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Aug 2010

5 Things to Know About Debt Consolidation

Many Americans feel buried under the load of consumer debt.  Companies promising to lower monthly payments and relieve debt quickly are often too good to be true.  If you are considering debt consolidation, here are a few things to keep in mind:

The Truth About Secret Shopper Scams

Due to record high unemployment rates, scammers are taking advantage of individuals desperate for work.  With the promise of high pay and flexible hours with no experience necessary many individuals are falling for these scams.  Making matters more confusing is the fact that real secret shopper jobs do exist.  It is important to follow the warnings below to avoid the trap of secret shopper scams.

You are dealing with a scammer if….

Don’t be fooled by…

Are Extended Warranties Worth the Money?

If you have recently purchased an electronic device or appliance, you were likely offered an extended warranty at the checkout counter.  The market for these plans has increased in recent years as manufacturers have started limiting the length and terms of the warranties included in the initial purchase price.  In order to make the right decision, it is important to determine in advance of your purchase whether or not you need an extended warranty. 

Walking Away From a Mortgage

Walking away from a mortgage, also known as “Strategic Default”, is when a homeowner purposely defaults on his or her mortgage because the home has become worth less than the remaining balance of the loan.  With the recent drop in home prices, this practice has become more and more common.

Individuals who purchased their home during the peak of the housing bubble in 2005 are now finding themselves owing more than their house is worth.  Many of these homeowners are making the decision to default on their mortgage, even if they can afford to make the payments.  These individuals feel that it is not worth it to continue paying their loan.

Many companies have developed overnight to take advantage of this trend.  They promise to help homeowners deal with their lender during the loan default process.  These companies only make money when homeowners decide to walk away.  It is important to speak with an unbiased attorney about the risks associated with defaulting on a loan.

There are many risks associated with loan default.  A lender may file a lawsuit against a homeowner, demanding payment for the unpaid balance.  Walking away from your mortgage will also negatively impact your credit score.  It is important to have a qualified attorney review your loan documents before making the decision to walk away.  There may be other options available to provide relief from underwater mortgages.

June 2010

Dealing With An Auto Accident

Being involved in an automobile accident is a frightening experience.  If you have been involved in an accident, Framme Law Firm, PC wants to help you deal with all of the challenges involved in the aftermath.  Here are some things to keep in mind if you are involved in an accident:

• Safety First - If the accident is minor move safely to the side of the road.  If the accident is more severe, wait in your vehicle and turn on your flashers.
• Call the Police - Even if your accident seems minor, you will need to call the police to ensure a police report is filed.
• Exchange Information - Always exchange information with the driver of the other car.  You will want to get his or her name, phone number, address, license plate number and insurance information.
• Witnesses – Get the names and contact information of anyone who may have witnessed the accident.
• Retain all Documents – Documents may include the police report; the other driver’s information; any insurance documents you receive from your insurance carrier or the other driver’s insurance carrier; and any medical documents related to the accident.
• Speak to an Attorney – Do not make any admission of guilt and do not agree to any settlement offers with insurance providers until you speak with an attorney.

If you have been involved in an automobile accident, call Framme Law Firm today to speak with an attorney.

Understanding Car Insurance

Choosing the right car insurance policy can be a tricky proposition.  Many people don’t realize they have inadequate coverage until it is too late.  It is important to understand the different coverage options that are available.  Here we will look at a few of the most common types of coverage.

• Liability coverage is insurance that protects against injuries and damage you cause to other people and their property.
• Comprehensive policies cover damaged due to something that is out of your control and not the fault of another driver.  This may include fire, severe weather damage and accidents involving animals.  It is also known as “other-than-collision” coverage.
• Collision coverage insures your vehicle when it is damaged in an accident for which you are at fault.
• In the event that your vehicle is totaled in an accident, gap insurance covers the difference between what your car is worth and the amount you still owe on a loan or lease.

• Insurance companies often use the blue book value of your car to determine what they should pay for a totaled vehicle.  This may be less than what you paid for the vehicle or what you believe it is worth.
• Be aware of exactly what coverage your insurance provides.  Review your policy yearly to determine if you need to update your coverage.
• A deductible is the dollar amount the insured will have to pay out of pocket before the insurance carrier will step in.  Understand what kind of deductibles you will have to pay for any loss.

6 Tips for Avoiding Identity Theft

Identity theft is costly for businesses and consumers. It is important for consumers to understand what puts them at risk and how they can avoid falling victim to identity theft.

1. Check your credit report each year.  Follow up on any unknown entries or unauthorized accounts.
2. Review credit card bills carefully.  Make sure all of the charges are legitimate.
3. Do not carry your social security card, birth certificate or credit cards unless you need them. If your wallet is lost or stolen report the theft immediately to your bank and to credit bureaus.
4. Keep your personal information in a safe place and shred any documents you do not need to keep.
5. Destroy unneeded credit card and loan applications.  Pre-approved cards and applications are a staple of the junk mail industry.  Be sure you properly destroy these documents.
6. Use online account management and billing.  These tools often lead to early detection of fraud and lower monetary damages. It is a good idea to check your accounts online weekly and investigate any charges that are unfamiliar to you.
7. Use strong passwords for all online accounts.

The Better Business Bureau offers some valuable information on identity theft. Visit www.idsafety.net to learn more. If you are a victim of ID theft contact us and speak with an attorney today.

Facebook Safety

Facebook has quickly become the go-to social networking website.  In recent months Facebook has come under scrutiny over how it handles user’s personal information.  Facebook generates profit from the information it gathers from its users, information that users give up freely in order to use the website.  It is possible to protect your personal information and still use Facebook.  Here are some simple tips to help you get started.

April 2010

How Will Health Care Reform Affect You?

The Heath Care and Education Reconciliation Act of 2010 will have a profound effect on consumers and businesses in the United States.  It is extremely important to understand the facts about health care reform. 

Individuals will see the following changes implemented over the next 4 years:

• By 2014 most individuals will be required to obtain health insurance.  A penalty of $695 per person (up to $2,085 per family) or 2.5% of household income, whichever is greater, will be charged to those who do not purchase insurance.
• Consumers without access to coverage through their employers will be eligible to purchase insurance through a Health Benefit Exchange.  States will create Exchanges where the consumers can purchase insurance. 
• Exchanges will allow consumers to choose from multiple plans.  Plans offered through Exchanges will be required to meet certain standards.  These plans will vary based on out-of-pocket costs, premiums, catastrophic coverage and additional benefits.
• Premium and cost sharing subsidies will be provided to families with incomes between 133-400% of the poverty level ($29,327 to $88,200 for a family of 4).
• Health plans will no longer be allowed to charge higher premiums based on health status or gender.  In addition, they will not be allowed to deny coverage due to health status.
• Young adults will be allowed to stay on their parent’s policy until age 26.
• Increases in health plan premiums will be subject to review, and waiting periods for coverage will be limited to 90 days.
• Medicare will expand to cover individuals under 65 with modified adjusted gross incomes up to 133% of the federal poverty level ($14,404 for an individual and $29,327 for a family of four in 2009).

How Will Health Care Reform Affect Businesses?

In addition to health care reform’s effect on consumers, there will undoubtedly be an effect on businesses and the way that health insurance benefits are administered to employees.  Here are some of the ways health reform will affect businesses large and small:

• Existing employer based health insurance will remain the same with the following exceptions: they will require extended dependant benefits until age 26, eliminate lifetime coverage limits, prohibit revocation of coverage and eliminate waiting periods for coverage greater than 90 days.
• Employers who have more than 50 employees will be assessed a fee of $2,000 per full-time employee (in excess of 30 employees) if they do not offer coverage and have at least one employee who receives premium credit through an Exchange.
• Small businesses with fewer than 100 employees will be eligible to purchase insurance through their state’s Exchange.
• Employers offering coverage will be required to provide a voucher to employees with incomes below 400% of the poverty level if their share is between 8-9.8% of their income.  Employers offering a voucher will not be subject to the $2,000 per employee penalty.
• Large employers who offer coverage will be required to automatically enroll employees into the lowest cost plan available if the employee does not sign up for coverage or does not opt out of coverage.
• Until Exchanges are set up, businesses with 10 or fewer full-time employees earning less than $25,000 per year on average will be eligible for a tax credit of 35% of their insurance costs.

7 Tips For Navigating Your Auto Rental

As summer approaches more and more consumers will be renting vehicles for travel.  Here are some things to consider when renting:

1. Choose the right car.  Consider how many people you will be driving and how much luggage you will be taking (and what additional items you may be bringing back).  You want to choose a vehicle with the necessary amount of space.
2. Booking your rental.  Make sure to book your vehicle early, to ensure the type of car you need is available.
3. If you already own a car, your existing auto insurance policy may also cover your rental vehicle.  Check with your insurance company before you purchase additional coverage though the rental agency.
4. Beware of hidden costs.  The advertised rental fee will not usually be the only fee involved.  Consider the cost of gas, how much the rental agency will charge for any damages, the cost of insurance, taxes and so on.
5. Check the car for damages before leaving the rental agency.  Make sure all damages are noted on the rental form so you are not billed for any repairs.
6. Returning the vehicle.  Avoid additional fees by returning your rental to the agent on time.
7. Keep a copy of your rental agreement.  Read over your rental agreement to make sure you are aware of all charges or credits that may be involved, and monitor your bank account/credit card statement to make sure you are not overcharged, and that any credits due are credited.

If you are having an issue with a car rental agency, call Framme Law Firm, PC, and speak with an attorney today.

Email Scam Alert

Recently we have seen a new type of email scam where scammers pose as attorneys.  If you receive an email from someone claiming to be an attorney and you have not worked with them or their firm in the past, they may be initiating a scam.  Scammers may pose as an attorney or a law firm with the intent of obtaining the victim’s personal information or a check for settlement of a non-existent debt.

February 2010

Toyota Recall

You have likely heard a lot about Toyota’s recent automobile recalls.  Vehicles have been recalled for several reasons, including defective software, accelerator pedals and floor mats.  Some experts believe the most dangerous issue is the floor mat, which may cause the accelerator pedal to stick.   They advise drivers to remove the driver side floor mat altogether until the car can be serviced.  Toyota will be sending letters to owners of vehicles involved in the recall to schedule appointments with their dealerships.  A full list of vehicles involved in the recall may be found on Toyota's website.

Toyota says it is doing everything in its power to correct this situation.  According to the company’s website their entire workforce has been mobilized, with some dealerships staying open around the clock to service all of the recalled vehicles.  The company maintains that consumer safety is their highest priority. 

Many suspect that Toyota knew about these safety issues long before the recall.  State Farm Insurance claims that in 2007 they reported a high volume of accidents involving Toyota vehicles, to both Toyota and the National Highway Traffic Safety Administration.  Former Toyota employees are also coming forward with accusations of unheeded safety concerns within the company.

If you were in an accident due to a defective vehicle or have legal questions regarding the Toyota recall, contact the Framme Law Firm, PC.

How to Stop a Rapidly Accelerating Car

The most frightening aspect of the Toyota recall is the threat that a vehicle may accelerate uncontrollably.  Here is what to do if your car continues to accelerate after you have taken your foot off the gas pedal:

• Press firmly on the brake and do not let off.  Taking your foot off the brake after engaging it may shut down the vehicles power brakes.
• Put the car in neutral. 
• Once you are safely on the side of the road shut off the vehicle’s ignition.
• Do not turn the car off while it is still moving, as this may shut off power steering and make the car difficult to control.

If you were in an auto accident as a result of a defective vehicle, contact the Framme Law Firm, PC and speak with an attorney.

A Better Way To File Your Taxes

Every year more and more taxpayers are filing their tax returns electronically.  Most taxpayers are eligible for this benefit (though there some are exceptions, such as claiming the current first-time homebuyer’s credit).  Taxpayers have the option of e-filing at home on their computers, or by having their taxes prepared by an approved Electronic Return Originator (ERO).  Benefits of e-filing include:

• Accuracy: Filing electronically enables you to easily verify your information before you submit.
• Confirmation: When you file electronically, you receive confirmation that your return is received, unlike mailing your papers through the postal service.
• Speed: Refunds filed online are generally received twice as fast as those sent through the mail.
• Direct Deposit:  If you provide a bank account, you can receive your refund even faster, by having it deposited directly into your account.

As with filing a paper return, always be sure you have entered your information correctly.  For more information on e-filing, visit the IRS website.   If you have any questions regarding filing your tax return, contact your tax preparer.  If you have any legal questions, contact Framme Law Firm to speak with an attorney.

5 Tips for Lowering Your Heating Bill

With the Northeastern United States buried under snow and the rest of the country suffering through another cold winter, many people are seeing record high heating bills.  Here are some tips that may help dial back the cost of heating your home.

Cut back your thermostat.  You can save nearly 3% for every degree you turn down your thermostat.  Make sure you lower the temperature when you are at work or asleep.  New programmable thermostats can even be set to match your daily schedule.

Don’t let unused rooms drain your heat.  Close the heat vents and shut the door to guest rooms or other areas of your home that are not frequently used.

Insulate your doors and windows.  Feel around the base of doors and windows for drafts.  Seal any drafts with high quality insulating material.

Beware of your fireplace.  While nothing feels better on a cold day than a hot wood fire, your fireplace actually sucks heat out of your home.  Also, make sure you close the damper when you are not having a fire.

Properly maintain your heating unit.  It is important to have your unit checked twice a year.  Make sure you change all of your filters as instructed by the manufacturer.

December 2009

6 Tips for Safe Online Shopping

Online shopping allows individuals to search for the lowest price and view product specifications without leaving home.  While online shopping offers many benefits there are also some risks involved.  The following tips may help make your online shopping experience safe and secure.

1. Avoid using a debit card for online purchases.  If hackers obtain your debit card information they will be able to access the bank accounts you have connected to that card.  Credit cards offer greater protection against fraudulent charges.
2. Only buy from trusted online sellers.  Sticking with well-known companies is a good way to avoid risk.  If you make a purchase through ebay or Amazon check the seller’s ratings to make sure they are reliable.  If you plan to purchase something from an unknown company, check their listing with the Better Business Bureau. Also, make sure the seller’s contact info is listed on their website.  Even call the listed phone number to make sure it is legitimate.
3. Do not make purchases from companies that send spam.  If you receive emails from a company you have never had dealings with, do not make a purchase through their website. 
4. Watch out for phishing scams.  If you receive an email after making an online purchase that asks for payment or personal information do not respond.  Call the company, using the number listed on their website, and speak with a representative to confirm that the email is legitimate.  Be sure not to use links or contact information contained within the questionable email.
5. Keep a record of purchases.  Take note of confirmation numbers, print or save receipts and save emails regarding your transaction.  You may need the information in the event there is a problem with your order or you need to dispute charges with your credit card company.
6. Use your instincts to spot scams.  If something seems to good to be true, chances are it is.  If you feel like something is off about a company look elsewhere for the product you want to purchase.

If you have concerns regarding an online purchase or are involved in a dispute with an online company contact the Framme Law Firm and speak with an attorney today.

3 Common Online Scams: Don’t Be A Victim

Each year millions of Americans lose money to email scams. Don’t take the bait. Here are 3 common online scams to avoid:

“419” Scams

The “419” scammers send out mass emails in which they claim to be African royalty or government officials. In these emails they ask that you help them transfer millions of dollars in exchange for a cut of the money. If you respond, the scammer will ask you to send money to pay for various fees required for the money transfer. Sometimes the scammers will ask you to travel to Nigeria or another African country to complete the money transfer.

Victims lose thousands of dollars to these scams. Many go into debt and are forced to declare bankruptcy. There have even been cases of victims murdered or kidnapped when they traveled to Nigeria to meet scammers.

Phishing Scams

Phishing scams trick victims into giving them their personal information, such as social security numbers, passwords, or account numbers. The most common phishing emails claim to be from banks, eBay or Pay Pal. Phishing emails contain a link to a website where you are asked to provide some form of personal information. The website is a fake but it looks official. Phishing is a common form of identity theft. Victims of phishing can face serious financial and credit problems.

If you receive an email requesting personal information, do not reply or click on the link provided in the email. Call your bank, eBay, Pay Pal or whatever institution is named in the email to inform them of the request. Make sure the number you call is correct and not one given within the email. Scammers sometimes use fake toll-free numbers to obtain personal information.

Check Fraud Scams

Check fraud scams are on the rise. The scam works like this: A scammer emails you asking you to cash a check or money order. You are asked to send the cash to the scammer, while keeping a portion of the cash for yourself as a commission. The scammer sends you a fake or stolen check. You deposit it and send the money to the scammer. The bank will find out the check is counterfeit a week or so after the deposit. You are responsible for the bounced check and won’t get any money back from the scammer.

If you receive a suspicious email from an unknown source it is almost always best to delete it. If you receive an email that you are unsure about or you have been the victim of a scam, please call the Framme Law Firm today.

Preventing Home Break-Ins

The best way to avoid being the victim of a home burglary is to be proactive in protecting your home.  The following tips may help deter thieves from targeting your home during the holidays.

• Keep your doors and windows locked while you are away from home and while you are sleeping.  It may sound obvious, but most burglars enter homes through unlocked doors or open windows.  Criminals like to take the path of least resistance; if there is no easy entrance many thieves will look for another target.
• Check your landscaping.  Make sure your shrubs and trees do not obstruct the street view of windows and doors.  Thieves can use these places to break into homes; if they cannot be seen they have all the time in the world to get inside.
• Keep valuable items out of view.  Leaving the box from a new TV, computer or other expensive holiday gift sitting by the curb on trash day may trigger thieves to target your home.  Break down boxes and keep expensive items out of view from the street.
• Do not let thieves know you are away from home.  Going away for the holidays?  Make sure a friend or neighbor is collecting your mail.  Equip your exterior lights with motion detectors.  You may also consider setting some of your indoor lights on timers so they will come on at night.
• Talk to your neighbors.  Let them know you will be away and to look out for suspicious activity.  You may be able to return the favor next time they go away.
• Talk to the police.  Many police departments will have patrol officers drive by your home if you let them know you will be out of town. 

If you are the victim of a home burglary contact the police immediately and do not touch anything until the police arrive.  If you have questions for an attorney please contact the Framme Law Firm.

First-Time Homebuyer Update

In November 2009, The Worker, Homeownership and Business Assistance Act of 2009 extended the first-time homebuyer credit past its original expiration date of December 1, 2009.

According to the new law, “an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.”

In addition to the extension the new law authorizes the credit for long-time homeowners buying a replacement principal residence and raises the income limitations for homeowners.  The new law also includes added benefits for members of the military, Foreign Service and intelligence community serving outside the U.S.