August 22, 2005
QUIZ TESTS KNOWLEDGE OF CONSUMER RIGHTS AND SCAMS
If you co-sign a loan, are you responsible for any of the debt
if the borrower defaults, and if so, for how much? Can your
credit card raise your interest rate if you make a payment
late to another
creditor? What portion of a security deposit can a landlord
These questions and more appear in a "Test Your Consumer IQ" quiz
in the latest issue of Attorney General J. Joseph Curran, Jr. ’s
Consumer’s Edge newsletter, which can be found online at
The quiz covers issues and problems that we hear about all the
time on our consumer hotline," Curran said. "After taking
the quiz, a consumer should be able to avoid some of the most common
After you sign a contract, including a contract to buy a car,
you have three days to cancel if you change your mind. True or False?
Answer: False. There are a few transactions for which the law allows a cancellation
period (such as a door-to-sales or health club contract), but most contracts
are binding when you sign them. The often-repeated myth that you can cancel
a signed contract has given many consumers a false sense of security when making
an expensive purchasing decision, like buying a new car.
Your credit card says it has a "universal default" policy. This
a. If you make a payment late to another creditor, it will raise
your interest rate.
b. It offers accident insurance when you rent a car.
c. If you default on your payments, it will close your account.
a. Credit cards with a universal default policy monitor your
credit file. If
you are late paying any creditor, they consider that you are a higher
credit risk and they will raise your rate.
In addition to the quiz, consumers can find information
on more than 100 consumer topics on the Attorney General’s