BBB Advice on Student Security – What Every College Student Should Know

As college students get settled on campus, fighting fraud may not be at the top of their list of priorities. College students are susceptible to identity theft, however, and Better Business Bureau recommends that they take seven simple steps to protect themselves on campus.

In 2010, 8.1 million Americans – or 3.5 percent of the population – became victims of identity theft, according to the 2011 Identity Fraud Survey conducted by Javelin Strategy & Research and sponsored by BBB. The average mean cost of identity theft is $631 and the average time to resolve identity fraud is 33 hours – valuable study time.

“Friendly fraud” accounts for 14 percent of all ID theft crimes. This means that new roommates and friends have just as much potential of being as dastardly as a foreign-based scam artist phishing on the Internet. And identity thieves – friend or foe – think nothing of dumpster diving (or rifling through unattended trash cans) for unshredded paperwork or even taking mail from unlocked mailboxes (or off a desk). They can even cruise social networking sites looking for some personal tidbit that can unlock a wealth of information elsewhere.

“In this day and age, you can’t always trust your peers,” said Stephen A. Cox, president and CEO of the Council of Better Business Bureaus. “It’s extremely important for students to be vigilant in monitoring bank and credit card statements to spot unauthorized activity. Sign up for security alerts on your accounts and have them sent to your mobile phone so you’ll know if any changes have been made to your account.”

BBB recommends that college-bound students take the following seven steps to fight identity theft on campus:

Send sensitive mail to your parents’ home or a post office box. School mailboxes are not always secure and often can be accessed easily in a dorm or apartment.

Important documents should be stored under lock and key. This includes your Social Security card, passport and bank and credit card statements. Shred credit card offers and any paper documents that have sensitive financial information rather than just tossing them out.

Never lend your credit or debit card to anyone. Just say no if your friend wants to borrow your card or asks you to co-sign for a loan or financing for items like a TV.

Make sure your computer has up-to-date antivirus and spyware software. Always install any updates and patches to your computer’s operating system or browser software, which help keep your computer safe from any new advances by identity thieves online.

Always check your credit or debit card statements closely for any suspicious activity. The sooner you identify any potential fraud, the less you’ll suffer in the long run.

Check out unfamiliar websites with the BBB. Look for the BBB Accredited Business seal along with other trust seals; click on the seals to confirm that they are legitimate.

Check your credit report at least once a year. You are entitled to one free report a year from each of the three reporting bureaus: TransUnion, Experian and Equifax. Look for any suspicious activity or inaccuracies. You can do this for free by visiting www.annualcreditreport.com.

BBB Advice for Making “Golden” Gold Transactions

Arlington, VA – As global markets are currently seeing rapid declines, worried investors are seeking safe havens for their funds. Many are looking to new investment plans to help their money grow. With the price of gold at an all time high of more than $1,700 per ounce, Better Business Bureau is advising consumers to do their homework before making tempting gold transactions.

Whether through an online venue, an at home “gold party,” or your local jeweler, many consumers are looking to sell their gold jewelry for some quick cash. However, not just any dealer can be trusted. In just this year alone, BBB has already received more than 500 complaints against gold, silver and platinum dealers, a number that is well on its way to reaching 2010’s 581 total complaints.

“Consumers need to be on the lookout for not so reputable sellers,” said Stephen A. Cox, president and CEO of the Council of Better Business Bureaus. “Many of the complaints we receive stem from false advertising and delivery issues where the consumer ends up being appraised far less than what they thought their gold was worth.”

BBB recommends following these tips to ensure a “golden” gold transaction:

Find a trustworthy appraiser. For an appraisal, if possible, go to someone locally whom you know and trust. Always check with BBB first at www.bbb.org. BBB suggests obtaining two or three appraisals to compare prices, prior to any sale.

The true price of gold may not be what you receive. If gold is worth $1,700 per ounce, you aren’t going to be paid $1,700 for every ounce of gold you have. Ask what you will be paid (if an online company, make sure you ask for specifics and give details on items you’ll be sending). Understand that the ounce quote is for pure gold only. For instance, 14-karat gold is composed of just 58.5 per cent gold. Ask how much the company’s going rate is for each ounce of each karat you are sending. The lower the karat, the less the gold content.

Don’t let jewelry of different karat value be weighed together. Some dealers will weigh all jewelry together and pay you for the lowest karat value. Separate your jewelry by karat value before attending a gold party.

Don’t let anyone steal your diamonds from gold pieces. Single gold stud earrings might be worth $5 or $10, yet diamonds in the earrings can be saved. Some are too small, and the labor to remove them might exceed their value, but engagement ring diamonds, for example, should be given a value separate from the gold.

Know the terms and conditions when sending items by post. Make sure your items are insured when being shipped, so if they are lost you can recover the value. Obtain appraisals prior to mailing items, so if they are lost you have proof of their value. Check the company’s policy as to what they will reimburse if they lose your product. Many limit their liability. Make a list of the items included in the package, keep a copy for yourself, and put a copy in the envelope. Take a picture of the items you are sending, including any identifying marks.

Ask about the company’s guarantee if you are not satisfied with the price offered. Can you get your product back, if you return the check? Many companies melt down the items in 10–14 days. If you send the check back, send it “return receipt requested,” so you have proof when it arrived at the company.

Boomerang Kids

Problem or opportunity? Picture yourself returning home from your last graduation party and settling in for a quiet evening with your spouse to begin the "empty nest" phase of your life. The kids are now gone. Or are they? A recent phenomena is hitting America as an unprecedented number of grown kids are returning to the nest. This trend is becoming so well known it has fostered the phrase the "boomerang generation". What Happened? With the advent of high unemployment and record levels of college and graduate school debt, adult kids are struggling to make it on their own. There are also discussions about a shift in parents' willingness to help out financially and emotionally more so than in prior generations. In the 1940s 18 year olds were fighting wars in Europe or the Pacific. In the 1960s and 1970s kids were being drafted and many were protesting. Today's world is different, but is it bordering on over-indulging our children. So what to do if you find yourself in a boomerang situation? Whether you are a parent or a "boomerang" child, here are suggestions that may turn an uncomfortable situation into a rewarding experience.
Understand the reason. Understanding why the request to move back home will help you set expectations for each other. Having trouble finding a job is one thing, breaking up with a boyfriend or girlfriend brings quite another. What are your child's motives for moving back? Saving money for a new home? Are they going through a recent divorce? Trying to pay off debt? Getting ready for graduate school? Or perhaps it is simply for emotional stability. Understand the potential problems and discuss them. Having a serious discussion before moving back in is important. As a child, you need to make sure being a boomerang child does not foster a lack of motivation or having you become more passive in a job search. As a parent, you need to be concerned you are not stifling your child's development as a person or as a professional in their desired career. Set expectations. Some discussion topics could include: Establishing a timeframe Sharing of household duties Understanding house rules. (curfew, guest policy, groceries etc.) Setting up an agreement; consider putting it in writing Discussing if rent should be charged. How much? Define space. The tolerance to accept a messy house when the kids were small is one thing. It's quite different having to pick up after a grown child. Clearly defining each other's space in the house and setting expectations on keeping things like bathrooms clean can help tremendously. Be careful with debt. Make sure you do not enable financial behavior that is acceptable as a small child, but enables an adult child to become more passive about developing financial skills necessary to live independently as an adult. Do not sacrifice your own financial future by paying your child's debt. Funding your retirement is usually more important than bailing a child out of their financial predicament. What will they do when you need money in old age because you spent it on them to reduce their debt? Turn lemons into lemonade. While there are many inherent problems with the concept of the boomerang generation, there are wonderful opportunities as well. A few examples include: Reconnecting with each other when both the child and parents are adults. With a roof over their head, the boomerang adult can use the opportunity to explore and develop marketability as an employee by taking an unpaid internship or volunteering to help others. Help your child save money for their future goals. Adults can get help maintaining their home as they age. Remember many cultures value the benefits of multi-generational living. The wisdom of experience is passed from one generation to the next and the healthy bond established between generations helps those of all ages. If managed properly the boomerang experience could bring its own rewards. Brought to you by Pinnacle Accounting

Consumer Fraud Task Force Urges Consumers To Know Their Rights When Dealing With Debt Collectors

Brought to you by the Better Business Bureau:

With complaints over debt collection practices skyrocketing, consumers in Missouri and Illinois are urged to protect themselves against bogus and unscrupulous collectors.

The Consumer Fraud Task Force says that consumers need to know their rights if they are contacted by businesses attempting to recover debts. The Federal Trade Commission’s Fair Debt Collection Practices Act sets out specific rules on how collectors must operate.

“In this difficult economy, people who have never before dealt with debt collectors are receiving phone calls,” the Task Force said. “Sometimes, these callers are trying to collect on debts that were settled years ago or never existed at all. But even callers trying to collect on legitimate debts can become overly aggressive and violate consumers’ rights.”

Some of the questionable or illegal debt collecting practices include:

· Attempting to collect “phantom” or “zombie” debts. Most often, these are debts that were never owed or were previously paid or otherwise discharged.

· Harassing or intimidating collection tactics, usually involving persistent phone calls.

· Telling debtors they will be arrested or have their property seized unless they make payment.

· Claiming that the collector is a lawyer or affiliated with a law firm when that is not the case.

· Withdrawing money from a consumer’s bank account or charging his or her credit card without consent.

· Giving information on a debt to a third party.

· Communicating with a consumer after receiving written notice from the consumer that he or she is refusing to pay or no longer wants to be called.

The Fair Debt Collections Practices Act attempts to safeguard consumers from unscrupulous collectors. Many states have enacted similar laws. The federal act prohibits debt collectors from using threats of violence or harm against an individual, property or reputation. Collectors cannot threaten to garnish a consumer’s wages unless they intend to do so. The act also requires that collectors send you written proof of your debt. In recent months, consumers across the country have filed numerous cases in federal court alleging violations of the act. Additional information, and the full federal act, can be obtained by going to www.ftc.gov.

The FTC report received more complaints about debt collection than any other single industry in 2010 -- 140,000 complaints, up from 120,000 in 2009. In March, the FTC announced that a national debt collection business had agreed to pay a record $2.8 million to settle charges that its aggressive collection techniques violated federal law.

The Task Force is a coalition of local, state and federal government agencies and nonprofit business and consumer groups in Missouri and Illinois that work together to protect consumer and donor rights and guard against fraud. Previous Task Force releases have focused on tax scams, timeshare resellers, home remodelers, work-at-home scams, sweepstakes offers, online auctions, credit repair scams, debt management advice, foreclosure scams, extended auto service contracts, fire and police organizations.

FTC Permanently Halts Operation that Allegedly Made Bogus Claims about Eliminating Consumers' Debt

Two Principals Banned from Selling Financial Products and Services

As part of its continuing crackdown on scams that target consumers in financial distress, the Federal Trade Commission settled charges against a debt relief operation that allegedly lured consumers nationwide into paying thousands of dollars in up-front fees, but in most cases failed to actually reduce their credit card debts, and in many cases left them even deeper in debt. The proposed FTC settlement orders ban the company, Debt Relief USA, Inc., from doing further business, and ban company principals James Wojcik and Valerie Leath from marketing any financial products and services. Litigation continues against the two other principals, Kelly Reilly and Alvin Bell.

According to the FTC’s complaint, Debt Relief USA and its principals made deceptive claims that consumers who enrolled in their program could eliminate 40 to 60 percent of their credit card debt and be out of debt in 24 to 48 months. The FTC complaint charges that few consumers received the promised results.

Under the proposed settlements, Debt Relief USA, Wojcik, and Leath are required to protect and properly dispose of customers’ personal information. They also are prohibited from misrepresenting relevant facts to consumers.

The proposed settlements also impose a $19.7 million judgment against Wojcik and Leath, which will be suspended because of their inability to pay. If it is determined that the financial information they gave the FTC was untruthful, the full amount of the judgment will become due.

Debt Relief USA has declared bankruptcy. Through settlement of a separate action brought against Debt Relief USA by the Attorney General of Texas, consumers have received $3.7 million in refunds from the company’s bankruptcy estate and will receive additional distributions soon. The FTC participated in the bankruptcy proceeding and worked with the Attorney General of Texas to ensure maximum benefit for consumers. Because the Texas settlement recovered available company funds and provided refunds to consumers, the Commission’s settlement with the company does not involve monetary relief.

Consumers looking for help with credit card debt should be wary of anyone who tells them to stop paying their bills, to pay someone other than their creditors, or to stop talking to their creditors. Consumers should also be careful about paying for financial assistance before they receive it. For more information on dealing with debt, including public service announcements about avoiding debt relief scams, see the Debt Relief Services page of the FTC’s Money Matters website for consumers.

Changes made last year to the FTC’s Telemarketing Sales Rule prohibit companies that sell debt relief services over the telephone from charging fees before they settle or reduce a customer’s credit card or other unsecured debt. This ban on advance fees protects all consumers who have enrolled in a debt relief service since October 27, 2010. For more information about the advance fee ban see: Debt Relief Companies Prohibited From Collecting Advance Fees Under FTC Rule. For guidance to businesses on how to comply with the new Rule, see Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business.

The Commission vote to file the complaint against defendants Debt Relief USA, Inc., Wojcik, Leath, Reilly, and Bell was 5-0. The vote to approve the consent agreement with defendant Debt Relief USA, Inc. was also 5-0. The votes to approve the consent agreements with defendants Wojcik and Leath were 4-0-1, with Commissioner Rosch abstaining on both. The FTC filed the complaint on August 17, 2011, and the proposed consent decrees on August 19, 2011, in the U.S. District Court for the Northern District of Texas, Dallas Division. The proposed consent decrees are subject to court approval.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. Consent decrees are for settlement purposes only and do not constitute an admission by the defendant that the law has been violated. Consent decrees have the force of law when approved and signed by the District Court judge.

Take Care When Paying Medical Bills

Make sure your insurer will pick up its part of the tab. By Cameron Huddleston

I was about to write a check to pay for a medical bill when I realized that I probably didn't owe the amount shown on the invoice. The bill was for a health screening that was performed in late May. I provided my health insurance card at the time of test. But I had a feeling that the lab that actually analyzed the screening samples hadn't bothered to submit its claim to my insurance company before sending me a bill. That's because the bill arrived shortly after the test was done, and I hadn't received a statement from my insurance company that a claim had been submitted. All of this sunk in as I was about to put pen to paper. So I picked up the phone, called the lab and asked whether it had attempted to get my insurance company to pay for the procedure. "No," the customer service representative said. Just as I thought. So before you pay a medical bill, make sure the claim has been submitted to your insurance company. Don't ignore the bill – you don't want credit collectors knocking on your door. Just make a quick call to the medical facility that sent the bill or to your insurer to find out whether you're really on the hook for the full amount. Reprinted with permission. All Contents ©2011 The Kiplinger Washington Editors.

Top 10 Bad Credit Installment Loans

More and more people are choosing installment loans to help with unexpected emergencies. Bad credit installment loans are repaid with a fixed regular installment, and a rate of interest fixed for the duration of the loan. Whether you are funding an education, purchasing a vehicle or simply need cash, bad credit installment loans might just be the thing you have been looking for.

How can I find a loan that is best for me?

To find the loan that is best for you, talk to a loan specialist who will be happy to work with you to establish a loan best suited to your needs. Most installment loans come with terms from one to five years. Regardless of your credit history, bad credit installment loans are there for your convenience and are a wonderful resource for people with bad credit.

How can installment loans help rebuild my credit?

Installment loans for bad credit give you options. It also gives you the opportunity to rebuild your credit score as long as you make your timely payments and stay within your credit limit. It is extremely important to do extensive research before choosing a lender. Lenders typically offer loans at very competitive interest rates, so shop around and choose the lender that offers the best possible deal. There are a variety of bad credit installment loans to choose from, some are:

1.                     Payday bad credit installment loans: A payday bad credit installment loan is similar to a short term installment loan: you make small payments each payday until your loan is paid off. If you are 18 years or older, with a reliable source of income, you may already pre-qualify for a payday installment loan. If you choose to apply online, you will need to have direct deposit on your bank account and your money can be deposited in less than two hours.

2.                     Short Term bad credit installment loans: Short term installment loans of up to $150,000 can be yours in hours. These installment loans are similar to bad credit payday loans but have the option to pay back the loan in smaller portions on your paydays until the loan is paid off.

3.                     Secured bad credit installment loan: Offers a larger amount in loan and longer repayment period. This loan requires collateral.

4.                     Unsecured bad credit installment loan: The unsecured installment loan for people with bad credit do not re not require collateral.

5.                     Vehicle bad credit installment loans: Do you have a motor vehicle emergency? Installment loans can get you back on the road in no time. Whether you have a flat tire or other serious vehicle problem, you can apply for an installment loan to take care of all your auto expenses.

6.                     Personal bad credit installment loans: If you need cash in a hurry, you can take out a personal loan with terms of one to five years. A personal loan can be used for anything.

7.                     Education bad credit installment loans: Not sure how you are going to pay for college expenses? An education loan just might be your answer.

8.                     Consolidation bad credit installment loans: Can help you consolidate all your debts by paying them off with one single loan amount.

9.                     Mortgage bad credit installment loans: Loans for home are known as mortgages. The borrower can make monthly installment payments on the mortgage.

10.                  Credit Cards bad credit installment loans: Credit card loans are open-end installment loans where you make monthly payments until the loan is paid off.

What to Look Out for When Signing for Bad Credit Installment Loans

·                                 Increase in interest rates: Late payments of installments can lead to increase in the interest rate.

·                                 Early pay off: If you repay the loan earlier than the time period, the early payment penalty can lead to an increase in charges or fees.

·                                 Automatic Loan Payments: You can avoid late fees by setting up a monthly automatic payment withdrawal from your personal checking account. If you choose to go this route, make sure that there is enough money in your bank account on the withdrawal date otherwise you will end up paying an overdraft fee.