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Student Loans Get a Compassionate Policy from Wells Fargo

Lots of banks talk about how they really want to look out for their customers, and almost every financial institution uses slick ad campaigns to make them appear more compassionate and caring. But consumers know from experience that what really gets banks emotional is making profits, not matter what. One major bank, however, has decided to put its money – or its customers’ money, to be more specific – where its mouth is.

In a compassionate and significant move, Wells Fargo recently changed its policies and procedures to include student loan forgiveness in the event of a student beneficiarys death or permanent disability. This new kind of loan forgiveness policy will be added to existing and future Wells Fargo private student loans that are taken out to fund direct education-related expenses. The forgiveness or waiver of debt liability is a major shift from the bank’s previous policy. Under the old rules the customer or co-signer had a legal obligation to repay the loan even if a student died or became disabled. Wells Fargos new policy requires notification of the student beneficiarys death or permanent and total disability and documentation to support that notification. Once no

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Tags: Compassionate Policy, Fargo, Student Loans Get, Wells Fargo

When it comes to paying off your credit cards, there are two methods that are widely recommended. One way is to pay off your credit cards in order from highest interest rate to lowest interest rate. The other way is to start with the lowest balance then move to the biggest balance. What’s the difference between the two and which one is best? Read Two Credit Card Payback Methods That Work. Hint: Ultimately, paying off your credit cards is most important.

Tags: Highest Interest, Highest Interest Rate, Interest Rate, Lowest

On February 25th I wrote this article summarizing the IRS’ new tax lien policy and what it meant to consumers who wanted to get Federal tax liens removed from their credit reports.  The IRS’ announcement, which can be seen here, doesn’t specify whether or not their new rules regarding withdrawals are retroactive.

Today we may have been given a clue as to their willingness to withdraw tax liens that predate their new tax lien policy announced February 24, 2011.  I spoke with a gentleman from Texas who didn’t want to be identified.  I’ll call him Paul for this piece.

Paul had a Federal tax lien filed against him in January 2008.  The amount was $10,600.  He paid the lien in full in June of 2008 and the lien was subsequently released.  On his credit reports the lien showed as being released.  Federal tax liens remain on your credit files for 7 years from the date released so Paul thought he was going to have to live with it on his credit file until June 2015.

He read my above referenced article, decided to roll the dice, and contacted the IRS.  Using form 12277 (Application for Withdrawal of Filed Form 668(y), Notice of Federal Tax Lien) he requested that the lien be withdrawn.  To his surprise two weeks later he received, in the mail, form 10916 (c) (Withdrawal of Filed Notice of Federal Tax Lien).  Paul sent the form to Experian and TransUnion today.  They are the only two credit bureaus currently reporting the lien.

The IRS’ policy of withdrawal seems to be retroactive.  We don’t know if the age of the lien played a part in their decision to withdraw it.  We don’t know if the relatively small amount played a part either.  What we do know is if the IRS policy is truly retroactive there are going to be a lot of people getting them removed from their credit reports well in advance of the 7 year credit reporting statute of limitations.

John Ulzheimer is the President of Consumer Education at SmartCredit, the credit blogger for Mint, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and

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Tags: Federal Tax, Federal Tax Lien, Policy, Tax Lien

You get sticker shock every time you fill up your car. Your home’s value, on the other hand, has been falling ever since you signed your closing papers. Your boss threatens to fire you every time you ask for a raise. And you’ve busted your monthly budget steadily for the last two years.

You, like so many other consumers, are struggling through the country’s challenging economic times.

If you happen to own an American Express card, though, you might have the opportunity to boost your savings through the company’s Membership Rewards program.

Maximizing Bonus Points with Membership Rewards

The Membership Rewards program is built into most American Express credit cards. Basically, you’ll one rewards point for every dollar that you charge. There is no limit to the number of points you can earn, and these points have no expiration date.

You can then turn these points into free airfare, hotel stays, car rentals, restaurant gift cards and store gift certificates. In other words, it’s a good way to earn free stuff, and in today’s challenging economy, “free” is more important than ever.

You can earn more points when you log onto MembershipRewards.com to do your shopping. This Web site, ru

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For the novice or aspiring cardholder, credit card applications and offers can be quite confusing, considering all of the seemingly esoteric terminology used by financial institutions. Without the proper understanding of the terminology, cardholders can be persuaded into applying for credit cards that charge unfair fees and interest rates. Before applying for a card, applicants should understand the following important credit card terminology:

Balance

Since credit cards are actually ongoing loans, the term “balance” can be somewhat confusing, as the money within the credit card account does not technically belong to the cardholder. The credit card balance is defined as the total sum of all purchases, cash advances, card fees and finance charges. In basic terms, the balance is the amount of credit that has been used. Higher account balances lead to higher credit utilization rates, which eventually lowers the credit score.

Grace Period

The grace period is the time given to the cardholder in which they can repay their card balance in full before interest is charged. If

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Tags: Card, Credit Card