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Consumer Tips
Buying A Home
- Figure out how much home you can afford before you even start looking for a home.
- Check out the neighborhood and surrounding area to see what you will be living by.
- Check out buying a home during the rainy season, you don't want standing water in the wrong places.
- Check the water pressure by turning on a faucet.
- Check out the toilets, flush them.
- With all the questions and issues you will have, a good place to start is with a good real estate agent, who can help you through the process of buying a home. Make sure they are working for you, the buyer. Real estate agents represent the seller, not the buyer. When buying, consider hiring an agent or lawyer who represents you.
Consumer Reporting Agencies (CRAs)
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Creditors and insurers may use consumer reporting agencies (CRAs) (also called credit bureaus) file information as a basis for sending you unsolicited offers. These offers must include a toll free number for you to call if you want to remove your name and address from lists for five years. Completing a form that the CRA provides for this purpose will keep your name off the lists permanently. You may opt-out with the nationwide credit bureaus at 1-888-5-OPTOUT (1-888-567-8688) or go online at www.optoutprescreen.com and you may opt back in at any time by calling the same number.
Credit
- Under the Equal Credit Opportunity Act you cannot be denied credit based on your race, sex, marital status, religion, age, national origin, or receipt of public assistance, also, you have the right to have reliable public assistance considered in the same manner as other income. If you are denied credit, you have a legal right to know why.
- Be skeptical of businesses that offer instant solutions to credit problems, there aren't any. Be persistent, resolving credit problems can take time and patience. There is nothing that a credit repair company can charge you for that you cannot do for yourself for little or no cost.
- Many lenders use an applicant's credit score in deciding whether to give that person credit and at what cost. Your credit score usually is a number between 300 and 900. A high score means you could get a "prime" loan with an attractive interest rate. A low score means you may only qualify for a "subprime" loan with higher rates and fees than those quoted to people with unblemished credit.
- "Knowing your credit score, correcting errors in your credit report and aggressively shopping among several lenders will help you get a good loan," says Angelisa Harris, a Senior Community Affairs Specialist with the FDIC. She adds that if you currently have a low credit score, you may want to wait until you improve your credit score before taking out a loan that could place your home at risk.
- Just because an organization says it is nonprofit, there is no guarantee that its services are free, affordable, or even legitimate. Some credit counseling organizations charge high fees, or hide their fees by pressuring consumers to make voluntary contributions that only cause more debt.
- No one can fix your credit history or repair your debts but you, through the sound management of your money.
Credit Cards
- Federal law prohibits issuers from sending you a credit card you didn't ask for. They can send you a renewal or substitute card without your request, or an application or a solicitation, or ask you by phone if you want a card, and, if you say yes, they may send you one.
- When you make a return or pay more than the total balance on your credit card, you can keep the credit on your account or write your issuer for a refund, if it's more than a dollar. A refund must be issued within 7 business days of receiving your request. If a credit stays on your account for more than 6 months, the issuer must make a good faith effort to send you a refund.
- If your card is used without your permission, you can be held responsible for up to 50 dollars per card. If you report the loss before the card is used, you can't be held responsible for any unauthorized charges. If a thief uses your card before you report it missing, the most you'll owe for unauthorized charges is 50 dollars. To minimize your liability, report the loss as soon as possible. Some issuers have 24 hour toll free telephone numbers to accept emergency information. It's a good idea to follow up with a letter to the issuer, include your account number, the date you noticed your card missing, and the date you reported the loss.
- Draw a line through blank spaces on charge slips so the amount can't be changed. Tear up carbons.
- Hold on to receipts to reconcile charges when your bill arrives.
Credit Report
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You have the right to receive one FREE copy of your credit report from each or all three major nationwide credit bureaus, Equifax, Experian and TransUnion, at your request, once every 12 months, and it must contain all of the information in your file at the time of your request, including medical information, and in most cases, the sources of the information. Also, the consumer reporting agency (CRA) must give you a list of everyone who has requested your report within the past year, and two years for employment related requests. Because more than one consumer reporting agency (CRA) may have a file on you, call each until you locate all the agencies maintaining your file. The consumer reporting agency must provide you with a free copy of your file if you have been denied credit within the last 30 days. You may either make an appointment to review your file or request the information over the phone. In either case, you will need to establish your identity by completing some forms. Go to:
- www.annualcreditreport.com Or call 1-877-322-8228
- Or complete the Annual Credit Report Request Form (you can print it from www.annualcreditreport.com/cra/requestformfinal.pdf) and mail it to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Gift Cards
- Before you purchase a gift card for someone or if you receive a gift card, find out if there are any fees involved, if there is an expiration date, and what happens if the gift card is lost or stolen.
- Read the fine print before you buy. If you don't like the terms and conditions, buy elsewhere.
- Buy from sources you know and trust. Avoid buying gift cards from online auction sites - the cards may be counterfeit or may have been obtained fraudulently. Also, consider the financial condition of the business and whether it has filed for bankruptcy.
- Inspect the card before you buy it. Verify that none of the protective stickers have been removed, and make sure that the codes on the back of the card haven't been scratched off to reveal a PIN number. Report tampered cards to the store selling the cards.
- Give the recipient the original receipt to verify the card's purchase in case it is lost or stolen.
- Treat gift cards like cash. If your card is lost or stolen, report it to the issuer immediately. You may be out the entire amount on the card. Some issuers do not replace the cards, but others do if you pay a fee. If an issuer charges for a replacement card, you will most likely need to document the purchase and provide the ID number on the card. Most issuers have toll-free numbers to report lost or stolen cards.
Travel
- If you're traveling, have your mail held at your local post office, or ask someone you know well and trust another family member, a friend, or a neighbor to collect and hold your mail while you are away.
- If you have to telephone someone while you are traveling about personal financial information, don't do it at an open telephone booth where passersby can listen in on what you're saying. Use a telephone booth where you can close the door, or wait until you're at a less public location to call.
Work at Home Ads
- Work at home ads usually do not payoff. Be especially wary of ads that promise huge annual salaries, they often require expensive upfront fees with no guarantee. You risk losing your money and wasting a lot of time and energy.
References:
Federal Trade Commission (FTC)
www.ftc.gov
Consumer.gov
www.consumer.gov
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