Stay-at-home partners could be hurt by CARD act needs

The CARD Act, passed in 2009, is meant to help protect customers. One provision of the bill is that those that provide credit cannot issue credit unless the applicant can prove that they can repay it. The bill is causing some severe unintended consequences, however. Stay-at-home spouses are very possibly going to be losing financial freedom, under the provisions of this bill. Article source – CARD Act could strip stay-at-home partners of financial identity by MoneyBlogNewz.

Rules the CARD Act put together

To be able to safeguard customers from credit card abuses, the CARD Act has several provisions. In the Act, the way income is viewed changes. There are new rules for businesses. When applying for credit, “income” is very specific. It does not contain community property or household income. Instead, all income on an application for credit must be individual. This is meant to keep consumers from over-claiming income or qualifying for credit that they do not have the income to pay back.

Consumers get CARD Act feel

Stay at home parents may have a difficult time with the CARD Act rules. The CARD Act makes it extremely hard for someone who stays at home to get credit even though a partner working might bring home plenty of money. While this prevents individuals with no independent income from getting credit they may not be able to pay back, it also prevents stay-at-home spouses from building an independent credit history. Without credit, there can be less opportunity for jobs. That will make it harder on an individual if the relationship ends suddenly.

Problems with the CARD Act and property that belongs to a community

Married couples have “community property” in 10 of the 50 United States Partners have equal share of whatever is in the marriage according to the shared property law which could be changed with a pre- or post-nuptial agreement. For couples in community property states, the CARD act will require them to split their financial lives. The way the CARD Act works, those in other states are out of luck. One partner can’t help the other get any debt.

The CARD Act affects you also

The CARD Act provisions will be really hard on any person who’s a stay-at-home partner. Are you a stay-at-home partner without a job? Just prepare to have to get your partner’s signature on anything from unsecured loans to credit card. This means that establishing your own, independent credit history is very important. Make an effort to keep some kind of employment going. Also, talk about finances with your partner regularly.

Information from

NCLC

nclc.org/

The Library of Congress

thomas.loc.gov/cgi-bin/bdquery/z?d111:HR00627:@@@D&summ2=m&

Citi checks itself from charging multiple overdraft charges

Egregious overdraft fees at Citi definitely won’t be quite as much so when the bank changes the way it clears checks. Banks were forced to offer consumers a choice with overdraft protection on debit cards with financial reform. However, banks were allowed a loophole with checking accounts. {On Monday Citi said it will curtail the practice of milking overdraft charges from checking accounts by processing smaller checks first|By clearing checks written for smaller amounts first, Citi is keeping itself from stealing as much money as it has in the past with bogus fees|The lying, thieving bankers at Citi have chosen to restrain themselves from repeatedly charging overdraft fees by clearing smaller checks first|By clearing smaller checks first, Citi is essential taking away from itself the chance to charge its customers over and over for bounced checks. Source of article – Citi to give customers a break by clearing smallest checks first by MoneyBlogNewz|Citi is checking itself from charging repeat overdraft charges simply by letting smaller checks clear before a larger one sends the account into negative territory. Article resource –

More money taken by banks

About $20 billion was charged by banks in 2009 for overdraft protection on debit cards. Because of overdraft on checking accounts, another $12 billion was charged by banks. bank lobbyists managed to get voluntary overdraft loan programs for checking accounts exempted from financial reform, but the FDIC is considering an opt-in requirement at smaller state chartered banks for overdraft coverage on paper checks and electronic payments. The FDIC is being told to get banks to require consent, by Consumers Union, which is the Consumer Reports non-profit publisher, before checking account coverage can happen. If the FDIC goes along, consumers can expect banks, including Citi and B of A, to create other charges for instance increasing monthly checking account fees. When regulators respond, banks will discover other ways to make money for nothing.

Citations

Associated Press

finance.yahoo.com/news/Citi-to-start-clearing-apf-1510892963.html?x=0&sec=topStories&pos=main&asset=&ccode=

Consumer Reports

pressroom.consumerreports.org/pressroom/2010/11/consumer-reports-poll-only-22-percent-of-bank-customers-have-opted-in-for-debit-card-overdraft-protection.html

New York Times

nytimes.com/2010/03/10/your-money/credit-and-debit-cards/10overdraft.html?_r=1

Threat of autopilot finances highlighted by $16 million cable invoice

Several companies claim that computerized billing systems make life easier and bills more accurate. One cable consumer has been charged $16 million for one month’s worth of television. Watching the March Madness games on pay-per-view was the beginning of this overcharging nightmare. This particular bill has been reversed already. The lesson, however, is that keeping an eye on your finances is incredibly essential. Article source – $16 million cable bill quickly reversed by Time Warner by MoneyBlogNewz.

Cable invoice costs $16 million

Daniel DeVirgilio is an Ohio resident who subscribes to Time Warner cable service. At the end of last month, DeVirgilio received notification that his credit card had been dropped when he tried to pay his cable bill. A charge of $1 million per basketball game during March Madness was put on his account by Time Warner. This added up to $16.4 million total. Upon being informed of the glitch, Time Warner reversed the charges.

The danger of financial autopilot

Daniel DeVirgilio, like many other people, had his cable invoice set to autopay. Monthly invoice pay services where consumers just give over their credit or debit card number take place often. Each month, the invoice gets paid on its own. Invoice payers don't have to worry about this. If the charge hadn't been $16 million and gotten his charge card dropped, Daniel DeVirgilio would never have noticed. This is the only reason why he noticed something wrong.

The bills need to be paid

The $16 million cable invoice teaches at least one thing. It may not be a good idea to use autopay. Remember due dates of bills is never easy. Everyone has trouble with it. You can do several things without forgetting to pay your bills while waiting for them to arrive. The first option is to do the simplest thing — pay each invoice the day you receive it. Financially, that may not always be possible, so tracking the due dates on a calendar you see every single day is another way to make sure you don’t miss anything. Lastly, you can put your bills on auto-payment, however schedule a few hours, once or twice a month, to read over each invoice to ensure that there are no surprises. A $16 million cable bill is unlikely. Still, you may end up losing a lot with a couple extra dollar charges every month.

Information from

Digital Life Today

digitallife.today.com/_news/2011/04/04/6405791-time-warner-charges-man-164-million-for-cable-service?GT1=43001

Yahoo News

news.yahoo.com/s/yblog_thelookout/20110325/ts_yblog_thelookout/ohio-man-gets-a-16-4-million-cable-bill

Microsoft contributes grievance to EU antitrust analysis of Google

Last fall Google found itself being investigated in an antitrust probe by European Union authorities. Corporations that compete with Google in Europe say the search engine giant is greedy and that it must be contained. Microsoft took a stand with its Euro subsidiaries Thursday and filed a complaint of its own accusing Google of anti-competitive methods. Source of article – Microsoft adds complaint to EU antitrust investigation of Google by MoneyBlogNewz.

Google to worry about antitrust criticism Microsoft has

In Europe, Google could have to deal with the antitrust complaint that Microsoft filed saying that Google is limiting access to data needed with YouTube and Google services like this in order to hurt European consumers. Microsoft’s complaint towards Google throws its weight behind an ongoing antitrust investigation by the European Union Competition Commission. Microsoft's search engine Bing has been unable to get much attention in Europe while the Internet search market is about 95 percent under Google's thumb in Europe. Advertisers in Europe are just accustomed to using Google now. There have been complaints about competition and antitrust in Europe by many people already. Microsoft has decided to start fighting Google and complain after being in antitrust investigations for Windows for years and after paying the European commission billions in fines.

Obvious fights between Google and Bing

Background technologies that give one access to Google products for instance "application programming interfaces" are the center of Microsoft's European antitrust complaint. Microsoft alleges that Google fiddles with the application programming interfaces to interfere with access to YouTube by Bing and other competing search engines, thus herding their users toward Google. The Windows Phones cannot work with YouTube very well due to Google's programming, Microsoft suggests; which isn’t an issue on the iPhone or Android. There’s a problem with the Windows phones only because Apple isn’t in the competition. Bing is in the search engine market with Google making Microsoft a target. Another Microsoft claim is that Google is blocking advertisers from optimizing on other platforms that compete. The EU antitrust probe is already looking into this though.

Problem Google faces in Europe

Google can give its side of the story as European Union Commissioner allowed. Google has said the restraint on third-party software is to maintain the consistency of Google's ad service and that advertisers are allowed unfettered access to data. Microsoft is involved. This means the stakes are much higher. Google could face a fine of up to 10 percent of annual global revenues, which exceeded $29 billion in 2010. There might also have to be other changes. This would be done to business in Europe. The EU commission said that Google would be able to defend itself and avoid a fine by changing its business in Europe before Microsoft got involved.

Articles cited

Associated Press

finance.yahoo.com/news/Microsoft-throws-weight-apf-1337664829.html?x=0&sec=topStories&pos=6&asset=&ccode=

Los Angeles Times

latimesblogs.latimes.com/technology/2011/03/microsoft-files-european-antitrust-complaint-against-google.html

New York Times

nytimes.com/2011/04/01/technology/01google.html?src=busln

Episode of Top Gear gets BBC prosecuted by Tesla Motors

The popular TV show “Top Gear” may be causing the BBC some headaches in the courtroom. Tesla Motors is suing the BBC for alleged libel committed by “Top Gear” and the hosts. The electric vehicle manufacturer alleges that the show made detrimental and false claims during an episode which was intended to put the Tesla Roadster through its paces. The British Broadcasting Corporation is vigorously denying the allegations.

Response from Tesla Motors to Jeremy Clarkson’s stunt

The Tesla Roadster was tested depending on its range claims in a “Top Gear” episode on BBC2 in December 2008. The Guardian states that the show made Tesla Motors really angry. Now the company is suing the British Broadcasting Corporation for its false claims.

The Roadsters are supposed to get over 200 miles on an electric charge although the Tesla Roadster only ran for 55 miles according to “Top Gear” host Jeremy Clarkson. The show also claims the Roadster’s brakes ceased to function, and depicts the “Top Gear” crew pushing the car from the private “Top Gear” test track after it allegedly ceases to run. This made Tesla angry. The business lost business.

vehicle marker asserts false claims were made

According to Tesla, the “Top Gear” show was lying. The Roadster never really ran out of charge in it. USA Today reports that Tesla claims to have monitored the 2 vehicles loaned for testing to the show while neither went below 25 percent of the charged power. A fuse in the braking system, not the brakes, failed, in accordance with Tesla. The brakes would have continued to work just fine.

The Tesla Roadster is "an electric vehicle you would actually want to buy," That has "a motor the size of a watermelon, with one moving part," in accordance with host Jeremy Clarkson on the show. He also said it was good that the car was able to, in less than four seconds, get from 0 to 60 miles per hour.

Tesla really just wants the episode to stop airing although it doesn’t want much in monetary damages. Forbes states that Tesla has been angry for a while over the show however didn’t start legal proceedings until the concern of the claims in the show stopped being addressed by BBC.

Comments tend to trigger trouble

”Top Gear” has been in a lot of controversy in the past. The show is known for troubles while the hosts, Richard Hammond, James May and Jeremy Clarkson, have been known for the rude and offensive comments they make. This show is just like every other automotive television program. It wants the vehicles with horsepower that guzzle lots of gas. There are over 300 million individuals in the world that watch "Top Gear." About 6 million of them are from Britain, states Bloomberg.

Articles cited

The Guardian

guardian.co.uk/environment/2011/mar/30/tesla-sue-top-gear

USA Today

content.usatoday.com/communities/driveon/post/2011/03/tesla-top-gear-jeremy-clarkson-elon-musk-lawsuit/1

Forbes

blogs.forbes.com/hannahelliott/2011/03/30/tesla-sues-top-gear-for-libel/

Bloomberg

bloomberg.com/news/2011-03-30/carmaker-tesla-sues-bbc-s-top-gear-over-electric-roadster-test.html

Fed denies Bank of America dividend increase

The Federal Reserve is forbidding Bank of America from increasing shareholder dividends, which are currently once cent per share. After a round of stress tests, the Fed told the biggest banks they were fit enough to increase payouts to shareholders. But Bank of America was the exception. Some financial experts are concerned the Fed’s blessing for banks to release capital to shareholders will put the banks in an untenable position in the event of an economic relapse into recession. Article resource – Why allowing banks to boost shareholder dividends is a bad idea by MoneyBlogNewz.

No Fed approval for Bank of America

The Federal Reserve heard from Bank of America that it wanted to, in the second half of 2011, to boost shareholder dividends in January. The bank was anticipated to raise its quarterly dividend by up to 8 cents, about 20 percent of its envisioned earnings this year. Because of the decision Bank of America made to lose $2.24 billion past year getting Countrywide in 2008 during the housing sector drop, the Fed told the bank not to do it. There has also been pressure from investors to get Bank of America to buy back bad mortgage securities. These were sold before the meltdown started. The Fed gave permission to other banks though. This involved U.S. Bancorp, Wells Fargo and JPMorgan Chase. Now Bank of America has a plan to give a new proposal to the Fed. This will occur before June is over.

Why would banks increase dividends for shareholders?

The economy will not be able to grow without increasing dividends helping banks raise more equity in the future, Wall Street banks argue. banks are able to lose equity but get more investors by paying shareholder dividends. Leverage is all bankers want. banks fund over 95 percent of investments in debt taking other people's money although companies like Google use equity to get funded. Equity is something banks don't need because leverage makes executives and shareholders lots of money. This is assuming there is health in the financial sector. banks also stay away from equity because the more equity they hold, the more liable they’re for the risks they take. They will default at their own expense with their risk. The working class individuals are not needed to help.

Possibility of another bailout

There were several highly leveraged banks noticed during the financial crisis. The Fed was worried about this. Many feel like shareholder dividend increases shouldn't be allowed unless the economy is strong first. The New York Times Simon Johnson compared the leveraged bank to getting a mortgage for 98 percent of the purchase price with a tiny down payment. Sometimes the home price will go up. That means it was worth the risk. Creditors end up missing out while the borrower loses if they drop. There’s a difference between the two though. The banks have learned they’re too large to fail when working for the people. When a highly leveraged bank fails, a government bailout rescues its executives, shareholders and creditors, and U.S. taxpayers get the shaft.

Citations

New York Times

economix.blogs.nytimes.com/2011/03/24/dividends-lost/?emc=eta1

Business Insider

businessinsider.com/how-bank-dividends-help-wall-street–and-hurt-almost-everyone-else-2011-3

CNN Money

money.cnn.com/2011/03/23/news/companies/bank_of_america_dividend/index.htm

No one should be troubled by national vacancy rate

The national vacancy rate has reached 13 percent, or the percentage of houses in the nation that are sitting empty. Since that figure doesn’t reflect how many of those houses are the; second, third or fifty-seventh home owned by the wealthy, that figure is incredibly misleading. The housing market is certainly down, however not entirely out.

Hot stops for vacations having trouble selling vacation homes

The economic statistics and indicators on real estate are viewed by individuals each day. These make it seem like the housing market is doomed. For instance, CNN recently published an article that said up to 13 percent of homes sit empty in The United States. The statistic is misleading really. CNN also states that vacation places like Maine, Florida and Arizona are where the majority of the vacancies are. There was an increase in the last four years in vacancies from 12.1 percent to 13 percent. That is less than a 1 percent increase.

Increase in pending sales

Bloomberg states that there was a rise in February of 2.1 percent in the number of homes officially in the process of selling, or Pending sales. The dip in home sales over the past few months was attributed partially to frigid winter conditions, as not a soul wants to go house hunting in the middle of a blizzard. The housing market isn’t doing as well nevertheless considering pending sales for February 2011 were 8.2 percent lower than they were in February 2010. Reuters reports that National Realtor's Association's chief economist Lawrence Yun believes that in 2011, older homes will sell faster than new homes meaning a rise in existing homes sales. The costs of new homes are much higher than the costs of old homes. This is how the market is right now.

Reality of realty

Individuals keep talking about a second crash in the housing market. This is part of the news going around. Banks do not want to lend as often right now while housing aren’t worth very much and sales are slow. While loan companies continue to worry about lending in this economy, there are also fewer individuals willing to purchase houses keeping prices low. In the next few years, a lot of people with a home will see the value rise while people who purchase now can be getting a deal.

Articles cited

CNN

money.cnn.com/2011/03/28/real_estate/us_housing_vacancy_rates/index.htm?hpt=T2

Bloomberg

bloomberg.com/news/2011-03-28/pending-sales-of-u-s-existing-homes-unexpectedly-climbed-2-1-in-february.html

Reuters

reuters.com/article/2011/03/28/us-usa-economy-housing-idUSTRE72F3XG20110328