Nissan Canada Finance said 1.13 million customers in Canada may be victims of a possible data breach.
By Katie Dangerfield | Global News
Nissan Canada Finance says the personal information of approximately 1.13 million customers may have been exposed due to a data breach.
In a media release sent Thursday, the company said the breach involved unauthorized person(s) gaining access to the personal information of some customers that have financed their vehicles through Nissan Canada Finance and INFINITI Financial Services Canada.
It’s not yet known how many customers have been impacted.
Nissan Canada became aware of the data breach on Dec. 11, but did not notify customers until Thursday, a spokesperson told Global News.
“We immediately began taking steps to make sure the breach happened, everyone is now being contacted,” a spokesperson said.
The unauthorized access may have impacted the following types of information for some customers:
- customer name,
- vehicle make and model
- vehicle identification number (VIN)
- credit score
- loan amount and monthly payment.
Nissan Canada is still investigating.
There is no indication that customers who financed their vehicles outside of Canada are affected, the company said.
By Liz Weston
THE ASSOCIATED PRESS
The phrase “death cleaning” may sound jarring to unaccustomed ears, but the concept makes sense. It’s about getting rid of excess rather than leaving a mess for your heirs to sort out.
“Death cleaning” is the literal translation of the Swedish word dostadning, which means an uncluttering process that begins as people age. It’s popularized in the new book “The Gentle Art of Swedish Death Cleaning” by Margareta Magnusson.
Magnusson focuses on jettisoning stuff, but most older people’s finances could use a good death cleaning as well. Simplifying and organizing our financial lives can make things easier for us while we’re alive and for our survivors when we’re not.
This task becomes more urgent when we’re in our 50s. Our financial decision-making abilities generally peak around age 53, researchers have found, while rates of cognitive decline and dementia start to climb at age 60. As we age, we tend to become more vulnerable to fraud, scams, unethical advisers and bad judgment, says financial literacy expert Lewis Mandell, author of “What to Do When I Get Stupid.” Cleaning up our finances can help protect us.
Some steps to take:
CONSOLIDATE FINANCIAL ACCOUNTS
Fewer accounts are easier to monitor for suspicious transactions and overlapping investments, plus you may save money on account fees. Your employer may allow you to transfer old 401(k) and IRA accounts into its plan, or you can consolidate them into one IRA. For simplicity, consider swapping individual stocks and bonds for professionally managed mutual funds or exchange-traded funds (but check with a tax pro before you sell any investments held outside retirement funds). Move scattered bank accounts under one roof, but keep in mind that FDIC insurance is generally limited to $250,000 per depositor per institution.
Memory lapses can lead to missed payments, late fees and credit score damage, which can in turn drive up the cost of borrowing and insurance. You can set up regular recurring payments in your bank’s bill payment system, have other bills charged to a credit card and set up an automatic payment so the card balance is paid in full each month. Head off bounced-transaction fees with true overdraft protection, which taps a line of credit or a savings account to pay over-limit transactions.
PRUNE CREDIT CARDS
Certified financial planner Carolyn McClanahan in Jacksonville, Florida, recommends her older clients keep just two credit cards: one for everyday purchases and another for automatic bill payments. Closing accounts can hurt credit scores, though, so wait until you’re reasonably sure you won’t need to apply for a loan before you start dramatically pruning.
SET UP A WATCHDOG
Identify whom you want making decisions for you if you’re incapacitated. Use software or a lawyer to create two durable powers of attorney one for finances, one for health care. You don’t have to name the same person in both, but do name backups in case your original choice can’t serve.
Consider naming someone younger, because someone your age or older could become impaired at the same time you do, says Carolyn Rosenblatt, an elder-law attorney in San Rafael, California, who runs AgingParents.com. Grant online access to your accounts, or at least talk about where your trusted person can find the information she’ll need, Rosenblatt recommends.
Also create. “in case of emergency” files that your trusted person or heirs will need. These might include:
Your will or living trust
Medical directives, powers of attorney, living wills
Birth, death and marriage certificates
Social Security cards
Car titles, property deeds and other ownership documents
A list of your financial accounts
Contact information for your attorney, tax pro, financial adviser and insurance agent
Photocopies of passports, driver’s licenses and credit cards
A safe deposit box is not the best repository, because your trusted person may need access outside bank hours. A fireproof safe bolted to a floor in your home, or at minimum a locked file cabinet, may be better, as long as you share the combination or key (or its location) with your trusted person. Scanning paperwork and keeping an encrypted copy in the cloud could help you or someone else recreate your financial life if the originals are lost or destroyed.
Manulife Bank survey reveals that despite claiming to understand debt management, many Canadians aren’t meeting debt reduction goals and feel unsupported by their banks
- Knowledge doesn’t cut it: More than half of Canadians claim good knowledge of debt management (54%), however, household debt has reached record highs1 and only a minority (41%) are comfortable with their debt
- Need for allies: Only one in six Canadians believe their bank helps them pay down debt (16%) and puts their needs first (17%); however, those with advisors are 60% more likely to be satisfied with overall financial health
- Missing the mark: Many Canadians say being debt-free is a priority; however, less than a third of debtholders (31%) achieved debt reduction goals in the past year
- Debt impacts health: Most Canadians (53%) believe financial challenges take a toll on mental or emotional health, and a third (34%) on physical health
- Silent treatment: More than 30 per cent of Canadians are embarrassed or unsure of whom to talk to, and 55 per cent seldom talk about own debt with friends or family
TORONTO, Nov. 23, 2017 /CNW/ – Canadians will tap, swipe and click their way through Black Friday, Cyber Monday and into the holiday shopping season under a cloud of debt, despite a majority claiming they know how to manage debt (54%) and saying they are committed to becoming debt free (64%).
While being debt-free is a priority (64%) according to a survey released by Manulife Bank of Canada, Canadian household debt-to-income is at record levels2. While almost half of debtholders surveyed (44%) said they had reduced their debt burden over the past year, (31%) actually met their debt reduction goals.
“When it comes to debt, knowledge alone does not equal power,” said Rick Lunny, President and CEO of Manulife Bank. “There is a clear gap between what Canadians say they know about managing debt, their good intentions, and their ability to do something about it.”
Nearly one-quarter (24%) of Canadians also said they are embarrassed to talk about how much debt they have. Nearly 40 per cent could not say they knew whom to talk to about debt management, while more than half said they seldom have the conversation with friends or family (55%).
|| Lack of confidence and looking for help
Canadians lack confidence in their bank’s willingness and ability to help with debt. While more than seven in ten (71%) would like to be more confident about financial decisions and most look for guidance from their banks to help pay down debt, only a small number actually believe their bank helps them reduce debt (16%) and makes their interests a priority (17%). However, 46 per cent of respondents said they simply do not know how their bank could help.
This despite many Canadians recognizing the link between health and wealth. Nearly nine in ten (88%) said financial issues impact other areas of individuals’ lives and that financial wellness positively impacts overall health and productivity at work. In addition, three-quarters believe financial literacy and support is key to avoiding financial issues, and that having access to financial counselling is beneficial.
However, more than half (53%) said financial challenges impact mental or emotional health, while more than a third (34%) also considered impacts to physical health.
“There is a very strong connection between health and wealth. People should feel confident that they have allies when it comes to managing and reducing debt. Beginning to talk about debt, especially with a financial advisor, is a very important first step. Canadians who do not have a financial advisor are encouraged to seek out somebody they can trust,” says Lunny.
Approximately half of those surveyed expressed satisfaction with their overall financial health (47%); most satisfied were those who worked with financial advisors (59%) in contrast to those without (36%).
Differences between homeowners and renters
Among more than half (54%) of Canadians claiming good knowledge of debt management, homeowners (60%) are significantly more likely than renters (42%) to say they do. Homeowners also indicated different financial priorities than renters, focusing more on savings and investments rather than preparing for unexpected expenses or interruptions of income.
For homeowners carrying mortgages, the key factor in choosing a mortgage was the interest rate. More than half (56%) of respondents put this on the top of their priority list, while only 11 per cent said the ability to pay down their mortgage as fast as possible was most important.
Mortgage holders also reported not having a very good knowledge of critical information, such as the consequences of missing a payment. One in ten were not certain on who their mortgage provider was.
The average level of mortgage debt has remained relatively steady at approximately $200,000 since Manulife Bank last surveyed Canadians in February 2017.
By Armina Ligaya
THE CANADIAN PRESS
TORONTO _ Canada’s banking regulator said Tuesday it is going ahead with a new stress test for home buyers who don’t need mortgage insurance, who will soon have to prove they can make their payments if interest rates rise.
The move is expected to reduce the maximum amount buyers will be able to borrow to buy a home, even if they have a down payment of 20 per cent or more, starting Jan. 1.
The Office of the Superintendent of Financial Institutions set out final guidelines on the changes to its residential mortgage underwriting guidelines Tuesday, the broad thrust of which are similar to what it had proposed in a draft consultation in July that had been criticized for potentially increasing costs and limiting access to mortgages for some buyers.
However, the regulator did tweak the calculation of the qualifying rate for uninsured mortgages to address concerns that using the contractual rate plus two per cent could lead borrowers to seek out shorter terms.
“We didn’t want to create an artificial incentive for borrowers to shorten terms because of the regulation,” superintendent Jeremy Rudin told reporters.
Would-be homebuyers will need to prove they can still service their uninsured mortgage at a qualifying rate of the greater of the contractual mortgage rate plus two percentage points or the five-year benchmark rate published by the Bank of Canada. An existing stress test requires those with insured mortgages to qualify at the Bank of Canada benchmark five-year mortgage rate.
Phil Soper, chief executive of Royal LePage, said most first-time buyers were probably already subject to a stress test, but buyers looking to move up to a larger home may be affected.
“Someone who is using the equity in their home to move from say a condominium to a detached home because they have had a baby or another baby, they may not be able to do that,” he said.
Soper said the change has increased the risk of a market correction, where home prices reset lower.
“I don’t expect that, but the risk certainly increased today.”
Other changes include restrictions on co-lending, or bundled mortgages in which federally regulated lenders pair up with unregulated providers to finance a property aimed at ensuring financial institutions do not circumvent or appear to circumvent rules that limit how much they can lend. Federally regulated financial institutions must also establish and adhere to loan-to-value ratio limits that are updated as housing markets and economic dynamics evolve.
“We certainly see the risks that are caused by high household indebtedness, by the high house, property values in some markets… and the risks posed by potential changes in interest rates,” Rudin said.
The government has tightened mortgage rules several times in recent years including a change last year that expanded stress tests to all insured mortgage applications. Meanwhile, the Bank of Canada has raised interest rates twice in the past few months to the current overnight lending rate of one per cent.
Rudin also said he would consider revisiting OSFI’s uninsured mortgage stress test down the line and adapting it as circumstances change.
“We are prepared to revisit that if there is an evolution in interest rates over time,” he told reporters. “But right now I would expect it to be durable, because it is well lined up with the comparable test … for insured mortgages.”
TD Bank senior economist Brian DePratto said data for August showed insured mortgages were down 4.5 per cent compared with a year earlier, while uninsured mortgage credit grew 17.3 per cent.
“While this is partly related to the rising prices of Canadian real estate, with more and more of it priced above the insurance caps, it also likely reflects the skew stemming from the past stress test requirements,” he wrote.
“As such, today’s change, alongside the explicit guidance around co-lending arrangements, will together help address the shift as far as those borrowing from federally regulated institutions.”
David Madani, senior Canada economist at Capital Economics, estimated that using a traditional 25-year amortization the changes reduce the maximum house price a buyer can afford by about 15 per cent.
“Needless to say, these latest mortgage rule changes will have a negative impact on house prices and household wealth,” Madani wrote in a note to clients.
Rudin reiterated Tuesday that OSFI was aware the stricter guidelines for uninsured mortgages could have unintended consequences, such as sending borrowers towards more risky lenders that are out of the regulator’s purview.
“We can’t control what we can’t control,” he said.
“Our mandate is focused on the safety and soundness of the federally regulated institutions… It isn’t something that we favour but it isn’t something that we have an authority to prevent.”
A spokesperson for Ontario Minister of Finance Charles Sousa said Tuesday it was “too soon to determine the impact of the stress tests imposed by the Federal government.
We support measures that reduce risks for consumers and improve Canada’s long-term growth and competitiveness.”
Gregory Chrispin, Senior Executive Vice-President of Wealth Management and Life and Health Insurance, is pleased to announce the following appointments.
André Langlois has been named Senior Executive Vice-President, Life and Health Insurance.
André will head up operations for Desjardins Insurance and all of its business lines, including: individual insurance, group and business insurance, group retirement savings and creditor and direct insurance. He will be responsible for managing the group savings firm Desjardins Financial Security Investments (DFSI) and the SFL and Desjardins Financial Security Independent Network (DFSIN) distribution networks. André has extensive knowledge of the life and health insurance sector, acquired over nearly 30 years with Desjardins Group.
Michael Rogers has been named Vice-President, Sales and Distribution.
In this national role, Michael will be responsible for individual insurance business development. He will also manage the SFL and DFSIN distribution networks and the group savings firm Desjardins Financial Security Investments, which has more than $14 billion in assets. Michael will be rolling out a renewed service offer for our distribution partners to contribute to their performance and strengthen their presence across the country. Relying on the expertise of 4,800 people and more than 10,000 distribution partners, Desjardins Insurance provides peace of mind to more than 5 million Canadians. With assets of $100.3 billion, the company is the fifth largest life and health insurance company in Canada.
Media Relations – State Farm Canada
Jason Phillips | Motley Fool
Much has been made over the past decade of Canada’s rising household debt, which is now at levels similar to those in the United States prior to the 2008-09 Financial Crisis.
With housing prices in Toronto up more than 30% over the past 12 months, and Vancouver prices having been inflated for several years, many are wondering: now that the Bank of Canada has raised interest rates twice in the last three months, will it be enough to topple the Canadian housing market?
There are five very important reasons why investors should not expect a housing correction in the Canadian market to be of nearly the same magnitude as the one experienced in the United States 10 years ago.
Reason #1: The United States incentivizes home ownership
In the U.S., federal policy actively encourages home ownership, whereas in Canada, policies are designed to encourage access to housing, but they do not explicitly favour home ownership over renting or leasing a property.
It seems then only natural to suggest that creating incentives for home ownership (like, for example, allowing mortgage interest to be tax deductible in the U.S.) would be more likely to create an environment ripe for a housing bubble.
Reason #2: Canada’s housing market is directly backed by the Federal government
In the U.S., Fannie Mae and Freddie Mac are responsible for providing guarantees on mortgage-backed securities and providing overall stability to the housing system.
At the time of the Financial Crisis, Fannie Mae and Freddie Mac were privately owned, with the “implicit” backing of the Federal government. Yet, when push came to shove, investors learned the hard way the difference between an implicit guarantee and direct backing.
By comparison, the Canadian equivalent responsible for providing insurance and stability, is the Canada Mortgage and Housing Corporation (CMHC) — a Crown corporation directly owned by the Canadian Federal government.
Reason #3: Canada does not allow non-recourse mortgages
In Canada, mortgages are typically “full-recourse” loans, meaning the borrower continues to be responsible for repaying the loan in the event of a foreclosure, which effectively incentivizes the borrower to do everything in their power to avoid foreclosing and losing the property.
Meanwhile, many U.S. states employ “non-recourse” mortgages, which, in the event of a foreclosure, allow the borrower to walk away from their homes, leaving the lender with no-recourse besides taking over ownership of the property.
It’s easy to see how non-recourse mortgages can exacerbate the problem of homeowners defaulting on their payments.
Reason #4: Canada has tighter restrictions on mortgage insurance
Canadian legislation prohibits lenders from issuing mortgages without loan insurance if the loan is greater than 80% of the value of the property.
Insurance which is purchased from the CMHC covers the entire amount of the loan for the entire life of the mortgage.
In the U.S., it is a little different; while many lenders will require insurance, they are not legally obligated to do so.
Moreover, in the U.S., loan insurance is “partial,” often covering 20-30% of the loan amount and is cancelled as soon as the value of the loan falls below 78% of the purchase price.
Reason #5: The relative absence of a subprime market in Canada
Sub-prime mortgages are made to riskier borrowers, such as those with a weaker credit history or less stable income.
In the U.S., before the housing crisis, the sub-prime mortgage market peaked at 23.5% of all mortgage originations.
By contrast, in Canada today, the sub-prime mortgage market, which includes Home Capital Group Inc. (TSX:HCG), accounts for less than 5% of originations, making the market significantly less risky.
Regardless of how you look at it, rising interest rates are not a good omen for the future of Canada’s housing market. And while delinquencies today are well below historical averages, that may actually be confirming evidence that a bubble is present.
Current and prospective homeowners should approach the market with caution. Those warning that the “sky is falling” and that the environment is similar to the situation in the U.S. 10 years ago, ought to think a bit more Foolishly.