What is National Consumer Protection Week & How Can it Help You?

This week, March 1-7, 2009, is National Consumer Protection Week. This week focuses on helping consumers become more aware and more proactive about their financial situations.  It is a week-long national campaign aimed at providing intensive consumer education. These resources are provided by federal, state, and local government agencies, along with consumer advocacy organizations.

Eileen Harrington, the Director of The Federal Trade Commission’s Bureau of Consumer Protection stressed that “Practical information is one tool that retains its value, especially in tough economic times.”

In this section, ComparedForMe.com examines what the official website says this week is all about-and how its free tools can help you as a consumer make more informed financial decisions.

The National Consumer Protection Week Website (http://www.consumer.gov/ncpw/index.html) is divided into several helpful sections that are free to access.  Let’s break the website down to give you a clear idea of how the tools they offer can be applied to your own financial and business situation.

Consumer Info

• This section of the National Consumer Protection Week website is divided into the following sub-sections: Banking, Credit, Consumer Rights, Identity Theft & Fraud, Investments, Money, and Mortgages.
• Upon clicking on one of the above-mentioned topics, you are taken to a page that gives you the following free resources: Websites, PDF’s, and Online Articles & Tools.
• These websites, PDF’s, and Online Articles & Tools are presented to you from an unbiased source that has one goal in mind: to arm you with educational information that will help you become more proactive in your financial decision-making.

Business Info

• This section of the National Consumer Protection Week website is divided into the following sub-sections: Websites, Video, PDF’s, and Online Articles & Tools.
• Within the Videos section, website visitors are given free access to a video entitled “Protecting Personal Information: A Tutorial for Business.” This is no boring PowerPoint presentation; instead, an attorney for the Federal Trade Commission appears on the screen, speaking to you and walking you through an animated informational session. The simple, “no fluff” language suggests 5 easy-to-follow steps that business owners should take to protect their personal information. A helpful question and answer dialogue is weaved throughout the video as well.
• In the PDF’s section, the site offers a business-focused Identity Theft Toolkit, courtesy of the Federal Trade Commission.

International

• The first section gives you access to an international directory of dispute resolution providers (www.econsumer.gov.)
• The second part links you to The International Consumer Protection and Enforcement Network (ICPEN) (www.icpen.org.) ICPEN is made up of governmental organizations worldwide; it oversees fair trade practice laws and encourages consumer protection.

Outreach Toolkit

• The final section of the site offers the following tools to help your business promote its support of National Consumer Protection Week. These template are extremely user friendly-all you have to do is insert your business information and you’re good to go:

o        Sample Press Release: get your business more exposure while promoting National Consumer Protection Week
o        Sample Newsletter Article: use National Consumer Protection Week as a topic for your company newsletter
o        Sample Event Flyer: use your business to promote events in your own community that encourage consumer              awareness and protection
o        Radio Public Service Announcements:  gives you the option to listen and download them (or follow the transcript and record your own)

Actively participate in National Consumer Protection Week by visiting their website.  The tools they provide will give you a concrete action plan that will help you achieve your short and     long-term financial goals-no matter who you are!

It may have happened to you or to a close friend. Unexpectedly, for no apparent reason, the terms and payments on your credit cards has dramatically changed!  You always paid your bills on time-you always paid more than the minimum payment and were a long time customer.  Suddenly you go to the mailbox and find that your credit line has been cut in half, even as your interest rate doubles or triples!  Recent surveys are saying this could be happening to as much as 30% of Americans with credit cards!

So what are your options if the credit card companies do this to you?

• Call the credit card company directly to see what options you have.  If you have a solid payment history with this creditor, voice your disagreement regarding the reduced limit or rate change.  Argue that you have always made your payments on time, emphasizing that you are a long-term customer
• If you are in good credit standing, you could have the luxury to shop around for a card with an even better interest rate.  You have the ability to take advantage of the fact that banks are lending again.  Balance transfer credit cards can provide time periods with low or 0% interest rates.
• People are either hesitant to borrow or have too bad of a credit situation to qualify for a new card.  If you are unsure of where your credit stands, sign up for free credit monitoring.  There are a few websites that compare credit cards based on credit score requirements.  You can use the Federal Reserve website for more information about what to look for when credit card shopping.
• Do not close your current credit card accounts.  Doing so can actually affect your credit score negatively, limiting your ability to borrow if your situation gets worse.  You also have no idea if the cards you keep will one day change their terms and limits.

So how do you know if your credit card company will spontaneously change your terms and payments?  Honestly, you don’t.  While there is a law that governs consumers’ rights with credit cards, unfortunately, most of us sign a contract with the lender that gives them the right to make these changes to our credit lines and credit cards.  Continue to monitor your monthly statements and online accounts to see if changes are coming.  Aside from rate and term changes, pay attention to news of your bank being acquired by another.

We should take action to lessen our dependency on credit cards.  We need to learn to live within our limits and buy only what we can afford.  Altered payments and interest rates is the first sign that times are changing; as a result, our old spending habits have to change.