Cordray: Change Credit Card Rules for Stay-at-Home Parents

For years, credit card restrictions have discriminated against stay-at-home parents who do not bring in enough income to get approved, even if their spouse has sufficient income. The Consumer Financial Protection Bureau is hoping to change that.

CFPB Director Richard Cordray announced last week that they would be proposing a new rule where credit card eligibility would be based on household income instead of individual income. If the rule is put into place, more stay-at-home parents with strong credit would be eligible for credit cards.

At My Credit Specialist, we are very excited about this change. It is unfair for a stay-at-home spouse to be denied for a credit card, even if they have stellar credit and their spouse brings in enough income. Besides, it is important for both spouses to have a strong credit history if they ever need a loan of any kind in the future. Using a credit card responsibly and paying it off is the easiest way to build a credit history. Hopefully this rule will be put into place and more Americans will have access to credit.

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Credit Card Processors Halt Processing for Medicinal Marijuana

At My Credit Specialist, we are not anti-credit card. Some financial experts want everyone to cut up their credit cards, but we encourage responsible credit card usage. Buy a cup of coffee, buy lunch, or pick up another expense that you can afford to pay back right away.

There are few times when we are reporting on places where you cannot use your credit card, but as it so happens, credit card processors are cutting off their services to California medical marijuana dispensaries. They have been under pressure from the federal government for awhile, but they officially stopped processing payments after Sunday, July 1.

Before going further, My Credit Specialist does not take an official stance on medical marijuana. Our interest in this story is merely how it affects the American consumer and credit card usage. That being said, what does this mean for people who use medicinal marijuana? Well, they will have to pay for their cannabis entirely in cash which activists claim will make patients a target for thieves. Besides that, the federal government is interfering in statewide laws, making it clear that medicinal marijuana will not be respected as a state's issue. The biggest problem is that this action sets a precedent that the federal government can kill a good or service by putting pressure on the credit card processors. An overly zealous federal government could bring about a second prohibition or discourage consumers from purchasing a good or service by making it cash-only.

We are curious what our readers think about this issue. Do you think the federal government is right to discourage marijuana usage, or are they infringing on state's rights and credit card processors' freedoms? Leave a comment below and tell us what you think! You can keep up with the latest news from My Credit Specialist by liking My Credit Specialist on Facebook and following My Credit Specialist on Twitter. Also, go to http://www.mycreditspecialist.com to learn more about the credit restoration process and whether it is the right choice for you!

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I Love You, Phillip Morris-esque Credit Card Thief Uses Company Card for Fertility Treatments

In the 2009 film I Love You, Phillip Morris, Jim Carrey's character Steven does some creative accounting to steal from his company and support his extravagant lifestyle. Though the film is based on a true story, it is hard to believe that someone like Steven could pull off a similar scheme in today's business world, but Ligia Baciu of Orange County in California did just that.

Baciu worked at Sweet Life Enterprises from 2005 to 2009 in the accounting department overseeing the company's credit card accounts. During that time, she took out numerous company credit cards for her own use. Up until January 2010, Baciu spent over $236,000 on an engagement ring, hotel suites, designer clothing, and a new Audi. She even used a company card to pay for her domestic partner's fertility treatments.

The surprising part of the story is how long it took Sweet Life Enterprises to catch onto her credit card fraud after she left. Accountants at the company only discovered what Baciu was doing when they reviewed the company's credit card statements, and police just arrested her this week. She was charged with 21 felony counts of computer access and fraud and three felony counts of fraudulently using access cards, but still, she allegedly committed fraud for 5 years without getting caught. It took two years after she got caught for her to be arrested. Why has it taken this long?

Credit card fraud can happen to anyone, so check your credit card statements every month for suspicious charges. Also, make sure to keep your balance under 30 percent of your card's limit to get the best credit score possible. To get more tips for improving your credit health, follow My Credit Specialist on Twitter and like My Credit Specialiston Facebook. If you are struggling with bad credit, go to http://www.mycreditspecialist.com to find out if credit restoration is the right choice for you.

“Dead” Bank of America Customer is Not Dead, Seeks Compensation

America's big banks have taken a lot of hits in the past few years. JPMorgan Chase is in hot water over collection practices, HSBC and U.S. Bank were caught forging lost mortgage documents, and Bank of America has sped up its foreclosures. Chase Bank even got in trouble for erroneously reporting that customers were dead.

Well, Bank of America is back in the spotlight again for reporting that Arthur Livingston, a Bank of America customer for 19 years, was deceased. Livingston has been listed as deceased by Equifax, Experian, and TransUnion since May 2009, and he only found out when he applied for a loan in October last year. After months of hassle, he will be paying thousands of dollars more than he would have been if he had gotten the loan when he applied, mainly because the numerous credit inquiries have messed up his credit score. Additionally, he is currently living in a rental house with his family, and by the time their new home is ready, they will have spent around $12,000 in rent.

Arthur Livingston's situation is understandably frustrating, and I can't blame him for wanting Bank of America to compensate him for all the troubles he has run into for their mistake. Unfortunately, these situations have happened before, and they will probably happen again. The lesson that consumers can take away from Arthur Livingston's story is to regularly check their Equifax, Experian, and TransUnion credit reports, especially before applying for a loan. Then if an error occurs, you can catch it right away.

Do you know what's on your credit report? Is credit restoration right for you? Learn more about My Credit Specialist's credit restoration services here, and keep up to date on the latest credit and personal finance news on Facebook and Twitter.

Image: smokedsalmon / FreeDigitalPhotos.net

Bank of America, Wells Fargo Cash In On Move to Debit Cards

Since the recession, Americans have been wary of getting into any debt. Credit card use has gone down, and consumers are focusing their attention on saving as much as they can.

Bank of America and Wells Fargo have noticed this trend and found a new way to make some money off of their frugal customers. Debit card customers with Bank of America will have to pay a $5 monthly card usage fee, and Wells Fargo's customers will have to pay an extra $3 every month to keep using their debit card. These new fees have already been slammed by many consumer advocates, and even President Obama weighed in on the issue, saying, “Banks can make money. They can succeed, the old-fashioned way, by earning it.” Ouch.

Here is my biggest problem with Bank of America and Wells Fargo implementing these fees. Usually when a company adds a fee to their service, the customer knows what this money is going towards. Even in the case of the Netflix price hike, I understood that they were trying to get the streaming rights to more movies and keep Starz while attracting other networks to give them exclusive streaming. If Bank of America and Wells Fargo are going to add on new fees, then they should tell the customer where this money is going. Will they waive ATM transaction fees? Will there be more Bank of America ATMs across the country? What advantage will Bank of America and Wells Fargo customers have that they didn't have before?

Bank of America has made headlines in this blog numerous times because of their poor customer relations and notoriously bad business practices. This is yet another reason why Bank of America customers should switch to another bank, and Wells Fargo customers should consider switching as well. After all, what are Bank of America or Wells Fargo doing that another bank or credit union couldn't do just as well and without the fees?

To learn more about protecting yourself as a consumer, check out more of our articles at http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to learn more about My Credit Specialist and sign up today.

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Anti-Foreclosure Protests to Sweep Country from September Thru November

As protestors settle in for the long-haul down at Wall Street, more protests are currently being planned across the country in response to continued foreclosures (or in Bank of America's case, upping the foreclosures).

The protests are being organized by the New Bottom Line, a coalition of human rights and faith-based groups across the country including Alliance for a Just Society, Federation of Congregations United to Serve, and Main Street Alliance among others. From September 20 thru November 7, there will be protests in Seattle, San Francisco, Boston, Los Angeles, Chicago, New York City, Minneapolis, Denver, and Honolulu. Their message covers Wall Street greed and financial reform, and many of the people participating are personally affected by the surge of foreclosures.

Dixie Mitchell will be participating in the protests in Seattle. She is a truly incredible woman. Not only did she raise eight biological and fifty foster children but she also survived cancer and now is caring for her husband who is paralyzed from a stroke in 2008. In recent years, the expenses and loss of her husband's income became too much, and now their home will be auctioned off on October 28. You can watch an interview with Dixie Mitchell below, uploaded by 1WorkingWA.

Dixie Mitchell said she will be participating in the Seattle protests because she wants the bank to look her “in the eye.” “They haven't done their share to help,” she insists. “They don't even give you a chance...all they do is lose your paperwork and make you send it over and over again.”

To learn more about events sponsored by The New Bottom Line in your area, go to http://www.newbottomline.com/americans_to_wall_street_pay_us_back, and go to http://www.mycreditspecialist.com to sign up today with My Credit Specialist and start getting your financial situation on the right track.

Federal Reserve Fines Wells Fargo for Doctoring Mortgage Documents

Many American have a tough time getting a good deal with their mortgage, and shopping around for the best deal requires a great deal of work. For 10,000 Wells Fargo customers, however, they were blatantly cheated out of a better interest rate by Wells Fargo itself.

According to the Federal Reserve, Wells Fargo was altering customer's information on documentation applying for a mortgage. They changed customers' incomes and other financial information, and they would offer the customers higher interest rates even though they qualified for a lower rate. Wells Fargo is continuing to deny any wrongdoing, but the Federal Reserve has ordered that Wells Fargo pay an $85 million fine and give further compensation to the thousands of Wells Fargo affected.

This is greed at its ugliest. Thousands of homeowners could have had a lower interest rate on their mortgage, and instead, Wells Fargo allegedly encouraged them to take subprime loans that cost their customers substantially more. If the Federal Reserve's allegations are true, then consumers cannot know whether to trust anything their bank tells them. Consumers trust their banks when they apply for a loan, and they believe that their bank will give them a fair rate. The rate might vary slightly from lender to lender, but their bank won't work actively against the customer's best interests. Even if the allegations turn out to be false, many customers will have lost trust in their bank (if they haven't already) and will be more reluctantly to believe anything their bank tells them.

To learn more about protecting yourself as a consumer and getting the best credit possible, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to sign up for a free credit evaluation today.