SAN FRANCISCO -- Worldwide, only 65% of women have a bank account, compared with 72% for men, so as we celebrate National Businesswoman's Week later this month, community development financial institutions are working to even the playing field.
Many of those institutions specialize in making loans to under-banked groups.
Ebony Perkins, director of investor relations for Self-Help Credit Union, said her organization has loaned $3.25 billion dollars to women over the past 40 years. And 43% of the Paycheck Protection Program dollars they distributed went to companies run by women of color.
"Our mission is to provide economic opportunity for all people," Perkins stated. "And historically in America, women have been underserved and kept out of the financial conversations."
According to the International Finance Corporation, there is a financing gap of $300 billion dollars for formal, female-owned small businesses. In addition, financial services are limited or out of reach for more than 70% of female-owned companies.
Nuray Ozbay, investment associate for Self Help Federal Credit Union in San Francisco, said her division lent almost $410 million to 17,000 women in California since 2008. She pointed out some women can have a hard time qualifying for a loan.
"Women's ownership of land or home or that type of asset is lower than men," Ozbay explained. "Hence, they have larger barriers in access to lending."
Malea Chavez, executive director of the Women's Building, a nonprofit in San Francisco which helps women get ahead, said during the pandemic, women took on the bulk of the caregiving, which kept millions out of the workforce.
"It's much more challenging for them to prove their working records, to have access to credit, to be able to qualify for loans, to be able to start a business," Chavez outlined. "All of those things are just more challenging because they have less access to the experience that's needed to qualify."
Many community development financial institutions provide free counseling to help clients take charge of their financial future.
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Online scams are growing in scale and sophistication, affecting millions and creating economic losses estimated at $1 trillion globally in 2023.
The upcoming Global Anti-Scam Summit in Arlington, Va., will bring experts together to develop strategies to combat the threat.
Jorij Abraham, managing director of the Global Anti-Scam Alliance, said as scams continue to surge, inflicting financial and emotional harm, there is an urgent need to work together.
"The big challenge is that we have to work across the different industries and across borders because scammers are getting very, very professionalized," Abraham pointed out. "We see scammers usually doing the same scam in 80 different countries and there the challenge is really putting them behind bars."
The summit is scheduled for Nov. 12-13.
Abraham advises people to consult friends and family before acting on suspicious texts or emails. According to the FBI, scams targeting Americans age 60 and older led to more than $3.4 billion in losses in 2023, though many cases go unreported.
The FBI also warns the public about scammers exploiting the 2024 U.S. general election for financial fraud. Abraham noted scams are becoming among the most reported crimes.
"We are continuously being bombarded by scammers who are trying to get our identity or our money," Abraham observed. "The goal of the summit is to discuss how can we reduce the approaches by scammers, trying to make sure that they are less successful and in the end actually are trying to really catch the scammers."
The FBI's report found tech support scams to be the most commonly reported type of elder fraud in 2023, affecting nearly 18,000 victims over age 60. Investment scams, however, were the most financially damaging, resulting in more than $1.2 billion in losses. The FBI said the fraud often involves cryptocurrency schemes targeting older Americans' finances.
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Millions of Californians buy used cars still under a manufacturer's warranty - but consumer groups say those warranties are now essentially unenforceable.
It's the result of a ruling Thursday by the California State Supreme Court. The panel of judges agreed with car manufacturers that the state's so-called "lemon law" only applies to new cars.
"You won't be able to tell the manufacturer, 'Hey, you have to fix my car or I want a refund.' The manufacturer can just blow you off," said Rosemary Shahan, president of the nonprofit Consumers for Auto Reliability and Safety.
Owners of these used vehicles could be faced with big unanticipated repair bills if the manufacturer opts not to honor the remainder of the warranty. The court ruling means they will no longer have a right to a refund or replacement vehicle.
Shahan said she thinks that now the California Legislature should step in. She said other states already have acted to better protect used-car buyers.
"A number of other states have used car 'lemon laws,' where they mandate warranties," she said, "and they say if you pay a certain amount for a used car, that the warranty has to last for a certain period of time, and you have the right to get a refund or replacement."
The case, Rodriguez v. Fiat Chrysler of America Inc., has been in litigation for several years. Lemon-law experts say it is unclear whether this decision covers what are known as "certified" used vehicles - promoted by the manufacturers as "like new."
Disclosure: Consumers for Auto Reliability and Safety Foundation contributes to our fund for reporting on Consumer Issues, Environmental Justice, Social Justice. If you would like to help support news in the public interest,
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CORRECTION: An earlier version of this story misstated the nature of additional flood insurance requirements. It is optional in most, but not all, cases. (10:45AM MST, October 28, 2024)
Since Hurricanes Helene and Milton devastated Florida, more than
49,000 insurance claims have been denied, leaving thousands of residents in financial uncertainty as they attempt to rebuild.
According to data from the Florida Office of Insurance Regulation, many companies denied claims related to flood damage, a peril not typically covered under standard homeowners' insurance policies.
Mark Friedlander, corporate communications director for the Insurance Information Institute, explains that many denied claims result from homeowners not having separate flood insurance, which is required for policyholders with Citizens Insurance and those with mortgages in high-risk zones.
"Standard home, condo and renters policies do not include flood damage," Friedlander pointed out. "If you're filing a flood loss with your property insurer, it's going to be denied. Another issue is not meeting the deductible; that's another big category of denials."
For instance, he noted if you have a $10,000 windstorm deductible and your damage is $8,000, there will be no claim payout. He added the threshold has led many homeowners to find themselves without compensation for damages falling just short of deductible limits. He emphasized property owners should consider purchasing separate flood-insurance policies to be fully financially protected.
For residents whose claims were denied, Friedlander advised considering Federal Emergency Management Agency assistance as a partial alternative. He revealed some homeowners intentionally file claims they know will be denied to meet FEMA requirements.
"In order to qualify for FEMA emergency grants, you must prove to FEMA that you did not have insurance coverage for the loss," Friedlander stressed. "The only way to do that is to get a denied claim. You need to show the letter from your insurer to FEMA as part of the application process for the grant."
Florida's high cost of property insurance added another layer of difficulty, with annual premiums averaging $5,527 dollars for a home valued at $300,000. The premium is more than twice the national average, creating a financial strain for many. Despite the recent hurricanes, Friedlander reassured residents Florida's insurance market remains resilient, crediting recent legislative reforms.
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