Financial news

Predatory lending

admin — Mon, 13 Jul 2009 14:39:15 +0000

Predatory lending is the industry professional practice of using a borrower’s ignorance against him or her for profit. It usually affects more vulnerable populations, for instance, seniors and minorities. Predatory lending can be identified by deceptive marketing and sales practices, non-disclosure of all terms that relate to the qualification and payback of the loan, and falsifying documentation to gain otherwise unattainable loan approvals, although the actual term is an umbrella to many scenarios.
1. Protect your personal information. It’s Valuable. This includes name, email or home address, phone number, account numbers, and Social Security number.
2. Know who you’re dealing with. “Phishers” send spam or pop-up messages claiming to be legitimate organizations. Never click on this and do not give your personal information.
3. Use anti-virus software and a firewall, and update both regularly.
4. Be sure to set up your operating system and Web browser software properly and update them regularly.
5. Protect your passwords.
6. Back up important files.
7. Learn who to contact if something goes wrong online. If your computer is hacked or has a virus, unplug phone or cable line from machine; and scan with anti- virus software. Visit the FBI at www.ifccfbi.gov.
Seven practi ces for safer computing

FIGHTING BANKING FRAUD

admin — Sun, 12 Jul 2009 14:38:04 +0000

• Do not give your checking account or credit card numbers over the phone to anyone unless you know the person and you know why.
• Sign up, if you can, with your banking institutions’ early fraud warning systems.
• Shred all financial documents with personal information before you discard it.
• Contact DISB’s Enforcement and Investigation Bureau at 202-727-1563.

Hoax emails or phishing

admin — Sat, 11 Jul 2009 14:36:14 +0000

These emails are sent to bank customers with the purpose of capturing confidential banking information such as password and login details, card and bank account details. Once this information is captured, it is used to access a customer’s Internet banking facility and their banking accounts.

Counterfeit card fraud

admin — Fri, 10 Jul 2009 14:37:48 +0000

Counterfeit card fraud occurs when an illegal copy of a genuine credit or debit card is made. Most cases involve skimming, whereby the data on a genuine card’s magnetic stripe is electronically copied onto the magnetic stripe of another card, without the cardholder’s knowledge.

Automatic Debit Scams

admin — Fri, 10 Jul 2009 14:36:00 +0000

Automatic debits from your checking account can be a legitimate payment method; many people pay mortgages or make car payments this way. But the system is being abused by fraudulent telemarketers. You may be asked to read off the numbers at the bottom of your checks to qualify for some “prize.” Once a telemarketer has your checking account information, it is put on a “demand draft,” which is processed like a check. The draft has your name, account, and states an amount. Unlike a check, however, the draft does not require your signature. When your bank receives the draft, it takes the amount on the draft from your checking account and pays the telemarketer’s bank. You may not know that your bank has paid the draft until you receive your bank statement.

Banking fraud

admin — Fri, 10 Jul 2009 14:34:40 +0000

Banking fraud involves transactions by a fraudster into legitimately owned accounts. Bank fraud is a way of life for some people and for others, it’s a way to get a quick loan. Following are some types of banking fraud.

Kinds of Trusts

admin — Sat, 13 Jun 2009 16:17:18 +0000

Basically there are two kinds of trusts, living trusts and testamentary trusts. The living or inter vivos trust is created and made effective while the trustor is living. A living trust is in essence an agreement between the trustor and the trustee and may be revocable or irrevocable.
The testamentary trust is so-called because it is established under the provisions of a last will and testament. The testamentary trust does not become effective until the will has passed through probate. Since a testamentary trust does not go into effect until death of the owner, there is no tax saving in his estate. However, the trust may be drafted to save estate taxes in the estates of the beneficiaries. A testamentary trust is also useful when the heirs are minors or inexperienced in money matters.

Trusts

admin — Fri, 12 Jun 2009 16:16:38 +0000

The trust is becoming more popular as a tool in estate planning. The trust is a written agreement by which an owner of property (the trustor) transfers his title to a trustee for the benefit of persons called the beneficiaries. Both real and personal property may be placed in a trust. The trustee may be a person or persons, a corporation, or a combination of the two. A trust can continue for any period of time set by the owner–for a lifetime, until the youngest child reaches age 21, and so forth. If the trust extends beyond a lifetime, there are limitations that should be explained by your attorney. An important advantage of the trust is its flexibility. The trustee can be empowered to “sprinkle” or “spray” trust property among the beneficiaries as their respective needs may require; this feature especially accommodates the unpredicted emergency or misfortune that might arise. In addition, the trustor (settlor) may place numerous restrictions and requirements in the trust relative to the payments to be made to the beneficiaries. For example, the income earned by the trust, a fixed percent of the assets or part of the principal may be paid out each year. These requirements must be carried out by the trustee.

Cash for gold rip-off

admin — Thu, 28 May 2009 08:03:15 +0000

During an economic crisis people having difficulty to pay their bills may consider selling their items that have a particularly high monetary value. It is a mistake to do so, but sometimes people have no real choice. Fortunately or not, there are companies specializing in offering cash in return for precious metals, such as gold or silver, whose services may seem appealing to some. You have to remember that if you need to sell gold or silvery, you will never get a true value on your items. It’s a rule! Just think of it as going to a local pawnshop. You will certainly get ripped off! But imagine doing the same via the Internet! You don’t see any faces except for a nice graphic design of the company’s website promising a load of money and a fair market value for your items. Ask yourself these questions: “Is that a charity? Do they want to do me a favor? Why do they do this? etc”. You might have heard about the cash for gold scam. I don’t know whether they rip people off, but there is a pretty good chance that they will not give you retail or wholesale value, but the bare minimum that they can get away with paying you. Don’t fall for scams that promise big returns; especially those that require you to part with personal items that are worth much more that you will be compensated for!

Attorney Fees

admin — Thu, 14 May 2009 16:21:53 +0000

Formerly, the legal profession followed approved minimum fee schedules in fixing fees for various legal services. Such fee schedules reflected the lower range of fees conventionally charged by most lawyers across the state. Minimum fee schedules have been abolished, and therefore, the nature, complexity, and magnitude of the service rendered and the benefit conferred upon the client are all considered in fixing the fees that may be charged. Fees charged by lawyers in probate matters are subject to the approval of the court at the time of the hearing on the final account of the personal representative. Fees for legal services will run at least as much as those fees authorized by statute to be paid to the personal representative and in most cases they run higher.
Since probate costs depend upon varying factors, any references herein as to fees charged by lawyers are only general approximations. In each case, problems may differ, thus creating more than the usual and normal professional work and thus increasing the cost of legal services. Lawyers are willing to discuss their fees with the personal representative at the time of being employed.