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New regulations intended to defend credit card users from "unreasonable late payment and other penalty fees" came into power Sunday as a result of legislation approved last year.

According to the Federal Reserve, the set of laws block credit card companies from charging more than $25 for overdue payments with the exception of extreme circumstances, stops them from charging customers for not using their cards, and requires them to reassess rate increases forced since January 1, 2009.

The Fed’s rules may result in lower interest rates for consumers as banks will have to trim down rates if the reasons for increases forced in the preceding 20 months no longer exist, and regulators will evaluate and implement such cuts. However, if a cardholder is late or over his credit limit two times within six months, issuers could hike the second penalty fee to $35, or possibly more if the issuer can justify the fee to regulators, according to the Fed rules.

Along with other new rules, penalty fees can’t go over the total dollar amount incurred by the consumer’s violation that caused the fee.

For example, if a customer is late making a $10 payment, the fee can’t exceed $10 and a consumer who exceeds their credit limit by $5 cannot be charged an over-the-limit fee of more than $5.

Consumers can no longer be charged several penalty fees if the violation was based on a single late payment.

Although the Fed is cracking down on penalty fees, it hasn’t addressed the interest rate hikes that are also imposed on consumers who breach the terms of their credit card agreements. We’ll see if that comes up in the near future.

Is summer leaving you in the dust? If you haven’t booked that weekend seaside getaway or jaunt to grandma’s house yet, have no fear. There’s still time for that summer getaway and here’s how to do it economically.

Airlines

1. Don’t be too picky about your travel days. Tuesday and Wednesday are two of the cheapest days to travel.

2. Booking your excursion midweek can also save you cash. Reports show that the best time to book a low cost airline ticket is Tuesday at 3pm.

3. Reduce those luggage fees when you get to the airport. Overweight baggage, even by only a pound, may possibly cost you an additional $100 each-way!

Hotels

1. Have you ever haggled over price with the front desk clerk at your hotel? A new report showed that those who did received a lower rate or room upgrade 80% of the time.

2. Also consider booking a room at an inn you have never heard of. New hotels frequently cut rates to catch the attention of patrons throughout peak season.

Before you take off

1. If you’re visiting a major city, look to see if there are attraction cards or a city passes at the beginning of your trip. These passes typically give you admittance to museums, bus tours and may even give you the opportunity to jump to the front of long lines!

2. Keep an eye on the news where you are headed too. Local newspapers and message boards can provide information from locals and recent visitors for inexpensive meals and complimentary local events.

Local company doubles its commitment to help the organization rebuild and employ

(Las Vegas, NV) Opportunity Village’s downtown Las Vegas thrift shop may have burned down, but one local company is making sure it’s not out by doubling the donations it is making during a summer program. Earlier this week, the organization’s first store-front, most recently a thrift store, was burned in a fire.

“This was our first home 56 years ago when Opportunity Village was founded to help train and employ people with disabilities,” said Linda Smith, associate executive director. “People from around the world visited because it was known for the unique items it carried. Celebrities like Bob Hope and Elvis Presley visited the store many years ago and donated their own items that were sold there. It is a great loss for our clients, our customers and the community as well.”

Immediately, Dollar Loan Center stepped in to help. The company was already giving Opportunity Village $100 a day for every day the temperature reached 100 degrees or higher this summer. When CEO Chuck Brennan announced he would double the dollar amount his company donates, Smith was thrilled.

“Companies like Dollar Loan Center are a real godsend to Opportunity Village,” she said. “We will use the money to rebuild, but also to keep the 40 employees of that store employed in the process.”

“This is a fun and creative way to raise money for an organization that truly needs it,” said Brennan. “To help rebuild and repair their downtown facility, we have committed to doubling our donation every time the temperature rises above 100 degrees. Now everyone has a reason to be happy for the hot Vegas weather!”

To follow Dollar Loan Center’s “Heat Is On” donations, watch KVVU Fox 5 news every evening at 5 p.m., 10 p.m. and and 11 p.m. or visit http://fox5vegas.com.

Opportunity Village is a Las Vegas-based, not-for-profit organization that serves people with intellectual disabilities to improve the quality of their lives and the lives of their families. Opportunity Village is the largest private provider of vocational training, employment, advocacy and recreation for people with disabilities in Nevada and currently serves more than 1,600 people with severe disabilities every day. For more information about Opportunity Village programs, special events or volunteer opportunities, visit www.opportunityvillage.org. 

Dollar Loan Center is a premier provider of short term signature loans in 48 locations throughout South Dakota, Nevada and Utah. Dollar Loan Center is the largest provider of short term credit services in South Dakota and Clark County (Las Vegas) Nevada. In 2007, Entrepreneur Magazine listed the company among its “Hot 500” Fastest Growing Businesses and Entrepreneurs.” For more information, visit www.dontbebroke.com.

First-time homebuyers got another extension and have until Sept. 30 to close their contracts and get the $8,000 tax credit. A bill allowing the extension was passed by the Senate late Wednesday night.

President Obama is likely to sign the bill, which was approved by the House on Tuesday. The cut-off date had been June 30.

The bill doesn’t support any person currently shopping for a home. Buyers must have signed an agreement by April 30 to be eligible for the tax break.

Existing homeowners also have until Sept. 30 to close on new homes and obtain a tax credit of up to $6,500.

An estimated 200,000 people have missed out on the tax credit as they wouldn’t have been able to close contract by the end of business June 30th. Many are trying to take advantage of short sales, which are difficult deals to complete.

The Senate agreed to the separate homebuyers’ tax credit soon after a botched try to advance a bill that pooled the credit with an unemployment benefits extension.

Do you plow madly through lots of papers looking for the documents you need when tax time comes around? Are you uncertain about which records you should keep and which ones you can throw away?

There’s no time like the present to make your life a little easier and guarantee that you don’t miss any deductions by organizing your record keeping system and keeping it up-to-date.

Having organized records makes it easier and less maddening for you to file your tax return and it helps you to clarify an item on your return that the IRS may question.

In addition to confirmation of payment (cancelled checks, credit card receipts), you should also keep invoices, receipts, or other printed records that show exactly what you paid for. Deductions that you need to document may include alimony, charitable contributions, mortgage interest, child care expenses, and real estate taxes. Don’t forget, when making payments in cash always get a signed and dated receipt showing the amount and a description.

If you have deductible expenses withdrawn from your wages, such as union dues, health insurance premiums, or 401(k) contributions, keep your pay stubs as evidence of payment.

Specific records you should keep consist of:

• Form W-2 and 1099
• Bank statements
• Sales slips
• Invoices
• Credit card receipts
• Canceled checks or other proof of payment

Legally you only need to keep tax records for three years from the day you filed your tax return. You should, however, keep a copy of your actual tax returns forever. The IRS destroys original tax returns after three years, and you or your heirs may want information from the returns at some point, or you may need to show your income for Social Security purposes.

Did you know that In 2009 the banking industry made roughly 38 billion dollars on Overdraft Fees! Sorry to say, but this is a regular position that most of us have had the terrible luck to come upon at one time or another.  At times it seems that no matter how hard you try, banks appear to find a means to re-arrange your payments in a way that causes a string of expensive overdraft fees. 

Imagine you have $500 in your checking account and do 5 separate debit charges at $20 a piece. Later in the day you write a $450 check to pay your rent. Whoa! You just overdrew your account. Some banks will not just charge you once for overdrawing your account but they will put the rent check through first and then the 5 debit charges resulting in 3 separate overdraft fees.

Your bank will state that these charges are just “pending” and just happened to post in that order.  Remember the “terrible luck” I spoke of earlier?

Since an overdraft charge is not a loan, a bank is not required to reveal the APR for these charges and some may refuse to tell you what the APR on your last NSF was altogether.  Not to worry, it’s not hard to figure out.

Banks more often than not fight against the Payday Loan industry since we present a substitute to numerous NSF fees and therefore we are a threat to that $38 billion a year.  They say a payday loan’s APR is too high and should be banned.  Well as I’m about to show you, the average overdraft come out at a much, much higher APR.

Let’s say you overdraft your account by $20 and are charged a fee of $30…

(($30/$20) * (365 days/14 days))*100 = APR% of  3,911%

Hold the show!  That’s not a little higher than a payday loan, that’s much higher than a payday loan! 

Now let’s visualize getting smacked with 4 NSF’s ($30 apiece) and let’s say that you only overdrew your account by $30…

(($120/$30) * (365 days/14 days))*100 = APR of 10,429%!

WHAT?!? Over 10,000%? No wonder the bank won’t tell me what an overdraft APR is.

Perhaps we should all challenge the banking industry the next time they cry that the rates payday loan companies charge are too much.

So you’ve sworn off credit cards eh? Saying so-long to crazy interest rates and fees! It’s all about you and your debit card from now on.

Let me tell you about a little hidden risk with that idea. Debit card transactions aren’t reported to the credit bureaus, so if you don’t use a credit card, you will have less of a payment history, which hurts your credit score over time.

Get out of the mind set that you’ll never need to borrow again. Your FICO score has a big impact on other factors in your life. It can affect your auto insurance premiums and whether a landlord will rent to you. Heck, even some employers check it when choosing a new employee.

To stay on top of your credit score you should keep a few credit cards in your wallet and use them every other month or so.

It’s a great time to be a house hunter. Almost everyone with a decent job and a good credit score can afford to buy in their home towns.

Over 72% of families making $63,800 a year, could afford to buy a home at some point in the first three months of 2010, according to a statement from the National Association of Home Builders (NAHB) and Wells Fargo.

The national median home price for the quarter was $175,000.

The NAHB says a home should be within means if a family is making the metro area’s median income and devotes no more than 28% of their take-home pay toward housing costs.

If you are currently renting a home but have longed wished to be a home owner now just might be the perfect time. Talk to a mortgage lender and/or realtor today to see if you can qualify for that dream house you’ve been waiting for.

Dollar Loan Center and Fox 5 Las Vegas team up to support Opportunity Village in Las Vegas, NV. Every time that the temperature reaches 100+ in Las Vegas, Dollar Loan Center will donate $100 to Opportunity Village.

VEGAS-BASED DOLLAR LOAN CETNER REFUSES TO GAMBLE WITH SECURITY | BY ABBIE KIEFER

When Chuck Brennan founded Dollar Loan Center in 1998, he set out to do one thing: offer signature loans with reasonable terms in a safe, professional environment. “I wanted to give my clients low rates, flexible repayment options and a business-like atmosphere,” said Brennan. “But most important, I wanted to guarantee they’d be safe while working with me.”

Customers appreciated Dollar Loan Center’s approach to lending, and the Las Vegas-based business grew. Over the course of just nine years, the company opened nearly 50 locations in Nevada, South Dakota, and Utah. In that time, not one branch was hit by a holdup attempt. “We had a phenomenal security record,” stated Brennan.

But then something changed. Blame it on a tanking economy or bolder criminals, but Dollar Loan Center became a target. Beginning in mid-2007, the company experienced a robbery or an attempted robbery at least once a month.

“That wasn’t acceptable for my clients, my employees or me,” Brennan explained. “We might be in the gaming capital of the world, but security is something I refuse to take a chance on.

”So Dollar Loan Center turned to technology. Its first move was creating a company-wide surveillance hub, where a team of security professionals constantly monitors branches via full-color, high-definition cameras.

“Seeing every inch of every office really gave us a handle on the situation,” Brennan recalled.

Next, he began researching cash recyclers: secure, under-counter vaults that accept, authenticate, store and dispense banknotes. Recyclers guarantee accuracy and increase efficiency while barring illegitimate access to cash.

At the 2008 FiSCA Conference and  Exposition, Brennan had a chance to talk with Mike Mares of ArcaTech Systems, a company that specializes in transaction automation solutions. “We were discussing the benefits of the technology when someone called to say there’d been another robbery,” said Brennan. “I told Mike to give me every unit he had.

”Within weeks, ArcaTech had equipped each branch with a 4,000-note-capacity  recycler. “Dollar Loan Center needed to  secure cash without inconveniencing clients or tellers,” explained Mike Mares. “Recyclers were the perfect solution because they completely eliminate exposure while making transactions more efficient. Chuck and I knew this technology could make a real  difference for his company.”

They were right. In the 18 months since the recyclers have been installed, Dollar Loan Center hasn’t suffered a single holdup.

“That’s beyond dramatic,” Brennan stated.The recyclers, he explains, deter crime in several ways. Most important, they foil would-be robbers. “If someone’s demanding money, we’ve told our tellers to step away from the counter and let him or her have a whack at the machine. We’re not worried.

”That’s because only Dollar Loan Center security officials have access to the recycler vault – no one else is able to remove cash. Mr. Brennan’s recyclers are also outfitted  with tracking systems, security cameras  and alarms.

And because even tellers don’t have access to the machines, recyclers thwart insider theft, too. They also prevent risky teller behavior, like counting cash in plain view of the public or leaving a drawer unsecured.

In addition to improving security, recyclers streamline day-to-day operations as well. By retaining incoming banknotes for future transactions, branches need fewer cash pick-ups and deliveries. “We’ve gone from daily bank deposits to deposits made just twice a month, and that saves time and money,” reported Brennan.

While Brennan acknowledges the surveillance center and recyclers represent a significant investment of capital, he says the measures have paid for themselves. And he’s become a champion of the technology, regularly taking colleagues and industry competitors on tours of his facilities to see security in action.

“Dollar Loan Center has always been a pioneer, and our new security technology has been tremendously successful,” said Brennan. “I’m willing to share that success with others because I want everyone in this industry to feel as safe as I do.” 

Abbie Kiefer is a freelance writer. She lives and works in Raleigh, North Carolina, and may be contacted at abbie@abbiekiefer.com.

To read  the entire article online in the May 2010 edition of Currents Magazine click this link and go to page 38.