1. Financial Law Coach Johnson Understanding Business and Personal Law

2. Creditor and Debtor Borrowing money from someone Loaning money to someone Interest Open ended vs. Closed ended ◦ Credit Card vs. Loan Review the Sample Questions on Page 485

3. Secured Loans Truth in Lending Act Must use collateral Repossession without violence ◦ If 60% has been paid, the secured party must sell Co Signatures

4. Credit Cards U.S. household consumer debt profile: Average credit card debt: $15,266 Average mortgage debt: $149,667 Average student loan debt: $32,559 In total, American consumers owe: $11.31 trillion in debt ◦ A decrease of 1.5% from last year $850.9 billion in credit card debt $7.98 trillion in mortgages $986.8 billion in student loans ◦ An increase of 11.2% from last year Resource Average family – 13 cards Read example on page 488 to get idea Disputed Purchases ◦ 100 miles within zip ◦ Cannot affect score Lost Credit Cards ◦ Responsible for $50 Credit Block

5. Credit Protection Laws Equal Credit Opportunity Act ◦ Cannot discriminate (sex, race, marital status, national origin, religion, age, or public assistance) Fair Credit Reporting Act ◦ Equifax, Trans Union, Experian ◦ Entitled to one free per year ($9 fee after that) Fair Credit Billing Act ◦ Writing within 60 days Fair Debt Collection Practices Act ◦ Cannot collect more than what is owned ◦ Cannot disrupt the peace

6. Assignment #1 Protect Your Identity Download from Website, type, print and turn in. (Personal Project Grade) Assignment #2 EverFi (Daily Grade)

7. Checking Accounts Use/Opening Good for mail payment; receipts 6 months without cashing=may be refused (stale) Bank pays up to amount you have deposited (bounced check)

8. Checking Accounts Receiving a Bank Statement ◦ Check for:  Outstanding Checks  Incorrect Debits  Incorrect Fees Writing Checks Fill out correctly Start at left, drawn line through remaining Voiding Check Never sign before check is given out Cash Check (same as cash)

9. Example Check

10. Example Deposit Slip

11. Example Check Register

12. Reconciliation Used to find missing deposits/credits Balance

13. More Check Topics Bad Checks (bounced) ◦ Fee ◦ Overdraft Protection Forgery ◦ Bank responsible if no negligence Stop Payment ◦ Sometimes a fee

14. Other Payment Methods Certified Check ◦ Funds are guaranteed to be withdrawn ◦ Funds set aside make it “Certified” ◦ Avoids fraudulent checks Cashiers Check ◦ Issued by bank from their funds ◦ Taken from persons funds by withdrawal or check Bank Drafts ◦ Check written by bank from their own funds Money Order ◦ Given money (not necessarily from account) ◦ Only transferred once ◦ Name/Address and Name of Payee

15. Other Payment Methods Traveler’s Check ◦ Service Fee ◦ Sign in front of bank ◦ Sign in front of purchase establishment ◦ Easily replaceable Holding Time chart on page 532

16. Electronic Banking EFT ◦ ATM ◦ Online Debit Card Direct Deposit

17. Assignment #2 Bankruptcy Project (Group Project Grade)