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IDENTITY THEFT: WHAT TO DO IF IT HAPPENS TO YOU

Identity theft is a growing problem in the United States. Last year, more than 600,000 cases were reported to just one of the three major credit bureaus, and the Better Business Bureau estimates that around 1,000 Americans fall victim to identity theft every day.

   There are several ways in which you may discover you have joined the ranks of these victims. You may be contacted by a collection agency about an account in your name that has not been paid, but which you did not open. You may be denied a loan or a credit card. You may even find out that a court judgment has been entered against you, or that a warrant has been posted for your arrest.

   Clearing your name and restoring your good credit is not an easy task. In fact, even though you are the victim, lenders and financial institutions are often likely to treat you as the perpetrator of a crime against them. To begin to undo the damage caused by someone who steals your identity, here are the steps you will need to take.

     First, you will need to contact the fraud units of the three major credit-reporting agencies. These agencies are:

Report the problem and ask to receive a copy of your credit report. You should also ask to put a fraud alert on your file. With a fraud alert on record, a lender or merchant will contact you before granting credit to someone using your name or other identifying information. Ask the credit bureaus to delete any credit inquiries from your record that are related to fraudulent applications. Be sure to follow up your telephone requests in writing as soon as possible.

Report fraudulent use of your Social Security number to the Social Security Administration (SSA). In some cases, you may be able to obtain a new Social Security number, but only if you meet the SSA’s stringent fraud victim criteria.

Get in touch with your state Department of Motor Vehicles to put a fraud alert on your driver’s license, and to find out if anyone has had a license issued under your name. In some states, if your license was lost or stolen, you may be issued a new license number on the spot. In others, the law may only allow you to obtain a new number after your old one has been used fraudulently.

You should file a report with your local police department as soon as you discover any evidence of identity theft. Obtain the name and badge number of the officer taking the report, and obtain a copy for your records. Many lenders will not accept a claim of identity theft unless you file a report with the police. Be persistent -- in some parts of the country, police are overworked, and it may be weeks or even months before you receive a copy unless you continue to ask for it.

If you discover that your checks have been stolen, or that your ATM card is missing, get in touch with your bank immediately to cancel your account, stop payment on checks, open a new account and establish new passwords.

If you discover that a civil or criminal judgment has been entered against you, you may need to speak with an attorney who can help you clear your name. The consumer protection division of your state government may also be able to help.

Finally, check with your insurance agent to see if you have any coverage under your homeowner or renter’s policy that may help compensate you for the cost of dealing with identity theft. Although not many insurers have offered this coverage in the past, some now offer it at no additional charge, or for a relatively small additional fee.

This article is provided for educational and informational purposes only, and should not be considered as legal advice. Always contact a licensed and experienced attorney before taking any legal action.

Soldiers and Sailors Relief Act Helps Military, Families

 Spouses and family members of active duty military personnel - members of the Air Force, Army, Marines, Navy, and Coast Guard - as well as reservists and National Guard personnel called to active duty, are covered by the federal Soldiers and Sailors Civil Relief Act. The Act, which also covers some members of the Public Health Service detailed to the armed forces on active duty, protects those personnel from a variety of financial and legal problems at home. The Act covers just about every basic issue that military families can face, including protecting them from eviction, foreclosure, and lawsuits It also covers taxes, guaranteed  job reinstatement, and more.

   To find out more, contact the Judge Advocate General's office for your military unit, or visit www.military.com and enter "SSCRA" in the search engine.

Spammers Face Increased Penalties As Consumers Fight Back

  Anyone with an e-mail account can tell you that the amount of unsolicited, junk e-mail known as spam is increasing just about every day. Recent studies suggest that spam now makes up about 40 percent of all e-mail received, with the number of spam e-mails doubling in just the past six months. in just the past few months, America Online customers filed 8 million complaints about spam clogging their mailboxes.

  Although there are already laws against spam in 29 states, for the most part spammers operate without fear of prosecution, since tracking them down and filing charges against them is a difficult and expensive task. State prosecutors with limited resources haven't considered the problem serious enough to pursue very aggressively.  They've left it up to Internet Service Providers like AOL and Yahoo! to bring civil suits against e-mail marketers spamming their customers. That's often not easy, since spammers have a whole bag of tricks to hide their tracks, including using phony e-mail return addresses.

  But now state and federal lawmakers are proposing tough new laws against spammers. A bill proposed by U.S. Senator Charles Schumer of New York would impose federal criminal and civil penalties on spammers who fail to use mandatory subject line identification ("ADV" in the subject line), and would require the use of legitimate return addresses. The bill would also prohibit the use of automated programs that harvest e-mail addresses off the Internet.

  A similar plan has been proposed by Montana Senator Conrad Burns and Oregon Senator Ron Wyden, but with stronger enforcement provisions than the Schumer bill contains.

  If you're as sick of spam as we are, you should contact your Congressional representatives to let them know that you support efforts to reduce spam in your e-mailbox. Visit www.firstgov.com for information about how to get in touch with your Senator or House Member about this and other issues.

Zero Percent Financing May Not Be Your Best Deal

With so many auto manufacturers now offering zero percent financing when you buy a new car, truck, or SUV, you may think that taking advantage of one of these offers is bound to save you money, right?

Well, maybe not. In some cases, these loans are for terms that may be shorter than you want. And unless your credit record is spotless, you may not be able to get the advertised rate at all.

To decide if zero percent financing is the right deal for you, you also need to factor in any rebate offers you might lose. Take a look at the following example:

Suppose you want to purchase a car priced at $25,000. Your trade in is worth $4,000. With zero percent financing, you'll pay around $583.33 per month on a three-year loan.

But suppose the manufacturer offers the option of a $3,000 rebate instead of the zero percent financing. With the same trade-in value ($4,000) and the rebate, you'll have $18,000 left to finance. With a bank or credit union loan at 5.45% , you'll end up paying around $543.11 monthly over 36 months. That adds up to a savings of $1,448 over the life of the loan. And while the 36 month term may be the longest you can get from the dealer, you could probably get a longer term from a bank or credit union. In fact, even if you stretched the loan out to 60 months, at 5.45% you'd still end up saving around $395 over the dealer's zero percent offer.

The moral: Be sure to do a little homework and explore all your financing options before jumping into a loan that may not be as attractive as it sounds.

Spring Brings Outbreak of Home Improvement Scams

Spring is here, and that means the home improvement rip-off artists are busy again, trying to separate homeowners from their hard earned money. If you live in an area where the winter's been especially hard, or where the springtime weather causes roof or fence damage, chances are you're going to be approached by one or more of these scam artists. Older homeowners are also a special target of these cheats, so if you've got elderly parents who own a home, you'll want to pass this information along to them as well. Here are some clues that you may have been targeted by a home improvement swindler:

 -- A repair crew shows up shortly after a spell of bad weather, such as heavy rain, hailstorms or a tornado, offering to make repairs or provide cleanup services at a "bargain" price. Of course, because the price is so low, the crew needs to get at least part of its payment upfront, and no, they don't take credit cards. Reliable local companies don't ask for advance payment, and most take one or more credit cards, which give you some extra protection in the event of a dispute. Be extra cautious about workers driving trucks with temporary or out of state license plates, and never let these guys in your house. Many homeowners find themselves missing jewelry, cash, and other valuables after a couple of these con men talk their way inside to use the bathroom or make a telephone call.

 -- A friendly fellow shows up, claiming that he's the foreman of a crew working on a driveway, roof or other repair for "one of your neighbors" down the street. It seems he's got materials left over from that job, and he'd be happy to give you a discount on repairs "if you agree to have us do it today." Chances are you'll get a thin coat of black tar on your driveway  instead of the asphalt he promised, or a few mismatched, second-quality shingles instead of the name brand product he offered to install.

 -- You answer the door to find someone claiming to work for the local utility company and insisting that he must inspect your furnace, water heater, or plumbing. Let him in, and you can be sure he'll find some "dangerous condition" that needs to be taken care of immediately. Lucky you, he just happens to have a friend who can do the work for a "discount" price. In reality, utility companies rarely send out inspectors unless you ask them to send someone, and unless there's a neighborhood wide emergency, almost never send them unannounced. Never let any uninvited worker into your house until you've examined his identification and verified his employment and the reason for his visit with the utility company.

Tip: Don't call any number the worker provides for verification purposes. It's likely to be the telephone number of one of his cronies helping out with the scam. Instead, call the main number of the utility company.

By exercising a little caution, working with established local companies, and using your credit card to pay for repairs your insurance won't cover, you're much less likely to fall prey to a home improvement swindler.