Consumer Quiz
The Federal Trade Commission (FTC) receives many
letters from consumers asking various questions about their
rights under FTC-enforced laws and rules. Here are some of
the most frequently-asked questions. See how much you know
about your consumer rights.
1. Your new washing machine spills water on the floor.
The dealer's mechanics have repaired it several times
under the warranty, but it still is not working right.
Your warranty runs out, and two weeks later it spills
water again. Do you have to pay for the repairs now?
No. If you complained about the problem during the
warranty period and it was not fixed properly, you are
entitled to get it repaired. Your warranty rights do not run
out for problems you complained about during the warranty
period.
2. The used car you bought less than one month ago
developed transmission trouble. You consult your sales
contract and discover you purchased the car "as is."
What is "as is."
"As is" means that the seller makes no promises to fix
the item later. If you want warranty protection, make sure
the seller puts repair promises in writing.
3. Your credit card is stolen. Before you can report it
to the card company, the thief charges $1,000 worth of
goods on your card. What is the most you will have to
pay?
used before you report it missing, the maximum you owe is
$50. After you report the card missing, you are not liable
for any purchases made by the unauthorized user.
4. You lost your electronic fund transfer (EFT) card
that lets you withdraw money using a teller machine.
You report the card lost a week after discovering it
was missing. How much money can you lose?
$500. If your EFT card is lost or stolen, and you do
not notify your bank within two business days after
discovering it is missing, you may lose as much as $500. If
you notify the bank within two business days, your liability
is limited to $50.
5. A debt collection agency keeps calling you at home
about a bill you owe. You want to pay the bill but you
lost your job two months ago. Can you stop the
collector from calling?
Yes. If you write the debt collector a letter saying
"stop bothering me," the collector must stop calling.
However, this does not erase your debt; you still owe the
money.
6. There is a mistake on your monthly credit card bill.
To correct the error, should you write or call the
company?
Write a letter and use the special billing error
address provided by the company. While a phone call may
resolve the problem quickly, sending a letter is the only
way to trigger your rights under the Fair Credit Billing
Act, a federal law that requires the card issuer to correct
billing errors or justify the charges.
7. You just had your eyes examined. What should you do
if you want to shop around and buy your glasses
somewhere else?
Ask the examiner for a copy of your prescription. An
FTC rule requires ophthalmologists and optometrists to give
patients their eyeglasses prescription after an examination
at no extra charge.
8. This morning a salesperson knocked on your door and
sold you $200 worth of encyclopedias. Now you decide
you do not want the books. Can you cancel the sales
contract?
Yes. You have three days to cancel most door-to-door
transactions of $25 or more. The seller is required to give
you a cancellation form at the time of sale. Sign and mail
it to the address given for cancellation any time before
midnight of the third business day after the day of sale.
9. Last night you visited a health spa and signed a
membership contract. Do you have three days to cancel
the contract?
No. You usually do not get three days to cancel sales
made at a merchant's regular place of business. However, a
few state and local laws provide extra protection on some
contracts like health spas. Check with your local consumer
protection agency if you have questions.
10. To help finance your new car, you need to take out
a loan. What is the most important question to ask
about financing?
Ask for the Annual Percentage Rate (APR). The rates
charged for loans may vary significantly. The APR is a unit
price for credit which takes into account all the finance
costs of the loan. Use the APR to compare loans and shop
around for the best deal.
11. You sent a mail-order company $30 for a new pair of
shoes. Shipment was promised in two weeks. Six weeks
later you have not heard from the company, and your
shoes have not arrived. Are you entitled to get your
money back?
Yes. The FTC's Mail or Telephone Order Rule allows you
to cancel most orders and get a complete refund if you did
not get delivery in the time period promised.
12. You ordered some cookware using a credit card and
an 800 telephone number. The ad said the merchandise
would be shipped in six weeks. It is three months later
and you never received your order. You have not been
billed for the merchandise but wish to cancel the order
because of the delay, and avoid being billed. Can you
use the FTC's Mail or Telephone Order Rule to cancel
your order?
Yes. Effective March 1, 1994, telephone sales are
covered by the rule.
13. You were recently divorced. Now you realize all
your credit cards are in your ex-husband's name. How
can you establish your own credit rating by using your
past credit history?
Apply for credit in your own name and list the accounts
you shared with your former husband. If the creditor has
trouble verifying these references because they were listed
only in your husband's name, offer to provide additional
information that would confirm your participation in payment
of those bills. This might include cancelled checks where
your name would show that you either paid the bills or that
you shared the account with your former husband.
14. Where can you get information about other consumer
matters?
Contact Public Reference, Federal Trade Commission,
Washington, DC 20580; 202-326-2222.
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