Consumer Awareness

CONSUMER CONSUMER AWARENESSAWARENESS

Your Rights Your Rights

Your ResponsibilitiesYour Responsibilities

Financial Information & Financial Information & PrivacyPrivacy

True or FalseTrue or False

Because I need my social security Because I need my social security number fornumber for

so many things, it’s a good idea to so many things, it’s a good idea to keep mykeep my

social security card in my wallet so social security card in my wallet so I can showI can show

it whenever someone asks for it.it whenever someone asks for it.

Answer:Answer: False False Always keep your social security card in a safe Always keep your social security card in a safe

place, never in your walletplace, never in your wallet..

Never give your social security number to anyone unless Never give your social security number to anyone unless you need to provide the number for a good reason. you need to provide the number for a good reason.

They can use that number to open a credit card account They can use that number to open a credit card account or get a loan using your name. The lender will then or get a loan using your name. The lender will then expect you to pay for the purchases or repay the money. expect you to pay for the purchases or repay the money.

Other examples of Other examples of identity theftidentity theft include using another include using another person’s name or social security number to open a bank person’s name or social security number to open a bank account or to open a cell phone or utility account. account or to open a cell phone or utility account.


I received an e-mail from my bank I received an e-mail from my bank telling metelling me

to click on a link and verify my to click on a link and verify my accountaccount

information. If I don’t do this, I information. If I don’t do this, I could havecould have

problems with my account.problems with my account.

Answer:Answer: False False Beware of misleading e-mails and Beware of misleading e-mails and

fraudulentfraudulent Web sites used to trick you Web sites used to trick you into revealing personal information. into revealing personal information.

For example, someone claiming to be your For example, someone claiming to be your bank may send you an e-mail telling you bank may send you an e-mail telling you that you will not be able to use your credit that you will not be able to use your credit card unless you provide your social card unless you provide your social security number or your online log-in and security number or your online log-in and password. password.

This is called This is called phishingphishing,, and is used to and is used to obtain personal information for unlawful obtain personal information for unlawful purposespurposes. .


I just got my first credit card, and I just got my first credit card, and suddenlysuddenly

I’m getting all kinds of credit card I’m getting all kinds of credit card offers in theoffers in the

mail. If I want, I can contact mail. If I want, I can contact someone to stopsomeone to stop

sending me this junk mail.sending me this junk mail.

Answer:Answer: True True When you apply for a credit card or a loan, the When you apply for a credit card or a loan, the

bank or store collects your personal information, bank or store collects your personal information, such as your address, account balances, payment such as your address, account balances, payment history, etc.history, etc.

Some of this information is made available to Some of this information is made available to other companies, which then use the information other companies, which then use the information to send you to send you solicitationssolicitations for credit cards and for credit cards and insurance products. insurance products.

You can You can opt outopt out of this sharing by calling of this sharing by calling

(888) 5-OPT-OUT / (888) 567-8688 or online at (888) 5-OPT-OUT / (888) 567-8688 or online at www.optoutprescreen.comwww.optoutprescreen.com. .


I received a pre-approved credit offer, but I received a pre-approved credit offer, but II

already have a credit card and don’t already have a credit card and don’t wantwant

another one. another one.

I should shred the offer before I throw it I should shred the offer before I throw it out,out,

because it might contain personal because it might contain personal informationinformation

that could be used for identity theftthat could be used for identity theft..

Answer:Answer: True True

It’s not uncommon for people to It’s not uncommon for people to go through trash looking for go through trash looking for credit or financial information or credit or financial information or documents containing your documents containing your social security number. social security number.


I received an e-mail from a stranger in a foreignI received an e-mail from a stranger in a foreigncountry telling me that he has inherited about country telling me that he has inherited about

$15$15million from his uncle, but cannot get the money million from his uncle, but cannot get the money

outoutbecause of complicated rules. He promises that if because of complicated rules. He promises that if

IIsend him $500 to help him, I’ll be guaranteed asend him $500 to help him, I’ll be guaranteed apercentage of the inheritance. percentage of the inheritance.

Since the e-mail sender knew my name and e-mailSince the e-mail sender knew my name and e-mailaddress, I can trust him.address, I can trust him.

Answer:Answer: False False There have been many There have been many scamsscams tricking tricking

victims into sending money because victims into sending money because they expected to receive a large they expected to receive a large fortune after an initial deposit or fortune after an initial deposit or “investment.” “investment.”

Names and e-mail addresses are easily Names and e-mail addresses are easily available from mass mailing lists.available from mass mailing lists.

If a deal sounds “too good to be true,” If a deal sounds “too good to be true,” it probably is a it probably is a scam.scam.

Credit and Credit CardsCredit and Credit Cards


I just bought my first car and got a loan to I just bought my first car and got a loan to paypay

for it. Some months, though, I have troublefor it. Some months, though, I have troublemaking my payments. making my payments.

If I If I defaultdefault on my loan, only this lender will on my loan, only this lender willknow about it, and some day, if I need know about it, and some day, if I need

anotheranotherloan, I’ll still be able to get it from anotherloan, I’ll still be able to get it from anotherlender.lender.

Answer:Answer: False False When you have a loan or a credit card from a When you have a loan or a credit card from a

bank or other lender, the lender keeps a record bank or other lender, the lender keeps a record of whether you pay back your loan on time. of whether you pay back your loan on time.

This information is made available, along with This information is made available, along with information about your other debts, to other information about your other debts, to other lenders or potential lenders. lenders or potential lenders.

Your Your credit historycredit history will affect whether you can will affect whether you can get a loan or the interest rate that you will have get a loan or the interest rate that you will have to pay to get that loan. to pay to get that loan.

It can also determine if you’re able to rent an It can also determine if you’re able to rent an

apartment or get a job.apartment or get a job.


I want to know what my I want to know what my credit credit reportreport says says

about my credit history, but the about my credit history, but the information isinformation is

secret and I can't get a copy secret and I can't get a copy because onlybecause only

banks can see my banks can see my credit reportcredit report..

Answer:Answer: False False Your Your credit reportcredit report is available to lenders, is available to lenders,

employers, landlords, and insurers, as long as employers, landlords, and insurers, as long as they have a “legitimate business need.” they have a “legitimate business need.”

You can order your credit report, and should do You can order your credit report, and should do so in order to verify that the information is so in order to verify that the information is accurate and to see if anyone else has been accurate and to see if anyone else has been using your name or financial information using your name or financial information illegally. illegally.

Under federal law, you can get a free copy of Under federal law, you can get a free copy of your credit reports annually. To order free your credit reports annually. To order free reports, go to reports, go to www.annualcreditreport.comwww.annualcreditreport.com or call or call (877) 322-8228.(877) 322-8228.


I received a lot of money for my I received a lot of money for my graduation,graduation,

and I want to go to the mall to buy a newand I want to go to the mall to buy a newlaptop. laptop.

Even though I have the cash, it might Even though I have the cash, it might still bestill be

better to use my credit card to pay for thebetter to use my credit card to pay for thelaptop.laptop.

Answer:Answer: True True Using a credit card to make purchases offers several Using a credit card to make purchases offers several

advantages over paying with cash.advantages over paying with cash.

For example, most credit cards offer some form of For example, most credit cards offer some form of protection if your card is reported stolen or missing, protection if your card is reported stolen or missing, while cash cannot be replaced if lost or stolen. while cash cannot be replaced if lost or stolen.

Using a credit card may also give you some form of Using a credit card may also give you some form of buyer protection if you purchase an item that is buyer protection if you purchase an item that is defectivedefective. .

If you pay by credit card, you will be charged If you pay by credit card, you will be charged interest on your credit card balance. On most credit interest on your credit card balance. On most credit cards, you will not pay interest if you always pay off cards, you will not pay interest if you always pay off the the entireentire balance - not just the minimum amount balance - not just the minimum amount due - by the due date.due - by the due date.


If I am late in paying my credit If I am late in paying my credit card bill, I maycard bill, I may

have to pay a late fee in addition have to pay a late fee in addition to interestto interest

charges, and my interest rate may charges, and my interest rate may alsoalso

increase.increase.

Answer:Answer: True True Different credit card companies have Different credit card companies have

different policies about late payments. different policies about late payments. Whenever you apply for a credit card or Whenever you apply for a credit card or

answer a credit card answer a credit card solicitationsolicitation, be sure , be sure you understand the credit card terms, you understand the credit card terms, such as the interest rate, any annual fee, such as the interest rate, any annual fee, and any late fees. and any late fees.

The credit card issuer must provide The credit card issuer must provide information to you about additional costs information to you about additional costs if you if you defaultdefault, along with other , along with other information.information.


I took out a loan to buy my car, but the I took out a loan to buy my car, but the bankbank

required my parents to co-sign the loan. required my parents to co-sign the loan. Since Since

I am the only one that drives the car, myI am the only one that drives the car, my

parents are not responsible if I do not parents are not responsible if I do not pay mypay my

loan.loan.

Answer:Answer: False False

Many young people lack a Many young people lack a credit credit historyhistory and may need a co-signer and may need a co-signer to get their first loan or credit to get their first loan or credit card. Anyone that co-signs your card. Anyone that co-signs your loan is responsible for repaying loan is responsible for repaying the loan if you default.the loan if you default.

Consumer PurchasesConsumer Purchases


I just bought a dress on sale and I just bought a dress on sale and found it has afound it has a

hole in it. I can return it and get hole in it. I can return it and get my moneymy money

back, even though the store had a back, even though the store had a sign thatsign that

said said all sales final. all sales final.

Answer:Answer: False False If a store sells goods with warnings like “all sales final” If a store sells goods with warnings like “all sales final”

or “as is,” you can not return them to the store for a or “as is,” you can not return them to the store for a replacement or refund even if the goods are replacement or refund even if the goods are defectivedefective. .

Usually, if there’s no such warning, you can return an Usually, if there’s no such warning, you can return an item for a refund without giving the store a reason. item for a refund without giving the store a reason.

However, it is always best to ask the store what their However, it is always best to ask the store what their return policy is. Different stores have different return policy is. Different stores have different return return policiespolicies, and different states have different laws about , and different states have different laws about what stores must accept. what stores must accept.

If the store will accept a returned item, you might only If the store will accept a returned item, you might only receive store credit or an exchange, instead of a cash receive store credit or an exchange, instead of a cash refund. They can also limit the time period during which refund. They can also limit the time period during which the customer may return the goods, or require the the customer may return the goods, or require the customer to pay a fee, provide proof of purchase, or customer to pay a fee, provide proof of purchase, or provide the original packaging.provide the original packaging.


My relatives gave me gift My relatives gave me gift certificates for mycertificates for my

birthday. Since some of them have birthday. Since some of them have expirationexpiration

dates, I should plan to use those dates, I should plan to use those first.first.

Answer:Answer: True True If you buy or receive a gift card, it’s If you buy or receive a gift card, it’s

best to find out what restrictions come best to find out what restrictions come with the card. For example, does it with the card. For example, does it expire? Can you redeem it for cash? Is expire? Can you redeem it for cash? Is there a fee if you don’t use it right there a fee if you don’t use it right away? away?

Different states have different laws Different states have different laws about what restrictions stores may about what restrictions stores may place on their gift cards and different place on their gift cards and different stores have different policies about gift stores have different policies about gift cards.cards.


I have a notebook computer that uses aI have a notebook computer that uses a

lithium-ion battery. I heard that the lithium-ion battery. I heard that the battery isbattery is

being recalled because it might overheat,being recalled because it might overheat,

posing a fire and burn hazard. It has notposing a fire and burn hazard. It has not

happened to me, so I should just continuehappened to me, so I should just continue

using my computer.using my computer.

Answer:Answer: False False The U.S. Consumer Product Safety Commission is The U.S. Consumer Product Safety Commission is

charged with protecting the public from charged with protecting the public from unreasonable risks of serious injury or death unreasonable risks of serious injury or death from consumer products.from consumer products.

If a product is being recalled, some consumers If a product is being recalled, some consumers

have been injured, or a risk of injury or damage have been injured, or a risk of injury or damage has been identified. You can find information on has been identified. You can find information on product product recalls recalls and recall alerts at and recall alerts at www.cpsc.govwww.cpsc.gov. .

If there is a recall announcement on a product, it If there is a recall announcement on a product, it will tell you whether you can receive a cash will tell you whether you can receive a cash refund for your product, a replacement, or a refund for your product, a replacement, or a software upgrade. software upgrade.

RentalsRentals


Two months ago, my roommates and I Two months ago, my roommates and I signedsigned

a one-year lease for an apartment, but we a one-year lease for an apartment, but we areare

not getting along and I have decided to not getting along and I have decided to movemove

out. I am not responsible for paying my out. I am not responsible for paying my shareshare

of the rent after I move out.of the rent after I move out.

Answer:Answer: False False When you sign a lease, you enter into a When you sign a lease, you enter into a

contract and agree to keep certain promises, contract and agree to keep certain promises, including paying rent on time. including paying rent on time.

If you sign a lease for a specified period of If you sign a lease for a specified period of time, you are obligated to pay rent for the time, you are obligated to pay rent for the whole period, even if you move out early. whole period, even if you move out early.

The lease agreement might permit you and The lease agreement might permit you and your roommates to find someone to replace your roommates to find someone to replace you, but most likely you will need to get the you, but most likely you will need to get the landlord’s consent. landlord’s consent.

Be sure to read the lease agreement. Be sure to read the lease agreement. In most major cities and on many college In most major cities and on many college

campuses, you can find services that provide campuses, you can find services that provide help with help with landlord-tenantlandlord-tenant questions questions


The landlord’s daughter wants to The landlord’s daughter wants to move intomove into

the house my family is living in. the house my family is living in.

Since we are just renting the house, Since we are just renting the house, we havewe have

no choice but to move out right no choice but to move out right away.away.

Answer:Answer: False False Landlords have the right to Landlords have the right to evictevict you in some cases you in some cases

—for example, if you don’t pay the rent on time—but —for example, if you don’t pay the rent on time—but generally you will have some time before you must generally you will have some time before you must move. move.

Landlords sometimes have the right to evict you Landlords sometimes have the right to evict you even if you haven’t violated the terms of your lease even if you haven’t violated the terms of your lease or rental agreement. Whether they can do so or rental agreement. Whether they can do so depends on many factors, such as whether you have depends on many factors, such as whether you have a lease or a month-to-month rental.a lease or a month-to-month rental.

It also depends on where you live, since different It also depends on where you live, since different cities have different laws that apply in such cases. cities have different laws that apply in such cases. It’s a good idea to contact an organization or service It’s a good idea to contact an organization or service where you live for advice on what your rights are. where you live for advice on what your rights are. Most major cities and many college campuses offer Most major cities and many college campuses offer services that help with services that help with landlord-tenantlandlord-tenant questions. questions.

GlossaryGlossary Credit history, Credit reportCredit history, Credit report

A A credit historycredit history is a record showing individual consumer debts is a record showing individual consumer debts and whether they were paid on time and as agreed. Credit and whether they were paid on time and as agreed. Credit institutions have created detailed documents, called institutions have created detailed documents, called credit credit reportsreports, of your credit history, which they provide to lenders, , of your credit history, which they provide to lenders, landlords, and others.landlords, and others.

DefaultDefaultFailing to do something you agreed to do. If you have a credit Failing to do something you agreed to do. If you have a credit card, the most common default is not making a payment on card, the most common default is not making a payment on time. If you rent an apartment, you are in time. If you rent an apartment, you are in defaultdefault if you don’t if you don’t keep the apartment in good condition. keep the apartment in good condition.

Defective productDefective productAny merchandise you buy that is broken when you buy it or does Any merchandise you buy that is broken when you buy it or does not function the way the seller said it would.not function the way the seller said it would.

Evict, evictionEvict, evictionTo legally force someone to leave the house or apartment he/she To legally force someone to leave the house or apartment he/she is living in.is living in.

Fraud, fraudulentFraud, fraudulentA trick or deception intended to gain information or something A trick or deception intended to gain information or something of value.of value.

Glossary Glossary continuedcontinued

Identify theftIdentify theftUnauthorized use of someone’s personal data, for example Unauthorized use of someone’s personal data, for example a driver’s license or social security number, for any a driver’s license or social security number, for any unlawful purpose, such as to obtain a credit card or loan.unlawful purpose, such as to obtain a credit card or loan.

Landlord; tenantLandlord; tenantA A landlordlandlord is a person or a company that owns a rental unit is a person or a company that owns a rental unit and rents or leases it to another person, called a and rents or leases it to another person, called a tenant.tenant. If If the landlord and tenant sign a lease agreement, the the landlord and tenant sign a lease agreement, the landlord is also called a landlord is also called a lessorlessor,, and the tenant is called a and the tenant is called a lesseelessee..

Opt outOpt outTo tell financial companies that you do not agree to their To tell financial companies that you do not agree to their sharing of your personal financial information with other sharing of your personal financial information with other companies that offer loans or other financial services. companies that offer loans or other financial services.

PhishingPhishingUsing electronic communication to obtain personal Using electronic communication to obtain personal information, such as usernames, passwords, and credit card information, such as usernames, passwords, and credit card details, by pretending to be someone you know or have a details, by pretending to be someone you know or have a relationship with, such as your credit card company.relationship with, such as your credit card company.

Glossary Glossary continuedcontinued

RecallRecall

To ask or order a product to be returned because it can To ask or order a product to be returned because it can cause harm or injury.cause harm or injury.

Return policyReturn policy

A store’s own rules about whether it will accept A store’s own rules about whether it will accept merchandise you have bought from the store if you want to merchandise you have bought from the store if you want to return it. return it.

ScamScam

A way to cheat people and trap them into giving money.A way to cheat people and trap them into giving money. Solicit, solicitationSolicit, solicitation

SolicitSolicit means to ask someone for help, money, or means to ask someone for help, money, or information. Credit card information. Credit card solicitationssolicitations are sent by credit are sent by credit card companies that purchase lists of consumers and use card companies that purchase lists of consumers and use them for mass mailings to offer credit card services to them for mass mailings to offer credit card services to potential customers.potential customers.

ResourcesResources

California Department of Consumer California Department of Consumer Affairs. Affairs. www.dca.ca.gov/consumer/index.shtmlwww.dca.ca.gov/consumer/index.shtml

Freddie Mac. Freddie Mac. www.freddiemac.com/creditsmart/curriculumwww.freddiemac.com/creditsmart/curriculum

Privacy Rights Organization.Privacy Rights Organization.www.privacyrights.orgwww.privacyrights.org

U.S. Consumer Product Safety U.S. Consumer Product Safety Commission. Commission. www.cpsc.govwww.cpsc.gov

U.S. Federal Trade Commission.U.S. Federal Trade Commission.www.ftc.gov/creditwww.ftc.gov/credit

DisclaimerDisclaimer

The information provided in this The information provided in this document is intended to raise awareness document is intended to raise awareness of consumer rights and responsibilities, of consumer rights and responsibilities, and is not intended to be a legal guide. and is not intended to be a legal guide.

Questions about the application of a Questions about the application of a particular law to a particular situation particular law to a particular situation should be directed to qualified should be directed to qualified attorneysattorneys..

Developed by Sylvia YauDeveloped by Sylvia Yau

Sylvia Yau is a candidate for the Sylvia Yau is a candidate for the M.A. degree at San Francisco State M.A. degree at San Francisco State University, with a TESOL focus. University, with a TESOL focus.

She previously worked as a She previously worked as a corporate lawyer, specializing in corporate lawyer, specializing in financial services and corporate law.financial services and corporate law.

She received her J.D. degree from She received her J.D. degree from from Boalt Hall School of Law (UC from Boalt Hall School of Law (UC Berkeley).Berkeley).

Date post:	20-Nov-2014
Category:	Economy & Finance
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Consumer Awareness

Economy & Finance