Unit V Text 1 Credit Cards and their Holders

Credit card is a piece of plastic about 85mm by 54mm, bearing the name and computer number of the holder and the period of availability. The holder must sign it. The best known cards in the UK are the VISA card and ACCESS; the American Express and Diners’ CLUB (introduced by the Diners’ Club, Inc., in 1950) are leisure or entertainment cards as no credit is permitted. VISA is an international credit card scheme which has world representation. Major banks in a number of countries have issued cards through VISA. ACCESS is the name given to a credit card company jointly owned by three banks, namely, Lloyds, Midland and National Westminster. The American Express card whose holders have no limit placed on the sum they spend, but all outstanding debts must be settled by a given date. Any creditworthy mature person can be a credit card holder. Before a card is issued, certain details and references are supplied (reference – a letter written by someone who knows you well, usually to a new employer, giving information about you). On approval a credit card is given to the holder and the cardholder is at the same time notified of the maximum credit available to him or her. The credit card can be used at any retail outlet displaying the credit card company symbol. It is usual for settlement or partial settlement to be made by the credit cardholder within 25 days of receipt of the statement.

Ex.1 Complete the following statements:

1) Credit card is … 2) Credit cards bears … 3) The holder must … 4) The best known cards in the UK are … 5) VISA is … 6) ACCESS is … 7) American Express card is known for its holders have … 8) Any creditworthy person can … 9) before a card is issued … 10) The cardholder is notified of … 11) The credit card can be used … 12) The credit cardholder should make … within 25 days …

Ex.2 Answer the questions:

1. What does credit card bear?

2. What must the holder sign?

3. What credits cards are the best known cards in the UK?

4. What credit cards are leisure cards and why?

5. What is known about VISA and ACCESS?

6. What is known about American Express card?

7. Who can be a credit card holder?

8. What is supplied before a credit card is issued?

9. Where can the credit card be used?

Text 2 Credit Union

A system, popular in the North America, by which people with a common bond – membership of the same club, church or trade union – can collaborate to put their savings (all the money that one has saved, especially in a bank) into a joint fund. Members can then apply to borrow from the fund and make repayments at an annual rate of interest of 12 per cent. The loans are usually Short-term consumer loans, mainly for automobiles, household needs, medical debts, and emergencies. In less developed countries these loans are particularly important, constituting the only credit source for many people, and are used primarily for farm production and small business enterprise. Credit unions generally operate under government charter and supervision. At annual meetings, the members elect the directors, the credit committee, and the supervisory committee. The Credit Union Act 1979 included the following: 1. the minimum membership shall be 21 and the maximum 5000; 2. the maximum savings permitted per person to be 3000$; 3. the unions must be non-profit making and the purpose is to provide a service to its members.

Ex.1 Complete the following statements:

1) Credit union is … 2) People with a common bond are …

3) People can collaborate … 4) Members can apply …

5) Members make … 6) The loans are …

7) These loans are used … 8) Credit union operate …

9) The members of credit union elect …10) The Credit Union Act included …

Ex.2 Answer the questions:

1) What people can put their savings into a joint fund?

2) Can the members of credit unions apply to borrow from the fund?

3) What repayments can the members make?

4) What loans can the members take?

5) What are these loans used for?

6) What do credit unions operate under?

7) What do the members do at annual meeting?

8) What is said about credit unions in the Credit Union Act 1979?

Text 3

I. When I went to interview Roy Bragg yesterday I learned that new regulations, introduced in May this year, affect all forms of money-lending in Britain. This means that there have been some changes for traditional shops of the kind that Mr. Bragg owns, where people can borrow money against valuable articles left at the shop until both the loan and the interest due on it are repaid. Individual money-lenders are now able to give much more information to the customer at the time of transaction.

II. Money –lenders now also have to apply for a licence through the government’s Office of Fair Trading. The capital a money-lender requires depends on the amount he lends; if he has a lending limit of 1000 pounds he does not need too much. But if he intends to lend large amounts, says Roy Bragg, who once lent 45000 pounds on some rare books, “he he should watch out he doesn’t get as short of money as his customers. My money is in and out every day of the week.”

III. He and his staff are all Fellows of the Gemological Association. It is an essential qualification for valuing jewellery, though they also learn by experience whether items are genuine or not. “When I first started, I never knew it would be so difficult”, said one of Roy Bragg’s young assistants. “On my own, I wouldn’t have got anywhere; I would have offered too much or too little.”

IV. Roy Bragg agrees that you can never accept anything or anybody unquestioningly in the money-lending business. ‘Some of the best-dressed and most well-spoken people are the ones you have to watch. One of the oldest tricks is for someone to come in and show you a large, real diamond ring. You say they can have 1000 pounds on it. They say, “Oh no, I wanted 1500 pounds. I’ll go somewhere else.” You pass the ring back and they don’t go away, just take it from you and turn towards the door. Then they turn back and say, “Oh, I don’t know, I was recommended to you. I think I’ll take the 1000 pounds.” And meanwhile they’ve done a switch with a cheaper ring. I tell my staff that if an item leaves their hands they should inspect it again as if it had just arrived.’

V. How do they know they are not dealing in stolen property? ‘After forty-four years, you get a nose for this kind of things,’ says Roy Bragg. ‘Most of us in the trade know each other well. I’m on the Committee of the National Association: we meet once a month and know if anyone’s having any bother.’