Consumer Rights and Responsibilities

1. Caveat Emptor Consumer Rights and Responsibilities

2. Personal Consumer Rating

3. On question #1, give yourself five points if you selected something to do with your money that is consistent with your goals and values in life. Give yourself two points for each question you answered, as follows #1 – No #2—yes #3—yes #4—yes #5—yes #6—yes #7—no #8—yes #9—no #10—yes #11—yes #12—yes #13—yes #14--yes 23-28 points Great! Keep up the good work! 19-23 points Fair. You should begin to make some changes. 14-19 points Not too good. Consider making some big changes Less than 14 Take good notes during this unit, you'll need them! PERSONAL CONSUMER RATING Watch your back vocabulary

4. A variety of products Competitive prices No monopolies Right to Choose Responsibility to choose carefully • Practice comparison shopping • Consider the cost • Research variety of places, items, magazines • Refuse to buy

5. Accurate information to make free choice Protected against fraudulent, deceptive, and misleading information Right to Information Responsibility to seek information and use it to make wise decisions • Use available information • Seek accurate information • Ask questions & understand

6. Disclosure information • Grace periods • Payment penalties • Early or late • Method of interest calculations Understanding Financial Contract

7. Government Protection Food & Drug Administration (FDA) Consumer Product Safety Commission (CPSC) Assume product will perform as intended Right to Safety Responsibility to use products safely • Read information • Read & follow instructions • Read & heed to any warning labels

8. Complain BBB (Better Business Bureau) Consumer Protection Agency Right to be heard Responsibility to speak up • Speak up to let likes & dislikes known • Complaint letters • Support reputable businesses

9. Consumers have the right to resolve consumer problems in any case of dissatisfaction Right to Redress Responsibility to Seek Redress • Make suggestions • Seek satisfaction • Speak up when errors occur

10. Consumers may expect convenience, courtesy, and responsiveness to consumer needs and problems Right to Service Responsibility to be Alert • Expect good service • Compliment service where appropriate

11. Without consumer education consumer cannot gain the full benefits of the other seven consumer rights Right to Consumer Education Responsibility to Study • Become more informed about how to get money’s worth • Learn how to assert all the consumer rights

13. SMART By Shel Silverstein My Dad game me one dollar bill ‘cause I’m his smartest son, And I swapped it for 2 shiny quarters ‘cause 2 is more than 1. And then I took the quarters and traded them to Lou for 3 times – I guess he don’t know that 3 is more than 2. Just then, along came old blind Bates and just ‘cause he can’t see, He gave me 4 nickels for my 3 dimes, and 4 is more than 3. And I took the nickels to Hiram Coombs Down at the seed-feed store, and the fool gave me 5 pennies for them, and 5 is more than 4! And then I went and showed my Dad, and he got red in the cheeks and closed his eyes and shook his head – Too proud of me to speak! Oprah Debt Diet

14. Money owed to a person or entity that must be paid off by a deadline. • Mortgage, car, or school loans, • credit card balance • Leasing an item • How much debt is too much debt? • Annual debt payment should be no more than 20% of your annual (NET) take home income. • Rent or mortgage can be 30% on their own. DEBT

15. (CCCS) Consumer Credit Counseling Service • Debt and financial counseling assistance Credit Counseling and Debt COnsolodation

16. Apply for a card with lower interest rates • Consolidate credit card debt • Stop using the credit cards – if possible • Stop overspending and going into debt • Don’t borrow what you can’t pay off • Pay off more that the monthly minimum • Consider using savings money to pay off debt • Scenario: If savings is earning 3.5% interest and debt is 15% interest, where would the money be put to better use first? • Sell assets • Negotiate repayment schedule Responsible Response to Excessive Debt

17. Part 1

18. Part 2

19. Part 3 Were they wise consumers? You choose…

20. 1. Think about what you NEED before you buy. (Think about specific features and requirements that are important to you.) 2. Compare stores 3. Compare brands, prices, and quality before making a selection. 4. Check for any extra charges. 5. Read and understand the warranty. 6. Written contracts when purchasing large items and read the contract terms carefully. 7. Read and follow the use and care guides. 8. Keep all sales receipts, warranties, and instructions. 9. Understand the store's refund or exchange policy. 10. Check your bill for accuracy. 11. Before purchasing anything from a company, check out its reputation. 12. Do not pay for items or services until they are acceptable to you. 13. Avoid telephone sales. 14. Price is not necessarily an indication of quality. 15. Calculate the cost per unit (unit pricing) to determine the best purchases. 16. Consumers are responsible to protect themselves against fraud. guidelines