Protecting your self Protecting your self against high fees, scams against high fees, scams

and outright fraudand outright fraudPresented by

The Coalition for Debtor EducationChris Muy

Your money can DRAIN away fast

or it could “leak” away….

Stop the major drains Stop the major drains firstfirst

The Coalition for Debtor Educationwww.debtoreducation.org

• Rent-a Centers

• Pay Day Loans

• Rapid Refunds

• Debt Consolidators

Avoiding Scams and Money TrapsAvoiding Scams and Money Traps

Rent to Own

Payday LoansPayday Loans

Payday LendingPayday Lending

Short term loans made between paydays:1. Provide copy of pay stub to the lender2. Write a check dated after your next payday3. Give your bank account number for direct charge to your account4. Lender cashes check or debits your account

Payday LendingPayday Lending

Example:Today, you write a check dated two weeks ahead

for $256You get $ 200

Interest and charges …………$56 = $28 per week or 14% per WEEK Interest on an annual basis: 728%!

Payday LendingPayday Lending

Not enough money in account

to cover bills

Renew Loan for additional

fee and interest

NEXT PAYDAY

Refund Anticipation Loans

Rapid RefundsRapid Refunds

Rapid RefundsRapid 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 FeePLUS finance charge on the loan

Your alternative!Your alternative!

The Coalition for Debtor Educationwww.debtoreducation.org

VITAVITAVolunteer Income Tax Assistance)Volunteer Income Tax Assistance)

You may be able to get your taxes prepared for free

From January until April 15, there’s a free tax preparation service for eligible residents.

To find nearest VITA site: Call 311, or Go to NYC.gov/tax prep, or Call 1-800-TAX-1040

BE CAREFUL

Two words about foreclosure Two words about foreclosure scams and debt consolidators scams and debt consolidators

Check CashersCheck Cashers

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

Are you throwing away a week’s Are you throwing away a week’s pay every year?pay every year?

Check Cashers Check Cashers Max. charge in NY = 1.95%Do the math:

$100 = $ 1.95$1000 = $ 19.50$2000 = $ 39.00

If your monthly check is $2,000:$39.00 x 12 = $468.00 per year – almost equal to a week’s 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 Protect your identity from thieves:Don’t carry your Social thieves:Don’t carry your Social Security or Medicare card with youSecurity or Medicare card with you

Don’t reveal your Social Security Don’t reveal your Social Security or Bank Account numbersor Bank Account numbers

“Phishing”

DO NOT CALL Registry

888-382-1222 or go to: donotcall.gov

Safeguard your personal Safeguard your personal informationinformation

SCHRED!!!SCHRED!!!

TMI!!!TMI!!!

ATM feesATM fees

Add up!Add up!

Minimum BalanceMinimum BalanceMinimum BalanceMinimum BalanceMinimum 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 Educationwww.debtoreducation.org

OverdraftsOverdrafts

It’s your choice!

Bank cannot charge you for Bank cannot charge you for overdraft on a debit card unless overdraft on a debit card unless you you OPT-INOPT-IN