1. Complete the sentences, using the appropriate words from the box:

Withdrawals; follow; billing; automatic teller machine; debit; forbids; electronic funds transfer.

1. In recent years, many banks have of­fered their customers … cards.

2. They allow you to withdraw money from your account by using an … .

3. If your EFT card is lost or stolen and you do not notify your bank within two business days after discovering its loss, you may be liable for up to $500 in unauthorized … .

4. … cards look like credit cards but work like EFT cards.

5. To avoid … problems, check all sales slips care­fully, save receipts and canceled checks, and go over each bill or monthly statement carefully.

6. Until your com­plaint is settled, the law … the creditor from reporting the matter to a credit bureau.

7. It is important to … the requirements when complaining about a bill.

2. Are the statements true (+) or false (-)? Correct the false

statements.

1. Electronic funds transfer cards look like credit cards but are not credit cards.

2. If your EFT card is lost or stolen and you notify your bank within two business days after discovering its loss, you may be liable for up to $500 in unauthorized withdrawals.

3. It takes time and energy to sort billing errors out.

4. You may withhold payment of the disputed amount pending the investigation.

5. Phone calls protect your rights under the Fair Credit Billing Act.

6. You must explain why you believe there is a billing error and state the amount of the error.

7. Once negative information is reported to a credit bu­reau, it may be easy to have it removed.

UNIT 23. Costly Credit Arrangements

1. Complete the sentences, using the appropriate words from the box:

Usurious; disclo­sure form; blank spaces; acceleration clause; violators; abuses; balloon payments; suspicious; variable–rate; loan sharking.

1. Consumers may fall prey to … .

2. … loans are illegal under state laws.

3. In … the last payment is much larger than the monthly payments.

4. The … permits the creditor to accelerate the loan, making all future payments due immediately in the event a con­sumer misses a single payment.

5. To prevent credit …, Congress passed the Truth in Lending Act.

6. The law requires creditors to give you special information about … loans if you are being offered this plan.

7. The law also requires that consumers be given a copy of the … containing the credit information.

8. … can be subject to both civil and criminal penalties.

9. If you are … about a lender, check to see if the lender is licensed and whether complaints have been filed.

10. Don’t sign contracts with … .

2. Are the statements true (+) or false (-)? Correct the false statements.

1. Loan sharks lend money at low, often usurious rates of interest.

2. There are a variety of legal but costly credit arrangements that consumers may want to avoid.

3. Balloon payments make it easy for you to make the final payment.

4. Lenders sometimes claim you can wipe out all your bills by making easy monthly payment to them, which they will distribute to your creditors.

5. Consolidation loan may require payments over a shorter period of time and at a higher rate of interest.

6. The law requires creditors to give you certain basic information about the cost of buying on credit.

7. Before making a credit purchase, read and understand the entire contract.

8. Keep receipts for some payments.

UNIT 24. What Lenders Want to Know Before Extending Credit