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Legal Alerts - Legal Reliefs
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Quick Contacts
508-771-6272
401-486-4002 [Cell]
gordon@gacarpenter.com
401-453-1700 [RI office]
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Greetings!
Gave the Newsletter a "fresh" look -- hope you approve.
A Newsletter is only sent when I encounter things important to share with business owners -- an ALERT to a matter likely to need attention or RELIEF to an issue being faced.
On the whole this summer has had little of business significance coming out of our lawmakers, but there have been some, as well as a need for some reminders -- thus this opportunity to communicate with you.
The first item is time sensitive - college bound credit card problems.
The second is notice of a separate Newletter regarding "independent contractors" coming soon.
The third and final discuss Identity Theft business issues.
I urge each business owner to visit my website where you will find additional items of interest to business owners, including more Alerts and Reliefs. Feedback is welcome of course, and if there is an issue you would like to discuss, just ask. I'm only an e-mail away and never a charge for an initial consultation.
 Gordon |
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CREDIT CARDS FOR THE COLLEGE BOUND |
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If you have a child [or grandchild] heading to college, this is a must read.
Until February 2010 [when a new federal law takes effect and imposes some restrictions], every college student will be inundated - yes, inundated - with credit card offers!!! This goes way beyond a trap for the unwary; this a a personal disaster waiting to happen! It even happened to my son -- and it can happen to yours. A recent study showed graduating seniors with average debt exceeding $4,100.00. And more than 50% had more than four cards.
The hits to a student's "Credit Score" resulting from failure to use credit wisely will follow for seven years. That means into the important time when first employment is sought. Yes, prospective employers are checking Credit Scores and may be nervous about a prospect who has significant debt beyond the usual student loans.
Credit card companies want your child on their hook. Reasons are obvious. Mom or Dad will bail out overuse, high interest rates are lucrative, use is by innocents and uninformed.
But having a credit card can be valuable. How can you help your student weather this storm?
- Talk with the college bound about good credit use practices. Educate them about late fees, overline fees, high interest rates and the like and the virtue of paying a card in full every month.
- Urge they use a debit card issued against their [not your] personal checking account.
- Have one card to be used for emergencies only - and that bill comes to your home!
- Refuse to be a cosigner on a card -- this exposes you to direct assault for your student's wavering ways.
- If they have another credit card, outline the good use rules. Do not use it for entertainment, electronics or similar luxuries.
This might be a good time to get your own credit report. You are entitled to one absolutely free every 12 months. Here is the only site with a truly free report with no hooks.
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No More "Independent Contractor" Games |
The "independent contractor" game so many small business owners play has got to stop!!
My website has an article about significant changes to the independent contractor laws. Because of their importance to every business - large, medium and small, I will shortly be sending a special Newletter covering that subject only.
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Be Smart About Your Identity
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There are so many identity theft scams around -- and always a surprise that even the most transparent ones succeed.
Be smart. Here are some to AVOID at all costs.
- The "claim your refund" e-mail purportedly from the federal Internal Revenue Service. The IRS never communicates with a taxpayer via e-mail. Got that, never!
- The "please complete the accompanying state or federal form. Neither the federal or state government communicates with a taxpayer via e-mail. Got that, never!
- "Collect Your Inheritance" or "Lottery Winnings" Geez, how gullible could anyone be.
Yes, there are legitimate uses for the United States Mail. Two minimum rules to follow: 1. Have a comprehensive security suite on your computer and 2. Avoid all questionable e-mails. Don't open at all, simply delete!! |
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NEW Identity Theft Regs
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In my February and March 2009 Newsletters [Nos. 3 & 4], I included an ALERT to the substantial burden nearly every business owner would face to comply with Massachusetts new law and regulations designed to protect against identity theft.
Now, there is a little RELIEF. In response to the protests of many small businesses that the new requirements were "too harsh," the MA Office of Consumer Affairs recently announced "adjustments" to its previously issued regulation. The "adjusted" regulation effective date has also been extended to March 1, 2010 from January 1, 2010 [and previously extended from May 1, 2009].
The new version includes a "risk-based" approach based on a company's size, resources, nature of data and other factors, rather than mandating every component regardless of specifics. Thus, for example, compliance for a small business with one employee and no credit transactions with customers will feel little burden from this 2007 toughest-in-the nation law [M.G.L. c. 93H]. In contrast a business with many employees and significant streams of customer personal data on computer servers and flying through cyberspace will feel the full weight of the requirements. But just because yours may be a "small business" doesn't mean you don't have to comply - you do. If you have any personal information about a
Massachusetts resident you must have in place a plan and protections against "identity theft." "Any personal information" includes credit card information, driver's license number and social security numbers and more. Thus it would include every employee. It would include a business which has extended credit to a customer and/or captured usual
information like a credit card or driver's license number or received a personal check.
That information must be safe-kept, meaning computer data need to be encrypted, paper files need to be locked and record destruction must be comprehensive.
Preparing to comply may be time-consuming and may be expensive. For certain, you need to be proactive in your compliance effort. I expect within the coming months there will be multiple workshop and similar opportunities for you to learn more
about what's required. With the busy summer season on the wane now is the time to tackle these issues.
Do not ignore this. The "adjusted" regulation give you a bit of a time reprieve -- don't waste it. If you are not compliant and a verdict comes against you there may be no insurance coverage to save you.
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My website has much more information about my practice and credentials as a seasoned business attorney and counselor. Just click on the link below and you'll be there.
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REMEMBER --
Other Legal Alerts and Legal Reliefs are available at my website.
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