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Consumer Protection : Advice from The Bucks County Consumer Advocates

December 2006

Q. Due to some financial hardship I had to sell my house and for the first time I am looking to rent an apartment. I don’t actually know what to look for. Can you give me some suggestions on choosing the right apartment? T.D., Levittown

A. You would want to shop around for the best apartment that would suit your needs. Choose an apartment that you can afford without putting yourself in a hard spot each month. Location can also be important to some. You may want to look at apartments near your place of work. Once you find an apartment that you are interested in, make sure you read the lease thoroughly. Ask to see the actual apartment that you would be renting. Sometimes the model that they show you is in much better shape then the actual apartment that they want you to rent. Make sure you get a copy of your lease and a copy of the walk-through inspection. If a walk-through inspection isn’t done, make a list of things that are wrong with the apartment and send a copy to the office, making sure you keep one for your records.

If you have any questions or concerns when it comes to renting an apartment, contact the Bucks County Office of Consumer Protection at 215-348-7442.

Q. My son and his wife are ready to buy a home. They have been looking at using a mortgage broker to help them obtain a favorable mortgage. How can they check on a broker to make sure they are dealing with a reputable outfit? N.M., Bensalem

A. Mortgage brokers are licensed by the Pennsylvania Department of Banking. They can provide the requirements and regulations mortgage brokers must adhere to. The Pennsylvania Department of Banking can be contacted at 1-800-722-2657 or you can check their website at www.banking.state.pa.us. Your son should become familiar with some of the basics of mortgages and home ownership. A great place to get information on homes and mortgages is from the Department of Housing and Urban Development. The information is detailed and covers just about everything a person would need to make responsible decisions. We encourage borrowers to investigate all options and really understand the entire lending process. An educated borrower can save money and prevent a bad loan.

Q. While I was out shopping for Christmas I became a victim of theft. A guy ran into me and stole my purse. I contacted the police, but I would like Bucks County Consumer Protection to warn people about being careful while they’re out there shopping. K.C., Bensalem

A. The holiday season is a time when people become careless and vulnerable to theft because of the holiday rush, but theft can happen anytime. Whenever you are out there shopping it is important to take preventative measures. Avoid wearing expensive jewelry. Do not carry a purse or wallet, if possible. Purses are prime targets for criminals. Put money and credit cards in your front pocket. Make a list of your major credit cards, their account numbers and the phone numbers to call if cards are lost or stolen. Keep this list at home. Don’t allow yourself to become so burdened down with packages that you become a tempting target. Consolidate as many packages as possible, or make several trips to your car to deposit packages in the trunk. When walking through parking lots, be sure that you are aware of your surroundings. Have your keys in your hand before you go to your car. Don’t hesitate to ask for a security escort if you feel unsafe. It may be a good idea to see if a friend or family member can go shopping with you.

Q. My daughter is looking for a new car. She found a vehicle she really likes but the cost is steep. The dealer told her he could get her a loan that would make monthly payments really affordable. I asked her how long the loan would be for and she said six years. Is it a good idea to carry a car loan for that length of time? D.P., Furlong

A. The lending industry has created these long term loans for vehicles. It provides a low monthly payment that has appeal for some consumers. Consumer Reports reported that half of all auto loans were for longer than five years. The reality is loans that are long term are usually not a good financial decision. Your credit score will determine your interest rate. The lower the score, the higher the interest rate will be and the more expensive the loan becomes. Also, the longer the loan, the more chance you will be out of warranty when something goes wrong. We would encourage all consumers to make rational decisions when it comes to any loan. Review the total costs versus the value of what the vehicle will be at the end of the loan. Vehicles are not like property, they do not increase in value over time. Our recommendation is to get a loan for 36 to 48 months. If you cannot make those payments it is probably best to reconsider that particular vehicle and look at one that is more affordable and within your budget.

Q. I am ready to head out for the most shopping that I would ever do all year and thought it would be a good idea to get some pointers for buying products. Can you give me some general tips for when I go out there to shop? J.F., Trevose

A. To make some good decisions when you are shopping try to follow some basic rules. First, decide in advance exactly what you want and what you can afford. Do not buy anything under pressure. Another good idea is to get advice and price quotes from several sellers so you don’t regret the purchase from one store when you found it for less in another store. Get a written copy of any guarantees and warranties. Before you make a purchase make sure you get the seller’s refund, return and cancellation policies. Check out the business’ complaint record by contacting Bucks County Consumer Protection at 1-800-942-2669.

Q. My husband and I are having an argument that maybe you folks can settle. My husband uses our debit card for online purchases and I think he should use the credit card. He says there is no difference, but I disagree. Who’s right? T.H., Reverve

A. Well, we believe you are correct. Debit cards are connected directly to your checking account. Make a purchase and your account is debited automatically. The problem is if the merchant makes a mistake and debits the account twice or the $29 debit is accidentally debited at $290 it can cause your account to be overdrawn. That causes bounced checks, fees associated with bounced checks and a lot of time and stress straightening everything out. Debit cards are best used for any direct point of sale. Credit cards are by far a better option when buying online. They are not connected to your checking account and if an error happens it is much easier to clear up. There are also dispute options associated with credit cards. Many credit cards also offer bonus features and purchase protection options. Debit cards do not.

Q. Due to problems beyond my control I fell behind on my car payments. I wanted to work out something with my payments, but before I could my car was repossessed. I wasn’t even given any notice. Are they allowed to just come out and take my car without any notice? P.T., Riegelsville

A. Yes. If you borrow money to buy a car the lender can take you car back if you miss a payment or in some other way violate the contract. They can repossess with cause without advance notice. Bucks County Consumer Protection spoke with the business and was told that they tried to contact you on several occasions to try and rectify the matter. If you know you are going to be late with a payment, talk to the lender to try to work things out. If you and the lender reach an agreement, be sure you get the agreement in writing.

Q. I have been getting mail solicitations for refinancing and other financial services. I’m not sure how I got on their marketing list. I do not give my information out and I always opt out when I get those notices from my insurance, credit card and investment companies. These companies seem to know a lot of my financial information. How did I get on this marketing list? K. W., Chalfont

A. This sounds like trigger list marketing. Credit bureaus have thought up a new way to make money off the consumer. They sell all kinds of personal information about you, including how much your home is worth and how much you owe on it. This is probably why these companies know so much about you. Some consumer advocates have been trying to stop this practice and the issue may soon be going to court. Our suggestion is to contact the credit bureaus and “opt out” of these programs. All you need to do is call 1-888-567-8688 or go to the website www.optoutprescreen.com and fill out a request. Both choices require you to provide your social security number and other personal information. This should stop the solicitations.

 

Department of Consumer Protection /
Weights and Measures
Michael D. Bannon
Director
50 North Main Street
Doylestown, PA 18901
Phone: 215-348-7442
Fax: 215-348-4570
Canny Consumer Hotline 1-800-942-2669