2001 Consumer Action Handbook United States General Services Administration Federal Consumer Information Center The Federal Consumer Information Center (FCIC) wishes to extend special thanks to the National Association of Consumer Agency Administrators, the National Consumers League, and ConsumerWorld.org for their help in developing this edition of the Consumer Action Handbook. Their expertise on the front lines of consumer education and complaint handling has contributed immeasurably to the value and quality of this publication. Single copies of the current Consumer Action Handbook are available free by writing Handbook, Federal Consumer Information Center, Pueblo CO 81009 or by calling 1-800-688-9889. The Handbook can also be viewed and ordered on the FCIC web site: www.pueblo.gsa.gov. The 2001 Consumer Action Handbook will be current through summer 2002. To place your name on a mailing list to receive the 2002 Handbook, please call 1-800-688-9889. For information that is updated weekly, click on the Handbook at www.pueblo.gsa.gov. Reprinted September 2000 ____________________________________________________________ Contributors The Federal Consumer Information Center wishes to express its gratitude to the partners listed below who helped make possible the publication of the 2001 Consumer Action Handbook. Consumer Product Safety Commission The Honorable Ann Brown Chairman Department of Agriculture The Cooperative State Research, Education, and Extension Service Charles W. Laughlin Administrator Department of Defense The Honorable William S. Cohen Secretary Department of Justice The Honorable Janet Reno Attorney General Department of Veterans Affairs The Honorable Hershel W. Gober Secretary Federal Deposit Insurance Corporation The Honorable Donna Tanoue Chairman Federal Trade Commission The Honorable Robert Pitofsky Chairman General Services Administration The Honorable David J. Barram Administrator National Institute of Mental Health Steven E. Hyman, M.D. Director Securities and Exchange Commission The Honorable Arthur Levitt, Jr. Chairman AARP American Council of Life Insurers American Financial Services Association Education Foundation American Express AT&T Bell Atlantic Carfax Certified Financial Planners Board of Standards Chase Manhattan Bank Colgate-Palmolive Council of Better Business Bureaus, Inc. The Dannon Company Direct Marketing Association Experian Food Marketing Institute Ford Motor Company General Motors MasterCard MCI WorldCom Merck Medco MetLife Michelin National Futures Association National Home Equity Mortgage Association Society of Consumer Affairs Professionals in Business (SOCAP) Subaru United ValueStar Visa Warner Lambert Contents How to Use This Handbook 1 Part I Before You Buy 1 Car Repair, Buying, Leasing and Renting 4 Home 8 Investing Wisely 10 Utilities 10 Money and Credit 14 Loans 14 Credit Cards 16 Insurance 19 Health Care 20 Shopping from Home 21 Privacy 26 Identity Theft 27 Travel Tips 28 Services and Resources for Consumers with Disabilities 29 Part II After You Buy 30 How to Complain 30 Legal Help 32 Sample Complaint Letter 34 Part III Consumer Assistance Directory 35 Corporate Consumer Contacts 35 Car Manufacturers and Dispute Resolution Programs 66 State, County and City Government Consumer Protection Offices 70 State Banking Authorities 87 State Insurance Regulators 91 State Securities Administrators 95 State Utility Commissions 99 State Weights and Measures Offices 103 Selected Federal Agencies 107 Better Business Bureaus 117 National Consumer Organizations 125 Trade and Professional Associations 129 U.S. Military Consumer Services Programs 134 U.S. Military Commissary and Exchange Offices 134 How To Use This Handbook Part I - Before You Buy. This section contains general advice on steps to take when shopping for goods or services, warnings on what to watch out for, and specific information on how to shop for certain major items such as cars, credit and home improvements. Follow the suggestions and use the resources listed in this section when you're considering a purchase and want to make the best buy. Use the index beginning on page 137 to find information on specific topics. Part II - After You Buy. Turn to this section if you have a problem after making a purchase, including finding legal advice or getting help from the media. Follow the form of the sample complaint letter to present your complaint most effectively. Part III - Consumer Assistance Directory. Check here to find the most appropriate place(s) to file your complaint or ask a question. This section provides individual names, addresses, telephone numbers, TDD/TTY and fax numbers, e-mail addresses, and web sites for contacts in consumer organizations, corporations, trade associations, and government agencies at the city, county, state and Federal level. To save space, the web site addresses omit http:// and begin with www to indicate access through the World Wide Web. These sites have a "contact us" button or provide another way to send your message directly to the company or agency. We need your help to keep the Handbook up-to-date. Please report any changes to Handbook Update, Federal Consumer Information Center, 1800 F Street, NW, Rm. G-142, Washington, DC 20405, or e-mail catalog.pueblo@gsa.gov. Part I Before You Buy If you take the following steps and heed the warnings set out below, you have a good chance of avoiding problems and being happy about what you bought. * Decide in advance exactly what you want and what you can afford. * Research the product or service by using the following resources.(See Smart Shopping Online, page 25, for additional online research and shopping tips.) Federal Consumer Information Center (FCIC) Pueblo, CO 1-800-688-9889 TDD: 1-800-326-2996 www.pueblo.gsa.gov FCIC, part of the U.S. General Services Administration, is a one-stop source of print and electronic Federal consumer information. FCIC can help you find information about Federal Government agencies, services, and programs. It can also tell you which office to contact for help with problems. FCIC does not handle consumer complaints, but it does enable consumers to send complaints directly to companies and agencies through its web site. Click on the Consumer Action Handbook. The free Consumer Information Catalog lists more than 200 free or low-cost Federal booklets on topics such as careers and education, cars, child care, the environment, Federal benefits, financial planning, food and nutrition, health, housing, small business and more. For a free Catalog, order from the web site or send your name and address to Federal Consumer Information Center, Pueblo, CO 81009 or call 1-800-688-9889 TDD: 1-800-326-2996. Open 9 a.m. to 8 p.m. eastern time, M-F. Go to www.pueblo.gsa.gov to: * view and download free copies, or to order publications listed in the Catalog, * search for topics of interest, * link to other Federal agencies and consumer offices, * get a calendar of upcoming events and the latest consumer news, * find new publications and special resources that may not be available in print, and * use links to send complaints. Center for the Study of Services 733 15th Street, NW Washington, DC 20005 202-347-7283 Fax: 202-347-4000 www.checkbook.org This nonprofit organization publishes books and pamphlets to help consumers select a wide variety of goods and services, including doctors, hospitals and health plans; offers information and services to help consumers get good prices on new cars; and maintains an on-line database to help consumers shop for good prices and desired features in big-ticket products, such as electronics and major appliances. Consumers Union of U.S. (CU) 101 Truman Avenue Yonkers, NY 10703-1057 914-378-2000 Fax: 914-378-2900 www.consumerreports.org A nonprofit, independent organization, CU researches and tests consumer goods and services, publishing the results in its monthly magazine, Consumer Reports, as well as in other publications and media. Consumer World Web Site www.consumerworld.org Consumer World is a public service site, which has gathered over 1,700 of the most useful consumer resources on the Internet, and categorized them for easy access. Cooperative Extension Service The Cooperative State Research, Education, and Extension Service of the U.S. Department of Agriculture has been a source of information and assistance to consumers for decades. With an educator in nearly every U.S. county, Cooperative Extension brings the research-based knowledge of the land grant universities directly to families and communities. Programs cover food and nutrition, housing, gardening, personal finance issues such as budgeting, borrowing, using credit wisely, saving for retirement and other goals, and more. To locate your county office, check the blue pages of your phone book or call your county government. Libraries You can find many of the publications mentioned in the Handbook at public libraries. Some university and private libraries also allow individuals to use their reference materials. Check your local telephone directory for the location of nearby libraries. U.S. Government Printing Office Library Service Program Stop: SLLD Washington, DC 20401 202-512-1119 Fax:202-512-1432 www.gpo.gov/su_docs/dpos/index.html The Federal Depository Library Program provides public access to government information at nearly 1,400 libraries nationwide. Ask friends and family for recommendations based on their experience. * Shop around. Compare prices and get more than one estimate. * Learn about existing warranties and compare them. To find out about warranties that may be required by law, call your state or local consumer protection office. * Check out a company's complaint record with your local consumer affairs office (page 70) and the Better Business Bureau (page 117). Knowing the number of complaints is not enough. Find out, if you can, the nature of the complaints filed. If you are making a large purchase, it is a good idea to take a look at the actual complaint files and see how the company responded. A certain number of complaints against a small company may be more significant than the same number against a larger one. * Make sure that the company has all appropriate state and local licenses and has complied with any other regulations. Occupational and professional licensing boards cover doctors, lawyers, and home improvement contractors, as well as other businesses. For more information, see page 70. * Read and understand any contract you are asked to sign. Make sure that all the blanks are filled in and that any verbal promises made by the salesperson are also in writing. * Extended warranties or service contracts offer a high margin of profit to the business. You need to decide whether the extra peace of mind you gain is worth the price. To find out more, contact the Federal Trade Commission (see page 114) or your state or local consumer office (see page 70). * Check out a seller's refund and return policy and get it in writing. * Consider paying by credit card. If you later have a legitimate dispute with the seller, you do not have to pay a charge made on your credit card. For more information on credit card protection see page 16. * Check the index at the back of this Handbook for more specific information, and consult the Consumer Information Catalog (see page 1) for other brochures and pamphlets on selected consumer topics. To avoid problems, read and follow product and service instructions. The way you use or take care of a product might affect your warranty rights. Save all contracts, sales receipts, canceled checks, owner's manuals and warranty documents. How to Complain * In some instances it will be best to contact the business that sold you the item or performed the service. In other cases, you may wish to go directly to the headquarters of the company or the manufacturer. Ask if they have a consumer affairs office and, if so, report the problem directly to them. Calmly and concisely describe the problem and what action you would like taken. * 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 resolve it and what solution you want. (See page 34 for sample complaint letter.) For example, do you want your money back or the product repaired or exchanged? When you call, keep notes of whom you spoke with and what they said. * Allow time for the person you contacted to resolve your problem. Keep notes of the date, what was agreed on, and the next steps to be taken. Save copies of all letters to and from the company. Don't give up if you are not satisfied. There are third-party dispute resolution programs, trade associations, media programs, national consumer organizations, and legal assistance programs listed throughout this publication that may be able to assist you. Making A Complaint Use the sample consumer complaint letter on page 34 as a guide. If you use e-mail, make sure to send a copy of the e-mail to other relevant organizations. You can also use the links at www.pueblo.gsa.gov to send your complaints to companies, agencies, etc. Who To Contact and How To Find Them * Address letters, faxes or emails to the company consumer affairs department or to the president if there is no consumer affairs office. * Call the company's toll free number. Look for it on any documents you have received from the company, in a directory of toll-free telephone numbers available at your public library, by calling toll-free directory assistance at 1-800-555-1212 or by referring to the many corporate consumer contacts beginning on page 35. * Check the product label or warranty for the name and address of the manufacturer or parent company. * Because the name of the manufacturer or parent company is often different than the brand name, check the following books in the reference section of your local library for contact information: Standard & Poor's Register of Corporations, Directors and Executives; Standard Directory of Advertisers; Trade Names Dictionary; Brands and Their Companies; and the Dun & Bradstreet Directory. * Check the state agency (possibly the corporation commission or secretary of state's office) that provides addresses for companies incorporated in that state. What To Say * Include in a letter, fax, or email your name, address, home or work telephone numbers, and account number, if any. * Make your written or telephone complaint brief. Include the date and place you made the purchase, who performed the service, information about the product (such as the serial or model number, warranty terms), what went wrong, with whom you have tried to resolve the problem, and what you want done to correct the problem. * Be reasonable, not angry or threatening. Type your letter, if possible, or make sure that your handwriting is neat and easy to read. * Include copies, not originals, of all documents. What To Do Next * You might want to send your complaint letter with a return receipt requested. This will cost more, but it will give you proof that the letter was received and will tell you who signed for it. * Keep a copy of your complaint letter, and all letters to and from the company. * If you believe you have given the company enough time to resolve the problem, file a complaint with your state or local consumer protection office, the Better Business Bureau, or the regulatory agency that has jurisdiction over the business, e.g., banking, insurance and utilities commissions. Their addresses can be found starting on pages 87, 91 and 99 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. Here are some sources of help with complaints. Media Programs Local newspapers and radio stations often have Action Lines or Hotline services. Many try to resolve all of the consumer complaints they receive. Others handle only the most serious cases or those that occur most frequently. To find these services, check with your local newspapers, radio and television stations, or local library. Call for Action, Inc. 5272 River Road, Suite 300 Bethesda, MD 20816 301-657-7490 Fax: 301-657-2914 www.callforaction.org TDD/TTY: 301-657-9462 Call for Action, Inc. is a thirty-five year old international nonprofit network of consumer hotlines, which operates in conjunction with broadcast partners to educate and assist consumers and small businesses with consumer problems. Listed below are hotlines in major markets staffed with trained volunteers who offer advice and mediate complaints at no cost to consumers. Consumers in all other locations should use the network information above. WTAJ-TV Call For Action Altoona, PA 814-944-9336 WBZ-TV & Radio Call For Action Boston, MA 617-787-7070 WIVB-TV Call For Action Buffalo, NY 716-879-4900 WJW-TV Call For Action Cleveland, OH 216-578-0700 WJR Radio/WXYZ-TV Call For Action Detroit, MI 810-827-3362 WINK-TV Call For Action Fort Myers, FL 941-334-43570 KCTV-5 Call For Action Kansas City, MO 913-831-1919 WABC Radio Call For Action New York, NY 212-268-5626 KYW-TV & Newsradio Call For Action Philadelphia, PA 215-238-4500 KDKA Radio Call For Action Pittsburgh, PA 412-333-9370 KTVI-TV Call For Action St. Louis, MO 314-282-2222 KCBS Radio Call For Action San Francisco, CA 415-478-3300 WTVG-TV Call For Action Toledo, OH 419-534-3838 WTOP Newsradio Call For Action Washington, DC 301-652-4357 Legal Help Some sources of help listed in the Consumer Action Handbook will decline complaints from consumers who have already taken legal action. Small Claims Court Small claims courts resolve disputes involving claims for small amounts of money. 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, and some states do not permit them. 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. Even though the court is informal, the judge's decision is binding and must be followed. Enforcing a Decision If the party bringing the suit wins the case, the party who lost will often follow the court's decision without additional legal action. If losing parties will not obey the decision, the winning party can go back to court and ask for the order to be enforced. Depending on local laws, the court might 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. Or, 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. * Ask the clerk how to use the small claims court. * Request educational material to prepare you for small claims court. * Observe a small claims court session before taking your own case to court. Dispute Resolution Many small claims courts have dispute resolution programs to help citizens resolve their disputes before trial. These programs (e.g., mediation and conciliation) often simplify the process. In mediation, both people involved in the small claims dispute meet, and with the assistance of a neutral, third party mediator, discuss the situation and create their own agreement. For additional information about dispute resolution, write to: American Bar Association Section on Dispute Resolution 740 15th Street, NW Washington, DC 20005 202-662-1680. Finding a Lawyer * Ask friends and family for a reference. * Check with the Lawyer Referral Service of your state, city or county bar association listed in the telephone directory. Free Legal Help You might also be able to receive some free assistance from a law school clinical program where students, supervised by attorneys, handle a variety of legal matters. Some of these programs are open to all. Some limit their service to distinct groups, such as senior citizens or low-income persons. Contact a law school in your area to find out if such a program is available. If you cannot afford a lawyer, you may qualify for free legal help from a Legal Aid or Legal Services Corporation office. These offices generally offer legal assistance about such things as landlord-tenant relations, credit, utilities, family matters (e.g., divorce and adoption), foreclosure, home equity fraud, social security, welfare, unemployment, and workers' compensation. 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 help. Check the telephone directory to find the address and telephone number of the Legal Aid office nearest to you. For a directory of Legal Aid offices, contact: National Legal Aid and Defender Association 1625 K Street, NW, 8th Floor, Washington, DC 20006 202-452-0620 Fax 202-872-1031 E-mail:info@nlada.org Web site: www.nlada.org Congress created the Legal Services Corporation (LSC) in 1974 to provide financial support for legal assistance in noncriminal proceedings to low income consumers. 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, or call the Federal Consumer Information Center at 1-800-688-9889, or call the LSC Public Affairs Office at 202-336-8800. You can also write to: LSC Public Affairs 750 1st Street, NE, 10th Floor, Washington, DC 20002 202-336-8800 Web site: www.lsc.gov Fax: 202-336-8959. Why These Tips? Every year the Consumer Federation of America and the National Association of Consumer Agency Administrators survey government consumer protection offices to find out what transactions generate the most complaints. The most recent "winners" were new and used car sales, auto repair, home improvement, retail sales, credit and lending, mail order, and auto leasing. Here are suggestions to help you avoid problems during these and other consumer transactions. For addresses, telephone numbers, and web sites of government offices and other organizations listed in this section, please consult Part III: Consumer Assistance Directory, page 35. Car Repair, Buying, Leasing and Renting Two web sites with general information on many of the topics below are www.Edmunds.com and www.lectlaw.com. Consumerworld.org has links to many online resources. Click on shopping. Car Repair * 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. * When you take the car to the shop, describe the symptoms. Don't diagnose the problem. * Get more than one estimate in writing. * 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. * Don't sign a blank repair order. Make sure the repair order reflects what you want done before you sign it. * Is the repair covered under warranty? Follow the warranty instructions. * Ask the shop to keep the old parts for you. * Get all warranties in writing. * Some car manufacturers may 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 listed on page 66 for assistance. * 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 (page 70). Buying a Car: New or Used * Comparison shop. * Research options by reading Consumer Reports (www.consumerreports.org), Popular Mechanics (www.popularmechanics.com) and Motor Trend (www.motortrend.com) for performance, service, and safety ratings. Visit www.autoweb.com, www.autovantage.com, www.carpoint.com or www.autobytel.com to get quotes and purchase online. * Don't buy on impulse or because the salesperson is pressuring you to make a decision. * Read and understand every document you are asked to sign. Do not sign anything until you have made a final decision to buy. * Handle your car trade-in, purchase, and financing as three separate transactions to get the best deal on each. * Shop in advance for the best deal in financing at your credit union, bank or finance company. When you finance a car, the finance charge must be stated as an Annual Percentage Rate (APR). * Compare their Annual Percentage Rate and total finance charge with financing offered by the dealer. * Look at the total cost, not just the monthly payment. * Get a written price quote before you talk about your trade-in or dealer financing. * Don't take possession of the car until the financing paperwork is final. * Avoid high-profit, low-value extras sold by dealers, such as credit insurance, extended service contracts, auto club memberships, rustproofing and upholstery finishes. You do not have to purchase credit insurance in order to get a loan. See credit insurance, page 15. * Check the complaint records of car dealers with your state or local consumer protection agency or Better Business Bureau. * 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. * If the "warranty" box is checked off on the "Buyers Guide," ask for a copy and review it before you agree to buy the car. Buying a New Car * Evaluate your needs and financial situation. * Test drive several models before you make a final choice. * Find out the dealer's invoice price for the car and options. This is what the manufacturer charged the dealer for the car, not counting any rebates, allowances or other incentives that reduce the cost to the dealer. You can order this information for a small fee from consumer publications you can find at your local library. * Find out if the manufacturer is offering rebates that will lower the cost. * Get price quotes from several dealers. Find out if the amounts quoted are the prices before or after the rebates are deducted. * Inspect and test drive the vehicle you plan to buy. * Dealer finance managers may try to "flip" your purchase to a lease, ignoring the agreed upon sales price and the promised allowance on the trade-in. Examine dealer documents carefully to make sure you are buying, not leasing, the vehicle. Look for a balloon payment and "base mileage" disclosures that indicate a lease instead of a finance contract. Lemon Laws States with new car "lemon laws" allow 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: * contact your state or local consumer protection office (see page 70) for information on the laws in your state and the steps you must take to resolve the situation; * give the dealer a list of symptoms every time you bring it in for repairs; keep copies for your records; * get copies of the repair orders showing the reported problems, the repairs performed and the dates that the car was in the shop; and * contact the manufacturer, as well as the dealer, to report the problem (page 66). 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. Buying a Used Car * Find a car that the dealer covers with a warranty by checking the "Buyers Guide" posted on used cars. Select a car with at least a 30-day, 100% warranty where the dealer agrees to pay all repair costs for covered items. Avoid "As Is - No Warranty" cars. * Choose a safe car. Look for the current safety inspection sticker required by your state. Call the National Highway Traffic Safety Administration toll-free number (1-800-424-9393) to see if the manufacturer has recalled the car for safety defects. If it has been recalled, ask the dealer for proof that the defect has been repaired. * Check with your state motor vehicle department to research the car's title history. Make sure the car is not a "lemon buy-back," salvaged, or wrecked car. Get the written mileage disclosure statement required by federal law from any seller and make sure it matches the odometer reading on the car. Check the title to the car before you sign on the dotted line. * Look carefully at the car in full daylight. Take it for a test drive. Have the car inspected by YOUR mechanic, and pay for a diagnostic test. Ask the mechanic if the car would pass a safety inspection so that you can ask the dealer to make repairs before you buy the car. Check out the frequency of repair records for used cars in Consumer Reports magazine that you can find at the library. * Check prices at the library with the NADA Official Used Car Guide or used car pricing services. The Kelly Blue Book is on the web at www.kbb.com. * 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. Buying from a Private Individual Consider buying a used car from someone you know. You can get a reliable car for a lower price from the original owner who knows the car's service and repair record. But private sellers generally have less responsibility than dealers for defects or other problems. * Check with your state's motor vehicle department on what paperwork you will need to register a vehicle. * 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. * Ask the seller lots of detailed questions about the car. Car Leasing When you lease, you pay to drive someone else's vehicle. Although leasing can involve lower monthly payments than a loan, at lease end, you still have no ownership or equity in the car. The Consumer Leasing Act requires leasing companies to disclose standardized information to lease customers. In addition to the information disclosed on a standardized form, you should always ask for an itemization of the capitalized cost. Shop as if you're buying a car. Negotiate all the lease terms, including the price of the vehicle. Lowering the lease price will help reduce your monthly payments. Get all the terms in writing. Ask about standards for wear and use. Dings that you may regard as normal wear and tear may be billed as significant damage at the end of your lease. Ask the dealer to give you an example of the early termination charges, for example, if the car is totaled six months after the lease is signed. Expect to pay a substantial charge if you give the car up before the end of your lease. Most leases allow you to drive 12,000 to 15,000 miles a year. Expect a charge of 10 to 25 cents for each additional mile. Make sure the manufacturer's warranty covers the entire lease term and the number of miles you are likely to drive. Get every item of equipment listed on the lease. Otherwise, you could be charged for "missing" equipment at the end of the lease. Before you sign the deal, take a copy of the contract home and review it carefully away from any dealer pressure. Be alert for any charges that were not disclosed at the dealership, like conveyance, disposition, and preparation fees. Make sure you got credit for any trade-in. You do not have an automatic three-day right to cancel a lease after you sign it. When you finance a car, the finance charge must be stated as an Annual Percentage Rate (APR). There is no similar requirement for disclosing the cost of leases. "Lease rates" or "money factors" do not have standardized definitions and are not equivalent to an APR. Auto Service Contracts Dealers may try to sell you an auto service contract or "extended warranty" when you buy a new or used car. A warranty comes with a new car and is included in the original price of the vehicle. A service contract is sold separately and is a promise to pay for certain repairs or services. Service contracts are usually high-profit add-ons, costing hundreds to more than $1,000. The service contract may duplicate warranty coverage you get from the manufacturer or dealer. Ask these questions: * Does the dealer, the manufacturer, or an independent company back the service contract? * What happens to your coverage if the dealer or administrator goes out of business? * How are claims handled? * Can you choose among several service dealers or repair centers or do you have to return to one dealer? * Is your car covered if it breaks down on a trip or if you move out of town? * Do you need prior authorization for repair work? Common repairs for parts like brakes and clutches generally are not included in service contracts. Watch out for exclusions that deny coverage for any reason and other terms that could cost extra when repairs are made. Failure to keep up manufacturer's recommendations for routine maintenance can void the service contract. The contract may prohibit you from taking your car to an independent station for routine maintenance or performing the work yourself. Vehicle Repossessions When you borrow money to buy a car, you should know that: * The lender can repossess if you miss a payment or for any default (a violation of the contract). * The lender can repossess without advance notice. * 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. * The lender can sell the vehicle at auction. * 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. * 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 that give consumers additional rights. Contact your state or local consumer protection office for more information (see page 70). Renting a Car Federal law does not cover short-term car and truck rentals, but some state laws do. Contact your state or local consumer protection office (see page 70) for information or to report a complaint. * Collision Damage Waiver (CDW), in states that allow it, is an optional charge of $9 to $13 a day by the rental company. If you decline to pay extra for CDW, you accept responsibility for any damages. Rental companies also may sell loss of use and liability insurance. Check with your insurance agent in advance, so you do not duplicate coverage you already have. * If you pay by credit card, some rental companies will place a hold or freeze on your account during the rental period. * Carefully inspect the vehicle and its tires before renting. * Check refueling policies and charges. Home Home Improvement Most home improvement loans are secured by a mortgage on your home. It's better not to finance expensive credit insurance (see page 15) 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. * Plan ahead. Know what you want or need to have done before contacting a contractor. * Ask family and friends for recommendations. * Get at least three written estimates from contractors who have come to your home to evaluate what needs to be done. Be sure the estimates are based on the same work so that you can make meaningful comparisons. * Contact your local or state consumer agency and Better Business Bureau for information on contractors' licensing or registration requirements and complaint records. Some states require licensees to pass tests for competency and scrutinize licensees for financial solvency. Some states also have a fund to cover some financial losses that result from problems with licensed contractors. * Get references and talk to people for whom the contractor has done similar work. * Get the names of suppliers and ask if the contractor makes timely payments. * Contact your local building inspection department to check for permit and inspection requirements. Be wary if the contractor asks you to get the permit. It could mean the firm is not licensed. * Be sure your contractor has the required personal liability, property damage and worker's compensation insurance for his/her workers and subcontractors. Check with your insurance company to find out if you are covered for any injury or damage that might occur. * Insist on a complete written contract. Know exactly what work will be done, the quality of materials that will be used, warranties, timetables, the names of any subcontractors, the total price of the job and the schedule of payments. * You have cancellation rights (usually three business days) in home improvement contracts. Cancellation rights entitle you to get out of the contract without penalty, although you may be liable for any benefit received. You may be covered under both state and federal law. * Understand your payment options. Compare the cost of getting your own loan vs. contractor financing. * Try to limit your down payment. Find out if your state laws specify that only a certain percentage of the total cost may be made as a down payment. * Don't make final payment or sign an affidavit of final release until you are satisfied with the work and know that subcontractors and suppliers have been paid. State lien laws may allow unpaid subcontractors and/or unpaid suppliers to attach your home. * Check to see if state or local laws limit the amount by which the final bill can exceed the estimate, unless you have approved the increase. * Pay by credit card when you can. Under federal and state law, in most cases, you have the right to assert any claims or defenses you have against the seller of the goods or services against the credit card company. This generally means that if the goods or services are defective, you can refuse to pay the credit card company until the problem is corrected. * 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 out of line with other estimates; - pressures you for an immediate decision; - offers exceptionally long guarantees; - can only be reached by leaving messages with an answering service; - drives an unmarked van or has out-of-state plates on his/her vehicle; or - asks you to pay for the entire job up front. Home Financing When shopping for a mortgage to buy a house, educate yourself. * Read 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. * Know your lending institution. * Request information from the Federal Trade Commission (p. 114), the Federal Reserve Board (p. 114), and the Department of Housing and Urban Development (p. 110). * Visit the numerous web sites providing home buying information. Good gateways to these web sites are www.pueblo.gsa.gov and www.consumerworld.org. Click on housing and/or money. Home Equity Lending * Your first decision is whether you need a revolving line of credit or a one-time, closed end loan. A revolving line of credit enables the homeowner to choose when and how to borrow against the equity in the home. In a closed end loan, the homeowner receives a lump sum for a particular purpose, such as remodeling or tuition. * Although a home equity loan 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. * When comparing home equity loan offers, ask: -What is the minimum monthly payment? -Is there a maximum? -What is the annual percentage rate? -If the interest rate is adjustable, how much can it increase at one time? -Is there a maximum rate? * Ask about annual fees or transaction fees. -How large a credit line is available for a revolving line of credit? -How long is the term of the closed end loan? -What are the initiation fees for a closed end loan? Home Equity Fraud Some companies offering home equity loans are only interested in how much money they can make. To avoid becoming a victim of home equity fraud: * Apply for a home equity loan through a bank first. Bank loans are likely to cost less than loans offered by finance companies. * Be especially careful if responding to home solicitations. Many home salespeople are very skilled at persuading you to buy things you don't need or want. * Read everything before you sign it. * Keep a copy of everything you sign. Reverse Mortgages * If you own your home, a reverse mortgage loan will pay you in monthly advances or through a line of credit. Reverse mortgages convert home equity into cash with no repayment required for as long as borrowers live in their homes. Because you're drawing on the value of your home, there will be less equity for you and your heirs in the future. * Because of the complex nature of reverse mortgages, you may wish to seek the advice of an attorney, financial advisor or accountant before taking out this type of loan. * Interest rates on this type of loan may be higher and are charged on a compound basis. Application fees, points and closing costs also may be higher than other types of loans. Interest rates are not deductible on your income taxes until you repay the loan in full. There can be dramatic differences between reverse mortgages, so shop around. For more information about home equity lending, fraud or reverse mortgages contact your state consumer protection office (see page 70), the HUD Housing Counseling Clearinghouse at 1-888-466-3487, the FTC (p.114), or the National Consumer Law Center (p. 127). Investing Wisely Commodity Futures Only commodity brokers registered with the U.S. Commodity Futures Trading Commission (CFTC) can sell exchange-traded futures contracts and options on futures to the public lawfully. The National Futures Association (NFA), a CFTC-designated self-regulatory organization, has a toll-free hotline at 1-800-676-4NFA (4632) to verify registration and disciplinary history (including customer complaints) of futures/options firms and salespersons. From outside the United States, call 312-781-1410. See page 107 for how to contact CFTC and page 133 for NFA. Securities Before making a securities investment in stocks, bonds or mutual funds, you should get written financial information such as a prospectus or annual report. Select a broker or investment adviser who understands your financial objectives. Interview two or three to compare experience, education and professional background. Call the National Association of Securities Dealers, Inc. (NASD) toll-free on 1-800-289-9999 to find out about the disciplinary history of the broker. Call your state securities regulator (see page 95) to see if the investment and the salesperson are registered in your state, and to obtain any disciplinary information. * Understand how the broker or investment adviser is paid. What fees will you pay to purchase, sell or maintain the account? * If you have a problem with your broker or your account, talk with the firm's manager. If you can't resolve the problem, contact the U.S. Securities and Exchange Commission (see page 115) or your state securities regulator (see page 95). * Read magazines like Money, Kiplinger's Personal Finance and Fortune for investment advice. * Visit the numerous web sites providing personal finance information. Good gateways to these web sites are www.pueblo.gsa.gov and www.consumerworld.org. Click on money. Day Trading Unlike longer term investments for college or retirement, day trading seeks profits based on short-term fluctuations in the prices of stocks. You gamble on whether the price of a stock will rise or fall. Unless you are extremely knowledgeable about stocks and how the stock market works, you should not engage in day trading. For more information, call the U.S. Securities and Exchange Commission (see page 115) or your state securities regulator (see page 95). Utilities Electricity Most consumers get their electric service from a local private or public utility company or from a cooperative. The electric utility industry is restructuring, however, and in several states consumers will be able to select an electric supplier. Ask your state utility commission (page 99) for information about your own state. Ask: * Has our state restructured the electric industry? * What protection do I have against slamming (unauthorized switching of providers)? * Do you have consumer information to help me decide which service to purchase? * Do you license sellers of electricity? * Do you have a list of companies that can do business in our state? * Where do I complain about unfair marketing, sales, and service practices? If you have a choice in electric suppliers, ask: * How much will it cost? How long can I depend on this rate? * Who do I call if I have a problem with service? * What is your experience in providing reliable service? * Can I have a sample of a bill I might receive if I purchase electricity from your company? * What are the terms and conditions of service? * Do you have a local customer service office? * Do you have a privacy protection policy? Natural Gas Call your state utility commission (page 99) for a list of licensed suppliers. Ask companies: * Does your price include distribution and sales tax, and are there any other fees I will be charged that are not included in this price? * What are the terms and conditions of the agreement? * What information do I have to provide you to enroll me? Do you have a privacy policy? * Are there fees if I cancel my agreement before it is up? What are they? * What are the cancellation terms? * What is the length of the agreement, and what happens when it is over? * Do you have a local customer service office? Water The majority of consumers rely on local utilities to produce a safe and ample supply of water. Your local water agency is responsible for sending you an annual Consumer Confidence Report that should list the source of your water, what contaminants may be in the water, and information on the safety levels of contaminants and their effects on health. For more information call the Environmental Protection Agency's Safe Drinking Water Hotline at 1-800-426-4791 or visit EPA's web site at www.epa.gov/safewater. Telephone Services Now you can choose your long-distance carrier as well as your local toll and/or local phone service if there is competition in your area. An increasing number of companies sell optional services such as voice mail, call waiting, caller ID, paging, and wireless service. The National Consumers League maintains a web page to help you understand all of the charges on your phone bills and help you recognize fraud: www.ncl.net.org/phonebill/index.html. Calling Plans and Other Services Think first about how you use the telephone. * Where do you call most often? * What time of day or day of the week? * Do you want to get messages and if so, do you need voice mail or will an answering machine do? * Is it worth the cost for extra services like call waiting and caller ID? * Do you need a wireless phone or pager? With these answers, you can compare services and prices. You may want a package deal from one company or services from different companies. * Find out how companies' services work, including whether there are minimum use, time-of-day or distance requirements, flat monthly fees, or special plans. For example, wireless service may be cheaper than regular local service if you don't make many calls. * Get the information in writing and don't be pressured into an immediate decision. * Make sure you're comparing similar plans and features to determine the best rates. The Telecommunications Research and Action Center, a nonprofit group, offers information about residential and small business long-distance rates, and wireless service. Contact TRAC at P.O. Box 27279, Washington, DC 20005 or visit its web site at www.trac.org. Pre-paid Calling Cards Many drug and grocery stores sell pre-paid calling cards, and they are sold online, too. Before buying one, know the: * per-minute rate; * connection fee; * maintenance fee; and * expiration date. To avoid being slammed or crammed: * Read fine print on contest entry forms and coupons. You could be agreeing to switch your phone service or buy optional services. * Watch out for impostors. Companies may falsely claim to be your regular phone company and offer some type of discount plan or bill consolidation. They may also say they're taking a survey or pretend to be a government agency! * Warn family members and employees. Be sure that only those authorized talk to a company about telephone service. * Beware of "negative option notices." You'll be switched or signed up for optional services unless you say no. * Look at your telephone bill carefully every month - especially the pages that show the details. Fraudulent companies may switch your phone service or add new services to your bill as a result of your calling a pay-per-call service (see page 13). Resolving Slamming or Cramming Problems Under Federal Communications Commission rules, no telecommunications carrier can arrange to switch your service to its own without verifying that you agreed. If you've been slammed: * ask your local phone company to switch you back to your original company at no charge; * tell the original company you're switching back, and ask to be enrolled in your previous calling plan; and * contact the company that slammed you, whose name and number is on the bill, to exercise your rights regarding those charges. Generally, consumers can't be held liable for services they never agreed to buy. If you've been crammed: * call the number that appears on the page where the charges are detailed; * tell your local phone company, which provides the billing service, that you are disputing the charges and that you plan to deduct them from your bill payment; and * if the service provider insists that the charges are valid, contact your local or state consumer protection agency (see page 70) or state public utilities department (see page 99). Your phone service cannot be shut off for refusal to pay for unauthorized services. For more information about FCC rules, call 1-888-225-5322 or go to its web site at www.fcc.gov and click on Consumer Info. Pay-Per Call Services You can get everything from recorded sports scores to live psychic readings by calling 900 numbers that provide information or entertainment services. These numbers are sometimes also used to conduct surveys or contests, or for charitable fundraising. The "information provider," the company or organization you're calling, sets its own price for the service, and usually bills you through your local telephone company. Consumer Rights The federal Telephone Disclosure and Dispute Resolution Act requires advertisements for pay-per-call services to tell you: * the cost of the call. It may be a flat rate, a per-minute charge, or calculated on some other basis. The ad must also state the most you can be charged, if that can be determined, and any minimum or additional charges that you might have to pay; * the odds of winning or the factors that determine your chance of winning any sweepstakes, prizes or awards, and how you can enter any contest without calling the 900 number; * if it's a private company offering information about Federal programs and that the company is not endorsed, approved or authorized by the government; and * for services directed primarily to children under the age of 18, that they need their parents' consent to call the number. The rules bar advertising pay-per-call services directed to children under age 12 unless they are for legitimate educational services. If the charge for pay-per-call services will be more than $2, you should hear the following information when you dial the number: * The company or organization name and a description of services; * the cost of the call; * a notice that you can hang up without any charge within a certain time after a signal. You can't be charged for listening to the preamble; and * a warning to kids under 18 that they need their parents' consent to stay on the line. Toll-Free Numbers and Pay-Per-Call Generally, 800, 888, or 877 numbers are toll-free. However, charges for pay-per-call services through 800, 888, and 877 numbers are allowed if you: * sign a written contract that describes the service and how much it will cost, or; * agree verbally providing your credit card, charge account, debit or calling card number to pay for the charges. It's illegal to be connected to a 900 number pay-per-call service through a toll-free number, or for a pay-per-call service to call you back collect after you dialed a number that you thought was toll-free. Both the FCC and the FTC have rules concerning pay-per-call numbers. For contact information see pages 113 and 114. You have the right to dispute pay-per-call charges if: * you didn't make the call; * the amount you're billed is incorrect; * the services were misrepresented; * you are charged for calling a toll-free number without an agreement; or * a credit you're owed doesn't show up on the bill. Your local and long-distance telephone service cannot be disconnected if you refuse to pay for disputed pay-per-call charges. * Act promptly - you generally have 60 days to dispute the charges. If they appear on your phone bill, call the local or toll-free number that is listed on that page. * Note who you spoke to and what was said. * Follow up with a letter, keeping a copy that explains the problem and confirms your conversation. * Deduct the charges you are disputing and pay the rest of your bill by the due date. You should hear back from the company within 40 days and the problem should be resolved within 90 days. * If the charges appear on your credit card bill, follow the instructions on the bill for disputes. The information provider can pursue the matter through a collection agency or other legal means, including reporting the debt to a credit bureau. If you're contacted by a collection agency, explain in writing why you dispute the charges. You can also put a written explanation in your credit report. You may have other rights according to state law. Check with your state or local consumer protection agency (see page 70) or state utilities department (see page 99). If the dispute concerns information services provided through a number that may not be covered by the pay-per-call rules, such as foreign phone numbers, find out if you have any protection under state law. You may have to work out a payment agreement with your long-distance company to avoid losing your service. To prevent 900 number calls or foreign calls from being made, you can request "blocking" from your local phone company for free or for a reasonable charge. Foreign Phone Numbers Information and entertainment services can get around pay-per-call rules by using foreign phone numbers. Most foreign phone numbers require dialing 011 first, but some are dialed just like long-distance numbers in this country, beginning with 1 and then a three-digit area code such as 809 (the Dominican Republic) or 758 (St. Lucia). If you don't know if a number is domestic or foreign, call the operator and ask. Money and Credit Loans A number of Federal state and local agencies regulate banks and other financial institutions. Check the table of contents or the index for specific information about how to reach these offices by mail, fax, telephone, E-mail and through the Internet. For information about: mortgage loans see Home Financing (page 9); home improvement loans see Home Improvement (page 8); car loans see Buying A Car: New or Used (page 4). Payday Loans In a typical payday loan, a consumer would write a personal check for $115 to borrow $100 for two weeks (until payday). The annual percentage rate (APR) in this typical example is 390%. In 19 states payday loans are illegal. Avoid payday loans by: * asking for more time to pay a bill, * seeking a traditional small loan, or * using a cash advance on your credit card. For more information about payday loans, contact your state banking authority (p. 87), Consumer Federation of America (p. 126) or U.S. Public Interest Research Group (p. 128). Credit Insurance Creditors have an incentive to sell credit insurance because they are the primary beneficiaries. They make money from the sale of insurance and they make money when you pay the insurance premium as part of your loan. Four common abuses in selling credit insurance are: * involuntary or pressured sales, * overcharging, * incomplete coverage, and * post-claim ineligibility determination. For more information, contact the National Consumer Law Center (p. 127). Credit Access and Use Equal Rights 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: * ask about or consider your sex, race, national origin or religion; * 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); * ask about your plans to have or raise children; * refuse to consider reliable public assistance income or regularly received alimony or child support; or * 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: * have credit in your birth name, your first name and your spouse's last name, or your first name and a combined last name; * have a co-signer other than your spouse if one is necessary; * 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; * 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; * have accounts shared with your spouse reported in both your names; and * know how much it will cost to borrow money. The Truth in Lending Act requires a lender to inform you of the cost to borrow, so that you can compare the cost and terms of credit offered by various lenders. Credit Cards Choosing a Credit Card Consider and compare all terms, including the following, before you select a card: * Annual Percentage Rate (APR) -the cost of credit as a yearly rate. * 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. * 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. * Credit Card Insurance - is unnecessary because it duplicates protections you already have under law in case your credit card is lost or stolen. (See page 16, Using a Credit Card.) If you pay bills in full each month, the size of the annual fee or other fees will be more important. If you carry a balance, the APR and the method used to figure your balance are key. * Get all terms and fees in writing, including whether a deposit is required. * Apply directly to the card issuer. Don't give money to a company that offers to get you a credit card for a fee. You may not get a card or your money back. * Beware of "credit cards" that only allow you to buy from their own catalogs. * Avoid companies that promise instant credit or guarantee you a credit card "even if you have bad credit history." No one can guarantee you credit in advance. * 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 no matter how well you handle this account, your payment history on your past debts still will be taken into consideration when you apply for credit, employment or housing. Using a Credit Card 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. 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. 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: * billing errors; * unauthorized use of your account; * goods or services charged to your account but not received or not provided as promised; and * charges for which you request an explanation or written proof of purchase. Using a Debit or Check Card Using an Automated Teller Machine (ATM) or debit card and a personal identification number (PIN), consumers can withdraw cash, make deposits, or transfer funds between accounts and pay for retail purchases. Although a debit card looks like a credit card, the money for the purchase is transferred immediately from your bank account to the store's account. Some ATMs charge a fee if you are not a member of their network or are making a transaction at a remote location. ATMs must disclose the fee on the terminal screen or on a sign next to the screen. Purchases made with a debit card are handled in one of two ways: you enter your personal identification number or you sign for the purchase. Ask for a debit card that must be used with a PIN to make it harder for thieves to use your lost or stolen cards or account numbers. Keep your PIN a secret. Don't write your PIN on the card or on a slip of paper kept with your card. Take your ATM receipt after completing a transaction. Reconcile ATM receipts with bank statements promptly. When you use a debit card for a point-of-sale purchase, these purchases will be shown on your periodic statement from your bank account. If there is an error on your account, contact the issuer of the card (for example, the oil company) at the address or phone number the company provided. When you use an electronic funds transfer, federal law does not give you the right to stop payment. You must resolve the problem with the seller. Stored-value cards contain cash value stored electronically on the card itself. Stored-value cards and the transactions you make using them may not be covered by the Electronic Funds Transfer Act, which means you may not be covered for loss or misuse of the card. Protect Your Credit and Debit/Check Card Rights * 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.) * Send your letter to the address provided on the bill; do not send the letter with your payment. * Be specific. 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. * 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. Debit/Check Cards Report a lost or stolen ATM or debit/check card to the issuer immediately. * If you report an ATM card missing before it's used without your permission, you are not responsible for any unauthorized withdrawals. * Federal regulations limit your liability to $50 if you report the loss within two business days after you realize your card is missing, and to $500 if you report the loss between 2 and 60 days. * Under Federal law you could lose all the money in your bank account and the unused portion of your line of credit established for overdrafts if you fail to report an unauthorized transfer or withdrawal within 60 days after your bank statement is mailed to you. * Self-imposed industry rules limit your liability to zero if you report the loss within two business days, and to $50 if you report it more than two business days after realizing your card is missing. Protect Your Credit Report The Fair Credit Reporting Act controls how your credit history is kept, used and shared among lenders. It is designed to promote accuracy and ensure the privacy of the information used in credit reports. The three major national credit bureaus have credit files on millions of consumers nationwide. Their toll-free numbers are: Equifax 1-800-685-1111 Experian 1-800-682-7654 TransUnion 1-800-916-8800 Anyone who takes action against you in response to a report supplied by a credit reporting agency (CRA) -such as denying your application for credit, insurance, or employment- must give you the name, address, and telephone number of the CRA that provided the report. * You have a right to know what is in your credit report, including medical information and, usually, the sources of the information. Make sure your report is accurate. * Get your report for free if a company takes adverse action against you based on the report and you request your report within 60 days of receiving the notice of the action. * Request one free report a year if you can prove that you are unemployed and plan to look for a job within 60 days, if you are on welfare, or if your report is inaccurate because of fraud. Otherwise a CRA may charge you up to $8 for a copy of your report. If you find inaccurate or incomplete information in your report: * contact both the CRA and the company that provided the information to the CRA. * tell the CRA in writing what information you believe is inaccurate. The information provider must investigate and report the results to the CRA. If the information is incorrect, it must notify all nationwide CRAs to also correct your file. * if the reinvestigation does not solve your dispute with the company, ask that your statement of the dispute be included in your file. A notice of your dispute must be included anytime the CRA reports the item. Who Has Access to My Report? An employer or a prospective employer can only get your credit report if you give written consent. Creditors, employers, or insurers cannot get a report that includes medical information without your approval. Only people with a legitimate business need can get a copy of your report. Negative Information A CRA can report negative information for seven years, and bankruptcy information for ten years. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. When Your Debt is Out of Control - Credit Counseling Counseling services provide assistance to individuals having difficulty budgeting their money and/or meeting necessary monthly expenses. Many organizations, including credit unions, cooperative extension services, family service centers and religious organizations, offer free or low-cost credit counseling. The National Foundation for Consumer Credit (NFCC) has 1,400 members that provide money management techniques, debt payment plans and educational programs to help consumers learn to budget and use credit wisely. Many of its members are locally managed, nonprofit agencies operating under the name Consumer Credit Counseling Service (CCCS). To locate the nearest NFCC member, call toll-free, 24 hours a day, 1-800-388-2227 or visit its web site at www.nfcc.org. Myvesta.org is the nation's first, nonprofit, Internet-based debt counseling service. It assists families and individuals with debt, credit, money and financial problems through its web site at www.myvesta.org, as well as through one-on-one counseling at 1-800-680-DEBT. 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 is someone hired to collect money owed by you. A debt collector may not: * 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; * 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; * contact your friends, relatives, employer or others, except to find out where you live and work, or tell such people that you owe money; * harass you by, for example, threats of harm to you or your reputation, use of profane language or repeated telephone calls; * make any false statement, including that you will be arrested; or * threaten to have money deducted from your paycheck or to sue you, unless the collection agency or creditor intends to do so and it is legal. If you are contacted by a debt collector, you have a right to a written notice, sent within 5 days after you are first contacted, telling you the amount owed, the name of the creditor, and 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. To file a complaint, contact your state or local consumer protection agency (see page 70) and the FTC (see page 114). Credit Repair Credit repair companies advertise that they can erase bad credit and create a new credit identity legally, all for a hefty fee. Don't believe it. No one can legally remove accurate and timely negative information from a credit report. No credit repair company can do anything you can't do for yourself for free. Only time, hard work, and a personal debt repayment plan will improve your credit report. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed promised services. They must: * provide a copy of the "Consumer Credit File Rights Under State and Federal Law" before you sign a contract; * give you a written contract that spells out your rights and obligations; and * give you three days to cancel without paying any fees. Some credit repair companies promise to help you establish a whole new credit identity. You can be prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit with false information. It is a federal crime to make false statements on a loan or credit application, to misrepresent your social security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretences. Your state may have a law strictly regulating credit repair companies. Contact your local consumer affairs office and state attorney general (see page 70), or the Federal Trade Commission (see page 114) if you have lost money to credit repair scams. The National Fraud Information Center accepts consumer complaints about telemarketing and Internet credit repair offers at 1-800-876-7060. Insurance When buying insurance of any kind - car, homeowners, renters, life, fire, flood - shop carefully. Check with your state's insurance department (page 91) to make sure the company is reputable and financially strong. See page 20 for health care coverage. * Make sure the insurance company is licensed and covered by the state's guaranty fund, which pays claims in case of default. * Find out how the insurer's creditworthiness is rated by agencies such as Standard & Poor's, A.M. Best Co. or Moody's Investors Services. Most public libraries have copies of these reports. * Make sure you receive a written policy within 60 days after you paid your first premium. This ensures that the agent forwarded the premium to the insurance company. For information, contact American Council of Life Insurers (page 129), Insurance Information Institute (page 132), Consumer Federation of America (page 126) and National Association of Insurance Commissioners (page 132). Visit these web sites: www.pueblo.gsa.gov, insure.com and consumerworld.org (click on money). To avoid fraud: * Be wary about buying insurance from door-to-door or telephone sales people. * Be wary if, after any kind of accident, a stranger contacts you to offer "quick cash" or to recommend a particular medical clinic, doctor or attorney. Report such contact to your police department. * Protect your insurance identification numbers as you would your credit card numbers. * Carry a disposable camera in your glove compartment. If you are in an accident, take as many pictures as possible of the damage and of all the people involved. Get any passengers' names and telephone numbers along with the driver's license. If you suspect fraud, call the National Insurance Crime Bureau's hotline at (800) TEL-NICB (835-6422). For more information, check out www. insurancefraud.org. Health Care Most consumers have health care coverage from their employer, others from government programs including Medicare, Medicaid, or the Veterans Administration. Even those who have insurance have to pay for some services such as prescription drugs or care from a specialist. Some people who are not insured have to pay for all of their own care. * Managed care plans are run by health maintenance organizations (HMOs) or preferred provider organizations (PPOs). Ask your state insurance department (page 91) for information to help compare plans and know how to complain. * Medicare beneficiaries can choose a Medicare HMO. The Health Care Financing Administration (HCFA) offers Medicare Compare, an online computer database at www.medicare.gov. You can use this service to compare HMO benefits in your area. For other information about Medicare, call 1-800 MEDICARE. * For information about nursing homes and other elder care services in your state, call the ElderCare Locator (page 109). * If you do not have insurance, look in your phone book under Medicaid, Social Services, Medical Assistance, Human Services, or Community Service. Or call 1-800-633-4227 to find the right office in your state. Choosing a Doctor If you are part of a managed care plan, you will be given a list of providers from which to choose. You can also "go outside of the plan," but you may have to pay a portion or all of the costs. * Talk to friends and associates for recommendations. * State medical and other professional societies often provide lists of providers who have been licensed or certified in your state. Check with your state or local occupational and professional licensing board (page 70) about licensing of doctors, dentists, and other providers. It can also provide information about how to complain. Choosing a Managed Care Plan If you have a choice among plans, ask: * Do I have the right to go to any doctor, hospital or clinic I choose? * Does the plan cover home care or nursing home care? * Can I go to any pharmacy? * What is the deductible? Are there any co-payments? * Are specialists, including dentists, covered? * Does the plan cover all medications my physician may prescribe? * What do I do if I want to complain about the service or a doctor? Is private arbitration mandatory? The National Committee for Quality Assurance (NCQA) evaluates and accredits HMOs. It looks at quality, whether the HMO provides appropriate care, the credentials of doctors and other providers, member rights and responsibilities, preventive care services, and medical record keeping. * To check if your HMO has received NCQA accreditation, call 1-888-275-7585. To find out what plans have been accredited in your state and to get a report card on your plan, go to the NCQA web site at www.ncqa.org. Another organization, the Joint Commission on Accreditation of Healthcare Organizations accredits hospitals, nursing homes, and other health care organizations. * File complaints online at www.jcaho.org or call 1-800-994-6610 for information. Information sources For information to complement, not replace, what you receive from your physician, pharmacist, or other professional, here are some helpful web sites: www.pueblo.gsa.gov, www.healthfinder.gov, www.ama-assn.org,www.nejm.org, www.mayohealth.org, www.intelihealth.com and www.ihealthcoalition.org. You can also get information from the U.S. Department of Health and Human Services (page 109) or your state health department. Shopping from Home You can order all kinds of products and services from companies in other states, or even in other countries, from the comfort of your own home. But use caution and know your consumer rights when you do business long-distance. Consumer Rights When you order something by mail, phone, fax or computer, the Federal Trade Commission Mail or Telephone Order Merchandise Trade Regulation Rule requires the company to: * ship the merchandise within the time promised or, if no specific delivery time was stated, within 30 days of receiving your order; * notify you if the shipment cannot be made on time and give you the choice of waiting longer or getting a refund; and * cancel your order and return your payment (or credit your account if you charged the purchase) if the new shipping date cannot be met, unless you agree to another delay. If you applied for a charge account with the merchant at the same time that you placed your order, the company has an extra 20 days to ship the merchandise to allow time for processing your application. Exceptions The rule only applies to the first shipment of magazine subscriptions and other merchandise that comes repeatedly. And it does not apply to orders for services (for example, photo finishing), sales of seeds and growing plants, collect-on-delivery (C.O.D.) orders, and transactions that are covered by the FTC Negative Option Rule, such as book and music clubs. Additional Protections There may also be laws or regulations in your state that apply to orders by mail, telephone, fax or computer. To find out, contact your state or local consumer protection agency. Telemarketing The FTC's Telemarketing Sales Rule requires telemarketers to: * disclose the total cost and other terms of sale before you make any payment for the goods or services; * tell you if they don't allow refunds, exchanges or cancellations; * provide the odds of winning a prize, inform you that no purchase is necessary, and tell you how to get instructions for entering without buying anything; and * provide the seller's name, disclose that it's a sales call, and tell you exactly what they're trying to sell. It's illegal for telemarketers to: * misrepresent what they're offering; * call before 8 a.m. or after 9 p.m.; * threaten, intimidate or harass consumers, or call again if you ask them not to; or * request advance payment to help repair your credit record, recover money you lost to other telemarketers, or help you get credit or loans. This FTC rule applies when you: * receive a call from a telemarketer in another state or country or * make a call to a company in another state or country in response to a mail solicitation. The FTC rule does not apply: * when you call to order from a catalog or in response to an ad on television or radio, or in a magazine or newspaper (with some exceptions); * to solicitations you received by fax or computer for goods or services; or * to certain types of businesses, including nonprofit organizations, investment brokers and advisors, banks, and financial institutions Additional Protections Under the Telephone Consumer Protection Act, Federal Communications Commission rules limit telemarketing calls to between 8 a.m. and 9 p.m. and require telemarketers to maintain "Do Not Call" lists of consumers who have asked not to be called again. FCC rules also prohibit: * automatic dialing machines and prerecorded voice message devices from calling emergency phone lines, guest or patient rooms in a hospital, nursing home or similar establishment, paging or cellular phone numbers or any service for which the person called will be charged for the call; * prerecorded voice message devices from calling residential phone lines unless it's an emergency or the person being called has agreed in advance; * unsolicited advertisements from being sent by fax to either a residence or a business; and * prerecorded calls using automatic dialing machines from tying up your phone line for more than 5 seconds (or 25 seconds depending on your local telephone exchange) after you hang up. These FCC rules apply no matter whether the calls are made within a state or between states. Some states have registration and other requirements for telemarketers who solicit their residents. Check with your state or local consumer protection agency (see page 70). Youth Peddling Selling themselves as programs to help youth, for-profit companies are scamming consumers who believe they are giving money to legitimate charities. The enterprises recruit young people to sell price-inflated goods because consumers tend to show good will toward young salespersons and anti-drug and youth empowerment programs. (See page 24, charities.) * If you are solicited by youth selling items like candy and magazine subscriptions door-to-door, ask for identification verifying the name, address and purpose. * If the representative can't provide the information, ask them to leave. Report suspicious people to your local police department and or contact your state labor department (child labor division). * If you are satisfied with the information provided, don't feel pressured to make a purchase or contribution. Cancellation Rights * State and federal laws may give you the right to cancel purchases made in your home of $25.00 or more. * The salesperson must tell you about your right to cancel the sale and give you two dated copies of a cancellation form showing the salesperson's name and address and explaining your right to cancel. * To cancel, sign and date one of the cancellation notices provided to you. Send the notice by certified mail before midnight of the 3rd business day following the sale; Saturday is considered a business day but Sunday and legally recognized holidays are not. Keep the other notice of cancellation for your records. * If you were not provided with a notice of cancellation form at the time of the sale, your three days don't start running until after you receive such notice from the seller. You may also write your own letter to cancel the order. * Once you have canceled you are entitled to a refund within 10 days. The seller must also notify you of the date for product pick up, and return any trade-ins given as down payment. * Once you have canceled, the seller must pick up the product within 20 days. If the seller does not pick up the product or provide a refund, you can keep the product until the seller complies, without any payment obligation. * If you paid by credit card, canceled the contract within 3 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. No Cancellation If.... * You may not cancel the sale if you signed any documents waiving your right to cancel. * You may not be able to cancel the sale if you wait too long before you cancel. * You may not be able to cancel the sale if the product can't be returned in substantially the same condition in which you received it. Tips for Shopping Smart and Avoiding Fraud The most common problems you might encounter when shopping on the phone, online or by mail order are delayed delivery, out of stock items, incorrect items shipped, damaged items received and price changes. To avoid these problems: * Know who you are dealing with. If the company isn't familiar to you, check it out with your local or state consumer protection agency (see page70) and the Better Business Bureau (see page 117). * Keep records. Write down the company name, mailing address, web site, or e-mail address, phone number, description of what you ordered, date, amount you paid, how you paid (check, money order, charge, etc.) and how you delivered your payment (mail, courier service, provided credit card number on phone or online, etc.). * Note the delivery period. Keep any advertisements or materials that show a specific delivery time, or write the delivery time in your records if one was promised. * Keep track of your order. If it's late, it is your choice whether to wait longer or cancel. If you cancel, your money must be refunded within 7 days (or your account must be credited within one billing cycle if you charged the order). The company can't substitute a merchandise credit for a refund. * When you use a credit card to pay for products or services, you have a right to dispute the charges if the items were not delivered or were misrepresented. See page 18. * Never send cash - you won't have any proof of payment. * Don't act immediately. High pressure sales tactics are a danger sign of fraud. Get all the information and consider it carefully. * Don't believe promises of easy money. No one can legitimately claim you'll make big earnings from business opportunities, promise high returns on investments, or guarantee that you will win a lottery or sweepstakes. * Be careful what information you provide. Give your credit card, debit card, or bank account number only if you're paying for a purchase using that account -never to verify your identity. Don't provide your social security number unless you're applying for credit or employment. Using your personal information, crooks can steal from you and impersonate you to steal from others. (See privacy, page 27). * Do not do business with an unfamiliar company whose only address is a post office box. The company may be nothing but a mail drop that will give you little or nothing for your money and will be difficult or impossible to locate if you later have a complaint. * Be wary of requests to send your payment by private courier or wire service. The company may be trying to avoid detection by postal inspectors or to get your money before you have a chance to change your mind. * Do not be taken in by lotteries, pyramid schemes, multi-level marketing schemes, or companies that ask for payment in advance, especially for employment referrals, credit repair, or providing a loan or credit card. * Beware of recovery services. These scams try to take your last dime by falsely offering to get money back that you lost to a fraudulent scheme - for a fee. There is no charge for filing a complaint with a government agency. * Walk away or hang up when you hear the following: "Sign now or the price will increase;" "You have been specially selected...;" "You have won...;" "All we need is your credit card (or bank account) number-for identification only;" "All you pay for is postage, handling, taxes...;" "Make money in your spare time-guaranteed income...;" "We really need you to buy magazines (a water purifier, a vacation package, office products) from us because we can earn 15 extra credits...;" "I just happen to have some leftover material from a job down the street...;" "Be your own boss! Never work for anyone else again. Just send in $50 for your supplies and...;" "A new car! A trip to Hawaii! $2,500 in cash! Yours, absolutely free! Take a look at our...;" "Your special claim number entitles you to join our sweepstakes...;" or "We just happen to be in your area and have toner for your copy machine at a reduced price." If you can't resolve your problem by working directly with the company, contact your state or local consumer protection agency for assistance (page 70). Report possible violations of FTC rules to that agency at the address on page 114. If the order was placed by mail, report the problem to the U.S. Postal Inspection Service by calling 1-800-654-8896. While federal agencies don't usually act on individual complaints, this information helps them identify patterns of abuse and take appropriate action. Reporting Fraud Reporting fraud promptly improves your chances of recovery and helps law enforcement authorities stop scams before others are victimized. Start by contacting your state or local consumer agency for advice and assistance. Report suspected violations of FTC rules to the FTC Consumer Response Center, Washington, DC 20580, 1-877-FTC-HELP (382-4357)or go to the website at www.ftc.gov to get all of the details. For violations of FCC rules, send a letter, along with copies of bills, correspondence or other documentation, to FCC, Common Carrier Bureau, Consumer Complaints, Mail Stop 1600A2, Washington, DC 20554. For mail fraud call the Postal Crime Hotline at 1-800-654-8896. For advice about telemarketing fraud and to report it, contact the National Fraud Information Center operated by the National Consumers League, a nonprofit consumer organization. Call 1-800-876-7060 or visit the web site at www.fraud.org. Smart Shopping Online Here are some specific tips (in addition to those above) for buying online: * If the seller is unfamiliar, read more about the company, often found in a section on the website called "About Us." * See if the seller has any reliable endorsement logos or seals on its homepage, such as one from the Better Business Bureau. (Of course, this is only an indication of the seller's reputability, not a guarantee.) * To see how other consumers rated the shopping experience at many online stores, check BizRate. [www.bizrate.com] * Check the methods and prices for shipping. A low sale price may no longer be a bargain after adding on high shipping charges. * Read the seller's privacy policy so you understand how information about you may be used. "Opt-out" of additional mailings if you don't want to receive email or other offers. Making a Secure Purchase Some consumers are fearful about shopping online because they are afraid that their credit card number will be stolen. The chances that your credit card will be misused are very remote, particularly if you transmit your number to the merchant in a secure manner. Most merchants use secure web sites, where your personal information is encrypted or scrambled, so that it cannot be easily intercepted. Do not send your credit card number by email as opposed to a secure order form. Emails are not secure. You can tell if you are entering your personal information on a secure page of a web site if: * A notice pops up on the screen alerting you to that fact; * You see a closed lock or unbroken key in the bottom corner of your screen; or * The first letters of the Internet address of the page you are viewing change to "https". If you still do not feel comfortable providing your credit card number online, many sellers allow you to either call or fax it to them. Placing Your Order To help make sure you receive the right merchandise at the price you want, be sure to: * Understand if the product is new, used, or reconditioned. * Compare the price of the product you are considering at a variety of online stores by using several shopping "bots," such as MySimon [www.mysimon.com]. A list of popular shopping bots can be found on the shopping page of www.consumerworld.org. * Check if the product is in stock or how long a wait there is. * After entering your order, check that the total price, including shipping and any taxes, is correct. * Make sure that any special discounts offered or coupons used are properly deducted from your total before you finalize the order. * Print a copy of your order confirmation screen, and check your email for any further confirmation. Online Auctions and Private Sellers Many private sellers on the Internet offer items through auctions, online classified ads, newsgroups and chat rooms. Many state and federal consumer protection laws don't apply to private sales, and pursuing claims can be difficult, especially when you are in one part of the country and the seller is in another. Auction sites on the Internet have become very popular. However, you may have to be even more careful in choosing one so that you do not become a victim of fraud. Here are some questions to ask before buying at an auction: * What are the rules of the auction? * Can I cancel a bid? * Is the seller a business or a private individual? * How can I reach the seller if there is a problem? * Is the merchandise used? * Does the seller take credit cards? Check out the reputation of the seller, particularly if it is a private individual. Some auction sites rate sellers, so be sure to check their past selling history. Or contact the seller's local BBB or government consumer office. Use an escrow agent if you don't feel comfortable sending money for merchandise before you've seen it. Such an agent only passes on your money to the seller after you receive and are satisfied with your purchase. As in any auction, learn the value of the merchandise you are bidding on. That is the best way not to overbid, or to fall prey to an unscrupulous seller's use of "shills" to artificially raise the price. If You Have a Problem... In rare cases, the seller may have no intention of delivering the goods offered, may grossly misrepresent its products, or send you counterfeit goods such as pirated copies of software. In these cases of fraud, notify the National Fraud Information Center at www.fraud.org and the FTC at www.ftc.gov. For more information about shopping online, visit: www.safeshopping.org and www.ftc.gov/bcp/conline/pubs/online/payments.htm. Consumer Privacy Privacy is an important principle. As a consumer, you benefit when information about you is used to approve your credit application. On the other hand, you may not want to receive unsolicited telemarketing calls or mail. And you could be treated unfairly, or even become a victim of crime, if your personal information is inaccurate or misused. You have privacy rights for certain personal records such as your credit reports (see page 16), but many situations aren't covered by law. To address privacy concerns, some companies and industry groups have adopted voluntary policies. Look for those policies on sales literature, web sites, or forms companies ask you to fill out. If you don't see anything about how your personal information will be handled, ask. By doing business with companies whose privacy practices meet your approval, you can protect yourself from abuse and use your purchasing power to help promote good privacy policies. In addition to various federal privacy laws, many states have their own privacy laws concerning telemarketing, employment, using social security numbers, 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 (page 70) to find out where to get information about specific privacy rights. Tips for Protecting Your Privacy * Don't provide information that isn't required. For instance, most information requested on a warranty registration form isn't necessary for the warranty. But you may want to give your phone number so you can be contacted easily about product recalls. * Ask what information about you may be tracked and how it is used. Supermarket scan cards enable you to get special sale prices, but your purchasing history could also be sold to other companies. * Guard your financial account numbers. Only provide your credit card, charge card, debit card, calling card or bank account number if you're using that account to pay for a purchase or you're applying for credit. It isn't necessary to give that type of information for any other reason. * Screen your calls. You can use an answering machine to listen to a caller and decide whether you want to pick up. There are also optional telephone services that you can buy to accept calls only from certain numbers, or to see the name and number of the person calling you (Caller ID). Check with your local telephone company. * Keep your phone number private. You can buy a service to block others from using Caller ID to see your name and the number you're calling from. But be aware that this blocking may not work with every type of number you call. Ask your local phone company exactly how the service works. You can also get an unlisted or unpublished phone number for a fee. * Talk about privacy concerns with your children and other household members. Everyone should understand what information you feel is and is not appropriate to provide on the phone, while using a computer, and in other situations. * Don't allow your credit record to be checked except for legitimate reasons. A lender or employer can check your credit record. But, it's illegal for a business to check your record unless you're seeking financing. Too many inquiries can hurt your credit rating by making it appear that you are seeking too much credit. * Never give anyone your online password. Con artists may try to trick you into providing your password by pretending to be your online service provider in order to use your access, at your expense. Your service provider already has your password, and no one else should need it. * Be aware of "cookies" on the Internet. A web site can transfer a file, called a cookie, to the hard drive of your computer when you visit in order to track your activities on its site. This information is used for customer service or marketing, but you can usually specify you don't want to create a cookie. * Make sure it's safe before you provide financial information online. (See Online Shopping, page 25.) Health Privacy With health care information being stored and shared on computers, it is a good idea to be aware of who has your health information and how it is being used. * The Medical Information Bureau is a data bank used by insurance companies. Get a copy of your file to make sure the information it contains is correct by writing to the MIB, PO Box 105, Essex Station, Boston, MA 02112. The U.S. Department of Health and Human Services expects to take action to improve health privacy protections for consumers. For the latest information go to www.hhs.gov or: * Contact the Health Privacy Project, Institute for Health Care Research and Policy, Georgetown University Medical Center, 2233 Wisconsin Avenue, NW, Suite 525, Washington, DC 20007, 202-687-0880 www.healthprivacy.org. Travel Tips * Deal with reputable travel agents or tour companies. Ask if the business belongs to a professional association. Check with that group to see if the company is a member in good standing and if it participates in any program that protects you in case there are problems. Contact your state or local consumer protection agency (page 70) and the Better Business Bureau (page 114) to find out about the company's complaint history. * Make sure you understand the terms of the travel offer. Find out exactly what's included in the price and what isn't. * Ask about the cancellation policy and get all promises in writing. You may want to look into trip insurance for added protection. * Comparison shop. Beware of unreasonably cheap prices or free trips - you usually get what you pay for! (See Sweepstakes on page 24.) * Be careful if you're paying for travel in advance. It's not unusual to make a deposit or even pay in full for travel services before the trip. The safest way to pay may be by credit card because of your right to dispute the charges if the services were misrepresented or never delivered. Don't be pressured into making a hasty decision by claims that you have to act now! You might pay processing or other fees upfront - and then find that a con artist has simply pocketed your money and left you high and dry. * In some states, certain types of travel sellers have to be registered and insured, and advance payments for travel must be placed in an escrow account until services are provided. Prizes or "free" gifts may also be regulated. Resolving Complaints * Contact your state or local consumer protection agency (page 70) to find out about any laws that might protect you and to file complaints related to travel agents, and train or bus travel. * The American Society of Travel Agents (page 130) helps resolve disputes with member agents. * For problems with airlines, call, write or email the Aviation Consumer Protection Division of the Department of Transportation (page 112). There is no universal three-day cooling off period. Do not be misled into thinking that you have an automatic three-day or other cancellation period for all purchases. Only a few types of contracts give you a right to cancel. Federal law, for example, gives you the right to cancel certain door-to-door contracts within three days, and some states provide for cancellation periods for such things as health and dating club contracts. Check with your state and local consumer office (see page 70) for more information about cancellation rights. FCIC is always updating the information in the Handbook and on our web site as well. Monthly Consumer Focus articles feature timely information on a variety of topics, new links are being added, and In the News helps keep you up-to-date. Visit us at www.pueblo.gsa.gov. Do not give out your credit card number, checking or savings account number, Social Security number, or other personal information to any company you do not know. See Identity Theft, page 27. Do not be misled into thinking that you have an automatic three-day cancellation period for all purchases. You can only legally cancel a few types of contracts. Credit and Sublease Brokers These are con artists who prey on people who have bad credit and who cannot get car loans. "Credit brokers" promise to get a loan for you in exchange for a high fee. In many cases, the "broker" takes the fee and disappears. "Sublease brokers" charge a fee to arrange for you a "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. Avoiding Investment Fraud Deceptive or fraudulent sales pitches for investments often misrepresent or leave out facts in order to promote fantastic profits with little risk. No financial investment is risk-free and a high rate of return means greater risk. Beware if a salesperson: * Tells you to borrow money on a credit card, take out a mortgage on your home, or cash in your IRA to invest in commodities; * Pressures you to invest immediately, and then sends an overnight courier service to pick up your check and give you forms to sign; * Promises quick profits; * Downplays the risk disclosure documents and statement, which are required by Federal law, as just a formality; * Tells you to write false information on your account form, for example, to overstate your income; * Sends information that is not printed on letterhead stationery or has typographical errors; * Does not send your money promptly when you order the broker to close a trade and send you your balance; * Offers to share inside information; or * Uses words like "guarantee," "high return," "limited offer," or "as safe as a C.D." Don't be Slammed or Crammed Slamming is the illegal act of switching your long distance, local toll or local telephone company without your permission. On your phone bill, you may find: * a different company name or * phone charges that are much higher than normal. Cramming is when companies add charges to your telephone bill for optional services you never agreed to such as voice mail or club memberships. You may not notice these monthly charges because they're relatively small - $5 to $30 dollars - and look like your regular phone charges. Pay-Per-Call charges - Protect Yourself * Don't make the call if you don't know the cost. * Be wary of promises for free gifts or prizes. * Find out how free minutes really work. * Watch out for phony offers of financial assistance. * Don't stay on hold, you'll be charged for that time. * Don't respond to messages to call pay-per-call numbers. Fraudulent pay-per-call services may leave messages pretending to be calling about a family emergency, a prize or a debt. * If you use a pay-per-call service, look for new unauthorized monthly charges on your phone bill. (See page 12, cramming.) Here's an overview of which agencies regulate which financial institutions: State chartered banks that are not members of the Federal Reserve System are regulated by the Federal Deposit Insurance Corporation. See page 113. State chartered banks and trust companies that are members of the Federal Reserve System are regulated by the Federal Reserve System. See page 114. Banks with national in the name or N.A. after the name are regulated by the Comptroller of the Currency, U.S. Department of the Treasury. See page 111. Federally chartered credit unions are regulated by the National Credit Union Administration. See page 115. Federal savings and loans and Federal savings banks are regulated by the Office of Thrift Supervision. See page 112. State chartered banks are regulated by State banking authorities. See page 87. Credit Insurance It is almost always better to insure yourself against income loss or death by purchasing regular life or disability insurance instead of credit insurance. When you finance cars, consumer goods, mobile home sales, and residential mortgages, salespeople may try to sell you four types of credit insurance: * credit property: insures against damage or loss to whatever item secures the loan * credit life: pays the loan balance in case of death * credit disability/accident and health: temporarily makes loan payments in case of accident or ill health * involuntary loss of income: temporarily makes loan payments if you're laid off If you want to be removed from lists for unsolicited credit and insurance offers, ask the credit reporting agency (see page 18 for the phone numbers of national credit bureaus) for a form to complete that will permanently keep your name off the lists drawn from credit file information. * See page 25 for Reducing Unwanted Mail, Telephone, and Email Solicitations. Preventing Credit and Debit/Check Card Fraud * Sign cards when they arrive, so no one can forge your signature on the cards and use them. * Keep a record of your card numbers and expiration dates and the phone number of the card issuer in a safe place. If your card is stolen or missing, notify the card company immediately. * 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. * Destroy carbons and incorrect charge slips. * Draw a line through blank spaces on charge slips. Do not sign a blank charge slip. * Keep copies of all sales slips. Open credit card bills promptly and compare the sales slips with the charges on your bill. * Report billing errors and unauthorized charges to your credit card company right away. Using a computer to buy online through the Internet is fast becoming a convenient way to shop for many consumers. As with making a purchase at a conventional store, on the phone or by mail, you will want to fully understand the seller's policies and check out its reputation before you buy. While federal and state laws may apply if a consumer in the U.S. deals by phone, mail or computer with a company in another country, it may be difficult to pursue claims. Be especially careful in cross-border transactions. It is illegal to use the mail as part of a plan based on fraud or misrepresentation to steal money. This includes: * sending solicitations to consumers; * receiving consumers' payments; * transmitting information from one company location to another; * using private or commercial interstate delivery services, including to send lottery solicitations or tickets across state lines or from another country into the United States; and * sending mail that looks like it's from a government agency when it isn't, or that looks like an invoice when nothing was ordered, unless it clearly states that it is not a bill but only a sales solicitation. For more information, contact the U.S. Postal Service, page 116. CHARITIES * Give only to charities you know. Some con artists use names similar to well-known charities or pretend to be raising money for state or local law enforcement agencies. * Ask for written information, including how much of the money raised is actually used for charitable purposes. * Check with your secretary of state to find out if a charity is registered to solicit in your state. (See page 22, youth peddling.) Sweepstakes Don't pay if it's free or you have won. It's another danger sign of fraud if you are asked to pay a fee to get something free, claim a prize or win a vacation. If you really won a sweepstakes, you pay taxes directly to the government, not through the company. Reducing Unwanted Mail, Telephone or Online Solicitations * Tell telemarketers who call you to put you on their "Do Not Call" lists and note the call. If a telemarketer calls again, note of the date and report it to the proper authorities. * Contact the Direct Marketing Association, which operates three free services to remove consumers from DMA members' telemarketing lists, mail lists and email lists. See DMA on page 131. * Tell companies you do business with, including those online, to remove your name from customer lists that they may rent or sell to other marketers. * Look for information about how to opt out of marketing lists on companies' sales materials, order forms and web sites. * Tell all marketers not to contact you again. Children Online Commercial web sites must now obtain parental consent before collecting, using, or disclosing personal information from children under 13. These are new rules that are part of the 1998 Children's Online Privacy Protection Act. For more information, contact the FTC (see page 114) or click on Kids Privacy at www.ftc.gov Identity Theft Be especially careful with sensitive personal information. Your social security number should not be requested except by an employer, government agency, lender or credit bureau. If that information falls into the wrong hands, it can be used by someone to impersonate you in order to steal from your accounts or to steal from others in your name. Many states no longer use social security numbers on drivers' licenses. Some states offer random numbers as alternatives, and bar merchants from asking consumers to put their social security numbers on checks or credit card slips. Check your credit report regularly. Once a year should be enough, but you may want to check it more frequently if you believe that someone else has impersonated you in order to get credit or other benefits in your name. See Protect Your Credit Report on page 18. The Congress of the United States asked the Federal Trade Commission to provide information to consumers about identity theft and to take complaints from those whose identities have been stolen. If you've been a victim of identity theft, you can call the FTC's Identity Theft Hotline at 1-877-IDTHEFT (438-4338), or file a complaint online at www.consumer.gov/idtheft. The FTC puts your information into a secure consumer fraud database and may, in appropriate instances, share it with other law enforcement agencies and private entities, including any companies about which you may complain. How Financial Service Companies Share Your Personal Information Under Federal law banks, insurance companies and stockbrokers may now combine businesses. This means they can share your information with each other. They are also allowed to share your information with third parties that provide marketing services for them or for joint ventures with other financial institutions. You can: * "Opt out," or ask that your personal information not be shared with unaffiliated third parties. Even if you don't opt out, the actual account numbers for bank or credit card accounts may not be shared with unaffiliated third parties for marketing. Directory and Other Operator Services Consumers who are deaf or hard of hearing, or who have a speech impairment, and use a text telephone (TTY) may receive operator and directory assistance for calls by calling toll free to 1-800-855-1155. Telephone companies may provide additional services for TTY users; these services will be listed in the introductory pages of local telephone directories. For a copy of the U.S. Government TTY Directory, please visit www.gsa.gov/frs/ on the World Wide Web or write to the address below: Federal Consumer Information Center, Department TTY, Pueblo CO 81009. Relay Services Telecommunications relay services are a way to link telephone conversations between individuals who use standard, voice telephones and individuals who use TTYs. Relay services allow hearing and speaking individuals to call TTY numbers and allow individuals with hearing or speech impairments to call voice telephone numbers. Calls can be made from either type of telephone to the other type through the relay service. Local Relay Services States provide for relay services for local and long-distance calls. Please consult the local telephone directory for information on the use, fees (if any), services, and dialing instructions of the relay service for that area. Federal Relay Service (FRS) The FRS, a program of the U.S. General Services Administration, provides access to TTY users who wish to conduct official business nationwide with and within the Federal Government. The toll-free number is 1-800-877-8339. For more information on relay communications or to obtain a brochure on using the FRS, please call toll free to 1-800-877-0996. Recording for the Blind & Dyslexic Recording for the Blind & Dyslexic, celebrating more than fifty years since its founding, is the only national nonprofit, volunteer-driven organization that provides recorded and computerized textbooks at all academic levels to people who cannot read standard print effectively because of a visual impairment, learning disability or other physical disability. RFB&D operates 33 recording studios and offices across the country. Our 80,000 volume library contains a broad selection of titles, from literature and history to math and the sciences, at all academic levels, from kindergarten through postgraduate and professional. RFB&D offers individual and institutional memberships, scholarship programs and a custom recording service. The cost of an individual membership is $25 per year, plus a one time $50 registration fee. Fees for institutional membership range from $300 to $800 annually depending on the level of membership and the number of books chosen. RFB&D also offers for nonprofit sale computer and professional books on disk, specially-adapted tape players and accessories. For more information or to request an application, call, write or visit the website: Recording for the Blind & Dyslexic 20 Roszel Road Princeton, NJ 08540 Toll free: 1-800-221-4792 Web site: www.rfbd.org National Library Service for the Blind and Physically Handicapped (NLS), Library of Congress The National Library Service for the Blind and Physically Handicapped (NLS), Library of Congress, provides the free loan of recorded and braille books and magazines, music scores in braille and large print, and specially designed playback equipment to residents of the United States who are unable to read or use standard print materials because of visual or physical impairment. NLS administers the program nationally while direct service to eligible individuals and institutions is the responsibility of cooperating libraries in the various states, the District of Columbia, Puerto Rico, Guam and the Virgin Islands. Service is also extended to eligible American citizens residing abroad. Information about any aspect of the NLS/BPH free library service, including application forms and addresses of cooperating libraries may be obtained by contacting: National Library Service for the Blind and Physically Handicapped (NLS) Library of Congress Washington, DC 20542 202-707-5100 Toll free: 1-800-424-8567 E-mail: nls@loc.gov Web site: lcweb.loc.gov/nls Part II After You Buy Recalls Several Federal government agencies enforce product safety regulations and provide recall information. Consult the list below and then contact the appropriate Federal agency using the information beginning on page 107. * Cars -National Highway Traffic Safety Administration * Drugs, medical devices- Food and Drug Administration (FDA) * Food -U.S. Department of Agriculture; FDA * Seafood -FDA; U.S. Department of Commerce * Toy, baby and play equipment, household products-U.S. Consumer Product Safety Commission Recalls are also posted regularly on the FCIC website: www.pueblo.gsa.gov Keep all copies of your letter, fax or email, and all related documents. See the Sample Complaint Letter on page 34. 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). Unfotunately, 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, guarentees, 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 code). Sincerely, Your name Enclosures(s) cc: (reference to whom you are sending a copy of this letter, if anyone) Corporate Consumer Contacts This section will help you resolve a complaint about a service or product. In some instances it may be best to go back to the place where you bought the product or service. In other cases, it may be better to write or call the consumer affairs department at the company’s headquarters. Even if you decide to go directly back to the seller, let the consumer affairs department of the company know about your complaint. These offices are set up within companies because they want to hear from you. This section lists the names and addresses of more than 650 corporate headquarters and, in many cases, the name of the person to contact. Many listings also include toll free numbers and TDD (Telecommunications Devices for the Deaf) numbers. Many of the companies listed in CRH are members of the Society of Consumer Affairs Professionals in Business (SOCAP). An international professional organization established in 1973, SOCAP provides training, conferences and publications to encourage and maintain the integrity of business in transactions with consumers; to encourage and promote effective communication and understanding among business, government and consumers; and to define and advance the consumer affairs profession. Today, SOCAP has 2,600 members representing more than 1,500 companies, including large national or multinational firms, as well as small to midsize companies, throughout the U.S. and Canada. Associate members represent Federal, state and local government agencies, universities, and consumer organizations. SOCAP offers consumer affairs/customer service professionals networking opportunities, professional journals and newsletters, salary and job description surveys, and access to its resource center and bookstore. The Society’s goal is to improve the marketplace for consumers by addressing their concerns within the corporate structures. SOCAP members are identified in the Corporate Consumer Contacts section of CRH by a mobius strip, which is part of SOCAP’s official logo, and symbolizes the unbroken connection between good business and customer satisfaction and loyalty. For more information, contact SOCAP at 801 North Fairfax Street, Suite 404, Alexandria, VA 22314; 703-519-3700; Fax: 703-549-4886; e-mail: socap@aol.com or on the web at: http://www.socap.org If you do not find the name of the company you are looking for in this section, check the product label or warranty for the name and address of the manufacturer. Public libraries also have helpful information. The Standard & Poor’s Register of Corporations, Directors and Executives; Trade Names Directory; Standard Directory of Advertisers; and Dun & Bradstreet Directory are four sources that list information about most firms. If you cannot find the name of the manufacturer, the Thomas Register of American Manufacturers lists the manufacturers of thousands of products. A * AAMCO Transmissions, Inc. Anna Wright, Administrator One Presidential Boulevard Bala Cynwyd, PA 19004-1034 610-668-2900 Toll free: 1-800-523-0401 Fax: 610-664-5897 ABC, Inc. 77 West 66th Street New York, NY 10023 212-456-7477 E-mail: abcaudr@abc.com www.abc.com * ACCO Brands Inc. Fortune Brands Consumer Affairs 300 Tower Parkway Lincolnshire, IL 60069 847-541-9500 Toll free: 1-800-989-4923 Fax: 800-247-1317 www.acco.com ACCO Brands Inc. See: Swingline, Wilson Jones, Kensington, Gravis, Apollo Ace Hardware Corporation 2200 Kensington Court Oak Brook, IL 60523 630-990-6600 Fax: 630-990-6856 www.acehardware.com ACE USA Companies Mark Whiter, Director Consumer Services 1601 Chestnut Street PO Box 41484 Philadelphia, PA 19101-1484 215-761-4555 Fax: 215-761-2489 E-mail: mark.whiter@ace-ina.com www.ace-ina.com Adaptec 691 South Milpitas Blvd. Milpitas, CA 95035 Toll free: 1-800-959-7274 Fax: 408-957-2546 E-mail: support@adaptec.com www.adaptec.com * Adidas America Carol Collins, Manager Consumer Relatons 9605 SW Nimbus Avenue PO Box 4015 Beaverton, OR 97076 503-972-2300 Toll free: 1-800-448-1796 Fax: 503-906-4515 E-mail: consumer.relations@adidasus.com www.adidas.com * Admiral-Maytag Appliance Sales Co. 240 Edwards St. Cleveland, TN 37311 Toll free: 1-800-688-9920 TDD toll free: 1-800-688-2080 Adobe Systems 345 Park Avenue San Jose, CA 95110 408-536-6000 206-470-7000 (Seattle, WA) Toll free: 1-800-685-3507 Toll free: 1-800-833-6687 Toll free: 1-800-879-3219 www.adobe.com AETNA, Inc. 151 Farmington Ave. Hartford, CT 06156 860-273-0123 Toll free outside CT: 1-800-US-AETNA TDD/TTY: 860-273-3081 Fax: 860-273-9806 (consumer issues) www.aetna.com AFC Enterprises America's Favorite Chicken Co 6 Concourse Parkway, Suite 1700 Atlanta, GA 30328-5352 770-391-9500 Toll free: 1-800-222-5857 Fax: 770-353-3280 www.afc-online.com * Alamo Rent A Car P.O. Box 22776 Ft. Lauderdale, FL 33335 954-522-0000 Toll free: 1-800-445-5664 www.goalamo.com Alas