For years, LifeLock has aggressively advertized that they will protect your identity like no other. They even offer a $1,000,000 guarantee. What they don’t tell you is that they are simply putting fraud alerts on your credit files which have been shown to work 75% of the time. Now, anyone can put fraud alerts on their credit reports. They are designed to alert you if anyone is attempting to take out credit in your name. They are temporary in nature and have to be renewed. LifeLock would take it upon themselves to automatically add these to your credit reports and then renew them for you. However, what they are doing was never the intent of the Fair and Accurate Credit Transactions Law written by Congress.

Bold and high-light – if possible can you yellow highlight may be in the following paragraph?

The law states:

‘‘(2) FRAUD ALERT; ACTIVE DUTY ALERT.—The terms ‘fraud
alert’ and ‘active duty alert’ mean a statement in the file
of a consumer that—
‘‘(A) notifies all prospective users of a consumer report
relating to the consumer that the consumer may be a
victim of fraud, including identity theft.”

The law states that a consumer can add a fraud alert in the event that the consumer “MAY BE” a victim of fraud. It doesn’t say that you can add one just because you feel like it. Credit reporting agency Experian felt the same way. Back in 2008, they filed a lawsuit for deception and fraud. According to a MSNBC article, LifeLock CEO Todd Davis called the lawsuit baseless and said that Experian is simply upset that his firm is challenging its business model.

Actually, it has nothing to do with the model. It is the law that Congress wrote and expects people to follow. LifeLock recently sent this out to its customers:

“LifeLock is pleased to announce we are beginning implementation of a new and innovative identity protection system that provides you even better and broader protection. This new system, which replaces fraud alerts, is better because it offers you the benefit of real-time protection in some instances, and broader because it identifies identity risks beyond the scope of fraud alerts.

As you may know, as a result of litigation with the credit bureau, Experian, a Court has ruled that LifeLock must soon end the practice of setting fraud alerts on behalf of consumers. The placement of a fraud alert on a member’s profile is just one of the many tools LifeLock uses to protect our members from the growing threat of identity theft. We have been planning for the possibility of this ruling by developing even better ways to help protect you, and are excited about the broader protection we will roll out in the coming weeks.”

So now that they cannot do what they should not have been able to do in the first place, they have to come up with a real identity theft protection service. With all of the influence that this company has developed through their marketing (which I will have to admit is one of the most brilliant marketing campaigns -deceptive, but brilliant), it is my hope that they come up with a plan that can stand up to their aggressive marketing plan.

At the end of the LifeLock e-mail, he states that “At LifeLock, we never take your trust in us lightly, and consider it an honor to protect your good name.” Even if they come up with the greatest identity theft program available, can you really trust a company that has its business model built on doing something in a way that the law never intended on individuals to do in the first place?

Tags: Bob Brooks, Congress, credit reports, Experian, Fair and Accurate Credit Transactions Law, fraud alerts, identity, Identity Theft, Prudent Money

A key to being a successful investor is the ability to tell the difference between the marketing and reality. Investors make the biggest mistakes when they make a decision based on the marketing pitch.

You have probably heard the pitch made by insurance companies on equity indexed annuities. They claim that you will get to participate in market gains while the market goes up and never lose any money when the market goes down. You can get a great return without taking risk. Basically, it is an insurance product that is marketed like an investment program. Due to this irresponsible marketing, the federal regulators are cracking down on this industry. The insurance industry says that equity indexed annuities are not investments. However, the federal regulators say that it is an investment contract and should be regulated like one.

Many of the marketing pitches for these guaranteed investments have several elements that make them irresponsible.

First, the marketing is full of big claims with little details that intentionally attempt to create an impression that is not altogether true but isn’t necessarily a lie. It is just a marketing message that intentionally and conveniently leaves out the details.

Second, the marketing pitch creates the illusion that there is no risk and no downside in the investment. Remember, there is always risk of some kind when investing money.

Third, these marketing pitches use a play on numbers. You can take a set of numbers and make them say anything.

On paper, these equity indexed annuities will perform as advertized. In other words, you will see your account value go up with the market and stay steady when the market falls. So the illusion plays out for a long time. Unfortunately, reality will surface down the road. When you are ready to take the money out, you will realize that you are taking the money out on the terms of the insurance company and not on your terms. Thus, that great marketing pitch doesn’t seem so great anymore.

Tags: Bob Brooks, Deceptive Money, equity indexed annuities, insurance companies, investments, investor, irresponsible marketing, marketing, Prudent Money

You never want to let a serious crisis go to waste – Ron Emanuel

The politicians aren’t the only people who do not want to let a serious crisis go to waste.  There are also opportunists in the debt solution business that want to seize the opportunity as well.  These companies that do everything from credit counseling to settling your debt to “cleaning up” your credit will also take your money. 

Take former credit counselor Jason Matthew Malik as an example.  He helped a lot of people while bilking them for thousands of dollars.  Now Mr. Malik faces jail time for his service to the people in crisis.  Then there is the debt settlement firm in Addison, Texas.  Debt Settlement USA had to file for bankruptcy and has ceased operations due to allegations of fraud and investigations by the State Attorneys General and federal authorities.  If you were one of the lucky clients getting your debt “settled”, you are now out of luck.

The debt solutions business is filled with opportunities.  When they tell you they can magically make your problem go away, you just have to trust them. 

Then there is the National Federation of Consumer Counseling.  They say that they are on your side.  In my book, Deceptive Money, I write about the other side of that story.  A white paper written by the Consumers for Responsible Credit Solutions had this to say.

NFCC Board Member Companies Have Paid Record Fines for Abusing Consumers.  Creditors who have been represented on the NFCC Board of Trustees have recently paid hundreds of millions of dollars in Federal Trade Commission fines and other settlements for anti-consumer practices and abusing consumers’ rights.

Although the commercials and marketing telling you how easy it is to make your debt problem seem very enticing, let common sense guide you in the reality of it all.  There is a catch to these programs and I have it well documented in Deceptive Money.  The worst case scenario is you fall in the hands of a scam artist.   When there is a crisis, there are plenty of scammers ready to “help you out.”

Tags: bankruptcy, Bo, Bob Brooks, credit counseling, Debt Settlement USA, debt solution business, Deceptive Money, fraud, National Federation of Consumer Counseling, NFCC, politicians, Prudent Money, Ron Emanuel, scams

New Deceptive Tip Post Today!

I had a listener e-mail me about a program that you could put your money in for 30 days and you would receive 30% interest during that thirty day period.  The first place you always look when you find something that seems too good to be true is the fine print.  Fortunately, that is as far as you needed to go for this one.  This offers a good example of something you want to avoid.

(1) As a private transaction, this program is exempt from the US Securities Act of 1933, the US Securities Exchange Act of 1934 and the US Investment Company Act of 1940 and all other rules, regulations and amendments thereof. We are not FDIC insured. We are not a licensed bank. This program does not offer securities.

This investment is not regulated at all or overseen by anyone looking out for your best interest. 

(2) You agree to hold all principals and members harmless of any liability. You are investing at your own risk and you agree that a past performance is not an explicit guarantee for the same future performance. You agree that all information, communications and materials you will find on this web-site are intended to be regarded as an informational and educational matter and not investment advice.

They relieve themselves of all liability and specifically state that they are never giving you advice. 

(3) We reserve the right to change the rules and rates of the program at any time and at our sole discretion without notice, especially in order to respect the integrity and security of the members’ interests. You agree that it is your sole responsibility to review the current terms.

This is my favorite one.  They can change the rule at any-time and best of all, you have to keep up with the changing of any terms.  They don’t notify you. 

(4) Don’t post bad votes on public forums or at any rating web-sites without contacting the administrator of our program first. Maybe there was a technical problem with your transaction, so please always clear the matter with the administrator. Violators will be immediately and permanently removed from the program.

Don’t say anything bad about them because they will remove you.  If they remove you, they keep your profits.

(5)  IF YOU ARE NOT A CONFIRMED MEMBER, DO NOT SEND OR WIRE FUNDS TO US. ANY UNCONFIRMED DEPOSITS WILL BE ASSUMED A DONATION.

If you send them money without going through their process, they will keep it as a donation.

(4)  We are not regulated by the SEC or SIPC. We are not members of the NFA or CFTC as we do not offer futures or off exchange forex transactions. This is a private transaction. We are a group of successful investors that have created a platform to support the general investor.

Once again, they are not regulated.

(5) Any member found to be involved in any illicit or illegal activity will be immediately removed from the club and forfeit any profits they have in their account.

This was just strange to include in the terms and conditions.  It does cast a questionable light on this “investment.”   

This program refers to itself as a HYIP but also distinguishes itself from these types of programs at the same time.  Here is what I found on HYIP’s.

HYIP stands for High Yield Investment Program. While a HYIP may sound enticing, you should be careful; many HYIPs are a little more than thinly disguised ponzi schemes.

A ponzi scheme is a system by which investors are lured to invest in a program by promises of very high returns on the investment. Early investors are paid using the money that later investors invest in the scheme. Things go well until new investors stop joining the system and the money runs out.   Those HYIPs that are not ponzi schemes are frequently outright scams.

Obviously, I can’t call this a ponzi scheme without specific proof.  However, it if looks like a duck, acts like a duck, then it probably is a duck.  The bottom line is don’t be fooled into thinking that ponzi schemes don’t exist.

Tags: Bob Brooks, Deceptive Money, HYIP, Investment, investors, money, ponzi scheme, Prudent Money

In my upcoming book, Deceptive Money, I write extensively about these so called “Debt Solution” companies.  Actually, it is a warning more than anything.  I will be writing a lot about these companies so that you can pick up the scam artists.   Are there good companies out there in the debt solutions business?  If they are, I haven’t come across them.  I am sure that there are some good companies.  The bottom line is that even the good companies make implied promises that are very tough to fillfull. 

Who makes up the debt solution industry?  Anyone in the consumer counseling arena, any company who offers debt management programs, and any company that wants to “repair” your credit.

It was just reported that the Federal Trade Commission has just charged seven companies as deceiving companies.  The report states that:

“the Federal Trade Commission has charged seven related companies with violating federal law by falsely promising to remove negative information from consumers’ credit reports,  even information that is accurate and current, and by charging an up-front fee and failing to provide written disclosures. The agency seeks to make them stop the violations and pay restitution to consumers.”

This is happening all the time.  Here is the bottom line with the debt “solution” companies.  They cannot just make your problems go away over night.  They cannot defy the law.  Remember, if it is too good to be true, it is too good to be true.

If you are enrolling in a debt management program, you need to know and investigate the following:

(1)   When you first work with a counselor, they take a look at your debt and then present you with a proposal of how they are going to lower your payment, interest rates, and save you money.  In reality, it is more like something that they derive out of thin air to meet your budget.  They have no way of knowing or guaranteeing it will work.

(2)   Credit card companies do not have to accept the terms of the program.

(3)   Even if the credit card companies do accept the terms and conditions, they can also, at any time, change those terms and conditions.

(4)   You still can get sued for debt that you owe.

(5)   A perfectly good account could end up in collections.

(6)   Penalties and interest can be charged against you and can accrue.

Watch the proposal – often times they come up with the savings from the program (that they cannot guarantee will even work) from funny math.

For instance, one debt management program’s proposal that I recently reviewed states it will take until 2042 to pay off $11,737 worth of debt, paying the minimum payment of 2.5 to 5% of the balance.

Actually, that is not true.  If you were paying 29% interest and 5% minimum payments, it would pay off in 28 months.  Incidentally, that is quicker than their program.  If you were to pay the 2.5% minimum payment, it would take 12 years.  There is not a shred of truth in the statement that they are using in the proposal to motivate the individual to make a decision.  They are just trying to make your situation look hopeless.

If you are considering this as an option, always determine what it will take to get out of debt on your own the right way, considering your current payments and rates. What you will find might surprise you when you compare it against the funny numbers that are being proposed to you.  

In the research for my book, Deceptive Money (which is scheduled to come out in 3 weeks), I looked at many debt proposals from these debt solution companies.  Unfortunately, I could not find one that wasn’t misleading or did not have huge mistakes in their calculations.  

An interesting scam I will bet you never thought of!

MOBILE PHONE

I never thought of this….This lady has now changed her habit of how she lists her names on her mobile phone after her handbag was stolen. Her handbag, which contained her cell phone, credit card, wallet, etc. was stolen.  Twenty minutes later when she called her hubby from a payphone telling him what had happened, hubby says ‘I received your text asking about our pin number and I’ve replied a little while ago.’

When they rushed down to the bank, the bank staff told them all the money was already withdrawn. The thief had actually used the stolen cell phone to text ‘hubby’ in the contact list and got hold of the pin number. Within 20 minutes, he had withdrawn all the money from their bank account.

This is really why you should always be careful about the information that you put into your phone.  Further, if you can put a security lock on your phone (you can do this with an iPhone), make sure that you do.

I had a listener send me information on an identity theft scam that involves an ATM machine and a debit card.  The link below takes you to a slide show of actual pictures showing the scam happening.  It is unbelievable.  It does underscore how careful you have to be in this day and time.

The Federal Trade Commission recently released its list of the top 20 complaints.  Once again, identity theft was number one.  Take a look at this slideshow.

ASK BOB Q AND A  

I have a credit card that had $3400 credit limit.

The balance on that card never went above $1000 and I made payments every month, even when I had “No payment due”. I ALWAYS paid more than what was due.  I pulled my payment history and it does show that I have paid as low as $30 (Feb 09′) and as high as $400 every month.  On average I pay at least $150 every month.  I do this with every credit card that I have.

My 2/5/09 Statment shows my limit to be $3400 with $18.00 minimum due (due by 3/2/09) on a $685.77 Balance.  

On 2/7/09 I paid them $30 and was going to give them another $50 (the 2nd one for February) today.

I see that my credit limit has been reduced dramatically (less than $700).  I have received no “notice” from this credit card company that this was happening.  

On Friday 2/20/09 (since I didn’t know) I used this card for $130 and now I am $95 “Over Limit”.  I went ahead and paid the “express” payment of $165 today ($150 toward balance plus $15 so they would post it today).

My question is…Why would they reduce my credit limit so much when I pay them EVERY month. My credit situation has not changed. I have asked them but they have not answered my request as of yet.  I thought I would ask the “expert”.  You can answer by email.

A:

The credit card company can do anything that they want to with your account because you authorize them to do so when you signed your credit card agreement.  You told them that it was ok to change the terms and agreements anytime that they wanted for any reason.  The politicians and regulators have completely failed to do their job and regulate this industry.   The regulators passed rules to stop this practice.  HOWEVER, THEY DON’T GO INTO EFFECT UNTIL JULY 2010.

So gear up for more and more unethical behavior from the credit card industry.  By lowering your credit limit they just earned a late paymeny and a $ 15 fee to expidete a payment. 

It is absolutely ridiculous that the politicians allow this type of behavior to continue.

Tags: credit card companies; universal default clause

I love this story about Brad and Sarah Bailey of Lewisville, Texas.  According to WFAA.com, Mr. Bailey had discovered that he was a victim of identity theft.  One charge in particular motivated Mr. Bailey to investigate and see if he could catch the thief.  Apparently, the identity thief was having a little pizza, courtesy of the Bailey’s. 

Mr. Bailey showed up at Romero’s pizza to investigate.  In order to get the address where the pizza was delivered, Mr. Bailey was instructed to show up with a police officer…and that he did.  It took one trip to a Motel 6 and there was the thief enjoying a little pie while making up some fake cards for identity theft purposes ( I am just imagining that he was enjoying a little pie). 

First,of all, way to go Mr. Bailey.  The vast majority of identity theft cases don’t even get solved.  You had the guts to go solve it yourself.  That was the best part of the story.

The funniest part is that this thief had a pizza delievered to the same place he was producing fake cards.  I would think that would be identity theft 101 – never leave a paper trail.  Then again, what was the pizza delivery man thinking when he delivered a pizza that was for the owner of a credit card of  a guy named Brad Bailey to a guy named Semmie Isaiah Williams?

Maybe a hint something was up?   I guess pick up wasn’t a good idea either.

I wouldn’t have believed it had I not read the document.  The whole Bernie Madoff scandel could have been avoided.  A document completely exposing the Bernie Madoff ponzi scheme was sent to the SEC.

The 19 page document entitled, The World’s Largest Hedge Fund is a Fraud, outlined 29 red flags and reasons why the writer felt that the hedge fund was a ponzi scheme.  The case was outlined in such a detailed fashion that the SEC didn’t really even need to do a detailed investigation to see the fraud.   

The letter was sent to the SEC on November 7, 2005 and the SEC did nothing about it. 

The letter outlined that if this was allowed to go on that the losses could be as large as 50 billion dollars.  Well, guess what, he was correct. 

It is unbelievable to me that the SEC, who is the chief regulator of the investment business, could be this neglectful.  Yes, these are the people that are suppose you and I from the bad guys.  So who is really responsible for the 50 billion or so in losses – Bernie Madoff or Bernie Madoff and the SEC?  

It just seems like every day we are hearing a new story concerning politicians or regulators that involves neglect, incompetence, tax invasion, unethical dealings, etc. It just seems like what we felt was there the entire time is starting to bubble to the surface.   These are the same people who are there to protect, to serve, and pass legislation.  They could also be the same people who are about to burn through 1 trillion plus of tax payer money.

Here is a copy of the letter – http://online.wsj.com/documents/Madoff_SECdocs_20081217.pdf

Tags: Bernie Madoff, Bob Brooks, Deceptive Money, Prudent Money, SEC

I am always amazed to see how far a company will go to sell a product.  The airwaves are littered with examples of irresponsible marketing.  On my way to the office this morning, I learned about some software that would tell you everything you need to know about buying and selling stocks.  

If you had had his software, you would have made money.  The “wizard” would tell you when and what to buy.  Even better than that, the wizard would tell you when to sell.  No longer do you have to lose money.  The wizard knows what direction the market is going at all times.  

I have been managing and investing money for my clients for almost 17 years.  I haven’t always made money.  I have had my share of good and bad days.  Just to think, all I had to do was buy this software and let it tell me what to do.  It would have been that easy.  

If you go to their website, they don’t hide anything.  They show you the actual trades that are made, as well as the results of their system.  No longer do you need to depend on anyone else or lose money with advisors.  

Would you agree that the claims are too good to be true?  Would you think that if someone really had it figured out, that it would be big news?  Do you think that everyone would be using this revolutionary software if it really were true?  

When you hear the sensational too-good-to-be-true marketing, always go to the disclaimers.  At the end of the commercial, the announcer says “for informational purposes only.  You should always seek the services of a professional before making investment decisions.”  

Why would I need a professional?  I have the wizard to tell me what to do, right?

What about the results that they claim are on the website and that they would never hide?  Well, those stunning results are on the website.  However, the disclaimer tells the real truth.  Incidentally, this disclaimer was of course at the very bottom of the page in gray scale, making it almost impossible to read.  

“HYPOTHETICAL (not actual trades as marketed) OR SIMULATED (made up) PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD (at least they tell you the marketing was a lie), SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED (read:  these are not real results)…

There is more, but I think you get the picture.  The lesson to learn is that marketing doesn’t have to be the truth and one small disclaimer keeps it legal.  When it sounds too good to be true, it usually is too good to be true.  

Tags: Bob Brooks, Deceptive Money, Prudent Money, software, stocks

How do people lose billions of dollars in investment schemes such as the one that Bernie Madoff ran for years?  How do consumers get taken by credit card companies?  How do investors lose 40 to 50% in a year’s time in the stock market?  Can’t any of this be avoided?  

How can it be that people are so easily scammed or talked into making a bad decision?  Let’s face it – today’s financial world is driven by sales and marketing.  That has a good side and a bad side.  The good side of sales and marketing comes from individuals who look out for the best interest of others.  They go about communicating solutions to your financial needs by placing a value on communicating and consulting.  

Then there is the bad side of the sales and marketing world.  It is driven by the bottom line at any cost.  It is a world full of greed and sales pitches designed to benefit the company and not the consumer or client.  It is mainly what I refer to as irresponsible marketing.  This is marketing that subtly leads you to believe something that is far from the reality of the situation.  

There is irresponsible marketing all over the place.  You see it from the commercials that peddle gold to the commercials that claim they are going to solve your debt problems overnight.  They come from the claims of an investment process that just doesn’t lose money and investment strategies that supposedly have it all figured out.

They market to emotions and, as a result, emotional decisions are made.  This is how consumers get taken to the cleaners.  The reason it happens is quite simple.  One of the most important fields of education that has never been taught in the school systems is the subject of money.  We are a world uninformed about a topic that is extremely important.  There are marketing departments in all lines of businesses making millions of dollars off of decisions made by uninformed consumers.  

It is less likely to make a bad decision if you have invested some time in educating yourself and understanding the pros and cons of the decision.   I truly believe that one cannot be a successful steward of money until you have invested some time in learning about how money really works.  

If the school systems are not going to place a value on learning about how money really works, then it is up to us as parents to make sure that we teach our kids.  In order to teach our kids about how money works, we have to make sure that we ourselves place a high value and priority on learning about money.

Today, the stakes are too high not to invest some time daily in learning how money really works.  Decision-making is tougher today than it ever has been.  Relying on a marketing pitch or marketing campaign as the basis of your decision-making can be a disaster.  

This year make it a priority to invest time into furthering your education about money.  Time and money are gifts from God.  Bad decision-making with our finances will only waste those gifts.

Tags: Bernie Madoff, Bob Brooks, Debt, debt problems, Deceptive Money, finances, God, Investment schemes, marketing, Prudent Money, sales, Stock Market

On Thursday of last week, 70 year old Bernie Madoff, a former chairman of the NASDAQ Stock Market and very well-respected individual, was arrested for securities fraud.  It is alleged that he ran a Ponzi scheme that now has an estimated loss of 50 billion dollars, making it easily the largest fraud in the history of the financial markets.  

This is a fraud that has affected individuals and institutions all over the world.  A prized leader within the Jewish community, he was viewed as someone members of that community could depend on.  As a result, many of his clients were among the richest and most powerful Jewish families in America.

The wealthy, the middle class, institutions, foundations, non-profits, a Senator, Hollywood actors, and athletes were all victims.  Some lost everything.  Some lost hundreds of millions of dollars.  Retirement wiped out.  College funds wiped out.  Foundations facing serious financial blows, all in the name of steady financial returns.

It was ingenious how he set it up.  It wasn’t your traditional Ponzi scheme.  He even gave money back to people when they asked for it.  

Ponzi schemes were named back in the 1920’s after Charles Ponzi, who made his money hawking an investment in international postage stamps that promised to double investors’ money in 90 days, sucking in 40,000 people who lost millions.

In most cases, you had to be invited to be invested.  Madoff even encouraged people to invest a small amount at first to make sure that they were comfortable with the process.  Any who questioned Mr. Madoff’s investment process would be quickly dismissed.  After all, you don’t question the process of someone who was making strong consistent returns year after year.  

The way it was vaguely described to us was that the the investment managers had a system that consisted of placing a series of instant trades all at once.  Through this magical formula, they created a tiny 1% guaranteed, no-risk profit for the group. You do that 20 times a year, subtract the management fee, and you are left with a handsome 15% annualized return.  Man, these guys were good.

He did just enough to keep the trust of his investors and pulled off the greatest financial scam ever for a very long time.

Ironically enough, this same type of thing happened in the 20’s as well.  It is amazing to see the similarities between the 1929 crisis and today.  This highlights the problems of a debt crisis.  You never know what is going to come out of the woodworks from day to day. 

Tags: Bernie Madoff, Bob Brooks, Deceptive Money, financial markets, NASDAQ stock market, ponzi scheme, Prudent Money

With banks in tight financial conditions due to the current financial crisis, consumers need to be extra careful about the fee structure that comes along with their accounts.  The latest FDIC study points out the banking system’s preferred way of making money when it comes to fees.  74% of the fees that are earned by the banking system come from account overdrafts.

This latest report shows that banks made 1.97 billion dollars in overdraft fees.  That number comes from a study of 2006.  Some outside groups suggest that in 2007 that number was more like 17.5 billion.

The enormous costs come from the fee itself which can be $37 or more plus the interest costs of the overdraft protection programs.  

Let me give you an example.  Let’s say that you purchased a cup of coffee.  The coffee was $2.05.  You had $2.00 in the account.  The bank went ahead and honored the debit because of the overdraft protection.  That caused an overdraft fee of $35.  Then you went and run some errands.  You spent $10 at the drug store and then another $5 for lunch.  

That combined $15.05 worth of purchases just cost you a total of $105.  The bank allowed you to borrow $15.05 for the small cost of $105.  That is an interest cost of 697.67% on that $15.05 loan.

With banks getting more and more aggressive with enticing programs and higher fees, it is time for the consumer to be very careful.  Here are some things to consider:

1)       Keep it simple – Banks will want you to sign up for all of these types of programs that help you save or help you stay out of trouble.  Just avoid them and keep your account set up very simple.  Programs like the Keep the Change program can be a nightmare to manage and creating a high probability that you will make a mistake.

2)       Place a higher value on organization – It is easy to get lazy with the management of your finances.  Resist the urge to do so.  There is too high of a price for mistakes today.

3)       Check into the fees of your current checking account – It is easy to just assume that your banking account has no trap doors.  Don’t be so sure!  Make sure that there are no gotcha’s.

4)       Shop and compare – Make sure that you are not paying too much in fees – Banks are extremely competitive today for your banking dollars.

Fees can be higher or lower depending on the size of the bank.  For instance, banks larger than $20 billion in assets charged an average of $33 to $34 in overdraft fees compared to banks with less than $100 million in assets, who charge an average of $24 per error.

Tags: banks, Bob Brooks, debit, Deceptive Money, FDIC, fee structure, overdraft fees, overdraft protection, Prudent Money