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 Members can "Ask Connie"
questions about consumer finance by
writing to:
Ask Connie
Century Heritage FCU
700 Regis Avenue
Pittsburgh, PA 15236
Or send a email to mail@chfcu.org.
Dear Connie,
After receiving my credit card bills, I
realized that overspending during the
holidays has become a problem. Can
you help me figure out the best way to
prevent falling into the same situation
this coming holiday?
-Worried in West Mifflin
Dear Worried:
Don't beat yourself up too much. The fact
that you're seeking advice means you’re
serious about taking control of your credit.
Here are some examples of attainable (yet
realistic) credit goals:
- Set up a budget this year. A good
spending plan can provide the discipline
needed to help you pay bills on time,
cut expenses, and eventually begin saving
and investing.
- Set up a repayment plan based on what
you can afford to pay each month.
- Pay any credit card with past due amounts
first, then pay more to the cards charging
you the highest interest rates.
- Don't fall back into the overspending
pattern, and don’t open new credit
accounts that you don’t need.
- Start contributing to a Savings Account,
even if it's a small amount. When
unexpected expenses arise, you may not
have to rely on a credit card.
It's a good idea to keep tabs on your credit
throughout the year. You're entitled to a free
credit report each year from all three credit
bureaus. To receive a report, log on
to www.annualcreditreport.com.
Century Heritage has a Financial Counselor
who can help you meet your goals. Call Pat
Yeschenko at (412) 650-2600 x135.
Best wishes for the New Year and may all
your credit decisions be good ones!
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Dear Connie,
I have a Checking Account at a local bank.
As I was looking over my statement, I
noticed that a few of my checks had cleared
and I was charged a fee, even though I did
not have any funds on deposit. I was told that
I have Overdraft Privilege. What exactly is
Overdraft Privilege and how does it work?
-Puzzled in Port Vue
Dear Puzzled:
Overdraft Privilege is a service offered
by many financial institutions as a safety
net for those times when you accidentally
overdraw the available amount in your
Checking Account. The financial institution
may cover the amount of your item, up to
a certain amount, and then charge you a
fee for the service. If you did not have this
safety net, the item would be returned due to
insufficient funds, and you would be charged
a fee by the institution and also by the
merchant with whom you made the purchase.
The good news is that you can control
how often, if ever, you need this service by
keeping track of your Checking Account
activity. Here are a few simple practices
to follow:
- Check your monthly statements –
I know that it sounds easy, but you
would be surprised how many people
don’t even look at their statements let
alone see if their receipts match up to
the listed transactions.
- Balance your checkbook – Using
your Debit Card can be a convenient
way to make purchases, but unless
you keep track of your usage, it’s easy
to forget all the little items – and
believe me, they add up.
- Switch your Checking Account over
to Century Heritage – Although we
do have fees set in place to encourage
our members to practice responsible
checking, our fees are much lower
than those charged by banks and
check-cashing stores.
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Dear Connie,
I received an email stating that my account
information at the credit union had been
hacked into. The email instructed me to
click on a link to the credit union’s website,
but when I clicked, a screen asking for my
account number and PIN appeared. I exited
out, but need to know if my information has
been hacked.
-Scared in South Versailles
Dear Scared: It appears you have been the victim of an
email scam. Century Heritage will not
inform members by email of any security
breach. We will not ask you for your account
number or other personal information in an
email. If you ever receive an email, letter
or phone call from someone stating they
work for Century Heritage and asking you to
provide personal data, feel free to call us at
1-800-232-0087 to confirm before providing
the information.
It's good practice to verify a request for
personal information from anyone who
requests it by calling a telephone number
known to be valid. Valid numbers can be
obtained from statements, telephone books
or directory assistance. Use caution when
using the Internet to verify information since
scammers can generate look-alike websites
with similar web addresses easily.
Scammers often use emails and phone calls
to scare victims into giving up personal
information. In addition, technology has
advanced in ways that help scammers.
Scammers can obtain products which allow
them to make calls which will list whatever
they choose on caller ID and also change a
voice to sound very different. Scammers will
also invent phony financial institutions with
websites to obtain personal data.
You do not have to be scared in South
Versailles, but all members should be alert
to scams.
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Dear Connie,
Over the holidays I received a lot of gift cards. I like them, but I’ve heard they can be prone to fraud and loss of value.
-Concerned in Clairton
Dear Concerned:
Gift cards have become a very popular gift to give because it’s always the right "fit." However, their popularity has caused some problems for the consumers who receive them. Innocent people are receiving gift cards with zero balances on them because crooks have found ways to steal the card’s balance without having the card present. They are taking the serial number from the cards along with the PIN number from the back of the card and checking online to see if the card has been activated. Once it is activated they can begin shopping online at the cardholder expense. There are simple ways to avoid scams and devaluing funds.
Buyers Beware:
- Purchase cards only from reputable retailers. Avoid online auction sites.
- Avoid buying and using cards on public display racks at retail locations.
- Check the condition of the card. Make sure that the security PIN is not exposed.
Consumer Caution:
- Keep a receipt of the gift card and all the purchase that you make with it.
- Ask the store's cashier to check the balance of the gift card after all purchases.
- Never provide personal information such as Social Security numbers, date of birth or bank account information when purchasing or redeeming gift cards.
- Register your card at the retailer's website if possible so you can track any fraudulent activity if your card is misplaced or stolen.
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Dear Connie,
I am considering a payday loan in order to help me with my bills since I struggle month to month trying to make ends meet. A payday advance would really help me get over the hump, but I’m concerned about the impact on my credit if I can’t pay it back in time.
-Desperate in Dravosburg
Dear Desperate:
Chances are, if you are living paycheck to paycheck you will have difficulty paying back a payday loan because it will be due in just a couple of weeks. Typically, these types of loans will lead you into a “debt trap,” causing you even more financial crisis than you started with.
Payday lenders charge a fee of $35 to $45 to lend you money, accepting your postdated check as security. They make their money by charging you another fee to “roll over” the loan when you are unable to pay it back. It’s not unusual for the total of fees charged to eventually exceed the amount borrowed, resulting in an Annual Percentage Rate (APR) of several hundred percent.
If you feel that you are losing control of your finances, think about making a plan for your future. Start tracking where you generally spend your money every month. See what expenses are necessary and which one’s are extras (coffee, cigarette, newspapers, etc…) and begin to cut out the “extras.” Before you know it you will begin to see your pennies adding up to a nest egg which will be available in case of an emergency.
Get help from an expert. Non-profit credit counselors are trained to help people with financial problems. Century Heritage is putting together a credit and budget counseling program for our members and working on creating alternatives to payday loans. Give us a call – we can help!
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Dear Connie,
It seems every time I turn on the radio I hear wild claims from mortgage companies, including “Rates so low, we’re not allowed to mention them on the air!” What’s the deal?
- Puzzled in Pleasant Hills
Dear Puzzled:
Generally, these ads are for non-standard mortgages such as “interest only” loans. People who are enticed to call usually end up with a standard mortgage at an ordinary rate, with higher than average fees. This is just one tactic used by some unscrupulous mortgage lenders. Here are some more areas to watch to avoid mortgage rip-offs:
- Rate Lock – If rates are rising (as they are now) it’s a good idea to lock in the rate the lender offers so yours doesn’t go up while your loan is being processed. Don’t take verbal assurances from the loan officer. Get it in writing. Unlike many lenders, Century Heritage offers the opportunity to lock in your rate with no fee.
- “Flexible Payment” or “Negative Amortization” Loans – These are usually Adjustable Rate Mortgages (ARMs) that offer the option of not even paying the monthly interest owed. Over time you balance will actually increase, rather than decreasing, reducing your equity ownership in your home. ARMs at Century Heritage require principal and interest payments each month so that you pay your loan off in the time agreed.
- Rate Caps – Limit the amount your rate can increase in a given year or over the life of the loan if you borrow using an Adjustable Rate Mortgage. Standard rate caps (like those used by Century Heritage) are 2% per year and 6% over the life of the loan. Also watch for the frequency with which your loan can adjust to make sure it fits your needs.
- Fees – It is amazing the creativity some lenders display in coming up with fees for just about every activity associated with a mortgage loan. If you shop around you’ll find that fees on a Century Heritage mortgage are among the lowest around.
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Dear Connie,
Recently I caught the tail end of a consumer news segment about something called "ICE" having to do with emergency contact information in cell phones. Can you tell me more about this?
- Prepared in Pitcairn
Dear Prepared:
ICE is an initiative encouraging people to enter an emergency contact number in their cell phone's memory under the heading "ICE" (i.e. In Case of Emergency).
This contact information is intended to enable Emergency Medical Technicians (EMTs) and other first-responders to contact a victim’s designated relative/next of kin in the event of emergency.
EMTs often will use a victim’s cell phone for clues to a person’s identity. You can make their job much easier by encouraging your family members to add an entry into the contact list of their cell phone under ICE, with the name and phone number of the person who should be contacted in case of emergency.
This could save valuable time and ensure that a person’s loved ones are contacted quickly. Entering an ICE name and phone number only takes a few moments. EMTs know what ICE means and they look for it immediately. The ICE phone directory file could also contain pertinent medical information, if the phone’s owner decides to list it.
According to the website www.icesticker.com, ICE was the brainchild of an ambulance service paramedic in the United Kingdom and was originally launched as a nationwide campaign there in May of 2005. The National Association of Emergency Medical Technicians (www.naemt.org)
supports this grassroots initiative as well.
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