Consumer Protection Division
Maryland Attorney General's Office

TIPS FOR TOUGH TIMES
Issue #58
______________________________________________________
TEST YOUR CONSUMER KNOWLEDGE

	Getting the most for your money is sometimes hard work, but it usually pays to take your time in making purchasing decisions. This quiz, based on some topics of recent issues of Tips for Tough Times, will help you test your consumer knowledge.

1. You receive a credit card offer in the mail. According to the big print on the outside envelope, the credit card carries an interest rate of 6.9 percent. Your current card has a rate of 12.9 percent. If  you sign up for the new card, you will:
a.	definitely save money.
b.	possibly save money.
c.	not save any money.

2. You receive a phone call from someone representing a charitable organization you have not heard of. The caller asks you to support what sounds like a worthy cause and he says your help is needed immediately. He asks you to donate right away by credit card. You should:
a.	give him your credit card number but ask him to mail an annual 	report.
b.	refuse to donate until you have had time to review written 	materials.
c.	agree to donate but only if you can pay by check.

3. You have finally decided to replace your 12-year-old car. You see an  advertisement that shows the monthly cost of leasing to be less than the cost of buying. Should you lease?
a.	Yes, leasing is  the least expensive way to drive a new car.
b.	No, leasing is not a good option because you'll never own the car.
c.	Maybe. You'll need to know more than the monthly payment to decide.

4. You want to buy life insurance. You sign application forms and submit to a routine physical. Later, you receive a letter saying your insurance was denied. It also says your Medical Information Bureau file was consulted during the evaluation process. You should:
a.	immediately apply to another life insurance company.
b.	wait six months and apply again.
c.	contact the Medical Information Bureau and review your file.

5. You are buying a new computer. You planned to charge it to your credit card, but the salesman offers a "zero-percent financing" deal. He says you can buy now and take a year to pay with no interest charges. What should you do?
a.	Read the contract before deciding.
b.	Sign up -- you have nothing to lose but an interest payment!
c.	Ignore the offer. It is illegal to lend money without charging 	interest.

6. The computer salesman makes another offer. For a small fee, you can purchase a service contract that will cover the cost of repairing the computer if anything goes wrong. Should you buy it?
a.	Yes. It's worth the money to know you won't have to pay for repairs later.
b.	No. Appliances are made better now than in the past and they rarely 	break.
c.	Probably not. The warranty that comes with your computer is 	probably adequate.

7. When your phone bill arrives you notice it is higher than usual. The long-distance company you signed up with is not listed anywhere on the bill. Instead, a company you have never heard of is listed. What should you do?
a. 	Call your local phone company immediately.
b.	Wait a month. If the problem continues, call your phone company.
c.	Call the new company and ask them to reduce your rate.

8. You recently became ill and had to be taken to the emergency room. Later, you received a bill from the hospital and then more bills from doctors. Are these duplicate bills?
a.	Yes. Disregard the doctors' bills.
b.	No. Some doctors are not paid by the hospital.
c.	If you have insurance, you do not need to read any bills or 	statements.

Answers:

1. B. The new card might be a better deal, but the lower rate also might be a gimmick. For example, the lower interest rate might only last a few months and then be replaced with a higher rate than you now pay. Before you sign up, read the disclosure box that accompanies the offer.

2. B. Before agreeing to give money to any organization with which you are not familiar, you should get information in writing. Also, call the Maryland Secretary of State's office at 800-825-4510 to find out if the charity is registered and how much of its procedes are used to cover fund-raising expenses.

3. C. You may want to lease, but don't base your decision solely on the monthly payment. You also must calculate up-front costs, monthly costs, maintenance and repair costs, penalties and end-of-lease costs. And remember, at the end of the lease, you don't own the car.

4. C. Before deciding if you are insurable, an insurance company will probably check with MIB to determine if they have a report on you. If you are rejected for insurance and an MIB report played any role, you must be notified of that fact. You can review your file and petition MIB to change any incorrect information. Marylanders can get one free copy of their MIB report each year by writing to MIB,  P.O. Box 105 Essex Station, Boston, MA 02112.

5. A. Often, no-interest offers have strings attached. You might be charged interest if you fail to make a payment on time or fail to pay the whole balance in the specified time frame. Be sure you understand all of the terms before you sign the contract.
6. C. Most consumers never use their service contracts. You're usually better off not buying one.

7. A. You have been slammed. Call your local phone company immediately and tell them what happended. Ask to be switched back at no charge. File a complaint with the FCC and contact the Consumer Assistance Office of the Maryland Public Service Commission at 1-800-492-0474.

8. B. Many doctors are not paid by the hospital and will bill you separately for their services. Read the bills carefully. If you find an error, contact the billing office of the provider. Our Health Education and Advocacy Unit can help you. Call us at 410-528-1840.
_________________________________________________________

You can find back issues of Tips For Tough Times on the Internet at http://sailor.lib.md.us/docs/tip_toc.html

Tips For Tough Times is available in alternative formats for visually impaired consumers. Call (410) 576-6956.

_______________________________________________________

Nov/Dec 1996. Tips for Tough Times is produced by the Consumer Protection Division of the Maryland Attorney General's Office.
J. Joseph Curran, Jr., Attorney General
William Leibovici, Chief, Consumer Protection Division
Lucy Weisz, Deputy Chief, Consumer Protection Division
Jackie Ward, Editor
Andrea Cooper, Graphics

_________________________________________________________

Volunteers Needed

Help consumers with problems, experience the workings of a law enforcement agency, and develop valuable skills by volunteering at the Consumer Protection Division's downtown Baltimore office as a:

* Consumer Affairs Mediator: Mediates consumer complaints against businesses and responds to consumer inquiries on the telephone hotline.

* Health Advocacy Mediator: Mediates consumer complaints against health care providers and responds to consumer inquiries on the telephone hotline.

* Legislative Aide/Consumer Advocate: Assists in conducting research, preparing reports on consumer issues, and monitoring state and federal legislation affecting consumers.

Our office is convenient to the Light Rail and Metro. The Inner Harbor, museums, theaters, restaurants and other attractions are close by. Interested? Call Ann Brooke at 410-576-6550.

_______________________________________________________

HOW YOU CAN REACH US

Consumer Protection Division, Maryland Attorney General's Office
Downtown Baltimore
Consumer Protection Division
200 St. Paul Place, 16th Floor
Baltimore, MD 21202-2021

Complaints
* General: (410)528-8662 (9 a.m. to 3 p.m., M-F)
* Health Education & Advocacy Unit: (410)528-1840 
	(9 a.m. to 4:30 p.m., M-F)
* D.C. Metro Area: (301)470-7534
* TDD for hearing impaired persons: (410)576-6372
Send written complaints to:
Consumer Protection Division
200 Saint Paul Place, 16th Floor
Baltimore, MD 21202

Branch Offices
* Cumberland
	(301)722-2000
	(9 a.m. to 12 p.m., 3rd Tues. of each month)
* Frederick
	(301)694-1071
	(9 a.m. to 1 p.m., 2nd and 4th Thurs. of each month)
* Hagerstown
	(301)791-4780
	(8:30 a.m. to 4:30 p.m.)
* Salisbury
	(410)543-6620
	(8:30 a.m. to 4:30 p.m.)
