Credit Questions? Just Ask Nicole

CARS.gov (Car Allowance Rebate System), Cash for Clunkers Info

For information on the $1 billion government sponsored CARS (Car Allowance Rebate System) program, aka "Cash for Clunkers," that allows consumers to receive a $3,500 - $4,500 trade-in allowance on their old vehicle when purchasing or leasing a new vehicle from participating auto dealers, click here.

Be sure to review the FAQ section and browse around the site for important program information, updates, participating dealers and eligibility requirements.

The CARS program is slated to run from July 1, 2009 through November 1, 2009 or until funds run out, whichever comes first.

So, if you were considering getting a new vehicle, perhaps now may be a good time to cash in on this deal. A lot of dealers are even tacking on additional incentives and promotions, so there's a lot of opportunity to save quite a bit of money on a new vehicle.

Also, you can save even more when it comes to financing your vehicle provided you have good credit.

This CARS program is designed specifically to energize the economy, boost auto sales, and put safer, cleaner and more fuel-efficient vehicles on the road.

You can also call the CARS hotline at (866) CAR-7891 or (800) 424-9153 TTY for more information (M-F: 8 am - 10 pm, Sa-Sun: 10 am - 8 pm).

And remember, buckle up, don't drink and drive, don't text and drive, let's all drive safely. :)

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!

Blue Cross Blue Shield of Michigan Sued by Attorney General

Just announced today, Michigan Attorney General Mike Cox will be filing suit against Blue Cross Blue Shield of Michigan.

Apparently, in violation of Michigan law, BCBSM used subscriber funds to purchase a for-profit company.

Mike Cox is quoted as saying "Subscriber funds were used so Blue Cross could purchase a for-profit company. And consumers, the sick and the elderly have paid higher premiums because funds that could have been used to lower their costs were diverted for this purchase."

Blue Cross is a tax-exempt, charitable and benevolent institution, established by state law as a non-profit organization in 1939.

BCBSM's surplus has more than doubled over the past several years, and during that same time, individual and group insurance rates have increased by 79% and more.

Cox is further quoted as saying "Michigan consumers are being squeezed by high gas prices, mortgage foreclosures and high unemployment rates. They shouldn't also have to pay higher health care premiums so Blue Cross can go on a spending spree and grab up for-profit insurance companies."

I hope he sticks it to 'em good!

Blue Cross Blue Shield of Michigan is trying to Gouge Senior Citizens

A couple of days ago, Michigan Attorney General Michael Cox announced that his office filed a request for a hearing to prevent Blue Cross Blue Shield of Michigan from raising the rates on their Medigap health insurance coverage program for seniors by 50%.

According to the announcement,

"The rate increase affects over 215,000 seniors or 17% of Michigan's population more than 65 years of age. Seniors already have to pay the costs for dental, drugs, eyeglasses, and hearing aids that are not covered by regular Medicare or the BCBSM Medigap insurance."

Can you believe that??? They're trying to raise the rates by 50%?!?

Come on, give me a break!

They claim they've been losing money for years on this particular program, and that could be true, but you can't tell me that they aren't making up for it in other areas.

Matter of fact, just a couple of weeks ago I was completing my father's open enrollment forms for health insurance, and I specifically ignored all of the choices offered by Blue Cross Blue Shield after I realized that they all came with higher rates and out-of-pocket costs and so forth.

And I also recall steering clear of them when shopping for my own health insurance plan because their rates were quite higher than other insurance companies that offered comparable plans, deductibles and services.

Now, out of the 215,000+ seniors that could be affected by this rate increase, about 90,000 of them who fall within 136% to 200% of the poverty level and who don't qualify for any type of government assistance to help them pay for their regular Medicare premiums, deductibles or co-pays, will be hit the hardest.

That's just not fair.

It's ridiculous to force seniors on low fixed incomes into a tight spot by imposing such a drastic health insurance rate increase all at once. Blue Cross Blue Shield of Michigan has to know what type of big impact this will make on their lives and the financial strain it will cause.

Do they not care at all???

I hope our AG Mike Cox and all of the senior advocacy groups that rally with him stop BCBSM cold in their tracks.

Don't pick on or harm our seniors.