Hot answers tagged

177

A bit of detective work. The website lists no names for the firm. Any business, doctor, lawyer, etc, is at least going to tell you who the main partners are. The site itself looks like a generic framework with literally no content, just placeholders. A web designer's first pass for a client. But not a real site. The website for the building at that address ...


174

If I had a legitimate reason to give to you $100,000 with a $500 fee, I would ask you if it is okay to take the $500 out of the $100,000, and if you agree, I'd pay you $99,500 without any cost for you. Someone who wants to give you money doesn't ask for fees, they just deduct any cost from the money they give you. Same for lotteries, inheritances, tax ...


86

I am not going to discuss legality, because with family members you are able to give a lot of guidance and assistance without running into legal issues. The biggest problem is that when they transfer the funds to you and you invest the money, all the tax rates and tax limits are determined by your situation; plus you have more investments than you should ...


72

That would be the ultimate in insider trading. They made a stock transaction knowing in advance what was going to happen to the share price. They could easily expect to face jail time, plus the CEO would still face lawsuits from the board of directors, the stockholders and the employees.


65

There are no rules about how to handle equal offers. A seller is free to accept any offer they want. They don't even have to accept the highest offer if they don't want to. Reasons why a seller might pick one offer over another despite price include date of closing, buyer not having a house to sell, and buyer having cash rather than mortgage. However, ...


59

You are opening up a large can of worms with how you are doing this. In very positive years, you'll have taxes based on your income, potential Alternative Minimum Tax (AMT), etc. Each of the family members may be in a lower bracket, perhaps even needing to pay zero on capital gains. Even if you are 100% honest, if you are subject to a lawsuit, these ...


44

Purely FWIW, "Does this sound legitimate?" The company no longer trades on any stock market as it is in receivership. There is no administrative board to contact, and it doesn't even have a valid corporate ID any more, therefore research options are very limited,as you can imagine. Upon receipt of your signed documentation, I will put you in the ...


39

No, I don’t believe this is illegal. I think you’ve already highlighted the reasons this is done: As a service to the borrower, it allows them to lower their payment if they choose. If the borrower does start making smaller payments, it means more interest charges for the lender. The minimum payment is called “minimum” for a reason. Feel free to ignore ...


37

Definitely a scam. Some warning signs in the email: Please find attached the documents pertaining to the investment that you made in XXX Investment currently known as XXIT (XXX XXX Investment Trust) several years ago. Legal letters are usually very precise in their wording. I would expect a real lawyer to specify exactly which documents are attached. Not ...


34

It would have to be made as a "gift", and then the return would be a "gift" back to you, because you're not allowed to use a loan for a down payment. This is not to evade taxes. This is to evade a credit check. The problem is that banks don't like people to have too much debt. The bank could void the loan and go after your friends for damages under ...


32

I agree that this is a "bad idea" but I want to add in one more reason. Let's pretend your family and you are ok with all the tax ramifications and legal issues. This is still a horrid idea. You have to deal with the What Ifs. What if you get in an accident with your car, and then a law suit comes around and they decide to seize your assets? Again the ...


26

No, it is not true. That is one of the many "conspiracy theorists'" claims to not pay taxes, and is considered as frivolous (i.e.: punishable by very harsh penalties and criminal prosecution). Specifically to your question, the current Federal income tax framework was laid down in 1986, with the Tax Reform Act of 1986. It is codified under the title 26 of ...


24

Usually, when you sign up for direct deposit you have to sign a form giving your consent. This contains a clause which allows the company to make withdrawals up to the paycheck amount, in order to correct any errors. In short, if you signed up for direct deposit then you have already given your consent for them to fix errors by withdrawing money. If you do ...


21

Here's some good information: http://www.nolo.com/legal-encyclopedia/private-mortgage-insurance-pmi-30108.html The Act says that you can ask that your PMI be canceled when you've paid down your mortgage to 80% of the loan, if you have a good record of payment and compliance with the terms of your mortgage, you make a written request, and you show that ...


19

It's a scam. Here are the many signs: The bank will never ask for your password. They can access your account without it. The bank will never use a customer's account for their own business. They have their own accounts. "Some guy" is not a bank employee. Bank employees are people that you meet at the bank. Banks do not hand out thousands of dollars ...


18

In case I provide my bank account number (IBAN number in the EU), how will they be able to abuse this? There are multiple ways. In this case, it could be that once you give the details, they will mention that you need to pay something [lawyer fees, capital gains tax, other such items] before they release the funds to you. Further threatening you about ...


17

Depending on the state this might not be possible. Loans are considered contracts, and various states regulate how minors may enter into them. For example, in the state of Oregon, a minor may NOT enter into a contract without their parent being on the contract as well. So you are forced to wait until you turn 18. At that time you won't have a credit history,...


17

Here's an excerpt from VISA's Card Acceptance Guidelines for Visa Merchants (PDF) Merchant Name The merchant name is the single most important factor in cardholder recognition of transactions. Therefore, it is critical that the merchant name, while reflecting the merchant’s “Doing Business As” (DBA) name, also be clearly identifiable to the ...


16

If it were a legitimate case of them recovering money for you for a percentage, then they would be working it in a different direction. Asking for a "fee" puts this very much in suspicious scam territory. Look up the supposed bank online (do NOT use whatever links or contact information were sent to you), contact them, and ask if the person you're talking ...


16

In a genuine probate case the executor of the estate will not ask beneficiaries for money. The executor has a duty to identify the beneficiaries of the will and notify them, usually before the will is probated. There is the possibility, however, that the will has been probated and the beneficiary has not been found or the person died intestate. In this ...


15

There is no Federal law that mandates that they must re-open a closed account. They can either refuse the transfer / return the money, or they can optionally re-open your account so they get money (makes more sense for them). It is, however, in one of your agreements that they reserve the right to re-open a closed account in order to receive the deposit. At ...


15

First off, do not ever tell someone your password. Nobody who actually works for the bank would need your password to access the account. Also, it may or may not be a scam (it almost assuredly is), but it is not a good idea to let someone use your bank account in your name. What if they use your account to launder money for illegal or terrorist activities? ...


14

Legally speaking, you are responsible for the entire lease. So, if you have five months left on the lease, you are responsible for paying the rent for each of the five months. On the other hand, the security deposit must be returned to you upon completed payment of the entire lease, provided there's no damage. In most cases, you are only responsible for ...


14

California bankruptcy law requires disclosure of any gift made by the person declaring bankruptcy in the past 12 months, and any asset transfers in the past 2 years (with a couple of minor exceptions). This would most certainly include the car, if it is regifted back to you. Such a claim would likely be considered fraudulent, though this would be a matter ...


14

Here is what the Consumer Financial Protection Bureau has to say about the matter (I have added emphasis to a few key words here and there). The link is taken from the first comment on the question which was written by Moderator JohnFx, Request PMI cancellation The Homeowners Protection Act gives you the right to request that your lender cancel PMI when ...


14

But how I can prove; to this person; that I know he's trying to scam me for money. Any reason you want to prove something to scammer? Any proof you throw at him, he will be able to come up with some other story / excuse. This may end up in you believing him more. There is obviously no advantage. Best is to stop communication with the scammer. This will be ...


13

You say you are on the deed. Are you also a co-signer of the mortgage? If so, you do need to keep paying, and also make sure your mother keeps paying her half. Otherwise, you are subject to foreclosure, and a huge ding to your credit rating. You are also liable for, at minimum, the property taxes and insurance (though these may be included in the mortgage ...


13

To supplement @littleadv's answer, I discovered that our friends at both Skeptics Stack Exchange and Politics Stack Exchange have also addressed this question — at least a few times that I could find. Please refer to: Skeptics SE: Was the 16th Amendment (income tax) improperly ratified? ... with an accepted answer posted by Money's own @...


13

This sounds like a scam, how really depends on the paperwork they want you to sign. Here is an additional piece that is cause for concern: I did a reverse imagesearch on their about picture and it is a placeholder. Now there might be a reason to choose a placeholder instead of showing your partners but its at the very least unusual. Also searching for ...


12

(In my answer, I say "you". I realise you are asking for a friend.) You say that the lawyer asked for several thousand dollars up-front as a retainer. This is fairly normal. Lawyers generally charge either a flat fee, a percentage, or an hourly rate plus expenses. Percentages are unusual in a divorce and are banned in many jurisdictions. Flat-fee divorces ...


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