With the rising number of layoffs, it is not surprising to learn that the number of employment discrimination claims that have been filed with the U.S. Equal Employment Opportunity Commission (EEOC) has increased. The EEOC is the lead U.S. government agency charged with enforcing the various federal laws that prohibit discrimination in the workplace. For fiscal year 2008, the EEOC received 95,402 charges of discrimination compared to 82,792 charges filed in 2007.
While a company is not legally obligated to offer a laid-off employee a severance package, it is not uncommon for most larger companies to offer them. In most cases, in order for the employee to receive the severance, the company will require the employee to sign an agreement where the employee waives their right to file a employment discrimination charge in exchange for the severance. Other conditions can include a non-compete agreement and/or non-disclosure agreement. Under the Older Workers Benefit Protection Act (which is incorporated into the Age Discrimination in Employment Act), an employee aged 40 or over has 3 weeks to consider whether or not to sign any type of post-employment document.
As these severance agreements are legally binding documents, it is a good idea to have an employment attorney review it before you sign. In addition to advising you of your rights, the attorney might be able to negotiate a better severance package for you.
Monday, March 23, 2009
Thursday, March 19, 2009
Monday, March 9, 2009
Your Credit Report
What information is contained in a credit report
Your credit report contains information about your credit worthiness to potential creditors, such as credit card companies, mortgage companies, auto finance companies, and other businesses that you might seek credit from. The information in your credit report contains information about all credit that you have applied for in the last 7 years and details how long an account has been open and the payment history.
There are 3 major credit reporting bureaus that maintain credit reports on you – TransUnion, Equifax, and Experian. However, the information contained in your credit report is not necessarily the same from TransUnion, Equifax, and Experian. Also, when you apply for credit, the potential creditor will not necessarily look at all 3 credit reports, but usually only 1 or 2. The higher your credit score, the lower the interest rate that you will pay. A separate company called Fair Issac calculates your credit score, based on the information contained in your credit reports.
How to get a copy of your credit report
You can get a free copy of your credit report every 12 months from TransUnion, Equifax, and Experian. If you have access to the Internet, the fastest and easiest way is via the Federal Trade Commission’s website Annualcreditreport.com or via phone at 877-322-8228 or by printing out the request form and mailing it in. Do not be fooled by ads saying you can get a “free” copy of your credit report from Freecreditreport.com or other websites. It is not free – you have to give them a credit card number and sign up for their “credit monitoring” service!
How to correct inaccurate information in your credit report
Once you get your credit report, it is important to make sure that all the information is accurate. Sometimes, an account that does not belong to you will appear on your credit report, because of a similar name or social security number. In addition to making sure all the accounts listed are yours, make sure that your accounts are being reported accurately for example, if an account is marked as “open” when you really closed it years ago.
You can dispute inaccurate information in your credit report by writing a letter to the credit bureau and stating why you believe the information is incorrect. The address to send the dispute to is generally located at the end of the credit report. In your dispute letter, you should enclose a copy of your driver’s license or other form of identification and a copy of the credit report that you believe are inaccurate. Make sure to keep a copy of all information that you send (including the dispute letter) and send the dispute letter and supporting documentation via certified mail, return receipt requested and also via regular mail. Send a copy of your dispute letter to the company who placed in the inaccurate information in your credit report too.
Consumer credit reports are governed by the Fair Credit Reporting Act 15 U.S.C. § 1681, et seq. The Act requires that not only the credit bureaus (Experian, TransUnion, and Equifax) report accurate information, but also that the creditor provide accurate information about the consumer. Once you send a dispute letter, the credit bureau has 30 days to investigate and send you a report on the outcome of their investigation. Once a credit bureau receives a dispute letter, most of them will forward it to the creditor who placed the information in the credit report and generally, that creditor will tell the credit bureau that the information is correct, which the credit bureau will report to you.
If you still believe that the information is not accurate, send another dispute letter. Another thing you can do is require the credit bureau to place a 100-word statement that you write in your credit report as to why you believe the information is not correct. If the credit bureau cannot verify the dispute, it must delete the information from your credit report. All accurate information, even if it is derogatory, will stay on your credit report for 7 years from the date it was first reported. A bankruptcy will stay on your credit report for 10 years.
Beware of some creditors and/or collection agencies who attempt to “re-age” information in your credit report. This happens when “new” information is placed in your credit report about an account, in an attempt to re-set the 7 year clock or re-set the statute of limitations (in Pennsylvania, the statute of limitations on a contract is 4 years – which begins to run from the date of default or date of last payment, whichever is sooner). If you do not consent to the account being “re-aged” then it is illegal under the Fair Credit Reporting Act.
What to do if the creditor or credit bureau refuses to correct your credit report
If you have disputed inaccurate information with the company who placed the information in your credit report and the credit bureau has not removed the information, under the Fair Credit Reporting Act, you have the right to file a lawsuit against the credit bureau and the company who placed the inaccurate information in the credit report. Beware that you have 2 years from the date that you discover the violation or 5 years from the date that the violation actually occurred. You can file a lawsuit in any state or federal court, though it is generally cheaper and easier to bring suit in your local small claims court. It is advisable that you consult with an attorney before filing any lawsuit.
Credit report scams to watch out for
The Credit Repair Organizations Act, 15 U.S.C. § 1679, et seq., governs any individual or company that provides any type of service relating to repairing or fixing credit reports. The Act prohibits the individual or company from making any false statements about credit repair and makes it illegal for these operations to charge you until they have fully performed their services.
Beware of any person or company who claims that they can “erase” or “remove” information from your credit report, such as bankruptcies, delinquencies, charge-offs, repossessions, judgments, foreclosures, late-payments, tax liens, or garnishments. It is a crime to file a frivolous dispute letter in an attempt to get derogatory, but correct, information removed from a credit report. Only information that is inaccurate can legally be removed from a credit report.
Also beware of any person or company that claims that they can create a second or new credit report for you. The scammer will tell you that all you have to do is to use a different social security number or apply for a tax identification number from the IRS and use it instead of your own social security number when applying for credit. This practice is called “file segregation” which is a fraud and is prosecuted as a felony and you could face fines and jail. It is a federal crime to make any false statement on a loan or credit application.
Any individual or company who, for a fee, offers to “repair” your credit is probably going to rip you off. Why pay someone hundreds or thousands of dollars to dispute inaccurate items in your credit report when you can do it yourself for free?
Your credit report contains information about your credit worthiness to potential creditors, such as credit card companies, mortgage companies, auto finance companies, and other businesses that you might seek credit from. The information in your credit report contains information about all credit that you have applied for in the last 7 years and details how long an account has been open and the payment history.
There are 3 major credit reporting bureaus that maintain credit reports on you – TransUnion, Equifax, and Experian. However, the information contained in your credit report is not necessarily the same from TransUnion, Equifax, and Experian. Also, when you apply for credit, the potential creditor will not necessarily look at all 3 credit reports, but usually only 1 or 2. The higher your credit score, the lower the interest rate that you will pay. A separate company called Fair Issac calculates your credit score, based on the information contained in your credit reports.
How to get a copy of your credit report
You can get a free copy of your credit report every 12 months from TransUnion, Equifax, and Experian. If you have access to the Internet, the fastest and easiest way is via the Federal Trade Commission’s website Annualcreditreport.com or via phone at 877-322-8228 or by printing out the request form and mailing it in. Do not be fooled by ads saying you can get a “free” copy of your credit report from Freecreditreport.com or other websites. It is not free – you have to give them a credit card number and sign up for their “credit monitoring” service!
How to correct inaccurate information in your credit report
Once you get your credit report, it is important to make sure that all the information is accurate. Sometimes, an account that does not belong to you will appear on your credit report, because of a similar name or social security number. In addition to making sure all the accounts listed are yours, make sure that your accounts are being reported accurately for example, if an account is marked as “open” when you really closed it years ago.
You can dispute inaccurate information in your credit report by writing a letter to the credit bureau and stating why you believe the information is incorrect. The address to send the dispute to is generally located at the end of the credit report. In your dispute letter, you should enclose a copy of your driver’s license or other form of identification and a copy of the credit report that you believe are inaccurate. Make sure to keep a copy of all information that you send (including the dispute letter) and send the dispute letter and supporting documentation via certified mail, return receipt requested and also via regular mail. Send a copy of your dispute letter to the company who placed in the inaccurate information in your credit report too.
Consumer credit reports are governed by the Fair Credit Reporting Act 15 U.S.C. § 1681, et seq. The Act requires that not only the credit bureaus (Experian, TransUnion, and Equifax) report accurate information, but also that the creditor provide accurate information about the consumer. Once you send a dispute letter, the credit bureau has 30 days to investigate and send you a report on the outcome of their investigation. Once a credit bureau receives a dispute letter, most of them will forward it to the creditor who placed the information in the credit report and generally, that creditor will tell the credit bureau that the information is correct, which the credit bureau will report to you.
If you still believe that the information is not accurate, send another dispute letter. Another thing you can do is require the credit bureau to place a 100-word statement that you write in your credit report as to why you believe the information is not correct. If the credit bureau cannot verify the dispute, it must delete the information from your credit report. All accurate information, even if it is derogatory, will stay on your credit report for 7 years from the date it was first reported. A bankruptcy will stay on your credit report for 10 years.
Beware of some creditors and/or collection agencies who attempt to “re-age” information in your credit report. This happens when “new” information is placed in your credit report about an account, in an attempt to re-set the 7 year clock or re-set the statute of limitations (in Pennsylvania, the statute of limitations on a contract is 4 years – which begins to run from the date of default or date of last payment, whichever is sooner). If you do not consent to the account being “re-aged” then it is illegal under the Fair Credit Reporting Act.
What to do if the creditor or credit bureau refuses to correct your credit report
If you have disputed inaccurate information with the company who placed the information in your credit report and the credit bureau has not removed the information, under the Fair Credit Reporting Act, you have the right to file a lawsuit against the credit bureau and the company who placed the inaccurate information in the credit report. Beware that you have 2 years from the date that you discover the violation or 5 years from the date that the violation actually occurred. You can file a lawsuit in any state or federal court, though it is generally cheaper and easier to bring suit in your local small claims court. It is advisable that you consult with an attorney before filing any lawsuit.
Credit report scams to watch out for
The Credit Repair Organizations Act, 15 U.S.C. § 1679, et seq., governs any individual or company that provides any type of service relating to repairing or fixing credit reports. The Act prohibits the individual or company from making any false statements about credit repair and makes it illegal for these operations to charge you until they have fully performed their services.
Beware of any person or company who claims that they can “erase” or “remove” information from your credit report, such as bankruptcies, delinquencies, charge-offs, repossessions, judgments, foreclosures, late-payments, tax liens, or garnishments. It is a crime to file a frivolous dispute letter in an attempt to get derogatory, but correct, information removed from a credit report. Only information that is inaccurate can legally be removed from a credit report.
Also beware of any person or company that claims that they can create a second or new credit report for you. The scammer will tell you that all you have to do is to use a different social security number or apply for a tax identification number from the IRS and use it instead of your own social security number when applying for credit. This practice is called “file segregation” which is a fraud and is prosecuted as a felony and you could face fines and jail. It is a federal crime to make any false statement on a loan or credit application.
Any individual or company who, for a fee, offers to “repair” your credit is probably going to rip you off. Why pay someone hundreds or thousands of dollars to dispute inaccurate items in your credit report when you can do it yourself for free?
Tuesday, March 3, 2009
Dealing With Collection Agencies
If you receive a telephone call or letter from a debt collector (be it a collection agency or debt collecting law firm), here are some helpful hints:
The best (and safest) way to deal with debt collector is in writing. That way, you have a written record of everything that transpires between you and the debt collector. We advise our clients to send any letter via certified mail, return receipt requested, and via regular mail. If a debt collector calls you on the phone, politely ask them to stop calling you and to correspond with you only in writing.
Always request verification of the alleged debt. Under the Fair Debt Collection Practices Act (FDCPA), which is a federal statute that governs how consumer debt is collected, a debt collector must provide the consumer with written verification of the alleged debt upon written request within 30 days of the first written letter from the debt collector. The request can be as simple as "I dispute the validity of this debt. Please provide me with verification". However, a lot of debt collectors ignore consumer's request for verification. That is why it is important to communicate with the debt collector in writing, so you have proof that you requested verification.
Do not allow a debt collector to threaten or harass you. It is illegal under the FDCPA. There are numerous horror stories of debt collectors threatening to garnish people's wages, have them arrested, notify their neighbors, co-workers, employers, etc. If you experience any of this type of behaviour, be sure to make a note of the name of the debt collector, what was said to you, and the date and time.
If you feel that a debt collector has violated the FDCPA (or your state's consumer protection laws, such as Pennsylvania's Fair Credit Uniformity Extension Act), you generally can bring a claim against the debt collector in court and seek statutory damages, attorney fees, and costs. In some cases, we have been successful in having all or part of the alleged debt wiped away because of the debt collector's illegal tactics.
An attorney who handles consumer credit/debt issues can more fully explain the FDCPA and other relevant laws to you and advise you on your particular situation.
The best (and safest) way to deal with debt collector is in writing. That way, you have a written record of everything that transpires between you and the debt collector. We advise our clients to send any letter via certified mail, return receipt requested, and via regular mail. If a debt collector calls you on the phone, politely ask them to stop calling you and to correspond with you only in writing.
Always request verification of the alleged debt. Under the Fair Debt Collection Practices Act (FDCPA), which is a federal statute that governs how consumer debt is collected, a debt collector must provide the consumer with written verification of the alleged debt upon written request within 30 days of the first written letter from the debt collector. The request can be as simple as "I dispute the validity of this debt. Please provide me with verification". However, a lot of debt collectors ignore consumer's request for verification. That is why it is important to communicate with the debt collector in writing, so you have proof that you requested verification.
Do not allow a debt collector to threaten or harass you. It is illegal under the FDCPA. There are numerous horror stories of debt collectors threatening to garnish people's wages, have them arrested, notify their neighbors, co-workers, employers, etc. If you experience any of this type of behaviour, be sure to make a note of the name of the debt collector, what was said to you, and the date and time.
If you feel that a debt collector has violated the FDCPA (or your state's consumer protection laws, such as Pennsylvania's Fair Credit Uniformity Extension Act), you generally can bring a claim against the debt collector in court and seek statutory damages, attorney fees, and costs. In some cases, we have been successful in having all or part of the alleged debt wiped away because of the debt collector's illegal tactics.
An attorney who handles consumer credit/debt issues can more fully explain the FDCPA and other relevant laws to you and advise you on your particular situation.
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