Category Archives: Blog

Manufacturers Want Your Dashboard Back!

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In the next two years, every vehicle manufacturer is going to find one (or two) ways to get back their dashboard display.

The displays have gone from simple to complex computers in the last ten years or so. These days, they’re Bluetooth, backup cameras, all kinds of displays, radio, syncing and much more. At the same time, more electric vehicles mean less income for car dealers since these vehicles don’t need oil changes and the likes.

This is the way all manufacturers have to increase their revenues – a lot! It’s not just going to be an additional charge because that’s one-time revenue source. It’ll be a monthly subscription that will be revenue streams for life. Great for them – horrible for vehicle owners and buyers.

Different manufacturers will get there in different ways: Some will charge to have the display functioning at all. One is working on having the Bluetooth function only work with an active subscription while another is going to have it triggered to keep the air conditioning working. That one is particularly nasty – but will, of course, be really effective.

Years ago, many included Sirius radio for a six or 12-month trial. However, the renewal for pay subscriptions were extremely small. This time, they will control the process and it’ll all be their revenue. It’ll be under the guise of “updates” to keep things functioning. No, you really don’t need an “update” to keep your Bluetooth interface working or your AC to run. But that’s their story and they’re sticking to it.

Oh, and if you’re a fan of AM radio, there’s a good chance that’ll stop being included in your stereo a year or two from now. It’s already “missing” in a lot of electric vehicle models.

FTC Sues Amazon Over Prime

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After a two year investigation, the U.S. Federal Trade Commission is suing Amazon for deceptive sales practices of their Prime program and the hurdles to cancel.

While Amazon denies the allegations, the FTC claims Amazon has all kinds of little tricks and hidden consent to get people to sign up for Prime. They also make it difficult to complete a purchase without Prime, and hide the consent in purchases without disclosing the sign up is actually for a monthly recurring subscription.

After that, the hurdles continue when wanting to unsubscribe. Internal memos, discovered by the FTC, show the company calls it “Iliad” after Homer’s poem about the Trojan War. The process is all about discouraging people from cancelling without a lot of hurdles, hassles and hard to find places on their site.

This follows on the heals of an FTC settlement with Amazon over privacy “lapses” with Alexa and Ring. The fine was $30 million with Amazon “disagreeing” with the claims, but settling to resolve the matter. That amount of the fine is literally the equivalent of a one dollar speeding ticket in the revenues of the company. I disagree in that this matter should never have been settled but pursued. I have no idea why anyone would pay to purchase an Alexa or Ring doorbell that have a long long track record of spying on the purchaser. Sure, we keep telling pollsters that our privacy matters – then to a lot of things to insure we lose it – VOLUNTARILY! No thanks.

RBC Fraudster Attempts Heads Up:

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Typically, frauders call in an attempt to talk to you. They don’t leave a message because they want to actually reach you in order to scam you.

However, a new one just surfaced. It’s an actually recorded message left on your voicemail. There was a charge of $120 something declined on your RBC credit card. Your account has been blocked, please call us at 1-800-283…..

It’s fraud! Not on your credit card, but the call, message and scam! It’s a wave of RBC calls right now and it’ll be other issuers down the road.

If you don’t have an RBC credit card, you’d obviously know that. However, I do. You will immediately know it’s a scam when the phone number they leave is NOT the one on the back of your credit card. Any card issuer will leave only THAT number for you to call – period.

If you want to double check it further, call the number on the back of your card or log into your account. Both ways will verify for you that your account is just fine.

Yes, 100% of all scams can easily be prevented. Use some common sense and double check. No, your grand daughter has not been kidnapped or is stuck somewhere and needs money. No, your already ‘friend’ on social media has not set up a second account. No, your card isn’t blocked if the message doesn’t have the main customer service number on the back of your card. No, your bank isn’t calling you to ‘test’ your account and nobody from nowhere legit is calling you to get your personal information verified or your card PIN number! Ever ever.

Freemium Is Coming to An End

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The business model of free tech apps for your phone or other device is quickly ending. Those are all the apps that you can download for free with basic features and the option (and constant push) to upgrade to the paid version. It avoided having to do advertising by getting you the free app in return for continuous pitches to upgrade.

That model has been around for 20 years, but it’s over as investors are pushing the companies to generate some serious revenue. At that point the app will stop working unless you supply your credit card to either buy the full app, or pay a monthly subscription.

Some great health apps recently gave one day notice to upgrade or lose it. Sure enough, the following day the app stopped working. Mailchimp has severely reduced their free app content, Zoom has vastly restricted use, Amazon did the same thing already, Peacock stopping their free streaming version, and a ton of others.

I’ve had it happen on four apps already. One I did spend the $24.00 to purchase it as I would NEVER pay for a subscription – ever. The other three I’ve had to say good-bye to.

This actually started with a security camera company last year: Buy our cameras and you’ll have free lifetime license for the software. Well, one day the app stopped working and they were holding their customers hostage. In that case, they reversed the decision because the “free for life” was in their terms of service. In other words, they were stuck, or were going to be exposed to lawsuits. That’s not the case for most others. Terms of service aren’t geared to be to your benefit.

An entire generation of people who grew up with their phone are getting a rapid reality check and shock. They’ve never experienced having to pay for these apps. That’s quite a rude awakening and the tech companies are hoping they’ll just step up and pay.

So with streaming services subscriptions and the cell bill, add a bunch of app charges and it’s not too hard to imagine vast numbers of people having 12 to 15 monthly charges on their credit card leaking a lot of money out of their wallet.

A Self-Defeating Financial Game

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There are a number of common self-defeating games we play on ourselves that have a real negative impact on our finances. The most common one is claiming we got ripped off. To skip ahead: We didn’t get ripped off – we paid what I call a “stupid tax.”

News flash: Whatever you got ripped off on, you purchased voluntarily and signed a bill of sale or order online. There are no sales or banking people who carry a gun – honestly. If you say to others, and more important, to yourself that you got ripped off, it makes you a victim and it’s not your fault. If you’re a victim, there’s nothing to be done, and no lesson to be learned.

Change the wording: I LET myself get ripped off. You didn’t ask enough questions, the right questions, signed up to quickly, didn’t comparison shop, were naïve, or trusted someone who lied to you. That’s on you! It’s hard to say. I know – I’ve been ripped off…I mean…let myself get ripped off. And when I change the wording, I change my thinking and change my behaviors so it doesn’t happen again!

It’s always nice to learn from the mistakes of others. But few people choose to do that. We somehow, for some reason, don’t take in those lessons and need to get burned ourselves.

A relative called me yesterday and he was furious. He had a Visa balance last month of $1107. His next trip to the bank machine, he transferred $1100 to pay off the balance, thinking he was done. Yesterday, his statement arrived and charged him over $21 of interest. Yes, it’s true. If you do not pay the FULL balance, you’ll be charged interest for the last month on the entire balance. In other words, his rounding down didn’t just charge him 20% on the seven bucks – it charged him on the full $1107.

If in doubt, if you don’t remember the exact amount when you’re at the ATM, round it up! I call this a stupid fee. He was charged $21 for a good lesson – and, in his case, you can bet it won’t happen again!

Credit Card Fraud? Issuers Don’t Really Care

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If that headline doesn’t sound right or logical, you’re correct. Unfortunately, it’s true. For card issuers having to absorb fraudulent charges is just a cost of doing business and built into their 20% interest rates.

My Mastercard had fraudulent activity in October last year. The card was cancelled and re-issued and the charge was taken off my account. The same card had ANOTHER fraud charge in January of this year. Same thing: card cancelled, re-issued and charge taken off. The first time was a charge around $900 or so and the fraudsters second charge got the issuer to block the card and email me for confirmation it was my activity. It wasn’t and that triggered the cancellation.

The second time it was a $400 or so charge and, again, a second charge attempt triggered the fraud block. That got me to pull my statements from October to January. Surely, there had to be something easily traced.

My credit cards do not leave my possession. Nobody has the number, expiry and/or security number and it hasn’t been used on an email. It had been used at physical places like Walmart, Rona, etc. (card present transactions) and online at one small retailers, Air Canada and Westjet. That’s it. But there HAD to be a common denominator AFTER the card was replaced in October (new number and security code) and AGAIN replaced in January.

It took me less than five minutes to find that small retailer in Ontario who had my card information just before the first fraud and again in December with the new number and security number. As it was the ONLY common transaction and the card never left my wallet or home, that was the place (or a hack or employee) where the fraudsters got my information. All other online charges were once and not with both new numbers!

I immediately sent a letter personally addressed to the Senior Consumer Card Fraud Manager. A form letter two weeks later just stated ‘we’ve received your inquiry and will get back to you.’ Totally useless, but it meant the manager received my letter.

The investigation should have taken about five minutes: Check the computer if George is correct that it’s the only common retailer with his (two different) cards from October to January. Then punch in the retailers name and check if there have been any other frauds from their millions of other card holders where there had been a charge from that retailer.

It’s doubtful they did – and it’s doubtful I’ll ever hear from them again. That’s as sad as it is true…

Zig When Others Are Zagging

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We’ve talked about that logic a number of times over the years when it comes to financial tools. These days – right now – it’s really critical that you think about doing the opposite of what financial institutions, mortgage lenders and utility companies want you to do.

With the high utility rates last fall, the marketing was to get you to lock in your rates “before they go higher.” The pitch was to have you think you’re getting a good deal at the time. Well – maybe. And I certainly know people who took a long term locked-in contract. Fast forward six to nine months and the rates are down significantly from those “good deal” fixed rates that large numbers of people are now stuck with.

What you will not see or hear in any bank advertising is any campaign to get you to lock in your savings. Term deposits, CDs, whatever are at a pretty good rate compared to what they were before the last two years of rate increases. Are rates going down as early as this winter? Depends on which economist you ask. Are they close to peaking and will at least stabilize? That’s a pretty reasonable bet, according to most economists. So, at this point, the fixed savings investments are about as high in rate as can reasonably be predicted. That’s why the last thing financial institutions want you to do is to now lock in those high/higher rates. That would mean they’re out a lot of interest payments to customers when they drop.

Since their profit is the spread from what they pay out to depositors to what they lend out, they obviously want tiny savings rates and high lending rates.

Who are the credit card issuers that have “won” the rate battle so far? The ones who sold variable rate cards. Why? Because they go up with every prime rate increase. What are they going to market to you now? Take that variable card and consider locking it in for a fixed rate. Why? Because rates are or should be close to the max right now. Your zagging would be their winning!

Mortgages work the same way. What you WILL see right now are ads to get you to lock in today’s rates. We’ve talked about that around a month ago or so – how long a term should you take on a mortgage renewal to be ‘up’ again when rates will/have/start to come down? If mortgage lenders have their way, everyone would take another five-year term right now.

Zig when they want you to zag: Lock in savings at a high rate – consider a fixed-rate gas or utility plan (if you must) at low rates and have your mortgage term land in the sweet spot when rates are down (again).

Crypto Gambling Update

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Over the past few days I had the chance to read some advance reviews, and hear a great podcast interview with the author of an upcoming book.

I can’t wait until the book is out at the end of July. This is going to be one very insightful book, based on what I’ve read. That crypto isn’t an investment, and is never going to replace real money as a currency should be apparent to anyone who has done some basic due diligence or research. However, author Ben McKenzie also explains a lot of the inside dealings in ways us non-crypto people can understand.

And one more part to the crypto mess: A large number of so-called celebrities and “influencers” promoted crypto companies of one kind or another. They’re not being sued – and rightfully so – for promoting…well…crap. Any crap, any product, whatever it is in order to get paid for the promotion to their fans or followers. One legitimate mega star is (and has always been) one of the sharpest business people that avoided getting dragged into this:

Graduating to Financial Adulthood

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Graduating to financial adulthood is not about taking a university course or living entirely debt free. It also isn’t about your age. The essence of being a financial adult is that you set your priorities and you are in control of your finances and money, instead of your money controlling your life (or lack of a life). You’re proactive versus reactive and out of control. If you do these well, or even know how to do some of these, congratulations! You’ve graduated!

You have at least one week of income as a basic preliminary emergency fund.

For anything expensive, you shop around before taking on any new debt. This includes shopping for the best interest rate, examining your insurance, scrutinizing your cell phone contract, and monitoring your credit card interest rate if you usually carry a balance. Kids impulse-buy until they’re out of money; financial adults don’t tend to spend until they’re broke.

You have an RRSP and/or Tax Free Savings Account and make a regular monthly contribution. It doesn’t  matter how small it is – at least you’ve started and have traction.

Whether you’re single or married, rich or broke, you have a properly completed will. It may be a $20 do it yourself kit if you’re single, or a lawyer-prepared one if it’s more complex and you have kids.

You know the actual amount of your net take-home pay every month. You can’t control your money if you don’t even know the exact amount you net. Don’t keep talking about your gross pay as if you had that to spend.

You spend less than your monthly take-home pay. You may (at the start) have 10 cents left, or $1,000 – but you’re spending less than you earn. Financial adults figure out how to pay for something, and then buy it, not the other way around.

You have a proper filing system for your financial records. It may only be six large envelopes for each of the last six years, or a ton of file folders (if you’re super organized by choice). Kids get to say “I lost it.” Financial adults don’t have that option.

You have at least two specific and measurable financial goals. Saving more in your RRSPs, or paying off your credit card are not financial goals – that’s a hope and a dream. It needs to be specific: Save $150 a month in RRSPs is specific and measurable. Reduce your credit card balance by $200 or more every month until it’s paid off is a measurable and specific goal that significantly boosts your odds that it will happen.

You do not lock yourself into longer-term fixed expenses by signing contracts for cell phone plans, gym memberships, alarm systems, electricity contracts, etc.

You define “I can afford it” as the ability to pay cash for something, and not by the amount of the monthly payment.

Two Financial Mistakes We Keep Making

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Almost every week, there’s another media story of a condo or apartment building fire. In almost every story you’ll hear that families lost everything, and didn’t have insurance.

Renters insurance costs around $100 or $200 and you really need to have it – or get it today! Your landlords insurance does not cover your stuff. If there’s a fire, you need to have your own coverage. If you don’t, you’re not just out everything you own, but are also liable for the landlord’s stuff in your rental. That includes the fridge, stove, any furniture, carpet, etc. Nobody ever thinks it’ll happen to them – until it does. That $100 or so will pay off huge in the event of a claim. You’re not insuring the building, but only the $10,000 or $20,000 of your content – that’s why it’s so inexpensive. If, on the other hand, you’re a landlord, give that heads up to your tenant. You can’t make them do it – but lack of knowledge shouldn’t be the reason they don’t have coverage.

The second financial mistake applies to hundreds of thousands of people: It’s over-financing their vehicles. In the event of a write-off, or theft of your vehicle, the insurance company will not pay off what you owe. That you over-financed it is your problem and not theirs. What you owe has nothing to do with what the insurance company will cover.

They’ll pay you the “fair market value” only. They insured the value of your vehicle, they didn’t insure the amount of your loan. If you’re buying a new one, buy something called full replacement for under $50 that’ll give you two or three years where they’ll replace it without depreciation. For everyone else, figure out what your loan amount is, then look on Autotrader to get a rough idea of your value. THAT value is close to what you’ll get from the insurance company. Hundreds of people a day are finding out that they’re short thousands of dollars to pay off their car loan. Don’t be one of them!