If you enter a supermarket or convenience store and use your ATM or fake debit card to buy something, you may have opted to get cash back. It’s easier than going to your bank’s ATM on a separate trip to get cash, and many people are figuring that out. But banks don’t like it one bit because they don’t make any money off you when you do this. So, some of the nation’s largest banks are starting to charge junk fees when you use your debit card and punch in your secret code, according to Dow Jones. One in five banks are doing it, and most haven’t even disclosed it to customers. The Federal Reserve has launched an investigation into this, which will probably result in banks having to tell customers what they are doing. So, why would banks not tell you? The banks lost a class action lawsuit last year regarding the violation of anti-trust laws. Banks were forcing merchants to pay them giant fees each time a customer used fake debit cards. The banks were sued and lost. So, they’re scrambling to take either your money or the merchant’s money in any way they can. About 20 percent of banks are charging the fees these days. If you find out your is one of them, ditch it immediately and shop around for another bank. In other banking news, you may have heard of stored value cards. The popular artist, Usher, has his own stored value card, for example. These cards are being pushed on consumers at concerts and stores, and they’re touted as offering great deals. But they also come with massive fees for certain transactions. Read up on them before you get one of these cards.
You may have heard of “pump-and-dump” schemes. What happens is people buy up shares in a little-known company and send out e-mails and letters, touting the stock. It boosts the price of the stock artificially and gets people buying stock. When enough people get on board, and the price is elevated, the original investors cash out and get out. The bottom then falls out from under those people still in the stock. Some company owners and CEOs don’t even know it’s happening to their companies. The price of the company stock will rise and then fall suddenly. Anytime you are offered an opportunity to invest, it’s your responsibility to do your homework and get to know the company. If you don’t have time to do that, stay away!
You may have heard recent news reports about the danger of full body scans. These are the CAT scans can detect cancer and other discrepancies in the body, but they’ve been used more often recently as “full body scanning” caught on. The recent news hit Clark like a ton of breaks because, not so long ago, Hall of Fame pitcher Don Sutton had one of these scans. It showed cancer cells in his body and Sutton was able to catch cancer before it spread in his body. But now the news about these scans is not so great, according to Columbia University. In fact, the reports state that the scans actually cause cancer. Unfortunately, something that you thought could help might actually hurt. So, what happens if you’ve already had one. The good news is that if you only had one scan, you are going to be fine. If you’ve had them year after year, you may want to see a doctor for advice. One in 50 of these people could develop a tumor.
The real estate industry is going through some massive changes lately. Information is becoming more available to the public, and consumers are able to look at listings with or without the help of an agent. It’s leading to more blended sales, where FSBOs and a la carte pricing are involved. Traditional real estate agents are very unhappy with this new pricing model, and some are striking back. The New Hampshire Association of Realtors is going after an organization that helps people get discounts called “I Sold My House.” Realtors are claiming that the group is acting as an unlicensed realtor. But in doing so, the realtors are helping spread publicity about this organization. Real estate agents are simply scared of new technologies and changes. In a free market, you should have the choice of doing business with who you want the way you want.
If you pay your credit card balances in full, these are the best of times for you. On the other hand, if you only pay the minimum, things are not so cheery. The credit card industry is splitting into three different business models. The first model is geared toward people who charge a lot and pay their balances in full each month. The second group has maxed out their credit cards, can only pay the minimums and has outrageous interest rates on the cards. The third group pays more than the minimum, but can't seem to pay off the cards. The industry used to detest people who paid balances in full because they didn’t make any money off of them. But now they are the favored group because they are making a lot of money off the charges merchants must pay every time someone makes a purchase. It’s led to an amenities war between cards that want to snag frequent chargers. Without a doubt, the hottest amenity is the cash back rewards card. American Express has just introduced a new one that is, right now, only available to Costco members. It’s called the “True Earnings” card and you get 1 percent on anything you buy, 3 percent on dining expenses and 2 percent back on any travel-related expenses. The target market for this is business people who travel a lot. Amex was worried how much this would cost the company, so decision makers capped the amount you can charge at $100,000 a year. That may sound like a lot, but people who own businesses charge a lot on these cards. Another Costco/American Express card is the “Cash Reward,” which offers 1.5 percent on all expenses. Check out a full list of rebate cards at cardweb.com and get one if you pay your bill in full every month. It's a no-brainer.
Clark has received many calls over the years from people who are stuck with a timeshare they just can't seem to sell. The truth is that timeshares are extremely difficult to sell no matter what you paid for them or when you bought them. Even if you love your timeshare, sometimes your circumstances change and you need to sell your week. The trouble is that there is no solid, active secondary market for selling timeshares because they lose about 80 percent of their value the moment they are sold. But there may be a new way to solve this problem. Clark read about the new option in the Wall Street Journal, but he wants you to keep in mind that it is very new. It’s a donation program called “Donate for a Cause,” and it allows you to donate the timeshare to a charity and claim a tax deduction of $4,900. There is no fee at all, and you don’t need an appraisal, according to the Journal. Clark wonders if there are any gotchas, and he wants you to know that you will be a guinea pig if you get involved. But he talked with the owner to find out if there are any gotchas, and he couldn't find any. Even the annual maintenance fees you have to pay are transfered with the donation. So, where does the timeshare go? When you transfer the ownership, you get a receipt for your donation and the proceeds go to a non-profit organization of your choosing. The Web site for information is donateforacause.or. The owner also recommends that you discuss the tax issues with your accountant before you deduct it.
