Why You Should Never Use Your Debit Card

Scammers are everywhere, and debit cards leave your business exposed. . . .

Skimmers are a popular way for thieves to steal card numbers from gas pumps, ATMs and other machines that accept credit and debit cards. The skimmer is slipped into the card reader slot and once connected, it can not only steal the card number but also PINs and zip codes as they're entered. They're pretty tough to detect, and once a number and PIN is stolen it can be used to create counterfeit cards, make purchases over the phone and carry out other forms of identity theft, like setting up other accounts or loans in your name. . . .

The reason why Abagnale and most IT experts I know avoid debit cards deals with cash flow. If a fraudster can compromise a debit card, that person can access your cash. He or she can drain you and your company's bank account. And then you're stuck chasing. If a criminal makes unauthorized use of your credit card, your cash is still in your account.

In either case, according to the Federal Trade Commission, your liability would be no more than $500 — and more than likely considerably less — depending on when you report the theft. . . .

Read the full article from Entrepreneur magazine here: https://apple.news/Am9EeoNQVTteiFykHKUvs9g

Death Row gifting club scam prevalent in Oregon

Salem – The pyramid scheme has a new look and the Oregon Division of Financial Regulation is warning consumers to steer clear. Gifting clubs, such as Death Row, are illegal pyramid schemes that are scamming several Oregonians.

The Death Row gifting club, not associated with Death Row Records, was operating in Oregon last year. It advertised on social media and in online forums as a community wealth share group. More than 20 Oregonians lost their initial $1,400 investments. 

The Death Row gifting scheme promised financial returns of at least $9,000. The division was alerted to the scheme when an Oregonian reported not receiving anything in return for their $1,400 investment. The investment was not registered with the division and no one was licensed to sell investments in Death Row. Victims invested their money using a cloud-based payment platform and communicated with others about the investment during online forums for the Death Row program.

The division is still investigating the Death Row gift club. Anyone who has information about the scheme or was a victim of it are asked to contact the Division of Financial Regulation Advocacy team at 888-877-4894 (toll-free).

“If someone invites you to join a gifting club, just say no to their high-pressure tactics and stories of high earnings,” said TK Keen, Division of Financial Regulation administrator. “The simple reality is that only a few people profit from these schemes at the expense of everyone else who ultimately lose their investments.” 

Gifting club schemes are similar to pyramid schemes because no new money is created. Members of the scheme encourage friends, family, and co-workers to give gifts of cash to higher ranking members. The only way for a person to recover the initial investment is to bring new members into the scheme.


The division has three tips to spot an illegal gifting scheme:

•      Promises of cash, gifts, or electronic payments via mail, email, or social media
  
•      The primary focus is to recruit new investors – no goods or services are being sold
  
•      No written agreements and the promoters boast about high earnings of a few people
  

Contact the Division of Financial Regulation’s consumer advocacy team if you spot a gifting scheme or believe you are a victim of one. Advocates can be reached at 888-877-4894 (toll-free), email dfr.financialserviceshelp@oregon.gov, or by visiting dfr.oregon.gov.  



Do not become a victim of an illegal gifting scheme. Be skeptical about investment opportunities, avoid giving your personal information to strangers, and remember – if it seems too good to be true, it probably is.
For more information about investments and protecting yourself from investment fraud, visit the division’s avoid investment fraud page.


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About DCBS: The Department of Consumer and Business Services is Oregon's largest business regulatory and consumer protection agency. For more information, visit www.dcbs.oregon.gov.  


About Oregon DFR: The Division of Financial Regulation is part of the Department of Consumer and Business Services, Oregon’s largest business regulatory and consumer protection agency. Visit www.dcbs.oregon.gov and http://dfr.oregon.gov/Pages/index.aspx.

SUBJ: Warning: Transfer-on-Death (TOD) Deeds and Insurance Gaps
 
As you may recall, a TOD deed is helpful as an estate planning tool because it is a revocable deed that you record before your death that only takes effect at your death, and it passes the property to the persons you named as grantees on the deed. For many people, a house is the only asset that would require a probate, as all their financial assets are in accounts that have beneficiary assignments. A TOD deed is much like a beneficiary assignment for a financial account.
 
Recently, I have learned about a case that now makes me very reluctant to use a TOD deed, and I am writing to make you aware of the issue. Although the case occurred outside Oregon, I believe the results would be the same here.

In that recent case, an uncle used a TOD deed to leave his house to his niece. When the uncle died, his niece was unaware of the need to get the house insured in her name immediately. And, as luck would have it, the house burned down a few days later.
 
The uncle’s insurance company got out of paying for loss of the house because their policy ended the minute title to the house transferred from the uncle to the niece – which is to say, the minute the uncle died.
 
Thus, the uncle’s insurance policy lapsed as soon as the TOD deed took effect, and the house was instantly uninsured. The niece didn’t know to get insurance in effect immediately and so when the house burned down, the niece got ashes instead of a nice check from the insurance company that was collecting premiums until the uncle’s death.
 
[The actual case opinion from Minnesota is below if you care to read it.]

Although this was in the Midwest, I have done a little reading, and I now think all insurance companies would act the same way everywhere. Thus, when you die with a TOD deed recorded, your homeowner’s policy on that house will lapse.

In short, I understand it, if you use a TOD deed, you are at risk for this loss of insurance coverage if the person who gets your property under the TOD deed doesn’t immediately (a) know of your death, and (b) get a new policy in place.
 
Now, in most cases, the people you leave your house to probably will know when you’ve passed on – but it’s not a sure thing, for many possible reasons. None of us know when we will die, or where our grantees will be, or how long it will be from the time of our death until word spreads. The people we left our property to might die before us, or at the same time or be overseas or otherwise out of touch for a long time. We can’t foresee all the ways that this insurance gap could arise, especially with people living longer and longer, sometimes with failing memories.
 
Regardless of the many ways this gap in insurance could occur, it is a big risk. So I have decided to avoid writing new TOD deeds for clients until I find some way to protect against this risk. Although I really liked the simplicity and low cost of TOD deeds, I don’t like them enough to keep using them until we find a way around this problem.
 
If you too are concerned about this (as I think you should be), you should revisit your estate planning and reconsider the decision to use a TOD deed as part of your estate planning. You should consider whether the ease of the TOD deed is worth the risk that a gap in insurance coverage would occur at your death, leaving you uninsured against what can be a catastrophic loss.
 
Remember that probate is nothing to fear, especially if you have used beneficiary assignments for your other assets. A one-asset probate for a house or land is usually not too complex or too costly.

For some people, revising their will and revoking the TOD deed might be appropriate. For others, putting the real property into a trust might be appropriate. (Or selling the property and banking the money.) There are many options.

The important thing is that you take some action to ensure that your property doesn’t fall into this coverage gap. Unoccupied houses have a greater risk of loss than occupied houses, so the risk of a coverage loss with a TOD deed increases just when you need the coverage the most.
 
If you want to discuss this issue with me further, please contact my office to arrange a phone appointment.                                      
                                                                                 s/ John Gear

The author of this piece says "almost never" -- I will go further and say that should be "never" for consumers.

That is, unless you are a professional auto rebuilder, stay far away from salvage title/rebuilt title cars and trucks, period. 

They will be nothing but grief for you.

Why You Should Almost Never Buy a Salvage or Rebuilt Title Car
While a salvage or rebuilt title doesn’t necessarily mean the car is a death trap, the bad usually outweighs the good.

It may be tempting to buy a car with a rebuilt title because of its low price point, but what’s tricky is you don’t always know the extent of the damage that gave it a salvage title to begin with. 


“It’s very hard to determine if a car is back to pre-accident condition,” says Jack Gillis, executive director of the Consumer Federation of America. “I recommend just staying away from those types of vehicles.” 

Sometimes a rebuilt car can look shiny and new on the outside, but still have some serious internal problems. Flood damage is a prime example of this. Cars that have been damaged in a flood are especially dangerous to drive because it can take months or even years before the water corrodes the electric and mechanical systems. You should always ask an experienced mechanic to inspect a rebuilt car before deciding to make the purchase, but even then, it’s a risky move. 

“If a vehicle was in a flood, you can’t fix it. It’s not rebuildable. If it was wrecked so badly that it was salvaged, chances are the frame or unit body was compromised,” says Shahan. “So if you’re in a subsequent collision, it’s not going to give you anywhere near the same protection that you would’ve gotten if it was an undamaged car.” . . .

Much more at link here.

Please Help Consumers Like You --
Check Your Credit Report for Errors and Let Consumer Reports Know What You Find

Dear friends and allies,

The National Consumer Law Center is partnering with Consumer Reports to finally hold powerful credit reporting agencies accountable for errors, and we need your help.


At least one in four of us probably has an error in our credit report. And the COVID-19 financial crisis has made that bad situation even worse. So what’s the big deal about a little mistake on your credit report? It can cost you serious money. Getting a credit card, renting or buying a home — even landing a new job — can all hinge on the accuracy of your credit report.


Can you check your credit report for errors, and let Consumer Reports know what you find? 

You’ll be a key part of a groundbreaking Consumer Reports’ people-powered research project, where thousands of consumers like you use their credit report to finally hold these powerful credit agencies accountable!

CLICK HERE TO GO TO Check Your Credit Report


 We’ve made it super easy for you to do. Click the link and you’ll be taken to a page where we show you how to check your credit report for FREE. When you do, be on the lookout for basic mistakes such as a name misspelling or wrong address, to bigger mistakes like late payments that weren’t late, or even someone else’s debt on your account.
Checking your credit report is critical for your financial future. In one case, a couple almost lost out on a home mortgage because the husband’s birth date was off by one digit. Another consumer told us a ticket he got while driving a rental car was sent to the wrong address, causing it to go into collections and knocking 80 points off his excellent credit score.


Checking your report also will help us reform how the major credit reporting companies — Equifax, Experian, and TransUnion — do business. Already we know that people with monthly student loans postponed under the COVID-relief package are seeing missed payments on their credit reports, a clear violation of the law. Yet it’s almost impossible for them to get those damaging delinquent payments removed.


Check your credit report for FREE here. It will help you, and help us, make sure no one’s finances are wrecked by the credit agencies mistakes!


The more people who tell us what problems they find, the better armed we are to take on the credit bureaus. Please share this with friends and family so they get the reminder to check their credit reports, too!

Chi Chi Wu
Staff Attorney
National Consumer Law Center