Martha Johnson - 2011 Consumer Action Handbook

GSA Administrator

January 2011

I am delighted to introduce you to the 2011 edition of the Consumer Action Handbook. This practical resource, updated annually by the GSAs Office of Citizen Services and Innovative Technologies, provides valuable information to help you live a better life. This year, we celebrate over 40 years of service to consumers.

As the governments premier purchasing agency, GSA understands how important it is to get the best value when making major purchases. We are confident that the practical buying tips contained in this book will help you to do the same when you are shopping in the marketplace. With topics ranging from buying a home, going green, and the latest frauds and scams, the Handbook addresses topics that can protect your wallet and your personal information.

In addition, ConsumerAction.gov and Consumidor.gov make it easy to get answers to your consumer questions. Both websites feature links to online resources for hundreds of federal and state governments along with consumer affairs departments at major companies. The Handbook is just one way that we strive to make government easy, whether online at www.USA.gov or by phone at 1 (800) FED INFO (333-4636).

Sincerely,

Martha Johnson
Administrator

This everyday guide to being a smart shopper is chock-full of helpful tips about preventing identity theft, understanding credit, filing a consumer complaint, and more. Use the margins to make notes, write questions, or record other useful information. The information and resources youll need are arranged as follows:

Read this section for advice before you make a purchase. To quickly locate specific topics and information, look in the Table of Contents and Index (p. 152).

Turn to this section for suggestions on resolving consumer problems. The sample complaint letter on page 58 will help you present your case.

Look here for a list of public resources and contact information.

Here youll find contact information for corporate offices, consumer organizations, trade groups, government agencies, and more.

A searchable version of this handbook is available online at www.ConsumerAction.gov and in Spanish at www.Consumidor.gov.

As a savvy consumer, you should always be on the alert for shady deals and scams. To avoid becoming a victim, keep these things in mind:

1. A deal that sounds too good to be true usually is! Be wary of promises to fix your credit problems (p. 13), low-interest credit card offers, deals that let you skip credit card payments (p. 14), work-at-home job opportunities (p. 18), risk-free investments (p. 38), and free travel (p. 47).
2. Dont share personal information with someone you dont trust. Learn how to recognize fraud by following the advice on page 3.
3. Beware of payday and tax refund loans. Interest rates on these loans are usually excessive. Even a cash advance on a credit card may be a better option. For more information, see page 16.
4. Real estate agents represent the seller, not the buyer. When buying, consider hiring an agent or lawyer to represent you (p. 24).
5. Home improvement (p. 27) and auto repairs (p. 9) are the subjects of frequent complaints. Getting a second opinion can help prevent costly mistakes and enable you to make better decisions.
6. Think twice before you rent-to-own. Interest rates on rent-to-own purchases can be very high. If you miss a payment, you could end up with nothing. Consider buying secondhand at a thrift shop or through ads in your local newspaper.
7. Be cautious of Buy Here, Pay Here lots. If you decide to buy a car from a used car lot, be sure to read all of the papers before you sign. Dont sign contracts that allow the dealership to change the finance rate AFTER you leave the lot.
8. Dont buy under stress. Avoid making big-ticket purchases during times of duress (e.g., coping with a death or debt).