Friday November 26, 2010
The Irish government has been short on funds, causing concern around the world.
What happened? The financial crisis dragged Ireland down, in part because of bank failures.
At the height of the panic, nobody knew if banks were any good - any bank could fail on any day. To help calm fears, the Irish government promised to back Irish banks. Unfortunately, they didn't limit their exposure, and wound up on the hook for more than they bargained for.
The move probably seemed like a good idea at the time: fear was out of control, and every single bank (strong or weak) was suspect. Government backing may have even helped ease fears globally, as other nations followed Ireland's lead.
Ultimately, the cost was too high. The Planet Money team describes the Irish banking mess in more detail.
Wednesday November 24, 2010
ATM card scams are bolder and more creative than ever.
Most people know to avoid ATMs with strange equipment hanging off the front - somebody could have installed a card reader (or "skimmer") for stealing ATM card numbers. You may also think about who owns an ATM before you use it, preferring to stick to machines in reputable places.
For a while, you could stay safe by using bank-owned ATMs and sticking to well-lit locations. Not anymore.
Thieves are using equipment that's almost impossible to detect, and they're installing ATM skimmers on "higher risk" (for thieves, that it) machines.
Pay close attention to ATMs before entering your PIN, even if they seem to be in a safe place. There's very little you and I can do besides use common sense. However, Karen Blumenthal provides a few tips on how to improve your chances against ATM card scammers.
Further reading:
Tuesday November 23, 2010
The National Foundation for Credit Counseling (NFCC) is one of the most reputable resources for credit counseling. In addition to offering one-on-one help, NFCC offers videos to help educate consumers.
Two videos recently became available online:
Both videos are free. You can download either of them online, and you can also order NFCC videos on DVD.
In addition to the newly available videos, NFCC has a series on housing counseling. More and more homeowners need help from certified counselors, and the videos explain how things work.
Thursday November 18, 2010
When you think about it, you're kind of intimate with your bank. Your paycheck and every penny you spend go through the bank. Unless you use cash, everything is in a handy electronic format ripe for data mining.
Banks are taking advantage of that information. The practice is not new, but techniques are evolving. They're increasing efforts to predict who you are and how your finances look.
By knowing about your job loss before you start defaulting on loans (which will muck up your credit report), your bank can get a jump on other lenders. They may limit their risk by cutting credit lines and denying loan requests. They can also use the information to market products and services you're more likely to accept.
Be mindful of what goes on in your bank account and who you bank with. Think about how transactions look, and how things will look if there's a dramatic change. For the most part, there's little to worry about. However, you should know what banks are looking at and evaluate the situation for yourself.
Further reading:
