Protecting your self against high fees, scams and outright fraud Presented by The Coalition for Debtor Education Chris Muy.

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Presentation transcript:

Protecting your self against high fees, scams and outright fraud Presented by The Coalition for Debtor Education Chris Muy

Your money can DRAIN away fast

or it could leak away….

Stop the major drains first

The Coalition for Debtor Education Rent-a Centers Pay Day Loans Rapid Refunds Debt Consolidators Avoiding Scams and Money Traps

Rent to Own

Payday Loans

Payday Lending Short term loans made between paydays: 1. Provide copy of pay stub to the lender 2. Write a check dated after your next payday 3. Give your bank account number for direct charge to your account 4. Lender cashes check or debits your account

Payday Lending Example: Today, you write a check dated two weeks ahead for $256 You get $ 200 Interest and charges …………$56 = $28 per week or 14% per WEEK Interest on an annual basis: 728%!

Payday Lending Not enough money in account to cover bills Renew Loan for additional fee and interest NEXT PAYDAY

Refund Anticipation Loans

Rapid Refunds

The NEED to READ Fees Check Fee Account Processing Fee Finance Fee Technology Fee Refund Estimate Fee Tax prep Fee E-file Fee Bank Documents Fee Transmission Fee Service Bureau Fee PLUS finance charge on the loan

Your alternative!

The Coalition for Debtor Education Volunteer Income Tax Assistance) You may be able to get your taxes prepared for free From January until April 15, theres a free tax preparation service for eligible residents. To find nearest VITA site: Call 311, or Go to NYC.gov/tax prep, or Call TAX-1040

BE CAREFUL Two words about foreclosure scams and debt consolidators

Check Cashers Check cashers can charge almost 2% of each check you cash.

Check Cashers Max. charge in NY = 1.95% Do the math: $100 = $ 1.95 $1000= $ $2000= $ If your monthly check is $2,000: $39.00 x 12 = $ per year – almost equal to a weeks pay!

Avoiding SCAMS!

Stop the leaks

The NEED to READ!!! (again!) Read your bank statement every month Open all your mail Read your credit card agreement – and any additional inserts they send you Pay attention to the privacy statements you get in the mail

Protect your identity from thieves:Dont carry your Social Security or Medicare card with you Protect your identity from thieves:Dont carry your Social Security or Medicare card with you

Dont reveal your Social Security or Bank Account numbers Phishing

DO NOT CALL Registry or go to: donotcall.gov

Safeguard your personal information

SCHRED!!!

TMI!!! TMI!!!

ATM fees Add up!

Minimum BalanceMinimum Balance Minimum Balance READ your bank statement every month ASK what you have to do to get FREE Checking ASK if there is a minimum balance required for a free account

The Coalition for Debtor Education Its your choice! Bank cannot charge you for overdraft on a debit card unless you OPT-IN