1. What to Do If You are Denied Credit
Your credit file is used by lenders to decide if you are a good candidate for a loan.
If you are denied credit, you
have a right to access your
credit report to understand
the reason for the denial.
There may be steps you can
take to establish credit or
improve your credit rating.

2. Default and Collection Practices
A consumer defaults on loans when he or she fails to make a scheduled repayment to the creditor.
There are several options for consumers who are having trouble paying their debts, the most drastic of which is declaring bankruptcy.
Creditors also have options for collecting money from consumers who cannot or will not pay their debts. These include phone calls and letters, repossessing certain property, and court action.
Lenders may not, however, resort to intimidation or harassment to collect payments.

3. Deceptive Sales Practices
Door-to-Door and Telephone Sales
Most sellers who telephone or go to people’s homes to sell items have honest intentions to offer products and services that people need
However, there are some door-to-door and telephone salespeople who place intense pressure on people to buy items they do not really want or that may not even exist.
State and federal laws give consumers protection from these kinds of practices and some of the unfair deals that could result.

4. Referral Sales
A seller may tell consumers that they can save money by telling other customers to buy items from that seller.
The consumer then enters into a sales contract that explains the details of this arrangement.
Sellers like this practice, called a referral sale, because it gets them more business without advertising.
Consumers should generally avoid this type of arrangement.

5. Advertising and the Consumer
Advertising is everywhere. Advertising is a sales tool that can educate customers about products and help the economy by encouraging people to make purchases.
The First Amendment to the Constitution protects most advertising as a form of free speech.
However, companies are not free to lie to consumers about their products.
The government can prohibit and punish false or misleading advertising.

6. As long as they are not misleading, certain exaggerations about a product, called puffing, are allowed even if they are not exactly true.
Is this protected by the 1st Amendment?

7. Bait and Switch
Bait and switch is a deceptive advertising practice in which the “bait” gets the customer to buy a particular item, and then the seller tries to “switch” the customer to a more expensive item.
Federal rules prohibit this type of practice.

8. Mail-Order Sales
Mail-order shopping is a convenient way for customers to shop from home.
However, mail-order shopping can cause problems when the wrong items are sent or the products are damaged in the mail.
There are federal laws
that give you the right
to know when your item
will be shipped.

9. Internet Commerce
E-commerce refers to sales and purchases that take place over the Internet.
Although it is very convenient, it is important to be careful that the information you provide on the Internet, such as a credit card number, is handled securely.

10. Repairs and Estimates
Because even the highest quality items can sometimes require repair, you should investigate the return, replacement, and repair policies before making a purchase.
It is also important to do some research and ask the right questions when you bring an item to a repair shop to ensure that you are not charges for unnecessary services.

11. Becoming a Smart Consumer
Influences on Consumers
Smart consumers are knowledgeable about the process of selling goods.
They also analyze their own shopping habits – whether they need a product, whether they can afford it, and how they can make the best possible decisions when purchasing that product.
Often, consumers buy things in response to advertising.

12. Today, an increasing amount of advertising is directed at teens because they represent the age group with the most disposable income.
Consumers must realize that advertising is meant to make a product seem more desirable and may influence them to purchase a product that they do not really want or need.

13. Consumer Protection
All levels of government provide certain protections to consumers.
Congress has passed laws that protect consumers by prohibiting unfair practices (such as false advertising), ensuring the quality and safety of products, establishing agencies that help consumers protect their rights, improving the operation of the market, and protecting consumers against discrimination on the basis of disability.
Many states also have laws that give
the government the power to stop
unfair practices and provide
consumers with remedies if they
have been wronged.

14. Protecting Your Rights as a Consumer
There are several strategies that can help consumers avoid problems when buying a product or service.
For example, when making purchases, consumers should compare several different brands and stores to make sure that they get the best deal.
Consumers should also read the warranty to learn the company’s policy toward quality assurance, returns, and repairs.

15. A consumer unable to solve a problem by contacting the seller or manufacturer may seek the help of one of the federal or state consumer protection agencies.
Better Business Bureau Southfield Road Southfield, MI (248) (248) FAX
Michigan Consumer Federation 115 West Allegan Street Lansing, MI (517)
Michigan Department of Attorney General 525 West Ottawa Street, Seventh Floor Lansing, MI (517) (517) FAX
Committee on Consumer Protection Michigan House of Representatives P.O. Box Lansing, MI (517) (517) FAX
Michigan Department of Consumer and Industry Services 525 West Ottawa Street, Fourth Floor Lansing, MI (517) (517) FAX
Michigan Chamber of Commerce 600 South Walnut Street Lansing, MI (517) (517) FAX

16. Direct Action by Consumers
Direct action is a strategy that gives consumers a voice to try and make an impact on a business’s practices.
These actions may include writing letters, refusing to buy certain products or brand names, holding press conferences, or picketing.

17. Taking Your Case to Court
If you cannot settle your complaint and a consumer agency is unable to help, legal action may be necessary.
If the seller’s practices are a crime, the seller may be charged in criminal court.
If the seller has not committed a crime but has caused a consumer financial or personal injury, the consumer may receive compensation through an action in civil court.