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DEBT MANAGEMENT
TOOLS TO WORK WITH!!!
The Office of Student Financial Aid
110 S. Paca Street, 2nd Floor
Baltimore, Maryland 21201
RS-FinAid-Debt-Mgmt@campus.umaryland.edu
410-706-7347
At the University of Maryland Baltimore, we applaud your dedication to further your education.
Can you afford it? Without a doubt – College is expensive!! However there are ways to pay for it.
• Financial Aid, Grants, scholarships, etc..
• Part-Time Jobs
• Work Study
• Budgeting
Most students use a combination of the above methods……
You are never alone in this process. Remember, your Financial Aid Office is a great source of information. We stock free brochures and literature. Counselors are available by appointment. Your Lender (bank) and Guarantor are helpful resources as well.
Our goal in the Student Financial Aid Office is to help students make responsible decisions about borrowing and repayment. We are always available to the prospective student, the enrolled student, and the students who have graduated. We are flexible and are willing to accommodate the student’s needs, Counseling sessions are available to students by appointment. The Financial Aid Office uses every window of opportunity to discuss Debt Management with the students.
FIRST THINGS FIRST!!!!
ENTRANCE COUNSELING: This is a Federal Requirement when borrowing Stafford loans. Loan disbursements are not available until this process has been completed:
This process reinforces your responsibilities as a borrower. We request that you complete this obligation.
TOPICS OF INTEREST:
| ANNUAL CREDIT REPORT REQUEST | |
Most students will need to borrow loans to complete their education. Remember, a loan is a form of financial aid that must be repaid, with interest. Borrow a loan and borrow responsibility!
WHICH LOAN IS FOR YOU?
One of the best loan programs is the Subsidized Stafford Loan. The second most favorable loan is the Federal Perkins Loan. The Subsidized Stafford and the Federal Perkins Loans are in the same league, because no interest is due while you are enrolled for at least 6 credits (half time). The Federal Perkins loan is a 5% fixed interest rate loan that offers cancellation provisions for serving in certain career areas. However, the Perkins loan is only given to students who demonstrate exceptional financial need.
The next best loan choice is the Subsidized Stafford Loan. The interest rate is now fixed at 6.8%. The federal government pays interest while you are enrolled (at least halftime) in college. Plus, many lenders offer borrower benefit programs which greatly reduce the cost of paying back the loan.
Next, look into the Unsubsidized Stafford, which is not based on "financial need". The interest accrues from the time the loan is disbursed. This loan is also at 6.8% fixed.
Many students find that they must supplement their savings with private loans.
There will be times when traditional assistance is insufficient to meet all of a student’s need-- this is especially the situation for students who experience higher costs such as: non-residents, students with families, some who are attending for the summer as well as academic year. In these situations alternative loan assistance may be desired. Since alternative loans (sometimes referred to as private loans) have few benefits and usually carry a higher interest cost, it is recommended that students only seek them after all possible traditional sources of financial aid have been secured (such as need-based grants, work study and loans or unsubsidized Stafford or PLUS loans).
Private education loans, also known as alternative or supplemental loans, are credit based and that means your credit record must be free of default or delinquency. Usually, private education loans help fill the gap between the cost of education, less any financial aid received. Private education loans are the fastest growing source of financial aid and there are many different loan programs offered. Interest rates, repayment periods, loan fees, credit criteria, borrower benefit programs, etc., will vary from lender to lender. Determining which loan program to use will involve some research on your part. REMEMBER BORROW ONLY WHAT YOU NEED! If you live like the Professional you are not, you will have to live like a student when you graduate.
Additional information: www.fafsa.ed.gov
- Identify your goals (be realistic and write them down)
- Make good choices(remember you are on a budget)
- Develop a budget(learn to resist temptation)
- Open a Savings Account(save what you can, emergencies crop up )
Be organized(keep accurate records) - Maintain a very strong credit history(employers pull credit reports)
- Pay your bills on time(this avoids late fees)
- Borrow only what you need(you have to repay what you borrow)
- Be well informed(all loans are not created equal)
- Limit the number of Credit Cards(2 will do it)
- Pay your Credit Card balance off each month
Make these a habit and you will benefit while in school and after graduation. You will become financially responsible!!!
LIVING LIKE THE STUDENT YOU ARE!!!!
Here are a few suggestions for living like a student!!
- Bring your lunch/bring your coffee
- No carry out or Designer Coffee-you can’t afford it!!
- Get a roommate and share expenses
- Grocery Shop with a list/clip coupons
- Attend movies during the matinee hours-prices are lower
- Rent videos
- Check your local newspaper for free weekend events
- Make or bake gifts
- Use Public transportation – taxies are to expensive
- Freeze your credit cards in a metal bowl-prevents impulse spending
- Know the difference between Want vs. Need--this will save you from a debt disaster!!
- Purchase wisely, Temptation is hard to resist. Do not carry credit cards, you will spend less. Shop out of need, not desire!!!!
MIND over MONEY, practice, practice!!!
Annual Credit Report Request: a mailing address through which you can order your free annual report.
To opt-out of direct mail offers, call 1-888-5OPTOUT (888-567-8688), or write to the following address:
TransUnion LLC's Name Removal Option
P.O. Box 97328
Jackson, MS 39288-7328
Your name will be removed from mailing lists obtained from the main consumer credit reporting agencies, TransUnion, Experian, Equifax and Innovis.
FRAUD ALERT
1-888-766-0008
If you think that you are a victim of credit fraud you can direct your complaints to the following organizations:
- CSC credit services fraud line at 1-800-272-9281.
- Trans Union consumer line at 1-800-888-4213.
- Better Business Bureau at (713) 868-9500.
- National Fraud Information Center at 1-800-876-7060.
- Equifax at 1-800-685-1111
- Regional Consumer Protection Office of the Attorney General at (713) 223-5886
The first thing you need to do is spend a week keeping a list of everything you spend money on. You will be amazed at how much we spend on carry out, gas, parking spaces, and the designer cup of morning coffee. Keep a running tally of how much you spend for a week.
Little items add up quickly, but it's time to move on to the necessities of life. Calculate your monthly income and be sure to include all sources. Record all expenses and include fixed expenses (rent or mortgage, utilities and phone, car payment, child care, insurance). Be sure to include groceries, clothing, credit card expenses, medical bills, etc.
This will help to identify where your money is going.
Remember, make a “BUDGET” and “STICK” to it. Continue to monitor and update your budget, make it work for you.
PURCHASING A HOME!!!!
Home ownership is a major part of the American dream, are you prepared? Home ownership is a long term responsibility and you need to be prepared, because what you don’t know can harm you. First, you need to check your credit rating. Order credit reports from the major credit agencies, because the lending institution will. You may have to make corrections, and the agencies will require you to provide documentation to make corrections. This can be a time consuming process. If your credit is good you will qualify for a loan, with reasonable rates.
- Borrow only what you need!
- Make sure you can afford the monthly payment
- Borrow from someone you can trust
Always call more then one lender, check the newspapers, (business or real estate sections) for the current interest rate. Ask for a complete repayment schedule and make sure you know how much you will have repaid when the loan is completed.
Loan fees should not exceed 5% of the loan amount.
Read the paperwork, if you don’t understand it, find someone to explain it. Check the contract for accuracy.
Don’t be pressured into signing. Don’t be pressured into time limits, this could be a ploy.
Beware of the company that solicits you without an invitation, if it looks to good to be true, then it is.
Amortization: repayment of a mortgage loan through monthly installments of principal and interest; the monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period (for example, 15 or 30 years)
Annual Percentage Rate (APR): calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.
Balloon Mortgage: a mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.
Certificate of title: a document provided by a qualified source (such as a title company) that shows the property legally belongs to the current owner; before the title is transferred at closing, it should be clear and free of all liens or other claims.
Credit bureau score: a number representing the possibility a borrower may default; it is based upon credit history and is used to determine ability to qualify for a mortgage loan.
Down payment: the portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.
Homeowner's insurance: an insurance policy that combines protection against damage to a dwelling and its contents with protection against claims of negligence or inappropriate action that result in someone's injury or property damage.
Index: a measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage.
Loan: money borrowed that is usually repaid with interest.
Origination: the process of preparing, submitting, and evaluating a loan application; generally includes a credit check, verification of employment, and a property appraisal.
Origination fee: the charge for originating a loan; is usually calculated in the form of points and paid at closing.
Mortgage: a lien on the property that secures the Promise to repay a loan.
PITI: Principal, Interest, Taxes, and Insurance - the four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.
Real Estate Settlement Procedures Act (RESPA): Federal law which regulates the settlement practices within the real estate industry. This law requires the provision of Good Faith Estimates of Closing Costs, prohibits kickbacks for referrals of related services, and standardizes the closing with a required form and format.
Settlement Costs: money paid by borrowers and sellers to effect the closing of a mortgage loan. This normally includes an origination fee, discount points, title insurance, survey, attorney’s fee and such prepaid items as taxes and insurance escrow payments.
Term: the life of the loan.
Title Search: an examination of public records, laws, and court decisions to disclose the past and current facts regarding ownership of real estate.
Underwriting: a process during which a loan application is evaluated to determine the risk involved to the lender and a decision made on whether to grant the loan.
Variable Rate Mortgage (VRM): a mortgage agreement that allows for adjustment of the interest rate in keeping with a fluctuating market and terms agreed upon in the note.
Verification of Employment (VOE): documentation of a mortgage applicant’s work history and/or occupation that is intended to assist with the lender’s credit investigation and decision process. Many lending institutions ask potential borrowers to sign employment verification forms and then under the applicant’s signature, make direct inquiries to employers about the applicant.
A larger down payment – greater than 20% - will give you the best possible rate.
FICO-Fair Isaac Company, created a credit scoring system that most credit card companies, and potential lenders use when evaluating the risks of lending you money.
FICO scores are numbers that the credit agencies generate based on payment history (35%), on the amounts owed 30%, length of credit history (15%), new credit (10%), and the types of credit you have (10%).
The better your credit the higher your FICO score! Scores range from 350 to 900. You should have a credit score of 670 or more.
Above 730 Excellent
700-729 Good Credit
670-699 Average Credit
585-669 Below Average Credit
Below 584 Poor Credit
Of the many things that are calculated to come up with your credit score, the two that are weighted the heaviest are: making payments on time (35 percent weighting) and how much you owe (30 percent). It’s best to always make payments on time and review your overall credit picture three to six months before making any major moves.
Things that can affect your credit score.
* Removal of an installment account such as car loan or mortgage.
* Closing the credit account that you have had open the longest.
* Late payments.
* Any accounts that are in dispute.
* An increased number of inquiries on your report.
If you have ever been billed for merchandise you returned, never received, have they charged you twice for the same item, or failed to issue you a credit? This can be very disturbing. But, the good news is that these errors can be corrected. It takes a little patience and knowledge of the dispute settlement procedures provided by the Fair Credit Billing Act (FCBA).
The law applies to, such as credit cards, and revolving charge accounts - such as department store accounts.
What types of disputes are covered?
- unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50;
- charges that list the wrong date or amount;
- charges for goods and services you didn't accept or weren't delivered as agreed;
- math errors;
- failure to post payments and other credits, such as returns;
- failure to send bills to your current address - provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends; and
- charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.
- write to the creditor at the address given for "billing inquiries," not the address for sending your payments, and include your name, address, account number and a description of the billing error.
- send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you.
Send your letter by certified mail, return receipt requested, so you have proof of what the creditor received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.
The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.
You still need to make payments on the undisputed portion of your bill. While your account cannot be closed or restricted, the disputed amount may be counted against your credit limit.
You cannot be denied credit simply because you've disputed a bill.
If your bill contains an error, the creditor is required to explain in writing the corrections that will be made to your account. The creditor must remove all finance charges, late fees or other charges related to the error.
If the bill is correct, you must be notified promptly and in writing how much you owe and why. You may ask for copies of relevant documents. You will owe the disputed amount plus any finance charges that accumulated while the amount was in dispute.
If you disagree with the results of the investigation, you may write to the creditor, but you must act within 10 days after receiving the explanation, and you may indicate that you refuse to pay the disputed amount. At this point, the creditor may begin collection procedures. However, if the creditor reports you to a credit bureau as delinquent, the report also must state that you don't think you owe the money.
Any creditor who fails to follow the settlement procedure may not collect the amount in dispute, or any related finance charges, up to $50, even if the bill turns out to be correct.
If possible, hire a lawyer who is willing to accept the amount awarded to you by the court as the entire fee for representing you. Some lawyers may not take your case unless you agree to pay their fee - win or lose - or add to the court-awarded amount if they think it's too low.
Reporting FCBA (fair credit billing act) Violations
The Federal Trade Commission (FTC) enforces the FCBA for most creditors except banks. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or to get free information on consumer issues, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at www.ftc.gov. The FTC enters Internet, telemarketing, identity theft and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad
The crime of identity theft
It can happen to anyone. The phone rings and a collection agency demands that you pay past-due accounts for goods you never ordered. The supermarket refuses your checks because you have a history of bouncing them. But you have always paid bills on time. What has happened?
The crime of identity theft is on the rise. Recent surveys show there are currently 7-10 million victims per year, greatly exceeding our earlier estimates. Using a variety of methods, criminals steal Social Security numbers (SSN), driver's license numbers, credit card numbers, ATM cards, telephone calling cards, and other pieces of individuals' identities such as date of birth. They use this information to impersonate their victims, spending as much money as they can in as short a time as possible before moving on to someone else's name and identifying information.
There are two types of identity theft. "Account takeover" occurs when a thief acquires your existing credit account information and purchases products and services using either the actual credit card or simply the account number and expiration date. "Application fraud" is what some experts call "true name fraud." The thief uses your SSN and other identifying information to open new accounts in your name. Victims are not likely to learn of application fraud for some time, because the monthly account statements are mailed to an address used by the imposter. In contrast, victims learn of account takeover when they receive their monthly account statement. Generally, victims of credit and banking fraud are liable for no more than the first $50 of the loss. In many cases, the victim will not be required to pay any part of the loss.
Even though victims are usually not saddled with paying their imposters' bills, they are often left with a bad credit report and must spend months and even years regaining their financial health. In the meantime, they have difficulty getting credit, obtaining loans, renting apartments, and even getting hired. Victims of identity theft find little help from the authorities as they attempt to untangle the web of deception that has allowed another person to impersonate them.
Stealing wallets used to be the best way identity thieves obtained SSNs, driver’s licenses, credit card numbers and other pieces of identification. While still employed, identity thieves now use more sophisticated means:
- "Dumpster diving" in trash bins for unshredded credit card and loan applications and documents containing SSNs.
- Stealing mail from unlocked mailboxes to obtain newly issued credit cards, bank and credit card statements, pre-approved credit offers, investment reports, insurance statements, benefits documents, or tax information. Unfortunately, even locked mailboxes may not stop the most determined thief.
- Accessing your credit report fraudulently, for example, by posing as an employer, loan officer, or landlord.
- Obtaining names and SSNs from personnel or customer files in the workplace.
- "Shoulder surfing" at ATM machines and phone booths in order to capture PIN numbers.
- Finding identifying information on Internet sources, via public records sites and fee-based information broker sites.
Take these steps to reduce your risk of becoming a victim of identity theft:
You cannot prevent identity theft. Criminals can commit identity theft relatively easily because of lax credit industry practices and the ease of obtaining SSNs. But you can reduce your risk of fraud by following the tips listed below. The most important advice we can give you is to check your credit report at least once a year. If you are a victim of identity theft, you will catch it early by checking your credit report regularly.
Reducing access to your personal data:
- To minimize the amount of information a thief can steal, do not carry extra credit cards, your Social Security card, birth certificate or passport in your wallet or purse, except when needed. At work, store your wallet in a safe place.
- If possible, do not carry other cards in your wallet that contain the Social Security number (SSN), except on days when you need them.
- To reduce the amount of personal information that is "out there," consider the following:
Remove your name from the marketing lists of the three credit reporting bureaus -- Equifax, Experian (formerly TRW) and Trans Union. Call 888-5OPTOUT. This will limit the number of pre-approved offers of credit that you receive. These, when tossed into the garbage, are a potential target of identity thieves who use them to order credit cards in your name.
• Sign up for the Federal Trade Commission's National Do Not Call Registry and the Direct Marketing Association's Telephone Preference Service. Your name is added to name deletion lists used by nationwide marketers. You may also need to register for your state’s "do not call" list, if it has one.
, www.donotcall.gov , (888) 382-1222, Telephone Preference Service, PO Box 1559, Carmel, NY 10512
: www.ftc.gov/bcp/conline/edcams/donotcall.
Have your name and address removed from the phone book and reverse directories. Mail-reduction tips. You can remove yourself from most national mailing lists by contacting the Direct Marketing Association's (DMA) Mail Preference Service MPS). You must re-register after five years.To remove your name from mail and phone lists (www.dmaconsumers.org/consumerassistance.html - www.dmaconsumers.org/privacy.html) Mail Preference Service, PO Box 643, Carmel NY 10512,Telephone Preference Service, PO Box 1559, Carmel NY 10512.The MPS will put you into the "delete" file which is sent to subscribing organizations several times a year. You should see a reduction in catalogs, magazine offers, credit card solicitations, sweepstakes and other national advertising mail within three to four months.Opt-out of the sale or sharing of your financial information when given the opportunity by your bank, credit card companies, insurance companies, and investment firms. (Read PRC Fact Sheet 24, www.privacyrights.org/fs/fs24-finpriv.htm.) - Install a locked mailbox at your residence to deter mail theft. Or use a post office box or a commercial mailbox service. When you are away from home for an extended time, have your mail held at the Post Office, or ask a trusted neighbor to pick it up.
- When ordering new checks, pick them up at the bank. Don’t have them mailed to your home. If you have a post office box, use that address on your checks rather than your home address so thieves will not know where you live.
- When you pay bills, do not leave the envelopes containing your checks at your mailbox for the postal carrier to pick up, or in open boxes at the receptionist’s desk in your workplace. If stolen, your checks can be altered and then cashed by the imposter. It is best to mail bills and other sensitive items at the drop boxes inside the post office rather than neighborhood drop boxes.
- Credit cards and credit reports: Reduce the number of credit cards you actively use to a minimum. Carry only one or two of them in your wallet. Consider canceling unused accounts. Even though you do not use them, their account numbers are recorded in your credit report, providing a tempting target for identity thieves. But be aware that reducing the number of credit card accounts might lower your credit score. Part of your score is determined by having credit cards and installment loans and making timely payments. (For more information on credit scoring, visit www.myfico.com .)
- Keep a list or photocopy of all your credit cards, bank accounts, and investments -- the account numbers, expiration dates and telephone numbers of the customer service and fraud departments -- in a secure place (not your wallet or purse) so you can quickly contact these companies in case your credit cards have been stolen or accounts are being used fraudulently.
- Never give out your SSN, credit card number or other personal information over the phone, by mail, or on the Internet unless you have a trusted business relationship with the company and you have initiated the call. Identity thieves have been known to call their victims with a fake story that goes something like this. "Today is your lucky day! You have been chosen by the Publishers Consolidated Sweepstakes to receive a free trip to the Bahamas. All we need is your Social Security number, credit card number and expiration date to verify you as the lucky winner."
- Always take credit card receipts with you. Never toss them in a public trash container. When shopping, put receipts in your wallet rather than in the shopping bag.
- Never permit your credit card number to be written onto your checks. It's a violation of California law (Civil Code sec. 1725) and laws in many other states, and puts you at risk for fraud.
- Watch the mail when you expect a new or reissued credit card to arrive. Contact the issuer if the card does not arrive.
- Order your credit report once a year, or better twice, from each of the three credit bureaus to check for errors and fraudulent use of your accounts. Credit reports cost $8-$9 in most states. If you are on a budget, order from one credit bureau now, from another in six months, and the third six months later. In one year you will have checked all three.
- You do not have to be an identity theft victim to place a "fraud alert" on your three credit reports. With the alerts, you place a statement on your files requesting credit issuers to call you at your phone number before issuing credit. In theory, anyway, if an imposter attempts to open credit in your name, the credit grantor will contact you first. But they do not always pay attention to fraud alerts, so this strategy does not ensure that you’ll prevent identity theft. When you place fraud alerts by phone, the credit bureaus give you a temporary alert, good for only a few months. If you wish to extend the fraud alert, you must write the three credit bureaus and request a seven-year fraud alert. For information on how to establish fraud alerts, read "step one" of the PRC’s Fact Sheet 17a, www.privacyrights.org.
- Californians are now able to "freeze" their credit reports, a stronger alternative to fraud alerts. (California Civil Code 1785.11.2, implemented January 1, 2003) This law enables individuals to prevent others from accessing their credit files and thereby prevents thieves from opening up new credit card and loan accounts. Security freezes are available at no charge to identity theft victims and for an annual fee for non-victims.
- Several companies, including the three credit bureaus, offer credit monitoring services for an annual fee ranging from $50-$120 a year. They notify you when there is any activity on your credit report, thus alerting you to possible fraud. We do not endorse credit monitoring services because we believe that individuals should not have to pay a fee to track their credit. At the very least, consumers should be able to obtain one free credit report a year from each bureau, a provision which is law in six states: Colorado, Georgia, Massachusetts, Maryland, New Jersey, and Vermont.
Passwords and PINS: - When creating passwords and PINs (personal identification numbers), do not use the last four digits of your Social Security number, mother’s maiden name, your birth date, middle name, pet's name, consecutive numbers or anything else that could easily be discovered by thieves. It’s best to create passwords that combine letters and numbers.
- Ask your financial institutions to add extra security protection to your account. Most will allow you to use an additional code or password (a number or word) when accessing your account. Do not use your mother's maiden name, SSN, or date or birth, as these are easily obtained by identity thieves.
- Memorize all your passwords. Don't record them on anything in your wallet.
- Shield your hand when using a bank ATM machine or making long distance phone calls with your phone card. "Shoulder surfers" may be nearby with binoculars or video camera.
Social Security numbers: - Protect your Social Security number (SSN). Release it only when absolutely necessary (like tax forms, employment records, most banking, stock and property transactions). The SSN is the key to your credit and banking accounts and is the prime target of criminals.If a business requests your SSN, ask if it has an alternative number that can be used instead. Speak to a manager or supervisor if your request is not honored. Ask to see the company's written policy on SSNs. If necessary, take your business elsewhere. If the SSN is requested by a government agency, look for the Privacy Act notice. This will tell you if your SSN is required, what will be done with it, and what happens if you refuse to provide it. If your state uses your SSN as your driver’s license number, ask to substitute another number. If possible, do not provide the SSN on job applications. Offer to provide it when you are interviewed.
- Do not have your SSN or driver’s license number printed on your checks. Don't let merchants hand-write the SSN onto your checks because of the risk of fraud. There is no law against this, so you may need to be assertive.
- Examine your Social Security Personal Earnings and Benefits Estimate Statement each year to check for fraud. The Social Security Administration mails it to adult-age SSN holders about three months before the birthday. The SSA web site has additional information, www.ssa.gov/mystatement . Reach them by phone at (800) 772-1213.
- Do not carry your SSN card in your wallet except for situations when it is required, the first day on the job, for example. If possible, do not carry wallet cards that display the SSN, such as insurance cards, except when needed to receive healthcare services. A California law places restrictions on the display and transmission of SSNs by companies. It is being phased in through 2005.
- If you live in a state that uses the SSN as the driver’s license number, we recommend that you contact your Department of Motor Vehicles and request a different number.
- Internet and computer safeguards: Install a firewall on your home computer to prevent hackers from obtaining personal identifying and financial data from your hard drive. This is especially important if you connect to the Internet by DSL or cable modem.
- Install and update virus protection software to prevent a worm or virus from causing your computer to send out files or other stored information.
- Password-protect files that contain sensitive personal data, such as financial account information. Create passwords that combine 6-8 numbers and letters, upper and lower case.
- When shopping online, do business with companies that provide transaction security protection, and that have strong privacy and security policies.
- Before disposing of your computer, remove data by using a strong "wipe" utility program. Do not rely on the "delete" function to remove files containing sensitive information.
Responsible information handling: - Each month, carefully review your credit card, bank and phone statements, including cellular phone bills, for unauthorized use.
- Do not toss pre-approved credit offers in your trash or recycling bin without first tearing them into small pieces or shredding them. They can be used by "dumpster divers" to order credit cards in your name and mail them to their address. Do the same with other sensitive information like credit card receipts, phone bills, bank account statements, investment account reports, and so on. Home shredders can be purchased in many office supply stores. We recommend cross-cut shredders.
- Demand that financial institutions adequately safeguard your data. Discourage your bank from using the last four digits of the SSN as the PIN number they assign to customers. If you have been given the last four SSN digits as a default PIN, change it to something else. Insist they destroy paper and magnetic records before discarding them. By not adopting responsible information-handling practices, they put their customers at risk for fraud.
- When you fill out loan or credit applications, find out how the company disposes of them. If you are not convinced that they store them in locked files and/or shred them, take your business elsewhere. Some auto dealerships, department stores, car rental agencies, and video stores have been known to be careless with customer applications. When you pay by credit card, ask the business how it stores and disposes of the forms. Avoid paying by credit card if you think the business is not careful. When paying with credit cards on the Internet, be sure the company uses secure transmission and storage methods.
- Store canceled checks in a safe place. In the wrong hands, they could reveal a lot of information about you, including the account number, your phone number and driver's license number.
- Store personal information securely in your home, especially if you have roommates, employ outside help, or have service work done in your home.
- Any entity that handles personal information should train all its employees, from top to bottom, on responsible information-handling practices. Persuade the companies, government agencies, and nonprofit agencies with which you are associated to adopt privacy policies and conduct privacy training. (See PRC Fact Sheet 12, "Checklist of Responsible Information-Handling Practices," www.privacyrights.org/fs/fs12-ih2.htm)
For More Information
Order credit report Report fraud
• Equifax (800) 685-1111 (800) 525-6285
• Experian (888) EXPERIAN (888-397-3742) (888) EXPERIAN (888-397-3742)
• TransUnion (800) 916-8800 (800) 680-7289
Federal Trade Commission Identity Theft Clearinghouse
• Phone: (877) IDTHEFT (877-438-4338)
• Web: www.consumer.gov/idtheft
• FTC’s free 34-page identity theft guide, "When Bad Things Happen to Your Good Name," available by phone and www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm
Identity Theft Resource Center
• Phone: (858) 693-7935
• Web: www.idtheftcenter.org
Privacy Rights Clearinghouse
• Phone: (619) 298-3396
• Web: www.privacyrights.org
• U.S. Dept. Of Justice, identity theft info, www.usdoj.gov/criminal/fraud/idtheft.html
• U.S. FBI, identity theft information, http://norfolk.fbi.gov/1999/ident.htm
• Identity Theft Survival Kit. Phone: (800) 725-0807. Web: www.identitytheft.org
• Fight Identity Theft, www.fightidentitytheft.com
Board of Governors of the Federal Reserve (Federal Reserve). The Federal Reserve is the nation's central bank. It sets monetary policy, regulates bank institutions, and provides financial services to the government and the public.
Federal Reserve
Consumer & Community Affairs
20th & C Streets, N.W. Stop 801
Washington, D.C. 20551
(202) 452-3693
www.federalreserve.gov/pubs/complaints
Office of Thrift Supervision (OTS). The OTS is an agency of the U.S. Department of Treasury. OTS regulates state-chartered thrift institutions such as savings banks and savings and loan associations.
OTS, Consumer Complaints
1700 G. Street, N.W.
Washington, D.C. 20552
(202) 906-6000
www.ots.treas.gov/pagehtml.cfm?catNumber=88
Office of Comptroller of the Currency (OCC). The OCC is an agency of the U.S. Department of Treasury. This agency charters, regulates and supervises all national banks as well as the federal branches of foreign banks.
OCC
Customer Assistance Group
1301 McKinnley St., Suite 3710
Houston, TX 77010
(800) 613-6743
www.occ.treas.gov/customer.htm
National Credit Union Administration (NCUA). The NCUA regulates and conducts examinations of federal credit unions, which are nonprofit, cooperative financial institutions owned and run by members.
NCUA
1775 Duke Street
Alexandria, VA 22314
(703) 518-6330
www.ncua.gov/talk2ncua/talk2ncua.html
Federal Trade Commission (FTC). The FTC investigates consumer protection and consumer fraud matters that are not specifically within the jurisdiction of another federal agency such as the SEC. The FTC's consumer protection jurisdiction includes debt collection, credit reports, lending, telemarketing, credit repair services and much more. To file a complaint with the FTC's Office of Consumer Protection, write, call, or contact the agency online:
Federal Trade Commission
600 Pennsylvania Ave., N.W., CRC-240
Washington, D.C. 20580
(877) FTC-HELP (877-382-4357)
www.ftc.gov/ftc/consumer.htm
The FTC has published numerous guidelines on GLB (Gramm-Leach Bliley Act) for consumers and businesses.
See:www.ftc.gov/privacy/glbact/index.html
To find the address and telephone number of the Insurance Commissioner in your state, write, call, or connect online with the National Association of Insurance Commissioners:
NAIC
2301 McGee Street, Ste 800
Kansas City, MO 64108-2604
(816) 842-3600
www.naic.org
Laws
• Financial Services Modernization Act (GLB), 15 U.S.C. §§6801-6810
www.ftc.gov/privacy/glbact/glbsub1.htm
• Fair Credit Reporting Act (FCRA), 15 U.S.C §1681 et. seq.
http://www.ftc.gov/os/statutes/fcra.htm
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