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Chase has taken an interesting approach with it’s WAMU customers.  They are just getting rid of many of them.  Last fall, they made uncompetitive the previously successful WAMU Online Savings account.  This makes sense if you are Chase and have a low cost of funds, but customers did go elsewhere.  Last summer, many lenders like WAMU and Chase started cutting back Home Equity Lines to reduce their exposure to declining real estate values.  This too was understandable and customers really had no where else to go.

Fast forward to April 2009, the Chase marketing department is spending a lot of resources on bringing WAMU customers into the fold and making it’s long awaited big debut in California.  But the loan department is now unilaterally suspending some of the home equity accounts of WAMU customers. Chase has begun notifying customers of the suspensions, claiming further declines in property value as the reason for the action.  Interestingly,  they have taken this action even where there is plenty of equity in homes and no outstanding balance on the equity lines.  This is really a hatchet approach when a scalpel is much more appropriate.  Interesting message to it’s new California and WAMU customers, welcome to Chase, we are one of the strongest and oldest banks, we don’t have competitive savings rates, we don’t have money to lend regardless of the equity in your house, but we’ll give you $100 to open a checking account. 

Why do I mention this?  First, it’s important to reiterate that if you have any line of credit at any bank that you are relying upon (home equity (HELOC), personal line, business line) you should be careful.  Banks can decrease, suspend and cancel your account.  They will let you know after the fact.  This has been happening a lot in the past year and has put many people and businesses in a bind.  You really need to make sure the money is accessible on your line of credit before writing any checks or trying to use a charge card tied to the credit line.

Second, this raises many questions about Chase and the other large banks.  Are they really in such bad shape at this point in time that they need to take these drastic actions?  Is this in response to government demands?  Is the government micromanaging these banks?  Are these mega banks capable of being responsive to individual customers?  Do the banking decision makers in New York and Charlotte (and Washington, D.C.) understand the impact they have on people with their actions? 

The taxpayer is on the hook for some of the WAMU loans.  Maybe this move may be bad for WAMU customers, but ultimately a good thing for taxpayers.  Maybe Chase is a good bank, but just in a difficult situation.  I don’t know.  If you have any experience with this situation or thoughts on the questions I raise, please share in the comments below.

Like we mentioned the other day, many people think of identity theft only in the context of someone using your good name and credit history to get money or purchase things.  But your childrens’ names and personal information can be stolen as well.  College students, with or without a credit history, can especially be at risk.   Below is some information about Child Identity Theft, courtesy of Trusted ID – The Top Name in Identity Theft Protection. Click here for more information & 30 Day Risk Free Trial!

What is child identity theft?

Child identity theft occurs when someone uses the child’s personal information without their knowledge for another person’s gain.  All the problems that an adult experiences when their identity is stolen- from ruined credit to fraudulent accounts and rampant debt – can happen to a child. Minors make easy targets for scammers because they don’t normally check their credit reports, meaning that the identity theft can go on for years before being noticed. Also, it’s often easy for to get credit in a minor’s name due to their unblemished credit history.

A subset of this group, college students, are particularly at risk. Many colleges and universities use the student’s Social Security number as their student ID, and students are often bombarded with credit card offers.  Because this group moves often and may neglect to forward their mail, sensitive information such as pre-approved credit card offers and student loan letters may fall into the wrong hands.

You can protect your child’s identity with TrustedID, the only identity theft protection company that protects your entire family under one low-priced plan. Not only does TrustedID check and protect your child’s credit report but other aspects of their personal information is monitored as well, including their Social Security number and medical benefits.

 Key Stats and Facts

• - Nearly 500,000 children each year are victims of identity theft. (MSNBC, 2005)
• - The culprit is often a parent or guardian or anyone with access to the child’s information.
• - Identity theft against minors can go undetected for years since the theft is typically not discovered until the child applies for their first bank account, loan or credit card.
• - Identity thieves can obtain a minor’s Social Security number and personal information from many sources, including medical records, school files and online social networks.

 How to prevent child identity theft:

• 1) Do not carry your child’s Social Security number in your wallet. If necessary, make a photocopy of the card and cut off the last four numbers.
• 2) Be careful with whom you share your child’s personal information. For example, if your child’s after school sports program requires a copy of a birth certificate and/or Social Security card, ask if the coach has had a criminal and financial background check done by an independent or hiring source. Show the papers to the coach and then put them in a sealed envelope, and write your name across the sealed flap so you can tell if it has been opened when it is returned to you. Initial the back of each page so you can tell if you got the original back at the end of the season. Ask where these papers will be stored during the season.
• 3) College students should lock away their personal information. It is not uncommon for victims to have their information stolen by roommates who seem to be friendly.
• 4) Make sure you send and receive mail in a locked mailbox, and to fill out a change of address form with the Post Office each time you change residences. TrustedID will help reduce the amount of junk mail you receive, including pre-approved credit card offers which is a common way that identity thieves can apply for and obtain new credit in your or your child’s name.
• 5) Get your child’s identity protected with TrustedID – the only company that protects your entire family under one low-priced plan.

See also:
http://www.moneycafe.com/personal/featured/idtheft.htm