• Fed Cracks Down On Unfair Credit Tactics
• Cost Of Insurance Outpaces Income By 10X
• Americans Not Confident About Retirement Security
• Poll: What Is Your Perspective On The Current Economy?

Fed Cracks Down On Unfair Credit Tactics

As the prevalence of credit and debit cards continue to grow, the Federal Reserve Board is unveiling a plan to put more protections in place for cardholders. The proposal increases transparency in the lending industry and would clamp down on deceptive practices such as increases of card balances as a result of unexpected rate changes. It would also address overdraft services used by banks in accordance with checking accounts. "The proposed rules are intended to establish a new baseline for fairness in how credit card plans operate," said Federal Reserve Chairman Ben S. Bernanke, in a prepared statement. "Consumers relying on credit cards should be better able to predict how their decisions and actions will affect their costs." The initiative is part of an ongoing effort to reform the credit card industry. Other protections for consumers include prohibiting banks from applying payments in excess of the minimum in a manner that maximizes interest charges. In a mid-2007 NASE poll, nearly half (47%) of micro-business owners said they use credit cards to help with their business cash flow needs. They also favored a variety of proposals that would reform the credit industry, including prohibiting card companies from randomly changing the terms of their contract with the cardholder and requiring card companies to introduce 45 day notification prior to any rate increases. Read more about the credit proposal at www.federalreserve.gov.

Cost Of Insurance Outpaces Income By 10X The cost of family health insurance has increased 10 times faster than many workers’ incomes, according to a new study. The analysis was released by the Robert Wood Johnson Foundation, a nationwide research organization dedicated to health and health care. According to the study, there was a 30 percent increase in cost from 2001-2005 in what employees paid for family health coverage, yet those policyholders only received a 3 percent increase in their wages during that time. “Many micro-business owners must turn to the coverage offered by a spouse’s employer or are forced to go without coverage entirely,” said Kristie Darien, executive director of the NASE legislative offices. “Our lawmakers must provide workable solutions to help remedy what has become a dire need for many individuals.” With 47 million uninsured individuals across the nation, improving access to health care has been a particular priority of the 2008 presidential candidates. Learn more about where they stand on health care reform and other micro-business issues at the NASE Election Watch 2008 site.

Americans Not Confident About Retirement Security The percentage of workers who are certain about having enough money for a comfortable retirement fell dramatically from 27 percent in 2007 to 18 percent in this year. The nine-point drop marks the largest single-year drop since the Employee Benefit Research Institute’s (EBRI) started the Retirement Confidence Survey 18 years ago. Retiree confidence in having a financially secure retirement is also down, dropping from 41 percent to 29 percent, a difference of 12 percentage points. The survey found that health care costs may have played a significant role in the growing pessimism. Forty-four percent of retirees say that they have spent more than they expected on health care expenses. Additionally, more than half (54 percent) of retirees who left the work force earlier than planned said they did so because of health problems or disability. “Americans are finding it more difficult to save for retirement with health costs continuing to soar, and once they’re in retirement, they’re finding that the money they’ve set aside is inadequate to keep up with rising costs,” said Kristie Darien, executive director of the NASE legislative office. “Micro-business owners tend to operate near the profit margin and get hit particularly hard by the wild swings in health care costs.” The NASE’s 2007 Retirement Survey found that health care costs were the second biggest barrier to saving for retirement, only coming after costs associated with basic needs like food and housing. Find more information about NASE Research here.

Poll: What Is Your Perspective On The Current Economy? The NASE would like to hear from you about how the current economy is affecting you and your business. Click here to take this brief survey to help us understand the economy’s impact on you.   Promote Your Business, Be A Media Contact! Become a media contact and get the opportunity to share your experiences as a micro-business owner. Visit www.NASE.org to fill out an informational sheet on the background of your business. Then, send it back to us at the contact information listed on the sheet. You can put your name in the hat to sound off on key legislative issues, and get some free publicity for your business in the process!   Lawmakers and media outlets across the country rely on and regularly cite the NASE as a source of small and micro-business expertise. Help the NASE make sure the micro-business perspective is heard by taking this month’s poll. Click here to log-in and participate. Washington Watch Online Visit the NASE Advocacy Web page to view archived editions of Washington Watch. While you’re there, read the latest updates from the Washington, D.C. office, write your Congressperson, and find out how you can join the fight for micro-business. Web site: http://advocacy.NASE.org.