Credit Questions? Just Ask Nicole

Will a Foreclosure Affect the Right to Vote of Michigan Residents?

There seems to be quite a bit of confusion brewing here in Michigan regarding whether home owners who've received a foreclosure notice have the right to vote in the upcoming presidential election.

Members of the Michigan Republican Party are pushing an effort to suppress the votes of Michigan home owners who may lose, or who have already lost, their homes to foreclosure.

The Michigan Republican Party wants to assign "election challengers" at the polls (as they are allowed to do by state election rules) to monitor not only the poll workers, but also to challenge the eligibility of voters based on them not being a "true resident of the city or township" as a result of their home foreclosure.

Talk about adding insult to injury.

They actually plan to arm their election challengers with foreclosure lists to use as a basis to challenge a person's vote at the polls, in hopes of getting the vote disqualified.

What I don't get is, both Democrats and Republicans have been hit with foreclosures. So wouldn't this tactic hurt some of their very own supporters?

You can read more about this issue in a story ran by the Michigan Messenger by clicking here, or just by googling "lose your home, lose your vote" and reading one of the many stories that'll pop up.

Regardless of party affiliation, I personally believe any attempt to suppress a voter's right to vote, especially in this manner, given the current state of our struggling economy and the high number of consumers affected by the foreclosure crisis, is just plain 'ole scandalous and tacky.

I mean, don't Michigan residents facing foreclosure already have enough to worry about? Geez!

The Obama campaign joined in a class action lawsuit filed by some Michigan residents and The Democratic National Convention to prevent the suppression of votes by Michigan home owners who've faced foreclosure, but we'll have to wait and see what the results of that case will be. [*click here for an update on the case as of 10/20/08]

Bottom line: Michigan residents who are facing foreclosure, or who have had a foreclosure, absolutely and positively have the right to vote in the upcoming presidential election. A foreclosure does NOT affect the right to vote of Michigan residents.

To bring some clarity to the confusion, a notice has been posted on the State of Michigan's website entitled "Michigan Voters and the Home Mortgage Crisis: You Have the Right to Vote."

This 3-page document, drafted by the National Campaign for Fair Elections and the Lawyers' Committee for Civil Rights Under Law, explains in detail the rights of Michigan voters facing foreclosure.

Be sure to read this notice in its entirety, and pass it on to others, because it contains some very important and specific information about home foreclosure and the legally protected right of Michigan residents to vote.

For further questions on this topic, contact the Election Protection Hotline at 1-866-OUR-VOTE.

Now, get ready for November 4th and get out there and vote!

What's Happening in August?

I've received more than a few emails and questions from people lately regarding:

• When is the next consumer credit or business credit class?
• Will you be holding any more classes soon?
• Will you be holding any classes in August or September?
• How far down on the wait-list am I?
• I'm on the wait-list, how much longer can I expect to wait?
• Can you move me to the top of the wait-list?
• How can I get on the wait-list?

So in response to these questions, I thought I'd give you guys an update...

For starters, this month I'm not conducting any credit classes and I'm not taking on any new NixFix credit restoration clients. But, that's just for this month only!

And here's why...

A lot of work is going on behind the scenes right now with Credit Hour, and I want to make sure things go according to schedule and as planned. Plus, I'm taking a little break. :-)

This is what's happening... the Credit Hour website is being re-designed, the web portal that delivers the consumer credit class is being re-designed and loaded with a lot of new features, the business credit class is being reviewed and edited to make sure all relevant information related to the current market is in there, and our private email notification lists are being ramped up and changed around a bit to make sure our messages get to you.

Plus, this blog will be getting a little make over too!

During the month of August, while I'm working on all this other stuff, I'll continue to post to this blog and answer your questions. I have quite a few questions to review and answer for you, so look for those to come your way soon.

And rest assured, if you're on the wait-list for the consumer credit or business credit classes, you haven't been forgotten about! You will be notified as soon as a class is available.

Classes will pick back up in September.

So, I hope this gives you a little insight. If you have any questions, feel free to submit them in the comments below, or by clicking here.

And if you're not already on the wait-list for a class, and you'd like to be added, just click here.

Can't make rental payments on sunken dozer. How bad will this affect my credit?

This question comes by way of Longview, Texas...

"I have good credit now and I am 25 years old, I co-signed on a rental note for a dozer and basically the dozer got sunk in a pond, the insurance while it was being repaired did not cover down time, it's rental bill is $28,000. I do not have the money to make monthly payments or pay this. Do you know how bad this will effect my credit? Will they take my credit card back that I already have? I know it will screw me in the long run just wondering how bad... If u have a answer to my problem please help me understand better."

Well, how bad this may affect your credit is really going to depend on how it all plays out and the policies and practices of your lender.

First of all, I'd brainstorm with the person you are on the note with to figure out a game plan. After all, this is not your debt alone. They say two heads are better than one, so you just may be able to come up with a way to make the payments after all.

Second, I'd thoroughly review your insurance policy to make sure they were not liable to help cover your payments while the dozer was being repaired. Insurance companies are infamous for not wanting to pay out on claims and sometimes you have to kick them in the butt and STAY on their butt to make them do so.

If you find the insurance company is not liable to pay, then definitely consider making an adjustment to your policy to prevent this type of thing from happening in the future.

Third, I'd call AND write your lender to explain the situation. For maximum impact, both you AND your co-debtor should call (repeatedly if you have to), and the letter should be signed by you both (write repeatedly if you have to).

In your phone calls and letter(s), ask the lender for a work-out plan or payment arrangement plan. Express and stress to them your willingness and intent to pay, but because of your current incapacity to pay, you need their help right now to make good on your agreement with them.

Also, tell them that this is only a TEMPORARY bad financial situation that you are in and that you are working diligently and vigorously to correct the financial problem.

If the insurance company will end up having to pay, make sure the lender is aware of that, and stay on top of coordinating the payment from the insurance company to the lender so that it gets processed ASAP.

Hopefully they will be helpful to you and willing to work something out with you.

Be sure to stay in constant communication with them (think stalker taken down a notch), and don't be afraid to escalate your case to a supervisor, manager, or even the President to get some results.

But keep in mind that in the meantime, if the rental payments continue to go unpaid, the lender could repossess the dozer. And a repossession would be horrible for your credit.

And... if you have a credit card with the same lender that financed your dozer, they could easily close your credit card account, reduce your credit limit, or raise your interest rate.

Hell, even a different credit card company could do the same things if they were aware of your late payments on the dozer (i.e., universal default).

If your credit card gets closed and you still have a balance on it, or if your credit limit gets reduced and your balance is higher than the reduced credit limit, that will negatively affect your credit. The credit scoring model does NOT like outstanding balances that are higher than the credit limit.

Hope this bit of info helps, and best of luck to you!

What exactly does the FDIC do?

Well, in short...

Congress created the Federal Deposit Insurance Corporation (FDIC) in 1933 to restore public confidence in the nation's banking system after the numerous bank failures in the 1920's and 1930's.

The FDIC, an independent agency of the federal government, insures deposits at the nation's 8,494 banks and savings associations.

It also promotes the safety and soundness of these institutions by identifying, monitoring and addressing the risks they are exposed to, and immediately intervenes and takes over when an institution fails, as was the case with IndyMac and 4 other banks just this year alone.

As a side note, to see a listing of failed US banking institutions over the past several years, click here.

Since it's inception on January 1, 1934, the FDIC has done a stellar job of protecting the insured funds of depositors, and has never lost a single cent of insured funds as a result of a bank failure.

It's important to note that the FDIC does not insure each and every product offered by banks, and only offers protection to banks that participate in their insurance coverage program.

The FDIC only insures deposit and retirement accounts such as savings, checking, money market, trust, CD and IRA accounts. It does not insure securities, mutual funds, or other types of investment accounts such as annuities, life insurance policies, stocks or bonds, nor does it cover safety deposit boxes.

For more information on what is and is not covered by FDIC insurance coverage, click here.

To find out if you have adequate deposit insurance coverage on your accounts, click here.

The FDIC is funded by the premiums banking institutions pay for deposit insurance coverage and from earnings on investments in US Treasury securities.

For more detailed information on the FDIC and what it does, click here.

And if you still have questions or concerns, you can call the FDIC toll-free at 1-877-ASK-FDIC (1-877-275-3342) from 8 a.m. until 8 p.m. ET, Monday through Friday (for TDD call 1-800-925-4618).

IndyMac Bank Closed Down (What Happens to Their Customers?)

More bad news in the banking industry... IndyMac Bank has officially closed down and the federal government has stepped in to take over.

The FDIC (Federal Deposit Insurance Corporation) has been named the conservator of the bank, and as such, they will transfer all of IndyMac's holdings (i.e., deposits and assets) over to a new IndyMac Federal Bank.

The FDIC will operate IndyMac Federal Bank to maximize the value of the bank for a future sell, and to preserve banking services in the communities where 33 branches of IndyMac existed.

Banking customers and borrowers of IndyMac Bank will automatically become customers of the new IndyMac Federal Bank.

Customers will continue to receive uninterrupted service and everything will remain the same as before, however, for just this weekend only, depositors will not have access to phone or online banking services. Phone and online banking services will resume again on Monday, July 14th.

For additional information, IndyMac customers can call 866-806-5919, or visit the FDIC's website by clicking here.

How to Remove Your Phone Number from Google Search Results

Were you aware that your personal phone number, along with your name and address, may be listed in Google's search results for all the world to see?

If you've never checked, just type in your phone number, including area code, into the Google search box and see what the results are.

If your personal information pops up and you are concerned about your privacy, watch the video below to learn how to remove your phone number from Google's phonebook listings.

And don't forget to get permission to assist friends, family members, and neighbors - namely older adults - with completing this task if they are not able to unlist their phone number in this manner themselves.

A Courtesy Call Goes a Long Way

Ever experience a time when you forgot to pay a bill for whatever reason, or you were strapped for cash and you weren't quite sure you'd be able to make your bill payment on time?

Well, life happens, and sometimes even important things slip your mind, and sometimes money is so tight that your wallet squeaks!

So if you run into a situation where you had every intention to pay a bill on time but "something happened," and your payment is going to be a little late, make sure you call your creditor and let them know.

Give them a heads-up.

You'd be surprised how often you can avoid late fees and penalties by simply giving your creditor a "courtesy call."

Preferably before the actual due date!

Call your creditor ASAP and let them know all of the particulars related to your late payment...

• make sure you convey to them that you are aware your payment is late or is going to be late
• apologize for any inconvenience and let them know it was purely an oversight on your part
• assure them you will do your best to never let this happen again
• give them the date your payment will be made by
• tell them the method by which they will receive your payment (regular mail, online payment, payment by phone, overnight mail, etc.)
• if you already know the check number, money order number, tracking number, etc., give them that too
• tell them you are very concerned about maintaining/building a positive payment history with them, and you were hoping they could waive or reverse any late charges or penalties that may be automatically assessed to your account (if any)
• ask that they please notate your account with all of the information you've given them and if they agree to waive any late fees or penalties, verify that your account will be notated with that information also
• for your records, write down the name and contact information of the person you're talking you (i.e. ID#, extension #), along with the date and time of your call (keep this info handy in case you need it later)
• be sure to thank the representative for their assistance
• follow through with making payment just as you stated

Now, the "courtesy call" normally only works if your late payment is an isolated incident, and you plan to make your payment relatively soon after the due date.

Chances are it will NOT work if you are chronically late, and you're telling them you're not making a payment anytime soon, like not until the next billing cycle or due date.

So remember, a simple courtesy call can go a long way in avoiding late fees and penalties, especially when you are proactive and polite, and you follow through!