WEBVTT

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- So one thing to think
about as you think about

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your own financial literacy is
what do you do in a situation

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where you try to interact
with some type of a business

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or a financial institution
and they either are

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misinforming you in some
way or they're not doing

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what they said they would do?

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For example, let's say that
you buy something online

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and you give the payment,
you give the credit card,

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and they take the money from you

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but they don't send you what you thought

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they were going to send you.

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Or let's say you buy a product
and it breaks immediately

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and maybe it's still in warranty,

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but they don't really fix that.

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Who could you turn to?

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Well, the main entity in
the United States for that

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is known as the Better Business Bureau,

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sometimes BBB for short.

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And it's actually an
independent not-for-profit

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but it exists for this exact reason.

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If there's a business
that you think is doing

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not so great business practices,

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you can file a complaint with
the Better Business Bureau

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and they actually will log that complaint

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and they keep track the
same way that businesses

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or financial institutions keep
track of your credit score.

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The Better Business Bureau
keeps scores or ratings

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for businesses on how good
their business practices are.

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And it's somewhat
measured by the complaints

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that people are putting
in on that business

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and to what degree those
complaints are actually legitimate.

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Now, it's not just about buying a product

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or whether someone fixes
a product or warranty,

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there's also situations
where people might use

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misinformation or maybe
not complete information

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or not complete education
to take advantage

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of you the consumer.

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There's a lot of situations
if you go back into actually

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just world history where
especially financial institutions

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say, hey, give us a
little bit of this money

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and we'll invest it in really good ways

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and it's gonna come out really well,

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or we'll give you this loan

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and there's no strings attached,

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but maybe there are some strings attached.

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Or maybe it was a more of
a loan than you realized

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you were getting into,

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or there's certain aspects of the loan

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that might get you in trouble.

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And to help prevent that
there is a federal agency

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called the Consumer
Financial Protection Board.

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It came out of the banking crisis of 2011,

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when there were a lot of
folks who were kind of

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not given all the details
or maybe didn't have all

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of the necessary information
to make a decision

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about taking out a big loan

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or maybe the interest rate will
change dramatically, go up.

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They didn't realize the
risks that were involved

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of taking out a big loan for an asset

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that was very speculative.

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Maybe the price of that
might go down like a house

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in an area where the housing prices

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have just gone up a lot.

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And more extreme examples
there's things like payday loans

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where fairly vulnerable folks
might go into these loans

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not understanding the interest involved

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which is ginormous, to
use a technical word.

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So that's what the Consumer
Financial Protection Board does

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is to make sure that folks are informed,

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that people aren't doing misinformation

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or taking advantage of
people's lack of knowledge.

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Now, those are the two big
ones on a federal level,

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but there's also going to be other groups.

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There's groups that help
monitor the types of securities

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that might get issued.

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You might say, well, what's a security?

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Well, it's things like a stock or a bond.

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And as you can imagine,
if there's some kind of

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shady company that really
has nothing behind it

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but says, hey, here's some shares

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and these shares are
in the newest hot thing

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like it's artificial
intelligence, biotech,

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whatever, whatever, a
lot of people might say,

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oh, I'm just gonna buy those
shares without realizing

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there's no company behind it.

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And so you also have groups that regulate

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things like securities.

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You have groups that regulate
especially at a state level,

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insurance.

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It's one thing for someone
to say they're going

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to insure you and collect your premium,

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but when the bad thing actually happens

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and you need to get the the payout,

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are they going to be there for you?

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That's why insurance is
pretty regulated to make sure

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that the people who say
they're offering insurance

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are actually good for it.

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So you need to be wary,
you need to be careful,

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but you should also be conscientious

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that there are entities out there

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that are there to help
inform and protect you.