Mystery Shopper Scams

Have you ever considered working as a "mystery shopper" to evaluate a product or service? There are valid secret shopper programs out there. Beware of scams related to mystery shopper programs that often are advertised as a work from home employment offer. Below is a summary of how the "mystery shopper" scam works;

A person responds to an email or sees a job offer online to be paid for working as a mystery shopper.

The mystery shopper then receives a large check in the mail or by overnight mail service.

Included with the check is a list of small items to be purchased and instructions to send the majority of the money via Western Union or wire transfer to a named individual in the letter or by telephone instructions. The "mystery shopper" completes an evaluation form included in the mailing and rates the service level of the small purchases and money transfers. For their work and effort the "mystery shopper" is allowed to keep a portion of the funds sent to them, usually several hundred dollars or so.

The scam reveals itself when everyone finally realizes that the large check sent by the mystery shopper program is a counterfeit check. The counterfeit notification process from the Federal Reserve can take days or weeks depending upon the bookkeeping oversight of the company whose checks were counterfeited. The person who deposited the counterfeit check is responsible for any loss of funds associated with the return of the deposited check. There is also a criminal aspect as well since it is a crime to possess and negotiate a counterfeit check.

The best way to spot a fake "mystery shopper" program is this fact - no legitimate company will ever mail a check to a prospective "mystery shopper" in advance of any work completed. The average payment for a real "mystery shopper" program is also only $15-$20 and that is received only after an extensive evaluation form is completed and returned to the company. A real company would never send a valid large check to a stranger and hope that the stranger would return the money.

The poor economy of the past few years has intensified these type of scams since victims are usually unemployed or needing to increase their household income. The lure and ease of earning money from home can sometimes cloud the judgment of financial caution. We don't want anyone to become a victim. Members are encouraged to bring any suspicious checks and associated correspondence to the credit union for a review by credit union management BEFORE attempting to deposit any such items.

Fall Newsletter

Our latest newsletter has quite a bit of information. The latest issue has information on School Supply Loans, VISA Gift Cards, Skip-a-Payment program, Decatur Branch info, Charity Cookbook, Credit Union Day, Free Shred-it-Day, Scam Alert, Holiday Closing Schedule, Investment options, and more. You can view the newsletter online. It will also be mailed to member households in the next week.

Check it out: http://www.naecu.org/images/Fall_2011_Newsletter.pdf

GAP - Guaranteed Auto Protection

Being in an accident and having a vehicle totaled is traumatic enough. Imagine the scenario where the insurance settlement amount on the totaled vehicle is not sufficient to cover the loan payoff. This can and does happen as more and more vehicle loans are “upside-down” over time, meaning that the value of the vehicle is less than what is owned on the vehicle loan. This “upside-down” situation is especially prevalent on purchases where a trade-in was financed into the new purchase. Certain vehicle makes/models also depreciate faster than others. The credit union has a VisualGAP tool that illustrates any current and projected differences between values and loan balances over the life of a loan.

Guaranteed Auto Protection (GAP) is a valuable product that North Alabama Educators Credit Union offers our members to minimize a total vehicle loss situation. GAP helps to cover the difference between the actual cash value paid by the primary insurance claim settlement and the vehicle loan balance at the time of the loss. Another benefit of GAP is that any deficiency balance caused by the borrower’s deductible will be reimbursed up to $1,000, where permitted. Without GAP, borrowers may be subject to owing anywhere from a few hundred dollars to several thousand dollars on a vehicle that they no longer have. Many primary insurance companies are now using a “local market value” analysis to determine the claim settlement amount which is sometimes lower than an average NADA price.

The best part about the credit union’s GAP product is the price. Members can purchase GAP coverage (as of September 2011) through North Alabama Educators Credit Union at a price of $195 for each loan covered. Automobile dealers routinely sell their GAP products for $400-$700 at their finance offices. The credit union helped one of members earlier this year with a vehicle refinance and that member received a prorated refund of roughly $600 from the GAP product that had been purchased at the dealership.

Members can purchase GAP coverage for their vehicle loan at the time of loan inception or anytime afterwards as long as there has not been a total loss situation prior to the date of purchase. If GAP is purchased after the loan inception date, the coverage is not retroactive but the coverage would begin on the GAP purchase date and cover the remaining term and balance. Loan Officers are available at any office to present the VisualGAP illustration to help in any GAP purchase decision. The GAP product is yet another example of how the credit union can save money for the membership.

Rising Fees at Banks - Not at NAECU

Fees are on the increase with many of the big, traditional banking institutions as they work to recoup lost revenues from recent regulatory changes to the industry. Some institutions are starting to charge a monthly fee for checking accounts. Others are raising the account requirements, such as a larger average balance, to avoid having a monthly service fee. It was reported that Wells Fargo Bank is experimenting in a few markets with a $3.00 monthly charge for Debit card users if the consumer uses their Debit card at least once during the month. Some institutions are beginning to charge a monthly fee if an account statement is mailed instead of being delivered to the consumer by e-statement online.

The trend is clearly moving towards more fees back to the account holder. The good news is that North Alabama Educators Credit Union is not looking at adding any of the fees cited above. Our business model has always been to reward our member-owners with lower fees, higher rates on deposits, and lower rates on loans. While there have been regulatory changes that have affected North Alabama Educators Credit Union, the overall financial impact so far has not been sufficient enough to require additional fees at this time.

Consumers who have account relationships at multiple financial institutions are advised to look closely for any "change in terms" notices or new fee schedules that may be delivered from the institution. North Alabama Educators Credit Union is experiencing a good increase in new members recently as more and more consumers move their business away from these higher fees being charged elsewhere.

ATM Security Considerations

Automated Teller Machine (ATM) users should be aware that several security threats are taking place in the north Alabama area. Multiple robberies have taken place at Huntsville ATM locations where the customer was using an ATM at night. A criminal is approaching people as they are using the ATM and either taking their cash at that time or requiring the victim to withdraw funds to give to them. The common theme is that the crimes are occurring at night when the cover of darkness is allowing the criminal to remain unseen until the robbery takes place.

ATM users are cautioned to be very alert to their surroundings when using ATM's. Avoid ATM transactions at night if at all possible, especially at more remote locations where traffic or other patrons are not very visible to the ATM. Do not count your cash at the ATM itself - move away from the ATM and wait until you are safely in your vehicle away from the machine. If you are involved in a confrontation with an assailant who demands money, comply with demands and do not do anything that might provoke the criminal. If you have a debit card, remember that you can receive "cash back" at a merchant point of sale which would be safer than a late night ATM transaction.

Another ATM security threat is where criminals are watching people use ATM's from a short distance and viewing the ATM PIN used for the transaction. If the ATM user leaves the ATM and does not clear out the menu option of "do you want to perform another transaction" or something similar, the thief can go to that same ATM and enter the victim's PIN (that they just saw used) and perform a cash withdrawal from the victim's account. Video surveillance at several ATM locations in Huntsville have recorded a criminal stealing money in this fashion. Please note that ATM's of North Alabama Educators Credit Union do require that the card be swiped again before a new transaction can be performed. ATM menu's vary though so be sure that all menu options are cancelled out before leaving an ATM that has been utilized. This type of ATM fraud also reinforces the importance of paying attention to the surroundings when using an ATM.

Criminals are out there in our area looking for victims. Be smart. Be safe.

Service Highlight : CO-OP Surcharge Free ATM's

Credit unions do a really good job of working with other credit unions. The credit union philosophy of "people helping people" extends between credit unions as well. The CO-OP Surcharge Free ATM Network is an excellent example of credit unions working together for the common good of credit union members in general.

Basically, the CO-OP ATM Network is a collection of credit unions throughout the country that allow participating credit unions to access their ATM's without a surcharge fee. There are other ATM's within the network, like Publix Grocery Store ATM's, that are also surcharge free but the bulk of the ATM's are owned by credit unions.

There are currently over 28,000 ATM's nationwide where members of North Alabama Educators Credit Union can withdraw cash without a surcharge fee or internal fee. Totally free to the member. In the Tennessee Valley area, most Redstone Credit Union ATM's and Publix Grocery Store ATM's are surcharge free. Always look for the CO-OP Network Logo (shown above) on the ATM. You should also not have to click "yes" to a surcharge fee at the terminal if the ATM is part of the CO-OP Network.

Locating a surcharge free ATM can be done in several ways. Members can locate a CO-OP Surcharge Free ATM through an online ATM locator, iPhone Application, Text Messaging, or GPS. Below is a direct link to the ATM Locator page for the CO-OP ATM network. This CO-OP link is posted on our credit union home page as well.

http://www.co-opfs.org/public/locators/ATMlocator/index.cfm

School Supply Loans - 0.00% APR

North Alabama Educators Credit Union is once again offering School Supply Loans where qualified members can borrow up to $500.00 at a 0.00% Annual Percentage Rate.* These loans are paid back over a maximum term of 10 months on payroll deduction. A small processing fee does exist on these loans. If you need to borrow money, this is one of the best deals you will find.

These School Supply Loans have been very popular over the years to teachers and parents in assisting with their school expenses. Frankly the loans can be used for any worthwhile reason. We have had members to use these loans to pay off costly payday lenders and check cashing loans.

The first three days that this loan was available this year (started July 11th) the credit union provided over $52,000 in School Supply Loans to our members. Availability of this loan will continue through September 30th.

This School Supply Loan is another excellent example of the value of credit union membership in North Alabama Educators Credit Union. You will not find this type of loan offer with the large traditional banking institutions. Credit union membership does have its privileges.

*We are an Equal Credit Opportunity Lender. Qualifications must be met on all loans. Rates and loan availability are subject to change without notice. Your loan interest rate will be determined by your credit worthiness as well as other factors, such as the length of your loan.