This booklet will tell you who may get benefits, how to apply and what you need to know once benefits start. Click on the link to http://www.ssa.gov/pubs/10029.html

Before you buy

• Take advantage of sales, but compare prices. Do not assume an item is a bargain just because it is advertised as one.
• Don't rush into a large purchase because the "price is only good today."
• Check to see if the company is licensed or registered at the local or state level.
• Contact your consumer protection office or Better Business Bureau (BBB) for any complaint recorded against the company. Request any consumer information they might have on the type of purchase.
• Be aware of such extra charges as delivery fees, installation charges, service costs, and postage and handling fees. Add them into the total cost.
• Ask about the seller's refund or exchange policy.
• Read the warranty. Note what is covered and what is not. Find out what you must do and what the manufacturer or seller must do if there is a problem.
• Don't sign a contract without reading it. Don't sign a contract if there are any blank spaces in it or if you don't understand it. In some states, it is possible to sign away your home to someone else.
• Before buying a product or service, contact your consumer protection office to see if there are automatic cancellation periods for the purchase you are making. In some states, there are cancellation periods for dating clubs, health clubs, and timeshare and campground memberships. Federal law gives you cancellation rights for certain door-to-door sales.
• Walk out or hang up on high-pressure sales tactics. Don't be forced or pressured into buying something.
• Only do business over the telephone with companies you know.
• Be suspicious of P.O. Box addresses. They might be mail drops. If you have a complaint, you might have trouble locating the company.
• Do not respond to any prize or gift offer that requires you to pay even a small amount of money.
• Use unit pricing in supermarkets to compare what items cost. Unit pricing allows you to compare the price ounce-for-ounce, pound-for-pound, etc. As an example, bigger packages are not always cheaper than smaller ones.
• Use coupons carefully. Do not assume they are the best deal until you've compared them to the prices of competitive products.
• Make sure all documents you sign are in a language you understand.
• Don't rely on a salesperson's promises. Get everything in writing.

Remember:

1. First contact the seller if you have a complaint.
2. If that does not resolve your problem, contact the company headquarters.
3. If your problem is still unresolved, refer to the subject index for the organizations, or local, state and Federal offices that provide help in cases like yours.
4. Taking legal action should be the last resort. However, if you decide to exercise this right, be aware that you might have to act within a certain time period. Check with your lawyer about any statutes that apply to your case.

After you buy

• Read and follow product and service instructions.
• Be aware that how you use and take care of a product might affect your warranty rights.
• Keep all sales receipts, warranties, service contracts and instructions.
• If you have a problem, contact the company as soon as possible. Trying to fix the product yourself might cancel your right to service under the warranty.
• Keep a written record of your contact with the company.
• If you have a problem, check with your consumer protection office to find out about the warranty rights in your state.
• If you paid for your purchase with a credit card, you have important rights that might help you dispute charges.
• Check your contract for any statement about your cancellation rights. Contact your consumer protection office to see if a cancellation period applies.
• If you take the product in for repair, be sure the technician understands and writes down the problem you have described. Red Flags of Fraud.

Consumer protection offices urge consumers to be aware of the red flags of fraud. Walk away from bogus offers. Toss out the mail or hang up when you hear:

• "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 is for 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 paving 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."

Remember, the smart consumer always looks at the total price before deciding and checks out the company and product before buying.

Stay away from telemarketers who want to:

• send a courier service for your money;
• have you send money by wire;
• automatically withdraw money from your checking account;
• offer you a free prize, but charge handling and shipping fees;
• ask for your credit card number, checking or savings account number, social security number or other personal information; and
• get payment in advance especially for employment referrals, credit repair, or providing a loan or credit card.

Stay away from lotteries, pyramid schemes and multi-level sales schemes. They are all good ways to separate you from your money.

Complaining Effectively

Save all purchase-related paperwork in a file. Include copies of sales receipts, repair orders, warranties, canceled checks, contracts, and any letters to or from the company. When you have a problem:

• Contact the business that sold you the item or performed the service. Calmly and accurately 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 try to resolve it and what solution you want. For example, do you want your money back, the product repaired or the product exchanged?

Allow time for the person you contacted to resolve your problem. Keep notes of the name of the person you spoke with, the date and what was done. Save copies of all letters to and from the company. Don't give up if you are not satisfied.

• Contact the company headquarters if you have not resolved your problem at the local level. Many companies have a toll-free 800 number. Look for it on package labeling, in a directory of 800 telephone numbers (available at your local library), by calling 1 (800) 555-1212 (toll free) or by referring to the many corporate consumer contacts. Address your letter to the consumer office or the company's president.

Writing a Complaint Letter

Where to send it

• Check the product label or warranty for the name and address of the manufacturer.
• If you need additional help locating company information, check the reference section of your local library for the following books: Standard & Poor's Register of Corporations, Directors and Executives; Standard Directory of Advertisers; Trade Names Dictionary; and Dun & Bradstreet Directory.
• If you have the brand, but cannot find the name of the manufacturer, the Thomas Register of American Manufacturers lists the manufacturers of thousands of products. Check your local library.
• Each state has an agency (possibly the corporation commission or secretary of state's office) that provides addresses for companies incorporated in that state.
• Remember, do business with a company you will be able to find later. It might be difficult to find companies in other states or those listing post office boxes as addresses. Even if you have an address, it might be only a mail drop, so be sure you know where the company you are doing business with is located physically.

What to say

• Include in the letter your name, address, home or work telephone numbers, and account number, if any.
• Make your letter brief and to the point. Include the date and place you made the purchase, who performed the service, such information about the product as the serial or model number or warranty terms, what went wrong, with whom you have tried to resolve the problem and what you want done to correct the problem.
• Use the sample consumer complaint letter on the following page as a guide.
• Include copies, not originals, of all documents.
• Be reasonable, not angry or threatening, in your letter. Type your letter, if possible, or make sure your handwriting is neat and easy to read.
• Keep a copy of all letters to and from the company.
• You might want to send your complaint letter with a return receipt requested. This will cost more, but will give you proof that the letter was received and tell you who signed for it.
• If you feel you have given the company enough time to resolve the problem, send a copy of your letter to, or file a consumer complaint with, your local or state consumer protection agency, such specific state agencies as banking, insurance and utilities, or local Better Business Bureau. 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.

Sample Complaint Letter

(Your Address)
(Your City, State, ZIP Code)
(Date)

(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).

Unfortunately, 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, guarantees, 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 codes).

Sincerely,
(your name)

Enclosure(s)
cc: (reference to whom you are sending a copy of this letter, if anyone)

Consumer Tips

This section contains a number of suggestions to help you become a smarter consumer. It includes tips on how to buy a car, avoid fraud and protect your privacy.

Remember to check with your local consumer protection office and Better Business Bureau for other consumer information on a variety of topics.

Car Repair, Purchase, Renting and Other Concerns

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. Get them 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 might 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 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.

Buying A Used Car

• Check newspaper ads and used car guides at a local library so you know what's a fair price for the car you want. Remember, prices are negotiable. You also can look up repair recalls for car models you might be considering.
• Call the Auto Safety Hotline at 1 (800) 424-9393 to get recall information on a car. Authorized dealers of that make of vehicle must do recall work for free no matter how old the car is.
• Shop during daylight hours so that you can thoroughly inspect the car and take a test drive. Don't forget to check all the lights, air conditioner, heater and other parts of the electrical system.
• Do not agree to buy a car unless you've had it inspected by an independent mechanic of your choice.
• Ask questions about the previous ownership and mechanical history of the car. Contact the former owner to find out if the car was in an accident or had any other problems.
• Check with your local department of motor vehicles to find out what you need in order to register a car.
• Ask the previous owner or the manufacturer for a copy of the original manufacturer's warranty. It still might be in effect and transferable to you.
• Don't sign anything that you don't understand. Read all documents carefully. Negotiate the changes you want and get them written into the contract.
• For information on recalls and safety issues.

Buying from a Private Individual - Generally, private sellers have less responsibility than dealers for defects or other problems.

• Check with your state's motor vehicle department on what 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.
• Have the car inspected by your mechanic before you agree to buy it.

Buying from a Dealer

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.
• In most states, used cars may be sold "as is." If the "as is" box is checked off on the "Buyers Guide," you have no warranty.

If the "warranty" box is checked off on the "Buyers Guide," ask for a copy of the warranty and review it before you agree to buy the car.

• Have the car inspected by your mechanic before you agree to buy it.
• 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.
• To order a free publication on buying a used car, contact the Federal Trade Commission, Public Reference Section, 6th and Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580, (202) 326-2222.

Buying A New Car

• Evaluate your needs and financial situation. Read consumer magazines and 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. 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.
• Keep your trade-in negotiations separate from the main deal.
• Compare financing from different sources, for example, banks, credit unions and other dealers before you sign the contract.
• Read and understand every document you are asked to sign. Do not sign anything until you have made a final decision to buy.
• Think twice about adding expensive extras, you probably don't need, to your purchase, for example, credit insurance, service contracts or rust proofing.
• Inspect and test drive the vehicle you plan to buy, but do not take possession of the car until the whole deal, including financing, is finalized.
• Don't buy on impulse or because the salesperson is pressuring you to make a decision.
• The National Highway Traffic Safety Administration's Auto Safety Hotline at 1 (800) 424-9393 (toll free) distributes recall and safety information on used and new cars, trucks, motorcycles, motor homes, child seats and other motor vehicle equipment; vehicle crash test information; tire quality grading reports; child seat registration forms; and other safety literature. You should report all vehicle and child seat defect information to the Hotline.
• The Center for Auto Safety monitors auto defects. To see if there is a pattern of repeated complaints on a certain vehicle model, write the Center for Auto Safety, 2001 S Street, N.W., Suite 410, Washington, DC 20009 and include the vehicle make, model and year, and a self-addressed stamped envelope.

Credit and Sublease Brokers

A new and rapidly growing area of consumer fraud involves con artists who prey on people who have bad credit and who are having problems getting loans to buy cars. There are two main schemes: The "credit broker" promises to get a loan for you in exchange for a high fee. In many cases, the "broker" takes the fee and disappears, or simply refers you to high-interest loan companies.

• The "sublease" broker charges a fee to arrange for you to "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.

To protect yourself:

• check with your state or local consumer protection agency to find out if the broker is required to be licensed;
• do not do business with a company that does not appear to be complying with state law; and
• do not pay for services in advance.

To order a free publication on how to buy a new or used car, contact the Federal Trade Commission, Public Reference Section, 6th and Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580, (202) 326-2222.

Car Leasing

• Shop around for the best leasing deal. Read lease promotions carefully. The attractive low monthly payment might be available only if you make a large down payment (capitalized cost reduction) or a balloon payment at the end of the lease.
• Beware of open-end leases. They require the consumer to pay the difference if the vehicle is worth less at the end of the lease than was estimated originally.
• The Consumer Leasing Act requires leasing companies to give you important information in writing before you sign a contract. Read the documents given to you by the leasing company and make sure you understand them before you sign anything. In particular, look for:

-up-front costs, for example, security deposits, down payments, advanced payments and taxes;

-the terms of the payment plan;

-termination costs, for example, excess mileage penalties, excessive wear and tear charges, and disposition charges; and - penalties for early termination or default.

When you have paid off a car loan, you own the car. When you have paid off the lease, you own nothing.

To order a free publication on car leasing, contact the Federal Trade Commission, Public Reference Section, 6th and Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580, (202) 326-2222. Lemon Laws

Almost every state has a new car "lemon law" that allows 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 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. 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.

If the problem isn't resolved, you might have the option of participating in an arbitration program offered by the manufacturer or your state. Contact your state or local consumer protection office for information.

Lemon Law Summary is available upon request by sending a self addressed, stamped (42 cents) envelope to the Center for Auto Safety, 2001 S Street, N.W., Suite 410, Washington, DC 20009. 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 which give consumers additional rights. Contact your state or local consumer protection office for more information.

To order a free publication on vehicle repossessions, contact the Federal Trade Commission, Public Reference Section, 6th and Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580, (202) 326-2222.

Renting A Car

Federal law does not cover short-term car and truck rentals. However, there are state laws that do. You should contact your state or local consumer protection office for more information on laws in your area.

• Shop around for the best rates.
• Compare all fees, in addition to the daily/weekly rate, before renting.
• Most car rental contracts make the consumer liable for all damage to the vehicle, no matter who caused it. Before buying a rental company's collision or loss damage waiver, check with your own car insurance company and your credit card company to see if they cover car rentals and to what extent. It pays to do your homework because these policies can add $3 to $15 per day to your rental charges! Rental companies also might 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. Others might start to charge your account before the rental period is over. Find out the company's policy in advance.
• Carefully inspect the vehicle and its tires before renting and write down all the dents and scratches you see.
• Check refueling policies. You can refill at a local gas station, you can let the car rental company refuel the car at its price, which is usually higher, or you can pay in advance for a refill which will cost you needlessly if there is any unused gas upon returning the vehicle.
• Contact your state or local consumer protection agency for information on state law or to report problems with your car rental.
• To order a free publication on car rental, contact the Federal Trade Commission, Public Reference Section, 6th and Pennsylvania Avenue, N.W., Room 130, Washington, DC 20580, (202) 326-2222. Mail Order

Federal mail order rules require companies that take consumers' orders by mail to:

• ship the merchandise within 30 days of receiving a completed order or within a different timeframe if it is stated in their ads;
• notify consumers if shipment can't be made on time and give them the choice of waiting longer or receiving refunds; and cancel their orders and return their money (or give them credits on their charge accounts) if the revised shipping date can't be met, unless the consumers agree to another delay. There also might be laws regarding mail order in your state. Contact your state or local consumer protection agency.
• Keep a record of the name, address and phone number of the company, goods you ordered, date of your order, amount you paid and method of payment.
• Keep a record of any delivery period that was promised.
• If you are told that the shipment will be delayed, write the date of that notice in your records and the new shipping date if you've agreed to wait longer.
• When you cancel an order that wasn't shipped on time, you have the right to get a refund within seven days or within one billing cycle for charged sales.
• When you use your credit card for mail order purchases and you don't receive the goods or services, or they were defective or misrepresented, use the credit card protection rights described in the section on Credit Cards.
• To limit some of the mail you do not want, you can sign up with the free Mail Preference Service operated by the Direct Marketing Association, a private trade group. It will instruct its mail marketing members to take you off their lists. To join, write to the Mail Preference Service, P.O. Box 9008, Farmingdale, New York 11735.

To report violations of the Federal mail order rule, contact the Federal Trade Commission. For information on your state laws, contact your state or local consumer protection agency. To report a problem with mail order, contact the U.S. Postal Inspection Service or the Postal Crime Hotline at 1 (800) 654-8896.

Mail Fraud

• Read the offer carefully. Get the advice of another person whose opinion you trust.
• Deal only with companies or charities whose reputation and integrity are known.
• Never give your credit card number or personal, financial or employment information unless you know with whom you are dealing.
• Never send money for any "free" merchandise or services.
• Be careful of making impulse purchases.
• Keep a record of the order, notes of the conversation and copies of the advertisement, canceled check, receipt, letters and envelopes.
• Take the time to shop locally and compare products, services and prices to those in local stores.
• Check out the company with the U.S. Postal Inspection Service, your state or local consumer protection agency, or the Better Business Bureau. Mail fraud is a federal crime.
• Using your credit card or a money order might give you some recourse if you have a problem, despite your carefulness.

Be suspicious of "free gifts" that require a "tax payment" or "registration fee;" sweepstakes requiring an entry fee or purchase; employment or work-at-home opportunities requiring a fee; offers requiring your credit card number or bank account number; loans that require you to pay a fee in advance; mailings that look like they are from official government agencies, when they are not; and prize notices requiring you to call a 900 number.

Telemarketing

While many legitimate businesses use the telephone to make their sales, it's easy for fraudulent companies to abuse the phone. Beware of the con artists who promise anything and deliver nothing, or at least not what customers thought they were getting.

Tips for Smart Telephone Shopping

• Always keep a record of the name, address and phone number of the company, goods you ordered, date of your purchase, amount you paid (including shipping and handling) and method of payment.
• Keep a record of any delivery period that was promised.
• If you are told that the shipment will be delayed, write the date of that notice in your records and the new shipping date, if you've agreed to wait longer.
• Don't give your credit card number, checking account number or other personal information to a telemarketer unless you are familiar with the company or organization, and the information is necessary in order to make your purchase.

Telephone Order Rights

• Some states have telemarketing laws that require written contracts, automatic cancellation periods or registration of telemarketing companies. Contact your state or local consumer protection agency. Federal telephone order rules require companies that take consumers' orders by phone, computer or fax to:
• ship the merchandise within 30 days of receiving a completed order or within a different timeframe if it is stated in their ads;
• notify consumers if shipment can't be made on time and give them the choice of waiting longer or receiving refunds; and
• cancel their orders and return their money (or give them credits on their charge accounts) if the revised shipping date can't be met, unless the consumers agree to another delay. Use Caution and Common Sense
• Don't be pressured into acting immediately or without the full information you need.
• Shop around and compare costs and services.
• Report all fraudulent activity to your consumer agency. Check the company out with your consumer protection agency or the Better Business Bureau.
• If the solicitation came by mail, call the Postal Crime Hotline at 1 (800) 654-8896 (toll free) for more advice on not becoming a victim.
• Call the National Fraud Information Center, administered by the National Consumers League, at 1 (800) 876-7060 (toll free) for information about telemarketing fraud.

Blocking Telemarketing Calls - You have the right under federal law:

• to tell a company not to call you by phone or not to contact you in writing; the company must keep a list of these consumers and not contact them; keep a record for your file;
• not to get calls before 8 a.m. or after 9 p.m.;
• not to receive unsolicited ads by fax; and
• to be disconnected from a pre-recorded machine-delivered message within five seconds of hanging up.

Some states do not allow telemarketers to call people who do not want to receive calls. Contact your state or local consumer protection agency to check your state's rights.

To reduce telephone calls you do not want, you can sign up with the free Telephone Preference Service operated by the Direct Marketing Association, a private trade group. To join, write to the Telephone Preference Service, P.O. Box 9014, Farmingdale, NY 11735.

To report violations of the telephone order rule, contact the Federal Trade Commission. If you made the telephone transaction in response to a postcard or other mailing, contact the U.S. Postal Inspection Service or the Postal Crime Hotline at 1 (800) 654-8896 (toll free). For information on the laws in your state, contact your state or local consumer protection agency.

Calls That Cost: 900 Numbers and Other Pay-Per-Call Services Unlike 800 numbers which are free, you pay a fee when you call a 900-type number. The company or organization you're calling sets the price, not the telephone company. Most states do not regulate the cost of these calls. Charges can vary from less than a dollar to more than $50. Federal law requires that: consumers be told the cost of calling the number and given a description of the product and service. This must appear in advertisements and, for calls costing more than two dollars, in the introductory message or preamble at the beginning of the call;

• the cost of calling must be disclosed by flat rate, by the minute with any minimum or maximum charge that can be determined, or by range of rates for calls with different options; all other fees charged for services and the cost of any other service to which a caller might be transferred must be disclosed;
• consumers must be given time to hang up after the introductory message without being charged; there must be a signal or tone to let them know when the preamble ends;
• no charges can be made for calling 800 numbers unless the consumer agrees in advance to be charged;
• any pay-per-call services offering sweepstakes, prizes or awards must disclose the odds of winning or the factors for determining the odds;
• ads directed to children under age 12 are not allowed unless they are for legitimate educational services;
• ads directed primarily to people under the age of 18 must state that parents' consent is needed to call the number; and
• ads for information about Federal programs offered by private companies must state clearly that they are not endorsed, approved or authorized by government agencies.

Protect yourself from fraud by avoiding:

• ads that don't describe clearly the goods or services or the cost of the calls;
• offers of "free" gifts or prizes just for calling;
• promises of jobs, loans, credit cards for people with poor credit, "credit repair" or other services aimed at consumers who are in financial hardship;
• contests to win money in which little or no skill is required;
• services targeted to children under 12 which don't appear to serve any legitimate educational purpose; and
• offers of cheap travel or any other deals that seem to be "too good to be true."

Hang up if you're being switched from an 800 number to a 900 number without your prior consent.

What You Need to Know about 800 Numbers -- Generally, you cannot be charged for 800 numbers. However, there are two exceptions. Charges for an 800 number can be made only if:

• you have a "pre-subscription arrangement" with the company (for example, with an information service). This means you already have an agreement to accept charges before you called the 800 number; or
• you agree to a credit card charge.

Your Rights and Recourse

• If you question 900-type number charges which appear on your phone bill, you can dispute the bill. Your local and long distance telephone service cannot be disconnected for disputed pay-per-call charged.
• In most cases, the charge for a pay-per-call service is collected by the local telephone company on behalf of the service provider. Follow the instructions on your bill immediately to dispute the charges. Keep a record of whom you talked to, and the date and copies of any letters you send. Pay the undisputed portion of your phone bill.
• Even if the telephone company removes the charges, the debt might be turned over to a collection agency by the service provider. Send the collection agency a letter explaining why you dispute the debt.
• To avoid problems with 900-type numbers, you can request "blocking" from your local phone company. Blocking prevents 900 numbers from being dialed from your phone.
• If you suspect a violation of pay-per-call rules, contact your state or local consumer protection agency and the Federal Trade Commission. If the ad for the number came by mail, write to the U.S. Postal Inspection Service or call the Postal Crime Hotline at 1 (800) 654-8896 (toll free). If you are not satisfied with the way the phone company handled your complaint, contact the Federal Communications Commission.

Door-to-Door Sales

• Ask to see the salesperson's personal identification and license or registration if that is required where you live. Make note of his/her name, the name and address of the company, and whether the salesperson carries proper identification.
• Ask for sales literature and then call local stores that might sell the same merchandise to compare prices. Some door-to-door products might be overpriced.
• Don't be pressured into buying something. Watch for the warning signs: an offer of a "free gift" if you buy a product, an offer that is only good for that day, or you're told that a neighbor just made a purchase.
• If you feel threatened or intimidated, ask the person to leave. Don't leave the person unattended in any room of your home. If you are suspicious, report the incident to the police immediately.

Cancellation Rights

• The "Door-to-Door Sales Rule" (or "Cooling Off Rule") gives you the right to cancel certain purchases costing $25 or more. Notify the company in writing by midnight of the third business day following the sale. Saturdays are considered business days, but Sundays and holidays are not.
• The seller must tell you about your cancellation rights and give you two dated copies of a cancellation form showing the seller's name and address and explaining your right to cancel.
• These Federal cancellation rights apply to purchases made in locations outside the seller's normal place of business, in other words, at a house party, a temporarily rented room or in your home.
• States might have additional cancellation laws that protect consumers. Check with your state or local consumer protection agency for your rights.
• To cancel a contract, sign and date one copy of the cancellation form. Mail it within the three-day limit, making sure it's post-marked before midnight of the third business day. Sending it by certified mail will show proof that it was mailed.
• If you were not given the cancellation form at the time of sale, your right to cancel continues until three days after the seller finally gives it to you. You can write your own letter cancelling the sale and send it return receipt requested.
• Once you cancel, you have a right to a refund within 10 days. The seller must let you know when the product will be picked up and must return any paperwork and trade-ins within that time.
• Within 20 days, the seller must pick up the item or reimburse you for any shipping expenses if you send it back yourself. If you do not return it, you still are responsible under the contract.
• Extend your rights! If you paid by credit card, canceled the contract within three 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 under the Fair Credit Billing Act.

Home Improvement

• Plan ahead. Know what you want or need to have done before contacting a contractor.
• Get detailed estimates from reputable contractors. Contact your local or state consumer agency and Better Business Bureau for information on contractors' licensing or registration requirements, complaint records and for brochures containing advice.
• Contact your local building inspection department to check for permit and inspection requirements.
• Call your insurance company to find out if you are covered for any injury or damage that might occur and be sure your contractor has the required insurance for his/her workers and subcontractors.
• Insist on a complete written contract. Know exactly what work will be done, the quality of materials that will be used, 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 many home improvement contracts. Before you sign a contract, check with your local consumer agency to find out if you have cancellation rights and how they apply.
• Understand your payment options. You can get your own loan or the contractor might arrange financing. Be sure you have a reasonable payment schedule at a fair interest rate.
• Some state laws specify payment schedules, for example, only allowing a certain percentage of the total cost to be made as a down payment. Contact your state or local consumer agency to find out what the law is in your area.
• Lien rights, which might give the contractor or subcontractors the ability to "attach" your home for unpaid bills, vary from state to state. Ask your local consumer agency to explain the situation where you live.
• You need to 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 too cheap;
  • pressures you for an immediate decision;
  • has workers or suppliers who tell you they have trouble getting paid;
  • can be reached only by leaving messages with an answering service; or
  • drives an unmarked van or has out-of-state plates on his/her vehicle.

Home Financing

• Check the real estate or business sections in the newspaper for information on current interest rates. Call several lenders for rates and terms based on the type of mortgage you want.
• When buying a newly constructed home, compare the interest rate and terms offered through the builder's sales office with those offered by other lending institutions.
• When interest rates go down, you might save money by refinancing, but you probably should not refinance unless the new interest rate will be at least two percentage points below the rate you're paying currently.
• For an adjustable rate mortgage, or "ARM," find out the "cap" or the maximum interest rate that can be charged during the life of the loan. Ask how often the rate might change and what determines the rate change.
• Get a complete list of "closing" or "settlement" costs and find out which costs will be refunded if your loan is not approved.
• Be wary of financing that is based on "negative amortization." While the payments might be lower than in other types of loan agreements, they're not enough to cover the monthly interest charges. The portion of interest that is left unpaid is added to the principal, which means that each month, the borrower pays interest on a higher amount than before. With negative amortization, the debt actually keeps increasing rather than decreasing. You could end up owing a lot of money at the end of the loan or losing your home.

Home Equity Credit Lines

• Although a home equity credit line 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.

  Some questions to ask when comparing home equity loan offers:

  • How large a credit line can be extended?
  • How long is the term of the loan?
  • What is the minimum monthly payment? 
  • Is there a maximum?
  • What is the annual percentage rate?
  • If the interest rate "floats," or is adjustable, how much can it increase at one time?
  • Is there a maximum rate?
  • Are there any annual fees or transaction fees?

Reverse Mortgages

• If you own your home, a reverse mortgage loan will pay you in monthly advances or through a line of credit. It lets you convert your equity into cash which you can use for any purpose, while retaining your ownership in your home. Before you sign, be sure you understand all the terms and conditions.
• Interest rates on this type of loan might be higher and are charged on a compound basis. Application fees, points and closing costs also might be higher than other types of loans. Interest rates are not deductible on your income taxes until you repay the loan in full. There will be less equity for you and your heirs in the future.

For more information or to file a complaint, contact:

Department of Housing and Urban Development Office of Single Family Housing
451 Seventh Street, S.W., Room 9282
Washington, D.C. 20410
(202) 708-3175

State and Local Consumer Protection Offices -- Selecting a Financial Institution.

Carefully select a financial institution by comparing the terms and prices of all of the services you need.

• Shop around. Do not do business with the first institution that seems willing to do business with you.
• Check the front door to see if the institution displays a government logo indicating that it is insured Federally. Generally, if the institution is insured Federally, an individual is covered for up to $100,000 in deposits if the institution fails.

Truth in Savings Act

• Requires financial institutions to disclose the "Annual Percentage Yield," or "APY," on savings accounts. The APY tells you how much money you would earn if you kept $100 in the account for one year.
• Requires that the institution credit your entire deposit instead of crediting a portion of your deposit or using a "low balance per month" method. This increases your earnings.
• Requires that institutions have available a list of their fees for bounced checks, stop payment orders, certified checks, wire transfers or similar items. Ask for the list.
• Prohibits institutions from advertising "free" checking if there are hidden charges or requirements, for example, having to maintain a minimum balance to qualify.

Checking Accounts

• Before you open a checking account, find out what the fees will be for writing checks, for bounced checks, for the checks themselves and for other services. Ask if the institution will send you the canceled checks with your monthly statement. If not, find out the cost for copies of canceled checks. You might need them for proof of payment in some situations.

Loans

• When shopping for a mortgage, check 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.
• Most home improvement loans are secured by a mortgage on your home. It's better not to finance expensive credit life insurance 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.
• For car loans, compare the rates offered by the car dealer with those of local lending institutions. Don't add expensive extras like credit life insurance to the total amount of the loan. You do not have to purchase credit insurance in order to get a loan. Credit Cards
• For a small fee, you can purchase a list of the most competitive interest rates and credit cards in the country and find out how to qualify for the lowest rate possible by contacting Bankcard Holders of America, 560 Herndon Parkway, Suite 120, Herndon, VA 22070, (703) 481-1110.
• If you cannot pay off your full credit card balance each month, a lower interest rate will save you money. If you do pay off your balance in full each month, choose a card with no annual fee.
• Report billing errors and unauthorized charges to your credit card company right away. Keep a list of credit card numbers and card company phone numbers to alert a credit card company immediately if a card is stolen or missing. If you report the incident immediately, the most you will have to pay for any unauthorized charges is $50 on each card, regardless of how high the total unauthorized charges go before you report your card missing.
• 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.
• After signing your name on a credit card charge slip, pull out the carbons and rip them up.
• A Federal law gives all consumers equal access to credit. The Equal Credit Opportunity Act makes it illegal for creditors to discriminate against applicants on the basis of race, sex, national origin, marital status, age or religion, or because of public assistance income.
• 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 you should know that no matter how well you handle this account, your payment history on your past debts still will be taken into consideration when you apply to other lenders for credit or for employment or housing.

For more information or to file a complaint, contact:

Federal Deposit Insurance Corporation
Office of Consumer Affairs
550 17th Street, N.W.
Washington, DC 20429
(202) 898-3536
(202) 898-6726 (voice/TDD)
1 (800) 934-3342 (toll free)

Board of Governors of the Federal Reserve System Division of Consumer and Community Affairs 20th and C Streets, N.W.
Mail Stop 198
Washington, DC 20551
(202) 452-3693
(202) 898-6726 (FDIC Voice/TDD)

Comptroller of the Currency
Consumer Affairs
250 E Street, S.W.
Washington, DC 20219
(202) 874-4820

Bankcard Holders of America
560 Herndon Parkway, Suite 120
Herndon, VA 22070
(703) 481-1110

National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6300 

Credit Reporting

The three biggest credit reporting agencies, TRW, Equifax and Trans Union, each have millions of credit files on consumers nationwide.

Their toll-free numbers are:

• TRW - 1 (800) 392-1122;
• Equifax - 1 (800) 685-1111; and
• Trans Union - 1 (800) 851-2674.

You can find other credit bureaus in your area by looking in the Yellow Pages under Credit Bureaus or Credit Reporting.

If you apply for credit, insurance, a job or to rent an apartment, your credit record might be examined. You can make sure yours is accurate.

• Get a copy once a year or before major purchases. Your report is generally free if you've been denied credit in the past 60 days.

Otherwise, the credit bureau can impose a reasonable charge.

• Read the report carefully. The credit bureau must provide trained personnel to explain the information in the report.
• Dispute any incorrect information in your credit record. Write to the credit bureau and be specific about what is wrong with your report. Send copies of any documents that support your dispute.

In response to your complaint, the credit bureau:

• must investigate your dispute and respond to you, usually within 30-35 days; information that is inaccurate or cannot be verified must be corrected or taken off your report; and
• cannot be required to remove accurate, verifiable information that is less than seven years old (10 years for bankruptcies). If you are dissatisfied with the results of the re-investigation, you can have the credit bureau include a 100-word consumer statement, giving your version of the disputed information. You also can contact the source of the disputed information and try to resolve the matter.

If there is an error on a report from one credit bureau, the same mistake might be on others as well. You might want to contact the three major bureaus, as well as any local bureau listed in the Yellow Pages of your telephone book.

Credit bureaus sometimes sell your name to banks or others who want to send you offers for credit cards or other forms of credit. If you don't want your name included on such lists, write or call the three major credit bureaus and tell them not to release your name.

Credit Repair

You might see or hear ads from companies that promise to "clean up" or "erase" your bad credit and give you a fresh start. They charge high fees, usually hundreds of dollars, but do not deliver on their promises.

If you are thinking of paying someone to "repair" your credit, remember this:

• Negative credit information can be reported for seven years (10 years for a bankruptcy).
• No one can require a credit bureau to remove accurate negative information before that period is up.
• There are no "loopholes" or laws that credit repair companies can use to get correct information off your credit report.
• No credit repair company can do anything you can't do for yourself. A "money-back guarantee" does you no good if the company has gone out of business or refuses to make good on its refund promise.
• The only way to "repair" bad credit is by good credit practices over a period of time.

Some credit repair companies promise not just to clean up your existing credit record, but to help you establish a whole new credit identity. Remember, it is illegal to make false statements on a credit application or to misrepresent your Social Security Number. If you use such methods, you could face fines or even prison. Beware of any company or method that:

• encourages you to omit or lie about bad credit experience when you apply for new credit;
• tells you to use a new name or address or a new number, for example, an Employer Identification Number (EIN), in place of your Social Security Number in applying for credit; or
• says it is legal to establish a new credit identity.

You can rebuild your good credit by handling credit responsibly. You might want to contact a Consumer Credit Counseling Service (CCCS) office. This is a non-profit organization that will provide help at little or no cost to you. For a CCCS office in your area, call 1 (800) 388-CCCS.

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.

Protect Your 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.
• 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. Be specific.
• 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.

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 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; and
• threaten to have money deducted from your paycheck or sue you unless the collection agency or creditor actually intends to do so, and it is legal to do so.

If you are contacted by a debt collector, you have a right to a written notice, sent within five 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.

Equal Credit Opportunity Act

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; and
• 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; and
• have accounts shared with your spouse reported in both your names.

Credit Cards

Choosing a Credit Card - Credit card issuers offer a wide variety of terms. Consider and compare all the 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.

Shop around for the terms that are best for you. Before giving money to a company that promises to help you get a credit card: find out who the card issuer is and get the credit card terms in writing, including all the fees and whether a deposit is required;

• try to apply to a card issuer directly, rather than giving money to a third party; if you don't get the credit card, you might not be able to get your money back;
• beware of "credit cards" that only allow you to buy from certain overpriced, restricted goods catalogs; and
• beware of companies that promise "instant credit" or guarantee you a credit card "even if you have bad credit or no credit history;" no one can guarantee you credit in advance.

Using a Credit Card

Know your credit card protections. When you have used your card for a purchase and you don't receive the goods or services as promised, you might be able to withhold payment for the goods or services. Card issuers must investigate billing disputes.

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.

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.

Preventing Credit Card Fraud

• Sign cards when they arrive, so no one can forge your signature on the cards and use them.
• Keep copies of all sales slips. Open credit card bills promptly and compare the sales slips with the charges on your bill.
• Promptly report any suspicious or unauthorized charges to the card issuer.
• Never give your credit card number over the phone unless you have made the call and you know the company is reputable.
• Draw a line through blank spaces on charge slips. Do not sign a blank charge slip.
• Destroy carbons and incorrect charge slips.
• Keep a record of your card numbers and expiration dates and the phone number of the card issuer in a safe place.

To order free brochures on credit, contact the Federal Trade Commission, Public Reference Section, 6th and Pennsylvania Avenue, N.W., Suite 130, Washington, DC 20580, (202) 326-2222. To file a complaint, contact your state or local consumer protection agency, your state attorney general or your Better Business Bureau.

Consumer Privacy

How to Reduce Unwanted Solicitations and Guard Your Privacy Pay for local purchases with cash, rather than by check or credit card.

• Ask manufacturers, catalogue or magazine subscription companies, charities and others with whom you do business not to sell your name to others for marketing purposes.
• Don't release your Social Security Number except to an employer, government agency, lender or credit bureau that requires it to identify you.
• Don't give anyone your credit card or checking account numbers unless you're making purchases with them, and don't put credit card numbers on your checks.
• When filling out warranty or other information cards, don't include optional or unnecessary personal information.
• Federal law gives you the right to ask telemarketers to take your name off of their lists and not to call you again. Keep records of their names, addresses and the dates of your requests. File a complaint with the Federal Communications Commission if they don't remove your name from their marketing lists once you have made your request.
• Personal information is easily obtained by companies promoting sweepstakes, contests and prize offers. Be careful to check out the companies before deciding to do business with them or releasing personal or financial information. Contact your state or local consumer agency or Better Business Bureau. These three types of promotions are in the top 10 consumer complaints nationwide.

Review Files that Contain Information about You

The Medical Information Bureau (MIB) is a data bank used by insurance companies. You might want to obtain a copy of your file and make sure the information it contains is correct. Write to the Medical Information Bureau, P.O. Box 105, Essex Station, Boston, MA 02112.

Credit bureaus keep records about your credit history. You should review periodically your credit reports for accuracy. To limit mail or telephone calls you do not want, you can sign up at no cost for a service that tells some of the telephone or mail marketing companies not to contact you.

Many states have their own privacy laws concerning telemarketing, employment, the use of social security, 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 about specific privacy rights or a referral to the appropriate agency.

Advance Fee Scams

Be wary of ads promising guaranteed jobs, guaranteed loans, credit repair, debt consolidation or similar claims. Many of these are only a way to get you to send money in exchange for little or no service.

• Be cautious when responding to advertisements which use 900 telephone numbers. You can be charged substantial and differing amounts for calls to 900 numbers.
• Be careful with your personal information, including Social Security Numbers, credit card numbers and bank account numbers, among others. Fraudulent businesses could use this information to make an unauthorized charge to your credit card or to withdraw money from your bank account.
• Before you make any payment, ask the business to send you a contract and other information stating the terms of the service and whether you can cancel the service and get a refund.
• Ask how long the firm has been in business and if it is licensed properly. Request that the company send you copies of its business or other licenses. Review all contracts carefully.
• Contact your state or local consumer protection agency and the Better Business Bureau to find out a company's complaint record.
• Some states have enacted laws banning or regulating these types of businesses. To find out the law in your state or to report a fraud, contact your state or local consumer protection agency.
• For information on the dangers of these types of scams, call the non-profit National Fraud Hotline at 1 (800) 876-7060 (toll free).

Special Contracts

Health Clubs

When you are considering whether to join a health club, be cautious of:

• joining clubs that have not opened - they might never open;
• low-cost "bait" ads - many "switch" you to expensive long-term contracts;
• promises that you can cancel anytime and stop paying - check the written contract for the terms of membership and any other promises;
• the fine print - many low-cost ads and contracts severely restrict hours of use and services;
• signing long-term contracts - consumer protection agencies report that many consumers quit using the club within a few months;
• automatic monthly billing to your charge card or debit from a checking account - these are easier to start than to stop; and
• unbelievably low one-time fees with no monthly dues.

Before you sign, be sure to:

• check with your doctor before you begin an exercise program;
• visit the club at the hours you will be using it;
• check to see that promised equipment/services are actually available;
• talk to current members regarding their satisfaction with the club;
• check out several clubs before you sign a contract;
• consider your commitment to a long-term program - good intentions seem to fade as the reality of the hard work sets in;
• read the contract carefully before you sign; is interest charged for a payment plan? Are all promises in writing?; and
• check with your local or state consumer agency or Better Business Bureau for any laws in your state, cancellation rights or complaints against the company.

Dating Clubs/Matchmakers

When you choose to deal with a dating service, be sure to check:

•  from how far away the referrals might come;
• the economic/professional status of dates;
• that dates are club members;
• your ability to review the video/profile/picture, etc. of a proposed date before your phone number is given or a meeting is arranged;
• that the information in your file is clear, e.g., wishes, interests, requirements, "won't accepts;"
• the length of the contract and the number of dates/introductions promised;
• the cost of any additional fee to extend/renew/continue the membership;
• any extra costs associated with club functions (parties, picnics, trips);
• what the club promises to do for the basic fee - there might be little relationship between the cost and performance of the club; beware of very high priced companies;
• that all "guarantees" are in writing;
• for figures on its percent of success and the average length of time needed to locate an acceptable spouse if the club promises to find you a spouse; and
• the cancellation policy - check with your state or local consumer agency for your legal rights; contact your consumer agency or the Better Business Bureau to file a complaint.

Timeshares/Campgrounds

• Prizes and awards might be used in promoting timeshares and campgrounds. They sometimes are overvalued or misrepresented. Free awards might "bait" you into driving a long distance to the property, only to attend a long high-pressure sales pitch to obtain your prize.
• Be realistic. Make your decision based on how much you will use it and if it provides the recreational and vacation purposes you want. Don't decide to purchase based on an investment possibility. It might be difficult or almost impossible to resell.
• Ask about such additional costs as finance charges, annual fees and maintenance fees. Maintenance fees can go up yearly.
• Compare your total annual cost with that of hotels or your normal vacation expenses.
• Ask about availability during your vacation periods. Ask what other timeshares or campgrounds you may use with your membership.
• Talk to individuals, who already purchased from the company, about the services, availability, upkeep and reciprocal rights to use other facilities.
• Get everything in writing and make sure verbal promises are in the written contract. Have an attorney review any contracts/documents and make sure there are no blanks on the papers you sign.
• Do you have cancellation rights? State laws vary. Check with your local or state consumer agency.
• Check for any complaints against the company, seller, developer and management company with your consumer agency or the Better Business Bureau.
• To order a free publication on timeshares and health clubs, contact the Federal Trade Commission, Public Reference Section, 6th & Pennsylvania Avenue, N.W., Suite 130, Washington, DC 20580, (202) 326-2222.

Travel Scams

• Don't be taken by solicitations by postcard, letter or phone claiming you've won a free trip or can get discounts on hotels and airfares. These offers usually don't disclose the hidden fees involved, for example, deposits, surcharges, excessive handling fees or taxes.
• Some travel scams require you to purchase a product to get a trip that's "free" or "two-for-one." You'll end up paying for the "free" trip or more for the product than the trip is worth, and the two-for-one deal might be more expensive than if you had arranged a trip yourself by watching for airfare deals.
• Be wary of travel offers which ask you to redeem vouchers or certificates from out-of-state companies. Their offers are usually valid only for a limited time and on a space-available basis. The hotels are often budget rooms and very uncomfortable. The company charges you for the trip in advance, but will the company still be in business when you're ready to take the trip?
• Check the reputation of any travel service you use, especially travel clubs offering discounts on their services in exchange for an annual fee.

Contact your state or local consumer protection agency or the Better Business Bureau.

• Request copies of a travel club's or agent's brochures and contracts before purchasing your ticket. Don't rely on oral promises. Find out about cancellation policies and never sign contracts that have blank or incomplete spaces.
• Never give out your credit card number to a club or company with which you're unfamiliar or which requires you to call 900 numbers for information.
• Don't feel pressured by requests for an immediate decision or a statement that the offer is only good "if you act now." Don't deal with companies that request payment in advance or that don't have escrow accounts where your deposit is held.
• Research cut-rate offers, especially when dealing with travel consolidators who might not be able to provide your tickets until close to your departure date.
• You can protect yourself by using a credit card to purchase travel services. If you don't get what you paid for, contact the credit card issuer and you might be able to get the charges reversed. Be aware that you have 60 days to dispute a charge.

Rent-To-Own

Although buying in a rent-to-own transaction sounds like a simple solution when you are short of cash, rent-to-own can be expensive. The rental charge can be three or four times what it would cost if you paid cash or financed the purchase at the highest interest rate typically charged in installment sales. Before signing a rent-to-own contract, ask yourself the following questions:

• Is the item something I absolutely have to have right now?
• Can I delay the purchase until I have saved enough money to pay cash or at least make a down payment on an installment plan?
• Does a retail store offer a layaway plan for the item?
• Have I considered all my credit options, including applying for retail credit from the merchant or borrowing money from a credit union, bank or small loan company?
• Would a used item purchased from a garage sale, classified ad or secondhand store serve the purpose?

If you decide that rent-to-own is the best choice for you, here are some questions you should ask before you sign on the dotted line.

• What is the total cost of the item? The total cost can be determined by multiplying the amount of each payment by the number of payments required to purchase the item. Make sure to add in any additional charges, for example, finance, handling or balloon payments at the end of the contract.
• Am I getting a new or used item?
• Can I purchase the item before the end of the rental term? If so, how is the price calculated?
• Will I get credit for all of my payments if I decide to purchase the item?
• Is there a charge for repairs during the rental period? Will I get a replacement while the rented item is not in my possession?
• What happens if I am late on a payment? Will the item be repossessed? Will I pay a penalty if I return the item before the end of the contract period?

Comparison shop among various rent-to-own merchants. Contact your local or state consumer protection agency to find out if there are any complaints on record against the business. Check for any specific state laws. Read the contract carefully and make sure you understand all the terms and get all promises in writing.

Remember, know what you are paying. Compare the cash price plus finance charges in an installment plan with the total cost of a rent-to-own transaction.