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Good choice for #1 Ben
Good choice for #1 Ben
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@Black Bellamy: If it isn't criminal, it ought to be. People are getting boned because one of their monthly payments for something completely unrelated happened to arrive ten minutes after the cutoff and was therefore a day late. It's not good business practice; it's a flimsy excuse to rip you off.
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This is a great article, Ben. Very useful!
Although, you forgot:
1) Win State Governorship.
2) Use card to funnel charges that, in retrospect, your better half would probably not find endearing.
3) Wait as a highly politicized FBI reviews your statements then announces press conference.
4) Resign as the castigation of Wall Street insiders - whose fraudulent antics you stopped years ago - bemoan your \"integrity\".
5) Single-handedly redefine going rate for call-girl services upward by several thousand dollars!
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Some of the scams I've personally experienced
Activation Scam
The 'security measure' of requiring you to activate your newly mailed card is a lie. The cards are shipped fully activated, making fradulent charges simply and easy. Hey, just check people's mailboxes and go shopping!
Termination Scam
You cancel your card but charges are still accepted and processed. If you've cancelled your card to reject a rate increase, suprise, the rate increase now applies.
Credit Limit Scam
Most credit card companies claim to be unable to reject purchases that would exceed your credit limit. Poor helpless companies. They can track your limit and charge you fees within seconds, but the mysteries of using computers to block overlimit transactions is beyond their grasp - even when requested by customers.
Mystery Merchant Scam
Get a charge you don't recognize on your card? Want simple information, such as the merchant's name and / or phone number? You'll have to file a dispute in writing. So even though you don't neccesarily dispute the charge, you are forced to. Then amazingly the credit card companies can figure out who they handed your money to, the same information they claim to not have when you make a simple phone call.
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6) \"Credit card companies.\" Charge you exorbitant, compounding, arbitrary fees and charges for the dubious so-called \"service\" of allowing you to spend your own money before you are even 100% sure you are going to get it.
Thought I closed that bold tag, please fix?
And what about both binding arbitration and the \"we can change any terms at any time for any reason\" clause that is part of virtually all CC agreements?
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Yeah I understand you don't like it, and no one likes it, but a scam involves deception and illegal activity, so why is #1 neither?
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@joshthephenom: I don't think it was a joke at all. I took it to be quite serious, and quite true. It's just not illegal.
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@SkokieGuy: Just got ''policy update'' from my Citi and now they charge 25$, when you go over limit.
Funny how my Visa just declines purchases, if over limit. And charges nothing.
It's just a way to make more money.
@speedwell: '' before you are even 100% sure you are going to get it.''
It your responsibility to budget. Unless something exceptional happens, as long as you don't spend more than you afford, you win. Price protection, cash backs and chargebacks are worth getting a credit card.
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Why all the angst towards credit card companies? Get a good rewards program. Pay your statement on time and in full, and rake in free money. Who doesn't like free money?
I've had a couple of disputes on my credit card... removed no problem. Good luck getting your debit card dispute removed. (Like your bank really gives a shit.)
@Victo: How are you supposed to budget future money? At best it is speculative. I do budget, and I do understand it is speculative, and I don't spend money I haven't got yet.
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@speedwell: You know what you get paid every month and when the bill is due and what your finance charges are, if you don't pay the card in full each month.
Spend accordingly.
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why don't people look at their credit card bills? i'm all the time checking them, wondering how i spent all that money in one month (gasoline seems to be a big factor these days), and if i can't remember a charge, i get all worked up until i figure out where it came from.
@Scuba Steve: I never go over the limit. However, if one company can cap the limit, any company can do it. So over limit fees are simply another way to milk customers.
Especially in cases, where is there fraud. Not only you'll be stuck with the dispute, you'll have to ask to reverse all ''fees''. The fraudster can rack up thousand of dollars more than your limit. And nothing guarantees that the credit card will reverse its own charges.
By the way, there was a story like this on Consumerist.
@Mike8813: Paying on time is a great thing. However, what do you do when credit card constantly changes your billing date? And the add ''fees'' + interest for ''delayed'' payment? More and more different credit cards seems to play with the billing cycle.
I usually get my statements one week before ''payment due''. If you're paying by check, then you're screwed. It takes about 5 days to ''process'' payment and 2-3 days to get it there by mail.
If I wouldn't use electronic banking, I would already had ''fees'' for ''late'' payment.
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To people who notice their statements arrive in the mail very shortly before they're due:
Enroll in Online Account Services and check your statements!
They're ready a day or two after the billing cycle ends, and it gives you additional time to prepare to send in a payment.
Manytimes, you can pay electronically, or print out a payment slip to use with snail mail.
Problem solved.
(Except if the due date is pretty close to a payday, and their payment cycles mess with that schedule.)
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Please don't hate me for saying this, but I love the Consumerist and so I must: \"ATM machines\" is redundant. \"ATM\" stands for \"automated teller machine.\" (And just for the record, \"PIN\" stands for \"personal identification number,\" so saying \"PIN number\" is also needless.)
Sorry, I just had to get that off my chest.
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How about the biggest scams in American history:
#1 Federal Reserve System: All money put into the economy comes with interest attached.
#2 Abolishment of the Gold Standard: Your money is only worth something because the government says so.
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How can shaving possibly work? You need a name and expiration date too right?
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1. \"Universal Default\"
If you fall behind your payments with a completely different lender or service provider, your credit card company gets to raise your interest rates to the default rate, usually around 20%. Since this scam is written into your contract, it's completely legal.
The fact that it is in written in the contract does not make it automatically legal. If I put a clause (in fine print or otherwise) in a real estate contract that says you have to give me your children in exchange for the house, that clause would be found illegal if it were brought to court. The example I give is reasonably unambiguous: persons are not property that can be sold. Doing so is illegal. Hence the clause cannot be enforced. That's basic contractual law.
Sometimes you can have clauses which are not as clearly unenforcible. To my eyes, Universal Default is such a case. The legality of such clause becomes clear only when it is examined by the court but until it is examined opinions about the legality of the clause are just conjecture. If someone knows of an official judicial opinion regarding Universal Default, I'd like to know about it.
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I caught three charges on my son's visa and had to impersonate him in order to find out more info, then I had to dispute the charges in writing. All very nice, as I know he is not responsible for fraudulent charges. However, I did some research on the compnay that put them there, one \"identy protect\" out of Las Vegas. Many many people had the same thng done to them and, like my son, had to have the card cancelled and a new one issued. The funny thing is that when I asked the visa people what they would do to the compnay, they said \"nothing\". thus, visa doesn't care as they just take it off your bill and charge it back to the fraudulent company, who just keeps doing it to more people with no change of anyone doing anything to them. the only people screwed are the ones who do not check their statements. And, the ones who do check and have to go thru the hassle of written disputes, new cards, etc. The whole thing is a game. with the customer in the middle
For those bitching about overlimit fees, some credit cards allow you to go over the limit and charge you overlimit fees because customers call in bitching about
1. being in a circumstance where they had to use the card. For example, out of town and needed gas, food, etc.
2. being in a situation where being declined for exceeding your limit would be embarrassing. For example, a businessman taking clients out to dinner, etc. (You'd be surprised at how many times I've been chewed out for this one.)
Also you aren't automatically charged an overlimit fee, just if it is over the limit at the time your bill cycles.
If you don't want charged then don't go over the limit. Responsible credit card users are usually no where near their limit anyway.
@jlayman920: if that's the case, they'd make it a nominal fee, not more that most sensible people pay in interest in a year.
It's much more likely that your points are repurposed CitiBank rationales for, well, raping their customers.
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@nikalseyn: Um, yeah, you're not the customer. If you son is mature enough to have a Visa, why are you illegally impersonating him? Also, it's nice that you know he didn't make the charges (see above point re: you're NOT THE CARDHOLDER), but Visa doesn't know zip until they look into it a bit. Let's not jump on the pity party train needlessly.
@SkokieGuy: Great list. The \"mystery merchant\" problem usually takes them a month to track down (and reams of paperwork), but the rest are dead on.
My least favorite scam is also completely legal: Your credit card company allows you to make purchases on your card at one interest rate and then after you've purchased the item raises your interest rate. So the terms of the transaction that you thought applied are now different.
I don't think shaving is really that much of a concern compared to the others. Too easy to be caught by any but the most oblivious counter workers and the other options are so much quicker, easier, and more efficient. It's been on the news lately but isn't really that wide spread.
@theblackdog: Yeah, there's a shocking level of conversation on Consumerist that doesn't involve ass-f*cking.
First couple of times I got confused and used my Wonkette voice here, and was (admittedly, politely) asked to refrain from such - err - graphic hyperbole.
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@Trai_Dep:
I had the same problem when I switched over here from Gawker. Basically every post I made was \"Hey, f*ck you too, buddy! :)\"
Not that's it's much different now.
What about the scam where merchants try to force you to show ID to complete a purchase?
so it all adds up to the banks being responsible for the current recession and looming posibility of depression. you can only rape the american people for so long. surprised your not charged a fee for getting scammed. most peoples priority is to pay on the card to avoid fees. suddenly no money for movies(piracy?!?) cars homes shopping and all these other markets that noticed thing slowing down but the banks are still getting theirs!
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What is Universal Default doing on this list of criminal acts?
Similarly, I don't like high APRs but it's not a scam.