Consumer Protection Terms and Definitions

Collateral
Property, such as stocks, bonds or a car, offered to support a loan and subject to seizure if you default.

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

Closed-End Lease
A lease in which you are not responsible for the difference if the actual value of the item at the scheduled end of the lease is less than the residual value, but you may be responsible for excess wear-and-use charges and for other lease requirements.

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

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.

Fraud
Intentional deception resulting in injury to another.

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.

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.

Billing Error
Any mistake in your monthly statement as defined by the Fair Credit Billing Act.

Travel Fraud
Pay with a credit card. Fraudulent travel operators take the money and run, and even legitimate companies can suddenly go out of business. Protect yourself by paying with a credit card so you can dispute the charges if the promises aren’t kept.