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Consumer's Resource Handbook

Table of Contents

Acknowledgments iv

Using this Handbook 1
What's in the Handbook 1
Other Sources of Help 2
Other Consumer Information 4

Part I. Buying Smart 5
Protecting Yourself 5
Red Flags of Fraud 6
Complaining Effectively 6
Writing a Complaint Letter 7
Sample Complaint Letter 8
Consumer Tips 9
Car Repair, Purchase, Renting and Other Concerns 9
Mail Order 12
Mail Fraud 13
Telemarketing 13
Calls That Cost: 900 Numbers and Other Pay-Per-Call Services 14
Door-to-Door Sales 15
Home Improvement 16
Home Financing 17
Selecting a Financial Institution 18
Credit 19
Consumer Privacy 22
Advance Fee Scams 23
Special Contracts 23
Travel Scams 25
Rent-To-Own 25
Product Safety and Recalls 26
Nutrition Labeling 27

Part II. Consumer Assistance Directory 29
Corporate Consumer Contacts 29
National Consumer Organizations 56
Car Manufacturers 59
Better Business Bureaus 63
Trade Association and Other Dispute Resolution Programs 67 State,
County and City Government Consumer Protection Offices 70 State
Agencies on Aging 83
State Banking Authorities 87
State Insurance Regulators 89
State Securities Administrators 91
State Utility Commissions 93
State Vocational and Rehabilitation Agencies 95
State Weights and Measures Offices 99
Military Commissary and Exchange Offices 102
Federal Information Center 104
Selected Federal Agencies 105
Federal TDD Directory 111

Index 116

Acknowledgments

The U.S. Office of Consumer Affairs wishes to express its
gratitude to the members of the focus group which provided many
ideas and suggestions for this edition of the Handbook.

Mr. John Barker
National Consumers League

Dr. Elizabeth Brabble
School of Business
Howard University

Mr. Emmitt Carlton
National Association of Attorneys General

Mr. Hoyte Decker
U.S. Department of Transportation

Ms. Anna Flores
National Association of Consumer Agency Administrators

Ms. Susan Giesberg
President, National Association of Consumer Agency Administrators
Mr. George Idelson
Consumer Affairs Letter

Ms. Denise Kelleher
Head of Reference
Arlington County (VA) Libraries

Ms. Nellie Miller
Montgomery County (MD) Office of Consumer Affairs

Ms. Jean Otte
Corporate Vice President
National Car Rental

Ms. Shirley Rooker
Call for Action

Ms. Diane VanLonkhuyzen
Food Safety and Inspection Service
U.S. Department of Agriculture

Ms. Dianne Ward
Council of Better Business Bureaus, Inc.

Ms. Gilda Warnick
D.C. Department of Consumer and Regulatory Affairs

Using this Handbook

The Consumer's Resource Handbook is divided into two sections.
Part I, "Buying Smart," lists tips on getting the most for your
money, handling your own complaint and writing a complaint
letter. Part I also provides tips on several consumer issues,
including protecting personal privacy and preventing credit card
fraud.

Part II of the Handbook, which is updated every two years by the
U.S. Office of Consumer Affairs (USOCA), lists offices you can
contact for help with consumer problems or questions. This section
includes "National Consumer Organizations," "Corporate Consumer
Contacts," "Car Manufacturers," "Better Business
Bureaus," "Trade Association and Other Dispute Resolution
Programs," "State, County and City Government Consumer Offices,"
"Selected Federal Agencies," and "Military Commissary and
Exchange Contacts." Check the "Table of Contents" for a complete
list of the offices in this part of the book.

There is a subject "index" at the back of the Handbook to help you
locate information about specific topics.

What's in the Handbook

National Consumer Organizations

There are a number of national organizations whose missions are
defined as consumer assistance, protection and/or advocacy.
Several of these organizations assist consumers directly; others
are interested in hearing from consumers about problems and
concerns; most, though not all, develop educational materials for
consumers. Addresses, telephone numbers and descriptions of more
than 30 of these organizations are listed in the National
Consumer Organizations" section of this Handbook, beginning on page
56.

Corporate Consumer Contacts

Many companies have consumer affairs or customer relations
departments to answer questions or help resolve consumer
complaints.

The addresses and telephone numbers of more than 550 companies are
listed in the "Corporate Consumer Contacts" section of this
Handbook, beginning on page 29. If you write to the company, you
may use the sample letter on page 8 as a guide for your own letter.

Car Manufacturers

Most foreign and American car manufacturers have national or
regional offices which handle consumer complaints not resolved by
your local car dealer. The list of "Car Manufacturers" begins on
page 59.

Better Business Bureaus

There are approximately 63 Better Business Bureaus (BBBs) in the
United States. These bureaus are non-profit organizations,
sponsored by private local businesses. They offer a variety of
services. These services include general information on products
or services, reliability reports, background information on local
businesses and organizations, and records of a company's
complaint-handling performance.

The Council of Better Business Bureaus, which is sponsored by
national companies, also offers consumer education programs and
reports on charitable organizations. The address for the council
and a list of BBBs operating in the United States begin on page 63.

Trade Association and Other Dispute Resolution Programs

There are nearly 40,000 trade and professional associations in the
United States, representing a variety of interests (for example,
banking, insurance, clothing manufacturing) and
professions (for example, accountants, lawyers, doctors,
therapists).

Some of these associations and their members have established
programs to help consumers with complaints not resolved at the
point of purchase.

Trade associations have various consumer functions, which are
described in National Trade & Professional Associations of the
United States. Check your local library for this book and
related sources of help.

A list of "Trade Association and Other Dispute Resolution
Programs" begins on page 67.

State, County and City Government Consumer Offices

State and local consumer protection offices can help you resolve
consumer complaints and provide you with consumer education
information. These agencies might mediate complaints, conduct
investigations, prosecute offenders of consumer laws, license and
regulate professions, promote strong consumer protection
legislation, provide educational materials and advocate in the
consumer interest. It is important to report complaints and
suspected frauds and misrepresentations to these governmental
agencies. Consumer complaints form the basis of most consumer
protection law enforcement actions.

If you want to file a complaint, call your local consumer
protection office to learn what you need to do. A list of state,
county and city government consumer protection offices begins on
page 70.

Many states also have special commissions and agencies to handle
consumer questions and complaints about aging, banks, insurance,
utilities, vocational and rehabilitation services, weights and
measures, and securities. These agencies are listed separately,
beginning on page 83.

In addition, a variety of other helpful community services might be
available in your area. For example, county and state
Cooperative Extension Services offer information about health,
safety, product comparisons, financial planning and nutritional
needs. Information about these and other state and local
services can be found at your library and in the telephone
directory in the city, municipal, county or state government
listings.

Selected Federal Agencies

Many Federal government agencies can help you with consumer
questions and complaints. A number of these agencies have
enforcement authority and/or complaint-handling responsibilities.
The Federal agencies listed, beginning on page 105, respond to
consumer complaints and inquiries.

A list of Federal agencies with Telecommunications Devices for the
Deaf (TDDs) begins on page 111.

Military Commissary and Exchange Contacts

Interested consumers will find a list of "Military Commissary and
Exchange Contacts" on page 102. The list includes the regional
offices and headquarters for all the Armed Forces Exchanges and
Commissaries.

Other Sources of Help

Libraries

The local library can be a good source of help. Many of the
publications mentioned in this Handbook can be found in public
libraries. Some university and other private libraries also allow
individuals to use their reference materials. Check your local
telephone directory for the location of nearby libraries. Media
Programs

Local newspapers and radio and television stations often have
"Action Line" or "Hot Line" services. These programs might be able
to help consumers with their problems. Sometimes these programs,
because of their influence in the community, are
successful in helping to resolve consumer complaints. Some action
lines select only the most severe problems or those that occur most
frequently. They might not be able to handle every complaint.

To find these services, check with your local newspapers, radio and
television stations, or local library.

Occupational and Professional Licensing Boards

Many state agencies license or register members of various
professions, including doctors, plumbers, electricians, car repair
shops, employment agencies, beauticians, and television and radio
repair shops. In some states, local consumer agencies license or
register some professions.

In addition to setting licensing standards, these boards also issue
rules and regulations; prepare and give examinations; issue, deny
or revoke licenses; bring disciplinary actions; and handle consumer
complaints.

Many boards have referral services or consumer education
materials to help you select a professional. If you have a
complaint and contact a licensing agency, the agency will contact
the professional on your behalf. If necessary, they might
conduct an investigation and take disciplinary action against the
professional. This action can include probation or license
suspension or revocation.

To find the local office of an occupational or professional
licensing board, check your local telephone directory under the
headings of "Licensing Boards" or "Professional Associations," or
look for the name of the individual agency. If you need help
locating the right office, contact your state or local consumer
office.

Legal Help

Please note that some of the sources of help listed in the
Consumer's Resource Handbook have a policy of declining
complaints from consumers who have sought prior legal counsel.
Small Claims Court

Small claims courts were established to resolve disputes
involving claims for small debts and accounts. While the maximum
amounts that can be claimed or awarded differ from state to state,
court procedures generally are simple, inexpensive, quick and
informal. Court fees are minimal, and you often get your filing
fee back if you win your case. Generally, you will not need a
lawyer. In fact, in some states, lawyers are not
permitted. If you live in a state that allows lawyers and the
party you are suing brings one, do not be intimidated. The court
is informal, and most judges make allowances for consumers who
appear without lawyers.

Remember, even though the court is informal, the ruling must be
followed, just like the ruling of any other court.

If the party bringing the suit wins the case, the party who lost
often will follow the court's decision without additional legal
action. Sometimes, however, losing parties will not obey the
decision. In these cases, the winning party can go back to court
and ask for the order to be "enforced." Depending on local laws,
the court might, for example, order property to be taken by law
enforcement officials and sold. The winning party will get the
money from the sale, up to the amount owed. Alternatively, if the
person who owes the money receives a salary, the court might order
the employer to garnish or deduct money from each paycheck and give
it to the winner of the lawsuit.

Check your local telephone book under the municipal, county or
state government headings for small claims court offices. When you
contact the court, ask the court clerk how to use the small claims
court. Many state and local consumer agencies have
consumer educational material to prepare you for small claims court
(see page 70). To better understand the process, sit in on a small
claims court session before taking your case to court. Many small
claims courts have created dispute resolution programs to help
citizens resolve their disputes. These dispute
resolution processes (e.g., mediation and conciliation) often
simplify the process. For example, in mediation, both people
involved in the small claims dispute meet, sometimes in the
evenings or on weekends, and with the assistance of a neutral,
third-party mediator, discuss the situation and create their own
agreement.

Research indicates that if both people show up for the mediation,
85%-90% of the time an agreement is reached. Just as
importantly, researchers learned in follow-up, six months after the
session, that 85% of the agreements were "substantially fulfilled."

Considering this, when you contact your small claims court, ask
first about their mediation or conciliation process.

For additional information about dispute resolution, contact the
American Bar Association, Standing Committee on Dispute
Resolution, 1800 M Street, N.W., Washington, D.C. 20036, (202)
331-2258.

Legal Aid

Legal Aid offices help individuals who cannot afford to hire
private lawyers. There are more than 1,000 of these offices around
the country staffed by lawyers, paralegals and law
students. All offer free legal services to those who qualify.
Funding is provided by a variety of sources, including Federal,
state and local governments and private donations. Many law
schools nationwide conduct clinics in which law students, as part
of their training, assist practicing lawyers with these cases.
Legal Aid offices generally offer legal assistance with such
problems as landlord-tenant relations, credit, utilities, family
issues (e.g., divorce and adoption), foreclosure and home equity
fraud, social security, welfare, unemployment and workmen's
compensation. Each Legal Aid office has its own board of
directors which determines the priorities of the office and the
kinds of cases handled. If the Legal Aid office in your area does
not handle your type of case, it should be able to refer you to
other local, state or national organizations that can provide
advice or help. Check the telephone directory to find the
address and telephone number of the Legal Aid office near you. If
you would like a directory of Legal Aid offices around the country,
contact the National Legal Aid and Defender Association, 1625 K
Street, N.W., 8th Floor, Washington, D.C. 20006, (202) 452-0620.

Legal Services Corporation

The Legal Services Corporation (LSC) was created by Congress in
1974. There are LSC offices in all 50 states, Puerto Rico, the
Virgin Islands, Guam and Micronesia. To find the LSC office
nearest you, check the telephone directory, call the Federal
Information Center (FIC) listed on page 104, or call the LSC Public
Affairs Office at (202) 863-4089. If you wish to buy a full
directory of all LSC programs, write or call:

Public Affairs
Legal Services Corporation
400 Virginia Avenue, S.W.
Washington, D.C. 20024-2751
(202) 863-4089

Finding a Lawyer

If you need help finding a lawyer, check with the Lawyer Referral
Service of your state, city or county bar association listed in
local telephone directories.

Complaints about a lawyer should be referred to your state, county
or city bar association.

Other Consumer Information

Consumer Credit Counseling Services

Counseling services provide assistance to individuals having
difficulty budgeting their money and/or meeting necessary monthly
expenses. Many organizations, including credit unions, family
service centers and religious organizations, offer some type of
free or low-cost credit counseling.

The Consumer Credit Counseling Service (CCCS) is one non-profit
organization that provides money management techniques, debt
payment plans and educational programs. Counselors take into
consideration the needs of the client, as well as the needs of the
creditor, when working out a debt repayment plan. You can find the
CCCS office nearest you by contacting the National Foundation of
Consumer Credit, Inc., 8611 Second Avenue, Suite 100, Silver
Spring, MD 20910-3372, 1 (800) 388-CCCS (toll free). Consumer
Groups

Private and voluntary consumer organizations usually are created to
advocate specific consumer interests. In some communities, they
will help individual consumers with complaints. However, they have
no enforcement authority. To find out if such a group is in your
community, contact your state or local government consumer
protection office. A list of the state and local
offices begins on page 70.

Consumer Information Catalog

The Consumer Information Catalog lists approximately 200 free or
low-cost Federal booklets with helpful information for consumers.
Topics include careers and education, cars, child care, the
environment, Federal benefits, financial planning, food and
nutrition, health, housing, small business and more. This free
Catalog is published quarterly by the Consumer Information Center
of the U.S. General Services Administration. Single copies of the
Catalog only may be ordered by sending your name and address to
Catalog, Consumer Information Center, Pueblo, CO 81009 or by
calling (719) 948-4000. Non-profit groups that can distribute 25
copies or more each quarter automatically can receive copies by
writing for a bulk mail card.

Part I. Buying Smart

Protecting Yourself

Consumers are faced with a marketplace full of decisions. Ask the
right questions before and after you buy and avoid consumer fraud
and rip-offs.

Before you buy

o Take advantage of sales, but compare prices. Do not assume an
item is a bargain just because it is advertised as one.

o Don't rush into a large purchase because the "price is only good
today."

o Check to see if the company is licensed or registered at the
local or state level.

o Contact your consumer protection office or Better Business
Bureau (BBB) for any complaint recorded against the company.
Request any consumer information they might have on the type of
purchase.

o Be aware of such extra charges as delivery fees, installation
charges, service costs, and postage and handling fees. Add them
into the total cost.

o Ask about the seller's refund or exchange policy.

o Read the warranty. Note what is covered and what is not. Find
out what you must do and what the manufacturer or seller must do if
there is a problem.

o Don't sign a contract without reading it. Don't sign a
contract if there are any blank spaces in it or if you don't
understand it. In some states, it is possible to sign away your
home to someone else.

o Before buying a product or service, contact your consumer
protection office to see if there are automatic cancellation
periods for the purchase you are making. In some states, there are
cancellation periods for dating clubs, health clubs, and timeshare
and campground memberships. Federal law gives you cancellation
rights for certain door-to-door sales.

o Walk out or hang up on high-pressure sales tactics. Don't be
forced or pressured into buying something.

o Only do business over the telephone with companies you know.
o Be suspicious of P.O. Box addresses. They might be mail drops.
If you have a complaint, you might have trouble locating the
company.

o Do not respond to any prize or gift offer that requires you to
pay even a small amount of money.

o Use unit pricing in supermarkets to compare what items cost.
Unit pricing allows you to compare the price ounce-for-ounce,
pound-for-pound, etc. As an example, bigger packages are not
always cheaper than smaller ones.

o Use coupons carefully. Do not assume they are the best deal
until you've compared them to the prices of competitive products.

o Make sure all documents you sign are in a language you
understand.

o Don't rely on a salesperson's promises. Get everything in
writing.

Remember:

1. First contact the seller if you have a complaint.

2. If that does not resolve your problem, contact the company
headquarters.

3. If your problem is still unresolved, refer to the subject index
for the organizations, or local, state and Federal offices that
provide help in cases like yours.

4. Taking legal action should be the last resort. However, if you
decide to exercise this right, be aware that you might have to act
within a certain time period. Check with your lawyer about any
statutes that apply to your case.

After you buy

o Read and follow product and service instructions.

o Be aware that how you use and take care of a product might
affect your warranty rights.

o Keep all sales receipts, warranties, service contracts and
instructions.

o If you have a problem, contact the company as soon as
possible. Trying to fix the product yourself might cancel your
right to service under the warranty.

o Keep a written record of your contact with the company. o If
you have a problem, check with your consumer protection office to
find out about the warranty rights in your state. o If you paid
for your purchase with a credit card, you have important rights
that might help you dispute charges. (See the "Consumer Tips"
section, page 20.)

o Check your contract for any statement about your cancellation
rights. Contact your consumer protection office to see if a
cancellation period applies.

o If you take the product in for repair, be sure the technician
understands and writes down the problem you have described. Red
Flags of Fraud

Consumer protection offices urge consumers to be aware of the red
flags of fraud. Walk away from bogus offers. Toss out the mail or
hang up when you hear:

o "Sign now or the price will increase;"

o "You have been specially selected...;"

o "You have won...;"

o "All we need is your credit card (or bank account) number -for
identification only;"

o "All you pay is for postage, handling, taxes...;"

o "Make money in your spare time - guaranteed income...;" o "We
really need you to buy magazines (a water purifier, a vacation
package, office products) from us because we can earn 15 extra
credits...;"

o "I just happen to have some leftover paving material from a job
down the street...;"

o "Be your own boss! Never work for anyone else again. Just send
in $50 for your supplies and...;"

o "A new car! A trip to Hawaii! $2,500 in cash! Yours,
absolutely free! Take a look at our...;"

o "Your special claim number entitles you to join our
sweepstakes...;" or

o "We just happen to be in your area and have toner for your copy
machine at a reduced price."

Remember, the smart consumer always looks at the total price before
deciding and checks out the company and product before buying.

Stay away from telemarketers who want to:

o send a courier service for your money;

o have you send money by wire;

o automatically withdraw money from your checking account; o
offer you a free prize, but charge handling and shipping fees;

o ask for your credit card number, checking or savings account
number, social security number or other personal information; and

o get payment in advance especially for employment referrals,
credit repair, or providing a loan or credit card.

Stay away from lotteries, pyramid schemes and multi-level sales
schemes. They are all good ways to separate you from your money.

Complaining Effectively

Save all purchase-related paperwork in a file. Include copies of
sales receipts, repair orders, warranties, canceled checks,
contracts, and any letters to or from the company. When you have
a problem:

o Contact the business that sold you the item or performed the
service. Calmly and accurately describe the problem and what
action you would like taken.

o Keep a record of your efforts to resolve the problem. When you
write to the company, describe the problem, what you have done so
far to try to resolve it and what solution you want. For example,
do you want your money back, the product repaired or the product
exchanged?

Allow time for the person you contacted to resolve your problem.
Keep notes of the name of the person you spoke with, the date and
what was done. Save copies of all letters to and from the
company. Don't give up if you are not satisfied.

o Contact the company headquarters if you have not resolved your
problem at the local level. Many companies have a toll-free 800
number. Look for it on package labeling, in a directory of 800
telephone numbers (available at your local library), by calling 1
(800) 555-1212 (toll free) or by referring to the many corporate
consumer contacts, beginning on page 29. Address your letter to
the consumer office or the company's president.

Writing a Complaint Letter

Where to send it

o Check the product label or warranty for the name and address of
the manufacturer.

o If you need additional help locating company information, check
the reference section of your local library for the
following books: Standard & Poor's Register of Corporations,
Directors and Executives; Standard Directory of Advertisers; Trade
Names Dictionary; and Dun & Bradstreet Directory.

o If you have the brand, but cannot find the name of the
manufacturer, the Thomas Register of American Manufacturers lists
the manufacturers of thousands of products. Check your local
library.

o Each state has an agency (possibly the corporation commission or
secretary of state's office) that provides addresses for companies
incorporated in that state.

o Remember, do business with a company you will be able to find
later. It might be difficult to find companies in other states or
those listing post office boxes as addresses. Even if you have an
address, it might be only a mail drop, so be sure you know where
the company you are doing business with is located physically.

What to say

o Include in the letter your name, address, home or work
telephone numbers, and account number, if any.

o Make your letter brief and to the point. Include the date and
place you made the purchase, who performed the service, such
information about the product as the serial or model number or
warranty terms, what went wrong, with whom you have tried to
resolve the problem and what you want done to correct the
problem.

o Use the sample consumer complaint letter on the following page
as a guide.

o Include copies, not originals, of all documents.

o Be reasonable, not angry or threatening, in your letter. Type
your letter, if possible, or make sure your handwriting is neat and
easy to read.

o Keep a copy of all letters to and from the company.

o You might want to send your complaint letter with a return
receipt requested. This will cost more, but will give you proof
that the letter was received and tell you who signed for it. o
If you feel you have given the company enough time to resolve the
problem, send a copy of your letter to, or file a consumer
complaint with, your local or state consumer protection agency,
such specific state agencies as banking, insurance and utilities,
or local Better Business Bureau. Their addresses can be found
starting on pages 70, 87 and 63, respectively. Include
information about what you have done so far to try to resolve your
complaint. If you think a law has been broken, contact your local
or state consumer protection agency right away.

Sample Complaint Letter

(Your Address)
(Your City, State, ZIP Code)
(Date)

(Name of Contact Person, if available)
(Title, if available)
(Company Name)
(Consumer Complaint Division, if you have no contact person)
(Street Address)
(City, State, ZIP Code)

Dear (Contact Person):

Re: (account number, if applicable)

On (date), I (bought, leased, rented, or had repaired) a (name
of the product with serial or model number or service performed) at
(location, date and other important details of the
transaction).

Unfortunately, your product (or service) has not performed well (or
the service was inadequate) because (state the problem). I am
disappointed because (explain the problem: for example, the product
does not work properly, the service was not performed correctly, I
was billed the wrong amount, something was not disclosed clearly or
was misrepresented, etc.).

To resolve the problem, I would appreciate your (state the
specific action you want - money back, charge card credit,
repair, exchange, etc.). Enclosed are copies (do not send
originals) of my records (include receipts, guarantees,
warranties, canceled checks, contracts, model and serial numbers,
and any other documents).

I look forward to your reply and a resolution to my problem, and
will wait until (set a time limit) before seeking help from a
consumer protection agency or the Better Business Bureau. Please
contact me at the above address or by phone at (home and/or office
numbers with area codes).

Sincerely,
(your name)

Enclosure(s)
cc: (reference to whom you are sending a copy of this letter, if
anyone)

Consumer Tips

This section contains a number of suggestions to help you become a
smarter consumer. It includes tips on how to buy a car, avoid
fraud and protect your privacy.

Remember to check with your local consumer protection office and
Better Business Bureau for other consumer information on a
variety of topics. Their addresses and phone numbers are listed on
pages 70 and 63, respectively.

Car Repair, Purchase, Renting and Other Concerns

Car Repair

o Choose a reliable repair shop recommended to you by family or
friends or an independent consumer rating organization. Check out
the repair shop's complaint record with your state or local
consumer protection office or Better Business Bureau.

o When you take the car to the shop, describe the symptoms. Don't
diagnose the problem.

o Get more than one estimate. Get them in writing.

o Make it clear that work cannot begin until you have authorized
it. Don't authorize work without a written estimate, or if the
problem can't be diagnosed on the spot, insist that the shop
contact you for your authorization once the trouble has been found.

o Don't sign a blank repair order. Make sure the repair order
reflects what you want done before you sign it.

o Is the repair covered under warranty? Follow the warranty
instructions.

o Ask the shop to keep the old parts for you.

o Get all warranties in writing.

o Some car manufacturers might be willing to repair certain
problems without charge even though the warranty has expired.
Contact the manufacturer's zone representative or the dealer's
service department for assistance.

o Keep copies of all paperwork.

Some states, cities and counties have special laws that deal with
auto repairs. For information on the laws in your state, contact
your state or local consumer protection office.

Buying A Used Car

o Check newspaper ads and used car guides at a local library so
you know what's a fair price for the car you want. Remember,
prices are negotiable. You also can look up repair recalls for car
models you might be considering.

o Call the Auto Safety Hotline at 1 (800) 424-9393 to get recall
information on a car. Authorized dealers of that make of vehicle
must do recall work for free no matter how old the car is. o
Shop during daylight hours so that you can thoroughly inspect the
car and take a test drive. Don't forget to check all the lights,
air conditioner, heater and other parts of the electrical system.

o Do not agree to buy a car unless you've had it inspected by an
independent mechanic of your choice.

o Ask questions about the previous ownership and mechanical
history of the car. Contact the former owner to find out if the
car was in an accident or had any other problems.

o Check with your local department of motor vehicles to find out
what you need in order to register a car.

o Ask the previous owner or the manufacturer for a copy of the
original manufacturer's warranty. It still might be in effect and
transferable to you.

o Don't sign anything that you don't understand. Read all
documents carefully. Negotiate the changes you want and get them
written into the contract.

o For information on recalls and safety issues, see page 10 under
new car sales.

Buying from a Private Individual

Generally, private sellers have less responsibility than dealers
for defects or other problems.

o Check with your state's motor vehicle department on what you
will need to register a vehicle.

o Make sure the seller isn't a dealer posing as an individual.
That might mean the dealer is trying to evade the law and might be
an indicator of problems with the car. Look at the title and
registration. Make sure the seller is the registered owner of the
vehicle.

o Ask the seller lots of detailed questions about the car. o
Have the car inspected by your mechanic before you agree to buy it.

Buying from a Dealer

Check the complaint records of car dealers with your state or local
consumer protection agency or Better Business Bureau. o Read the
"Buyers Guide" sticker required to be displayed in the window of
the car. It gives information on warranties, if any are offered,
and provides other information.

o In most states, used cars may be sold "as is." If the "as is"
box is checked off on the "Buyers Guide," you have no warranty. o
If the "warranty" box is checked off on the "Buyers Guide," ask for
a copy of the warranty and review it before you agree to buy the
car.

o Have the car inspected by your mechanic before you agree to buy
it.

o Some states have laws giving extra protection to used car
buyers. Contact your state or local consumer protection office to
find out what rights you might have.

o To order a free publication on buying a used car, contact the
Federal Trade Commission, Public Reference Section, 6th and
Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580, (202)
326-2222.

Buying A New Car

o Evaluate your needs and financial situation. Read consumer
magazines and test drive several models before you make a final
choice.

o Find out the dealer's invoice price for the car and options.
This is what the manufacturer charged the dealer for the car. You
can order this information for a small fee from consumer
publications you can find at your local library.

o Find out if the manufacturer is offering rebates that will lower
the cost.

o Get price quotes from several dealers. Find out if the
amounts quoted are the prices before or after the rebates are
deducted.

o Keep your trade-in negotiations separate from the main deal.
o Compare financing from different sources, for example, banks,
credit unions and other dealers before you sign the contract. o
Read and understand every document you are asked to sign. Do not
sign anything until you have made a final decision to buy. o
Think twice about adding expensive extras, you probably don't need,
to your purchase, for example, credit insurance, service contracts
or rustproofing.

o Inspect and test drive the vehicle you plan to buy, but do not
take possession of the car until the whole deal,including
financing, is finalized.

o Don't buy on impulse or because the salesperson is pressuring
you to make a decision.

o The National Highway Traffic Safety Administration's Auto Safety
Hotline at 1 (800) 424-9393 (toll free) distributes recall and
safety information on used and new cars, trucks, motorcycles, motor
homes, child seats and other motor vehicle equipment; vehicle crash
test information; tire quality grading reports; child seat
registration forms; and other safety literature. You should report
all vehicle and child seat defect information to the Hotline (see
page 108).

o The Center for Auto Safety (see page 56) monitors auto
defects. To see if there is a pattern of repeated complaints on a
certain vehicle model, write the Center for Auto Safety, 2001 S
Street, N.W., Suite 410, Washington, DC 20009 and include the
vehicle make, model and year, and a self-addressed stamped
envelope.

Credit and Sublease Brokers

A new and rapidly growing area of consumer fraud involves con
artists who prey on people who have bad credit and who are having
problems getting loans to buy cars. There are two main schemes:
o The "credit broker" promises to get a loan for you in exchange
for a high fee. In many cases, the "broker" takes the fee and
disappears, or simply refers you to high-interest loan companies.

o The "sublease" broker charges a fee to arrange for you to
"sublease" or "take over" someone else's car lease or loan. Such
deals usually violate the original loan or lease agreement. Your
car can be repossessed even if you've made all of your payments.
You also might have trouble insuring your car.

To protect yourself:

o check with your state or local consumer protection agency to
find out if the broker is required to be licensed;

o do not do business with a company that does not appear to be
complying with state law; and

o do not pay for services in advance.

To order a free publication on how to buy a new or used car,
contact the Federal Trade Commission, Public Reference Section, 6th
and Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580,
(202) 326-2222.

Car Leasing

o Shop around for the best leasing deal. Read lease promotions
carefully. The attractive low monthly payment might be available
only if you make a large down payment (capitalized cost
reduction) or a balloon payment at the end of the lease.

o Beware of open-end leases. They require the consumer to pay the
difference if the vehicle is worth less at the end of the lease
than was estimated originally.

o The Consumer Leasing Act requires leasing companies to give you
important information in writing before you sign a contract. Read
the documents given to you by the leasing company and make sure you
understand them before you sign anything. In
particular, look for:

-up-front costs, for example, security deposits, down payments,
advanced payments and taxes;

-the terms of the payment plan;

-termination costs, for example, excess mileage penalties,
excessive wear and tear charges, and disposition charges; and -
penalties for early termination or default.

When you have paid off a car loan, you own the car. When you have
paid off the lease, you own nothing.

To order a free publication on car leasing, contact the Federal
Trade Commission, Public Reference Section, 6th and Pennsylvania
Avenue, N.W., Room 130, Washington, DC 20580, (202) 326-2222.
Lemon Laws

Almost every state has a new car "lemon law" that allows the owner
a refund or replacement when a new vehicle has a
substantial problem that is not fixed within a reasonable number of
attempts. Many specify a refund or replacement when a
substantial problem is not fixed in four repair attempts or the car
has been out of service for 30 days within the first 12,000
miles/12 months. If you believe that your car is a lemon: o
contact your state or local consumer protection office for
information on the laws in your state and the steps you must take
to resolve the situation;

o give the dealer a list of symptoms every time you bring it in
for repairs; keep copies for your records;

o get copies of the repair orders showing the reported problems,
the repairs performed and the dates that the car was in the shop;
and

o contact the manufacturer, as well as the dealer, to report the
problem. Some state laws require that you do so to give the
manufacturer a chance to fix the problem. Your owner's manual will
list an address for the manufacturer.

If the problem isn't resolved, you might have the option of
participating in an arbitration program offered by the
manufacturer or your state. Contact your state or local consumer
protection office for information.

Lemon Law Summary is available upon request by sending a self-
addressed, stamped (52 cents) envelope to the Center for Auto
Safety, 2001 S Street, N.W., Suite 410, Washington, DC 20009.
Vehicle Repossessions

When you borrow money to buy a car, you should know that:

o The lender can repossess if you miss a payment or for any
default (a violation of the contract).

o The lender can repossess without advance notice.

o After repossession, the lender might be able to accelerate,
meaning the lender can require the borrower to pay off the entire
balance of the loan in order for the borrower to get the vehicle
back.

o The lender can sell the vehicle at auction.

o The lender might be able to sue the borrower for the
deficiency if it sells the car for less than the borrower owes.
This is true even in voluntary repossessions.

o The lender cannot commit a "breach of the peace," for example,
breaking into a home or physically threatening someone, in the
course of a repossession.

If you know you're going to be late with a payment, talk to the
lender to try to work things out. If the lender agrees to a delay
or to modify the contract, be sure you get the agreement in
writing.

Some states have laws which give consumers additional rights.
Contact your state or local consumer protection office for more
information.

To order a free publication on vehicle repossessions, contact the
Federal Trade Commission, Public Reference Section, 6th and
Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580, (202)
326-2222.

Renting A Car

Federal law does not cover short-term car and truck rentals.
However, there are state laws that do. You should contact your
state or local consumer protection office for more information on
laws in your area.

o Shop around for the best rates.

o Compare all fees, in addition to the daily/weekly rate, before
renting.

o Most car rental contracts make the consumer liable for all
damage to the vehicle, no matter who caused it. Before buying a
rental company's collision or loss damage waiver, check with your
own car insurance company and your credit card company to see if
they cover car rentals and to what extent. It pays to do your
homework because these policies can add $3 to $15 per day to your
rental charges! Rental companies also might sell loss of use and
liability insurance. Check with your insurance agent in advance,
so you do not duplicate coverage you already have.

o If you pay by credit card, some rental companies will place a
hold or freeze on your account during the rental period. Others
might start to charge your account before the rental period is
over. Find out the company's policy in advance.

o Carefully inspect the vehicle and its tires before renting and
write down all the dents and scratches you see.

o Check refueling policies. You can refill at a local gas
station, you can let the car rental company refuel the car at its
price, which is usually higher, or you can pay in advance for a
refill which will cost you needlessly if there is any unused gas
upon returning the vehicle.

o Contact your state or local consumer protection agency for
information on state law or to report problems with your car
rental.

o To order a free publication on car rental, contact the Federal
Trade Commission, Public Reference Section, 6th and Pennsylvania
Avenue, N.W., Room 130, Washington, DC 20580, (202) 326-2222.
Mail Order

Federal mail order rules require companies that take consumers'
orders by mail to:

o ship the merchandise within 30 days of receiving a completed
order or within a different timeframe if it is stated in their ads;

o notify consumers if shipment can't be made on time and give them
the choice of waiting longer or receiving refunds; and o cancel
their orders and return their money (or give them credits on their
charge accounts) if the revised shipping date can't be met, unless
the consumers agree to another delay. There also might be laws
regarding mail order in your state. Contact your state or local
consumer protection agency.

o Keep a record of the name, address and phone number of the
company, goods you ordered, date of your order, amount you paid and
method of payment.

o Keep a record of any delivery period that was promised. o
If you are told that the shipment will be delayed, write the date
of that notice in your records and the new shipping date if you've
agreed to wait longer.

o When you cancel an order that wasn't shipped on time, you have
the right to get a refund within seven days or within one billing
cycle for charged sales.

o When you use your credit card for mail order purchases and you
don't receive the goods or services, or they were defective or
misrepresented, use the credit card protection rights described in
the section on Credit Cards, page 18.

o To limit some of the mail you do not want, you can sign up with
the free Mail Preference Service operated by the Direct Marketing
Association, a private trade group. It will instruct its mail
marketing members to take you off their lists. To join, write to
the Mail Preference Service, P.O. Box 9008, Farmingdale, New York
11735.

To report violations of the Federal mail order rule, contact the
Federal Trade Commission. For information on your state laws,
contact your state or local consumer protection agency. To report
a problem with mail order, contact the U.S. Postal
Inspection Service or the Postal Crime Hotline at 1 (800)
654-8896.

Mail Fraud

o Read the offer carefully. Get the advice of another person
whose opinion you trust.

o Deal only with companies or charities whose reputation and
integrity are known.

o Never give your credit card number or personal, financial or
employment information unless you know with whom you are dealing.

o Never send money for any "free" merchandise or services. o Be
careful of making impulse purchases.

o Keep a record of the order, notes of the conversation and copies
of the advertisement, canceled check, receipt, letters and
envelopes.

o Take the time to shop locally and compare products, services and
prices to those in local stores.

o Check out the company with the U.S. Postal Inspection Service,
your state or local consumer protection agency, or the Better
Business Bureau. Mail fraud is a federal crime.

o Using your credit card or a money order might give you some
recourse if you have a problem, despite your carefulness.

Be suspicious of "free gifts" that require a "tax payment" or
"registration fee;" sweepstakes requiring an entry fee or
purchase; employment or work-at-home opportunities requiring a fee;
offers requiring your credit card number or bank account number;
loans that require you to pay a fee in advance; mailings that look
like they are from official government agencies, when they are not;
and prize notices requiring you to call a 900 number.

Telemarketing

While many legitimate businesses use the telephone to make their
sales, it's easy for fraudulent companies to abuse the phone.
Beware of the con artists who promise anything and deliver
nothing, or at least not what customers thought they were
getting.

Tips for Smart Telephone Shopping

o Always keep a record of the name, address and phone number of
the company, goods you ordered, date of your purchase, amount you
paid (including shipping and handling) and method of payment. o
Keep a record of any delivery period that was promised. o If you
are told that the shipment will be delayed, write the date of that
notice in your records and the new shipping date, if you've agreed
to wait longer.

o Don't give your credit card number, checking account number or
other personal information to a telemarketer unless you are
familiar with the company or organization, and the information is
necessary in order to make your purchase.

Telephone Order Rights

o Some states have telemarketing laws that require written
contracts, automatic cancellation periods or registration of
telemarketing companies. Contact your state or local consumer
protection agency. Federal telephone order rules require
companies that take consumers' orders by phone, computer or fax to:

o ship the merchandise within 30 days of receiving a completed
order or within a different timeframe if it is stated in their ads;

o notify consumers if shipment can't be made on time and give them
the choice of waiting longer or receiving refunds; and o cancel
their orders and return their money (or give them credits on their
charge accounts) if the revised shipping date can't be met, unless
the consumers agree to another delay. Use Caution and Common Sense

o Don't be pressured into acting immediately or without the full
information you need.

o Shop around and compare costs and services.

o Report all fraudulent activity to your consumer agency. Check
the company out with your consumer protection agency or the Better
Business Bureau.

o If the solicitation came by mail, call the Postal Crime
Hotline at 1 (800) 654-8896 (toll free) for more advice on not
becoming a victim.

o Call the National Fraud Information Center, administered by the
National Consumers League, at 1 (800) 876-7060 (toll free) for
information about telemarketing fraud.

Blocking Telemarketing Calls

You have the right under federal law:

o to tell a company not to call you by phone or not to contact you
in writing; the company must keep a list of these consumers and not
contact them; keep a record for your file;

o not to get calls before 8 a.m. or after 9 p.m.;

o not to receive unsolicited ads by fax; and

o to be disconnected from a pre-recorded machine-delivered message
within five seconds of hanging up.

Some states do not allow telemarketers to call people who do not
want to receive calls. Contact your state or local consumer
protection agency to check your state's rights.

To reduce telephone calls you do not want, you can sign up with the
free Telephone Preference Service operated by the Direct Marketing
Association, a private trade group. To join, write to the
Telephone Preference Service, P.O. Box 9014, Farmingdale, NY 11735.

To report violations of the telephone order rule, contact the
Federal Trade Commission. If you made the telephone transaction in
response to a postcard or other mailing, contact the U.S. Postal
Inspection Service or the Postal Crime Hotline at 1 (800) 654-8896
(toll free). For information on the laws in your state, contact
your state or local consumer protection agency.

Calls That Cost: 900 Numbers and Other Pay-Per-Call Services
Unlike 800 numbers which are free, you pay a fee when you call a
900-type number. The company or organization you're calling sets
the price, not the telephone company. Most states do not
regulate the cost of these calls. Charges can vary from less than
a dollar to more than $50. Federal law requires that: o consumers
be told the cost of calling the number and given a description of
the product and service. This must appear in advertisements and,
for calls costing more than two dollars, in the introductory
message or preamble at the beginning of the call;

o the cost of calling must be disclosed by flat rate, by the
minute with any minimum or maximum charge that can be determined,
or by range of rates for calls with different options; all other
fees charged for services and the cost of any other service to
which a caller might be transferred must be disclosed;

o consumers must be given time to hang up after the introductory
message without being charged; there must be a signal or tone to
let them know when the preamble ends;

o no charges can be made for calling 800 numbers unless the
consumer agrees in advance to be charged;

o any pay-per-call services offering sweepstakes, prizes or awards
must disclose the odds of winning or the factors for determining
the odds;

o ads directed to children under age 12 are not allowed unless
they are for legitimate educational services;

o ads directed primarily to people under the age of 18 must state
that parents' consent is needed to call the number; and o ads for
information about Federal programs offered by private companies
must state clearly that they are not endorsed, approved or
authorized by government agencies.

Protect yourself from fraud by avoiding:

o ads that don't describe clearly the goods or services or the
cost of the calls;

o offers of "free" gifts or prizes just for calling;

o promises of jobs, loans, credit cards for people with poor
credit, "credit repair" or other services aimed at consumers who
are in financial hardship;

o contests to win money in which little or no skill is required;

o services targeted to children under 12 which don't appear to
serve any legitimate educational purpose; and

o offers of cheap travel or any other deals that seem to be "too
good to be true."

Hang up if you're being switched from an 800 number to a 900 number
without your prior consent.

What You Need to Know about 800 Numbers

Generally, you cannot be charged for 800 numbers. However, there
are two exceptions. Charges for an 800 number can be made only if:

o you have a "pre-subscription arrangement" with the company (for
example, with an information service). This means you already have
an agreement to accept charges before you called the 800 number; or

o you agree to a credit card charge.

Your Rights and Recourse

o If you question 900-type number charges which appear on your
phone bill, you can dispute the bill. Your local and long
distance telephone service cannot be disconnected for disputed pay-
per-call charges.

o In most cases, the charge for a pay-per-call service is
collected by the local telephone company on behalf of the service
provider. Follow the instructions on your bill immediately to
dispute the charges. Keep a record of whom you talked to, and the
date and copies of any letters you send. Pay the undisputed
portion of your phone bill.

o Even if the telephone company removes the charges, the debt
might be turned over to a collection agency by the service
provider. Send the collection agency a letter explaining why you
dispute the debt. (See the section on Credit, page 19.)

o To avoid problems with 900-type numbers, you can request
"blocking" from your local phone company. Blocking prevents 900
numbers from being dialed from your phone.

o If you suspect a violation of pay-per-call rules, contact your
state or local consumer protection agency and the Federal Trade
Commission. If the ad for the number came by mail, write to the
U.S. Postal Inspection Service or call the Postal Crime Hotline at
1 (800) 654-8896 (toll free). If you are not satisfied with the
way the phone company handled your complaint, contact the Federal
Communications Commission. (See page 105 for information on how to
contact Federal government agencies.)

Door-to-Door Sales

o Ask to see the salesperson's personal identification and license
or registration if that is required where you live. Make note of
his/her name, the name and address of the company, and whether the
salesperson carries proper identification.

o Ask for sales literature and then call local stores that might
sell the same merchandise to compare prices. Some door-to-door
products might be overpriced.

o Don't be pressured into buying something. Watch for the warning
signs: an offer of a "free gift" if you buy a product, an offer
that is only good for that day, or you're told that a neighbor just
made a purchase.

o If you feel threatened or intimidated, ask the person to leave.
Don't leave the person unattended in any room of your home. If you
are suspicious, report the incident to the police immediately.

Cancellation Rights

o The "Door-to-Door Sales Rule" (or "Cooling Off Rule") gives you
the right to cancel certain purchases costing $25 or more. Notify
the company in writing by midnight of the third business day
following the sale. Saturdays are considered business days, but
Sundays and holidays are not.

o The seller must tell you about your cancellation rights and give
you two dated copies of a cancellation form showing the seller's
name and address and explaining your right to cancel. o These
Federal cancellation rights apply to purchases made in locations
outside the seller's normal place of business, in other words, at
a house party, a temporarily rented room or in your home.

o States might have additional cancellation laws that protect
consumers. Check with your state or local consumer protection
agency for your rights.

o To cancel a contract, sign and date one copy of the
cancellation form. Mail it within the three-day limit, making sure
it's post-marked before midnight of the third business day.
Sending it by certified mail will show proof that it was mailed.
o If you were not given the cancellation form at the time of sale,
your right to cancel continues until three days after the seller
finally gives it to you. You can write your own letter cancelling
the sale and send it return receipt requested.

o Once you cancel, you have a right to a refund within 10 days.
The seller must let you know when the product will be picked up and
must return any paperwork and trade-ins within that time. o
Within 20 days, the seller must pick up the item or reimburse you
for any shipping expenses if you send it back yourself. If you do
not return it, you still are responsible under the
contract.

o Extend your rights! If you paid by credit card, canceled the
contract within three days, have not yet paid the credit card bill
and still have a problem getting a refund, dispute the charges with
your credit card company under the Fair Credit Billing Act, (See
the section on Credit, page 19.)

Home Improvement

o Plan ahead. Know what you want or need to have done before
contacting a contractor.

o Get detailed estimates from reputable contractors. Contact your
local or state consumer agency and Better Business Bureau for
information on contractors' licensing or registration
requirements, complaint records and for brochures containing
advice.

o Contact your local building inspection department to check for
permit and inspection requirements.

o Call your insurance company to find out if you are covered for
any injury or damage that might occur and be sure your contractor
has the required insurance for his/her workers and
subcontractors.

o Insist on a complete written contract. Know exactly what work
will be done, the quality of materials that will be used,
timetables, the names of any subcontractors, the total price of the
job and the schedule of payments.

o You have cancellation rights (usually three business days) in
many home improvement contracts. Before you sign a contract, check
with your local consumer agency to find out if you have
cancellation rights and how they apply.

o Understand your payment options. You can get your own loan or
the contractor might arrange financing. Be sure you have a
reasonable payment schedule at a fair interest rate.

o Some state laws specify payment schedules, for example, only
allowing a certain percentage of the total cost to be made as a
down payment. Contact your state or local consumer agency to find
out what the law is in your area.

o Lien rights, which might give the contractor or subcontractors
the ability to "attach" your home for unpaid bills, vary from state
to state. Ask your local consumer agency to explain the situation
where you live.

o You need to be especially cautious if the contractor:

- comes door-to-door or seeks you out;

- just happens to have material left over from a recent job; -
tells you your job will be a "demonstration;"

- offers you discounts for finding him/her other customers; -
quotes a price that's too cheap;

- pressures you for an immediate decision;

- has workers or suppliers who tell you they have trouble getting
paid;

- can be reached only by leaving messages with an answering
service; or

- drives an unmarked van or has out-of-state plates on his/her
vehicle.

Home Financing

o Check the real estate or business sections in the newspaper for
information on current interest rates. Call several lenders for
rates and terms based on the type of mortgage you want. o When
buying a newly constructed home, compare the interest rate and
terms offered through the builder's sales office with those offered
by other lending institutions.

o When interest rates go down, you might save money by
refinancing, but you probably should not refinance unless the new
interest rate will be at least two percentage points below the rate
you're paying currently.

o For an adjustable rate mortgage, or "ARM," find out the "cap" or
the maximum interest rate that can be charged during the life of
the loan. Ask how often the rate might change and what
determines the rate change.

o Get a complete list of "closing" or "settlement" costs and find
out which costs will be refunded if your loan is not
approved.

o Be wary of financing that is based on "negative amortization."
While the payments might be lower than in other types of loan
agreements, they're not enough to cover the monthly interest
charges. The portion of interest that is left unpaid is added to
the principal, which means that each month, the borrower pays
interest on a higher amount than before. With negative
amortization, the debt actually keeps increasing rather than
decreasing. You could end up owing a lot of money at the end of
the loan or losing your home.

Home Equity Credit Lines

o Although a home equity credit line might allow you to take tax
deductions you could not take with other types of loans, your home
will be at risk if you cannot make the monthly payments. o Some
questions to ask when comparing home equity loan offers: - How
large a credit line can be extended?

- How long is the term of the loan?

- What is the minimum monthly payment? Is there a maximum? -What
is the annual percentage rate?

- If the interest rate "floats," or is adjustable, how much can it
increase at one time? Is there a maximum rate?

- Are there any annual fees or transaction fees?

Reverse Mortgages

o If you own your home, a reverse mortgage loan will pay you in
monthly advances or through a line of credit. It lets you
convert your equity into cash which you can use for any purpose,
while retaining your ownership in your home. Before you sign, be
sure you understand all the terms and conditions.

o Interest rates on this type of loan might be higher and are
charged on a compound basis. Application fees, points and
closing costs also might be higher than other types of loans.
Interest rates are not deductible on your income taxes until you
repay the loan in full. There will be less equity for you and your
heirs in the future.

For more information or to file a complaint, contact:

Department of Housing and Urban Development
Office of Single Family Housing
451 Seventh Street, S.W., Room 9282
Washington, D.C. 20410
(202) 708-3175

State and Local Consumer Protection Offices
(See the list beginning on page 70.)

Selecting a Financial Institution

Carefully select a financial institution by comparing the terms and
prices of all of the services you need.

o Shop around. Do not do business with the first institution that
seems willing to do business with you.

o Check the front door to see if the institution displays a
government logo indicating that it is insured Federally.
Generally, if the institution is insured Federally, an individual
is covered for up to $100,000 in deposits if the institution fails.

Truth in Savings Act

o Requires financial institutions to disclose the "Annual
Percentage Yield," or "APY," on savings accounts. The APY tells
you how much money you would earn if you kept $100 in the account
for one year.

o Requires that the institution credit your entire deposit instead
of crediting a portion of your deposit or using a "low balance per
month" method. This increases your earnings.

o Requires that institutions have available a list of their fees
for bounced checks, stop payment orders, certified checks, wire
transfers or similar items. Ask for the list.

o Prohibits institutions from advertising "free" checking if there
are hidden charges or requirements, for example, having to maintain
a minimum balance to qualify.

Checking Accounts

o Before you open a checking account, find out what the fees will
be for writing checks, for bounced checks, for the checks
themselves and for other services. Ask if the institution will
send you the canceled checks with your monthly statement. If not,
find out the cost for copies of canceled checks. You might need
them for proof of payment in some situations.

Loans

o When shopping for a mortgage, check the real estate section of
your local newspaper to find out the current interest rates. Check
the rates for 30-year mortgages, 15-year mortgages and adjustable
rate mortgages. Ask the lending institution to
explain the differences.

o Most home improvement loans are secured by a mortgage on your
home. It's better not to finance expensive credit life insurance
or to consolidate other debts into this loan. Your home will be at
risk for every extra dollar you borrow. If you don't make your
payments, you could lose your home.

o For car loans, compare the rates offered by the car dealer with
those of local lending institutions. Don't add expensive extras
like credit life insurance to the total amount of the loan. You do
not have to purchase credit insurance in order to get a loan.
Credit Cards

o For a small fee, you can purchase a list of the most
competitive interest rates and credit cards in the country and find
out how to qualify for the lowest rate possible by
contacting Bankcard Holders of America, 560 Herndon Parkway, Suite
120, Herndon, VA 22070, (703) 481-1110.

o If you cannot pay off your full credit card balance each month,
a lower interest rate will save you money. If you do pay off your
balance in full each month, choose a card with no annual fee.

o Report billing errors and unauthorized charges to your credit
card company right away. Keep a list of credit card numbers and
card company phone numbers to alert a credit card company
immediately if a card is stolen or missing. If you report the
incident immediately, the most you will have to pay for any
unauthorized charges is $50 on each card, regardless of how high
the total unauthorized charges go before you report your card
missing.

o Don't give your credit card number over the phone to
unfamiliar companies or to people who say they need it to
"verify" your identity in order to give you a prize.

o After signing your name on a credit card charge slip, pull out
the carbons and rip them up.

o A Federal law gives all consumers equal access to credit. The
Equal Credit Opportunity Act makes it illegal for creditors to
discriminate against applicants on the basis of race, sex,
national origin, marital status, age or religion, or because of
public assistance income.

o Be cautious of offers for "secured" credit cards. These cards
usually require you to set aside money in a separate bank account
in an amount equal to the line of credit on the card to guarantee
that you will pay the credit card debt. Some of these offers
advertise that secured cards can be used to "repair" a bad credit
record, but you should know that no matter how well you handle this
account, your payment history on your past debts still will be
taken into consideration when you apply to other lenders for credit
or for employment or housing.

For more information or to file a complaint, contact:

Federal Deposit Insurance Corporation
Office of Consumer Affairs
550 17th Street, N.W.
Washington, DC 20429
(202) 898-3536
(202) 898-6726 (voice/TDD)
1 (800) 934-3342 (toll free)

Board of Governors of the Federal Reserve System
Division of Consumer and Community Affairs
20th and C Streets, N.W.
Mail Stop 198
Washington, DC 20551
(202) 452-3693
(202) 898-6726 (FDIC Voice/TDD)

Comptroller of the Currency
Consumer Affairs
250 E Street, S.W.
Washington, DC 20219
(202) 874-4820

Bankcard Holders of America
560 Herndon Parkway, Suite 120
Herndon, VA 22070
(703) 481-1110

National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6300

State Banking Authorities
(See Consumer Assistance Directory, page 87.)

State and Local Consumer Protection Offices
(See Consumer Assistance Directory, page 70.)

Credit

Credit Reporting

The three biggest credit reporting agencies, TRW, Equifax and Trans
Union, each have millions of credit files on consumers nationwide.
Their toll-free numbers are:

o TRW - 1 (800) 392-1122;

o Equifax - 1 (800) 685-1111; and

o Trans Union - 1 (800) 851-2674.

You can find other credit bureaus in your area by looking in the
Yellow Pages under Credit Bureaus or Credit Reporting.

If you apply for credit, insurance, a job or to rent an
apartment, your credit record might be examined. You can make sure
yours is accurate.

o Get a copy once a year or before major purchases. Your report
is generally free if you've been denied credit in the past 60 days.
Otherwise, the credit bureau can impose a reasonable charge.

o Read the report carefully. The credit bureau must provide
trained personnel to explain the information in the report. o
Dispute any incorrect information in your credit record. Write to
the credit bureau and be specific about what is wrong with your
report. Send copies of any documents that support your dispute.

In response to your complaint, the credit bureau:

o must investigate your dispute and respond to you, usually within
30-35 days; information that is inaccurate or cannot be verified
must be corrected or taken off your report; and

o cannot be required to remove accurate, verifiable information
that is less than seven years old (10 years for bankruptcies). If
you are dissatisfied with the results of the re-investigation, you
can have the credit bureau include a 100-word consumer
statement, giving your version of the disputed information. You
also can contact the source of the disputed information and try to
resolve the matter.

If there is an error on a report from one credit bureau, the same
mistake might be on others as well. You might want to contact the
three major bureaus, as well as any local bureau listed in the
Yellow Pages of your telephone book.

Credit bureaus sometimes sell your name to banks or others who want
to send you offers for credit cards or other forms of
credit. If you don't want your name included on such lists, write
or call the three major credit bureaus and tell them not to release
your name.

Credit Repair

You might see or hear ads from companies that promise to "clean up"
or "erase" your bad credit and give you a fresh start. They charge
high fees, usually hundreds of dollars, but do not deliver on their
promises.

If you are thinking of paying someone to "repair" your credit,
remember this:

o Negative credit information can be reported for seven years (10
years for a bankruptcy).

o No one can require a credit bureau to remove accurate negative
information before that period is up.

o There are no "loopholes" or laws that credit repair companies
can use to get correct information off your credit report. o No
credit repair company can do anything you can't do for yourself.
(See the section on Credit Reporting, page 19.) o A "money-back
guarantee" does you no good if the company has gone out of business
or refuses to make good on its refund
promise.

o The only way to "repair" bad credit is by good credit
practices over a period of time.

Some credit repair companies promise not just to clean up your
existing credit record, but to help you establish a whole new
credit identity. Remember, it is illegal to make false
statements on a credit application or to misrepresent your Social
Security Number. If you use such methods, you could face fines or
even prison. Beware of any company or method that:

o encourages you to omit or lie about bad credit experience when
you apply for new credit;

o tells you to use a new name or address or a new number, for
example, an Employer Identification Number (EIN), in place of your
Social Security Number in applying for credit; or

o says it is legal to establish a new credit identity.

You can rebuild your good credit by handling credit responsibly.
You might want to contact a Consumer Credit Counseling Service
(CCCS) office. This is a non-profit organization that will provide
help at little or no cost to you. For a CCCS office in your area,
call 1 (800) 388-CCCS.

Credit Billing and Disputes

The Fair Credit Billing Act applies to credit card and charge
accounts and to overdraft checking. It can be used for:

o billing errors;

o unauthorized use of your account;

o goods or services charged to your account, but not received or
not provided as promised; and

o charges for which you request an explanation or written proof of
purchase.

Protect Your Rights

o Write to the creditor or card issuer within 60 days after the
first bill containing the disputed charge is mailed to you. (Even
if more than 60 days have passed since you were billed for the
item, you still might be able to dispute the charge if you only
recently found out about the problem.)

o Send your letter to the address provided on the bill; do not
send the letter with your payment.

o In your letter, give your name and account number, the date and
amount of the charge disputed, and a complete explanation of why
you are disputing the charge. Be specific.

o To be sure your letter is received, and so you will have a
record, you might wish to send it by certified mail, with a return
receipt requested.

If you follow these requirements, the creditor or card issuer must
acknowledge your letter in writing within 30 days after it is
received and conduct an investigation within 90 days.

While the bill is being disputed and investigated, you need not pay
the amount in dispute. The creditor or card issuer may not take
action to collect the disputed amount, including reporting the
amount as delinquent, and may not close or restrict your account.

If there was an error or you do not owe the amount, the creditor or
card issuer must credit your account and remove any finance charges
or late fees relating to the amount not owed. For any amount still
owed, you have the right to an explanation and copies of documents
proving you owe the money.

If the bill is correct, you must be told in writing what you owe
and why. You will owe the amount disputed, plus any finance
charges. You may ask for copies of relevant documents.

Debt Collection

The Fair Debt Collection Practices Act applies to those who collect
debts owed to creditors for personal, family and
household debts, including car loans, mortgages, charge accounts
and money owed for medical bills. A debt collector may not: o
contact you at unreasonable times or places, for example, before 8
a.m. or after 9 p.m., unless you agree, or at work if you tell the
debt collector your employer disapproves;

o contact you after you write a letter to the collection agency
telling them to stop, except to notify you if the debt collector or
creditor intends to take some specific action;

o contact your friends, relatives, employer or others, except to
find out where you live and work or tell such people that you owe
money;

o harass you by, for example, threats of harm to you or your
reputation, use of profane language or repeated telephone calls;
o make any false statement, including that you will be arrested;
and

o threaten to have money deducted from your paycheck or sue you
unless the collection agency or creditor actually intends to do so,
and it is legal to do so.

If you are contacted by a debt collector, you have a right to a
written notice, sent within five days after you are first
contacted, telling you:

o the amount owed;

o the name of the creditor; and

o what action to take if you believe you don't owe the money. If
you believe you do not owe the money or don't owe the amount
claimed, contact the creditor in writing and send a copy to the
debt collection agency with a letter telling them not to contact
you.

If you do owe the money or part of it, contact the creditor to
arrange for payment.

Equal Credit Opportunity Act

The Equal Credit Opportunity Act guarantees you equal rights in
dealing with anyone who regularly offers credit, including banks,
finance companies, stores, credit card companies and credit unions.
A creditor is someone to whom you owe money. When you apply for
credit, a creditor may not:

o ask about or consider your sex, race, national origin or
religion;

o ask about your marital status or your spouse, unless you are
applying for a joint account or relying on your spouse's income or
you live in a community property state (Arizona, California, Idaho,
Louisiana, Nevada, New Mexico, Texas and Washington); o ask about
your plans to have or raise children;

o refuse to consider reliable public assistance income or
regularly received alimony or child support; and

o discount or refuse to consider income because of your sex or
marital status or because it is from part-time work or retirement
benefits.

You have the right to:

o have credit in your birth name, your first name and your
spouse's last name, or your first name and a combined last name;
o have a co-signer other than your spouse if one is necessary;
o keep your own accounts after you change your name or marital
status or retire, unless the creditor has evidence you are unable
or unwilling to pay;

o know why a credit application is rejected; the creditor must
give you the specific reasons or tell you of your right to find out
the reasons if you ask within 60 days; and

o have accounts shared with your spouse reported in both your
names.

Credit Cards

Choosing a Credit Card

Credit card issuers offer a wide variety of terms. Consider and
compare all the terms, including the following, before you select
a card:

o Annual Percentage Rate (APR) - the cost of credit as a yearly
rate.

o Free or Grace Period - allows you to avoid any finance charge by
paying your balance in full before the due date. If there is no
free period, you will pay a finance charge from the date of the
transaction, even if you pay your entire balance when you receive
your bill.

o Fees and Charges - most issuers charge an annual fee; some also
might charge a fee for a cash advance or if you fail to make a
payment on time or go over your credit limit.

Shop around for the terms that are best for you. Before giving
money to a company that promises to help you get a credit card:
o find out who the card issuer is and get the credit card terms in
writing, including all the fees and whether a deposit is required;

o try to apply to a card issuer directly, rather than giving money
to a third party; if you don't get the credit card, you might not
be able to get your money back;

o beware of "credit cards" that only allow you to buy from certain
overpriced, restricted goods catalogs; and

o beware of companies that promise "instant credit" or guarantee
you a credit card "even if you have bad credit or no credit
history;" no one can guarantee you credit in advance.

Using a Credit Card

Know your credit card protections. When you have used your card
for a purchase and you don't receive the goods or services as
promised, you might be able to withhold payment for the goods or
services. Card issuers must investigate billing disputes. (See
the section on Credit Billing and Disputes, page 20.)

If your card is lost or stolen, you are not liable for any
charges if you report the loss before the card is used. If the
card is used before you report it missing, the most you will owe is
$50.

Protect your credit record. Pay bills promptly to keep finance
charges low and to protect your credit rating. Keep track of your
charges and don't exceed your credit limit. Report any change of
address prior to moving so that you receive bills promptly.

Preventing Credit Card Fraud

o Sign cards when they arrive, so no one can forge your
signature on the cards and use them.

o Keep copies of all sales slips. Open credit card bills
promptly and compare the sales slips with the charges on your bill.

o Promptly report any suspicious or unauthorized charges to the
card issuer.

o Never give your credit card number over the phone unless you
have made the call and you know the company is reputable.

o Draw a line through blank spaces on charge slips. Do not sign
a blank charge slip.

o Destroy carbons and incorrect charge slips.

o Keep a record of your card numbers and expiration dates and the
phone number of the card issuer in a safe place.

To order free brochures on credit, contact the Federal Trade
Commission, Public Reference Section, 6th and Pennsylvania
Avenue, N.W., Suite 130, Washington, DC 20580, (202) 326-2222. To
file a complaint, contact your state or local consumer
protection agency, your state attorney general or your Better
Business Bureau.

Consumer Privacy

How to Reduce Unwanted Solicitations and Guard Your Privacy o Pay
for local purchases with cash, rather than by check or credit card.

o Ask manufacturers, catalogue or magazine subscription
companies, charities and others with whom you do business not to
sell your name to others for marketing purposes.

o Don't release your Social Security Number except to an
employer, government agency, lender or credit bureau that
requires it to identify you.

o Don't give anyone your credit card or checking account numbers
unless you're making purchases with them, and don't put credit card
numbers on your checks.

o When filling out warranty or other information cards, don't
include optional or unnecessary personal information.

o Federal law gives you the right to ask telemarketers to take
your name off of their lists and not to call you again. Keep
records of their names, addresses and the dates of your requests.
File a complaint with the Federal Communications Commission (see
page 109) if they don't remove your name from their marketing lists
once you have made your request.

o Personal information is easily obtained by companies promoting
sweepstakes, contests and prize offers. Be careful to check out
the companies before deciding to do business with them or
releasing personal or financial information. Contact your state or
local consumer agency (see page 70) or Better Business Bureau (see
page 63). These three types of promotions are in the top 10
consumer complaints nationwide.

Review Files that Contain Information about You

The Medical Information Bureau (MIB) is a data bank used by
insurance companies. You might want to obtain a copy of your file
and make sure the information it contains is correct. Write to the
Medical Information Bureau, P.O. Box 105, Essex Station, Boston, MA
02112.

Credit bureaus keep records about your credit history. You should
review periodically your credit reports for accuracy. (See the
section on "Credit Reporting," beginning on page 19.) To limit
mail or telephone calls you do not want, you can sign up at no cost
for a service that tells some of the telephone or mail marketing
companies not to contact you. (See the sections on Telemarketing
and Mail Order, pages 13 and 12, respectively, for more
information.)

Many states have their own privacy laws concerning telemarketing,
employment, the use of social security, credit card or checking
account numbers, medical records, mailing lists, credit reports,
debt collection, computerized communications, insurance records and
public data banks. Check with your state or local consumer agency
about specific privacy rights or a referral to the
appropriate agency.

Advance Fee Scams

Be wary of ads promising guaranteed jobs, guaranteed loans, credit
repair, debt consolidation or similar claims. Many of these are
only a way to get you to send money in exchange for little or no
service.

o Be cautious when responding to advertisements which use 900
telephone numbers. You can be charged substantial and differing
amounts for calls to 900 numbers.

o Be careful with your personal information, including Social
Security Numbers, credit card numbers and bank account numbers,
among others. Fraudulent businesses could use this information to
make an unauthorized charge to your credit card or to withdraw
money from your bank account.

o Before you make any payment, ask the business to send you a
contract and other information stating the terms of the service and
whether you can cancel the service and get a refund.

o Ask how long the firm has been in business and if it is
licensed properly. Request that the company send you copies of its
business or other licenses. Review all contracts carefully. o
Contact your state or local consumer protection agency and the
Better Business Bureau to find out a company's complaint record.
o Some states have enacted laws banning or regulating these types
of businesses. To find out the law in your state or to report a
fraud, contact your state or local consumer protection agency.

o For information on the dangers of these types of scams, call the
non-profit National Fraud Hotline at 1 (800) 876-7060 (toll free).

Special Contracts

Health Clubs

When you are considering whether to join a health club, be
cautious of:

o joining clubs that have not opened - they might never open; o
low-cost "bait" ads - many "switch" you to expensive long-term
contracts;

o promises that you can cancel anytime and stop paying - check the
written contract for the terms of membership and any other
promises;

o the fine print - many low-cost ads and contracts severely
restrict hours of use and services;

o signing long-term contracts - consumer protection agencies
report that many consumers quit using the club within a few months;

o automatic monthly billing to your charge card or debit from a
checking account - these are easier to start than to stop; and o
unbelievably low one-time fees with no monthly dues.

Before you sign, be sure to:

o check with your doctor before you begin an exercise program;
o visit the club at the hours you will be using it;

o check to see that promised equipment/services are actually
available;

o talk to current members regarding their satisfaction with the
club;

o check out several clubs before you sign a contract;

o consider your commitment to a long-term program - good
intentions seem to fade as the reality of the hard work sets in