Daily Information 1/9

Objectives:

1.Explain how to dispute errors on billing statements2.Recognize credit scams and ways to protect yourself.

Warm Up:

Create a caption for the picture below

Agenda:

1.Warm up2.Credit problems P.P.3.TPS4.Bottom Line5.Resume or your choice novel project.

Credit Cards: Error and Fraud

• Disputing a charge: the process of informing a credit company of an error on your billo Document all steps of your dispute and send

a letter to the credit company

• Credit card fraud: when someone uses your credit account to steal money or goodso Notify creditor as soon as possible

Error Correction Policy

1. Write description of the error.

2. Mail your letter as soon as possible.

3. Letter must be acknowledged in 30 days. Error must be corrected or explained in 90 days.

4. No collection letters will be sent or action taken while the charge is being disputed.

5. You are still responsible for other items on your bill.

6. You will not be charged a finance charge on disputed amount unless there is no error.

Credit Dispute: Next Level

• Alternative dispute resolution (ADR) uses a neutral third party. o Negotiationo Mediationo Arbitration

• Filing a lawsuito Small claims courto Class action lawsuit

Prevent Credit Card Fraud

• Carry only the cards you need• Verify all purchases• Close inactive accounts• Keep a list of credit cards

and phone #’s• Do not loan your credit card to others• Use only secure websites to buy online• Monitor your credit activity online• Do not give your information over the phone or

email! **Partners: rate and explain

Credit Scams

• Credit repair scams: when someone offers to “fix” your credit rating

• Identity theft: when someone uses your personal information to commit fraud or other crimes.

Focus On . . .

Telemarketing Fraud• To protect yourself, know the danger signs

o Examples: upfront fees, pressure to act immediately, no written documentation

• Use a credit card in case you need to dispute the charge later

• Be cautious when dealing with unknown companies

• Use caller ID to avoid unwanted calls

Page 287 of textbook

Consumer Advocacy GroupsBetter Business Bureau

Promotes responsible business practices in the marketplace to build trust between buyers and sellers

Consumer Action Promotes consumer rights, publishes educational materials, and advocates for consumers in the media and before lawmakers

Consumer Federation of America

Works to advance pro-consumer policies on a variety of issues before state and federal legislatures, regulatory agencies, and the courts

Consumers Union Provides advice about products and services in its publication Consumer Reports

National Consumers League

Sponsors the Fraud Center and addresses a wide range of issues in the marketplace

Public Citizen Addresses issues such as the consumers’ right to seek redress; clean and safe energy sources; and strong health, safety, and environmental laws

Nonprofit organizations that promote consumer rights

What Help Is Available?

• Federal agencieso Federal Trade Commission (FTC) Bureau of

Consumer ProtectionoU.S. government (www.usa.gov)oConsumer Action HandbookoConsumer Financial Protection Bureauo Federal Bureau of Investigation (FBI)

• State agencies

(Resume/Choice Novel)

• Resume– Complete formatting and submit rough draft– Make corrections and turn in for review

• Choice Novel– Read your book– If you forgot your book, complete alternative

assignment• Textbook page 41: Success Skills…

Teamwork–Read and answer the “Think Critically”

questions

Daily Information 1/11

Objectives:

1.List and explain consumer protection laws that are related to credit.2.Describe the different types of bankruptcy.

Warm Up:

Grab a textbook

What are the warning signs that debt has become a problem?

Page: 284

Agenda:

1.Warm up2.Define terms3.Bankruptcy P.P.4.Credit problems activity5.Bottom Line6.Resume or your choice novel project.

What Problems Arise from Debt?

• Credit delinquency

• Collection agencies

• Judgment

• Garnishment

• Repossession and foreclosure

Consumer Protection Laws

• Fair Credit Reporting Act

• Truth-in-Lending Act

• Credit Card Act of 2009

• Fair Credit Billing Act

• Equal Credit Opportunity Act

• Fair Debt Collection Practices Act

Define the terms listed above. Textbook page 298

What is Bankruptcy?

Bankruptcy: a legal procedure to relieve a person of excessive debt

• It can be voluntary or involuntary

• It gives debtors a fresh start

• It helps ensure fair treatment for creditors

• It should be a last resort because it damages your credit rating

Avoiding Bankruptcy• Credit counseling

o Sets up a budget and arranges a payment plan

• Debt managemento Creates a plan to pay off debto Debtor must turn over checking

account and give up credit cards

• Debt consolidationo Process of getting one loan to

pay off all debts

Types of Bankruptcy

• Chapter 7 o Also called straight or

liquidation bankruptcyo Involves the forfeiture

of assets in exchange for discharge of debts

oAllows for exemptions, or property that a debtor does not have to forfeit, such as tools of trade

Types of Bankruptcy

• Chapter 11 o Also called a reorganizationo It is the reorganization of debt as decided

by the court.o Allows a business to remain in operation

• Chapter 13 o Also called individual debt adjustmento Involves a 3- to 5-year repayment plan for

some of the debt

Credit Problems Activity

• Webdesign folder, Unit 3, Chapter 9

(Resume/Choice Novel)

• Resume– Complete formatting and submit rough draft– Make corrections and turn in for review

• Choice Novel– Read your book– If you forgot your book, complete alternative

assignment• Textbook page 41: Success Skills…

Teamwork –Read and answer the “Think Critically”

questions