Consumer Blog

It's important to note that when you're giving money to a charity or non-profit group, you can't necessarily deduct that contribution from your income taxes. The biggest category of tax deductible charities are ones designated 501(c)(3) by the IRS. There are some deductible charities that don't fall into that category, and your tax professional can help you make that determination.

You can use the Better Business Bureau's site, give.org, to look up a charity and determine if it's 501(c)(3). Enter the charity's name in the search box, hit Search, then scroll down to the section that says Tax Status.

You can also look at a charity's finances using our Check a Charity site - this tells you how much of your donation goes to the actual programs versus administrative costs like salaries, fundraising, office costs, etc.

Finally, be sure to check out our best advice on how to give wisely to a charity.

In Missouri we've had the ability to freeze our credit for almost a year now, but all three credit bureaus required it be done by certified mail - not phone or Internet. Now that's changing. TransUnion and Experian are now offering this service online. Furthermore, for the time being TransUnion is offering the service for free. Freezing your credit is an excellent way to prevent identity theft.

The price was $10, but Missouri law as of August 28th will cap that fee at $5.

You can read about changes made to Missouri law here.

This blog post has links to the security freeze pages at all three credit bureaus.

PS: TransUnion also deserved credit last fall for being the first to offer the security freeze nationwide, even though some states like Missouri didn't require them to offer it.

We have blogged here and here about how consumers are winning battles against wireless companies and their fees for early termination of contracts. Now a California judge has added what looks like a massive defeat to Sprint, which has a couple of weeks to respond.

Here is a blog post on a cool way to get out of those fees for early cancellation.

You might be surprised at the answer. In most cases, it's going to take you a long time to see any savings.

Here is a calculator that can help you decide if buying a vehicle with better gas mileage would actually save you money. I tried it with my car. I went from a car that gets 22 mpg to one (I just made this up) that gets 32 mpg. It said it would take me more than 6 years to recoup my additional investment!

And mine was a modest investment. I figured I'd buy something used that would only cost me $4,000 after trade in.

As for your personal checks, I still see a lot of consumers with their SSN on their checks. Bad idea. You lose your checkbook, and somebody has not only your bank account and routing number, but also your Social.

I often get the question, "What about when I write a check at the store and the clerk asks for my Social? Is that legal?" Yes, it's legal to ask, but you don't have to give it. You can:

1. see if they'll accept some other information like phone number or driver's license number
2. pay by credit card
3. pay cash
4. leave the store and go somewhere else

But most stores these days respect people's ID theft concerns and won't insist on having your Social Security number.

You may have heard the legend of the notch babies. There is always a group out there raising money to try to increase Social Security benefits for notch babies, who were born between 1917 and 1921. The fundrasiers say they need money to lobby Congress to correct an error that led to notch babies receiving less money than they should have for the last 30 years.

This article has a full explanation - and some mythbusting - on this topic.

Missouri consumer writes:

If I choose to close the account instead of depositing money to cover a bank overdraft charge (and/or overdraft amounts) what will the bank do? Will this affect your credit report? Can the bank take legal action?

Your first step should always be to contact the bank and try to get the charges removed. 

Now, I'll answer your questions in reverse. Yes, as with any unpaid debt before the statute of limitations, the bank has the right to sue. As for the credit report, the bank is not likely to report you to the credit bureaus.

Instead, the bank will probably report you to TeleCheck or ChexSystems, which keep databases on customers with negative banking history like bouncing checks, overdrawn accounts, etc. Here's more info on that, along with instructions on checking your on banking history file with those companies.

We have blogged extensively about how to check your free credit report three times a year. The credit report we usually talk about tracks your history of paying bills, loan payments, etc.

But there is another kind of report on you that you have a right to access for free - this one tracks any negative banking history, such as bounced checks, unpaid fees, etc. This report is kept in a national database, and banks check it before agreeing to open an account for you.

One big difference between this report and the traditional credit bureau report: all of us have files with the credit bureaus. But with this banking database, only consumers with negative history will have a file. So if you're told there is no record for you, that's good.

There are two companies that keep these negative history files, Telecheck and ChexSystems. ChexSystems will let you submit your request online, by mail or by phone, while TeleCheck requires you do it by phone. Both will mail your report to you.

Many consumers are suprised to find there is no limit on credit card interest rates (APR) under federal law. Those limits are set by state law, and card issuers are governed by the laws of the state they're based in.

So let's say you're in Missouri, and you a have a credit card account with a bank based in California. That card company is subject to California laws when it comes to the interest rates they can charge you.

As you'll see in this article, that's why a lot of credit card companies set up shop in states like Delaware and South Dakota, which have laws that are generally more favorable to the banking industry.

Curious how soon you can get out of credit card debt? You can use our handy calculator.

The Attorney General's Office issued a Consumer Alert today regarding student loans. After your college is chosen, you must decide what financial aid program will work best for your family. AG Nixon provided some tips for this big decision process.

First, you may be given a list of lenders by the school's Financial Aid department. This is just a list of perfered lenders, and by no means complete. You may choose any lender you perfer.

Second, there are several scam web sites that resemble the name and the URL address of the Free Application for Federal Student Aid (FAFSA). Beware of these phony sites! Also, watch for companies that advertise filing your FAFSA for a fee. The FAFSA application is free.

Third, to learn more about the many factors that go into your borrowing decision, check out this helpful student loan calculator the AGO provides.

The federal government has a Web site designed for consumers regarding the banking system, laws, regulations, how to file complaints, etc.

We often get questions about bank policies - "Is it legal for them to charge me an overdraft fee," and all kind of other questions. Bank regulations are complex and handled by several different agencies. Literally, if a bank has the word "national" in its name, that changes who regulates it. There's the FDIC, the Comptroller of the Currency, the Federal Reserve, Office of Thrift Supervision and state agencies like the Missouri Division of Finance.

This Web site is a one stop shop that may answer your questions and show you where and how to file consumer complaints.

Rebate checks--first, they do exist, and many people have received them. That being said, a lot of us, myself included, are still waiting. There are lots of questions that Missouri's consumers have regarding their rebate check status. Maybe some of the answers can be found in a letter that a coworker of ours recently received.

The letter, from the Department of the Treasury, has a headline that says:

"Understanding Your Economic Stimulus Payment." It begins by stating how much he will receive, and the date that he should expect the check.

Also in the letter:

"If you do not receive [your check] within six weeks of this notice, please contact us at 866-234-2942.You will not be required to report the amount of your stimulus payment as taxable income on your 2008 federal income tax return.

If you received a refund on your 2007 federal income tax return and had it directly deposited into a bank account, we will directly deposit your stimulus payment into the same bank account. If not, your stimulus payment check will be mailed to you. If your tax refund was directly deposited into a refund anticipation loan account, your stimulus payment check will be mailed to you.

Your payment is based on information you submitted on your 2007 federal income tax return such as your filing status, the number of qualifying children, and your net income tax liability."

The letter also explains that the calculation of dependents is based on the number of qualifying children multiplied by $300. Children that qualify are born after December 31, 1990, and has a valid Social Security number.

Again, if you have more questions, you can call 866-234-2942 or visit www.irs.gov.

We put out our Top 10 consumer complaints list every year, and the Missouri Secretary of State puts out her Top 10 Threats to Missouri Investors each year. Here is the 2008 list, which is summarized thusly:

1. “Senior Specialists”
2. Unlicensed Sellers & Unregistered Products
3. Free Lunch or Dinner Offers
4. Real Estate Investment Schemes
5. Internet Fraud
6. Variable and Equity Indexed Annuities
7. Oil and Gas Scams
8. Gold, Precious Metals and Foreign Currencies
9. Auction Rate Securities
10. Prime Bank Schemes

We cover investment scams on page 24 of AG Nixon's publication Know Your Rights.

I want to clear up some misunderstandings about placing a security freeze on your credit report, also called freezing your credit report. The Missouri Legislature last month sent the Governor a security freeze bill (not yet signed).

A security freeze makes your credit report unavailable to those who try to check it -- say to evaluate you for a loan -- without your express permission. It is therefore the most powerful prevention of ID theft. Let's say an identity thief takes your Social Security number and birth date and goes to a bank to take out a loan in your name. Because you have a security freeze, the banker can't see your credit file, and the thief gets rejected. Beautiful.

A security freeze has no effect on the everyday activity on your credit report. When you make your credit card and loan payments (or not), that will still go on your credit report. If you open a new credit card or take out a loan, that will hit your report. You can still check your own credit report three times a year for free using the usual system. It won't stop you from using your credit cards.

It simply stops unauthorized people from opening new accounts in your name.