Security Changes to Credit Cards – It is About Time!

Visa and Mastercard are requiring major retailers and banks to have implemented the security chip into their credit card program by October 2015. This chip can be found on the front of the credit card.

Credit Card Website, just recently released its 2015 EMV Migration Report – which analyzes the smart-chip credit card plans and progress of the country’s 10 largest credit card issuers as well as 55 major retailers.

Here are some findings of the study.

”   All 10 of the largest credit card issuers are in the process of issuing chip-based credit and debit cards and expect the majority of their portfolios to be updated by the end of 2015.

”   All chip-based cards issued by major banks will continue to have magnetic stripes – enhancing usability while also mitigating certain fraud protection benefits.

”   All of the major retailers that responded to our survey are on track to meet the October 2015 EMV transition deadlines set by VISA and MasterCard.

”   This one is the most disturbing finding. Retailer transparency regarding the security chip program is surprisingly low given the level of consumer concern about data breaches and financial security. Only 17 of the 55 retailers we contacted provided information about their policies – including just 25% of those that have been victims of breaches. It makes you wonder if retailers are just giving up and not even trying to fight a situation that they think they can’t win.

”   In the event a chip card is not automatically re-issued, consumers can call and request one from customer service.

To check out the full report, please visit:

I asked spokesperson Jill Gonzalez what was so special about this new chip.

Instead of magnetic strips, EMV cards use microprocessor chips, which are almost impossible to duplicate. The cards are tapped or waved about an inch in front of updated terminals — the exact method will vary from retailer to retailer. Each transaction made using an EMV card is approved using a unique authentication code that can only be used once. So, if a retailer falls victim to a payment information breach, that information cannot be used to make additional purchases or create fraudulent accounts – Jill Gonzales

Bottom line – don’t wait around for your bank or retailer to send you a new card. Be proactive, call them, and request that they send the new card to you.

IRS Secrets? You Bet There Are!

Exclusive free webinar with Bob Brooks and Dan Pilla

I wanted to make sure you knew about a free webinar that I am hosting with IRS Expert Dan Pilla. Dan has been a long-time friend of the show and has written 14 books on the IRS. He is considered the foremost expert on dealing with the IRS. In this special presentation, I will be doing a one on one interview with Dan. The problem isn’t the IRS. The problem is that most don’t know the secrets!

In this special presentation, Dan is going to educate you on what you need to know. The information in this presentation is sure to protect you and audit proof your life! Plus, you will get a copy of his Special Report – The IRS Strategic Plan Exposed. This 10 page document exposes the two strategic plans of the IRS. You get the report absolutely free. So, read about the event below and sign up to attend 1 of 2 presentations. With tax deadlines right around the corner, you cannot afford to be without this information. 


Session 1: SATURDAY MORNING, March 28


8:00 am PST; 9:00 am MST; 10:00 am CST; 11:00 pm EST


Click HERE to Register for SATURDAY


Session 2: SUNDAY, EVENING,  March 29


5:00 pm PST; 6:00 pm MST; 7:00 pm CST; 8:00 pm EST

Click HERE to Register for SUNDAY


DAN PILLA is the ultimate “IRS insider.” The Associated Press news service has said, “Dan Pilla knows more about how the IRS works than the IRS Commissioner.” He has frequently testified before Congressional hearings about IRS taxpayer abuse, has authored dozens of books to help taxpayers defend themselves against the onerous Revenue agency, and has help thousands of people solve their IRS and state tax problems over the past 30 years.  

New Changes Could Affect Your Credit Score…For the Good!

The three major credit reporting agencies announced Monday some sweeping changes in the way they report bad debts and it has to do with medical debt.  In an effort to improve credit reporting and relieve pressure from regulators, credit reporting agencies (the 3 companies that hold your credit reports and scores) knew that they had to do something.

Medical debt has been problematic.  Doctors office would automatically report negative ratings without giving the process time to work.  Now, the early reporting won’t have that negative effect.

Now the credit reporting agencies will be required 180 days before reporting medical debt to allow for the insurance companies and doctors to pay.

Also, existing medical debts that ended up in default that were eventually paid will be deleted from credit reports.  That would be a huge boost to a person’s credit score.

These new changes come on the heels of FICO’s announcement last August.  They announced that they would change the credit scoring formula to where negative marks from medical debt will not have as bad of an effect on a credit score.

There were some other changes.  However, I would consider them “fluff.”  Credit bureaus also said people who contest items in their credit reports will receive additional instruction on what to do in the event the dispute didn’t go their way.  They are also going to use credit investigators instead of an automated process to look into disputes. 

Finally, the three credit reporting agencies will get rid of the reporting of debts that didn’t arise from a consumer contract or agreement.  That would include such things as tickets and fines.  

So how can you benefit from this?

As a good rule of thumb, if you have a medical procedure done, double check with every provider and make sure closure is put to all billing and stay organized with billing and who is paying what.   

If you have paid defaulted medical debt that has been paid, go ahead and submit a request to remove it from your credit report based on these announced changes. 

If you have medical debt that you think anything is wrong or in error, dispute it based on these changes.  You have nothing to lose.

If you have ridiculous negative remarks from tickets or library fines, dispute them requesting that they remove them based on these new announced changes.

Finally, how you go about disputing items is now much more consumer friendly once they switch to humans versus an automated process.  Just make sure you present a very detailed case informing them why your item should be corrected or removed.

What They Don’t Tell You in Debt Consolidation Programs

The air waves are filled with commercials promising a program to reduce your interest rates, reduce your debt, and make your debt problem go away all with one low payment.  In the process of writing my book Deceptive Money (link it), I had the opportunity to review many actual proposals and contracts from these companies.  I have found these contracts and proposals to be extremely misleading.  I also found some of the more seedy companies to be presenting fraudulent (my interpretation) contracts.

Here is what they don’t tell you in these proposals:

1)      Your debt problem is not as bad they are telling you

The majority of the time I find that people who are talking to debt consolidation companies don’t have as bad of a problem as they might think. Further, by utilizing the strategies in my book Deceptive Money (link it), they can get out of debt doing it the right way.  The best way to get out of debt is by not taking perceived shortcuts and doing it yourself.

2)      You will hurt your credit score

Once you enroll in these programs, credit card companies close your account.  Once all of those accounts start closing your score will drop.  This negatively effects the credit utilization ratio.  That is best case.  Worst case scenario is the credit card companies add additional negative information to your account as well as decide to take action against you.

3)      You could go from Current to Collections

Often times, they act as if all creditors are happy to participate in the debt management program. However, that is not the case.  A credit card company could just decide close the account and send you to collections.  One minute you are current on your payments and the next minute you have a closed account in collections.

4)      It could take much longer than illustrated in the proposal

Everything they give you in a proposal is based on very positive (unrealistic) estimates.   They will show you out of debt in 5 years.  Well, the reality of it is that credit card companies are completely in control and in charge and have the final say in everything. They can change the rules whenever they want. This wildcard more than likely extends the payment way out into the future.

5)       There could be legal ramifications for taking part in a debt consolidation program

As stated earlier, a credit card company could chose not to participate in the program and take actions against you.  If they consider the account in default, they have one of two avenues of collection.  First, they could use an outside debt collector as stated above.  Second, they could file a lawsuit against you with the objective of being awarded a judgment.  With that judgment, they gain a tremendous amount of power over you in form of collecting that defaulted debt.

The good news is that you can do this yourself and the rewards far outweigh the pain of the process.  It is about learning the process and the rules of the game.  For a complete guide, go to

Banking Incentives You Just Might Like just released a report on some sweet incentives offered up by banks for new accounts.  Obviously, it is important to read all of the fine print and make sure that you are comfortable with it.  Never take the incentive at face value.  Also, make sure that you aren’t paying higher fees later that ends up compensating for the incentives.  If you are shopping for a bank, they are worth checking out.


The 12 Best Checking Account Promotions Today

    • Bank of America: $200
    • Bank of America2: $300
    • BankDirect: American Airlines AAdvantage Miles
    • BankUnited: $120
    • BBVA Compass Bank: $150
    • Chase Bank: $150
    • Discover Bank: $50
    • Langley Federal Credit Union: $50
    • Nationwide Bank: $200
    • PNC Bank: $300
    • Santander Bank: $240
  • SunTrust Bank: $200


Additional insights:

    • Cash: The top cash checking promotions varied in value from $50 to $300.
    • Recurring Bonus: Not all cash-back promos are one-time deals; Santander Bank pays new extra 20 account holders up to $20 a month for meeting certain requirements.
    • Miles: BankDirect is the first online bank to offer customers the chance to earn American Airlines miles through banking products, including checking, money market and CD accounts.
  • How to Apply: Qualifying criteria varied, with most banks on this list enforcing either direct deposit requirements or daily balance minimums.

For more information go check out

Increased Credit Card Debit? Spending or Survival? released its 2014 credit card debt study this week and some interesting clues came out as a result. The numbers would suggest that the consumer is back to survival mode again.  The study revealed that consumers ended the year with a record $57.1 billion net increase in credit card debt.  That amounts to 47% more than 2013 and 55% more than 2012.

With an increase that large, there are likely 1 of 2 thing happening. First, the consumer is spending money like crazy and racking up debt.  Second, the consumer is using credit cards as a means of survival. 

The reality is that consumer spending and retail numbers don’t support this type of a rise in consumer debt.  This all points to the consumer being back in survival mode again. 

Credit has really loosened up over the past 2 years. With Crowdfunding avenues such as prosper and the egg, there are even more ways to get credit.  The problem is that high interest rates are attached to that credit.  It was apparent that the consumer had learned a lesson about high interest rate purchasing on credit cards.  The financial crisis was a painful reminder and a good teacher.  At this point, financial survival is the only reason that the consumer would take out high interest rate credit.  It is about using credit to pay expenses.  

There was one other interesting statistic that came out of the survey at  Typically the consumer pays down a great deal of debt in the first quarter because of tax refunds and bonuses.  For the first time in the past six years (dating back to the financial crisis) the consumer wiped out almost the entirety of their standard first quarter pay down.  During the first quarter of this year, consumer paid down $32.5 billion worth of debt and then turned around and incurred $28.5 billion dollars of debt during the second quarter. 

Economists and the government can talk of the increasing confidence and health of the consumer.  The underlying trends might be telling a different story.  

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