USURY

[Redneck in training]

Cardholders that always pay off the card balance every month are the ones that the card companies do not make any money on. Ken Sweet

I charge in average about 10K (mostly business expenses) a month on credit card and pay it full every month. I was short 100 bucks one time and payed that one day late. They charged my credit card 300$ in interest. When I called and asked to wave it they called me a deadbeat because I don't carry balance. After that they stranded me in foreign country several times with blocked card and didn't want it unblock even after I called and spent probably couple hundred buck in mobile phone charges.
I figured if they charge the merchant 3.5% they make 350$ every month on my charges.

 

[ultrarunner]

I charge in average about 10K (mostly business expenses) a month on credit card and pay it full every month. I was short 100 bucks one time and payed that one day late. They charged my credit card 300$ in interest. When I called and asked to wave it they called me a deadbeat because I don't carry balance. After that they stranded me in foreign country several times with blocked card and didn't want it unblock even after I called and spent probably couple hundred buck in mobile phone charges.
I figured if they charge the merchant 3.5% they make 350$ every month on my charges.

Forgot about that one... Mom was overseas one year and they blocked her card... lucky for her she was with friends and they helped her out. The Credit Card Company with a calling card told her she needs to let them know in advance... they had her airline ticket charge... but live and learn.

The next year, she called two weeks before she left and and the same thing happened... she was left without the use of her card for the rooms she had put a deposit on... she had a back-up card and used it.

When she returned, she was a little bit more than upset... she had done everything asked and told the company to close her account... they put on two managers and offered her a credit and and some kind of voucher... she flatly told them NO... there was no way she would ever be in that situation again.

She was never late... payed high fees for cash advances and used her card a lot... probably why they wanted to keep her...

I put her on my card so if there is ever a problem... either of us can deal with it.

 

[chopped]

Can I add telephone bill pirates to this mix without hijacking the thread too far? This month my wife noticed a $14.95 addition to our landline telephone bill for "voice mail services." We don't use voice mail, so she called our provider, CenturyLink. They said they could block additional charges, but this was a 3rd-party company and my wife would have to cancel the service with them. When she contacted the company, they tried to say my wife should cancel through CenturyLink, but she didn't let them get away with that. They finally agreed to cancel the "service" and credit on our account to reimburse the charges. My wife called CenturyLink back and they said she would have to pay the bill and be credited with the amount on a later bill. Also, even though this bill is just due, they said that the next bill might contain the charges also. So essentially, this practice "robs" us of $15 to $30 for two months because some pirate company decided to levy a fee on our bill, probably hoping we would not notice. What a crock! I'm betting we will not only see additional charges, but we'll probably be back on the phone with these folks and maybe threaten them with notifying the PUC in our state. I hope not, but I'm sure there are lots of folks out there with the same thing happening, so check your phone bills folks.:thumbsup:

I went through this similiar thing years ago.The govt allows third party billing.At first the phone company told me they werent allowed to disclose the third party companies address:confused2: I told them they could tell me now or in court. Finally they gave me it. I made several calls to them with no results,I called the phone company and told them to block and further charges from thsi company and they "couldnt."I told them the company was a fraud and that they would also be a part of the fraud investigation. then they did as I requested.
Another poster her is right alot of people dont look at their bills and thats what these scam companies depend on..:confused2:

 

[chopped]

Hadnt considered this .. your right. I am amazed that they allow low charges. Like buying a candybar at wal mart.seems the expense of transaction wuld be more than the candybar lol

 

[JDgreen227]

Cardholders that always pay off the card balance every month are the ones that the card companies do not make any money on. Ken Sweet

I know they don't make any money on cardholders like me, but the point is, my credit score should be better than those who carry a balance and pay interest. They figure it backwards, IMO.

 

[kenstrac]

For many years I had a Visa card always paid complete balance every month processing center was in IL.never had a problem.
Then they changed their processing center to Atlanta GA.that's when the problems started,I would send out payment 10 days before due date.
Several mos. later I got a late payment charge and interest charge I called them up and told them that the payment was made 10 days before it was due they removed the charge and told me to send it out sooner OK so I mail it out 12 days before due date.
Again 2mos go by and the same thing again they removed the charges and told me to mail it out earlier so I mail the payment 14 days before due date.
And yet again 2 mos another late charge called them up they said it was my problem and they would not take the charges off I talked to a supervisor and got no where and they were just plain nasty,I told them I would pay the balance and the charges and they could stick the card where the sun never shined.
Fast forward about 1 1/2 years later I get a letter from a legal firm for a class action suit against Visa for not processing payments in a timely matter it stated that Visa was holding back posting to accounts up to 10 days,I never did send the paperwork back to the attorneys figuring that the postage stamp would cost me more than I would get back from the lawsuit

 

[JDgreen227]

Ken,

That's not entirely true. The credit card companies do not make interest on our balances, but as you know they make 3% on our charges. I remind them of that when I call to have charges removed. Actually, we are referred to as "deadbeats" in the credit card industry because we don't carry a balance.

I hope you have a good 2011, Ken.

Chris

I'm a "deadbeat" huh...there goes my credit score for Twenty-eleven...

But have a safe and happy New Years Eve, you all !!!!

 

[tallyho8]

I know they don't make any money on cardholders like me, but the point is, my credit score should be better than those who carry a balance and pay interest. They figure it backwards, IMO.

First you have to understand what a "credit score" is. It is not what you think.

It is not a figure to determine how credit-worthy you are or how you are financially able to pay off loans.

It is a figure that reflects how much money the credit card companies can make off of you in high interest and other fees. The more money they make off of you gives you a higher credit score because you are a more valuable customer for credit card companies.

Us "deadbeats" who can afford to pay off our cards each month with no interest charges do not generate large incomes for the companies each month, hence the lower credit score rating.

A good credit score rating is the same to a bank as a platinum casino card is to a casino. It simply shows that you make THEM a lot of money.

 

[tallyho8]

Also, remember that the new consumer credit card protection laws only benefit individuals.

The credit card companies are now busy pushing "business credit cards" that are available to just about anyone. These cards do NOT have to comply with the new consumer protection laws and can have amazingly high fees and charges while offering rebates as a come-on.

I use these new business cards and get about $50 a month in rebates with no fees but I am extremely careful not to incur any additional fees.

I know the merchants don't like these cards because it makes them incur additional fees but I'll be darned if I pay the merchants cash just so that they can make more money and me have less.

The banks will always get their share of the money you spend using a credit card, it's just that some cards charge the merchant more and some charge the consumer more. Since the amount spent on these cards is divided about 50/50 the merchant comes out about even in the deal but naturally he would prefer for all consumers to use the card that charges him the least and cost you the most.

 

[dmccarty]

After I dumped the CC from Chase I got a VISA from REI. You have to be a member of REI but I already was so it was a who cares. Heck I think it only costs $20-30 to be a lifetime member so who cares. The card gives 1% back on all purchases. I put almost everything on the CC to get that 1% back. I get the cash back in the spring and it really adds up. I have looked at other CC's that give better percentages but they have too much small print for me to mess with. I guess it might be worth while but they seem to be playing reward point games instead of simple cash.

Chase just sent me a new CC form. Lots of reward points. I do not think I will be using them. :laughing:

We are members of a Credit Union but our loans are from a big bank. Go figure. We get better service at the big bank than we have at the CU. The CU would not give us a loan for our land and were a PITA for a construction loan. The big bank was much easier to deal with. We had a disaster closing with the big bank but it was the loan officer fault not the bank. In fact the way the bank dealt with the mess was a huge plus. We have dealt with many loan officers, from several different branches in different cities from this big bank and the service, with the one exception, has been excellent. Go Figure.

The good thing is that we do have a choice. If one bank or CC is performing poorly there is another one on the corner.

What stinks is when you are stuck with a service provider and cannot change. We had billing issues with the kids Dr. The billing person was an idiot. I got to the point that I would pay NO bill by mail. Everything was paid in person and a receipt given. When we moved they did not send us a few bills that was no more than $50-75. One was for $3. We had been getting some bills but a few were missed by them. They sent us to collection for a $3 bill. We were spending thousands of dollars with them during that time period so you would think they would notice some bills go paid while a few did not. The twit sent the bills to collection. Not sure what made me more angry , the twit at the Dr's officer or the collection thugs.

I would have stopped going to the Dr's practice but the DR's were too competent. We have had some real hacks that almost killed one kid so when we found a competent DR we were sticking with them regardless of billing issues. We are still at that practice and once they got rid of one person the billing issues went away.

Later,
Dan