New Year's Resolutions for Bank Lawyers -- and Their Clients & Friends

Okay, enough eggnog & fruit cake!

JANUARY’S MONEY MEMO FOR LAWYERS - [as seen in Lubbock Law Notes]
By Ann Graham, Associate Professor of Law, Texas Tech University School of Law

‘Tis the season for New Year’s Resolutions! 
As William Shakespeare reminds us: 

“Good name in man and woman, dear my lord,
Is the immediate jewel of their souls;
Who steals my purse steals trash; ’tis something, nothing;
’Twas mine, ’tis his, and has been slave to thousands;
But he that filches from me my good name
Robs me of that which not enriches him,
And makes me poor indeed.”   --Othello. Act iii. Sc. 3.

My number one New Year’s Resolution is to protect financial information from Identity Theft – and from just plain error.  As lawyers, we often procrastinate about protecting our own legal and financial interests.  It’s that “Cobbler’s Children Having No Shoes Phenomenon”.  So these suggestions are aimed at us.  If you choose to pass them along to your clients, you might also be saving them from substantial losses in terms of time, money, and hassle.

Step One:  Request your credit report. You can’t fix a problem until you identify it.  Even if your credit report contains no errors now, you have a standard for comparison.
There are three consumer reporting agencies:  Equifax, Experian, and TransUnion.  Under federal law, you are entitled to one free credit report from each of these three agencies during a twelve-month period.  You may order them all at once or space them out.  The only official website for requesting your free credit reports online is https://www.annualcreditreport.com/cra/index.jsp  This is a joint free-credit-report website for all three agencies.  Be sure to type the website name carefully to avoid being directed to a scam site.  The official website provides information about the option to order your free credit reports by telephone or by mail.

You can purchase your credit score for $7.95 when you request your free credit report.  The credit reporting agencies offer other credit monitoring products but they do charge for them. 

Step Two:  Promptly review your credit report.  To correct inaccuracies, follow appropriate legal procedures reviewed on the FTC website:  http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm#Resolving                     

Correcting errors, whether they be simple mistakes or outright fraud, can improve your credit score.  Your credit score (or FICO score) is based on the debt repayment history reflected in your credit reports.  An improved credit score can save you money in the form of lower interest rates when you borrow money through credit card purchases or through loans to pay for big purchases – like that new car or house.

Step Three: If you suspect you are the victim of identity theft, respond immediately:
• Place a Fraud Report Call to the credit reporting agencies.  One call will suffice; that agency will notify the others.

1. Equifax:  1-877-576-5734; www.equifax.com 
2. Experian:  1-888-397-3742 www.experian.com/fraud 
3. TransUnion:  1-800-680-7289; www.transunion.com

The credit reporting agencies will first place an Initial Fraud Alert on all your credit accounts for 90 days.  New accounts and charges will trigger a request for your personal authorization.  After a police report has been filed, an Extended Fraud Alert can be maintained in effect for seven years.

• Promptly cancel accounts that have been used or open without authorization.
• File a police report and get a copy of the report.
• Notify the Federal Trade Commission (FTC): 

• Online:  ftc.gov/idtheft 
• By telephone: 1-877-IDTHEFT (438-4338)               
• By Mail:  Identity Theft Clearinghouse, Federal Trade Commission, Washington, D.C. 20580.

Step Four:  Follow common sense steps to protect against identity theft.

1. Shred old financial documents (yours and your clients).
2. Protect social security numbers.  Don’t ask for or provide them unless absolutely necessary.
3. Balance your checkbooks and check credit card statements promptly.
4. Be alert for bills and check orders that fail to arrive when expected.  They may have been stolen by identity thieves.
5. Be quick to check out unexpected credit denials or calls about bills you don’t recognize.
6. Don’t leave documents with financial information out where unauthorized employees, repair contractors, cleaning personnel, or others can steal or copy them.
7. Be aware of potential identity theft scams.  “Pretext calling” is identity theft by telephone.  Thieves pretend to be creditors, bank personnel, credit card representatives, or merchants when they ask for personal financial information.  Never give personal financial information over the phone unless you know for sure who is on the other end of the line.
8. Be on guard for identity theft by computer.  “Phishing” is pretexting by e-mail.  “Pharming” is attempting to obtain financial information by means of a fake website that looks like the real one for your bank, credit card company, or other legitimate company.  Never provide personal financial information online except through a secure connection to a legitimate site.
9. Never open suspect e-mails or attachments.  Never click on suspicious links in e-mails or on websites.
10. Use up-to-date firewalls, anti-spyware, and virus protection.  Don’t use obvious passwords and change passwords often.

Step Five:  If you need more information about Identity Theft, see the FTC website:  http://www.ftc.gov/bcp/conline/pubs/credit/idtheft.htm

Step Six:  Happy New Year!
__________
Ann Graham teaches Banking Law, Commercial Law, Corporate Governance, and Business Analysis for Lawyers at the Texas Tech University School of Law.  She also writes a Blog on Banking Law, financial issues and the economy in general:     http://lawprofessors.typepad.com/banking/

(ag) Dec. 29, 2006, in Identity Theft