This section will be filled with information that will help manage your finances and avoid financial pit falls. If you have suggestions for articles that you would like to see here contact Glenn Coble at 740/389-9960 ext. 330.

MCCU PARTNERS with LIBERTY on FRAUD EDUCATION

 Identity Fraud

    Impersonation fraud occurs when someone assumes your identity to perform a fraud or other criminal act. Criminals can get the information they need to assume your identity from a variety of sources, such as the theft of your wallet, your trash, or from credit or bank information. They may approach you in person, by telephone, or on the Internet and ask you for the information.

    The sources of information about you are so numerous that you cannot prevent the theft of your identity. But you can minimize your risk of loss by following a few simple hints.

Some Tips to Avoid Impersonation/Identity Fraud:

Never throw away ATM receipts, credit statements, credit cards, or bank statements in a usable form.

Never give your credit card number over the telephone unless you make the call.

Reconcile your bank account monthly and notify your bank of discrepancies immediately.

Keep a list of telephone numbers to call to report the loss or theft of your wallet, credit cards, etc.

 Report unauthorized financial transactions to your bank, credit card company, and the police as soon as you detect them.

 Review a copy of your credit report at least once each year. Notify the credit bureau in writing of any questionable entries and follow through until they are explained or removed.

If your identity has been assumed, ask the credit bureau to print a statement to that effect in your credit report.

If you know of anyone who receives mail from credit card companies or banks in the names of others, report it to local or federal law enforcement authorities. 

Phishing is on the Rise

    Phishing incidents increased dramatically in popularity in the past year. Phishers use the Internet to steal money and personal identities. Phishing is a type of deception designed to steal your identity. In phishing scams, scam artists try to get you to disclose valuable personal data—like credit card numbers, passwords, account data, or other information—by convincing you to provide it under false pretenses. Phishing schemes can be carried out in person or over the phone, and are delivered online through spam e-mail or pop-up windows

A recent study shows 52 million U.S. Internet users received phishing e-mail during the past 12 months. While consumers at credit unions and banks are prime targets, AOL, Paypal and eBay users also are victims of frequent attacks.

    A phishing scam sent by e-mail may start with con artists who send millions of e-mail messages that appear to come from popular Web sites or sites that you trust, like the Marion Community Credit Union or a credit card company. The e-mail messages, pop-up windows, and the Web sites they link to appear official enough that they deceive many people into believing that they are legitimate. Unsuspecting people too often respond to these requests for their credit card numbers, passwords, account information, or other personal data.
As scam artists become more sophisticated, so do their phishing e-mail messages and pop-up windows. They often include official-looking logos from real organizations and other identifying information taken directly from legitimate Web sites.

    Experts say it’s a good idea to change your online banking and shopping account passwords every three to six months. And to avoid being led to fraudulent Web sites, retype the Web address in your browser rather than click through e-mail links. These simple steps can protect you from serious hassles down the road.
The following are just a few phrases to watch for if you think an e-mail message is a phishing scam.  If an e-mail message looks suspicious, that probably means that it is.

"Verify your account."  Businesses should not ask you to send passwords, login names, Social Security numbers, or other personal information through e-mail.

"If you don't respond within 48 hours, your account will be closed."  Phishing e-mail may threaten to close or suspend your account or may even say your response is required because your account may have been compromised.

"Dear Valued Customer."  Phishing e-mail messages are usually sent out in bulk and do not contain your first or last name. Although, it is possible that con artists have this information.

"Click the link below to gain access to your account."  HTML-formatted messages can contain links or forms that you can fill out just as you'd fill out a form on a Web site.

The Marion Community Credit Union will never send you an email asking for your password, login name or other personal information. If you receive any questionable correspondence from MCCU contact us immediately.

 LEARN the FUN WAY... CREDIT UNIONS vs. BANKS

The fun way to learn about credit unions vs. banks is to watch any of these YouTube links:

I Love You... Happy To Serve... Money to Blow... Under the Table... Banks vs. CU part1... Banks vs. CU part 2... The Little Guy

You won't believe this one... American Banker's Association priorities  If this is hard to believe click here and read it for yourself.

Click any title to find out why to use a credit union, not a bank.

BALANCE CREDIT COUNSELING, MONEY MANAGEMENT and FINANCIAL EDUCATION... FREE   

We have added the financial fitness service called BALANCE. This services will help you resolve many financial problems from understanding a mortgage to dealing with credit card debt.

Whether you have a history of non-sufficient funds issues or you just want to know how to best manage your first checking account, InBalance will give you the tools and information necessary to become and remain a successful credit union member.

InBALANCE SELF-STUDY COURSE

As you proceed through this self-study course, you will learn all of the components of wise checking account management. After reading the material, please follow the directions to register for and complete the exam. Once you submit your responses, your exam will be automatically scored and the results will be emailed to you and your credit union.

Good luck, and congratulations on taking this step toward establishing a positive life-long relationship with your credit union!

PAYDAY LOANS

How they work

    Bad credit? No credit? Not a problem. All a consumer needs to obtain a payday loan is a job, a phone, a utility bill, a checking account, and a driver's license. The borrower writes a personal check payable to the lender for the amount he wishes to borrow, plus a fee- typically 10% to 25% of the check. The check is held for one to four weeks, usually until the customer’s next payday, at which time he either redeems the check by paying the face amount, or allows the check to be cashed. If the borrower can’t afford to cover the check, he may roll it over for another term by writing another check, which will result in another set of fees being added to the balance.

    Consumers may be mislead into thinking that payday loans are a cheap and convenient way of borrowing money for the short term, however, with average annual interest rates ranging from 390% to 871%, payday loans are no bargain. Consider this example:

• Face value of a check: $200
• 15% fee: $30
• Amount paid to the customer: $170
• Lender receives $30, which translates to an APR of 458% if the loan is repaid in two weeks
• If it is rolled into a new payday loan, an additional fee of $30 is charged, the loan is raised to $230, and the APR jumps to 917%

    In other words, it cost $60 to borrow $170 for one month.

    Consumers often have difficulty repaying the entire loan when their payday arrives because it will leave them with little or no money for their living expenses. Result: The consumer pays another round of charges and fees and obtains no additional cash in return.

    Collection tactics for payday loans can be very aggressive. A default on a payday loan involves a worthless check, and some state credit laws allow for triple damages when a bad check is used in a retail transaction. Lenders may also require customers to sign an "Assignment of Salary and Wages" authorizing them to go directly to the borrower's employer to ask for the amount owed to be deducted from the borrower’s paycheck and paid to the lender.

      Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis). Collectors for payday loans must comply with the Fair Debt Collection Practices Act. Any complaint against a lender may be filed with the Federal Trade Commission: 1 (877) FTC-HELP, or www.ftc.gov.

Breaking the Payday Loan Cycle
The average payday loan customer makes eleven transactions a year – and maintains an endless sequence of debt. If you find yourself caught in the payday loan cycle, follow the steps below for relief:

• Analyze your financial situation in its entirety:
• Set reasonable and achievable financial goals.
• Understand your earning potential: Can you work overtime, obtain a second job, or turn a hobby into income?
• Review your expenses: Can you reduce or eliminate anything in the short or long term?
• Review your debt: List everything, then set priorities. Because the interest rates on payday loans are well above other types of debt, treat it as a financial priority.
• Track your spending and regularly review your budget.
• Commit yourself to not using payday loans in the future.If you are using payday loans because you inadvertently overdraw on your account, consider overdraft protection.
• Develop a savings plan. Three to six months’ worth of expenses in an accessible savings account is recommended, but anything is better than nothing. A hundred dollars set aside for emergencies can save you a trip to the payday loan company – and a tremendous amount in fees.
• Understand the root of the problem. Are you spending beyond your means because you’re income is insufficient to live on, or because you’re spending more than you need to on non-necessities?

Laws that protect consumers

    Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis). Collectors for payday loans must comply with the Fair Debt Collection Practices Act. Any complaint against a lender may be filed with the Federal Trade Commission: 1 (877) FTC-HELP, or www.ftc.gov.