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Posted by on Apr 7, 2006 in BORROWING SOMEONE ELSE’S MONEY, RISKS WITH MONEY | 0 comments

Regulation allows potential creditors access to medical records

On the Money From the  April 7, 2006 print edition The last time you applied for a loan, the fact you had measles at age 9 probably didn’t enter your mind. Likewise, the application didn’t ask about your plans to repair that pesky left knee meniscus tear. Nevertheless, a new federal rule that went into effect April 1 — Regulation FF — grants exceptions that allow creditors to obtain or use medical information for determining credit-worthiness. Although limited to circumstances that creditors believe are “necessary and appropriate,” they may use certain health information as part of their evaluation process. Also, the rule allows creditors to share medical information with affiliates in certain situations. The Fair Credit Reporting Act (FCRA), defines “medical information” as information or data, whether oral or recorded, in any form or medium, created by or derived from a health care provider or the consumer that relates to 1) the past, present or future physical, mental, behavioral health or condition of an individual; 2) health care provided to...

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Posted by on Feb 6, 2004 in RISKS WITH MONEY | 0 comments

Use of your merchant banking account not for personal credit cards

On the Money From the February 6, 2004 print edition There was once a small business in need of cash. The business had a merchant banking (so it could accept credit cards) account established with a small Oregon bank. The business owner decided to provide his business some working capital by running his own credit card through the company’s merchant baking account. The amount was $4,000. The transaction was rejected. Why? Because according to the merchant banker, using your personal credit card to fund your own business is illegal by virtue of Federal law– 16 C.F.R. §§ 310.3 et. seq. Is this true? Hardly. But (and it’s a big but), credit card laundering is a crime. If you have a credit card merchant account for your business and attempt to generate some unrestricted working capital cash by tapping your own credit card, don’t do it. Here are some examples of restrictions on businesses that accept credit cards. Merchants shall not: Submit for payment any transaction representing the refinancing of an existing...

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Posted by on Oct 2, 2003 in RISKS WITH MONEY | 0 comments

Financial executives can be liable for company misdeeds

On the Money From the October 3, 2003 print edition If you are the proprietor of a small business (officially a sole proprietorship), there is little or no separation between business and personal money transactions. If your company borrows money, you have borrowed the money. If your business makes a promise to pay someone, you are automatically personally guaranteeing that payment. Within corporations however, there is theoretically a shield between the individual and the company when it comes to legal responsibility for financial actions. However, financial executives (and other officers and directors) within corporations are not totally insulated from personal fiscal responsibility. Corporate liability protection is not unqualified. For example a corporation cannot: Protect you from your own negligent acts. Being a director of a corporation does not protect you from personal liability from the wrongs you personally commit. For example: You run a milk delivery service and you fill in for a driver who has called in sick and run into a van full of people; you are personally liable for...

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