Three Gems From Michael Moore’s 15-Point Action Plan

Posted: November 7, 2009
Filed Under: Observations

Love him or hate him, there’s no denying that Michael Moore is not afraid to speak his mind and challenge the status quo. Although I don’t agree with all of his views, I’ve always admired Mr. Moore for having the courage to ask the tough questions and keep people accountable.

His latest movie, Capitalism: A Love Story, was released last month. On his website, Michael Moore says that the number one question he is constantly asked after people see his movie is, “”OK — so NOW what can I DO?!”

Mr. Moore responded with a 15-point action plan offering real-life solutions that normal everyday people can implement. Many of the solutions encourage people to be politically active, which is fine, but we won’t cover them here. However, 3 of his 15 points have to do with personal finance and personal responsibility, and I couldn’t agree with him more. Here they are:

Get rid of all your credit cards but one — the kind where you have to pay up at the end of the month or you lose your card.
Do not invest in the stock market. If you have any extra cash, put it away in a savings account or, if you can, pay down on your mortgage so you can own your home as soon as possible. You can also buy very safe government savings bonds or T-bills. Or just buy your mother some flowers.
Take care of yourself and your family. Sorry to go all Oprah on you, but she’s right: Find a place of peace in your life and make the choice to be around people who are not full of negativity and cynicism. Look for those who nurture and love. Turn off the TV and the Blackberry and go for a 30-minute walk every day. Eat fruits and vegetables and cut down on anything that has sugar, high fructose corn syrup, white flour or too much sodium (salt) in it (and, as Michael Pollan says, “Eat (real) food, not too much, mostly plants”). Get seven hours of sleep each night and take the time to read a book a month. I know this sounds like I’ve turned into your grandma, but, dammit, take a good hard look at Granny — she’s fit, she’s rested and she knows the names of both of her U.S. Senators without having to Google them. We might do well to listen to her. If we don’t put our own “oxygen mask” on first (as they say on the airplane), we will be of no use to the rest of the nation in enacting any of this action plan!

To read Michael Moore’s entire 15-point action plan please click here

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Beware Of Misleading Advertising From A Few Debt Settlement Firms

Posted: October 14, 2009
Filed Under: Observations

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During the past several months, a number of our clients have received very official-looking notices in the mail regarding credit card debt relief, possibly suggesting that there might be some government sponsored program to assist people with excessive credit card debt.

Upon reviewing these notices they turned out to be nothing more than cleverly disguised direct mail advertisements from debt settlement firms. They used terms like “National Council For … ” and “The Department Of … “, complete with an official-looking seal and a mailing address in Washington, DC. Some even resembled an IRS notice or a W-2 form.

Some made mention of “program eligibility” and others made reference to the “Government Economic Stimulus Act”. At the same time, however, nearly all of these direct mail pieces had a disclaimer in the fine print that indicated that they are “not affiliated with or endorsed by any government agency”.

For the record and to clear up any confusion, we are not aware of any government sponsored program to assist consumers with credit card debt relief.

An interesting question that has come up is …

“How did these firms find out that I was
even having any financial challenges at all?”

The most likely way is they purchased your name and address from one of the major credit reporting agencies (i.e. Equifax, Experian and TransUnion). It’s completely legal for them to do this. If you’re a little surprised that information about you is for sale, here are the links where you can confirm it for yourself:

Equifax / Experian / TransUnion

Note: We actually called these companies and did a little mystery shopping and asked if we could purchase a mailing list for people having financial difficulty such as drop in credit score, late payment history, etc. They said, ”Yes, no problem.”

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Bankruptcy FAQs

Posted: September 24, 2009
Filed Under: Answers To FAQ

No one ever wants to file bankruptcy, that’s for sure. But if you’re having financial difficulties you owe it to yourself to educate yourself on the basics of bankruptcy because it might just end up being the best solution for you afterall.

Today I ran across an excellent resource that answers virtually any question you would want answered on the topic of personal bankruptcy. Some of the most common questions people have about bankruptcy are:

What is the difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy?
What is the difference between a Chapter 13 and a Chapter 11 bankruptcy?
Can I file Chapter 7 and still keep my home?
Will I ever be able to buy a house after I file for bankruptcy?
Are some debts non-dischargeable?
If I file bankruptcy, is my spouse required to file with me?
What about my IRA/retirement account – will it be protected from creditors?

Here’s the link:

http://www.acclaimlegalservices.com/faqs

It’s entirely possible that you won’t need to file bankruptcy to solve your financial predicament. But before making your final decision I believe it’s wise to at least explore all of your options before proceeding.

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Cross-Collaterization: Yes, They Really Can Take Your Money

Posted: August 6, 2009
Filed Under: Answers To FAQ

Yesterday I got a call from someone saying that his credit card company just went into his checking account and cleaned him out. They took his money and gave no advance warning. He was flabbergasted and wanted to know if this was legal.

As much as I hate to say it, the answer is yes.

However, don’t get worried that you immediately have to move all of your money to a Swiss bank account. The circumstance that allowed this person’s credit card company to just go into his checking account with no prior warning is a somewhat unique situation that will probably not apply to most people. Let me explain.

What allowed the credit card company to just go into this person’s checking account is something called cross-collateralization. It means that if you have money in a checking or savings account and you have a credit card with that same bank then the bank can go into your checking account to satisfy a past due balance on your credit card because your checking account and credit card are under the “same roof”, so to speak. In other words, the money in your checking account is serving as collateral on your unpaid credit card balance.

HERE’S AN EXAMPLE

Let’s say you have two credit cards, one with Wells Fargo and one with Bank Of America. And let’s say you also have a checking account with Wells Fargo.

Now let’s say you lose your job and you are unable to make your monthly credit card payments to Wells Fargo and Bank Of America. Because you have a checking account with Wells Fargo, Wells Fargo could then automatically go into your checking account and help themselves to your money to satisfy the past due balance on your Wells Fargo credit card. Bank Of America, in this example, would not be able to touch the money in your Wells Fargo checking account.

It’s important to note that the bank would only go into your checking account and take your money if you had a *past due balance* on your credit card. If you’re current, you have nothing to worry about.

Now you know.

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The Credit Card Accountability, Responsibility and Disclosure (CARD) Act

Posted: June 12, 2009
Filed Under: Answers To FAQ

President Obama signs the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009

President Obama signed the Credit Card Accountability, Responsibility and Disclosure (CARD) Act on May 22, 2009, which provides a sweeping overhaul of how consumer credit is handled by credit card companies. The bill provides strong and reliable protections for consumers against what some have considered unfair and deceptive practices by certain financial institutions.

The new law will go into effect in about 9 months. Below are the key elements of the bill:

Credit card companies must notify their customers in writing of any rate increase or any other significant change to the card agreement at least 45 days in advance of the change. No more sudden changes.
Monthly billing statements will have to be mailed at least 21 days before payment is due. In addition, the new law ends the practice of shifting payment due dates.
Monthly billing statements will be required to tell credit card holders how long it will take to pay off a balance and what it will cost in interest if they only make the minimum monthly payments.
Bans arbitrary rate increases on existing balances and severely restricts retroactive rate increases due to late payment. After the first year, however, the card issuer can raise the rate on future purchases with 45 days advance notice.
Places limits on fees and penalty interest.
Every credit card company will have to post its credit card agreements online.

President Obama summarized these new changes by saying, “We’re not going to give people a free pass; we expect consumers to live within their means and pay what they owe. But we also expect financial institutions to act with the same sense of responsibility.”

For more in-depth information on this new bill, please visit:

http://www.whitehouse.gov/blog/A-New-Era-for-Credit-Cards/

http://www.creditcardreform.org/learn.html

http://www.creditcardreform.org/pdf/dodd-summary-509.pdf

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