A: Your financial institution is correct: The Federal Reserve Regulation D: Part 204 – Reserve Requirements of Depository Institutions does, indeed, limit transfers to “no more than six transfers and withdrawals, or a combination of such transfers and withdrawals, per calendar month or statement cycle.” (http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=a120eeb205207795798b710e9c502b29&rgn=div5&view=text&node=12:2.0.1.1.5&idno=12). The National Association of Federal Credit Unions sent the Federal Reserve Board a letter Mach 28, 2008 (http://www.nafcu.org/Content/NavigationMenu/Legislation_Regulation/Regulation/NAFCU_Comment_Letters/2008_NAFCU_Comment_Letters/NAFCU'sCommentsonDocketNoR-1307_RegulationD.pdf) recognizing the changes in the ways customers do their banking and requesting changes to Reg. D, including increasing the limit on savings account transfers. It would actually take an act of Congress to change Reg. D, however, and that hasn’t happened yet. The Office of Thrift Supervision issued a Regulatory Bulletin (RB 37-33) March 26, 2009 (http://files.ots.treas.gov/74850.pdf) keeping the restrictions intact. It may not be much consolation – but at least you know financial institutions ARE requesting changes to Reg. D to better fit the needs of their customers’ banking habits.

A: This is a bit out of our area – and unfortunately this is a question with a complicated answer that would be specific to your neighborhood, your home, your budget and more. You should contact a licensed Realtor. You may want to start with the Snohomish County-Camano Association of Realtors: http://www.sccar.com/consumers/brokerlist.cfm. There are several members in the Arlington area for you to choose from. These professionals follow current market trends, understand specific dynamics in various neighborhoods/regions and types of homes. There are simply so many variables in the equation, you’re going to want to make sure you have a licensed professional who has had successful experience with this type of situation. When you get ready to do your remodel, make sure you shop around and work with a licensed professional to do the work. VERIFY the license BEFORE you make any agreements, BEFORE work begins and BEFORE you make any payments. You can start at the Washington Department of Licensing: http://www.dol.wa.gov/listoflicenses.html#p. The person you hire may be licensed through another agency, but that list is a great place to start. The Department of Labor & Industries has a Web site just for homeowners preparing to hire contractors, too: http://www.lni.wa.gov/TradesLicensing/Contractors/HireCon/Checklist/before1.asp. The site will walk you through the various steps and processes you need to be aware of. Good luck with your remodel!

A: Thank you for addressing this subject. In today’s economy, so many people are desperate to find ways to reduce monthly payments they are often lured into debt reduction or avoidance programs that may actually do more damage than good. For this question, I’ve asked our partner Dani Small, Tacoma Goodwill Financial Education Program Manager, to offer her insight. Goodwill’s programs offer valuable financial education to hundreds of Washington residents every year – often with resounding success. First and foremost, you need to be aware of what collection agencies can and cannot do — get yourself familiar with the Fair Debt Collection Practices Act of 1978 (http://www.fdic.gov/regulations/laws/rules/6500-1300.html). Collection agencies can make settlement offers and/or payment arrangements but can also demand the payment in full. When speaking with collection agencies, here are a few things to know; 1. A positive attitude throws them off their game 2. Everything is negotiable (within reason) 3. Never acknowledge a debt unless you know it is yours 4. Get everything in writing to avoid any “he said, she said” later on 5. Send any correspondences, especially payments, certified mail with a return receipt 6. Write down the name, employee number, company, and telephone number of anyone you speak with 7. NEVER agree to a settlement offer or payment arrangement you cannot keep 8. Stick with your statements Negotiating with a collector can be tricky business when doing it on your own. Be prepared to pay taxes to the IRS on the debt forgiven. Also be prepared for a lower FICO score because in the end, you altered what you agreed to.

A: According to the Federal Trade Commission, the federal Fair Credit Reporting Act (http://www.ftc.gov/os/statutes/fcradoc.pdf) promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. It is a consumer’s responsibility, however, to verify the accuracy. You have to request corrections to the information in your credit report, and you have to do so in writing. You can only request removal of items that are inaccurate. The FTC’s consumer Web site http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm explains the required process in detail, and adds: “If an investigation doesn’t resolve your dispute with the consumer reporting company, you can ask that a statement of the dispute be included in your file and in future reports. You also can ask the consumer reporting company to provide your statement to anyone who received a copy of your report in the recent past. You can expect to pay for this service.” After taking the required steps for credit report dispute resolution, if you still wish to file a complaint, you can start with the Federal Trade Commission and their “Complaint Assistant” (https://www.ftccomplaintassistant.gov/) – an automated form program that will ask you a series of questions and your answers will be recorded, creating and filing the complaint.

A: Unfortunately, there is no single or simple way to verify the financial status or health of banks or credit unions. After speaking with our Division of Banks Director Brad Williamson and Division of Credit Unions Director Linda Jekel about the matter, here’s what I can offer: Your best bet is to refer to the institution's audited financial statements which are often available on a bank’s Web site (visit http://www.dfi.wa.gov/banks/list.htm for a list of banking institutions in Washington State and http://www2.fdic.gov/idasp/main_bankfind.asp for the FDIC search for bank details and reports). Credit union financial statements and financial ratios are available each quarter at http://www.ncua.gov/IndexCUQuery.htm. These audited statements contain a lot of data which is independently verified by the auditor. Additional bank information can be gathered from the FDIC Web site (http://www2.fdic.gov/Call_TFR_Rpts/index.asp) which contains quarterly regulatory filings with comprehensive financial data called Call Reports and Uniform Bank Performance Reports. Both of these reports contain information regarding a bank's loan portfolio along with many other specifics that people may be interested in. Keep in mind that there are more factors beyond the financial numbers to determine an institution’s health. For example, the quality of management is a key factor on whether an institution can reverse its deteriorating financial trends. Finally, you could check out third party rating services, several of which are shown on our Web site at http://dfi.wa.gov/banks/rating-services.htm. We do not vouch for their accuracy, however, as they are an independent source of information that can be used to gauge and institution’s condition. Two of the most frequently used are www.bauerfinancial.com and http://www.bankrate.com/. Ultimately, it is impossible for any individual to find out whether a bank has made “bad loans.” There are several indicators, however. A depositor may want to watch the trends in delinquency, charge-offs, funding the allowance for loan and lease losses, and increasing its net worth.

A: DFI is lucky to have many partners who work with folks in this situation. I’m including answers from two. Elizabeth M. Myntti is the Program Manager for Career and Family Development and Asset Services for the Lower Columbia Community Action Program (CAP). She says: “Opening a checking or savings is usually not dependant on your credit history or report, but whether or not you have a file with ChexSystems. ChexSystems is a reporting bureau for those who have had NSF (Non Sufficient funds) reported on their account activity. Normally not reported for 30 days. If someone has a negative report in ChexSystems, each financial institution has different criteria for having a second chance at banking. Most require the report be over two years old, with no new reports and that restitution has been made to the financial Institution reporting the loss. With The Bank On Initiative, and the attempt to re-engage citizens in safe, secure traditional banking products, The Bank On Partners have established new guidelines. In our community each partner has different guidelines. Some require at least six month to one year since NSF charge. Other require completion of a Financial Education course, with the intent that this account holder has learned the appropriate and responsible way to use this account. Thus the answer being is to check with local banks and credit Unions and inquire whether or not they offer a "Second Chance Banking" product.” Our second partner response is from Jerry DeGrieck, Seattle’s lead for Bank on Seattle-King County (www.everyoneiswelcome.org), a collaboration with 22 banks and credit unions and 40 community partners working to open accounts for people who are 'unbanked'. Jerry also is the City's lead on the Seattle-King County Asset Building Collaborative, a coalition that oversees several initiatives to help people to acquire, keep and grow their financial assets. He says: “First, take the steps you can to improve your credit. There are non-profit organizations that provide credit counseling and credit repair services. You can also take advantage of free financial education classes that can help you manage your money. Second, go to a bank or credit union. Let them know about your credit history and what you're doing differently now. Ask them what type of account you would be eligible for. Financial institutions have different policies so just because you're turned down by one doesn't mean you won't qualify for an account at another institution. Also, some financial institutions offer an account for people with poor credit histories. You may not have access to checks and ATM/debit cards right away, but you can establish yourself as a dependable customer.”

A: This is a great question for this time of year! I’ve asked one of our financial education partners to answer this one, as it’s something her organization has experience with. - Barbara Gorzinski, Pierce County Asset Building Program Manager, says: Last year the IRS began allowing taxpayers to split their refunds into up to three accounts by direct deposit. A refund may be split to deposit some in a checking account and some a savings account or even into retirement savings. The taxpayer controls the choices. This is a convenient money management method for taxpayers who want to combine the power of direct deposit with personal financial savings goals and still keep some of the return to spend. In order to allocate the split and designate the accounts, a taxpayer needs to complete Form 8888 with their return. The Volunteer Income Tax Assistance sites and AARP's TaxAide program volunteers are all trained to assist taxpayers to complete their returns, including a split refund and electronic return filing -- all for free. We all know that automatic payroll deposits into savings and retirement are the easiest way to build savings because the employee doesn't tend to miss it if it's already deducted from the paycheck. Split refunds operate the same way -- you don't see it, don't miss it, but it's working for your goals by building savings that turns into a real asset.

A: Julie, Thank you for allowing us to reach out to Washington residents through your paper's Web site! In talking with folks at outreach events, I hear a lot of questions about homeownership: refinancing, loan modification and foreclosure prevention. We also get quite a few questions about what to do when one gets laid off from a job. And we talk to people of all ages about how to dig out from under their debt load — when it’s appropriate. To help connect Washington residents with the information they need to make informed decisions on these matters, we’ve created a few Web sites to get them to the information they need. www.homeownership.wa.gov has detailed information about homeownership and links to organizations that can help with specific situations. The state currently provides counseling for homeowners seeking foreclosure prevention assistance. The key is to ACT NOW before it’s too late. Go to the Web site and get in touch with a counselor near you. Contact your lender immediately and start working on solutions before you lose your home. Be cautious, however, as con-artists and scammers often prey on those desperate to keep their homes. Make sure you work with a licensed professional, and be wary of people or organizations requiring large amounts of money up front for services. If you or a family member have lost or are about to lose your job, go to http://dfi.wa.gov/financial-education/job-loss-resources.htm and start looking for ways to cut your household expenses now. Talk to your employer about what you need to do with your 401K to ensure a tax-free rollover and don’t touch it unless you absolutely have to! Cut the cable, expensive cell phone plans, reassess your insurance plans, clip coupons, eat at home, find free forms of entertainment for the family and involve the whole family in finding creative ways to save money. Make sure you have a family discussion about the situation, about the family finances, and involve everyone in creating a workable budget the whole family can stick to. It’s important that your kids see you being responsible with money and be involved in helping the family succeed financially. Visit http://dfi.wa.gov/financial-education/parents-economic-discussions.htm for tips on how to talk to your kids about finances in tight times. With 1 in 10 college students dropping out due to debt load, a near-negative national saving rate and credit companies increasing interest rates and reducing credit limits, it’s more important than ever to keep a close watch on your debt load and get it down to a manageable amount. Visit http://dfi.wa.gov/consumers/education/credit.htm for tips on how to tame your debt dragon and maintain good credit. Though it may not be appropriate to put large amounts of your family finances toward paying down debt if you don’t have an emergency fund or are facing unemployment, for many Washington residents, getting rid of debt should be a priority. Knowing what’s on your credit report (www.annualcreditreport.com) and keeping your credit score high is important, too, since your score is often a factor in determining employment, insurance rates, cell phone plans, rental approval and more. The President’s Advisory Council on Financial Literacy has some great tips at http://www.treas.gov/offices/domestic-finance/financial-institution/fin-education/support-docs/did-you-know-122008.pdf as does the National Credit Union Administration (NCUA) http://www.ncua.gov/FinancialEducation/. We at DFI want to help Washington residents get the information they need to make sound financial decisions that ultimately lead to personal financial freedom. We’re here for you, don’t hesitate to contact us!

A: Thank you for asking this question. I think it’s one weighing on the minds of many Washington residents. In general, if you bank at a Federal Deposit Insurance Corporation (FDIC)-insured bank or National Credit Union Share Insurance Fund (NCUSIF)-insured credit union and you have less than $250,000 at the institution — your money is safe. Insurance varies depending on the type of account, so you’ll want to talk to your financial institution to make sure your deposits meet the insurance requirements. If you have more than $250,000 at a single institution, you will want to talk to your financial institution about structuring your deposits/investments so they meet the FDIC/NUSIF requirements for full coverage. After Dec. 31, 2009, most deposit insurance coverage will be reduced to $100,000. It’s a good idea to talk to your financial institution now and make sure you’re fully covered when the change takes effect. Find out if your bank is FDIC-insured by visiting www.FDIC.gov/bankfind or by calling toll-free 1-877-ASK-FDIC. Details on FDIC coverage can be found online at: http://www.fdic.gov/deposit/deposits/index.html. They’ve even provided pamphlets and videos on the topic! The FDIC offers an online Electronic Deposit Insurance Estimator (EDIE) that walks you through whether your deposits are fully-insured or whether you need to restructure your deposits: https://www2.fdic.gov/EDIE/ or you can call 1-877-ASK-FDIC. Details on NCUA insurance can be found online at: http://www.ncua.gov/shareinsurance/ or you can call 1-800-755-1030. The NCUA insurance estimator is online at http://webapps.ncua.gov/ins/. And for some peace of mind, know that since the creation of the FDIC insurance and NCUSIF insurance, no fully-insured depositor has ever lost a penny!