Consumer Action Handbook
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GSA Federal Citizen Information Center CONSUMER ACTION 2014 HANDBOOK Be a Smarter Consumer USA.gov/consumer CONTRIBUTORS GSA Oce of Citizen Services and Innovative Technologies January 2014 On behalf of the General Services Administration’s (GSA) Office of Citizen Services and Innovative Technologies, I welcome you to the 2014 Consumer Action Handbook. First published by the White House Office of Consumer Affairs in 1979 and transferred by Congress to GSA in 1997, the Handbook continues to be one of the most popular publications from the federal government. Whether you are looking for helpful tips on everyday consumer matters or you need trustworthy guidance for major purchases, the Consumer Action Handbook can help you. It’s hard work being an informed consumer. The effort it takes to compare products, protect your identity, and stay abreast of the latest scams can be a full time job. The Handbook makes it easier, by compiling practical consumer information into one comprehensive resource. Each edition of the Handbook covers topics that matter to you, such as buying a home, paying for college, and choosing a car repair shop. This year, I am excited to introduce new information on over 20 new topics, such as getting free copies of specialty consumer reports, timeshare resale, and affinity fraud. The sample complaint letter and directory of corporate and government consumer protection agencies take the guesswork out of filing a complaint. The Consumer Action Handbook isn’t the only source for reliable information from the government. Be sure to visit USA.gov and GobiernoUSA.gov (in Spanish) all year long to get answers to your questions. If you prefer speaking to a person, call 1-800-FED-INFO (333-4636) to get answers to your questions. You can also order or download electronic versions of this Handbook and hundreds of other government publications at Publications.USA.gov. Please let me know what you think of the Consumer Action Handbook and if you have suggestions. I really am listening. Some content updates in this version are based on readers’ comments. You can email [email protected] or reach us on social media at www.facebook.com/USAgov or twitter.com/USAgov. Sincerely, Marietta Jelks Editor-in-Chief, Consumer Action Handbook The Federal Citizen Information Center would like to express its gratitude to the partners listed below who helped make possible the publication of the 2014 Consumer Action Handbook. American Financial Services Association National Futures Association Education Foundation The Procter & Gamble Company The Colgate-Palmolive Company City of Pueblo, CO Department of Veterans Affairs Securities and Exchange Commission Federal Deposit Insurance Corporation Society of Consumer Affairs Professionals Federal Trade Commission International Kellogg Company Unilever LeadingAge U.S. Commodity Futures Trading Commission Money Management International January 2014 Welcome to the Consumer Action Handbook. From buying a home to raise a family in to securing a loan to pursue an education, financial decisions have tremendous potential to make our lives better. Having the tools to understand and make the most of these decisions is vital not only to individuals, but also to our economy, which is fueled by consumers. That is why my Administration remains committed to strengthening consumer protections and helping people make sound decisions in the marketplace. We are working with the Department of Justice and independent regulators to fight for consumers by taking enforcement action against deceptive practices, replacing confusing language in financial documents, and providing educational resources so Americans can make informed choices. The Consumer Action Handbook is one of these important resources. With practical tools and tips on a broad range of topics, including credit and loans, insurance and identity theft, and mobile purchases, this handbook can help individuals and families navigate their financial future. I encourage all Americans to take advantage of this valuable information, which is also available online with interactive features at www.USA.gov/Consumer. GSA Administrator January 2014 Welcome to the 2014 edition of the U.S. General Services Administration’s (GSA) Consumer Action Handbook. The mission of GSA is to deliver the best possible value to the government and the American people. This handbook offers the American people the resources and advice that they will need to help them achieve those kinds of savings in their everyday lives. Every day the women and men of GSA are committed to providing cost savings, efficiency, and excellent customer service -- both for our partners and for the American people. These are goals that everyone can relate to. Every American wants to get the most for their money. GSA is proud to offer this Handbook full of practical tips to help you achieve the same goals that we are working toward across government. This Handbook will assist you in making informed choices when buying the products and services that matter to you. Topics such as loans, mobile phones and housing, along with information on the latest frauds and scams are all included. It also provides the resources you need to ensure that you are getting the support and protection you need as a consumer. This Handbook, which is updated annually by GSA’s Office of Citizen Services and Innovative Technologies, is also available online with interactive features at USA.gov/consumer. I hope that you take advantage of this Handbook and the information it provides, and share it with your family and friends.. Sincerely, Dan Tangherlini Acting Administrator PB 1-800-FED-INFO (800-333-4636) 2014 Consumer Action Handbook I QUICK CONSUMER TIPS QUICK CONSUMER TIPS USING THIS HANDBOOK As a savvy consumer, you should always be on the alert for shady deals and scams. To avoid becoming a victim, keep these things in mind: This everyday guide to being a smart shopper is full of helpful tips about preventing identity theft, understanding 1. A deal that sounds too good to be true usually is! Be credit, filing a consumer complaint, and more. The wary of promises to fix your credit problems, low- information and resources you will need are arranged as interest credit card offers, deals that let you skip credit follows: card payments, work-at-home job opportunities, risk- free investments, and free travel. PART I—BE A SAVVY CONSUMER 2. Don’t share personal information with someone you Read this section for advice before you make a purchase. don’t trust. Learn how to recognize fraud. To quickly locate specific topics and information, look in the 3. Beware of payday and tax refund loans. Interest rates on Table of Contents (p. 1) and Index (p. 139). these loans are usually excessive. A cash advance on a credit card may be a better option. PART II—FILING A COMPLAINT 4. Read and understand any contract, legal document or Turn to this section for suggestions on resolving consumer terms of service before you sign or click “I Agree”. Do problems. The sample complaint letter on page 57 will help not sign a contract with blank spaces or where the terms you present your case. are incomplete. Some contracts include a clause that prohibits you from taking legal action and require you to PART III—KEY INFORMATION RESOURCES engage in mandatory arbitration with a company in the Look here for a list of public resources for teachers, case of a dispute. disabled consumers, and military families. 5. Get estimates from several contractors for home or car PART IV—CONSUMER ASSISTANCE repairs. Make sure the estimates are for the exact same DIRECTORY repairs for a fair comparison. 6. Before you buy, make sure you understand and accept Here you will find contact information for corporate offices, the store’s refund, return and early termination/ consumer organizations, trade groups, government cancellation policies, especially for services and agencies, and more. facilities that charge monthly fees. VISIT US ONLINE 7. When paying for your purchases, double-check the final A searchable version of this Handbook is available online at price. If you think the price that has been charged is www.USA.gov and in Spanish at www.GobiernoUSA.gov. incorrect, speak up. Remember, when shopping online, You can also order or download an electronic version of the your purchase may include additional fees, such as Handbook and hundreds of other consumer publications at shipping, handling, and convenience fees that are not Publications.USA.gov. calculated until you check out. 8. When shopping online, look for the padlock icon in the bottom right-hand corner of your screen or a URL that begins with “https” to ensure that your payment information is transmitted securely. 9. Don’t buy under stress. Avoid making big-ticket purchases during times of duress (e.g., coping with a death or debt). 10. If you are having difficulty making payments on loans, notify your lender immediately so that you can work out a payment plan. II www.USA.gov To contact an organization, use the directory beginning on page 62. 1 TABLE OF CONTENTS PART I: Be a Savvy Consumer ........................... 2 Insurance ............................................................. 30 Buyer Beware ........................................................ 2 Auto Insurance ...............................................................30 Before You Buy ..................................................................2 Disability Insurance .......................................................30 Service Contracts