SPREAD WITH 0.125” BLEED
Consumer Financial
Protection Bureau
YOUR MONEY, YOUR GOALS
Focus on Reentry:
Criminal Justice
A companion guide to assist those working with
people with criminal records.
FREE PRINTED &
DOWNLOADABLE GUIDE
www.consumernance.gov
Published July 2021
TABLE OF CONTENTS 2
What’s inside?
Introduction ......................................................4
How to use this companion guide ...................................6
Financial well-being - the ultimate goal ..............................13
Tool: Step 1: Measuring nancial well-being...........................14
Step 2: Scoring the nancial well-being scale.....................16
Having the Money Conversation ....................................18
Tool: My money picture ............................................20
Tool: Preparing your money situation before or during incarceration .....23
Tool: Preparing for release: Documents and identication ..............26
Modules: Your Money, Your Goals for people with criminal records
Module 1: Setting Goals ...............................................29
Tool: Setting SMART Goals .........................................31
Tool: Putting goals into action.......................................34
Module 2: Saving .....................................................36
Handout: Saving at tax time.........................................38
Tool: Saving and asset limits ........................................40
Module 3: Tracking Income and Benets.................................43
Tool: Income and benets tracker ...................................45
Tool: Understanding your pay stub ..................................47
Module 4: Paying Bills.................................................51
Tool: Spending tracker .............................................53
3 FOCUS ON REENTRY: CRIMINAL JUSTICE
Module 5: Getting through the Month...................................56
Tool: Creating a cash ow budget ...................................58
Module 6: Dealing with Debt ...........................................61
Tool: Reentry debt log .............................................63
Tool: Lowering your debt ...........................................65
Module 7: Understanding Credit Reports and Scores .....................68
Tool: Requesting your free credit report ..............................71
Handout: Requesting your free credit reports by mail from a correctional facility ..75
Tool: Reviewing your credit reports ..................................76
Handout: Disputing errors on your credit report.......................79
Module 8: Choosing Financial Products and Services......................82
Tool: Opening a checking or savings account .........................84
Tool: Evaluating your prepaid or payroll card..........................88
Handout: Knowing your prepaid card rights ..........................93
Module 9: Protecting your Money.......................................94
Handout: How to handle identity theft ...............................96
Handout: Submitting a complaint....................................98
Module 10: Understanding Background Screening Reports ................99
Handout: Background screening reports .............................102
Tool: Reviewing your background screening reports ...................104
Handout: Obtaining your criminal records ............................107
Additional resources ..............................................109
INTRODUCTION 4
Introduction
About the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) is a 21st century agency
that helps consumer nance markets work by making rules more effective, by
consistently and fairly enforcing those rules, and by empowering consumers
to take more control over their economic lives. Learn more at
https://www.
consumernance.gov
About Your Money, Your Goals
Your Money, Your Goals is a nancial empowerment resource. Financial
empowerment is about building the skills you need to manage money and to
choose the nancial products and services that work for you.
Your Money, Your Goals is designed for anyone who works with people living with
low incomes. Maybe you are part of a nonprot, community-based, or private
sector organization, or work in a government agency dedicated to helping the
public.
At the center of Your Money, Your Goals is the nancial empowerment toolkit.
The toolkit gives you the tools and information you need to help people set and
achieve goals; build skills in managing money, credit, and debt; and choose
nancial products that are right for them. Each person has different circumstances
and ideas they can benet from, so you can select the tools that best meet their
needs and just work with those topics.
Your Money, Your Goals for people with criminal records
There are an estimated 70 million to 100 million people with criminal records in
the US. In 2019, jails reported more than 10 million
1
admissions. Every year, more
than 600,000
2
individuals are released from prison. Blacks and Hispanics are
disproportionately represented in prison and jail populations. For example, as of
2019 for every 100,000 residents in the United States in each group, there were
1,096 Black residents in prison, 525 Hispanic residents, and 214 White residents.
1 U.S. Dep't of Justice, Bureau of Justice Statistics, Jail Inmates in 2019 (March 2021) available at
https://www.bjs.gov/content/pub/pdf/ji19.pdf
2 U.S. Dep't of Justice, Bureau of Justice Statistics, Prisoners in 2019 (Oct. 2020) available at
https://www.bjs.gov/content/pub/pdf/p19.pdf
5 FOCUS ON REENTRY: CRIMINAL JUSTICE
As noted in a CFPB report: "Because of demographic differences in incarceration
rates among races, the difculty of formerly incarcerated individuals in accessing
the banking system upon release also reinforces racial disparities in access to
nancial products."
3
Many of these justice-involved individuals face barriers to
successful reentry. Many barriers to accessing jobs, housing, education and other
key reintegration outcomes have nancial challenges attached to them.
The CFPB developed the Your Money, Your Goals: Focus on Reentry guide
to help frontline staff working with individuals affected by the criminal justice
system address nancial challenges. This guide includes tools and information
from the toolkit along with information, tips and tools based on insights from
people dealing with the impact of their criminal records. Your Money, Your Goals
is centered on the core philosophy that everyone has the right to control their
money and make their own nancial decisions.
This guide, the toolkit and related materials are free and accessible to assist
organizations, their staff and volunteers in using the Your Money, Your Goals
resources. These resources make it easy for organizations to:
§ Train others on the use of the toolkit, guides and booklets
§ Integrate the resources and training into the organization’s work
§ Develop a referral guide for local, state, and national resources for consumer
nance issues
§ Assess whether the training and tools help staff and volunteers have more
condence about nancial issues and decision-making
Your Money, Your Goals: Focus on Reentry is available as a downloadable PDF le.
Hard copies can be ordered free of charge at
https://pueblo.gpo.gov/CFPBPubs/
CFPBPubs.php?CatID=36 Each tool in this guide is dynamic and interactive and
can also be downloaded individually here: https://www.consumernance.gov/
consumer-tools/educator-tools/your-money-your-goals/companion-guides/
If you are working with individuals in correctional facilities,
we have individually wrapped, binderless booklets
available at
https://pueblo.gpo.gov/CFPBPubs/CFPBPubs.
php?NavCode=XA&CatID=36&PHPSESSID=1p4c55v1livkqpbdr70hjhakt1
3 Consumer Financial Protection Bureau, Taskforce on Federal Consumer Financial Law Report,
Vol. 1, p. 556 (Jan. 2021) available at https://les.consumernance.gov/f/documents/cfpb_
taskforce-federal-consumer-nancial-law_report-volume-1_2021-01.pdf
HOW TO USE FOCUS ON REENTRY 6
How to use Focus on Reentry
This guide — Focus on Reentry — complements the Your
Money, Your Goals nancial empowerment toolkit. You can
use this guide as a primary resource and supplement it with
the full toolkit when you need additional information and
tools.
The introduction to the Your Money, Your Goals toolkit is for you—the social services
staff, volunteers, or other individuals who provide services. This information can help
you prepare to use the toolkit. If you are not already familiar with the Your Money, Your
Goals toolkit, we suggest reviewing it as the rst step. www.consumernance.gov/
your-money-your-goals
What’s inside Focus on Reentry
Focus on Reentry – like the Your Money, Your Goals nancial empowerment toolkit -
consists of a set of ten modules that organizations may integrate into their daily work
with the people they serve. It was not designed as a curriculum. These modules
function independently of one another, can be used in any combination or order, and
are appropriate for people in a wide variety of settings. Staff and volunteers using the
modules also may benet from nancial empowerment in their own lives.
§ Module 1: Setting Goals
§ Module 2: Saving
§ Module 3: Tracking Income and Benets
§ Module 4: Paying Bills
7 FOCUS ON REENTRY: CRIMINAL JUSTICE
§ Module 5: Getting through the Month
§ Module 6: Dealing with Debt
§ Module 7: Understanding Credit Reports and Scores
§ Module 8: Choosing Financial Products and Services
§ Module 9: Protecting your Money
§ Module 10: Understanding Background Screening Reports
You can use the information and tools to help people with
criminal records:
§ Identify nancial challenges to successful transition
§ Obtain documents related to identication to help ease the transition
process
§ Develop a cash ow budget by tracking income and spending
§ Identify and prioritize debt—both debt arising from involvement in the
criminal justice system (criminal justice debt) and consumer debt
§ Access and review credit reports
§ Understand the background screening process and individual rights
when applying for jobs
You can use the guide in one-on-one or small group settings. Each
person’s needs are unique and often complex. Even when there are
multiple issues to address, you shouldn’t try to cover all the information
and tools with everyone you serve. Covering all the tools at once, or even
a few tools at one time, would be overwhelming for most people. Only
review one or two tools at a time, beginning with a key topic and the tools
that make the most sense for their situation.
HOW TO USE FOCUS ON REENTRY 8
Phases of journey Module or section Focus on Reentry Tools
Before incarceration § Starting the money
conversation
§ My money picture
§ Preparing your money
situation before or during
incarceration
During incarceration § Starting the money
conversation
§ Module 7, 9
§ Setting SMART goals
§ Preparing for release: Getting
documents and identication
§ Requesting your free credit
reports by mail from a
correctional facility
§ How to handle identity theft
§ Submitting a complaint
After incarceration § Starting the money
conversation
§ Module 5, 6, 7, 8, 10
§ Setting SMART goals
§ Reviewing your background
screening reports
§ Reentry debt log
§ Creating a cash ow budget
§ Knowing your prepaid card
rights
§ Saving at tax time
When in the reentry journey to use tools
Having conversations about money is important. Focus on Reentry is designed for use before,
during and after incarceration, as well as anytime during the life of a person who has been involved
in the criminal justice system. However, a few of the tools are designed to address needs at a
particular point in the journey. For example, when you are incarcerated, you may want to focus on
your credit report to help identify and address errors and take action to prevent identity theft. The
chart below provides some suggestions for the tools to use.
PHASES OF JOURNEY REENTRY TOOLS
9 FOCUS ON REENTRY: CRIMINAL JUSTICE
Level of
access
Setting
Accessing Your Money, Your Goals
resources
Online
§ Community, e.g., social services
agencies, nonprot organizations,
community supervision
§ Online access
§ Visit www.consumernance.gov
§ Use accessible, dynamic – autollable
and calculable – tools at www.
consumernance.gov/your-money-your-
goals (not llable on mobile device)
§ If you ll out any tools, remember to
download and save those copies, or
print them out.
 
Digital,
ofine
§ Community
§ Correctional facilities
§ No online access
§ Digital ofine access
§ Visit www.consumernance.gov
§ Download accessible and dynamic
PDFs, including Focus on Reentry
and individual tools, at:
www.
consumernance.gov/your-money-your-
goals
§ If you ll out any tools remember to save
them in a le or print them out
Paper
§ Community
§ Correctional facilities
§ No online or digital access
§ Visit https://pueblo.gpo.gov/CFPBPubs/
CFPBPubs.php
§ Order hard copies of Focus on Reentry
and other Your Money, Your Goals
resources free of charge at: https://
pueblo.gpo.gov/CFPBPubs/CFPBPubs.
php?CatID=36
§ Order individually wrapped
booklets for correctional facilities
free of charge at:
https://pueblo.
gpo.gov/CFPBPubs/CFPBPubs.
php?NavCode=XA&CatID=36
How to access Focus on Reentry
You may be working in a variety of settings such as a social services agency, a legal aid organization,
or inside a correctional facility. Some of these settings may have strong online access while others
may be in a paper-only environment. CFPB’s resources are available in any setting in the reentry
journey. The chart helps guide you depending on the level of access you may have.
TYPE OF ACCESS FOR YOUR MONEY, YOUR GOALS RESOURCES
Looking for more?
Focus on Reentry is part of a suite of materials and resources. They are all designed to help organizations,
staff and volunteers integrate nancial empowerment into their organization’s work and train others on
using the resources with the people they serve.
Created by Jaime Serra
from the Noun Project
RESOURCE
CONTENT
LANGUAGE
AUDIENCE
YMYG Financial Empowerment Toolkit
More than 240 pages of information,
including 43 tools and handouts, that helps
people engage in money conversations
https://www.consumernance.gov/
consumer-tools/educator-tools/your-
money-your-goals/toolkit/
§ A resource
that includes
recommendations
on which tools to
use based on the
situation and time
available
§ English,
§ Spanish
§ Chinese
§ Staff and
volunteers who
want to learn
and train others
§ Consumers
seeking help
with nancial
decisionmaking
Companion Guides
Shorter guides to complement the main
toolkit, designed to focus on unique needs
of specic audiences and communities
https://www.consumernance.gov/
consumer-tools/educator-tools/your-money-
your-goals/companion-guides/
§ Focus on Reentry:
Criminal Justice
§ Focus on People
with Disabilities
§ Focus on Native
Communities
§ Focus on Military
Communities
§ English § Staff and
volunteers
working with
the target
populations
§ Consumers
in target
populations
Booklets to help talk about money
Colorful, compact booklets that include
selection of 8 simplied tools from the Your
Money, Your Goals toolkit—all focused on a
common nancial stressor.
www.consumernance.gov/your-money-
your-goals/booklets-talk-about-money
§ Booklets for correctional facilities
§ Co-brand booklets
For booklets - https://pueblo.
gpo.gov/CFPBPubs/CFPBPubs.
php?NavCode=XB&Sub2ID=238&CatID=36
For co-branding - https://www.
consumernance.gov/consumer-tools/
educator-tools/your-money-your-goals/co-
brand-booklets-help-talk-about-money
§ Behind on Bills?
§ Debt getting in
your way?
§ Want credit to
work for you?
§ Building your
savings?
§ English
§ Spanish
(Check for
availability)
§ Staff and
volunteers
§ Consumers
seeking help
with specic
nancial
situation
§ Organizations
interested in
co-branding the
booklets
11 FOCUS ON REENTRY: CRIMINAL JUSTICE
RESOURCE
CONTENT
LANGUAGE
AUDIENCE
Training decks, guides and videos
Power point training presentations, videos,
and guides to help those who want to train
others on how to use the resources
www.consumernance.gov/consumer-
tools/educator-tools/your-money-your-
goals/training-implementation/
§ Each resource is
accompanied by
a training deck
for those who
want to train
other staff and
volunteers
§ English
§ Spanish
(Check for
availability)
§ Organizations
§ Staff and
volunteers
interested in
training others
Surveys
Pre-and post-training surveys
https://www.consumernance.gov/
consumer-tools/educator-tools/
your-money-your-goals/training-
implementation/
§ Brief surveys
designed to
gauge whether
the training
helped staff and
volunteers gain
condence in
having money
conversations
with the people
they serve
§ English § Organizations
§ Staff and
volunteers
Videos to spark action
Short (1-3 minute) videos explain concepts
from Your Money, Your Goals
https://www.consumernance.gov/
consumer-tools/educator-tools/your-
money-your-goals/videos/
§ Videos
introduce topics
such as getting
credit report,
which can be
followed up with
an actionable
tool
§ English § Organizations
to help
introduce
topics and
connect to
toolkit for staff
and volunteers
§ Staff and
volunteers
to help train
others on the
toolkit topics
§ Consumers to
show how to
take an action
HOW TO USE FOCUS ON REENTRY 12
How to get updates
CFPB revises and adds to resources to meet the needs of consumers and stay current
with laws and policies. Check the website for updates to see if there are new or updated
resources to help you help the people you serve. You can also sign up to receive email
updates on the Your Money, Your Goals webpage https://www.consumernance.gov/
consumer-tools/educator-tools/your-money-your-goals/ or email yourmoneyyourgoals@
cfpb.gov to ask to get on the email list.
FINANCIAL WELL-BEING: THE ULTIMATE GOAL 13
Financial well-being: The
ultimate goal
At the CFPB, we work to help people take control of their nancial lives to reach
life goals, achieve nancial peace of mind, and avoid pitfalls that can derail them.
The ultimate goal of our work is to help people improve their nancial well-being.
Financial well-being means how much your nancial situation and money choices
provide you with security and freedom of choice.
Financial well-being is not completely determined by factors like income, education
level, or previous nancial experiences. People with the same income and education
level can experience different levels of nancial well-being.
We developed a questionnaire and a scoring method as tools that can help you take
stock of your nancial well-being as well as the people you serve. Both you and the
people you serve can reect on values and feelings about money, which can help
you connect nancial decision-making and values.
FINANCIAL WELL-BEING: THE ULTIMATE GOAL 14
GETTING STARTED
Measuring nancial well-being
Using Your Money, Your Goals can help you and those you
serve take action to achieve nancial goals. One of the key
questions you might ask yourself after taking action is, “Am
I better off than before?”
To answer that question, you can use our nancial well-being questionnaire and
your resulting score. Together, they let you accurately and consistently measure your
nancial well-being before and after taking steps to improve your nancial situation.
You can use this tool for yourself and administer it to others.
What to do
§ You can use the scale to assess a person’s nancial well-being at intake.
§ The questions can help guide a conversation about money issues.
§ You can also use the scale to track changes in an individual’s nancial well-being
over time.
§ The scale also provides a tool to measure whether your organization’s programs
are improving the nancial well-being of those you serve.
A step further
Use the Scoring Worksheet to get a score from the scale. To nd out more about
what the score means and how you compare to others, you can visit https://www.
consumernance.gov/consumer-tools/educator-tools/nancial-well-being-resources/
FINANCIAL WELL-BEING: THE ULTIMATE GOAL 15
Part 1: How well does this statement describe you or your situation?
This statement describes me Completely Very well Somewhat Very little Not at all
1. I could handle a major unexpected expense
2. I am securing my nancial future
3. Because of my money situation, I feel like
I will never have the things I want in life
4. I can enjoy life because of the way
I’m managing my money
5. I am just getting by nancially
6. I am concerned that the money I have
or will save won’t last
Part 2: How often does this statement apply to you?
This statement applies to me Always Often Sometimes Rarely Never
7. Giving a gift for a wedding, birthday or other
occasion would put a strain on my nances
for the month
8. I have money left over at the end of the month
9. I am behind with my nances
10. My nances control my life
Part 3: Tell us about yourself.
11. How old are you? 18-61 62+
12. How did you take the questionnaire?
I read the questions Someone read the questions to me
CFPB FINANCIAL WELL-BEING SCALE
Questionnaire
NAME OR NUMBER
FINANCIAL WELL BEING: THE ULTIMATE GOAL 16
1. Select the person’s answers, record the response value in the right hand column
and add up the total values for each part of the questionnaire.
This statement describes me Completely Very well Somewhat Very little Not at all
Response
value
1. I could handle a major unexpected expense 4
3 2 1 0
2. I am securing my nancial future
4 3 2 1 0
3. Because of my money situation, I feel like
I will never have the things I want in life
0 1 2 3 4
4. I can enjoy life because of the way
I’m managing my money
4 3 2 1 0
5. I am just getting by nancially
0 1 2 3 4
6. I am concerned that the money I have
or will save won’t last
0 1 2 3 4
Part 1 subtotal: ____________
This statement applies to me Always Often Sometimes Rarely Never
Response
value
7. Giving a gift for a wedding, birthday or other
occasion would put a strain on my nances
for the month
0 1 2 3 4
8. I have money left over at the end of the month
4 3 2 1 0
9. I am behind with my nances
0 1 2 3 4
10. My nances control my life
0 1 2 3 4
Part 2 subtotal: ____________
Total response value: ____________
CFPB FINANCIAL WELL-BEING SCALE
Scoring worksheet
NAME OR NUMBER
0
0
0
17 FOCUS ON REENTRY: CRIMINAL JUSTICE
Total
response
value
Questionnaire
self-
administered
Questionnaire
administered
by someone else
18-61 62+ 18-61 62+
0 14 14 16 18
1 19 20 21 23
2 22 24 24 26
3 25 26 27 28
4 27 29 29 30
5 29 31 31 32
6 31 33 33 33
7 32 35 34 35
8 34 36 36 36
9 35 38 38 38
10 37 39 39 39
11 38 41 40 40
12 40 42 42 41
13 41 44 43 43
14 42 45 44 44
15 44 46 45 45
16 45 48 47 46
17 46 49 48 47
18 47 50 49 48
19 49 52 50 49
20 50 53 52 50
21 51 54 53 52
22 52 56 54 53
23 54 57 55 54
24 55 58
57 55
25 56 60 58 56
26 58 61 59 57
27 59 63 60 58
28 60 64 62 60
29 62 66 63 61
30 63 67 65 62
31 65 69 66 64
32 66 71 68 65
33 68 73 70 67
34 69 75 71 68
35 71 77 73 70
36 73 79 76 72
37 75 82 78 75
38 78 84 81 77
39 81 88 85 81
40 86 95 91 87
2. Find the nancial well-being score
How old is the person?
18-61 62+
How did the person take the questionnaire?
Self-administered
Administered by someone else
Because scores vary based on age and how
the questionnaire was administered, you must
convert the total response value to a nancial
well-being score.
a. Find the row that corresponds to the total
response value.
b. Follow that row across to the column that
corresponds to the person’s age and how the
questionnaire was administered.
c. Record the nal score.
Financial well-being score: _________________
Learn more at
consumernance.gov/nancial-well-being
Consumer Financial
Protection Bureau
18
Having the money
conversation
Understanding how incarceration can affect their personal
nances is the rst step in empowering the people you
serve
At a glance
These tools can help you start the money conversation with people facing difcult
choices.
My money picture
Preparing your money situation before or during incarceration
Documents and Identication
Overview
Often, people who are in the criminal justice system - before, during or after
incarceration - struggle with money or nancial issues. Depending on the setting
and where the person is in the transition process, there are different approaches you
can use with them to reect on their goals and values.
The tools in this Module can help you:
§ Protect money before or during incarceration
§ Discuss values around money
§ Learn what documents are needed while transitioning from incarceration
Using the tools
§ Use My money picture to help you determine the nancial issues you want to
focus on and which other tools will help you improve your situation. This tool can
be used to help you think about your values and choices around money anytime -
before, during or after incarceration.
19 FOCUS ON REENTRY: CRIMINAL JUSTICE
§ Use Preparing your money situation before or during incarceration to review
a few key money decisions you may be facing and how to get help for them,
such as getting a freeze on your credit report
§ Use Getting documents and identication to identify important sources
to verify identity and how you may secure them. Being able to verify your
identity is always important. If you are incarcerated, focusing on getting
your documents is essential to help with the transition process and to spot
potential identify theft issues.
HAVING THE MONEY CONVERSATION 20
GETTING STARTED
My money picture
This tool helps you build a picture of where you are and
where you want to go nancially. This can help point to your
next step in this guide.
Values and money decisions can be sensitive and challenging for people transitioning
from incarceration or facing challenges due to their criminal record. The tool is meant
to help people reect on their own values around money. Individuals may not want
to discuss or share their responses. What is important is that they are honest with
themselves, and they understand the tool is designed to help them with the reentry
process.
What to do
You can use the method that you think works best with each individual and depending
on the setting, for example:
§ Print out the page and give it to the individual to complete.
§ Read the questions and ll in the person's responses, in the PDF or on the printed
copy.
§ Weave the questions into a conversation with the person and note the responses in
the PDF or on the printed copy.
Depending on the situation, you may want to ask the person to include members of
their family. Discussing money goals together, or pooling resources, may help with
transition.
A step further
If you keep a copy of this tool, be sure you have a system for keeping the information
completely condential. Be ready to describe your system for keeping this information
secure. As you proceed, follow your organization’s policies when it comes to storing
and handling people’s personal information. If you are working in a correctional facility
setting, you may want to ask ahead of time about the procedures for the individuals
you serve to keep and store documents.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/companion-guides
HAVING THE MONEY CONVERSATION 21
1. Answer the questions below.
2. Use the answers to identify information and resources that can help you address the nancial
issues you care about.
If you could change one thing about your money situation, what would it be?
Money means different things to different people. What does money mean to you?
Values are the things that are most important to people. What are some of your values?
Questions Yes No
I don't
know
Do you have dreams for you or your family that
require money to make them happen?
Do you have or will you have a safe and affordable
place to live?
Do you have or will you have reliable transportation?
Do you have or have you applied for benets,
including Medicaid, Medicare, or other health care
coverage?
Use My money picture to nd a place
to start your conversation
22 FOCUS ON REENTRY: CRIMINAL JUSTICE
Questions Yes No
I don't
know
When unexpected expenses or emergencies
happen, do you think you have or will have some
money set aside to cover them?
Do you have court-ordered nes or debts related
to your conviction that you are struggling or may
struggle to pay?
Do you have student loans or other debts such as
child support, that you may have trouble paying?
Do you have an idea of your credit score? Have you
ever ordered your credit report?
Do you have a copy of your criminal record or RAP
(Record of Arrest and Prosecution)? If not, do you
know how to get it?
Do you or will you have a checking or savings
account at a bank or credit union? A general purpose
prepaid card?
Have you had issues with a nancial product or
service like a bank account, loan, mortgage, debt
collector, or credit report that you haven’t been able
to resolve?
HAVING THE MONEY CONVERSATION 23
GETTING STARTED
Preparing your money situation
before or during incarceration
Incarceration poses many challenges, including accessing and maintaining nances.
This tool is to help you identify and take action before or soon after incarceration to
minimize some of your exposure to nancial harm. For example, if you, or someone
on your behalf, places a freeze on your credit report while in prison, that may help
prevent identify theft.
What to do
You can use this checklist prior to or soon after incarceration.
§ Identify any of the issues that apply. It is important to highlight that there are
actions a person can take to protect themselves from loss, even when they are
incarcerated.
§ Use the websites and the "Additional resources" provided to access the appropriate
tools or information to address the issue.
§ If you work with people in correctional facilities, you can print the tools and
information in advance.
A step further
If you are working with someone in a correctional facility, you can inquire ahead of time
whether the facility has some of the resources discussed in the tool. Also, you can nd
out their policies for keeping condential documents for people in their facilities.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/companion-guides/
HAVING THE MONEY CONVERSATION 24
Get ready by Preparing your money
situation before time of incarceration
1. Review all the items on the list to see if any apply to you.
2. For those you check, seek out the information by visiting the website or tool, or asking a trusted
family member, friend or social services or legal services provider to get the information. If you
are already in a correctional facility, you may want to seek out resources from staff in the library,
other staff, or social services or legal services provider.
Child support
If you have child support obligations and will be unable to pay when you are incarcerated,
you may want to seek assistance with getting a modication of the child support order.
For state-by-state information on how to change a support order, visit:
https://www.acf.hhs.
gov/css/parents/how-do-you-get-child-support/changing-order
Student loan debts
Private and public student loans may feature a range of alternative repayment plans that may
be available to an incarcerated individual. For federal student loans, you may be eligible
for an income-driven repayment plan and qualify for reduced or $0 monthly payments.
But it is critical to look into these options as soon as you transition to incarceration to make
sure all requirements are met. For more information, see https://www.consumernance.
gov/consumer-tools/student-loans/ and Additional resources of this guide.
https://www.
consumernance.gov/your-money-your-goals/companion-guides/#anchor_reentry
Protecting against identity theft
You may want to put a free credit freeze or fraud alert on your credit to help prevent identity
theft when you are incarcerated. See Focus on Reentry guide Handout: How to handle
identity theft in Module 9: Protecting your money. https://www.consumernance.gov/your-
money-your-goals/companion-guides/#anchor_reentry
Bank or credit union account
If you have an account that you won’t be using, you should check with your bank or credit
union about the policies for inactive accounts and account closing. If the bank or credit union
closes the account due to inactivity, you may incur fees and it may affect your ability to get an
25 FOCUS ON REENTRY: CRIMINAL JUSTICE
account in the future. For more information on accounts, see Focus on Reentry guide Module
8, Tool: Opening a checking or savings account. https://www.consumernance.gov/your-
money-your-goals/companion-guides/#anchor_reentry
Power of attorney
If you think you will need help managing your money or property while you are incarcerated,
you may want to seek assistance to make a power of attorney. A power of attorney is a legal
document that gives another individual (the “agent”) legal authority to make decisions
about your (the “principal’s”) money or property. Anyone interested in setting up a power
of attorney should seek legal assistance. Every state has its own rules about what’s in the
document, witnessing requirements and the agent’s duties. For legal services programs in
your state, see www.consumernance.gov/ask-cfpb/how-do-i-nd-an-attorney-in-my-state-
en-1549/
If you do set up a power of attorney, the CFPB’s Managing Someone Else’s Money, Power of
Attorney Guides can help explain to you and your agent how the power of attorney works
and the responsibilities of the agent. https://www.consumernance.gov/consumer-tools/
managing-someone-elses-money/power-attorney-guides/
HAVING THE MONEY CONVERSATION 26
GETTING STARTED
Preparing for release: Documents and
identication
This tool will help you identify the documents and types of
forms of identication you need when you transition to the
community.
If you are transitioning from incarceration, you may need help with getting or renewing
identication documents. Applying for a job or benets, opening a bank account,
and many other activities require documentation of identity. Working to resolve
identication and secure documents before release will make it easier for you to
achieve goals such as securing housing or benets.
To obtain your driver’s license or identication cards, you have to complete
an application and pay an application fee, although some states may provide
identication cards for a reduced fee or for free.
What to do
§ Go through the list to see which documents you do and do not have.
§ Get copies of the documents you don’t have. If you are incarcerated, it is important
to nd out what the facility's process is for getting documents such as a replacement
Social Security card.
§ Store your documents in a safe place. If you are incarcerated, check with staff at the
facility to nd out how to store and protect your documents.
A step further
Check with your state resource ahead of time so you know what documents are needed.
Before you work with a person who is incarcerated, you might want to ask about the
correctional facility's policies with regard to obtaining and storing identity documents.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/companion-guides/
HAVING THE MONEY CONVERSATION 27
Getting documents and identication
will ease your transition
1. Review the list and check off those documents you already have.
2. Go back and see which documents you need to get and can get while you are incarcerated.
Document Status Where to get it
Certied copy of birth
certicate
Have it
Ordered it
Need help
To get a copy of your vital records such as your
birth certicate, write to the state in which you were
born. Find out where to write for each state by
visiting
https://www.cdc.gov/nchs/w2w.htm
State picture
identication card or
driver’s license
Have it
Ordered it
Need help
Some states have limited purpose driver’s or
identication cards for those that cannot meet the
identication requirements for the other cards,
for example, if you do not have a Social Security
number. In some states, there may be restrictions
on getting your license or state ID if you have
outstanding criminal debt. Check to see if your
state offers a payment plan for your debt. To nd
out your state’s requirements visit
https://www.usa.
gov/motor-vehicle-services
Social Security card
Have it
Ordered it
Need help
To get your Social Security number or a
replacement card contact the Social Security
Administration at
https://www.ssa.gov/reentry
Criminal record or RAP
(Record of Arrest and
Prosecution) sheet
Have it
Ordered it
Need help
If you have access to a copy of your record or RAP
sheet in prison, it is helpful to keep a copy with you
as you transition.
28 FOCUS ON REENTRY: CRIMINAL JUSTICE
Document Status Where to get it
Green card or
immigration documents
(if applicable)
Have it
Ordered it
Need help
For a list of acceptable documents visit https://
www.uscis.gov/i-9-central/acceptable-documents/
list-documents. To replace your green card visit
https://www.uscis.gov/green-card/after-we-
grant-your-green-card/replace-your-green-card.
For other countries consulates, see https://travel.
state.gov/content/travel/en/consularnotication/
ConsularNoticationandAccess.html. For those
with green cards or other immigration status, there
are complicated legal issues involved after an arrest
or conviction. Learn more at
https://www.uscis.gov/
citizenship/learners
Proof of residency
Have it
Ordered it
Need help
Find out which documents your state accepts,
such as a rental or lease agreement, utility bills, or
other documentation with your name. Check to
see if there are any special rules for incarcerated
or formerly incarcerated in your state. Visit https://
www.usa.gov/motor-vehicle-services
Medical records or
immunization records
Have it
Ordered it
Need help
To get a copy of your medical or immunization
records, you need to contact your medical
provider(s). Find out which documents you need to
apply for Medicaid or health insurance at https://
www.healthcare.gov/incarcerated-people
Bank or credit union
account information
Have it
Ordered it
Need help
Contact your bank or credit union directly. In
addition to picture identication, they may ask for
Social Security cards and other information. See
Module 8, Tool: Opening a checking or savings
account. https://www.consumernance.gov/your-
money-your-goals/companion-guides/#anchor_
reentry
Selective service record
or draft registration
Have it
Ordered it
Need help
Registration with Selective Service may be
required for certain federal programs and
benets. Learn more about registering at
https://www.sss.gov/register/who-needs-to-
register/
MODULE 1: SETTING GOALS 29
MODULE 1
Setting goals
Turn your hopes, wants, and dreams into reality by setting
and achieving goals.
At a glance
This module can help you create a plan with weekly targets to help you reach your
goals.
Setting SMART goals
Putting goals into action
Overview
Everyone has a different idea of the future they want to build. What do you want to
accomplish in the near future? What do you want for yourself and your family in the
long term? These ideas of your future are your hopes, wants, and dreams. But they
don’t just happen on their own. Accomplishing your dreams means thinking about
the money you need to help make them come true. Setting goals along the way is a
good strategy to help you achieve your dreams. Some goals may take a few weeks
or months to reach, like saving money to buy gifts for the holidays or buying a new
mattress. These are short-term goals. Others may take many months or even years to
reach, like paying off a large debt. These are long-term goals.
Focus on Reentry
Even while you are incarcerated or in transition from incarceration, it’s important to
set nancial goals for yourself. You can start with thinking about your values, which
help you shape how you prioritize what to do with your money.
30 FOCUS ON REENTRY: CRIMINAL JUSTICE
If your goals support your values, you’ll be more likely to prioritize them, which
gives you a greater chance of accomplishing them. Focus on small steps to achieve
your goals to help you take back control of your nances.
Getting started is the most important step. Write down your goals to make them
real to you. Sharing your goals with others helps you even more to achieve them.
Using the tools
§ Use Setting SMART goals to identify short- or long-term goals and identify steps
to achieve them.
§ Use Putting goals into action to identify small, actionable steps you can take to
achieve your goals.
MODULE 1: SETTING GOALS 31
GETTING STARTED
Setting SMART goals
Setting goals is the rst step toward achieving your dreams.
This tool teaches you how to effectively set goals that
are SMART—meaning they are (S)pecic, (M)easurable,
(A)chievable, (R)elevant, and (T)ime bound
SMART goals provide an easy-to-follow structure for creating goals. This helps you
really break down what you want into a format that makes it simpler to plan for, track,
and ultimately achieve your goals.
To create your goals, rst think about your values. When your goals match up with
the values that are important to you and your family, you’re more likely to prioritize
achieving them.
If you’re not sure what your goals are, think about what you want to change in your life.
See if there’s a goal you can create that would help bring about that change.
It’s likely there are many things you want to achieve. But if you can focus on one or two
priorities that align with your values, you’ll have a better chance of reaching that goal.
What to do
§ List your values to help you think about what is important to you and your family.
§ Brainstorm a list of dreams and goals. Remember, dreams are aspirational and
usually vague. Goals are specic things you can achieve to help you reach
your dreams.
§ Create a SMART goal from one or two items on your list of goals. Write down what
makes this goal specic, measurable, achievable, relevant, and time bound.
A step further
After you’ve written down your SMART goals, take a look at the “Putting goals into
action” tool to create an easy-to-follow plan for achieving your goals.
To access a dynamic and llable version of this tool, visit
https://www.
consumernance.gov/your-money-your-goals/tools
MODULE 1: SETTING GOALS 32
Setting SMART goals based on your
values motivates you to achieve them
1. Think about your values and choose which ones are most important to you.
2. List some things you'd like to change about your life and dreams you have.
3. Pick one or two items from your list of brainstormed ideas and create a SMART goal.
Make copies of the next page if you want to set more than one goal.
Which values are most important to you?
Family/friends
Freedom
Happiness
Health
Reputation
Self-respect
Spirituality
Stability
Status
Other:_________________
Other:_________________
Other:_________________
What are your hopes, wants, and dreams?
Thinking about your values, write a list of things you'd like to change and dreams you have. They can
be short term (less than six months to achieve) or long term (more than six months to achieve).
Things I'd like to change Dreams I have for myself and my family.
33 FOCUS ON REENTRY: CRIMINAL JUSTICE
Use your list of dreams to create a SMART goal.
Remember that SMART goals are Specic, Measurable, Achievable, Relevant, and Time bound.
My SMART goal is...
To make sure your goal is SMART, write in what makes your goal specic, measurable, achievable,
relevant, and time bound.
SMART
characteristic Questions to ask yourself. Your answers
Specic What will I achieve? Who will
benet from the goal? What
specic thing will I accomplish?
Measurable How much? How many? How
will I know when it's done?
Achievable Is this goal something that I
can actually reach? Do I have
the tools and support I need to
accomplish this?
Relevant Is this something that I really
want? Is now the right time
to do this? Why is this goal
important?
Time bound When will I reach this goal? Is
the time frame reasonable?
MODULE 1: SETTING GOALS 34
GETTING STARTED
Putting goals into action
Before you can accomplish a goal, you need a plan for how
to achieve it. This tool helps you turn your SMART goals into
an easy-to-follow action plan.
All goals take time and commitment to achieve. One of the most effective ways to
accomplish your goals is to create an action plan outlining the steps you’ll take.
Many goals also require external resources to achieve. These resources could include
needing information, tools, transportation, or even a professional nancial coach or
counselor to help you. These kinds of resources should be added to your action plan.
Research shows that people who write down specic goals are much more likely
to reach their goals than if they don’t write them down.
4
Sharing those goals with a
friend and checking in with them regularly about your progress also increases the
chances that you’ll reach your goals.
What to do
§ Break up your goal into small, actionable steps. Write each step in a separate box.
§ Consider what resources you will need to take each step and write them next to
that step.
§ Set a deadline for each step’s completion.
§ Think about sharing your progress with a friend or family member. Add their name
next to the step and how often you will check in with them. This can help keep you
motivated.
A step further
Now that you have an action plan for accomplishing your goals, take a look at
Module 2: Saving to learn more about how to save money to achieve your goals.
To access a dynamic and llable version of this tool, visit
https://www.
consumernance.gov/your-money-your-goals/tools
4 Based on research performed by Dr. Gail Matthews, Dominican University of California.
MODULE 1: SETTING GOALS 35
Make a plan for Putting goals
into action
1. Pick a SMART goal that you want to achieve and break it up into steps.
2. Write down each step, the resources you'll need to achieve it, and the due date for completing it.
3. Pick a friend or family member to tell about your goal and check in with them on a regular basis.
This will help you keep yourself accountable.
Select a SMART goal you want to achieve.
My SMART goal is....
Make an action plan for your SMART goal.
Steps
List one specic step in each
box for achieving your goal
Resources I need
This can be things like tools,
information, transportation,
assistance, or money
Date to
complete
step
Who will I
check in with?
And how often
will I check in?
1.
2.
3.
4.
MODULE 2: SAVING 36
MODULE 2
Saving
Saving on a regular basis can help you make progress
toward achieving goals and better handle unexpected
expenses when they come up.
At a glance
This module can help you think about and plan for savings to help you reach your
goals.
Saving at tax time
Saving and asset limits
Overview
Savings is money you set aside today to use in the future. It could be for something
you need in the next few months or even years from now.
People save for many reasons:
§ Unexpected expenses and emergencies
§ A bill they know will be due every few months, like car insurance
§ Annual expenses like children’s school supplies
§ To pay for future purchases or life events, like a new TV, appliances, assistive
devices, a car, a home, or retirement
Focus on Reentry
If you are transitioning from incarceration and without a job, saving may not be your
rst priority. If you can include savings among your goals, identifying easy ways to
save even very small amounts is worth it.
37 FOCUS ON REENTRY: CRIMINAL JUSTICE
Saving money is particularly important if your income uctuates or varies from
week to week. This could be because your income changes depending on how
many hours you are scheduled to work each week. It could also be because you
work seasonally, rather than year-round. In both situations, setting aside money in
weeks or months with higher income can help you pay your bills on time when your
income decreases or stops.
Some things you can think about saving for include:
§ Saving for your immediate needs such as a security deposit for an apartment,
and basic expenses like transportation, food and housing. If you have any
criminal debt, you may want to prioritize saving to pay that debt because it may
prevent you from getting a license or place you at risk of violating parole or
probation.
§ If you receive benets payments, you may face restrictions that limit options
for saving money. Because savings are an asset, there may be "asset limits"
associated with the public benets you receive. Review the Asset limit tool to see
if your benets are affected.
§ If you are disabled, there are savings options that do not impact the asset limits
associated with SSI, Medicaid, or other benets. For more information, see
Focus on Disabilities, Module 2, Tool: Setting up an ABLE account
https://www.
consumernance.gov/your-money-your-goals/companion-guides/
If you are working and make under a certain level of income, you may be eligible
for the Earned Income Tax Credit or other tax credits. It is important to nd out
whether you are eligible. See the Handout: Saving at tax time in this module.
Using the tools
§ Review the Saving at tax time handout for tips on how to prioritize saving when
you get your tax refund. For information about incarceration and ling taxes, see
Additional resources and visit
https://www.irs.gov/individuals/prisoner-re-entry-
program
§ Use Saving and asset limits to get a clear picture of how much you can save
while still maintaining your public benets. Public benets may be affected by
incarceration, which is discussed in Module 3.
MODULE 2: SAVING 38
Saving at tax time.
Ways to save throughout the
tax process.
TAKE ADVANTAGE OF FREE TAX SERVICES
If you need assistance in preparing and ling
your returns one of your choices is to visit a
Volunteer Income Tax Assistance (VITA) site.
IRS-certied volunteers can help you le your
taxes and make a plan for your refund, all for
free. Eliminating preparation fees can make a
big difference in your ability to start or build
your savings, or pay bills and expenses. Find a
site by visiting
https://www.irs.gov/individuals/
free-tax-return-preparation-for-qualifying-
taxpayers or call (800) 906-9887.
UNDERSTAND FEES FOR PAID PREPARERS
If you use a paid preparer to do your taxes, they
may offer you a refund anticipation check. This
is when any fees you owe for tax preparation
are taken out of your refund amount, which is
deposited onto a prepaid card or into a bank
account. There are additional fees you pay for
this service (typically ranging from $25-$55), on
top of the tax preparation fees.
Despite their name, refund anticipation checks
don’t get you money faster than ling your
taxes online and using direct deposit.
CLAIM ALL OF YOUR TAX CREDITS
You may qualify for one of these common
tax credits:
§ The Earned Income Tax Credit (EITC) is a
benet for people who are working, but have
low-to-moderate income. The amount of the
credit is based on your income and ling
status. Income limits and other rules for the
EITC change every year. You can look them
up by visiting
https://www.irs.gov/credits-
deductions/individuals/earned-income-tax-
credit.
§ The Child Tax Credit (CTC) is available to
taxpayers for each qualifying child that
meets certain criteria. The CTC can reduce
the taxes you owe, and if you owe no taxes
it may result in a refund. In order to receive
the child tax credit a taxpayer must be
able to claim the child as a dependent and
must include a Social Security number for
each qualifying child for whom the credit
is claimed on the tax return. For the most
current information visit
https://www.irs.gov/
publications/p972
§ The IRS is required to do additional
verication of information on tax returns
claiming the EITC and the CTC. This may
cause some delay in the receipt of refunds
that include these tax credits.
CONSIDER DIRECT DEPOSIT
If you’re receiving a refund, using direct deposit
is free and faster than a check. Depositing part
or all of your refund into your account or onto
a prepaid card keeps your money secure until
you need it.
Have your account information ready. If you’re
ling your own return there’s space on the
form or in the software to enter your account
information for direct deposit. If you're getting
help ling your return make sure to bring your
account information with you.
39 FOCUS ON REENTRY: CRIMINAL JUSTICE
KICK-START YOUR SAVINGS
Your tax refund can help you pay for things you
need right now or help you save for things you
want down the road.
Great, no-hassle ways to save:
§ Keep part of your tax refund in a separate
account, like a savings account, so you’ll have
money for sudden expenses.
§ Purchase a Series I Savings Bond and earn
interest from the government. You don’t
need a bank account and you can give bonds
as a gift. For more information visit https://
www.treasurydirect.gov/indiv/research/
indepth/ibonds/res_ibonds_ibuy.htm
MODULE 2: SAVING 40
GETTING STARTED
Saving and asset limits
If you receive public benets there can be limits on how
much you can have in assets before the benet is cut off.
It’s important to understand these limits to make sure your
savings goals don’t affect the benets you receive or are
applying for.
Assets are things you own that have value. Your money in a savings or checking
account is an asset. A car, home, business inventory, and land are also assets.
Each program has different rules about what counts as an asset and the total value of
your assets allowed to qualify for assistance. For some programs, these rules are the
same regardless of where you live. For others, each state determines its own rules.
In general, your liquid assets (like cash or money in savings or checking accounts) are
counted as assets. In some states, if the value of your car exceeds a certain amount,
anything over that amount may be counted as an asset as well.
What to do
§ Identify which public benets the person you’re working with currently receives or
may be applying for in the near future.
§ Use the websites provided to gure out their state’s specic asset limit for each
program and write it on the tool.
§ If you regularly work with people who receive public benets, consider completing
this tool in advance. Make copies and review it with the people you serve.
A step further
Asset limit rules change regularly, so check the rules every year to make sure you have
the most up-to-date information.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/your-money-your-goals/tools
MODULE 2: SAVING 41
Learn how Saving and asset limits can
affect your benets..
1. Select the programs that you're enrolled in or plan to apply for in the future.
2. Review the asset limit listed and learn more about each program's asset limit rules by visiting
their website.
PROGRAM TYPE PROGRAM YOUR STATE'S ASSET LIMIT
Disability
Social Security Disability
Insurance (SSDI)
https://www.ssa.gov/benets/
disability/
No limit
Supplemental Security Income (SSI)
https://ssa.gov/benets/ssi/
$
Groceries
and household
expenses
Supplemental Nutrition Assistance
Program (SNAP)
https://www.fns.usda.gov/snap/
state-directory
$
Temporary Assistance for Needy
Families (TANF)
https://www.acf.hhs.gov/programs/
ofa/help
$
Housing and
home energy
Low Income Home Energy
Assistance Program (LIHEAP)
https://www.acf.hhs.gov/ocs/low-
income-home-energy-assistance-
program-liheap
$
Public housing
https://www.benets.gov/
benet/863
$
42 FOCUS ON REENTRY: CRIMINAL JUSTICE
PROGRAM TYPE PROGRAM YOUR STATE'S ASSET LIMIT
Medical
Family Medicaid
https://www.medicaid.gov/state-
overviews/index.html
No limit
Medicare Part D Extra Help
(Low-Income Subsidy)
https://www.shiptacenter.org/
$
Medicare Savings Programs
https://www.shiptacenter.org/
$
State Child Health Insurance
Program (SCHIP)
https://www.medicaid.gov/state-
overviews/index.html
$
MODULE 3: TRACKING INCOME AND BENEFITS 43
MODULE 3
Tracking income and
benets
You have to know what’s coming in before you can plan for
what’s being spent. Tracking the money and benets you
receive is the rst step in creating a budget that works for
you.
At a glance
This module can help you track the income you’re earning and any public benets
you’re receiving to better budget your money. It also helps you understand things like
deductions and garnishment, which affect how much money you bring home.
Income and benets tracker
Understanding your pay stub
Overview
Income is the money you receive from part-time or full-time work, including in prison
or jail, self-employment and investments. You use income to pay for the things you
need and want or can save it to spend toward one of your goals. Money can also
come from things like tax refunds and gifts from family, which can also be spent or
saved like income.
Public benets are payments you may receive from the government to help pay for
necessities. Most benet payments have restrictions about how they can be spent.
So while these payments help increase your spending power, they aren’t as exible as
income earned from a job.
44 FOCUS ON REENTRY: CRIMINAL JUSTICE
Focus on Reentry
It’s important to track benets the same way you’d keep track of your income
because certain rules and restrictions apply for people with criminal records. For
more information about Social Security benets, visit
https://www.ssa.gov/reentry/
§ Social Security benets are not payable if you are incarcerated for more than
30 days. Benets to your spouse or children will continue as long as they remain
eligible. You can be reinstated in Social Security benets the month after your
release. For more information about social security benets, see What Prisoners
Need to Know at
https://www.ssa.gov/pubs/EN-05-10133.pdf
§ Supplemental Security Income (SSI) benets. If you are incarcerated for 12 or
more consecutive months, your SSI benets will terminate and you will need to
le a new application for SSI benets upon release. If you are incarcerated for
fewer than 12 consecutive months and your benets have been suspended, you
apply to reinstate your SSI payments upon release. You can start receiving SSI
payments the month you are released.
§ Social Security Disability (SSDI) benets will be suspended if you have been
convicted of a criminal offense and sent to jail or prison for more than 30
consecutive days. Your benets can be reinstated after your release without
ling a new claim.
§ Temporary Assistance for Needy Families (TANF) and Supplemental Nutrition
Assistance Program (SNAP) benets. According to federal law, people with
felony drug convictions are banned from receiving TANF or SNAP benets.
However, check with your state rst because most states have opted out,
eliminated, or modied the ban.
Using the tools
§ Complete the Income and benets tracker to see how much money you’re
bringing home each month. If you are incarcerated and receiving wages, you
can use the tools to keep track of any wages coming in. Using the tools can also
help prepare for managing your money as you transition to the community.
§ Use Understanding your pay stub to understand what is deducted from your
paycheck to come up with your net pay. Then you can ll out the example for
your own paycheck to help you see how much money is being taken out.
MODULE 3: TRACKING INCOME AND BENEFITS 45
GETTING STARTED
Income and benets tracker
Get a total picture of your income and benets to help you
plan when to pay your expenses.
Your income and benets provide you with the nancial resources to pay for your living
expenses. It’s important to get a clear picture of how much you have coming in every
month, so you can better budget to pay your bills and possibly save toward
your goals.
Remember that income isn't the same as benets. While income (money earned from
a job) can be used to pay for anything, some benets can only be used for a particular
purpose, like paying for food or medical costs.
Also, income may not always come on a regular basis. Knowing what income is regular,
irregular, seasonal, and one-time-only can help you be prepared for when you have
less coming in.
What to do
§ Gather all of your pay stubs, benets statements, and records of electronic
payments.
§ Enter the amount of income or benets you receive next to the correct category in
the appropriate week of the month.
A step further
Look at your total monthly income. If it’s less than what you think you need, use
the“Increasing income and benets” tool in the toolkit for tips on how to make more.
If you haven’t already, consider completing the “Spending tracker” (in Module 4). This
will help you build a cash ow budget, which is covered in Module 5: Getting through
the Month.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/your-money-your-goals/tools
MODULE 3: TRACKING INCOME AND BENEFITS 46
Plan the best times to save and spend
with this Income and benets tracker
1. Fill in the net income amount you receive each
week for any category that applies to you. Note
any income that comes at predictable times
and in the same amount to help show you what
income you can count on each month.
2. Add up the amounts you receive each week and
write that in as the weekly total.
3. Add up the weekly totals to gure out your
income for the month.
4. Make copies of the tracker to follow your income
from month to month.
Term to know: net income
Net income is what you actually bring home in
your paycheck. It's your total pay (gross income)
minus taxes, insurance, and other deductions
that are taken out.
Income for month of
WEEK 1. WEEK 2 WEEK 3 WEEK 4 WEEK 5
Job 1
Job 2
Child support
Disability benets
SNAP
TANF
Other government
programs
Other:
Total weekly income
Total income for this month
Ask a question
Need help getting a
bank or debt collector
to respond
Need help with
benefits
Need
he
Need help paying
utility bills
Need
Be sure Take a breath Resolve
Primary job Government
program
Childcare &
education
Things I can
charge for…
Programs I can
consider…
IfIf I don’t pay for
job-related needs…
If I don’t pay
for insurance…
Things I can sell… Skills I have… Fees I
Groceries &
supplies
Ea
Personal care
Transport
Pets
Healthcare Debt
MISC. MISC.
Need help finding
a job
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
MODULE 3: TRACKING INCOME AND BENEFITS 47
GETTING STARTED
Understanding your pay stub
This tool helps you understand what is in, and taken out
of, your paycheck. It helps you gure out what you will
take home in pay, which will help you create a budget and
manage your money.
For many in transition, their rst job brings their rst paycheck, and the terms and the
amounts on the pay stub are not always easy to understand. Income tax and employee
benet programs can seem like abstract concepts. When you see how your total hourly
or yearly pay amount is reduced by taxes and deductions to the “net” or “take-home”
pay amount, you can think more realistically about how much money is available for
spending and saving.
What to do
This tool helps you see the difference between gross pay and net pay. You can go
over all the entries and deductions on the same pay stub. Then, ll in the form with the
information from your pay stub.
Based on what you discover through this activity, consider ways to keep the
conversation going. For example, you could:
§ Look at the deductions on the W-4 form to see how much is being withheld.
§ Think about how you can use this information on your take-home pay. For example,
you could think about a realistic budget for ongoing expenses like rent or start to
save up for something in the future, like a car.
§ When you receive your W-2 at tax time, you can see how these deductions are
listed. The W-2 form is what you will typically need to le your taxes.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/companion-guides
MODULE 3: TRACKING INCOME AND BENEFITS 48
The rst step in budgeting is
Understanding your pay stub
1. Review the sample pay stub to explore how
the paycheck amount is calculated and what
the entries mean.
2. Get a copy of your pay stub and ll in the
amounts on the second page so you can
see what the deductions are and how your
"net pay", or the amount you take home, is
calculated.
3. Review any employee benet programs that
you may be eligible for at work. Some of those
benets could reduce taxable income and
reduce taxes at the end of the year.
4. Look at the deductions on your W-4 form to
see how much is being withheld and decide
whether you want to change it.
How to read a pay stub
BIG BOX STORE EARNINGS STATEMENT
EMPLOYEE NAME
Casey Smith
FEDERAL TAX
FICA SS TAX
FICA MEDICARE
STATE TA X
RETIREMENT
93.51
125.40
31.90
8.21
220.00
8.63
12.40
2.90
0.74
20.00
123-45-6789 101 123 8/01/21-8/15/21 8/22/21
SOCIAL SEC. NO. EMPLOYEE ID
INCOME
YTD GROSS
CHECK NO.
RATE
YTD DEDUCTIONS
DEDUCTIONS
PAY PERIOD
HOURS YEAR TO DATE
PAY DATE
CURRENT TOTAL
YTD NET PAY TOTAL DEDUCTIONS NET PAY
CURRENT TOTAL
GROSS WAGES
2,800.00 479.02 2320.98 200.00 44.67 155.33
200.00
2
3
4
9
1
7
8
5
6
1 Pay period
Calendar days included in the paycheck. Your
employer sets up the schedule of when you are
paid.
Money you’ve earned
2 Gross wages
How much you made before deductions were
taken out.
3 YTD gross
Summary of total gross wages, deductions, and
net pay from the beginning of the year to end of
the current pay period (year to date).
4 Net pay
Gross pay minus all the deductions. This is your
“take-home” pay.
Money taken out of your paycheck
5 Federal tax
Amount withheld for federal income tax. This is
deducted each pay period so you do not have a
large tax bill when you le your tax return.
6 FICA tax
Amount withheld by your employer to pay your
Social Security tax. Social Security primarily
provides benets to retired people and the
49 FOCUS ON REENTRY: CRIMINAL JUSTICE
disabled. You and your employer both contribute
to Social Security, and your paycheck shows the
part you pay.
7 FICA Medicare
Amount withheld by your employer to pay
your Medicare tax. Medicare is a federal health
insurance program generally available to those
who are 65 and older or disabled.
8 State tax
Amount your employer withholds to pay your
state income tax. (Not all states have income
tax.) This is deducted each pay period so you
do not have to pay a large amount when you le
your tax return.
9 Deductions
Taxes, insurance premiums, and the cost of other
programs that are subtracted from your gross
wages. (Because contributions to programs like a
401(k) retirement plan or health insurance plans
are subtracted before your tax withholdings are
calculated, they reduce your tax liability.)
MODULE 3: TRACKING INCOME AND BENEFITS 50
Pay rate:
Hours worked:
Gross wages:
FICA Medicare:
FICA SS tax:
Federal tax:
State tax (if applicable):
Other deductions:
Total deductions:
Net pay:
YTD gross:
YTD deductions:
YTD net pay:
Put your money to work for you
Most employers offer to deposit your paychecks directly into your checking or
savings account, instead of giving you a paper check. Direct deposit usually makes
your money available faster.
And, you can instruct your employer to split your paycheck between your checking
account and your savings account. This can help your savings add up automatically,
a little at a time.
Questions about opening a checking or savings account? See Module 8 for information
and tools.
Your own paycheck example
MODULE 4: PAYING BILLS 51
MODULE 4
Paying bills
Learn to organize, track, and prioritize bills and expenses.
At a glance
This module can help you better understand where your money goes and learn how
to reduce expenses and pay bills more efciently.
Spending tracker
Overview
To stay nancially healthy, "you should spend less than you earn.” This simple rule may
work for many people, but it isn’t very helpful if you can’t afford to pay all of your bills
and living expenses.
For some, balancing personal priorities and family expectations can sometimes
be a challenge. And if your work is seasonal or irregular, you may be able to cover
everything when you’re working, but struggle to cover expenses in the months or
weeks when you’re not.
Focus on Reentry
As you transition from incarceration, you need to gure out how to pay for your
immediate needs such as food, housing, and transportation. It’s impossible to know
if you’re going to be able to afford all your bills unless you’re familiar with how much
you’re expected to pay each month. Make sure you know what bills are due, how
much they usually are, and what time of the month they’re due.
Tracking your spending is a good way to plan for bills, especially if you haven’t had
the opportunity to spend in a while. When you categorize and write down how you’re
spending your money, it makes it easier to see what’s important to you and where
52 FOCUS ON REENTRY: CRIMINAL JUSTICE
you might be able to cut back. It also helps you think about how much of your
spending is on needs versus wants.
Using the tools
§ Use the Spending tracker to get a clear picture of where you’re using your
money and nancial resources. If you are incarcerated, you can keep track
of any commissary or other spending. Using the tool may help you when
managing money during transition.
MODULE 4: PAYING BILLS 53
GETTING STARTED
Spending tracker
Before deciding on changes to your spending, it’s a good
idea to understand how you use your money now.
Keeping track of what you earn and everything you spend money on for a month,
rather than just a week or two, lets you see all of your income and expenses in one
place. Many people who track their spending for a month discover that they're
spending money in small ways that add up and sometimes don’t match their priorities.
Once they track their spending, many people can nd money to save for emergencies,
unexpected expenses, and goals. Others are able to balance their budgets.
What to do
§ Get a small container or envelope. Every time you spend money, get a receipt and
put it into the case or envelope. If the receipt doesn’t list what you purchased, take
a few seconds and write it on the receipt. If you don’t get a receipt, write down
the amount and what you purchased on a piece of paper and add it to the stack. If
you use a mobile device to keep track of your spending, make sure you read the
“Protecting your information on digital money apps” tips in Module 4 of the toolkit.
§ Analyze your spending. Go through your receipts and enter the total you spent
in each category for each week. Add the weekly amounts per category. Write
these down in the “Category totals” column. Once you have these totals, add them
together to get your total spending for the month. If tracking your spending for a
whole month seems too difcult, try it for just one or two weeks.
§ Notice trends. Circle items that are the same every month (like rent, car, or cell
phone payments). These are often your needs and obligations. This will make
creating your budget easier. Identify any areas you can eliminate or cut back on—
these will generally be wants.
A step further
Once you've tracked your spending, be sure to add it into your budget or cash ow
budget.
To access a dynamic and llable version of this tool, visit
https://www.
consumernance.gov/your-money-your-goals/tools
MODULE 4: PAYING BILLS 54
A Spending tracker can help you analyze
and change your spending habits..
2. Use the table to track your spending in the
categories below. Don’t forget about bills
you share with others.
Spending for the month of:
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5 CATEGORY TOTALS
Cell phone
Debt
payment
Eating out
+ childcare
Entertainment
+ personal care
Health
expenses
others
Housing
+ utilities
Pets
Transport
Other
Total spending this month:
Ask a question
Need help getting a
bank or debt collector
to respond
Need help with
benefits
Need help paying
utility bills
Need help dealing with
debt and foreclosure
Need help finding
a lawyer
Be sure Take a breath Resolve
Education
I
1. Get an envelope to collect your receipts.
3. At the end of the month, add up each category.
nter
Groceries +
Other Supplies
Need help finding
a job
Helping
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
$ 0.00
55 FOCUS ON REENTRY: CRIMINAL JUSTICE
CATEGORIES USED IN THE SPENDING TRACKER
Any costs related to having and using your cell phone
Debt payment Credit card payments, payday loan payments, pawn loan
payments, auto title loan payments, other loan payments
Eating out Any meals or beverages purchased outside of the home
Education +
childcare
Childcare costs, school supplies, school materials fees, eld trips,
other activity fees
Movies or concerts, sports equipment/fees, sporting events,
lottery tickets, alcohol, books/CDs, subscriptions, streaming
services, haircuts, hygiene items, dry cleaning
Groceries +
other supplies
Food and beverages brought into the home, household supplies
(diapers, paper towels, etc.)
Health
expenses
Co-payments, medication, eye care, dental care, health insurance
premiums
Donations to religious organizations or other charities, gifts
utilities
Rent, mortgage, insurance, property taxes, electricity, gas, water
and sewage, landline, television, Internet service
Pets Food, vet bills, and other costs associated with caring for your pets
Transport Gas, car payment, insurance, repairs, transit fares, ride services,
cabs
Other
•
Court-ordered expenses (child support, restitution)
•
Household items (things for your home like cleaning supplies,
kitchen appliances, furniture, other equipment)
•
Savings (saving for emergencies, goals, back-to-school
expenses, holiday purchases, children’s education, retirement)
•
Tools or other job-related expenses (equipment, special
clothing, job-related books, machinery, working animals or
livestock, union dues)
Ask a question
Need help getting a
bank or debt collector
to respond
Need help with…Need help with
benefits
Need help with
health care bills
Need help paying
utility bills
Need help dealing with
debt and foreclosure
Need help finding
a lawyer
Be sure Take a breath Resolve
Entertainment
+ personal care
Cell phone
Need help finding
a job
Helping others
Housing +
MODULE 5: GETTING THROUGH THE MONTH 56
MODULE 5
Getting through the
month
Tracking when your money comes in and goes out can
help you understand if you’ll have enough each week or
month.
At a glance
This module helps you understand cash ow by looking at how money ows into and
out of your household. It also provides suggestions for how to improve your cash ow
if you’re having trouble making ends meet.
Creating a cash ow budget
Overview
When it comes to money, timing matters. If the timing of your income doesn’t match
the timing of your expenses, you may come up short without planning in advance.
That’s why monthly budgets sometimes don’t work out from week to week.
Focus on Reentry
When you are transitioning from incarceration, it’s important to stay focused on
achieving key nancial goals that help you successfully transition into civilian life.
The more frequently you track your money, the easier it is to identify the areas where
you can make changes to move toward your goals and avoid distractions that can
take you off course. Some changes you can make to get through the month with
more ease include:
57 FOCUS ON REENTRY: CRIMINAL JUSTICE
§ Negotiating a new due date on your bills
§ Splitting large payments like rent
§ Consolidating debts such as student loans
For more information on strategies to help you get through the month,
see Module 5 of the toolkit. https://les.consumernance.gov/f/
documents/cfpb_your-money-your-goals_nancial-empowerment_
toolkit.pdf
Using the tools
§ Complete Creating a cash ow budget to see how your income
and expenses line up. If you are incarcerated, you can use the tool
for tracking any money you may have or as a tool to prepare for
managing money as you transition.
MODULE 5: GETTING THROUGH THE MONTH 58
GETTING STARTED
Creating a cash ow budget
A cash ow budget is all about tracking the timing of your
income and expenses to make sure you have enough from
week to week.
Before you can build a cash ow budget, you will need to track your income, resources,
and expenses for at least one month. Use the Income and benets tracker in Module
3 and the Spending tracker in Module 4 to help you get started. You’ll need the
information from both of these tools to create your cash ow budget.
What to do
§ Enter your beginning balance for the week.
§ Add all of the income and benets you receive that week. Subtract all of your
expenses for that week. Include the money you spend on everyday expenses, bills,
and savings. Also include benets you use to pay for things that would otherwise be
paid for with cash, such as SNAP and TANF. Remember that some benets may only
be used for specic expenses. For example, SNAP benets can be used for food,
but not household items, like paper towels. If you receive a housing subsidy, include
the full value of the subsidy under income and resources and the full market rate of
your rent under expenses.
§ What's left is your ending balance. If it’s positive, you have enough income and
benets to make it through the week. If it’s negative, you’re falling short.
§ Copy your ending balance for the week to the beginning balance of the next week.
Repeat these steps for the rest of the weeks that month.
A step further
If it looks like there are weeks where your expenses are more than your income and
benets, you can use the "Improving cash ow” tool in the toolkit to brainstorm some
strategies for getting back on track.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/your-money-your-goals/tools
MODULE 5: GETTING THROUGH THE MONTH 59
Consider expense and income timing
by Creating a cash ow budget
1. Enter your starting balance for the month under Week 1. This is the total amount of money
available to you from cash on-hand, prepaid cards, and checking and saving accounts.
2. Write down the amounts you receive during Week 1 from the categories listed. If you have
income from other categories, add them together and write them under "Other."
3. Add up all your income for Week 1 and enter under "Total income."
4. Write down the amounts you spend during Week 1. If you have expenses from other categories,
add them together and write them under "Other."
5. Subtract all the expenses for Week 1 from the "Total income" for Week 1. Write this amount in
"Ending weekly balance."
6. Copy the amount from "Ending weekly balance" from Week 1 into the "Starting balance" for
Week 2. Repeat steps 2 through 5 for the remaining weeks in the month.
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5
BEGINNING
WEEKLY
BALANCE
Starting
balance
$250 $400 $ $ $
ADD MONEY
YOU RECEIVE
EACH WEEK
+ 300
+ 100
+
Total income
= 650 = = = =
SUBTR AC T
YOUR WEEKLY
EXPENSES
— 200
— 35
— 15
ENDING
WEEKLY
BALANCE
= 400 = = = =
2
3
4
5 6
1
60 FOCUS ON REENTRY: CRIMINAL JUSTICE
WEEK 1 WEEK 2 WEEK 3 WEEK 4 WEEK 5
BEGINNING
WEEKLY
BALANCE
Your starting balance
is a total of your cash,
prepaid card, and
account balances.
Starting
balance
$
Wk. 1 ending
balance
$
Wk. 2 ending
balance
$
Wk. 3 ending
balance
$
Wk. 4 ending
balance
$
ADD
MONEY
YOU
RECEIVE
EACH WEEK
Job 1
+
Job 2
+
Housing subsidy
+
SNAP
+
TANF
+
Other
+
Total income
= = = = =
SUBTRACT
YOUR
WEEKLY
EXPENSES
Cell phone
—
Debt payment
—
Eating out
—
Education and
childcare
—
Entertainment
—
Groceries and
other supplies
—
Health expenses
—
Helping others
—
Housing and utilities
—
Pets
—
Savings for
emergency fund
—
Savings for goals
like education or
retirement
—
Transpor t
—
Other
—
ENDING
WEEKLY
BALANCE
= = = = =
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
MODULE 6: DEALING WITH DEBT 61
MODULE 6
Dealing with debt
Learn about ways to manage your consumer and criminal
debt. The more you know about how debt works, the
easier it is to make choices that are right for you.
At a glance
This module helps you get a picture of what you owe, get a handle on your payments,
and cut down on stress from growing debt.
Reentry debt log
Lowering your debt
Overview
What is debt? Debt is money you owe to another person or business. Whether you
took out a loan, used a credit card, or got behind on a bill payment, that’s debt. Debt
can be hard to face when it feels like a barrier to your goals, but it’s important to
remember that there are resources you can use to help you take control of your debt.
Even small steps toward paying down debt can make a big difference in making it feel
more manageable.
Focus on Reentry
Understanding debt, how to manage it, and how to reduce or get rid of it are
important components of nancial empowerment. Debt, however, is a current reality
for many people transitioning from incarceration or facing the challenges of having
a criminal record. When transitioning to the community, it is important to determine
whether you owe consumer debt and the amount you owe.
But it is also important to determine whether you owe criminal justice debt, or
legal nancial obligations. Failure to pay criminal justice debt can carry serious
consequences such as returning to prison or jail.
62 FOCUS ON REENTRY: CRIMINAL JUSTICE
You may owe various fees, nes, and restitutions because of your arrest,
conviction, and incarceration. These vary from state to state and may
be called by different names. Types of debt you may owe as a result of
incarceration include:
§ Pre-conviction fees, such as jail fees for pretrial incarceration or fees for
electronic monitoring devices.
§ Sentencing fees, such as restitution to compensate victims and public
defender or prosecution reimbursement fees.
§ Incarceration fees, such as fees for room and board while in jail or
prison, or health care and medication fees.
§ Probation and parole supervision fees, such as drug testing or vehicle
interlock device fees.
§ Mandatory treatment fees
§ Other fees
It is important to nd out whether you have any outstanding criminal debt
from any of your cases. You can nd out from the court(s), your attorney
or probation ofcer or other supervision personnel. Find out whether
the debt has been sent to collections, and if so, to which collection
agencies. Unlike other kinds of debt, criminal justice debt can be subject
to extraordinary collection procedures. Criminal justice debts also may
not be deemed “debts” by state law, which means that collectors are not
subject to the Fair Debt Collection Practices Act (FDCPA).
Using the tools
§ Complete the Reentry debt log to help you prioritize which debts to
pay, including any criminal debt you may owe. Keeping track of your
debt while incarcerated may help you manage your money and keep
track as you transition.
§ Review Lowering your debt to help understand your options for
reducing debt.
MODULE 6: DEALING WITH DEBT 63
GETTING STARTED
Reentry debt log
This tool gives you a clearer picture of your debt.
If you have been involved with the criminal justice system, you may have criminal
justice debt. The consequences of not paying this debt may affect your terms of
supervision or create a risk of reincarceration, so it’s important to nd out which
debts would have the worst consequences if you couldn’t pay them. Identifying and
tracking criminal justice debt, along with other debt, can help you prioritize debt
payments.
What to do
§ Write down to whom you owe the debt, how much is owed in total, and how much
you can afford to pay.
§ For each debt list the potential consequences of delaying payment.
§ You can check your state's law or resources to nd out if there are protections you
may have regarding the criminal debt.
A step further
After you’ve taken stock of what debts you have and the consequences of delaying
their payment, complete the tool "Lowering your debt” to explore some strategies to
help you manage your debt.
For a state-by-state list of legal aid ofces, which may offer resources or assistance with
criminal debt issues, visit https://www.consumernance.gov/ask-cfpb/how-do-i-nd-
an-attorney-in-my-state-en-1549/
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/companion-guides/
MODULE 6: DEALING WITH DEBT 64
Track your debts and how much you
owe with this Reentry debt log
1. This tool will give you a clearer picture
of your debt. Write down to whom you
owe the debt, how much is owed in
total, and how much you can afford to
pay.
2. Then list the potential consequences of
delaying payment.
3. If you have criminal debts make sure you
understand the consequences of not
paying them.
Remember, a bill isn't always debt.
For instance, your phone bill isn't debt, but
any past due amount is debt.
Common debt types to help you brainstorm:
Auto
loan
Back child
support
Credit card
debt
Friends
and
family
Medical
debt
Payday
loan
Student
loan
Mortgage
or past-
due rent
Justice
system debt
such as fees
and nes
$
To whom do you owe
the debt?
Total
amount left
to pay
Weekly or
Monthly
payment
Code
(A-I)
Consider the consequences
of not paying each type
of debt
$
$
$ $
$ $
$ $
$ $
$ $
$ $
Total weekly (or monthly) payment
A. Reincarceration
B. Repossession (of
something you own)
C. Loss of driver’s license
D. Loss of housing
E. Garnishment (a portion of
your paycheck or money
in an account is taken to
pay what you owe)
F. Loss of service (utilities cut
off or loss of cell phone
service)
G. Lawsuit or other collection
effort from a creditor or
debt collector
H. Negative report to credit
reporting company
I. Other
MODULE 6: DEALING WITH DEBT 65
GETTING STARTED
Lowering your debt
This tool will help you think of strategies to help you manage
your debt.
Before you select strategies to help you manage your debt, you need to think about
which debts are the most important to pay down right now. Some debts, especially
those that are criminal justice-related, have worse consequences than others when
payments are missed or delayed. Prioritize your debts using the Reentry debt log
tool before completing this tool.
What to do
§ Show your checklist to the counselor you are working with and ask that person
which strategies might be helpful
§ Work with the counselor to check off the strategies that can help you
A step further
Start putting these strategies to use. Pick one strategy and try to see if you can use it to
help you manage one or more of your criminal justice debts.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/companion-guides/
MODULE 6: DEALING WITH DEBT 66
Strategies for Lowering your debt
1. Review and list all your debts, including any criminal justice debt.
2. Prioritize your debt based on the consequences of not paying.
3. Review the strategies and check the ones that seem possible for you to pursue.
Debt prioritization
List your debts starting from those with the most serious consequences rst. Use Tool: Reentry
debt log and toolkit Module 6: Dealing with debt to prioritize your debts based on the
consequences of not paying.
Negotiate a payment plan or a reduction of your debt
Contact the governmental organizations, courts, and businesses where you owe money.
See if they are willing to set up a payment plan or reduce the amount you owe. Before beginning
to negotiate, gure out what you can afford to pay each month. Don’t agree
to a repayment plan that you cannot afford.
If you owe money on a debt that is in collections, you may want to contact an attorney through
a legal aid organization before contacting the creditor or debt collection company. See last
box below for your rights in debt collection. To nd a legal aid organization, see
https://www.
consumernance.gov/ask-cfpb/how-do-i-nd-an-attorney-in-my-state-en-1549/
Be sure you are not settling a debt without understanding the potential impact. If you settle
a debt, any savings you get from paying less than the full amount owed may be considered
income and taxable. If you make a small payment on an old debt, one that is past the statute of
limitations, it may restart the clock for suing you on that debt.
Watch out for businesses that say they can eliminate your debts
Watch out for debt settlement or consolidation businesses that:
§ Charge any fees before they settle your debts.
§ Tout that there is a “new government program” to bail out personal credit card debt.
§ Guarantee to make your debt go away or that unsecured debts can be paid off for pennies on
the dollar.
§ Tell you to stop communicating with the creditors.
§ Tell you they can stop all debt collection calls and lawsuits.
Visit a nonprot Consumer Credit Counseling Service agency
They can often give you advice or create a Debt Management Plan (DMP) for you. They may
67 FOCUS ON REENTRY: CRIMINAL JUSTICE
also negotiate with your creditors on your behalf. There may be fees for these services. To nd a
Consumer Credit Counseling Service (CCCS) agency in your community, visit https://www.nfcc.
org/agency-locator
For court-related debts, explore payment plans, reductions, and waivers
Payment plans involve creating an installment plan of the amount owed where an individual will
make regular payments on the debt. Reductions are a lessening of the amount owed. Waivers
are a setting aside of the fee or ne. Check with your state or locality to see if there are any
programs or protections in place related to criminal debt.
Court-ordered debt related to your involvement in the criminal justice system may affect the
terms of your supervision/probation and failure to pay this debt may lead to reincarceration. If
you do not know whether you owe fees, nes, or restitution, contact the court(s) and/or ask your
lawyer or probation ofcer.
Know your rights in debt collection
The Fair Debt Collection Practices Act says people collecting debts can’t harass, oppress, abuse,
or deceive you or anyone else they contact. For example, debt collectors can’t:
§ Call you before 8 a.m. or after 9 p.m., in general
§ Make repeated phone calls that are intended to annoy, abuse, or harass you or any person
answering the phone
§ Use obscene or profane language
§ Make threats of violence or harm
§ Lie about the amount you owe
§ Deceive you to collect money, for example by falsely claiming to be law enforcement ofcers
or saying you’ll be arrested if you don’t pay your debt
§ Publish lists of people who refuse to pay their debts (this does not include reporting
information to a credit reporting company)
§ Talk to you without telling you they are a debt collector, or use a fake company name
If debt collectors harass or deceive you, they may be breaking the law. It's a good idea to keep
a le of all letters or documents a debt collector sends you and anything you send to a debt
collector. Record the dates and times of your conversations and take notes about what you
discussed. These records can help you if you have a dispute with a debt collector, meet with a
lawyer, or go to court. For updates and more information, visit https://www.consumernance.
gov/consumer-tools/debt-collection
Need to submit a complaint? Visit https://www.consumernance.gov/complaint or call 855-411-
CFPB(2372).
Note: If debt collection efforts seek to recover criminal-justice debt, these protections may not
apply.
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 68
MODULE 7
Understanding credit
reports and scores
Building a positive credit history (which is measured
through credit reports and scores) can help you when
getting a job or approval for housing or a loan.
At a glance
This module explains the importance of credit reports and scores and reviews ways to
improve and maintain your credit history.
Requesting your free credit reports
Requesting your free credit reports by mail from a correctional facility
Reviewing your credit reports
Disputing errors on your credit report
Overview
The concept of “credit” can be complicated. People sometimes confuse the words
debt and credit. A simplied way to tell them apart is to think of credit as the ability
to borrow money and repay it later, while debt is the amount of money that you have
to repay when you’ve used credit. You can have credit available to use without having
debt. For example, you may have a credit card that is paid off—meaning you have
credit available to use but don’t owe any debt. When you take out a credit card or
other loan, you create (or add to) your credit history. Sometimes when people talk
about their nancial situation, they say they have “good credit” or “bad credit.” This
usually refers to their credit history.
Credit reporting companies gather information from your credit history into a credit
report. A credit report may show some of your bill payment history, along with some
69 FOCUS ON REENTRY: CRIMINAL JUSTICE
public record information and a record of how often you have applied for
credit.
A credit report may also show how much available credit you have, how
much of your available credit you’re using, whether you have made your
payments on time, and whether debt collectors have reported that they’re
attempting to collect debt that you owe.
The information in your credit report is used to create credit scores. Many
lenders use credit scores to decide how much money they can lend you and
how much interest to charge. In general, the higher your credit score, the
better the loan terms may be.
Focus on Reentry
Credit reports have particular signicance for people who have been
involved in the justice system. Civil judgments, child support, bankruptcies,
tax liens, and other debts can and do appear on credit reports. Credit
reports typically do not include arrests or criminal convictions but
background screening reports do. Background screening reports are often
used by employers and landlords when considering prospective employees
and renters. See Module 10, Background screening reports for more
information and tools.
Incarcerated individuals may have difculty accessing and reviewing their
credit reports, making it harder to spot, stop, or x identity theft. You may
want to get a free credit freeze or fraud alert on your credit report. See
Module 9, Tool: How to handle identity theft. For information on how to spot
the signs of identity theft, visit
https://www.identitytheft.gov
Many individuals transitioning from incarceration may have a poor credit
history or are "credit invisible," meaning they have no or little credit history.
Building or rebuilding credit is important to getting jobs, housing and
credit. There are ways to build credit, including with products such as
secured credit cards or credit building loans. For more information and
tools about credit, see "Want credit to work for you?" booklet at https://
www.consumernance.gov/consumer-tools/educator-tools/your-money-
your-goals/booklets-talk-about-money/
Using the tools
§ Complete Requesting your free credit reports to plan when you’re going
to order your free annual credit reports
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 70
§ If you are incarcerated, review the Requesting your free credit report by mail
from a correctional facility handout and pay close attention to the items you
need to provide in your letter of request
§ Complete Reviewing your credit reports to make sure all the information in
them is correct and up to date
§ Review the Disputing errors on your credit reports handout to learn how you
can dispute mistakes on your reports
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 71
GETTING STARTED
Requesting your free credit reports
Make a plan for requesting your free credit reports once
every 12 months.
Your credit report can be used for more than just a loan approval. That’s why it’s
important to look at your reports each year to make sure your information is correct.
You should request your credit report from all three nationwide credit reporting
companies—Equifax, Experian, and TransUnion—since each report can have different
information in it. Learn more about requesting credit reports for minors at
https://www.
consumernance.gov/ask-cfpb/should-i-request-credit-reports-for-my-children-en-1271/
If you work with youth in foster care, visit https://www.consumernance.gov/ask-cfpb/
im-a-caseworker-for-a-youth-in-foster-care-how-do-i-check-a-credit-report-for-a-youth-
in-foster-care-en-1871/
What to do
§ Pick a method to order your credit reports. You can get them online, by phone, or
by mail. If you get your reports online, be sure you’re accessing them from a safe and
secure device and location. Be very cautious doing this on public computers, since
you’re accessing sensitive personal information and you want to keep it safe.
§ Be ready to answer some security questions if you request your report online or by
phone. You’ll be asked questions that are meant to be hard for anyone but you. If you
can’t answer, you’ll have to request the report by mail. Questions might be:
§ How much is your monthly mortgage or car payment?
§ Which bank is your auto loan from?
§ Decide when you’ll order each report. Consider getting a report from a different
credit reporting company every four months, as a way to monitor your credit for free.
CONSUMER ALERT
In addition to your free annual credit report, you also can now request your free credit
reports weekly from each of the nationwide credit reporting agencies through April
20, 2022 at
https://www.AnnualCreditReport.com. You can also get six free credit
reports every twelve months from Equifax through December 31, 2026.
72 FOCUS ON REENTRY: CRIMINAL JUSTICE
A step further
Review your credit reports carefully. They’ll probably be similar, but there may be
differences between them, and that’s okay. The most important thing is to make sure that
the information listed about you is accurate. Use the “Reviewing your credit reports” tool
to check your credit reports for any mistakes.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 73
Pick a strategy for Requesting your
free credit reports ..
REQUEST ON THREE SEPARATE DATES REQUEST ON A SINGLE DATE
Check your reports on three different
dates throughout the year. Staggering
them can help you see if anything is
changing throughout the year or if any
fraud has occurred.
Choose a single date that's easy to remember,
like a birthday or holiday, to request all three
of your reports at once. This is good if you're
buying something big soon, that requires new
credit, so you can correct errors right away.
I will request my reports on these three
separate dates:
I will request a report from all three
companies on this day:
DATE COMPANY DATE COMPANY
Equifax Equifax, Experian, TransUnion
Experian
TransUnion
Strategies for requesting your credit reports
CONSUMER ALERT
In addition to your free annual credit
report, you also can now request your
free credit reports weekly from each of
the nationwide credit reporting agencies
through April 20, 2022 at
https://www.
AnnualCreditReport.com. You can also get
six free credit reports every twelve months
from Equifax through December 31, 2026.
1. Pick when you'll request your credit
reports using the strategy that works best
for you.
2. Write down when you'll request them from
each company, Experian, Equifax, and
TransUnion. You can get a free report from
each company once every 12 months.
3. Create a reminder on your calendar or
phone to help you follow through.
74 FOCUS ON REENTRY: CRIMINAL JUSTICE
The federal government authorizes only one
source for your free credit reports. You can make
a request online, by phone, or by mail.
Visit
https://www.AnnualCreditReport.com
Call (877) 322-8228
Request by mail. Download and complete the
form at https://www.AnnualCreditReport.com/
manualRequestForm.action.
Mail the completed form to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
How to request your free reports
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 75
Incarcerated individuals who may not have
access to the internet or phone can opt to
request a free credit report by mail. In your
letter, you can request credit reports from all
three credit reporting companies: TransUnion,
Equifax, and Experian.
The credit reporting companies request the
following information for mail requests from
prisons or jails:
§ Consumer’s rst, middle, and last names, plus
any sufx used
§ A prisoner identication number
§ Current address
§ Address(es) during the two years preceding
incarceration
§ Social Security number
§ Date of birth
§ The name of the correctional institution as the
return address and the prisoner identication
number on the envelope used to mail the
request.
To request your credit reports by mail, write to
the address below and include the name of the
credit reporting company or companies you
want the report from:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
(877) 322-8228
Correctional facilities have different rules related
to retaining personal information. Check with the
correctional facility to determine how to keep
copies of your credit report.
If you hit barriers as you request your credit
report from prison or jail, you can submit a
complaint to the CFPB.
Be sure to include your prison identication
number and prison address when submitting a
complaint to CFPB.
HOW TO SUBMIT A COMPLAINT
Online
www.consumernance.gov/complaint
By phone (180+ languages)
M-F, 8 a.m. - 8 p.m. ET
(855) 411-2372
(855) 729-2372 TTY/TDD
By mail
Consumer Financial Protection
1700 G St. NW
Washington, DC 20552
Requesting your free credit reports
by mail from a correctional facility .
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 76
GETTING STARTED
Reviewing your credit reports
Look through your credit reports carefully to make sure all the
information is correct.
Errors on your credit reports can negatively affect your credit scores and ability to get a
loan. Reviewing your reports on a regular basis can also help you monitor for things like
identity theft and fraud.
Sometimes your information isn’t reported to all three nationwide credit reporting
companies. As a result, some things may not be listed on all three reports, especially
information about older accounts, accounts you’ve closed, or some of your older jobs
or addresses.
This can cause inconsistencies among your credit reports. It’s most important to make
sure that the information that is listed on each report is correct.
What to do
§ Start by getting free copies of your credit reports. Use the “Requesting your free
credit reports” tool to nd out how.
§ Read through each credit report carefully, using the checklist as a guide for what
errors to look for.
A step further
If you nd any mistakes on your credit reports, you should dispute them. Use the
“Disputing errors on your credit reports” tool to get started.
In addition to your free annual credit report, you also can now request your free credit
reports weekly from each of the nationwide credit reporting agencies through April 20,
2022 at
https://www.AnnualCreditReport.com. You can also get six free credit reports
every twelve months from Equifax through December 31, 2026.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/your-money-your-goals/tools
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 77
Monitor and nd errors by Reviewing
your credit reports regularly.
1. Make a copy of this tool, one for each of the three nationwide credit reporting companies.
2. Use the checklist to review the ve sections of each of your credit reports.
3. Write down any questions you have or incorrect information you need to dispute.
Name of credit reporting company:
SECTION IS THIS INFORMATION CORRECT? QUESTIONS OR ERRORS
Header and
identifying
information
My name (including spelling)
My Social Security number
My current telephone number
My current address
My previous addresses
My employment history
Public record
information
My nancial public record
information, like bankruptcies,
judgments, or tax liens
Collection agency
account information
My accounts, if any, in
collections
The status of each of
my accounts
78 FOCUS ON REENTRY: CRIMINAL JUSTICE
SECTION IS THIS INFORMATION CORRECT? QUESTIONS OR ERRORS
Credit account
information
All of the accounts are mine
The status of each of
my accounts, such as whether
they are open or closed; and
whether I paid on time, missed
payments, or paid less than the
amount due.
I'm accurately listed as an
authorized user, co-signer, or
joint owner
All accounts I've closed
are listed as "closed by the
consumer"
Inquiries made to
your account
I recognize all "hard inquiries"
or times when I've applied for
credit and a lender reviewed
my credit report. To learn more
about inquiries, visit https://
www.consumernance.gov/
ask-cfpb/whats-a-credit-inquiry-
en-1317
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 79
Disputing errors on your
credit reports .
If you nd mistakes on your
credit reports, you should
dispute them. Here’s how you
can dispute errors you nd.
Errors can appear on one or more of your
credit reports due to an error in the information
provided about you or as the result of fraud or
identity theft.
If you nd errors on your credit reports, you
should dispute them with the credit reporting
company (most often Equifax, Experian, or
TransUnion) and the furnisher of the information.
GETTING READY TO DISPUTE
Review the mistakes you identied in the
“Reviewing your credit reports” tool. Then
gather any documents you have that support
your dispute.
This can include things like:
§ Your credit report with the mistake circled or
highlighted
§ Copies of anything that proves there is an
error—for example, if your report incorrectly
shows that you’re late paying a credit card,
make copies of bills or cleared checks (or
money order stubs) that show you’ve paid on
time
§ Copies of your Social Security card, birth
certicate, or other personal identity
information, if you’re disputing a mistake
related to that information
If you suspect that the error on your report
is a result of identity theft, visit https://www.
identitytheft.gov. See Module 9: Protecting
your Money for more information about identity
theft and steps to take if you are a victim,
including ling a fraud alert or security freeze.
SUBMITTING THE DISPUTE
You can submit a dispute to the credit reporting
company by phone, by mail, or online. Explain
the error and what you want changed. Clearly
identify each mistake separately, state the facts,
explain why you are disputing the information,
and request that it be removed or corrected.
Some of the credit reporting companies
provide a dispute form you can use. You’ll also
want to send a letter explaining the mistake(s)—
there’s a letter template you can use on the
next page.
Make sure you also include copies of all of your
supporting documentation. Keep your originals.
You can also choose to send a copy of the
dispute to the business or individual that
provided the incorrect information (furnisher).
You can usually nd that address on your
credit report.
If you’re mailing the dispute information, it’s a
good idea to use certied mail with a return
receipt requested, if that’s available to you. That
way, the post ofce will send a postcard telling
you when your dispute letter was delivered.
80 FOCUS ON REENTRY: CRIMINAL JUSTICE
EQUIFAX EXPERIAN. TRANSUNION
Online https://www.equifax.
com/personal/disputes
https://www.experian.
com/disputes
https://www.
transunion.com/credit-
disputes/dispute-your-
credit
Mail Mail letter explaining
mistakes and completed
dispute form
Mail letter explaining
mistakes
Mail letter explaining
mistakes and
completed dispute
form
Dispute form:
Use form below
Dispute form:
None needed
Dispute form:
https://www.transunion.
com/docs/rev/personal/
InvestigationRequest.pdf
Mail to:
Equifax Information
Services LLC
P.O. Box 740256
Atlanta, GA 30348
Mail to:
Experian
P.O. Box 4500
Allen, TX 75013
Mail to:
TransUnion Consumer
Solutions
P.O. Box 2000
Chester, PA 19016
Phone (800) 864-2978 (888) 397-3742 (800) 916-8800
WAITING FOR MISTAKES TO GET FIXED
The credit reporting company generally has
30 calendar days (45 days in some cases) to
investigate your dispute. They have ve
business days to notify you of the results
once the investigation is complete.
If the error is xed, you’ll receive a copy of your
updated credit report, which doesn’t count as
your free annual report.
If, as a result of your dispute, a furnisher
determines they sent the wrong information
to a credit reporting company, they must send
the correction to various credit reporting
companies to which they had provided the
incorrect information.
IF YOU DISAGREE WITH THE RESULTS
You can send the credit reporting company a
letter stating you don’t agree with the outcome.
The credit reporting company has to clearly
note that the information has been disputed and
provide your explanation on any future reports.
You can also submit a complaint to the Bureau
at https://www.consumernance.gov/complaint.
We'll forward it to the company and work to get
you a response.
You may also want to seek assistance
from a lawyer. Learn more at
https://www.
consumernance.gov/ask-cfpb/how-do-i-nd-
an-attorney-in-my-state-en-1549/
Ways to contact the credit reporting companies
MODULE 7: UNDERSTANDING CREDIT REPORTS AND SCORES 81
Name
I am writing to dispute information that appears on my
consumer report.
I am disputing the items on the following page. Please investigate the items I have
described below, make necessary corrections and notify me when complete.
Thank you for your assistance. Sincerely,
Credit reporting company name and address
Name and return address
Report conrmation number, if available
Date of birth (any format)
Today's date
My information
Phone number
- -
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 82
MODULE 8
Choosing nancial
products and services
Learning about nancial products and services and how they
work can help you better manage your money, improve your
credit scores, and save for your goals.
At a glance
This module helps you understand the different kinds of nancial products and services
available, with a focus on checking and savings accounts and prepaid cards.
Opening a checking or savings account
Evaluating your prepaid or payroll card
Knowing your prepaid rights
Overview
Financial products and services are the tools you use to store and access money, make
payments and purchases, send money to other people or businesses, and pay for
purchases over time. They include things like checking and savings accounts, prepaid
cards, payroll cards, government benets and EBT cards, credit cards, money transfers, bill
payment services, and loans.
One important key to nding the right nancial product or service is rst thinking about the
reason you need one. You may want a secure place to put the money you’re saving for your
goals, unexpected expenses, or emergencies. You may want a convenient way to pay your
bills or to use your mobile phone to access your nancial accounts. You may be looking for
a loan to buy a car. Or you may want to repair or build your credit history to improve your
credit scores.
83 FOCUS ON REENTRY: CRIMINAL JUSTICE
Focus on Reentry
Individuals with criminal records may face barriers in opening accounts. One common
barrier to opening a bank or credit union account is a lack of identication. Another is
negative information on a report from a specialty consumer reporting company, showing
your checking account or banking history. Specialty consumer reporting companies may
also use public records, including criminal records, in the reports they create about you
and provide to banks and credit unions. If you are interested in getting an account at a
bank or credit union, you should check to see if one or more of these checking account
screening companies has compiled a report on you, and if their information is accurate.
Similar to background screening and credit reports, you can review the report and le a
dispute if you nd mistakes. The CFPB has compiled a list of consumer reporting companies
at https://les.consumernance.gov/f/documents/cfpb_consumer-reporting-companies-
list_03-2021.pdf
Even if you’ve been denied an account based on information that is accurate, you may still
be able to get access to the nancial services that you need. Ask the bank, credit union or
other nancial provider if they offer accounts that are designed to reduce risks for both you
and nancial institution, typically by helping you manage your spending and avoid overdraft
and overdraft fees. For more information, about bank and credit union account services,
see https://www.consumernance.gov/consumer-tools/bank-accounts/
Before selecting or using a nancial product or service, take time to understand the
conditions and fees associated with each one to help you avoid unexpected charges. If you
already have a bank account, and you are not using it or you haven't used it in a while, check
with your bank to see if they closed the account or charged you fees you didn’t expect. If
you opt for a prepaid card, make sure to check the fees and terms, and understand your
rights. The tools in this section can help you.
For more information about your nancial choices and tools to help with those choices, see
Module 8 in the toolkit https://les.consumernance.gov/f/documents/cfpb_your-money-
your-goals_nancial-empowerment_toolkit.pdf
Using the tools
§ Complete Opening a checking or savings account to make sure you have all the
documentation and answers you need. Be sure to shop around and compare accounts
and features to get the account that meets your needs.
§ Complete Evaluating your prepaid or payroll card to make sure you understand the
details and fees associated with using the card
§ Review the Knowing your prepaid card rights handout before you buy or use a prepaid
card so you know about your rights and responsibilities. You may be given a prepaid
card as you transition from prison. Register the card to help make sure any protections
are in place.
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 84
GETTING STARTED
Opening a checking or
savings account
Learn what documents you need and what questions to ask
before you open an account.
Showing up prepared to the bank or credit union when you’re ready to open an account
will help you save time and money.
Most banks and credit unions require two forms of identication to open an account.
Some will take one form of identication (such as your driver’s license or passport) and a
bill with your name and address on it. The other part of being prepared is understanding
the terms and costs of opening an account. Get answers to common questions before
you sign your paperwork.
What to do
§ Gather your documents. Make sure you have the proper identication and documents
to open an account.
§ Bring the required amount of money to open the account. You’ll usually need
between $25 and $100 to open a checking or savings account at a bank. Some credit
unions and banks don’t require an opening deposit and some require a deposit as low
as $5 to open an account.
§ Get all the facts. Call the bank or credit union or do research online to answer the
questions in the checklist. Make sure you know how the account works and what fees
are involved.
A step further
Make the most of your account and keep your costs low by reviewing the “Avoiding
checking account fees” tool.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/your-money-your-goals/tools
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 85
Gather what you need before Opening
a checking or savings account
1. Review the items you need to open the account and check them off as you gather them. Write
down any questions you have.
2. Get answers to all the questions listed to make sure you're aware of the terms, costs, and
limitations of the account.
WHAT I NEED TO OPEN AN ACCOUNT QUESTIONS I HAVE
A picture ID issued by a state, or the U.S. or foreign
government (check which foreign IDs your bank or credit
union accepts)
One of these second forms of identication:
§ Social Security card
§ Birth certicate
§ Bill with your name and address on it
Your Social Security number or ITIN; if you don't have one,
you may be able to open only a no-interest account
Money to put into the account
QUESTIONS I WILL ASK THE BANK OR CREDIT UNION RESPONSES
Is there a monthly fee? If so, how much is it and can it
be waived?
Is direct deposit available?
Do I have to pay for checks?
Are there per-check or transaction fees? How much
are they?
86 FOCUS ON REENTRY: CRIMINAL JUSTICE
QUESTIONS I WILL ASK THE BANK OR CREDIT UNION RESPONSES
Are there convenient, free ATMs located near where I live,
work, or shop?
Is there access to online banking? What’s the cost to use?
Is there access to online bill paying services? What’s the
cost to use?
What happens if I try to spend or withdraw more money
than I have in my account (overdraft)?
Are there alerts when my balance gets low?
Will I earn any interest on the money in the account? What
is the interest rate?
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 87
DEFINITIONS OF COMMON PREPAID CARD FEES
All fees vary from card to card, so check your cardholder agreement for terms, conditions, and
costs. Here are some of the fees you might see.
Additional card For a second card when adding another person as an authorized user
to your account
ATM withdrawal To use your card to withdraw money from an ATM; usually varies
depending on if the ATM is within your card provider’s network or not
Balance inquiry To check your card balance using certain methods, like at an ATM or by
calling customer service (there might be a fee for some methods or if
you check often)
Bill payment To pay a bill online through the card provider’s website; may be
charged a fee for each bill paid
Card cancellation To cancel a card at any time (there usually isn’t a fee); you might pay a
fee to get a check for the remaining balance on the card
Card replacement To replace your card if it’s lost, stolen, or damaged
Card-to-card transfer To transfer money between two prepaid cards (also called a person-to-
person transfer fee)
Cash reload For adding money to your card at a retail location
Decline If you attempt to use your card for something that costs more than the
amount of money you have left on your card
Foreign transaction When you use your card in a foreign country or to pay in a
foreign currency
Inactivity If you don’t use your card for a certain period of time
Monthly A xed fee you pay each month, even if you don’t use your card, that’s
automatically deducted from your account balance (often waived if you
sign up for direct deposit)
Paper statement If you request paper statements for your card transactions
Transaction Charged every time you use the card for certain types of transactions
(sometimes called a “per purchase fee”)
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 88
GETTING STARTED
Evaluating your prepaid or payroll card
Carefully read the terms and fee descriptions when you get
your prepaid or payroll card to learn how much you’ll pay
each month to have and use your card.
Each prepaid and payroll card has its own set of rules and fees. Before you use your card,
it’s important to understand the fees you’ll pay to maintain your account, make purchases,
and withdraw money. After adding up the fees, you can compare cards and also compare
the cost of a card to the costs of a bank or credit union account.
Most prepaid cards have their own policies about loss, theft, and errors. Information
about these policies can be found in the cardholder agreement.
Most prepaid cards also offer details about terms and fees on their website, so you can
look online if you want to compare cards before buying one.
What to do
§ Review the denitions of common prepaid card fees so you know what they are.
§ Find the terms and fees for your prepaid or payroll card. These are usually on the back
or inside of the card packaging.
§ Get all the facts. Make sure you have all the answers about how the card works and
what fees are involved. Consider researching prepaid cards online, so you can read
about all the features before you buy it.
A step further
A prepaid or payroll card can also give you the services that you would get with a debit
card linked to a checking account. Review the “Finding nancial products and services”
tool to learn more. If your employer pays wages by payroll card, you must be offered
at least one other option to get paid. Learn more with the “Knowing your prepaid card
rights” handout.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/your-money-your-goals/tools
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 89
Learn about fees by Evaluating your
prepaid or payroll card..
1. Look at your cardholder agreement to
answer the questions about fees and
card protections.
2. Write in the response for each question.
If there is no fee, enter $0.
3. Use these answers to help manage the cost
of having and using your card.
Don’t forget to register your prepaid card to
get all the protections offered.
Adding money and getting cash
Questions to ask before using your card Notes
What’s the fee to withdraw money from an ATM that’s
in-network? That’s out-of-network?
Things to consider: You may pay zero or smaller ATM fees by
using your prepaid card at in-network ATMs, depending on
the terms of your cardholder agreement.
Your payroll card may allow you a certain number of free ATM
withdrawals each month.
What’s the fee for reloading my prepaid card with cash at a
retail location? Can I reload my card at the retail location
where I purchased it?
Things to consider: Many retail stores don’t allow you to reload
your card at the store and those that do sometimes charge
a fee. Most prepaid cards provide other options for loading
money to your card without a fee, such as direct deposit.
Payroll cards usually don’t allow you to reload with cash.
What’s the fee for spending or withdrawing money in
another country?
Things to consider: Also called a currency conversion fee, this
is usually a percentage of your purchase, withdrawal, or other
transaction, rather than a at fee.
90 FOCUS ON REENTRY: CRIMINAL JUSTICE
Checking my balance
Questions to ask before using your card Notes
What ways can I check my balance and what do they cost?
How do I check my balance for free?
Things to consider: Most cards offer at least one free way to
check your balance, such as online or request by email or text.
Is there a fee for receiving a paper statement in the mail?
Things to consider: You may be able to go online to get a
statement, or at least a list of your recent card purchases and
other transactions, without a fee.
Loss and errors
Questions to ask before using your card Notes
What’s the fee for replacing a lost, stolen, or damaged card?
Things to consider: Write down your card number and the
customer service phone number and keep it in a safe place.
Call customer service right away to report a lost or stolen card.
What protections do I have if my card is lost or stolen? Am I
responsible for the charges?
Things to consider: Your rights to recover money taken from
your card account depend on what type of card it is, whether
it's been registered, and how quickly you report the loss after
you discover it. Call your provider right away if your card or
PIN is lost or stolen or if you see unauthorized charges.
What protections do I have if there are charges I didn't
authorize or some other error with my card?
Things to consider: If your card is registered (or is a payroll
card or a certain type of government benet card), you may
have certain “error resolution” rights that require that you get
your money back after an error or theft (as long as you report
it promptly).
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 91
Managing my card
Questions to ask before using your card Notes
What’s the monthly fee for having my card?
Things to consider: Some prepaid cards that charge a
monthly fee may waive the fee under certain circumstances,
such as if you arrange to have your pay or benets directly
deposited into your account. Payroll cards usually don’t
charge a monthly fee.
Will I be charged a fee if I don’t use my card for a certain
length of time? If so, what is the fee and how long can I go
without using my card before I am charged?
Things to consider: If your card charges inactivity fees, try to
see what kinds of transactions or activity you can conduct to
avoid the fee. Many cards don’t charge inactivity fees.
What’s the fee if I get an additional card for an
authorized user?
Things to consider: That additional card lets someone else
spend your money, so think carefully about whether to add
an authorized user to your account. Any new authorized users
will have to register online or call customer service to verify
their identity.
Is there a fee to cancel my card? What about to receive a
check for the remaining unused balance after I cancel?
Things to consider: You can spend or withdraw the remaining
funds on your card before you cancel the card to avoid a
potential fee for sending you any unused funds. Most cards
don’t charge to cancel the account.
92 FOCUS ON REENTRY: CRIMINAL JUSTICE
Using my card
Questions to ask before using your card Notes
What’s the fee for paying bills through my card
provider's website?
Things to consider: Consider whether there are free ways to
pay your bills, such as setting it up for the biller to debit your
card account.
What’s the fee to transfer money between two cards?
Things to consider: Not all card providers allow you to
transfer funds to another person using the same type of card.
Compare this cost with other money transfer services.
Is there a fee if my transaction is declined because there’s
not enough money on the card?
Things to consider: To avoid a decline fee, check your card
balance before making a purchase to make sure there’s
enough money on the card. Many cards offer free ways
to check your balance, such as with a mobile app, by text
message, or calling a toll-free number.
Is there a fee for each transaction I make? Do I have a choice
between a “pay-as-you-go” plan that charges a fee per
transaction and a monthly fee plan?
Things to consider: Some cards let you choose between a
plan that charges transaction fees and one that charges a
single monthly fee. Depending on how much you use your
card in a month, one plan could be signicantly cheaper than
the other.
Can I set aside funds on the card for a specic purpose?
Things to consider: Some prepaid cards offer a savings wallet
feature that allows you to save for your goals.
MODULE 8: CHOOSING FINANCIAL PRODUCTS AND SERVICES 93
Knowing your prepaid card rights.
You have certain rights under
the law and the terms of your
cardholder agreement for your
prepaid card. It’s important to
know your rights and how to
exercise them.
YOU'LL HAVE THE MOST PROTECTION IF
YOU REGISTER YOUR PREPAID CARD
Your use of a prepaid card might be limited
until it's registered. Instructions for how to
register your card are usually provided on the
card packaging. Registration provides you with
more protections if your card is lost or stolen.
Some prepaid card providers may require you
to register your card and verify your identity
when you buy or receive the prepaid card, or
soon after.
CHOOSING HOW YOU GET PAID
Some employers might pay you only using a
traditional paper check. If your employer
offers to pay your wages by payroll card, you
must be offered at least one other option. That
option might be a paper check, or it could be
direct deposit to an account of your choosing
(such as a checking or savings account or
your own prepaid card). Some states require
employers to offer paper checks, while others
permit employers to mandate electronic pay
for wages. In those cases, you might have
to choose between a payroll card and
direct deposit.
CHOOSING HOW YOU RECEIVE SOME
GOVERNMENT BENEFITS
For some types of government benets, you
may have a choice between receiving the
benets on a government-arranged prepaid
card and having them directly deposited
into your bank account or onto your own
prepaid card. Check with the benet program
to see what your choices are.
PROTECTIONS FROM FRAUD AND ERRORS
For most prepaid cards, you have protections
in case of an unauthorized transaction or other
error if you have registered your card (or if it's
a payroll card or certain type of government
benet card). These protections are not
available for needs-tested government benets
provided on a prepaid card and administered
by state or local government, such as SNAP
or TANF. Benets administered by the federal
government, such as SSI, are protected.
For example, you generally can’t be held
responsible for unauthorized charges or
other errors if you report them promptly. The
card provider may be required by federal
law to credit the disputed amount to your
account while investigating the problem if the
investigation will take longer than 10 business
days. You should call your card provider as
soon as you notice your card is missing or
notice charges you don’t recognize.
MODULE 9: PROTECTING YOUR MONEY 94
MODULE 9
Protecting your money
Learn about ways you can protect yourself and your money
with practical tips and information about your nancial
rights and responsibilities.
At a glance
This module can help you understand your rights and responsibilities within the
nancial marketplace, how to protect yourself from identity theft and fraud, and
what you can do if you’ve been affected by identity theft, fraud, or a problem with a
nancial product or service.
How to handle identity theft
Submitting a complaint
Overview
When you’re an empowered consumer, you understand your rights and
responsibilities. There are many laws that protect you when it comes to nancial
products and services. It’s the CFPB’s job to enforce these laws and handle
consumers’ complaints about nancial products and services. Knowing what your
rights are can help prevent you from being taken advantage of during nancial
negotiations and transactions. And understanding your obligations can help you
avoid late fees or problems with an account.
Focus on Reentry
You are also the rst line of defense when it comes to protecting your nancial
information from fraud or theft. There are things you can do to be proactive about
keeping your information safe before, after, or during incarceration:
§ Be aware of your credit. Check your credit reports regularly, and consider freezing
your credit reports during incarceration. Make sure that someone you trust is
taking care of your money.
95 FOCUS ON REENTRY: CRIMINAL JUSTICE
§ Practice safe money habits. Make sure your passwords on important accounts
are strong and varied. Destroy all papers, or safely digitize those you need,
that have personal information like your Social Security number, address, and
information about your court lings. Don’t share information with anyone you
don’t know.
§ If you are online or on mobile, practice safe digital habits by protecting your
device with a passcode; using a secure, private channel (not public wireless
networks); and opting for two-step authentication, e.g., a code via text to
conrm identity, for extra security. And pay attention to the privacy and security
options you are given - they are important.
§ Check all your information: Whether it is your criminal record, your background
screening report, or your credit report, make sure your information is accurate
and up to date.
Using the tools
§ Review the How to handle identity theft handout to learn what steps to take if
your identity has been stolen. To help prevent identity theft, especially if you are
incarcerated, think about getting a freeze on your credit reports.
§ Learn how Submitting a complaint can help you if you’ve had a problem with a
nancial product or service.
MODULE 9: PROTECTING YOUR MONEY 96
How to handle identity theft.
Here’s what you can do if you
suspect you’re the victim of
identity theft or fraud.
ORDER YOUR CREDIT REPORTS FROM ALL
THREE NATIONWIDE CREDIT REPORTING
COMPANIES
Each company’s credit report about you is
slightly different, so order a report from each
company. When you order, you must answer
some questions to prove your identity. Read
your reports carefully to see if the information
is correct. If you see mistakes or signs of fraud,
contact the credit reporting company to take
further action.
See Module 7: Understanding Credit Reports
and Scores for tools that can help you order,
review, and correct mistakes on your
credit reports.
REPORT IDENTITY THEFT
Report identity theft to the Federal Trade
Commission (FTC) at identitytheft.gov or (877)
438-4338 or by mail to:
FTC Consumer Response Center
600 Pennsylvania Ave, N.W.
Washington, DC 20580
You’ll answer some questions about what
happened and they'll use your information to:
§ Create a personal recovery plan
§ Pre-ll letters to send to merchants, banks,
and others affected by the identity theft
§ Complete an “Identity Theft Report,” which is
your ofcial statement about the crime
In most cases, you can use your Identity Theft
Report in place of a police report to clear your
account and credit history of transactions that
resulted from the identity theft.
Contact the police to report identity theft if:
§ You know who did it or have information that
could help a police investigation
§ An identity thief used your name in a trafc
stop or any encounter with police
§ You're asked to produce a police report
CONSIDER A CREDIT PROTECTION TOOL
There are three types of credit protection tools
that you can request from credit reporting
companies: a security freeze, an initial fraud
alert, or an extended fraud alert. These are all
free.
SECURITY FREEZE
A freeze on your credit report generally helps
prevent new credit accounts from being opened
in your name. Usually, third-party-access to your
credit le is completely blocked from new users
without your express authorization.
A freeze helps prevent identity thieves from
opening fraudulent accounts in your name. This
also means you won’t be able to apply for credit
as easily if you were planning to open a new
account or apply for a loan.
You must contact each of the credit reporting
companies to freeze your credit report. You will
have to contact them to lift the freeze before a
third-party can access your credit report.
97 FOCUS ON REENTRY: CRIMINAL JUSTICE
INITIAL FRAUD ALERT
An initial fraud alert requires creditors to verify
your identity before opening a new account,
issuing an additional card, or increasing the
credit limit on an existing account. This is
a good rst step if you’re worried that your
identity may be stolen, like after a data breach.
The alert lasts for one year and can be renewed
after it expires.
EXTENDED FRAUD ALERT
An extended fraud alert requires creditors to
contact you before approving credit and lasts
for seven years. It also requires credit reporting
companies to remove you from lists prepared
for pre-screen offers of credit or insurance
for ve years. This is available if you've led
an identity theft report with one of the three
nationwide credit reporting companies.
Equifax Security Freeze
P.O. Box 105788
Atlanta, Georgia 30348
(80 0) 685 -1111
https://www.equifax.com/
personal/credit-report-
services/credit-freeze/
Experian Security Freeze
P.O. Box 9554
Allen, TX 75013
(888) 397-3742
https://www.experian.com/
freeze/center.html
Transunion
P.O. Box 2000
Chester, PA 19016
(800) 680-7289
https://www.transunion.com/
credit-freeze/place-credit-
freeze
CONTACT INFO FOR THE THREE NATIONWIDE CREDIT REPORTING COMPANIES
CREDIT PROTECTION AND REQUIREMENTS.
SECURIT Y
FREEZE.
INITIAL
ALERT.
EXTENDED
ALERT.
Lender is required to verify your identity before
approving new credit
Completely prevents your report from being
shared with most third parties unless lifted
Triggers heightened verication procedures for the
people who use your credit report
Request if you believe you're a victim of ID theft
Requires an identity theft report
Extra free credit report
Exclusion from prescreening lists
Free in every state
MODULE 9: PROTECTING YOUR MONEY 98
Submitting a complaint.
Having an issue with a nancial
product or service? If so, you
can submit a complaint to the
CFPB and we’ll work to get you
a response from the company.
The CFPB has handled over three million
complaints, helping consumers connect with
nancial companies to get direct responses about
problems with mortgages, student loans, debt
collection, credit reports, and other nancial
products and services.
Every complaint we receive gives us insights
into problems that people are experiencing in
the marketplace and helps us to identify and
prioritize problems for potential action.
THE COMPLAINT PROCESS
After you submit a complaint, it goes through
several steps.
1. Complaint submitted
You submit a complaint about an issue you
have with a company about a consumer
nancial product or service. You’ll receive
email updates and can log in at
https://www.
consumernance.gov/complaint/ to track
the status of your complaint.
2. Review and route
We'll forward your complaint and any
documents you provide to the company
and work to get a response from them. If we
nd that another government agency would
be better able to assist, we’ll forward your
complaint to them and let you know.
3. Company response
The company reviews your complaint,
communicates with you as needed, and
reports back about the steps taken or that
will be taken on the issue you identify in your
complaint.
4. Complaint published
We publish information about your
complaint—such as the subject and date
of the complaint—on our public Consumer
Complaint Database (
https://www.
consumernance.gov/data-research/
consumer-complaints). If you consent, we also
publish your description of what happened,
after taking steps to remove personal
information.
5. Consumer review
We’ll let you know when the company
responds. You’ll be able to review the
company’s response and will have 60
days to give us feedback about the complaint
process.
HOW TO SUBMIT A COMPLAINT
Online
www.consumernance.gov/complaint
By phone (180+ languages)
M-F, 8 a.m. - 8 p.m. ET
(855) 411-2372
(855) 729-2372 TTY/TDD
By mail
Consumer Financial Protection Bureau
1700 G St. NW
Washington, DC 20552
If you are sending complaint from prison,
remember to include your prison number.
MODULE 10: UNDERSTANDING BACKGROUND SCREENING REPORTS 99
MODULE 10
Understanding
background screening
reports
Your credit report is only one type of consumer report
that may affect your nancial life. Learn about how
background screening reports are used to check your
criminal records.
At a glance
This module helps you understand your rights when it comes to background
screening reports and how to review them for any errors about your criminal
history.
Background screening reports
Reviewing your background screening reports
Obtaining your criminal records
Overview
When you apply for a job or want to rent a house or apartment, a background
screening report or check may be part of the process. The reports are used to
evaluate prospective or current employees or tenants. Background screening
reports may include many types of information, including credit history, public
records from civil court proceedings – such as bankruptcy lings, evictions and
other court documents – and information related to employment history. They may
also include other public record information on arrests and convictions
of individuals.
100 FOCUS ON REENTRY: CRIMINAL JUSTICE
Focus on Reentry
A check for criminal record history is typically included in the request an employer
or landlord makes as part of a background screening report. Before you apply for
a job or housing, check your credit reports to look for any errors you could address
ahead of time. If you have a criminal record, you may want to make sure you have
your correct criminal history or Record of Arrest and Prosecutions (RAP) sheet.
Check to see if any records are eligible for sealing or expungement in your state.
Background checks may be done as part of the hiring process, or for employees,
during the promotion, reassignment, or retention process. Special rules apply
when an employer uses a background screening report for employment purposes.
Use the background screening handout to review your rights when employers use
background screening reports.
If an employer gets a background report on you without your permission, you
can submit a complaint against the employer and the company that provided the
background screening report. You can submit a complaint with the CFPB at https://
www.consumernance.gov or the Federal Trade Commission at
https://www.ftc.
gov
Employers are required to give you a copy of the report and a summary of your
rights before they take action based on any information from the report. After you
get your report, use the background screening checklist tool to review the report.
Various types of errors can appear in background reports, including:
§ Identity mix-ups. People with the same or similar Social Security numbers can
get their records mixed up with each other.
§ Multiple listings. Convictions are listed multiple times, which makes it appear
that there are multiple offenses on your record.
§ Incomplete information. Record doesn’t reect dismissals, deferred
prosecutions, or other key information.
§ Old arrests. Arrests that are older than seven years.
For more information about background screening reports, visit https://www.
consumer.ftc.gov/articles/0157-background-checks and CFPB background report
snapshot at https://les.consumernance.gov/f/documents/201909_cfpb_market-
snapshot-background-screening_report.pdf
Individuals with criminal records may face discrimination in the employment and
housing application process. For more information about rights under employment
MODULE 10: UNDERSTANDING BACKGROUND SCREENING REPORTS 101
discrimination laws, visit the EEOC at eeoc.gov or call (800) 669-4000 (voice) or
(800) 669-6820 (TTY). The Department of Housing and Urban Development (HUD)
in 2016 issued guidance advising that blanket policies denying housing on the
basis of arrests alone may violate the Fair Housing Act. For more information, see
https://www.hud.gov/sites/documents/HUD_OGCGUIDAPPFHASTANDCR.PDF
You can report housing discrimination at HUD by visiting
https://www.hud.gov/
program_ofces/fair_housing_equal_opp/online-complaint
Using the tools
§ Review the Background screening reports handout to understand your rights
when employers use background reports. If you are incarcerated, you can read
this as you prepare for release.
§ Use the Reviewing your background screening reports to help make sure the
information in the report is accurate and identify any errors. If you nd an error,
it is important to le a dispute with the background screening company.
§ Review the Obtaining your criminal records handout to help understand the
process for criminal records. You may need to seek help from your lawyer, legal
aid or expungement clinics to obtain and address any errors in your criminal
records.
It is good practice to keep an accurate RAP (Record of Arrest and Prosecution)
sheet on hand as you apply for jobs.
MODULE 10: UNDERSTANDING BACKGROUND SCREENING REPORTS 102
When you apply for a job, the
employer may, with your consent,
request a background screening
report on you.
A background screening report, also known as
a background check, can include information
from public records, including criminal records.
If you have been arrested or convicted, you
likely have a criminal record or RAP (Record of
Arrests and Prosecutions).
So that you know what a potential employer may
see about you, it's a good idea to request your
own background screening report and check it
for errors. However, keep in mind that not every
consumer reporting company has information
on everyone. For a list of several employment
background screening providers see https://
www.consumernance.gov/consumer-tools/
credit-reports-and-scores/consumer-reporting-
companies/companies-list/
Know your rights
Federal law (the Fair Credit Reporting Act)
gives you certain rights and protections when
it comes to the information in your background
screening reports and how employers and
others may use them. State laws may provide
additional protections.
Under federal law, you have the right to receive:
Prior notice: The employer must tell you that it
might use information from the report to make a
decision about your employment.
Prior written consent: The employer must ask
for your written permission before getting the
report (except in the trucking industry where,
under certain circumstances, it also may be
given by oral or electronic means). You are not
required to give permission. However, if you
don’t, the employer may reject your application.
If an employer obtains your background report
without your permission, you can submit
a complaint with the Consumer Financial
Protection Bureau (CFPB) or the Federal Trade
Commission (FTC).
Your own copy and a summary of your rights
before the employer takes any “adverse
action”: The employer must give you a copy of
the report, and a document called “A Summary
of Your Rights under the Fair Credit Reporting
Act” before taking any action - such as not
hiring, retaining or promoting you - because of
something in the report.
Adverse action notice: If you do not get hired,
retained, or promoted because of information in
your background report, the employer must tell
you orally, in writing, or electronically:
§ The name, address, and phone number of
the company that supplied the report
§ That the company that provided the report
didn’t make the decision to take an “adverse
action” and can’t give you the specic
reasons for it
§ That you have the right to dispute the
accuracy or completeness of any information
in the report, and to get an additional free
report from the company that supplied
it, if you request it within 60 days of the
employer’s decision not to hire or retain you
Background screening reports.
103 FOCUS ON REENTRY: CRIMINAL JUSTICE
Some employers might say not to apply if
you have a criminal record. That could be
discrimination. If this happens, contact the
EEOC at
https://www.eeoc.gov/contact-eeoc
Disputing errors
If possible, request the name of the background
screening company the employer plans to use
at the time you provide consent. You can use
this information to request a copy of that report.
If there is a mistake in the background screening
report and you wish to dispute it, immediately
inform the background screening company
that provided the report. For example, when
the background screening report includes
information about an arrest that happened
more than seven years ago.
First, inform the background screening
company in writing of the error or information
you are disputing. You can tell the employer
about the mistake as well. You can also
include documentation to show the accurate
or complete information, either online or
through the mail. You may wish to choose to
use certied mail, return receipt requested so
that you have a record. Don't send originals, but
send copies of documents. You may need to get
the underlying criminal history data from the
courthouse or state repository (See Handout:
Obtaining your criminal records).
The background screening company generally
has 30 days (an additional 15 days in some
circumstances) from the time it receives your
dispute to investigate and respond to it. The
background screening company must review
and consider all relevant information that you
submit. Once the company completes the
investigation it has 5 business days to notify you.
If there is a mistake in the background screening
report, the background screening company
must x it, and send a copy of the corrected
report to the employer. If the background
screening company does not correct the
errors, and remove the inaccurate, incomplete,
or unveriable information, you can submit
a complaint with the CFPB or the FTC. Go to
https://www.consumernance.gov/complaint or
https://www.ftc.gov/faq/consumer-protection/
submit-consumer-complaint-ftc. You can also
le a lawsuit.
Request additional help
Obtaining, checking, and correcting your
background screening report may include
many steps. It may involve requesting and/
or correcting criminal records and other data
from multiple states, which may involve visiting
each court that originated the records. Help
from an attorney may be necessary to ensure
your background screening report and your
criminal records are accurate. Visit https://
cleanslateclearinghouse.org/states/ to nd help
in your state.
MODULE 10: UNDERSTANDING BACKGROUND SCREENING REPORTS 104
GETTING STARTED
Reviewing your background
screening reports
This tool will help you identify inaccurate or incomplete
information about your criminal history on your background
screening report.
Since background screening reports are used by employers and include information
from criminal records, it’s important to make sure that your criminal records and
background screening reports are accurate and up-to-date.
What to do
§ Go through the checklist while reviewing your background screening report.
§ Check off the boxes next to any errors you nd on your report.
§ Highlight the information you think may or may not be correct on your report as
you compare it with the checklist.
A step further
The information in your background screening reports is pulled from your criminal
records, so it’s important that your criminal records are also accurate and up-to-date.
You may need to seek help from legal aid, expungement clinics, or other organizations
that provide assistance on this topic. Visit
https://cleanslateclearinghouse.org/states/
for help nding assistance with criminal records issues in your state.
To access a dynamic and llable version of this tool, visit https://www.consumernance.
gov/consumer-tools/educator-tools/your-money-your-goals/companion-guides/
MODULE 10: UNDERSTANDING BACKGROUND SCREENING REPORTS 105
Find errors by Reviewing your
background screening reports
Highlight the information you think might not be correct on your background
screening report as you compare it with this checklist.
If you nd errors, le a dispute with the background screening company.
Possible errors in criminal history on a background screening report
The record or report does not include correct identifying information.
Check if any of following are incorrect:
Full name Social Security information Addresses Case or docket numbers
If you do not have your case or docket number, you may need to seek assistance from your
attorney or Legal Aid or obtain your records from the court.
The report includes information you believe to be expunged or sealed.
Expunged or sealed records are those that have been removed from public view. States have
different laws on expungement and you should check the laws of your state to determine if
they may apply to your records or seek assistance from an attorney or other organization.
See next page for links to legal assistance sites.
The report includes incomplete records.
The report lists single charges multiple times.
The report includes information that has been or should have been expunged, cleared or not
reported under state or federal law.
The report includes arrests or other negative information that occurred more than seven
years ago (except for convictions, which can stay on permanently in most states).
Some states may limit further the types or time frame for criminal history information.
106 FOCUS ON REENTRY: CRIMINAL JUSTICE
Possible errors in criminal history on a background screening report
The report misclassies misdemeanors as felonies.
The report includes a charge, arrest or conviction that is not yours - you were not charged or
convicted of such an offense.
Get help from your attorney, legal aid, a pro bono (volunteer) or other attorney, or organization
to check and correct your record. For a list of legal aid ofces visit https://www.consumernance.
gov/ask-cfpb/how-do-i-nd-an-attorney-in-my-state-en-1549/ For a list of state-by-state legal
assistance related to criminal records, visit https://cleanslateclearinghouse.org/nd-a-lawyer/.
MODULE 10: UNDERSTANDING BACKGROUND SCREENING REPORTS 107
Obtaining your criminal records.
Since background screening
reports may include criminal record
information it's important to check
these records for mistakes.
Potential employers may conduct background
screening on you. To do this, they may buy and
review a background screening report. You
may want to get your criminal records or RAP
sheets (Records of Arrest and Prosecution) –
also called Identity History Summary - so you
can check them for any mistakes, because this
information may appear in your background
screening report. There is often a charge for
these records. You may be able to get the fees
for the records waived, depending on the state
where the records are located.
Where to get your records
Local or state police department
At the local police department where you reside
or where you know there may be records about
you, request that the police conduct a local or
state criminal records search and provide you
with a document reecting your criminal record
or that you have no criminal record. Local
police departments may require your personal
appearance in order to conduct the search.
State criminal records authority
Each state has its own agency, or repository,
that keeps criminal record information and
its own process for getting criminal record
information. For state-by-state information on
state criminal records repositories and other
resources, visit https://clearinghouse.lac.org/.
(If a state does not have a repository, see below
for information about getting records from the
courthouse.)
State or county court records
Courthouses maintain records relating to
criminal charges and convictions, including
arraignments, trials, pleas, and other
dispositions. Searching county or local
courthouses usually provides the most
complete criminal history. Many courthouse
records must be retrieved on-site, but some
courthouses offer their records remotely online.
For a state-by-state listing of state court records
sites from the National Center for State Courts
visit
https://www.ncsc.org/information-and-
resources/state-court-websites
Federal court records
Public Access to Court Electronic Records
(PACER) is an electronic public access service
that allows users to obtain case and docket
information online from federal courts.
Visit
https://pacer.uscourts.gov/ for more
information.
FBI (Federal Bureau of Investigation)
The Criminal Justice Information Services (CJIS)
Division of the Federal Bureau of Investigation
(FBI) centralizes criminal justice information
and provides information and services to local,
108 FOCUS ON REENTRY: CRIMINAL JUSTICE
state, federal, and international law enforcement
agencies, the private sector, academia, and
other government agencies.
An Identity History Summary—often referred to
as a criminal history record or a “rap sheet”—
is a listing of certain information taken from
ngerprint submissions kept by the FBI and
related to arrests and, in some instances, federal
employment, naturalization, or military service.
For information on the various options for how
to obtain your Identity History Summary from
the FBI, visit
https://www.fbi.gov/services/cjis/
identity-history-summary-checks
Expungement
Some criminal history records may be subject
to expungement or sealing. There are no
uniform rules, processes or denitions of
“expungement.”
In general, expungement refers to destroying
a record and sealing refers to removing
a record from public view. But terms and
their meanings may vary depending on the
jurisdiction. This process may be referred to
as “erasure,” “destruction,” “sealing,” “setting
aside,” “expunction,” “purging” "clearing" and
"automatic record clearance." States have
different criteria and processes for “expunging”
records – or making them generally unavailable
through federal or state databases. For
information about state expungement laws and
resources, visit
https://cleanslateclearinghouse.
org/states/
For help with criminal records
Criminal record data, including expungement
data, may be difcult to understand and hard
to correct. But, you have the right to ensure
records about you are correct. You may need to
seek help from legal aid, expungement clinics,
or other organizations that provide assistance.
For state-by-state resources such as where
to nd legal assistance and other information
related to criminal records and reentry please
visit
https://cleanslateclearinghouse.org/states/
and https://clearinghouse.lac.org
ADDITIONAL RESOURCES 109
Additional resources
Help with general guidance in reentry
§ The National Reentry Resource Center (NRRC): https://
nationalreentryresourcecenter.org/about-national-reentry-resource-center
- For a state-by-state list of reentry services, visit https://
nationalreentryresourcecenter.org/reentry-services
§ State resources for people who need assistance with their criminal records:
https://cleanslateclearinghouse.org/states/ and https://clearinghouse.lac.org/
§ Searchable national inventory of legal and regulatory sanctions and restrictions
for people with criminal records: https://niccc.nationalreentryresourcecenter.
org/
§ List of consumer reporting companies from the CFPB: https://www.
consumernance.gov/consumer-tools/credit-reports-and-scores/consumer-
reporting-companies/companies-list/
Help with employment and hiring
§ Department of Labor American Job Centers: https://www.careeronestop.org
§ Deportment of Labor employment resources: https://www.dol.gov/general/
audience/aud-unemployed
§ State-based support for people with criminal records seeking jobs: https://www.
careeronestop.org/ExOffender/FindAJob/FindOpenings/search-for-jobs.aspx
§ The Equal Employment Opportunity Commission (EOCC): https://www.eeoc.
gov/laws/guidance/what-you-should-know-eeoc-and-arrest-and-conviction-
records
Resources for workforce practitioners
§ Help and technical assistance for workforce professionals: https://www.
workforcegps.org/
110 FOCUS ON REENTRY: CRIMINAL JUSTICE
Help with housing
§ Find your local public housing agency (PHA): https://www.hud.gov/program_
ofces/public_indian_housing/pha/contacts
§ Find a housing counselor: https://www.consumernance.gov/nd-a-housing-
counselor/
§ Report housing discrimination: www.hud.gov/program_ofces/fair_housing_
equal_opp/online-complaint
Help with benets
§ For information about the rule on SNAP eligibility for felons: https://www.fns.
usda.gov/snap/fr-041519
§ Social Security benets: https://www.ssa.gov/reentry/benets.htm
- What prisoners need to know (PDF): https://www.ssa.gov/pubs/EN-05-10133.
pdf
- Entering the community after incarceration: https://www.ssa.gov/pubs/EN-
05-10504.pdf
§ Impact of incarceration on Veteran’s Benets: https://www.benets.va.gov/
BENEFITS/factsheets/misc/incarcerated.pdf
Help with healthcare
§ Health coverage for incarcerated people: https://www.healthcare.gov/
incarcerated-people
§ Health Care for Reentry Veterans Services and Resources: https://www.va.gov/
HOMELESS/Reentry.asp
§ Veterans Justice Outreach Program: https://www.va.gov/homeless/VJO.asp
Help with student loans
§ Information about federal student loans: https://www.consumernance.gov/
paying-for-college/
§ For incarcerated individuals with student loans: https://studentaid.gov/sites/
default/les/aid-info-for-incarcerated-individuals.pdf
§ Federal Pell Grants for incarcerated individuals: https://studentaid.gov/sites/
default/les/aid-info-for-incarcerated-individuals.pdf
ADDITIONAL RESOURCES 111
Help with taxes
§ "Do I need to le a tax return?" https://www.irs.gov/help/ita/do-i-need-to-le-a-
tax-return
§ Get right with your taxes: https://www.irs.gov/pub/irs-pdf/p4925.pdf
§ Find a location for free tax help: https://irs.treasury.gov/freetaxprep/ or call
(800) 906-9887
§ Prisoner Reentry program: https://www.irs.gov/individuals/prisoner-re-entry-
program
§ Taxpayer Advocate Service (TAS): https://www.irs.gov/taxpayer-advocate or call
(877) 777-4778
Help with child support
§ State and Tribal Child Support Agency Contacts: https://www.acf.hhs.gov/css/
map/state-and-tribal-child-support-agency-contacts
§ State-by-State: How to change a child support order: https://www.acf.hhs.gov/
css/map/state-state-how-change-child-support-order
Links sometimes change. Try a search for content from your web browser.
112 FOCUS ON REENTRY: CRIMINAL JUSTICE
For more information, you can refer to
the full Your Money, Your Goals toolkit online at
https://www.consumernance.gov/consumer-tools/
educator-tools/your-money-your-goals/toolkit/
If you’re having a problem with a bank account, credit card, student loan, consumer
loan or other nancial products or services you can submit a complaint to
the CFPB at
https://www.cfpb.gov/complaint
For answers to commonly asked questions you might have about other money
matters, visit “Ask CFPB” at https://www.consumernance.gov/ask-cfpb
Mail
Consumer Financial Protection Bureau
1700 G St. NW
Washington, DC 20552
Email
YourMoneyYourGoals@consumernance.gov
Toll-free phone
(855) 411-2372
Monday–Friday
8:00 a.m.–8:00 p.m. (EST)
TTY/TDD phone
(855) 729-2372
113
About the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) is a 21st century agency
that helps consumer nance markets work by making rules more effective, by
consistently and fairly enforcing those rules, and by empowering consumers
to take more control over their economic lives. Learn more at
https://www.
consumernance.gov
This guide and related materials are free and accessible
The Your Money, Your Goals toolkit and this companion guide are available as
a PDF download or can be ordered in hard copy for free. Both documents are
accessible to people with disabilities. The individual tools and handouts in the
toolkit and the guide are available as separate, downloadable PDF documents.
You can add information directly into the elds of the tools and all calculations are
done automatically.
You can nd the toolkit, this guide, and additional resources such as the training
slides and videos, and pre- and post-training surveys on the Your Money, Your
Goals webpage at www.consumernance.gov/your-money-your-goals
DISCLAIMER
Consumer Financial Protection Bureau prepared the tools included in the Your
Money, Your Goals: Focus on Reentry companion guide as a resource for the public.
This material is provided for educational and information purposes only. It is not a
replacement for the guidance or advice of an accountant, certied nancial advisor, or
otherwise qualied professional. The CFPB is not responsible for the advice or actions
of the individuals or entities from which you received the CFPB educational materials.
The CFPB’s educational efforts are limited to the materials that CFPB has prepared.
The tools may ask you to provide sensitive information. The CFPB does not collect
this information and is not responsible for how your information may be used if you
provide it to others. The CFPB recommends that you do not include names, account
numbers, or other sensitive information and that users follow their organization’s
policies regarding personal information.
This guide includes links or references to third-party resources or content that
consumers may nd helpful. The Bureau does not control or guarantee the accuracy
of this outside information. The inclusion of links or references to third-party sites
does not necessarily reect the Bureau’s endorsement of the third-party, the views
expressed on the outside site, or products or services offered on the outside site. The
Bureau has not vetted these third-parties, their content, or any products or services
they may offer. There may be other possible entities or resources that are not listed
that may also serve your needs.
Content good as of July 2021. For updates or change to laws, check website www.
consumernance.gov
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