ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Monday, June 3, 1996 TAG: 9606040007
SECTION: MONEY PAGE: 6 EDITION: METRO
COLUMN: Money Matters
SOURCE: MAG POFF
Q: I have been participating in dividend investment programs for several years and I now do this for 16 separate stocks. Some people I know are confused about dividend reinvestment programs, and they would like me to handle the accounts on their behalf. I plan to charge a small fee for this service. Would this get me into trouble with the authorities?
A: Kenneth Schrad, spokesman for the Virginia Corporation Commission, said the service you propose might very well bring you within the definitions of an investment adviser or an investment planner. That is because you plan to charge a fee for a financial service.
Schrad suggested that you call the commission's Securities Division to discuss exactly what it is that you propose to do. The number is (804) 371-9051.
Safe desposit box
Q: What items do you recommend putting in a safe deposit box?
A: There are no rules. You use your safe deposit box for safekeeping of anything that is of value to you or that might be stolen.
You must use your box for business or investment purposes if you want to take a tax deduction for the cost of a safe deposit box. An example might be the storage of stock certificates or bonds, but most of these securities are held these days in the name of the broker. Besides, the fee for a safe deposit box is very low, so the tax benefits of a deduction would be minimal.
You probably would store important papers in a safe deposit box. These items would include birth, death and marriage certificates and deeds to property.
Perhaps you want to protect family valuables, such as heirloom jewelry, from the possibility of theft at home. Or perhaps you want safekeeping for a valuable coin or stamp collection.
You need not fear using your safe deposit box for a will, cemetery deed and funeral instructions. Some states bar admittance to a box if one of the box owners should die, but that is not true in Virginia. State law allows the next of kin or a deputy to search the box for those three documents. An official of the bank must stand by to be sure only those documents are collected. Only the executor or administrator can collect other assets from the box in the case of a death.
If you store those types of documents in your box, make sure a trusted relative knows where to find the key.
Two area lawyers have provided supplementary information to a question that appeared in this column two weeks ago. The question was from a woman being harassed by a debt collection agency. The following information comes from Henry L. Woodward of Legal Aid Society of Roanoke Valley and Martin Wegbreit of Client-Centered Legal Services of Southwest Virginia at Castlewood.
A major point is that any collection agency must drop all contact if requested in writing by the debtor. Federal law requires collection agencies to stop dunning after they receive a written request to stop. After telling the agency to cease all communications, your letter may (or may not) explain why you can't pay right now and what your expectations are for the future. The agency can then send one last letter explaining what it proposes to do. Be sure to send your letter by certified mail with return receipt requested. Keep a copy of the letter and the receipt.
Social Security benefits cannot be taken for payment of debts, and any threat to the contrary is a violation of the Fair Debt Collection Practices Act. And the collection agency can seize a car only if the debtor has equity in it of more than $2,000.
The Fair Debt Collection Practices Act allows you to sue debt collectors who violate the law. You could collect damages up to $1,000 plus actual damages, costs and attorney's fees. Consult a lawyer if you think this has happened.
The Legal Aid Society of Roanoke Valley distributes a brochure on "What You Should Know About Debt Collection."
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