Legal Protections
This Act Forbids collection agencies from using threats, harassment, or abuse to collect debts. Does not apply to creditors who are collecting their own debts
Fair Debt Collection Practices Act
With small down payment, what happens to monthly and total payments?
Both are higher and the buyer will have to pay for mortgage insurance below 20% down payment
A type of loan specific to property. Typically a 30-year loan with an unchanging interest rate that requires a significant down payment.
Mortgage Loan
Company advertises “millions of dollars in scholarships go unclaimed!” “We’ll find the unclaimed ones for you!” For a fee. You will get information about a scholarship that is already available for free.
College Financial Aid Scam
This electronic kidnapping happens when scammers get your name, SSN, Credit Card info, or some other personal information and use it to open new accounts (cell phone, credit card, retirement, unemployment, etc.) in your name.
What is Identity Theft?
This Act discussed how quickly card losses must be reported. How quickly you report the loss determines the amount for which you are held responsible
Electronic Funds Transfer Act
The price paid for using someone else's money
Interest
An initial partial payment when using credit for the purchase of expensive items
Down Payment
People are recruited by ads offering big profits if you pay a fee for agency rights. You get a commission on sales and a bigger commission on new recruits
Pyramid Scheme
How do thieves get my info?
Stolen wallets, mail, trash, receipts
Poorly protected online accounts
Skimming, Phishing, Pretexting
Sketchy Free WiFI
Requires lenders disclose cost of credit in simple terms
Must state % costs of borrowing in terms of APR
Truth in Lending Act
What’s the trade-off in 15-year vs. 30-year mortgages?
15 year pays less overall, but higher payments monthly than 30 year
How can you reduce the total payment when buying a home or a car?
Increase down payment, get a lower rate, pay it off faster, have lower closing costs (homes), find a lower APR
Typically, consumer rents something for a short period of time and if they pay the payments, at the end of that period they become the owner (a week to 18 months usually)
Rent-to-Own Company
Name 3 ways to start fixing the damage of identity thieves
Review credit reports and place a fraud alert so you will be contacted before accounts are opened
Close accounts that are altered or opened fraudulently
File a complaint with the Federal Trade Commission (FTC)
File a report with local police or the community where the theft took place
Requires creditors to furnish accurate and complete information about your credit history
If you are refused credit, you have a right to see your credit report file from the bureau that submitted the negative information on which the refusal was based and contest it
Fair Credit Reporting Act
An official record of an individual's credit history
Credit Report
What is the recommended percentage for a mortgage downpayment to avoid paying mortgage insurance?
20%
Allows people to get cash for use until their next payday, without a credit check
Payday Loan
How do I know I’m a victim of identity theft?
May receive bills for accounts you didn’t open or didn’t charge
Apply for a loan and are denied
View credit report and see overdue debts that aren’t yours
Requires creditors mail your bill at least 14 days before payment is due. Establishes procedures for correcting billing errors and fraudulent charges on your credit card accounts
Fair Credit Billing Act
In this scam, a company says they’ll erase your bad credit history or remove bankruptcy from your credit record
Credit-Repair Scam
A period of time in which a debt is reduced or paid off by regular payments. “Payback”
Amortization
An advertiser runs an ad offering a personal-debt consolidation loan (takes all payments and rolls them into one) Rarely is the company name/address given -- instead, there’s an 800 or 900 phone number
Loan Scam
Name 5 ways to avoid/reduce identity theft
DO NOT LEAVE YOUR CARDS or receipts lying around
Shred unneeded documents with any personal info on them
DO NOT sign a blank receipt -- when you sign a receipt, draw a line through any blank spaces above the total
Don’t give your acct # over the phone or internet unless you are 100% sure the company is legit (then do it in a private area)
Use secure internet connections (https instead of just http)
If you lose your card, IMMEDIATELY contact the card issuer
Sign your credit/debit card as soon as it arrives (merchants can compare receipt signature)
Pick up your mail daily -- mail checks from collection box or post office, not your mailbox
Keep record of account numbers, expiration dates, and phone/address of all companies that have your info
Keep eyes on your card during transactions
Save receipts to compare with billing statements
Open bills promptly and reconcile accounts monthly
Report any shady charges ASAP and in writing
DO NOT LEND YOUR CARDS