News Bulletin: COVID-19 Scams, States Extend Unemployment Benefits, What We Know About A Second Round of Stimulus Checks, and More.
Americans Lost Over $77 Million to COVID-19 Scams | CNBC
According to the Federal Trade Commission (FTC), Americans have lost over $77 million to coronavirus-related fraud, but advocacy groups expect that the actual losses are much higher since consumer fraud is historically an under-reported crime. Scammers have taken money from stimulus checks, often under the guise of helping people receive their checks faster. Scammers have also stolen unemployment benefits by pretending to offer individuals help with filing for unemployment. Other COVID-19 related scams include offering fake treatments and cures for COVID-19, as well as fraudulent threats of utility shutoffs. Learn more about how to protect yourself from crisis scammers.
Americans More Secure About Jobs, But Earnings Expectations Drop According To New Survey | Reuters
In a recent survey conducted by the New York Federal Reserve, American consumers report feeling that the worst of the coronavirus economic crisis is behind them and more confident that they won’t lose their existing jobs, but they also report that they are still concerned about their earnings and finding new employment if they become unemployed. According to the Bureau of Labor Statistics (BLS), real hourly wages dropped by 1.7% from May to June.1 The BLS also reported that the unemployment rate dropped by 2.2% to 11.1% in June, while the total jobless rate has risen by 7.6% since February.2
As Congress continues to decide whether to extend the $600 weekly unemployment benefit previously provided under the CARES Act, individual states (other than South Dakota) have extended unemployment benefits available through the Extended Benefits (EB) Program. The EB Program is a federally funded program that extends unemployment benefits by up to 13 weeks for states experiencing high unemployment and up to an additional 7 weeks (up to 20 weeks total) for states experiencing extremely high unemployment.3 To be eligible for EB, an individual must have exhausted other unemployment insurance benefits. Additionally, not everyone that qualified for regular benefits will qualify for EB. If you or someone you know is currently unemployed and looking for options, visit the Department of Labor here for guidance and answers to frequently asked questions about unemployment insurance relief during the COVID-19 pandemic. You can also go here for additional information about how to file for unemployment and what to expect.
What We Know About the Current Proposal for a Second Round of Stimulus Payments | CNET
White House Economic Advisor Larry Kudrow announced that a second round of stimulus payments is reportedly in the works, which is likely to include the same $1200 stimulus payment for eligible individuals as was provided in March under the CARES Act.4 The new Republican proposal, called the Health, Economic, Assistance, Liability Protection, and Schools Act (HEALS Act), offers benefits that include a stimulus payment and federal unemployment benefits up to 70% of worker’s prior earnings, plus an additional $200 a week. While eligibility has not yet been finalized, reports suggest that, similar to the CARES Act, single-income earners who made less than $75,000 would qualify for the full $1,200 payment, while those who earned more would see a decrease of $5 for every additional $100 they earned. Payments would phase out entirely for earners who made more than $99,000 in 2019.5 According to Kudrow, the second round of stimulus payments is targeted towards those without jobs or who have low-incomes.
IRS Offers Additional Retail Partners that Accept Cash Payments for Federal Income Taxes | IRS.gov
The IRS has announced6 that taxpayers can now make cash payments for federal income taxes without a bank account or credit card at ACE Cash Express, participating 7-Eleven stores, and Casey’s General Stores nationwide. This new cash payment option is available for both individual and business taxpayers.
FICO Will Now Score Your Readiness For a Financial Crisis | Washington Post
To minimize the risk of consumers falling behind their credit card payments, lenders have started to reduce credit limits or cancel credit cards with little or no notice. This can be true for customers with excellent credit scores, but those with poor or subprime credit may be disproportionately impacted by the measures taken by lenders. To give lenders more insight on which consumers are most likely to be financially resilient enough to withstand an economic crisis, FICO has launched a new ‘Resilience Index’. The objective of the new index is to provide lenders a manner to better assess which consumers can withstand a financial downturn, thereby allowing lenders to keep extending credit to consumers deemed to be more resilient. The Resilience Index score ranges from 1 to 99, with scores in the 1 to 44 range being viewed as most prepared for economic stress. Learn more.
Student Loan Rate Drops to Historic Lows | USA TODAY
Federal student loan rates for the upcoming 2020-2021 academic year have dropped to the lowest rates in a decade, falling to 2.75% for undergraduate direct loans and 4.3% for graduate direct loans.7 These new rates are predicted to save borrowers billions of dollars over the next decade. Unfortunately, the rate decreases do not apply to private student loans or loans that were taken out before July 1, 2020.
US GDP Drops 9.5% from First Quarter to Second Quarter, Consumer Spending Increasing | Yahoo! Finance
The U.S. GDP, an indicator of the size of a country’s economy and its growth rate, shrank by 9.5% from the first quarter to the second quarter in 2020,8 according to the U.S. Commerce Department, and by nearly 33% on an annualized basis. According to the New York Times, the second quarter contraction is expected to be the worst quarter recorded in the over 70 years that GDP statistics have been collected.9 The drop likely relates to the economic shutdowns across the country as shelter-in-place orders were given and many industries, including tourism, retail, and hospitality, were forced to close. While many states have since reopened, some have shut down again after experiencing a rise in coronavirus cases. Despite the contraction for much of the second quarter, economic activity began to pick up at the end of the quarter. Forbes reports that consumer spending increased in June, especially on homes and autos.10
Global Car Sales Estimated to Drop 22% This Year | GoBankingRates
According to research company IHS Markit, global car sales will decline by about 22% overall in 2020.11 Downturns in car sales and car rentals could have a lasting impact on the automotive industry as supply increases and demand decreases. If you’re considering buying or leasing a new car, you may have more affordable options. According to GoBankingRates, it’s now easier to comparison shop online, make auto deals over the phone, and even secure financing online. GoBankingRates breaks down some of the ways the coronavirus has upended the auto industry here.
ACE Elite with Direct Deposit FeeAdvantage Plan4 (Monthly)
Cost of Fee Plan
N/A
$9.95
$5.00
Signature Purchase Transactions
$1.00 each
included
included
PIN Purchase Transactions1
$2.00 each
included
included
Average Cost Per Month
$15.003
$9.95
$5.00
ATM Cash Withdrawals (Domestic)2
$2.50 each
$2.50 each
$2.50 each
Fees may apply to reload your ACE Elite Prepaid Card
1 To get cash back and avoid paying a higher ATM fee, select "debit" and enter your PIN when making a purchase at a retailer. Purchase transaction fee may apply, depending on which fee plan you selected. This option may not be available at all retail locations where the card is accepted.
2 ATM owner fees may also apply.
3 Calculation based on 5 PIN Purchase Transactions and 5 Signature Purchase Transactions.
4 To be eligible for this optional fee plan, have $500 deposited to the ACE Elite Prepaid Card during one calendar month. See Cardholder Agreement for details.
Goodbye to Hidden Fees
Fees Related to the Service:
Refunds are at par. None of the fees shown are assessed by MetaBank or the Card Association. ATM withdrawals may be subject to varying daily limits at the ATM owner's discretion.
ACE Elite™ Pay-As-You-Go Plan
ACE Elite™ FeeAdvantage™ Plan (Monthly)
ACE Elite™ with Direct Deposit FeeAdvantage™ Plan (Monthly)
Card Purchase Fee
$0
$0
$0
Plan Fee
N/A
$9.95
$5.00*
*To be eligible for this optional fee plan, have $500 deposited during one calendar month.
Signature Purchase Transaction Fee
$1.00 each
included
included
PIN Purchase Transaction Fee
$2.00 each
included
included
Balance Inquiry Fee:
via toll-free number (automated service)
via toll-free number (customer service agent)
at ATM
online
via Anytime Alerts™**
$0.50 each
$0.50 each
$0.50 each
Free
Free
$0.50 each
$0.50 each
$0.50 each
Free
Free
$0.50 each
$0.50 each
$0.50 each
Free
Free
Bill Payment Fee
In addition to the one or more no-cost bill payment methods made available through third-party service providers, a full range of options and applicable fees appear at the Site.
Stop Payment Fee for Preauthorized Payment
$10.00 each
Domestic ATM Cash Withdrawal
$2.50 per withdrawal, plus ATM owner fees, if any
International ATM Cash Withdrawal
$4.95 per withdrawal, plus ATM owner fees, if any
ATM Transaction Decline Fee
$1.00 each
Tip: To avoid the ATM fees, you can get cash back when making purchases using your PIN at many retailers, such as grocery stores.
** Standard data usage or text message rates may apply. Check with your provider.
Add Money To or Withdraw/Transfer Money From Your Account: (Applies to all Cardholders)
Direct Deposit
Free
Add cash, checks or withdraw cash at a NetSpend Reload Network location
Convenience fee determined by location
Bank Transfer
Free; transfer fees from the originating bank may apply
Instant Bank Transfer
$5.95 each (deducted from the transferor's debit card account
Account-to-Account Transfer via text message or online
Free; standard text message rates may apply
Account-to-Account Transfer via toll-free number (automated service)
$1.00 each
Account-to-Account Transfer via toll-free number (Customer Service Agent)
$4.95 each
Manage Your Account: (Applies to all Cardholders)
Check or Additional Statement Mailing Fee
$5.95 each
Additional Card Fee
$3.95 each (standard Card)
$4.95 each (custom Card)
Lost, stolen or damaged Card Replacement Fee
$3.95 each (standard Card)
$4.95 each (custom Card)
Account Maintenance Fee
$5.95 per month (fee applies if Card Account has not had any activity, that is, no purchases; no cash withdrawals; no load transactions; or no balance inquiry fee for 90 days)