Truth in Savings Act

Truth in Savings Act

o Requires financial institutions to disclose the "Annual
Percentage Yield," or "APY," on savings accounts. The APY tells
you how much money you would earn if you kept $100 in the account
for one year.

o Requires that the institution credit your entire deposit instead
of crediting a portion of your deposit or using a "low balance per
month" method. This increases your earnings.

o Requires that institutions have available a list of their fees
for bounced checks, stop payment orders, certified checks, wire
transfers or similar items. Ask for the list.

o Prohibits institutions from advertising "free" checking if there
are hidden charges or requirements, for example, having to maintain
a minimum balance to qualify.

Checking Accounts

o Before you open a checking account, find out what the fees will
be for writing checks, for bounced checks, for the checks
themselves and for other services. Ask if the institution will
send you the canceled checks with your monthly statement. If not,
find out the cost for copies of canceled checks. You might need
them for proof of payment in some situations.

Loans

o When shopping for a mortgage, check the real estate section of
your local newspaper to find out the current interest rates. Check
the rates for 30-year mortgages, 15-year mortgages and adjustable
rate mortgages. Ask the lending institution to
explain the differences.

o Most home improvement loans are secured by a mortgage on your
home. It's better not to finance expensive credit life insurance
or to consolidate other debts into this loan. Your home will be at
risk for every extra dollar you borrow. If you don't make your
payments, you could lose your home.

o For car loans, compare the rates offered by the car dealer with
those of local lending institutions. Don't add expensive extras
like credit life insurance to the total amount of the loan. You do
not have to purchase credit insurance in order to get a loan.
Credit Cards

o For a small fee, you can purchase a list of the most
competitive interest rates and credit cards in the country and find
out how to qualify for the lowest rate possible by
contacting Bankcard Holders of America, 560 Herndon Parkway, Suite
120, Herndon, VA 22070, (703) 481-1110.

o If you cannot pay off your full credit card balance each month,
a lower interest rate will save you money. If you do pay off your
balance in full each month, choose a card with no annual fee.

o Report billing errors and unauthorized charges to your credit
card company right away. Keep a list of credit card numbers and
card company phone numbers to alert a credit card company
immediately if a card is stolen or missing. If you report the
incident immediately, the most you will have to pay for any
unauthorized charges is $50 on each card, regardless of how high
the total unauthorized charges go before you report your card
missing.

o Don't give your credit card number over the phone to
unfamiliar companies or to people who say they need it to
"verify" your identity in order to give you a prize.

o After signing your name on a credit card charge slip, pull out
the carbons and rip them up.

o A Federal law gives all consumers equal access to credit. The
Equal Credit Opportunity Act makes it illegal for creditors to
discriminate against applicants on the basis of race, sex,
national origin, marital status, age or religion, or because of
public assistance income.

o Be cautious of offers for "secured" credit cards. These cards
usually require you to set aside money in a separate bank account
in an amount equal to the line of credit on the card to guarantee
that you will pay the credit card debt. Some of these offers
advertise that secured cards can be used to "repair" a bad credit
record, but you should know that no matter how well you handle this
account, your payment history on your past debts still will be
taken into consideration when you apply to other lenders for credit
or for employment or housing.

For more information or to file a complaint, contact:

Federal Deposit Insurance Corporation
Office of Consumer Affairs
550 17th Street, N.W.
Washington, DC 20429
(202) 898-3536
(202) 898-6726 (voice/TDD)
1 (800) 934-3342 (toll free)

Board of Governors of the Federal Reserve System
Division of Consumer and Community Affairs
20th and C Streets, N.W.
Mail Stop 198
Washington, DC 20551
(202) 452-3693
(202) 898-6726 (FDIC Voice/TDD)

Comptroller of the Currency
Consumer Affairs
250 E Street, S.W.
Washington, DC 20219
(202) 874-4820

Bankcard Holders of America
560 Herndon Parkway, Suite 120
Herndon, VA 22070
(703) 481-1110

National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
(703) 518-6300

State Banking Authorities
(See Consumer Assistance Directory, page 87.)

State and Local Consumer Protection Offices
(See Consumer Assistance Directory, page 70.)