CONSUMER CONFIDENTIAL (The money saving secrets they don’t want you to know)

CONSUMER CONFIDENTIAL (The money saving secrets they don’t want you to know) By Michael Finney, Berrett-Koehler Publishers Inc., 2004, pp 237, $14.95, ISBN    1-57675-300-x Reviewed by Vijai K Sharma Customers purchase their requirements from the market, after making necessary payments. Various manufacturing, testing, transporting, marketing and other organizations involved, thus earn money. Due to the limitations of funds available with the customers, they exercise control on the expenses, desiring to purchase more number or more types of items, with the same amount of money. There are some finer points in consumerism also, by application of which, consumers can save money. Other things like insurance, travel, investment and savings etc. should also be seen from the consumer’s angle. The author is a popular TV and radio personality, with a 25 years broadcast career. Contents, Acknowledgements, Introduction: Learning the hard way, Getting started: Now it is your turn, Resources, Glossary, and Index and about the author have been given at appropriate places. The book has 9 Chapters. Introduction gives the experiences of various customers about their treatments, payments & general behaviour, dealings with the employers, negotiating for salary increase, changes to less cumbersome procedures etc. According to Chapter 1, a good consumer should be aware of his rights, including legal rights, be fair to others and to himself, should get what he is paying for, should have respect for self, be flexible and ready to negotiate, give others an opportunity to do the right thing, should not get angry, not talk legally initially and be ready to sort out the matters, including by writing a short and to the point complaint letter, addressed to the proper and specific person. In Chapter 2, the difficulties in stopping payment on a cheque given to a supplier and the problems faced by the customers while using credit cards are narrated; terms credit report and credit score discussed and caution given about the bill collectors. It advises obtaining services of a good credit counselor for getting out of debt. Cash gift is always better as compared to gift cards and certificates given by individual shops. Consumers, who return and exchange gifts or items, are always at a bigger disadvantage. Chapter 3 discusses topics such as discouraging and stopping telemarketers, not allowing junk faxes and junk and spam mails to be received, not calling a toll-free number, not giving our name and address here and there, not responding to surveys or prepaid envelopes received or credit card offers etc. Several agencies are keeping track of our personal lives e.g. past medical history, items purchased, items consumed, especially through loyalty cards of stores. Theft of identity should be prevented by destroying our personal papers by burning or shredding and informing the police, if required. When personal private information is woven into a case, the innocent victim is in dire trouble, causing loss of time, hard ship and humiliation. As per Chapter 4, for insurance we should study information from internet and an expert insurance agent. We should buy more than one policy with staggering dates and make comparisons to get the best suitable offer for price.  It is advised to avoid insurance for cancer, credit card, credit life, flight etc., but to purchase disability insurance.  We must exactly know the terms of the policy. We should study and coordinate the plans and negotiate for health insurance, Homeowner’s insurance, rental insurance and auto-insurance. The author lists ten easy ways to reduce premium for homeowner’s policy. Chapter 5 says that we should consider the amount and type of car available for purchase and the talk of the car salesperson very carefully. We should study internet, newspapers, leaflets, information from other car owner friends etc. We should find a good used car; get it inspected by a proper car mechanic with the help of a friend or relative and negotiate for its price. Sometimes cars are available at discounts for reasons such as poor colour etc. We should buy car accessories as needed by us. For repairs, we should get a knowledgeable and honest mechanic, having reputation, explain the problem faced by us, get it written clearly &also get old parts back, unless there is a discount given to us.  Chapter 6 discusses ways for savings on travel by choosing a price, and not a place, for enjoying holidays. We should compare travel plus hotel costs together, and travel in off seasons. We should first get information from internet, compare tickets of various airlines, take advantages of a frequent flier, get discounted tickets or get seats in charter flights. We may arrive just near to and not our exact place, choose days and times of flight, when there is not much rush and buy return tickets. For hiring, we should ask for the small car and if not available, get the bigger one at lower rate. As per Chapter 7, we must not blindly follow others in acquiring things like luxurious house, several cars, yacht (boat) and other showy things. We should decide our needs, save for the rainy day and not depend on loans, credits and debts.  We should learn about investing through webs, books, videos and investing agencies. Our investments should include diversification, tax rebate if possible, and proper investment for retirement, with avoiding giving loan to our friends.  Chapter 8 discusses the factors before deciding purchase of a house like budget, requirement of floor area, availability of school, market, library, hospital etc. in the nearby areas. We should examine the physical conditions of the houses, the ownership documents and also get them inspected by a proper person.  We should compare terms and conditions, rates and find the best possible deal, for the long-term house loan, as per our requirements of service, stay, transfer, retirement etc. For selling our house, we should get it cleaned up before sale, and tied up with some agents. For improvement and remodeling of our existing house, we should have our own rough idea for repairs, final plan, estimate of expenses, fixing maximum limit of expenses, selection of contractor and follow- up etc. We should get references from friends and relatives etc.  Chapter 9 discusses the problems a consumer faces in general. Some people pose to assist us, with the similarity of our background, religion, state, language or caste etc. but they may be planning for committing a fraud on us. Some people send mails or e-mails with offers and ask for some money, but we may not get the job done or return of the amount. Some people or companies propose to give some things free. No one ever gives anything for free. There are hidden conditions or strings attached. Similarly accepting offer of some people to do repairs to house, vehicle etc. at reduced rates, amounts to inviting trouble to our life. Some companies advertise for travel or purchase deals and ask us to confirm immediately or the same day, but it is safer not to act in haste, but check from all sides. In various other trick schemes, making jewellery, medical billing, and envelope filling etc., the advertiser collects some fees from us and we are duped. The author lists ten things a smart consumer would never do and ten other points for alertness in our working, to avoid losing or getting duped.  The book is written with the background of USA. There may be marginal differences in the status position for some points in different countries.   But the basic theme remains the same. It is a good book to make the consumers aware of various positions and pitfalls and advise them to guard against future problems. It is considered universally applicable, suitable and useful book for all consumers.                                                                                                                                   ..................vijaiksharma