Posts Tagged ‘legislation’

FTC Announces Further Extension On ‘Red Flags’ Rule Implementation To November 1st

August 31st, 2010

To support small businesses and other entities, the Federal Trade Commission faculty will intensify its efforts to educate them about compliance with the “Red Flags” Rule and ease compliance by provisioning additional resources and guidance to clarify whether businesses are covered by the Rule and what they must do to comply. To give creditors and financial institutions additional time to review this guidance and develop and implement written Identity Theft Prevention Programs, the FTC will further delay enforcement of the Rule until November 1, 2009.

The Red Flags Rule is an anti-fraud regulation, necessitating creditors and financial institutions with covered accounts to implement programs to identify, detect, and respond to the warning signs, or red flags, that could signify identity theft. FACTAs definition of creditor includes any being that regularly extends or renews credit ” or arranges for others to do so ” and includes all entities that systematically permit deferred payments for goods or services.

The FTCs Red Flags Web site, www.ftc.gov/redflagsrule, offers resources to assist entities determine if they are covered and, if they are, how to comply with the Rule. It includes an online compliance template that enables companies to design their own Identity Theft Prevention Program through an easy-to-do form, as well as articles directed to specific businesses and industries, guidance manuals, and Frequently Asked Questions to help companies navigate the Rule.

Although many covered entities have already matured and implemented appropriate, risk-based programs, some ” particularly small businesses and entities with a low risk of identity theft ” remain uncertain about their obligations. Among other things, Commission staff will create a special link for small and low-risk entities on the Red Flags Rule Web site with materials that provide guidance and direction regarding the Rule.

The Commission has already placed FAQs that address how the FTC intends to enforce the Rule and other topics ” www.ftc.gov/bcp/edu/microsites/redflagsrule/faqs.shtm. The enforcement FAQ states that Commission staff would be unlikely to recommend bringing a law enforcement action if entities know their customers or clients individually, or if they perform services in or around their customers homes, or if they operate in sectors where identity theft is rare and they have not themselves been the target of identity theft.

Todays announcement that the Commission will delay enforcement of the Rule until November 1, 2009, does not affect other federal agencies enforcement of the original November 1, 2008, compliance deadline for institutions subject to their oversight.

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Tax Laws That Can Help During Tax Season

August 25th, 2010

In today’s economic hardship the changes seem giant. Just last year a number of tax laws were made to bail us out of dire situations. These are a few new tax laws that you should know about.

The first concerns new car sales and tax deductions. If you purchased a new vehicle, including a car, motorcycle, light truck or motor home, on or after February 16th 2009 and by December 31st 2009, any excise or sales tax paid may be considered a deduction.

In 2010 as well as 2009 the American Opportunity Credit replaces the Hope Education credit. This new credit is worth $2,500 per student, this is based off the first $4,000 of qualifying educational expenses.

Homeowners that make improvements to their existing homes that are energy efficient can claim a credit of 30 percent of the cost of all of the upgrades, up to a maximum credit of $1,500. This covers things such as adding insulation, energy efficient exterior windows and energy efficient air conditioning and heating systems.

Last year was harsh for a good deal of workers, and layoffs hit record levels. However, unemployment compensation is considered taxable income. But now, the first $2,400 in benefits is excluded from income.

Because of the Bicycle Commuter Act, cyclists will receive reimbursement of workplace transportation costs into a tax favored account and bikers can utilize the cash to put towards purchase of a bicycle, helmet, bike lock, bike parking fees and general bike maintenance.

Also, if you pay your income tax by credit or debit card, you can deduct the convenience fee that will be charged for the transaction. The card fee, as well as any other IRS approved miscellaneous deductions must exceed 2 percent of your adjusted gross income before they will count. Despite the fact that this measure limits the value of this break for many, filers with substantial expenses to claim should be sure to add the card fee.

I work for a national collection agency. Use collection letters for judgment enforcement. This article, Tax Laws That Can Help During Tax Season is released under a creative commons attribution licence.


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Texas Toll Booths Cater To Consumers

August 23rd, 2010

In Dallas, the North Texas Tollway Authority, an entity responsible for collecting tolls, has been scrutinized for months over its toll collecting policy. This policy charges drivers who do not pay up at the toll booth fines of hundreds, or even thousands, of dollars. Because the NTTA has been under fire in the public eye, it announced today two steps it says that will target improving customer satisfaction.

The first measure that the NTTA took was to allow all drivers to use the electronic toll collection lanes, including those who do not have one. They are able to do this without being punished with a twenty five dollar fine.

Before this endeavor, drivers who didn’t have toll tags that used the electronic lanes on the Dallas North Tollway were looked at as violators and would subsequently be fined twenty five dollars for each time they passed through an electronic toll booth, rather than a cash booth.

But after February eighth, the drivers who don’t have a toll tag who use the electronic lanes will be given the chance to pay off the tolls before being hit with the additional twenty five dollar fine. But these toll charges will continue to be calculated at the cash rate, which is twice as high as the rates paid by toll tag consumers.

Unfortunately, the change won’t affect the NTTA’s collections policy in any other way and it will not stop consumers without toll tags who do not pay toll bills mailed to their homes from being charged twenty five dollars for every unpaid toll. This is a policy that can turn a week’s worth of tolls into a thousand dollar bill.

The NTTA’s second measure was to appoint an internal auditor as a mediator of some sort, which will be on hand to help frustrated customers who have first complained their way through NTTA customer service hierarchy without a result that they deemed to be satisfactory. The auditor will then review the account and determine if customer service and billing reps have followed their own rules.

Mallory Megan works for Rapid Recovery Solution, a credit collection agency. Looking for credit card services or skip tracing? Contact us today. Check here for free reprint licence: Texas Toll Booths Cater To Consumers.


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Red Flag Rules Retailers Must Obey

August 22nd, 2010

Starting on November First of 2009, financial institutions and other creditors were mandated to comply with the Red Flag provisions of the Fair and Accurate Credit Transactions Act of 2003. The purpose of the Red Flag rules is to alleviate and prevent identity theft. Identity theft could be defined as any fraud involving people getting particular benefits by pretending to be someone else.

Broad in scope, the Red Flag rules define financial institutions as any organization engaged in insurance, banking, or similar activities, and a number of the definitions come with leeway to expand compliance demands. Any consumer account involving multiple payments or transactions that is offered to organizations can be subject to the rules.

In a nutshell, the rules state that any financial institution or creditor that may be subject to a reasonable and predictable risk of identity theft must create or develop an identity theft prevention program in order to remain in compliance. These programs should include identification of any activity that might be considered identity theft. They should pursue red flags that have already been identified, and should take action to prevent and mitigate theft. Finally, period review and updating of red flags are necessary to comply with the Red Flag provisions.

Additionally, the Red Flag provisions say that an institution’s identity theft prevention program should be managed and written by senior company management. Training and overseeing this service are required.

Identity theft is an expensive and disparaging issue; business and consumer losses came to about $56.6 billion in 2005 alone. But when one considers how harmful identity theft can be to a business, not complying with these regulations can be even more expensive and harmful. Potential losses, costly investigations, regulatory fines and potential lawsuits are all negative consequences of non-compliance. It seems as though their best bet is to follow the rules.

Rapid Recovery Solution is a third party debt collection company. lawyer based and equipped with skiptracing tools. Check here for free reprint licence: Red Flag Rules Retailers Must Obey.


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Pay To Stay” Ohio Prison Program A Miserable Failure

August 20th, 2010

In the counties of Butler and Hamilton, Ohio, the sheriff’s departments attempted to collect money from inmates to pay for the cost of their stay at jail. An all around failure, the program stopped a few weeks ago after it cost taxpayers $69,000 to settle a federal lawsuit. The state auditor halted the program because it wasn’t generating any income.

Despite this fact, these counties are currently talking about re-starting the program through collecting booking fees. Financial analysts remain skeptical. Even in the best case scenarios, the policy may not be lucrative at all as many prisoners that end up in jail have no money.

Lawsuits were the issue that stopped the program in the first place. An Ohio prison nearby originally began charging booking fees at a hundred dollars and an additional $67.77 daily charge for every day held. But federal lawsuits against Hamilton and Butler counties started the end to “pay to stay” programs. The major issue at hand was determining who had to pay the fee.

Ohio law permits a county to charge prisoners for room and board, medical and dental treatment, property damage and a onetime booking fee. Inmates should be billed at the end of their stay, but the key provision of the law is that only convicted inmates could be charged. The District Judge stated that it was unconstitutional to take these fines from inmates who weren’t convicted yet.

Hamilton County was sued in 2000 and was told to refund about one million dollars in prison fees and to pay $150,000 for an educational program for prisoners. In 2001, Butler County was sued as well. By 2003, the grand total of money that was returned to settle litigation was $63,846 to 2,431 inmates. In addition, the county was ordered to pay a $5,000 donation to the Legal aid Society after officials did not add the agreed upon ten percent interest on refund checks.

Although the plan to charge pay to stay fees to prisoners has failed, and has cost taxpayers more money than the program is worth, the Sheriff’s department still looks to extract more money from the jail. Charging booking fees, and taking in out of state prisoners are current considerations.

Mallory Megan works for Rapid Recovery Solution, a medical debt collection agency. Having trouble collecting money from small claims? collection agencies can help.


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Irish Gang Branches Out Into Bill Collection

August 16th, 2010

And you thought your bill collections agency was bad enough. It has been recently disclosed that a gang boss in Ireland has made a new career move – debt collection. This criminal genius has been linked to twelve murders; a threat even more serious than a collections letter.

Usually, legitimate creditors who aren’t criminals will hire out third party bill collectors to retrieve debts. Collection agencies work on commission, where they receive a portion of the amount of money that they collect. Frequently collection companies will purchase debt from the creditors so that they can collect the whole sum of money owed.

The Irish thugs seemed to have borrowed inspiration from this practice, but the similarities end there. The boss of the notorious Irish gang has established his own collection agency, purchasing debt and using his reputation to bully his way into gathering the money owed. The unfortunate debtors are drug users who are unable to repay dealers.

Reputable collection agencies will usually start with a gentle “reminder letter.” If the debtor is antagonistic or evasive, the letters will become more serious. Telephone calls will be used as well as a reminder to those who owe money to pay up. If these ploys fail, the company has the right to report a debt to credit bureaus, or file a lawsuit.

Conversely, the Irish gangland “collection company” will use its authority as a group of cold-blooded murderers and criminals to bully debtors into paying back drug money. Fortunately, the head of this operation has been arrested, and the Justice Minister of Ireland has sworn to do everything in his power to ensure that the accused will be brought to justice.

So next time you get a phone call from a bill collection agency, try to keep things in perspective. And if you are ever in Ireland, it is probably unwise to take out a loan with a ruthless gang.

Experiencing difficulties collecting credit? Collections can aid you. This article, Irish Gang Branches Out Into Bill Collection has free reprint rights.


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Wyoming City Tries To Collect

August 16th, 2010

In the city of Cody, Wyoming, 219 utility accounts were sent for collection. Only four of the bills belonged to property owners. Some are suggesting that the city council consider holding property owners responsible for utility costs that their renters left unpaid. A policy like that could have added $180,000 to the city budget during the past five years, and furthermore, other utility users are subsidizing those that don’t pay their bills.

Landlords are offering fast and obvious objection, asking the city council why it should be their responsibility to pay for a bill that someone else racked up. Another plan has been proposed though, one that would require a deposit from every person opening up a utility account.

This change in policy would involve a number of modifications like a rule that a property owner co-sign for a renter’s account. Tenants would be billed under their own account but have alandlord account open for everu property. Unpaid bills would be transferred to the landlord’s account if the tenant does not pay.

Deposit requirements would go from $150 to $200, and would be necessary for all accounts, regardless of their past credit history. Property owners would be notified of delinquencies, and they would be encouraged to get in touch with the city to determine if the bill got paid before returning rental deposits. All property owners would have to keep utilities in their names.

Proponents of the plan say that it is not out of line with what other cities are doing, and it is a simpler and more cost efficient way to collect money. Collection agencies receive about one third of what they collect in the city, and 60 percent of bills that go to collection remain unpaid.

Whatever decision they arrive to, it should be rapid: city officials are noticing a trend toward fewer people making deposits and more accounts being sent to collection.

Mallory Megan works for Rapid Recovery solution, a commercial collection agency. Our goal is to collect as much of your money as possible. Check here for free reprint licence: Wyoming City Tries To Collect.


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So Called Debt Collector Scams Seventeen Victims Out Of Money

August 16th, 2010

A bill collector in Williamsville recently pleaded guilty to fooling a local bank in a fraud that caused his nearly two dozen victims to lose $440,000. Noah Schapiro, the man who ran the fraud was informed by the State Supreme Court that he will most likely face a prison term of six to twelve years and will that he will be forced to sign confessions of judgment for his whole scam to seventeen debt investors and the Citizens Bank.

Talking in a soft tone that caused the judge to tell him periodically to speak up, Schapiro pleaded guilty to grand larceny and scheme to defraud charges. Pending his March 22 sentencing, he was remanded.

Financial Crimes Prosecutor, Candace K. Vogel and the State Police Investigator Therese Schroeder informed the judge that the mastermind of the ploy, a former stock broker stole $388,168 from his victims ranging from March 2008 through September 2009. The victims, of course, had been promised big profits in his debt collections funds.

According to Vogel and Schroeder, Schapiro was convicted in 1998 of investment fraud and spent his investment funds either on himself or to pay off debts from the past from former investors he had taken for money before. Vogel told the judge that the bill collection scam was just “one big Ponzi scheme.”

She alleged that Schapiro pulled off a check “kiting” scam to defraud the bank between May twentieth, 2009, and June eleventh, 2008 by filling out checks to other business on a bank account from Citizens Bank that he knew did not have the funds to cover those checks.

Businesses that are looking to hire out potential third party bill collections agencies are able to prevent this fraud from occuring by taking the following precautions. Know the company you are working with, acquire the contact information, address, and name of the person in charge of accounts receivable. Ironically, pulling a credit report on this person can be of assistance as well.

Mallory Megan works for a credit collection agency. Kick off your recovery services with a collection letter. Also published at So Called Debt Collector Scams Seventeen Victims Out Of Money.


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Retail Fraud Is On The Rise

August 15th, 2010

According to a report released by LexisNexis, United States merchants are taking $191 billion in fraud losses every year. In fact, the average merchant will be subjected to almost ten times the identity theft of financial institutions.

The retail industry has been hit with $100 billion in losses as the result of identity theft; that number is pumped up to $191 billion when you factor in lost and stolen merchandise. Stores lost more than twenty times the consumer fraud losses which came to about $4.8 billion in 2008.

“The total impact of retail fraud is versatile and extensive as this crime targets multiple victims,” said Jacob D. Almeida, Vice President of Risk Solutions and expert in corporate markets. “We are seeing huge increases in identity fraud overall as well as increases in the more typical fraud categories like charging back. With the recession and increasing sophistication in criminal fraud methods, it is imperative that merchants and financial institutions work together to cut back on fraud.”

Here’s the skinny on the various types of fraud affecting merchants: identity fraud or fraudulent transactions were the crux of the cost of fraud, representing 52 percent of total fraud losses. Also, it was some merchant groups in particular that suffered the damage. Large eCommerce retailers lost 40%, an upsurge from last year.

Merchants specializing in telecommunications, online gaming and social networking sites were hit the hardest, reporting 64 percent to 67 percent of their total annual fraud loss as a result of identity fraud. Digital goods merchants attributed 54% of their fraud loss to unauthorized purchases. Furthermore, one in five retailers reported an increase in unauthorized transactions associated with identity fraud.

Credit card crimes continue to increase at an alarming rate, but it has been alternative payment systems such as online and mobile payments that have represented a still esoteric source of losses for major stores. The last kind of fraud is known as “friendly fraud,” where a customer places an online purchase with their credit card, then issues a chargeback after getting the purchase. This accounted for more than one third of overall fraud for online merchants.

Mallory Megan works for Rapid Recovery Solution, a nationwide collection company. Looking for subrogation? Hire debt collectors. Also published at Retail Fraud Is On The Rise.


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Pay Up Or Ship Out: Town Demands Debt Recovery

February 20th, 2010

In the village of Stamford, Connecticut, the town is threatening to sue a car dealership, Carriage House in order to get it to pay $7,450 in fines for forty five false burglar alarms over six years. There was a total of thirty one property owners that got notices on January the fifteenth that were demanding payment for false alarm fines. They were told to pay the money within thirty days or face legal action.

The town is owed $74,375 in fines and this is the first time it has taken such a firm stance on collecting debt. Out of the thirty one people that got a notice, thirteen have resolved their debts.

Residences and businesses are permitted to have one false alarm a year without being penalized with a fine. The system goes like this: starting at fifty dollars for a second false alarm, one hundred for the third, one hundred and fifty for the fourth and two hundred dollars for each false alarm after, businesses are fined accordingly.

The town does not use a collection agency, or charge interest on unpaid fines, which might be why they are having trouble cutting down on the problem with false alarms. The owner of the car dealership fingered a faulty alarm system as the source of the problem and alleged that he would get to the bottom of the problem within a week, but this hasn’t happened.

The owner plans to schedule a March hearing before the appeals board in order to fight the fines. Claiming that it was the fault of the alarm company, he stated that he is trying to get the alarm company to pay for the debt. However, he was not able to identify the alarm company, stating that it had changed ownership so he was not clear on the name.

In all fairness, the town will discount false alarms that have happened that may have been the fault of the alarm company. But for now, the car dealership remains in arrears.

I work for a third party debt agency. Find out more about debt companies online.

categories: debt,delinquency,personal finance,loan,credit,legislation,mortgage


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