Consumer Action trains on credit cards

Consumer Action and American Express co-hosted a Train-the-Trainer event on credit cards in Memphis, TN in May. Consumer Action developed the Credit Cards: What You Need to Know and Families and Credit modules that were featured at the meeting. The training drew 49 financial educators from community-based organizations, academic institutions and government agencies in Tennessee, Alabama and Arkansas. Of the participants, 78% felt that they obtain sufficient information to promote credit card literacy within their community.

Community Outreach Manager Linda Williams trained the participants on How Adults Learn and what their motivations are for learning. Williams reviewed the three types of learners: auditory, visual and kinesthetic and had each audience member then self-identify their type. The purpose of the exercise was to show that there are all types of learners in every trainers’ audience and stress the importance combining various teaching methods to reach every participant.

Community Outreach Manager Nelson Santiago led the training on Credit Cards: What You Need to Know. Santiago discussed the different types of credit cards, explained about the kind of offers consumer may receive, and discussed appropriate uses of credit cards.

Director of National Priorities Linda Sherry was on hand to give participants a thorough overview of the new consumer protections for credit cardholders under the CARD Act of 2009. Some of the new protections afforded to cardholders include: no interest rate change during the first year of the account except under specific conditions, no interest rate increase on existing balances, 45 day advance notice of interest rate increase, timely posting of payments and inability to charge over the limit fees unless a cardholder has opted in.

The final presentation of the day focused on Families and Credit Cards. The module weighs the merits of giving children credit cards. Consumer Action covered two activities: Credit Card Yesteryear and Wants vs. Needs. In the Credit Card Yesteryear exercise, the audience was broken down into groups that then discussed topics such as how their parents handled credit, how they handle credit and how they want their children to handle credit. In the Wants vs. Needs exercise, the participants identified wants versus needs in various real-life scenarios.