Money

1. Be wary of “phishing” emails.  
   "Phishing" (pronounced fishing) is a scheme used to lure consumers into providing personal and financial information online.  Avoid opening any questionable emails requesting or including your username or password, particularly if the email urges you to provide information to restore a deactivated account, verify a financial statement, or obtain some type of reward.
   
   Typical phishing requests are not personalized.  Unlike your bank or credit card company that may include your name or an account identifier, phishing requests typically keep the salutation and information about you generic.  If you have opened an email that seems suspicious or is from an unknown source, do not open any attachments or links it may contain, and delete the email. 
2. Know who you are dealing with. 
   Become familiar with the organizations you interact with regularly by bookmarking frequently used websites, recognizing company logos, and being aware of other unique identifiers.   Be suspicious of numerical web addresses; phony websites and emails may try to fool you by looking official.  A website that uses a numerical web address or includes an "@" sign within the address could be an indicator that the website is fraudulent.  Typically, a company's Web address includes a portion of the company’s name followed by .com, .org, .edu or .net.  
3. Keep your personal information close. 
   Only provide personal information, such as your credit card or Social Security number, to organizations you know and trust.  You should never include sensitive information in an email or on any website you have not confirmed as legitimate and secure.  
4. Pay attention to security warnings. 
   Avoid websites or emails that your computer system alerts you as being potentially unsecure.  Your web browser may alert you that the website you are attempting to visit is unsafe, or  your email program may flag a message as suspicious.  Do not interact with websites or emails you cannot verify as trustworthy. 
5. Protect your passwords. 
   Memorize your passwords.  Do not write them down or share them with anyone.  Change your passwords regularly and use a combination of letters, numbers, and special characters, such as @, %, &, and #.
6. Keep your computer’s operating system up to date. 
   If your computer is more than five years old, its operating system (e.g. Windows 7 or Mac 10.6) may not offer the same level of protection as a newer system.  The manufacturer of the operating system may provide frequent software updates to help make your computer more secure.  For more information, visit:
   • Microsoft® 
   • Apple Computer® 
7. Use a current Web browser. 
   The most recent Web browsers have the latest security technology that helps to protect your online information.  Some websites are using new technology that is not compatible with older Web browsers.
8. Install a personal firewall. 
   Though most office networks include firewall protection, your home computer may benefit from this added level of security.  Check to see if your operating system already includes a firewall prior to purchasing a separate one.
9. Install, run, and keep anti-virus software updated. 
   Commercially available virus protection software helps reduce the risk of contracting computer viruses that can compromise your computer’s security.  These programs offer regular updates to safeguard your system.
10. Avoid downloading programs from unknown sources. 
    Downloads from unfamiliar sources may contain hidden programs or viruses that can compromise your computer's security.
11. Disconnect from the Internet when not in use. 
    Dedicated services such as DSL or high-speed cable provide a constant connection between your computer and the Internet.  Even if you have a firewall installed, as an additional step to help protect yourself, disconnect from the Internet when not in use to avoid unwanted access to your computer.

 

Here is a list of actions you can take if your personal identity is compromised:

• Monitor your financial accounts closely. 
  Most credit card companies, credit unions, and banks allow you to monitor your accounts online. You can often set up e-mail or cell phone alerts to notify you of any account activity.
• Report fraudulent charges immediately. 
  Even small charges can indicate big problems. Crooks often make small charges to test if a credit card is valid.  They may make small charges on many different credit and debit cards to avoid attracting attention.
• Place a fraud alert or credit freeze on your credit reports. 
  If you notice fraudulent activity, contact one of the three major credit bureaus to place a fraud alert or credit freeze on your credit reports; whichever one you contact is required to contact the others on your behalf. With a fraud alert, businesses will be able to review your credit report but will be alerted to verify your identity before issuing you credit. With a credit freeze, businesses will not be able to access your credit file unless you provide a PIN number. 
  • Equifax
    To report fraud, call: 800-525-6285
    Write: PO Box 740241, Atlanta, GA 30374-0241
    Hearing impaired, call: 800-255-0056 and ask the operator to call the Auto Disclosure Line at 800-685-1111 to request a copy of your report.
  • Experian (formerly TRW)
    To report fraud, call: 1-888-EXPERIAN (397-3742)
    Write: PO Box 9530, Allen, TX 75013
    TDD: 800-972-0322
  • Trans Union
    To report fraud, call: 1-800-680-7289
    Write: Fraud Victim Assistance Division, PO Box 6790, Fullerton, CA 92634
    TDD: 1-877-553-7803
  • Social Security Administration (fraud line): 1-800-269-0271
• Know your rights for credit card loss or fraudulent charges. 
  Under the Fair Credit Billing Act, your maximum liability for unauthorized use of your credit card is $50. If the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.
• File a police report.
  Without one, many companies will refuse to take your case seriously. Some companies may also require you to file the identity theft affidavit available from the Federal Trade Commission.
• Start a file. 
  Keep notes of every phone conversation, copies of correspondence and a record of your credit reports. Write down each person's name, title, and phone number in case you need to re-contact them or refer to them in future correspondence.
• Close compromised accounts and dispute fraudulent charges in writing.
  Keep in mind that closing accounts may hurt your credit scores, however, so you may want to close only those accounts that have been involved in the theft.
• Review your credit reports.
  When you place an extended fraud alert on your credit report, you're entitled to 2 free credit reports within 12 months from each of the 3 nationwide consumer credit reporting companies. You may also want to subscribe to a credit monitoring service so you'll be notified quickly of any new activity.
• File your complaint with the FTC. 
  The FTC maintains a database of identity theft cases used by law enforcement agencies for investigations. Contact the FTC Identity Theft Hotline by phone at 1-877-ID-THEFT (438-4338); TDD: 1-202-326-2502 or by mail: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580 or online.
• Get help.
  Check with your insurance companies and employer to learn whether your benefits include identity theft resolution services or expense reimbursement.

Check your credit report annually and possibly use a credit monitoring service to help protect your identity. Be sure to watch out for:

• Your credit report lists aliases (variations on the spelling of your name), addresses at which you have never lived, accounts you have never held, and/or inquiries from companies to which you have not applied for credit, insurance, or a job.
• You don't receive your credit card or bank account statement. A thief may have changed your address in order to use your bank accounts without raising suspicion.
• You receive bills for accounts you didn't open, such as a cell phone or credit card.
• You receive medical bills or health insurance benefit statements for medical procedures you've never had.
• A debt collector calls about a bill that doesn't belong to you.
• Your annual Social Security statement lists income you didn't earn.
• Someone calls to "confirm" information about one of your accounts or warn you about fraud, and asks for personal information or account details, such as your Personal Identification Number (PIN) or the three-digit security code on the back of your credit card.

You have rights, and it is important to understand how debt collection laws can protect you against unfair collection tactics. The Fair Debt Collection Practices Act (FDCPA), a federal debt collection law, in addition to state statutes provides the following consumer protection:   

1. Harassment by debt collectors is against the law. 
   Collectors cannot threaten violence; use profanity, or racial or ethnic slurs when they talk with you; call you repeatedly to annoy you; or threaten to take legal action they can't legally take. Whenever you speak with a debt collector, take notes of your discussion, and keep them in a file with copies of any letters you receive from them.
2. You can stop debt collectors from contacting you at work. 
   If you tell a debt collector that your employer does not allow you to take collection calls at work, they must stop contacting you there immediately.  
3. Your debt is a private matter. 
   Other than a cosigner, your spouse, or your attorney--debt collectors cannot discuss your debt with third parties. That means they cannot tell your neighbors or coworkers about your debt. They can attempt to locate you by contacting others (without disclosing they are collecting a debt); however, once they've found you they must stop contacting the other individuals.
4. States have their own protection laws. 
   In addition to the federal law, states have their own laws related to debts and debt collection. State debt collection laws put a time limit on collecting debts. Each state has a "statute of limitations" that essentially determines how long a debt collector can sue to collect. This time period is usually between 4 and 6 years from the time you stop paying on the debt. 

  

What is a Credit Report?

If you have ever opened a credit card account, financed a car or borrowed money from a bank, it’s tracked in a credit report, a detailed file about your personal credit history. Credit reports record your loans, credit cards, payments, outstanding debts, and other financial obligations.

The information in your credit report is supplied by companies that have given you credit or loaned you money. These creditors (such as banks, credit card companies, and department stores) provide regular updates about your credit accounts and loans to credit reporting bureaus. Credit reporting bureaus keep the information in a database and then provide it to lenders when you apply for a new credit card or loan.

Whenever you apply for a loan or credit, lenders use your credit report to decide whether they can trust you to pay back the money you have borrowed.

Your credit report contains key information  about you and your finances, which include:

• Current and previous addresses and employers, social security number, and date of birth
• Public record information including liens, judgments, and bankruptcy filings
• Outstanding debts that have been sent to a collection agency
• A list of your credit accounts and loans including:
  • Current and past payment information (including late payments)
  • Current balances on your credit cards
  • Current amounts of outstanding loans
• Overdue child support payments
• Credit requests made by you or a company

What do Lenders Look For?

There are several factors in your credit report that lenders may consider when deciding whether to give you a loan or credit account. Lenders review your credit reports to decide whether or not to lend you money based, in part, on the history they see on your credit report. And, they use your credit score to determine how much of a risk you are — typically, a higher credit score indicates less credit risk for the lender. Lenders look at your:

• Payment track record
• Current debts
• Credit history
• New accounts
• Types of credit

How Does the FICO Credit Score Affect You?

FICO scores range on a scale from 300 to 850 — the higher the better. Generally speaking, a credit score that falls below 600 is considered fair to poor and a score of 720 or higher is considered very good to excellent.

Your credit score can affect how much money a lender will lend you, and at what interest rate. Even a 50-point difference in your credit score can help you get a better interest rate on a loan, which can save you thousands of dollars over the life of the loan.

According to Fair Issac Corporation’s website, your credit score is calculated using information about:

• Your history of on-time payments (35%)
• The amount of money you owe (30%)
• The length of your credit history (10%)
• The number of recently opened accounts and inquiries to your credit report (10%)
• The types of credit you use (10%)

Request Your Credit Report and Score

U.S. law requires the three major credit bureaus (Equifax, Experian, and TransUnion) to provide a free credit report once a year, at your request.  

You can access your credit report from the three credit bureaus by requesting the report online at www.AnnualCreditReport.com, by calling 877-322-8228, or by mailing an Annual Credit Report Request form to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

You are not obligated to purchase or sign up for anything to get your free report. The free credit reports do NOT include your credit score.  You will be offered the chance to purchase your credit score as you order each credit report. 

 You should review the report thoroughly to make sure the information is accurate, and watch out for: 

• Incorrect account balances. If you discharged (wiped out) a debt in bankruptcy, for example, that account should list a zero balance.
• Wrong dates for negative credit items. Make sure the dates for negative credit items (such as bankruptcy, foreclosure, accounts charged off as a bad debt) are correct.  Otherwise, that negative information may be reported longer than allowed by law.
• Unpaid tax liens. If your credit report lists a tax lien that has not been paid, make sure you resolve it with the IRS, since unresolved tax liens can be reported indefinitely. If you can't pay the full balance, talk with a tax professional about settling the debt for less through an Offer in Compromise.
• Duplicate collection accounts. If an account has been sent to collections, only two entries should appear. The first one will be the original account with the creditor, and will usually be listed as a "charge off," meaning the debt was not paid and written off as a bad debt. There may be a second listing from the collection agency that is trying to collect. If the debt was assigned to multiple collection agencies, however, only the most recent collection account should be listed. 
• Unpaid collection accounts. If your report lists collection accounts that you haven't paid, do your homework before you decide how to proceed. Collection accounts can only be reported for seven and half years from the date you first fell behind with the original creditor. That's true whether you pay them or not. If you don't have the money to pay all your accounts in full, collection agencies may be willing to accept a smaller lump sum payment to resolve the debt.  

Credit scores range from 300 to 850 and a score over 700 is generally considered to be "good" by most creditors. Unfortunately, reaching that number is not quite as simple as paying bills on time and as agreed. While payment history accounts for 30% of your FICO score, there are several other factors that contribute. Here are some common credit mistakes to avoid:

• Not checking your credit report regularly. 
  Request a free copy of your credit report each year from AnnualCreditReport.com. Familiarize yourself with your credit history and review it for accuracy. Knowing where you stand will help give you the tools needed to increase your score. 
• Having too many credit inquiries. 
  Generally, six or more inquiries within a six-month period of time will scare a lender. Applying for loans on the Internet and transferring balances on credit cards can also have negative consequences. However, most credit scores are not affected by multiple inquiries from auto and mortgage lenders within a short period of time. 
• Borrowing more money than you can easily afford to repay. 
  Your credit score is based in large part on how much money you have borrowed. A good rule of thumb is to borrow no more than 30 percent of your income (this includes mortgages, auto loans, credit cards, etc.)
• Staying out of debt.
  Having no credit history is nearly as bad as having poor credit history. From a creditor's perspective, if you have stayed out of debt your whole life, they have no way to judge how you would handle a loan. Maintaining several types of accounts shows that you are financially responsible. According to myFICO, your credit mix (credit cards, store charge cards, loans, etc.) accounts for 10% of your score. Keep in mind you do not have to carry balances on your credit cards to build good credit. It's perfectly fine to use them and pay the balance in full each month.
• Making late payments. 
  There are several negative consequences of making late payments and the "Universal Default" clause is one of them. Under this clause, a creditor may raise your interest rate if you are late on credit obligations.
• Closing old accounts. 
  It may seem wise to close old, unused accounts, but doing so could shorten the length of your credit history and harm your score. Credit history makes up a whopping 15% of your score. If you choose to keep old accounts open, be sure to keep tabs on them regularly to be certain they are not being used fraudulently.

The Simplest Way to Make a Will

The simplest way to ensure that your funds, property and personal effects will be distributed after your death according to your wishes is to prepare a will. A will is a legal document designating the transfer of your property and assets after you die. Usually, wills can be written by any person over the age of 18 who is mentally capable, commonly stated as "being of sound mind and memory." Your state may impose additional requirements.

Everyone Needs One

Although wills are simple to create, about half of all Americans die without one (or intestate). Without a will to indicate your wishes, the court steps in and distributes your property according to the laws of your state. Wills are not just for the rich; the amount of property you have is irrelevant. A will ensures that what assets you do have will be given to family members or other beneficiaries you designate. If you have no apparent heirs and die without a will, it's even possible the state may claim your estate.

Having a will is especially important if you have young children because it gives you the opportunity to designate a guardian for them in the event of your death. Without a will, the court will appoint a guardian for your children.

Union members and their families can use the Union Plus Legal Service with a 30% discount on legal fees to find a lawyer in their area.

Elements of a Will

Here are the basic elements generally included in a will:

• Your name and place of residence
• A brief description of your assets
• Names of spouse, children and other beneficiaries, such as charities or friends
• Alternate beneficiaries, in the event a beneficiary dies before you do
• Specific gifts, such as an auto or residence
• Establishment of trusts, if desired
• Cancellation of debts owed to you, if desired
• Name of an executor to manage the estate
• Name of a guardian for minor children
• Name of an alternative guardian, in the event y our first choice is unable or unwilling to act
• Your signature
• Witnesses' signatures
• Two of the most important items included in your will are naming a guardian for minor children and naming an executor.

Naming a Guardian

In most cases, a surviving parent assumes the role of sole guardian. However, it's important to name a guardian for minor children in your will in case neither you nor your spouse is able and willing to act.

The guardian you choose should be over 18 and willing to assume the responsibility. Talk to the person ahead of time about what you are asking. You can name a couple as co-guardians, but that may not be advisable. It's always possible the guardians may choose to go their separate ways at some later date, and, if so, a custody battle could ensue. If you do not name a guardian to care for your children, a judge will appoint one, and it may not be someone you would have chosen.

Naming an Executor

An executor is the person who oversees the distribution of your assets in accordance with your will. Most people choose their spouse, an adult child, a relative, a friend, a trust company or an attorney to fulfill this duty. You should expect your estate to pay an independent executor for this service.

If no executor is named in a will, a probate judge will appoint one. Probate refers to the legal procedure for the orderly distribution of property in a person's estate. The executor files the will in probate court, where a judge decides if the will is valid. If it is found to be valid, assets are distributed according to the will. If the will is found to be invalid, assets are distributed in accordance with state laws.

Responsibilities usually undertaken by an executor include:

• Paying valid creditors
• Paying taxes
• Notifying Social Security and other agencies and companies of the death
• Canceling credit cards, magazine subscriptions, etc.
• Distributing assets according to the will 

Preparing a Will

Start by organizing what you need: outline your objectives, inventory your assets, estimate your outstanding debts and prepare a list of family members and other beneficiaries. Use this information to carefully consider how you want to distribute your assets.

Ask yourself lots of questions:

• Is it important to pass my property to my heirs in the most tax-efficient manner?
• Do I need to establish a trust to provide for my spouse or other beneficiaries?
• How much money will my grandchild need for college?
• Do I need to provide for a child who has a disability?

Taking inventory of the assets may be the key to making a will. Assets should be mentioned in your will. Any items not specifically mentioned may be addressed in a catchall clause of your will called a residuary clause, which generally states, "I give the remainder of my estate to ..." Without this clause, items not specifically mentioned will be distributed in accordance with state law.

Outstanding debts usually will be paid by your estate before your beneficiaries receive their shares. You may want to clear up debts that you know will be a problem, or make specific provisions for payment of those debts in your will.

Remember to be specific and clear when naming beneficiaries. For example, state the person's full name as well as his or her relationship to you (child, cousin, friend, etc.) so your executor will know exactly who you mean. Clarity will also help to prevent challenges to your will.

States require that you sign the will in front of witnesses-the number of witnesses varies by state. A witness should not be a beneficiary under the will. Only one copy should be signed.

Updating a Will

You'll probably need to update your will several times during the course of your life. For example, a change in marital status, the birth of a child or a move to a new state should all prompt a review of your will. You can update your will by amending it by way of a codicil or by drawing up a new one. Generally, people choose to issue a new will that supersedes the old document. Be sure to sign the new will and have it witnessed, then destroy the old one.

Estate Taxes

The property included in your will may be subject to taxation. In planning your will, take into account the following:

• Federal estate taxes will generally be due if the net taxable estate is worth more than $1,000,000. This amount is scheduled to gradually increase from $1,000,000 in 2002 to $3,500,000 in 2009 so that it will eventually shield $3,500,000 in gift or estate transfers from tax per taxpayer. Estates in excess of the exempt amount can be taxed at a rate from 37% to 50% (the top percentage is scheduled to gradually decrease to 45% in 2009).
• Also, note that these estate tax changes are scheduled to be repealed in 2010. If not extended, the tax law will revert to the estate and gift tax provisions in affect 2001. Consult a tax or financial professional to determine a plan that is right for you and your family.
• State death or inheritance taxes
• Federal income taxes
• State income taxes
• You may be able to minimize your estate tax by establishing a trust or giving gifts during your lifetime. You can also cover the cost of estate taxes by purchasing a life insurance policy intended to pay taxes. Talk to your lawyer and life insurance agent to find out more about how this works.

 Where to Keep Your Will

Once your will is written, store it in a safe place that is accessible to others after your death. If you name a trust company as executor, it will hold your will in safekeeping. You can keep it in your safe deposit box, but be aware that some states will seal your safe deposit box upon your death, so this may not always be the safest place to store your will.

Make sure a close friend or relative knows where to find your will. If you had an attorney prepare your will, have him or her retain a copy with a note stating where the original can be found. 

A Living Will

A living will is not a part of your will. It is a separate document that lets your family members know what type of care you do or don't want to receive should you become terminally ill or permanently unconscious.

It becomes effective only when you cannot express your wishes yourself. If your state recognizes a power of attorney for health care, have one executed to authorize someone to act in accordance with your present intentions.

Discuss your wishes as reflected in your living will with family members, and be sure they have a signed copy.

Plan Ahead

The end of your life is something you probably don't want to dwell on, but thinking about what will happen to your loved ones and your assets and personal possessions is important. Making sure you've done all you can to make their lives easier will give you peace of mind. And once your will is drafted, you won't have to think about it again unless something significant in your life changes. 

Contact a Union Plus Legal Service Lawyer
and complete your will

Additional References

• The American Bar Association Guide to Will and Estates 
  Call 800-793-2665 to order and mention reference number 032-03.
• Publications from Nolo
  • Plan Your Estate 
  • Nolo's Will Book, or call 800-728-3555
• Federal Government Pamphlets
  • The quarterly Consumer Information Center Catalog lists more than 200 helpful federal publications. 
  • Consumer Information Catalog
    Pueblo, CO 81009
    888-8-PUEBLO (888-878-3256)

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