Jamaica tax system ranked 9th worst worldwide

Jamaica's reputation as a high tax jurisdiction took a further nose dive this week with the release of the new Doing Business Report 2008, showing that the average company continues to give up more than half its yearly profits in the administration and payment of its liabilities to the treasury.

Jamaica's overall ranking in the broad category measuring the 'ease of doing business' plummeted to number 63, from last year's position 50, while in their assessment of the country in the 'paying taxes' segment, the report's authors knocked the island down four places from 166 to 170.

The new ranking tags Jamaica as the ninth worse tax jurisdiction in the world.

The report, produced and published by the World Bank and its affiliate International Finance Coropration, assessed some 178 economies over a one-year period to June 2007.

Based on 10 indicators

The rankings are based on 10 indicators that track the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure.

They do not assess macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates.

A medium sized Jamaican company pays taxes 72 times per year, using up a total of 414 hours - or 17 days.

The report said the filing and payment of taxes eat 51.3 per cent of company profit, more than three points above the region's 48 per cent and five points above the 46.2 per cent paid by companies in the rich Organisation of Economic Cooperation and Development (OECD) countries.

The ratio of tax to profits, however, is an improvement over last year's assessment when the figure was a point higher at 52.3 per cent.

Jamaica's corporate income tax rate is 33 per cent, but added payroll deductions of some 11-12 per cent, push the liability to about 45 per cent of net income.

A programme under way to consolidate payroll/statutory taxes should cut the number of payments to different revenue agencies, but former Finance Minister Dr. Omar Davies warned earlier this year that the reform will take time.

In the current business-friendliness report, Jamaica also ranked poorly in the area of securing credit and the registration of property, which takes 54 days on average, while its cost of trade across borders - an area in which the country is trying to build comparative advantage through multi-billion improvements at the Kingston port - runs way ahead of its peers in the region and the super nations.

To export a container costs US$1,750 compared to US$1,107 for the region and US$905 in the OECD countries. Imports per container averaged US$1,350 for Jamaica compared to the region's US$1,228, and US$986 in the OECD.

It takes 22 days to import goods, compared to almost 26 regionally, but well below the 10 days in places like Europe and North America.

'Starting a business'

Still the country has outpaced the region in several areas, including the important 'starting a business' category - which is used as a measure of investor friendliness and the nurturing of entrepreneurial talent - as well as the number of permits required (Jamaica 10, region 17, OECD 14), for example, to build a warehouse.

Start up costs, however, topped US$15,200, up from last year's estimate of $14,200, and represented 438.4 per cent of per capita income of US$3,840 on which the Doing Business authors based their analysis.

The region does better on average at 268 per cent, while the start-up spend by entrepreneurs in the richest nations is 62 per cent of per capita income.

"Starting a business in Latin America still takes 68 days on average, longer than in any other region. And the limited disclosure requirements for related-party transactions do not encourage investors," said Sylvia Solf, one of the authors of the report.

"Other obstacles are the region's slow courts and burdensome tax systems."

In Jamaica, however, it takes eight days and six transactions, outperforming both the region as well as the OECD where the average time is 15 days and six transactions.

Colombia made big gains

The report's authors noted that regionally, while reforms slowed down perhaps due to elections in 13 jurisdictions, Colombia made big gains, having "sped up trade, enhanced investor protections, and eased tax burdens."

Trinidad and Tobago also got mentioned for improving its credit information system, with utility companies now providing information to credit bureaus, and for cutting its corporate income tax rate from 30 to 25 per cent.

Jamaica's depressed ranking also knocked it out of the top business-friendly countries of the region from position four last year.

Top three countries

The top three business-friendly countries worldwide were Singapore, New Zealand and the United States, respectively.

Bottom of the pile were the Congo, Central African Republic and Guinea-Bissau. The worst in the Latin American/Caribbean region was Venezuela at No. 172.

The 2006/07 world rankings are being revised to capture the three additional countries - Brunei, Liberia, and Luxembourg - that participated in the survey for the first time this year, the World bank said.

"Freeze" Your Credit Report

It's finally coming: On October 15th, you'll be able to lock up your credit file and protect yourself from ID theft ...Well, almost.

Equifax has just announced that it will join Trans Union in allowing you to place a freeze on your credit report. This will make it impossible for thieves to open up a new credit card, or take out a loan in your name. Equifax and Trans Union will each charge $10 a year to lock your credit file. This is valid in all 50 states.

Expect to pay another fee fee to temporarily “unlock” it, if you need a loan, or plan to buy a car, for instance.

One big problem in all this: Experian, the 3rd credit bureau, is not offering freezes at this point: Consumers Union says thats like locking your front door but leaving the back door open (From www.wcpo.com).

A Free Credit Check Three Times a Year

You've heard it a million times...check your credit report. It seems that for every big purchase or major life change, our credit is getting checked before we even make our first move. If it comes back less than stellar, we literally end up paying for it..and many times directly through our noses. I'm sure you've heard by now, how you can check your credit for free online. By law, you are entitled to do this once a year. Here's how you can do it at no cost to you, three times a year and some of the other steps you should be taking in the process.

Visit Annual Credit Report. Yes, you are going to fill in personal information, including your social security number. Yes, it is okay, and this is a secure site. You may be asked some identifying information. Once all that is entered, you will be asked to go to one of the three credit bureau agency sites. Pick only one credit bureau. You will then be whisked away to their site and see your credit report, minus your actual credit score. You don't think the credit reporting agencies would just comply with this law without giving them their freebie, do you? Their catch, is them trying to get you to fork over $8 to get you to ask for your credit score. This credit score kind of sums up your entire credit report. This is the number lenders and everyone else uses to check your credit. Unless you are about to make a big purchase, such as a car or home or about to rent an apartment, you do not need this score. So go ahead and bypass that, and just check the block for your credit report.

Go ahead and print out your report. I know, it's many pages, but you are going to quietly go through each page and circle any abnormal entries or something you are not familiar with. If you have no clue how to interpret or even read your report, visit "How to Read and Understand your Credit Report". Again, it is not really necessary to get all three credit bureau reports, unless you are about to hand over some big money. I know this article says to do it anyway, but these days, the credit bureaus do a better job of sharing information, so if it's going to be on one report, chances are, it'll be on the others too.

Obviously, if you have any errors, you are going to go about correcting them. Clean up your credit report. This is the part no one likes to do, but even small corrections could help your score tremendously, and I am all for a higher score. You should be too. If you want to really get into the shenanigans of how the agencies figure out your credit score, read How Credit Scores Work and My FICO - What's in Your Score. You can then get a good idea of what can negatively impact your credit report and score and go about fixing that...or at least changing things to be in your favor.

In three months, you are going to go right back to Annual Credit Report, and request a report from the next agency on the list...and again in three months for the last one. Repeat again next year. Make sure you also do this for your husband. I've also heard to check your kid's records, because you know there are folks out there who like to steal their identities most of all...because not many will notice. Believe it or not, most times, it's a relative who steals a child's information and not a stranger. Anyway, the credit bureaus ask that you request a child's credit report by mail. I tried accessing one of my children's records online, and since it didn't come up, I figured (and I hope rightly so), that there was no record to be found. If you still feel you need to contact the bureaus, you can do so through their snail mail addresses. You will have to provide proof you are the parent, such as a birth certificate and identifying information for you, such as a driver's license. Contact each credit bureau separately for more information.

What stories can you share about requesting your credit report? Any tips you'd like to share in improving your score and credit record?

Source : eteran Military Wife blog lifelessonsmilitarywife.blogspot.com

Kenmore sale collapses due to credit squeeze

Yet another large property-related deal has succumbed to the crisis in financial markets with the collapse of the 300 mln stg sale of Kenmore, a Scottish property company, according to the Financial Times.

The report said the Edinburgh-based company had been in takeover talks since May with Mirvac, a listed Australian group. But discussions have broken down amid the credit squeeze that has derailed several other property-related transactions.

A source told the FT that Mirvac had lost its appetite for the deal at the asking price, given the state of the debt and property markets. Yields in parts of the commercial property market are rising, partly as a result of higher interest rates compared with a year ago.

Credit crunch is expected to trigger halving of growth and squeeze on City revenue

Consumers, investment and the housing market will suffer next year as turmoil in the financial markets could cut economic growth by almost half, an economic forecasting group says today.

The report by the Centre for Economics and Business Research (CEBR) comes as many analysts forecast that the Bank of England could cut interest rates as early as November.

In its latest outlook for Britain, the CEBR has revised its prediction for growth next year down to 1.4%. The economy is currently growing at 2.7% a year.

"What we see for the next two years is a bit of a double whammy hit on economic growth," says Jonathan Said, senior economist at the CEBR, "first from the financial markets in 2008 and then from the Asians taking the foot off the gas in 2009."

The report says that the drying up of interbank lending is likely to affect economic growth in a number of ways. Consumer spending will be hit as banks clamp down on lending to people with poor credit history. This will also affect the housing market, reducing transactions by around 20%.

The CEBR says there will also be knock-on effects on business investment, which has already started to slow. The report forecasts a dramatic fall in investment to 1.6% in 2008 from 6.6% this year. "Some M&A [merger and acquisition] and private equity deals are likely to be postponed to the tail end of 2008," Mr Said warns.

As a result, the size of the financial sector, which accounts for a tenth of UK growth, is likely to be squeezed. "We expect the financial market crisis to mean the undoing of most of this recent growth [in the financial sector]," says Richard Snook, an economist at the CEBR.

Many other analysts are also revising down their forecasts for growth and interest rates. Although the US Federal Reserve cut interest rates last week and the Bank of England injected more liquidity into the money markets, analysts say it is too early to conclude that the crisis is over.

"Concerns over exposures to the US sub-prime mortgage market could mean that banks will remain reluctant to lend to each other for some time yet," said Roger Bootle at Capital Economics. "Even before the market turmoil, we thought that the economy would slow a bit more sharply than the monetary policy committee expected over the next year or so and recent developments have increased the downside risks. The upshot is that UK interest rates now look likely to fall rather sooner than we had previously anticipated. Should things fail to improve, the MPC could act as soon as November."

Top reasons for choosing credit over debit

It's a question we face daily that still leaves most of us mystified: "Debit or credit?" Here, courtesy of Consumer Reports' Money Advisor, are seven reasons to opt for credit:

1. Credit costs you less. Some banks charge customers for so-called in-store "PIN-based" debit-card transactions. Fees range from 25 cents to $1, depending on the bank, Money Advisor reports. By choosing a "signature-based" transaction, you sidestep these fees.

2. Credit won't result in a hold on your account. When you use a debit card to reserve a hotel, rent a car or even fill up your tank, vendors sometimes put a "block" on your checking account until the transaction is processed -- and the amount of the block can significantly exceed the purchase price. Using your debit card to buy $25 worth of gas, for instance, may result in $100 of the money in your account being "blocked." If you're running a low balance, this can result in punishing overdraft charges.

3. Credit makes it easier to cover your bases. If you haven't been keeping a close eye on your bank balance, it may be a good idea to choose the credit option on your debit card because it takes longer for the money to be debited from your account (usually around two days). This gives you a little time to make sure you have enough in your account to cover the charge.

4. Credit offers better rewards. While some debit cards now offer rewards, such as air miles and cash-back bonuses, credit-card rewards tend to be far more generous, according to Money Advisor.

5. Credit allows interest to accrue. If you religiously pay off your balance at the end of the month, you stand to make more money by paying with a no-fee credit card. Why? Because you can allow your money to grow in an interest-bearing account until your bill comes due.

6. Credit gives you an out. Using a traditional credit card makes it easier to reverse the charges if you get into a dispute with a merchant or vendor.

7. Credit shields you from liability. If someone gets hold of your credit card and wracks up a laundry list of charges, you're typically responsible for only $50 worth of fraudulent charges. If you're unfortunate enough to have your debit card stolen, you may be liable for as much as $500 in unauthorized purchases, unless you report the theft within two business days.

Detecting identity theft: the quicker the better

To minimize the effects of ID theft, selfdetection is the best protection.

Here are some tips to keep yourself safe:

• Monitor your account balances and activity at least weekly. This will help you catch the fraud earlier. Access your account through the Internet or by telephone, rather than wait for a paper statement.

• If you do not have access to online accounts, review mailed bank and credit card statements monthly. You have 30 days from the date of your bank statement to report check fraud - 60 days to report credit card fraud - and the most for which you will be liable is $50.

• Monitor your credit report at least annually. Since it is harder to detect someone using your identity to open new accounts, reviewing your credit report is crucial.

• Get a free report each year from the three credit agencies (Equifax, Experian & TransUnion) at a single phone number 1-877-322-8228 or Web site www.annualcreditreport. com online. Space the three reports out over the year instead of getting all three at once.

• Consider paying bills online or through automated plans. You can safely pay bills online through secure Internet sites or use automated plans.

• Password-protect your computer and sensitive files; ensure your computer has a firewall to protect from Internet attacks; regularly update your anti-virus/anti-spyware software; keep your operating system security features current.

For assistance call the Sheriff's Office Fraud Line at 477-1242.

CASE, Communities Against Senior

Exploitation, is a Partnership of the Lee

County Sheriff's Office and the community

to prevent elder financial exploitation. ¦

Via : florida-weekly.com

Credit Score Mistakes: How to Check Your Credit

By now, we've all heard how important it is to get a free credit report....to make sure its not filled with mistakes.

Many of us, however, dont check our Credit Score...because that costs money.

But as one man found out, it's well worth the 10 bucks.

Tim Enzweiller is hard working real estate agent...with a good job, a good balance in his savings account, and a good car.

Good thing too...Because Tim can't buy another car right now. He can't buy a house.... he can't even buy a new TV on credit.

Why not? Because there's a mistake in his credit file.

Tim tells me "I went to apply for a refinancing of my own home...."

But Tim, a licensed Realtor, was denied his own refinancing....because Equifax had no credit score listed.

"The Equifax credit bureau says I do not have a score....it said insufficient information here. I had no credit history, not credit score,and they had all my info, like Social and birthdate, incorrect in their system. I thought it was identity theft!"

But it turns out, according to Equifax, that a creditor entered wrong information into his file....which in turn messed up his entire file.

It's now correcting the error.

But Tim says in the future, he'll check his credit report and score before applying for credit again.

"If I'd have done that would have know ahead of time...I would have know when this happened."

So don't let this happen to you: Check your credit report each year...and if you're planning to buy a new house or car soon, check your Credit Score as well.

The report should be free...The score a few extra dollars.

Both are worth it, so you Dont Waste your Money. I'm John Matarese.

Rate cut can cure our hangover from credit binge

By CHRIS LESTER
The Kansas City Star

The Federal Reserve’s key policymaking committee gathers today with more eyes trained on it than in years.

The financial markets already have priced in at least a quarter-point cut in the federal funds target rate, which would reduce it to 5 percent. But some folks are already calling for a larger cut, to 4.75 percent, in hopes of heading off a recession caused by problems in the housing and credit markets.

A cut certainly would be notable news.

The Fed hasn’t cut its target short-term rate since June 2003, when it was reduced to a paltry 1 percent — effectively setting off a credit binge.

At the time, the Alan Greenspan-led Fed said the cuts were aimed at heading off fears of deflation and supporting the economy as it recovered from the last recession.

Lenders and borrowers enthusiastically tapped into the virtually free money to make a whole lot of what, in retrospect, have become shaky loans, particularly in the subprime mortgage industry.

The cheap money certainly bolstered the housing industry, driving up home values and generally reflating the economy. But now, the teaser rates on many mortgages, particularly subprime mortgages to borrowers with shaky credit histories, are adjusting much higher. As a result, mortgage delinquencies and foreclosures are creeping higher, and remaining home values are under pressure.

Put simply, now we’ve got a hangover from the credit binge.

Starting in June 2004, the Fed incrementally raised rates by a quarter-point 17 times, until it settled at 5.25 percent in June 2006. Since then, there haven’t been any moves up or down.

Until recently, I was among the minority that thought the Fed might hold off a little while longer before cutting rates. I found myself nodding in agreement with those arguing that both lenders and creditors who speculated with easy money in the housing market needed and in some cases deserved to suffer as the market settled back into equilibrium.

Speaking personally, I’m fine with seeing housing values — including my own — ease back a bit to reality as the market clears excess inventory. After all, it’s been a great run, even though the local market never got wildly out of line. I’m also not looking to sell any time soon, and a calmer market should keep my property tax bill from soaring during the next reassessment cycle.

Now, however, I’m sold on a rate cut.

Here’s why: jobs.

The August jobs report revealed that total payroll employment nationwide shrank by 4,000 during the month, marking the first such decline in four years.

That was the clearest sign yet that those problems in the housing and credit markets are spreading to the broader economy. In recent weeks, Fed officials and others have repeatedly expressed the belief that the housing market problems would remained “contained” and not spread further. They argued that consumer spending would remain solid so long as the job market held up.

That hope is less certain now.

Moody’s Economy.com Inc. noted after the August numbers came out that payroll employment has shrunk only five months since 1985 outside of a period of recession.

And although no one is making an official recession call yet, fears of one in the not-too-distant future are rising. The most recent trade on Intrade. com, which lets investors bet on economic and political events, indicates a 55 percent chance of recession by the end of 2008.

Although we might still muddle through without a recession for quite some time, it’s becoming an increasingly narrow thing. So I’m expecting the Fed to cuts rates today by a quarter-point, with more to follow in successive meetings.

We won’t know for months whether the economic medicine will save the patient. But we’ll get some immediate feedback from Wall Street, which has been betting heavily in recent days on a substantial rate cut.

Frankly, at this point I suspect stocks will actually trade lower if the Fed stops at a quarter-point cut rather than the widely wished-for half-point cut. In recent weeks, particularly, the smart guys on Wall Street have sounded a little like the seed-cap folks I grew up with down on the farm.

There’s always something to complain about.

To reach Chris Lester, assistant managing editor-business, call 816-234-4424 or send e-mail to clester@kcstar.com.

Credit crunch bites UK households

The credit crunch could start to affect British consumers, warns the Ernst & Young Item Club.

In a special report, the economic research body claims UK GDP could fall by one per cent because of the credit crunch.

"It is hard to forecast the ultimate impact of the recent volatility. However a worst case scenario of a full-blown credit crunch scenario would reduce UK GDP growth by around one per cent in 2008 and 2009," said Peter Spencer, chief economic advisor to the Item Club.

"For the Eurozone the impact would be lighter whilst for the US it could be as high as a 1.5 per cent reduction."

The report sees "worrying signs" that turmoil from the financial markets - as banks become more cautious about lending to each other - could spill over onto the high street and the housing market.

Item finds a slowdown in the property market is possible as homeowners coming off fixed rate mortgage deals face higher rates.

"Two million UK fixed rate borrowers also face a crunch of their own when their cheap fixed rate mortgages expire towards the end of this year. When they do they are likely to see far more stringent conditions around the conditions that UK lenders offer as well uplift in the monthly cost," the report states.

The body is now calling on the Bank of England to act as "nursemaid" to prevent the credit crunch from spreading.

It finds that a full crisis is still some way off but "more 'nursemaiding' by central banks" may still be necessary to "ward off the threat to growth from the current financial market volatility".

The effects of the US sub-prime crisis have already been seen this week in the UK with mortgage rates increasing, a minor lender going into administration, and Northern Rock calling on the Bank of England for emergency help.

Use credit to your advantage

We are all living on borrowed time. Many of us are living on borrowed money, too.

Thirty years ago, a college student wouldn’t have had as many choices for a credit card, even if they wanted one.

Today, it’s easy to get a credit card. Some companies will pre-approve high school seniors and send them the forms to fill out for a new card.

A banker once explained credit to me as, “your ability to handle payments.”

Credit can be very good when it’s used responsibly. Depending on the situation, it can be a very helpful tool to have and use, especially when applying for a car loan or renting an apartment.

Recently, I checked my own credit score. Not because I’m thinking about buying a car or a house or trying to get a loan anytime soon, but out of curiosity.

Checking your own credit report will not hurt your score. It’s when lending companies and credit card companies check your credit score over only a few month’s time that can hurt your credit.

There are a few Web sites, including www.freecreditreport.com and www.annualcreditreport.com, that offer free credit reports from the the three bureaus: Experian, TransUnion and Equifax.

When it comes to having a credit card, finance professor James Johnson said, “It’s not going to solve your problems. It’s a good financing tool, but so is your checkbook.”

However, only using a debit card tied to a checking account will not establish credit because it doesn’t report to one of the three credit bureaus. A good way to manage money is to use the checkbook roster or use online banking methods to pay bills or monitor how your money is spent.

One way to establish good credit is to have a student credit card and use it only for gas or emergencies. As you pay your bill on time every month on things you’d need to spend money on anyway, you’re building a credit history.

Part of a credit score accounts for how long that credit history is, so it’s good to start early.

Late payments or negligence on an account can stay on a credit report for seven to 10 years, said Penny White, assistant vice president of the Sycamore branch of Castle Bank.

Credit card companies will work with you if you are in debt and are having trouble getting out. Just like any business, customer service ties into the equation.

“Make sure you stay in contact with creditors,” White said. “Work with them to set up a repayment program.”

It’s up to you to be responsible (Source :northernstar.info).

How to Get Your Kid A Good Credit Report

Like many college kids, my daughter Hannah ended up with a credit-card problem. But it wasn't the problem I feared.

As students head off to college, many parents worry that their sons and daughters will apply for a fistful of credit cards and amass a heap of debt. Indeed, 42% of freshmen have credit cards, and they carry an average balance of $1,585, according to a study by college lender Nellie Mae.

But in her freshman year, Hannah didn't rack up a single charge -- because she had a heck of a time just getting a card.
• Getting carded. To be honest, I don't really want Hannah to have a credit card. But I do want her to have a decent credit score. And one of the best ways to earn that score is to get a credit card, charge a small sum each month and then dutifully pay off the balance.

But which card? For years, Hannah had regularly been offered credit cards by the Continental frequent-flier program, so I figured the folks there were eager for her business. Instead, what she got was a swift rejection.

Next, Hannah applied for a credit card specifically designed for college students. That earned her another rejection, on the grounds she had insufficient credit history.

That got me curious, so I headed to AnnualCreditReport.com, where once a year you can get a free copy of your credit report from the three major credit bureaus. I retrieved one of Hannah's reports and, sure enough, she had no credit history.

Indeed, credit expert John Ulzheimer, author of "You're Nothing but a Number," says pulling your kid's credit reports should probably be your first step. That will allow you to see what sort of history your child has and whether there are any errors that need correcting.
• Seeking approval. Got a kid like Hannah, with no credit history? If your child has a checking or savings account, see if the bank will also give your kid a credit card. Alternatively, your child could apply for the store cards offered by many retailers, which are typically easier to get than general-use credit cards.


College students might also respond to one of the credit-card solicitations they receive on campus. These, however, don't seem as prevalent as they used to be. Hannah has received only a few offers through the mail and has never seen a card issuer with a booth on campus, and some of her friends at other colleges report the same thing.

If your child has a blemished credit history, the only option may be a secured card. With these cards, you put down maybe $300 or $500 as collateral. That sum then determines the card's credit line.

Before applying for a secured card, check that the fees are reasonable, that the card issuer reports to the major credit bureaus and that the card converts to an unsecured card after a year or two, Mr. Ulzheimer says. Secured cardholders should charge only a nominal sum each month, since they could hurt their credit score by using more than 20% or 30% of their available credit.

Another trick: If you buy a new or used car for your teenager, have your child cosign the auto loan. "I wouldn't buy a brand-new Hummer to establish a credit record for the kid," says Scott Bilker, founder of DebtSmart.com. "But if you're going to buy a car anyway, it would be a quick way to get a credit record."

With Hannah, however, I didn't use any of the above strategies. Instead, I simply added her name to my Visa card. Within a month, the card's credit history was included in her credit report, so she's now in good shape to apply for a card on her own.

There are two ways to add a child. In the past, many parents have included their children as authorized users. This strategy might work through the end of 2008, Mr. Ulzheimer says. But the credit bureaus are closing this loophole because it was being abused by some credit-repair businesses.

What to do? You could add your child as a joint account holder. Be warned: While authorized users aren't legally liable for a card's debts, joint account holders are. In addition, if you want to end the arrangement, you can't just take your child off the joint account. Rather, you have to cancel the card entirely.

Source : online.wsj.com

Your loss, California

By Brian Hamlin

It's hard to keep track of old friends in the hustle-bustle shuffle of 21st century America, particularly if one of your old friends is named Sapper.

Forever lost in the Age of Aquarius after ingesting some unidentifiable herbs in Bolinas in 1968, my old sidekick Sapper moves around a lot, and he doesn't always tell friends where he is until he's somewhere else.

Last month, Sapper told me he was ready to pull up stakes in Oregon and move to the Sacramento Delta to live aboard his trusty sailing sloop and set up a metal sculpting studio nearby.

A week ago, however, Sapper called to announce that he was fed up with California and its pernicious pettifoggery and was most definitely re-relocating to Oregon, which he had yet to leave.

"Got a new place right here in Oregon, bro, where everybody isn't all crabby and mean an' bacon-headed like everybody in California all the time," he declared.

Uh-huh ...

"Maaaaaaan, I try to move down there and all I get is a lot of squinty-faced people askin' for my credit report," Sapper continued. "Credit report. Can you believe that? They want a credit report to tie a boat up in a swamp. California's got all beady-eyed and mean!"

I had no chance to get a word in edgewise. Sapper was on a cell phone filibuster and nobody, particularly a loathsome Californian, was going to derail his train of thought.

"Balderdash! Why would I have a credit report? I got a credit card and that oughta say it all. I don't think anybody in the whole damned state of Oregon has a credit report. We don't believe in 'em here where a man's credit is just as good as his handshake and a 12-pack of Henry Weinhard's," Sapper continued.

"No, bro, you keep Crabbyfornia. I found me a great place right here in Oregon, where everybody isn't all mean and despicable. I rented out a law office, where I can do my welding and I can ride my bike from my boat and not worry about the credit-report Gestapo!"

As sorry as I was to hear how thoroughgoingly reprehensible my fellow Californians had become, I was happy to hear that Sapper had found a law office to call home.

"So exactly where is the new place?" I asked, trying not sound mean or contemptuous, despite my California roots.

"That's the best part," Sapper responded enthusiastically. "It's just about 125 miles from Wolf Creek. It's, hmmmmm, er, got the same name as that town in South Carolina, ya know? Hey, don't sweat the details. I'll call ya once I get my cats moved in."

Not the best directions I'd ever received from Sapper, but not the worst, either. He'd at least narrowed the location of his new residence down to Oregon - or, perhaps, South Carolina ...

Brian Hamlin can be reached at courts@thereporter.com.

Guarding your identity

If you become the victim of identity theft -- and the chances of that are becoming more likely every year -- you could face a seemingly endless series of intrusions into your personal financial affairs, as one Maple Grove woman recently learned.

What's worse, it's a crime that law enforcement officials often are unwilling to or unable to resolve.

The Maple Grove woman (who requested anonymity) has spent the past month and a half trying to keep identity thieves from taking over her life. The first sign that her identity had been stolen came July 29, when American Express called her to thank her for applying for a Gold Card. She never applied for that credit card.

The next day a woman in Memphis tried to buy a house through Wells Fargo, using her name for the loan.

Then Macy's called to thank her for opening a new account. Then she learned that a Shop.com account had been opened in her name and that someone had purchased jewelry on the account.

A few days later, she got a letter from a mortgage company indicating that she had asked to have double payments taken out of her checking account to pay for a mortgage. In all, the identity thieves have tried to open more than 20 retail and charge accounts in her name.

Keeping up with the series of identity breaches has become so cumbersome that the woman enlisted the help of her mother so that she could continue to put in a full day at the office. "It becomes a full-time job," her mother said. "It's a nightmare. It is so stressful it makes you sick. And trying to get help is like banging your head against a wall."

The women have contacted the local police, the FBI, the three leading credit agencies (Experian, TransUnion and Equifax), the Federal Trade Commission, the Minnesota attorney general, their insurance company, the Social Security Administration and the Memphis Police Department -- the city where the breaches have all taken place -- and no one seems willing to or able to help them.

"We have the information on where the jewelry was shipped in Memphis -- including the perpetrator's address and phone number -- and we have access to the surveillance video from the jewelry store and yet the police still decline to investigate," explained the woman's mother.

They have placed credit alerts with the three credit agencies, but new credit card and retail accounts continue to be opened in the woman's name.

Safeguarding your identity

You may not be able to prevent identity theft -- it can happen anytime, anywhere to anybody -- but there are some new services being offered that will help you protect yourself in case you become victimized.

The Travelers Companies Inc., the St. Paul-based insurance firm, recently began offering a policy designed to help victims of identity theft review and monitor credit reports, place fraud alerts with credit reporting agencies and write letters to creditors to correct inaccuracies resulting from fraud.

The policy can be an add-on to homeowners and renters insurance for an additional $25 a year. Besides the assistance in resolving identity theft issues, the policy also offers victims reimbursement of as much as $25,000 in lost wages, attorney fees, notary fees and charges for certified mail.

Scott Harstad, a Minnetonka-based financial adviser, recommends a policy called Identity Theft Shield, offered through Prepaid Legal, that provides monthly credit report monitoring -- with alerts if any illegal activity is detected. If your identity is stolen, the service uses an agency to fix the problem for you. The cost is $12.95 per month per family.

Mike Miller, director of Plymouth-based Integra Shield Financial Group, recommends a service known as LifeLock, which offers a number of services to prevent identity theft, including placing fraud alerts with credit bureaus every 90 days on your behalf, getting your name removed from preapproved credit card and junk mail lists, and ordering free credit reports from the three agencies for you each year.

If your identity is stolen, LifeLock will spend as much as $1 million to help you recover your money and your good name. That might include hiring lawyers, investigators, accountants and case managers, as well as reimbursing you for money that you've lost because of identity theft. The cost is $10 per month per person.

"From what I've seen," Miller said, "LifeLock offers the strongest guarantee. A lot of the things they do, you could do yourself, such as ordering credit reports and getting your name taken off of junk mail lists. But, if you do have your identity stolen, they can help you resolve the problem.

"The important thing," Miller added, "is that you continue to monitor your financial accounts, watch your credit card statements and avoid putting personal information in the trash. And, of course, never give out your personal information to anyone unless you're the one who initiated the contact."

Basic steps for avoiding ID Theft

When asked why he robbed banks, Willie Sutton famously replied, "Because that's where the money is."

Contemporary crooks with half a brain give Sutton's brilliant insight a digital age twist and use identity theft to take over existing accounts, create new accounts in the victim's name, and even secure fraudulent loans. The reason is simple: It's easy and, if caught, the penalty is a lot less than using a gun to rob a bank.

The Federal Trade Commission estimated that 8.3 mln Americans, or about 3.7% of the adult population, were victims of identity theft in 2005. The losses total billions of dollars each year, but the financial institutions generally take the hit and victims are rarely liable if the fraudulent debt run up in their name is reported quickly. However, consumers pay for the crime through higher fees – and an estimated 200 mln hours spent each year trying to set the record straight and recover from identity theft.

"Monitor your credit report," says Robert Siciliano, CEO of IDTheftSecurity.com in Boston. "If your identity is stolen, one of the first things the thieves will do is open an unauthorized charge account in your name. I recommend reviewing your credit report quarterly – or at least annually. Consider investing in a credit monitoring service – it's about $10 a month."

Here are some basic steps you can take to prevent identity theft or detect it early and limit the damage:

* Order copies of your credit report from the national credit bureaus at least once a year and review them closely for fraudulent activity. Federal law requires the three major credit bureaus to provide consumers with one free copy of their report each year. To download and print a copy of your report from Equifax, TransUnion and Experian, click to www.annualcreditreport.com, the authorized Web site for free reports. (See: How To Read a Credit Report and How To Fix Your Credit.)

* Close unused bank or credit card accounts.

* Remove your name from mailing lists of pre-approved credit cards because thieves can easily steal the envelopes from your mailbox, open an account and run up a huge bill.

* Guard your PIN number when using an ATM. Start with the basics: Be sure no one is looking over your shoulder when you step up to an ATM. No kidding – ID theft can be as simple as that.

* Keep an eye out for "skimmers" – electronic devices that read and record your account number and PIN – when using an ATM. Many skimmers aren't subtle and extra wires hanging from an ATM are a dead giveaway. To maintain security, use only bank or bank-branded ATMs.

* Never give personal or financial information over the phone or via e-mail to someone you don't know.

* Never respond to e-mails purportedly from your bank informing you of "problems" and requesting your account information to "check" security. Report such scams to your bank.

* Shred all financial records, including old credit card receipts, bills or bank statements, before tossing them in the trash. Note: A shredder that chops sheets of paper into confetti is more secure than one that creates long, thin strips. This prevents "dumpster diving" – the low-tech approach to identity theft.

* Contact your bank if bills don't arrive in the mail on time or don't arrive at all. Your account number may have been stolen.

* Install a firewall on your computer and update anti-virus software.

Siciliano says many people simply don't balance their checkbook or review monthly credit statements. This could allow fraudulent activity to slip by undetected.

He warns against giving out your Social Security Number to businesses that don't need it.

"Your doctor needs your Social Security Number," he says. "The local video store doesn't."

If unauthorized charges appear on your credit accounts, if you've been denied credit for no apparent reason or if you're contacted by creditors about past due bills for goods and services you didn't order, your identity has been stolen. Immediately take these steps:

* Tell your bank and creditors that your identity has been stolen. Close existing accounts and open new accounts. A new account number will prevent identity thieves from tapping into your money with the stolen information.

* Notify the national credit bureaus to place a fraud alert on your file.

* File a report with your local police department. Don't expect a detective to knock on your door, but the cops are always on the look out for major scammers and the theft of your identity could be part of a larger crime.

Sutton, a stickup man in the 1920s and 1930s, received a life sentence plus 105 years after he was arrested in New York in 1952 following the last of several prison escapes. He was released in 1968 due to poor health. Two years later, he did a TV commercial for a Connecticut bank's new photo ID credit card. He died in 1980 at age 79.

By contrast, Philip Cummings, a help desk employee at a New York company that provided banks with credit reports, was sentenced to 14 years in prison in 2005 for the computer theft of about 34,000 identities. A theft ring paid him $30 for each identity he swiped and the crooks may have netted as much as $100 mln.

At that rate, Willie Sutton could have launched a second career – without need of a pistol or submachine gun.

"You can't rob a bank on charm and personality," Sutton once said.

But carelessness or inattention gives identity thieves all they need

Costly Credit Errors

When is the last time you checked your credit report? You should do it once a year because if there's an error it could end up costing you plenty.
There are some 13-million inaccuracies on credit reports every year. It can start with a simple mistake. Maxine Rubin says a credit-card payment she made was not accurately recorded.

Rubin, credit customer, says "I wrote them a check for $180. And I got the next bill saying that I didn't pay $180 and I said, "Yes I did." And they said, "No, you didn't, you only paid $100."

Maxine did, in fact, make a $180 payment. Before the matter was cleared up, she was charged a string of penalty fees and even lost credit lines for her business.

Consumer Reports says any number of things can result in an error on your credit report, so it's worthwhile checking your information once a year.

Jeffrey Blyskal, Consumer Reports, says "If there's a mistake that lowers your credit rating, you could end up paying a higher interest rate on a mortgage or auto loan. That could cost you hundreds or even thousands of dollars over time."

If you do find an error on your credit report, Consumer Reports says you need to dispute it with all three credit bureaus, Equifax, Transunion and Experian. "Because they don't all share the same information, and you want to be sure they all have the correct information" says Blyskal. If you have a credit dispute, it's important to put it in writing, and send a letter instead of an e-mail. You'll want to send it return receipt requested. Also, be sure to send a copy of your dispute directly to the creditor, as well as to the three credit reporting bureaus.

And Consumer Reports says, unfortunately, once you think you've fixed an error a government survey shows 13% of the time it ends up reappearing.

"So we recommend that you go back three or four months later, check your credit report to make sure that hasn't happened" says Blyskal.

And be aware, federal law now entitles everyone to one free copy of their credit report, once a year, from each of the three credit bureaus.

How To Remove Collection Accounts From Your Credit Report

Collection accounts can remain on your credit report for 7 years from the date of the initial missed payment that led to the collection (the original delinquency date).

If you haven't paid your collection account yet, negotiate with the collection agency. Let them know that you plan to pay them off. You can try to negotiate less than the full amount if you want. The important thing is getting them to agree to remove the item from your credit report. It’s wise to get this agreement in writing before submitting your payment.

If you've paid a collection account in full and the item remains on your report. You will want to dispute the item with the credit bureaus by mail. When a collection account is paid in full, it will be marked "paid collection" on the credit report. It is NOT removed from your report and is still considered a negative account. For this reason, you want to have the account removed from your credit report.

Always remember that the burden of proof is on the credit bureaus. You have nothing to prove to them. They have to prove to YOU that the account is yours. Simply dispute by stating something like "Please provide documentation that the following account belongs on my credit report and that my rights have not been violated; otherwise please delete this damaging data immediately." That’s all you need to say. One line. The credit bureaus then must conduct an investigation; they have 30 days to do so. If the collection agency can’t verify the account (most of the time they can’t), then they must remove the collection account from your credit report.

For more information on Removing Collection Accounts and other negative items from your credit reports, visit AAACreditGuide.com, the Free Credit Repair Help site!

Article Source: http://EzineArticles.com/?expert=Chane_Steiner

New law allows Texans to freeze credit reports

Texans now have an extra muscular tool to guard against identity theft.

Under a new law that took effect Saturday, consumers can freeze their credit report without having to have a police report.

When you freeze your credit report, a thief can't get credit in your name because the creditor can't check your credit history. Few lenders will lend you money without checking your credit report.

Previously, Texans couldn't freeze their credit reports unless they were victims of identity theft, which was ridiculous – you had to wait for a crime to occur before you could take steps to protect yourself.

Now, Texas joins 34 other states that allow consumers to freeze their reports without first having to be victims of identity theft.

It's about time. Texas law was out of step with the speed and sophistication with which identity thieves operate today.

People should be allowed to freeze their credit files as soon as they discover that their personal information has been exposed.

"It's one of the most proactive measures a consumer can take," said Linda Foley, co-executive director of the Identity Theft Resource Center in San Diego, which monitors and studies identity-theft issues.

"It's like putting your credit report in a safe deposit box for which you and the credit reporting agency has keys," she said.

Freezing your credit report is different from putting a fraud alert on your credit file.

A fraud alert is a less restrictive option and doesn't block viewing of your credit report. The fraud alert is a special message that a credit issuer receives when checking a consumer's credit rating. It tells the credit issuer that there may be fraud involved in the account and to contact you before granting credit in your name.

That doesn't always ensure protection because not all creditors are diligent in making a true effort to contact you.

"While there is a law that requires issuers to honor this request, some credit issuers do not obey the law," according to a fact sheet on credit freezes and fraud alerts by Ms. Foley's group. "We find fraud alerts work about 70 percent of the time."

A fraud alert stays on your credit report for 90 days unless you're a victim of identity theft and have submitted a police report to extend it to seven years.

But a credit or security freeze stays in your file until you authorize it to be lifted.

To freeze your credit report, you must send a notice by certified mail to each of three national credit bureaus – Experian, Equifax and TransUnion.

You'll need to include proof of your identity, such as a copy of your driver's license, a state or military ID card.

Credit bureaus may charge up to $10 for the security freeze, except for victims of identity theft, who don't pay anything.

The bureaus have five business days to freeze your credit report and 10 business days to send you a confirmation letter, which will include a personal identification number and toll-free telephone number to call to lift the freeze.

You can tell the credit bureau to lift your freeze temporarily or to allow only certain creditors to view your credit report.

The charge to lift your credit freeze temporarily or to permanently remove it can't exceed $10. The charge for allowing only a certain creditor to view your credit report can't top $12.

The credit bureau has three business days to temporarily lift the freeze.

Understand that a credit freeze isn't for everyone.

"If someone is the type who uses instant credit or builds up credit cards, a freeze is not the right thing for you to do," Ms. Foley said.

"It's going to take three days to thaw. The world of instant credit is closed to you."

The best way to use a credit freeze is if, say, you have an elderly parent whom you want to protect. You can encourage him or her to lock others out from his or her credit report.

The change in Texas law is significant because consumers now can head identity thieves off at the pass and deprive them of using a consumer's credit report for a shopping spree.

Still, much more needs to be done to protect consumers from identity theft.

The law still isn't able to keep up with identity thieves, who have become increasingly nimble and sophisticated at what they do.

It's become a cat-and-mouse game: For every new protection the good guys throw up, the bad guys find a way to get around it.

But lawmakers, employers and consumers can't let up.

• Legislators should write laws that make common sense and that would truly give consumers a sharp weapon to protect their good name.

• Companies must do a better job of guarding sensitive financial information. There have been too many cases where customers' Social Security numbers, credit card numbers and other valuable information have been found in the trash intact.

• Consumers need to be stingier with their privacy. Don't give out your personal information – particularly your Social Security number – freely.

"A freeze is the best form of financial identity theft protection currently available, but it is by no means a guarantee of safety," Ms. Foley said. "However, for many of us, the freeze not only brings peace of mind but gives us some measure of control of our financial security, especially with an unstoppable identity thief in your life."

Getting a copy of your credit report is easy, and free

Once again, Rhode Islanders, it’s time to get a free copy of your credit report.

Two years ago this month, residents of this and many other East Coast states became eligible under federal law to obtain a free copy of their personal credit report from each of the three big national credit reporting companies — Equifax, Experian and TransUnion.

The law generally gives you the right to get one free copy every 12 months. So if you took advantage of this opportunity in September 2005, and again in September 2006, now’s the time to do it again.

Don’t fall for those offers on TV, the radio or online. They typically charge you — if not for the credit report itself, then for all sorts of related services.

Instead, go directly to the clearinghouse that the credit reporting companies have established to handle requests for free credit reports according to federal law. Contact the clearinghouse using any of the following methods:

•Call toll-free at 1-877-322-8228.

•Online, use this Web site:

www.annualcreditreport.com

•Use the Web site above to print out a request form. After you complete it, mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

A credit report — sometimes called a credit file — is the official record of your personal credit history. It includes details on your credit card accounts, car loans, mortgage loans and other items.

Why bother checking?

There are two main reasons, said Claudia M. Kerbel, director of outreach at the University of Rhode Island’s Center for Personal Financial Education:

Identity Theft: In general, identity thieves may try to use your name, Social Security number and other personal information to create false identities for financial misuse. So check your credit reports carefully to make sure nobody has obtained credit in your name without your approval. Be sure to check even if you don’t actively use credit, Kerbel said in an interview at URI’s Providence campus last week.

Borrowing Plans: If you plan to take out a loan in the near future, you need to know, in advance, what your credit report looks like. That’s because lenders use the information in credit reports to help decide whether to give you credit, and on what terms. Others may use the information to decide whether to rent an apartment to you, hire you for a job or provide you with an insurance policy.

Once you receive your report, check it carefully for errors. For example, make sure the report accurately shows your personal information — including your name, address and Social Security number.

Also check to see how many accounts are open in your name, and what the balances are, said Angela M. Thomson, former head of the Rhode Island chapter of the Financial Planning Association, a trade group for financial planners and others.

“It’s interesting to see all the credit you have out there,” in accounts you may not remember you had, said Thomson, who runs Coastal Financial Planning Inc., a fee-only financial-planning firm in Lincoln.

For security purposes, consider closing old accounts, especially those with low credit limits that you may have opened years ago and haven’t used since, Thomson said. (Just remember that closing accounts could have an impact on your credit score.)

Also make sure that the report accurately reflects your current circumstances. For example, your credit report may show that you still owe a debt that you’ve already paid, Kerbel said. “Sometimes, the message that you paid [a debt] doesn’t get through” and isn’t reflected on your credit report, she said.

A few other points:

•If you’re married, each spouse should request a copy of his or her own credit report. That’s because credit reports are kept on individuals, based on Social Security numbers, Kerbel said. (Information on joint accounts should show up on the reports of both spouses, she said.) “Each spouse should check their own” report, she said.

•Check your credit report with all three credit reporting companies, not just one. Each may contain different information, Kerbel said. For example, a creditor may report to one credit reporting company, not to all three, she said.

Remember, though, that you’re generally allowed just one free copy every 12 months from each of the three big credit reporting companies. So if you order a copy from all three now, you’ll generally have to wait until next September to obtain a free copy again.

Instead, consider staggering your requests, Kerbel suggested. For example, order a copy from one company now, a copy from another company in January, a copy from the third company in May.

If you go that route, remember to make a note on the calendar so you won’t forget to place the orders later. “You just need to stay on top of it if you stagger,” Kerbel said.

•Consumers in some states, such as Massachusetts, are also eligible for a free credit report based on their own state laws.

TODAY’S TIP: For more information about credit reports, credit scores, identity theft, fraud alerts, and related topics, call the Federal Trade Commission’s consumer response center toll-free at 1-877-382-4357. You may also write: Consumer Response Center, Room 130-A, Federal Trade Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580. Or use this Web site:

www.ftc.gov

Neil Downing is a Journal staff writer and author of The New IRAs and How to Make Them Work for You. Questions about your money matters? Call us at 1-401-277-7484 and leave a message, or e-mail:

moneyline@projo.com

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