How to Answer a Credit Card Lawsuit

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					Lawsuit Agony
 Fear of Litigation is Paralyzing Our Profession!




                                          For Information Contact:
                                          Mark Seguin 903-533-9123
                                          markseguin@prepaidlegal.com
                                          P.O. Box 8421 Tyler, TX 75711
Talking Points Memo
•Frivolous Lawsuits

• Identity Theft

•How Does the Threat of a Lawsuit Affect YOU?

•(NPI) How is it Transmitted & Do You Have it?

•Are You Protected?
PERSPECTIVE
•My goal is to provide you with a proper
perspective of the risk and liabilities of
lawsuits and provide some common sense
solutions that will protect you, your family
and your livelihood.

•Perspective…
     Caution!
You are about to enter a

  NO SPIN ZONE
Statistics
Small Business = 1 to 99 employees

• 22.9 Million Small Businesses in the US*
• 36.6 Million Home Based Businesses*
• That’s 99.7% of all employers*
• Small Biz Creates 75% of US new jobs*
• Small Biz Employs half of all private sector
  employees*
• Small Biz Pays 44.3% of total US payroll*


             *Statistics and Data from 2003 SBA office and U.S. Chamber of Commerce
Statistics

“#1 Reason Small Business go
out of Business is Under
Capitalization”*


“#2 Reason is Frivolous
Lawsuits”*

                      *http://www.ftc.gov website link
Statistics

   A Richmond, VA.-based company's liability insurance
 premiums jumped from $5,000 in 2000 to $27,000 last
         year. The company has never been sued.



   Cost of litigation $88 billion a year for small
                    businesses*




                                   * Houston Business Journal - June 18, 2004
 Statistics
  It’s Not If, But When
      100 M

        75 M                                                 93
                                                           Million
        50 M

        25 M
                               36
             0               Million
                          Hospitalizations                 Court Filings
                             in 2002*                       in 2002**

You Are More Than Twice As Likely To Be In Court
Than You Are To Be Hospitalized!
*Hospital Statistics, American Hospital Association, 2002 Edition
** Examining the Work of State Courts, 2002
Frivolous Lawsuits

“Frivolous lawsuits are on the rise and
are having a devastating effect on our
small businesses. While small
companies take in 25% of America’s
business revenue, they bear 68% of
business tort costs—a staggering $88
billion!”



                          *U.S. Chamber of Commerce
Frivolous Lawsuits
Ryan Warner is a volunteer who runs an annual
softball tournament in Page, Arizona, that usually
raises about $5000 to support local school sports
programs. But not this year.
A man who broke his leg at a recent tournament
sliding into third base filed a $100,000 lawsuit
against the city, and Warner fears he may be named
as a defendant.
“It’s very upsetting when you’re doing something for
the community, not making any money for yourself,
to be sued over something over which you had no
control,” he says. So Warner canceled the
tournament.*

                                 *Newsweek December 15, 2003
Frivolous Lawsuits
            City of Deep Pockets




 In Chicago, Mayor Daley reels from a raft of suits,
 but won't hesitate to use the law when he needs it

It's raining in Chicago, and Mayor Richard M. Daley is
    worried. Slick streets and sidewalks could mean
                accidents—and lawsuits.
                                   * NEWSWEEK DECEMBER 15, 2003
The Search for a Pot of Gold
Want to live here?
          Stats on Identity Theft



Google search of Identity Theft on
November 15, 2003 yielded 80,000
results.


Google search of Identity Theft on
November 16, 2003 yielded about
101,000 results.
            Stats on Identity Theft



Google search of Identity Theft on
March 20th, 2006 yielded about
81,000,000 results.

From 80,000 to 81,000,000 in less than
three years …
                      Stats on Identity Theft
                “America’s Fastest Growing Crime”
                             Source: Federal Trade Commission



ID Theft hits 1 in 4 US Households                                Source: Federal Trade Commission




You don’t have to have good credit for someone to make you
responsible for bills and criminal charges   Source: Federal Trade Commission




There are 1,100 ID’s stolen every hour                             Source: Federal Trade Commission




Less than 5% of Criminals are caught                              Source: Federal Trade Commission




Emotional impact is “devastating”, likened to “Violent” crimes
such as Rape, Violent Assault, and Repeated Battering
                                                                Source: Identity Theft Resource Center
                         What is Identity Theft?

Five Common Types of Identity Theft




Drivers License   Social Security      Medical       Character / Criminal     Financial
 Identity Theft   Identity Theft    Identity Theft      Identity Theft      Identity Theft




                  Identity Theft is not just about Credit Cards!
     ID Theft is an international crime and access to an attorney may be critical
            What is Identity Theft?

“An 82-year-old grandmother, quit driving
during the Truman administration.”
In 2001 she “suddenly found herself in
what she describes as a „living hell‟ after
one of her neighbors, arrested on drunk-
driving charges … pretended to be her.
„I was told there were warrants for my
arrest … I was afraid to answer the
phone‟.”

                        AARP Bulletin, February 2004
                 What is Identity Theft?
           The Secret List of ID Theft Victims

A Chicago woman “applied for a job at a local Target
department store and was denied. The reason? She
already worked there – or rather, her Social Security
number already worked there. Follow-up investigation
revealed the same Social Security Number … was used
to obtain work at 37 other employers.”

“People need to wake up to this problem. They are
destroying people‟s credit, Social Security benefits, and
everything else.”
                                   MSNBC, January 29, 2005
                         Medical Identity Theft?
Medical ID Theft Can Wreck Victims' Health and Finances
New Report Says More Than 19,000 Complaints of Medical ID Theft on File

Joe Ryan knew something had to be wrong when he got a bill for a $40,000
operation he never had. So he called the hospital.

"I said, 'This must be a joke,' and they said, 'Well, you're Joe Ryan, aren't you?'"
Ryan said.

Then the hospital verified Ryan's Social Security number and date of birth. It wasn't
a joke -- the surgery had been performed. It had been performed on Joe Henslik,
though, a career criminal who had stolen Ryan's identity.
Henslik later died, but police think he first confessed on voice mail, saying, "I had to
get in the hospital, but I had no insurance."

Ryan was a victim of medical identity theft, which has ruined his credit and sent his
small business into a tailspin.

                                                                     ABC NEWS May 3, 2006
                  What is Identity Theft?

Character / Criminal Identity Theft
Thieves mask their criminal activity
behind your identity

 ♦ You could be arrested
 ♦ You could be denied employment because
   of fraudulent criminal records found during
   routine background checks
 ♦ Security checkpoints at airports could
   become a nightmare for you
 ♦ You could be denied a passport and be
   barred from leaving the country
          What is Identity Theft?

The October 2005 issue of Kiplinger’s
Personal Finance portrayed a different
side of Identity Theft when they
devoted an entire section to
character/criminal identity theft.
“Identity Theft Update: Could losing
your wallet land you in jail?”*
                       Kiplinger, October 2005



                                    * from the cover
            What is Identity Theft?

Financial Identity Theft
           Thieves use your information to open
           new accounts or to gain access to
           existing accounts

            ♦ Thieves rob your accounts
            ♦ They rack up outrageous charges on credit
              cards, take out new loans, and more
            ♦ They destroy your credit, forcing you to pay
              higher rates
            ♦ You can absolutely be held responsible for
              the debts incurred by the thieves in your
              name
               What is Identity Theft?
Order the Federal Trade Commission free report
Take Charge: Fighting Back Against Identity Theft
Phone:    877.IDTHEFT
Web:      http://www.consumer.gov/idtheft


  When you read this, it will become crystal clear
 why it is good for you to have an ID Theft service
    that offers Legal Access, Monitoring, and
 Restoration versus resolution or reimbursement.
                               What is Identity Theft?
   An excerpt from the report:

   “The Fair Credit Billing Act establishes procedures
   for resolving billing errors on your credit …
   accounts … To Take Advantage of the law’s
   consumer protection, you must:”

   •send your letter so that it reaches the creditor
   within 60 days. If an identity thief changes the
   address on your account and you didn’t receive the
   bill, your dispute letter still must reach the creditor
   within 60 days of when the creditor would have
   mailed the bill.”* … or you owe the money.
See page 13 for additional information
                                                         *Pg. 19
How Does the Threat of a Lawsuit Affect You?


 1.   Student Injured on the Range

 2.   Student Damages Someone Else’s Property

 3.   Student Holds RiderCoach and Sponsor
      Responsible for Faulty Equipment and/or
      Course

 4.   Student Injures another student or person
       NPI?

    NPI!
   how is it
 Transmitted
      and
Do You Have It?
                                               ™
                What is Identity Theft?

Lost, Hacked, or Stolen… Notables
    ChoicePoint: 145,000
    CitiFinancial: 3.9 Million
    MasterCard: 40 Million
    AOL: 92 Million
    Veterans Admin: 26.5 Million
                                      So many laptops
    Bank of America: 1.2 Million     … we lost count
                                      i.e. Hotels.com
    Acxiom: 1.2 Billion              (Ernst & Young)

                    You can’t control The DataBased You
         Important Legislation (NPI)

The October 2005 issue of the Alberta
Venture (business journal) talked
about a new breed of criminal.
“They’re not after your money, your
equipment, or your inventory. A new
breed of criminal wants the personal
information you keep on customers,
suppliers and employees. And if you
lose it, you’ll wish they went for the
cash.”*
                                       * Pg 81
            Important Legislation (NPI)

Important Legislation…

   F.A.C.T.A.

   Gramm, Leach, Bliley Safeguard Rule




                       Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You
               Important Legislation (NPI)
   Fair and Accurate Credit Transactions Act (FACTA)

Applies To Every Business And Individual Who Maintains,
Or Otherwise Possesses, Consumer Information For A
Business Purpose.

Employee or Customer information lost under the wrong
set of circumstances may result in:

•Federal and State Fines of $2500 per occurrence
•Civil Liability of $1000 per occurrence
•Class action Lawsuits with no statutory limitation
•Responsible for actual losses of Individual ($92,893 Avg.)
                            Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You
             Important Legislation (NPI)
      Gramm, Leach, Bliley Safeguard Rule
Eight Federal Agencies and any State can enforce this
law
Applies To Any Organization That Maintains Personal
Financial Information Regarding It’s Clients Or
Customers
Non Public Information (NPI) lost under the wrong set
of circumstances may result in:
•Fines up to $1,000,000 per occurrence
•Up to 10 Years Jail Time for Executives
•Removal of management
•Executives within an organization can be held
accountable for non-compliance both civilly and
criminally
                         Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You
             Important Legislation (NPI)
       The Safeguard and The Security Rule

Require:

•Appointment of an Information Security
Officer

•Have a written policy to protect NPI

•Mandatory Training for
Staff and/or Employees who have access to NPI

                        Be Sure To Check With Your Attorney On How This Law May Specifically Apply To You
                 The Cost of Identity Theft

The Cost to Businesses
    Employees can take up to 600
     hours, mainly during business
     hours, to restore their identities
    Employers will be held liable
     if lost information is traced back
     to their businesses
    Employers are exposed to class action lawsuits,
     with fines of $2,500, or more, per employee…
    Laws now allow for jail sentences for Executives…
              The Cost of Identity Theft

Cost to You as an Identity Theft Victim
                    The average dollar amount charged
                     in Identity Theft: $92,893
                    The average number of checks
                     written in Identity Theft: 74.6
                    The average number of credit card
                     applications approved through
                     Identity Theft: 8.4
Laws hold victims partially responsible for fraudulent
debt after 48 hours, and hold them fully responsible if
not reported within 60 days…
                        NPI

       ID Fraudsters Stay One Step Ahead
 “Identity thieves are increasingly finding their
jackpot is not in your mailbox or kitchen trash
    bag, but the computer files stored at your
chiropractor, accountant or doctor … the future
 is not burglaries of your home, but of dentists,
            CPA‟s, insurers etc …”*
                      MarketWatch, October 2, 2005
             Identity Theft


   “Thieves are so bold that they
held a conference in Kiev, Ukraine,
 for people interested in breaking
    into this Growth Industry”

                              - USA Today
          Identity Theft


According to the USA Today,
Identity Theft is the number
one criminal concern for law
 enforcement over the next
          decade.
                           - USA Today
               In The News

The DataBased You    ™




The July 2004 issue of PC Magazine
laid out what we have dubbed,
The DataBased You.  ™



“Nowhere to Hide. The average
American is listed in at least 50
databases, and that’s not counting
government files.*”
                              * Pg 129, PC Magazine, July, 2004
              Identity Theft

The DataBased You    ™




     Meet The DataBased You™




Where YOUR personal information lies!
               Identity Theft
The DataBased You™        Social Security Number
                                                      SSA DBS
     Insurance Claims         Your Name
                                                            Address
     C.L.U.E. DBS, etc        1000‟s of aggregators
                                                            1000‟s of DBS
Driver‟s License # & Record                              Fingerprints and DNA
DMV DBS                                                  FBI, State, and Local DBS
  Military Record                                       Legal History
  DOD DBS                                               State and Federal Court DBS
Criminal History                                         Credit History
NCIC DBS                                                 Credit Repositories‟ DBS

Real Estate Deeds                                      Birth Certificate
Clerks of Court DBS                                    Choice Point DBS, State, etc
                                            Car Registration & Info
Medical Records                             DMV, Local Treasurer, On Star, etc
MIB DBS, etc        Phone Number and Tracking Info
                                                   The Databased You
                    1000‟s of aggregators
                Identity Theft
                       ™
The DataBased You

There will come a time
when The DataBased You ™
becomes more valuable and
relied upon than THE you
you look at in the mirror
everyday.
It is not just about credit monitoring.
                      Your Corrupted Identity
 The DataBased You … Corrupted!
                    ™


 Your Insurance Claims …          Your Name         Your Social Security Number
 by you and those who                              … used by how many people?
 have claimed to be you!
                                                           Your Address
                                                           …and other addresses you
Your Driver‟s License # and                                  are not aware of.
Record . and the DUI in your                               Your Thumbprint
name from someone else!
 Your Military Record                                      Your Legal History … and
                                                           the criminal history others
 Your Real Estate Deeds
… and whatever other property                              created in your name.
bought in your name.                                       Your Credit History
                                                           … 70% have inaccuracies
Your Car Registration …         Your Phone Number            Your Birth Certificate
and the cars you did not          … and other numbers        …that someone else
buy, but are in your name.        associated to you that     might be using.
                                  you don’t know about.
                Your Identity
                         ™
The DataBased You

       If The DataBased You™ is
       corrupted, you are going to
       need a modern day Knight of
       Camelot to come to your aid.


              Life Events Legal Plan
                       with


        =           Restoration=
               ID Theft Monitoring
                        &
        __________________________
                                       YOU
           The Best Answer

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 Wall of Security Around YOU, your
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Received A Traffic Ticket?



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Signed   a Contract?


Prepared A Will?
          LIFE LEGAL ISSUES
 HOME & PROPERTY          BUSINESS /
                          CORPORATE
CONSUMER,
CREDIT &                          FAMILY
BILLS
HEALTH &         LEGAL            AUTO &
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MEDICAL

Identity Theft                FINANCES &
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Please Note:

The information provided in this presentation is for
illustrative purposes only and is not meant to be a
contract or full explanation of plan benefits. To
obtain details on state specific plan benefits and/or
coverage in your State, please contact:


 Mark A. Seguin
 Office 903.533.9123 Fax 903.533.0088
 markseguin@prepaidlegal.com
 P.O. Box 8421 Tyler, TX 75711

				
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