Archive for August, 2010

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Bailiffs & Council Tax – Know Your Legal Rights

Monday, August 30th, 2010

Many of us do not know how bailiffs work to collect arrears. Basically, bailiffs are private personnel hired by the local council to handle Council Tax and Poll Tax. Anything that they get from you is auctioned as a way of paying your existing debt. This process of taking your goods, selling them, and paying your debt is called “distraining” or “levying”.

Since October of 1998, the County Court ruled that bailiffs must carry a certificate with them as a proof that they have been hired by the local council. Any complain about a bailiff not following this order can be brought to the attention of the court immediately.

Since April of the same year, a process involving bailiffs and debts has also been at work. This process states that you, as a debtor, must get a letter from the Council which contains the details of your credits. The same notice would bear the warning that if ever you fail to pay your financial obligation within 14 days, bailiffs will be sent to your aid. You may contact a member of the local council within the period for your concerns. You can also make suggestions to the council about the most convenient payment scheme that you can afford. If the council approve of your suggestion, they will ask the bailiffs to stop calling you and save you extra fees in the long run.

DO I HAVE TO LET THE BAILIFFS IN?

One thing that you must know about bailiffs is that you do not have the responsibility to take them in whenever they come. In fact, you can choose not to let them inside your home. If the bailiffs have never been into your home, they have no right to come in at anytime of the day. It is also unlawful for them to break in.

As a form of precaution, avoid the following scenarios:

- Do not open your doors to the bailiffs. Once you entertain them, they will have the power to push past you. If they get inside, they will have the right to enter again and take more of your goods.
- Do not leave your doors and windows unlocked because bailiffs can easily take advantage of any kind of opening. As they cannot ask the police to help them break in, your carelessness is their only ticket.
- Do not fall to any kind of trap. Bailiffs can make several bluffs like asking to use the toilet or the telephone just so they can lure you towards letting them in.
- Do not leave your valuables lying around. Bailiffs can easily take away anything valuable that they lay their eyes and hands on. Make sure that your cars are always shielded from view.
- Do not make transactions inside your home. If you have a certain amount to pay the bailiffs out for your debt, do so but make sure that you transact outside. Do not forget to take a receipt as well.
- Do not sign anything that the bailiffs ask you to. The bailiffs do not have the right to make you sign any sort of document, whether it was left posted in your door or handed out to you personally.

THE BAILIFFS HAVE ALREADY BEEN INSIDE MY HOME

If you allowed the bailiffs go inside your home at once, you are in for a more serious situation. Once bailiffs are let inside, they will have the right to come back again. If you choose not to let them in the second time, they will have the right to break in. What you can do to repair this problem is to get in touch with your local council immediately or make the necessary arrangements with the bailiffs. You can ask your local councilor for help or you can devise a specific payment scheme that you can afford and present it to the bailiffs. If they agree on your terms, you can prevent them from coming back and take any more of your things. Also make sure that you take a receipt of your every payment to be on the safe side.

WHAT THINGS ARE THE BAILIFFS ALLOWED TO TAKE?

Most of your valuables can be legally taken by the bailiffs except for the following:
- Anything that was rented or hired.
- Items or equipments that are necessary for your personal and professional use.
- Your basic daily needs such as clothing, bedding, and furniture.

You will notice that exemptions are not really item specific. The bailiffs may have different interpretation of which items they can take legally or not. If you feel that what they have taken away should have been exempted, you can file an appropriate complaint in your local council.

CAN THE BAILIFFS TAKE THINGS WHICH ARE NOT MINE?

It has been clearly established by the law that the bailiffs can only take what are legally yours. This include items that you co-own with your partner. If the bailiffs attempt to take anything that you do not own, politely tell them about the item’s ownership by showing receipts or proofs of purchase that will indeed tell them that it is not yours. Also, the owner of the goods can make a sworn statement or a statutory declaration about the real ownership of the items.

Other things that bailiffs cannot take are the ones that are rented or hired. Make sure that you keep a copy of your agreement with the real owner so the bailiffs will not take them away.

WHAT IF I HIDE THINGS OR GIVE THEM AWAY?

It is legal to hide your valuables if the bailiffs have never been inside your home. Once they step in, however, they will list all the items they intend to take. If you try to hide any of those things elsewhere other than your home, you will be committing an offence that is punishable by the law. If you are able to keep the items discreetly out of sight, the bailiffs can rightfully search for them on visits.

BAILIFFS PROCEDURES

The good news is that bailiffs cannot break inside your home just like that. They are also covered by certain laws and procedures that they must adhere to including the following:
- Bailiffs must bring with them a written authorization or a certificate from the local council.
- Bailiffs must hand you a copy of the “Enforcement Regulations” which contain information on what they are only allowed to do.
- Bailiffs must also bring with them a statement of charges that they can take with each visit. They should never make additions to blow up your debts.
- Bailiffs must also bring with them a “Walking Possession” agreement duly signed by you. This agreement contains the list of items that they have warned to take right from their first visit.

HOW DO I STOP THE BAILIFFS?

The most effective measure to stop the bailiffs from taking away your things is to make an arrangement on how you can pay your debt. Devising an effective installment plan will be beneficial for you especially if the bailiffs have never been into your home. Offer only what you can afford to pay to prevent any form of misunderstanding to take place.

The bailiffs cannot send you to prison. If they fail to break into your home, their most appropriate action is to pass your debt back to the council. If this happens, it would be much easier to settle the problem. You better take this as a priority debt because if you do not act on it immediately, the council will find another way to recover the money. They can file an Attachment of Earnings Order, which will take out money from your earnings or other form of order that will summon you to pay your financial obligations dutifully.

In some instances, the council may agree to exempt your case from bringing it to the bailiffs’ attention. The council allow direct payment schemes for those who are on Income Support, Pension Credit, and Job Seekers’ Allowance. Better yet, ask the council whether they can take back your case from the bailiffs so you can deal with them directly. Your local councilor can help you make the deal with the council. Explain your reasons and whatever difficulty it will bring you in case the bailiffs break into your home and take your things to stand a chance for a consideration.

HOW DO I COMPLAIN?

There are Enforcement Regulations that the bailiffs must adhere to. However, the National Standards for Enforcement Agents issued by the Lord Chancellors Department is quite tricky. Although it provides specific guidelines on bailiffs’ behavior in carrying out their duties, mentioning these standards in your complaint may be or may not be beneficial to you. You can look out for the standards yourself through the Department for Constitutional Affairs website

(www.dca.gov.uk/enforcement/agents02.htm).

The law concerning the bailiffs is complex but you can start learning it through by reading the law yourself and trying to understand every bit of technicalities in it. Your personal effort, however, may not be sufficient. If you can, it would be best to get a legal advice on what you can do against what you feel is unlawful action of the bailiffs.

Since October 1998, the bailiffs need to act with a certificate at hand. This certificate to collect Council Tax must be granted by the court. Filing a complaint against the bailiffs can have their certificate withdrawn and their right to enter your house forfeited. To file a complaint, you can write a formal letter to the Court Manager so he can administer a hearing. Once the court find substance in your complaint, it can rule out to cancel the bailiffs’ certificate, order compensation as well as return of the surrendered goods. Some cases acted favorably to the complainants where their debts have been written off due to the bailiffs’ illegal acts. This is one of the reasons why you should not take your complaint sitting down. Once you discover an irregularity, you must rush to the Magistrates Court to file a complaint.

The bailiffs report directly to the council and it would be ideal to bring your case there. Once it receives your complaint, it must order the bailiffs to change their procedures. If this do not work, you can call the attention of your local councilor or your local government Ombudsman to look through your case.

BAILIFFS CHARGES

If the bailiffs are asking for excessive charges, you can use it as a case for complaint. You can make a written notice to the council telling them that what has been taken from you may be way too much. You can also seek advice from the County Court regarding the appropriate fines the bailiffs can charge you.

Your common sense and your knowledge on local processes can also be useful in determining what amount of fine is reasonable and what is not. If, for example, the bailiffs charged you 80 for attendance with a van and hiring a van costs only 40, you are obviously charged unfairly. When such circumstance takes place, you can instantly call the attention of the bailiffs. Warn them that you will take further action for your complaint to be recognized if they refuse to follow the regulated schedule.

Submit a written complaint to the council so they know how the bailiffs are illegally carrying out their duties. Other than that, you can also apply for a “Taxation” in the County Court. This kind of application will ask the court to look through your complaint within 12 months after which they should submit a decision whether the bailiffs charges have been excessive or not. If the court decides against you, you will be held liable for the bailiffs’ firm’s court costs. That’s why you must be careful in taking such action. Please remember, however, that making complaints is worth your every effort especially when you are loaded with evidences that will prove that the bailiffs stepped out of the line.

USEFUL LINKS

The Secretary
Association of Civil Enforcement Agencies
Kensington House
33 Imperial Square
Cheltenam
Glos
Tel: 01242 241456
Website: www.acea.org.uk

The Secretary
Enforcement Services Association (ENSAS) (formally The Certificated Bailiffs Association)
Ridgefield House
14 John Dalton Street
Manchester
M2 6JR
Tel: 0161 839 7225
Website: www.bailiffs.org.uk

Local Government Ombudsman (England)
Millbank Tower
Millbank
London SW1P 4QP
Advice Line: 0845 602 1983
Monday to Friday, 9.00 am – 4.30 pm
Website: www.lgo.org.uk
Note: There are a total of three local government Ombudsman offices for England. You may check whom to send a complaint by calling the Advice Line.

Local Government Ombudsman (Wales)
Derwen House Court Road Bridgend
CF31 1BN
Tel: 01656 661 325
Website: www.ombudsman-wales.org

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Solving Problems the Easy Way

Saturday, August 28th, 2010

Life happens and crises occur. If we lived in a perfect world, wed all live on beautiful beaches and never have to work! But the reality is that life is messy and sometimes our expenses are greater than our income.

Here is how to deal with any negative financial situations when they arise.

The first course of action is preventative: You should create a budget and stick to it. A budget is simple to create. You simply list all of your average monthly expenses on one side of a paper and all of your average monthly income on the other side. Then, make sure that the total in the income side is greater. Be sure to include on the expenses side two line items: current enjoyment and future savings. Put at least 10% of your income away into the future savings line and also invest a little into your current enjoyment line. Its important to enjoy today and its important to have something for the future.

Having a budget will help to minimize disasters that may strike. But they may still strike! When disaster strikes, though, there are options which you can take these courses of action:

The first thing you should do is try to adjust your budget to pay for the problem. Perhaps you can increase your income or sacrifice a little from here or there to see that the problem is paid for. If thats the case, that should be your priority, since your payments will take care of the problem quickly. But there are alternatives if that fails.

Second, try to get a secured loan using assets you have, such as your home or other valuables. These assets will allow you to negotiate a lower interest rate and longer repayment period so that your expenses can come back in line again. For many people, a disaster means higher bills, so a secured loan is one of the best first steps to take to pay off your bills but still manage your payments over time.

A third option is to get an unsecured loan. These are not nearly as good as secured loans because they can come with a higher interest rate and shorter repayment periods because the risk to the lending institution is higher. But for some people, this is the best or only option. If its yours, take it because an unsecured loan may still be cheaper in the long run than expensive credit card interest rates or repossessed possessions!

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Firm Guides Parents Through College Savings Plans

Thursday, August 26th, 2010

According to a survey conducted by the New York-based College Board, college tuition costs are rising faster than the pace of inflation. Between 1993 and 2003, for example, the average cost of tuition and fees for four years rose 47 percent at public colleges and 42 percent at private institutions.

Thus, parents should start saving for college as soon as possible, says Stuart Ritter, a certified financial planner at T. Rowe Price, the Baltimore-based investment management and mutual fund firm. One way to do so, he says, is by taking advantage of state-sponsored 529 college savings plans.

These plans are becoming popular as a way to save for college because they provide some of the best tax benefits available, including an exemption from federal income tax on withdrawals made for qualified education expenses, and have high contribution limits to help save for college.

As a result, a 529 plan can potentially provide more money to spend on education than other investment products such as taxable accounts and Uniform Gift to Minor Acts (UGMA) accounts, an alternative way to contribute assets to a minor for investment purposes, says Ritter. An individual or a family can usually contribute more than $200,000 total in a 529 plan.

Currently, all states offer some type of 529 plan, with about half offering incentives to in-state residents. So while it may be practical for some parents to turn to their home states first when considering a plan, families are not limited to their own states’ plans. “It could pay to comparison shop,” Ritter says, adding that in addition to looking at potential state tax benefits for their contributions, parents should also evaluate the fees, expenses and investment options.

Another tool, the College Savings Comparison Calculator, compares saving for college in a 529 plan with doing so in a UGMA account.

One caveat is that due to provisions in the tax laws, the federal tax exemption for qualified educational expenses expires in 2010 unless extended by Congress. After that time, earnings would be considered income for the beneficiary – usually still beneficial since most 18-year-olds are in a low tax bracket. Also, earnings on a distribution not used for qualified expenses may be subject to income taxes and a 10 percent federal penalty.

Sorting through the array of 529 plans can be overwhelming, but experts say it is important for parents who are hoping to get the maximum return for their savings.

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Lower the down payment on your mortgage

Wednesday, August 25th, 2010

There are many loan options available for potential homeowners who don’t have much cash saved for an initial down payment. One of the most common and respected of these products is a loan insured by the Federal Housing Administration(FHA). FHA loans are designed to help families with lower incomes and not much savings. Additionally, FHA backed mortgages allow lending institutions to extend more lenient terms to make approval for financing more likely. If your credit score isn’t that great, or if you have a bit of credit card debt, you can probably benefit from an FHA loan. Moreover, these loans incorporate grants, and other vehicles into their funding process, to help pay fees and closing costs. By issuing an FHA loan, a bank can allow you to only put three percent of the purchase price down, which can be a huge help. These arrangements can be done with a fixed or variable rate, to accommodate all types of buyers.

If you are in the armed forces, you may want to consider applying for a loan guaranteed by the Department of Veteran’s affairs. VA mortgages can help many veterans and military personnel currently protecting the United States of America. VA financing allows more lenient credit and debt standards and smaller down payments. There is also the possibility of securing a VA agreement that provides the buyer the opportunity not to make a down payment.

If you want to get into a home fast, and don’t qualify for the two aforementioned financing options, there are other financial products that will allow you to get into the home of your dreams without a cash down payment. One of the most common of these methods is to actually fund 100% of your mortgage with two loans. One loan will be taken out for a large percentage of the purchase price of the house, say 75%, and another financing instrument will be taken out for the remaining 25%. Funding of this type allows you to avoid paying certain obligatory insurance that is usually associated with buying a house. So, you could make the loan process cheaper if you go with this method, and then start paying off your mortgage with any cash saved from your salary.

Reducing the amount of cash required for a down payment can also be accomplished by utilizing banks that offer very low down payment percentages. Banks may allow you to only pay a 4 or 5% down payment. This low cash outlay can help you get into homes that you wouldn’t be able to with ordinary terms. These options work well if your income is low or if you don’t want to part with a lot of money up front. Putting less money down can also allow you to assume a larger loan, because you are required to pay a smaller percentage of the purchase price. Banks also have products that benefit public sector employees. The most common professions that may receive more favorable terms are teachers, police officers, and fire fighters. Families should research every possible way to make a mortgage more affordable. Whatever your situation may be, there are many flexible lending options available in today’s market that can get you into a great house without parting with too much cash.

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Financial Success Isn’t Difficult

Tuesday, August 24th, 2010

Financial success isn’t a hard task to master. It simply takes dedication, hard work and a little old fashioned commitment.

But it also takes a little knowledge. Too many consumers are ignoring what are financial truths. They run up large amounts of debt just to appear successful to those around them. They surround themselves with things that only make them feel better for a minute.

They ignore the fact that a debt-free and well managed financial life is a wonderful way to eliminate stress, which is all too common in today’s world.

What do you need to do to become financially successful?

First, you need to spend less than you earn. Sounds easy, but it really isn’t. It is easier to spend less than it is to earn more. You simply have to cut your costs. You have to stop charging on your credit cards and you have to stop shopping. Look closely at where your money is going. Look at what you already have around you. Get all those projects completed before you buy things for a new project.

You have to have a budget and stick with it. Budgets don’t tell you how to spend your money, they tell you how to save your money. You can easily see where your money is going. You can identify areas that you can cut back on. Then, you can set spending goals. A budget is a great way to challenge yourself. There is nothing better than saving more money than you thought you could. Surprise yourself with a budget that works.

From your budget, you should be able to find the money to start paying off that credit card debt. If you are severely in debt, you may need to get a second job and sell some things to get a head start. Stop using those cards and start paying them off. They are draining the life out of your finances on a daily basis.

You should be contributing to a retirement plan. Research your options and take advantage of them. Don’t wait until tomorrow, it will be too late. Start now. When you pay off your debt, put that money to your retirement as well. Who knows — you may be able to retire early.

Once you have your debt paid off you should have a savings plan. There are goals that you can set for your savings. You may want new furniture or to go on a vacation. You should also save at least three to six months of money to cover your monthly expenses in the case of an emergency. This will cushion your budget from any repairs, emergencies, illnesses or job losses that may happen.

Financial success isn’t difficult. It is simply a habit that you have to nurture and maintain. Take the time to sit down and get started. Work on it until it becomes second nature. The more you work on it, the better you will become at it.

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So Where Is There Fast Money To Be Made?

Tuesday, August 24th, 2010

Fast money is the name of the game in this fast paced society that thrives on instant gratification. If you have to work hard for something and then dont get it right away either, well that is just lame. So gone are the days of having the same job for 30 years and slowly building your fortune in strong solid secure types of growth funds. Hello world series of poker, good buy bond investment and working slowly up the corporate ladder. Hello .com companies and goodbye factory and labor industries.

So is there something wrong with fast money? Not necessarily but you must be careful. Things that come fast tend to leave just as fast. Take a look at the .com fiasco of the late 1990s that was merely a flash in the pan. Sure, there were guys that made fortunes, but they were in the right place at the right time and they either moved on (which is what you have to do most of the time) or found something that they could do that much better than others for longer or that they could protect from competition in legal and complicated ways. The moral of the story is that you have to thrive on a feast or famine type of income.

Another problem with fast money is that you can only save up so much of it at once. Most savings funds have a maximum contribution, and you can only write off so many things then you have to bite the big one and pay lots of taxes for this money that you got all at once. If you spread that money out over years of income (which often times you end up having to do for your own personal budget) than you wouldnt pay nearly as much in taxes and you could put away a relatively larger percentage of your income away for retirement.

Now there are methods of making fast money that certainly arent worth the cost. I am talking mainly about robbing banks, selling drugs, and other wrong-side-of-the-law types of things. There are also many things that arent necessarily illegal but would be a major compromise of you ethics like selling filthy magazines or being involved personally in the entertainment industry.

All that to say that fast money isnt automatically bad but you should think twice before you jump in head first imagining that life is going to be all roses and marshmallows. Either you have to be lucky or better at something than everybody else in the world and able to keep it from being imitated. Otherwise fast money is money that is fleeting and regreattable.

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Financial Plans: What Are Americans Banking On?

Friday, August 20th, 2010

Americans tend to have an optimistic view of retirement-but a recent poll found many people still have a lot of work ahead of them before they can leave their jobs.

For instance, 47 percent of respondents said their retirement savings will last them 10 to 20 years. Those numbers seem promising until you consider that people should be actually planning for 30 years. Similarly, nearly half of all Generation X respondents said they expect to rely on pensions to help fund retirement. The plan may seem sound, but experts warn that many pension plans in the U.S. are at risk of going belly up. Plus, fewer than a third of all companies now offer pension plans.

The poll was sponsored by the American Institute of Certified Public Accountants (AICPA) in an effort to better understand the American public’s approach to savings and retirement. The group sponsors a Web site called 360 Degrees of Financial Literacy (www.360financialliteracy.org) to help people come to terms with financial issues at different life stages. Here’s a look at some additional polling results:

Paying For Retirement

Younger Americans do not plan to rely as heavily on Social Security for retirement as do older Americans. Close to six in 10 people age 55 and older plan to fund their retirement through Social Security. Only four in 10 (41 percent) of Americans under the age of 55 are counting on Social Security to fund their retirement. Instead of relying on Social Security, those under 55 are more likely to rely on their personal savings and investments.

College Costs

About three in 10 Americans have a child who is planning on going to college in the next five to 10 years. One quarter of these parents plan to pay for their child’s education with personal savings, another quarter intend for their child to earn scholarships to pay for tuition. Surprisingly, only 13 percent of respondents plan to use private student loans and just 12 percent plan to fund their child’s education with financial aid.

Financial Concerns

Rising energy and home-heating costs and uninsured medical expenses rank as the highest financial concerns for Americans (15 percent each). Retirement and the price of gas (13 percent each) follow closely behind. Education costs are also a concern as 9 percent of respondents worried about their child’s college education and 7 percent worried about their own college education.

Forty-one percent of Americans under age 55 say they plan to rely heavily on Social Security for retirement.

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Encrypted Email — Users Unknowingly Put Banking Data at Risk

Thursday, August 19th, 2010

Encrypted Email — Users Unknowingly Put Banking Data at Risk

PGP is one of the most common methods of protecting financial data that customers submit through banking and financial websites. PGP provides excellent data encryption, but many users leave sensitive PGP-encrypted data vulnerable without even knowing theyre doing so.

Banks, credit unions and other financial institutions use PGP to encrypt sensitive data, such as a loan application, before sending it through email. PGP makes the data is nearly impossible for anyone other than the intended recipient to decrypt. Unfortunately, after receiving the data the recipient often unknowingly creates an opportunity for thieves to steal the data.

Recipients decrypt PGP protected email messages to read the sensitive contents. Security-savvy users know to that after reading the message they need to either permanently delete the encrypted message or to save it in its original encrypted state. But a large number of users in financial institutions that weve worked with dont do either. Instead they save the decrypted version of the email where thieves can easily access the information. In fact, Microsoft Outlook prompts users to save encrypted messages in a decrypted form whenever they close a decrypted message. Since neither Outlook nor PGP warns users about the danger of saving the message, most users click Yes and save the decrypted message.

When decrypted, the data is vulnerable to attack by viruses, malware and computer hackers. Some executives dismiss the threat by touting the protection that their firewalls and intrusion prevention systems provide. Firewalls are almost useless when PCs are infected with data harvesting viruses or malware, so relying on firewalls to protect data stored on PCs is akin to putting a lock on a screen door.

Even when firewalls do manage to keep PCs free of any viruses or malware, what happens when the bad guy is someone inside the organization?

According to the FBI, insiders employees, contractors and business partners commit nearly 70% of all data theft crimes. They steal data directly from the corporate network or they steal the computers & hardware that store the data. Sometimes they even buy the data by purchasing decommissioned computers that organizations sell to employees. A firewall will do nothing to protect decrypted data stored on the PCs that these attackers gain legitimate access to.

Weve implemented a safer way to protect data submitted through websites. Using MemberProtect, our clients have eliminated the decrypted data theft risk. MemberProtect does not rely on email delivery and instead stores data inside a uniquely-encrypted database. Administrators control who can access the secure web-based viewer to see the data submitted through their websites. MemberProtect decrypts the data to allow viewing, but unlike Outlook, MemberProtect always re-encrypts the data when the user is done viewing it.

MemberProtect also creates an audit trail that auditors and security administrators can use to see who has viewed, modified and deleted data. It also tracks logons, attempted logons and user interactions with the protected system. MemberProtect stores this audit login a separate encrypted database to prevent log tampering by system administrators or other insiders. When integrated with intrusion detection systems, the system can perform a degree of self protection by severing connections with suspicious clients and immediately notifying administrators of suspected hack attempts.

If your budget cannot support a system like MemberProtect (approximately $3,000 to $5,000 for implementation on a bank website), then PGP is still an acceptable security option, but its critical that you train all users to:

Never save decrypted messages
Never share their PGP pass phrase
Always make a backup of their private key since if this key is lost, the messages cannot be decrypted

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