Extension Report

Baldwin County Extension Office

302A Byrne Street

Bay Minette, AL  36507

Telephone (251) 937-7176 or

928-0860/943-5611 ext. 2222

FAX (251) 937-7285

Amanda Outlaw

Regional Extension Agent, Urban

March 23, 2010

Consumer Tips of the Week

The Alabama Cooperative Extension System is dedicated to providing real life answers to questions that the community may have in regards to living the most productive and effective life possible. We are on the internet with solutions that you can download from our website www.aces.edu under publications.  We have other agencies that offer sound consumer advice about changes in laws that affect consumers, especially during the tough economic times we are experiencing daily.

The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions. The FDIC is an independent agency of the federal government and was created in 1933 in response to the thousands of bank failures that occurred in the 1920’s and early 1930’s. There is another side to this agency, they also provide up to date tips for consumers. Many consumers are relying very heavily on credit cards to sustain them from one paycheck to the next and also when they become unemployed. This has caused many citizens to have extremely large credit card balances and high interest rates.

 During the summer of 2009, Congress passed and President Obama signed the Credit Card Accountability Responsibility and Disclosure Card Act. This new law is intended to help protect consumers from abusive fees, penalties, interest rate increases and other unwarranted changes in account terms. The law took effect on February 22, 2010, but some changes went into effect last summer. One portion of the act is that card issuers cannot increase the Annual Percentage Rate or APR on existing balances for one year after the account is opened except in four situations; 1. Not making the minimum payment on an account within sixty days,  2. The bank disclosed at the time you opened the account that the APR would increase soon, 3. If the APR went up due to increases in a published index which is out of your control, 4.  When you have made workout arrangements with the credit card issuer and you have not satisfied the requirements. More detailed information can be found at www.fdic.gov/consumers/news.

Our duty as parents and good citizens is to share information with our family members, friends and the general public. Mymoney.gov is an excellent site to explore the different resources that can help you become a more informed citizen and parent. The Alabama Cooperative Extension System offers a financial education program that has been used since 1999 called Welcome to the Real World.  The students and adults who have participated in the program have commented that every teen needs to go through the Welcome to the Real World program before they leave home to work or go to college.

How are you preparing your teen to deal with all of the financial issues that they will face tomorrow? The resources are here and you are not alone in trying to navigate through all of the information that is out there. The information that the Extension System uses IS researched based from Auburn and Alabama A&M University and our cooperating partners. Give us a call today to set up a time for your teens to participate in the Welcome to the Real World simulation, a reality check for today, which will give them hope for a better financial future. A Welcome to the Real World Camp will be coming to Baldwin County this summer and we will keep you informed of the place and time.

Email address: aoutlaw@aces.edu

Phone: 937-7176 or 943-5061, 928-0860, ext. 2222

The Alabama Cooperative Extension System (Alabama A&M and Auburn Universities) in cooperation with the U.S. Department of Agriculture is an equal opportunity educator and employer.