INTRODUCTION

Wisconsin consumers pay for many products and services, such as cars, bank accounts, credit cards, health insurance policies, health clubs, phones, and utilities. Most of the companies that sell these goods and services treat people fairly, but consumers should investigate their options carefully before agreeing to pay for anything and may need to speak up to receive the treatment they deserve.

This guide covers some of your consumer rights and offers ideas about where you can turn if you believe your rights as a consumer have been violated. It also offers some suggestions to avoid becoming trapped in a bad deal. In general, you should:

● read all documents carefully before signing anything.

● examine all bills closely.

● keep good records of your purchases, service contracts, and efforts to resolve problems.

● put all complaints in writing, and keep copies for your records.

● ask questions and negotiate actively.

Reading this guide and keeping these guidelines in mind can help you save money and fight illegal treatment effectively in a broad range of consumer transactions.

In each section, the guide briefly summarizes the applicable laws, the available remedies, and the Wisconsin state agencies that may be able to assist you. Many of these agencies have free written complaint procedures.

While this guide provides basic information about consumer protection, it does not serve as legal advice. The law varies greatly in how it applies to different fact situations. In addition, laws - and how courts interpret them - change over time.

If you think you may have a legal problem, consult a lawyer. Many lawyers who focus on consumer protection law will offer you a short consultation for free to determine whether you have a valid legal claim.

AUTOMOBILES

Buying a Car? Tips to make you a wiser car buyer:

● Arrive at the dealership with a clear idea of features and options you want in your car. Print and internet publications like Motor Trend, Consumer Reports, and Kelly Blue Book discuss features, performance, quality, and prices of cars.

● Read window labels about price and condition. Read the title, odometer statement, and any warranties.

● Test drive the vehicle. Drive it cold and warmed up. Test it at highway and city speeds. The dealer will ask to see your driver’s license and may have you take a salesperson along.

● Ask the vehicle’s former owner about its condition, mileage, and use. Dealers are required to give you the name and address if you ask.

● Have the vehicle inspected by a mechanic or body shop before you buy to find any severe hidden damage or mechanical problems the seller did not tell you about. If your county requires emission testing, consider having a test done before you buy. The selling dealership’s inspection does not ensure the vehicle will pass a state emission test.

● If you order a new vehicle from the factory, test drive and inspect it when it arrives at the dealership. You do not have to accept a vehicle that arrives damaged.

● Insist that all oral promises be put in writing on the contract.

● Sign only when you’re ready to buy; you do not have a 3-day right to cancel a contract signed at a dealership. Keep copies of all documents and anything else you sign.

● Contact the DOT’s if the dealer refuses to honor its advertisement or tries to change the details of its offer. You can also contact the Dealers Section to find out if someone else has filed a complaint against the seller or if you have any questions at (608) 266.1425 or email dealers.dmv@dot.state.wi.us.

● Ask to see the vehicle title. If the title is missing or is not in the seller’s name, shop elsewhere.

● Check Internet resources like www.carfax.com for information on the vehicle’s history and mileage. You will need the vehicle identification number (VIN).

Problems with a new car–Wisconsin’s Lemon Law

If your vehicle and its defect are covered by the Lemon Law, you may be entitled to either (1) a full refund of the value of the car or (2) a replacement vehicle.

How do I know if my vehicle is covered by the Lemon Law?

You are protected under Wisconsin’s Lemon Law if all of the following are true:

● Your vehicle is a car, truck, motorcycle, or motor home,

● You took delivery of your purchased or leased vehicle in Wisconsin,

● You are the first consumer to own the vehicle, and it is still under warranty,

● Your vehicle has a defect that the dealer could not fix after four tries, OR your vehicle has some defect(s) and you were unable to use it for a total of thirty days,

● The above problem(s) occurred less than one year after you took delivery of your vehicle.

How do I know if my vehicle has a defect that is covered by the Lemon Law?

Your vehicle has a defect that is covered by the Lemon Law if both of the following are true:

● The vehicle has a problem which affects its use, value, or safety,

● The problem is covered by the warranty.

Any problems resulting from abuse, neglect, or alteration of the vehicle are not defects under the Lemon Law.

What should I do if I think I meet all of the requirements?

If you are protected under the Lemon Law and your vehicle has a defect that is covered by the Lemon Law, you should do the following:

● Keep all of your paperwork, including purchase contracts, warranties, repair orders and correspondence with the dealer or manufacturer.

● Write to the vehicle’s manufacturer and ask for a refund or a replacement vehicle in exchange for the defective vehicle.

● Call the Dealer Section of the Department of Transportation (DOT) at (608) 266.1425, and ask whether the manufacturer has a certified arbitration program. If so, you must use it. After you and the manufacturer explain the problem to the arbitrators, they make a decision that you may or may not choose to accept.

● Consider consulting an attorney before the arbitration process or afterwards if you are unsatisfied with the arbitrator’s decision.

Buying a used car? How to spot a car with a turned-back odometer?

● Make sure mileage and wear make sense.

● Take a long, careful look at the vehicle. Does the condition match the miles on the odometer? Is there excessive wear in the interior, especially in the driver’s area? Look for maintenance stickers, warranties or other paperwork that may indicate a higher mileage.

● Are the miles low, but the tires new or mismatched? The date the tire was manufactured can be determined by coded numbers on the tire.

● Have parts been replaced that normally would not have been replaced on a low mileage vehicle? Pay attention to parts such as batteries, hoses and clamps, and fan or air conditioning belts.

● Do an odometer accuracy check at www.carfax.com for free.

● If you suspect the car’s odometer was turned back, contact the Wisconsin DOT Odometer Fraud Unit at (608) 266.1425. You may also contact an attorney because odometer tampering is prohibited by federal law.

Problems with the used car you bought from a dealer?

Used cars sold by Wisconsin dealerships are required to have a sticker in the window called the Wisconsin Buyer’s Guide. Read it carefully before you buy. The window sticker describes the items that the dealer inspects, explains defects, and lists any included warranties. Dealers must inspect the vehicle and disclose any noticeable defects. If you notice a defect shortly after purchase that was not disclosed on the buyer’s guide, ask the dealer to cover the cost of the repair. If the dealer refuses, you should consider filing a complaint with the DOT Dealer Section and/or consulting an attorney.

General tips for resolving any car-related problem:

Contact the dealership if you haven’t already. Tell the dealership about the problem and give the dealer an opportunity to resolve it. Keep a record of any contact with the dealer. Get an invoice for any repairs, and write down the date, time, and who you spoke to at the dealership.

Follow these tips when talking with the dealership;

● Speak to the owner or manager about your concern.

● Use a friendly, not an angry tone. Assume the problem is unusual and the dealership wants to fix it. Be reasonable, polite, and discuss the facts.

● Let the dealer know you’re a loyal customer and you’re complaining because you want to continue being a customer. The dealer may not try as hard to please you if it’s already lost your business.

● Tell the dealer exactly what you want - a repair, refund, apology, etc.

If you don’t resolve your dispute with the dealer, consider:

● Filing a complaint with the DOT, Dealer Section.

● Consulting a lawyer.

Car Repair Problems

Car repair shops must get your authorization for any repair. This includes businesses that install or repair accessories - such as stereos and cellular phones. It also covers shops that rebuild parts for consumers. Consider the following car repair tips:

● Look for a repair shop before you need one. Ask friends and family to recommend repair shops they trust.

● Make sure you ask if the repair work will be under a warranty and get it in writing. Read and compare warranty policies when selecting a shop.

● When your car needs repairs, be sure the shop is capable of performing those repairs. Look for mechanic certification and membership in professional associations.

● Even though you bring in your car with a specific problem, the shop may recommend additional repairs. If you are uncertain whether or not the work needs to be done, you may want to get a second opinion. Always get a second opinion and a second estimate for expensive repairs.

● Repair shops must give you a written estimate if the bill will exceed $50. If you don’t want an estimate, the shop must still give you a copy of the repair order describing what repairs will be done.

● No unauthorized repairs are allowed. But if you drop off your car before the shop opens with a note to repair something - and you don’t ask them to call you with an estimate - the shop can charge whatever it wants.

● When calling for additional authorization, the shop must tell you both the cost for the additional repairs and the new total cost of the complete job. Make sure you leave a telephone number where the shop can reach you.

● When work is completed, the shop must provide you with an invoice describing the repairs, replaced parts (specifying if used or rebuilt), and warranties for repairs and parts.

● The shop may hold your vehicle until you pay for authorized repairs. However, once you have paid for authorized repairs, the shop cannot keep your vehicle because you refused to pay for unauthorized repairs.

Tips for selling a vehicle:

● Have a vehicle titled in your name.

● Pay what you owe to any lien holders before you sell the car.

● If the car was ever seriously damaged, call the DOT at (608) 266.1425,

ask if the title should be branded, (in other words, indicate serious

damage), and how to do so.

● Keep the title until the buyer pays you. Have all owners sign the title. Complete the odometer statement at the bottom of the title. Give the most recent title to the buyer. Photocopy and save the signed title and bill of sale.

● Take your license plates off the car and keep them.

● Get a dealer license if you plan to sell more than 5 cars a year.

● Don’t take a personal check; insist on a cashier’s check or a money order.

Where can I learn more?

For questions about car repair problems contact:

Department of Agriculture, Trade, and Consumer Protection

2811 Agriculture Drive

P.O. Box 8911

Madison, WI 53708-8911

(608) 224.5012

(800) 422.7128

For all other car problems contact:

Department of Transportation

Dealer Section

P.O. Box 7909

Madison, WI 53707-7909

(608) 266.1425

DEBT COLLECTION

Can I be sued if I fail to pay a debt?

Yes. However, first the creditor must notify you that you are in default and give you the chance to repay the debt.

What should I do if a debt collector is contacting me?

Most importantly, keep a record of the contacts. Debt collectors sometimes violate consumer protection laws during these contacts, and keeping records can help you document any violations. If the contact is by letter, keep the letter and its envelope. If the contact is by phone, ask for the full name of the person making the call, the company for which he or she works, and the creditor’s name. Write down the time and place that you receive each call and a summary of the conversation. If the call is taken by an answering machine, keep a copy of the tape containing the call. This information will be helpful if you file a complaint with the Wisconsin Department of Financial Institutions or sue the debt collector.

Can a debt collector contact me at any time and any place?

Debt collectors cannot call you at a time or place that they know is inconvenient for you, and never before 8 a.m. or after 9 p.m. If you notify debt collectors that a particular place or time of day is inconvenient for you, they must stop calling at that time or place. It is best to notify debt collectors of any inconvenient time and/or place in writing and keep a copy of the letter for your records.

What else can’t debt collectors do?

In general, debt collectors may not harass consumers, their spouse or any member of their immediate family. Harassment includes using threatening or obscene language, threatening violence, impersonating a law enforcement official, or threatening criminal prosecution. In addition, a debt collector may not misrepresent information in an attempt to collect the debt. If a debt collector knows that you are represented by an attorney in connection with the debt, the debt collector cannot contact you directly.

What can I do if I feel a debt collector is harassing me?

● Notify the debt collector in writing that you no longer wish to be called. If you do, the debt collector must stop calling. If the debt collector continues to call you, refer them to your letter and politely hang up. Keep a copy of the letter you write to the debt collector. Log any further calls.

● Contact an attorney. Filing a lawsuit under federal and state unfair debt collection laws may entitle you to money damages, including damages for emotional distress, and your attorney fees if you are successful. However, even if a court concludes that the debt collector violated the law, you will still owe the debt, unless the creditor agrees to write it off.

● File a complaint with the Wisconsin Department of Financial Institutions

(608) 261.9555.

Can a debt collector contact my employer?

A debt collector may only communicate with your employer to verify your employment or earnings.

Can a creditor repossess my personal property if I default on my payments?

Wisconsin law prohibits “self-help” repossession of property (repossession without a court order) obtained by credit for personal use that is valued at $25,000 or less at the time of the sale. The law also prohibits a repossession that breaches the peace.

A creditor cannot repossess personal property unless:

● The creditor files a lawsuit against you for nonpayment on the debt and obtains a judgment from the court; or

● You voluntarily surrender the property.

If the debt collector files a lawsuit against you, you will be served with legal papers. These papers tell the date, time and court where the lawsuit will be heard. If you do not appear at the set time and place, the judge can enter a default judgment against you. If you are served with papers, you may want to seek the advice of an attorney.

If a creditor repossesses your personal property in violation of the law, you may be entitled to:

● Keep the property without making any more payments;

● The value of the property if the creditor has since resold it;

● A refund of all payments you have made to that point;

● Your attorney fees.

When can a creditor garnish my wages?

To garnish your wages, creditors must follow the same procedure that applies to repossession. The opportunity to garnish and the amounts that may be garnished are quite limited. For example, a creditor cannot deprive you of the ability to pay for basic necessities. Wisconsin law does not allow garnishment that would drop you below the national poverty level for your family size.

Debt Consolidation Companies:

What is a debt consolidation company?

A debt consolidation company claims that it can lower your debt by negotiating a payment plan with your creditors. You pay the company an amount over time that is lower than the total debt, and the company promises to pay each of your creditors a negotiated payment. If the creditor is unwilling to negotiate a payment plan, you should not be obligated to pay the debt consolidation company for any services to the creditor. There is usually a set up fee to cover the cost of obtaining and monitoring your credit report, and setting up your account. The company, however, may not charge interest on the amount of money paid for its services. The company may also request access to your checking account so that it can automatically withdraw your monthly payment that is used to pay your creditors.

Will my creditors stop asking for payments as soon as I sign up with a debt consolidation company?

Not automatically. The debt consolidation company will usually take 3-5 weeks to set up a payment plan. During this time, it may be a good idea to inform your creditors that you have made arrangements with a consolidator.

How do I know if the company is legitimate?

A debt consolidation company must be licensed with the Wisconsin Department of Financial Institutions (DFI) to do business in this state.

May I cancel the contract?

You may cancel a contract with your debt consolidation company, but there may be a cancellation fee. A description of the cancellation fee must be included in your contract.

What are the maximum fees that a debt consolidation company can charge me?

According to DFI, the debt consolidation companies must follow one of the following fee plans: (1) the initial set up fee cannot exceed $50, or (2) the maximum monthly fee cannot exceed 10% of the total amount that the debt consolidation company pays to the creditor(s) or $120 in any one calendar month, whichever is less.

What must a debt consolidation company disclose?

The terms and length of payment(s), the due date for payment(s); the company’s fees; the amount of each payment to be paid by or on behalf of the debtor; and a statement that allows the debtor to examine his or her accounts in the company’s office during regular office hours.

What can I do if a company fails to fulfill its obligation?

File a complaint with the Wisconsin Department of Financial Institutions (608) 261.9555.

BANKS AND CREDIT UNIONS

What is the difference between a bank and a credit union?

Credit unions are nonprofit corporations governed by their members, while banks are for-profit corporations that are owned and operated by private investors. Members of credit unions typically vote for the credit union’s board of directors. Banks and credit unions must comply with a variety of state and federal consumer protection laws, including disclosure requirements. Banks and credit unions offer similar services (such as savings and checking accounts). When obtaining a loan through a bank or credit union, be sure you:

● Read and understand all paperwork before you sign. Ask for an explanation of any part of the paperwork you don’t understand.

● Pay particular attention to fees or other charges included in the loan.

How do I file a complaint against a financial institution?

Obtain complaint forms by calling the appropriate agency or by using its website.

● State Chartered Banks Credit Unions, and Savings and Loans:

◘ Wisconsin Department of Financial Institutions (DFI)

(608) 261.9555

www.wdfi.org

● Federally Chartered Banks

◘ Federal Deposit Insurance Corporation (FDIC)

877.ASK.FDIC (877.275.3342)

www.fdic.gov

● Federally Chartered Credit Unions

◘ National Credit Union Association (NCAU)

(703) 518.6300

www.ncua.gov

● Federally Chartered Savings and Loans

◘ Office of Thrift Supervision

800.842.6929

www.ots.treas.gov

Bank Accounts

Banks offer many products, including check cards, debit cards, checking, and savings accounts. Each of these financial products may carry costs to the consumer.

● Read all paperwork when you open the account and so that you understand fees charged for using the products.

Checking and Savings Accounts

These accounts may charge a variety of fees. Some accounts require minimum balances to avoid monthly charges. Shop around for lower monthly fees. Be sure to:

● Keep your checkbook register up to date. Subtract money spent as you spend it.

● Record both checks and electronic transactions so that you do not inadvertently overdraw your account. Record and subtract any fees.

● Balance your checkbook monthly.

● Examine your bank statement each month for errors.

Automated Teller Machines (ATM)

ATMs offer easy access to existing bank accounts. Many financial institutions charge fees for using ATMs. Be aware that using an ATM other than your bank’s ATM may mean that you will pay a fee to that bank and your bank. In effect, you may be charged twice.

What are debit cards?

Check cards, ATM and combined ATM/check cards are types of “debit” cards. Consumers generally use them to withdraw cash, perform routine banking transactions at ATM machines (such as deposits and transfers) and make purchases. While they may look like credit cards, debit cards operate very differently. Unlike a credit card, the funds are drawn directly from the consumer’s bank account.

Are there fees attached to debit and check cards?

Yes. Often a “point of sale” transaction fee will be charged each time you use your card or if you exceed a stated limit.

● Be sure to subtract this fee from your checkbook balance.

● Ask about annual, monthly, and/or transaction fees when you open the account.

Am I protected from liability for a lost or stolen debit card?

Not necessarily. Consumers have less protection with debit cards than with credit cards. Because the debit card is often tied to your checking account, unauthorized use can cause significant loss to the consumer.

Tips for using Debit Cards and Combination Cards

● When you first receive the card, jot down the number to call if your card is lost or stolen. Keep this number with you at all times.

● Notify the card issuer immediately if your card is lost or stolen.

● If you report your debit card lost before it is fraudulently used, the card issuer cannot hold your responsible for any fraudulent use. If the card is fraudulently used but you report it missing within 2 days, your liability is limited to the amount of fraudulent withdrawals or $50, whichever is less. After two days, your liability increases up to $500. If you do not report the card missing within 60 days, you can be liable for all of the fraudulent withdrawals.

What can I do if the bank makes a mistake on my monthly account?

If an error or other problem appears on your monthly account statement, notify the financial

institution in writing immediately. Once notified, the institution has 10 days to investigate. If

more time is needed, the institution may take up to 45 days for the investigation, but only if it

credits your account in the amount of the error. If the error involves a debit card

transaction the institution has 20 days to investigate and may take up to 90 days if needed.

After the investigation the financial institution will correct the error or explain why it believes

there is no error. If you wait more than 60 days to report an error the financial institution has no

obligation to investigate or correct errors.

FINANCIAL SERVICES OFFERED BY OTHER INSTITUTIONS

Some companies offer alternative financial services that are different from those offered by traditional banks or credit unions. The most common types are check cashing stores, payday loan outlets, auto-title loan and rent-to-own companies. These companies usually do not require a credit check but they charge extremely high interest rates for their services. These services are typically marketed to consumers with no credit or bad credit.

What are check cashing businesses?

A check cashing business (sometimes called a currency exchange) will cash your check for a fee. Always ask about the fees before cashing your check. The fee ranges from 2% to 10% of the amount of the check.

What is a Payday Loan?

A “payday loan” involves writing a post-dated check to a payday lender. In return, the consumer immediately receives cash. For example, a consumer writes a check for $240, post-dated for two weeks later, and receives $200 in cash. The lender waits two weeks before cashing the consumer’s check. The $40 difference between the amount of the check and the cash the consumer receives is a finance charge.

Before applying for a payday loan you should know:

● Payday borrowing is very expensive because lenders can charge as much interest as they wish.

● The interest on payday loans is typically greater than 500%.

● If you do not pay off your loan within the initial waiting period, the payday lender charges an additional fee to extend your deadline for repayment. In the example above, the consumer would pay another $40 to “roll over” the loan for two more weeks.

● The more times you “roll over” your loan, the worse the deal gets. You can end up paying many times more in fees than you originally borrowed.

What are Auto-Title Loans?

In an auto-title loan, the lender puts a lien on the title to your car until the loan is paid, typically for 30 days. Once the loan and interest are paid back, the lien should be released. If you fail to repay the loan, the lender may eventually take possession of your car. Be aware that:

● Like payday loans, the interest rate is very high; typically 300%.

● The title-loan company places a lien on your vehicle through the Department of Motor Vehicles.

● There may be a waiting period before the company permanently takes your title. Ask about this before taking out an auto title loan.

How do Rent to Own Agreements Work?

Rent-to-own agreements cover a variety of household items like large appliances, televisions, stereos, and furniture. Under most rent-to-own contracts you can take the merchandise home today, usually without a down payment, and begin making monthly or weekly payments. Generally, no credit check is required. Some companies provide free repairs or maintenance while you rent the merchandise. Once you have made all of your scheduled payments, you own the merchandise. However, by that time, you will probably have paid two or three times the cash price of the goods. This is an expensive way to buy goods and you should consider lower-cost options such as credit or layaway plans.

● Read your contract before you sign. Make sure the rental payments in the contract equal the cost that the sales person told you.

● Understand the total amount of payments necessary to own the item.

● Understand the consequences of late payments. Some companies immediately start the repossession process if you are late on a payment.

● Understand the return policy. Some companies do not allow returns.

● Understand possible penalties if you stop payments, which may include fees or repossession.

● Ask if you must pay for repairs.

● Ask about delivery and pickup charges.

What are Tax Refund Anticipation Loans?

These are loans against your tax refund and are very expensive. Tax preparers get: an application fee for the loan, a handling fee to file the return electronically, and a percentage of the loan, which is charged as interest.

● The cost of this loan can average $150, which will be deducted from your tax refund.

● There are free tax preparation services such as the Volunteer Income Tax Assistance program (VITA). While VITA does not make refund anticipation loans, it files your return electronically for free and you should receive your refund within a few weeks. Call (608) 266.2772 or visit VITA’s website for a list of sites that offer services at www.dor.state.wi.us/faqs/vita.html.

CREDIT

Credit Reports

What does a credit bureau do?

There are three national credit bureaus: Equifax, Experian and Transunion. These bureaus gather information about a consumer’s credit history from banks, loan companies, and other creditors and compile it into a credit report. The credit report is made available to other potential creditors, such as financial institutions and lenders, as well as insurance companies. Credit reporting agencies do not decide whether you are eligible for credit, but credit reports have a huge impact on your ability to receive credit.

What is a credit score?

Credit scoring was created to provide creditors with a quick means of rating a consumer’s credit history. The precise methodology used to determine a credit score is kept secret. Credit scores can be based on a variety of factors including: a consumer’s bill-paying history, number and type of credit cards, collection actions, outstanding debts and age of accounts. The scores assigned by each credit bureau can differ greatly because each weighs different factors. The lower the score, the higher a credit risk the consumer is understood to present.

Who can obtain my credit report?

Credit bureaus do not need your approval before they release your report, and they do not have to notify you after they release it. However, federal law limits the situations in which credit reporting agencies can release your credit report. They may do so only:

● In response to a court order.

● By your written request.

● In connection with a credit transaction for which you are being considered (with or without your knowledge) or are otherwise involved, such as a loan application.

● For employment or investment purposes.

● For the purposes of underwriting your insurance.

● If you apply for government benefits; or

● For any other legitimate business purpose.

How can I get a copy of my credit report?

Since credit reports often contain incorrect information that can negatively affect your ability to obtain credit, it is a good idea to obtain a copy of your credit report to verify its accuracy once a year. This provides you with the opportunity to correct errors and protect yourself from identity theft.

If you have been denied credit, you are entitled to receive a free copy of your credit report. Simply request a copy from the credit-reporting agency that supplied the report to the creditor. Otherwise, in Wisconsin where credit bureaus are not required to provide any free reports, each report will cost you approximately $9. You can obtain a copy of your credit report by contacting one or all of the three major credit bureaus:

Equifax

Equifax Credit Information Services, Inc.

P.O. Box 740241

Atlanta, GA 30374

1.800.685.1111

http://www.equifax.com

Experian

Experian Information Solutions

P.O. Box 919

Allen, TX 75103

1.866.200.6020

http://www.experian.com

TransUnion

Trans Union

P.O. Box 97328

Jackson, MS 39288-7328

1.800.916.8800

http://www.transunion.com

or get all three at www.myfico.com

What can I do if I believe the information in my credit report is inaccurate?

Write to the credit bureau immediately and describe the error in as much detail as possible. The agency must investigate your request and correct the error, if one is found. If a correction is necessary, the agency must inform every business that has recently received your report that a correction has been made. If the dispute is not resolved, you have the right to file a brief statement describing the nature of the dispute with the credit reporting agency. This statement, or an accurate summary of the statement, must be included in any future credit report concerning you. Since the reports from the three major credit bureaus may contain different information about you, it is a good idea to obtain a report from each of them.

Additionally, you should contact the company that provided the incorrect information. It may verify the mistake and write a letter on your behalf requesting that the credit reporting agency fix the error.

How do I protect myself from ruining my credit score?

Protect yourself because no one else will. Remember that it is your responsibility to know how much credit you are able to pay off each month. Creditors make money when you stretch out your payments or pay late.

At the very least, make the minimum payment on all your bills. Late fees are exorbitant and many contracts provide that missing one payment will result in a higher interest rate.

Warn your kids that credit card debt can ruin their credit. Young adults are targets for credit cards they cannot pay off; educate them about responsible credit use.

CREDIT CARDS

Many consumers receive mailed advertisements for new credit cards. The advertisements often contain offers for special goods and services or low introductory rates as a way to encourage consumers to accept the new card.

Can I minimize this mail?

Yes, you can. Write to request to be removed from mailing lists:

Direct Marketing Association

Mail Preference Service

P.O. Box 9008

Farmingdale, NY 11735-9008

What are “teaser” interest rates?

“Teaser” interest rates are artificially low introductory interest rates that companies advertise to encourage you to accept their card. Most teaser rates are good for a limited time. Aft