1. IDENTITY THEFT AND FRAUD CARL JOHNSON FINANCIAL LITERACY JENKS HIGH CSHOOL

2. PROTECTING YOUR CREDIT  What can you do in case of a billing error?  Notify creditor in writing and include any/all information that might support your case  Telephone calls is not sufficient and will not support your rights!  Pay the portion of the bill that is not in question  The creditor must acknowledge you within 30 days  Within two billing periods (90 days), the creditor must either adjust your account, or tell you why the bill is correct  If the creditor made a mistake, you are not responsible for finance charges on the disputed amount  If no mistake is found, the creditor must promptly send you an explanation of the situation, and a statement of what you owe, including any finance charges that accumulated and any missed payments you missed while you were questioning the bill

3. PROTECTING YOUR CREDIT RATING  A creditor may not threaten your credit rating or do anything to damage your credit reputation while you are negotiating a billing dispute  A creditor may not take any action to collect the amount in question until your complaint has been answered  According to the Fair Credit Billing Act, if your purchase a defective item and the store will not accept a return, you may tell your credit card company to stop payment because you made a sincere attempt to resolve the problem

4. DEALING WITH STOLEN IDENTITY  If someone has stolen your identity, the Federal Trade Commission recommends that you take three steps immediately  Contact the Credit Bureaus  Contact the Creditors  File a Police Report  Under the Consumer Credit Protection Act, the maximum amount you must pay if someone uses your card illegally is $50  If you inform the company before the card has been used, you have no liability  Many credit card companies do not require the cardholder to pay even the maximum amount if the card is used

5. PROTECT YOUR CREDIT INFORMATION ON THE INTERNET  Use a secure browser  Keep accurate records of online transactions  Review your monthly bank and credit card statements  Read the privacy and security policies of websites that you visit  Keep your personal information private  Never give your password to anyone online  Do not download files sent to you by strangers

6. CONSUMER CREDIT PROTECTION LAWS  Truth in Lending and Consumer Lending Acts  If a creditor fails to disclose required information, or gives inaccurate information, you can sue for any money loss you suffer  Equal Credit Opportunity Act (ECOA)  If you think a creditor has discriminated against you for any reason prohibited by the ECOA, you may sue for actual damages, plus punitive damages  Fair Credit Opportunity Act  A creditor that fails to follow the rules that apply to correcting any billing errors will automatically give up the amount owed on the item in question and any finance charges on it, up to a combined $50

7. CONSUMER CREDIT PROTECTION LAWS  Fair Credit Reporting Act  You may sue any credit bureau or creditor that violates rules regarding access to your credit records, or that fails to correct errors in your credit files  Consumer Credit Reporting Reform Act  Places the burden of proof for accurate credit information on the credit bureau, rather than the consumer…If a creditor or credit bureau verifies incorrect information, you can sue for damages

8. YOUR RIGHTS UNDER CONSUMER CREDIT LAWS  If you believe that you have been refused credit because of discrimination, you can take the following steps  Complain to the creditor  Let the creditor know that you are aware of the law  File a complaint with the government  You can file a complaint to the appropriate governmental agency  See chart on page 184  If all else fails, sue the creditor  You have the right to bring a case in federal district court  You can win damages up to $10,000 and also recover reasonable attorney’s fees and court costs

9. KEY TERMS  Federal Trade Commission (FTC)– A federal agency that enforces consumer protection  Fraud – Someone who knowingly deceives you for their own personal gain  Identity Theft – Using a person’s name or personal information without the person’s permission to steal money or get other benefits

10.  Advance Fee Loan Scams  Buyers Clubs  Credit Card Insurance  Credit Repair  Prize Promotions  Internet Services  Pyramid/Ponzi Schemes  Information Services  Government Job Offers  Business Opportunities TOP 10 FRAUDULENT ACTIVITIES REPORTED

11. TIPS TO AVOID BEING A VICTIM OF FRAUD  The greater the potential return, the greater the risk  Investments seldom exist without some risk involved  Always get all information in writing before you give away any money  Never let emotions interfere with business decisions  Never invest what you can’t afford to lose  Legitimate offers will always be there tomorrow  Take time to do careful research  If an offer sounds too good to be true – it probably is!  Do not send cash by mail, bank transfer or messenger

12.  Bait and Switch  Bankruptcy Fraud  Con Games  Embezzlement  False Advertising  False Billing  Forgery  Health Fraud  Identity Theft  Insurance Fraud  Long Firm Fraud  Marriage Fraud  Pyramid/Ponzi Schemes  Security Fraud COMMON KINDS OF FRAUD

13. METHODS THAT ID THIEVES USE TO GET YOUR INFORMATION  Dumpster Diving  Skimming  Phishing  Changing Your Address  Stealing  Pretexting  Hacking