isn't a total loss," he said.
LowCards.com simplifies your shopping for credit cards. It is a free, independent Web site that helps consumers compare credit cards across a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates. It also gives an unbiased ranking and review for each card.
Hardekopf said cardholders struggling to meet payments should be proactive and try to work out a solution that avoids more serious financial problems.
Bank of America, the largest bank in the U.S., reported that its default rate jumped to 12.5 percent in May, up from 10.5 percent in April. American Express said its default rate rose to 10.4 percent from 9.9 percent.
Defaults are expected to climb as the recession lingers.
That trend is troublesome for card issuers, Hardekopf said, because they have to write the balance down to zero once a person has been delinquent for six months. They may continue to try to collect the debt through a collection agency, but they must post the loss on their books.
If you are having financial difficulties and can't make your credit card payments, now is the time to contact your issuer, explain your situation and work out a payment plan, he said.
Here are some steps to consider:
*Start with trying to adjust interest rates and fees.
If you can make some monthly payment, ask the issuer to lower your rate and waive your fees. That could make a big difference in how much of your debt gets paid off. If you are in danger of missing a payment, contact your creditors as soon as you realize you have a problem.
The sooner you contact them, the more willing they may be to work with you. If the first person you speak with can't help lower your rate or make adjustments to your account, ask to speak with a supervisor. Document all conversations, including whom you spoke with, the date, time, and the results.
Remember: persistence, persistence, persistence.
*If you are already in default, DON'T ignore the problem and hope it goes away.
A good place to start is "Help With My Credit," a service started by financial institutions and credit card issuers to educate and assist cardholders who are struggling to make their credit card payments. The service can be reached toll free at 1 (866) 941-1030.
Operators will provide information about contacting credit card issuers and accredited credit counseling agencies. Consumers can also get help and information through a website, HelpWithMyCredit.org.
*If you are close to or over 90 days past due on your account with no hope of paying it off, talk directly with your credit card issuer about debt settlement.
Credit card companies might be able work out a settlement whereby the account is closed and you pay a portion of the amount that is due.
Keep in mind that there are negatives to arranging a settlement for debt. Closing an account due to settlement will affect your credit score for several years.
Also, income taxes must be paid on any forgiven debt greater than $600. You would need to file Form 1099-C with the IRS.
*Do not respond to ads from debt settlement companies promising to cut your debt in half.
They charge high fees, much of it due up front, for services that you can sometimes do yourself with about the same success. In some cases, scammers have disappeared with the funds, making the situation worse.
A non-profit accredited counseling agency can help you get lower interest rates and develop a debt management plan. The National Foundation of Credit Counselors is a good place to start, Hardekopf said.
The foundation has a Debt Management Plan for paying down outstanding balances through monthly deposits to a credit counseling agency, which would then distribute the funds to creditors.
It takes approximately 36 to 60 months to repay debts through such a plan, but once finished, it can help re-establish a positive credit history. Fees include a $25 counseling fee and a $10 to $25 monthly fee for administering the plan.
Subscribe to:
Posts (Atom)