Archive for the ‘Banking’ Category

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A Open Letter to My Bank December 18th, 2009

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A little bit of old fashioned “Will Rogers” humor in a letter to my bank.

Dear Sir:

I am writing to thank you for bouncing the check with which I endeavored to pay my plumber last month. By my calculations some three nanoseconds must have elapsed between his presenting the check, and the arrival in my account of the funds needed to honor it. I refer, of course, to the automatic monthly deposit of my entire salary, an arrangement which, I admit, has only been in place seven or eight years. You are to be commended for seizing that brief window of opportunity, and also for debiting my account with $50 by way of penalty for the inconvenience I caused to your bank.First, I have noticed that whereas I personally attend to your telephone calls and letters, when I try to contact you I am confronted by the impersonal, ever-changing, prerecorded, faceless entity, which your bank has become.

From now on I, like you, choose only to deal with a flesh and blood person. My mortgage and loan repayments will, therefore and hereafter, no longer be automatic, but will arrive at your bank, by check, addressed personally and confidentially to an employee of your branch, whom you must nominate. You will be aware that it is an offense under the Postal Act for any other person to open such an envelope. Please find attached an Application Contact Status, which I require your chosen employee to complete.I am sorry it runs to eight pages, but in order that I know as much about him or her as your bank knows about me, there is no alternative.

Please note that a Notary Public must countersign all copies of his or her medical history, and that the mandatory details of his/her financial situation (income, debts, assets and liabilities) must be accompanied by documented proof. In due course I will issue your employee with a PIN number, which he/she must quote in all dealings with me.I regret that it cannot be shorter than 28 digits but, again, I have modeled it on the number of button presses required to access my account balance on your phone bank service. As they say, imitation is the sincerest form of flattery.

Let me level the playing field even further by introducing you to my new telephone system, which you will notice, is very much like yours. My Authorized Contact at your bank, the only person with whom I will have any dealings, may call me at any time and will be answered by an automated voice. By pressing buttons on the phone, he/she will be guided through an extensive set of menus:1.To make an appointment to see me2. To query a missing repayment3. To make a general complaint or inquiry4. To transfer the call to my living room5. To transfer the call to my bedroom in case I am sleeping. Extension of bedroom to be communicated at the time the call is received6. To transfer the call to my toilet in case I am attending to nature.Extension of toilet to be communicated at the time the call is received.7. To transfer the call to my mobile phone in case I am not at home.8. To leave a message on my computer. To leave a message a password to access my computer is required. Password will be communicated at a later date to the contact.9. To return to the main menu and listen carefully to, options 1 through 710. The contact will then be put on hold, pending the attention of myautomated answering service.While this may on occasion involve a lengthy wait, uplifting music will play for the duration.

This month I’ve chosen a refrain from The Best Of Woody Guthrie: “Oh, the banks are made of marble With a guard at every door And the vaults are filled with silver That the miners sweated for.” After twenty minutes of that, our mutual contact will probably know it by heart.On a more serious note, we come to the matter of cost. As your bank has often pointed out, the ongoing drive for greater efficiency comes at a cost -your kindness by passing some costs back. First, there is the matter of advertising material you send me. This I will read for a fee of $20 per page. Inquiries from your nominated contact will be billed at $5 per minute of my time spent in response. Any debits to my account, as, for example, in the matter of the penalty for the dishonored check, will be passed back to you.

My new phone service runs at 75 cents a minute (even Woody Guthrie doesn’t come for free), so you could be well advised to keep your inquiries brief and to the point. Regrettably, but again following your example, I must also levy an establishment fee to cover the setting up of this new arrangement. May I wish you a happy, if ever-so-slightly less prosperous, New Year?

Your humble client.

Regis Sauger

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Top 5 Reasons to Use Online Banking December 1st, 2009

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In recent years online banking has become increasingly popular, and many consumers have benefited from being able to conduct all of their banking transactions online without having to resort to queuing in the local bank or spending time trying to get through automated switchboard in order to speak to someone on the phone.

Online banking allows you to run your day to day finances, and manage your bank account, with ease and convenience, and with this method of banking you are always in control. With online banking you get to enjoy convenience, ease, speed, and increased control, which is why so many people now decide to conduct their banking transactions online rather than at a branch. The main reasons many people opt to use online banking are:

1. The ultimate in convenience: When you use online banking you can conduct your transactions from the comfort and privacy of your own home, so you won’t have to worry about going out to your local branch, spending time queuing up, and trying to fit your banking commitments into your busy day, which can be particularly difficult for those that work full time.

2. No time constraints: With regular banking you are restricted in terms of when you can contact or call in to the bank in order to conduct transactions, and this can prove difficult for those with busy lifestyles and full time jobs. However, when you opt for online banking you can conduct transactions at any time of the day or night, which means that you can effectively manage your account around the clock.

3. Do everything you need to online: You will find that you are able to conduct pretty much any banking transaction that you can perform by phone or visit to your branch by going online, other than withdrawing and depositing cash. This means that you can effectively control your finances from the privacy of your own home.

4. Increased security: Banks now use very secure software to ensure the safety and security of customers, making it safer than ever to bank online. Just remember never to link to your bank account from an email link, as this could be a false link, and do not save your banking passwords and security details on a shared computer that could give others access.

5. 24 hour access to your account: With online banking you can access your account 24 hours a day, conducting transactions such as making bill payments, checking your balance and statements, setting up or cancelling direct debits and standing orders, and more.
Gone are the days when you could only gain access to you bank between the hours of 9.30am and 3.30pm.

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Do You Want The Ultimate Marketing Strategy To Dominate Your Market? November 28th, 2009

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Do you want the ultimate marketing strategy that will allow you as an REI to dominate your market and crush your competition?

Then BE the BANK. What? I can’t be the Bank, I got into REI to make money fast! The number one way you can make money as an REI is to do exactly what the Big Boys do. You need CASH, right? (unless you know the techniques described in my book) So how do you get your hands on a steady flow of cash and eliminate being a landlord?

You could hire a good property management company to outsource all of the work of managing your rental properties for you, and turn over 10-15% of your cash flow to them. Or, you could open up your own property management company and use it as a wealth retaining tool. (recommended).

Or you could set yourself apart from all of the competition and serve an underserved section of the community. Use this to get tons of FREE publicity on local news and radio stations, which in turn will pour thousands of applicants back into your system, give you name recognition, and establish you as the EXPERT in your neighborhood.

But first: How can you be the Bank?

We’re not talking about registering with the SEC, or FICA or any regulating body that has all sorts of requirements and conditions about working as a bank. All we mean is you AS THE OWNER, hold the NOTE.

Good, old fashioned owner financing, the exact same kind of deal you were looking for as an REI, is exactly what you offer to your clients.

How it works is like this: you negotiate to purchase a home for 55 – 60% and write a contract. Take that and get a hard money loan for 70% of the arv. (After repaired value). You use the overages to repair the home and force appreciation to a better than current market value.
Now, while your crews are working, put a big sign in the front yard stating, low down, ez terms, no bank qualify, and your phone number, or you can own this home for x a month, call XXX-XXXX!

Set up a voicemail with all of the details, and tell invite them to apply or leave their contact info.
Ask for $3000 down (or less, depending on market conditions) and OWNER FINANCE for $200 – $300 over a traditional mortgage cost.

The numbers would look like this:

You bought a home for $55,000.


You got a hard money loan for $70,000 (on a $100,000 ARV)


You acted as your own general contractor and used the $15K difference to repair the home up to a market value of $100,000.

You find a good applicant (out of 100 applications at $25 per app fee) (($2500)) who pays $3000 down, and a monthly payment.

How do you determine your monthly payment? Go to the bank and get an 80% re-fi on the home. Your mortgage payment will be around $650-$750 depending on the interest rate. So your new tenants will pay $850-$950 per month.

As a homeowner, as opposed to a renter, they will be required to pay taxes and insurance on the home, and that can be worked into the payment schedule as well. As the BANK, you would also be well advised to keep a blanket insurance policy on all of your properties.

Let’s look at those numbers again: An REI would make money on the Hard Money Loan by acting as their own contractor ($15K), They would make money on the application fee’s ($2500) plus the down payment, ($3000) and money on the re-fi ($10K). Don’t forget the $200 month positive cash flow, and the good will (FREE PUBLICITY) that comes with providing a valuable service to the community.

A good REI would make $30,500 on a deal like this.

And with the 99 other applicants who didn’t get into this home, you have 99 more customers to go out and find the exact same deal on, multiplying all of your profit by 99. Could you be the bank for $3,000,000?

How do you cash in on the FREE PUBLICITY that acting as your own BANK generates?
As an REI, you need contacts in the community, specifically in the contractors and sub contractors categories. Want to promote your REI business on television for FREE? Get a van with graphics on it, and be sure it has your contact number.

Next, write up a press release with a good hook. Think sensationalism, just like a journalist. A Hook is what makes a viewer want to watch. You’ve heard it before. What’s in your home that may be killing you . . . stay tuned!

Your Hook will be something like, HOW A LOCAL BUSINESSMAN IS PUTTING BANKS OUT OF BUSINESS. Any producer or newspaper editor is going to jump all over that because it sells papers and draws viewers. Just come up with one great Hook, and you’ll never have to pay to advertise again.

When the television news crew sets up to interview you, stand in front of your van graphic. Ask that they hold the shot a little wide, not too obvious, and then you’re going out to thousands and thousands of viewers with your phone number and it didn’t cost you a dime.

If a newspaper crew takes your photo, give them an action shot with your sign, TELL YOUR BANK GOOD BYE, or PUT YOUR BANK OUT OF BUSINESS, and a phone number. Get a shot of you pushing it in the ground, hammer in hand.

Think outside of the box.

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Online Banking Booming Despite Fraud Fears November 24th, 2009

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In the space of a few years the internet has revolutionised the way the majority of us do our banking. Most banks and building societies offer their internet services 24 hours per day, meaning that even those leading the most unconventional of lifestyles can access banking at their convenience. Wherever you live in the UK, loans, current accounts, and mortgages can all be bought and administered online.



Ever since the advent of the internet, businesses have been searching for ways to use it in innovative, safe and secure ways hoping that it will offer more opportunities to drive business and increase profits. That includes banks which have often been at the forefront of internet technology in the search for a cheaper and more efficient way of doing business with their customers. Although they are unlikely to risk outrage by completely eliminating their branch networks, many high street banks would prefer the majority of customers to transact their business online. That is because it is by far the most profitable channel for the financial institutions.



And certainly from a customer’s point of view there are many good reasons to do your banking online. It’s extremely convenient plus you don’t have to go cap in hand to the local bank manager if you want to arrange any form of borrowing, and risk the embarrassment of being turned down. Now all that is required is a click of the mouse, whether it’s to submit an application for a short-term extension to an overdraft, or to apply for one of the many longer-term personal loans, all are available on the internet.



Indeed, the internet is rapidly becoming the number one place for applying for personal loans, and more people are regularly doing their banking online with payments association APACS reporting a 174% rise in numbers over the past year. Their figures show the greatest rise in usage coming from the over-55s with a 350% rise over last year. That ties in to a drop in reported online fraud as users become savvy to the most obvious phishing scams, and banks improve their education of users and tighten their own online protection.



Online comparison sites have also become extremely popular with the online community. They have made significant in-roads into the financial markets and potential customers can go there to compare loans, credit cards or even mortgages all on one website, without the need to do any of the hard work themselves. With everything required to cover all banking needs online, it is easy to see why it has become so popular.

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How to Obtain a Non ChexSystems Bank Account Without Being Scammed November 16th, 2009

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Predatory lending exists in the mortgage industry. It’s typically when a mortgage broker add’s on unnecessary fee’s to a bad credit application, because he or she knows that the applicant is in a desperate situation.

Predatory banking can also exist for those who have ended up in the ChexSystems.

ChexSystems is a network of financial institutions (mainly banks) that regularly contribute information about account holders that mishandle their checking or savings accounts. Nearly all banks within the US are a part of this consortium.

Bounce a check, and not pay it off in a timely manner, and you could end up in the ChexSystems. Even if you receive a bogus check, and the bank suspects foul play, you could land in the ChexSystems hot seat.

And the sentence for this financial felony isn’t light.

If the bank that put you in the ChexSystems refuses to release your name from the ChexSystems database, you’ll find it close to impossible to obtain a bank account of any sort for 5 years.

Even if you pay off the offending debt, the bank could still hold you a ChexSystems prisoner. Wicked, but 100% true.

So naturally when you have a situation where people are stuck between a rock and a hard place, the vultures come out to feed. This is what you may encounter if you’re looking for a non ChexSystems bank account.

Before you pay money to any service that claims to give you a non ChexSystems bank account be sure it passes the following tests with flying colors.

Make sure the bank is FDIC insured. According to the FDIC web site: “The FDIC – short for the Federal Deposit Insurance Corporation – is an independent agency of the United States government. The FDIC protects you against the loss of your deposits if an FDIC – insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government.” In a nutshell, if you decide to open a bank account with an institution that isn’t FDIC insured, you could basically lose all of your money if that institution goes out of business. So it’s extremely important to verify the banks status before you open an account. You can easily verify that a bank is FDIC insured at the FDIC web site. If it’s a credit union, make sure it’s NCUSIF insured. NCUSIF insurance is similar to FDIC insurance, except it’s for credit unions. According to the National Credit Union Association web site: “The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).” All credit unions that are NCUSIF insured can be found at ([http://www.ncua.gov/indexdata.html]). Make sure the institution has a physical branch. This is one of the easiest ways to weed out the bad seeds. Banks with physical branches are always legitimate financial institutions. Do some background work on the bank. Do a WHOIS search to view the registrant for the banks domain name. If it’s a single person, that should raise a red flag. It should always be the banks name or corporate name. Look on the banks web site. There should be separate telephone and fax numbers, and a legitimate street address – not a PO box. You can always call 411 to confirm that the telephone number matches the address listed. But also keep in mind that some banks have a central location where they answer general calls. Make sure the bank DOESN’T require you to use direct deposit in order to open the account. There are some financial services that offer checkless checking accounts. (This isn’t a scam as far as I can tell.) But what if you don’t get direct deposit? Or what happens if you switch jobs, and no longer receive your checks through direct deposit? Then you’re basically back at square one. And what if you want to use checks? I mean a checkless checking account kind of defeats the purpose of obtaining a checking account at all. Make sure the institution doesn’t charge you for common items like monthly statements, telephone services, and withdrawls. I recently noticed a financial service charging outrageous fee’s for options that are normally provided for free through regular banks and credit unions. They were charging for everything but the kitchen sink, including: a fee to check your balance at the ATM, a fee to receive a monthly statement, a fee if you wanted to return something you purchased from a retail store, a fee for using their automated telephone service. And that was just the tip of the iceberg!

Even though you’re in the ChexSystems doesn’t mean you should play victim to financially draining ploys like these. There are always better alternatives waiting in the wings.

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