1. My friend told me he happened to check his bank balance, and only then realized a restaurant over-charged him $500 on his debit card!

Very scary! And that’s the problem. The moment that charge goes through, it zaps that amount right out of your checking account, even if it’s a mistake. If you’re counting each dollar, that could put in the red — and it’s not your fault.

2. What is the first thing you should do if there’s a incorrect withdrawal with your debit card?

First, get your proof lined up. When you pay with a debit card (and not a bad idea if you use a credit card) keep your receipts and instantly reconcile the amount charged with your statement or online banking account. If you got hit with an overcharge, it’s going to be a lot easier to prove if you’ve held on to your receipt.

3. Who do you call first? The bank, or the business that charged you the wrong amount?

Call the merchant first. Ask for the manager and explain the situation. Put them on notice there was an error. If they agree there was a mistake, they can refund your money. Problem: it may take several days for the money to go back into your account.

4. Several days? What if I need that money put back in my account right away? It wasn’t my fault I got overcharged!

That’s why you call the bank next.  Ask for a supervisor. Explain the situation and that you need to have it fixed ASAP. There’s stuff they can do to fix the error quickly, and to restore the money to your account.

5. What stuff?

The bank can do a conference call with you and the business. The bank listens to you agree to give the merchant permission to talk about your account. Then the bank asks the business for some secret codes right on your receipt that only the two know. It’s stuff like the exact time and date the charge went through. Once the merchant confirms it knows this inny info, the bank knows it’s not someone trying to pull a fast one. If the merchant confirms there was an overcharge, the bank can put that money back into your account in minutes.

6. Would this situation have been different if I paid with a credit card?

If you’re charged incorrectly with a credit card, your available balance may drop, but you can call the credit card company and put the item in dispute. Once this process starts and the credit card company’s investigation begins, the charge to your account is reversed.

7. Why am I at greater risk using a debit card in general?

The federal regulations that govern theft or errors for debit cards are different than the regs for credit cards. So make sure you know the rules — here’s a link to the Uncle Sam’s consumer protection agency, the Federal Trade Commission. And remember — if you report an unauthorized purchase, the bank could take 10 long days to investigate. You may get a refund. Or you could lose everything. 

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at Examiner.com. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.

1. First of all, some overdraft fees seem outrageously high! Is there a limit on what banks can charge? 

Nope! We surveyed a handful of banks and asked about their overdraft fees. Turns out, they range from $25 to $35 per bounced item. And that’s legal.

2. One time my bank hit me with four overdraft fees when I had money in my account! How did that happen?

Annoying, isn’t it? We found sometimes you may be charged more overdraft fees than really necessary. Here’s why: In order to hit you with more fees, banks are cashing your checks in the order they want to. They call it “check re-ordering.” As a result, consumer advocates warn, people are racking up huge penalties. And most have no idea it’s even happening.

3. Huh? How do banks do that?

One viewer who called us said his statement showed he had $1174.94 in his account and on one day he spent $200, $130, $80, and $1250. Okay — his bad – he went into the red. But instead of the bank okaying the little expenditures and rejecting the big one, in the order he wrote the checks — which would have been one overdraft fee of $35 — it reordered the debits and took out the big one first. That allowed the bank to charge him four overdraft fees, quadrupling his penalty to $140.

4. Is re-ordering the checks legal?

Yup. We found there are no rules for how banks must process checks. The law says as long as banks disclose their policies to you, they can charge overdraft fees and clear checks anyway they want.

5. What do you mean disclose it to me? I’ve never seen any signs at the bank admitting this!

It’s those little agreements you get handed when you open a checking account. (Did you read yours?) Sometimes they’ll send you amendment notices in the mail, written in font size 6. (Do you read those?) We found some “disclosures” say things like, “we reserve the right to change the order of payment without notice to you” and another, “the bank may post items presented against the account in any order the bank chooses.”

6. Wow. Do most banks do this?

We surveyed almost a dozen banks and found more than half admitted they pay the largest checks first. The American Bankers Association told us: “It’s a proprietary decision.” And they said, “Most customers want those big bills paid first because they’re more important.” The banks claim this is to your benefit, so for instance, your larger-sized rent check clears. But the banks are making the choice about which of your checks clears first, not you.

7. Is there anything I can do to avoid getting re-ordered and slammed with fees?

Well sure, keep a very careful eye on your spending and checking account. The American Bankers Association told us you can also shop around for a bank that doesn’t hit you with big overdraft fees. There’s a bill pending in Congress right now to stop this practice. If you feel strongly about it, call your lawmaker.

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at Examiner.com. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.

1. I’m looking to refinance and need help. How can I tell right away if it’s a scam?

Scam artists know people who are in dire straits are vulnerable — and are likely to be lured in by ads with problem-solving promises. Listen for tempting pitch lines like: “Been turned down for a home loan? We’re guaranteed to help;” “We have a 96% success rate;” or “We can save your house.” Experts say if you bite on those phony promises, you’ll be lured into financial disaster.

2. What if I hear a tempting offer like that and I just want to check it out?

If we haven’t scared you away by now, the biggest red flag is any person or firm who claims they can modify your loan or save you from foreclosure — and asks for money up front. Run. It’s flat out illegal for company to demand a fee in advance. If it’s a legit re-fi or loan modification, your costs will be due at closing time, just like your original loan.

3. Have you really heard of someone getting ripped off? How much money are we talking about?

Oh yes! One of our viewers heard an ad for a company promising to slash mortgage payments. He called and was told they had “people working inside his mortgage company and they might reduce his monthly payment by 35%.” Then they said, “Just send us $1200 to get things started.” The guy did. They took his money and ran.

4. Are there any legit places that can help me with a tricky re-fi or save my house that’s in foreclosure?

Sure. The feds know it can be complicated, so Uncle Sam set up a couple of websites to turn for legit, free help. These and only these sites are the official places you should go: www.makinghomeaffordable.gov and www.hopenow.com

5. Oh, I saw some other websites that looked similar to those in an email I got!

Don’t do it! Don’t go there! The Feds are issuing alerts warning that criminals are making copycat websites. Don’t be fooled. They’re out to swipe your identity or pocket your hard earned money.

6. What if I’ve been turned down for a loan modification and a company offers to give me a second opinion?

Never pay for a second opinion if you’ve been turned down for a loan modification. That’s a scam. Some criminals also convince you they can “handle your mortgage” for you, so just send them your monthly payment instead of the bank. Guess where that money goes? Straight into their pockets — and your problems get even worse.

7. What should I do if I already got scammed by one of these companies or found one that seems suspicious?

If you live in Massachusetts, Attorney General Martha Coakley wants to hear from you. Her office has already filed complaints against three private companies in the past few months, each fraudulently offering to help get new loans. You can file a complaint online by clicking here. The Federal Trade Commission has also cracked down on these con artists and takes consumer complaints: www.ftc.gov

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at Examiner.com. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.

1. You mean people are still cashing those phony checks?

Oh yes, big time! You can’t believe the calls and emails we still get on our tip line. But we found the scammers have gotten even “scammier” and moved beyond sending fake checks for international lottery winnings and inheritances from Nigeria.

2. How has the scam changed? What’s the latest?

Viewers have gotten ripped off applying for jobs, renting apartments and selling stuff online. Recently we heard of one girl who was hired over the phone for a nanny job. Her “employer” sent a check, told her to cash it, keep part of it, and asked her to send the rest to a person who would enroll the child in summer camp. She did and guess what ended up happening? The job was bogus, the camp was bogus and the check was counterfeit! The girl cashed a counterfeit check and now has to pay the money back to the bank!

3. Pay the money back to the bank? Are you kidding me?

No! Once you endorse the check, you’re guaranteeing the check is good and once it bounces, you’re responsible to make good on it.

4. Why can’t police catch them?

Sometimes the con-artists operate from overseas and it’s tough for authorities here to get police from another country interested in helping. Other times the amounts of money are too small for local officials to invest their resources.

5. So the crooks get away with it? Isn’t there anything anyone can do?

Now there is! The FBI just announced that it wants people who get scammed to become their front line of tracking these schemes. Behind closed doors agents are now analyzing and organizing all the scam emails and checks people have been sent to see if they can discover a pattern that will lead to the bad guys.

6. What if I’m not sure a scammer has contacted me?

The FBI still wants you to call. If you applied for job, answered a want ad or got an email where things just seem a little fishy, contact them. It could be a piece in a puzzle they’re trying to solve.

7. The FBI is a big place, how should I find this special scam unit?

This is their new website: www.ic3.gov. Reporting any information could make a big difference! If many people ripped off by the same scammer come forward, the amounts of the losses add up and that makes a big difference when the Feds try to prosecute.

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at Examiner.com. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.

1. I just got my bill and my jaw dropped when I saw the assessed value! There’s no way my house would sell for that amount right now!

We’ve heard so many people gripe about that. Keep in mind this year’s tax assessment is based on 2007 real estate sales. The state-mandated formula for calculating property tax means values always lag behind a year or so. The ups and downs of the market catch up with you eventually, but if the real estate market tanks (or spikes) you won’t see it reflected in your assessment right away.

2. What should I do if I STILL think my bill is too high?

Instead of paying the price, pay a visit to your town hall or this website.  Ask for, or print out, a property tax abatement form.

3. Okay, so I got it. Now what?

Do some research! Since an abatement may be granted based on comparing your home’s value to others in your neighborhood, check for info on comparable local property sales. Remember — you have to look for 2007 transactions. Many cities and towns have all the data on this website. Other communities have sales information available in the assessor’s office. Abatements may also be granted based on mistakes or errors in the description or measurement of your home. Has your community’s assessor actually inspected it recently? They may be thinking you have three bathrooms, but you really only have two. Or you have 3,000 square feet, but really it’s 2800. You may want to suggest the assessor pay a visit to your house if it hasn’t been checked out recently. (Um, remember, if they don’t know about that new finished basement or your snazzy new kitchen, your assessment could go up.)

4. Then what happens?

Submit the info to the assessor’s office. And wait. Sometimes it takes a couple of months for the town to get back to you. If you prove your home was worth less than what the assessor thought, then you win! You get a letter telling you the amount of your abatement. If you get the big “rejected stamp,” called “denied” in assessor jargon, you can still plea your case to the appellate tax board, but that can be costly and time consuming. You may also need to hire an attorney. So try to put all the documentation you can in your initial application. Experts told us — doing your homework is a big asset.

5. Where am I more likely to get an abatement?

We polled dozens of Massachusetts’s communities and found in Newton last year 75% of abatement requests were granted. In recent years, Belmont okayed 80% of applications. Athol almost 70%, Brockton and Gloucester grant more than they deny. So do Holden, Northboro, Sudbury, Quincy, Waltham, Wilmington and Westford.

6. Where am I less likely?

North Reading denied 55% of applications. Boston denied almost 70%. Also saying no: Andover, Braintree, Medford, New Bedford, Plymouth, Saugus and Wellesley.

7. Is it worth all this trouble? How much can I really save?

We found some homeowners saving anywhere from a couple hundred to several thousand dollars.

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at Examiner.com. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.

1. How can it not be a bargain? The signs say 20, 30 and 50% off!

When the store’s in true liquidation it means it’s bankrupt. A third party, called a liquidator, is hired to come in and sell every bit of merchandise it can. Those tantalizing signs go up and sellers try to convince you the prices are going down. But you – savvy buyer – need to remember often that’s just hype.

2. Hype?

Yeah. Hype. First, some liquidators artificially raise the price. Then, they lower it. Voila. Thirty percent off.  Yeah, 30 percent off their weasely raised price.  That’s a false sale, and it it’s illegal in Massachusetts. But it’s difficult to discover, and more difficult to prove. 

3. How do I know if I’m getting a bargain?

Comparison shop. Make sure you know the real price of your potential purchase. Then go to the store and see if you are really getting a deal!

4. What if something goes wrong with the item I buy. Can I return it?

Open up whatever you bought before you leave the store. Make sure what’s inside is what’s supposed to be inside and that it is not damaged. You are in a much better position to make your case while you are still in the store.

5. If there’s a liquidation sale in Massachusetts, wouldn’t state consumer protection laws apply?

Not necessarily. Regulations for liquidations are set in bankruptcy court rulings and they may allow ‘as-is’ purchases, in which case you’re stuck with what you get. The rules are different for every liquidation. They’re required to post their rules and return policies just like any other store, but we know that doesn’t always happen. So if you don’t see signs that give you the scoop make sure you ask before you make your purchase.

6. What if something goes wrong with my purchase after the store is closed for good?

We can’t say this enough: If you are making a liquidation sale purchase, pay with a credit card. If you don’t get what you paid for, you can call your credit card company and dispute the charges. They’ll investigate and you may be able to get the purchase price refunded. If you paid cash and the store is closed, you are pretty much out of luck.

7.  I have a gift card for a store that’s in liquidation, what should I do?

Some stores will honor them and some won’t. (The decision also must be approved by the bankruptcy court.)  If the place is accepting gift cards or gift certificates, use them right away. Once the store closes for good they’ll most likely be worthless.

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (http://www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at the Boston Examiner. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.

At least that’s what one recent case suggests.

A mother and her son were guests of a married couple. As the visitors attempted to leave in the evening through their hosts’ back door, the son fell down a flight of steps and impaled himself on a protruding piece of pipe.

His mother subsequently sued the hosts, insisting that they were negligent in not warning their guests of the dangers associated with venturing into the unlit backyard at night.

However, a trial judge, and later the Appeals Court, in Ogni v. Schlien, disagreed, finding that “traversing unfamiliar terrain in complete darkness is an open and obvious danger, and that the hosts therefore owed their guest no duty to warn.”

The Appeals Court began by noting that it is “well established that an owner or possessor of land owes a common-law duty of reasonable care to all lawful visitors.”

Nevertheless, the court continued, “[l]andowners are relieved of the duty to warn of open and obvious dangers on their premises because it is not reasonably foreseeable that a visitor exercising … reasonable care for his own safety would suffer injury from such blatant hazards.”

Here, the appellate court concluded, the trial judge “correctly determined that traversing unfamiliar terrain in complete darkness was an open and obvious danger. …

“[The injured boy's] testimony in his deposition, the court said, “justifies the conclusion that the blatant hazard which he undertook was objectively obvious to a person of ordinary perception and intelligence, exercising reasonable care for his own safety. He stated that it was ‘pitch black,’ and that because of darkness, which was such that he could not see his shoes or anything on the ground, he had to use his hand to guide himself as he entered [his hosts'] backyard. Additionally, [he] stated that he had never before been in the [hosts'] backyard, and had no idea what it looked like when he entered.

“Common sense dictates,” the court concluded, “that the danger of traversing unfamiliar terrain in such darkness would be open and obvious to a person of ordinary perception and intelligence, exercising reasonable care for his or her own safety. Accordingly, as a matter of law, the [hosts] had no duty to warn, and thus could not be liable for [their visitor's] injuries.”

— Paul Lamoureux

Image by Bogdan Suditu, via Flickr.

To download the podcast, click here. 

Dear Jim – A friend of mine was hurt on the job and got an attorney. He keeps trying to call to get info on the case, but he keeps getting the runaround. Can he switch lawyers?

–Frustrated in Framingham

Dear Frustrated in Framingham – Despite what comedians say, changing lawyers is not like moving to a different deck chair on the Titanic. It can be done. 

First and foremost, I hope your friend is feeling better. Getting hurt on the job is never good, especially if he’s “getting the runaround” on top of it.

Dialogue is central to the attorney-client relationship. I would suggest your friend contact his attorney again and leave a clear message, providing a reasonable deadline for the attorney to call him back. In doing so, he alerts the lawyer to his needs and provides time to properly address his case. If silence persists, I see two alternatives. First, he can enlist the services of the Attorney Consumer Assistance Program (ACAP). This would be my recommendation, as ACAP is a proven consumer resource for those with questions about Massachusetts lawyers. A second option is to seek legal counsel from another attorney on how best to proceed.

To get more information on the ACAP, call (617) 728-8750.

Dear Jim – I lost my job, I’m way behind on my bills, and I’m constantly being bombarded by creditors. I’m totally broke. I want to declare bankruptcy, but my sister heard it costs $1,300 to file. What sense does that make? I can’t afford that!

–Broke in Brockton

Dear Broke in Brockton – You are not alone. Many are feeling the pain of the recession, as the cost of living is increasing and jobs are scarce. But, like all economic cycles, this too shall pass.

To answer your question, it does cost to file for bankruptcy. Most filing fees are closer to $300 than $1,300. But, it should also be noted that if an attorney is involved in the process, attorney fees are usually added on top of this and can vary. To help mitigate filing costs, some applicants are eligible for fee waivers or installment plans.

My best recommendation would be to seek the legal counsel with experience in bankruptcy issues. Filing for bankruptcy is not for the faint of heart. It’s a drastic step to shield you from creditors. Before going down this path, I’d encourage you and everyone in a similar position to explore non bankruptcy alternatives first. If you aren’t able to seek counsel, try creating a budget to better understand if avoiding bankruptcy is possible or follow-up with creditors to discuss possible renegotiation of your terms.

For more information on costs, forms, etc., visit the U.S. Bankruptcy Court’s website.

Have a question about lawyers or the law? Ever have a query that only a lawyer could answer? Attorney Jim Sokolove tells our readers everything they ever wanted to know about the law but were afraid to ask. To ask Jim a question, email julia.reischel@lawyersweekly.com.

1. I’ve played by the rules and have been a perfect customer! I don’t get it.

We’ve been inundated with viewer complaints saying the same thing. People who have never been late, never missed a payment and never went over the limit getting hit with huge rate hikes. In the past, such a stellar track record would insulate you from such increases…but not anymore.

2. I called the bank and they said the poor economy caused my rate hike.
Yes, the tanking economy could be one of the reasons your rate is going up. Federal officials told us that bank money is tight and the situation is getting worse. They’re worried you’ll use too much credit, overspend beyond your means, and then not pay them back.

3. Can they do that? 
Sigh. Yes. Unfortunately. The fine print of those pamphlets you get, but probably don’t read, spells out the bad news. They say things like: “APR’S may increase.” “All of your APR’S may increase.”  And even, “We reserve the right to change the terms at any time

4.  Why did they pick me?

It depends on what your bank’s “customer risk formula” is. Each financial institution’s formula is secret, but the American Bankers Association tells us common factors include: Do you pay your bills on time? Do you pay all your bills on time? Did you increase your debt level? Did you open new accounts or new loans? Did you purchase property? Did you change jobs? Did your income level change? Answer “yes” to any of those and it could trigger a rate increase.

5. What can I do to make sure I don’t get the notice of doom in the mail?

Yeah, well. Good luck with that. Experts say to make sure you keep balances to less than a third of your credit limit, don’t leave cards unused and pay more than the minimum amount due, on time, each month.

6. If the dreaded notice does show up what should I do?

Join the club. You can try calling the credit card issuer. Explain to them you are upset about the rate increase and remind them you are a good customer.  If that doesn’t work, ask for a supervisor and plead your case more. If you aren’t successful, call back a couple days later and keep trying. You may also consider paying off the balance.  You can “opt out” of the rate increase, but that means closing your account and canceling your card.

7. If I opt out and cancel my credit card that I’ve had for 10 years, will that hurt my credit score?

It may. But experts say open another card, or transfer your balance to another card when you close your account.  And that’ll keep your score unscathed.

Award-winning investigative reporter Hank Phillippi Ryan is on the air at Boston’s NBC affiliate where she has broken big stories for the past 22 years. She has won 24 Emmys as well as dozens of other regional, national and international honors for her work. (http://www.hankphillippiryan.com). Mary Schwager is a journalist with more than 16 years of experience and is the investigative producer at 7 News. She’s won more than two dozen awards for investigative, consumer and feature reporting and writing, including nine Emmy Awards, seven Edward R. Murrow Awards and three Associated Press honors. She was also a state licensed detective and performed criminal investigations on behalf of the Wisconsin Public Defender’s Office. Find more of Mary’s articles at the Boston Examiner. Ryan and Schwager can be contacted at hryan@whdh.com and mschwager@whdh.com.