Task Force To Probe Privacy Issues

Washington Attorney General Christine Gregoire announced Friday the formation of a special task force to examine concerns over privacy issues related to businesses’ collecting and disseminating personal data about their customers.

Recent news reports that banks and other businesses are sharing personal data, including credit card numbers, have prompted numerous consumer complaints about the practice.

“It’s ironic that every day we warn consumers to be very careful about giving out personal data,” said Gregoire, “while every day some of the businesses they trust the most are collecting and possibly sharing that information with others.”

In response to complaints, Gregoire said her office will investigate fraudulent telemarketers who have access to information received from banks. The task force, she said, will look for ideas to stop such exchanges of information.

Chaired by Seattle Attorney Jenny Durkan, the Consumer Privacy Task Force will:

Review an array of issues involved with the gathering and sharing of personal consumer data;

Examine the adequacy and jurisdiction of current state consumer protection and privacy laws;

Recommend possible changes to strengthen consumer privacy protections to the Legislature for consideration next session.

The committee includes representatives from private industry, local retailers, the financial community, elected officials, consumer advocates, law enforcement and state and federal government agencies.

The first task force meeting will be Wednesday, July 28, at the Attorney General’s Office in Olympia. The work group is expected to submit its final report and recommendations to the attorney general later this year.

Debt sessions in Republic, Newport

Consumer Credit Counseling Service of the Inland Northwest will offer in-person services for the first time in Newport and Republic, starting next week.

Free counseling will be available by appointment to those who need help managing debt, drafting a budget or with financial education.

Michael Hayes, a representative for the group, said the service will be in Republic Thursday and Newport on Monday, July 19. Visits will be repeated in August, she said, with the hope they can be stepped up to a weekly schedule in the fall.

“Most of our clients prefer to sit down face-to-face with our counselors to tap into solid financial advice,” said service President Mark Harnishfeger in explaining the decision to extend services beyond Spokane, Coeur d’Alene and Sandpoint.

Clients can arrange to meet with a counselor by calling 1-509-327-3777 or 1-800-892-6854.

“They definitely need to schedule ahead,” Hayes said.

Loan co-signers taking chance

A co-signer endorses a loan as a favor to the borrower, without taking any payment. By agreeing to repay the loan if your son defaults on it, you help him qualify or get better terms than he otherwise would get on his own.

More than 10 percent of all consumer loans have some extra collateral such as a co-signer, according to the American Bankers Association.

Thousands of consumers co-sign loans for friends or relatives every year without realizing that it can cost them a lot of money or even ruin their credit rating, notes the Debt Counselors of America, a nonprofit organization that helps people get out of debt.

“When you co-sign, you’re taking responsibility for a loan that the lender has decided is too risky, so don’t take it lightly,” says Steve Rhode, the group’s co-founder.

The Debt Counselors point out these traps:

Co-signing can ruin your credit report.

Many loans don’t get reported to the credit-rating agencies. But for those that are, the Equal Credit Opportunity Act requires lenders to list co-signed loans as equal obligations of the co-signers and primary borrowers. Late payments can damage a co-signer’s credit rating.

Co-signing makes it harder for you to get credit.

Lenders will count the full amount of a co-signed loan as your debt, even if you’re not repaying it. That can make it harder to qualify for loans that you want and need.

You may not be aware there is a problem with the loan until the main borrower defaults.

Co-signers often don’t discover that payments aren’t being made until it’s too late. By that time, the account may be in collections, or the car that it financed may be repossessed. Co-signers are responsible for any collection costs, not to mention suffering damage to their credit report.

Debt Counselors recommends you consider alternatives. For example, you could lend your son the entire amount, or give a gift of the required down payment. Or, you can suggest that he get a secured credit card, so he can build his own credit history or help repair a damaged one.