Debit card fraud occurs when a criminal gains access to your debit card number and, in some cases, PIN, to make unauthorized purchases and/or withdraw cash from your account. There are many different methods of obtaining your information, from unscrupulous employees to hackers gaining access to your data from a retailer's unsecure computer.
When your debit card is used fraudulently, the money is missing from your account instantly. Payments you've scheduled or checks you've mailed may bounce; you may not be able to afford necessities, and it can take awhile for the fraud to be cleared up and the money restored to your account.
How to Detect Debit Card Fraud
Fortunately, it doesn't take any special skills to detect debit card fraud. The easiest way to spot problems early is to sign up for online banking, if you haven't already. Check your balance and recent transactions daily. The sooner you detect fraud, the easier it will be to limit its impact on your finances and your life. If you see unfamiliar transactions, call the bank right away. If you're the forgetful type, start hanging on to the receipts from your debit card transactions so you can compare these against your online transactions.
If you don't want to bank online, you can keep tabs on your recent transactions via phone banking. In the very least, you should review your monthly bank statement as soon as you receive them, and check your account balance whenever you visit an ATM or bank teller. However, it can take much longer to detect fraud using these methods.
9 Easy Ways to Protect Yourself
While you may not have any control over hackers and other thieves, there are many things you can control that will help you avoid becoming a victim.
• Get banking alerts. In addition to checking your balance and recent transactions online daily, you can sign up for banking alerts. Your bank will then contact you by email or text message when certain activity occurs on your account, such as a withdrawal exceeding an amount you specify or a change of address.
• Go paperless. Signing up for paperless bank statements will eliminate the possibility of having bank account information stolen from your mailbox. Shredding existing bank statements and debit card receipts using a diamond-cut shredder when you're done with them will greatly reduce the possibility of having bank account information stolen from your trash.
• Don't make purchases with your debit card. Use a credit card instead, because it offers greater protection against fraud. If you do make debit card purchases, don't use your PIN - tell the cashier to select the credit option. The money for your purchase will still be withdrawn from your account right away, but you won't expose yourself to PIN theft.
• Stick to bank ATMs. They tend to have better security (video cameras) than ATMs at convenience stores, restaurants and other places.
• Destroy old debit cards. Some shredders will take care of this for you.
• Don't keep all your money in one place. If your checking account is compromised, you want to be able to access cash from another source to pay for necessities and meet your financial obligations.
• Beware of phishing scams. When checking your email or doing business online, make sure you know who you're interacting with.
• Protect your computer. Use firewall, anti-virus and anti-spyware software on your computer, and keep it updated regularly.
.• Use a secured network. Don't do financial transactions online, when using your computer in a public place and/or over an unsecured network.
What to Do If It Happens to You
If you learn that your debit card information has been compromised, contact your bank immediately to limit the damage the thief can do, and limit your financial responsibility for the fraud. Make contact immediately by phone, and follow up with a detailed letter stating the full name of the bank employee you spoke with, details of the fraudulent transactions, and any ideas you have about how your account may have been compromised. Ask your bank to waive any NSF fees that may be incurred because of the fraud, and to restore the fraudulently withdrawn funds to your account.
Hopefully, you won't have any trouble resolving the issue directly with your bank, but if you do, you can contact a legitimate consumer advocacy group such as Privacy Rights Clearinghouse. There are also government organizations to contact if your bank isn't cooperating. The agency to contact depends on the type of bank you use.
• The Federal Reserve Board of Governors handles complaints for state-chartered Federal Reserve System banks, bank holding companies and branches of foreign banks.
• The FDIC deals with state-chartered, non-FRS banks.
• The National Credit Union Association handles federally chartered credit unions.
• The Office of the Comptroller of the Currency (OCC) oversees national banks.
• The Office of Thrift Supervision keeps an eye on federal savings and loans and federal savings banks.
• The Federal Trade Commission handles everything else.
If you're not sure which one to call, start with the OCC.
If you will have trouble making any of your monthly payments because of the fraud, contact those creditors, explain the situation and ask if they can do anything for you. This step is extremely important, as failure to do so implies your unwillingness to pay them. However, if they know about your hardship, they may be willing to work with you to reschedule payments.
Conclusion
Anything you can do to make a thief's work more difficult, whether it's staying on top of your balance, spreading your cash out across multiple accounts or making purchases with credit cards instead of debit, will help safeguard your checking account and decrease your chances of becoming a victim of debit card fraud.
Tuesday, March 30, 2010
Sunday, March 21, 2010
10 Places NOT to Use Your Debit Card
Debit cards have different protections and uses. Sometimes they're not the best choice.
Sometimes reaching for your wallet is like a multiple choice test: How do you really want to pay?
While credit cards and debit cards may look almost identical, not all plastic is the same.
"It's important that consumers understand the difference between a debit card and a credit card," says John Breyault, director of the Fraud Center for the National Consumers League, a Washington, D.C.-based advocacy group. "There's a difference in how the transactions are processed and the protections offered to consumers when they use them."
While debit cards and credit cards each have advantages, each is also better suited to certain situations. And since a debit card is a direct line to your bank account, there are places where it can be wise to avoid handing it over -- if for no other reason than complete peace of mind.
Here are 10 places and situations where it can pay to leave that debit card in your wallet:
1. Online
"You don't use a debit card online," says Susan Tiffany, director of consumer periodicals for the Credit Union National Association. Since the debit card links directly to a checking account, "you have potential vulnerability there," she says.
Her reasoning: If you have problems with a purchase or the card number gets hijacked, a debit card is "vulnerable because it happens to be linked to an account," says Linda Foley, founder of the Identity Theft Resource Center. She also includes phone orders in this category.
The Federal Reserve's Regulation E (commonly dubbed Reg E), covers debit card transfers. It sets a consumer's liability for fraudulent purchases at $50, provided they notify the bank within two days of discovering that their card or card number has been stolen.
Most banks have additional voluntary policies that set their own customers' liability with debit cards at $0, says Nessa Feddis, vice president and senior counsel for the American Bankers Association.
But the protections don't relieve consumers of hassle: The prospect of trying to get money put back into their bank account, and the problems that a lower-than-expected balance can cause in terms of fees and refused checks or payments, make some online shoppers reach first for credit cards.
2. Big-Ticket Items
With a big ticket item, a credit card is safer, says Chi Chi Wu, staff attorney with the National Consumer Law Center. A credit card offers dispute rights if something goes wrong with the merchandise or the purchase, she says.
"With a debit card, you have fewer protections, " she says.
In addition, some cards will also offer extended warrantees. And in some situations, such as buying electronics or renting a car, some credit cards also offer additional property insurance to cover the item.
Two caveats, says Wu. Don't carry a balance. Otherwise, you also risk paying some high-ticket interest. And "avoid store cards with deferred interest," Wu advises.
3. Deposit Required
When Peter Garuccio recently rented some home improvement equipment at a big-box store, it required a sizable deposit. "This is where you want to use a credit card instead of a debit," says Garuccio, spokesman for the national trade group American Bankers Association.
That way, the store has its security deposit, and you still have access to all of the money in your bank account. With any luck, you'll never actually have to part with a dollar.
4. Restaurants
"To me, it's dangerous," says Gary Foreman, editor of the frugality minded Web site The Dollar Stretcher. "You have so many people around."
Foreman bases his conclusions on what he hears from readers. "Anecdotally, the cases that I'm hearing of credit or debit information being stolen, as often as not, it's in a restaurant," he says.
The danger: Restaurants are one of the few places where you have to let cards leave your sight when you use them. But others think that avoiding such situations is not workable.
The "conventional advice of 'don't let the card out of your sight' -- that's just not practical," says Tiffany.
The other problem with using a debit card at restaurants: Some establishments will approve the card for more than your purchase amount because, presumably, you intend to leave a tip. So the amount of money frozen for the transaction could be quite a bit more than the amount of your tab. And it could be a few days before you get the cash back in your account.
5. You're a New Customer
Online or in the real world, if you're a first-time customer in a store, skip the debit card the first couple of times you buy, says Breyault.
That way, you get a feel for how the business is run, how you're treated and the quality of the merchandise before you hand over a card that links to your checking account.
6. Buy Now, Take Delivery Later
Buying now but taking delivery days or weeks from now? A credit card offers dispute rights that a debit card typically does not.
"It may be an outfit you're familiar with and trust, but something might go wrong," says Breyault, "and you need protection."
But be aware that some cards will limit the protection to a specific time period, says Feddis. So settle any problems as soon as possible.
7. Recurring Payments
We've all heard the urban legend about the gym that won't stop billing an ex-member's credit card. Now imagine the charges aren't going onto your card, but instead coming right out of your bank account.
Another reason not to use the debit card for recurring charges: your own memory and math skills. Forget to deduct that automatic bill payment from your checkbook one month, and you could either face fees or embarrassment (depending on whether you've opted to allow overdrafting or not). So if you don't keep a cash buffer in your account, "to protect yourself from over-limit fees, you may want to think about using a credit card" for recurring payments, says Breyault.
8. Future Travel
Book your travel with a check card, and "they debit it immediately, " says Foley. So if you're buying travel that you won't use for six months or making a reservation for a few weeks from now, you'll be out the money immediately.
Another factor that bothers Foley: Hotels aren't immune to hackers and data breaches, and several name-brand establishments have suffered the problem recently. Do you want your debit card information "to sit in a system for four months, waiting for you to arrive?" she asks. "I would not."
9. Gas Stations and Hotels
This one depends on the individual business. Some gas stations and hotels will place holds to cover customers who may leave without settling the entire bill. That means that even though you only bought $10 in gas, you could have a temporary bank hold for $50 to $100, says Tiffany.
Ditto hotels, where there are sometimes holds or deposits in the hundreds to make sure you don't run up a long distance bill, empty the mini bar or trash the room. The practice is almost unnoticeable if you're using credit, but can be problematic if you're using a debit card and have just enough in the account to cover what you need.
At hotels, ask about deposits and holds before you present your card, says Feddis. At the pump, select the pin-number option, she says, which should debit only the amount you've actually spent.
10. Checkouts or ATMs That Look 'Off'
Criminals are getting better with skimmers and planting them in places you'd never suspect -- like ATM machines on bank property, says Foley.
So take a good look at the machine or card reader the next time you use an ATM or self-check lane, she advises. Does the machine fit together well or does something look off, different or like it doesn't quite belong? Says Foley, "Make sure it doesn't look like it's been tampered with."
Sometimes reaching for your wallet is like a multiple choice test: How do you really want to pay?
While credit cards and debit cards may look almost identical, not all plastic is the same.
"It's important that consumers understand the difference between a debit card and a credit card," says John Breyault, director of the Fraud Center for the National Consumers League, a Washington, D.C.-based advocacy group. "There's a difference in how the transactions are processed and the protections offered to consumers when they use them."
While debit cards and credit cards each have advantages, each is also better suited to certain situations. And since a debit card is a direct line to your bank account, there are places where it can be wise to avoid handing it over -- if for no other reason than complete peace of mind.
Here are 10 places and situations where it can pay to leave that debit card in your wallet:
1. Online
"You don't use a debit card online," says Susan Tiffany, director of consumer periodicals for the Credit Union National Association. Since the debit card links directly to a checking account, "you have potential vulnerability there," she says.
Her reasoning: If you have problems with a purchase or the card number gets hijacked, a debit card is "vulnerable because it happens to be linked to an account," says Linda Foley, founder of the Identity Theft Resource Center. She also includes phone orders in this category.
The Federal Reserve's Regulation E (commonly dubbed Reg E), covers debit card transfers. It sets a consumer's liability for fraudulent purchases at $50, provided they notify the bank within two days of discovering that their card or card number has been stolen.
Most banks have additional voluntary policies that set their own customers' liability with debit cards at $0, says Nessa Feddis, vice president and senior counsel for the American Bankers Association.
But the protections don't relieve consumers of hassle: The prospect of trying to get money put back into their bank account, and the problems that a lower-than-expected balance can cause in terms of fees and refused checks or payments, make some online shoppers reach first for credit cards.
2. Big-Ticket Items
With a big ticket item, a credit card is safer, says Chi Chi Wu, staff attorney with the National Consumer Law Center. A credit card offers dispute rights if something goes wrong with the merchandise or the purchase, she says.
"With a debit card, you have fewer protections, " she says.
In addition, some cards will also offer extended warrantees. And in some situations, such as buying electronics or renting a car, some credit cards also offer additional property insurance to cover the item.
Two caveats, says Wu. Don't carry a balance. Otherwise, you also risk paying some high-ticket interest. And "avoid store cards with deferred interest," Wu advises.
3. Deposit Required
When Peter Garuccio recently rented some home improvement equipment at a big-box store, it required a sizable deposit. "This is where you want to use a credit card instead of a debit," says Garuccio, spokesman for the national trade group American Bankers Association.
That way, the store has its security deposit, and you still have access to all of the money in your bank account. With any luck, you'll never actually have to part with a dollar.
4. Restaurants
"To me, it's dangerous," says Gary Foreman, editor of the frugality minded Web site The Dollar Stretcher. "You have so many people around."
Foreman bases his conclusions on what he hears from readers. "Anecdotally, the cases that I'm hearing of credit or debit information being stolen, as often as not, it's in a restaurant," he says.
The danger: Restaurants are one of the few places where you have to let cards leave your sight when you use them. But others think that avoiding such situations is not workable.
The "conventional advice of 'don't let the card out of your sight' -- that's just not practical," says Tiffany.
The other problem with using a debit card at restaurants: Some establishments will approve the card for more than your purchase amount because, presumably, you intend to leave a tip. So the amount of money frozen for the transaction could be quite a bit more than the amount of your tab. And it could be a few days before you get the cash back in your account.
5. You're a New Customer
Online or in the real world, if you're a first-time customer in a store, skip the debit card the first couple of times you buy, says Breyault.
That way, you get a feel for how the business is run, how you're treated and the quality of the merchandise before you hand over a card that links to your checking account.
6. Buy Now, Take Delivery Later
Buying now but taking delivery days or weeks from now? A credit card offers dispute rights that a debit card typically does not.
"It may be an outfit you're familiar with and trust, but something might go wrong," says Breyault, "and you need protection."
But be aware that some cards will limit the protection to a specific time period, says Feddis. So settle any problems as soon as possible.
7. Recurring Payments
We've all heard the urban legend about the gym that won't stop billing an ex-member's credit card. Now imagine the charges aren't going onto your card, but instead coming right out of your bank account.
Another reason not to use the debit card for recurring charges: your own memory and math skills. Forget to deduct that automatic bill payment from your checkbook one month, and you could either face fees or embarrassment (depending on whether you've opted to allow overdrafting or not). So if you don't keep a cash buffer in your account, "to protect yourself from over-limit fees, you may want to think about using a credit card" for recurring payments, says Breyault.
8. Future Travel
Book your travel with a check card, and "they debit it immediately, " says Foley. So if you're buying travel that you won't use for six months or making a reservation for a few weeks from now, you'll be out the money immediately.
Another factor that bothers Foley: Hotels aren't immune to hackers and data breaches, and several name-brand establishments have suffered the problem recently. Do you want your debit card information "to sit in a system for four months, waiting for you to arrive?" she asks. "I would not."
9. Gas Stations and Hotels
This one depends on the individual business. Some gas stations and hotels will place holds to cover customers who may leave without settling the entire bill. That means that even though you only bought $10 in gas, you could have a temporary bank hold for $50 to $100, says Tiffany.
Ditto hotels, where there are sometimes holds or deposits in the hundreds to make sure you don't run up a long distance bill, empty the mini bar or trash the room. The practice is almost unnoticeable if you're using credit, but can be problematic if you're using a debit card and have just enough in the account to cover what you need.
At hotels, ask about deposits and holds before you present your card, says Feddis. At the pump, select the pin-number option, she says, which should debit only the amount you've actually spent.
10. Checkouts or ATMs That Look 'Off'
Criminals are getting better with skimmers and planting them in places you'd never suspect -- like ATM machines on bank property, says Foley.
So take a good look at the machine or card reader the next time you use an ATM or self-check lane, she advises. Does the machine fit together well or does something look off, different or like it doesn't quite belong? Says Foley, "Make sure it doesn't look like it's been tampered with."
Top Things That Computer Users Should Fear in 2010
Can the Internet be a scary place? Yes, and it may be an even more dangerous place this year, according to this MSNBC story.
The daunting story makes predictions including:
1. Anti-virus products will have more difficulty screening out viruses
2. Increased buying of fake anti-virus software
3. Social networking sites will continue to be platforms for impersonation/identity theft
4. Spam numbers will keep climbing
Even though this may not be the most uplifting news, it’s important that the Internet always be treated as a powerful communication tool of seemingly endless possibilities - both positive and negative.
Caution is always the key to safe surfing. If something seems suspicious, avoid it and take precautions to safeguard all your confidential information, both online and during in person interactions. Pre-Paid Legal’s Identity Theft ShieldSM is a way to combat this crime offering a series of services dedicated to detection and restoration.
It’s one thing to hope that these predictions don’t come true; it’s quite another to ignore the warnings and not take steps to protect your identity and leave the door wide open for cyber criminals.
The daunting story makes predictions including:
1. Anti-virus products will have more difficulty screening out viruses
2. Increased buying of fake anti-virus software
3. Social networking sites will continue to be platforms for impersonation/identity theft
4. Spam numbers will keep climbing
Even though this may not be the most uplifting news, it’s important that the Internet always be treated as a powerful communication tool of seemingly endless possibilities - both positive and negative.
Caution is always the key to safe surfing. If something seems suspicious, avoid it and take precautions to safeguard all your confidential information, both online and during in person interactions. Pre-Paid Legal’s Identity Theft ShieldSM is a way to combat this crime offering a series of services dedicated to detection and restoration.
It’s one thing to hope that these predictions don’t come true; it’s quite another to ignore the warnings and not take steps to protect your identity and leave the door wide open for cyber criminals.
Medical Identity Theft on the Rise
Imagine finding out that someone has used your identity to get more than $100,000 worth of medical treatment. Imagine finding out there’s incorrect information in your medical file like the wrong medical history, blood type and allergies. The Wall Street Journal recently posted an article on the growing prevalence of medical identity theft and the impact it has on its victims.
As more and more medical records become electronic, the information becomes easier for thieves to steal. Unfortunately, many don’t realize an identity theft has occurred until their medical records have been distorted and medical bills ran up.
The impact can be very serious if personal medical records are altered with the wrong medical history, blood type and allergies. The article says that consumers could also exhaust their lifetime coverage or be considered uninsurable, if their insurance has been used by someone else.
It’s important to take proactive measures to safeguard your personal information. Pre-Paid Legal’s Identity Theft ShieldSM can help.
As more and more medical records become electronic, the information becomes easier for thieves to steal. Unfortunately, many don’t realize an identity theft has occurred until their medical records have been distorted and medical bills ran up.
The impact can be very serious if personal medical records are altered with the wrong medical history, blood type and allergies. The article says that consumers could also exhaust their lifetime coverage or be considered uninsurable, if their insurance has been used by someone else.
It’s important to take proactive measures to safeguard your personal information. Pre-Paid Legal’s Identity Theft ShieldSM can help.
Identity Theft’s Youngest Victims: Children and Teens
Applying for that first credit card or opening that first checking account should be an exciting step for teens. But for some, this could be the moment when they discover that they’ve been victimized by identity theft. Children are susceptible because it is often years before they attempt to apply for credit, leaving the thief plenty of time to abuse their credit and vanish.
A story posted on MSN Money gives a sobering look at the impact of identity theft to our children.
The article tells about a 17-year-old from California who went in to open a checking and savings account at the bank only to discover his Social Security Number was under someone else’s name. The young man’s identity had been stolen years before when he was only 12. Now as a college graduate he has been “financially crippled” by the bad credit the thief left behind.
Pre-Paid Legal offers identity theft services for minor children through Safeguard for MinorsSM, an important service that parents or guardians can add-on to the Identity Theft ShieldSM. Safeguard offers valuable services for minor children that include monitoring, consultation and restoration services and other valuable benefits.
A story posted on MSN Money gives a sobering look at the impact of identity theft to our children.
The article tells about a 17-year-old from California who went in to open a checking and savings account at the bank only to discover his Social Security Number was under someone else’s name. The young man’s identity had been stolen years before when he was only 12. Now as a college graduate he has been “financially crippled” by the bad credit the thief left behind.
Pre-Paid Legal offers identity theft services for minor children through Safeguard for MinorsSM, an important service that parents or guardians can add-on to the Identity Theft ShieldSM. Safeguard offers valuable services for minor children that include monitoring, consultation and restoration services and other valuable benefits.
10 Million Americans Have Stolen Identities Each Year
Identity theft is a skyrocketing crime. Without protection, Americans are at high risk of identity theft in the near future.
These crooks aren't just opening up credit card accounts under your name. They're also abusing your utility services, using counterfeit checks, making ATM electronic withdrawals, taking out a loan, getting your driver's license with their own picture, obtain government benefits, and the list goes on.
Damages Cost From Hundreds to Thousands of Dollars
Money isn't the only thing you'll be losing from these unfortunate circumstances. Other potential losses include loss of employment, rejection for loans, and also the possibility of being arrested for a crime you didn't commit.
Identity theft, depending on the type of theft that takes place, could take years to repair. Most Americans don't notice their compromised identity until it's too late, and it's important to educate yourself on the different warning signals your identity is stolen.
Warning Signals of Identity Theft
There are many warning signs to tell you your identity has been stolen, but there are a few more common ones we'll list.
- denied credit or loans for no apparant reason
- monthly credit card statements, utility bills, etc. stop arriving
- receive a credit card you did not apply for
- receive bills from places you never spent at to; receive bills from the collection agency
- you notice some of your mail is missing
Choosing An Identity Theft Protection Service
The sole purpose of this website is to give you an idea of which identity theft protection service you should choose. There are many companies offering insurance, however not all of them provide the security and customer service you can trust. We reviewed each of the popular credit protection companies and ranked them based on 4 standards:
Security - A good company should provide you fraud monitoring features along with good fraud alerts. Security is very broad and covers many of the features provided by a company.
Reputation - Trust is a big issue nowadays and it's important to rank each company based on their history and customer satisfaction. The staff of each of the companies also have different experience levels, and this will be factored into the reputation category.
Recovery - If your identity gets stolen, does the company have the resources to take action quickly to stop it from happening further? We searched for companies that will work with you to help you file required reports, recover stolen information, and dispute the unauthorized transactions in your account.
Customer Service - If you can't communicate with the company, the fraud protection is completely worthless. Companies that had experienced staff to guide you through any problems you have received a higher score in this category. We looked for prompt and helpful responses.
These crooks aren't just opening up credit card accounts under your name. They're also abusing your utility services, using counterfeit checks, making ATM electronic withdrawals, taking out a loan, getting your driver's license with their own picture, obtain government benefits, and the list goes on.
Damages Cost From Hundreds to Thousands of Dollars
Money isn't the only thing you'll be losing from these unfortunate circumstances. Other potential losses include loss of employment, rejection for loans, and also the possibility of being arrested for a crime you didn't commit.
Identity theft, depending on the type of theft that takes place, could take years to repair. Most Americans don't notice their compromised identity until it's too late, and it's important to educate yourself on the different warning signals your identity is stolen.
Warning Signals of Identity Theft
There are many warning signs to tell you your identity has been stolen, but there are a few more common ones we'll list.
- denied credit or loans for no apparant reason
- monthly credit card statements, utility bills, etc. stop arriving
- receive a credit card you did not apply for
- receive bills from places you never spent at to; receive bills from the collection agency
- you notice some of your mail is missing
Choosing An Identity Theft Protection Service
The sole purpose of this website is to give you an idea of which identity theft protection service you should choose. There are many companies offering insurance, however not all of them provide the security and customer service you can trust. We reviewed each of the popular credit protection companies and ranked them based on 4 standards:
Security - A good company should provide you fraud monitoring features along with good fraud alerts. Security is very broad and covers many of the features provided by a company.
Reputation - Trust is a big issue nowadays and it's important to rank each company based on their history and customer satisfaction. The staff of each of the companies also have different experience levels, and this will be factored into the reputation category.
Recovery - If your identity gets stolen, does the company have the resources to take action quickly to stop it from happening further? We searched for companies that will work with you to help you file required reports, recover stolen information, and dispute the unauthorized transactions in your account.
Customer Service - If you can't communicate with the company, the fraud protection is completely worthless. Companies that had experienced staff to guide you through any problems you have received a higher score in this category. We looked for prompt and helpful responses.
Foreclosures are No Guarantee that Headaches are Over
For those on the cusp of foreclosure, it's important to understand the details of the situation fully because troubles may not end after a foreclosure. According to a CNN Money article, if there’s a difference between what’s owed on a home and what the bank would get at auction, the bank could pursue a deficiency judgment against a former homeowner, even years after the foreclosure.
Whether it was unemployment, a job transfer, or just struggling under too big of a loan, if a borrower can no longer sell their home for what they owe and are forced to short sell or foreclose, they could face a deficiency judgment.
The article also advises borrowers to seek legal advice if they have any doubts about what their risks are. This is so important because laws vary by state, and there are multiple ways an attorney can advise a client regarding foreclosure. It is also important to never sign any paperwork without fully understanding it. Pre-Paid Legal members should contact their Provider Attorney the moment a concern arises so the attorney can go over the situation, examine any related documents, and offer sound legal advice.
Whether it was unemployment, a job transfer, or just struggling under too big of a loan, if a borrower can no longer sell their home for what they owe and are forced to short sell or foreclose, they could face a deficiency judgment.
The article also advises borrowers to seek legal advice if they have any doubts about what their risks are. This is so important because laws vary by state, and there are multiple ways an attorney can advise a client regarding foreclosure. It is also important to never sign any paperwork without fully understanding it. Pre-Paid Legal members should contact their Provider Attorney the moment a concern arises so the attorney can go over the situation, examine any related documents, and offer sound legal advice.
Tuesday, March 9, 2010
FreeCreditReport.com isn't free
Back in 2003, Congress passed a law that gives every American the right to a free credit report from the three major credit bureaus each year. This was a good law, but it was not clear how people were to go about taking advantage of that free report. The only authorized (and free) way to get the report is by going to the website AnnualCreditReport.com or calling 877-322-8228.
But that web site and phone number did not get a lot of widespread publicity. The credit bureau Experian realized this and decided to run a little scam of its own. They created a subdivision of their company and named it FreeCreditReport.com, and it turned into a good moneymaker for them -- because nothing was free at this site.
You've probably seen their television ads where this small band (with singer Eric Violette) sings about how much better they would be if they'd only gone to the FreeCreditReport.com site. In one of the ads the band is working in a fast food restaurant, in another they are working a Renaissance Fair and a third shows them only able to buy a clunker of a car that has women laughing at them. There are several more besides these.
The ads make it seem like you could go to the site and actually get a free credit report, but that is, to put it mildly, not true. When you go to the site, you actually have to sign up for Experian's credit monitoring service -- for $14.95 a month. That's a far cry from free.
Fortunately, the government has finally caught up with Experian's little scam. The new credit card law contains a provision that lets the Federal Trade Commission (FTC) force Experian to put large and very obvious disclosures on their web site (like the gray box in the above picture of their site) telling everyone that the ONLY authorized place to get a free report is at AnnualCreditReport.com (the site authorized by Congress).
The FTC has been fighting Experian in court for years over this fraudulent advertising, but has been able to accomplish little. Thank goodness Congress finally gave them the power to get something done.
The ads on TV are catchy, but don't fall for them. There's nothing free about FreeCreditReport.com.
But that web site and phone number did not get a lot of widespread publicity. The credit bureau Experian realized this and decided to run a little scam of its own. They created a subdivision of their company and named it FreeCreditReport.com, and it turned into a good moneymaker for them -- because nothing was free at this site.
You've probably seen their television ads where this small band (with singer Eric Violette) sings about how much better they would be if they'd only gone to the FreeCreditReport.com site. In one of the ads the band is working in a fast food restaurant, in another they are working a Renaissance Fair and a third shows them only able to buy a clunker of a car that has women laughing at them. There are several more besides these.
The ads make it seem like you could go to the site and actually get a free credit report, but that is, to put it mildly, not true. When you go to the site, you actually have to sign up for Experian's credit monitoring service -- for $14.95 a month. That's a far cry from free.
Fortunately, the government has finally caught up with Experian's little scam. The new credit card law contains a provision that lets the Federal Trade Commission (FTC) force Experian to put large and very obvious disclosures on their web site (like the gray box in the above picture of their site) telling everyone that the ONLY authorized place to get a free report is at AnnualCreditReport.com (the site authorized by Congress).
The FTC has been fighting Experian in court for years over this fraudulent advertising, but has been able to accomplish little. Thank goodness Congress finally gave them the power to get something done.
The ads on TV are catchy, but don't fall for them. There's nothing free about FreeCreditReport.com.
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