In theory, overdraft fees charged by banks are meant to be a “convenience” for customers so that their purchases are not declined when they are unknowingly low on funds. In practice, however, these fees have become a major revenue generator for banks that charge an average of $33.58 for each overdraft. That means consumers can be hit with multiple fees if they accidentally make numerous purchases while past the limits of their account. Studies show that this practice particularly harms Continue reading
This week, Google announced that it’s launching a banking service next year that will offer “smart checking” accounts to mobile-focused customers. Known as Cache, the program is the result of a collaboration between the search giant and two banks: Citigroup and Stanford Credit Union. Although details of the partnership remain limited at this time, Google eventually wants Cache to become an extension of its Google Pay app. The company also claims that customers will “benefit from useful insights and budgeting Continue reading
Yesterday, the filing period officially opened for the 2018 tax season, an annual event that many Americans dread. Along with the standard pain that comes with writing checks to Uncle Sam, people also get stressed by worrying whether or not they calculated their tax bill correctly. Matters can become even worse for these anxious earners if they receive a phone call from the Internal Revenue Service regarding back taxes they never knew about.
But while these calls are certainly intimidating, Continue reading
Yesterday the credit reporting company Equifax announced that hackers had breached their security systems and stolen personal information from 143 million customers. Along with names and birthdates, the hackers also obtained social security and driver’s license numbers. These pieces of data are basically gold to identity thieves, allowing them to make purchases, borrow money and more all under the victim’s name. “This is about as bad as it gets,” said World Privacy Forum executive director Pamela Dixon. “If you have Continue reading
From a young age Americans are taught to keep a close eye on their Social Security number. After all, this unique code acts as an identifier for everything from bank accounts to medical records. If it falls into the wrong hands, all of your personal information could become compromised. To prevent this from happening, the government requires companies to keep Social Security numbers private while advising individuals to reveal it only to trusted parties.
But in today’s digital age there’s Continue reading
For the millions of Americans who struggle with debt, paying back the money they owe can become a life-consuming ordeal. These overstretched individuals either take years to settle with creditors or end up defaulting entirely. Since most lenders want to avoid the latter option, they sometimes opt to sell off delinquent debt to a third party for pennies on the dollar. For instance, a bank might sell off $100,000 of debt to another institution for just $1,000. While the lender Continue reading
Each year, millions of Americans use payday lenders to obtain what seem like quick and easy loans. Many borrowers simply need an advance on an upcoming paycheck, allowing them to settle their loan as soon as payday arrives. For those who don’t manage to repay on time, however, the situation can rapidly turn desperate. Along with a variety of fees, payday lenders often charge interest rates than can eventually top out in the triple digits. As a result, one small Continue reading