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					      Section 4                                        NAME:  _________________, _____________--DIV ____
      Johnny Gullible                                  Consumer Ed-- 1               3    4      7     8
                                                       DATE IN FULL: ________________ _________, 200____

                               Video Guide: Consumer Education 2
Description: Pseudo-documentary featuring interviews with people in Johnny Gulliver’s life talking about the bad
financial decisions he has made.
       Length: 15 minutes
       Setting: Generic City, ST places of business, homes, and other venues
       Plot: Johnny, now in his early 20s, inherited $50,000 when he was 18 for his kindness to an elderly
                  neighbor. Unfortunately, the young man is so uninformed about handling money that he makes
                  mistake after mistake, until his money is gone and he finds himself deep in debt

Johnny Gulliver, aka Johnny Gullible: a decent-hearted fellow, he prefers not to be bothered with details and is
           trusting to a fault.
Bill and Betty Gulliver: Johnny’s parents, who tend to be a little overindulgent
Janey Gulliver: Johnny’s older sister, who is embarrassed by her brother’s financial mistakes
Angus McMillen, aka The Beast: a security guard who explains how he gave Johnny his nickname when they
           were kids in school and how his gullibility led Johnny to make financial mistakes as an adult
George Osborne, aka Geordie: Johnny’s childhood friend, who was a firsthand witness to many of Johnny’s
           episodes from early childhood through high school. Geordie took up a career in financial counseling
Kim Larson: a young used car saleswoman who recounts how Johnny was an uninformed consumer
Mr. Papadeaux, aka Papa: Johnny’s economics teacher who tied really hard to teach his students that economics
           starts with a budget and figuring out what you need and what you can afford
Phillip Lily, aka Big Phil: stereo and gadget salesman who convinces an eager Johnny to use the high-interest
           store credit card rather than a debit card
Neil Barnes: college credit card representative who qualifies Johnny for his “low interest rate” credit card
Vanessa Montero: Johnny’s ex-girlfriend who tried to help him with his money management skills. She
           eventually grew tired of his seeming inability to handle money responsibly
Duane Dyer and Marie Woodbine: Johnny’s co-workers at Aye Aye Burger

Note Johnny’s reaction to each of these informational quotes
from the video and then what he should have done:

   I try to drill into all my students: start with a budget. Think about what you want and then decide
                                of it’s something you really need—Mr. Papadeaux

1A: Johnny’s response:
1B: Remedy for Johnny:
 I sat him down. I said, “Johnny, you should save this money.” Checking accounts are good.
 Money markets are better—Mr. Papadeaux

2A: Johnny’s response: _______________________________________________________________
2B: Remedy for Johnny: ______________________________________________________________

     He told me he could pay with cash. I said, “Pay cash? Why pay at all? If you open a store
                      credit card, you pay nada for six months”—Big Phil Lily

3A: Johnny’s response: _______________________________________________________________
3B: Remedy for Johnny: ______________________________________________________________

One hour on the internet or in a library and anyone can find out how much a car should cost. And
 one call to an insurance agent will tell you how much the insurance would run you—Kim Larson

4A: Johnny’s response: ______________________________________________________________
4B: Remedy for Johnny: _____________________________________________________________

    We’ll give credit to pretty much anyone, but when I ran Johnny’s credit report… That’s when I
   realized who he was: the kid who bought the stereo. Oooo weee, that kid had a little and owed
    a lot. And he was already behind on the stereo payments. So we did what we always do with
           people who have screwed up: charged an even higher interest rate—Big Phil Lily

     I told Johnny paying back that money was going to be hard. But the real damage had been
         done to his credit report. Bad credit stays on your file for seven years—Mr. Papadeaux

5A: Johnny’s response: ________________________________________________________________
5B: Remedy for Johnny: _______________________________________________________________

     Credit card cash advances. That’s like bolting a paper shredder onto the ATM! I you get a
        good credit card rate, it could run you about nine percent or so. But cash advances?
                       You’re paying around nineteen percent—Mr. Papadeaux

6A: Johnny’s response: ________________________________________________________________
6B: Remedy for Johnny: _______________________________________________________________
The following activity comes from Johnny’s credit report. Carefully study the
terms as well as the informational data for his individualized account information.

                                  Johnny Gulliver Credit Report

       Identifying Information (1)

       Personal Data
          Gulliver, Johnny                                Date of Report: 08/01/07
          123 Nowhere St.                                 Report Number: 1234567890
          Generic City, ST 13130

          Former Address Reported:                        Social Security Number: on file
          1313 Big Shot Apartment Rd.                     Reported Date of Birth: 10/10/1986
          Generic City, ST 13132                          You have been in our files since: 5/2004

          Employment Data
          Employer: Aye-Aye Burger
          Position: Assistant Manager

       Trade Line Information (2)
          Credit Score: 400 (3)

       Satisfactory Account Information Section

          The following accounts are reported with no negative information

          CONSOLIDATED DEBT COMPANY                       Acct: #111222233333 (2)
          Status: Open. Never late

          Opened: 7/20/2006                               Acct. Type: Loan
          Reported Since: 72006                                   Credit Limit/Original Amt: $25,000
          Revised Date: 8/2007                            Balance: $20,000
          Last Day of Activity: 8/2007                    Payment Terms: Monthly, $200

          GET SMART LOAN COMPANY                          Acct. #666655554444
          Status: Open. Never late

          Opened 9/20/2006                                Acct. Type: Loan
          Reported Since: 9/2006                                  Credit Limit/Original Amt: #10,000
          Revised Date: 8/2007                            Balance: $7,500
          Last Day of Activity: 8/2007                    Payment Terms: Monthly, $150
        NUMBER ONE BANK USA                                  Acct. #12345678910 (3)
        Status: Open. Never late.

        Opened: 3/2007                                       Acct. Type: Debit
        Reported Since: 3/2007                               Credit Limit/Original Amt: $1,000
        Revised Date: 8/2007                                 Balance: $50
        Last Day of Activity: 8/2007                         Payment terms: Monthly, $10

Adverse Account Information Section
Negative (or adverse) information about your accounts. This negative information may generally be reported for
seven years from the date of the first late or missed payment (or other delinquent action).

        ABC AUTO FINANCING                                             Acct. #10987654321(4)
        Status: open. In prior 24 months, late 8 times
        Status Remarks: At 7-2009, this account is scheduled to go to positive status.

        Opened: 5/2003                                                Acct. Type: Auto Loan
        Reported Since: 5/2003                                        Credit Limit/Original Amt: $25,000
        Revised Date: 8/2007                                          Balance: $15,000
        Last Activity: 8/2005                                         Payment Terms: Monthly, $200

        STEREO & GADGET ELECTRONICS                           Acct. #8888777766662222
        Status: Closed 8/2005. In prior 24 months, late 12 times. Maintained max limit until account closure.

        Opened: 5/2003                                                Acct. Type: Revolving
        Reported Since: 5/2003                                        Credit Limit/Original Amt: $3,000
        Revised Date: 8/2007                                          Balance: $0
        Last Activity: 8/2007                                         Payment Terms: Monthly, $200

        BIG PHIL ELECTRONICS                                          Acct. #333366669999
        Status: Closed 8/2007. In prior 24 months, late on all payment due dates. Maintained max limit until account

        Opened: 7/2003                                                Acct. Type: Revolving
        Reported Since: 7/2003                                        Credit Limit/Original amt: $5,000
        Revised Date: 8/2007                                          Balance: $0
        Last Activity: 8/2007                                         Payment Terms: Monthly, $600
Non-Sufficient Fund Information
      This section lists any non-sufficient fund checks (bounced checks) that may have been reported

      Company Name: Number One Bank Company
      Dishonored Date: 11/2004
      Date Reported: 11/2004
      Remark: N.S.F./Non-Sufficient Funds
      Balance: $300.00
      Status: N.S.F./Non-Sufficient Funds
      Verification Number: 1A2B3C


Regular Inquiry Section
      The following companies have received your credit report.

      Date of Request                     Subscriber Name
      3/05/2007                           Number One Bank
      3/01/2007                           Town Bank
      2/27/2007                           First Founders Savings Bank
      2/24/2006                           Federal Dollar Bank
      9/02/2006                           Get Smart Loan Company
      7/11/2005                           Consolidated Debt Company
      5/25/2005                           ABC Bank
      1/31/2005                           XYZ Consumer Disclosure
      9/05/2004                           Games R Us
      8/13/2004                           Credit Data/Someone Crop
      7/21/2004                           Virginia Records
      6/04/2004                           Baseball Cards Inc
      4/10/2004                           Get Hip Clothes Company
      7/03/2003                           Big Phil Electronics
      6/09/2003                           Pets 4 Everyone
      5/01/2003                           Stereo & Gadget Electronics

Soft Inquiry Section

      BIG PHIL’S COLLECTION                                 Acct. #321XYZ (6)
      Creditor:                                             Big Phil’s Electronics
      Original Balance:                                     $5,000
      Status:                                               $5,000 satisfied 8/2006 ($2,500 payment, plus
                                                            repossession of TV)

      This is where you can submit a written statement that is distributed with any copies of your credit
      reports, especially if you think information on your credit report is wrong. No personal statements.
Terminology used in credit reports:
   1. Identifying Information: name, address. Social Security Number, etc. from information you
      supply to lenders when applying for credit
   2. Credit Score: a score of 350-850 based on five factors—payment history (35%), amounts owed
      (30%), length of credit history (15%), new credit (10%), and types of credit in use (10%). While
      this score is part of your credit information, it does not presently appear on copies of credit
      reports you order. You must specifically request it. But potential lenders will be given this score
      when they request your report.
   3. Trade Lines: information on all known accounts, supplied by lenders. It includes types of
      accounts, dates opened, credit limit or loan amounts. Account balance, and status of accounts,
      including late payments. It also includes information about bounded checks from your checking
   4. Inquiries: a list of everyone who has requested or gotten a copy of your credit report within the
      last two years. There are two types of inquiries:
          a. “regular” or “hard”—from lenders when you apply for credit and anyone else you
              approve to access your report, e.g., prospective employers, apartment management firm
              of insurance companies
          b. “soft”—when you request your credit report to check the accuracy of information or
              when credit companies get a copy of your report to “pre-approve” you for credit through
              a mailing. Experts recommend you check your credit report every so often to make sure
              information is accurate, especially about six months before you plan to make a major
              purchase such as buying a house or car so you can correct any errors
   5. Public Records/Collections: information collected from state and county courts, collection
      agencies going after overdue debt, and other public groups. This includes bankruptcy filings.
      Foreclosures, lawsuits, wage attachments, liens, and judgments against you.
   6. Personal Statements: statements attached to your credit report at your request. This often occurs
      when you disagree with an item on the report, or if you want to provide additional information or
      explain in more detail to those reviewing the credit report.

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