Interest in personal information has increased in recent years, raising privacy concerns. Our personal information and everything from our shopping patterns to our medical history, can be made available to creditors, employers, landlords, insurance companies, law enforcement agencies, and, of course, criminals. All they need to do is tap into the public and private databases that gather, buy, and sell our information.

Ultimately, whether the data is accurate or not, data profiling can lead to higher costs for credit and insurance, prevent us from renting an apartment or opening a checking account, or the denial of a job.

If we have decided that a payday loan is the best option to manage a shortfall of cash or to get through a tough time, do we really need to be tracked on a database as if we had engaged in criminal activity? After all, it’s not as if we’re entering into a 30 year mortgage or been provide with have had a $5,000 credit limit.

Our current economy is challenging enough without consumers having to compromise our privacy in order to preserve our credit options.

Last week, the Consumer Financial Protection Bureau (CFPB)  held its first hearing on payday loans in Birmingham, Alabama as it begins to consider how best to regulate payday lenders.

In a packed auditorium, consumer advocates, bank representatives, payday lenders, and consumers all spoke up to give Director  Richard Cordray their opinion.

I am happy to report that our Alabama consumers stood up and were heard!  Hardworking Alabamians described payday loans as a lifeline that has helped them when they needed it most.

Media reports featured stories from consumers who have relied on these loans. Consumers like LaDonna Banks, who had taken out a payday loan in advance of a disability check she was receiving when she had to take time off of work to recuperate from donating a kidney to her brother.

It’s so easy to write-off something as bad when you don’t understand it or have never needed it, but reading stories like Ms. Banks’ really brings home the need for short-term credit. Sometimes we get stuck and we have nowhere else to turn. Sometimes a bank or a family friend isn’t an option.

Thank you to all of you who have shared your stories with us and with the CFPB.  They really are making a difference.

If you haven’t yet done so, please submit your story to the CFPB. They continue to ask for stories so that they can make reasonable regulations.  These regulations will determine whether or not you will still have access to a variety of credit options, like payday or installment loans.

We will continue to work on your behalf to develop an effective two-way communication with the CFPB. We support their mission to improve transparency of all consumer lending products; create a level playing field between banks and non-bank lenders; and ensure that all financial products and services are fair.

Now is the time to speak up! Submit your story today!

As we adjust to life during an economic downturn, many of us are worried about how to afford the holidays this year. And we are not alone. According to Consumer Reports, last year at this time, about 13.6 million Americans were still paying off their credit-card bills from the previous year’s holiday season.

As gifts are given and received, we‘re reminded that there can be no greater gift than the gift of our time. Perhaps consider volunteering time to charitable organizations, since more and more people are relying on charity, especially during these economic times. Volunteering at a food bank, shelter or other charitable centers will not only help organizations facing an increased demand; but may help you appreciate the things you have.

Spending time with family, friends and neighbors and sharing cookies and other goodies, or perhaps a homemade wreath can be memorable and fun, without breaking the bank. And don’t forget your local library has holiday-related books music and movies.

Often, too much emphasis is placed on buying and opening presents. Let’s shift the focus to what is being celebrated during this holiday season.

At this joyous time of year, we are grateful to work with you. Wherever you are and however you celebrate in the coming weeks, we wish you abundance, happiness, and peace in a new year filled with hope. Happy holidays!

 With the celebration of Hispanic Heritage Month, I was invited to participate on a panel for the Congressional Hispanic Caucus Institute Policy Summit.  Along with other speakers from the real estate, education, and finance industry, I discussed the issue of “Housing, Wealth-building, and Financial Services.” The panel moderator was California Congresswoman Loretta Sanchez, who is very passionate about consumer access to credit the ability of all Americans to live the “American Dream”. In the audience were leaders and folks from all walks of life, including students. Our message of the need for greater access to credit was well received.

 I was also honored to have the opportunity to testify before the Congressional Committee on Financial Services. I found the members of the Committee to be very thoughtful and informed when it came to what consumers, including CRC members, face when choosing among financial services and products.

 I came away from the hearing hopeful that the Committee members in attendance will work with us to develop greater and more transparent credit options, so that we can select the credit options that work best for our households.

With every speaking opportunity, I am more committed than ever to telling our stories. I believe our message about the importance of increased access to a broad range of credit sources is just starting to be heard. Your voices and participation in our organization has made all the difference and are critical to the Consumer Rights Coalition success.

 So if I haven’t said it lately, Thank You!!

This is bad for consumers, right?

Well, as a pure pocketbook issue, it is.   But, I do credit the transparency of these new bank fees.  Bank customers are clearly informed about the fee well in advance of its taking effect.  And if you don’t want to pay it, you can take your business to another bank or credit union because there are plenty of other options out there.  Ultimately, we have the last word as the consumer.

When any product or service is transparent, consumers win, companies innovate, and new and better products emerge. CRC wants banks and non-banks alike to compete for business by providing clear fees and terms for financial products and by developing a variety of services that meet the needs of all Americans.

As I have mentioned before, we need to speak up and make sure we are heard on important pocketbook issues like this.  Bank of America has said this fee is a result of Congress and regulators forcing them to reduce the fees they charge retailers for accepting debit cards.  In turn, banks are now charging consumers to make up for the loss of income.  Sometimes well-meaning regulations end up hurting those consumers who are supposed to be helped.

CRC will do all we can to keep you informed of legislation or regulations that will have an impact on you.  We will work to make sure that all products—debit cards, payday loans, credit cards, check cashing, title loans, as well as new products – meet the standards of transparency and clarity.  You, as an American consumer, deserve nothing less.

I was very anxious to effectively represent your interest in protecting and expanding your access to cash when you need it most. I was also hopeful that your signatures and stories could influence this new Bureau from its outset, before any new regulations were even considered. 

The CFPB is the new federal agency that has the authority to make new rules and regulations that will impact all types of short-term credit products, like payday loans, pawn loans and pre-paid debit cards.

We met with several representatives from the Bureau responsible for non-bank credit products. They first provided us with an overview of their major actions so far, which has mainly focused on mortgages and credit cards.

I then presented them with a very large binder of petition signatures representing more than 170,000 consumers asking them to protect and expand their access to credit.

I spoke at length about our organization and the importance of access to credit options, as well as the transparency and simplicity of all credit products. I shared many of the stories that you have shared with me and explained how our members could be an important resource for the Bureau as they consider regulations that will impact the credit products you use.

The Bureau representatives appeared very interested in the petition and your personal stories. Your experiences brought a real-life perspective to the challenge of accessing credit for working Americans—a perspective too often ignored in this debate.

The petition and this meeting are only the beginning. Moving forward we will ask you—the hard-working consumers who could benefit or suffer from their regulations—to speak directly to the Bureau.  Their website says that you can “help inform how we work to protect consumers and create a fairer marketplace.”

 Stay tuned for more information…

While this may seem obvious to most of us, not many studies have focused on the risk of restricting credit options. In this study, researchers compared the common alternatives to a short-term payday loan, including: paying a bill late, making an over-the-limit credit card pur­chase and bouncing a check. They found that the costs and consequences of each of these alternatives were much higher than a payday loan.

Evidence also showed that consumers in counties without access to payday lending had lower credit scores than consumers in counties with access.

The bottom line?  The more financial options available to us, the better able we are to manage our finances and achieve stability.

 Read the full study here:  www.kansascityfed.org/publicat/econrev/pdf/11q1Edmiston.pdf

It’s happening now!

As more and more of us struggle to meet our financial obligations, we have fewer and fewer credit options. And now, our few remaining options are under attack by well-intended, yet misinformed, law makers.

It’s not realistic to expect the banks to step up and expand their services to the “under banked” (those who many not fully participate in the “mainstream” financial system). 

A 2009 FDIC survey told us that less than 18 percent of banks identify expanding services to under banked individuals as a priority in their business strategy because of “profitability issues.”

Less than six percent of banks provide an advance on funds due to arrive by direct deposit or check, and when they do, it comes with a large fee and a negative impact on our credit score.

As I read the stories you’ve submitted online, I truly relate, as they are much like mine.

And I have to ask, without credit options how are we ever going to survive?

The need for us to speak out for access to credit has never been greater!  Don’t let the new Consumer Financial Protection Bureau take away our remaining credit options.

Join more than 90,000 Americans and tell Consumer Financial Protection Bureau that you deserve access to short-term credit: Sign our Petition Now!

Whether you’re the type that makes New Year resolutions or merely take the time to reflect on how you can make 2011 better than the previous year, now is our time to act.

Never before has it been more important to let our voice be heard.

 The sweeping financial regulatory reforms that passed last summer called for a Bureau of Consumer Financial Protection with the authority to regulate non-bank financial products, such as payday loans. Some short-term credit options, like payday loans and check cashing, will likely be banned or limited by this new bureau, forcing us into other more costly loan options.

As this new Bureau develops regulations that determine the financial services available to us, it will be important that we speak out about why we deserve access to realistic, reliable and regulated short-term credit. If we all speak up together, they are likely to listen.

 Why not get started today doing what we can to make 2011 better?  It takes less than one minute to sign the petition to protect your right to make personal financial decisions.

CLICK HERE TO SIGN THE PETITION.

And if you’re not already a  Consumer Rights Coalition member, please join more than 120,000 consumers of short-term financial services from across the nation who have joined together to speak up for themselves, in order to protect, improve and expand their access to realistic and reliable credit options.

In the meantime, I want to share with you some important information about how you can improve your credit/FICO scores. The exact formula of the FICO and other scoring models is a trade secret. However, my research has helped me identify five factors and the importance given to each factor. Other scoring models include most of the same factors. However, the weight given to individual factors may vary.

It’s clear that the single most important factor is your record of paying bills on time, but it is important to know that payment history and the amount owed also carry a lot of weight. Also length of credit history, new credit and types of credit used are taken into consideration.

The number of delinquent accounts and the length of time the account went unpaid are very important. Your payment history may also include financial problems that have ended up in court such as bankruptcy or judgments entered against you.

Tips for Improving Your Score

• Monitor your credit report and dispute errors that can translate into a low score.
• Pay your bills on time even if you only pay the minimum amount due.
• Low balances are a positive factor in scoring models. Don’t use all your available credit.
• New credit applications can detract from your score. Even an application for a department store card can lower your score. Multiple applications can have a devastating effect on your score, especially around the time you are shopping for  a car loan or mortgage.
• Old accounts (even those you haven’t used for a long time) can help your score. Scoring models look at not just how to use credit today but also how long you have used credit.
• Consolidating balances or moving debt around may make for one easy payment, but this can have an adverse effect on your score. Shuffling of balances could be especially harmful to your score if you close established accounts and open new accounts to consolidate your debt.

For more information on improving your credit score, visit the Federal Reserve.