Latest news with #financialprotection
Yahoo
5 days ago
- Business
- Yahoo
How to Limit Medical Debt's Impact on Your Credit
Planning Medical expenses Credit - Getty Images For the millions of Americans struggling to pay off the costs of expensive medical procedures, the looming debt is accompanied by another threat: that the unpaid medical bills could drag down their credit scores, making it harder to get a credit card or buy a home or car. And now a rule that would have addressed that issue will no longer be going into effect. In the final days of President Joe Biden's term, the Consumer Financial Protection Bureau (CFPB) issued a rule that would have removed medical debt from credit reports. The goal was to 'reduce the burden of medical debt and ensure that patients are not denied access to credit for home mortgages, car loans, or small business loans due to unpaid medical bills,' according to the White House press release at the time. But under the Trump Administration, the CFPB flipped its stance on the rule, which had not yet gone into effect. And on Friday, a federal judge, who was appointed by President Donald Trump, vacated the rule, stating that it exceeded the CFPB's authority under the Fair Credit Reporting Act. Roughly $88 billion of unpaid medical bills are in collections across the U.S., according to the CFPB, which estimates that the issue affects about one in five Americans. JoAnn Volk, a research professor and co-director of the Center on Health Insurance Reforms at Georgetown University, says the judge's ruling 'eliminates an important protection for families who are going to be shut out of credit because of this medical debt that they could not avoid.' How medical debt impacts credit CFPB research has indicated that medical debt on credit reports is 'a poor predictor' of whether a person will repay a loan, but still 'contributes to thousands of denied applications on mortgages that consumers would be able to repay,' the agency said at the time the Biden-era rule was finalized. 'We know from prior studies that medical debt does not have meaningful predictive power for people's credit worthiness. Part of the reason is that medical debt, more than any other form of debt, is the result of bad luck, not bad financial behavior,' says Neale Mahoney, an economics professor at Stanford University and director of the Stanford Institute for Economic Policy Research. 'Nobody plans to go to the hospital or have a kid slip and fall and need to be rushed to the ER and have to pay those medical bills; that is just bad luck.' The Biden-era rule would have led to the approval of about 22,000 additional, affordable mortgages annually, and the credit scores of people with medical debt on their credit reports would increase by an average of 20 points, the CFPB estimated. Mahoney says vacating it will reduce credit access for people struggling with medical debt. There are some steps that can be taken to mitigate that impact—though they're limited. Financial assistance options Mahoney advises people who find themselves faced with burdensome medical bills to first take advantage of their hospital's or physician's financial assistance program. Many hospitals have such programs, which are often listed on the back of the bill, that can reduce or sometimes even eliminate the cost depending on a patient's income or assets. 'It can be a slog to work through the process, but for many people, addressing the issue with the hospital is better than letting that issue fester and then become a medical debt with a debt collector,' Mahoney says. There are some organizations, like Dollar For, that help patients navigate these financial assistance programs. The CFPB offers some general tips for people dealing with medical debt, such as confirming the unpaid bill with the appropriate source, contacting their insurer if they believe the service should have been covered, and disputing any errors in the bill or credit report. Debt payment plans If a person's debt has been sold to a debt collector and they're concerned about its potential impact on their credit score, Mahoney recommends that they try and negotiate a payment plan with the debt collection company. Sometimes, a debt collector may be open to receiving a payment that is more within reach for the patient and, in turn, removing that debt from the credit report, he says. Contact us at letters@
RNZ News
7 days ago
- Business
- RNZ News
What would happen if a KiwiSaver provider failed?
There is always the risk that investments could go wrong, but KiwiSaver schemes do have some protections in place. File photo. Photo: 123rf Some Australian investors may be facing the loss of their investments after the failure of a superannuation provider, but KiwiSaver members are being reassured that the situation is different here. Australian media has reported that up to A$450 million may have been lost by the First Guardian Master Fund, which went into liquidation early this year. Co-director David Anderson was reported to be accused of transferring funds into his own bank account. David Callanan, general manager of corporate trustee services at Public Trust, one of the supervisors of New Zealand's KiwiSaver schemes, said there were different protections for KiwiSaver members, which should prevent such a scenario. Providers are subject to oversight from a supervisor, who can also choose to appoint a third-party custodian or act as custodian themselves. "I think we've got a more effective regulatory regime. It's set up really well to protect KiwiSaver members and investors." He said the supervisor was "effectively a trustee". "We're in place to ensure that KiwiSaver providers are doing the right thing for investors. If there was an issue with a KiwiSaver provider then the supervisor would be able to step in and take control back and come up with a solution." He said that could involve appointing another manager if necessary. "We have the power to step in and to take control back in the interests of those investors." He said, because there were a limited number of independent supervisors, they were closely regulated by the Financial Markets Authority. "In Australia there are hundreds of responsible entities who play that role." Callanan said if a fund manager was failing it would not be able to access investor funds. "That's another area that in those scenarios that I've seen in Australia hasn't worked. You've got fund managers just dipping into investor monies, you know, to go and buy a Lamborghini or whatever they feel like on a whim. "That just couldn't happen here because we've got independent custodians and again, Public Trust is an independent custodian for a number of KiwiSaver providers, and that can give investors confidence." He said there was also a strong conflict of interest regime in place. "Even for fund managers who might undertake what is called a related party transaction…the Financial Markets Conduct Act stipulates the process they have to go through to work with their supervisor to get that transaction across the line." But that does not mean you can not lose money in KiwiSaver. Callanan said there was always the risk that investments could go wrong and financial markets might not perform as expected. "But if you're with a KiwiSaver provider in New Zealand you can have confidence that there's a mechanism in place in the supervisors that if something was to go wrong with that manager, the supervisor would step in and stop you falling down the metaphorical cliff. "There's always the possibility that someone makes a silly financial decision or you could pick an investment that's really bad. My advice would be to avoid a situation where you have all your eggs in one basket." He said that could only happen with the KiwiSaver schemes that allow people to choose their own investments. "Most KiwiSaver providers are offering these diversified products and you can be really confident you've going to get a good outcome because you've spread your risk in an appropriate way." Financial Markets Authority director of markets, investors and reporting John Horner said the law prescribed the segregation of duties in relation to managed investment schemes. "Generally, while the manager of the scheme is responsible for investment decisions , the custodian is responsible for holding and safeguarding the scheme property - segregation of legal ownership - and for keeping records of the scheme property - segregation of functions. Supervisors licensed by the FMA are responsible for custody. Depending on the scheme's governing documents, a supervisor may appoint another appropriate independent person as custodian. "MIS managers and supervisors are obliged to act with care, diligence and skill. MIS managers are expected to maintain strong capital positions, professional indemnity insurance, parent company guarantees or other similar arrangements. Managers are also required to notify the supervisor if they are, or are likely to become, insolvent. The supervisor is responsible for monitoring the manager's performance of its functions and obligations, as well as its financial position. "In the event that the fund manager becomes insolvent or is otherwise unable to continue operations, the supervisor has the power to appoint a temporary manager to ensure the continued management and operation of the fund until a permanent replacement is appointed." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
13-07-2025
- Business
- Yahoo
Wealthy In-Laws Tell Woman She Needs to Quit Her Job. She Declines Unless They Set Up a Trust Fund for Her
A woman asked the internet if she acted the right way around her soon-to-be in-laws Her partner's parents told her that she should "quit working and be a stay-at-home mom" The woman asked for financial protection from the family if she were to quit her jobDealing with in-laws can be hard enough without mixing finances. In a recent Reddit post, a 27-year-old woman shared that her "fiance's parents are loaded. Old money loaded." While she earns over $170,000 a year, her fiancé, a teacher, "doesn't make as much" but has a trust fund from his family. "Recently, I had a weird conversation with him and his folks," the woman shared. "They think that after the wedding, I should quit working and be a stay-at-home mom. I thought they were joking and kind of laughed. They are perfectly serious. They think it's emasculating that I earn more than him." Although she will make more than her fiancé over the course of her career, she pointed out that "his trust fund is low seven figures," and money won't be an issue. "He could afford to pay me what I earn yearly but he can't due to the stipulations of his trust," she added. "His mom on the other hand has lots of interest built up in her trust." She noted that she doesn't want to quit her job without any protections and "offered a solution [she] thought was fair." She suggested "they set up an unrecoverable trust" for her. "They must contribute my gross earnings yearly with bumps for anticipated raises and promotions. The deposits would be for the next 35 years That [way] I'm a stay at home mom, my fiancé is the breadwinner, and I'm protected in the case of a divorce." However, the family went "nuts" at the suggestion and told her she was "ridiculous for thinking they will give [her] money." So, she offered another "compromise." "I sign a prenup wherein I am entitled to half of [my fiancé's] trust fund in the case of divorce if I give up my career," she suggested. However, her idea was "also not acceptable to them." "I'm kind of at a loss. Do they honestly think I would give up my career with zero safety net?" she wondered. Never miss a story — sign up for to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories. While the poster's mother says she's "being rude putting everything in such stark monetary terms," the woman believes she's "being reasonable," which most commenters agreed with. "They are asking you to give up financial security for him, but don't want him to risk anything in return. You are 27, making $170,000 a year, you are obviously good at what you're doing and have put the work in," one commenter wrote. "This is the time that your fiancé should be standing up for you and shutting his family down; his response here should tell you everything you need to know about your future marriage. Don't do it, protect your future first." Read the original article on People
Fox News
13-07-2025
- Business
- Fox News
5 steps to protect your finances from family scams
You'd like to believe no one in your family could ever scam your parents. But what if the danger isn't a stranger at all? What if it's someone they already trust? What if it's even your sibling or an estranged uncle in need of money? According to the AARP, seniors in America lose over $28 billion every year to fraud. Shockingly, 70% of it comes from people they know — family members, neighbors, caregivers and "friends." If you've got aging parents or grandparents, it's time to take action. People in your circle can cause serious financial damage, known as family fraud, if you're not careful. And, worse yet, almost 90% of family fraud doesn't get reported by seniors due to shame, fear and potential repercussions. Here's a simple five-step plan to protect your loved ones before someone you thought you could trust takes advantage of them. Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide — free when you join my It's not just shady scammers in faraway places. Most elder fraud happens close to home. These fraudsters know eerily specific details about seniors, their children, grandchildren, past occupations and even retirement funds. The most common cases involve: If your family has tension, estranged members or unresolved drama, your parents could be prime targets. Recognizing this risk is the first essential step to prevention. Data broker sites sell seniors' personal information by the bundle. We're talking phone numbers, emails, home addresses, income estimates and even political views, all listed online for pennies. Armed with those details, scammers can impersonate a relative, hack an account or manipulate your loved ones over the phone. Think about how easy it is for an estranged family member to get updates about your parents' lives and financial status. Limit how much your parents share online or delete such information to prevent it from appearing on people search sites. Ultimately, controlling what's available online is one of the most effective ways to protect seniors from identity theft, fraud and unwanted contact. The good news is that you can protect your elderly family members from a lot of trouble. Start by searching for your parents' names on Google. If their phone number or address appears on shady people search sites, have it removed. The problem is that there are hundreds of these data broker sites, and most make it a nightmare to opt out. That's where a personal data removal service comes in. They automatically contact these data brokers and force them to delete personal information, including your parents'. It works in the background and covers dozens of the worst offenders. I personally use it for my family, and it's one of the smartest, simplest ways to keep personal data out of the wrong hands. While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren't cheap, but neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It's what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you. Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting a free scan to find out if your personal information is already out on the web: One of the easiest ways for scammers to reach and manipulate seniors is through phone calls. A friendly voice claiming to be a long-lost cousin or someone pretending to be a financial advisor goes a long way. If your parents' landline or cell number is publicly listed, it's a ticking time bomb. You can: The fewer ways fraudsters can reach your loved ones, the better. Data removal tools, such as Incogni, should be your first line of defense. But for additional peace of mind, you can add free tools like credit freezes and bank alerts. Identity monitoring services can also alert you if your parents' Social Security number, name or financial accounts are being misused. See my tips and best picks on how to protect yourself from identity theft at Family fraud is one of those ugly, uncomfortable topics we tend to avoid. But trust me, the regret of not acting is far worse. Start today and remove your parents' personal data from the web. Remember to unlist their phone number and lock down their sensitive information. Every measure helps your parents maintain control over their finances. How comfortable do you feel discussing financial safety and privacy with your older relatives? What challenges have you faced in starting these conversations? Let us know by writing us at Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide — free when you join my Copyright 2025 All rights reserved.
Zawya
08-07-2025
- Business
- Zawya
AIA Launches GlobalFlexi Savings Insurance Plan Combining Flexibility and Potential Wealth Accumulation to Empower Customers to Achieve Their Aspirations
Alice Liang, Chief Proposition & Healthcare Officer of AIA Hong Kong & Macau Projected break-even period as short as seven years % , with a competitive projected IRR of up to 6.5% by the end of the 30 th policy year # . with a competitive projected IRR of up to 6.5% by the end of the 30 policy year . Rare-in-market Flexi Withdrawal Option* enables customers to withdraw policy values regularly as needed and designate a loved one as the recipient. enables customers to withdraw policy values regularly as needed and designate a loved one as the recipient. Rare-in-market Value Safeguard Option* allows customers to withdraw and transfer cash value while earning non-guaranteed interest, providing liquidity for near-term life goals. allows customers to withdraw and transfer cash value while earning non-guaranteed interest, providing liquidity for near-term life goals. Market-first Currency Exchange Option^ enables policyholders to switch among nine different currencies&, facilitating diversified asset allocation. Market-first Health Impairment Option^ provides financial protection and policy ownership transfer arrangements if the policyholder loses capacity due to a mental issue or a specified illness including Apallic Syndrome and Coma, ensuring financial stability for the family. AIA Rethink Healthy Ambassador and 7-time award-winning actress Michelle Wai stars in the new GlobalFlexi Savings Insurance Plan campaign [Watch the campaign video by clicking here] Remarks Flexi Withdrawal Option: Compared with the savings insurance products provided by Hong Kong major insurance companies as of 23 June 2025. Velue Safeguard Option: Compared with the savings insurance products provided by Hong Kong major insurance companies as of 23 June 2025. Currency Exchange Option: Pioneered by AIA in the Global Power Multi-Currency Plan on 1 June 2021. Health Impairment Option: This option allows the policy owner to designate up to 2 different designated recipients and elect for both benefit payment and transfer of ownership at the same time. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA with the Wealth Generation life insurance plan on 23 June 2025. HONG KONG SAR - Media OutReach Newswire - 8 July 2025 -AIA Hong Kong announces the launch of the GlobalFlexi Savings Insurance Plan (the Plan). Designed to meet the needs of customers seeking financial flexibility and long-term wealth accumulation, the Plan offers a projected total internal rate of return (IRR) of up to 6.5%by the end of the 30policy year. It introduces rare-in-market* features, including Flexi Withdrawal Option and Value Safeguard Option, which enable flexible cash withdrawals to enhance liquidity while accumulating wealth. Additionally, the Plan includes the market-first^ Health Impairment Option, providing added security for the loved ones during times of uncertainty., said, "At every stage of life, financial resilience is key to empowering individuals to pursue their aspirations and confidently navigate unforeseen challenges. For example, many parents aspire to support their children in studying abroad at prestigious universities – a goal that often involves significant financial commitments and uncertainties, such as exchange rate fluctuations. Prudent planning and choosing a flexible wealth solution are therefore essential. AIA understands these evolving needs, which is why we have introduced the new GlobalFlexi Savings Insurance Plan. Thoughtfully designed, it empowers customers with financial clarity and provides peace of mind for their loved ones."She added: "Rooted in Asia for over a century, AIA remains committed to its customer-centric approach, offering innovative and reliable propositions that support individuals through every life stage and aspiration. We are dedicated to helping our customers live Healthier, Longer, Better Lives, enabling them and their loved ones to accomplish their dreams."Key features of the GlobalFlexi Savings Insurance Plan:Wealth Accumulation & LiquidityAddressing Health & Future ChallengesTo further support customers in preparing their children for a successful future, AIA has partnered with a professional education consulting institution from 1 July to 31 December 2025 to provide GlobalFlexi Savings Insurance Plan customers with exclusive privileges. These include overseas education strategy seminars, consultancy on further studies, personalised education roadmap, tutoring and interview coaching. This partnership equips parents and students with the tools to navigate global education trends confidently and plan part of its latest campaign for the GlobalFlexi Savings Insurance Plan, AIA has enlisted Michelle Wai, one of its Rethink Healthy Ambassadors and a seven-time award-winning actress, to embody the product spirit. In the advertising video, Michelle reflects on her acting career, highlighting perseverance and resilient — values that align with AIA's enduring commitment to its customers. The campaign debuted on 8 July 2025 across major promotional platforms in Hong Kong, including the latest prime locations such as MTR Kai Tak Station and Sung Wong Toi Group is the largest independent publicly listed pan-Asian life insurance group, with over 600 investment employeesacross the Asia Pacific. AIA Hong Kong has ranked No. 1 in the number of new business policies in Hong Kong for 11 consecutive yearsand has been named Hong Kong's Most Popular Insurance Brand for nine straight years, a testament to the trust and support of its information above is for reference only and does not constitute any offer and/or insurance product recommendation. The product information in this material does not contain the full terms of the product, for the details of the product features, terms and conditions, exclusions and key product risks, please refer to the product brochure and policy contract of relevant products or visit the AIA Hong Kong's website.* Multiple rare-in-market features^ Multiple market-first features# Illustrative case example: assuming a policyholder purchases the GlobalFlexi Savings Insurance Plan with a 5-year premium payment, annual premium of US$100,000, total premiums of US$500,000. This is a hypothetical example for illustrative purposes only. Actual bonuses and dividends are not guaranteed and determined solely at AIA's discretion. The total IRR does not represent future performance and is non-guaranteed. In the worst-case scenario, the actual total IRR by the end of the 30th policy year may be equal to the guaranteed IRR of 3.48%.% 'Projected total breakeven period' is the policy year at the end of which the projected total surrender value is greater than or equal to the single premium paid for the first time. Illustrative case example: assuming a policyholder purchases the GlobalFlexi Savings Insurance Plan with a 5-year premium payment, annual premium of US$100,000, total premiums of US$500,000. In the worst-case scenario, the projected break-even period is by the end of the 18th policy year. Expected breakeven periods and total IRR vary by premium payment method. Single premium payments may achieve an expected breakeven period as short as 5 years. Expected breakeven periods are not guaranteed. Single premiums are invested once across diversified assets per strategy, while 5-year premium plans invest in five tranches any may benefit from dollar-cost averaging. In comparison, single premium payment policies may experience greater investment volatility with wider fluctuations in projected bonuses and dividends. In the worst-case scenario, the actual total IRR may be equal to the guaranteed rate.& Starting from the end of the 2nd policy year and within 30 days after the end of a policy year, you may apply once per policy year to switch your policy currency to one of the following 9 different currencies, including Renminbi (RMB), British pound sterling (GBP), US dollar (US$), Australian dollar (AUD), Canadian dollar (CAD), HK dollar (HK$), Macau pataca (MOP; only for policies issued in Macau), Euro (EUR) and Singapore dollar (SGD), by exchanging your GlobalFlexi Savings Insurance Plan policy for the latest plan under the GlobalFlexi Series which we offer in the new policy currency at the time of currency exchange. The approval of Currency Exchange Option's application and the availability of currency for selection at the time of exercising the Currency Exchange Option will be subject to the prevailing laws and regulations, and our prevailing rules and conditions.1. As of 31 December 20242. Based on statistics from Insurance Authority released since 2014 - Provisional statistics of the Insurance Authority on Hong Kong long-term insurance business for full year 2014-2024.3. According to YouGov, an international research and data analytics company, Hong Kong BrandIndex 2016-2024. AIA has been the Top Insurance Brand in Brand Consideration and Most Likely to Purchase in Hong Kong for nine consecutive years since #AIA #友邦 The issuer is solely responsible for the content of this announcement. About AIA Hong Kong & Macau AIA Group Limited established its operations in Hong Kong in 1931. To date, AIA Hong Kong and AIA Macau have over 18,000 financial planners1, as well as an extensive network of independent financial advisors, brokerage and bancassurance partners. We serve over 3.6 million customers2, offering them a wide selection of professional services and products ranging from individual life, group life, accident, medical and health, pension, personal lines insurance to investment-linked assurance schemes with numerous investment options. We are also dedicated to providing superb product solutions to meet the financial needs of high-net-worth customers. 1 As of 31 March 2025 2 Including AIA Hong Kong and AIA Macau's individual life, group insurance and pension customers (as of 31 March 2025) AIA Hong Kong
