2007 Financial Literacy $upplement
Presented by Urban Trust Bank, Andrews Federal Credit Union and The Washington Informer
S-2 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
Urban Trust Bank
Makes Financial
Literacy
“Business as Usual”
Courtesy of Urban Trust
Bank
One of Urban Trust Bank's
core values is the belief that
financial literacy has the potential to improve the lives of every
customer and their family. With
the right tools and educational
resources everyone can build an
effective savings plan, own a
home, finance an education, and
become more effective at managing their day-to-day finances.
That is why Urban Trust Bank
has decided to make financial literacy a “business as usual” product.
Financial literacy materials are
readily available for every consumer. However, the bank
believes many customers find it
difficult to decipher the broad
descriptions of banking/financial
products, which often tells you
more about the interest rate than
it does how to use it.
“We work hard to understand
our customer's needs so we can
assist them to make the most of
their finances. We will work
hard to meet your needs from
loans to showing customers how
to use the ATM or internet
banking,” explains Gail Louis, in
the Urban Trust Bank downtown D.C. branch.
Recognizing the needs of those
customers resonates throughout
the organization at Urban Trust
Bank. Many customers in the
underserved and urban communities want to know…What
about the practical basics? How
do I balance my checkbook?
How do I rebuild my credit?
How do I teach my kids good
money-saving habits and finance
their college education?
Urban Trust Bank will launch
its first efforts at providing practical financial literacy with the
introduction of “The Road to
Courtesy Photo
Financial Empowerment: A
Practical Guide.” This guide
will be accessible to Urban Trust
Bank customers online and in
print and will show consumers
how to:
• Make a budget and stick to
it
• Understand a credit report
• Balance a checkbook
• Use “insider tips” to manage
credit cards, spending and
savings
The guidebook will give customers the basic knowledge and
tools to get on the road to good
financial health. It provides an
explanation of basic financial
concepts and definitions, ideas
to a variety of financial situations, and worksheets that can
be used to plan or track progress.
Urban Trust Bank believes this
guidebook will be a valuable
resource and reference tool for
its customers.
For more information on the
Urban Trust Bank Financial
Empowerment Guide, visit
www.urbantrustbank.com or call
toll free 1-800-584-0015.
Hours of operation are Monday
through Friday, 9:00 am to 7:00
pm and Saturday 9:00 am to
4:00 pm. WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-3
u Financial Literacy $upplement
Urban Trust Bank
Spreads 'Dreams,
Knowledge and
Wealth' in
Metro D.C.
Courtesy of Urban Trust
Bank
For the many people in the metropolitan area who want a personal relationship with a local,
community bank to help them
with their business or personal
needs … or for those who don't
currently have a banking relationship or might not understand
how a bank can help them,
there's good news. Urban Trust
Bank is spreading its wings in the
D.C. area.
In addition to its existing headquarters branch at 1350 I Street
NW in downtown D.C. Urban
Trust has opened a new branch in
Landover Hills, Md. at 6210
Annapolis Road. The branch is
located inside of a Wal-Mart
store. In fact, Urban Trust is
undergoing a major expansion,
opening a total of seven new
branches in cities that include
Orlando, Fla. and Tampa, Fla. in
2007. With its growth, UTB is
spreading its mission -- to provide
the best financial services that
help people in diverse, urban
communities become homeowners, entrepreneurs or just better
providers for themselves and their
families.
The bank is founded on the
premise of the power of dreams.
Urban Trust Bank's goal is to
understand the dreams of its customers and offer them the knowledge to turn those dreams into
reality, which will help them build
wealth. At the core of the bank's
business strategy is an unwavering
dedication to customer service
and unique model of outreach
and education that embody its
dedication to turn dreams into
reality. Urban Trust endeavors to
be a financial partner to the urban
community of corporate and
small business, community institutions, and families. And with
that, the bank focuses on product
lines that include mortgages, credit cards, student loans and small
business financing.
UTB came to life last year
when Black Entertainment
Television (BET) Founder Robert
Johnson bought and renamed
Metro Bank of Orlando and committed the financial institution to
serving the urban community.
The bank is part of The RLJ
Please see URBAN TRUST on Page S-35
Courtesy Photo
5 City and community leaders attend opening of Urban Trust Bank in
Washington, D.C.
S-4 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
u Financial Literacy $upplement
Adding a Little
“Stock” to Your
Investments?
familiar with the terms. You can
also visit your local bookstore
and start reading books to
become familiar with stock
investing. You may think that
you don't have the time to get
the education, but investing
without the education can cost
you a fortune. Investing with
education can potentially put
you on the road to financial freedom. Which would you prefer?
Courtesy of Cinnamon
McCann
Financialfashionhouse.com
Stock investment is not for the
faint of heart or the over emotional individual looking to
make quick returns by investing
money they can not afford to
lose. Most people are a little
misguided about the benefits
and the risks of investing in the
stock market. Can investing in
the stock market be a lucrative
investment? Yes. Is it risky? Of
course, but so are many investment vehicles if you don't have
the proper education and understanding.
The key to protecting yourself
in the stock market is to understand where you are putting your
money. When you buy stocks
you are buying equity or shares
of ownership of a particular
company. Stocks are issued to
raise money for the corporation.
If the company's profits go up,
you "share" in those profits. If
the company's profits fall, so
does the price of your stock. If
you sold your stock on a day
when the price of that stock is
higher than the price you paid
for it, you would make a profit
from your investment.
1) Get familiar with the Stock Market
Lingo.
Every discipline has its own
vocabulary (Medicine, Law, Real
Estate, etc.) Many times the
lack of understanding of the
vocabulary is what creates the
intimidation and confusion.
You can visit web sites such as
Stockcharts.com and Morning
star.com to start to become
2) Be aware of chasing stock tips.
Chances are you have heard
the office break room tip about
someone making a killing in
XYZ Company or the stock
picks from a popular TV analyst.
Fight the urge to blindly go out
to purchase the stock. A great
deal of stock investing has to do
with timing.
It is possible that by the time
you heard the news the stock has
already taken a new course and
has gone down in value right
when you decided to jump on
the band wagon. It is important
that you do your due diligence.
Look at the stock chart. By
looking at the stock chart you
will be able to examine information such as the current price of
the stock, the direction the stock
is moving, and stocks recent and
past activity.
3) Never invest money you can not
afford to lose.
Emotional stock investing can
lead to financial devastation. If
you are investing money you can
not afford to lose, it is almost
impossible to be subjective in
your stock investing decisions. If
you are interested in starting,
consider opening a small brokerage account. The key is to simply
get started. There are various online brokerage companies that
allow you to open an account
with very little money. Companies like ShareBuilder. com
allow their costumers to open a
brokerage account with no minimum deposit and you can buy
stocks for as little as $4 with
their automatic investing option.
Many of the online brokerage
firms such as OptionsXpress.
com and ThinkorSwim.com
Please see McCANN on Page S-35
The average student who graduates from high school lacks basic
skills in the management of personal financial affairs. Many are
unable to balance a checkbook and most simply have no insight
into the basic survival principles involved with earning, spending,
saving and investing.
The Washington Informer hopes to do its part to help
educate and empower our community concerning areas
of financial literacy, so that we may pass this information
on to others.
We would like to thank the sponsors of our
Financial Literacy Supplement for helping make
this issue possible.
Platinum Sponsor
Title Sponsor
Gold Sponsor
Secondary Sponsors
Special Thanks
Brian Gilmore • Nadine May • Nicole Cole
Lanta Evans Motte • Financial Fashion House
Association of African American Financial Advisors
The Washington Informer also thanks all of our loyal readers
for supporting the sponsors, advertisers, and contributors
in this issue and all issues.
If you would like to advertise in future issues
of The Washington Informer, please contact:
Ron Burke
rburke@washingtoninformer.com • 202-561-4100 ext 23
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-5
S-6 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
A Smart Approach
to Payday Loans
Courtesy of AFCU
Payday loans are cash loans
that are granted for a very short
time frame - typically until the
borrower's next payday. The borrower writes a postdated check
payable to the lender for the
amount borrowed, plus a fee and
receives the needed cash in
return. The lender holds the
check until the next payday when
the loan and the fee must be paid
in one lump sum. To repay the
loan, a borrower can redeem the
check for cash, allow the check to
be deposited, or pay another fee
to roll the loan over for another
pay period.
What Are Some Alternatives
to Payday Loans?
Payday loans are not the most
cost-effective method to borrowing money primarily because of
the high interest-rate and fees
associated with these loans. Here
are some alternatives that are less
costly and may make more sense
in your situation:
• Establish an emergency savings
account The best alternative to a payday loan is to start an emergency
savings account of at least $500.
Once established, this emergency
account can be tapped when
unexpected expenses cause a
shortfall between pay periods.
• Apply for a less costly loan The Andrews Federal Credit
Union offers a short-term emergency loan called Cash-to-Go.
Give us a call at (800) 487-5500
or (301) 702.5500 for more
details about this product.
• Decrease Expenses Take a hard look at your
expenses each pay period. The
best way to do this is to write
down and review every expense
for a period of two to four weeks
to determine ways to reduce overall expenses.
• Work Overtime or Pick Up Extra
Work If you cannot decrease your
expenses, then look for ways to
increase your income. Selling
something of value is another way
to temporarily increase your
income to make it through a cash
shortage.
• Adjust Taxes Withholdings If you typically receive a large
refund at tax time, it might be
worth looking at the taxes withheld from your paycheck each
pay period. By changing your
withholding, you can increase the
amount received each paycheck
instead of over-withholding every
payday and getting a big refund
later. (Please consult your tax
advisor on all tax matters.)
Breaking the Payday Loan
Cycle
For many, escaping the payday
loan cycle is hard. Here are some
tips that can help:
• Analyze your current financial
situation:
1. Stop unnecessary spending Don't add any new debt to the
amount outstanding. If you have
to cut up your credit cards to
avoid spending money, then do
it!
2. Analyze your expenses - Track
where your money goes for two to
four weeks. Write down every
penny you spend. Once you have
tracked expenses, take a look at
where you can cut costs. Are you
paying for unused features on your
cell phone? If you try hard, you
will be able to come up with areas
where you can reduce or even eliminate expenses.
3. Review your debt - List all
your debts, then set priorities for
repayment. The extra money
that’s found when you analyze
your expenses should be used to
make additional payments on
your higher rate debt.
4. Set realistic financial goals Write down reasonable and
attainable goals that you want
reach in the short term (less than
one year), medium term (two to
five years), and long-term (over
five years). Determine how
much money you need to save
each pay period to reach this goal.
5. Understand the root of the
problem - Are you spending
beyond your means because your
income is insufficient to live on or
because you're spending more than
you need to on non-necessities?
Everyone would like to earn more,
but is this really the problem?
Seek help when you need it:
1. Financial information - For
tips on managing money or interactive tools about the budgeting
process, visit the Savings &
Budgeting section of the Andrews
Federal Credit Union Online
Education Center at www.and
rewsfcu.org/education.
2. Free and confidential counseling - A financial counselor can
really help you focus on your
financial issues. Free financial
counseling is available to all
members of Andrews Federal
Credit union. A financial counselor will review your current
debts and suggest ways to reduce
your expenses. They can also
assist you in developing a spending plan that gets you out of the
payday loan trap.
Andrews Federal Credit Union
membership is open to anyone
who lives, works, worships, or
goes to school in the District of
Columbia. If you would like
additional information about
membership, please visit us at
www.andrewsfcu.org or give us a
call at (800) 487.5500 or (301)
702.5500. WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-7
u Financial Literacy $upplement
Have a Debt-Free
Holiday
Courtesy of AFCU
Do you think it's too early to
be thinking about the holidays?
By October, most retailers are
putting holiday items on display. Remember the stress that
accompanied the holidays last
year? Here are a few tips to help
you avoid that stress this year:
Identify what it is about the
holidays that you and your
family value.
• Is this a time to reconnect with
family and friends? Are parties and
entertaining high on your list? Are
family traditions the focus for you? Is
helping the less fortunate at the heart
of your holiday?
• Define your family values
for the holiday season and use
them as guidelines in planning.
• Set realistic expectations for
yourself and for your children.
Make a Plan
• Plan a budget and stick to it include all holiday expenses (gifts,
decorations, cards, postage, travel, gift
wrap, entertaining expenses, etc.)
• Make a gift list that includes
the people you would like to buy
for, a couple of ideas for each
person, and a price range. Keep
this list with you as you shop.
• Make time! Much of our
holiday stress comes from rushing - plan ahead to make time
for holiday errands. Perhaps you
can take a day or part of a day off
work to handle holiday shopping instead of rushing around
after work or joining the masses
at the mall on the weekends.
Use Cash Only
• Leave the credit cards at
home and use your debit card
instead.
• Your checking account
statement will help you keep
track of spending.
• Using cash should limit
your spending to the essentials.
Other Tips
• Know the store's refund or
exchange policy and ask for gift
receipts.
• Call the stores first to see if
they have what you are looking for
- this will save you time, gas money,
and frustration!
• Use the internet and catalogs if you are adverse to the
mall crowds but be aware of
shipping costs and time
frames. This may also save
you time at the post office
since you can ship directly to
the recipient.
• Throw a potluck dinner
instead of a full dinner party - it
takes some of the pressure and
expense off of your shoulders. Or
simply throw an appetizer or
dessert party instead.
• Send holiday postcards instead
of greeting cards. Postcards are less
expensive to purchase and mail.
• Reduce stress by limiting the
amount of social engagements that
you commit to, or make plans to
meet in January when time is more
abundant.
• Make a New Year's resolution
to budget throughout the upcoming
year for next year's holiday season!
• Get a part-time job or work
overtime and use the extra
S-8 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
money for buying gifts.
• Are you creative? Make and
sell items or make items and give
them as gifts.
For more information about
saving and budgeting or to
obtain help with creating a
spending plan for the holidays,
visit the Andrews Federal Credit
Union Online Education Center
at www.andrewsfcu.org/education. WI
u Financial Literacy $upplement
Deja Vu
In Debt Again
Courtesy of Lanta EvansMotte
Financial Advisor
Raymond James Financial Services, Inc.;
Member NASD/SIPC
You just refinanced three years ago
and you are back in debt already.
What happened? Is it the new house,
new car, new furniture, eating out,
treating yourself, or a little bit of all of
the above? The truth is, it doesn't
take much to get you back into the
red again. All it takes is spending a little more than what you are making
each month; living just above your
means. For instance, if you are
spending $50/week more than what
you make, that puts you $2,600 per
year in the hole. That's why it is so
easy to end up with $7,500 in credit
card debt again. Your monthly
“budget” might have been ok. What
you may not have accounted for was
the family vacation, increased property taxes, the repair bill, or the $500
“loan” to a friend that never got paid
back. You don't think of them as
monthly expenses, so if you don't set
aside some extra money to cover
them when they hit, then presto,
they can easily end up on the credit
card.
Re-think Your Debt
Reduction Plans
What can you do to manage all
the competing demands on your
paycheck? How can you meet all of
your financial responsibilities?
Chances are you did not accumulate
your debt overnight so it will probably take a little time for your situation to improve dramatically.
Beware of continually refinancing
your mortgage. Paying off your credit card debt by acquiring another
debt (refinancing your mortgage) is
not debt reduction--that's debt
restructuring. While it MIGHT
make sense to restructure your debt,
generally speaking you need to pay
down your loan balances to get out
of debt. Also beware of using one of
the “Get out of Debt Quick”
schemes often advertised today. You
could easily end up lowering your
credit score and ultimately end up
further in debt in the long run. Being
realistic about what caused you to get
in over your head is a good place to
begin your recovery process. You can
jumpstart your recovery by taking
control.
Five Steps Towards
Taking Control
Getting the right information can
assist you in gaining control of your
finances. Here are five steps to help
you:
1. Get to know what resources are
available to you. The government
has several educational sites that can
help you get some basic understanding of finances. The federal government has a free package of helpful
publications on saving, investing,
protecting and getting the most for
your money. The "My Money" tool
kit is available at www.mymoney.gov
and also available by calling 1-888696-6639.
2. Attend a free seminar or educational session. There may be community-based organizations that
offer free educational seminars in
your area. Be sure the resource is
credible and properly trained,
accredited or certified. Don't be
afraid to ask questions, or to ask a
knowledgeable friend to accompany
you.
3. Become familiar with your own
finances. Organize your financial
records and order a copy of your
credit report and credit score. You
can get a free copy of your credit
report
each
year
from
www.AnnualCredit Report.com
or 877-322-8228. The credit
score will cost between $6-$14.
Once you have them in hand, spend
some time trying to understand
them and making sure the information is correct. While you are waiting
for them to arrive, prepare a detailed
outline of ALL of your monthly bills,
commitments, and expenditures.
That includes child care payments,
subsidies to parents, tuition, alimony,
outstanding loans to family, and contributions to your retirement plans at
work. Be sure to include a monthly
allotment for bills you incur or pay
less often, such as insurance, real
estate taxes, car maintenance, homerelated repairs, etc. With this information in hand, you are ready to
seek out a professional for additional
assistance.
4. Seek out qualified help. Sure
you want to avoid the financial,
emotional, and social impacts of
bankruptcy and foreclosure but if
you follow the wrong advice, you
may just end up prolonging the
inevitable. A qualified financial professional can help you sort through
your current financial situation, help
you determine the “root cause” of
your debt issues, help you set short-
and long-term goals,
and help develop a
"game plan" designed
to help you meet your
goals. As you schedule
follow-up meetings, they
can also provide some
acco-untability to help you
stay on track. Make
sure to fully
ask about
their
credentials
a n d
training, and
ask about
potential
conflicts of
interest. Make
sure you know
how that professional is getting paid and
what you're paying in
fees to get that advice.
5. Give the plan your fullfaith effort and time to work.
Effective debt reduction, like
effective weight reduction, generally does not happen overnight
but rather by consistent changes in daily habits. As you begin to
pay down high-interest debts, you will free up resources
so you can begin to pay yourself first. Then with
your savings you can better invest, manage risk,
and build wealth and financial security for
you and your family.
For more information, Ms. Evans-Motte
can be reached at 301-459-2484 or
lanta.evans@ raymondjames.com located
at 4041 Powder Mill Rd, Ste 205,
Calverton, Md. 20705.
This article does not constitute tax or
legal advice. Consult your tax or legal
advisor before making any tax- or legallyrelated investment decisions. This article
is published for general informational
purposes only and is not an offer or solicitation to sell or buy any securities or commodities. Any particular investment should
be analyzed based on its terms and risks as
they relate to your individual circumstances and
objectives. WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-9
Business Owners Committed to Their Companies, But
When Ready to Move On, They Won't Look Back
Key Concern Is Having Enough Money to Maintain Lifestyle After the Transition
companies provide matching funds
to employee contributions.
• 69 percent volunteer their own
time in the community.
SunTrust conducted the survey,
with GFK Roper Public Affairs, to
better understand what is on the
minds of their business owner
clients. The Bank's Business Owner
Specialty Group combines the
expertise of their Commercial and
Private Wealth Management lines
of business to help business owners
with the business and personal
financial complexities that they face.
SunTrust
Private
Wealth
Management recently received top
ranking in the Luxury Brand Status
Index survey for the most prestigious wealth management brand in
the regional bank segment. The
Luxury Institute (www.luxuryinstitute.com) surveyed ultra-high net
worth consumers on three groups:
private banks, commercial banks
and regional banks.
Love it or leave it. That's how
many business owners view their
companies, according to a recent
survey released by SunTrust Bank
Private Wealth Management.
Nearly 70 percent of those surveyed
said they are not worried about giving up control of their business.
The study surveyed 201 business
owners, whose companies have at
least $10 million in annual revenue,
about how they plan to transition
out of their companies and what
concerns they have about succession
planning. “When they think about
life after they have left the business,
money is the top concern for the
business owners we surveyed. Like
the rest of us, they're worried about
having enough money to sustain
themselves through retirement or
other ventures,” said Dave
Johnston, senior vice president,
SunTrust
Private
Wealth
Management. “They are less concerned about such things as losing a
sense of identity once they leave the
company they've built or losing a
place in the business community.”
Love it or leave it
Business owners express a “love it
or leave it” point of view. Survey
findings indicate business owners
are committed to their companies
while at the helm, but their commitment is not a lifelong love affair.
Once the decision is made to turn
over the business, few express strong
concerns about the company they
will leave behind.
• Three in 10 believe they will
not have any ties to the business.
• Among those surveyed, having
the personal assets to maintain their
lifestyle after leaving the business is
more of a concern than relinquishing control of the business.
• Letting go of the company is
more stressful for first-generation
owners, who are more likely than
owners of established companies to
be concerned about their business
being sold or franchised, reactions
from clients, and giving up control.
• For those who expect to
remain tied to their business after
transitioning the company, they are
likely to assume the following roles:
Consultant (64 percent)
Board member (53 percent)
Executive officer (37 percent,)
or
Employee of the business (27
percent.)
Passing it on
Succession planning is a significant issue for business owners, considering that 41 percent of those
surveyed expect their focus to shift
to other opportunities after the
business has been transitioned to
someone else.
“However, the survey showed
that a succession plan is not always
crystal clear,” Johnston said. “For
example, a third (32 percent) of
business owners remain undecided
about their future plans for choosing a successor for the business. The
findings also showed that five percent simply do not plan to leave
their business.”
• When they leave their business, 44 percent of owners plan to
“keep it in the family” by:
promoting someone from within
(21percent,)
passing it on to a family member
(22 percent,) or
selling the business to an employee (five percent.)
Education, on the job training,
and personal mentoring are the
three key ways business owners plan
to prepare successors to assume a
leadership role in the company.
• Of those surveyed, 14 percent
plan to sell the business to a third
party.
Additional Survey Results
Most of the business owners surveyed show a strong commitment
to their communities. Philanthropy
is integrated into their businesses
now and they expect philanthropic
work to play a significant role in
their future plans. When they are
no longer fully involved in their
businesses, 82 percent of owners
surveyed plan to volunteer their
time and 72 percent plan to perform philanthropic work.
• 39 percent of business owners
already do pro bono work themselves, and 45 percent say their
companies do pro bono work.
• 51 percent of business owners'
S-10 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
About SunTrust
SunTrust Banks, Inc., (NYSE:
STI) headquartered in Atlanta, is
one of the nation's largest banking organizations, serving a
broad range of consumer, commercial, corporate and institutional clients. As of June 30,
SunTrust had total assets of
$180.3 billion and total deposits
of $122.9 billion. The company
operates an extensive branch and
ATM network throughout the
high-growth Southeast and MidAtlantic states and a full array of
technology-based,
24-hour
delivery channels. The company
also serves customers in selected
markets nationally. Its primary
businesses include deposit, credit, trust and investment services.
Through various subsidiaries the
company provides mortgage
banking, insurance, brokerage,
equipment leasing and capital
markets services. SunTrust's
Internet address is www.suntrust.com WI
u Financial Literacy $upplement
Protecting
Your Wealth
The future transfer of wealth
can often be a complex task.
Because everyone's personal and
financial circumstances are different, a SunTrust advisor can
help you carefully craft a plan to
suit your unique situation.
Whether you're looking for
the best possible way to provide
a regular income for your spouse
and children or a way to fund
your favorite charity, SunTrust
has a trust option that will meet
your needs:
• Testamentary Trust
Established by your will, it can
provide your heirs with expert
financial advice
• Revocable Living Trust - A
legal document that includes
directions for managing your
property while you are living and
for distributing your assets upon
death
• Qualified Personal Resident
Trusts - Can be used to transfer a
home to children or other heirs
during life at a discounted value
and thereby generate significant
transfer tax savings
• Credit Shelter Trusts Minimizes taxes for your spouse
through the application of the
federal estate tax exemption
SunTrust can also provide
access to other appropriate
trust options depending on
your particular estate planning
needs.
For additional information:
• Contact your SunTrust
advisor, or speak with a SunTrust
representative at 800.SUNTRUST (800.786.8787) if you
are a new client.
• Visit your local SunTrust
branch
WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-11
S-12 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-13
What You Need to
Know About Fraud
Courtesy of D.C.
Department of Insurance,
Securities and Banking
(DISB)
What is Insurance, Securities
and Banking Fraud?
Fraud happens when someone
tries to make money from insurance, investment or banking
transactions by deceiving others.
Insurance, securities and banking fraud are criminal offenses in
the District of Columbia. Fraud
is such a serious problem that
the Council of the District of
Columbia, with the advice of the
Department of Insurance,
Securities and Banking (DISB,)
has been proactive in formulating financial-service fraud laws
to deter these criminal activities.
Financial Fraud Affects
Everyone
It is estimated that the average American household pays $300 a year in additional premiums to compensate for insurance fraud
Some Common Types of Fraud
Affinity Fraud • Overstated and Padded Claims • Staged Accidents o Agent
Fraud • Application Fraud • Workers' Compensation Medical Provider •
Promissory Note Scams • Blind Offerings Predatory Lending • Foreclosure
Scams • Senior Investment Fraud Selling Securities Without a License •
Internet Fraud…
If it sounds too good to be true,
it probably is!
STOP, CALL and CONFIRM
Remember to stop before you sign anything, a contract or a check, call DISB at (202)
727-8000 and confirm you are dealing with a credible financial-service company
licensed to do business in the District of Columbia. To file a complaint or to get free
information on consumer issues, visit DISB's Web site at www.disb.dc.gov.
Who Pays for Fraud?
Generally, we all pay for
fraud-either in the form of higher premiums, less investor confidence or stolen funds or identity.
Insurance fraud costs consumers
millions of dollars in premiums
every year. Insurance companies
and the public pick up the tab
through increased insurance
rates, higher taxes and inflated
prices for consumer goods and
services.
Insurance fraud
includes staged accidents, arsonfor-profit and claim fraud,
among others. It is estimated
that the average American
household pays $300 a year in
additional premiums to compensate for insurance fraud.
Securities fraud or investment
fraud is a crime where investors
are deceived and manipulated,
resulting in theft. The fraud may
include pump and dump
schemes, affinity fraud, unsuitable recommendations, unlicensed securities sellers and the
like. This type of fraud makes
investors overly cautious, undermining investor confidence,
which affects the entire economy. It is estimated that securities
fraud totals about $40 billion
S-14 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
per year.
Banking fraud involves transactions by a fraudster into legitimately owned accounts. The
fraud may include predatory
lending, credit card fraud, phishing, identity theft and other
types of financial fraud. Check
fraud alone accounts for yearly
losses of at least $815 million.
Consumers are robbed of both
confidence and money, which
make a personal impact on
everyday life.
What is the role of DISB's
Enforcement and
Investigation Bureau?
DISB's Enforcement and
Investigation Bureau can investigate allegations of fraud or
unlawful behavior on the part of
insurance entities, securities
firms, agents, brokers, financial
institutions or individuals determined to cheat the system.
When such fraud or abuse is
found, the bureau amasses the
Please see FRAUD on Page S-35
u Financial Literacy $upplement
What Every Consumer Should Know
About Life Insurance
Courtesy of Department
of Insurance, Securities
and Banking (DISB)
Life Insurance Tips by Life
Stage
Many
people-particularly
those with children-recognize
that life insurance can help protect their family financially in
the event of their death. Still,
some delay any action because
of confusion regarding the
amount of insurance needed or
the types of coverage available.
That's why the National
Association of Insurance Commissioners (NAIC,) of which
the D.C. Department of Insurance, Securities and Banking
(DISB) is a member, created
Insure U, a comprehensive public education program to help
consumers with practical information about insurance.
• Young singles who want to
be sure they can get life insurance later in their lives when
they may develop health problems, should consider inexpensive term life insurance that is
guaranteed to be renewable.
• Young families should consider purchasing life insurance
for both parents, even for a
non-working spouse, to help
pay for childcare and other
domestic services.
• Established families should
factor in the probable costs of
their children's college education when determining how
much life insurance they may
need.
• Empty nesters/seniors should evaluate the pros and cons
of reducing their life insurance
coverage based on whether their
spouse is alive, their home is
paid for or their children or
grandchildren are financially
independent.
Understand The Basics
According to the NAIC,
there are three key basics of life
insurance:
1. Start by determining how
many people are financially
dependent on you, what their
major expenses could be and
whether you're likely to leave
them with substantial debts or
estate taxes.
2. Evaluate the two main
types of life insurance: term,
which pays a death benefit if
you die within a specified time;
and permanent life, which provides coverage for your entire
life and typically includes both
a death benefit and the ability
to build up cash value. In general, term insurance is much less
expensive than permanent life.
3. Understand the major factors affecting life premiums.
Some are uncontrollable, like
the age at which you purchase a
policy or whether you have a
serious pre-existing medical
problem. Others are directly
related to behavior, like poor
health habits (e.g., smoking or
excessive drinking,) your driving record or whether you
engage in dangerous hobbies
such as skydiving or bungee
jumping.
All consumers should review
their life insurance policy annually and update it to reflect
major changes, such as marriage, the birth of a child,
divorce or death of a spouse.
You may access the Insure U
curriculum on DISB's Web site
at www.disb.dc.gov (under
“Consumers”.) The information
is organized by life stages and
includes a basic introduction to
the four major types of insurance-auto, home, life and
health. Additionally, there's a
quiz for each stage, so you may
test your knowledge about
insurance topics.
One of the ways consumers
can be hurt financially is by
purchasing insurance from a
fake insurance company. You
can protect yourself by taking
the simple steps of “Stop, Call
and Confirm”-stop before purchasing any insurance policy,
call DISB at 202-727-8000,
and confirm you are dealing
with a legitimate insurance
company authorized to do business in the District of
Columbia.
For more information, please
call DISB at (202) 727-8000 or
visit the Web at www.disb
.dc.gov. WI
Your Life Changes, So Do
Your Insurance Needs
?
How do you know what
insurance is right for you?
Insure U: Life-stage-based Insurance
Young Singles
Young Families
Established Families
Empty Nesters/Seniors
Visit the Department of Insurance,
Securities and Banking Web site at
www.disb.dc.gov or www.InsureUonline.org.
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-15
S-16 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
Standing in the
Gap: Credit Unions
Offer Short-term
Loans at Rates that
Help Not Hurt
Courtesy of MDDCCUA
By an overwhelming majority,
the District's city council voted
last month to close a loophole in
city law that had allowed payday
lenders to charge predatory fees
for short-term loans.
The council approved the bill
on Sept. 18 by a vote of 12 to
one. The legislation introduced
by Councilmember Mary Cheh
(D-Ward 3) and Marion Barry
(D-Ward 8) requires payday
lenders' fees to fall under the
same 24 percent annual percentage rate (APR) that governs
all other financial institutions.
Credit unions had a large role
in securing this win for consumers. In June, the Maryland
and District of Columbia Credit
Union Association (MDDCCUA) testified in support of the
bill and the MDDCCUA board,
as well as credit unions from
across the region, wrote each
council member urging them to
pass the bill.
MDDCCUA argued that payday lenders should have to follow
the same laws that govern all financial institutions and should not be
allowed to charge fees that amount
to more than 400 percent APR on
loans that are typically used by people who can least afford them.
These fees became a ball-and-chain
around borrowers' ankles-trapping
them into using these high-cost
loans over and over again.
“A significant number of
District residents are falling into
the trap of the payday lending
industry, which claims that payday loans are used only for emergencies and occasionally by con-
sumers,” MDDCCUA Chairman J. Wesley Bone and CEO
Mike Beall wrote on Sept. 5.
“Neither is true based on the
experiences as seen by credit
unions. Payday lenders make
significant profits only when
consumers enter the payday
loans cycle and stay within it
obtaining back to back loans
that rack up very high fees and
APRs. The goal of every payday
lender is to capture a consumer
and keep them coming back for
more loans when they cannot
afford to break the cycle and pay
the predatory loan off in full.”
Beall has also advised the
council that “the more than 65
credit unions based in and
owned by District consumers
stand ready to do all they can to
provide a safe and affordable
place to save, as well as a place to
get the loans they need at a fair
price,” he said.
Several area credit unions
already offer low-cost, short
term loans. However, more are
going to sign up to offer payday
lending options to Maryland
and D.C. credit unions. One of
these is the Stretch Pay Loan.
Stretch Pay is a short term unsecured loan that will assist members in realizing their short term
needs while not paying exorbitant interest rates charged by
payday lenders.
The payday lending industry
threw all they had into an
intense lobbying effort but consumers prevailed.
“Credit unions are glad to see the
city council force payday lenders to
follow the law,” Beall added. “At
credit unions, we believe that consumers should end up better off
rather than worse off after getting a
loan.” WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-17
u Financial Literacy $upplement
The Credit Union
Difference
Courtesy of MDDCCUA
“What's the difference between a bank and credit union?”
This is a question consumers
often ask. What they usually
want to know is, “Why should I
bank at a credit union. Is there
something in it for me if I use a
credit union instead of a bank or
check casher?”
The answer is-definitely.
According to a poll conducted
in June by the Maryland and
District of Columbia Credit
Union Association (MDDCCUA,) almost half of all residents of Maryland and the
District of Columbia report
being members of a credit
union, with women and African
Americans more likely to use a
credit union as their primary
financial institution.
The result show that 44 percent of Marylanders and 49 percent of District residents belong
to a credit union. Nineteen percent of Marylanders said credit
unions are their primary financial institution (PFI) while
21percent of District respondents said they primarily use
credit unions. The story behind
what makes credit unions so
attractive is their structure and
their service.
Credit unions are not-forprofit financial cooperatives. We
exist to serve our members, not
to make a profit. Since credit
unions are cooperatives when
you open a credit union account
you actually “join” the credit
union's other members in saving, borrowing and investing.
Unlike most other financial
institutions, credit unions do
not issue stock or pay dividends
to outside stockholders. Instead,
profits are returned to the members in the form of lower loan
rates, higher interest on deposits,
and lower account or ATM fees.
Ownership
Since each person using the
credit union is a member, each
person has equal ownership
rights in the credit union-regardless of how much money they
have in their account. The board
members who help run the cred-
it union represent all the members and have to run for election.
So, if you join a credit union you
help choose who runs that credit union.
Social Purpose: “People
Helping People”
Credit unions exist to help
people, in fact federal law
acknowledges that credit unions
emphasize encouraging people
to save and specialize in serving
people of “modest means.” Our
goal is to serve our entire membership well. As a result, our
members are fiercely loyal and
they know their credit union will
be there for them in bad times,
as well as good. The same people-first philosophy causes credit
unions and our employees to get
involved in community charitable activities and worthwhile
causes.
Credit unions have a long history of helping members
improve their financial situation
and all of the credit unions in
the D.C. area offer some type of
financial education or counseling. This counseling is usually
free and can help you create a
budget, handle debts, and in
most cases clear up credit issues.
Having a process in place to handle these problems lets you pursue longer-term goals such as
getting college education for
yourself or your children and
home ownership.
We are also proud to say that
credit unions' focus on helping
people has also put us in a good
situation to help consumers who
may have been burned by a
high-interest mortgage or auto
loan-or simply fallen into the
debt trap-to get out and get on
with their future.
How do I find a Credit
Union?
Many District credit unions
were originally formed to serve
the workers of U.S. federal government agencies. Credit unions
also generally allow family members of eligible members to join.
So if you become a credit union
member chances are your household members can join too.
Finally, changes to the law
have allowed credit unions to
begin to serve community geographic areas. Therefore, all individuals who live or work in the
District can join one of these
credit unions and they have
begun to open branches and place
ATMs outside of federal government office spaces.
Community Chartered Credit
Unions Serving the District of
Columbia
• Andrews FCU (Andrews Air
Force Base) Ward 8 Community
Branch
• Department of Commerce
FCU
• District Government Employees FCU Adams Morgan, Col.
Heights Branch
• DVA FCU (Veterans Affairs)
G St NW Branch
• HEW FCU
Ward 7 Community Branch
• Hospitality
Community
FCU H Street Corridor NE
• Lafayette FCU (SBA &
USAID Adams Morgan, Columbia
Heights
S-18 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
• Library of Congress FCU
• Signal Financial (Telephone
workers) Downtown business
district ( I St NW)
• Treasury Department FCU
Capitol Hill, NE Branch
More than half of D.C. residents belong to a credit union.
Call your local credit union to
find out why.
For more information contact
the Maryland & D.C. Credit
Union Association at (800) 4924206. WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-19
S-20 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
ing, and it may take years to
recover.
Be cautious with revolving
debt, particularly credit cards.
The ever-present lure of material
goods can create debt that quickly overwhelms you.
Limit the number of cards you
have, and maintain a balance
that’s below the card limits.
Be judicious about when to
apply for credit.
Excessive
inquiries on your credit file could
cause a potential creditor to perceive you as “credit hungry.”
Review a copy of your report
each year. It’s free, and enables
you to monitor for signs of identity theft. You’ll also be able to
see how effective credit management can raise your credit score
over time.
With information about the
different types of debt and by
practicing good credit management skills, a consumer becomes
empowered when it comes to
financial services. They have
more options at preferred terms,
which better positions them to
achieve financial security and
economic success.
WI
Managing Debt
Courtesy of BB&T Bank
The effective management of
debt is now more important
than ever. Clients that develop
and maintain a solid credit rating are able to pick and choose
when it comes to various financial services. This flexibility
enables them to save both time
and money. Conversely, individuals that mismanage credit ultimately pay a steep price. There
are less credit options available,
and those that do exist can be
dramatically more expensive.
While there are certain steps
to follow in managing debt
effectively, it’s important to
understand that not all debt is
bad. The wise use of credit can
put you into a dream home, provide you with transportation to
work, and allow you to enjoy a
weekend on the lake. In general,
debt that’s used to purchase
something of value is considered
good debt. A new home or a
college education are items of
value that rarely depreciate.
Consumers should be cautious when debt is used to
finance goods or services that
can be consumed. In these situations a consumer must assess
whether or not they could otherwise purchase the goods or services. Because it’s readily accessible, this type of credit can be easily abused. As a result, an undisciplined consumer can find
themselves in a deep financial
hole.
With an understanding of
good and bad debt, a consumer
is able to make an informed
decision about when to borrow
money. Once credit is obtained,
they must understand how to
manage their various accounts.
Here are just a few ways to effectively manage debt:
Make your monthly payment
on time. Failure to do so can
severely impact your credit ratThe Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-21
S-22 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
The Best Time
To Buy A Vehicle
Courtesy of Don Ferguson
SmartEdge by GMAC
Christmas time…..Your birthday…..End of the week, month
or year…..When new cars come
out. These are all great answers –
but, I don’t believe that any of
these answers is correct.
In 2006, GMAC facilitated
over 1,000 financial literacy
seminars throughout a number
of high schools, colleges, businesses, churches and other
organizations. Regardless of
where we go, the one question
that always comes up is, “When
is the best time to buy a car?”
I think I will cut right to the
chase and give you what I consider the right answer and the
best time to buy a car – “Before
You Need It.” Sounds interesting
enough – but, does this really
make sense? What about all
those deals you can get at those
special times – wouldn’t that be
the best time to buy? Well,
please allow me to share a short
story.
I have a dear friend that is a
Bishop. Since I cannot use his
name in this article, let’s just call
him Bishop. Some time ago, I
shared my best time to buy a
vehicle vision with him and he
said that really makes a lot of
sense to him. Here is how he
describes it to others.
I went to Las Vegas for a business trip. Since I flew out early in
the day and didn’t have any
functions until later that night, I
opted to be very comfortable in
flight and wore jeans. As I was
getting dressed in my suit for the
evening’s event, I noticed that I
had forgotten my belt – and the
belt for my jeans did not fit. My
lesson here was…..I paid $60 for
a $10 belt in the hotel gift shop.
I got the least expensive one I
could find – and have never
worn it again.
So, why would buying a car –
or anything else for that matter
be any different? You want to
buy when you have the power to
negotiate your purchase. So,
when you need the car – you lose
the edge.
Well Don Ferguson – if my
car is running just fine, why
would I want to invest in a new
car? Great question. Ask yourself this…Self – Is my car worth
more in trade-in value when it is
running fine than it is when it is
not running fine? What about
this one – a young couple,
expecting their first child in 30
days, visits the dealership to look
at a new vehicle. All they want to
do is get the car and get back
home - having again lost the
edge.
OK already – let’s go back to
the basics. These principles will
apply to buying a car, house
and/or any other purchases.
• Determine if your purchase
is a Want or a Need – you should
always plan major purchases like
these.
• Budget for your item – how
much will it cost, how much can
you afford, are you paying cash,
buying or leasing? There is a
great workbook on our
SmartEdge site – www.smartedgebygmac.com – that covers budgets. Take a look at page 32 in the
workbook and complete your
budget. By the way, I have
designed the perfect budget –
anyone that needs this is welcome
to it….but, this is my budget and
will not work for you.
• Once you have established
your budget and have an idea
how much your new vehicle will
cost per month, try to save that
amount for at least three
months. If you can, chances are
you can handle your new payments. If not, you will probably
need to look at a different
model. Don’t forget about the
cost of items like gasoline, maintenance, insurance and other car
costs.
• Now, let’s do a little research
– which vehicle do you like,
what color, what options – see
how they fit into your budget.
It’s time to visit your local
dealership now. The salesperson
can’t sell you a car – because you
are there to buy what you want.
And – since you don’t need a
new car now, you have plenty of
time to negotiate, get what you
want – buy your vehicle when
the right one meets the terms of
your budget.
Bishop, I love you – but,
about that belt…. I hate it.
Whenever I go away on business,
that particular belt is in my suitcase and it goes on every trip
with me.
There is a lot of information
on our web site, www.smartedgebygmac.com – and we
review the four keys to vehicle
financing namely Budgets, Credit, Options and Choices. We
have also linked our visitors to
other financial resource sites that
we believe might be helpful.
Please stop by and visit us – or
them – before you make your
next purchase.
Buy your next vehicle – make
your next major purchase –
before you need the item. You
have the “Edge” and can negotiate a better deal for yourself.
www.smartedgebygmac.com
© 2007 GMAC. All Rights
Reserved. GMAC is a registered
trademark. SmartEdge is a registered
service mark of GMAC.
WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-23
Keys to a
Smart
Financial
Future.
From
GMAC.
u Financial Literacy $upplement
First things first: Establish a budget
If you’re thinking of buying your first vehicle or saving for a future home, create a monthly budget.
Total all bills and expenses. Be sure to consider everything – even the little things. When you know
which expenses can be trimmed, you’ll be in great shape to make adjustments.
Get a running start
Establish a credit history. Start by opening a checking and savings account. Apply for a
gas card or department store card. Build up a good credit record. Then, when it’s time,
see if you can qualify for pre-approved financing at GMACSmartApp.com.
Make on-time payments
It can make all the difference when buying a first vehicle or home. It’s a good
idea to request a free credit report from a credit reporting agency each year and
make sure it’s accurate. Your report impacts both the decision to approve your
credit and the rate you qualify for.
Your first vehicle: Buy or lease?
There are advantages to each and many factors to consider. Your dealer can help you
make an informed decision. So can a visit to SmartEdgebyGMAC.com, where
you’ll find easy-to-understand tips, helpful information and demos.
For more smart financing tips, visit SmartEdgebyGMAC.com.
© 2007 GMAC. All Rights Reserved. GMAC is a registered trademark.
SmartEdge and GMACSmartApp are registered service marks of GMAC.
S-24 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
10
0
1
u Financial Literacy $upplement
The Top 10 Reasons NOT
to Plan for Retirement
A different kind of Top 10 list.
Courtesy of Nicole T. Cole
Centaurus Representative Inc.
You probably read or hear
about some “Top 10” list nearly
every day. But take a moment to
read this one. This list is different, and probably not the kind
of list you'd expect a Financial
Advisor to write.
Reason #10: “I'm too busy.”
I can't tell you how often I
hear this excuse. So many people
want to plan for a better retirement, but they don't have time.
They think they'll take care of it
tomorrow, or the day after that
… and before they know it, several years have gone by. The best
advice I can give you is to stop
procrastinating and start planning today.
Reason #9: “It's too soon.”
I don't know how this happened, but many people have
adopted the notion that you
don't have to start planning for
your retirement until you're
almost there. This is totally
incorrect. The truth is, the sooner you start planning, the better
chance you stand of having the
kind of retirement you want. It's
never too soon. Many people
start planning in their early 20s!
If you're 45-55 years old you're
at the “sweet spot,” you should
definitely create a plan, now.
Reason #8: “It's too late.”
If you're already near or past
your retirement eligibility date,
you may think that whatever
you've got is what you're stuck
with and it's too late to do anything about it. Think again. If
you're unsure of what your
options are, speak to a professional. Even if you've already
retired, it's important to consider how you're receiving income
and how long it will last. It's
never too late to revise your
income distribution strategy.
Reason #7: “I don't need to.”
I've heard this excuse many
times and it always baffles me.
Many people think that because
they've been diligent about contributing to a savings account,
they're all set. While saving for
retirement is good, you also need
a plan for income distribution
once you enter retirement. Are
you certain that what you're saving will be enough? Have you
considered your distribution
plan? What about taxes? What
about inflation? And are you
sure your money will be properly invested? There may be other,
better options for you and it may
prove worthwhile to look into
them.
Reason #6: “I don't have enough
money to get started.”
This excuse seems marginal at
first glance, but there is some
truth behind it. You need to have
money to save or invest money.
However, unless your bills are
exactly equal to or greater than
your net income, you DO have
enough to get started. Starting
small is better than not starting
at all, and if you plan well, you'll
eventually have more to work
with.
Reason #5: “My finances are a
mess.”
This is all the more reason to
seek out an advisor who can help
you sort through and understand your assets. Perhaps you
have a 401(k) from a former
employer that has not been
rolled over, a couple of savings
accounts, a trust from a deceased
relative, some stocks that your
parents bought in your name
when you were younger … a circumstance like this can be confusing, but leaving it as it is
won't improve the situation.
Consider speaking with an advisor who can look at your complete financial picture, help you
to understand it, and help you to
develop a plan to make your
“financial mess” work for you.
Reason #4: “The Government will
take care of me.”
The bottom line is this …
there's a chance Social Security
may not be available when you
retire, and even presuming it is,
it may not be enough to provide
your ideal retirement income.
For those who will be eligible
within the next five years or are
eligible now (i.e., age 62) and
wondering if you should take it
early, what you should consider
before making your decision can
make a significant difference in
your retirement lifestyle - you
don't want to make a mistake
here. If you're planning to retire
on Social Security alone, I would
advise you to create a back-up
plan at the very least.
Reason #3: “Between my savings
and my 401(k), I'll be fine.”
Saving for retirement without
an income distribution plan can
be a mistake. How will you use
that money once you have it?
And while you may think you'll
have everything you're going to
need, have you considered inflation? Taxes? And furthermore,
some people are living past 90.
Will your assets last that long? If
you outlive your income, what
then? It's a good idea to look
ahead and plan lifelong income.
you speak to a qualified
Financial Advisor and set up an
action plan. The sooner the better.
Nicole T. Cole is an Registered
Representative with Centaurus
Financial, Inc and may be reached at
www.u1stfinancial.net/phasefive ,
301-322-8104 or ncole@cfiemail
.com.
These views are those of the
author and should not be construed as investment advice. All
information is believed to be from
reliable sources; however we make
no representation as to its completeness or accuracy. Please consult your Financial Advisor for
further information.
WI
Reason #2: “I don't want to think
about it.”
Many people procrastinate
simply because the thought of
discussing financial matters (or
growing old) is unappealing. I
can certainly understand that.
But consider this … if you bite
the bullet now and put a firm
plan in motion, you may not
have to think about it again for
quite some time.
Reason #1: “I don't know how.”
If you knew everything there
was to know about financial
planning, you'd probably be a
financial advisor yourself. While
it is possible to do everything on
your own, that generally involves
a great deal of research and a
huge time commitment. If
you're putting off retirement
planning because you don't
know how, consider speaking to
a professional who does.
These are just some of the reasons why people don't plan for
retirement … but these are reasons, and not excuses. If you
have retirement goals you want
to reach, I would recommend
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-25
u Financial Literacy $upplement
Southeastern University
Kicks- Off Quadmester
with Financial
Literacy Theme
Recognizing that many college
students lack knowledge about
managing personal finances,
Southeastern University launches its
new academic year on September
24 by focusing each quadmester on
a different theme. The fall
quadmester kicks off with workshops on “financial literacy” hosted
by Southeastern's business management and public administration
departments and sponsored by
Citibank. Southeastern wants to fill
the need for education in this field
and enable students and the community to make financially sound
decisions. Not only will students
learn about topics such as savings,
home buying, and debt, but they
will even have an opportunity to
win cash prizes.
The series on financial literacy
embraces a variety of “real-life” topics. Workshops include: The
Financial Facts Every Woman
Should Know, Home Buying,
Strategies for Paying for College,
Debt Management, Career Transitions and Your Finances, and
Putting Together the Pieces. These
workshops provide students and the
community with insight into the
whole spectrum of financial topics.
One of them, Putting Together the
Pieces, provides attendees with the
tools to put all the little pieces into a
coherent financial plan. All workshops will be free of charge and
open to the public.
Southeastern will also offer a
competition about financial literacy.
After the department of business
management announces a topic a
few weeks into the quadmester, students will be invited to compete by
creating projects in groups. Business
faculty will evaluate and judge the
entries. Attractive prizes of $1,000
(1st prize), $750 (2nd prize), and
$500 (3rd prize) will be awarded to
the best teams.
Dr. Gugu Moche, Dean of
Academics and Faculty Affairs, considers education in financial literacy
as crucial: "While financial literacy
is essential to succeed in life, these
skills are usually not taught in class.
At Southeastern we recognize that
personal finances can have an
impact on whether you land a
career you strive for. Many
employers consider credit scores
when hiring. Our workshops will
ensure that our students are financially fit. This will also add to their
personal well-being."
Talaekah Brooks, chair of the
Departments of Business Management and Public Administration
and founder of the Center for
Entrepreneurship agrees: "Far too
often students leave universities
with a great degree, but also with
high student loans and credit cards
maxed out. Often these students
did not learn how to manage their
finances. This is why my department made it its mission to turn our
students into financial literates and
to give them tools to conquer their
personal financial challenges."
Southeastern's engagement in
teaching students and the community about topics that go beyond the
classroom is a permanent one. Each
S-26 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
of the following quadmesters will
have a special theme. The winter
quad's
theme
will
be
“Entrepreneurial Spirit”. During
this quadmester the University will
emphasize global entrepreneurship
in January. African Americans in
business in the Black History
month, February, and women in
business in Women's History
Month, March. The spring
quadmester will focus on
“Technology: Key to Success”.
Southeastern
University
(www.Southeastern.edu) is a private, non-profit institution of higher learning offering undergraduate
and graduate degrees in business
management and technology, with
a focus on regional economical
development. Founded by the
YMCA in 1879 and chartered by
Congress in 1937, Southeastern has
a history of tailoring programs to
meet the needs of contemporary
businesses in order to provide a
qualified pool of local employees.
Southeastern enrolls approximately
1,000 students, most of whom are
from the District of Columbia, with
others from around the world. The
University is located at 6th and I
Streets in the Southwest quadrant of
Washington. WI
Practical and Career
Focused Degree
Options for Busy
Students of All Ages
Courtesy of Southeastern
University
Tucked into tree-lined streets
in the dynamic Waterfront
neighborhood of Southwest DC,
a small and vibrant private university is making a big difference
in the lives and careers of many
area working professionals and
traditionally-aged college students.
Southeastern University, now
in its 129th year, has always
focused on practical education
for success in the business, nonprofit, and government marketplaces. Today, options for
evening, weekend, and online
study, make managing busy
work and family schedules a realistic goal for both graduate and
undergraduate students.
Some 1,000 students have
embarked on new or continuing
degree studies at Southeastern
this fall quadmester. As four
terms offered each academic
year, quadmesters are 12-week
terms enabling students to complete course work in a focused
and accelerated pace. For example, a graduate student in the
master's of business management program, may complete
degree studies in about 18
months, even if they are juggling
work and family commitments.
Southeastern students frequently mention how they
appreciate the flexibility and
support of faculty at Southeastern. It's not unusual for a faculty
member to hold a small seminar
Please see SU on Page S-33
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-27
Business
Conversion Program
The sign of opportunity is turned on at 7-Eleven.
Convert your existing business to a 7-Eleven® store!
Transform your business with a proven model for convenience retailing success,
the 7-Eleven Business Conversion Program. 7-Eleven is looking for
independent business owner/operators who share our passion for
retailing and serving customers.
If you own a convenience store, a gasoline station with a c-store or kiosk that can
be expanded, a liquor store, delicatessen or small grocery store,
we would like to discuss this opportunity with you.
As an independent business owner, you’ve worked hard to be successful.We respect that.
If you think there could be even more potential in your store and would like to explore
the excitement that happens every day with 7-Eleven’s brand of retail,
we invite you to learn more about the Business Conversion Program.
7-Eleven, Inc. has an aggressive long-term growth strategy. 7-Eleven is interested in
both urban and suburban locations and both gasoline and non-gasoline sites.
If you have sites or stores for sale or lease, please contact
Mark Wise
Vice President, New Store Development
972.828.7531
mwise@7-11.com
For existing business owners interested in the 7-Eleven¤ stores brand and 7-Eleven’s
business system - If you are interested in our BUSINESS CONVERSION PROGRAM,
please contact
Washington DC Area
Bonni Besserer
703.658.8525
S-28 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
Let Us Help You Create Wealth
Own a 7-Eleven
Franchise Through
the Business
Conversion Program
By Brian Gilmore
WI Contributing Writer
Ever since its origins in 1927,
in Dallas, Texas, 7-Eleven has
tried to remain at the forefront
of the evolution of the American
convenience store. And now
with the development of its
“Business Conversion Program,”
7-Eleven is showing again that it
will make moves that are innovative and will benefit entrepreneurs interested in a partnership
with 7-Eleven.
Back then, in 1927, 7-Eleven
was called Tote-M since customers 'toted' away their purchases. The stores only sold ice
in those days but then a store
employee began selling necessary
items like eggs, milk and bread
on Sundays when grocery stores
were closed.
In 1946, the store names were
changed to 7-Eleven (they were
open from 7:00 am to 11 pm,)
and now 60 years later, there are
over 30,000 stores worldwide,
and more than 7,100 7-Eleven
and other convenience stores...
operated and franchised by 7Eleven, Inc. in North America.
The stores serve “six million”
people daily and, of course, this
includes much more than eggs,
bread and milk. There is now
fresh fruit, lunchtime sandwiches, fruit cups, beef patties, wellstocked coffee stations, not to
mention the Big Gulp, and
Slurpee drinks.
The Business Conversion
Program is more of that novel
approach. One franchiser described it as “pioneering” way of
“opening more 7-Eleven stores
in non-tradition locations.”
Initially, the program has been
tested in states like New York,
New Jersey, and California, but
now it has come to the
Washington D.C. area and is
ready to roll.
In a nutshell it is this: 7Eleven simply offers existing
business owners an opportunity
to “convert” their existing business into a 7-Eleven franchise
with 7-Eleven products and services. The business might be a gas
station, liquor store or grocery
store. The owner of the store will
simply convert the business to 7Eleven in total.
“You will not even know the
difference,” stresses Troy Mc
Williams, Regional Market
Manager for 7-Eleven in the
Washington D.C. area.
McWilliams is talking about
the fact that the program will
allow the business to essentially
become 7-Eleven stores with the
same familiar products, logo, and
services.
The program was rolled out in
full this past summer after extensive testing in a few states to “get
the kinks out.” McWilliams predicts that by the end of the year,
converted businesses will appear
in the Washington D.C area
through the program. There are
already 500 stores here in the area;
there are now about 15 converted
businesses already nationwide. 7Eleven uses the same approach
with the conversion program as it
does with its franchising program.
“If we think your location is
good, we will make a significant
investment to provide your store
with the products, services and
image today's convenience customer expects, and which direct-
ly impact store performance,”
McWilliams explained.
The renovation of your store
will include equipment such as
our coffee bar, roller grill and
Slurpee® machine. Our Retail
Information Technology gives
you unprecedented capability in
monitoring and managing
inventory,” says McWilliams.
The person will have to be
qualified and this process may
take four months or more to
complete. Factors impacting the
timeline include, but are not
limited to: (1) your motivation
and ability to furnish all documents required, evaluating all
franchise candidates, sites considered for conversion and your
store's business performance and
(2) the scope of the work
required to remodel your store.
It is a win-win for everyone.
The businessperson converting
gets a new business. 7-Eleven
invests capital but not what it
normally has to invest.
McWilliams estimates that to
build a store from the ground up
costs $1.5-4 million depending
on the area and type of store i.e.
gas or non-gas. This is because of
the nature of a 7-Eleven operation.
“Traditionally, in a 7-Eleven
Franchise, we own everything
except the merchandise,” he
says. “The conversion program is
just the opposite.”
In that respect, McWilliams
also believes the program provides a degree of flexibility.
For instance, he points out
that people who own land could
benefit from the program as they
can offer their land for conversion into a 7-Eleven business.
Thus, someone who is just sitting on some unused land in a
good location can immediately
turn that land into a successful
enterprise simply by becoming
part of the Business Conversion
program.
It is just one of many ideas
that will likely emerge as the
Business Conversion Program
expands business opportunities.
WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-29
u Financial Literacy $upplement
Photos by Roy Lewis
Couple’s Successful
7-11 Franchise
Serves U Street
Area 24-7
By Brian Gilmore
WI Contributing Writer
In Washington D.C.'s historic
U Street corridor, one of the big
success stories of that developing
and changing community is the
story of David and Nayola Allen.
The Allen's have been the franchise owners for the 7-Eleven
store at 1115 U Street N.W.
right in the heart of the community for five years now. They are
not only successful businesswise,
but they have become an important part of the community's
changing demographics, as they
are African-American franchise
owners.
It all began a few years ago
right
after
the
9-11
disaster.David Allen was downsized from the tech company
where he worked, and he and his
wife, financially astute and ambitious, decided to make what
they now call a “decent decision.” That decision was to purchase a 7-Eleven franchise,
something his wife was all for as
well, notes Allen.
“It all came together around
that time,” says David Allen.
Allen had first set foot in a 7Eleven 30 or 40 years prior to
that time, and his memory of
that first visit was still there for
him. The decision to invest in 7Eleven also was aided by the fact
that he and his wife were perfect
5 David and Nayola Allen with Lloyd Price (center) announcing that their store is the hub store for Lawdy Miss Clawdy products.
franchise candidates: they were
capable of running a business,
had some savings, could pay the
franchise fee, and were more
than comfortable with computers, a critical skill in the 7-Eleven
world.
“7-Eleven has a great computer inventory system,” he says, “it
is yet another thing that attracted me to the partnership.”
According to Allen, the inventory system offered by 7-Eleven
to its own employees and the
franchisers simplifies inventory
and makes a stock room essentially unnecessary. The system
keeps your store properly running on automatic pilot to a
degree because the system provides the store operator exactly
what he or she needs each day.
David and Nayola dove right
in once their decision was made.
They wrote a great business plan
and then began to develop their
own business practices to make
their store work well.
Yet, something else occurred
during this entire process that is
important to the city and the
community where they do business now. The Allen's specifically chose the U Street location for
Come Visit
5 Both David and Nayola give customers full service attention and the store customers appreciate it.
David and
Nayola Allen
at 7-11
12th and
U St NW
Try our
Lawdy Miss
Clawdy
Products
S-30 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
their store. It was a bold move
considering how volatile U
Street was in those days in terms
of businesses opening and closing.
“We actually decided to come
down to U Street,” says Allen,
“there is just something about
the area, something that is
great.” Of course, the area has a
past steeped in AfricanAmerican history that is immediately obvious once someone
spends a little time in the neighborhood. The area also still
maintains a sense of community
despite the fact that it has
expanded so rapidly.
“We wanted to create a friendly store, a place where people felt
comfortable,” Allen said.
Part of that friendliness can be
found in a business practice
developed by the Allen's that
quickly spread to other 7-Eleven
franchises in the area. The
Allen's hired a specific individual
to maintain the all-important
coffee station at critical times of
the day. This practice has proven
to be crucial to the success of the
store. It also makes the public
feel welcome all the time.
Of course, the Allen's feel they
have such a good thing at the
store, they are eyeing the future
carefully.
“If we can do it, we are trying
to get other stores,” says David
Allen.
Judging by the daily traffic
moving in and out of the well
organized 7-Eleven store at 1115
U Street N.W. in Washington
D.C., one cannot help but to
believe that David Allen and his
wife, Nayola Allen, will achieve
this goal too before
any of us can even
blink. WI
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-31
u Financial Literacy $upplement
Credit theft on
the rise: Are you
protected?
Courtesy of Tiffany
Tippins
Member, Association of African
American Financial Advisors
Founded in 2001, the Association of African American Financial Advisors (AAAA) is a national 501(c)3 organization.
For more information, call 301-961-1507 or visit www.AAAFA.org
As technology evolved over
the past decade, so has the availability to one's personal information. Today, it only takes a
push of a button to get your
neighbor's phone number,
address and now personal credit
information.
In 2003, the Washington DC,
MD, VA & WVA areas were
ranked number one among the
nation's top metropolitan areas
of credit theft with Baltimore
not far behind ranking ten out of
twenty six reported areas.
One way to avoid becoming a
victim of credit/identity theft, is
to check your credit report each
year. Maryland is only one of
five states that offers a free credit report to it's residents from
each of the three major credit
bureaus in the country. Equifax
(800-685-1111), Experian (888397-3742) and Trans Union
(800-888-4213) are the most
widely used credit reporting
agencies among borrowers and
lenders and offers the most accurate information compared to
thousands of other credit reporting agencies.
Once you receive your credit
report, review it carefully to
make sure there are no errors.
The smallest detail such as an
improper spelling in a name, an
added middle initial or a wrong
address can be a sign of someone
tampering with your personal
information. Minor mistakes
could also be a sign of human
error. Millions of other consumers, just like yourself, may
have their information input
into the credit bureau's system
that may have the same name or
similar social security number.
These similarities can cause mass
confusion if they are not detected early.
Attached to the credit report
will be a separate page to correct
errors. Once you complete the
forms and return them, the credit reporting agency has thirty
days to investigate your complaint and get back to you. For
best results, you should conduct
your own investigation by contacting the lender directly to
S-32 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
resolve the problem. A photo ID
and proof of signature maybe
required of you to resolve the
matter faster. However, you have
the right to request any credit
card statements mailed and
proof of signed receipts of the
person who forged your signature from the lender. This information could be used in court if
necessary.
Once the problem is resolved,
make sure the lender sends a letter to each credit bureau requesting to remove the error. Also
keep any documentation the
lender sends you on file just in
case the same issue appears
again. Protect yourself from
becoming a victim and check
your credit reports today!
To receive additional information on credit protection call
(301) 933-9343!
R e f : w w w. w h i t e h o u s e .
gov/omb/inforeg/msa99.pdf
Tiffany Tippins/ Financial
Planner
LSE Financial Group
(301) 933-9343 or tippinsT@
financialnetwork.com WI
u Financial Literacy $upplement
SU continued from S-27
with just a few students in order
to assure requirements can be
met for a student's projected
graduation date. In addition,
faculty members are enthusiastic
about the small class sizes at
Southeastern, which enable
mentoring, academic support,
and even career advisement.
With an average of no more than
15 students in a class, coursework can feature small group
work, multi-cultural exchange,
and flexible options that facilitate participation in such programs as the international business strategy game.
Business Students Compete Globally
This global project is integral in
virtually every MBA program capstone course. Most students worldwide take part in the practical exercise of forming teams to run an
imaginary business. However, the
mythical company takes on realistic work proportions as students
apply their imaginations, analytical
skills, and business acumen to
compete in a fictitious but relevant
global marketplace.
Prof. John W. Milton, who
teaches the capstone course,
explains the excitement of the
game: "Managing the many
complexities of today's global
business is an enduring rollercoaster ride of a lifetime for
the CEOs [students participating in the game] and faculty."
Southeastern
University's
spring 2007 participants proved
successful as one company was
ranked second place for three
weeks and received six entries in
the Global Top 25 Awards. All
teams revealed their winning
strategies at a final round of presentations in June.
The business strategy game
has been the hallmark of capstone courses world wide for several decades, with over 140,000
teams participating last year.
More than 2,000 teams participated during August 2007. The
company “Bouncing Active
Shoes”, managed by MBA
Marketing student Ricarda
Dhossou, ranked five times
among the best four companies
in the Global Top 25 Awards
and received an additional entry
in the Top 25.
Degree Studies for Fields Seeking the
Nest Generation of Experts
Other exciting degree options
at Southeastern are preparing
students for fields in which the
demand for experts is high.
The health services professions are supported by both
undergraduate and graduate students from Southeastern. At the
Center for Allied Health
Education, located at Greater
Southeast Community Hospital,
students may enroll in associate
degree programs to prepare for
careers as medical secretaries,
medical assistants, cardiovascular
technologists, or medical coding
and billing specialists. These
programs may also apply to continuing studies in health care
administration.
In the Liberal Studies Department, degree-seeking students in
child development are finding
their qualifications are matching
the professional requirements for
certification in this growing
field. Southeastern offers both
associate's and bachelor's degrees
in child development.
Meeting the region's needs for
government employees, South-
eastern's government management majors discover a variety of
career options with degrees in
the Public Administration
Department. In addition, the
need for professionals in the
many nonprofit organizations
and associations in the District
and region leads many students
to consider other program
options in Public Administration.
Computer science and information technology degrees are
offered at both the undergraduate and graduate levels, serving
many career changers who are
seeking more applicable skill sets
in the fast-changing technology
market place.
Throughout the curriculum,
online study is another convenient way to accelerate studies and
to move at one's own pace.
Business management is just one
of the many degrees that may be
earned online.
An array of certificate programs are offered year-round at
Southeastern's Center for
Entrepreneurship. Specialties
include entrepreneurship, property management, real estate
development, and web develop-
ment, among others.
For details on the opportunities that enable Southeastern
alumni to forge new career and
financial options, visit www.
Southeastern.edu. Admis-sions:
202-COLLEGE or admissions@seu.edu. Center for Allied
Health Education: 202-243-7460
or Tory Tanner at ttanner@seu.edu.
The Center for Entrepreneurship:
202-478-8231 or entrepreneur
@seu.edu. WI
www.washingtoninformer.com
It’s all
about you!
Bringing you positive news about our communities from our perspective.
The Metropolitan Årea’s Award Winning Weekly Newspaper
Contact Ron Burke, Advertising Manager
202-561-4100 or
rburke@washingtoninformer.com
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-33
u Financial Literacy $upplement
Seven Steps to
Increasing Your
Income
Courtesy of Nadine Maye
President, SpiritWorks Unlimited,
Inc.
How can you keep up with
the rising costs of your basic
needs- food, clothing and shelter? Just think, in 1964, you
could buy a four bedroom house
with two baths for $16,000. A
brand new Ford Mustang cost
$2,358. Tuition at Harvard for
one year was only $2,400. This
was just 43 years ago. What do
you think the next 43 years will
bring?
Historically, prices for our
basics needs have always
increased.
Our incomes however, have
not kept pace. Now is the time
for us to take full responsibility
for our financial future.
Following these seven basic
steps will help you thrive, in any
economy.
1. Put God Ahead of Your Money.
As Jesus said, “Seek first the
kingdom of God and his righteousness.” All of the good stuff
is in the kingdom, peace, joy,
love, happiness, faith, kindness,
Foundation”.
a. Increase your credit score.
This allows you to save money
by getting the best rates when
you borrow.
b. Eliminate, not consolidate
your debt. By following a disciplined plan, debt, including
your mortgage, can be paid off
in 7-12 years.
c. Pay only your fair share of
taxes. This is the biggest hit
most people take every two
weeks. Learn how to pay what
you owe and no more. After all,
you should be the one who
chooses how to spend your hard
earned money, not Uncle Sam.
patience, self-control And wisdom. Getting and staying connected with your Higher Power
will help you make wise choices
with your money.
2. Intend to be a Wise Money
Manager.
A lot of people have emotional or psychological blocks when
dealing with money.
For some, the mere thought of
managing money is frightening.
Negative programming contributes to this mindset.
Let's face it, we've all done
some foolish things with money.
It's not the end of the world,
and thankfully, programming
can be changed. Honestly,
examine what happened, learn
from it, pick yourself up and get
back in the game.
Money is a tool, just like any
other tool. Anyone who truly
has the desire can learn to master
money. Choose to reprogram
yourself now, and affirm, “I am a
Wise Money Manager.”
3. Distinguish Wants from Needs.
Our basic needs are food,
clothing and shelter. If your current income allows you to buy a
6. Invest.
As you save money and eliminate your debt, begin to invest in
an asset. An asset is an instrument that will produce income.
Assets include real estate, stocks
and bonds, and businesses. This
is very important, because you
do not want to unwisely spend
the money you have saved and
get back into debt again.
$500,000
home,
TWO
Mercedes' and dine on filet
mignon, go for it. However, if
your income is $40,000, this
would not be a wise thing to do.
It's better to start where you are,
and grow your income so you
can comfortably afford this type
of lifestyle.
4. Organize Your Money.
Many of our clients come to
us wanting to increase their
income, but their papers are all
over the place. As one of my
financial mentors says, “Do
paperwork or stay poor.”
Major money will not come
into a messy environment. If by
chance it does, trust me, it won't
stay long.
Balance your checkbook, file
your bank statements and other
important papers, and establish a
system to track your monthly
income and expenses. Remember, order is the first law of
the universe.
7. Read and Educate Yourself.
This is no longer optional.
Remember, you are taking full
responsibility for your financial
future. There are lots of books,
audio programs, and workshops
where you can gain valuable
information about money.
Consult professional advisors.
Please, be sure to consult your
“Higher Power” to help you
choose wisely.
5. Save Money.
This is where we start with our
clients. We call this “The
Money is important. As motivational speaker Zig Ziglar says,
“money may not be the most
important thing, but it's right up
there with oxygen.” It allows us
to take care of our basic needs.
It also allows US to do fun,
things like travel, dine out, and
enjoy recreational and social
events. It allows us to contribute
to worthy causes.
Learning how to use this basic
tool called money means we can
also leave a legacy of financial
mastery to our children, and
generations unborn. That in A
and of itself is worth us making
the commitment now to learn
about money.
Nadine Maye is President of
SpiritWorks Unlimited, Inc., a
Spiritual
and
Personal
Development Company. They
conduct workshops and classes for
individuals, groups and organizations in the areas of relationships,
career, health and money. For
more information, call (240) 2100616 or visit www.spiritworksunlimited.com WI
S-34 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement
u Financial Literacy $upplement
McCANN continued from Page S-5
URBAN TRUST continued from Page S-4
offer Paper Trading accounts.
Paper Trading accounts are virtual
brokerage accounts that allow you
to trade money in the stock market while experiencing the loss or
gain of the market without losing
real money. Paper trading can
allow you to get your feet wet in
stock investing with the safety of
not losing real money.
You are not going to find anyone more concerned about your
financial future than you. So it
is critical to become an educated
investor even as it relates to
stocks. There is plenty of money
to be made in the stock market.
With the proper education, you
too can make the stocks part of
your investment portfolio.
Cinnamon McCann is the
founder of FinancialFashion
House.com, a financial education
website for women. She may be
reached at www.financialfashionhouse.com. WI
Companies, a diverse portfolio of
companies in the financial services, asset management, real estate,
hospitality, professional sports,
film production, and gaming
industries.
For more information on
Urban Trust Bank, visit
www.urbantrustbank.com or call
toll-free 1.800.584.0015. Hours
of operation are Monday through
Friday, 9:00 a.m. to 7:00 p.m. and
Saturday 9:00 a.m. to 4:00 p.m.
WI
FRAUD continued from Page S-14
Investigation Bureau
Will NOT Do?
evidence and turns it over to the
United States Attorney for prosecution. It enforces the D.C.
Insurance Fraud Prevention and
Detection Amendment Act of
1998 and Subchapters V and VI
of The Securities Act of 2000.
Also, it enforces all D.C. banking laws.
How can you help the
Enforcement and
Investigation Bureau in its
Battle Against Fraud?
The bureau only investigates
suspected or alleged fraudulent
and criminal insurance, securities and banking activities. We
need your help in the fight
against these serious crimes. If
you suspect financial-service
fraud, or if you have become a
victim, please report it to the
bureau as soon as possible. Any
person reporting financial-service fraud in good faith is
immune from civil liability. That
means that no one can take any
adverse action against you for
reporting what you reasonably
believe or suspect to be fraud.
Your report is confidential. The
bureau works on referrals submitted by the insurance, securities and banking industries,
other regulatory agencies, law
enforcement agencies, and, most
important, private citizens.
Courtesy Photo
Advertise your
small business on our
Professionals Page!
Contact Ron Burke at
rburke@washington
informer.com
or call 202-561-4100
Because there are other investigative or regulatory agencies,
DISB does NOT investigate
fraudulent activities in the following:
• D.C. Government Employee-Related Insurance Benefits
and Fraud
• Medicare Fraud
• Social Security Fraud
• Medicaid Fraud
• IRS Fraud
The District's Fraud
Awareness Week
DISB joined the Executive
Office of the Mayor in support-
5 City officials celebrate opening of Urban Trust Bank in the District of Columbia.
ing the District's Fraud
Awareness Week, from July 22 to
28, 2007. Each year, DISB uses
a week in July to educate consumers and businesses about recognizing various types of financial-service fraud protect themselves and fight against it.
Any District resident needing
more information on fraud or to
report suspected fraud, should
contact DISB at (202) 727-8000
or its Enforcement and
Investigation Bureau at (202)
727-1563. Visit its Web site at
www.disb.dc.gov. Alternatively,
call the Fraud Report Hotline
(co-sponsored by the National
Insurance Crime Bureau) at
(800)-835-6422. WI
Which investigations
the Enforcement and
The Washington Informer 2007 Financial Literacy Supplement / October 11-17, 2007 / S-35
S-36 / October 11-17, 2007 / The Washington Informer 2007 Financial Literacy Supplement