Foolproof Module 5 notes question and answer

Foolproof Module 5 notes questio n and ans wer You need to know who might protect you if you get ripped off. Who regulates and watches all this checking account and financial transaction stuff? - =The Federal Reserve Bank (aka "The Fed") You probably won't ever deal with the Federal Reserve directly. - The Fed isn't actually a bank you can walk into and deposit your paycheck. It is the central bank of the United States, created and overseen by Congress. It provides our country with a safer, more flexible and more stable monetary and financial system. The "Fed" mainly sets interests rates — the price everyone pays to borrow mone y. The Office of the Comptroller of the Currency (OCC) -You won't have to deal with these people. The OCC regulates and supervises all our banks, credit unions and other financial institutions. The Federal Deposit Insurance Corporation (FDIC) - The FDIC is actually really important for you. The FDIC protects your money when you put it in a financial institution. For instance, if a financial institution goes broke, the FDIC generally makes sure yo u get your money back (as long as it isn't over $250,000). National Credit Union Administration (NCUA) The NCUA does all that regulatory stuff for credit unions, instead of banks. The Consumer Financial Protection Bureau (CFPB) - You can connect directly with the CFPB if you think you've been treated unfairly when it comes to money stuff. They oversee financial products and services that are offered to consumers. They make sure the banks stick to the rules and treat consumers fairly. Pretty straightforward , right? Consumer Financial Protection Bureau (CFPB) - =This is an organization of national bank examiners, charged with maintaining the data and soundness of the banks they supervise. Federal Deposit Insurance Corporation (FDIC) - =This agency preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000. Federal Reserve Bank (The Fed) - =This is the United States central bank. It helps maintain high U.S. employment and stable prices for consumers. The Office of the Comptroller of the Currency (OCC) - =This agency writes and enforces rules for financial institutions, examines both bank and non -bank financial institutions, monitors and reports on markets, as well as colle cts and tracks consumer complaints. - =Big tip. It doesn't do much good to file a complaint, if you haven't kept really detailed records. So, keep records of everything. The Big Difference In Credit Cards And Debit/Atm Cards: - =With a debit card, you d raw out your own money. You spend your own money. You don't get a bill when you spend your own money. Hey, it's your money! With a credit card, you always borrow money. You always create debt when you use a credit card. You always get a bill when you charge something on a credit card. Hey, it's the credit card company's money you're spending. Every time you use a credit card - even to buy a hamburger - you are borrowing money.