What is Your ChexSystems Consumer Report?

In most countries, the government keeps records on people. In the United States, people keep records on you as well as the government. Did you know that your bank reports information on you? This information can lead to you being dismissed from your job or being turn down for one. On place they report to are the credit unions such as Transunion. That is for reporting that you have good or bad credit.

ChexSystems is the company that keeps track of your bank checking activity. If I were you, I would order a free copy of this report today and see what they are saying about you.
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ChexSystems, Inc. provides account verification services to its financial institution members to aid them in identifying account applicants who may have a history of account mishandling (for example, people whose accounts were overdrawn and then closed by them or their bank).

You can order a report to learn what information, if any, is listed in your consumer file at ChexSystems. If you have been denied an account from a bank or credit union, and ChexSystems was used in the decision process, this information will help you understand what may have contributed to that decision.

Under the Fair and Accurate Credit Transaction Act (FACTA) amendments to the federal Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your consumer report, at your request, once every 12 months. Each report submitted to ChexSystems remains on their files for five years, unless the source of the information requests its removal or ChexSystems becomes obligated to remove it under applicable law.

ChexSystems, Inc. is a consumer-reporting agency governed by the Federal Fair Credit Reporting Act (FCRA) and other laws. The Federal Trade Commission enforces the FCRA.

Here are the terms and Conditions;

• You may order only your own personal ChexSystems report.

• You understand that obtaining another person's consumer report is a violation of federal law punishable by fines and imprisonment.

YOU AGREE TO PROVIDE YOUR ACCURATE IDENTIFYING INFORMATION AND UNDERSTAND THAT CHEXSYSTEMS MAY ACCESS, STORE, AND USE THIS INFORMATION TO THE EXTENT PERMITTED BY LAW.

To request a free copy of your ChexSystems report, click below.

https://www.consumerdebit.com/consumerinfo/us/en/chexsystems/report/index.htm

Here are somethings to keep in mind about this report.


Let’s say your account was paid and you find that the problem was not removed from your report. Why not?

A reporting member is under no obligation to remove an accurate report of account mishandling due to payment of monies owed. However, the member is obligated to update the report with a paid in full or settled in full date when applicable.

You may wonder why my consumer report only shows the last 4 digits of my Social Security number, Driver's License number and/or account number. This information is masked to protect the privacy of your personal information. If you would like to receive a copy of your report with unmasked data, please submit your request in writing, with a clear indication of what information you would like to receive unmasked.

You have your report and you see something wrong. Now how do you dispute this information? ChexSystems will reinvestigate any item listed in your consumer report that you believe may be inaccurate or incomplete. Please select the following link to obtain information about how to submit your dispute. If you believe the information listed on your report under Driver’s License Verification is incorrect, please refer to State DMV Contact Information. These instructions are on your report. We ask for this information to ensure that we make a complete and accurate search and are able to identify all information that may pertain to you.

ChexSystems neither approves nor declines accounts. The decision depends on the policies of the institution you attempt to do business with. You may be entitled to add a brief statement to your consumer file describing the nature of your dispute of the information.

So you want to get a copy of your spouse’s report!


ChexSystems is required by law to deal directly with the individual to whom the information pertains. They strictly adhere to this to protect consumer privacy. To discuss the information with anyone else, they must receive a notarized Power of Attorney or specific written instructions, signed by the consumer whose information is being requested, authorizing them to disclose the information to the person named in the Power of Attorney.

Who has access to your consumer file?


ChexSystems is governed by the federal Fair Credit Reporting Act (FCRA). This consumer protection legislation is designed to ensure that the gathering and sharing of consumer information is done accurately, fairly, and with respect for the consumer's right to privacy. You can request a copy of your consumer report at any time. In accordance with the FCRA, your consumer report can only be disclosed to others having a permissible purpose (legal right) for that information. Examples of legitimate requests include:

• According to your written instructions

• A business transaction initiated by you

• Pursuant to a court order or federal grand jury subpoena

• Use of information for employment purposes, with your written permission

• Your application for a license or other benefit granted by the government, when consideration of financial responsibility is required by law

• A child support determination, under certain circumstances.








Teaching Financial Independence

                        My Daughter Stephanie when she attended Central Pennsylvania College

So your child is a high school senior and is going off to college next year. That is great that you are paying for their college experience. Now I have a question for you? Are you paying to give them a good start in the business world or are you paying for one big party? Some children have a good idea why they are going to college. However some think that they are going on a big adventure on your dime. Many don’t have a clue when it comes to budgeting, how to use checking/savings accounts, or how to use credit cards. 
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Many are shocked when they find out how much things cost.  In college many first find out how much taxes comes out of their small paychecks. So you better prepare them for what they have to deal with next year in college. 
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Help your child understand their personal financial situation.
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1.     After each semester, check your child’s grades before paying for the next semester. You don’t want to pay for 4 to 6 years of schooling just to find out that they never attended class. You be surprise how many parents I talked to, that worked two jobs just to put their children through college, find out that they never attended. Can you sing “Maggie”? In the end, they found out that all they did was pay for them to go to all night parties and play on the beach all day. 
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Some parents remortgaged their homes and practically told their children to have fun on the house. I can hear you now, “Not my good little child!” I want to see your face as your Home Line of Credit drives off to college and does not return. 
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2.     Set spending priorities for them and stick to them. Many children do not have experience managing their money. They have no idea how much living expenses are. Many think “so what! When I need money I will just go ask Mom or dad for it.” Your job is to teach them how to live independently. It is not to teach them to be dependent on you. In the very beginning, create a budget together with them. 

Start by discussing practical living costs with them. If they live in a dorm, let them know how much it cost. If they lives in an apartment, let them know how much it cost in rent, utilities, phone, internet, cable, and any other expenses. Make sure they know what bills they are responsible for and when they are due.
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3.     Teach your children checking and savings responsibilities early. Take them to a bank on campus and have them open an automatic checking/savings account. If you can, use a bank that has no ATM fees or has ATM access near campus to avoid fees. Show them the basics of maintaining a checking account register and reviewing a statement. With online banking, you both can monitor their account regularly. Show your child how to set up and use automatic bill paying whenever you can. 
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Your children will probably go on spring break with their friends so show them how to save up the money so that they can go without coming to you to foot the bill. Remember college is for education including financial education. It is not a vacation finance by you the parents.  Give your child a bi-weekly or monthly draw from their account rather than a large lump sum. It is easier to manage. 

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4.     Use a credit card only when absolutely necessary, such as for emergency roadside assistance. This is where most children do what they can do to destroy their future before they get out of college. Most businesses today will not hire you if you have several DUIs, criminal record, or have a bad credit history. You can be at the top of your class and come from the best college but if you have a bad credit rating, corporations will not hire you.  Make sure you tell your children this. 

Help them shop for the best credit card. Shop for a card that matches the needs of your child. Show them how important it is to create a high credit rating.   
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5.     Buy used books and keep them in good shape to resell. Your child can
reduce the cost of books for college by buying used books and selling them.
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6.     Take advantage of an on-campus meal plan. Colleges and Universities have meal programs. These programs may be easier to manage in your budget and more nutritionist than paying for junk food from fast food businesses. 
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7.     Use monthly discounted transportation passes, if available.  Most cities have discount transportation for students. Instead of using a car that is expensive to operate, use public transportation.

Diablo Valley College in Pleasant Hill, California

Also keep in mind that going to a local community college then going on to a local 4 year college or university is the least expensive way for your children to get an education. That is because they will still be living at home.  Here is where you have to decide, what is more important, a low budget education or a college living experience?  

Managing Your 401K at Work

The Board Room on the New York Stock Exchange

Most of you who work for a living have access to mutual funds in your company 401K program. My advice has always been and always will be, if they do not pay you matching funds then use an IRA to finance your retirement.  For people who have 401K programs, I offer some advice for your long term retirement strategy. Invest for yield, not for growth. In my opinion, the market that we are in has risk for people who are dependent on a growth investment portfolio.

                                                                      Portfolio Size

The search for yield has led some investors to dividend-oriented mutual funds. These mutual funds and exchange-traded funds (ETFs) invest in dividend paying securities.  According to Charles Schwab and Company, between March 2011 and March 2012, investors placed $25 billion into dividend paying funds and pulled out more than $136 billion from all other stock funds. The number of dividend funds has increased significantly in the past year, from 29 to 46. What happened is, low interest rates have reduced yield on a variety of traditional income sources. Another development, investors may be influenced by past performance.  Dividend paying stocks have outperformed non-dividend paying stocks in the Standard and Poor’s 500 Index – 19.1% versus 16.7% during all 10 bull markets since 1972 says Ned Davis Research. The third point, stocks that paid dividends suffered about half the losses as non-dividend payers in all the bear markets during that same time period says Ned Davis Research. Here is the reason why I have been in dividend and interest paying securities since 1972.

                                     Mutual Funds and Diversification

Your 401K and IRA investors who don’t know this information and do not read my blog on a regular bases, may want to reallocate your equity (stock and stock mutual funds) holdings to Interest-oriented and dividend-oriented mutual funds and securities.

Now let’s talk about the risk!

Equity Risk

These mutual fund investments are not bonds and carry volatility risk of stock investments. For example, DREYFUS HIGH YIELD STRATEGIES Fund (Symbol: DHF) had a 52 week high of $ 4.70  and a 52 week low of $ 3.96. At the recent price of $4.24, it yields 9.95%. Traders shifting from bonds to bond-oriented funds are altering their asset allocation and could be introducing more risk into their portfolio. For example, if you, the investor is planning on selling your recently bought fund shares in the near future and you paid over $4.50, you will take a loss on the investment. Income Funds are long term investments and should be used in your portfolio as such.

Tax Implications

Since 2003, dividends generally have been taxed at a 15% rate. Unless the President and Congress extend the Bush tax cut, the dividend tax rate for the highest earners may more than double after 2012. It may increase slightly for lower income earners if the dividend is outside their IRA or 401K. If inside your IRA or 401K, don't worry about it.

Past Performance

The past is not a guarantee of future performance. While dividend-paying mutual funds and bonds typically have outperformed the market over the long run, those investing now might not reap the same benefits.

Part2: Making Money Off of My Credit

 Oldest Daughter Stephanie Tulloch when she attended Central Pennsylvania College

The difference between the rich and the poor is this! The rich plan and manage their plan for as much as 25 years. The poor plan and manage their plan for as long as 24 hours. This is why the rich are rich and the poor are poor. No plan means that the poor are at the mercy of the rich.

I can hear it now. The poor need help because the poor have no access to good education or to the means to build wealth.This is the excuse people have used for year defending the poor.

A public education will expose the poor as well as everyone else to reading, writing, and arithmetic. Basically, public schools teach people to follow orders and think within a small box. That way the masses will take orders without question and work hard for the local employers. Most colleges and universities teach people to think within a larger box. Ivy League schools and master degree programs teach people to run companies inside a much larger box.

David on his mother's ipad

Most people get the majority of their education from home not from schools, colleges, or universities. People start learning from before birth. My youngest grandson started using an ipad before he turned one year old. He would unlock the machine and bring up different screens. He could call people even though he could not talk. Why? Because from the time he was born, he was being breast fed, going to ipad School while his mother was on the machine calling people and going into websites. That is why when he mastered his motor skills and the ipad was in reach.  He knew exactly what to do and to everyone’s surprise, he did it. Today at 2 years old, he still does not talk well but on his mother’s $600 computer, he can bring up his cartoon shows, play video games, and do other things with no or little help. He thinks in the box that he is working in. That is his normal and my new normal.

You have the ability to expand your box if you know that you are in a box. This is why I write a financial blog. I want to expand everyone’s box so that one day, you young people and some of your descendants may be able to be financially independent by the time you reach old age. If you teach your children and grandchildren what I am teaching you just as my grandson learned from his mother, then you will be independently wealthy before you reach old age. This will enable you young people to do other things for your family.  That will jump start your children and grandchildren in managing their affairs better and become more politically influential in the world. 

Building Wealth

In part 1, “Making Money Off of My Credit,” we learned how to take a $1,000 loan from your credit card at 26% interest and by speculating, you can make $93,548.14 in 40 years. With this plan, you will pay back $1,293.33 to your credit card company. That means that you pay your credit card company $107.78 per month for 12 months. You keep the rest of the money over time.  Over the next 30 years, you can withdraw $259.86 per month. This figure is your return if you did not receive any interest or dividends on the money and you just withdraw it from a non-interest account.

But if you place the $93,548.14 in an investment that gives you an annual rate of return of 6% per year for 40 years, you will be able to withdraw 20% of the money each year, or $1,559.14 per month. That would start in the year 2053 (age 65) and end in 2093 (age 105). I am assuming that in these 40 years, you will have a 6% inflation rate. Today it is between 2% and 3%. You will probably die before the money is used up. The rest will go toward your burial expenses.

What if you borrow $10,000 using a home equity or personal line of credit and made $935,481.44 (by age 65; Year 2053) using the same investment strategy? Giving an annual rate of return of 6% per year for 30 years (ending at year 2083; age 95), you can withdraw $31,182.71 per year or $2,598.56 per month. 

This is what I call long term planning that lasts your full life time. Here is the difference between the rich and the poor.