News - February 13, 2011

Snow brings money problems
By LAURIE WINSLOW World Staff Writer

After being cooped up inside for days and missing work, some snow-struck individuals may find themselves struggling with finances.

Regent Bank has seen more overdrafts. In some cases, businesses couldn't receive payments from their clients because of postal disruptions. Or, clients had money but couldn't get to the bank from their home or office to deposit the money, said Sean Kouplen, CEO of Regent Bank.

"It's really a challenge because not only do you have small businesses that are closed and are losing revenue and unable to get payments to the bank, you also have hourly workers who don't get paid, and that creates a financial hardship with them, too," Kouplen said. "We're trying to take things on a case-by-case basis. We want to help the small businesses and individuals get through this."

Regent Bank has a good relationship with its customers and understands the situation and can work with customers to waive any fees incurred because of the weather, Kouplen said.

Customers also can prepare for storm situations, he said. For example, businesses can acquire remote deposit capture technology that allows them to make deposits from their office by scanning checks and sending an electronic image to their bank. They also can set up an operating line-of-credit so they have reserves.

Kouplen recommends that bank customers who incur bank charges because of the weather call their financial institution.

"Pick up the phone and explain what's going on," he said. "If people don't do anything and they are just quiet and assume there is nothing that can be done, they're going to incur the fee, and the bank won't think twice about it."

Oklahoma Natural Gas Co. hasn't taken specific steps with payments or set up a grace period as a result of the weather but encourages customers who anticipate any billing difficulty because of the storms to contact the company, said Don Sherry, an ONG spokesman.

ONG has 21 billing cycles, so not all natural gas customers are billed at the same time, he noted.

"The number of people who potentially would have been affected by mail delay across our customer base is fairly small, but we're always willing to work with customers on an individual basis if they contemplate any difficulty in their ability to pay on time," Sherry said.

He noted that customers have the option to pay online or via phone. ONG customers who encounter a billing problem can call customer service at (800) 664-5463 or visit the company's website at tulsaworld.com/ong

AEP-PSO hasn't seen much of an uptick in communication from customers having bill payment issues because of the weather, a company official said.

"Our call volume is kind of down. That may be due to the fact that bills were delayed getting to them because of the problems with mail delivery. ... We've not noticed any effect yet," said Ed Bettinger, a spokesman for American Electric Power-Public Service Company of Oklahoma.

He added, "We don't extend due dates, but we always encourage customers who are having problems paying the bill by the due date to contact us as soon as possible to work out payment arrangements with us."

People can visit PSO's website at tulsaworld.com/aep-pso or call its Customer Solutions Center at (888) 216-3523.

Credit Counseling Centers of Oklahoma, likewise, hasn't seen an increase in calls from individuals seeking credit counseling as a result of the snowstorms, but Margo Mitchell, president and CEO, expects that could change in the coming weeks.

Hourly employees or those who depend on substantial tips may have been financially hurt by the storms, she said.

What to do

For individuals who have taken a financial hit from the record snowstorm, Margo Mitchell, president and CEO of Credit Counseling Centers of Oklahoma Inc., offers the following recommendations.

• Realize you are not alone. Options and help are available. CCCS offers credit counseling. Visit tulsaworld.com/credit or call (918) 744-5611.

• Prioritize debt. Pay rent or house payment first. Then pay utility and car payments, which is secured debt.

• Call creditors in advance and explain the situation, but don't make a promise you can't keep. For example, don't say you'll be able to pay $500 out of your next paycheck and then not do it because creditors may become more aggressive in their collection efforts. Instead, tell them you don't know when you can catch up on your payment but are very concerned and will stay in contact.

• Consider making only the minimum payment on your credit card bill. People typically are advised to pay as much as they can above the minimum, but this month may be the time to make only the minimum to avoid being hit with past-due fees. Return to higher payments in the next billing cycle.

• File your tax return and take advantage of any refund due. Electronic filing can yield a quicker return. This also might be a good time to adjust your W-4 and get a little more money with each paycheck instead of receiving a large refund later.

• Eat out less. Plan menus before going to the grocery store, and prepare meals from scratch rather than buying prepared meals, which cost more.

• Don't borrow money and dig a deeper financial hole. For example, don't use payday loans, which are expensive.

• Track expenses for a week or two to find spending leaks and adjust spending habits.

• Discuss finances with family. This is a good way to teach children about financial management and financial skills, but families also may be surprised with the ideas that children come up with.

UPS driver Russell Rychtanek delivers packages in heavy snow at Riverside airport. TOM GILBERT / Tulsa World