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Protecting your self against high fees, scams and outright fraud

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. Avoiding Scams and Money Traps. Rent-a Centers Pay Day Loans

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Protecting your self against high fees, scams and outright fraud

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

  2. Your money can DRAIN away fast

  3. or it could “leak” away….

  4. Stop the major drains first

  5. Avoiding Scams and Money Traps • Rent-a Centers • Pay Day Loans • Rapid Refunds • Debt Consolidators The Coalition for Debtor Education www.debtoreducation.org

  6. Rent to Own

  7. Payday Loans

  8. 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

  9. 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

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

  11. Refund Anticipation Loans

  12. Rapid Refunds

  13. 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 Rapid Refunds

  14. Your alternative!

  15. VITA 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 The Coalition for Debtor Education www.debtoreducation.org

  16. Two words about foreclosure scams and debt consolidators BE CAREFUL

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

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

  19. 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! Check Cashers

  20. Avoiding SCAMS!

  21. Stop the leaks

  22. 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

  23. Protect your identity from thieves:Don’t carry your Social Security or Medicare card with you

  24. Don’t reveal your Social Security or Bank Account numbers “Phishing”

  25. DO NOT CALL Registry 888-382-1222 or go to: donotcall.gov

  26. Safeguard your personal information

  27. SCHRED!!!

  28. TMI!!!

  29. ATM fees Add up!

  30. 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 Minimum BalanceMinimum Balance Minimum Balance Minimum Balance Minimum Balance

  31. Overdrafts It’s your choice! Bank cannot charge you for overdraft on a debit card unless you OPT-IN The Coalition for Debtor Education www.debtoreducation.org

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