1) Always Read the
small print
As they conduct financial transactions every day, consumers must learn to navigate
an increasingly complex financial system. Contracts are a big a part of that system.
They can protect us. Or they can trick us, and inflict financial harm on us and our
families. To protect themselves, it’s important that consumers read contracts
carefully and learn how to spot questionable language
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Make sure you fully understand what
you are purchasing, and what you’re
not purchasing. Be sure to read the
small print before you sign a contract.
Good Reasons to Read the
Small Print
The devil is in the details. That’s a bit of
wisdom consumers should remember
when they’re handed a contract to sign.
Read and you’ll find out whether the
product or service really matches the
ads, sales pitch, or what you expect.
The small print can tell you the true cost
of what you’re buying, and reveal how
you might have to pay even more in the
future under certain conditions. Often,
the small print is where businesses put
important disclosures about rates, fees,
warranties and your consumer rights.
The same applies to the small print
in ads. It’s important to look beyond
the glitz, the glamour and the large
print. Advertisers often use the small
print used to hide important elements,
such as the terms and conditions of
when an offer is available, or the fact
the company has the right to change
provisions of an offer at any time.
Small print often contradicts the larger
print in ads, such as when an ad says
“pre-approved,” but the small print says
“subject to approval.”
2) Insurance
Cell Phones
Insurance policies may not fully
protect you, or protect you at all,
in situations you may assume are
covered. For example, depending on
the circumstances, your homeowners
insurance may not cover the damage
to your house caused by fire or
weather. You will find the details
about when you can and cannot file
a claim in your policy’s small print
exclude situations that would seem
to be legitimate reasons to file a
claim. For example, small print might
disclose that life insurance will not
be paid for suspicious deaths, or that
homeowners’ insurance may not
cover arson.
Cell phone ads may offer a ”low
monthly cost,” but the small print
reveals the added expenses, such as
taxes and fees for texting, that will
be tacked on to the basic rate. Cell
phone contracts commonly lock
you in for two years and are usually
expensive to cancel. The contract may
automatically renew if you upgrade
phone equipment or don’t cancel the
contract within a short time frame.
Credit
A credit card company may advertise
“0% interest,” but the small print
reveals this will apply only for a few
months. After the short introductory
period, the interest rate will increase
sharply, and rise even higher if you
make a late payment.
Warranties
Warranties for many costly items,
such as cars or computers, may seem
to cover all the work that needs to
be done on your vehicle. But the
small print often reveals that regular
maintenance and most common
repairs are excluded.
Ads
Many ads offer a ”discounted price”
after rebate, but the actual purchase
price is in the small print. The customer
pays the higher price and then must
complete a complicated process to
get the rebate. In many cases, these
requirements are nearly impossible
to meet, and most rebates are never
collected by consumers.
Free Trials
Free offers and ”free trials” are
frequently misleading. Small print
may reveal expensive shipping,
handling and processing fees, and
that the product will be shipped
to you automatically if you do not
unsubscribe. Check your bills to make
sure you are not charged for products
you don’t want to buy.
Timeshares
Timeshares may offer enticing
”incentives,” such as free weekend
getaways, if you attend a highpressure sales presentation. Buyers
rarely consider the true cost of the
unit, whether it is a good investment,
or if it really fits the family’s future
vacation needs. Small print in the
contract may reveal expensive
association dues and cleaning fees,
complex scheduling, and restrictions
on swapping or selling the timeshare.
Some Positives
Occasionally, the small print may
disclose advantages for you! A large
ticket item purchased with your
credit card may have a free extended
warranty that covers you after the
manufacturer’s warranty expires.
Magazine subscriptions, gym and
museum memberships, and season
ticket purchases might provide
extra benefits. These may include
free or reduced admission to other
venues,; and discounts at retail stores,
restaurants, car rental companies
and hotels.
2015