Consumer Protection Terms and Definitions

Warranties
Warranties and guarantees are a manufacturer’s or seller’s promise to stand behind its product or service.

Counterfeit Drugs
Pay attention to packaging. Check for altered or unsealed containers, or changes in the packaging or label. If you know the size shape, color, and taste of the medications you take, you will more easily identify possible counterfeits.

Lemon Law Protection
Lemon Law applies to any new vehicle purchased and registered laws are by state

Loan Scams
Before you sign on the dotted line, get all of the loan terms in writing, including the payment schedule and interest rate. If the lender isn't familiar to you, contact your state banking department and ask how to confirm that it's licensed and operating properly.

SLAMMING
The term used to describe what occurs when a customer’s long distance service is switched from one long distance company to another without the customer’s permission. Such unauthorized switching violates FCC rules.

Telemarketer fraud
It’s important to know who you’re dealing with. If a company or charity is unfamiliar, check it out with your state or local consumer agency and the Better Business Bureau.

Residual Value
The end-of-term value of the item established at the beginning of the lease and used in calculating your base monthly payment. The residual value is deducted from the adjusted capitalized cost to determine the depreciation and any amortized amounts. It is an estimate that may be determined in part by using residual value guidebooks. The residual value may be higher or lower than the realized value at the scheduled end of the lease.

Fraud
Intentional deception resulting in injury to another.

Balloon Payment
A large extra payment that may be charged at the end of a loan or lease.

Better Business Bureaus BBB
Better Business Bureaus (BBBs) are nonprofit organizations supported primarily by local business members. The focus of BBB activities is to promote an ethical marketplace by encouraging honest advertising and selling practices, and by providing alternative dispute resolution.