Consumers’ Association of
Consumer Education
Outreach Program
Resource Guide
“…We’re in the
community; we’re here to help…”
We gratefully acknowledge the support of the Margaret Speechly-Stansfield Foundation in publishing this resource
guide.
About Us
The
The CAC
represents the interests of consumers as a whole. We tell government and
businesses who work on consumer issues, what we believe are in the best
interest of consumers.
The CAC is
partly a referral agency. We refer people who call with consumer complaints to the place that can help them with their
particular problems.
We try to answer
consumer questions, and give suggestions to consumers on how to make wise
purchases.
We operate an
information Centre and provide helpful tips on consumer issues–such as welfare
rights and responsibilities–as well as some information on products and
services such as cars. You can come down and take a look at what we have.
We distribute
consumer information from various other agencies–like the Consumer’s Bureau,
Better Business Bureau and Industry
Where We Are
We are located at the corner of
CONSUMER’S ASSOCIATION OF
R3L 1Z3
How We Can Be Reached
Call us anytime at 452-2572 or come down between the hours of
This booklet
is designed to help consumers make educated decisions when dealing with
companies. A consumer is anyone who spends money on goods or services. This
guide also gives you ideas on how to handle problems regarding consumer issues
such as banking, shopping or dealing with debt.
Table of contents
Know your rights as a consumer
How does welfare work?
Why won’t banks cash my cheques?
What should I know about credit?
How can I get credit?
What can't collection agencies take?:
What is a payday loan?
What is bankruptcy?
What is consolidation?
What is a consumer proposal
How do Pawnshops work?
How do rent-to-owns work?
Questions to ask the salesperson
How can I reduce my cost of living?
MTS
Manitoba Hydro
and Centra Gas:
Shopping for clothes on a low budget
Select good quality garments.
Shop at
second-hand/thrift stores and factory outlets.
Family resource
centres.
Clothes for
Kids
Garage sales!
Eating healthy on a low budget
Consumer Protection Act
What doesn’t
the Consumer Protection Act do?
What does that
mean for you?
Personal Investigations Act
Why is the P.I.
Act important?
The Business Practices Act
What The
Business Practices Act does?
Legal Aid Manitoba
Phone numbers
Terms
Know your rights as a consumer
You have
the right to be informed.
Ask questions. Know what you
are buying or what you are renting. It also helps you to know what the stores policies
and operating procedures are as they can affect you.
You
have the right to safety.
Products and services must
meet minimum legal requirements for safe use.
You have the right to make complaints and appeals.
If you are dissatisfied with
a product or service, you have the right to be heard to and have your problem
resolved to the best of the company’s ability. If the company does nothing to
resolve the problem, you have the right to another avenue of complaint.
You
have the right to choose.
You have the right to shop
in a marketplace that gives you choices. But remember that also means that you
have the responsibility to be informed so that you can make the best choice.
You have the right to a healthy
environment.
Your family has the right to
live in an environment that allows them to live, learn and grow. At no time,
should anyone’s health or safety be put at risk because of faulty products.
You
have the right to consumer information.
You have the right to know
where you should go to get the information you need to make wise purchases and
good choices. Be informed of every avenue of appeal. That also means that you
as a consumer have the responsibility to take advantage of educational
opportunities when they come along.
You
have the right to be heard.
Your opinion counts as well!
You have the right to let companies, law makers and government departments know
your views. You have the right to somehow influence the administrative process.
But this right also means that you must become involved. Choose to join the
Consumer’s Association of Canada and make your voice heard.
Welfare provides financial support to families and people that
have little or no income. This assistance from the government is to provide
enough money for your basic living needs.
This section provides answers
to some common questions that you might ask if you want to receive welfare.
Q.
My welfare worker is rude and won’t listen to me. Is
there anything I can do?
A. If you are on
Employment and Income Assistance (E&I)
then you have probably been told your welfare responsibilities. However, it is important
to know your welfare rights as well!
E&I Assistance employees must follow the
policies in welfare’s “Administrative Manual”. The general intent of the
policy is to give you the opportunity to become a self-supporting person if at
all possible. You have the right as a Canadian citizen and a
For example, if you are capable of working,
E & I
Assistance must do all they can to help you find work and become a self
supporting person. This includes paying for transportation while you look for a
job until you receive your first pay cheque.
Remember,
you have the right to be treated with respect and dignity no matter what your
circumstances are!
If you are using
any government service you should never be discriminated against on the
basis of race, colour or religion. If you feel you are being treated unfairly
you can ask to speak to your welfare worker’s supervisor.
If you feel intimidated by Employment and Income
Assistance employees,
you can contact a group that will advocate (speak for you) on your behalf. Call
Low-Income Intermediary Project (L.I.I.P.) at 947-2220. You can also
make an appointment at the Aboriginal Health and Wellness Centre at
925-3700 to see a counsellor. They often advocate on their clients’ behalf.
You can also contact Community Legal Education Association at
943-2382. They distribute legal information to people who want to know about
their rights under the law. Ask for the book Welfare–A
Guide to Employment and Income Assistance.
If you would like to get a copy of the Employment and Income Assistance Administrative Manual you may find a copy at
the Centennial Public Library,
Q. I have no money, food, or bus
tickets and I don’t receive welfare right now. If I go down to welfare do they
have to help me?
A. Yes. If there
is a real need you can receive assistance right away. This might include a food
voucher, bus tickets, temporary shelter or payment of a prescription. Welfare is never supposed
to leave someone who is eligible for assistance without
emergency aid.
If welfare demands that you go for a pre-intake orientation, agree that
you will, but make it clear that you need help until your first payment. If the
worker refuses, ask to speak to a supervisor or call L.I.I.P. (947-2220) BEFORE
you go to the appointment. They can help you get what you need.
Q. I’m eight months pregnant. My parents kicked me out of my
house. Can I get welfare?
A. If you are eighteen or nearing your eighteenth birthday you can go on
welfare from your seventh, eighth or ninth month of pregnancy. You should be put into the single parent category
(person with dependant). However, this might not happen and you might have to
deal with Child and Family Services. Try calling Pregnancy Distress Service
at 772-9091 to see what your options are. Or Klinic
Community Health Centre at 784-4059 for an appointment. They also have a 24
hour-Crisis line at 786-8686. They will inform you of where you can find a
place to stay and where you can get financial support.
Q. Does welfare have to pay for my
security deposit?
A. Welfare will pay for
one security deposit while you are
on welfare. But if you must move, and lose your security deposit, welfare can
give you the money upfront and make small deductions from your cheques.
Q.
When I moved out of my last apartment, I tried my best
to leave it clean, but 
the landlord found some
excuse to take my security deposit. Can this be done?
A. If the
landlord decides to take your security deposit, you are to be informed 28 days before you move
out. If the property is in good condition, clean and rent is paid fully to the
end of your lease, the landlord should not take your security deposit. If you
think the deposit has been taken unfairly, call the Residential Tenancies Branch at 945-2476.
Residential
Tenancies will
investigate what you say, speak to the landlord and hold a very informal
hearing–or meeting between you, the landlord, and an officer or officers from
Residential Tenancies. You have the right to have a lawyer present with
you, or you can contact a lawyer before you go.
If you don’t have a lawyer and want some help, try
posting an announcement up at the Faculty of Law, Robson Hall building,
Q.
My landlord won’t do any of the repairs needed in my
apartment. I’m sick and tired of asking him all the time. Can I stop paying my
rent?
A. No, but you
can go to the Residential Tenancies Branch for help.
Write down what you want the landlord to do, why it needs to be done, and how
long you have been waiting to get it fixed. If you need help wording
your letter call the Consumer’s Association and they will help.
The Residential Tenancies Branch will
talk to the landlord and inspect your apartment if needed, allowing the
landlord a reasonable amount of time to fix the problems. If the repairs are
still not done, the Residential Tenancies Branch will speak the landlord again.
If the landlord still doesn’t do the repairs, Residential Tenancies will hire a
contractor to come in and make the repairs. In that event, the Residential
Tenancies Branch will ask you to send your rent to them. But don’t send money
unless they tell you to!
Why won’t banks cash
my cheques?
Banks are extremely cautious when it comes to
cashing cheques from people they don’t know or have on file; therefore
they make sure every thing is in order before cashing a cheque. Otherwise they
could end up getting a fraudulent cheque and lose money. That’s why it may be
difficult to cash a cheque.
This section answers questions you may
ask if you are having difficulty cashing a cheque with a bank.
Q. I want to open an account, but I have hardly any
identification. What can I do?
A. Most banks and credit unions will ask for two
pieces of identification. Assiniboine Credit Union and
C.I.B.C. will accept Provincial Social Assistance Cards as ID if you show them
one other piece of ID. It is the law that banks ask for identification but they
cannot make it too difficult to cash a government cheque.
In addition to a
Provincial Social Assistance Card, banks will also accept the following as
forms identification.
i
treaty card
i
student card
i
driver’s license
i
citizenship card
i
landed immigrant
card
i
birth
certificate
i
social insurance
card
The banks will
be more likely to cash your cheques if one of
their tellers knows you and will vouch for you. If you have only one piece of
I.D. you might try opening a bank account where someone knows you.
When you open an account, you will have to give the
bank information about yourself. A bank teller should help you fill out the
application. If they do not offer, do not hesitate to ask. You do not need to
show them or give them your Social Insurance Card, but you must give them your
number. Then you will have to sign your name so that the bank or credit union
can keep it on record so you can cash your cheques and make
withdrawals.
Q.
I have had more than one bank refuse to cash my
government cheque. Can they do this? What can I do?
A. Many people
on limited incomes have complained that banks refuse to cash their government
cheques, or even discourage them from opening up a bank
account with their branch. This is really unfortunate, and has become such a
problem that the Canadian government now realizes that there is a problem with
access to financial institutions.
In order to cash
a government cheque you will need at least two pieces of identification,
preferably picture ID, like a treaty card or a driver’s license. The decision
whether or not to cash your cheque is made by the tellers who serves you, but
ask to speak to a manager or supervisor if you are refused.
The Canadian
government and the banks have an agreement that if the bank cashes a cheque
that turns out to be fraudulent, the bank will be reimbursed by the government
for amounts up to $1500. You might wish to politely +bring
this to the bank teller’s attention.
To help improve
bank service to limited income customers, Financial Consumer Agency of
Canada (FCAC) has a number you can call in which to direct your complaints.
(1-866-461-3222).
If you feel that
the bank is being completely unreasonable you have the right to complain. This
is the procedure for making a complaint:
1.
Call or speak to someone at the bank branch
directly. If you need help to word your complaint or write your letter, the
Consumer’s Association of Canada can help you.
2.
If you don’t get
help from the bank branch directly, ask for the Bank’s head office or Ombudsman
and send your letter there.
3.
If you
feel your complaint is not being treated very seriously, you have the right to
appeal through Canadian Banking Ombudsman at 1-888-451-4519.
4.
The Banks are regulated
through the Office of the Superintendent of Financial Institutions, a federal
agency. Once you have exhausted all other avenues of appeal you may direct a
specific complaint to 1-613-990-1448.
Q.
I get paid Friday evening after banks close. How can
I cash my cheque?
A. Many people resort to cheque cashing services
simply because of the difficulties of cashing a cheque, especially a personal
cheque, after bank hours. Although the 2.99% interest and $1.99 item fee per
cheque does not sound very high on a $500 cheque it will cost you $16.94.
Before you try
to deposit the cheque, call your bank to make sure that this service will work
for you.
Many banks and
Credit Unions now have Saturday hours, usually from
Royal
Bank CIBC
Corydon Village Mall Branch Crossroads Shopping
Most locations
are now open Cambrian
Credit
Saturdays
2136
McPhillips
Astra Credit Union 1168
All
locations EXCEPT
2211 McPhillips
640 Broadway
If you do not have a bank account or your branch
is closed on a Saturday, try asking friends and relatives to cash your cheque
for you. If you shop at a particular grocery store or drug mart, ask them to
cash your cheque.
What
should I know about credit?
Credit is an amount of money given to a person by a
lender with an agreement that it will be paid back.
This section answers questions that you might ask if you are looking to
gain credit but having trouble getting it.
Q.
I was turned down for credit although I’m working. Why
would that happen?
A. Lenders look at more
than just your employment record when they consider giving you credit. They
look at your credit record and your
credit file from a Credit
Bureau like Equifax
Q.
How do I find out if I have a good credit rating?
A. You can ask
to have a copy of your credit record by calling Equifax
Canada at 1-800-465-7166. Ask for the form “Request to Obtain My Credit
History Report”. You can also access the information from Equifax’s website .You will need to photocopy your identification,
but you do not need to pay any money. It is free.
Lenders use reputable Credit Bureaus in
Credit is gained by making consistent payments on loans.
If payments are missed or are not paid, the lenders loose money; therefore, it
is in the lenders best interest to loan money only to those who will make their
payments.
Q.
Can I have something I don’t want on my record
removed?
A. You cannot
have information removed from your credit record unless it is
incorrect information. But you do have some control over your credit record.
You can correct mistakes. Inform Equifax of the errors and THEY MUST correct
them.
You
can add a customer statement to your file. If you disagree with something Equifax has written
down on your record, send them a signed and dated statement stating why you
disagree with their findings. For example, you had a temporary setback because you
lost your job due to sickness. When a lender sees this, they may understand and
see that you are in fact credit worthy.
You can add a note to any particular
section of your record.
For instance, you could choose to include information about why you missed
payments over a certain period of time.
Q. I already know I have a bad credit rating? What can I do
about it?
A. The only way
to improve your credit record is to pay
bills on time–which is not easy to do when you live on a small budget. Here are
a few suggestions to help you turn your credit record around.
First update
your credit file with Equifax
Equifax Canada Inc.
Consumer’s
Relations Department
H1S 2Z2
It is your right
to see your file, and to have errors corrected.
Even updating information on your file may improve your chances of
getting credit. For example, if you provide your current place of employment,
lenders will know that you are working. This may improve your chances of
getting a loan.
To
actually improve your credit record, try
opening a savings account and make regular small deposits. When you have enough
money for a particular purchase (perhaps a TV set) apply for a personal loan using the savings as collateral. The bank will
advance the loan if there’s money in the account to take if you don’t make your
payments. Then repay the loan by taking the
money from your savings account.
Remember,
you will have to pay interest on your bank loan.
Once your loan has been repaid, ask the lender to inform the
credit bureaus that you have paid off the loan.
Try
taking small but progressive steps towards improving your credit record by arranging payments. If you need help to do
this, contact Community Financial Counselling
Services at 989-1900. They can help you to arrange your debts so that they are easier to pay by contacting
your lenders. Eventually, this will improve your credit record as you start to
make payments consistently.
Q.
Collection agencies are always calling me. It’s
become so bad that I’m afraid to answer the phone! What can I do?
A. According to
the law, there are certain things that collection agencies can and
cannot do. It important to know what your rights are.
·
phone or visit
before 7 in the morning or after 9 in the evening
·
phone or visit
on Sundays or on holidays
·
use documents that
look anything like court documents
·
threaten to
repossess something if they do not have the right to remove things from your
house or apartment if you aren’t home
·
attempt to
collect more money from you than what you originally owe (the amount owing plus
any interest)
·
harass you
Remember,
collection agencies are paid by
the company or person you owe money to. These agencies receive a portion of the
money that you owe. That is why they want to collect the money!
Q.
I know collection agencies can’t harass
me, but I don’t really know what that 
means?
A. Harassment
means calling several times a day. It also means that collection agents
threaten you, make you afraid for your safety or well-being. It can also mean
they use harsh or abusive language. Harassment is a criminal
offence and you have protection under the law.
In addition to
this protection, collection agencies are also regulated
under consumer legislation. This means that if a collection agency is harassing
you, you can make a complaint to the Consumer’s Bureau at 945-3800. You
can also obtain legal advice from Manitoba Legal Aid at 985-8500.
Q.
I want to deal with my debts, but I’ve had setbacks. I’m
also afraid to deal with collection agencies. What should I do?
A. It is always
best to talk to someone about your situation. Do not just ignore it or avoid
the collection agencies. It may work temporarily, but when you want to
improve your credit record, that will be more difficult. Instead:
i
Contact Community Financial Counselling Services. If
you are serious about dealing with your debts in a realistic manner–despite your financial
situation–then they can help. They will help you arrange your finances based on
your income, how much money you owe, and how much you can afford to pay. They
will even
contact your creditors for you if
you want. That way, you don’t even have to deal with the collection agencies. They can also arrange for you to pay them–then
they will pay the collection agencies.
i
If a collection
agency actually does sue you, they will be limited in what they can do and how
much contact they can have with you. If collection agencies do sue
you–and you lose–you will end up paying court costs. This amount is established
by the court and not the collection agency.
i
Call the
collection agencies and offer
them a reasonable payment per month that you can afford. If they accept it,
they have to leave you alone as long as you pay. If they don’t accept it you
can tell the Consumer’s Bureau that you made a reasonable offer based on your
ability to pay and they refused it.
i
You can
consolidate your loans. But you can only do this, of course, if you can find
another creditor.
Remember
that seizure of assets is a drastic last step by collection agencies. They will rarely–if ever–resort to it. Taking
anything from your house usually cancels the debt. There is also a long list of
things that collection agencies cannot take.
Q.
Are there things a collection agency can’t take when
I owe them money?
A. Here are a
few things that collection agencies cannot take:
·
your beds and bedding for you and your family
·
articles you must
have to make a living, like school books or construction tools
·
any vehicle
which is necessary for work which is valued to $3000,
·
medical aids,
like wheelchairs
Seizure of
assets is governed
by law. That means that there are rules protecting both you and the
creditor. If you feel your property has
been unlawfully taken you can contact Legal Aid (locations listed in Consumer
Law section). Or you can contact the Consumer’s Association at 452-2572
as a possible source of information.
Q.
Every year I go to tax rebaters,
like H & R Block, to get my income tax return 
done? Are there any
alternatives?
A. People often
use the cash-back service at tax rebaters because they
want their refund the very next day. However, such services charge 15% on the
first $300, and 5% on the remainder. On a cheque worth $1500, you will pay a
$105 fee. Federal law requires that this interest fee include ALL charges.
If you are
willing to wait just a little bit longer there are alternatives. During tax
season, volunteers in the Volunteer Income Tax Program will prepare your tax
return and e-file it for you free of charge. You will get your return within 2
weeks during tax season. For information on locations call 1-800-959-8281 or
Rick at 483-2697.
Payday loans are small loans, usually
ranging from $100 to $500 that must be paid back by your next pay check. People
often use this option because you receive the loan the same day and
typically there is no credit check.
This section
answers questions you might ask about payday loans.
Q What are the disadvantages of using
payday loans?
A. Some
disadvantages include the following:
·
The loan must be paid
back in full usually within two weeks
·
The lenders
often have high interest rates.
·
There is a limited
amount that you can borrow.
·
You must pay
more if there is not enough money in your account to repay the loan.
Q. Can I take out a loan when I am on welfare?
A. Some companies will cash your welfare cheque and allow you to take out a
loan providing you
bring,
- a bank statement
- a blank cheque
- photo ID
The processing
of your application can take around 10 – 15 minutes and is not guaranteed. Most
companies require that you are employed and have been employed for at least
three months to be approved for a loan.
Remember,
not all companies will cash a welfare cheque.
Q. What happens if I don’t have enough
money in my account to pay back the loan?
A. If you can’t
pay your loan you will have
to deal with something called a “roll-over” which is an extension on your loan.
If this happens another fee will be added to your amount owing. For each
extension of the loan, another fee will be added.
Q. What should I know before getting a
payday loan?
A. You should
know that typically the fees for this service are not cheap. However, the
amount of money is usually small (around a couple of hundred dollars), and the
fee could appear to be small and insignificant.
These loans are
only meant to be short term loans. If the loans become long term, amounts can
increase greatly–possibly greater than the original cash advance.
For example, if you borrow $100, you will have to
write a cheque for $115 to be cashed in 14 days to repay your loan including the
$15 fee. However, if the money is not in your account to be taken out after 14
days there will be an extension fee added to your amount owed. Therefore, if
the APR (the cost of credit on a yearly basis) is 3.91percent and you extend
the loan three times, the finance charge would increase to $60 to borrow $100.
This is a costly
way to borrow money, but if you decide to use this service, make sure you are
dealing with a reputable company and look around for the best interest rate.
If you are going
to use the payday loan service, make
sure you read and understand all the terms of the loan. Make sure you get the
finance charge and the annual percentage rate or APR in writing. Be careful
when using this service and make sure you can repay the loan on time.
Bankruptcy is a legal
proceeding available to people who are unable to make payments on their debts. By claiming bankruptcy, your debts are removed allowing
you to start over. To be able to claim bankruptcy, you must owe at least $1000
and be unable to meet payment due dates.
Remember, talk to your creditors before you
seek help from counsellors or trustees.
This section
answers some questions about bankruptcy.
Q. Will creditors stop harassing me if I claim bankruptcy?
A. Yes. Once all
forms have been filed, creditors must stop
harassing you. However, this does not include student loans, child support,
court fines, and awards for damages by assault, a claim for alimony or a debt
arising out of fraud.
When considering
filing for bankruptcy, it is very important to remember that if you have a loan that has been
co-signed by someone else, the co-signer becomes responsible for paying your
loan.
Q. Who will know if I claim bankruptcy?
A. If you claim bankruptcy,
a notice will be placed in the “legals” section of
the newspaper to notify creditors. If there are only a few items, creditors will be
notified by mail. The general public has access to any public document which
includes bankruptcy notices.
Remember,
if you claim bankruptcy, this information will be forwarded to the Credit
Bureau and will be recorded on your credit file for up to six
or seven years. If you have claimed bankruptcy before, this period could be
extended up to 14 years.
Q. If I go bankrupt, does this mean I
can’t get credit?
No. The approval of credit is still the
creditor’s responsibility and they will make the decision of whether or not to
give you credit.
Q.
If I claim bankruptcy what do I get to keep?
A.
You get to keep
the items listed on your personal exemption. This exemption includes:
·
furnishings and
appliances up to the amount of $4500
·
Ordinary
clothing and work clothes/tools of trade
·
Food and fuel needed
for the family for six months or cash equivalent
·
Health aids such
as wheelchairs, air conditioner, hearing aids or glasses
·
One vehicle for
work and transportation not exceeding $3000
·
Articles
necessary for performance of religious services.
A. You don’t get
to keep anything in excess of your personal exemption as mentioned in the
previous question. Anything beyond that, such as real estate or recreation
vehicles will be taken to repay the creditors. Also, inheritances, lottery winnings and tax
returns received during the time of bankruptcy may be taken to repay creditors.
Q. Do I get to keep the money I earn?
A. Any wages or income earned after you claim
bankruptcy belongs to you. However, you may be instructed by your trustee to
pay with your wages if your earnings are greater then what is needed for the
number of people in your family.
Q. How long will I be bankrupt for?
A. There is an automatic
discharge for first time bankrupts after nine months unless the trustee
recommends a discharge. However, if the creditor disagrees with the time period
of bankruptcy, the discharge may be longer.
Remember,
bankruptcy should be considered as a last resort as it is long term and can
affect your financial records for a long time.
For further information, visit strategis.gc.ca or www.bankruptcycanada.com/personal1.htm
or call 1-800-328-6189.
What is Consolidation?
Consolidation is an
alternative to bankruptcy. This allows you to combine all your loans into one
loan with a
payment you can handle.
Q. How can I get consolidation on my debts?
A. You can go to
a bank and ask them about combining your debts into one loan. They will explain to you the process of receiving
consolidation and how it works.
Remember,
check around at different banks as interest rates may vary for each bank and
look for the best deal.
A consumer
proposal is an
arrangement made between you and your creditors to decrease the
amount owed, extend the time you have to pay off your debt or a combination of
both.
This section
answers some questions you may ask.
Q. What are the advantages of a consumer
proposal?
A. A consumer
proposal allows you to
keep your property without your wages being garnished or having your property
seized. However, if your proposal is withdrawn, rejected or annulled where the
debt was not fully paid off, the creditor will be able to take legal steps to
recover their debt from you.
Q.
How can I apply for a consumer proposal?
A. First you must be eligible to apply for a
consumer proposal. To be eligible you must be in debt under $75000
excluding a home mortgage.
You must also
obtain assistance from a trustee who will be the administrator of your consumer
proposal.
Pawnshops are places where people go to get small short
term loans. Consumers bring an item of value to a pawnshop and signing a
contract stating that the pawn broker will hold the item until a specified date
in return for money. The loan must be paid in full by that date; otherwise
the item becomes the property of the pawnbroker.
This section
gives you answers to some common questions about pawnshops.
Q.
I often use pawnshops and sometimes I can’t get back
in time to pay off my 
stuff. Can the pawnbroker
just keep my stuff?
A. When you take
an item to a pawnshop, you are offering the item to the pawnbroker as
collateral (something to offer up in case you don’t come back) for money. The
pawnbroker takes your item to hold, and then asks you to sign a contract. This
contract is a short
term loan. You should read this contract carefully so that
you know what you are agreeing to. Ask the pawnbroker how much time you have to
come back and get your item. Take note of the date on the receipt. The
pawnbroker can not sell your item until the date on the contract or receipt has
passed. If the pawnbroker breaks the contract by selling your item before that
date, then you have a legitimate reason to complain. Calls the Consumer’s
Bureau at 945-3800 and make it clear that you wish to make a complaint.
Q. What if I lose the receipt?
A. By law, every pawnshop must keep a record of every
transaction. Show the pawnbroker your identification in place of your receipt
and make it clear that you are there to pay off your loan and get your
stuff back. Knowing that you have come to pay off your loan, the pawnbroker
will usually comply.
Q.
What do I do if the pawnshop makes it hard for me to
get my stuff back?
A. Remember, the
pawnbroker may not use, sell or damage your items while covered under the
agreement. This agreement means that the pawnbroker has agreed to become a holder
of your property. If your items are lost, stolen or damaged while in the
pawnbroker’s possession and covered under the agreement, the pawnbroker should
have to replace it. Check your agreement carefully before you sign it. Look for
clauses that might protect the pawnbroker in case anything happens to your
stuff while it’s in their possession.
If you are having problems with the pawnbroker
because he will not replace your goods, call Legal Aid Manitoba at
985-8500 and make an appointment to bring your contract into a community law
office. Or if you believe that the pawnbroker is treating you unfairly, call Manitoba
Consumer’s Bureau at 945-3800. Make it clear that you want to make a
complaint.
Q.
Pawnshops seem to have good prices on used televisions.
Should I consider buying one second-hand?
A. Used
purchases can be a good bargain, but you must always be careful when buying
used items from anywhere, not just pawnshops. Unless the seller makes a
specific claim you must depend on a visual inspection of the article. Look it
over well and plug it in to make sure it works. Read the contract of sale very
carefully or have the pawnbroker read it to you. You can also bring a trusted
friend with you shopping and don’t be afraid to speak up and ask questions. For
example, can you return the item if it breaks down when you get it home? It is
important to find this information out, and get specifics in writing because in
most cases, once you have purchased an item you cannot exchange or return it.
However, if the
seller tells you something about the product that is not true, and you find out
later this information is false, you can make a complaint. This sort of unfair
business practice is against the law. You should:
1.
Attempt to return whatever you purchased back to the store or pawnshop.
Complain that the salesperson told you something that was untrue.
2.
If they will not listen to you, let them know that your next avenue of
complaint will be the Consumer’s Association of Canada and the Consumer’s
Bureau.
3.
Then call the Consumer’s Bureau at 945-3800. Tell them clearly what
happened.
Do you use pawnshops to cash your cheques?
Remember, pawnshop cannot take more than 2.99% for cashing
your cheque. That means that the pawnshop can only take $8.97 for cashing a
$300 cheque. The Government of Canada has an agreement with the
banks that they will cover the loss of any fraudulent cheque up to $1500. For this
reason, if you have two pieces of identification. (preferably photo ID., like a
treaty card) the bank should cash your cheque.
LIf you have any kind of problems with the pawnshop call the
Consumers Bureau at
945-3800.
If you want
someone to advocate on your behalf with an unreasonable pawnshop call Low-Income
Intermediary Project (L.I.I.P). at 947-2220.
How does a rent-to-own work?
A
rent-to-own is a place where you can rent appliances and
other goods. At the end of your payments you may also be given the choice to
own the item.
People often
use rent-to-own because the rental payments are low and seem
like a good deal. This is not always the case.
This section
gives you answers to some common questions and explains how a rent-to-own works.
Q.
I rented a television from a rent-to-own and someone broke into my apartment and stole
it. The rent-to-own says I must still make my payments. Is that the case?
A. The item is probably insured by the rent-to-own. After all, it is still their property. When we
called around, we found that most rent-to-own stores
do insure
themselves in case their rental items
are lost, stolen or damaged. Generally, you are paying for their insurance in
your payments.
To know for certain, look at your rental agreement. Most of the time, the renter is protected in the
case of theft or loss. Look for clauses like “Customer Protection Option”. If
the agreement contains an insurance clause, tell them that you know they have
insurance and to leave you alone. If they continue to harass you, call the
Consumer’s Association at 452-2572.
Q.
I bought a television from a rent-to own. When I
missed just one payment near the end of the 24 months the company came and took
it away. Can they do this?
A. Yes, if it is written in the rental agreement, they
can repossess the television the very next day. You may think that you are
buying the item; but really, you are only renting it. Under a rental agreement
you do not have the same rights as if you went to a store and bought the
television. All terms are listed in the rental agreement which you must sign
before you receive the television. By signing this agreement, you have agreed
to follow those terms. The only way to protect yourself is to read the
agreement carefully before you sign it!
Q. I made all my 24 payments on time. But at the end of the 24
months they told me that if I wanted to own the television, I would have to pay
them more money! Can they do this?
A. Yes. If the
rental agreement says that at the end of the 24 payments you will have to pay
more money, then you will if you want to own the television. This is often
called a “transfer of ownership fee”. It seems unfair, but they can do it if
it’s in the agreement. Look for this type of clause in an agreement before you
sign anything.
For
example, a color TV set costs $500 and the payments are $30 a month until the
end of the rental period, which is 24 months plus 14% tax. Therefore, you will
be making 24 payments of $34.20, which equals out to $820. That’s a lot more
than $500. Then, you may be required to pay “transfer of ownership fee” if you
want to own the TV.
Q.
What should I know before I consider using a rent-to-own?
A. Before you
decide to use a rent-to-own, think about the following:
·
If you can avoid
using a rent-to-own, you should try to do so. Sop around for other payment
plans. By using a rent-to-own, you will probably end up paying at least three
times more for an item than if you had just bought it at an appliance store.
·
Think about
putting the item on layaway and making regular payments.
·
However, if you choose
to use a rent-to-own because you
feel you need the item now, then take steps to protect yourself. Make sure that
you ask for the final price that you will pay–not just the monthly payments.
·
Ask the
salesperson how much the item will cost you with everything included and have that
price written on the agreement.
·
Do not do
business at a store that is not being upfront with you.
Questions to ask the salesperson:
1.
How much will
this cost me in the end?
2.
Can the company
go into my house/apartment when I’m not there to repossess the item?
3.
At the end of the contract will I own the item or
will it cost me even more money before I own it?
4.
What happens if
the item is lost or stolen?
5.
If I miss a
payment, is there a penalty?
6.
Are
there any penalties if I buy the item outright before the contract is up?
How
can I reduce my cost of living?
Costs keep going up and it becomes more difficult to
live off the money you have. Fortunately, there are creative ways of lowering
costs as well.
This section answers questions that will help you to lower your spending
habits.
Q.With the cost of utilities going up, I find I can’t budget
enough money to cover my basic needs. What can I do?
A.
Unfortunately, the increases in utility fees (phone
service, electricity and natural gas) affect those who can least afford to pay
the most. Try the following:
1. Read
your own meters and be aware of your own consumption habits.
2. Ask
for a breakdown of your bill into basic services. You should always know what
you are paying for.
3. Once you
have your bill, look for billing errors. Are there places where you are not
sure exactly what you are paying for? Look for charges listed as miscellaneous.
Bring this to the attention of the company.
4.
Arrange payment
options. Arrange to pay when you can. For instance, pay twice a month at each
of your pay cheques instead of
once a month. Call:
MTS 941-7075
Centra
Gas 480-5900
Manitoba Hydro 474-4990
5. Welfare must pay utility
increases. Bring in your bill and have your worker adjust your budget.
Remember
to use conservation measures. Watching your consumption can save you money.
Call Centra Gas or Manitoba Hydro and ask for
conservation tips.
Q.
If I have a complaint with a utility company, who should I call?
For complaints about your
MTS service, use your phone book and turn to the first few pages of the white
pages and locate the section “Terms of Service”. This is where you’ll find MTS
policies and guidelines for service. Then call Customer Service at 941-6800
Monday to Friday with your specific complaint and how you want MTS to resolve
the issue. If you feel MTS has not resolved your complaint, you can file a
complaint with the Canadian Radio-television Telecommunications
Commission (CRTC) which regulates the radio and telecommunication sector.
Call 983-6306.If they ask you to write a complaint letter and you need help to
do so, call the Consumer’s Association of Canada.
Contact customer service with your complaint by
calling the number located on your bill. State your problem clearly, give them
the proper information and tell them how you want the problem resolved. If you
feel that they are not doing enough you can ask to speak to the supervisor. If
you still feel that the matter has not been resolved to your satisfaction ask
to speak to the Customer Care Manager at 945-2638. Both Hydro and Gas are regulated
by the Public Utilities Board.
Shopping for clothes on a low budget
Shopping for clothes can be difficult, especially when
you are on a low budget. Take steps to become a shopping professional by
studying prices on new and used clothing as well as material and sewing
quality.
This section gives you some tips on
buying new and used clothing.
Q.
My boy wears his clothes out very fast but I can’t
afford to keep buying him new clothes. Do you have any suggestions?
A. Take stock before you go shopping. Determine your
child’s needs and preferences. If he is a very active boy, you might want pants
that have reinforced knees.
Consider shopping at stores that offer
warranties on kids’ clothes. Keep your receipts in a
special place so you know where they are. When the clothes wear out, make the
store replace the item as promised. Also, look for stores that are having
sales.
Shop at second-hand/thrift stores and factory outlets.
Many
well-dressed families buy their children’s entire back to school wardrobe at
thrift stores. And even thrift stores have sales–so watch for these.
Visit clothing depots at
Some of them even have emergency hours.
Remember,
during the fall season. They provide free winter parkas to families with
children who need them.
If you don’t have a vehicle let relatives
who go to them know what you need so they can buy for you.
