DEAR BRUCE: My daughter is 36. She and her spouse always had credit scores above 800. She applied to have her mortgage refinanced in January. The mortgage company used all three credit bureaus. Her scores were 692, 714, and 695. His was 692, 714, and 835. There was a Discover bill for $12.87 that was reported as a serious delinquency. She hadn't used her card for more than two years, and when she did, she paid the balance monthly. She finally talked to someone from Discover. They said it started as a $2.99 payment protection plan that she agreed to over the phone. She did not need this since she paid the balance monthly. She had moved to a different city in 2006. Discover started sending her bills for this $2.99 in 2008. Since the post office will only forward mail for one year, she never received the bills and Discover never tried to contact her. I think this is terrible that a company can cost someone 140 points on their credit report over a $2.99 bill that she never received. What would you recommend that she do? -- Reader via e-mail

DEAR READER: I agree with you that the whole system that FICO uses is absurd. Unfortunately, computers don't have any brains, they only know what's put in and put out. The $2.99 charge is going to compound until a human is brought into the loop. Further, you say that she didn't use her card, but apparently, she did not notify Discover that she did move even though she had an active card. Be that as it may, I think it can be worked out with Discover to notify the credit reporting agencies that this was a computer error and it should be deleted from her files. Unless she is intending to apply for credit immediately, I don't see where she has much to concern herself with.

DEAR BRUCE: I have a very dear friend in California who is dealing with a big mess. She has not filed income tax returns for several years, and we are afraid it is going to come back to haunt her. During the time she has not filed, she has had enough income to require her to file. She is not experienced in any way about financial matters and took the path of "If I ignore it, it will go away." I don't know what advice to give her other than to seek the assistance of a tax professional, as they should know the rules and regulations pertaining to these types of matters. Is there a way to tell that a person or organization is well-qualified to perform this type of work for her? I am not sure if just having the title of CPA is reassurance enough. She wants to do the right thing and become current on her tax liability, she just does not want to make things worse. -- J.S. from Lincoln, Neb.

DEAR J.S.: This is a relatively common proposition. If your friend comes forward, it is very unlikely that penalties, other than maybe some financial penalties, would be assessed. It's not the IRS's position to put her into a striped suit. That observed, I suggest that she find a CPA who specializes in "tax matters." You're right, having CPA in their title is not enough. If she prefers, she can contact an "enrolled agent." This is someone who is licensed to practice before the IRS, and most enrolled agents are former IRS employees. They will submit for her what are called amended return. If there are penalties and interest, just enclose a check with the amended return, and I think you will find that the matter is concluded.

DEAR BRUCE: I co-own a house in Florida with my father. Upon his death, does the house become mine, or does half of it go to his estate? Also, if he needs long-term care and runs out of money, would the house be considered part of his assets? -- T.A., via e-mail

DEAR T.A.: With regard to your first question, this depends upon how the house is titled. If the house is titled in joint tenancy with the right of survivorship, then upon either of your demise, the other guy owns the house in its entirety. Otherwise, his half will go into the estate. Other things being equal, unless our dad has reasons not too, I would want to see the house so titled and have it changed if it is not that way. If he needs long-term care and collects Medicaid, the house is part of his assets and upon his demise his piece of the action could be attached by the state providing the Medicaid help. If you were to put the house in your name, then you would have to satisfy the "look back" period, which is five years. That means that if he collects any aid before that look back time has expired, the house would still be considered his asset.