CONSUMER RIGHTS AND RESPONSIBILITIES

Caveat Emptor

PERSONAL CONSUMER RATING

PERSONAL CONSUMER RATING On question #1, give yourself five points if you selected something to

do with your money that is consistent with your goals and values in life.

Give yourself two points for each question you answered, as follows #1 – No #2—yes #3—yes #4—yes

#5—yes #6—yes #7—no #8—yes #9—no #10—yes #11—yes #12—yes

#13—yes #14--yes

23-28 points Great! Keep up the good work! 19-23 points Fair. You should begin to make some changes. 14-19 points Not too good. Consider making some big changes Less than 14 Take good notes during this unit, you'll need them!

Watch your back vocabulary

RIGHT TO CHOOSE A variety of products Competitive prices No monopolies

Responsibility to choose carefully Practice comparison shopping Consider the cost Research variety of places, items,

magazines Refuse to buy

RIGHT TO INFORMATION Accurate information to make free

choice Protected against fraudulent,

deceptive, and misleading informationResponsibility to seek information and

use it to make wise decisions Use available information Seek accurate information Ask questions & understand

UNDERSTANDING FINANCIAL CONTRACT Disclosure information Grace periods Payment penalties

Early or late Method of interest calculations

RIGHT TO SAFETY Government Protection Food & Drug Administration (FDA) Consumer Product Safety Commission

(CPSC) Assume product will perform as intendedResponsibility to use products

safely Read information Read & follow instructions Read & heed to any warning labels

RIGHT TO BE HEARD Complain BBB (Better Business Bureau) Consumer Protection Agency

Responsibility to speak up Speak up to let likes & dislikes known Complaint letters Support reputable businesses

RIGHT TO REDRESS Consumers have the right to resolve

consumer problems in any case of dissatisfaction

Responsibility to Seek Redress Make suggestions Seek satisfaction Speak up when errors occur

RIGHT TO SERVICE Consumers may expect convenience,

courtesy, and responsiveness to consumer needs and problems

Responsibility to be Alert Expect good service Compliment service where

appropriate

RIGHT TO CONSUMER EDUCATION Without consumer education

consumer cannot gain the full benefits of the other seven consumer rights

Responsibility to Study Become more informed about how to

get money’s worth Learn how to assert all the consumer

rights

SMART By Shel SilversteinMy Dad game me one dollar bill ‘cause I’m his smartest son,And I swapped it for 2 shiny quarters ‘cause 2 is more than 1.

And then I took the quarters and traded them to Lou for 3 times –I guess he don’t know that 3 is more than 2.

Just then, along came old blind Bates and just ‘cause he can’t see,He gave me 4 nickels for my 3 dimes, and 4 is more than 3.

And I took the nickels to Hiram Coombs Down at the seed-feed store, and the fool gave me 5 pennies for them, and 5 is more than 4!

And then I went and showed my Dad, and he got red in the cheeks and closed his eyes and shook his head –Too proud of me to speak! Oprah Debt Diet

DEBT Money owed to a person or entity that

must be paid off by a deadline. Mortgage, car, or school loans, credit card balance Leasing an item

How much debt is too much debt? Annual debt payment should be no more than

20% of your annual (NET) take home income. Rent or mortgage can be 30% on their own.

CREDIT COUNSELING AND DEBT CONSOLODATION

(CCCS) Consumer Credit Counseling Service Debt and financial counseling assistance

RESPONSIBLE RESPONSE TO EXCESSIVE DEBT

Apply for a card with lower interest rates Consolidate credit card debt Stop using the credit cards – if possible Stop overspending and going into debt

Don’t borrow what you can’t pay off Pay off more that the monthly minimum

Consider using savings money to pay off debt Scenario: If savings is earning 3.5% interest and debt is 15%

interest, where would the money be put to better use first? Sell assets Negotiate repayment schedule

PART 1

PART 2

WERE THEY WISE CONSUMERS? YOU CHOOSE…

Part 3

GUIDELINES1. Think about what you NEED before you buy. (Think about specific features and requirements that are important to

you.)2. Compare stores3. Compare brands, prices, and quality before making a selection.4. Check for any extra charges.5. Read and understand the warranty.6. Written contracts when purchasing large items and read the contract

terms carefully.7. Read and follow the use and care guides.8. Keep all sales receipts, warranties, and instructions.9. Understand the store's refund or exchange policy.10. Check your bill for accuracy.11. Before purchasing anything from a company, check out its reputation.12. Do not pay for items or services until they are acceptable to you.13. Avoid telephone sales.14. Price is not necessarily an indication of quality.15. Calculate the cost per unit (unit pricing) to determine the best purchases.16. Consumers are responsible to protect themselves against fraud.