Wells Fargo and Bank of America have both been accused of breaking their refinancing terms as prescribed by last year’s mortgage settlement. Under the terms of last year’s national settlement, banks have 30 days to respond to all mortgage modification requests. By delaying their responses, Attorney General Eric Schneiderman says the banks are pushing homeowners closer to a situation that results in foreclosure.

Bank of America Not Helping Homeowner Debt

While Wells Fargo and Bank of America have so far not made a public comment, Attorney Schneiderman says he will sue for compliance if the committee doesn’t take action for the banks’ policies. The settlement within the continental United States includes other lenders such as JPMorgan, Citigroup, and Ally Financial. This new policy brought $25 billion of relief to homeowners across the country.

By replying in 30 days to mortgage modification requests, banks will be helping homeowners avoid foreclosure and stay current on their monthly payments. By either purposefully not complying or being inefficient in response time, both Bank of America and Wells Fargo are hurting American homeowners, says the Attorney General.

Since last year’s mortgage settlement, over 20,000 homeowners in New York alone have been helped by these new terms. Since October, both Bank of America and Wells Fargo have amassed 339 documented violations of these new refinancing terms. Whether or not the national monitoring committee decides to take action, Attorney General Eric Schneiderman says that he will ensure that these banks are held responsible for their actions.

Pinnacle Foods is proud to announce that they have officially completed their refinancing plans as previously stated. By reorganizing their debt, Pinnacle Foods will benefit from lower interest rates and be able to advance its debt maturity profile. The announcement comes after the initial public offering for Pinnacle Foods was a huge financial success. Pinnacle Foods hopes that this refinancing process will strengthen their future financial portfolio and give the company an opportunity to continue market expansion.

Pinnacle Foods Reorganizes Outstanding Debt

The refinancing by Pinnacle Foods involves a $1,630 million term loan, $150 million revolving credit, and $350 aggregate principal amount. Pinnacle Foods intends to use the money garnered from the new term loan and any unsecured senior notes to repay their outstanding debt.

To complete the refinancing process, Pinnacle Foods had to pay fees to have their debt reorganized. The fees cost approximately $52 million. This included $34 million in fees early in the process associated with the redemption of interest notes. Despite the high amount of fees, Pinnacle Foods expects that the refinancing will save money in the long term and that its annualized interest expense will drastically be reduced, especially when compared to 2012.

Pinnacle Foods based their strategy on the successful initial public offering as well as the initial moves they made for refinancing last year. By completing the process, Pinnacle Foods has a clearer idea of their debt repayment process moving forward as well as the support they have with banking partners and holders in the company. The flexibility provided by the refinancing is expected to give Pinnacle Foods a cash flow boost moving forward.

With the bombs at the Boston marathon and the fertilizer plant explosion in Texas, many Americans are asking what they can do to help. It’s this resilience of the American spirit that encourages people to donate to charities to help out even if they’re across the country. However, the IRS has issued a new warning that many charity scams are popping up throughout the nation. These scams are trying to take advantage of these tragedies for financial gain, leaving donors at risk of credit damage and unauthorized debt.

Protect Your Credit While Donating

The IRS notes that these scam artists are using a variety of tactics to get financial information. This could cause immeasurable damage to your credit report as these scammers are participating in fraud and identity theft. To protect yourself from charity scams, it’s important to keep these practices in mind:

· Only donate to authorized charities. Whether you’re donating to Boston or Texas, only donate to charities you know that you can trust. Aside from big names like the Red Cross, use the Exempt Organizations Select Tool on the IRS website to find charities that are legitimate.
· Look out for similar names. One of the tactics scammers use is to make their charity’s name similar to a larger organization. Because the name sounds and looks familiar, people are more likely to donate. But in reality they’re giving away money or personal information that could harm their credit.
·Don’t give out personal information. The IRS warns against using credit cards or checks to donate to charities you are unsure about. These methods give scam artists your personal information. Protect your credit by protecting your personal info.
· Avoid sending cash. On the other hand, you don’t want to send cash either. For both security and tax record purposes, you want to keep a paper trail of any donations. Thus, to contribute by check or credit card, you must verify that the charity is legitimate.
· Report potential fraud. Finally, if you have suspicions about a charity, it’s important to report it. You’re protecting unsuspecting victims by doing so. The IRS also provides more information about tax scams and schemes.

J.C. Penney’s recent financial struggles have caused market shares to drop. Throughout 2012, sales for J.C. Penney dropped approximately 31 percent throughout the United States in their stores, and online sales weren’t any better. Despite revamped marketing campaigns, the clothing brand has been unable to stop the loss of sales and revenue. In fact, J.C. Penney even bought 6 prime-time commercial slots during this year’s broadcast of the Academy Awards. They’ve recently announced that they have drawn on $850 million from their revolving credit as part of their efforts to rebrand themselves.

$850 Million in Money Management

The $850 million that J.C. Penney has drawn comes from its $1.85 billion in revolving credit. This is the latest sign that the clothing brand is continuing to struggle and hasn’t been able to turnaround financially as planned. Top executives including Chief Financial Officer Ken Hannah made the credit decision. The $850 million credit ensures continued liquidity, and proper money management might help J.C. Penney avoid bankruptcy – or worse.

This development comes after CEO Ron Johnson approaches a year and a half at the helm of the company. Their strategy to improve money management and credit includes closing floundering stores and incorporating strategic sales to drive buyers. The recent financial struggles have resulted in nearly a billion dollars lost in 2012 alone. Whether or not this $850 million credit will help J.C. Penney remains to be seen, but it’s apparent that their current money management has been anything but fashionable.

Despite the news, shares for J.C. Penney rose approximately 12 cents. Though the stock has lost nearly two-thirds of its value since this time last year, both Ken Hannah and Ron Johnson remain confident that their strategy will begin to turn fortunes in favor of J.C.

Three men were arrested in Lyndhurst, New Jersey, for their alleged mortgage fraud scheme. Adam Cueva, Adan L. Cueva, and Angel C. Cueva-Castro are all accused of trying to defraud homeowners. For months, their Time Consulting & Associates firm has been collecting mortgage payments from homeowners for months.

How the Mortgage Fraud Happened

The accused conmen charged fees up to $5,000 and were able to acquire personal and financial information from their victims. They then encouraged homeowners to stop making mortgage payments and allow Time Consulting & Associates to handle the situation. However, the payments that they collected were never forwarded to the creditors as promised. The scheme was revealed when banks then placed loans in default.

Aside from mortgage fraud, the conmen are also accused of using personal information to open fraudulent credit card accounts. When customers contacted Time Consulting & Associates with complaints, the schemers allegedly sent fraudulent letters pretending to be the banks to assure customers that everything was all right.

The mortgage fraud scheme affected residents of Lyndhurst, New Jersey and the greater area. The men are charged with trafficking personal identification information, mortgage fraud, and theft by deception.

Unfortunately, mortgage fraud cases aren’t limited to only states like New Jersey. Mortgage fraud can happen anywhere as predators prey on those struggling with mortgage debt. While debt can cause stress and emotional and financial hardship, it’s important to stay rational and reasonable to avoid falling for a mortgage fraud scheme.

While all three men are in jail, held on a $500,000 bond, there are many scammers still trying to take advantage of the anemic economy. If you’re struggling with your mortgage debt, consider, meeting with a foreclosure attorney to discuss all of your options with someone you can trust.

The latest American Bankers Association report shows that the financial health of the nation is improving, as credit card delinquencies reach a two-decade low. Credit card delinquencies are defined as accounts that are 30 days or more overdue on their payments. In 2009 after the financial crisis, credit card delinquencies set a record high of 5.01 percent. Currently, the delinquency rate stands at 2.47 percent. With more money management information available and a stronger economy, Americans are improving at paying their credit card bills on time.

Could New Credit Scores Help Americans?

By exercising better money management, Americans are not only paying off their credit debt, but also improving their credit scores in the process. A stronger credit score means lower interest rates and more borrowing opportunities in the future. Furthermore, it makes it easier for consumers to meet financial obligations.

While credit card payments are being made on time, other debts such as student loans are suffering from delinquent payments. According to the New York Federal Reserve Board, approximately 11.7 percent of student loans are over 90 days delinquent on their payments. This is up from the 8.69 percent at the first quarter of 2012. Delinquencies on boat, home, and automobile homes have risen as well.

After the financial crisis of 2008, consumers have increasingly paid more attention to their money management and exercised financial caution. This has attributed to the two-decade low in credit card delinquency rates. As consumers are working to eliminate their debt, they’re also trying to build secure financial bases for retirement. They’re also more cautious when they apply for credit cards or loans to avoid future problems. All of these elements have culminated in timely payments and lower credit card delinquency rates.

Good news continues to pour in for homeowners everywhere as nationwide foreclosure rates fall to an 11-month low. In some portions of the country, the low foreclosure rates are nearing a 2-year record as the economy and housing market recover. The national rate fell to 2.9 percent and is 1.2 percent lower than the similar time period in 2012. An influx of jobs as well as a stronger housing market are large contributors to the continued improvement of foreclosure rates.

Analyzing the Improved Foreclosure Rates

The peak in delinquency rates among homeowners was in 2007, right before the stock market crash of 2008. The main driver behind an underwater mortgage falling to foreclosure is when the homeowners realize that the home’s value is less than the amount they owe. When this happens, they become discouraged and don’t see a point in keeping up with payments, which eventually leads to foreclosure.

Since home values have been steadily increasing in certain areas of the country, homeowners have been more incentivized to keep up with their mortgage debt payments. Regardless, some states such as Connecticut have actually seen their foreclosure rates increase as the rest of the country improves. Connecticut is one of 6 states alongside 13 major metropolitan areas that have seen foreclosure rates rise. Considering that the average wage has fallen by 2.4 percent in Connecticut with up to an 11 percent drop in specific industries, it’s no wonder that Connecticut is struggling compared to states like Texas.

In Texas, 1.12 percent of owed mortgage loans have fallen into foreclosure. This is less than the 1.41 percent in January. State-wide, Texas also has a relatively healthy delinquency rate of 4.04 percent. Regardless, Texas continues to be one of the bright spots in the United States for the housing market. For those struggling to keep pace with their mortgage payments, seeking the advice of a foreclosure attorney can help you determine what course of action or money management planning is best for you.

Since 2009, over 900,000 Americans haven’t filed a tax return. With April 15 right around the corner, taxpayers only have a few weeks to file for their returns this year and claim the $917 million in unpaid tax returns. The IRS announced that with nearly $1 billion in unclaimed refunds, many taxpayers have the opportunity to claim an extra bonus that they can utilize any way they want.

What to Do with Your Tax Refund

According to the IRS, most refunds will total more than $500, with many reaching four or five figures. The IRS is strictly enforcing the April 15 deadline by which taxpayers have to file for their tax refund. Fortunately, however, there is no penalty for those who apply for a refund after the deadline.

When receiving a tax refund from the IRS, handling the money wisely is a decision taxpayers won’t regret. Instead of treating the refund as free spending money, consider it a bonus that can be used to pay off existing debts or help buffer your current budget. Money management options for an IRS refund include:

· Paying off debt. Whether it’s credit card debt, student loan debt, or your mortgage, consider using the refund to accelerate one of those bills. After all, you’ll see the money again in the form of interest saved!
· Contributing to savings. Since most Americans don’t have enough funds in their savings account or even have an emergency savings account, consider a refund the opportunity to begin better saving habits!
· Saving for retirement. Consider adding the tax refund as a deductible contribution to your IRA. You can even become eligible for a $1000 tax credit with a $2000 deposit. IRA contributions are also deductible, which would bring the total tax refund to $1300.

In order to have these options, however, you must claim your tax refund with the IRS. With millions applying for a tax refund

According to the latest reports by the Federal Reserve, US consumer debt is up in 2013. During the month of January alone, debt was up $16.2 billion. This brings the national total to $2.8 trillion, a new record. The two largest contributors to this growth in debt are student and car loans. Fortunately, credit card debt stayed relatively stable and has been on a steady decrease since its 17.2 percent peak in June 2008.

Households Heal As Loans and Debt Rise

One of the most hopeful indications that the United State economy is still recovering is the growth of the net worth of American households, which rose $1.1 trillion to a total of $66 trillion. Analysts believe that because households are healing, confidence is increasing and people are willing to continue taking out loans and other debt.

All of this comes on the heels of reports showing improvement in the housing market, as well. Foreclosures are on a downward trend, especially in states like Texas where some areas have had their foreclosure rates cut by over half!

Since credit card debt stayed relatively stable, it seems reasonable to conclude that Americans are still cautiously exercising money management strategies to avoid credit problems. It’s still too soon to tell whether lower credit card debt is bad for the economy. One the one hand, higher consumer spending means that the economy is on a good track. More money spent means more jobs and higher incomes, which leads back to more spending.

However, increased debt also means that families could be taking out debt to make ends meet. Still, it’s a good sign that the majority of loans were student and car loans and that credit card debt has not risen.

According to a recent report from the Federal Trade Commission (FTC), a shocking one in five people have errors on at least one of the three major credit reports (Experian, TransUnion, and Equifax). Because many consumers never pull up their credit reports on their own, these scores could present serious problems when trying to buy a home or make some other major purchase. If you’re dealing with credit debt, then you might be represented worse off than you actually are by your credit report.

Fighting a False Credit Report

The first step is awareness. It’s critical that you ask to see your credit report. You can pull a credit report from each of the big three institutions once a year free of charge. If you need to look at your credit report more often than that, then you’ll have to pay a fee. However, the fee is definitely worth it when you consider the cost of not knowing.

If you do see any errors with your credit report, then you need to get in touch with the credit bureau immediately. Because errors can sometimes take up to 60 days to be corrected, acting as soon as you notice a problem is essential.

Keep in mind that the credit bureaus do not share information about your credit report with one another. If you have an erroneous credit report with one bureau then this is definitely a good thing. However, you should still check with all three bureaus.