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Consumer Awareness

Consumer Awareness. Caveat Emptor. Half a million Fraud Complaints in 2006 $1.1 billion in total losses $591 million in Internet fraud Average Loss of $3,257 per person (According to the Federal Trade Commission). The Savvy Consumer. Consumer Awareness.

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Consumer Awareness

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  1. Consumer Awareness

  2. Caveat Emptor • Half a million Fraud Complaints in 2006 • $1.1 billion in total losses • $591 million in Internet fraud • Average Loss of $3,257 per person (According to the Federal Trade Commission)

  3. The Savvy Consumer

  4. Consumer Awareness • Ensuring that when you purchase goods and services you are informed, alert and knowledgeable. • Making deliberate spending decisions. • Knowing the frauds and rip-offs that are out there.

  5. Why me?

  6. Why me?

  7. The Impact of Advertising • Driver’s Wanted • Just do it! • Head for the Border • 1st Amendment • 7th Amendment

  8. Can you guess the brand and the year?

  9. Common Advertising Techniques • Beauty Appeal • Celebrity Endorsement • Escape • Independence/ Individuality • Intelligence • Lifestyle • Nurture • Peer Approval • Rebel • Rhetorical Question • Scientific/Statistical Claim • Unfinished Comparison/Claim

  10. Empty Promises • Meaningless Terms • Greatly Reduced • Below Cost • Now or Never • Special Purchase • Misleading Ads • We finance E-1s and up! • Specialists in Military Financing! • Instant Financing! • Free ride to the store! If it sounds too good to be true, it probably is!

  11. The Impact of Technology • 80% of people ages 18 to 29 use the internet on a regular basis • 40% of this age group bank on-line • 68% of this age group make on-line purchases Safe computing is a critical part of being a savvy consumer!

  12. How to Deter

  13. How to Detect • Misrepresentations: not necessarily illegal, but misleading • Door-to-door sales, sweepstakes prizes and contests, free gifts, unordered merchandise • Scams: an unfair act of exploitation • Free home inspection, get-rich-quick deals, work-at-home schemes, internet scams and predatory lending • Frauds: A deliberate deception • Auto repair fraud, pyramids and ponzi’s, slamming and cramming, phishing, internet and telemarketing fraud, identity theft

  14. Internet Fraud • Top scams of 2006 • On-line Auctions • General Merchandise Sales • Fake Check Scams • Nigerian Money Offers

  15. Predatory Lending • Payday Loans • Short-term cash loans • Borrower leaves a post-dated personal check for amount and interest • To pay, borrower can redeem check for cash, allow the check to be deposited, or pay a finance charge and roll over the loan for another period • The average user of payday loans gets eight to thirteen loans per year! Average Payday Loan charges 470% APR! Payday Loans are Debt Traps!

  16. Predatory Lending • Rent-to-Own • Tax Refund Anticipation Loans • Various Mortgage Arrangements (ARMS, Interest-Only) • Subprime Lending • Home Equity Lines of Credit • Teaser Rates on Credit Cards • Auto Title Loans • Overdraft Protection on Checking Accounts

  17. Identity Theft • Deter against Identity Theft • Safeguard your mail • Opt out of unsolicited credit offers • Guard your wallet • Take your receipts • Safeguard your checks

  18. Detect Identity Theft • Missing bills • Mysterious trade lines on your credit report • Credit Cards you didn’t apply for • Sudden denial of credit

  19. Defend • Remember the Basics: • Know why the military is targeted • Understand the impact of advertising • Know what you can afford: have a budget and stick to it • Separate your needs from your wants • Comparison shop • Don’t buy on impulse • Opt out of calling, mailing, and e-mail lists • Protect personal information and your computer • Be familiar with current scams in the marketplace

  20. Defend: Make Smart Purchases • Get agreements in writing, keep all receipts • Don’t be rushed • Know who you are dealing with • Take prompt action

  21. Defend: Borrow Wisely • Check with your credit union or bank first • Look out for APRs • Know all the terms of the deal • Use Navy Legal Services Office

  22. Defend: Take Action! • Contact the seller first • Go to the company president or the manufacturer • Use your consumer advocate resources if you are still not satisfied

  23. Defend: Identity Theft • Place a fraud alert on your credit report • Close accounts that have been tampered with • File a police report • Keep a journal of all contacts • Contact the Federal Trade Commission

  24. Your Legal Rights • Know how to cancel a contract • Cancel in writing • Keep a copy of your cancellation letter • Send Certified Mail Return Receipt Requested • Keep everything until situation is resolved • Cooling Off Periods • Doesn’t apply to many purchases

  25. Your Legal Rights • Federal Protection • Servicemembers Civil Relief Act • Consumer Bill of Rights • Fair Credit Billing Act • 7th Amendment—Right to Trial by a Jury • The Military Lending Act of 2007 • State Protection • State Lemon Laws (aka Motor Vehicle Warranty Enforcement Act) • State Usury Laws

  26. Sources of Help • The Command Financial Specialist • Fleet and Family Support Centers • Navy-Marine Corps Relief Society • Consumer Credit Counseling Service • Navy Legal Services Offices (NLSO) • State Attorney General or State Office of Consumer Affairs • The Better Business Bureau • The Armed Forces Disciplinary Control Board

  27. Internet Resources Sources of Help for Military ConsumersHandout

  28. Print your Certificate Click on the following link to add your name to the certificate and print it: Consumer Awareness

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