Fake Checks

Fake checks continue to circulate throughout the country. How can you spot a good check from a bad check? Not easily. The technology of printers today allow thieves to print off good copies of legitimate checks. This is why check holds on deposits are much more common now.

The best method of identifying a possible counterfeit check is by looking at the reasons on why the check was received in the first place. Strangers don't send checks for thousands of dollars to other strangers for no reason. If a check recipient is asked to send part of the check proceeds back to the stranger for any reason, there is a 99.9% chance that the check is a counterfeit item. Mystery shopper programs, sweepstakes and lottery contests, inheritance gifts from long lost (and unknown) relatives, payroll processing job offers using a consumer's personal account, and Internet sales where the buyer sends more than is needed for the purchase price are all examples of scams involving counterfeit checks.

Victims of these scams often say later that they had a bad or uneasy feeling about the fake checks being negotiated. They convince themselves though that the official check and overnight mail package could only have come from a "legitimate" entity. These same victims also refer to official looking websites and mail correspondence that looks like the real thing. Criminals can copy and reproduce anything. They try to build confidence in the victim's mind that the offer being presented is the real deal. Sadly, greed is also a contributing factor to many of these fake check scams as the victims are promised easy money for their efforts.

Don't be a victim. Ask your credit union or financial institution to research the item and be sure to provide all information about how the check was received. Depositing a counterfeit check item is a crime so be sure that all check items are legitimate BEFORE they are deposited.

The website below provides excellent resources and information regarding fake check scams;
http://fakechecks.org/

Scholarship Money from NAECU

Our annual scholarship contest is underway with $1,500 being available for our 1st place winner and $750 being available for our 2nd place winner. The scholarship application is available at any office or online at the link provided below. The deadline for submitting the completed scholarship application is Monday, April 2, 2012. (The form states April 1st but since April 1st falls on a Sunday we will accept applications through the following day).

The essay portion of the scholarship this year will be a typed essay of at least 250 words on "How can financial institutions improve their value to consumers?".

We would encourage our members who are graduating high school this semester to apply for the available scholarship money. Keep in mind that all students of public or private schools in Madison, Morgan, or Limestone Counties are eligible for credit union membership with North Alabama Educators Credit Union.

Best of luck to all scholarship candidates! Here is the credit union page for additional information and the scholarship application;

http://www.naecu.org/news/scholarship.html

Car Buying Tips

Buying a new or used vehicle is a major transaction for most consumers. Decisions made while buying a vehicle can impact the owner for many years to come. Shopping smart is good for any purchase but it is especially beneficial when buying a vehicle.

The high cost of vehicles makes it absolutely imperative that buyers do their homework BEFORE closing a deal on a new or used vehicle. If buying a new vehicle, find out what the invoice price is for that vehicle and what the cost over invoice is normally charged for the vehicle being considered. The sticker price on the window, or retail price, should not be used as a bargaining point for what the sale price should be. Consumer Reports and Edmunds are good resources for determining a fair price on a new vehicle. NADA and Kelly Blue Book are good resources for used vehicle pricing. Again, the "average retail" price is not the price value that consumers should be negotiating from. A fair price on most used vehicles would be splitting the difference between the "average retail" value and "average trade-in" value of the vehicle being considered. For example if the "average retail" price is $15,000 and the "average trade-in" value is $11,900, a fair sale price would be $13,450 for that particular vehicle.

Price negotiations for purchases and any trade-ins should be held mutually exclusive. A fair price should be sought for both transactions. Dealers are infamous for providing high prices for trade-ins and then adding the overage amount to the cost of the new purchase. This practice is also what causes many owners to become upside down on their vehicles, meaning that they owe more than the vehicle is worth.

The Credit Union would encourage members to shop our rates and terms first before shopping for a vehicle purchase. Our loan rates are publicly posted on our web site under the "LOAN RATES" tab. It is not uncommon for members to be told by a dealer that our rates are higher than the dealer rate when in reality the opposite is true. We recently had a good credit score member who was quoted a rate of 10% APR at a local dealer when the member was actually eligible for our advertised rate of 2.99% APR. North Alabama Educators Credit Union does have risk-based pricing for loan rates that are based upon the member's credit score. Even our "D" rated credit score members would be eligible for a fixed rate of 8.99% APR!

The fact is that dealers get paid from other lenders to push their financing to buyers. This is why dealers generally don't want members to finance their vehicles with the credit union. North Alabama Educators Credit Union would rather reward our member-owners with lower rates than to pay dealers $200-$300 for an automobile loan. At times, dealer financing may have a lower rate than the credit union especially when the financing is for a new vehicle. The key though is to verify available rates and terms independent of the dealer. Trust but verify is always a good policy to follow!

Merry Christmas from NAECU

Merry Christmas from your friends at

North Alabama Educators Credit Union.

Best wishes to you and your family

for a joyous and safe Christmas.

Christmas Loan

If you find yourself coming up a bit short on cash for the holiday season, our Christmas Loan is a nice gift. Qualified members can borrow up to $1,000 at a low fixed rate as low as 5.99% Annual Percentage Rate for a term up to 12 months. Consumers have been doing a much better job of reducing debt and increasing the amount saved throughout the year. The key to borrowing money is try to avoid it if possible. Shopping with your own cash is always more preferable than shopping with someone else's money and paying interest for the use of those funds. If you must borrow money, shopping for a good loan rate is worth the time and effort. Some credit cards, especially department store cards, have increased their finance rates considerably during the economic downturn over the past few years.

Our Christmas Loan will be available through the end of January 2012. The joys of Christmas shopping in December can often be soured by the credit card bills that arrive in January. Our Christmas Loan as well as other loan programs for higher balances could be used to greatly reduce finance charges being paid on outstanding debt.

Members of North Alabama Educators Credit Union who are interested in the Christmas Loan can review the rates and terms available on this and other loans at http://www.naecu.org/rates/loanrates.html.

PTA Members & Students Eligible for Membership

People often associate North Alabama Educators Credit Union as a financial institution available only for teachers or school employees. While we do serve many school employees in the area, we also offer credit union eligibility to students and PTA members. Specifically, all students living within the Alabama counties of Madison, Morgan, and Limestone are eligible for membership. PTA groups (also PTO's and PTSA's) of our eligible school sponsors are also eligible. The eligible public school systems are Huntsville City Schools, Madison City Schools, Madison County Schools, Limestone County Schools, Athens City Schools, and Decatur City Schools. PTA's themselves can open an account with North Alabama Educators Credit Union. (Some PTA accounts have moved to North Alabama Educators Credit Union to avoid the fees being charged at their previous banking institution).

For PTA officers, membership eligibility in North Alabama Educators Credit Union is a great additional benefit to relay to current and potential PTA members. Consumers have become largely dissatisfied with the larger traditional banking institutions. North Alabama Educators Credit Union is truly locally owned and operated since the credit union is owned by the members who use the services of the credit union. Our members have not seen the rising fees and account restrictions that have been highlighted by the media stories on banking over the past few months.

North Alabama Educators Credit Union would love to provide credit union literature and information to the eligible PTA groups in the area. We have staff available, myself included, who can attend PTA meetings and briefly announce the additional benefit of credit union membership through North Alabama Educators Credit Union. In short, PTA members can save money with an account at North Alabama Educators Credit Union and we can demonstrate specific examples of those savings.

Any PTA officers interested in additional information can send an email to feedback@naecu.org or contact our Market Coordinator at 256-534-2423.

Home Break-ins on the Rise

A weak economy breeds an increase in criminal activity. The Huntsville Police Department (HPD) and the Huntsville Community Watch Association (HCWA) are trying to get the word out about home break-ins taking place within the City of Huntsville. Similar criminal activity is no doubt taking place outside of Huntsville in the surrounding cities and counties.

Huntsville is reporting that there have been 241 home break-ins between September 30, 2011 to October 31, 2011. People are advised to watch their neighborhoods closely and look for suspicious activity. If you see a stranger backing into a driveway, popping a trunk, and/or wearing a backpack, please contact your local police non-emergency number. In Huntsville city limits, the number to call is 256-722-7100.

Criminals are approaching front doors, ringing door bells or knocking, and if NO answer they are going to the back of the house and kicking in a door to gain access to the home. Common items being stolen include flat screen TVs, laptop computers, and video game systems. These break-ins are occurring between 7:00 AM and 2:00 PM.

If you do see suspicious activity, contact the police and remember to note description information on the people involved (clothing, appearance, race, hair color, gender) and vehicle (color, make/model, tag) if possible.

Unfortunately the upcoming holiday season will most likely intensify criminal activity. Remember to not leave large boxes from new electronics on the street for trash pickup. An empty box from a new flat screen TV only serves as a carrot to a thief canvassing a neighborhood for likely targets.