Dec 14, 2021 | Blog, Consumer Protection
The FDIC Reminds Consumers To Read Bank Financial Disclosures And Statements Provided With Banking Services To Ensure Consumers Know What Is Available To Them, Along With Any Associated Fees And Benefits
Bank Financial Disclosures
Federal and state laws require banks to provide documents to consumers about account and loan offerings. These documents, called disclosures, contain important information about the terms, fees, and interest rate applicable to your accounts. While some of the disclosures are lengthy, it is important that you read and understand them. If you don’t have a copy of the disclosures discussed below, contact your financial institution.
The following are some disclosures that are important to review:
Deposit Disclosures
Your deposit account disclosure, also known as a truth in savings disclosure, was given to you when you opened your checking and/or savings account. It tells you about the annual percentage yield (“APY”), interest rates, minimum-balance requirements, account-opening information, and fees. You may receive additional disclosures about your deposit account upon request, if certain terms of the account change, or if your bank sends a periodic statement. A review of these disclosures will allow you to better understand your account terms. You can find more information about deposit accounts and disclosures by clicking Choosing and Using the Right Bank Account.
Loan Disclosures
For your loans and credit cards, you will have received a truth in lending disclosure. It will tell you about the annual percentage rate or APR (the cost of credit expressed as a yearly rate as a percentage), the finance charge (the cost of credit, including interest and certain fees, expressed as a dollar amount), the amount financed (the dollar amount of credit provided to you); and the total of payments (the sum of all the payments that you will have made at the end of the loan). The disclosures for a mortgage loan will include additional information, including whether or not you have a prepayment penalty.
Privacy Disclosures
Another disclosure you will want to review is your bank’s privacy disclosure. This document will tell you with whom your bank can share your financial information and for what purpose. It will also tell you whether or not you can opt-out of any sharing, and if you can opt-out, how to do so. For more information about your privacy disclosure, please click Your Rights to Financial Privacy: How to Stay Informed.
Additional Resources
Consumer Financial Protection Bureau (CFPB), What is a Truth in Lending Disclosure?
National Credit Union Administration (NCUA), Why Reading Account Disclosures is Important
Federal Reserve Bank of St. Louis, A Closer Look at Credit Card Disclosures
Federal Reserve Bank of St. Louis, Credit Card Statements Explained
Source: FDIC.gov
Dec 13, 2021 | Blog, Consumer Protection
Important Information For Consumers About Understanding Common Bank Deposit Account Fees, The Options Available, And Ways Consumers Can Minimize Or Avoid Bank Fees
Deposit Account Fees
Banks are required under federal law to disclose any fees they charge in connection with a deposit account. Ask your bank, or any bank you are considering opening an account with, for the account opening disclosure and fee schedule. All deposit-related fees that your bank can charge must be listed in these documents. Common fees might include monthly maintenance or automated teller machine (“ATM”) withdrawal fees.
Overdraft Fees
Overdraft fees occur when you don’t have enough money in your account to cover your transactions. The cost for overdraft fees varies by bank, but they may cost around $35 per transaction. These fees can add up quickly and can have ripple effects that are costly. Some banks also may charge what are known as continuous overdraft fees, or daily overdraft fees. These are charges assessed every day the account remains overdrawn.
In general, for debit card transactions at ATMs or at merchants, consumers must opt-in, or agree up front, that the bank can charge you an overdraft fee for any debit card transaction that overdraws the account. If you do not opt-in, you cannot be charged a fee; however, your bank may refuse your purchase if it will overdraw your account.
If you do opt-in for overdraft protection or coverage, then your bank may pay a debit card purchase or ATM transaction, even if the transaction overdraws your account. You will be charged any overdraft fees that are incurred as a result. The opt-in form should be provided by your bank with the other account opening disclosures. If you change your mind at any time after opting-in, you can still opt-out by contacting your bank.
If you have a separate savings account, you might think about linking your savings account to your checking account when your bank provides this option. If you overdraw your checking account, the bank can pull funds from your savings to cover the shortage, as long as you have enough funds available. Your bank may still charge you a fee for transferring the funds automatically, but it is typically less than an overdraft charge.
“NSF” Fees
While you have a choice to opt-in or opt-out of overdraft coverage for debit card transactions, you may not have a choice when it comes to using paper checks or other ways of making payments or purchases from your account. Keeping track of your account balance will help you avoid charges for overdrawing your account in those situations, and also if you choose to opt-in for debit card transactions. Banks are not required to obtain your opt-in for Non-Sufficient Fund (“NSF”) fees. If you write a check for more money than you have in your account without any overdraft coverage, the check will not be paid but you will still be charged an NSF fee.
Also, Automated Clearing House (“ACH”) transactions, such as your direct payment or bill pay services, may be declined if you do not have enough funds in your account and be subject to an NSF fee.
Banks typically charge a NSF fee for each transaction, and these fees too can be costly as they can have ripple effects similar to overdraft fees. It is your responsibility to stay current with the checks and transactions you have made from your bank account. Make sure to look at your bank statements and try to use online banking and alerts to help you keep track of your bank account transactions.
Monthly Maintenance Fees
Banks can charge a monthly fee to maintain deposit accounts. These fees may be lower or waived in certain situations, such as when you have direct deposit, maintain a minimum balance, or make a certain number of transactions each month. You might consider a bank that allows you to avoid monthly maintenance fees by direct depositing your paycheck. Ask if other fees can be waived with direct deposit. Signing up for paperless statements and getting multiple products from one bank (instead of several banks) may be a way to eliminate some monthly maintenance fees.
Minimum Balance Fees
Some accounts may have a minimum balance requirement to avoid a fee. If you are required to have a minimum balance in your account, be sure to maintain that balance to avoid fees. Ask if your bank offers low balance alerts to notify you, so that you don’t unknowingly drop below the minimum balance requirement.
ATM Fees
Some banks charge for using ATMs not in their network. To avoid charges, use only the ATMs that are in your bank’s network, or those that allow you to use your ATM or debit card for free. Also, ask if your bank reimburses you for using any ATMs outside its network. Some banks will do that for a certain number of transactions per year.
Finding The Right Bank Account
The FDIC recommends comparison shopping at a number of banks before you open an account. To help you choose an account based on what is important to you, use the FDIC’s checklist: How to Pick a Bank Account. Choose the services you need and skip those that you don’t, especially if they come with a price tag. Get a copy of the bank’s deposit account disclosure and fee schedule, and read them carefully so you know the cost of the services you require. Choose the account that has the services you need at the lowest cost.
Today, there are more transaction account options than ever before. Some banks offer customers the option of a ‘checkless’ checking account. These card-based accounts may offer consumers the ability to avoid overdraft charges completely. There are also banks that offer accounts with low-fees, and no overdraft or NSF fees, such as Bank On certified accounts. These accounts may also provide other free services such as ATM withdrawals. To obtain additional information on these low-fee bank accounts, please click #GetBanked.
The FDIC also recommends to call your bank and ask if they can waive fees you have incurred, especially if you have not had a lot of fees in the past. If your bank cannot waive specific fees, ask if the bank has a different account that does not have fees for the services you need. If not, and you find the fee to be costly, consider shopping around for an account at a different bank.
For additional information, please click the Consumer Financial Protection Bureau’s New insights on bank overdraft fees and 4 ways to avoid them.
Source: FDIC.gov
Oct 21, 2021 | Blog, Consumer Protection
Amazon Impersonators Target Consumers, Take Advantage Of Amazon’s Name – Thousands Have Been Targeted In A “Runaway Favorite For Scammers”
The FTC recently reported that “Amazon tops [the] list of impersonated businesses.” According to the FTC, reports to the FTC’s Consumer Sentinel point to Amazon as a runaway favorite for scammers. From July 2020 through June 2021, about one in three people who reported a business impersonator said the scammer claimed to be Amazon. About 96,000 people reported being targeted, and nearly 6,000 said they lost money. Reported losses totaled more than $27 million, and the reported median individual loss was $1,000.
These impersonators, according to the FTC, get your attention with messages to call about suspicious activity or unauthorized purchases on your Amazon account. When you call the number, a phony Amazon representative tricks you into giving them remote access to your computer or phone to supposedly fix the problem and give you a refund. But then—whoops—a couple of extra zeros are keyed in and too much money is (supposedly) refunded. They tell you to return the difference. In fact, some people have reported that the “representative” even begged for help, saying Amazon would fire them if the money wasn’t returned.
To make their lies about refunding that so-called overpayment more believable, scammers, reportedly, have accessed people’s online banking. Scammers, according to the FTC, move money from one account to another—say, from savings to checking. Then, when people see a large deposit in their checking account, they think it’s the refund, but it’s all fake. If they send money, as requested, they end up sending their own (very real) money.
Scammers also tell people to buy gift cards and send pictures of the numbers on the back. The scammers may call these numbers “blocking codes” or “security codes,” and explain that sharing them can block the hackers who, supposedly, took over the Amazon account in question. But the only thing those numbers are good for is getting (or stealing) the money on the card. After people send pictures of the gift cards, they often report getting texts confirming a supposed account credit in the amount of each gift card purchase. That’s just another trick scammers use to get their targets to buy more cards.
Another scam involves text messages saying you won a raffle for a free product from Amazon. Consumers who click the link to claim their free prize then have to enter credit card information to pay for “shipping.” Before long, they see charges to which they never agreed.
The FTC reports that the data suggests that Amazon impersonation scams may be disproportionately harming older adults. Over the past year, people ages 60 and older were over four times more likely than younger people to report losing money to an Amazon impersonator. Older adults also reported losing more money—their median reported loss was $1,500, compared to $814 for people under age 60.
The FTC has provided the following guidance to avoid some common tricks business impersonators use:
- Never call phone numbers given in unexpected calls, texts, emails, or messages on social media. And don’t click any links. Those are scams.
- If you’re worried, check it out. Go directly to the company’s website to find out how to reach them. Don’t trust the phone numbers or links that come up in search results.
- Never give anyone remote access to your devices unless you contacted the company first (using its real number). If someone tells you to give remote access to get a refund, it’s a scam.
- Never pay by gift card. Nobody legit will ever require you to. And never send pictures of gift cards. If someone tells you they need the numbers on the back of a gift card, it’s a scam.
- Talk about it. If you’re getting these messages, so are people you know. Help them avoid the scam by sharing what you know.
Source: FTC.gov
Feb 17, 2021 | Car Problems Car Complaints, Consumer Protection
NHTSA Active Vehicle Defect Investigations
Kehoe Law Firm, P.C. is making consumers aware that monthly reports of National Highway Traffic Safety Administration (“NHTSA”) recalls and active vehicle defect investigations can be viewed by clicking “NHTSA Monthly Reports: Recalls and Investigations.”
Investigations are grouped according to type of investigation (i.e., Preliminary Evaluation, Engineering Analysis, Recall Query, and Defect/Recall Petition) and identify the products under investigation, the alleged problem, and the investigation status.
For details on specific investigations, consumers can enter the investigation’s “Action#” in the NHTSA SAFETY ISSUE ID box, after selecting the “search by NHTSA ID” link on the NHTSA “Safety Issues & Recalls” page (click here.)
Types of NHTSA Defect Investigations
The types of defect investigations are defined by the NHTSA as follows:
PRELIMINARY EVALUATION (“PE”)
Initial phase of a NHTSA investigation, a PE is prompted after a review of consumer complaints and/or manufacturer service bulletins suggest a safety defect may exist. The results of a PE determine whether the investigation will be upgraded to an Engineering Analysis or closed. Most PEs are resolved within four months.
ENGINEERING ANALYSIS (“EA”)
Second and final phase of a NHTSA investigation, an EA is undertaken if data from a PE indicate further examination of a potential safety defect is warranted. The results of an EA determine whether a safety recall should be initiated or the investigation should be closed. Most EAs are resolved within one year.
RECALL QUERY (“RQ”)
NHTSA monitors recalls to ensure that the scope, completion rate, and remedy are adequate. If recall adequacy comes into question, an RQ is opened to determine if the scope of the recall should be expanded or an adjustment in existing remedies is required.
DEFECT OR RECALL PETITION (“DP” OR “RP”)
NHTSA may be petitioned to investigate an alleged safety defect or whether a manufacturer has successfully carried out the requirements of a recall. If the petition is granted, NHTSA opens an appropriate investigation. If the petition is denied, the reasons for denial are published in the Federal Register.
VEHICLE OWNERS AND LESSEES AFFECTED BY AUTOMOTIVE DEFECTS OR SAFETY RECALLS ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C., [email protected], FOR A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.
Source: NHTSA.gov
Feb 15, 2021 | Car Problems Car Complaints, Consumer Protection
Consumers Have The Ability To Check To See If Their Vehicle Is Involved In A Safety Recall
Kehoe Law Firm, P.C. is making consumers aware that the National Highway Traffic Safety Administration (“NHTSA”) provides a Vehicle Identification Number Search Tool (“VIN Search Tool”) which allows vehicle owners to determine if a specific vehicle needs to be repaired as part of a safety recall.
Vehicle Identification Number (“VIN”) & The VIN Search Tool
Vehicle owners can look at the lower left side of their car’s windshield for the unique, 17-character VIN. The VIN is also located on a car’s registration card, and it may also be printed on a vehicle insurance card.
The VIN Search Tool Will Show
- An unrepaired vehicle affected by a vehicle safety recall in the past 15 calendar years;
- Vehicle safety recalls from major light auto automakers, motorcycle manufacturers, and some medium/heavy truck manufacturers.
- A vehicle with a repaired safety recall. If a vehicle has no unrepaired recalls, the message: “0 Unrepaired recalls associated with this VIN” will appear;
- Manufacturer customer service or other nonsafety recall campaign;
- International vehicles;
- There may be a delay with very recently announced safety recalls for which not all VINs have been identified. VINs are added continuously and should be checked regularly;
- Safety recalls that are more than 15 years old (except where a manufacturer offers more coverage);
- Safety recalls conducted by small vehicle manufacturers, including some ultra-luxury brands and specialty applications.
How To Check A Vehicle’s VIN For Safety Issues & Recalls
To check a vehicle affected by a safety recall, please click VIN Search Tool and enter the vehicle’s 17-character VIN.
Additional Information About Motor Vehicle Safety Defects And Recalls
Please click “What Every Vehicle Owner Should Know,” for more information about motor vehicle safety defects and recalls, including information about how and why recall campaigns are initiated, as well as one’s rights and responsibilities when a vehicle or item of motor vehicle equipment is recalled.
Do You Think You Have Experienced An Automotive/Vehicle Defect? Is Your Vehicle The Subject Of A Defect Investigation?
If you have been affected by a vehicle problem, please contact Kehoe Law Firm, P.C. by completing the form on the right, or by sending an e-mail to [email protected], to help you determine whether your vehicle is the subject of a defect investigation or to request a free, no-obligation evaluation of potential legal claims.
Source: NHTSA.gov
Mar 25, 2020 | Blog, Consumer Protection
FTC Identifies Seven Coronavirus Scams That Target Businesses – Seven B2B Coronavirus Scams That Try to Exploit Companies’ Concerns About COVID-19
Kehoe Law Firm, P.C. is making consumers and businesses aware about seven Coronavirus scams that target businesses, as reported by the Federal Trade Commission. The FTC has identified the following B2B scams that attempt to exploit COVID-19 concerns:
“PUBLIC HEALTH” SCAMS
Fraudsters are sending messages that claim to be from the Centers for Disease Control and Prevention (“CDC”), World Health Organization (“WHO”), or other public health offices. They may ask for such things as Social Security Account Numbers or tax IDs. Other variations direct you to click on a link or download a document. The FTC advises to remind your staff not to respond to such messages, in addition to NOT downloading anything or clicking on links within unsolicited email. It’s the latest form of phishing aimed at stealing confidential data or installing malware on your network.
GOVERNMENT CHECK SCAMS
Regarding news stories about whether financial help for businesses might be available in the future, please remember that criminals read those headlines and use them to make their phony pitches sound more credible. If someone randomly calls or emails claiming there is money available from a government agency if you just make an up-front payment or provide some personal information, it’s phony. The FTC’s checks from the government blog post offers tips on spotting those scams.
BUSINESS EMAIL SCAMS
The FTC has warned companies about frauds perpetrated via business email. For example, in a CEO scam, an employee gets a message that appears to come from a company higher-up directing the person, for example, to wire money, transfer funds or send gift card codes. In reality, a con artist has spoofed the boss’ email address or phone number. Why is the FTC renewing the call for vigilance? The economic upheaval caused by the Coronavirus has led to a flurry of unusual financial transactions – expedited orders, cancelled deals, refunds, etc. That’s why an emergency request that would have raised eyebrows in the past might not set off the same alarms now. Compounding the problem is that teleworking employees cannot walk down the hall to investigate a questionable directive. Warn staff about these scams and give them a central in-house contact where they can verify requests they may receive.
I.T. SCAMS
An I.T. scam works like a CEO scam, but this time the call or message claims to come from a member of your technology staff asking for a password or directing the recipient to download software. These scams pose a particular problem now due to what cybercrime experts call social engineering: the dark art of manipulating human behavior to facilitate fraud. Your employees already may be distracted by changes to their routine and your tech support team is swamped. Taking advantage of this temporary “upside down-ness,” con artists may do a quick online search to glean a tidbit to really sell their story – for example, “I spoke with Fred, who said you were having a computer problem” or “The meeting has been shifted to our new teleconferencing platform. Here’s the link.” Your best defense is a workforce warned against this form of fraud.
SUPPLY SCAMS
With many businesses scrambling for supplies, it’s wise to pay attention to warnings about websites that mimic the look of well-known online retailers, which claim to have the essentials you need, but, in reality, they are fakes that take your “order,” grab your credit card number, and run. The safer strategy is to type in URLs you know to be genuine. And before taking a chance on an unfamiliar supplier, check them out with trusted industry colleagues.
ROBOCALL SCAMS
While working from home, employees are hearing a new crop of annoying – and illegal – robocalls. It’s no surprise that fraudsters who already flout the law would try to exploit people’s COVID concerns to make money. Some of these tele-phonies pitch bogus test kits and sanitation supplies. Others have businesses in their sights. Curious what these calls sound like? This recording targets “small business who may be affected by the Coronavirus,” warning them to “ensure your Google listing is correctly displaying. Otherwise customers may not find you online during this time.” We’ve seen scams like this before and the call definitely isn’t from Google. Remind your staff that the only right response to an illegal robocall trying to sell something is to hang up.
DATA SCAMS
With more people telecommuting, hackers are hoping companies will drop their online defenses, making it easier to infiltrate data-rich networks. We have tips to help your staff maintain security when working from home. Also, the National Institute of Standards and Technology (‘NIST”) has resources on making a safer transition to a remote workplace. According to the FTC, a good place to start in this regard is NIST’s updated Telework Cybersecurity page, as well as NIST’s infographic, Telework Security Overview & Tip Guide, their recent bulletin on Security for Enterprise Telework, Remote Access, and Bring Your Own Device (BYOD) Solutions,and their advice on Navigating the Conference Call Security Highway.
Source: Federal Trade Commission – FTC.gov
