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A great idea: Bring some sunlight into Oregon's tax picture                        (2018 Initiative 25)

5/29/2018

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Here's a measure that everyone who is anywhere on the political spectrum can support -- require that publicly traded corporations submit their Oregon tax data to the Secretary of State so that we can all understand who pays what. Note that there is a three-year delay built right in, so that competitors won't be able to use the data to disadvantage any corporation.

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Initiative Petition 25 requires publicly traded corporations to provide to the Secretary of State a public report of their Oregon taxes.

Corporations make billions of dollars here in Oregon, but pay fewer taxes here than in any other state. The result? Oregon’s families and small businesses pay more than their fair share in taxes, and our schools and basic family services are underfunded.

For years, advocates have worked to make Oregon’s tax system more fair, but corporations have proven willing to spend tens of millions of dollars to avoid even small increases in the taxes they pay. Year after year, corporations and large business associations make wild claims that local businesses will pay the price for any new tax increase — ignoring the fact that small and local businesses currently pay a higher tax rate in Oregon than some of the world’s biggest corporations.
IP 25 brings truth to the debate about corporate taxes. It requires that publicly traded corporations in Oregon reveal the same tax information about their Oregon taxes that corporations do for their federal taxes.

Key provisions of the measure:

  • Requires companies that must publicly report their taxes nationally to report their state taxes to the Secretary of State
  • The reports would be made public on a website, similar to ORESTAR
  • The required information would mirror the required information these companies provide to the federal government, and would not require companies to gather additional data
  • The report goes to the Secretary of State to avoid conflict with privacy laws around taxes
  • There would be a penalty, limited by the size of the company and capped at $1 million, for not reporting
  • The reports would not just include taxes owed, but also tax credits
  • The information would be delayed by three years to make sure that “company secrets” are not revealed by tax decisions
Oregon Needs Corporate Tax Transparency

Oregon can’t wait for investments in schools and services, and those investments rely on corporations paying their fair share in taxes. If Oregon lawmakers better understood who paid taxes and who did not, they could more fairly design a tax package that would benefit Oregon families and boost Oregon’s economy.


IP 25 provides transparency and honesty to a tax discussion that badly needs it. With an understanding of the taxes corporations pay, we can take an important step in making Oregon’s schools and services as good as families deserve.


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Interesting Questions About New Car Sales Laws (Funny but Profound)

5/29/2018

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Help Keep the Sun Shining on Consumer Complaints Database

5/29/2018

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https://www.consumeradvocates.org/we-need-your-help-tell-cfpb-keep-complaint-database-open-public

We Need Your Help - Tell the CFPB to Keep the Complaint Database Open to the Public

The Consumer Financial Protection Bureau —created by Congress after the 2008 financial crisis to help consumers fight back against unfair and illegal banking and lending practices – is under new leadership, and they are threatening to take down the important online public consumer complaint database.


Consumers across the country have submitted more than 1 million complaints against banks, lenders, debt collectors, and credit reporting agencies to the consumer complaint database. 

Before the CFPB, consumers’ complaints against powerful banks and lenders fell on deaf ears. Some harmed consumers had virtually no place to go to report grievances.

The CFPB needs to hear from us now. Tell the CFPB to Keep the Public, User-Friendly Consumer Complaint Database (See Our Model Letter). ​

The new leadership at the CFPB has asked for feedback, and signs indicate that they want to shut down public access to the complaints.

Consumers will no longer have a way to review complaints and research the conduct of banks, lenders, debt collectors, and other financial institutions.

Submit A Letter: Tell the CFPB to Keep the Database Open and Available to the Public. 

The CFPB built a great tool that empowers consumers like us to share our grievances with not just the agency but also with fellow customers of our banks and lenders.  

We can’t let this “new” CFPB take the public complaint database away from us. Let’s fight for it together.



29 May 2018

Monica Jackson
Office of the Executive Secretary
Consumer Financial Protection Bureau
1700 G Street NW
Washington, DC 20552

Submitted VIA: https://www.regulations.gov/comment?D=CFPB_FRDOC_0001-0603 (link is external)

Re: Consumer complaints, Docket ID: CFPB-2018-0006

Dear Ms. Jackson:

As you can probably tell, I am here to leave a comment in response to an effort by those opposed to hiding consumer complaint data. It's astonishing and depressing that the CFPB would even consider such a counterproductive idea. I hope CFPB will come to its senses and KEEP the complaints database accessible and doing what it does -- helping consumers identify the businesses to scrutinize extra closely.

Barely a day goes by when we don't find yet another major consumer-facing business that has abused its customers in one way or another. The CFPB database is invaluable to helping those consumers and to the competing businesses.

Thank you for the opportunity to comment on the Consumer Financial Protection Bureau’s (CFPB or bureau) Request for Information regarding consumer complaints.

Since it opened its doors, the CFPB has worked hard to make sure that banks, lenders, and other financial companies follow the law and are punished when they are caught cheating and ripping off consumers. The CFPB should keep up its good work to protect consumers from illegal fees and charges, fraud, deception, and other bad behavior.

I urge the CFPB not to make changes that would weaken the bureau’s ability to do its job. For example, the CFPB is reviewing many of its important functions, but it looks like an attempt to change how the agency works. Do not hurt the CFPB’s role as a watchdog for consumers like me in our dealings with banks, lenders (of mortgages, student loans, payday loans, car loans, etc.), debt collectors, and credit reporting agencies.

I am very concerned about the CFPB’s future plans for how it will treat consumer complaints. The CFPB has built a dynamic online complaint database that helps millions of us across the country who have encountered problems with financial companies. Currently, we can file complaints with the CFPB against financial companies, and the companies have the opportunity to respond to each complaint. Banks, lenders, and others have fixed problems with their products and services because of complaints sent to the CFPB.

People who file complaints can also choose to make their disputes available on the public online database, while it shields and protects their private information. This option has allowed other members of the public to go online to review complaints and learn whether a company has a good record of fixing problems.

I strongly support the CFPB’s public consumer complaint database. It is one of few options available for consumers to address problems with financial companies. I urge the CFPB to keep this tool available for the public to share our experiences with unfair and illegal financial practices. The complaint database should remain open and available for us to go online to review other complaints. The bureau should: make the database more user-friendly for consumers; make it possible for consumers to see how individual companies handle complaints; and require timely, tailored responses from the companies that are complained about.

Individual consumers like me have little power against bad actors in the financial industry, but the complaint database gives us some power because we can report and receive important information that helps us in our daily financial lives.

Thank you for considering my views.

Sincerely,
John Gear

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Reverse Mortgage Primer: Read this before doing anything else on one

5/24/2018

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Another good article in the new National Consumer Law Center series of pieces written to help non-lawyers understand consumer legal issues better. NCLC is a great outfit that helps consumer attorneys help real people all over the US.

A Reverse Mortgage Primer: Consumer Advice from NCLC
Sarah Bolling Mancini

This is the second in a series of articles from NCLC that provide advice for families in financial difficulty. (The first article was “Dealing with Medical Debt.”) 

This article focuses on reverse mortgages, including:
* who should consider a reverse mortgage;
* how reverse mortgages work;
* the foreclosure risks;
* the impact on spouses, partners, and heirs; and
* whether taking out a reverse mortgage is a good idea.


Reverse Mortgages Overview

For households struggling to pay all their bills, and where at least one of the homeowner’s is 62 years old or older, one option to consider is a reverse mortgage. A reverse mortgage differs from a traditional mortgage because the borrower receives a lump sum or a stream of payments, but does not make monthly payments on the loan. Instead, over time the balance due on the reverse mortgage grows, as the monthly interest and other fees are added to the loan balance. The loan is called a “reverse” mortgage because the balance goes up over time, instead of going down. No payment is due on the reverse mortgage until the borrower dies or moves out of the home, at which time the full loan balance becomes due.


A reverse mortgage can provide cash to the homeowner, eliminate payments on a preexisting mortgage, and allow the homeowner to remain in the home (as long as the homeowner can pay for property taxes, insurance, and necessary repairs). Contrary to some misconceptions, the borrower on a reverse mortgage is still the owner of their home, although the lender will be permitted to foreclose if the loan is not paid off within a period of time after the borrower’s death.
Reverse mortgages are not for most homeowners. They are expensive—high closing costs and interest rates higher than standard prime mortgages. Once the equity has been drawn down through a reverse mortgage, it may not be possible to draw against the home again to pay for necessary expenses, such as home health care. Worst of all, some reverse mortgages are scams, so borrowers should get all the information up front and seek independent advice before signing on the dotted line.


Who Should Consider a Reverse Mortgage?Most reverse mortgages are insured by the Federal Housing Administration (FHA) under its Home Equity Conversion Mortgage (HECM) program. There are only a very small number of reverse mortgage loans made by private lenders outside of the HECM program. You are only eligible for a HECM (government insured) reverse mortgage on your home if you meet all of these requirements:


  • • You are at least 62 years old;
  • • Your home is worth significantly more than any outstanding mortgages on the home.
  • • Your home must be your principal residence, where you reside the majority of the year.
  • • You are not delinquent on any federal student loans or other federal debt.
  • • You have the financial resources to make timely payments on property taxes, insurance, homeowner association fees, and the like.
  • • You have a counseling session with an independent HUD-approved counselor.
The home itself must be one of the following:
  • • A single family home.
  • • A manufactured home meeting FHA requirements.
  • • A HUD-approved condominium project.
  • • A two-to-four unit home and you occupy one of the units.

Even if you meet all these requirements, a reverse mortgage may not be right for you—depending on your financial situation, it may actually be the wrong choice. If after reading this article, you are still interested in a reverse mortgage, the first step is to meet a reverse mortgage counselor approved by the U.S. Department of Housing and Urban Development (HUD). This counseling is required before moving forward with a loan application with any lender participating in the HECM program.

Find a counselor by calling 800-569-4287 or by going to https://www.hud.gov/program_offices/housing/sfh/hecm/hecmlenders.


Counseling is required, but it is also important to help you understand the reverse mortgage product. A counselor will help you weigh other financial and loan options, the costs and benefits of a reverse mortgage, its impact on your eligibility for federal and state benefits, and how the reverse mortgage affects others in the household and your heirs. If you do not fully explore all these issues with the HUD-approved counselor, you should seek alternative counseling sources, because the reverse mortgage decision can be very complex and will have a significant effect on your future.


You should be highly skeptical of any reverse mortgage offered you that is not in the HECM program or that does not involve a HUD-approved counselor. In fact, California and a few other states require counseling prior to obtaining any reverse mortgage.


You also should be very wary of any reverse mortgage lender that is aggressively pitching to you through advertising or over the telephone. Lenders sometimes push reverse mortgages on borrowers without accurately describing all of the downsides of the loan. After talking to a HUD-approved counselor, reach out to a lender participating in the HECM program. A list of such lenders is available on https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist.


How a Reverse Mortgage WorksA reverse mortgage loan is secured by your home, like any mortgage, meaning the lender can foreclose if the loan terms are violated. Unlike most mortgages, there are no monthly payments on the reverse mortgage loan. Instead the loan comes due (with interest) upon a triggering event, typically the borrower passing away or permanently moving out of the home.


There is a limit to how much you can borrow on your home, called the “principal limit.” Your principal limit will be higher the older you are, the higher the value of your home (after subtracting current mortgage balances), and the lower current interest rates are. If you are married or own the home with another person, the principal limit is based on the younger of the two of you.


Your ability to obtain a reverse mortgage is much less tied to your credit score than a traditional mortgage, and you should not be refused a reverse mortgage or pay higher interest because you have low income or a blemished credit rating. Since there are no monthly payments on the loan itself, the lender is not concerned about your ability to make such mortgage payments.


The lender will be checking to see that you have the resources (either on your own or through the reverse mortgage loan) to keep up with certain “property charges”—your property taxes, homeowner’s insurance, any homeowner association (HOA) dues, and necessary home repairs. You are required to pay these property charges during the term of the reverse mortgage. Failure to pay them will result in foreclosure and loss of the home. Many people have gotten into trouble on their reverse mortgage loan because they’re not used to paying the property taxes or insurance once a year when they come due, especially if they had a standard mortgage previously that collected the money through an escrow. It is important to understand this obligation to pay the taxes and insurance yourself, and to set aside the necessary funds.


There are a number of ways you can receive the proceeds from a reverse mortgage loan. If you have a preexisting mortgage on your home, the reverse mortgage loan proceeds first will be used to pay off that mortgage. If your present mortgage balance is high, paying off this mortgage will significantly reduce what is available to you from your reverse mortgage loan. On the other hand, the reverse mortgage will free up your cash since you will no longer have to make mortgage payments on the preexisting mortgage. Remember, you will still have to pay property taxes, homeowner’s insurance, necessary repairs, and other home-related expenses.


After paying off any existing mortgage and any other liens on the house, the rest of your reverse mortgage loan can be paid to you in any of the following ways:


  • • One large payment of the full principal limit given to you in cash. This almost never makes sense. Instead, delay receiving as much of your reverse mortgage proceeds as possible to help you pay for future expenses—such as unexpected home repairs, health care expenses, and other emergencies.
  • • A fixed monthly payment paid to you for a set period of time. This is called a “term” plan.
  • • A fixed monthly payment (smaller than the “term plan” amount) that will be paid to you like an annuity for as long as you survive and live in the home (called a “tenure” plan).
  • • As a line of credit to be drawn at your convenience. Only draw down what you need, and then interest and fees will only accrue on what you draw on. Not only will the remaining principal limit be available for you for future use, but that limit will increase over time. The line of credit option may also be combined with a term or tenure plan.

Your reverse mortgage loan balance (how much you owe) is based on how much the reverse mortgage lender pays you, including paying off your mortgage and any other loans. Also added to the loan balance are any upfront closing costs similar to a regular mortgage—origination fees, real estate closing costs, and an initial mortgage insurance premium. As the lender gives you more money, your loan balance with the lender goes up. The balance also goes up each month with interest charges, mortgage insurance premiums, and servicing fees being added to the balance.


The loan balance eventually must be repaid either when you pass away or when you move out of the house. The balance can be paid off by selling your home, by refinancing, or by letting the lender foreclose. If it is sold at foreclosure for more than the reverse mortgage loan balance, your heirs get to keep the difference. If it is sold for less, your heirs will not have to pay anything, because the difference is covered by mortgage insurance.


You can also sell your home before you pass away or move out, and if you do, you would be able to keep the difference if the sale price is greater than the reverse mortgage loan balance at the time of sale. If the house is sold through a foreclosure or short sale for less than the loan balance, you will not owe anything, again because of the mortgage insurance.


Reverse Mortgages Are Still Subject to Early Foreclosure


A reverse mortgage lender may foreclose on your home if you do not keep up with property taxes, homeowner’s insurance, homeowner association fees, and the like. If you fail to pay these charges, the lender may pay them for you and, if you can’t repay the lender in a relatively short time period, may foreclose. At the time you take out the reverse mortgage, if the lender determines that you do not have the ability or willingness to pay these property charges, they may require you to set aside funds from the available reverse mortgage’s principal limit to pay these expenses during your expected loan term.


You must keep your home well maintained or risk foreclosure. At the time you take out your reverse mortgage, the lender will tell you which repairs you must make. The lender may even set aside some of your borrowing limit to ensure the repairs are made. The lender may then foreclose if you do not make the required repairs. You also later may have to keep the home up to standard if the home deteriorates over time or is later damaged. Where the needed repairs are caused by a fire or other covered incident, your homeowner’s insurance should help pay.


If you are absent from your home for the majority of the year, your loan may become due and the lender may foreclose . If your absence is health-related, you can be absent for a full year before foreclosure can begin. For example, the loan will become due if you move to another home or permanently move to a nursing home.


In a foreclosure, the lender will sell your home. If it is sold for less than your current loan balance, you will not owe the difference. If it is sold for more than the loan balance, you or your heirs will get the surplus funds.


What About My Spouse or Partner?


Usually you should add your spouse or partner as a co-borrower on the reverse mortgage. Then you both are responsible for the loan and both receive the benefits. As a co-borrower, your spouse or partner will be able to live in the home even if you no longer live there, such as if you have to move to a nursing facility. Even after you pass away, the co-borrower will be able to draw funds from an available line of credit (if the reverse mortgage is structured that way), as long as he or she remains in the house.


According to HUD rules (after August 2014), a spouse who is not a co-borrower on the reverse mortgage is still protected and can remain in the home after the borrower leaves the house or passes on. The spouse has to be living with you continuously from when you took out the loan until when you pass on or leave the home. Also you have to have been married before you took out the loan. Even then, a non-borrowing spouse cannot receive loan proceeds after the borrower dies, which is a problem if you have been relying on such payments to make ends meet.


Is a Reverse Mortgage a Good Idea?


A reverse mortgage is not a good idea for most people, and much depends on why you need the money. Reverse mortgages do not make sense to just pay off old credit card bills or medical debt, that may no longer even be charging interest and where the collector may never even sue you for the money.


On the other hand, the inability to pay your car loan, utility bills, or your regular mortgage can have devastating consequences, and the costs of a reverse mortgage may make sense if these risks are at play. But even then, the NCLC Consumer Debt Advice series will provide you with other advice on dealing with these obligations, often making resort to a reverse mortgage unnecessary. You might also consider a reverse mortgage if you are in a cycle of paying enormous amounts of interest (hundreds of percent interest) on a series of small loans that add up to thousands of dollars of interest being paid every year—a reverse mortgage is usually a far cheaper alternative.


Proceed with caution. Once you take out a reverse mortgage, you may not be able to borrow on that value again (depending on whether home values go up), when in the future you might need that home equity to pay for home health care, for example. Other potential drawbacks to a reverse mortgage include:


  • • Reverse mortgage closing costs can be very high. Shop around for the loan with the smallest total fees. A reverse mortgage will be most costly, relatively speaking, if you continue to live in your home for only a few more years after taking out the loan.
  • • The amount of cash you get may not meet your needs. A 65-year-old whose home is worth $50,000 after deducing the outstanding mortgages may get only around $150 per month on a tenure mortgage. (This calculation depends on a variety of factors, including interest rates, home value, and the amount of the closing costs.) You are still responsible for paying the property taxes, insurance, general up-keep of the property, homeowner association fees, utilities, and other home-related expenses.
  • • You are paying interest, insurance, and servicing fees on a reverse mortgage loan, so that even if you do not draw down a lot of money, over time this loan obligation will grow. Then if you want to sell your home, you have to pay off a surprisingly large loan balance. It may mean that when you decide to sell, you have almost no remaining equity.
  • • A monthly reverse mortgage payment is not considered income. But if the loan proceeds are taken as a lump sum, while that money is in the debtor’s hands it can be treated as an asset that could affect eligibility for means-tested government benefits like Supplemental Social Security Income, Medicaid, or food stamps. (Social Security payments are not affected.) Check with your benefits provider before taking out a reverse mortgage loan.
  • • Some shady lenders offer very unfair reverse mortgages or conventional mortgages that look like reverse mortgages. Only work with a reputable lender in an established program. As a rule, only sign up for a HECM reverse mortgage.
  • • A reverse mortgage may make it difficult to pass your home on to your heirs after your death. If your heirs want to keep the home they will need to pay off the amount due on the reverse mortgage. This is different from a regular mortgage, for which your heirs could simply keep making the monthly payments. At the time of your passing, the balance of the reverse mortgage may have grown to the point where there is little or no equity left to leave to your heirs. Using your home equity now and leaving less for your heirs may be the right decision if you need money now, but be aware of what it may mean for the future.

How Does a Reverse Mortgage Stack Up Against a Traditional Mortgage, Refinancing, or Home Equity Loan



There are other options beside a reverse mortgage to use your home as collateral to obtain loans to pay off your obligations—refinancing a first mortgage, a first or second mortgage, or a home equity line of credit. A reverse mortgage’s advantage is that there is no monthly payment and the underwriting is looser as far as your income and creditworthiness. The lender is not concerned whether you can make mortgage payments, and just wants to ensure you can pay for property taxes and insurance, either out of the reverse mortgage loan proceeds or otherwise. Also, upon foreclosure, with a reverse mortgage there is no risk of you or your heirs being required to pay a deficiency if the home is worth less than the mortgage’s outstanding balance.


Interest rates and mortgage insurance for a reverse mortgage are generally higher than for other types of mortgages. With the exception of your spouse or your co-borrower, once you pass on or leave the house, those remaining in the house cannot stay—the house will be sold.

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JFK: "Those who make peaceful revolution impossible will make violent revolution inevitable.”

5/23/2018

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Just something to consider as the Supreme Court keeps up its tireless march to crush real people --  flesh and blood Americans -- under the heel of unlimited corporate power and a privatized, secret "justice" system.  The ghost of Justice Powell looks up from the fires of Hell and smiles broadly.

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Got Medical Debt?  Read this.

5/17/2018

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Hardly a day goes by in my practice that I don't rely on resources or refer someone to resources produced by the National Consumer Law Center. They are starting a series of guides for consumers, and they picked a good one to start with. They "encourage readers to share this article with clients, counselors, and others working with families in financial distress" so if you know someone struggling with medical debts, please pass this along.

Dealing with Medical Debt: Consumer Advice from NCLC
by Jenifer Bosco

This is the first in a series of articles from NCLC that provide advice for families in financial difficulty. The Consumer Debt Advice series, targeted directly to the consumer, includes information about legal rights and best strategies for dealing with debt. Readers are encouraged to share these articles with individuals who may benefit—clients, counselors, community groups, clergy, and others.

Don’t Pay Medical Debt Ahead of Other Debt or Borrow to Pay Medical Debt

Most families encountering financial difficulty have overdue medical debt. You should treat medical debt as a low priority debt to be paid only after you pay more pressing types of debt, such as your mortgage, car loan, or criminal citations. Almost any other type of debt will be more pressing—medical debt should typically be your lowest priority.

Similarly, never pay medical debt by incurring other debt. The worst thing you can do is take out a second mortgage to pay off medical debt. Also don’t put medical debt on your credit card, even a “medical” credit card, unless you can pay the card and all your other obligations that month.

Unlike credit card debt, medical debt will typically carry low or no interest payments and ate charges. While the medical debt may eventually end up on your credit report, it will not show up for at least six months. Delinquent credit card debt affects your credit score immediately. You are also less likely to be sued on medical debt than credit card debt. Medical debt can go unpaid for long periods of time without any significant adverse consequences.

Nonprofit hospitals have written policies to reduce or even eliminate certain medical charges if you are eligible for financial assistance. Many states have laws that reduce or even eliminate medical debt for eligible families. Whether or not you qualify for such financial assistance, health care providers are often more willing to reduce the amount of a delinquent debt where you can show financial hardship.

Once you put medical debt on your credit card, you lose all of these opportunities.

Some doctor or dentist offices may encourage you to sign up for a special credit card to pay your medical bills, but these cards are usually not a good choice for paying medical bills. The credit cards often have high interest rates or unfavorable terms. You lose the option of negotiating with your health care provider over the bill. Using this type of card turns your medical debt into credit card debt.

Medical debt’s status as a low priority debt does not mean that one should ignore medical debt. You have special rights concerning medical debt, and it is important to know these rights to be able to reduce the amount of your medical debt and its adverse consequences.

Debt Collectors and Medical Debt

Hospitals and other health care providers are quick to turn over medical debt to debt collection agencies—some will do so after a month or two, while others may wait six or more months. The job of these debt collectors is to try to get you to pay medical debt even if this is not in your best interest.

They will push you to put medical debt on your credit card—don’t fall for that. They will try to get you to pay these bills ahead of more important bills, such as your rent or home mortgage. They will threaten to ruin your credit rating, but they may not even report the collection effort to a credit reporting agency. If they do report the debt, the reporting agency will not even include the debt in its reporting unless it is over six months old. Just as importantly, paying your medical bill instead of your mortgage or car loan will end up damaging your credit report a lot more than not paying your medical bill.

Debt collectors also will call you and constantly press for payment. But this is easy to stop, particularly for medical debt. Few hospitals and health care providers will be collecting on their own debt, but will instead hire third-party collection agencies. Under federal law these agencies must stop contacting you if you simply send them a letter telling them to stop.

Another approach to avoid debt collection harassment is to contact the hospital or health care provider early about your inability to pay, before the matter is turned over to a collection agency. Explain that you are unable to pay at present and that you will not pay the collection agency either. Since the health care provider must pay the agency, the provider may be better off waiting for you to pay the provider directly when your financial situation improves. Preventing your debt from going to a collector will also help your credit standing because typically only collection agencies and not medical providers report your debt to a credit bureau.

Limits on Credit Reporting of Medical Debt

Virtually no medical provider will report your debt to a credit bureau. Instead, when your debt is eventually handed over to a collection agency, that collection agency may (or may not) report the debt to a credit bureau.

In addition, in almost all cases, your credit rating is determined by one of the three major national credit bureaus. All three of these agencies have agreed not to include any medical debt in your credit report if the debt is less than 180 days delinquent when reported to them. This means that medical debt will not affect your credit rating unless a provider’s collection agency makes a new report to a credit bureau after the debt is over 180 days old.

Can a Hospital Turn You Away If You Owe It Money?

If medical debt goes unpaid for a period of time, a hospital or other health care provider may decide to stop providing you services. In some areas, you may have few other options for medical care, but in other locations you should be able to find other health care providers to take care of your family. That you own money to one hospital or one health care provider should not prevent you from obtaining services from other hospitals or providers. This will particularly be the case with public hospitals and community health centers.

Even if you owe a hospital for past due bills, the hospital cannot turn you away from its emergency room. This is your right under a federal statute called the Emergency Medical Treatment and Active Labor Act (EMTALA).

If you request financial assistance from a nonprofit hospital, the hospital cannot deny you care in any part of the hospital because of an old bill until it determines whether you are eligible for financial assistance. You usually have about eight months (240 days) from when you first received the old bill to request such financial assistance.

If you are a Medicaid recipient and you owe a doctor or other health care provider for co-payments or deductibles, Medicaid prohibits health care providers from denying you future services.

Correcting Your Medical Bills

One way to reduce a medical debt is to review it carefully for errors and unauthorized charges. Also review any explanation of benefits (EOB) form you receive from your insurance company to see if it is consistent with the medical bill. If you see errors, contact the health care provider or your insurance company to have the erroneous charges taken off your bill.

Check also for charges based upon unauthorized balanced billing. The EOB may disallow a portion of the health care provider’s bill, pursuant to its agreement with the provider. Balance billing is when the health care provider bills you for the disallowed portion of the bill. Balance billing is prohibited in certain states.
If you have Medicare or Medicaid, providers are usually not allowed to bill you for rates higher than what these programs are willing to pay. They can only bill you for copays and deductibles. If you have both Medicare and Medicaid coverage and are enrolled in a Qualified Medicare beneficiary program, providers are usually not even allowed to bill you the Medicare co-pays and deductibles.

If you receive a bill that you believe should be covered by insurance, Medicaid, or Medicare, contact your insurer to find out why the service was not covered. You may need to contact your health care provider also. If the insurance company made an error, they might be able to fix it when you call.

If your insurance company, Medicaid, or Medicare will not pay for a service that you needed, you have a right to appeal. Call your insurer and tell the insurer that you want to appeal their decision. Do this as soon as you can before the deadline for requesting an appeal. Contact your state insurance commissioner or state attorney general’s office if you need assistance.

Requesting Financial AssistanceFederal law requires nonprofit hospitals to establish policies for offering patients financial assistance, such as free or discounted medical services for eligible patients. The policies and how to apply for financial assistance must be in writing and available from both the hospital and on the hospital’s website.

Hospitals often charge an uninsured patient high “retail” prices for services, but charge significantly less for the same service to a health insurer, Medicare, or Medicaid. If you are eligible for financial assistance from a nonprofit hospital, the hospital should not charge you the “retail” price but instead should charge a price similar to what it charges insurance companies, Medicare, and Medicaid. The hospital even has to go back and reduce bills you received even before you established eligibility for financial assistance.

Federal law does not otherwise specify standards for financial assistance, but about half the states have medical debtor protection laws that specify who, based on family income, is eligible for financial assistance and what type of assistance a hospital must offer. For example, the hospital may have to offer an interest-free installment plan, reduced cost medical care, or even free medical care. The hospital’s financial assistance plan will set out exactly the type of financial assistance that it provides to those who are eligible.

In at least some states you can also apply for Medicaid and if you are found eligible, Medicaid will cover retroactively medical bills incurred over the last three months. This retroactive coverage is not available in every state.

Other hospitals or health care providers may agree to reduce bills based on your financial hardship even if not required to do so by federal or state law. Explain your financial situation and that you will pay when you are financially able. You can ask for a payment plan, but do not agree to a payment plan if you cannot afford the payments. There also are charities and other programs that may help pay for some of your medical bills.

Will a Health Care Provider Sue You for Unpaid Bills?

A hospital or other health care provider is less likely to sue you to collect on an overdue bill than are most other creditors, such as credit card companies. This is particularly the case for relatively small medical bills. In addition, if you request financial assistance from a nonprofit hospital, the hospital cannot start a collection lawsuit against you until it determines whether you are eligible for financial assistance.

If the hospital does sue you, you may be able to defend the lawsuit by arguing the medical bills are not reasonable. In most cases, patients do not agree to a price for medical services ahead of time, and the hospital or physician bills you for whatever price it decides to charge. Some judges may be sympathetic to your argument that the hospital charged you a higher price than the hospital charges to insurance companies, Medicare, or Medicaid. If you raise this in the lawsuit, the hospital or other health care provider may even settle with you for less rather than try to prove that its charges are reasonable.

Only if the medical provider sues you and the court rules in the provider’s favor does the medical bill then become a high priority debt. Only then can the provider seek to garnish a portion of your wages and seize funds from your bank account.

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Great Tale from the Trenches of Foreclosure Defense

5/17/2018

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Mike Shurtleff is a good attorney here in Salem who fights on the side of real people. He wrote and posted a great article on LinkedIn describing just another one of the many ways that homeowners can be taken to the cleaners as part of the great real estate scam that modern America has become. He also links to another rundown on the scheme by Willamette Week.

Mike doesn't tackle this directly, but his story reminds me of perhaps the hardest things I see in my practice -- people who don't come see a lawyer even when they're in the middle of the fight of their lives and they're facing battalions of lawyers on the other side, and who had a fixable problem -- before they started trying to take care of it themselves without an attorney.

I know it might sound self-serving but I don't mean it that way - I am plenty busy and not trying to drum up business.  But I just want you to know: if you are falling behind on your mortgage or getting screwy statements that suggest your mortgage servicer isn't crediting your payments properly, or you have received ANY letters from ANYONE suggesting your home loan could be in default, you need to find a lawyer to help you understand what's going on, and what will happen. Not a notario, not a friend of a friend who went to law school but doesn't practice, not a paralegal, but a real, licensed attorney who does foreclosure defense (like Mike, for example).

Sure, there are books you can find discussed on Internet Law School about how the brave lone homeowner successfully ran off the criminal gang of bank thieves, but generally, what happens in those situations (where the homeowner tries to DIY their own mortgage defense) is that they wind up as roadkill on the foreclosure freeway with the lender happy as a clam that the homeowner didn't bring in a real attorney and slow down the foreclosure machine.

Sometimes it's even worse: the poor homeowner starts the DIY thing, lets a bunch of deadlines pass, and then finally realizes that they are over their head and the DIY thing isn't working and comes to see an attorney -- too late.

Even if you think you can only afford a single consult, make it the FIRST thing you do, AS SOON AS you get that very first letter from someone telling you that your home might be foreclosed.
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The Most-Infuriating Scams of All: Interstate Movers

5/12/2018

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 The New York Times has an article today on interstate moving: Hire Interstate Movers Without Getting Scammed

The writer uncritically recommends checking out your mover on the Better Business Bureau site, which is not that helpful in reality. Far better to consult with the Federal Motor Carrier Safety Administration website AND also the attorney general's complaint hotline in your own state and in the home state for the carriers (note the plural) you are considering.

For example, you can search for moving company' complaints reported to the Oregon AG on her website.

NEVER rely just on a BBB check or just on the moving company's own website or its claims about testimonials from past customers.

Here's an old post from this blog that I think still holds up pretty well:Planning an interstate move? Read this before you contact ANY moving companies.

Here's the best tip from the NY Times article:


Vet the moving companies

Once you have a list of recommendations, look deeper into each one. You will need the company’s name, its U.S. Department of Transportation (D.O.T.) number and its Motor Carrier (M.C.) number. If they’re missing either number, cross them off the list — it means they’re not licensed to move property across state lines.

Search the company using their M.C. number or D.O.T. number at the Federal Motor Carrier Safety Administration’s website. The results will show you whether the company is a carrier, broker or freight forwarder. A carrier is a company that you hire directly to move your goods, while a broker will hire a carrier for you, usually for a fee. A freight forwarder takes responsibility for your goods, but will use one or more carriers to move them, sometimes consolidating smaller moves into one larger truckload.

Beyond understanding what kind of company you’re using, the safety administration website will give you the company’s most recent safety rating and insurance data, as well as the number and type of complaints that have been filed against the company in recent years. There are 14 different complaint categories, including loss and damage, weight disputes and holding goods hostage. While it’s common for a company to have a few complaints, beware of numerous complaints about delays in delivery and repeated loss and damage claims.

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Internet puts you just one click away from every criminal in the world

5/10/2018

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The internet is full of wonders, but it's also full of dangers -- especially the one most people don't think about: every criminal in the world able to access a computer might as well be right next door to you, because on the internet they are as close to you as your local scam artists and hustlers.

The photo below is of an email that was sent as a "spear phishing" attack -- where the con artist gets the gullible target (the mark) to click a link that downloads malware onto your computer. This is a pretty sophisticated version. It was good enough that there was a chance that it was just a clueless sender who didn't realize how suspicious his email looked -- so I sent him the response asking for further information. No response to my query, so I feel pretty safe in asserting that the original email is an attempt to hook me with malware.

Be careful out there folks. If you are not expecting an attachment, don't click on it until you confirm that it's legit, and be very cautious about declaring anything legit from someone sending you something out of the blue.

Remember, money never calls you on the phone, and it never magically appears in your email inbox either.
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The original "spear phishing" email hiding the hidden malware link.
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My email back attempting to allow a legit sender to recognize his mistake and clarify. Since I got no response, I know the original was, as suspected, malware.
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Corporations Are Making Real People Second-Class Citizens

5/5/2018

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This should be simple: 

Illegal contracts are illegal contracts and are void from the start
(“ab initio” in legal lingo).  

But thanks to the decades-long effort by corporations to populate the Supreme Court with justices who will give corporations equal rights as full citizens, courts now have to wrestle with whether a  predatory business entity like this loan-shark lender can trick an elderly veteran out of his 7th Amendment constitutional right to have his day in court or not.  

So while their consumer customers are fully on the hook when they screw up, the investors in this predatory company get to hide behind the corporate shield so that their yachts, BMWs, and off-shore assets are protected from liability for the company’s wrongdoing — and, on top of that, the pro-corporate activist justices have wildly expanded the reach of the Federal Arbitration Act far beyond the bounds that Congress intended, giving this loan-shark company a good chance of keeping this elderly vet from having his constitutional rights.

For more: Oregon veteran may lose access to local courthouse
Michael Fuller | May 1, 2018


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