Cons. R. Exam 4

Card Set Information

Author:
Anonymous
ID:
272731
Filename:
Cons. R. Exam 4
Updated:
2014-05-01 14:41:22
Tags:
Consumer Rights
Folders:

Description:
Consumer Rights Exam 4
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Anonymous on FreezingBlue Flashcards. What would you like to do?


  1. Factors that effect owning v. renting
    • Lifestyle
    • Location
    • Type of housing
  2. Renting
    • Payment for property use
    • Includes security deposit - advanced payment to cover damage
  3. Landlord - tenant disputes
    • Protections for tenants vary by state
    • Common in college towns
    • Way to prevent is to take pictures of house when you initially rent
  4. Owning intails
    • Home inspection
    • Moving costs
    • Furnishings
    • Utilities
    • Maintenance
    • Stress
  5. Considerations to take when thinking about owning
    • Networth and income
    • Type of home
    • Quality
  6. Mortgages
    • Loans secured by real property
    • Reverse mortgage - pay homeowner in monthly advances or through credit line
  7. Foreclosure
    Legal process where a lender attempts to recover the balance of a loan from a borrower who has stopped making payments
  8. Redlining
    Giving "redlined" area unfair treatment regarding home financing and insureance
  9. Real estate agents
    • Listing / Selling agent
    • Buyers Agent
    • Buyer broker
  10. Leasing
    • Contractual arrangement
    • -Monthly payment
    • -Security deposit
    • -Vehicle condition upon return
  11. Automobile information websites
    • consumer reports
    • edmunds
    • kkb
  12. Car buying decision step 1
    • What kind of car do you need?
    • -#of seats gas milage
  13. Car buying decision step 2
    • How much can you afford?
    • -Total monthly car payments <20% of monthly take home pay
  14. Car buying decision step 3
    • Lease or buy?
    • -Advantage
    • *Less $ up front
    • *May be lower monthly payment
    • -Disadvantges
    • *No car at end of lease w/o additional payments
    • *Extra charges when turning in
  15. Car buying decision step 4
    • Research 
    • -Gather info on -3 cars you're considering
    • -Look at "Best vehicles: list on Edmunds and Consumer reports
  16. Car buying decision Step 5
    • Consider Costs of Ownership
    • -Depreciation
    • -Insurance
    • -Maintenance
    • -Fuel Costs
  17. Car buying decision Step 6
    • Research options
    • -Models
    • -Dealers
    • -Interest rates
    • -Calculate monthly payment
  18. Car buying decision Step 7
    • Test drive
    • -Simulate conditions you'll be using car in
    • -No radio
  19. Can buying decision Step 8
    • Leave the dealer ship
    • -Narrow choices
    • Make deal to purchase
  20. Unfair Vehicle pricing
    • High balling
    • -Offered high amount for trade-in (amount added to new vehicle price)
    • Low-balling
    • -Offering very low price for vehicle, added fees/extras that drive up the price
  21. Car repair
    • Repairpal.com
    • -"Fair price" for repairs
    • -Mechanic ratings
  22. Types of Financial goals
    • Short term
    • Intermediate
    • Long range
  23. Budget
    • Financial plan
    • With fixed expenses (like rent and cable) and variable expenses (like gas a groceries)
  24. Net worth
    Assets minus liabilities
  25. Taxes
    • Payments to the government
    • Tax avoidance - legal money management strategy to reduce taxes (NOT EVADING TAXES)
  26. Savings in the US
    • Low savings rate
    • Emergency fund -You should have 6-9 months of income saved in a liquid account
    • Retirement saving - the sooner you start the better off
    • Mint.com- easy way to track all your accounts at once
  27. Banks must provide
    • APY (Annual percentage Yield)
    • -The standardized
    • -In ads/promotions
    • -Based on 365 day period
    • APYE (Annual percentage yield earned)
    • -On statements
  28. America saves
    • Nation wide campaign to encourage saving money
    • College pilot program
  29. Banking, increasing fee's
    • ATM- much higher then it should be
    • Overdraft protection / fees
    • Ave. to open checking account: $408.76
  30. Impacts of deregulation on consuers
    • -More choice
    • *Interest rates
    • *Smaller banks
    • -Fewer "free" services
    • -Privacy
  31. Other banking issues
    • Lack of basic banking accounts
    • Alternative financial sector
    • Card blocking 
    • -Credit hold (ex. hotels hold $110 for $87)
    • -Debit hold
  32. Financial Planners
    • Fee only
    • Commission only
    • Fee and commission (aka fee based)
  33. Credentials of financial planners
    • CFP - Certified Financial planner
    • NAPFA Member - National association of personal financial advisor
    • CPA - certified public accountant
  34. Things to consider at financial seminars
    • Who is sponsoring?
    • Who is the speaker? 
    • What is their motivation
  35. Interest on credit
    • Cost of using money
    • Rates determined by
    • -Supply (amount lenders are willing to give)
    • -Demand (amount borrowers are willing to pay)
  36. Consumer credit
    • Credit cards, student loans, automobile loans, personal loans - anything but mortgage
    • 4/5 college students use credit cards
  37. Credit cards
    • started 1973
    • Typical cardholder 
    • -8-10 cards
    • -Owes >$4,000
  38. Interest rates - credit cards
    • Tiered lending
    • Balance transfers
    • Cash advance fees
    • Need to Comparison shop
  39. Todays Credit Cards
    • Offering more credit than is "safe"
    • Increasing fees
    • Loss of grace period / reducing grace period
    • Universal default 
    • Minimum payments
    • -$3,173 balance, 1.5% APR min payment
  40. The poor pay more for financial services
    • Check-cashing outlets -$2 to $40
    • Payday loans -470%
  41. Predatory Lending & discrimination
    Unfair deceptive or fraudulent practives of some lenders during the loan origination process
  42. Credit reports
    • Once a year from every major provider
    • -annualcreditreport.com
    • Check for accuracy, ID theft
    • Credit reporting bureaus
    • -Experian
    • -Transunion
    • -Equifax
  43. Credit score
    • Varies betweek 350 and 850
    • -how likely an individual is repay a loan or make credit payments on time
    • *10% types of credit in Use
    • 19% request for new credit
    • 15% length of credit history
    • 30% current total debt
    • 35% payment history
  44. Bankruptcy
    • Legal status for those who can't repay debts
    • Repay some depts & keep most property
    • How mcuh you spend can be more important than income
    • Need saving/smart decision in case of emergency
  45. Insurance
    A financial arangement between individuals and insurance companies used to protect against loss or injury
  46. Insurance industry
    • 1943 McCarran-Ferguson Act
    • -Prohibits federal gov. from regulating insurance or conducting research on insurance industry
  47. Insurance regulations
    • Only at state level -effectiveness varies
    • Exempt from anti-trust laws -there is a cal for repeal
  48. Current consumer issue
    • Early outcomes of affordable care act
    • -Self employed
    • -Colorado
    • -Confusion about the ACA
  49. Consumer rights
    • Hire own appraiser
    • Ask for report on personal information collected by insurance co. -correct misinformation
  50. Consumer responsibilities
    • Choose policy to meet needs
    • Read policies & understand them
    • Look for exclusions & limitations
    • Keep policy records
  51. Auto insurance
    • Think about what insurance companies are doing and what options consumers have
    • Most states require liability coverage - cover bodily injury or property damage
    • Liability insurance -3 numbers
    • 1st - for bodily injury to 1 person
    • 2nd - for bodily injury >1 person
    • 3rd - for property damage
  52. Virginia insurance
    • 3 financial responsibilty options
    • -1 Insurance by company licensed in VA
    • *Must provide minimum limit of liability 25/50/20
    • -2 Uninsured motorist Fee
    • *$ffo paid each year to DMV -drive at own risk
    • -3 Self insurance
  53. Factors of auto insurance premiums
    • Driving history
    • Type of vehicle
    • Gender and age
    • Location
  54. Homeowner's insurance
    • Property insurance 
    • Liability insurance -when someone is injured
  55. Life insurance
    • Buy it based on income, servies expenses you need to replace
    • Not an investment
    • Churning - agent encourages consumers to switch policies to get commission is illegal
  56. State and Insurance
    • States regulate insurance industry
    • Check your ins. co. rating
    • -Insure.com
    • -Consumer reports
  57. Investments
    • Commitment to funds for long-term growth
    • -Purpose: build & maintain wealth
  58. Protection
    • Deposits at banks, saving & loan associations, & credit unions
    • -federal deposit insurance corporations (FDIC)
    • -Credit union insurance corporation
    • Securities investor protection corporation 
    • -Non profit, non governmental
    • -Protects if brokerage goes broke
  59. Investments that are not insured
    • Annuties
    • Cash-value life insurance
    • Mutal funds
    • Stocks
  60. Investment types
    • Stocks - ownership in company
    • Bonds - lending money to company, government
    • Mutual funds - group of investments
  61. Guiding principles
    Diversification - investing in a variety of categories
  62. Retirement
    • Defined Benefit plans - disappearing, based on length of employment and final salary
    • Defined contribution - growing, tax sheltered, like a savings account, portable, employee makes decisions or takes risks
    • Employee stock ownership plan
  63. Consumer behavior -drives
    • To acquire
    • To bond
    • To learn
    • To defent
  64. Globalizations
    • Distribution of goods and services world wide
    • Social responsibility- individual and organizational obligation to act in best interest of society
  65. Sustainable development
    Economic development that provides for human needs without undermining global ecosystem and depleting essential resources
  66. Benefits of advanced stages of economic development
    • Modern medicine
    • Longer life spans
    • New techonology
    • Access to higher education
    • Less physical strenous labor
    • Shorter work weeks
  67. Global problems
    • Wealth inequality - top 1% have 40% of the money in US
    • Pullution - more people die each year from unsafe water than from all violence
    • E-waste - where do our electronics go when we dispose of them
  68. Globalization pros
    • Growing economic interdependence - more choice
    • Improved environmental protection regulation
  69. Globalization Cons
    • International organization can intrude in to national soverignty
    • Gap between the haves and have nots
    • Environmental problems
    • Spread/dominance of american values and culture
  70. Global issue: fair trade
    • Organized social moment seeking equity in international trade
    • -Better trading conditions for producers in developing countries
    • -Promotion of sustainability
    • -Higher social & environmental standards
  71. International consumer movement
    • Consumer international promotes consumer organization and consumer rights
    • United nations guidelines on consumer protection
  72. Ethics
    • Standards of right and wrong that prescribe what human should / should not od
    • Also the study of what is right or wrong

What would you like to do?

Home > Flashcards > Print Preview