West Virginia University has reached a settlement in a class-action lawsuit affecting up to 5,600 former and current employees who may have been exposed to asbestos, the school announced Tuesday.
As part of the proposed settlement, WVU will institute and pay for a medical surveillance program to be conducted for 20 years. WVU also agreed to pay $1 million to cover potential claims and attorney fees.
A judge must approve the agreement before it becomes final. A hearing is scheduled for Dec. 22.
University employees sued in 2000 and sought medical monitoring for potential asbestos-related health problems as a result of working in university buildings containing asbestos insulation.
The workers, including professors, custodians, secretaries and other staff, alleged that asbestos in campus buildings put them at an increased risk of cancer.
The university said in a statement that the agreement had been reached in the "spirit of compromise."
"WVU maintains that all standard, recognized practices for asbestos removal have been followed over the years, and that the general population of employees, through routine monitoring of buildings and air samplings, remain safe from any harmful effects of asbestos-containing materials," the university said.
Until the 1970s, asbestos was universally prized for its resistance to fire and heat. Since then, the medical community has warned that asbestos fibers, when inhaled, can cause such illnesses as mesothelioma, a rare and inoperable form of lung cancer. It also causes asbestosis, an irreversible scarring of the lungs, and other lung ailments.
Saturday, January 6, 2007
Deadly Risks Associated with Asbestos Have Failed to Stop Its Use in U.S. and Around the World
Currently, the U.S. Senate is debating a bill (S.852) that would establish a 30-year, $140 billion asbestos victims’ compensation trust fund that, in essence, would eliminate asbestos lawsuits and create a 30-year fund financed by companies facing litigation and their insurers. Victims would lose their right to sue for compensation and would be required to go to the fund for relief.
In addition, personal injury and wrongful death lawsuits have already resulted in the payout of billions of dollars in damages in the U.S., asbestos manufacturers have sought bankruptcy protection, and significant settlements have been announced in other countries to resolve similar liability claims.
Thus, there is no disagreement or dispute that asbestos is a major health threat with long-term life-threatening implications to vast numbers of people worldwide.
In light of this indisputable fact it would be reasonable to assume that the U.S. and the rest of the world would have already banned the further use of asbestos or, at the very least, planned for its ultimate removal from the market. Amazingly, neither is the case.
As reported in the February edition of CancerWire, asbestos is still being widely used in the U.S. in existing structures as well as new applications.
The report is based on a recent interview with Linda Reinstein of the Asbestos Disease Awareness Organization (ADAO), an organization she co-founded after her husband was diagnosed with mesothelioma.
ADAO is now an international organization that offers support, resources, and education for patients and caregivers affected by asbestos.
As pointed out by Reinstein: “Asbestos can cause or contribute to cancers such as mesothelioma, lung, larynx, esophageal, and stomach cancer and many non-malignant diseases such as asbestosis and chronic pulmonary respiratory disease. Ten thousand lives are lost in the U.S. every year to all asbestos-related disease. Each case is incurable and often deadly and every case could have been prevented because the dangers of this mineral were known in the early 1900's.”
As significant as the death toll and negative health effects are, they may be only a fraction of the actual problem for a number of reasons. These include:
Asbestos-related diseases are often difficult to diagnose in a way that conclusive links the illness to the mineral;
Many people who die of cardiac arrest or pneumonia are never diagnosed with the underlying asbestos-related diseases that caused their medical problems in the first place; and
A vast number of people are (or have been) exposed to asbestos without even being aware of it this happens in three ways: (1) the asbestos is present in man-made products the person is exposed too but unaware of; (2) the person is exposed to a natural asbestos source; or (3) second-hand asbestos exposure to the clothing or other possessions belonging to someone who works with or is directly exposed to asbestos or asbestos products. Reinstein also observes that, while in 1989, the EPA announced an asbestos ban and phase out, only to have the ban overturned by a U.S. Circuit Court of Appeals in 1990. “So we don't have an actual ban on asbestos, but instead a regulation to reduce exposure.”
There is also the paradox that exists between often repeated statement by the EPA that there is no safe level of asbestos exposure and the rules allowing asbestos in certain concentrations in particular environments (which are virtually impossible to monitor on a continuing basis especially if a person is unaware of the presence of asbestos - OSHA regulations state an employee cannot be exposed to more than 0.1 asbestos fibers per cubic centimeter of air for an average eight hour work day).
Aside from the asbestos presence in new products and materials, an estimated 30 million offices, homes, and schools are currently contaminated with the mineral. Any construction, demolition, or repair, of these older structures, therefore, can lead to asbestos exposure, just as what happened at the World Trade Center on 9/11.
“One life lost to an asbestos related disease is tragic; hundreds of thousands of lives lost is unconscionable. While we can't reclaim the lives of our loved ones, we can make the world a better place for those who come after us.” Reinstein concluded.
In December 2005, major settlements of asbestos-related death and injury claims were announced in Japan and Australia.Simply stated, asbestos is as deadly a natural time-bomb as the world has ever known. Yet, it continues to be mined and exported from advanced countries like Canada and Russia to developing nations where more death and disease will eventually follow.
Asbestos producing countries have repeatedly blocked the addition of chrysotile (white) asbestos to the UN list of highly dangerous substances that cannot be exported to developing countries without their knowledge and agreement.
In September 2004, "prior informed consent" (PIC) listing of chrysotile was blocked at the Rotterdam convention meeting in Geneva primarily through the efforts of Canada and Russia.
Canada is the world's second-largest exporter of asbestos after Russia.
Numerous vocal critics of Canada's policy on asbestos call the country’s actions nothing more than exporting death to protect the profits of a handful of companies and the jobs of 1,600 miners.
"What's the difference between land mines and asbestos?" asks Dr. Barry Castleman, author of a respected book on the danger of asbestos. "A key difference, of course, is that Canada doesn't export land mines."
In countries like India where the exported asbestos winds up, unprotected workers slash open bags of asbestos fibers in order to mix it with cement. These workers have no choice but to work within swirling clouds of carcinogenic fibers.
In Britain, the Cancer Research Campaign has stated that its study into the European asbestos-linked cancer epidemic should sound alarm bells everywhere, "particularly in the developing world where uncontrolled asbestos is still very common," said CRC director Gordon McVie.The asbestos industry, however, profits greatly from exporting to developing nations with seven of Canada's top 10 markets being so-called Third World countries.
To preserve that profitability, the Canadian government, the asbestos industry and lobby groups are doing there best to put a good face on the asbestos industry. Both diplomats and journalists are wined and dined and sent on first-class trips as part of this effort.
Philip Landrigan, of New York's Mount Sinai School of Medicine - the center that first linked cancer to asbestos in the 1960s says the asbestos lobby's claim that the fiber is safe is "absolutely untrue."
"Asbestos remains an important cause of human illness," says Landrigan. "All forms of asbestos are carcinogenic, and that includes Canadian chrysotile."
Julian Peto, head of epidemiology at the University of London, who wrote the study on the Euro-epidemic, says there's no safe way to use asbestos in developed nations. In developing nations, where there is little money for protective clothing and ventilation systems, workers are being poisoned by the thousands.
"There is no way you can control it in Britain, let alone the third world," Peto says.
Ten European Union members have banned asbestos. France, which banned it in 1997 for health reasons, now faces a Canadian challenge at the WTO. Canada argues the ban violates Canada's rights under international trade rules.
In a speech before an audience of occupational health professionals from around the world who had gathered in Italy, Dr. Joseph LeDou of the University of California's Medical School attacked Canada's asbestos-promoting efforts.
LeDou said Canada was engaged in "the exploitation of ignorance and poverty" in Asia, Africa, and Latin America." He accused Canadian policy makers of "setting up the developing world "for an epidemic of asbestos-related disease, the costs of which will fall on countries that can ill afford it."
Thus, as the asbestos “problem” becomes more acute, public awareness of the looming epidemic and its origins takes on even greater urgency.
One of the more severe health risks associated with asbestos is a chronic, non-cancerous respiratory disease called asbestosis. Asbestosis occurs when asbestos fibers are inhaled into the lungs causing lung tissues to become aggravated and scarred.
Some symptoms of asbestosis include shortness of breath and a dry, wheezing sound made by the lungs upon inhalation. Some of them more serious risks include cardiac failure which occurs primarily in advanced stages of asbestosis.
Unfortunately there is currently no effective treatment for asbestosis and it can therefore be completely disabling and even fatal.
Mesothelioma is another significant and widespread health risk associated with asbestos exposure and unlike asbestosis, it can affect individuals who are not directly exposed to asbestos but either live with someone who is an asbestos worker or live near asbestos mining areas or other places where the substance is widely used. Almost all cases of mesothelioma are directly attributable to asbestos exposure.
Mesothelioma is a rare and quite deadly form of cancer that occurs when tumors form on the membranes surrounding the lungs, chest, abdomen, and sometimes heart. Symptoms of mesothelioma may not appear until 30 to 50 years following exposure to asbestos
Thus, there is the expectation that there will be a significant increase in the number of mesothelioma cases in the coming decades both in the U.S. and in all of the developing nations that are currently importing asbestos fibers for industrial use.
While asbestosis and mesothelioma are the most common health risks associated with asbestos exposure, lung cancer has also been linked to asbestos. In fact, lung cancer is responsible for the largest number of deaths related to asbestos exposure. Individuals who have been exposed to other carcinogens, such as cigarette smoke, are at an increased risk for developing lung cancer than people who have only been exposed to asbestos.
A study from the University of Montana found that people exposed to high levels of asbestos may face a greater risk of developing rheumatoid arthritis, multiple sclerosis, and other autoimmune diseases
Another study, published in the May 2005 issue of the American Journal of Industrial Medicine found a significant number of cases of mesothelioma in family members of asbestos workers.
According to the findings of Dr. Albert Miller of St. Vincent Catholic Medical Center in New York, the cancer, which is mainly caused by exposure to airborne particles of asbestos, most often affects the wives and daughters of asbestos workers and may take over 40 years to develop. A few cases involving sons and other relatives were also found, however.
The study concluded that exposure to particles of asbestos carried home on workers’ clothing and bodies was directly linked to 32 cases of mesothelioma diagnosed in family members since 1990.
About 90% of mesotheliomas in men have been attributed to asbestos because of their direct exposure to the material at work. In cases involving women, however, linking the disease to asbestos has proven to be more difficult.
Based upon the study results, Dr. Miller theorizes that many of these unexplained cases in women may be related to having lived with an asbestos-exposed worker at some point in their lives.
Another study published in the second issue of the October 2005 of the American Journal of Respiratory and Critical Care Medicine of the American Thoracic Society, stated that Californians who live near naturally occurring asbestos sources and who are exposed to low levels of the mineral are at increased risk for developing mesothelioma.
Dr. Marc B. Schenker, of the Division of Environmental and Occupational Health, at the University of California, Davis, and four associates, examined 2,908 malignant mesothelioma cases reported from 1988 to 1997. Over 50% of the men and 58% of the women, all of whom were listed in the California Cancer Registry, either had no or little exposure to occupational asbestos at the workplace.
According to the study authors, California has more naturally occurring asbestos source rocks than any other state in the U.S. Previous studies all point to occupational exposure to asbestos as the cause of mesothelioma. But population-based studies, Dr Schenker says, have almost all showed some examples of mesothelioma cases where there was no exposure at work. The new study reveals that the living environment could actually be the culprit in such cases.
With respect to the proposed creation of a fund that would eliminate asbestos lawsuits, ADAO has already mounted a vocal campaign against the passage of the asbestos bill.
ADAO argues that the bill does not adequately protect the rights of asbestos victims and hopes that Senate does not support what he calls “this corporate bailout bill.”
ADAO, however, has serious problems with the proposed fund including outdated and incorrect medical criteria with respect to the symptoms, diagnosis, and severity of asbestos related diseases, inordinate compensation delays, and improper eligibility standards, inadequate funding for research, education, prevention, and outreach, and possible insolvency long before all present and future victims can access it.
While the group is not opposed to the idea of a trust fund, it would much rather see one that is fundamentally fair, adequately funded, free of bureaucratic delays, and guaranteed to be around long enough to ensure all victims would be properly compensated. ADAO also advocates giving the victims the right to choose between compensation from the fund or a trial.
Meanwhile, Senate opponents of the bill see potential dilemmas with the fund’s solvency and with the allocation of expenses between the participating companies and insurers.
Lawsuits continue to surface regarding asbestos exposure and asbestos related illnesses. At the moment, studies continue to persist in an effort to learn more about how asbestos affects people who are directly exposed to the substance as well as individuals who experience second-hand exposure.
In the 1970’s government regulations stopped the widespread and common use of asbestos. Today, however, it is still used under heavy regulation. Asbestos is still used in more than 3,000 products such as brake linings, engine gaskets, and roof coatings. Older buildings still contain asbestos as it was originally thought of as an excellent insulating material.
In many of those older buildings (such as schools), however, years of deterioration, leaks, careless alterations, and improper asbestos abatement operations have all played a role in producing airborne asbestos fibers.
The number of asbestos-related deaths continues to climb. The Centers for Disease Control and Prevention (CDC) reports that 77 people died from asbestos related illnesses in 1968 while 1,493 people died from asbestos in 2000.
In addition, personal injury and wrongful death lawsuits have already resulted in the payout of billions of dollars in damages in the U.S., asbestos manufacturers have sought bankruptcy protection, and significant settlements have been announced in other countries to resolve similar liability claims.
Thus, there is no disagreement or dispute that asbestos is a major health threat with long-term life-threatening implications to vast numbers of people worldwide.
In light of this indisputable fact it would be reasonable to assume that the U.S. and the rest of the world would have already banned the further use of asbestos or, at the very least, planned for its ultimate removal from the market. Amazingly, neither is the case.
As reported in the February edition of CancerWire, asbestos is still being widely used in the U.S. in existing structures as well as new applications.
The report is based on a recent interview with Linda Reinstein of the Asbestos Disease Awareness Organization (ADAO), an organization she co-founded after her husband was diagnosed with mesothelioma.
ADAO is now an international organization that offers support, resources, and education for patients and caregivers affected by asbestos.
As pointed out by Reinstein: “Asbestos can cause or contribute to cancers such as mesothelioma, lung, larynx, esophageal, and stomach cancer and many non-malignant diseases such as asbestosis and chronic pulmonary respiratory disease. Ten thousand lives are lost in the U.S. every year to all asbestos-related disease. Each case is incurable and often deadly and every case could have been prevented because the dangers of this mineral were known in the early 1900's.”
As significant as the death toll and negative health effects are, they may be only a fraction of the actual problem for a number of reasons. These include:
Asbestos-related diseases are often difficult to diagnose in a way that conclusive links the illness to the mineral;
Many people who die of cardiac arrest or pneumonia are never diagnosed with the underlying asbestos-related diseases that caused their medical problems in the first place; and
A vast number of people are (or have been) exposed to asbestos without even being aware of it this happens in three ways: (1) the asbestos is present in man-made products the person is exposed too but unaware of; (2) the person is exposed to a natural asbestos source; or (3) second-hand asbestos exposure to the clothing or other possessions belonging to someone who works with or is directly exposed to asbestos or asbestos products. Reinstein also observes that, while in 1989, the EPA announced an asbestos ban and phase out, only to have the ban overturned by a U.S. Circuit Court of Appeals in 1990. “So we don't have an actual ban on asbestos, but instead a regulation to reduce exposure.”
There is also the paradox that exists between often repeated statement by the EPA that there is no safe level of asbestos exposure and the rules allowing asbestos in certain concentrations in particular environments (which are virtually impossible to monitor on a continuing basis especially if a person is unaware of the presence of asbestos - OSHA regulations state an employee cannot be exposed to more than 0.1 asbestos fibers per cubic centimeter of air for an average eight hour work day).
Aside from the asbestos presence in new products and materials, an estimated 30 million offices, homes, and schools are currently contaminated with the mineral. Any construction, demolition, or repair, of these older structures, therefore, can lead to asbestos exposure, just as what happened at the World Trade Center on 9/11.
“One life lost to an asbestos related disease is tragic; hundreds of thousands of lives lost is unconscionable. While we can't reclaim the lives of our loved ones, we can make the world a better place for those who come after us.” Reinstein concluded.
In December 2005, major settlements of asbestos-related death and injury claims were announced in Japan and Australia.Simply stated, asbestos is as deadly a natural time-bomb as the world has ever known. Yet, it continues to be mined and exported from advanced countries like Canada and Russia to developing nations where more death and disease will eventually follow.
Asbestos producing countries have repeatedly blocked the addition of chrysotile (white) asbestos to the UN list of highly dangerous substances that cannot be exported to developing countries without their knowledge and agreement.
In September 2004, "prior informed consent" (PIC) listing of chrysotile was blocked at the Rotterdam convention meeting in Geneva primarily through the efforts of Canada and Russia.
Canada is the world's second-largest exporter of asbestos after Russia.
Numerous vocal critics of Canada's policy on asbestos call the country’s actions nothing more than exporting death to protect the profits of a handful of companies and the jobs of 1,600 miners.
"What's the difference between land mines and asbestos?" asks Dr. Barry Castleman, author of a respected book on the danger of asbestos. "A key difference, of course, is that Canada doesn't export land mines."
In countries like India where the exported asbestos winds up, unprotected workers slash open bags of asbestos fibers in order to mix it with cement. These workers have no choice but to work within swirling clouds of carcinogenic fibers.
In Britain, the Cancer Research Campaign has stated that its study into the European asbestos-linked cancer epidemic should sound alarm bells everywhere, "particularly in the developing world where uncontrolled asbestos is still very common," said CRC director Gordon McVie.The asbestos industry, however, profits greatly from exporting to developing nations with seven of Canada's top 10 markets being so-called Third World countries.
To preserve that profitability, the Canadian government, the asbestos industry and lobby groups are doing there best to put a good face on the asbestos industry. Both diplomats and journalists are wined and dined and sent on first-class trips as part of this effort.
Philip Landrigan, of New York's Mount Sinai School of Medicine - the center that first linked cancer to asbestos in the 1960s says the asbestos lobby's claim that the fiber is safe is "absolutely untrue."
"Asbestos remains an important cause of human illness," says Landrigan. "All forms of asbestos are carcinogenic, and that includes Canadian chrysotile."
Julian Peto, head of epidemiology at the University of London, who wrote the study on the Euro-epidemic, says there's no safe way to use asbestos in developed nations. In developing nations, where there is little money for protective clothing and ventilation systems, workers are being poisoned by the thousands.
"There is no way you can control it in Britain, let alone the third world," Peto says.
Ten European Union members have banned asbestos. France, which banned it in 1997 for health reasons, now faces a Canadian challenge at the WTO. Canada argues the ban violates Canada's rights under international trade rules.
In a speech before an audience of occupational health professionals from around the world who had gathered in Italy, Dr. Joseph LeDou of the University of California's Medical School attacked Canada's asbestos-promoting efforts.
LeDou said Canada was engaged in "the exploitation of ignorance and poverty" in Asia, Africa, and Latin America." He accused Canadian policy makers of "setting up the developing world "for an epidemic of asbestos-related disease, the costs of which will fall on countries that can ill afford it."
Thus, as the asbestos “problem” becomes more acute, public awareness of the looming epidemic and its origins takes on even greater urgency.
One of the more severe health risks associated with asbestos is a chronic, non-cancerous respiratory disease called asbestosis. Asbestosis occurs when asbestos fibers are inhaled into the lungs causing lung tissues to become aggravated and scarred.
Some symptoms of asbestosis include shortness of breath and a dry, wheezing sound made by the lungs upon inhalation. Some of them more serious risks include cardiac failure which occurs primarily in advanced stages of asbestosis.
Unfortunately there is currently no effective treatment for asbestosis and it can therefore be completely disabling and even fatal.
Mesothelioma is another significant and widespread health risk associated with asbestos exposure and unlike asbestosis, it can affect individuals who are not directly exposed to asbestos but either live with someone who is an asbestos worker or live near asbestos mining areas or other places where the substance is widely used. Almost all cases of mesothelioma are directly attributable to asbestos exposure.
Mesothelioma is a rare and quite deadly form of cancer that occurs when tumors form on the membranes surrounding the lungs, chest, abdomen, and sometimes heart. Symptoms of mesothelioma may not appear until 30 to 50 years following exposure to asbestos
Thus, there is the expectation that there will be a significant increase in the number of mesothelioma cases in the coming decades both in the U.S. and in all of the developing nations that are currently importing asbestos fibers for industrial use.
While asbestosis and mesothelioma are the most common health risks associated with asbestos exposure, lung cancer has also been linked to asbestos. In fact, lung cancer is responsible for the largest number of deaths related to asbestos exposure. Individuals who have been exposed to other carcinogens, such as cigarette smoke, are at an increased risk for developing lung cancer than people who have only been exposed to asbestos.
A study from the University of Montana found that people exposed to high levels of asbestos may face a greater risk of developing rheumatoid arthritis, multiple sclerosis, and other autoimmune diseases
Another study, published in the May 2005 issue of the American Journal of Industrial Medicine found a significant number of cases of mesothelioma in family members of asbestos workers.
According to the findings of Dr. Albert Miller of St. Vincent Catholic Medical Center in New York, the cancer, which is mainly caused by exposure to airborne particles of asbestos, most often affects the wives and daughters of asbestos workers and may take over 40 years to develop. A few cases involving sons and other relatives were also found, however.
The study concluded that exposure to particles of asbestos carried home on workers’ clothing and bodies was directly linked to 32 cases of mesothelioma diagnosed in family members since 1990.
About 90% of mesotheliomas in men have been attributed to asbestos because of their direct exposure to the material at work. In cases involving women, however, linking the disease to asbestos has proven to be more difficult.
Based upon the study results, Dr. Miller theorizes that many of these unexplained cases in women may be related to having lived with an asbestos-exposed worker at some point in their lives.
Another study published in the second issue of the October 2005 of the American Journal of Respiratory and Critical Care Medicine of the American Thoracic Society, stated that Californians who live near naturally occurring asbestos sources and who are exposed to low levels of the mineral are at increased risk for developing mesothelioma.
Dr. Marc B. Schenker, of the Division of Environmental and Occupational Health, at the University of California, Davis, and four associates, examined 2,908 malignant mesothelioma cases reported from 1988 to 1997. Over 50% of the men and 58% of the women, all of whom were listed in the California Cancer Registry, either had no or little exposure to occupational asbestos at the workplace.
According to the study authors, California has more naturally occurring asbestos source rocks than any other state in the U.S. Previous studies all point to occupational exposure to asbestos as the cause of mesothelioma. But population-based studies, Dr Schenker says, have almost all showed some examples of mesothelioma cases where there was no exposure at work. The new study reveals that the living environment could actually be the culprit in such cases.
With respect to the proposed creation of a fund that would eliminate asbestos lawsuits, ADAO has already mounted a vocal campaign against the passage of the asbestos bill.
ADAO argues that the bill does not adequately protect the rights of asbestos victims and hopes that Senate does not support what he calls “this corporate bailout bill.”
ADAO, however, has serious problems with the proposed fund including outdated and incorrect medical criteria with respect to the symptoms, diagnosis, and severity of asbestos related diseases, inordinate compensation delays, and improper eligibility standards, inadequate funding for research, education, prevention, and outreach, and possible insolvency long before all present and future victims can access it.
While the group is not opposed to the idea of a trust fund, it would much rather see one that is fundamentally fair, adequately funded, free of bureaucratic delays, and guaranteed to be around long enough to ensure all victims would be properly compensated. ADAO also advocates giving the victims the right to choose between compensation from the fund or a trial.
Meanwhile, Senate opponents of the bill see potential dilemmas with the fund’s solvency and with the allocation of expenses between the participating companies and insurers.
Lawsuits continue to surface regarding asbestos exposure and asbestos related illnesses. At the moment, studies continue to persist in an effort to learn more about how asbestos affects people who are directly exposed to the substance as well as individuals who experience second-hand exposure.
In the 1970’s government regulations stopped the widespread and common use of asbestos. Today, however, it is still used under heavy regulation. Asbestos is still used in more than 3,000 products such as brake linings, engine gaskets, and roof coatings. Older buildings still contain asbestos as it was originally thought of as an excellent insulating material.
In many of those older buildings (such as schools), however, years of deterioration, leaks, careless alterations, and improper asbestos abatement operations have all played a role in producing airborne asbestos fibers.
The number of asbestos-related deaths continues to climb. The Centers for Disease Control and Prevention (CDC) reports that 77 people died from asbestos related illnesses in 1968 while 1,493 people died from asbestos in 2000.
Jury awards shipyard worker's widow $10M
A jury awarded $10.4 million to the widow of a former shipyard worker who died of lung cancer after four years of working with materials that contained asbestos.
The Newport News Circuit Court verdict in Wanda Jones' wrongful death lawsuit against three companies that manufactured the materials was handed down Wednesday, the first anniversary of the death of 60-year-old Buddy Jones.
"It's a mixed day," Wanda Jones said. "At least there's been some justice and recognition for what he went through, certainly through no fault of his own. He just went to work and did what he was trained to do on the job."
Her attorney, Robert Hatten, called the verdict a landmark because one-third of the judgment will come from John Crane Inc., which has refused to settle other asbestos cases.
"A lot of these companies now accept responsibility and settle these cases regularly," said the palntiff's attorney, who has represented thousands of shipyard workers exposed to asbestos. "I hope this verdict will make companies like John Crane change their corporate attitude."
Attorneys for John Crane, a unit of British manufacturer Smiths Group PLC, said the company's products could not have harmed workers.
"We defend cases because we believe in the safety of the product," attorney Ed Mueller said. "If you were sitting here right now, I'd take a piece out and put it around my neck and wear it home."
Mueller said the company, which stopped making products with asbestos in the 1980s, will appeal the verdict.
The judgment is split with two other companies: Denver's Johns Manville Corp., a unit of billionaire investor Warren Buffett's Berkshire Hathaway Inc. that makes roofing, insulation and other industrial materials; and Garlock Sealing Technologies, a Palmyra, N.Y., unit of EnPro Industries Inc. in Charlotte, N.C.
Buddy Jones was diagnosed with mesothelioma, a cancer caused almost exclusively by asbestos. Because the cancer can lie dormant for 20 to 50 years, some older shipyard workers are just realizing the effects of their asbestos exposure.
Dr. John C. Maddox testified at the three-week trial that he has seen about 500 mesothelioma patients in his practice at Riverside Regional Medical Center.
Jones spent four years sealing pumps and making gaskets at Newport News Shipbuilding now Northrop Grumman Newport News in the 1960s before returning to college and becoming a computer programmer in Richmond. When he suddenly got sick in late 2004, his doctor thought it was pneumonia. Then he found the tumors in Jones' lungs. Jones died within a year.
The shipyard stopped using products containing asbestos the mid 1980s.
The Newport News Circuit Court verdict in Wanda Jones' wrongful death lawsuit against three companies that manufactured the materials was handed down Wednesday, the first anniversary of the death of 60-year-old Buddy Jones.
"It's a mixed day," Wanda Jones said. "At least there's been some justice and recognition for what he went through, certainly through no fault of his own. He just went to work and did what he was trained to do on the job."
Her attorney, Robert Hatten, called the verdict a landmark because one-third of the judgment will come from John Crane Inc., which has refused to settle other asbestos cases.
"A lot of these companies now accept responsibility and settle these cases regularly," said the palntiff's attorney, who has represented thousands of shipyard workers exposed to asbestos. "I hope this verdict will make companies like John Crane change their corporate attitude."
Attorneys for John Crane, a unit of British manufacturer Smiths Group PLC, said the company's products could not have harmed workers.
"We defend cases because we believe in the safety of the product," attorney Ed Mueller said. "If you were sitting here right now, I'd take a piece out and put it around my neck and wear it home."
Mueller said the company, which stopped making products with asbestos in the 1980s, will appeal the verdict.
The judgment is split with two other companies: Denver's Johns Manville Corp., a unit of billionaire investor Warren Buffett's Berkshire Hathaway Inc. that makes roofing, insulation and other industrial materials; and Garlock Sealing Technologies, a Palmyra, N.Y., unit of EnPro Industries Inc. in Charlotte, N.C.
Buddy Jones was diagnosed with mesothelioma, a cancer caused almost exclusively by asbestos. Because the cancer can lie dormant for 20 to 50 years, some older shipyard workers are just realizing the effects of their asbestos exposure.
Dr. John C. Maddox testified at the three-week trial that he has seen about 500 mesothelioma patients in his practice at Riverside Regional Medical Center.
Jones spent four years sealing pumps and making gaskets at Newport News Shipbuilding now Northrop Grumman Newport News in the 1960s before returning to college and becoming a computer programmer in Richmond. When he suddenly got sick in late 2004, his doctor thought it was pneumonia. Then he found the tumors in Jones' lungs. Jones died within a year.
The shipyard stopped using products containing asbestos the mid 1980s.
Friday, January 5, 2007
Legal Guide
The first thing to remember is that it is very important to find a lawyer as soon as possible after diagnosis. This is because there is a statue of limitation from state to state, which means that there is a time limit set with regards to how long you have got to take action. Failing to adhere to this could render your case ineligible, and you could miss out on a hefty payout which could help you and your family through this difficult time.
You should also look for a lawyer that is experienced in dealing with mesothelioma lawsuits as these lawyers will have the resources and contacts to deal with your case quickly and efficiently. There are so many law firms and independent lawyers that now deal with this type of case, that you should have no problem finding someone to assist. You can search the Internet for a suitable lawyer, as this will enable you gauge how much experience each lawyer has had in dealing with these lawsuits.
Once you have found a lawyer, you will need to make an appointment to discuss your options fully, although many online companies will allow you to make your initial contact by e-mail and they will then evaluate your case and contact you with the options. Your lawyer can advise whether you should pursue your case, and if so which direction to take it in. Your lawyer will also need to put a water-tight case together, which is another reason to get legal advice and assistance as early as possible. Further investigations may be required, which will also take time. It could be that you are unsure of when and where you were exposed to asbestos, and your lawyer will need to hire someone to look into this.
Your case may not even get to court, as many lawyers are able to get substantial out of court payouts for clients. And you will not have to worry about paying your lawyer unless you do get compensation, as most mesothelioma lawyers work on a contingency fee, which is a percentage of the compensation claimed. If they are unsuccessful in getting compensation, then you do not have to pay anything.
In order to maximise the chances of getting compensation for your illness, you must seek legal assistance as soon as possible for the reasons stated above. Payouts in the past have ranged from thousands of dollars to hundreds of millions, depending on a number of factors which your lawyer will discuss with you. There is no guarantee that your claim will be successful, of course. But, since you do not have to pay for legal fees unless you do receive compensation, you have nothing to lose by filing a lawsuit.
You should also look for a lawyer that is experienced in dealing with mesothelioma lawsuits as these lawyers will have the resources and contacts to deal with your case quickly and efficiently. There are so many law firms and independent lawyers that now deal with this type of case, that you should have no problem finding someone to assist. You can search the Internet for a suitable lawyer, as this will enable you gauge how much experience each lawyer has had in dealing with these lawsuits.
Once you have found a lawyer, you will need to make an appointment to discuss your options fully, although many online companies will allow you to make your initial contact by e-mail and they will then evaluate your case and contact you with the options. Your lawyer can advise whether you should pursue your case, and if so which direction to take it in. Your lawyer will also need to put a water-tight case together, which is another reason to get legal advice and assistance as early as possible. Further investigations may be required, which will also take time. It could be that you are unsure of when and where you were exposed to asbestos, and your lawyer will need to hire someone to look into this.
Your case may not even get to court, as many lawyers are able to get substantial out of court payouts for clients. And you will not have to worry about paying your lawyer unless you do get compensation, as most mesothelioma lawyers work on a contingency fee, which is a percentage of the compensation claimed. If they are unsuccessful in getting compensation, then you do not have to pay anything.
In order to maximise the chances of getting compensation for your illness, you must seek legal assistance as soon as possible for the reasons stated above. Payouts in the past have ranged from thousands of dollars to hundreds of millions, depending on a number of factors which your lawyer will discuss with you. There is no guarantee that your claim will be successful, of course. But, since you do not have to pay for legal fees unless you do receive compensation, you have nothing to lose by filing a lawsuit.
Legal Guide
The first thing to remember is that it is very important to find a lawyer as soon as possible after diagnosis. This is because there is a statue of limitation from state to state, which means that there is a time limit set with regards to how long you have got to take action. Failing to adhere to this could render your case ineligible, and you could miss out on a hefty payout which could help you and your family through this difficult time.
You should also look for a lawyer that is experienced in dealing with mesothelioma lawsuits as these lawyers will have the resources and contacts to deal with your case quickly and efficiently. There are so many law firms and independent lawyers that now deal with this type of case, that you should have no problem finding someone to assist. You can search the Internet for a suitable lawyer, as this will enable you gauge how much experience each lawyer has had in dealing with these lawsuits.
Once you have found a lawyer, you will need to make an appointment to discuss your options fully, although many online companies will allow you to make your initial contact by e-mail and they will then evaluate your case and contact you with the options. Your lawyer can advise whether you should pursue your case, and if so which direction to take it in. Your lawyer will also need to put a water-tight case together, which is another reason to get legal advice and assistance as early as possible. Further investigations may be required, which will also take time. It could be that you are unsure of when and where you were exposed to asbestos, and your lawyer will need to hire someone to look into this.
Your case may not even get to court, as many lawyers are able to get substantial out of court payouts for clients. And you will not have to worry about paying your lawyer unless you do get compensation, as most mesothelioma lawyers work on a contingency fee, which is a percentage of the compensation claimed. If they are unsuccessful in getting compensation, then you do not have to pay anything.
In order to maximise the chances of getting compensation for your illness, you must seek legal assistance as soon as possible for the reasons stated above. Payouts in the past have ranged from thousands of dollars to hundreds of millions, depending on a number of factors which your lawyer will discuss with you. There is no guarantee that your claim will be successful, of course. But, since you do not have to pay for legal fees unless you do receive compensation, you have nothing to lose by filing a lawsuit.
You should also look for a lawyer that is experienced in dealing with mesothelioma lawsuits as these lawyers will have the resources and contacts to deal with your case quickly and efficiently. There are so many law firms and independent lawyers that now deal with this type of case, that you should have no problem finding someone to assist. You can search the Internet for a suitable lawyer, as this will enable you gauge how much experience each lawyer has had in dealing with these lawsuits.
Once you have found a lawyer, you will need to make an appointment to discuss your options fully, although many online companies will allow you to make your initial contact by e-mail and they will then evaluate your case and contact you with the options. Your lawyer can advise whether you should pursue your case, and if so which direction to take it in. Your lawyer will also need to put a water-tight case together, which is another reason to get legal advice and assistance as early as possible. Further investigations may be required, which will also take time. It could be that you are unsure of when and where you were exposed to asbestos, and your lawyer will need to hire someone to look into this.
Your case may not even get to court, as many lawyers are able to get substantial out of court payouts for clients. And you will not have to worry about paying your lawyer unless you do get compensation, as most mesothelioma lawyers work on a contingency fee, which is a percentage of the compensation claimed. If they are unsuccessful in getting compensation, then you do not have to pay anything.
In order to maximise the chances of getting compensation for your illness, you must seek legal assistance as soon as possible for the reasons stated above. Payouts in the past have ranged from thousands of dollars to hundreds of millions, depending on a number of factors which your lawyer will discuss with you. There is no guarantee that your claim will be successful, of course. But, since you do not have to pay for legal fees unless you do receive compensation, you have nothing to lose by filing a lawsuit.
What is mesothelioma?
Mesothelioma is a type of cancer that is caused by exposure to asbestos on a regular basis. This cancer can take many decades to develop, usually at least several decades. Therefore, people that worked with asbestos perhaps thirty or forty years ago are only now being diagnosed with this disease. Mesothelioma can affect several vital organs: the most popular variation (Pleural Mesothelioma) is that which affects the lungs, causing fluid build-up which in turn causes a variety of symptoms such as breathing difficulties, shortness of breath, persistent coughing and difficulty swallowing; the second variation (Peritoneal Mesothelioma) affects the stomach and abdominal area and can cause symptoms such as vomiting, nausea, bowel obstruction and loss of appetite; and the rarest version (Pericardial Mesothelioma) affects the heart and can cause palpitations, persistent coughing and chest pain. However, because mesothelioma takes so long to manifest you will find that the onset of these symptoms comes many, many years after the actual exposure that causes the disease.
Many employers and the manufacturers of asbestos knew about the dangers of asbestos and mesothelioma when they exposed employees to this material. And now that the effects of this exposure are coming to light, these companies are being forced to pay out millions to sufferers who have been sentenced to a short life span as well as being subjected to pain and misery. And because so many cases of mesothelioma are now coming to light, a wide range of lawyers and law firms have started to specialise in mesothelioma law suits to get victims and their families the compensation they deserve.
Many employers and the manufacturers of asbestos knew about the dangers of asbestos and mesothelioma when they exposed employees to this material. And now that the effects of this exposure are coming to light, these companies are being forced to pay out millions to sufferers who have been sentenced to a short life span as well as being subjected to pain and misery. And because so many cases of mesothelioma are now coming to light, a wide range of lawyers and law firms have started to specialise in mesothelioma law suits to get victims and their families the compensation they deserve.
Home Equity Credit Lines
Home Equity Credit Lines
Using a credit line to borrow against the equity in your home has become a popular source of consumer credit. And lenders are offering these home equity credit lines in a variety of ways. You will find most loans come with variable interest rates, some come with attractive low introductory rates, and a few come with fixed rates. You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. You can find loans with large balloon payments at the end of the loan, and others with no balloons but with higher monthly payments. No one loan is right for every homeowner. The challenge, then, is to contact different lenders, compare options, and select the home equity credit line best tailored to your needs. Be sure to review the home equity contract carefully before you sign it. Do not hesitate to ask questions about the terms and conditions of your financing. To help you do this, you may want to consider the following questions and to use the checklist at the end of this brochure. (We apologize that the checklist is not available on-line. To obtain a copy of the checklist, please request a free copy of the brochure by contacting: Public Reference, Federal Trade Commission, Washington, D.C. 20580; (202) 326-2222. TDD call (202) 326-2502.) Is a home equity credit line for you?
If you need to borrow money, home equity lines may be one useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax adviser for details.) At the same time, home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this debt, or they may put your home in jeopardy if you cannot qualify for refinancing. And, if you sell your home, most plans require you to pay off your credit line at that time. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more freely. Remember too, there are other ways to borrow money from a lending institution. For example, you may want to explore second mortgage installment loans. Although these plans also place an additional mortgage on your home, second mortgage money usually is loaned in a lump sum, rather than in a series of advances made available by writing checks on an account. Also, second mortgages usually have fixed interest rates and fixed payment amounts. You also may want to explore borrowing from credit lines that do not use your home as collateral. These are available with your credit cards or with unsecured credit lines that let you write checks as you need the money. In addition, you may want to ask about loans for specific items, such as cars or tuition. How much money can you borrow on a home equity credit line?
Depending on your creditworthiness (your income, credit rating, etc.) and the amount of your outstanding debt, home equity lenders may let you borrow up to 85% of the appraised value of your home minus the amount you still owe on your first mortgage. Ask the lender about the length of the home equity loan, whether there is a minimum withdrawal requirement when you open your account, and whether there are minimum or maximum withdrawal requirements after your account is opened. Inquire how you gain access to your credit line -- with checks, credit cards, or both. Also, find out if your home equity plan sets a fixed time -- a draw period -- when you can make withdrawals from your account. Once the draw period expires, you may be able to renew your credit line. If you cannot, you will not be permitted to borrow additional funds. Also, in some plans, you may have to pay your full outstanding balance. In others, you may be able to repay the balance over a fixed time. What is the interest rate on the home equity loan?
Interest rates for loans differ, so it pays to check with several lenders for the lowest rate. Compare the annual percentage rate (APR), which indicates the cost of credit on a yearly basis. Be aware that the advertised APR for home equity credit lines is based on interest alone. For a true comparison of credit costs, compare other charges, such as points and closing costs, which will add to the cost of your home equity loan. This is especially important if you are comparing a home equity credit line with a traditional installment (or second) mortgage, where the APR includes the total credit costs for the loan. In addition, ask about the type of interest rates available for the home equity plan. Most home equity credit lines have variable interest rates. These variable rates may offer lower monthly payments at first, but during the rest of the repayment period the payments may change and may be higher. Fixed interest rates, if available, may be slightly higher initially than variable rates, but fixed rates offer stable monthly payments over the life of the credit line. If you are considering a variable rate, check and compare the terms. Check the periodic cap, which is the limit on interest rate changes at one time. Also, check the lifetime cap, which is the limit on interest rate changes throughout the loan term. Ask the lender which index is used and how much and how often it can change. An index (such as the prime rate) is used by lenders to determine how much to raise or lower interest rates. Also, check the margin, which is an amount added to the index that determines the interest you are charged. In addition, inquire whether you can convert your variable rate loan to a fixed rate at some future time. Sometimes, lenders offer a temporarily discounted interest rate -- a rate that is unusually low and lasts only for an introductory period, such as six months. During this time, your monthly payments are lower too. After the introductory period ends, however, your rate (and payments) increase to the true market level (the index plus the margin). So, ask if the rate you are offered is "discounted," and if so, find out how the rate will be determined at the end of the discount period and how much larger your payments could be at that time. What are the upfront closing costs?
When you take out a home equity line of credit, you pay for many of the same expenses as when you financed your original mortgage. These include items such as an application fee, title search, appraisal, attorneys' fees, and points (a percentage of the amount you borrow). These expenses can add substantially to the cost of your loan, especially if you ultimately borrow little from your credit line. You may want to negotiate with lenders to see if they will pay for some of these expenses. What are the continuing costs?
In addition to upfront closing costs, some lenders require you to pay continuing fees throughout the life of the loan. These may include an annual membership or participation fee, which is due whether or not you use the account, and/or a transaction fee, which is charged each time you borrow money. These fees add to the overall cost of the loan. What are the repayment terms during the loan?
As you pay back the loan, your payments may change if your credit line has a variable interest rate, even if you do not borrow more money from your account. Find out how often and how much your payments can change. You also will want to know whether you are paying back both principal and interest, or interest only. Even if you are paying back some principal, ask whether your monthly payments will cover the full amount borrowed or whether you will owe an additional payment of principal at the end of the loan. In addition, you may want to ask about penalties for late payments and under what conditions the lender can consider you in default and demand immediate full payment. What are the repayment terms at the end of the loan?
Ask whether you might owe a large payment at the end of your loan term. If so, and you are not sure you will be able to afford the balloon payment, you may want to renegotiate your repayment terms. When you take out the loan, ask about the conditions for renewal of the plan or for refinancing the unpaid balance. Consider asking the lender to agree ahead of time and in writing to refinance any end-of-loan balance or extend your repayment time, if necessary. What safeguards are built into the loan?
One of the best protections you have is the Federal Truth in Lending Act, which requires lenders to inform you about the terms and costs of the plan at the time you are given an application. Lenders must disclose the APR and payment terms and must inform you of charges to open or use the account, such as an appraisal, a credit report, or attorneys' fees. Lenders also must tell you about any variable-rate feature and give you a brochure describing the general features of home equity plans. The Truth in Lending Act also protects you from changes in the terms of the account (other than a variable-rate feature) before the plan is opened. If you decide not to enter into the plan because of a change in terms, all fees you paid earlier must be returned to you. Because your home is at risk when you open a home equity credit account, you have three days to cancel the transaction, for any reason. To cancel, you must inform the lender in writing. Following that, your credit line must be cancelled and all fees you have paid must be returned. Once your home equity plan is opened, if you pay as agreed, the lender, in most cases, may not terminate your plan, accelerate payment of your outstanding balance, or change the terms of your account. The lender may halt credit advances on your account during any period in which interest rates exceed the maximum rate cap in your agreement, if your contract permits this practice.
Using a credit line to borrow against the equity in your home has become a popular source of consumer credit. And lenders are offering these home equity credit lines in a variety of ways. You will find most loans come with variable interest rates, some come with attractive low introductory rates, and a few come with fixed rates. You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. You can find loans with large balloon payments at the end of the loan, and others with no balloons but with higher monthly payments. No one loan is right for every homeowner. The challenge, then, is to contact different lenders, compare options, and select the home equity credit line best tailored to your needs. Be sure to review the home equity contract carefully before you sign it. Do not hesitate to ask questions about the terms and conditions of your financing. To help you do this, you may want to consider the following questions and to use the checklist at the end of this brochure. (We apologize that the checklist is not available on-line. To obtain a copy of the checklist, please request a free copy of the brochure by contacting: Public Reference, Federal Trade Commission, Washington, D.C. 20580; (202) 326-2222. TDD call (202) 326-2502.) Is a home equity credit line for you?
If you need to borrow money, home equity lines may be one useful source of credit. Initially at least, they may provide you with large amounts of cash at relatively low interest rates. And they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax adviser for details.) At the same time, home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. Those loans with a large final (balloon) payment may lead you to borrow more money to pay off this debt, or they may put your home in jeopardy if you cannot qualify for refinancing. And, if you sell your home, most plans require you to pay off your credit line at that time. In addition, because home equity loans give you relatively easy access to cash, you might find you borrow money more freely. Remember too, there are other ways to borrow money from a lending institution. For example, you may want to explore second mortgage installment loans. Although these plans also place an additional mortgage on your home, second mortgage money usually is loaned in a lump sum, rather than in a series of advances made available by writing checks on an account. Also, second mortgages usually have fixed interest rates and fixed payment amounts. You also may want to explore borrowing from credit lines that do not use your home as collateral. These are available with your credit cards or with unsecured credit lines that let you write checks as you need the money. In addition, you may want to ask about loans for specific items, such as cars or tuition. How much money can you borrow on a home equity credit line?
Depending on your creditworthiness (your income, credit rating, etc.) and the amount of your outstanding debt, home equity lenders may let you borrow up to 85% of the appraised value of your home minus the amount you still owe on your first mortgage. Ask the lender about the length of the home equity loan, whether there is a minimum withdrawal requirement when you open your account, and whether there are minimum or maximum withdrawal requirements after your account is opened. Inquire how you gain access to your credit line -- with checks, credit cards, or both. Also, find out if your home equity plan sets a fixed time -- a draw period -- when you can make withdrawals from your account. Once the draw period expires, you may be able to renew your credit line. If you cannot, you will not be permitted to borrow additional funds. Also, in some plans, you may have to pay your full outstanding balance. In others, you may be able to repay the balance over a fixed time. What is the interest rate on the home equity loan?
Interest rates for loans differ, so it pays to check with several lenders for the lowest rate. Compare the annual percentage rate (APR), which indicates the cost of credit on a yearly basis. Be aware that the advertised APR for home equity credit lines is based on interest alone. For a true comparison of credit costs, compare other charges, such as points and closing costs, which will add to the cost of your home equity loan. This is especially important if you are comparing a home equity credit line with a traditional installment (or second) mortgage, where the APR includes the total credit costs for the loan. In addition, ask about the type of interest rates available for the home equity plan. Most home equity credit lines have variable interest rates. These variable rates may offer lower monthly payments at first, but during the rest of the repayment period the payments may change and may be higher. Fixed interest rates, if available, may be slightly higher initially than variable rates, but fixed rates offer stable monthly payments over the life of the credit line. If you are considering a variable rate, check and compare the terms. Check the periodic cap, which is the limit on interest rate changes at one time. Also, check the lifetime cap, which is the limit on interest rate changes throughout the loan term. Ask the lender which index is used and how much and how often it can change. An index (such as the prime rate) is used by lenders to determine how much to raise or lower interest rates. Also, check the margin, which is an amount added to the index that determines the interest you are charged. In addition, inquire whether you can convert your variable rate loan to a fixed rate at some future time. Sometimes, lenders offer a temporarily discounted interest rate -- a rate that is unusually low and lasts only for an introductory period, such as six months. During this time, your monthly payments are lower too. After the introductory period ends, however, your rate (and payments) increase to the true market level (the index plus the margin). So, ask if the rate you are offered is "discounted," and if so, find out how the rate will be determined at the end of the discount period and how much larger your payments could be at that time. What are the upfront closing costs?
When you take out a home equity line of credit, you pay for many of the same expenses as when you financed your original mortgage. These include items such as an application fee, title search, appraisal, attorneys' fees, and points (a percentage of the amount you borrow). These expenses can add substantially to the cost of your loan, especially if you ultimately borrow little from your credit line. You may want to negotiate with lenders to see if they will pay for some of these expenses. What are the continuing costs?
In addition to upfront closing costs, some lenders require you to pay continuing fees throughout the life of the loan. These may include an annual membership or participation fee, which is due whether or not you use the account, and/or a transaction fee, which is charged each time you borrow money. These fees add to the overall cost of the loan. What are the repayment terms during the loan?
As you pay back the loan, your payments may change if your credit line has a variable interest rate, even if you do not borrow more money from your account. Find out how often and how much your payments can change. You also will want to know whether you are paying back both principal and interest, or interest only. Even if you are paying back some principal, ask whether your monthly payments will cover the full amount borrowed or whether you will owe an additional payment of principal at the end of the loan. In addition, you may want to ask about penalties for late payments and under what conditions the lender can consider you in default and demand immediate full payment. What are the repayment terms at the end of the loan?
Ask whether you might owe a large payment at the end of your loan term. If so, and you are not sure you will be able to afford the balloon payment, you may want to renegotiate your repayment terms. When you take out the loan, ask about the conditions for renewal of the plan or for refinancing the unpaid balance. Consider asking the lender to agree ahead of time and in writing to refinance any end-of-loan balance or extend your repayment time, if necessary. What safeguards are built into the loan?
One of the best protections you have is the Federal Truth in Lending Act, which requires lenders to inform you about the terms and costs of the plan at the time you are given an application. Lenders must disclose the APR and payment terms and must inform you of charges to open or use the account, such as an appraisal, a credit report, or attorneys' fees. Lenders also must tell you about any variable-rate feature and give you a brochure describing the general features of home equity plans. The Truth in Lending Act also protects you from changes in the terms of the account (other than a variable-rate feature) before the plan is opened. If you decide not to enter into the plan because of a change in terms, all fees you paid earlier must be returned to you. Because your home is at risk when you open a home equity credit account, you have three days to cancel the transaction, for any reason. To cancel, you must inform the lender in writing. Following that, your credit line must be cancelled and all fees you have paid must be returned. Once your home equity plan is opened, if you pay as agreed, the lender, in most cases, may not terminate your plan, accelerate payment of your outstanding balance, or change the terms of your account. The lender may halt credit advances on your account during any period in which interest rates exceed the maximum rate cap in your agreement, if your contract permits this practice.
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