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Archive for the ‘Consumer Tips’ Category

Appliance Rebate Program Overwhelms Websites

March 2nd, 2010 by Matthew C. Keegan | 1 Comment | Filed in Consumer Tips

All fifty US states and six territories and the District of Columbia are participating in a federally funded appliance rebate program, one that has its roots in the American Recovery and Reinvestment Act of 2009 also known as the $787 billion stimulus program. These states and territories have been allowed to create their own rebate programs with all 56 plans now approved by the U.S. Department of Energy (DOE).

Traffic Flood

Energy StarYesterday, Minnesota and Iowa were among the first states to launch their programs and although different from each other the result was the same: related websites were flooded with traffic, crashing servers while also swamping phone lines as consumers sought additional information. In the Mar. 1, 2010 issue of the “Dubuque Telegraph Herald,” the Iowa Office of Energy Independence said that their website was down most of the morning while their toll free number was temporarily inoperative. Residents were being urged to try both methods later in the day.

According to the DOE, rebates are being funded with $300 million from the stimulus act. Eligible consumers can receive rebates to purchase new energy-efficient appliances when they replace used appliances, though the appliances to be covered vary from program to program.

Recycling Programs

Most rebates range from $50 to $250 and cover a wide range of appliances including refrigerators, stoves, dishwashers, hot water heaters, furnaces, heat pumps, freezers and more. Some programs limit the covered appliances while others cover all ten as recommended by the DOE. In order to qualify for a rebate, the new appliance must replace an old appliance. The DOE is encouraging states to create their own recycling program for the older units.

Each program has a base funding of $100,000 with some states receiving far greater funding. American Samoa, for example, is receiving the $100,000 minimum while our largest state, California, will receive more than $35 million. And although states can keep their programs active until February 2012, most are expected to run out of funds quickly, perhaps in as little as two weeks.

For more information about the program in your state and covered appliances, please visit the DOE website and click on your respective state’s program information.


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Consumer Fraud Alert: ATM Skimming

February 26th, 2010 by Matthew C. Keegan | 2 Comments | Filed in Consumer Tips

Using an automatic teller machine (ATM) has its risks especially at night, or in poorly lit areas, or wherever traffic is infrequent. A criminal element is often at work, but perhaps in a way you never expected. No, you may not become a victim of a mugging, but you could end up having hundreds of dollars stolen from your account without your knowledge.

Plastic Ring

ATMATM skimming is a rising threat, one where perpetrators place a tiny plastic ring in the slot where your card goes in, recording security details embedded in your card. You probably won’t expect a thing as no one is standing over your shoulder to watch you enter your personal identification number. They don’t have to.

Instead, the tiny ring records your four digit security number and almost instantly that data is duplicated and usable with another card. Within moments your checking account can be depleted, causing untold grief for you.

Clark Howard

In a Feb. 12, 2010 post to CNN’s “Consumer Tips” blog, consumer advocate Clark Howard noted that thieves usually target independent ATMs instead of those at banks. Independent ATMs have sprung up all over the place and can be found at gas stations, shopping malls, stores, and other areas where traffic is steady, but bank involvement is absent.

Howard says that thieves obtain your security code (PIN) by videotaping you as you enter your four digit code. One way to avoid theft is to key in your numbers with one hand, while using your other hand to block out what you are doing. You can also check the slot where your card goes to see if there is a plastic overlay in place. Don’t damage the machine, but if something pops out then that machine may have been compromised.

Bank ATM

But don’t think that your bank ATM can’t be compromised either. In the Jan. 30, 2010 issue of “The Boston Globe,” ATMs at Citizens Bank and Bank of America were compromised by two men, one from Canada the other from Bulgaria. The Secret Service broke the case, finding a pattern of thefts taking place at ATM machines in the Boston area in December and January.

What if you suspect theft from your account? You need to do two things: notify your bank and call the police. Losses may be covered by your bank, but you need to do this at once in order to preserve your rights as well as to thwart additional thefts.

Photo Credit: Yury Khristich


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Home Refinancing Post Bankruptcy – Is This Possible?

February 22nd, 2010 by Matthew C. Keegan | 1 Comment | Filed in Consumer Tips

As the financial markets heave, millions of American are finding it increasingly difficult to keep up with their bills. Furloughs, lay offs, and salary reductions are weighing in. In addition, home values have plummeted yet at the same time mortgage payments and taxes are on the rise for some.

credit crunchThese days, we might assume that the homeowner who declares personal bankruptcy is doing so because their home went into foreclosure. But, not every person who owns a home is behind on their house payments. Instead, auto loans, personal loans, credit cards and other non-housing debt may have overwhelmed their finances, making it difficult for them to stay solvent.

For the person who still owns their home, who isn’t behind on payments, but is essentially bankrupt, one question remains: can they still refinance their home post bankruptcy?

That question isn’t easy to answer, particularly in light of the recent push by the Obama administration to ensure that struggling homeowners receive a modified mortgage, one with a lower interest rate and resultant lower monthly payment. If you qualify for this type of court ordered assistance, than that answer is yes.

For everyone else, there are a number of factors to consider before seeking home refinancing:

Keep up with your debt obligations. Some of your debt may have been discharged in bankruptcy court, but you also have monthly utility bills to pay, auto insurance, homeowners insurance, mortgage payments and other expenses. Pay these on time and you’ll demonstrate a proven track record.

Apply for new credit. Credit has tightened considerably over the past year, therefore your chances of obtaining new credit with a recent bankruptcy on your credit record are slim. However, if you are approved make sure that you carefully use your new credit card and pay it off monthly. Again, you’ll be proving to creditors that you can responsibly manage your personal debt.

Save your money. Many Americans are saving their money these days, the best savings rate in more than a quarter of a century. This is a good practice because having an emergency fund in place can ensure that you’ll be able to handle life’s emergencies as they come without falling back into debt.

Approximately one year after having your personal bankruptcy completed, go ahead and start obtaining mortgage quotes. You’ll know right away if you’ve been approved and your loan terms. If your rate is high, then the effects of your personal bankruptcy are still weighing in, therefore you may want to wait for at least six months before applying again.

In the meantime, obtain copies of your credit reports and your credit score and settle any open issues with creditors that you may have. Remember, the higher your credit score the more likely you’ll be approved for home loan refinancing. Personal bankruptcy may have set you back for awhile, but it need not hold your down for the long term.


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How To Survive An IRS Tax Audit

February 18th, 2010 by Matthew C. Keegan | 4 Comments | Filed in Consumer Tips

You’ve just received the one notification everyone dreads: the Internal Revenue Service (IRS) has decided to audit your tax returns. Don’t panic: 1.4 million Americans were audited in 2009 with an even greater number expected to be audited this year and beyond. The federal government is operating with a record debt and the government wants to make sure your contributions are sufficient.

Get Prepared

tax formsWhile you shouldn’t panic, you should be prepared to act decisively. That means reading your IRS audit notice carefully and following the instructions precisely. You will have thirty days to respond which is plenty of time for you to get organized. Likely, you are being audited for one tax year only which means you should do the following:

Pull out your tax records. Yes, the IRS is auditing taxes for 2005 which seems like ages ago. You do keep records going back for many years, right? That’s good, because you’ll want to examine your return for that year and check all of your receipts. If records are missing or lost, get new copies ASAP.

Examine everything closely. Be prepared to explain everything on your tax return line by line. Put yourself in the shoes of your IRS auditor: does every deduction pass scrutiny? You may not recall why you took $13,000 in charitable deductions that year, but you will soon need to show proof of same. In the Jan. 15, 2004 issue of “USA Today,” Thomas A. Fogarty warned that taxpayers sometimes wildly inflate the value of donated property. Hunt down receipts to prove everything including the property’s value at the time it was donated.

Seek professional guidance. If you have an especially complicated tax return being audited, then call upon the services of a tax accountant for assistance. Use the same person who completed your return to help you; she may need to join you when you are audited. But be warned: in the Feb. 10, 2002 issue of the “Los Angeles Times,” Liz Pulliam Weston noted that when it comes to bringing along someone for the audit, “only enrolled agents, certified public accountants and tax attorneys are allowed to handle such matters.”

Bring copies, please. Expect that whatever documents you bring with you to your audit may end up being lost or misplaced. In any case, make copies of everything and only bring those copies with you. At the same time you should not bring along extraneous information; you want to stay organized and demonstrate to the auditor that you have a firm grasp of your finances.

Be confident. Know your rights before meeting with the IRS, confidently outlining your case as well. But don’t be cocky; you’re being audited and you need to be prepared to answer the auditor’s questions. Simple “yes” or “no” answers will usually suffice; talk too much and you may raise the auditor’s suspicions that you are hiding something.

The End

If the auditor proposes changes to your return and you accept them, then the audit is over. You may owe additional taxes and penalties, but audits are officially concluded once both parties come to an agreement. If you want to appeal the IRS’ decision, there are certain procedures you should follow as outlined in the IRS article, “The IRS (Examination) Process.”


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