Prepaid Debit Card Reviews, Complaints, Etc

Author: Shane Tripcony

False Labeling: Nordstrom, Bed Bath & Beyond, Backcountry.com, and J.C. Penny to Pay Penalties Totaling $1.3 Million for Mislabeling Rayon Textiles as Made of “Bamboo”

The Federal Trade Commission announced complaints and proposed court orders barring four national retailers from mislabeling and advertising rayon textiles as made of “bamboo,” and requiring them to pay civil penalties totaling $ 1.3 million.

Under the court orders settling the FTC’s charges, Bed Bath & Beyond Inc. will pay $ 500,000; Nordstrom, Inc. will pay $ 360,000; J.C. Penney Company, Inc. will pay $ 290,000; and Backcountry.com LLC will pay $ 150,000 for allegedly violating the FTC Act and the agency’s Textile Rules.

“It’s misleading to call bamboo that has been chemically processed into rayon simply ‘bamboo,’” said Jessica Rich, Director of the Bureau of Consumer Protection. “With consumers in the midst of their holiday shopping, it’s important for them to know that textiles marketed as environmentally friendly alternatives may not be as ‘green’ as they were led to believe.”

The complaints announced today allege the four companies broke the law by continuing to misrepresent or mislabel rayon products as “bamboo” despite receiving warning letters from the FTC in 2010 and a synopsis of previous litigated cases against marketers for deceptively labeling rayon products as bamboo. The Commission charged the companies with violating the Textile Act and the Textile Rules and with violating Section 5(m)(1)(B) of the FTC Act by falsely and deceptively selling the mislabeled products, despite knowing that doing so was illegal and could subject them to civil penalties.

Specifically, Bed Bath & Beyond’s mislabeled items, also sold through its subsidiary buybuy BABY, included dozens of “bamboo” textiles, including “Aden + Anais Bamboo 3-Pack Muslin Swaddles” and “Bamboo Blend Napkins.”

Nordstrom sold similar products online and in its stores, including a “Gypsy 05 Bamboo Racerback Hi-Lo Dress” and “Degree Six Clothing The Bamboo Long Sleeve Tee.”

J.C. Penney sold numerous “bamboo” products in its stores and online, including “Muk Luks 4-pk Men’s Bamboo Socks.” It also falsely claimed “bamboo” gave the products antimicrobial properties.

Similarly, Backcountry.com sold “bamboo” textiles, such as “Bridgedale Bamboo Crew Sock – Men’s.” Backcountry also made anti-microbial claims for its “bamboo” products.

The proposed orders settling the FTC’s charges are identical, aside from the civil penalty amounts. They prohibit the companies from violating the FTC’s Textile Act and Rules by failing to properly identify the fiber content when labeling and advertising any textiles containing manufactured fibers.

Business and Consumer Information

“Avoid Bamboo-zling Your Buyers,” provides useful information on how to correctly label and advertise textiles that are rayon made from bamboo and cautions sellers that it is highly unlikely they are selling actual bamboo fiber products. The FTC also has an educational publication for consumers called “Bamboo Fabrics.”

The Commission votes approving the complaints and proposed civil penalty orders, and authorizing the staff to refer them to the Department of Justice for filing, were each 4-0. The DOJ filed the complaints and proposed orders in U.S. District Court for the District of Columbia on December 9, 2015.

The FTC also announced today it is sending letters to other retailers to help protect consumers from deceptive “bamboo” claims – especially during this busy shopping season – by imploring retailers to check their own inventories and ensure proper labeling and advertising of rayon textile products.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Civil penalty orders have the force of law when signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

This article by the FTC was distributed by the Personal Finance Syndication Network.

Personal Finance Syndication Network

December 15, 2015
Student Debt Remains Part of Economic Instability

After four years of university study and several more for a second or third degree, students are left with tremendous debt and a big hole in their pockets. Despite attempts to stay within a budget, find secure employment and start a payback plan, graduates find themselves stuck in the mire of financial obligations and bank loans.

Not all graduates face the same fate and the type of degree can determine the ease of finding proper employment as well as the salary associated with it. For example, many educators today view a humanities degree as practically useless when it comes to procuring a job with any semblance of sufficient income and specialty degrees such as those in the medical, dental or engineering fields require extra years of study and hence additional loans.

According to an article published in The Atlantic in March 2014, even those who continue on with their studies and obtain humanities Ph.D.s have job prospects no better than those who end their studies earlier. In the Atlantic article, English professor William Pannapacker suggested that a humanities Ph.D. “will place you at a disadvantage competing against 22-year-olds for entry-level jobs that barely require a high-school diploma.” Pannapacker went on to advise would-be graduate students to recognize that a humanities Ph.D is now a worthless degree and they should avoid going into further debt in order to acquire one.

Andrew Green, associate director at the Career Center at the University of California, Berkeley has a different take on the situation. He admits that there is no doubt that humanities doctorates have struggled with their employment prospects, but he points to less widely known data showing that between a fifth and a quarter of these doctorates go on to work in well-paying jobs in media, corporate America, non-profits, and government.

Paula Chambers, founder of Versatile Ph.D., a service that prepares graduate students for the non-academic job market, takes a positive view of the employment situation for humanities graduates. Chambers points to humanities Ph.D.s in many industries far removed from academia such as a Ph.D. in Greek and Roman history who landed a marketing job at a wine estate, a Ph.D. in British history who is now a branch chief at the National Parks Service or a Ph.D. in Classics exerting influence as a director at a hedge fund.

But were these the goals set by humanity students when they started their graduate education? How long will it take them to repay the loans they incurred in order to reach the academic level they did?

When it comes to graduates in other disciplines, the numbers aren’t much better. According to a research study conducted by UK specialist insurer, Endsleigh and reported in England’s Guardian in August 2014, only 34% of the then recent graduates had found full-time work in the career of their choice.

The vast majority of graduates do, eventually, find work, but often it is in a different field to their degree. According to Higher Education Statistical Agency figures for 2012-2013, only 8% of the students surveyed were unemployed six months after leaving university. But how much were they earning? The Endsleigh survey found that almost half (48%) of them said their current wage was lower than expected, with 57% currently earning £15,999 or less with the average salary around £20,000. Certainly not enough to pay back all the debts accrued over the years of study.

One of the solutions to the debt-study dilemma that has proven successful but which may not be appropriate for everyone is to work while attending school. Both small and large corporations are eager to employ students who will agree to a lower salary while attending classes towards their degree. On some levels it is a win-win situation. The student gains work experience and has some income towards his/her studies while the hiring firm pays less for a worker who, at the end the tenure, may well prove appropriate to the position and be taken on as a permanent member of the staff without the need of retraining for the job.

In the above situation, although there no guarantee of employment upon completion of the student’s degree, at least an accumulated debt of untold proportions has been avoided.
The most obvious direction to choose for avoiding education loans is simply to postpone studies altogether until the money is there. But this is a catch-22. No education, no job. No job, no money. What is a student to do?

The problem of student debt is growing. Here are the statistics according to a report posted on CNBC in June, 2015, and the numbers are staggering: There is more than $ 1.2 trillion in outstanding student loan debt, 40 million borrowers and an average balance of $ 29,000. The high levels are serving to perpetuate or even worsen economic inequality and are undercutting the opportunity and social mobility that higher education should provide.

Perhaps one way to avoid the debt altogether would be for students to plan to put away a small amount of money on a steady basis as soon as they are able and to learn how to invest their money early on in their lives. Opening an investment account with a good broker can be done at any age with the approval of an adult and as an individual from the age of 18. Investing can also be fun but learning to do it properly requires at least the minimum of training and education.

With today’s precarious global financial situation accelerating, it appears that the question of student debt and its repercussions remains a large part of the economic equation.

This article by Cina Coren first appeared on DailyForex.com and was distributed by the Personal Finance Syndication Network.

Personal Finance Syndication Network

December 15, 2015
What is a debt to income ratio? Why is the 43% debt-to-income ratio important?

A debt-to-income ratio is one way lenders measure your ability to manage the payments you make every month to repay the money you have borrowed.

To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out. For example, if you pay $ 1500 a month for your mortgage and another $ 100 a month for an auto loan and $ 400 a month for the rest of your debts, your monthly debt payments are $ 2000. ($ 1500 + $ 100 + $ 400 = $ 2,000.) If your gross monthly income is $ 6000, then your debt-to-income ratio is 33 percent. ($ 2000 is 33% of $ 6000.)

Evidence from studies of mortgage loans suggest that borrowers with a higher debt-to-income ratio are more likely to run into trouble making monthly payments. The 43 percent debt-to-income ratio is important because, in most cases, that is the highest ratio a borrower can have and still get a Qualified Mortgage.

There are some exceptions. For instance, a small creditor must consider your debt-to-income ratio, but is allowed to offer a Qualified Mortgage with a debt-to-income ratio higher than 43 percent. In most cases your lender is a small creditor if it had under $ 2 billion in assets in the last year and it made no more than 500 mortgages in the previous year.

Larger lenders may still make a mortgage loan if your debt-to-income ratio is more than 43 percent, even if this prevents it from being a Qualified Mortgage. But they will have to make a reasonable, good-faith effort, following the CFPB’s rules, to determine that you have the ability to repay the loan.

,A debt-to-income ratio is one way lenders measure your ability to manage the payments you make every month to repay the money you have borrowed. To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out. For example, if you pay $ 1500 a month for your mortgage and another $ 100 a

This article by the CFPB was distributed by the Personal Finance Syndication Network.

Personal Finance Syndication Network

December 15, 2015
Your route to security
Setting up your home network? To keep it secure, don’t forget about your router.

Why pay attention to that little box with the flashing lights? Your router lets you connect with the internet and communicate with other devices in your home. So, it’s your first line of defense in guarding against attacks by identity thieves and hackers.

How can you make your router more secure? Start with these steps:
- Change the name of your router. The name of your router (also called the SSID or service set identifier) is usually a default ID assigned by the manufacturer. Change it to something only you know.
- Change your router’s pre-set passwords. Your router also usually comes with a default password. Hackers know these default passwords. So, change yours to something unique, long and complex – think at least 12 characters, with a mix of numbers, symbols and upper and lower case letters.
- Turn off any “remote management” features. Some routers offer remote management for tech support. Don’t leave these features enabled. Hackers can use them to get into your home network.
Once your router is set up, don’t just stick it in a corner gathering dust. Instead, keep it up to date. Over time, the software that comes with your router may need updates. Visit the manufacturer’s website periodically to see if there’s a new version available for download. Or register your router with the manufacturer and sign up to get updates. If you lease a router, check if your internet service provider issues updates automatically.

For more tips on router safety and computer security, check out the FTC’s updated article on securing your wireless network. And if your system is hacked and your information exposed, visit identitytheft.gov for a recovery plan.

This article by the FTC was distributed by the Personal Finance Syndication Network.
Personal Finance Syndication Network
December 11, 2015
RushCard creates fund to help prepaid card customers after technical glitch and offers fee free holiday to all customers

RushCard, the prepaid debit card launched by hip-hop mogul Russell Simmons has created a multi-million dollar fund to help prepaid card customers after the technical problems left hundreds of thousands of people without access to their money for up to two weeks in October.

The company said last Thursday that RushCard customers who can show they incurred late fees, lost a deposit on an apartment or any other such financial problem as a result of the RushCard issues will be compensated.

Russell Simmons said in an exclusive interview with the Associated Press, “This whole thing has been devastating to them, and we want to make sure they are made whole.”

Simmons has been giving money out of his own pocket to help those in financial distress and this effort makes this a more formal process. RushCard has yet to lay out a timetable for when the fund will be implemented or what criteria or documentation will be required to get repaid.

Current estimates predict that the fund will eventually deliver up to tens of millions of dollars to impacted cardholders. The company has also issued a “fee free holiday” from November 1 through February 29 for existing and new customers. I just checked out the RushCard site and was surprised to see that the fee free holiday is for everyone, not just current customers impacted, but even new customers as well.

With the fee free holiday, the RushCard becomes a very attractive option in the prepaid arena. Of course, the fees start back March 1, so it is not a perrnanent holiday. But, it does make a good gesture after the recent debacle.

Technical problems tied to migrating systems to a new payment processor led to hundreds of thousands of customers to lose access to their money for as many as ten days in October. With many RushCard customers being low-income minority Americans who have traditional bank accounts, this access interruption left many customers saying they could not buy food for their families, pay bills or pay for gas to get to their jobs.

The problem seems to be over, and now we have the aftermath and the goal of making things right for many people.

November 3, 2015
How to Teach Your Teens Money Skills

Teenagers can learn about personal finance through classroom courses and through real-world experiences. According to research we commissioned, well-designed classes or programs support the financial decisions teens face in their lives: how to identify facts they need, decide what information sources are reliable, and compare alternatives. Additionally, lessons can have staying power when the teenagers already use the products they’re learning about—like bank accounts.

At home, when teenagers make their own money decisions, these experiences can help make lessons learned stick. We want to share two stories we heard about teens’ experiences.

The teen who saved money by making his own lunch

As teens start to work, and earn and spend their own money, they experience firsthand the costs and value of things they buy. The idea of making tradeoffs takes a concrete shape.

When my son Kyle was 16, he had a summer job. The first week, he bought fast food every day for lunch. Then he did the math – the $ 7 he spent on lunch the first week added up to $ 35! Kyle asked me to buy him some groceries so he could bring his own lunch. He made his lunch almost every day for the rest of the summer and he was happy he could save $ 35 a week.

Kyle’s parent noticed how Kyle started out with one plan for his lunch and then changed his mind, after seeing how much he was spending. When Kyle asked for support, the parent helped him stick to his plan so he could see the savings add up.

You can also look for opportunities to empower your teenager to meet his or her own needs, as the following parent did.

The teen who earned her extra clothes

My daughter Maria and I were planning to visit the college where she would study the following fall.
I told her I would buy her only one sweatshirt—and I knew she would want to buy several. Two weeks before our visit, a friend asked me if I knew of a good dog sitter for a week and I said my daughter could do it. Maria earned $ 130, so when we went to the college, she was able to buy what she wanted. I was really proud of the way she took responsibility for the dog and didn’t complain about the work. I think it empowered her to know that she can work to earn money for the extra things she wants.

Maria’s parent helped her gain an opportunity to earn money for something she really wanted and to exercise her ability to make her own, independent spending decisions.

Experience helps teens develop financial confidence

Hands-on experiences with managing finances help to promote teens’ self-confidence and belief in their own ability to succeed. This is one of the key drivers for financial well-being in adulthood.

An important part of teenagers’ development is taking the time to process and reflect on their money decisions—so they can learn from successful choices as well as mistakes. Whether a teen is learning from a class or afterschool program, a first job, or a decision he or she has made, parents and caregivers can act as sounding boards. As they do for younger children, parents and caregivers continue to play an important role in facilitating behaviors in teens that lead to their financial well-being in adulthood.

For more ideas on teaching your kids about money, check out our resources for parents.

The names in this blog have been changed to protect the privacy of those involved.

This article by Laura Schlachtmeyer was distributed by the Personal Finance Syndication Network.

Oct 16 2015
By Laura Schlachtmeyer

Personal Finance Syndication Network

October 28, 2015