Identity Theft, Credit Cards & Other Important Information for College

Students

Presented by: Tri-State Better Business Bureau3101 N. Green River Rd., Suite 410Evansville, IN 47715Phone: 812-473-0202, 800-359-0979Email: info@evansville.bbb.orgWeb Address: www.evansville.bbb.org

1

501(c)(6) nonprofit organization Information source

Objective, unbiased informationBBB Business ReviewsBBB Wise Giving ReportsDispute ResolutionAdvertising Review

About Your BBB

2

Identity TheftCollege Students & CreditHow to Be a Savvy Consumer

What are we going to discuss?

3

12.6 million victims in 2012$20.9 BILLION in losses in 2012$365-Average cost to a consumerYOU DON’T KNOW UNTIL IT’S

ALREADY HAPPENED!!

Identity Theft

4

It occurs when someone steals your personal information like credit cards or your social security number and uses it fraudulently

It can cost you time and money It can destroy your credit and ruin your good name

What is Identity Theft?

5

Your Social Security cardYour driver’s licenseYour account numbersOther personal information:AddressMother’s maiden nameDOB

What does the thief want?

6

What steps can you take to deter identity thieves?

Safeguard Your Information Don’t use obvious

passwords Avoid carrying your Social

Security number and driver’s license together.

Request that your Social Security number not be used to publicly post grades.

If the school uses your Social Security number for your student I.D., request an assigned number.

Don’t give out personal information unless you are sure who you are dealing with.

Send sensitive information to your home address.

Avoid putting outgoing mail in unsecured campus mailboxes.

Don’t shop online or pay a bill on a public computer or public wi-fi connection.

Shred any pre-approved credit card offers and bills before disposing of them.

Limit the amount of personal information you place online. This includes “time and place” data i.e. “At the movies” or “On Spring Break”.

7

Most Frequently Used Passwords

8

1.password

2.1234563.123456

784.abc1235.qwerty6.monkey7.letmein8.dragon9.111111

10. baseball11. iloveyou12. trustno113. 123456714. sunshine15. master16. 123123

17. welcome18. shadow19. ashley20. football21. jesus22. michael23. ninja24. mustang25. password1

Data on your Smartphone can compromise your identity

How to protect your data: Password protect your phone with a complex and

unique password and set your phone to auto-lock Enable a service with remote tracking Turn Bluetooth off if you’re not using it. Thieves

can pair their Bluetooth device with yours and hack personal information

Be careful on Wi-Fi networks Before downloading any apps to your phone,

always do a quick search to make sure it comes from a legitimate site or publisher and read the “permissions” (what the app is allowed to do).

Tips for Smartphone Users

9

How do you detect and defend against identity

theft? DETECT

Routinely monitor bills and be alert if one doesn’t arrive

Inspect your Credit Report www.annualcreditreport.

com or 877-322-8228

Inspect your bank statements and credit card bills for unusual charges

DEFEND As soon as you detect a problem:

Place a “Fraud Alert” on your credit reports by calling any one of the three nationwide credit reporting companies

Close accounts that have been tampered with or opened fraudulently

File a police report Contact the Federal Trade Commission

1-877-438-4338 or www.consumer.ftc.gov/features/feature-0014-identity-theft

Contact your Attorney General Indiana ID Theft Unit: 1-800-382-5516 or

http://www.in.gov/attorneygeneral/2853.htm

Kentucky: 1-502-696-5389 or http://ag.ky.gov/civil/consumerprotection/idtheft/

Illinois: 1-866-999-5630 http://illinoisattorneygeneral.gov/consumers/Identity_Theft_Resource_Guide.pdf

Contact creditors, banks, utility companies, etc.

Keep detailed record of actions you take and all correspondence

10

Credit Cards & Students

11

Credit Card-You can use this card to buy things and pay over time; however, it is considered a loan and must be paid back. If you don’t pay the card off, you will be charged a finance charge. The dollar amount you pay depends on how much you owe and the APR on the account.

Debit Card-This type of card typically allows you real-time access to your money through savings or checking account. Keep in mind that if you don’t watch your balance closely, you could be charged overdraft fees.

Charge Card-With this type of card, you must pay the balance in full each time you receive the bill.

Plastic 101

12

If you choose to get a credit card, read the fine

print.

Annual percentage rate (APR)-the measure of the cost of credit expressed as a yearly interest rate. This percentage must be disclosed before you open the account and your account statement. Watch out for “intro” rates

that may only be in effect for a set number of months then increase after that time expires.

Annual fees-Some cards charge a membership or participation fee. (This can be charged annually or monthly)

Transaction fees and other charges-Some issuers charge a fee if you use the card to get a cash advance, make a late payment or exceed your credit limit. Some may charge a fee if you use the card or if you don’t.

Customer Service-You may take this for granted until something goes wrong. Keep an eye out for issuers with a 24-hour toll-free telephone number.

13

14

www.betterloanchoice.com

Bad Credit Loan MatchingBetter Loan Choice will analyze the information you provide in your application and match you to a lender for either good credit loans or bad credit loans. Finding loans for borrowers with bad credit can be challenging, but through our network of lenders, we have been successful. Although we are always able to match an applicant with a lender, this does not guarantee that you will receive a loan offer. If you are matched with a payday lender, we recommend that you review all of the information on our website that explains the disadvantages of payday/cash advance loans and all fee and rate information from any payday/cash advance lender pertaining to any loan being offered to you before you agree to the terms of the loan.Traditional LendersWhen you are matched with one of our traditional lenders, you can expect your APR to range from 6.50% to 36.00%.Personal Loan Information and Security We know that entrusting your personal information to others can be stressful, especially online! We want to ensure you that we take our obligations to protect your personal information seriously. We use the latest web security best practices to protect your data including providing 256 bit encryption on all of the pages on which you provide your personal loans application data. Please see our Privacy Policy and the disclaimer entitled “Important Information About the Services Offered by BetterLoanChoice.com and How the Information You Provide to Us Will Be Used,” which appears at the bottom of every page of our website, for information about the use and disclosure of your personal information.Peer to Peer LendersWhen you are matched with one of our Peer to Peer Lenders, you can expect your APR to range from 6.59% to 35.84%.If you are matched to a short-term lender please read the following important information:Consumer Notice: A cash advance, also referred to as a payday loan or payday advance, is a small, short-term loan that is intended to cover a borrower’s expenses until the following payday. Cash advances are intended for short-term financial relief and do not constitute long-term financial solutions. Consumers facing debt and credit difficulties should seek out debt and credit advisory help. Consumers are encouraged to consult the federal, state, and local governments to learn more about the risks involved with cash advances, local laws and regulations governing cash advances, possible loan alternatives and recent developments in their state. Consumers with credit difficulties should seek credit counseling.Payday LendersWhen you are matched with one of our payday lenders, you can expect your APR to range from 353.23% to 2,737.50%.Short-Term LendersWhen you are matched with one of our short-term lenders, you can expect your APR to range from 199.44% to 448.76%.Financial ImplicationsThe following is a representative of our network of participating lenders: If you are unable to repay your loan in a timely manner, you may be assessed one or all of the following - late fees, administrative fees, non-payment fees, insufficient fund fees, court costs, and legal fees. In addition, unpaid fees may accumulate interest. The lender you are matched to will disclose all potential fees. Fees may range from $25 to $2,000 based on applicable state law maximums.Collection PracticesIf you are unable to repay your loan, collections efforts will begin immediately by the lender you provides you a loan. Collections practices vary by lender, and all lenders are subject to the Fair Debt Collection Practices Act. Debt collection efforts may include the following: telephone calls to your home or place of employment between the hours of 8:00 a.m. and 9:00 p.m., voicemail messages, notices by mail, and door to door. Debt collectors may not harass you, make false statements, threaten arrest, or engage in any other unfair practices.Credit Score ImplicationsIf you fail to pay your loan on a timely basis, your lender may report your delinquency to a credit reporting agency. If the lender reports your delinquency, you can expect your credit score to decrease. If your credit score decreases this will make your cost to borrow become more expensive and, depending your level of debt and other factors, you may be unable to borrow money from any lender in the future. Be aware of the implications of failing to make timely payments.

Shop around for a carrier. Look for APR that is 15% or lower. Look for carriers that offer no annual fees. Be sure to know if the rate is going to increase, and

what the increase percentage is. Read the fine print in the Terms and Conditions.

Stick with one card and use it sparingly. Only charge what you are capable of paying back at the end of the month.

Pay off your balance each month. Make your payment as early as possible in the month to

avoid late charges. Periodically call and ask for a lower interest rate.

Tips to Avoid Credit Card Debt

15

Credit Card Accountability, Responsibility and

Disclosure Act of 2009 aka Credit  CARD Act of 2009Provides the following protections for college students:

•To open a credit card account if under 21, you will need to show that you have the income to make required payments or get a co-signer 21 or older who has the ability to do so.•Once you have a card with a co-signer, if you want a higher credit card limit, the co-signer must agree in writing to the increase. •Credit card companies are prohibited from marketing credit cards and from offering pizza, T-shirts, hats, and other freebies within 1,000 feet of a college campus.•Colleges and universities, as well as alumni organizations, will have to annually disclose the terms of any marketing or promotional agreements they make with credit card companies.

16

BBB has partnered with the following organizations to help consumers make wise financial decisions:

BBB Financial Resources

for Consumers

17

BBB Managing Credit – Made Simpler

sponsored by Capital Onewww.bbb.org/credit-management

18

BBB and Clearpoint Credit Counseling

Solutionswww.bbb.org/us/clearpoint-tips

19

BBB and FINRA Investor Education

Foundationwww.bbb.org/smart-investing

20

Comparing Cost of Collegeshttp://

collegecost.ed.gov

21

How to Be a Savvy Consumer

1.Look for the BBB seal and always check out a business with your BBB before you buy.

22

2) Sign up for the BBB Smart Tips for Consumers eNewsletter. 

There are 5 different eNewsletters you can sign up for: Smart Tips for Consumers, Scam Alerts, The Trusted Scout, Smart Investing, and Wise Giving.

https://cbbb.wufoo.com/forms/email-sign-up/

23

3) Beware of job offers to make easy money.Beware of any job offer, work-at-homescheme or business opportunity thatpromises big money for little work and no experience.

24

4) Always read the fine print especially for free

trial offers. Thousands of consumers complained to the BBB after signing up for a free trial offer online that resulted in repeated charges to their credit or debit cards sometimesamounting to as much as hundreds of dollars every month. Read the terms and conditions of any free trial offer before handing over credit or debit card numbers.

25

5) Keep your computer safe.

Make sure you use strong passwords with capital and lowercase letters, numbers, and characters. Have a good antivirus and anti-malware program installed and conduct regular scans.

26

6) Never wire money to someone you don’t

know.

Many scams require that the victim wire money back to the scammers. The BBB has formed a partnership with Western Union to try to spot and stop scams before the consumer becomes a victim.

www.bbb.org/scam-stopper

27

7) Fight identity theft.

28

8) Create a budget and stick to it.

www.bbb.org/us/article/tips-on-how-to-develop-a-working-budget-6101

29

9) Fight fake check fraud.

30

10) Get everything in writing.

31