General Buying Tips - Quick Consumer Tips
A savvy consumer is always on the alert for con artists and other shady efforts to separate you from your money. To protect your money and avoid being a victim of fraud, keep these things in mind:
- A deal that sounds too good to be true usually is! Offers that often fall into this category are promises to fix your credit problems, low-interest credit cards, deals that let you skip credit card payments, business/job opportunities, risk-free investments and free travel.
- Extended warranties or service contracts are rarely worth what you pay for them.
- Say no to credit insurance offers. Often offered with credit cards, car loans and home mortgages, it is almost always better to purchase regular property, life or disability insurance.
- There is no universal three-day cooling-off period. Don’t be misled into thinking that you have an automatic three-days for canceling a purchase. Only a few types of contracts give you a right to cancel.
- Think twice before sharing personal information. Protect your privacy and avoid unauthorized use of your personal information by following the advice in Protect your Privacy.
- Beware of payday and tax refund loans. Interest rates on these loans are usually excessive. Even a high-interest cash advance on a credit card may be a better option.
- Not all plastic cards offer the same protections. Your liability for the unauthorized use of a gift card and debit/ATM card may be much higher than the $50 maximum on your credit card.
- Real estate agents represent the seller – not the buyer. When buying, consider hiring a buyer-broker who represents you.
- Home and auto repairs are the subject of frequent complaints Second opinions are especially important when you are dealing with a repair service you do not know.
- Think twice before you rent-to-own. Interest rates on rent-to-own purchases can be very high. If you miss a payment, you could end up with nothing. Consider other options such as buying second-hand at a thrift shop or through ads in your local newspaper.
Research suggests senior citizens, people in crisis (e.g., coping with a death or debt), college students, small business owners, minorities and immigrants are especially at risk of being victimized. Avoid making big-ticket purchases during times of duress.
|