In recent days, the Consumer Financial Protection Bureau has both pushed and backed off on a plan that would limit the fees imposed on credit card holders by credit car companies.

The limit under discussion would change the way existing fees are limited. Under current law, credit card companies are only allowed to charge fees totaling less than 25% of a cardholder’s credit limit in the first year the account is open, but this limit does not include feeds issued up front when the card is opened, but before it has been used.

The policy suggested by the Bureau would have included these costs in the total fees in order to protect consumers further by keeping their total fees—including those up front costs—under twenty five perfect of the card’s limit. However, after pressure from the card companies and conservative politicians, the agency has backed off, in a move it acknowledges will hurt consumers and empower credit card companies to continue taking advantage of what many consider to be a “loophole” in the protection provision.

Credit card fee limits are amongst other considerations by the Consumer Financial Protection Bureau in recent months, with other efforts being concentrated on the mortgage industry and debt collection agencies. The Bureau was created after the debt crisis revealed the failure of the government and corporations to take necessary steps to inform and protect consumers with regard to policies and fees.

We talk often on this blog about how to get the most out of your spending, and one of the ways we often suggest is using a credit card that offers high rewards. But it’s important to consider the pros and cons of using a rewards card, because there’s always a flipside. The fact is, while rewards cards can be a real bonus to certain cardholders, they can be (unexpectedly) detrimental to others.

Why? Simply, rewards cards fund their reward programs using interest collected on the unpaid balance of your card. This might not surprise you—of course, accumulated interest is how credit card companies make money, so it makes sense that this is how they would fund a rewards program. But the truth is, rewards cards have higher interest rates than other cards. This means that if you carry a balance on a card that offers points, miles or cash back, you’ll end up paying far more in interest payments than you would if you had a typical card.

So the question really is: will I get more in rewards from this card than I will pay in high interest? For cardholders who regularly pay off the full balance of their card and who will rarely miss payments, a rewards card is a great perk. But if you aren’t in a situation that allows you to consistently pay off your credit debt, you should think twice about using a rewards card—it’s likely that you’ll pay more in interest fees than you’ll gain in points.

While the amount of interest you can accumulate over time is unique to this type of card, the advice of considering your spending habits and overall financial stability before opening a credit card should be fairly universal. The fact of the matter is, just as reward cards are better for some people than others, even having a credit card at all might be a better idea for one individual than another. Talk with your financial planner or a representative at your local bank about your means and how much credit debt you can afford per month.

E-mail claiming to be from the Federal Reserve (March 15, 2011)

The Federal Reserve Bank of Cleveland (FRB) has received numerous reports of a fraudulent e-mail tha has the appearance of being sent from the FRB. The e-mail appears to be sent from info@federalreserve.gov and includes a subject line that states: “Your Wire Transfer.”The e-mail has been sent to business owners and managers, and states “The Outgoing Wire fund transfer, recently initiated from your account, was cancelled by the FedWire.” It then asks recipients to “Please click here to view details” and includes a hyperlink to a non-FRB website.This email and its link are fraudulent. Recipients should consider the intent of this -mail as an attempt to collect personal or confidential information, or to load malicious software onto end users’ computers. Recipients should not click on the link provided.The FRB does not issue unsolicited e-mails to consumers and business account holders. Please forward any suspect emails to bank@westfieldgrp.com and include “Suspicious Email” in the subject line.

Phishing Scam Alert (February 25, 2011)

Westfield Bank has received notice that a new Phishing email is being circulated. This email appears to come from NACHA.ORG and references rejected transactions with a link for further information. DO NOT click on the link as this may cause malicious software to be installed on your computer and possibly allow fraud. We remind you that Westfield Bank will never ask you to provide your personal or security information via email requests, and to not open email links if you are asked. Please forward any suspect emails to bank@westfieldgrp.com and include “Suspicious Email” in the subject line.

If you receive such a letter, do not respond to it in any way. Alert your postmaster that you have received the letter. Also, please advise us that you have been targeted by emailing Westfield Bank at WestfieldBank@westfieldgrp.com.

This mailing constitutes consumer fraud and is an illegal activity. It is a variation on a number of schemes criminals throughout the world use to take advantage of unsuspecting consumers. Don’t become a victim of this scheme. For more information on how to protect yourself from consumer fraud refer to the tips provided on our websites.

Winning Letter Consumer Fraud Alert (January 2011)

Prior to the holiday season, Westfield Bank learned that an individual or organization is sending out letters on counterfeit versions of letterhead for James B. Oswald (Oswald Companies), a Westfield Insurance independent agency in Cleveland, Ohio, claiming that the recipient is a winner in the “Customer Compensation and Appreciation Bonanza for all customers of major stores in U.K. U. S. and Canada.” The mail package includes a fraudulent check for $4,000 drawn on a Westfield Bank account that is closed and asks the recipient to send $2,900 to cover taxes on a larger prize.

Please know that these mailings are completely false and have nothing to do with Oswald, Westfield Insurance or Westfield Bank.

If you receive such a letter, do not respond to it in any way. Alert your postmaster that you have received the letter. Also, please advise us that you have been targeted by emailing Oswald at info@oswaldcompanies or Westfield Bank at WestfieldBank@westfieldgrp.com

This mailing constitutes consumer fraud and is an illegal activity. It is a variation on a number of schemes criminals throughout the world used to take advantage of unsuspecting consumers. Don’t become a victim of this scheme. For more informationon how to protect yourself from consumer fraud refer to the tips provided on our websites.

NACHA Phishing Alert (July 22, 2010)

Email claiming to be from NACHA reported

EPCOR is sending this information on behalf of NACHA, additional information on this issue may be found at NACHA’s website. Please alert any financial institution and/or company who have questions about this site and inform them that the e-mail did not originate from NACHA, the website is not that of NACHA’s, and inform them to not click on the link.

The subject line of the e-mail states: “Unauthorized ACH Transaction.” The e-mail includes a link that redirects the individual to a fake Web page and contains a link which is almost certainly an executable virus with malware. Do not click on the link. Both the e-mail and the related website are fraudulent.

Be aware that phishing e-mails frequently have links to Web pages that host malicious code and software. Do not follow Web links in unsolicited e-mails from unknown parties or from parties with whom you do not normally communicate, or that appear to be known but are suspicious or otherwise unusual.

If malicious code is detected or suspected on a computer, consult with a computer security or anti-virus specialist to:

Remove malicious code or re-install a clean image of the computer system.

Use anti-virus software and ensure that the virus signatures are automatically updated.

Ensure that the computer operating systems and common software applications security patches are installed and current.

Be alert for different variations of fraudulent e-mails.

= = = = = Sample E-mail = = = = = =

From: Information

Sent: Thursday, July 22, 2010 8:27 AM

To: Doe, John

Subject: Unauthorized ACH Transaction

Dear bank account holder,

The ACH transaction, recently initiated from your bank account, was rejected by the Electronic Payments Association. Please review the transaction report by clicking the link below:

Unauthorized ACH Transaction Report

False E-mail Claiming to Be From the FDIC (July 6, 2010)

The subject line of the e-mails state, “you need to check your Bank Deposit Insurance Coverage.” The e-mail tells recipients that, “You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets.” The e-mail then directs recipients to click on a link stating, “You need to visit the official FDIC website and perform the following steps to check your Deposit Insurance Coverage.”This e-mail and associated Web site are fraudulent. Recipients should consider the intent of this e-mail as an attempt to collect personal or confidential information, or to load malicious software onto end users’ computers and should not click on the link provided.The FDIC does not issue unsolicited e-mails to consumers. Financial institutions and consumers should NOT follow the link in the fraudulent e-mail.

Criminals often use names of organizations we all know to lure users into clicking links that may infect their computer. Users should always ask themselves if an email makes sense. If not, never click links or open attachments in the email. If suspicious, contact the agency directly to verify legitimacy.

The Federal Deposit Insurance Corporation (FDIC) has received numerous reports of a fraudulent e-mail that has the appearance of being sent from the FDIC. For more information you can visit the FDICs website.

For more, visit: http://mpx.informz.net/mpx/archives/archive_855894.html

Fraud Alert – Rejected ACH Transaction E-mails (November 2009)

Random individuals and/or companies may have received a falsified e-mail with the subject title “Rejected ACH Transaction.” This e-mail appears to be from NACHA – The Electronic Payments Association telling them that there is a problem with an ACH transaction they have originated. The e-mail includes a link which redirects the individual to a fake web page which appears like the NACHA website and contains a link which is almost certainly executable virus with malware. See sample below.

Please know that this e-mail did not originate from NACHA, the website is not that of NACHA’s, and do not click on the link.

Email claiming to be from NACHA reported

EPCOR is sending this information on behalf of NACHA, additional information on this issue may be found at NACHA’s website. Please alert any financial institution and/or company who have questions about this site and inform them that the e-mail did not originate from NACHA, the website is not that of NACHA’s, and inform them to not click on the link.

The subject line of the e-mail states: “Unauthorized ACH Transaction.” The e-mail includes a link that redirects the individual to a fake Web page and contains a link which is almost certainly an executable virus with malware. Do not click on the link. Both the e-mail and the related website are fraudulent.

Be aware that phishing e-mails frequently have links to Web pages that host malicious code and software. Do not follow Web links in unsolicited e-mails from unknown parties or from parties with whom you do not normally communicate, or that appear to be known but are suspicious or otherwise unusual.

If malicious code is detected or suspected on a computer, consult with a computer security or anti-virus specialist to:

Remove malicious code or re-install a clean image of the computer system.

Use anti-virus software and ensure that the virus signatures are automatically updated.

Ensure that the computer operating systems and common software applications security patches are installed and current.

Be alert for different variations of fraudulent e-mails.

= = = = = Sample E-mail = = = = = =

From: Information

Sent: Thursday, July 22, 2010 8:27 AM

To: Doe, John

Subject: Unauthorized ACH Transaction

Dear bank account holder,

The ACH transaction, recently initiated from your bank account, was rejected by the Electronic Payments Association. Please review the transaction report by clicking the link below:

Unauthorized ACH Transaction Report

The Federal Reserve Bank of Cleveland (FRB) has received numerous reports of a fraudulent e-mail that has the appearance of being sent from the FRB.

= = = = = Sample Scam E-mail = = = = = =

From: nacha.org [mailto:report@nacha.org]

Sent: Thursday, November 12, 2009 10:25 AM

To: Doe, John

Subject: Rejected ACH transaction, please review the transaction report

Dear bank account holder,

The ACH transaction, recently initiated from your bank account, was rejected by the Electronic Payments Association. Please review the transaction report by clicking the link below:

Unauthorized ACH Transaction Report (this is the how the link is presented)

Fraud Alert – FDIC E-mails (October 2009)

The Federal Deposit Insurance Corporation (FDIC) has become aware of emails appearing to be sent from the FDIC that are asking recipients to download and open a “personal FDIC insurance file” to check their deposit insurance coverage. These e-mails are fraudulent and were not sent by the FDIC. The FDIC is attempting to identify the source of the e-mails and disrupt the transmission.

Currently, the subject line of the fraudulent e-mails includes the wording “check your Bank Deposit Insurance Coverage.” The e-mails state: “You have received this message because you are the holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets.”

The e-mails ask recipients to “visit the official FDIC website” by clicking on a hyperlink provided, which appears to be related to the FDIC and directs recipients to a fraudulent website. The website includes hyperlinks that appear to open forms. However, it is believed that clicking on the hyperlinks will cause an unknown executable file to be downloaded. While the FDIC is working with the United States Computer Emergency Readiness Team (US-CERT) to determine the exact effects of the executable files, recipients should consider the intent of the software as a malicious attempt to collect personal or confidential information, some of which may be used to gain unauthorized access to online banking services or to conduct identity theft. Financial institutions and consumers should NOT access the website or download the executable files provided on the website.

Fraud Alert – Mystery Shopper Scam (September 2009)

We have been informed that scam artists posing as legitimate Mystery Shopping firms are sending letters to consumers offering a job to evaluate one or more leading money wire services. The letter is accompanied by a cashier’s check with the Westfield bank logo and an incorrect toll-free number. The check is for several thousand dollars and the letter contains instructions to cash the check at a local bank and then wire the cash to a designated location. The letter directs the consumer to keep several hundred dollars as payment for services received from the money wire services. The cashier’s check ultimately bounces and the consumer is left liable for the funds.

Please be cautious of anything you receive that seems too good to be true. A legitimate Mystery Shopping firm will never send you a cashier’s check out of the blue or require you to send money to someone you have never met. The scam artists use realistic looking documents, the ‘secret’ nature of the job, and the 48-hour deadline to pressure consumers into cashing the check and wiring the money quickly before the bank or the consumer can determine it was a fake check. By then, it’s too late.

The FBI and FINCEN have been contacted and notified of this fraud. If you receive one of these fraudulent letters, please contact us via email at Bank@westfieldgrp.com or via phone at 800.368.8930.

Do not deposit the ‘enclosed check,’ as it will be returned unpaid.

You may have heard about “Bank Transfer Day” this weekend, especially if you live in New York. If you’re like me, you’re wondering what on earth it is and why anyone—let alone thousands of people—would participate. Here are your answers.

What?
On Bank Transfer Day, patrons of large banks moved their checking and savings accounts to smaller, independently owned community banks. This probably happens at other times, when people move, get fed up with charges or suddenly decide to support the little guy. This day was different because lots of people all agreed in advance to participate and move their money as part of a unified statement.

Why?
It’s pretty simple: to take the power away from the big banks. The idea is that we, the American public, continue to fund and support the income gap in our country by enabling corporate banks, also putting ourselves at risk—if the big banks fail, the whole economy could crumble because of the effects. But then we start getting into TARP funds and other complex political issues.

The bottom line is, as you might have guessed, that the “Bank Transfer Day” goes hand in hand with the recent Occupy Wall Street movement—idealistic protestors who believe that there is injustice in the income gap in America. I see why they participated in Bank Transfer Day—it’s certainly in line with the consensus they’ve been reaching in terms of who to blame for economic injustice. But, I have to wonder—will what they’re doing matter at all? The headlines today read, “Thousands” participate in Bank Transfer Day… which means the bulk of Americans still have their money with corporate banks like Bank of America and Chase. Then again, the question also needs to be asked: does moving our money around within the banking system solve any problems at all, even if we all participated?