Letters - Letter to the Editor

Kiplinger's Personal Finance Magazine, April, 2001

GUARDING YOUR SECURITY

PROTECTING YOUR GOOD NAME--and your money--is a partnership, says a bank rep who responded to our March stories on identity theft. It depends not only on the vigilance of banks and other institutions but also on the care of customers themselves, in an era when thieves are more daring than ever. For the latest way crooks are conning their victims, see "Protect Your PIN," on page 99.

IDENTITY THEFT

Your articles on identity fraud were an eye-opener for the public ("The Day They Stole My Name" and "Anatomy of a Fraud," March). As a service representative for a commercial bank, it frightens me how easily a con artist can steal someone's identity and wreak havoc on his or her life. While great responsibility lies with the employees of financial institutions, we aren't the only ones who should be held liable. Some clients make it difficult to follow security procedures by insisting that exceptions be made in cases where proper identification is required. Sadly, it's often those exceptions that become statistics.

--SAIMA SIDDIQI, New York City

My experience was not exactly identity theft but more like identity giveaway. Thanks to an error at my 401(k) administrator, I received a year-end statement for someone in another office with the same last name. I only hope that whoever received my name, address, account balance and social security number "threw it away," as our company executives suggested. Yes, you can safeguard your wallet, leave the checkbook at home and shred financial documents. But some things are out of your control.

--LAUREL ROHRER, Fredericksburg, Va.

CRUISE CONTROL

As a travel consultant with 18 years of experience in one of the largest agencies in the country, I have never come across what you described as repricing of cruises ("Sticker Shock," Feb.). Cruise lines may indeed lower the cost of a cabin after a deposit has been paid, but a savvy agent will check to see whether the client is eligible for any reduction before final payment. Savings are passed on to the client, not pocketed. We rely on repeat business and referrals, which we earn by providing first-class service, expertise and value for the client's money.

--TAMSIN ALLPRESS, Oakland, N.J.

GO FOR GROWTH

While I agree with the major point of your story "Go for Growth" (Jan.), I disagree with the statement "Maybe you should forget about dividends." Growth can also include dividend growth; even if dividends don't amount to much when a stock is purchased, they can grow to be a significant and steady income stream. Companies that are able to generate larger amounts of real cash each year and pay increasing dividends will be around for a long time. They are the ones you should focus on when building a portfolio for retirement.

--WILLIAM COOPER, Sudbury, Mass.

HOME EQUITY

In "Good News on the Home Front" (Feb.), you say home-equity borrowing is often the cheapest form of debt. While that's true in some cases, homeowners who use a home-equity loan to pay off a credit card are exchanging unsecured debt for secured debt. If they find themselves unable to pay, they could lose their home. Unless they address the root of their credit problems, a home-equity loan serves only to cover up bad money management and buy consumers some time. Home-equity loans are a good idea only when combined with a detailed long-term financial plan.

--MIGUEL FERNANDEZ, Reseda, Cal.

EQUAL EMPLOYMENT

Your article about the gap between women's and men's wages ("Ahead," Feb.) leaves an inaccurate impression about the time it takes for the Equal Employment Opportunity Commission to resolve a discrimination claim. In fiscal year 2000, it took the EEOC an average of 216 days to resolve a charge through the investigative process, and 96 days to resolve a case through the voluntary mediation process.

--DAVID GRINBERG, EEOC, Washington, D.C.

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