Should the SEC be imploded?

Congress established the Securities and Exchange Commission in 1934. The SEC was established as an independent regulatory agency for the purpose of overseeing the stock exchange. The sole purpose of the SEC was to make sure that people on Wall Street conducted business ethically in order to prevent another stock market crash like the one in 1929. The authority to enforce laws was given to the SEC by Congress and allowed them to bring criminal action against companies or individuals that committed fraud. However, the Securities and Exchange Commission has failed to properly oversee Wall Street.

The most recent major oversight that the SEC failed to catch was the Ponzi scheme that the former Chairman of the NASDAQ, Bernard L. Madoff was running. This scheme has supposedly been going on for many years. Some say that fraud conducted by Madoff could even date back to the 1970s. Madoff’s investment fund should have raised red flags immediately. The Madoff fund was reporting a 10% to 12% profit year after year. Madoff’s fund supposedly made money even during the dot com bust that ended the boom years of the 1990s. The SEC conducted 8 investigations in the past and came up with nothing. Investors had suspected that Madoff was running a Ponzi scheme. This information was given the SEC, yet no one acted until it was too late. Madoff was supposedly an advisor the SEC as well. His input was sought after for matters regarding regulatory guidelines being implemented by SEC. The SEC literally let “Madeoff” getaway right under their noses.

The Madoff Ponzi scheme has not been the only major oversight by the Securities and Exchange Commission. How could they let Enron and WorldCom get away with as much as they did? Enron was running a huge scam. The guys at Enron were involved in a number of shenanigans. They were cooking the books, creating shell companies and caused the state of California to experience rolling blackouts only for the purpose of profit. At one time, Enron stock was considered to be blue chip. The CEO Jeff Skilling was a best friend of President George Bush. Where was the SEC while these guys were falsely inflating stock prices? Thousands of people saw the value of their stock plunge from $90 a share too less then $.50. Investors and employees lost millions of dollars due this scam.

It is my opinion, and probably of many others as well, that the Securities and Exchange Commission has been wasting taxpayer dollars for years. These guys are supposed to be the Texas Rangers of the stock market. Unfortunately, they have acted more like the Keystone Cops. Agents that work for the SEC more often than not, go off too work for Wall Street investment firms when their tenure is up with the government. It seems to me that no one in the SEC wants to rattle any feathers at Wall Street. Any zealous agent will end up being blackballed on Wall Street the way things are now. Madoff’s niece even married a former SEC attorney. There is an incestuous relationship between the SEC and Wall Street. They are more concerned with Mark Cuban’s alleged insider trading. They even failed to foresee the financial meltdown that was caused by the mortgage industry. I seriously hope that the Obama Administration dismantles the SEC immediately. Perhaps, the Federal Reserve is more suited to oversee Wall Street. I am not a financial analyst or economist, but I can see when a government entity has completely failed its purpose. Lastly, I am hopeful and confident that we will rise from this financial crisis and emerge a much stronger nation.

Labels: Bernad Madoff, financial crisis, Madeoff, Securities and Exchange Commission

Watch Out for Credit Card Billing Mistakes


In today’s society there are literally thousands of credit card transactions being processed every day. Billing mistakes will commonly happen. If you do not watch your credit/debit card statements closely, chances are you will get the occasional double charge. I recently had an experience at a Valero convenience store where I live in Texas. They ran my debit card, which had been chewed up by my dog, through the machine to make a $20 purchase. Immediately the clerk responded that it did not go through. I asked here to run it again and she came back to say again that it had not gone through. A few days later, I logged onto my online account to check my account balance, and sure enough, the charge was there. The transaction that the clerk had repeatedly denied that it went through was charged on my account. I went back to the same store, and made a comment to the clerk. She claimed that it was impossible, and that I was wrong. She then gave me phone number for me to call to report the problem. I did not argue with the clerk, as I figured there was really nothing that she could do about it. This is just one example of double billing.

Macy’s, a well-established retailer, recently experienced problems with their credit card software that caused them to double bill its customers. This took place during a two hour period right before Christmas 2008 shopping. Fortunately, the retailer was able to spot the error and make corrections on customer’s accounts. However, if it were not for Macy’s discovering their error, many people would have been double charged on their credit cards. Many people would have caught the error and reported the problem, however, just as many would not have seen the problem.

Have you ever given a credit card to a waiter for him or her to charge your meal at a restaurant? I am sure 99% of you who are reading this article will respond yes to that answer. Employees can very easily make a mistake when swiping a credit card. The truth is you have not seen this person actually handle your credit card. A rookie might accidentally run your card more than once thinking that he or she was unsuccessful the first time. However, this individual might not realize that they have already charged your card. A second or third swipe might very well cause that person to unknowingly bill your credit card. Those of you who check your statements on a regular basis will probably spot the double billing. However, those who do not check their credit card bills thoroughly might not see the error. This ends up being a windfall for the restaurant and big loss for you.

The moral of the story here is to check your credit card statements every month. Chances are, at some point in time you will discover a billing discrepancy. Pay-pal, an online payment processing company offers an excellent feature for subscribers of their credit and debit cards. They will send you an email every time that your credit card is used. This would be a great feature that other card issuers should offer their customers.

Once you have detected a billing error or even fraud on your credit or debit card you need to contact customer service. The advantage to having a credit or debit card is that they will immediately give you credit. In my case, I had to fill out a form at the bank that issued me the debit card. They will then go argue the problem with Valero. In the meantime, I have been given credit. Should Valero prove me wrong, the bank will refund them the original charge. I seriously doubt that Valero will be able to contest this. In 2009 I plan to be look over my statements much more thoroughly, especially since I am one of those who does not normally look at billing statements.

Labels: credit card, credit card billing issues, credit cards

What is Credit Card Receivables Factoring?

Factoring is the process by which a business sells its accounts receivables at a discount. Many businesses factor their invoices in order to improve cash flow. Factoring is very different from a bank loan in that the creditworthiness of the receivables supercedes the value of the company. In other words, it is much easier to factor invoices from a company like Wal-Mart, then a small mom and pop company. Credit card factoring is very different. Factoring credit card receivables is like taking a cash advance based on your future sales. Credit card receivable factoring is much like a business cash advance loan. Credit card factoring can help a company in many ways. Furthermore, approval is a matter of meeting simple criteria that many businesses can achieve.

There are many circumstances that require many small business owners to start looking for some sort of loan. Businesses need money to operate on a day to day basis. Payrolls need to be met as well as rent and utilities. There are times that money is not instantly available to meet these needs. Bank loans are not always practical for some business owners. Cash flows are up and down and banks expect a payment no matter what. Credit cards are another good way to obtain a fast loan, but again, credit cards also require regular payments. Credit card factoring is different in that the factor collects funds when they are available. Therefore, if your sales go down, the factor will collect an amount based on a lower sales volume. This makes it easier to operate in economic environments, such as the one we are currently experiencing in 2008. The factor will collect more money when sales volumes go up. This is very fair arrangement for both the borrower and the lender.

It is not very difficult to qualify for credit card receivable factoring. Your approval is based on your credit card processing volumes. Most credit card receivables factoring companies require that your business process a minimum of $2500 per month in Visa and/or Mastercard approvals. Most businesses such as small retailers, restaurants, bars and pub and many Internet based business process at least $2500 per month in credit card transactions. 90% to 95% of small business owners will qualify for approval. Bad credit history is not a problem either. Funds are transferred from one day to the next. Electronic banking makes it very efficient and easy for credit card receivables factors to send money to their customers. Furthermore, there are no restrictions placed on what you can do with your cash advance from the credit card receivable factor. Therefore, if you want to use your funds for something other than a business expense, you are more than welcome. This could be a good way to finance your next vacation or even a new wardrobe.

There are many ways these days for small businesses to access funding for whatever use deemed necessary. Small business owners can apply for a loan at a traditional bank or even apply for a business credit card. However, these more traditional types of loan require regular scheduled payments based on the agreement you made with the lender. Credit card receivable factoring allows any small business the ability to obtain a loan based on future credit card sales. If your small business has maintained at least $2500 a month in credit card charges, than you more than likely qualify. Some credit card receivable factoring companies will even qualify you if you have been business for 3 months. Furthermore, repayment is made as credit card receivables are accrued. Should business not be as robust for any reason, your payments will reflect the business downturn. Once business is back to normal, your loan repayment amount will increase. The same goes when business is going gangbusters. Credit card factoring companies offer any small business an alternative means of seeking financing.

Labels: Business Credit Card, credit card factoring, credit card receivables factoring, credit card receivables factoring companies, credit card receivables factoring company

How to Negotiate Credit Card Companies

1. Save credit card offers sent in the mail.

How many times have you gone to the mailbox and found credit card offers from every issuer you can think of? You can use these offers to your advantage when negotiating interest rates with your credit card company. If another company should offer you a better offer in the mail, show this offer to your current card issuer. This is proof that you are a good customer. Furthermore, this shows that other credit card companies also desire your business. Be sure to have the ability to prove to your current card issuer that other companies are really after your business. This can be easily done with a scanner and/or fax machine. Make copies of the card offer so that you can easily fax proof of the other offers.

2. Always read the fine print.

Be sure you are aware of both major and minor details that are written in fine print. Credit card companies are famous for making enticing offers without giving all the true details. Many times card issuers offering a 0% interest rate are only doing it for a specified amount. This is known as an introductory offer that will usually not last for more than 6 months to a year. Furthermore, the more knowledgeable you are, the better prepared you will be to negotiate.

3. Always try to speak to a supervisor when calling customer service.

Many credit card companies have dedicated call centers that handle the hoards of questions and issues that customers have on a day to day basis. These jobs are usually low paying and have a high turn over. Many times, you will speak with an individual who does not know 100% how to handle customer’s issues. This person, out of ignorance, may tell you that something what you are requesting is not possible. However, we all know that in negotiating anything is possible. A supervisor is more than likely much more knowledgeable and has had experience dealing with different types of issues. Most company policies will require a supervisor to come to the phone when requested. Simply ask the customer service rep to speak with a supervisor. Sometimes they might be able to help you, however, more often then not you will get better results when speaking with a supervisor.

4. Be ready to sell yourself.

Once you have the supervisor on the line, you need to convince that person why you are valued customer. If you are seeking a better interest rate, explain to the supervisor that other credit card companies are offering you a better rate. Also, if you have always made payments on time, be sure to remind them. Furthermore, if you pay your balance every month, be sure to remind them as well. As I mentioned in step 1, be sure and have proof ready to send the supervisor. The more informed you are the better chance you will have of a successful negotiation.

5. Call another card issuer if the one you are talking to you does not make the offer you are looking for.

Always remember that there are other fish in the sea. If one company does not want to negotiate with you then simply hang up and call someone else. If one door closes, another one will open. Talk to multiple companies. Another card issuer might find your requests reasonable and be willing to work with you.


6. Lastly, be ready to transfer your balance to a new card if needed.

Card issuers prefer for you to have a balance with them, then no balance. Cardholders who maintain very low balances do not get charged a lot of interest. This goes against a card issuer’s business model. They make money of off interest charged to you that is based on your balance.

There are many ways to negotiate with any company, including credit card issuers as well. Knowledge is the key to a successful negotiation with anyone. The more informed you are with information, the more ammunition you will have when pleading your case. In addition, always, try to speak with someone that what is going on, such as a supervisor. A rookie customer service rep might not know all the rules that apply to his or her company yet. Lastly, be willing to transfer your balance from one card to another in order to secure a better deal.

Labels: credit card, credit card issuers, credit cards, how to negotiate with credit card companies

I would like to take this opportunity to wish everyone a happy and prosperous 2009. Last year was a very tough year for many Americans, including myself. I wish our new Presidential Administration all of the luck that it needs to get our economy back to where it was. I am confident that Barrack Obama and his new administration will be able to get us back on track. I would also like to say thanks to everyone who has made this website possible. I hope that our readers find the information on this blog useful. Lastly, I would again like to wish everyone peace, health and prosperity in 2009.

Labels: New Years Best Wishes

Stolen Statue with Note Returned to Madoff

A $10,000 bronze statue of two lifeguards was stolen from Bernard Madoff‘s, a.k.a. Bernie Madeoff’s, $10 million Palm Beach mansion. The theft was reported by the housekeeper. The police were called and a report was made, however, no possible suspects. Ironically, some days later, the statue was returned undamaged with a note attached that said: “Bernie the Swindler, Lesson: Return stolen property to rightful owners, Signed by the Educators”. In addition, the statue was left just a few blocks from where it had been stolen. Who would go through all the trouble of steeling the statue and returning it back to its criminal owner? Bernie Madeoff, naturally, must have thousands of enemies. Who are the educators and what are the chances of this man return what he stole?

There is a German movie called “The Edukators”, that is about three anti-capitalists activist living in Berlin. Two of the anti-capitalists would break into homes of wealthy people, move their furniture around, and leave strange notes. These notes would read: “the days of plenty are over” or “you have too much money”. The individual or individuals involved with this heist are obviously trying to send “Madeoff” a message. In order to somewhat atone himself, Madeoff needs to return everything that he has stolen. I believe that victims have sent Madeoff a strong message before the deadline when he is supposed to list all of his assets.

The next dilemma that we need to ponder is weather or not Madoff will honestly disclose his assets. It is now common knowledge that he has a $5 million Manhattan apartment, a yacht or two, a $10 million home in Palm Beach, a $10,000 statue and a list of other things that he will probably never disclose. Madoff is a shrewd thief that covered his tracks. He must have many overseas accounts and assets held in hidden bank accounts. He also supposedly gave several hundred million dollars to family members and friends prior to having turned himself into the SEC. It would not surprise me that he has also made deals with other people to hide money for him. Everyone agrees that $50 billion does not just evaporate into thin air. Madeoff must have millions or billions of dollars hidden all over the world. It will be interesting to find out how much he discloses.

Madoff has caused incredible grief for thousands of unsuspecting victims. He was the epitome of the “smooth operator”. He was able to scam supposed sophisticated investors and even economists. This man’s life has revolved around scamming people for many years. He even went undetected by the supposed Wall Street police otherwise known as the Securities and Exchange Commission. I strongly believe that “Madeoff” will not tell the truth in regards to all his assets. This man has more than likely made deals with other people or foreign bankers to hide his assets off shore. Madoff has lived the highlife for the last thirty years of his life. A jail cell will be a fry cry from his Manhattan $5 million apartment. “Madeoff” deserves to spend the rest of his life in jail. How long he goes will be determined by our judicial system. It will take years to unravel the financial turmoil that this individual has created. Only time will tell if “Madeoff” discloses all his money. In all, “Madeoff” will be known for ever more known as “the grinch” who stole a lot more than just Christmas.

Labels: Bernad Madeoff, Bernad Madoff, Bernard L. Madeoff, Bernard L. Madoff, Bernie Madoff

How to avoid major pitfalls with your business credit card

All type of business credit cards are widely accepted worldwide. It is easier to borrow money using a credit card than it is to go borrow from a bank. Cardholders all of a sudden are given large amounts of credit that not every individual can handle. The number one rule to follow is: don’t mix business purchases with personal purchases. Also, be sure to pay your bill on time every month. According to American Express Gold, they collect $2.9 billion dollars a year in late fines. Late fines cost money and they can increase your interest rates as well.

A very important, and often overlooked rule is to “know your own money limits”. Try to purchase things cash instead of using your credit card. If you do use your credit card, be sure to pay it off at the end of the month. Don’t get caught up in huge debt that you know you will not be able to afford. Do not risk your credit and get caught up a viscous “interest paying “ cycle.

Also never forget to be careful with introductory offers. Many card companies offer interest free periods just to bait you. Once that period is over, rates can exceed 17%. Cash advances are also sometimes very expensive. Before you take out cash from the ATM using your American Express Starwood Preferred Card check to see how much the interest rate for cash advances is going to be. Cash advance interest rates can be more expensive than rates charged for regular purchases.

Remember, try to make the most of your credit card. If you can obtain a low interest rewards card that promises cash back at the gasoline station, why not use it. Small businesses can save a lot of money buy using their rewards correctly. A small construction company can charge materials at the local hardware store and reap the reward benefits at the same time.

Lastly, always use your business credit cards responsibly. Don’t fall into the traps that many people often do. Use your best judgement when deciding whether or not to charge your next purchase on your card. If the items that you are purchasing are not necessities, than pay them with cash or go without. It is very easy to forget that every time you swipe that card, you will actually be incurring debt. Once that debt gets beyond control it becomes a beast to maintain. If you use your card wisely than you are in control, as opposed to the card issuer being in control.

Labels: Amex Starwood Preferred Credit Card, Business Credit Card, business credit cards