When There Is an Extra Zero or Two on Your Credit Card Bill
Your monthly credit card statement just arrived in your e-mail inbox; you click on it and are shocked. You made a purchase last month for $100, but your bill shows a charge of $1,000! Before you have a heart attack, stop and take a deep breath; you are probably protected by the law, and your credit record and bank account should remain intact. However you should act fast. You must talk to the creditor; simply ignoring the bill won't fix the problem.
The Fair Credit Billing Act (FCBA) requires revolving (open-end) account creditors, such as credit card issuers, to correct billing errors promptly. A "billing error," of course, includes a charge on your credit account for something that you didn't buy. But it also includes a purchase made by someone not authorized to use your account, a purchase that is not properly identified on your monthly account statement, a purchase that is for an amount different from the actual purchase price, or for something that you refused to accept on delivery because it was unsatisfactory. Billing errors may also include errors in arithmetic, failure to reflect a payment that you made or other credit to your revolving account, or failure to mail an account billing statement to your correct address.
It is safer to send a letter, because sending a letter will trigger the protections of the Fair Credit Billing Act.
To protect your rights under the FCBA and to correct errors, always notify your creditor in writing of any potential billing error. Many creditors readily handle billing complaints over the phone, and you may think calling is a lot faster and easier than writing a letter. However, it is safer to send a letter, because sending a letter will trigger the protections of the Fair Credit Billing Act. Sample letters can be found on the Web site of the Federal Trade Commission (www.ftc.gov). Use the address provided for billing error inquiries-do not send your letter to the address for account payments.
Send your letter no later than sixty days after the bill was mailed to you. Complying with the sixty-day deadline is very important, as it will protect your rights under the FCBA. Your letter should contain your name, address, and account number. State that you believe your bill contains an error, describe the error and explain why you believe your bill is wrong, and include the date and the suspected amount of the error.
After the creditor receives your letter, it has to acknowledge it within thirty days. The creditor must then investigate and correct your account within two billing periods. Fixing the error should never take more than ninety days from the time the creditor receives written notice of your billing dispute. If the creditor does not correct the error, it must tell you in writing why it believes the bill is not wrong. If the creditor is able to show that the charge is correct, you must pay the bill and any incurred finance charges. If, however, you have brought a genuine error to the creditor's attention, it should refund you any payments you have already made and remove the error from your bill.
Of course, like many things in the financial world these days, changes are afoot in the credit card world. Last spring, Congress passed a credit card holders' "bill of rights." Although this specific law doesn't deal directly with billing errors, its passage, as well as similar efforts on the state level, indicates that smart credit users should keep close watch of their rights and responsibilities regarding their credit accounts. If you have any questions, don't hesitate to contact your creditor and find out its most up-to-date policies and procedures.
Revolving, or Open-End, Credit: What Is it?
The Fair Credit Billing Act protects your rights with regard to revolving, or open-end, credit accounts. But what are these? They are perhaps the most common type of credit accounts. They involve an arrangement in which the consumer (you) has the option of either drawing upon a preapproved line of credit and paying off the entire balance, paying the minimum monthly payment, or paying any other amount in between. It is called "revolving" credit because the consumer uses the credit, makes a payment, and then uses the credit again. Most common credit cards, such as MasterCard®, Visa®, and Discover®, as well as store credit cards, are examples of revolving credit accounts.
Hiring Tips for the Small Business Owner
Small business owners must deal with many issues in addition to making financial ends meet: taxes, local and state regulations and licenses, advertising, and future growth to name just a few. That last issue-future growth-is what most small business owners work toward. If you are fortunate enough to be hiring new employees for your growing business, you'll want to be sure you aren't taking on a lawsuit at the same time.
One easy way to avoid most legal liability related to the hiring process is to maintain a clear focus on the position's job skills, qualifications, and expectations. This places the emphasis where it should be-on filling the job. And to the extent that your hiring decisions are based on job-related criteria, you should avoid most legal pitfalls. Decide what qualifications are required for the job, put those qualifications in a written job description, and focus your hiring efforts on addressing these qualifications as objectively as possible.
State and federal laws prohibit certain types of discrimination in the hiring process. For example, some states have passed laws protecting applicants from discrimination because of sexual orientation, marital status, arrest or conviction records, off-duty use of tobacco products, political party affiliation, and personal appearance. You need to be aware of the employment laws of your state. Since these laws vary from state to state, you shouldn't hesitate to talk to your attorney if you have any questions.
One easy way to avoid most legal liability related to the hiring process is to maintain a clear focus on the position's job skills, qualifications, and expectations
In order to avoid any claims of discrimination or illegal hiring practices, make the whole hiring process as objective as possible. Don't stereotype applicants in any way. Instead, focus on what the job requires and how each particular applicant matches up.
Advertisements. Don't state, directly or indirectly, that a job is for one gender or the other (no "Gal Fridays wanted"); don't engage in age stereotyping by saying you're looking for a "recent college grad." Make sure your ads will be seen by a wide segment of the population.
Checklists. Go into interviews with a series of questions that focus on the specific requirements of the job. Try to ask all applicants the same questions.
Avoid questions that suggest stereotyping. For example, you may want some assurance that an employee will be with you for at least a few years. Don't ask a female applicant, "Do you plan to get married?" "Do you plan to have children?" or "Is there a chance your husband will be transferred?" Instead, keep the focus on the job. Ask, "Is there any reason you might not stay with us for the next few years?" or "Where do you see yourself in five years?" If you want to know if an applicant can work late from time to time, don't ask, "Do you have to be home to make the kids dinner?" Instead, simply ask, "Is there any reason you wouldn't be available to work late at certain times?" And, of course, ask the same questions of all applicants.
Ask only what you need to know. If filling the job doesn't require you to ask certain questions, then don't ask them. Do you have to know the applicant's marital status? Number of children? Religion? Age? Financial status? If not, then don't ask the question.
Even after you've written the job posting and drafted your interview questions, you should still realize that you can't make every demand of each applicant that you might want to make. For example, although the law does not regulate requests for employment references, if you unnecessarily pry into private personal information or use unreasonable methods to gather data, you may open yourself to tort liability for invasion of privacy. In other words, you might face a personal injury lawsuit from an applicant. You will generally be safe, however, if you limit your background or reference checks to issues relating to the performance of the job in question.
The law does limit the types of tests you can use to screen out unqualified applicants. To be on the safe side, any test you administer should measure an applicant's ability to perform the specific job. Tests that are not job-related and that screen out disproportionate numbers of minorities or women have been held to violate anti-discrimination laws.
The Americans with Disabilities Act forbids requiring medical tests of applicants unless you've offered to hire the person and you require all employees who hold the job in question to take such a test. Any information obtained as a result of the test must be kept confidential, in a file separate from the applicant's personnel file, and cannot be used to discriminate against the applicant because of the result or because of any disability disclosed by the test.
Hiring employees should be an exciting and optimistic time in your business development. Make sure you take the necessary precautions to protect your business. The last thing you want is an unintended (and possibly costly) lawsuit.
Examples of Illegal Employment Discrimination
- Refusing to hire an applicant because she is pregnant.
- Refusing to provide an accommodation to an applicant with a disability if that accommodation would have enabled her to perform the job. For example, a typist who is blind applies for a clerical job. She would be capable of doing the work if the computer had a Braille keyboard. You refuse to hire her because you don't want to buy such a keyboard. This refusal would be illegal unless you could prove that the cost of a Braille keyboard would impose an undue hardship on your business.
- Refusing to hire a Latino worker because he speaks with an accent.
- Forcing an employee to retire when he reaches the age of sixty- five.
- Refusing to hire an applicant because she's a member of the Teamsters Union.
- Refusing to hire an applicant because a genetic test reveals he has the potential to develop cancer.
Understanding Probate
An important question is getting lost in the talk of health care reform, advanced directives, and living wills: why would someone even want a tool such as an advanced directive or living will? A common answer is that such planning tools can help you "avoid probate." However, few people actually understand what it is that they are trying to avoid. So what exactly is probate?
In its most basic sense, probate is the court-supervised legal procedure that determines the validity of a will. Probate isn't necessarily a bad thing, and it can fulfill an important role when it comes to estate planning and distributing property after someone's death.
As a verb, probate is also used to mean the process of settling an estate (e.g., "probating the estate"). In this sense, probate is the process by which assets are gathered up, applied to pay debts, taxes, and expenses of administration, and then distributed to those designated as beneficiaries in the will.
Even more than most laws, probate laws vary by state-but which state's law applies: If you have a second home, your will would be probated in the state of your primary residence. But any real estate you own in another state must go through probate in that state unless it's jointly owned or held in a trust. If it is jointly owned, the property passes immediately to the co-owner(s), avoiding probate entirely.
To Avoid or Not to Avoid
A long-standing legal myth has been that one should always try to avoid probate. However, in recent years, simplified procedures in some states have reduced or eliminated many of the hassles and charges once associated with probate. Though delays remain possible, the average estate completes the probate process in six to nine months. depending on state laws. And the reformed probate procedures in many states now make it possible for your spouse, minor children. and disabled .children to obtain the money they'll need to live on almost immediately, without waiting for the entire estate to clear probate.
Despite its sometimes cumbersome nature, probate does help assure that those-and only those-entitled to receive part of your estate do so, even if it takes them a year to get their shares. It reduces the time for creditors to present claims against the estate. True, it is a public proceeding, but how many of us are really worried about someone going through our estate records? Probate privacy, though highly touted by living trust salespeople, is usually more the concern of celebrities and the ultra-rich than the majority of us.
If you do plan to avoid probate, however, or at least would like to reduce the amount of your property that goes through it, you should work with a lawyer. Don't make the mistake so many people eager to avoid probate have made: using a one-size-fits-all-estates form from a book or computer program that doesn't take into account all of your estate planning needs (such as providing for your family) and the peculiarities of your individual situation.
It is important to note that you can't simply avoid probate by not having a will. Even if you don't write a will (which means you die "intestate"), you'll still have one-the one that the state will write for you.
Probate isn't necessarily bad, but if you can minimize the court's involvement, you should. Probate avoidance tools include living trusts, joint tenancy, and life insurance. These tools allow some of your assets to be distributed outside of the probate process. Even though you still need a will, it will likely be so simple and dispose of so little property that the cost and time it takes to see it through probate will be minimal.
Avoiding probate may be a cost and time saving goal for you, but before you make any estate planning decisions, it is best to talk with an attorney. Any decisions you make shouldn't be settled upon only to avoid probate. Rather, they should come about as part of a complete, thoughtful estate plan. You cannot simply" avoid probate" without turning to something else.
Property That Avoids Probate
Not all property needs to go through probate. Here's a partial list of things that don't:
- Property in trust.
- Property that's jointly held (but not common property).
- Death benefits from insurance policies (unless they are payable to your estate), the government, employers, and other benefits controlled by contract.
- Property given away by gift before you die.
- Money in a pay-on-death account.
- Retirement accounts with a named beneficiary.
- Transfer-on-death beneficiary deeds.
Supreme Court Update
As the fall air settles in throughout parts of the country, kids return to school. and the football season kicks off, another autumn tradition has begun: the start of a new Supreme Court term. This new term should be filled with lots of intrigue and interest, and not just for the fact that a new face is among the justices on the bench.
Much of the media attention on the Supreme Court this summer focused on the retirement of Justice Souter and the appointment and confirmation of his replacement, Justice Sonia Sotomayor. Although both Justices Souter and Sotomayor are considered relative "liberals," the change in personnel still could have longterm effects on the Court and our legal system. For example, Justice Sotomayor's record shows a tendency to side with police officers and law enforcement agents, which, depending on the circumstances, may put her at odds with her more traditionally liberal colleagues. Further, Justice Souter had a long-standing relationship with Justice Kennedy, the traditional swing vote in close 5-4 cases. Whether Justice Sotomayor or any other liberal justice will be able to step into Justice Souter's shoes and convince Justice Kennedy to line up with the liberal votes is yet to be seen.
As the term gets rolling, however, attention will likely shift away from the individual justices and more toward some of the high-profile cases.
Whether Justice Sotomayor or any other liberal justice will be able to step into Justice Souter's shoes and convince Justice Kennedy to line-up with the liberal votes is yet to be seen.
One of the first cases to garner a lot of attention involves an emotional topic-the illegal "sport" of dog fighting. United States v. Stevens presents the Court with a First Amendment challenge to a federal law that criminalizes the creation, sale, or possession of videos that portray animal cruelty. This specific case focuses on videos involving pit bull fighting. The case will likely garner much media attention given the gory details, and resolution of the legal issues should have lasting impacts.
On the other end of the excitement spectrum is Free Enterprise Fund v. Public Company Accounting Oversight, a case involving a challenge to the corporate oversight authorized by the Sarbanes-Oxley Act. This legislation was part of the congressional response to the implosion of Enron Corporation, and it permits certain new government regulations and oversight of corporations. Given the current economic and corporate environment, this is a case that is likely to have wide-ranging implications for businesses and the economy.
Other important rights and responsibilities are again before the Court this term, including the right to a speedy trial, the right to legal counsel during police questioning, and union collective bargaining rights. The Supreme Court is frequently the one branch of government that gets the short end of the stick when it comes to media attention. However, as these early cases show, the Court's decisions can affect our everyday lives.