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Warm up for 10.8.13 Please answer the following questions in the same section of your notebook as your CNN student logs please. I will check your logs.

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Presentation on theme: "Warm up for 10.8.13 Please answer the following questions in the same section of your notebook as your CNN student logs please. I will check your logs."— Presentation transcript:

1 Warm up for 10.8.13 Please answer the following questions in the same section of your notebook as your CNN student logs please. I will check your logs for CNN and warm ups on Friday, 10.11 1. What is a contract? 2. What is a warranty? 3. How is it legal for a minor, someone under the age of 18, to sign a contract? 4. What are the three parts of a contract? 5. Make up an example of a contract and identify the three parts of a contract.

2 Credit & Banking Hook: Who has a credit score? A person? A gov’t? What is it?

3 Excellent, Good, Poor http://www.freescore.com/good-bad-credit- score-range.aspx http://www.freescore.com/good-bad-credit- score-range.aspx

4 Credit Creditors: Provide money (lenders) Debtors: People who borrow money Credit Cards: Bank or company pays for a purchase, you pay the bank or company later. APR (Annual Percentage Rate): cost of credit each year Average amount of personal debt? In 2011, which city had the most amount of debt?

5 Banking By law, banks must provide customers with a statement about their accounts. Electronic Fund Transfer Act: Banks must investigate an error within 10 business days of a complaint. – Electronic Funds Transfer Act Electronic Funds Transfer Act

6 ATM (Debit) Cards Using these cards is the same process of writing a check. – You must have the $ for a purchase in your account.

7 Stop Payment If a debit card or check book is stolen the bank can cancel the account. – Fees may apply. Notify the bank in 2 days: Notify the bank in 60 days: Afterwards:

8 Lost Credit Cards Only responsible for $50 after reporting a lost or stolen card Fair Credit Billing Act: If a billing error is reported within 60 days, the creditor must respond within 90 days. Fair Credit Billing Act

9 Beware! Balloon Payments: Early payments are much smaller than later payments Acceleration Clause: Creditors can require future payments are made immediately Bill Consolidation: Combining debt into one payment Truth in Lending Act: Must receive basic information about the credit Truth in Lending Act

10 Equal Credit Opportunity Act Consumers cannot be refused credit based on race, gender, marital status, religion or source of income. Equal Credit Opportunity Act Equal Credit Opportunity Act Equal Credit Opportunity Act Equal Credit Opportunity Act

11 Fair Credit Reporting Act Creditors must inform consumers about the information received from a credit bureau Fair Credit Reporting Act Fair Credit Reporting Act

12 Oh No! I can’t pay! Default: A consumer who is unable to pay a debt Fair Debt Collection Practices Act: Protects consumers from abusive and unfair debt collection – Fair Debt Collection Act Fair Debt Collection Act – Fair Debt Collection Act Fair Debt Collection Act

13 Oh No! I still can’t pay! Bankruptcy: Federal courts take control of a debtors assets – May sell items – Remain in credit report for 10 years Default Judgment: A creditor may sue a debtor

14 Still not paying!! Garnishment: employees are forced to give their salary directly to creditors – Wage Garnishment Act Wage Garnishment Act – Wage Garnishment Act Wage Garnishment Act Repossession: Creditors will take the collateral or possession to regain loan. – Rep Video Rep Video


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