Know Your Business

Suttons Bay - Winter 2008

Increasingly, identity theft has been a problem to individuals across the country. The following recommendations will limit the ability of anyone to steal your identity.

• Print only your initials, not your entire name, on your checks. Although the bank’s signature card will confirm for the bank how you sign your checks, a thief will not know your signature requirements;

• If you are paying a bill for a credit card, only place the last four numbers of your account number on the memo line. Do not provide the entire credit card number. The credit card company will know the account number, but the number will be protected from others who handle your check as it passes through the credit card company’s processing system;

• Put an alternative telephone number on your checks such as a work number or cell phone number, other than your home telephone number. If you have an alternate address such as a P.O. Box, use that instead of your home address;

• Never have your Social Security number printed on your checks;

• Photocopy all contents of your wallet, including both sides of credit cards, license and other identification. Keep the photocopies in a safe place. If you are traveling, and carry a passport, keep your passport in a separate place from that of your wallet. By taking these steps, you will know who to contact and will have all of the necessary account numbers if your wallet or passport is stolen;

• In the even that your wallet is lost or stolen, we suggest you take these actions to limit damage;
-Cancel your credit cards immediately by calling the toll free numbers listed on your credit card statements;

-In the even of a theft, file a police report right away where the theft occurred. This will serve as proof to credit providers that you were diligent and assist in any investigation that they may require;

-Call all three national credit reporting organizations immediately to place a fraud alert on your name and Social Security number. The alert serves as notice to any company that your personal information was stolen or misplaced and they must contact you by telephone to authorize any new credit in the future.

Reporting Organizations
Equifax - 800.525.6285
Experian - 888.397.3742
Trans Union (Formerly TRW) - 800.680.7289
Social Security Administration Fraud Line - 800.269.0271

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The information contained in this publication is meant for informational purposes only and is not intended as legal advice. Laws and their application vary based upon a client’s unique facts and circumstances. Wright Penning & Beamer disclaims any responsibility for action taken in reliance on this publication without further consultation and analysis.
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Tags: Know Your Business by Dan Penning
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Know Your Business

Suttons Bay - Winter 2008

Parents often purchase or lease vehicles in their own name and allow their children to be the primary drivers of these vehicles. In addition, automakers offer attractive discounts to employees, vendors, and related parties. In order to take advantage of these discounts, the automobile needs to be purchased or leased in a qualifying name. Often the qualifying person will allow relatives or others to have the regular use of these vehicles; however, there are some major disadvantages to allowing your name to be on the lease or title of a car driven regularly by another person.

Under Michigan Law, the titleholder or lessee is liable for injuries arising out of the use of an automobile. For example, a $10,000 claim arising out of another person’s use of an automobile you own or lease is a claim against you.

If the driver has insurance on your auto and you are included as an additional insured and if the limit of liability under that policy is sufficient, your personal assets and driving privileges may not be touched. Unfortunately, this is unlikely to be the case. All too often, the limits purchased are low (i.e. a $100,000 bodily injury per occurrence) and the policy typically fails to adequately include the titleholder as additional insured. Furthermore, it is possible that you, the owner or lessee of the automobile, will not even know if the policy is cancelled. Your own insurance will not protect you if this automobile has not been scheduled on your policy.

Another major disadvantage involves the loss of your driving privileges, certificates of registration and license plates. Under Michigan Motor Vehicle Code, if an injured person does obtain a judgment against you, your driving privileges, certificates of registration and license plates are suspended until the judgment is satisfied pursuant to the Motor Vehicle Code provisions. Additionally, all of your personal and business assets can be seized to satisfy that judgment.

Thus, is it worth jeopardizing your personal and business assets as well as your driving privileges by putting your name on the title or lease of a vehicle which is primarily driven by another individual? From a legal perspective, vehicles should be titled or leased in the name of the individual who will be the primary driver. From an insurance perspective, you should consult with your insurance agent to determine the best way to insure against potential risk.

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The information contained in this publication is meant for informational purposes only and is not intended as legal advice. Laws and their application vary based upon a client’s unique facts and circumstances. Wright Penning & Beamer disclaims any responsibility for action taken in reliance on this publication without further consultation and analysis.
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Tags: Know Your Business by Dan Penning
No Comments »