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Last month, I received the news that Aurora Bank deposits would be assumed by New York Community Bank. Aurora Bank is yet another online bank that increased its marketing efforts leading up to a sale. For a while, Aurora Bank was a branch of Lehman Brothers, and part of that company’s bankruptcy proceedings required the bank we sold by May 2012.

With that date now here, and with New York Community Bank as the designated buyer, the acquiring bank has sent all Aurora Bank customers more information on how their accounts will be converted.

Central Park New YorkThis is bad news for Aurora Bank customers, who as a group have done well to avoid fees. Aurora Bank’s online money market account has not been completely free; if a customer’s balance were to drop below the minimum balance of $1,000 or if a customer were to leave the account dormant for three years, there would be $5 fees to contend with. These fees are easy to avoid, but New York Community Bank is raising the barriers.

Beginning June 4, 2012, as long as the bank receives regulatory approval for the acquisition (which is very likely), Aurora Bank online money market accounts will become New York Community Bank’s “My Community Gold Money Market Checking” accounts. Among the features are the following:

  • Minimum initial deposit amount: $2,500
  • Minimum balance to earn interest: $2,500 (up from $1,000 at Aurora)
  • Minimum balance to avoid monthly service charge: $2,500 (up from $1,000 at Aurora)
  • Monthly maintenance charge: $15 per cycle if balance is below $2,500 any day during the month (not an average daily balance, not a monthly ending balance)
  • Tiered interest rates ranging from 0.05% to 0.30% APY

The schedule of fees beyond the above, including the other types of accounts at New York Community Bank, is extensive. This bank may have community in its name, but its policies seem more like a large regional or national bank. The “welcome package” I received from New York Community Bank also included the funds availability policy, explaining how some funds you deposit in the form of checks might not be available until the ninth business day after the deposit. The consumer agreement and disclosure statement is 52 pages. The privacy policy is included in a short pamphlet.

I don’t really need an excuse to close one more of my dozens of online savings and money market accounts, but within five minutes of receiving and reading the letter I received with this information, I scheduled a transfer for my entire balance (just north of $1,000, Aurora’s minimum, plus earned interest) from Aurora to my linked checking account.

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Consumer Privacy Bill of Rights

This article was written by in Consumer. 9 comments.

Last week, the White House released a Consumer Privacy Bill of Rights. This isn’t a law or regulation, but a set of guidelines that could possibly underscore future actions by Congress and enforcement by the Federal Trade Commission. Private, personal information should be private and personal, but when consumers enroll for any type of service, the terms of use of those services often require signing away the rights to this information.

If, for example, you’d like to use Facebook to share photographs with your friends and see what they’ve been doing lately, you must agree to the service’s policies which include the service’s ability to keep your personal data on file and use it to deliver targeted ads and to track the other, non-Facebook websites you visit.

FacebookThe Consumer Privacy Bill of Rights aims to give consumers more control of their personal information. Some of the guidelines are common sense, and many companies already follow these guidelines or come close. Codifying these principles is a positive step towards making consumers aware of expectations for the companies they interact with every day, like social media websites, banks and other financial institutions, and retailers.

Here are the main points:

Consumers have a right to exercise control over what personal data companies collect from them and how they use it.

  • Companies should give consumers choices about how companies collect, use, and share personal data.
  • The ability to make these choices should be easy to use and easily accessible.
  • The ability to change these choices after initially selecting them should be just as easy to use and accessible.

Consumers have a right to easily understandable and accessible information about privacy and security practices.

  • Companies should clearly explain how personal information is collected and used internally and with third-parties.
  • Companies should clearly define the policy for deleting private customer data.

Consumers have a right to expect that companies will collect, use, and disclose personal data in ways that are consistent with the context in which consumers provide the data.

  • Companies should not provide consumers’ personal information to third parties who will use that information for a different than it was intended. For example, if I, as a Facebook user, “like” the band Pink Floyd, I shouldn’t begin receiving emails from Amazon.com advertising Pink Floyd albums.
  • Companies have a right to ask whether any particular customer would consent to this type of information sharing.

Consumers have a right to secure and responsible handling of personal data.

  • From the text of the Privacy Bill of Rights: “Companies should assess the privacy and security risks associated with their personal data practices and maintain reasonable safeguards to control risks such as loss; unauthorized access, use, destruction, or modification; and improper disclosure.”

Consumers have a right to access and correct personal data in usable formats, in a manner that is appropriate to the sensitivity of the data and the risk of adverse consequences to consumers if the data is inaccurate.

  • Companies should ensure the data they collect is accurate and current.
  • Consumers should be able to review and correct stored information.
  • Consumers should be able to request stored information be deleted.

Consumers have a right to reasonable limits on the personal data that companies collect and retain.

  • Companies shouldn’t collect more information than necessary.
  • Companies should securely dispose of information when no longer needed.

Consumers have a right to have personal data handled by companies with appropriate measures in place to assure they adhere to the Consumer Privacy Bill of Rights.

  • Consumers should expect companies to follow these guidelines.
  • Both companies and consumers should expect the employees of companies collecting users’ personal information to follow these guidelines.

Time, CNN

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I wrote about three credit card benefits you’re paying for but not using for GoBankingRates and BusinessInsider. Whether you pay interest on your carried credit card balances or whether you’re just subject to the natural increased cost of products due to retailers’ card processing fees, you’re paying for the cost of benefits that card issuers provide to their users. It’s not just cash back — benefits include extended warranties, purchase protection, and price protection. If you’ve never used these “free” features, you’re not taking full advantage of what you’re paying for.

  • Extended warranties, if your card offers this feature, can extend the manufacturer’s warranty, usually up to one extra year. While retailers often try to sell you extended warranties on products at the point of sale, the option from your credit card issuer is often “free” and automatic.
  • If your card offers purchase protection, you don’t have to worry about accidental damage for a period of time after the purchase. Even if you drop the item, the credit card might be able to replace it.
  • Purchase price protection will help you receive from the issuer a refund if a product you buy is advertised in print at a lower cost than the price you paid.

There are some caveats to the coverage, and not every card offers the same features. Read the article for more information.

Here are a few recent articles worth mentioning. Read the full article →

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Today on the Consumerism Commentary Podcast, Bryan J Busch talks to John Taylor, president and CEO of the National Community Reinvestment Coalition.

They talk about the benefits and drawbacks of Capital One merging with ING Direct USA, and how the Federal Reserve Bank is treating this merger.

Consumerism Commentary Podcast
CapitalOne Merger With ING Direct: S06E19 / 148

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Table of contents

Consumerism Commentary Podcast[00:00] Introduction from Bryan J Busch
[00:33] Interview with John Taylor
[00:46] The merger between CapitalOne and ING Direct is not a done deal
[01:50] Ongoing criticism of the merger
[03:40] CapitalOne’s risk increases with its size
[06:56] What could change for ING Direct customers?
[09:41] How the Dodd-Frank bill affected this merger
[11:35] The free market needs to be paired with fairness
[13:12] Privacy may play too big a role in such mergers
[15:17] What can ING Direct employees expect to see change?
[16:14] The Fed should require more transparency
[18:00] Capital One made a $180B pledge that may be ignored
[18:49] The Federal Reserve Bank has taken small steps toward serving the public
[20:49] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

Theme music by Mindcube.

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CoreLogic Credit Report and Score: Always Watching You

by Flexo

CoreLogic, a company that already works with lenders to consolidate credit reports from the three reporting bureaus, is developing a new credit report and score. The company believes its information, culled from public sources and proprietary databases, could give lenders, employers, and any other company that wants to evaluate an individual’s risk, a more accurate ... Continue reading this article…

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Google Wallet Not Ready for Prime Time

by Flexo

Simplification is usually a good choice for finances whenever it is available, and the bulky wallet is due for a technological upgrade, simplifying back pockets of men’s jeans everywhere. I’ve received the occasional comment about my “George Costanza” wallet; as I collect receipts from my day-to-day transactions, the leather becomes increasingly distended. Google’s first in ... Continue reading this article…

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Podcast 108: Extreme Couponing

by Flexo

On today’s Consumerism Commentary Podcast, Donna Freedman returns to the show. Donna Freedman is a columnist for MSN Money and staff writer for Get Rich Slowly. Donna also writes for her own blog, Surviving and Thriving. Today, Bryan, Donna, and Flexo discuss extreme couponing. Consumerism Commentary Podcast #108 Extreme Couponing: S05E04 / 132 Download – ... Continue reading this article…

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Podcast 98: Introducing Adaptu

by Flexo

Today’s guest on the Consumerism Commentary Podcast is Mark Brundage, co-founder of Adaptu. Adaptu is an online financial life planning and management service. Consumerism Commentary Podcast #98 Introducing Adaptu: S04E20 / 122 Adobe Flash required Download – RSS – iTunes Table of contents [00:00] Introduction from Bryan J Busch [00:38] Interview with Mark Brundage – ... Continue reading this article…

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