CONSUMER AWARENESS Learning Activity 6 - PowerPoint Presentation

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CONSUMER AWARENESS

Learning Activity 6

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THE PSYCHOLOGY OF ADVERTISING

Berating

Fear

Buzz Words

Association

Personalized

Emotional

Informative

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DEFINING DECEPTION

Fraud

A deliberate deceptionCon Requires winning a victim’s

CON

fidence

Rip-Off

An unfair act of exploitation, not necessarily illegal

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SCOOP ON SCAMS

Auto Repair Rip-Offs

Bait and SwitchInvestment SchemesPrize PromotionsTitle LoansPayday Loans Questionable Charities

Credit Repair

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AUTO REPAIR RIP-OFFS

MisdiagnosisLesser Quality Parts

OverchargingWomen #1 Target

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BAIT AND SWITCH

‘If it seems too good to be true, it probably is.’

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INVESTMENT SCHEMES

Known as Ponzi or Pyramid Schemes

Offer high rates of return with no riskClaim to have high-level financial connections or are privy to inside informationEventually they collapse and you lose your investment

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PRIZE PROMOTIONS

Electronic certificates

Offers look good, but can be deceptiveUsually require additional fees

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TITLE LOANS

DON’T DO IT!

DON’T EVEN THINK ABOUT IT!NOT NOW!NOT EVER!

NOT UNDER ANY CIRCUMSTANCES

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TITLE LOAN EXAMPLE

YOU BORROW $1,000 for 1 year

MONTHLY PAYMENT $ 300 (approx)YOU REPAY $3,600Interest Rate: 260 Percent

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PAYDAY LOANS

DON’T DO IT!

DON’T EVEN THINK ABOUT IT!NOT NOW!NOT EVER!NOT UNDER ANY CIRCUMSTANCES

!

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WHAT IS A PAYDAY LOAN?

Small LoansRepayment Due On Next Payday

You Write Post-Dated CheckExtremely high interest rates-can be as much as 500% or more

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FACTS ABOUT PAYDAY LOANS

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. The typical two-week payday loan has an annual interest rate ranging from 391 to 521 percent

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Since its inception in the 1990s, the payday lending industry has established over 22,000 locations which originate an estimated $27 billion in annual loan volume

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The typical payday borrower remains in payday loan debt for 212 days of the year

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Studies have shown that payday borrowers are more likely to have credit card delinquency, unpaid medical bills, overdraft fees leading to closed bank accounts, and even

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QUESTIONABLE CHARITIES

Level of Law Enforcement and Emergency Services Does

NOT Depend on Your DonationContributing to a Law Enforcement “Association” Will NOT Get You Out of a Ticket

Beware of Copycat Organizations

Request Written Information Before Donating

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CREDIT REPAIR SCAMS

"We can erase your bad credit! 100% guaranteed"

"We can remove bankruptcies, judgments, liens, and bad loans from your credit file, FOREVER!""Create a new credit identity - Legally!“Time and responsible spending habits are the only ways to erase bad credit

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CREDIT REPAIR CRIME

No One Can Legally Remove Accurate Information

Some Attempts Are Criminal Acts

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TIPS ON INTERNET SHOPPING

Know or Research the Company

Understand the offer

Be Careful With Personal Information

Sleep On It (Not in class)

Be Particularly Wary of Individual Sales

Pay By Credit Card

DON’T Be Fooled By a Flashy Site

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IDENTITY THEFT

How It's Done

What Can HappenHow To Prevent or Correct It

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IDENTITY THEFT - FACTS

A BILLION Records Leaked

There Is No Anonymity Your Medical History Can Be Compromised Your Tax Refund Is Under Attack It’s Becoming More Common For The Ones Stealing Your Identity To Be Those Closest To You

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IDENTITY THEFT - HOW?

Stolen Wallet or Purse

Internet- hacking and fake website links"Inside Sources"Dumpster DivingU.S. Mail

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IDENTITY THEFT - WHAT?

Open a Bank Account

Use Your Credit Card Get a New Card in Your NameEstablish a Criminal Record

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PREVENTING IDENTITY THEFT

Minimize What You CarryDestroy Old Sources of Information

Secure Personal Information at HomeCheck Your Credit Reports from all three credit bureaus

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WHAT TO DO IF YOUR IDENTITY IS STOLEN

Contact and Implement fraud alert with

all three major credit bureausRequest copies of your credit reportFile a Police Report Contact your creditors and bank

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HOW TO PROTECT YOURSELF

Be A Skeptic

Do ResearchGet It In Writing

Be Leery Of Out Of State and Internet

Companies

and P.O. Box Addresses

Analyze Your Needs Before You Buy

Keep Receipts and Act Promptly

Remember That Nothing is Free

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Check on Learning

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When should you consider getting a payday loan?

a. The day before payday b. Immediately after a promotion

c. When your next payday will fall on a weekend or holiday.

d. You should never consider a payday loan.

d. You should never consider a payday loan.

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True or False. A company that creates a connection between a celebrity and a product uses ‘association’ in their advertising.

True

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What type of advertising presents “just the facts?”

a. Association b. Informative c. Buzz words

d. Emotional

b. Informative

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What is the

first step you should take when your identity has been stolen?

a. destroy your credit cards

b. file a police report

c. place a fraud alert with the credit bureaus

d. you don’t need to do anything

c. place a fraud alert with the credit bureaus

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What does a criminal need to steal your identity?

a. Your telephone numberb. Your social security numberc. The picture on your driver’s license

d. Your mailing address

b. Your social security number

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What is the best way to successfully wipe out excessive debt?

a. Title Loanb. Time

c. Credit Card Cash Advance

d. Payday Loan

b. Time

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SOURCES OF ASSISTANCE

Chain of Command

Personnel Action CenterArmy Community ServiceArmy Emergency ReliefLegal ServicesBetter Business Bureau

Office of Consumer Affairs

Federal Trade Commission

Consumer Financial Protection Bureau

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