A new website is helping Montanans answer tricky legal questions about debt.

The Montana Legal Services Association has launched MontanaDebtOptions.org to offer resources for those dealing with consumer debt.

Alex Clark, community legal education coordinator for the Association, said the website is designed for any Montanan with a debt question who is afraid of losing income or property due to debt collection.

"We created some custom answers based on people's individual experiences with debt collectors that are pretty common to give them an idea of what might be crossing the line and what is actually legal," Clark explained.

Nationwide, about 64 million Americans have debt in collections, according to the Urban Institute.

The Montana Legal Services Association helped more than 350 clients with consumer debt issues last year. The website also includes a garnishment calculator to verify if a debt collector is taking the right amount from a person's wages.

Clark pointed out many people struggle when they are served with a lawsuit. He noted to participate in a lawsuit, people have to file a written response to the court by the deadline outlined in the serving papers, but it can be hard to identify.

"As we all know, court papers are really scary," Clark stated. "They're hard to understand. It's not really clear-cut what to do, and if you can't afford an attorney, you don't know where to go. So we're trying to change that."

Debt lawsuits are among the most common civil court cases in the country. But less than 10% of people have legal representation in such cases, according to the Pew Charitable Trusts.

Many simply don't show up to court, with about 70% of cases ending in default in favor of the debt collector. The website emphasized it shouldn't take the place of advice from a lawyer.

This is National Consumer Protection Week, and the Arizona PIRG Education Fund wants people to think about what they can do to protect their valuable documents - both physically and digitally.

The group is offering a new guide to help. The fund's consumer privacy director, R.J. Cross, said it is smart to "disaster proof" documents in case of an emergency such as a wildfire or flood.

She said now is the time to make a plan so you can save yourself a headache down the line.

"Having digital copies of sometimes your Social Security number or having your birth certificate can make it easier for you to navigate the process of those insurance claims," she said, "and the process of getting replacement hard copies if you're in that situation."

She added that when deciding to store documents online "in the cloud," it's a matter of determining the right combination of security and convenience. She recommended using a cloud service that offers what's known as end-to-end encryption.

The guide is online at pirg.org/resources.

Cross explained that end-to-end encryption offers an extra layer of protection, but it does come with a tradeoff: Once you've encrypted your files, you can't afford to lose your encryption key. If so, she said, you won't be able to access your documents.

"When you go from an end-to-end encryption, it is really secure, so secure that even the company that owns the cloud isn't going to be able to help you if you lose that key," she said. "So you do want to take good care of it."

She suggested printing out the encryption keys and keeping that paper in a safe place.

Cross said she realizes some people may not entirely trust a cloud service. That's why she also suggested scanning documents and loading them onto an encrypted thumb drive.

"Probably the last thing you want to do is be standing in line to get a new copy of your marriage license," she said. "The question is, how can I ameliorate the odds that I am going to add way more on my plate after a disaster than I have to?"

As National Consumer Protection Week continues, watchdogs remind policymakers about the alarming presence of scams targeting the general public. In Kentucky, a bill addressing gift-card scams cleared a legislative hurdle this week. Two years ago, Americans lost a record $10 billion in scams, and authorities say gift cards that are tampered with - before they're purchased - are one way in which consumers are being defrauded.

Gary Adkins, volunteer state president with AARP Kentucky, said these are the gift cards you typically see on kiosks in retail stores. When no one is looking, the scammers obtain sensitive information from the back of the item.

"And once the card is activated, these scammers can collect money off that," he explained.

Meaning the intended recipient can't use the card, and the person who bought it lost money that's hard to recoup. The Kentucky bill, approved by the state Senate Tuesday, would elevate this crime to a "Class D" felony. Opponents of a similar bill worry about unintended consequences because of language that says a person found with at least two tampered cards is presumed to be up to no good.

Beyond policy action, Adkins said all populations need to get this on their radar by loading up on helpful tips to avoid being scammed. Organizations like his are teaming up with the law enforcement community to share that information, so that the current crisis doesn't grow into something even worse.

"It's an all effort in order to try to help protect our folks that are here in the Commonwealth," he continued.

For gift-card scams, experts say safeguards include double checking the balance right after purchasing it and holding on to the receipt. Later this spring, AARP will host informational events around Kentucky. Times, dates and registration details are on the group's website.

March is Problem Gambling Awareness Month, and it remains unclear if Minnesota will legalize online sports betting. Research is emerging about whether players in other states are simply having fun with it or if there are troubling patterns.

Since a federal ban on sports betting was struck down by the U.S. Supreme Court in 2018, more than 30 states have legalized it, with many opening up access to online options like FanDuel.

Justin Balthrop, University of Kansas finance professor, helped lead a study into the relationship between placing sports bets online and the added financial stress for vulnerable households.

"It's extremely concerning to me to know that money is being taken from longer-term savings vehicles and put into something that is more or less guaranteed to grind down to zero over the long term, if you keep betting," he explained.

In other words, the research says sports betting isn't simply substituting for other discretionary spending. Balthrop's study found a 14% reduction in net investments among households using these apps.

Researchers are not taking a stance on these laws, but want to inform policymakers as they discuss things like adding safeguards. The Minnesota Legislature has debated the issue but has yet to get a bill across the finish line.

Balthrop said he understands the pressure legislators feel to legalize sports betting and not lose revenue to neighboring states. But as they consider the idea, he urged them to think about future scenarios -- such as the loss of personal savings pushing more people into social assistance programs or food banks.

"If that increases tenfold in the future, then those are tax monies that are going to need to be spent in the future that maybe outweigh the benefit in the short term," he continued.

Other early research indicates online sports gambling isn't creating widespread problems yet. However, Balthrop hopes for more studies that look into how friends and family are affected by excessive betting.

Meanwhile, separate findings from experts in California reveal lower credit scores and increased bankruptcy filings. Industry leaders say regulatory structures in active states prevent users from being exploited by illegal markets.


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