Keep It Safe 1

Keep It Safe 2

Introductions

• Instructor and student introductions

• Module overview

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Student Introductions

• Your name

• Your expectations, questions, and concerns about financial safety.

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Purpose

Keep It Safe will:

• Give you information about consumer rights laws.

• Help you guard against predatory lenders, identity theft, and elder financial abuse.

• Help you know how to be financially prepared when disaster strikes.

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Objectives

By the end of the course, you will be able to:• Identify the laws and regulations that

protect your deposits.• Identify the laws and regulations that

protect you when applying for a loan.• Guard against predatory lending practices

and identity theft.• Describe how to be financially prepared for

disasters.

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Agenda and Ground Rules

• Two hours long

• Two 10-minute breaks

• Training methods

• Class participation

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Laws and Regulations that Protect Deposit Accounts

• Truth in Savings Act

• Electronic Fund Transfer Act

• Expedited Funds Availability Act

• FDIC Deposit Insurance Regulations

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Practice Exercise: Deposit Account Laws and Regulations

Instructions:

• Read each scenario carefully.

• Use the description of laws and regulations to help you answer the questions.

• Be prepared to explain your answers.

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Non-deposit Investment Products

• Stocks

• Bonds

• Mutual funds

• Annuities

NOT FDIC-insured!

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Lending Laws

• Equal Credit Opportunity Act (ECOA)

• Truth in Lending Act (TILA)

• Fair Credit Reporting Act (FCRA)

• Fair Debt Collection Practices Act (FDCPA)

• Fair Credit Billing Act (FCBA)

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Additional Lending Laws

• Servicemenbers’ Civil Relief Act (SCRA)

• Real Estate Settlement Procedures Act (RESPA)

• Fair Housing Act

• Consumer Leasing Act

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Privacy Notices

Privacy notices explain:

• How the company handles and shares your personal financial information.

• What information the company collects.

• How you can possibly limit the company from sharing your information with others.

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Types of Privacy Notices

• Initial privacy notice

• Annual privacy notice

• Notice of changes in privacy policy

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“Opting Out”

Your right to limit the extent to which a company can share your personal financial information.

• You cannot opt out of ALL information sharing.

• You must opt out within 30 days of receiving the privacy notice.

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Predatory Lending

Occurs when companies offer loan products using deceptive and exploitive:

• Marketing tactics.

• Collection practices.

• Loan terms.

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Subprime Lending

Subprime lending involves extending credit to borrowers who have a higher risk of defaulting on their loans than traditional bank customers because of past problems with credit.

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Two Types of Predatory Loans

• Predatory payday loans

• Predatory mortgage loans

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Predatory Payday Loans

Small cash advances to a borrower - $500 or less.

• Borrower writes a postdated check.

• Lender deducts fees from amount borrowed.

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Identity Theft

The act of stealing your identify in order to:

• Order new credit cards.

• Make counterfeit cards or checks.

• Go on a spending spree in your name.

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New Forms of ID Theft

• Phishing

• Pharming

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Elder Financial Abuse

Using an elder’s money or assets contrary to the elder’s wishes, needs, or best interests, for the abuser’s personal gain.

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When Disaster Strikes

Are you financially prepared when these major and minor disasters strike?

• Hurricanes

• Floods

• Fire

• Burst water pipe