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Another Data Breach? Now at California Department of Motor Vehicle

Tuesday, March 25, 2014 0 comments
An investigation is currently on-going due to possible data breach that might have occurred in California Department of Motor Vehicle (DMV). 
The investigator are looking at the angle that this maybe related to the transactions made on its website from August 2013 to January 2014. Huge number of debit card and credit card might have been affected and the investigators have been watching closely on those accounts that currently have unauthorized transactions and are found to have used DMV online website as a form of payment in the past few months. Even though there was no clear evidence of system hack, some banks has started investigating separately and working closely to avoid losses in their customers' accounts. 
New debit and credit will be sent out to customers who might potentially affected by the possible data breach. 

Banker's Tip: Most banks are now notifying their customers in advance specially if there are important update. Check your online banking and review your transactions, browse on your paper mails and e-mail and check if your bank might have sent notice and reminders. 



How does Bank Regulation D Affects a Savings Account?

Wednesday, March 19, 2014 0 comments
Do you have a savings account? If you do, then it means you should know the meaning of Bank Regulation D. 

Regulation D is a law governed by Federal Reserve that limits each savings account only up to 6 pre- authorized debit transactions in a full statement cycle or a whole month period. The main reason for this is to implement monetary policy on how each banking institution should classify each depository accounts for reserve requirement purposes. There are different types of deposit accounts, and the most common types are the Savings and Checking Account. Savings account is mainly for savings purposes while checking account is for spending. 

To avoid penalties in a savings account which may cost between $12 to fifteen dollars per transaction, these are some transaction that we have to limit in a full month period or 1 statement cycle.

  • Online Transfer
  • Telephone Transfer
  • Overdraft Protection Transfer
  • Card Purchase
  • Pre-authorized Debit Transaction or ACH
The only two debit transaction that can be done in a savings account without limits are the following:

      • ATM Transfer
  • Branch Electronic or counter withdrawal
These things seems to be very basic but sometimes due to our very busy schedules we forget about these thing and banks charges fees whenever we go over the 6 pre-authorized transaction.

Banker's Tip: Open a separate checking account and consider it a savings account. Just make sure you check with your bank what fees may apply to keep a checking account and see if you can meet the requirement. This way, you no longer have to worry about the 6 pre- authorized transaction. These works well, specially if you want to secure your funds and don't want to put all your money in just one account. But if you want to keep your savings account, then you can also keep a register of all your expenses per week and do a lump some funds transfer for your budget to avoid regular funds transfer out of the savings account. Do not forget that most banks offers unlimited ATM transfer out of the savings and even unlimited withdrawal from the branch. Wells Fargo, has an automatic set-up that reminds customers if they are about to go over the limit specially if you have online banking.



Wells Fargo Direct Deposit Advance will be Discontinued Soon?

Friday, March 14, 2014 0 comments
The one and only bank that offers Direct Deposit Advance, Wells Fargo, will sooner discontinue the Direct Deposit Advance Service. This service has been used up by millions of Wells Fargo customers specially those who are independent with social security deposit. The Direct Deposit Advance loan has been considered as the quickest and easiest way to access emergency funds.

This coming May 25th, 2014 the direct deposit advance will no longer be available. The service can only be use until May 24th this year.

This is based on the studies and arguments. the service is not really helping most customers as it is very similar to other pay day loan and lenders that charges high interest rates and uses the borrower's upcoming paycheck as a collateral. In addition, this can also cause never ending cycle of high cost debt for the consumers who can hardly afford it.

Even though the service will no longer be available before the end of the 1st quarter this year, Wells Fargo have said "Wells Fargo offers spectrum of credit products that are designed to meet customer needs, including unsecured credit card, line of credits and secured credit card, which can help customers build or rebuild their credit. As always, Wells Fargo encourages customers to talk to a banker about their unique credit or account management need."

Acknowledgement: Wells Fargo Bank

What is Direct Deposit Advance by Wells Fargo?

Monday, March 10, 2014 0 comments
Direct Deposit Advance is very common to customers who are banking with Wells Fargo, specially to those that receives a qualifying direct deposit every month. Direct deposit Advance is a line of credit designed for short term borrowing needs. This is found to be more costly compared to other credit cards and line of credits since it charges $1.50 for each $20 borrowed. For example, if you borrow $500 you will be charged with $500 plus the $37.50 on top of it. This will be automatically taken out on the next qualifying direct deposit of $100 or more in an account.

Payment plan is another method of payment that can be used as well instead of the automatic deduction. Though, the bank is strict and consider some factors before an account gets approve for payment plan. The good thing about payment plan is it will allow the customer to pay $100 only in every qualifying direct deposit. By speaking to friendly Wells Fargo representative we can i identify if we may qualify. The fund is immediately available once borrowed.

 Here are some factors the bank consider before approving an account for a payment plan. 

1. The service should have already been used for 3 consecutive statement cycle
2. The account should have at least an outstanding balance of $300 or more, and lastly
3. State where the account was opened is also considered.

Admittedly, most of us are thankful since this service is available. We can either use the Wells Fargo automated response system or speak to a bank representative or do it through the online banking. Let's just be more mindful of borrowing as we also have to pay the same amount and even more as we get our next paycheck. 

Acknowledgement: Wells Fargo Bank

Common Descriptions for tax refund

Monday, March 3, 2014 0 comments
Tax season is not just around the corner! Most banks have sent their clients some tax forms that customers would need since last January.

Now we are waiting for our tax refund. What are the common description we see that would help us identify its already the tax refund that we are waiting for?

H & R Block (which is a tax calculator, the most famous financial advisor in U.S.), Tax refund are the common description we see but for other instances it could also show up as TGY*89 on the description or could show different names. Others are wondering what are these codes for. Since it also varies in different accounts. This could also be an abbreviation of any words.

Whats important is that we are able to get our tax refund in time. Let us not forget to save some or part of the refund so we have funds we can use during emergency. 

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