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Questions to ConsiderQuestions to Consider
What are consumers rights and What are consumers rights and responsibilities?responsibilities?
What is the purpose of consumer What is the purpose of consumer protection laws and agencies?protection laws and agencies?
How can I avoid identity theft and fraud?How can I avoid identity theft and fraud? How do I understand financial contracts?How do I understand financial contracts? What are ways to avoid financial scams?What are ways to avoid financial scams?
Consumer Rights & Consumer Rights & ResponsibilitiesResponsibilities
RIGHTSRIGHTS RESPONSIBILITIESRESPONSIBILITIESTo SafetyTo Safety To Use Products SafelyTo Use Products Safely
To Be InformedTo Be Informed To Seek Information and To Seek Information and Use it to make DecisionsUse it to make Decisions
To ChooseTo Choose To Choose Goods and To Choose Goods and Services CarefullyServices Carefully
To Be HeardTo Be Heard To Speak Up and Let To Speak Up and Let Likes and Dislikes Be Likes and Dislikes Be KnownKnown
Consumer Bill of Rights (State of the Union Address of 1962, President John F. Kennedy) Source: Thomson South-Western, Economic Education for Consumers; USOE Adult Roles & Responsibilities
Agencies & Sources of Agencies & Sources of AssistanceAssistance
Food & Drug Administration (FDA)Food & Drug Administration (FDA) www.fda.gov
Consumer Product Safety Commission Consumer Product Safety Commission (CPSC)(CPSC)
www.cpsc.gov
Federal Trade Commission (FTC)Federal Trade Commission (FTC) www.ftc.gov
Better Business Bureau (BBB)Better Business Bureau (BBB) www.bbb.org
Bureau of Consumer Protection (BCP)Bureau of Consumer Protection (BCP) www.ftc.gov
Consumer UnionsConsumer Unions
(Consumer Product-Testing Organizations)(Consumer Product-Testing Organizations)
Consumer ReportConsumer Report
Consumer ResearchConsumer Research
Changing TimesChanging Times
Source: USOE Adult Roles & Responsibilities Curriculum
Identity TheftIdentity Theft“True-name Fraud”“True-name Fraud”
Someone wrongfully acquires and uses a Someone wrongfully acquires and uses a consumer’s personal identification, credit, consumer’s personal identification, credit, or account information without your or account information without your permission.permission.
This information may include:This information may include: Social Security NumbersSocial Security Numbers NameName AddressAddress Date of BirthDate of Birth Mother’s Maiden NameMother’s Maiden Name PasswordsPasswords PINsPINs
FraudFraud
A deliberate deception, designed to A deliberate deception, designed to secure unfair or unlawful gain. secure unfair or unlawful gain. (“Cheating the Consumer”)(“Cheating the Consumer”)
Ways to Avoid Identity TheftWays to Avoid Identity Theft Monitor your credit report.Monitor your credit report. Don’t give out personal information to Don’t give out personal information to
unknown people or companies.unknown people or companies. Protect your credit and debit cards.Protect your credit and debit cards. Protect your mailbox.Protect your mailbox. Protect your wallet.Protect your wallet. Use passwords and PINs that cannot be Use passwords and PINs that cannot be
easily guessed.easily guessed. Use anti-virus software on your computer.Use anti-virus software on your computer. Notify your bank when you change your Notify your bank when you change your
address or phone number.address or phone number.
Respond to the following scenarios based on what Respond to the following scenarios based on what you have learned.you have learned.
Bethany purchased a new pair of Bethany purchased a new pair of shoes from the Internet. What steps shoes from the Internet. What steps should she take to ensure her should she take to ensure her identity was protected while making identity was protected while making the purchase?the purchase?
Source: FEFE 3.1
Respond to the following scenarios based on what Respond to the following scenarios based on what you have learned.you have learned.
Dana went out to dinner and left her credit Dana went out to dinner and left her credit card there. The next day she called the card there. The next day she called the restaurant and they said they didn’t have restaurant and they said they didn’t have the card. What should she do?the card. What should she do?
Source: FEFE 3.1
Respond to the following scenarios based on what Respond to the following scenarios based on what you have learned.you have learned.
Jacob has just finished writing bills. Jacob has just finished writing bills. What steps should he take to ensure What steps should he take to ensure the bills reach their destination the bills reach their destination safely?safely?
Source: FEFE 3.1
Respond to the following scenarios based on what Respond to the following scenarios based on what you have learned.you have learned.
Sam purchased a bicycle on credit. When Sam purchased a bicycle on credit. When he received his credit card statement, he he received his credit card statement, he noticed several charges he did not make. noticed several charges he did not make. What should he do?What should he do?
Source: FEFE 3.1
Disclosure InformationDisclosure Information
Provides full information about a Provides full information about a financial institution’s policies, such financial institution’s policies, such as electronic funds transfer policies, as electronic funds transfer policies, lending policies, interest crediting, lending policies, interest crediting, and compliance with banking and compliance with banking regulations. These statements are regulations. These statements are required by law.required by law.
Grace PeriodGrace Period
The time between the billing date The time between the billing date and the payment due date when no and the payment due date when no interest is charged.interest is charged.
Late Payment PenaltiesLate Payment Penalties Late FeesLate Fees Finance ChargesFinance Charges Increased Interest RateIncreased Interest Rate
Method of Interest CalculationMethod of Interest Calculation
Average daily balance excluding new Average daily balance excluding new purchasespurchases
Average daily balance including new Average daily balance including new purchases with a grace periodpurchases with a grace period
Average daily balance including new Average daily balance including new purchases with no grace periodpurchases with no grace period
Two-cycle average daily balance Two-cycle average daily balance including new purchasesincluding new purchases
Tips To Help Dump DebtTips To Help Dump Debt Write it downWrite it down
Make a list of how much money you owe and the Make a list of how much money you owe and the interest rate.interest rate.
Start the snowball rollingStart the snowball rolling Pick the debt with the highest interest rate and put Pick the debt with the highest interest rate and put
extra cash toward that balance. Negotiate a extra cash toward that balance. Negotiate a repayment schedule.repayment schedule.
Cut it outCut it out Select an activity and stop it for a month or two, Select an activity and stop it for a month or two,
put it toward the debt. Or, sell assets.put it toward the debt. Or, sell assets. Don’t forget to saveDon’t forget to save
Start saving, even if it’s a small amount every Start saving, even if it’s a small amount every week.week.
Source: NEFE
Concerning interest on debt…Concerning interest on debt…
Interest never sleeps nor sickens nor dies;Interest never sleeps nor sickens nor dies;It never goes to the hospital;It never goes to the hospital;It works on Sundays and holidays;It works on Sundays and holidays;It never takes a vacation;It never takes a vacation;It never visits or travels;It never visits or travels;It takes no pleasure;It takes no pleasure;It is never laid off work nor discharged from It is never laid off work nor discharged from
employment;employment;It never works on reduced hoursIt never works on reduced hours
Once in debt, interest is your Once in debt, interest is your companion every minute of the day companion every minute of the day and night; you cannot shun it or slip and night; you cannot shun it or slip away from it; you cannot dismiss it; away from it; you cannot dismiss it;
it yields neither to entreaties, it yields neither to entreaties, demands, or orders, and whenever demands, or orders, and whenever
you get in its way or cross its you get in its way or cross its course or fail to meet its demands it course or fail to meet its demands it
crushes you.crushes you.
~ J. Ruben Clark~ J. Ruben Clark