Book Opener

CHAPTERASSESSMENTParticipating Effectively as a Memberof a TeamIn groups of four or five, contact a consumercredit counseling service in your area. Arrangea brief interview with a counselor. Pose thefollowing questions:13. What services are offered?14. What fees are charged for the services?15. What educational materials are availableabout the wise use of credit?If possible, invite someone from one of theservices to your class to provide additionalinformation about the best way to handle credit.BankruptcyMargarita graduated from college and found ajob that paid $2,000 per month. She immediatelyrented an apartment for $800 per month, boughtfurniture that she paid for on credit, andinvested in a new wardrobe. In addition, shehas student loans to repay and a $350 monthlycar payment. Margarita is drowning in debt andfigures she should just declare bankruptcy andstart over.Debate16. Should Margarita declare bankruptcy?17. What other options does she have?18. How can she prevent a problem like this inthe future?For the following cases, give your decision andstate a legal principle that applies.19. Shirlene lost her job. She was unable tofind work for several months and fellbehind in paying her bills. A debt collectortelephoned her at 11:45 P.M., usedprofanity, and threatened to “take care ofher” if she didn’t pay the amount owed.Were Shirlene’s rights violated? Explainyour answer.20. Mary and Frank are four months behindon the payments for their living roomfurniture. Two bill collectors come to theirhouse and attempt to break in to repossessthe furniture. Mary becomes quite angryand orders the bill collectors to leave herfurniture alone. Is the finance companywithin its rights? Why or why not?21. David’s wallet, which contained his creditcard, is stolen. David does not notify thecard issuer of the loss. The next month, hereceives a $510 bill for an unauthorizedpurchase. Will he have to pay? If so,how much?22. Mary was recently married and goes to abank to request a loan. The loan officerasks if she plans to have a child in the nextfew years. Mary refuses to answer and isdenied the loan. Did the bank officer breakthe law? Explain your answer.23. Ellen always pays her bills on time. Becauseof a computer error, however, she is givena poor credit rating. Several firms refuseto give her credit, citing her poor ratingwith the credit reporting agencies. DoesEllen have any legal recourse? Explainyour answer.502 Unit 5: Using Your Purchasing Power