Thanks to the Consumer Financial Protection Bureau (CFPB), many credit cardholders could see a credit on their statements in the coming months. Discover, American Express and Capital One credit cards must refund about $435 million to customers because of a government crackdown on illegal and deceptive practices by the companies.
Customers that are owed the refunds will not have to take any action because the refunds will automatically show as credits on future statements. If the person has since canceled a card, the companies have been ordered to mail refund checks to the holders of any accounts affected by the illegal practices.
CNNMoney.com details what illegal actions each company took in their article titled, Refunds from credit card issuers on the way. The illegal practices included things like imposing higher late fees than they were legally allowed to charge and promising non-existent monetary rewards. Also, there was a claim that some customers were being pressured into buying additional products or services when they opened credit cards.
The Consumer Financial Protection Bureau was instrumental in investigating and ordering the credit card companies to make payments to the deceived customers. It is a federal agency that holds the primary responsibility for regulating consumer protection relating to financial products and services in the United States.
The central mission of the CFPB is to make markets for consumer financial products and services work for Americans. The agency assists people when they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products. The agency works to help consumer financial markets by making rules more effective, by consistently and fairly enforcing the rules and by empowering consumers to take more control over their economic lives.
The goals of the CPFC are outlined on their site. The first goal is to educate by informing consumers about abusive practices. Their second goal is to enforce by supervising banks, credit unions, and other financial companies, and enforcing Federal consumer financial laws. The agency's third objective is to study by gathering and analyzing information to better understand consumers, financial services providers, and consumer financial markets. One very important contribution the agency works toward is giving consumers the information they need to better understand the terms of their agreements with financial companies.
The website for the Consumer Financial Protection Bureau can be found at: http://www.consumerfinance.gov/. They provide a great deal of information and advice on financial issues and accept complaints from consumers who have experienced difficulties with financial products or services.
Thursday, December 27, 2012
Thursday, December 20, 2012
Tax tips for 2012
Tax time is quickly approaching and it could pay to do a little research and planning before the year ends. TurboTax posted some helpful tips in an article, Nine Things to Do Now to Cash In at Tax Time, to help minimize tax bills. Some of their strategies could help to reduce costs for 2012 tax filings and some could continue to be a benefit for years to come.
Contributing to an Individual Retirement Account (IRA) assists people once they retire, but it also reduces current tax bills. The article states that for 2012, the maximum tax-deductible contribution to an IRA is $5,000 and $6,000 for those who are 50 or older. As long as the IRA is opened before December 31, 2012, contributions made until April 15, 2013 can be deducted.
Some energy-saving home improvements can qualify for a tax credit of up to 30% of the costs associated with the improvements. For more information on which improvements meet the federal energy-efficient standards, please visit www.EnergyStar.gov.
The article also suggests giving to charity to help reduce a tax bill. The gifts can be cash, stocks or something like a vehicle. The Internal Revenue Service (IRS) has details and links for the necessary forms for making those deductions at: http://www.irs.gov/taxtopics/tc506.html.
There are ways to benefit not only on Federal taxes, but State, as well. Contributing to a 529 College Savings Plan for a child or grandchild can reduce tax costs. Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, as long as withdrawals are used for eligible college expenses, such as tuition and room and board. There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a pre-paid tuition plan. The Securities and Exchange Commission defines 529 plans here.
For even more tips for 2012 taxes, Bankrate.com published an article titled, 12 tempting tax tips for 2012. Bankrate.com has suggestions such as making sure to remember the American Opportunity Tax Credit, which is an education tax break that provides a credit of up to $2500 of the cost of qualified tuition and related expenses. Up to $1000 of that education credit could be refunded to the tax payer.
Sometimes tax law can be confusing, so hiring a reputable tax preparer could be quite beneficial. Always check a tax professional's Internal Revenue Service registration status before allowing someone to take a look at any documents. The IRS posted an article on their site about what to keep in mind when choosing a tax preparer and that article can be found at: http://www.irs.gov/uac/Points-to-Keep-in-Mind-When-Choosing-A-Tax-Preparer.
Contributing to an Individual Retirement Account (IRA) assists people once they retire, but it also reduces current tax bills. The article states that for 2012, the maximum tax-deductible contribution to an IRA is $5,000 and $6,000 for those who are 50 or older. As long as the IRA is opened before December 31, 2012, contributions made until April 15, 2013 can be deducted.
Some energy-saving home improvements can qualify for a tax credit of up to 30% of the costs associated with the improvements. For more information on which improvements meet the federal energy-efficient standards, please visit www.EnergyStar.gov.
The article also suggests giving to charity to help reduce a tax bill. The gifts can be cash, stocks or something like a vehicle. The Internal Revenue Service (IRS) has details and links for the necessary forms for making those deductions at: http://www.irs.gov/taxtopics/tc506.html.
There are ways to benefit not only on Federal taxes, but State, as well. Contributing to a 529 College Savings Plan for a child or grandchild can reduce tax costs. Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, as long as withdrawals are used for eligible college expenses, such as tuition and room and board. There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a pre-paid tuition plan. The Securities and Exchange Commission defines 529 plans here.
For even more tips for 2012 taxes, Bankrate.com published an article titled, 12 tempting tax tips for 2012. Bankrate.com has suggestions such as making sure to remember the American Opportunity Tax Credit, which is an education tax break that provides a credit of up to $2500 of the cost of qualified tuition and related expenses. Up to $1000 of that education credit could be refunded to the tax payer.
Sometimes tax law can be confusing, so hiring a reputable tax preparer could be quite beneficial. Always check a tax professional's Internal Revenue Service registration status before allowing someone to take a look at any documents. The IRS posted an article on their site about what to keep in mind when choosing a tax preparer and that article can be found at: http://www.irs.gov/uac/Points-to-Keep-in-Mind-When-Choosing-A-Tax-Preparer.
Monday, December 10, 2012
Holiday Tipping
Holiday tipping is a way to thank the people who provide services
all year long. Deciding if and how much to tip people like hairstylists and newspaper deliverers can be difficult. It is important to remember the amounts must be factored into an overall holiday budget.
MSNMoney.com recently posted a helpful article regarding tipping at the holidays. The new rules of holiday tipping provides some sound advice for those who are considering giving a little extra at the end of the year to the people who have provided a higher level of service throughout the year.
Setting priorities about which service providers deserve a tip is crucial, especially if money is tight. People who have gone above and beyond should be considered first. If there is not enough money to give to others, then a slightly larger than usual tip or a small gift should suffice.
The article provided some examples of how much is appropriate to tip people in certain service industries. They suggest that people providing services like newspaper delivery, parking garage attending, trash collecting and any other delivery services received on a regular basis could be given between $10 and $30. Some delivery services, such as the United States Postal Service, do not allow their employees to take cash gifts, so it is important to do a little research before putting someone in an awkward situation.
Holiday tips for people who provide more personal services normally can equal the cost of one visit or session. The professions that fall under this category might include hairdressers, manicurists, part-time house cleaners, pet groomers, dog walkers, lawn care services and babysitters.
It is customary to tip the equivalent of one week's pay to nannies or others who provide services more than a couple of days a week. Also, anyone providing services for children could certainly be given a small and thoughtful gift from each child.
The holidays can be extremely tough financially, so making sure any amount of money given does not leave a person going farther into debt is extremely important. If giving cash gifts does not work with the holiday budget, a smaller gift or perhaps a day off from providing services could be meaningful, as well.
MSNMoney.com recently posted a helpful article regarding tipping at the holidays. The new rules of holiday tipping provides some sound advice for those who are considering giving a little extra at the end of the year to the people who have provided a higher level of service throughout the year.
Setting priorities about which service providers deserve a tip is crucial, especially if money is tight. People who have gone above and beyond should be considered first. If there is not enough money to give to others, then a slightly larger than usual tip or a small gift should suffice.
The article provided some examples of how much is appropriate to tip people in certain service industries. They suggest that people providing services like newspaper delivery, parking garage attending, trash collecting and any other delivery services received on a regular basis could be given between $10 and $30. Some delivery services, such as the United States Postal Service, do not allow their employees to take cash gifts, so it is important to do a little research before putting someone in an awkward situation.
Holiday tips for people who provide more personal services normally can equal the cost of one visit or session. The professions that fall under this category might include hairdressers, manicurists, part-time house cleaners, pet groomers, dog walkers, lawn care services and babysitters.
It is customary to tip the equivalent of one week's pay to nannies or others who provide services more than a couple of days a week. Also, anyone providing services for children could certainly be given a small and thoughtful gift from each child.
The holidays can be extremely tough financially, so making sure any amount of money given does not leave a person going farther into debt is extremely important. If giving cash gifts does not work with the holiday budget, a smaller gift or perhaps a day off from providing services could be meaningful, as well.
Thursday, December 6, 2012
Financially Surviving the Holidays with Family
People are strained financially so many different ways during the holidays. For many, holiday spending goes beyond gift giving. It also includes entertaining and holiday travel to visit family. Below are some ideas for keeping out of debt while still enjoying quality time with family over the holidays.
Set ground rules with family regarding holiday gift giving. Discuss a dollar amount and make sure everyone sticks to it. Talking about how much everyone can afford to spend can feel awkward at first, but in the end no one has to feel stressed when the bills start piling up in January.
Another way to save on family gift giving is to have everyone draw a name out of a hat. That way, all family members will receive a gift and this can really help keep costs down especially in larger families. Some families decide to buy only for the children to save time and money.
Homemade gifts can actually be more thoughtful and will normally cut costs, as well. Volunteering time to help a family member by babysitting or helping them finally finish up that home improvement project would be much appreciated.
An entertaining idea for spending less is to have everyone in the family agree to find creative or funny gifts from a dollar store or yard sale.
If everyone agrees, maybe skip the gift giving and instead spend time bonding as a family donating to or volunteering at a local charity. There are many who are less fortunate and helping them experience some joy can mean much more than a store bought gift.
If hosting a holiday meal, make it a potluck. That way all of the expense does not fall on one person.
For holiday travel, there are websites available to find the best deals on flights, hotels and car rentals. Some sites like Yapta and Bing Travel even track or predict the cost of air travel and will send email updates when prices change. In addition, sometimes flying on Christmas Day or New Year's Eve can decrease the cost of airfare.
USAToday.com posted an article titled, How to save on family holiday travel, with suggestions for how to get the best deals on where to stay and where to eat while traveling. For even more tips, visit Investopedia.com and their Tips for avoiding a Spending Hangover.
Set ground rules with family regarding holiday gift giving. Discuss a dollar amount and make sure everyone sticks to it. Talking about how much everyone can afford to spend can feel awkward at first, but in the end no one has to feel stressed when the bills start piling up in January.
Another way to save on family gift giving is to have everyone draw a name out of a hat. That way, all family members will receive a gift and this can really help keep costs down especially in larger families. Some families decide to buy only for the children to save time and money.
Homemade gifts can actually be more thoughtful and will normally cut costs, as well. Volunteering time to help a family member by babysitting or helping them finally finish up that home improvement project would be much appreciated.
An entertaining idea for spending less is to have everyone in the family agree to find creative or funny gifts from a dollar store or yard sale.
If everyone agrees, maybe skip the gift giving and instead spend time bonding as a family donating to or volunteering at a local charity. There are many who are less fortunate and helping them experience some joy can mean much more than a store bought gift.
If hosting a holiday meal, make it a potluck. That way all of the expense does not fall on one person.
For holiday travel, there are websites available to find the best deals on flights, hotels and car rentals. Some sites like Yapta and Bing Travel even track or predict the cost of air travel and will send email updates when prices change. In addition, sometimes flying on Christmas Day or New Year's Eve can decrease the cost of airfare.
USAToday.com posted an article titled, How to save on family holiday travel, with suggestions for how to get the best deals on where to stay and where to eat while traveling. For even more tips, visit Investopedia.com and their Tips for avoiding a Spending Hangover.
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