Important Information for Seniors

1. Social Security, pensions, VA benefits and disability income are protected from collectors under federal law.

2. Persons on protected income can immediately stop paying credit card and medical debt they can’t afford to pay.

3. They can use this income to pay for their needs.

4. A person can continue paying one or two credit cards if they want and let the others default. It is expected that even if they default on other credit cards the ones they are current on will remain good as long as they are continued to be paid. This preserves some credit.

5. If you have a car you can’t afford you can simply let it go back. You may owe money but they can’t collect from you if you still owe money after it repossessed and sold.

6. If you have a house you can’t afford, with little or no equity, you can stop payments and live in the house without making payments.  Often you can be in the home for 1-2 years or perhaps even longer while it is going back in foreclosure.

7. Bankruptcy is almost always unnecessary for seniors on protected income with minimal assets. Their income and property is protected under federal and state laws.

8. Collectors cannot communicate in writing or by phone with persons represented by an attorney.

9. HELPS represents seniors and disabled persons on protected income for the purpose of having an attorney to prevent collector harassment.

10. HELPS send letters to collectors to stop harassment and is always available for questions.

11. The federal government has a program called Section 8 that assists persons, including seniors, on limited incomes with the cost of housing. There is normally a waiting period. HELPS has volunteers that can assist its members with the application process.

12. There are supplemental benefits available for veterans and surviving spouses receiving limited income. Six out of seven widows are estimated to be entitled to benefits they are not receiving simply because they don’t know about the benefit.  

 13. Probably the same percentage of veterans themselves are not receiving 

       these available extra benefits.     

       - simply because they don’t know about them.

14. Seniors on limited income can easily be placed on un-collectable status with the IRS for past taxes owed. HELPS assists persons in this regard.

15. State governments cannot garnish federally protected income like Social Security and pensions. Taxes or debts owed to state do not need to be paid.

16. Seniors who have student loan debt who are receiving protected income can often be placed on an income contingent repayment plan for the student loans with the amount being paid as zero per month.

17. HELPS assists seniors in all fifty states. Our number one source of clients is referrals from other HELPS members telling their friends, neighbors and relatives about HELPS .

18. The cost to enroll in HELPS is absolutely minimal. There is a suggested maintenance fee which at the most is less than a McDonald’s cup of coffee a day.

19. HELPS has never turned a senior away that qualified for our assistance.

20. A senior can enroll in HELPS over the phone. Money does not need to paid to enroll immediately. With HELPS you always have an attorney to talk with about these issues. There is never a cost. We are here to remove the stress of dealing with collectors.

21. We help seniors maintain financial independence on limited incomes. 

IMPORTANT MESSAGE:

Do you owe old state taxes?

Did you know that Social Security and pensions are also protected from collection by states for old state tax debt? If you didn’t, you are in the vast majority. Nearly half of all seniors are classified as economically vulnerable. Many owe old state tax debt. State tax collectors generally don’t bother to tell seniors and disabled persons that their money is safe and protected under federal law- it can’t be garnished by the state. Instead they harass them to pay no matter how little their income. Many thousands go without basics like food and medicine to pay old state tax debt from protected social security and pensions. The IRS has a system in place to recognize this - its called uncollectable status - while states generally don’t. HELPS can assist its clients to get on a non collectable status with the IRS and also stop state collections. However State tax collectors continue to harass and intimidate other seniors, who don’t know their rights. They even garnish bank accounts with income protected under federal law.

 HELPS has recently been working with the state of Oregon to introduce state laws that will require the State Department of Revenue to advise these seniors and others that their income is protected. This legislation would provide a means so that seniors may be put in an uncollectable status. It would stop harassment by state revenue agents. It would protect seniors with limited income to have that income for basic needs. This proposed legislation is in the beginning stages in Oregon. It is called LC 1830 and will come before the legislature this spring. It will be sponsored by representatives Cliff Barnhart, Democrat from Eugene and John Davis, Republican from Portland and others. HELPS believes this is truly bipartisan legislation. We are asking The AARP and others to join in this effort. Below is a copy of the draft legislation (LC1830 DRAFT 2015 Regular Session).

If there are any HELPS clients that have been intimidated by the Oregon Department of Revenue or other state collectors either in writing or by phone, we would like to hear from you. Please contact HELPS by email (info@helpsishere.org)  or give us a call at 1-855-435-7787 (toll free). We need more persons willing to share their story and perhaps testify before the legislature.

This legislation is badly needed everywhere, not just in Oregon. Low income seniors have never had a voice to speak for them in this regard. This is your chance to make a real difference in the future lives of thousands of seniors. We hope to have one state set the example and expand from there.

Help! I Can't Afford My House Payment

What do I do if I can’t afford my house payment?

It's not uncommon for seniors to find themselves unable to afford their house payments. This usually occurs during a period of instability, maybe when a spouse passes away or a source of income is lost. If your home is worth more than what is owed then you could sell it. You can find the value by calling a realtor and getting a market analysis of what your home would sell for without any improvements. If you would come away with some money after the realtors commission you could list your home for sale. You can even stop making payments while it's up for sale.

Where it gets a little tricky is when there is little or no equity in the home, meaning you can't sell it for enough to pay off the loan and cost of selling it. In that situation you can stop making the payment (remember: you can’t afford the payments and there's no equity), and live in the home while it goes through the foreclosure process. At HELPS we've had seniors living in homes without making a payment for one, two and sometimes three or more years. You don’t have to move when you stop making payments. Truth be told, the banks want you to stay in the home; it's safer and worth more to them occupied during this period. The mortgage contract allows you to stay so there's nothing wrong with this choice, it gives you time to save money for a future move and increased notice on when you'll have to leave.

Then you ask: will I owe money to the bank when the home is foreclosed? What about taxes? You may owe money on the mortgage, depends on which state you live in, but if your income is strictly Social Security and pension it's protected from collectors. That remaining mortgage, if there is any, simply gets added to the list of creditors, and they can’t collect. In most instances there's never even an attempt at collection. It's doubtful that you'd owe taxes because of a foreclosure. Our clients are generally classified as “insolvent” with the IRS so there are no taxes, if taxes were owed the client can be placed on an noncollectable status with the IRS. Otherwise you may owe taxes. 

by Eric Olsen President | Attorney

Identity Theft Part 2: What to do if Your Identity has Been Stolen

Last time we delved into what to do to prevent identity theft, but what do you do if you see signs your identity has been stolen? Everyone thinks of filing a police report, which is a great first step because it demonstrates to the credit companies that you are serious, but there's more to do to ensure you won't be held accountable for losses. For this entire process you will be making calls, sending and receiving letters. This should be documented in its entirety and hard copies kept in case you have to dispute the information later.

There are quite a few tip offs that your identity has been stolen. Unexpected withdrawals from your bank account, missing mail, or being refused health coverage because records show a condition you don't have. You may find unfamiliar accounts or charges on your credit report or receive medical bills or collection calls for accounts you never opened or treatment you never received. You might also be alerted by the IRS notifying you of multiple tax returns filed in your name or of income from an employer you don't have.

After filing the police report you should place a fraud alert on your credit reports. Contact one of the credit reporting companies and make the request; this agency is then required to inform the other two main reporting bureaus. To place this alert you will need to prove your identity. The alert itself makes it harder to open more accounts in your name since it mandates that businesses verify your identity before issuing credit. It will stay on your account for 90 days unless renewed. During this time the credit reporting agency will investigate your claim and act upon it so you should make sure to update your contact information so they can give you the results.

As a result of the fraud alert you are entitled to an additional free credit report which you should request and inspect for errors. First check key information like your name, address, Social Security number and employers. Then check for errors like accounts you didn't open and debts that aren't yours. You should put all errors that result from the identity theft into an Identity Theft Report and request that the disputed information is blocked from your credit report.

To dispute it you will have to write all three agencies explaining that you are a victim of identity theft, listing the errors (with documents), and a request that the information be removed. The companies must investigate those errors through the businesses that reported them within 30 days. They will send you a letter with the results: either maintaining the info in your file or removing it. You can appeal this decision if it's not favorable.

After contacting the credit reporting agencies you should contact the businesses that reported the errors, ask for copies of the documents used by the thief (new accounts or those with charged purchases), and change your PIN and passwords. If you don't want to do this yourself you can also give permission to law enforcement to contact them for you (although you should still change your passwords). If you have the information, you should send details about where and when the fraudulent transactions took place. You can include a copy of your Identity Theft Report or the business may have their own form. You will also need to prove your identity.

To dispute any errors on the documents you should write the fraud department (use the address provided for disputes) and explain that you're a victim, list the errors, provide documents with the errors, your credit report (black out all information they don't need) and the Identity Theft Report or equivalent. You should request that they remove any fraudulent information and send you a letter confirming the removal. To dispute an account you didn't open you should do pretty much the same thing but confirm it has been closed and removed from your credit report.

If you think a thief has submitted a change of address you should contact your local Postal Inspection Service.

If you think your Social Security number is being used fraudulently you should contact the Social Security Administration.

You can also contact the Federal Trade Commission to find out about resources available to help you.

Identity Theft: Prevention

This is part one of our two part series on identity theft where we are discussing what preventative measures can be taken against identity thieves. Next time we'll look at what should be done if your identity has been stolen. In 2012 around 16.6 million people in the US over the age of 16 were the victim of identity theft (more than 10% of those being over 50) and 68% of them reported financial losses associated with it (average loss of $1,769).

Your identity can be stolen from anything that has personally identifying information (PII) so you should consider anything of the sort “need to know.” There are many ways crooks can get your information: breaking into websites, convince you to type it into online forms/ emails, using skimmers when handling your card or hiding them on ATM machines, gas stations, a waiter may while taking a payment for your meal. Con-men also may try to get information from papers that aren't properly disposed of diving through dumpsters and opening pre-approved lines of credit or taking your account numbers.

Fourteen percent of people will experience identity theft at some point in their lives, what can you to to protect yourself from it?

Protect your mail by...

• Not using a traditional mail box
• Instead get a PO box, a mail slat or a mail box with a lock
• If you have a mail box and no intention of giving it up:
  • Remove mail promptly
  • Take outgoing mail with PII to the post office
  • Don't have a new check book mailed to it
  • Opt out of pre-screened credit opportunities
• If you go away from home request a vacation hold

Protect your information when using technology by...

• Not giving away PII by phone or over the internet unless you initiated the contact, know the company and are confidant you are actually on their web page (some phonies are very convincing, watch out!)
• Don't click links in emails
• Don't post too much information on social media, this includes dates of vacations, thieves look for that!
• Always personalize the privacy settings on your websites
• Don't send personal information over public WiFi (more information on why here)
• Avoid entering your PII into websites that have http instead of https at the front, the s stands for secure (this won't always be possible right now, since websites are still in the process of updating)
• If you sell or otherwise dispose of your computer wipe all the info and overwrite the hard drive first

You can protect yourself in general by...

• Only carrying the identification and payment cards you need for that outing and unless you need it NEVER your social security card!
• Consider your info “need to know”: if a location requests it ask why, how it'll be protected and what the repercussions are for not providing it
• Don't sign your credit card instead write “photo ID required”
• Destroy labels on prescription bottles before disposing of them or alternately see if your hospital, recycling center, or pharmacy takes them
• If you write checks to pay credit card bills don't write the full account number, just the last 4 digits
• Don't have your Social Security number printed on checks, ideally don't have your home address either
• Photocopy both sides of everything you carry in your wallet. Keep the copies in a safe place so you maintain account numbers and phone numbers
• Shred all receipts, credit offers, credit applications, insurance forms, physician statements, checks, bank statements, expired cards, and any other documents with PII
• Lock all financial documents and records in a safe place, keep the key off site if you can
• Check your credit reports and bank account statements for discrepancies regularly

Next week we will go over what to do if your identity has been stolen. What may be reassuring for people who have just discovered that their identity has been stolen is that 86% of people resolve the issues that arise within 24 hours.

Scams: Fake Debt Collection

The Fake Debt Collection Scam is an easy one to fall for. If you owe money to someone it's easy to assume that the person on the other end of the line may be a legitimate collector. Con artists trick you out of your money by taking advantage of any weaknesses they can exploit when they are talking to you on the phone. Information about you can be obtained in many ways and may be brought up during the call to establish that the caller is “legitimate”. Do not be fooled by this.

It is important to be aware of some of the more common scams. When swindlers find something that works they stick with it. The best thing is to not allow a conversation to continue if you suspect it is not legitimate. DO NOT be afraid to hang up on these people. Remember, If you have only exempt retirement income such as Social Security, VA Benefits, and/or most pensions, these callers cannot do anything to you – by law, they cannot take your income!

You might be dealing with a scammer or con artist if...

• You don't recognize the debt or loan (always check the account number).
• The caller won't give you their name, a mailing address, a company name, or a court case number.
• The caller asks for personal financial information.
• The caller uses high pressure tactics, often demanding payment TODAY, threatening arrest, or swearing. Remember, con artists know they get more suspicious over time and will try to force you to act without careful consideration.
• They offer limited payment options, be especially wary of ones requiring you to wire money or load a rechargeable money card since there is no way to prove that you made a payment.
• The caller claims to be with law enforcement (police and/or the courts will never call you regarding a debt).
• The caller (or letter) accuses you of some type of fraud and/or says that they are from a State Attorney General's office.
• You may always make a free call to HELPS Nonprofit Law Firm before paying someone who calls you on the phone.

If you suspect you are being targeted by a fake debt collector you should ask for the individuals name, company, street address (not a PO Box), and a validation notice for the debt. It may be a good idea to tell the caller that you are recording the conversation (even if you are not), often the caller will hang up immediately.

Remember - Never give or confirm personal information of any kind, particularly Social Security numbers or bank account information.

For HELPS clients: You may simply treat these calls like any other collector and tell them you are represented by a law firm, give them our name and number, then politely hang up. If you receive a letter, simply forward it to our office and forget about it. 

Fair Debt Collection Practices & Ending Unwanted Collector Contact

If you are being harassed by collectors you will be happy to know that there is protection provided for you under the federal Fair Debt Collection Act, and many states provide additional protections for their residents (not discussed here). If your debt is for household, family or personal spending this act protects you from harassment by third party collectors.

Collectors are allowed to contact you between the hours of 8am and 9pm (your time). Also, if you inform them that they are calling at a time that is not convenient for you they must stop calling at that time. If a collector contacts you at work you may inform them that you are not allowed to take calls at work. They must stop contacting you. If they call you on your cell phone, you may inform them that they are calling on a cell phone, it is costing you money to receive these calls and they must stop calling that number.

When trying to locate you, your collectors can contact friends, family members or neighbors to inquire about your location. They cannot, unless expressly asked, disclose that they are from a collection agency, additionally, they can't call the same person twice without that individuals permission or reasonable probability that the individual has more necessary information. Without your permission the collector cannot try to collect through anybody but you, your spouse or your co-debtors.

When a collector calls, they cannot misrepresent themselves as being affiliated with a different agency or the government. They must inform you if the call is being recorded or monitored (it almost always is). They cannot exaggerate the debt or its legal status. They cannot threaten legal action they have no intention of taking or mislead you about the legal nature of any forms. They cannot threaten to sell the debt to induce payment. They cannot threaten violence or other criminal action against you (this includes harm to your reputation or property), nor can they use abusive language or call repetitiously.

In most cases it is necessary to request that a collector cease communication with you in writing (we will soon have a link to a sample letter). Alternatively, you can hire an attorney. After contact has been made with the collector you will likely continue to receive a statement of account and or updates as to the legal status of your account. These are for information only and are permitted under the law; they cannot send further collection letters. The debt will most likely be sold to a new collector at some point who will send new collection letters, making it necessary to repeat the procedure.

In our experience at HELPS Nonprofit Law Firm, letters sent by individuals are often ignored. Letters from an attorney are usually taken more seriously and calls stop after they receive our letter.

HELPS provides a service: sending out cease and desist letters and dealing with the probing calls from collectors. As long as we are kept up to date with information about any new collectors who contact you, we will continue to send letters to your creditors for you. This is a multiple year process that quickly becomes tiresome for most people. For those who find it confusing, exhausting, or overwhelming; we are happy to help restore peace to their lives, stopping collector harassment and seniors well informed about their rights are in regards to their creditors.

Elder Abuse Awareness

Studies have shown that seniors who are isolated are at a greater risk for elder abuse. Additional studies have shown that struggling with debt can isolate seniors. These compounding risk factors make it especially important for HELPS, a nonprofit law firm, to discuss elder abuse as we approach World Elder Abuse Day 2014 on June 15, 2014. 

So what is elder abuse?

It's knowing, intentional or negligent act or acts that causes harm to a vulnerable adult. Like many forms of abuse it utilizes an expectation of trust towards the abuser.

Prevalence of Elder Abuse

Approximately 1 in 10 Americans over sixty have experienced some type of elder abuse.

Who's “At Risk”

• Socially isolated individuals
• Mentally impaired individuals
• Members of a household with a history of domestic violence
• Elders with a tendency towards verbal/ physical aggression
• Individuals aged 80+
• Women
• Individuals in poor physical health

Although elder abuse can happen to anyone, affecting all socioeconomic groups, cultures, races, genders, etc.

Types

Physical: causing pain, impairment or injury of senior (including restraining by physical or chemical means)

• Signs:
• Bruises/ welts/ grip marks around arms or neck
• Pressure marks
• Broken bones/ sprains/ dislocations
• Abrasions/ scars
• Burns
• Drug overdose
• Apparent failure to take medication regularly  (too much or too little)
• Broken glasses
• Rope marks
• Dismissive attitude towards injuries
• Refusal to go to the same clinic for repeated injuries
• Inconsistent explanations for injuries

Sexual: non-consensual sexual contact, or display of sexually explicit material

• Signs:
• Bruising in erogenous zones
• Unexplained venereal disease or genital infection
• Unexplained vaginal or anal bleeding
• Torn/ stained/ bloody underclothing

Emotional: causing emotional harm (mental anguish, emotional pain, or fear) to an individual either through verbal communication, or silence

• Signs
• Withdrawal from normal activities
• Change in alertness
• Unusual depression
• Unusually/ unreasonably fearful/ suspicious
• Evasive, isolating behavior
• Tense relationships (especially with a potential abuser)
• Frequent arguments (again especially with a potential abuser)
• Overhearing threats or other assertions of power or control over the individual from a potential abuser
• Habitual blaming or scapegoating of the senior from a potential abuser
• Humiliating or ridiculing the senior by a potential abuser
• Uncommunicative or unresponsive
• Behaviors that mimic dementia: rocking, sucking or mumbling to themselves
• Removal of door from seniors room

Neglect: Refusal or failure to care for the obligations or needs (physical, emotional, or social) to a senior

• Signs
• Bedsores
• Unattended medical needs
• Poor hygiene
• Unusual weight loss/ malnutrition/ dehydration (sunken eyes)
• Unsanitary living conditions (dirt, bugs, soiled bedding or clothing)
• Unsuitable clothing for the weather
• Unsafe living conditions (no heat/ running water, faulty electrical wiring, fire hazards)
• Leaving a person with dementia unsupervised

Financial: Illegally taking, misusing  or concealing funds, property or assets of a senior for the benefit of someone else 

• Signs: 
• Sudden changes in financial situation
• Items missing from their home
• Suspicious changes in wills, power of attorney, titles and policies
• Addition of names to a credit card
• Unpaid bills, or lack of medical care despite the senior having funds
• Account activity the individual couldn’t have done
• Unnecessary services, goods, or subscriptions
• Giving uncharacteristically large gifts or financial reimbursement for needed care/companionship
• Signatures on check that don't match the seniors

Healthcare fraud: 

• Not providing but charging for healthcare
• Overcharging or double-billing for healthcare
• Getting kickbacks for prescriptions
• Over or under medicating
• Fraudulent remedies
• Medicaid fraud 

At HELPS we frequently see another sort of elder abuse that's not typically considered: collector harassment. This form of abuse can be emotional and financial, and can result in self-neglect. Often people who are dealing with severe debt are also coping with additional significant issues such as the death of a spouse. Most seniors receive exempt income such as Social Security or pensions, meaning that legally, collectors cannot take their income. Unfortunately, seniors don't often understand their rights and they will pay  old debt when they should be using their money for medication, heat, or food. Many of our clients have reported that they have done without food, medication, or heating; some were having panic attacks due to harassing collections calls. We believe that nobody deserves to suffer through collector harassment. If you or a loved one is experiencing this sort of elder abuse please call HELPS to see what we can do for you.

If you notice a change in behavior in an elder,  pay attention!  The effects of abuse on the elderly can mimic dementia. Emotionally, they may be more depressed, ambivalent, hypervigilant or anxious. 

Also pay attention if the caregiver won't allow you to see the senior alone.

Reporting

Contact an Adult Protective Services Office (Find yours by clicking on your state and looking to the right of the map: http://www.napsa-now.org/get-help/help-in-your-area/) or the National Center on Elder Abuse ((855) 500-3537). To find your local Area Agency on Aging look here:  http://www.n4a.org/about-n4a/?fa=aaa-title-VI they provide support through advocacy, information, and services. There is also an Eldercare Locater help line (1-800-677-1116 which is open 9am-8pm EST) that can help confidentially refer you to a local agency. 

If the family member lives in a nursing home you can contact your state ombudsman program (Find here: http://www.ltcombudsman.org/ombudsman) their job is to advocate for residents of nursing homes, residential care homes and assisted living facilities.

For Medicaid fraud every state is required to have a Medicaid Fraud Control Unit to help prosecute Medicaid fraud, and patient abuse where the service participates in Medicaid. Individual state information available here: http://www.namfcu.net/states.

Remember that it's not your job to investigate. You should alert authorities of your suspicions and if you think someone is in immediate danger call 911.

For more information on HELPS Nonprofit Law Firm, you can visit our website at http://helpsishere.org or call us at 855-435-7787.