In this type of economy we live in we have to be vigilant about scams. Everyone wants to get your cash. When dealing with debt collectors or a collection agency, before making any payment or payment arrangement, make sure you get it in writing. Don't fall into the time pressure they put on you with claims that if you don't pay by the end of the phone call they will sue you. The legal process is a long process and doesn't happen overnight. One more day to get it in writing and to call them back to make sure the people you are dealing with are legitimate is worth the wait. Once you send them the cash, it will be almost impossible to get it back.
CLEVELAND - Ohio consumers are getting phone calls from someone claiming to be a debt collector. But, is the caller legit?
"Fast talking foreigner and he said I was delinquent and we're going to take legal action," Tim Swancer remembered.
Swancer is a college student working full time, and figured a payment from an online payday loan slipped through the cracks. He had no reason to doubt the debt collector, so he paid it off.
"He knew who it was from. He knew how much. He knew the last four digits of my social security number. He knew my birthday and place of employment," Swancer explained.
Under the law, Swancer has the right to request documentation of the debt before making any payment. Swancer didn't exercise that right.
After he paid, he looked through his paperwork for proof of debt. Swancer didn't find anything. The debt also didn't appear on his credit report.
"Two days later, I got a letter from CashNet USA saying we value you as a customer," Swancer said. The letter offered a promotional rate if he took out another loan.
The timing didn't add up for Swancer, so he called CashNet USA.
"They knew exactly what was going on. They knew there were fraudulent phone calls," Swancer said.
CashNet USA warns consumers about these phony calls on its website and says the calls are not being made by anyone affiliated with the company.
The parent company of CashNet USA did not return our repeated calls for comment. According to the company's website, customers of Payday Advance, Cashland, Cash America, and SuperPawn are also getting calls. Some people who never did business with these companies are getting calls.
The Illinois Attorney General also issued a warning for bogus debt collectors using a variety of names beside CashNet USA including: Morgan & Associates, Federal Bureau of Investigators, DNR Recovery, DNI Recovery, Legal Accounts Association, Department of Law and Enforcement, America Legal Services, Quick Cash, and ACS.
Swancer just wonders why he never got a letter warning him about this problem.
"I'm afraid someone might have my information," Swancer said.
Swancer is lucky. His bank refunded the debit card payment.
CashNet USA refers consumers to the Federal Trade Commission, but that agency won't say if it's investigating.
Welcome to Basic Credit Card Stuff. This site provides tips and techniques for consumers in order to help understand credit cards based on my own experiences. If you have questions not covered in Basic Credit Card Stuff, please feel free to post a question in the comment section and I will email you in confidence.
Showing posts with label security. Show all posts
Showing posts with label security. Show all posts
Wednesday, December 8, 2010
Thursday, March 25, 2010
If your spouse dies, then do you have to pay the credit card?
My understanding of credit cards regardless of whether you live in a community property state or not is that only the primary cardholder is responsible if it is a individual account. Even if that cardholder authorizes others to use the card, only the primary person is responsible. If the primary card holder passes away, then the authorized cardholders are not held responsible for the debt.
This is different from a joint account where both users were approved jointly as co-applicants. In that case, both are held responsible for the debt even if one of them passes away.
Check out this HSBC recent story in the Chicago Tribune:
For most of his adult life, Elmer Duncan was a loyal Carson Pirie Scott customer.
By his wife's estimation, he first opened an account with the Chicago department store in the mid-1950s. Ruby Duncan said it was her husband's preferred place to shop, and he always paid his bills on time.
When he died July 17, Elmer Duncan left a $2,361.04 balance on his Carson Pirie Scott credit card, which is administered by HSBCbank.
Since her name was never on the account, Ruby Duncan sent HSBC a copy of her husband's death certificate and assumed the debt would go away.
Instead, HSBC sent a new bill — with her name on it.
"It's never been my account. I never signed any papers that said it was my account," she said. "I thought it was very distasteful."
In November, HSBC sent the account to collections in Ruby Duncan's name. Fed up, Duncan quit trying to contact HSBC and began ignoring their calls.
"I'm still grieving for my husband," she said. "We were married 38 years. That's a long time. I didn't need all the aggravation that I got from them."
After realizing the problem would not go away, Duncan wrote What's Your Problem? in late January.
"I pay my bills, and my credit is good," she said. "They tried to mess up my credit, and that's what really made me angry. Your credit is part of your life. As old as I am, I still want my credit to be good."
Duncan said that if the debt was hers, she would pay it. But the credit card in question was strictly her husband's.
The Problem Partner, Kristin Samuelson, contacted HSBC spokeswoman Kate Durham, who reviewed Duncan's concerns.
Two days later, HSBC decided to erase the $2,361.04 debt and correct Duncan's credit record.
Durham said she could not discuss the specifics of Duncan's case, citing privacy concerns. But she said the company's goal is to ensure "all of our customers receive a positive card experience with each and every interaction."
"Since learning more about this particular situation, we have since resolved the matter in Ms. Duncan's favor," Durham said.
Duncan said HSBC sent her a letter telling her it had erased the charges and would inform the credit bureaus within 90 days.
"I'm happy that they decided to do that, but I felt they really kind of messed me over because they kept trying to send letters," she said. "They tried to mess up my credit. They knew they weren't supposed to do that."
By his wife's estimation, he first opened an account with the Chicago department store in the mid-1950s. Ruby Duncan said it was her husband's preferred place to shop, and he always paid his bills on time.
When he died July 17, Elmer Duncan left a $2,361.04 balance on his Carson Pirie Scott credit card, which is administered by HSBCbank.
Since her name was never on the account, Ruby Duncan sent HSBC a copy of her husband's death certificate and assumed the debt would go away.
Instead, HSBC sent a new bill — with her name on it.
"It's never been my account. I never signed any papers that said it was my account," she said. "I thought it was very distasteful."
In November, HSBC sent the account to collections in Ruby Duncan's name. Fed up, Duncan quit trying to contact HSBC and began ignoring their calls.
"I'm still grieving for my husband," she said. "We were married 38 years. That's a long time. I didn't need all the aggravation that I got from them."
After realizing the problem would not go away, Duncan wrote What's Your Problem? in late January.
"I pay my bills, and my credit is good," she said. "They tried to mess up my credit, and that's what really made me angry. Your credit is part of your life. As old as I am, I still want my credit to be good."
Duncan said that if the debt was hers, she would pay it. But the credit card in question was strictly her husband's.
The Problem Partner, Kristin Samuelson, contacted HSBC spokeswoman Kate Durham, who reviewed Duncan's concerns.
Two days later, HSBC decided to erase the $2,361.04 debt and correct Duncan's credit record.
Durham said she could not discuss the specifics of Duncan's case, citing privacy concerns. But she said the company's goal is to ensure "all of our customers receive a positive card experience with each and every interaction."
"Since learning more about this particular situation, we have since resolved the matter in Ms. Duncan's favor," Durham said.
Duncan said HSBC sent her a letter telling her it had erased the charges and would inform the credit bureaus within 90 days.
"I'm happy that they decided to do that, but I felt they really kind of messed me over because they kept trying to send letters," she said. "They tried to mess up my credit. They knew they weren't supposed to do that."
Labels:
basic credit card,
charge offs,
default,
security,
write offs
Friday, February 12, 2010
Visa now has No Signature Required transactions
I think this new rule makes it convenient to both merchants and credit card customers, but I can see more issues that arise from this action. I think there is the possibility of more fraud and more charge backs.
I know it is just for the $25 transaction, but think about how many transactions are made below that amount. On top of that, there are many transactions done online that are risk to be disputed.
I was surprised to not have to sign a receipt at the store recently, but felt like the process is less secure.
Under the new expanded program, for domestic transactions $25 and less, retailers can accept U.S.-issued Visa cards for purchases without requiring a cardholder signature; this program has the potential to increase speed at the point of sale and enhance customer satisfaction.
"Visa's No Signature Required program has been enormously popular with Visa cardholders and merchants in busy retail environments like quick service restaurants and coffee shops," said Bill Sheedy, president, the Americas, Visa Inc. "Innovation comes in many forms and enabling Visa cardholders to swipe their card and go at most U.S. retailers is a small, but significant advance in the ongoing migration to digital currency."
According to a Visa Inc. survey, 69 percent of participants surveyed cited either convenience or speed as the primary reason for using their credit or debit card. Visa consumer research also found that payment options influence a consumer's decision to visit a business and acceptance of payment cards has the potential to lead to stronger customer satisfaction and retention for retailers.
With the changes announced today, approximately 98 percent of all U.S. merchant category codes in the Visa system will be covered by the No Signature Required program.
Currently 26 merchant categories are eligible for No Signature Required in the U.S. They include: auto parking lots and garages; bakeries; book stores; bus lines; candy, nut and confectionary stores; car washes; dairy stores; drug stores and pharmacies; dry cleaners; fast food restaurants; laundries; local commuter transport; miscellaneous food stores; motion picture theaters; news dealers and newsstands; quick copy services; restaurants; service stations; taxicabs and limousines; tolls and bridges and video rental stores.
Offering the No Signature Required program will allow hundreds of thousands more U.S. retailers, including traditionally cash-heavy merchants such as discount stores, to enjoy greater benefit from card acceptance on low dollar transactions. These benefits include the potential for faster payment, increased sales and operating efficiencies they don't get from cash and checks.
Friday, November 28, 2008
Basic Credit Card Reasons for Decline
OK, you are at the mall with your credit cards in hand this Black Friday and ready to charge some great deals after shopping for a few hours. You patiently waited for 15 to 30 minutes in line, but when the cashier rings up your sale, she says the card has been declined. Good thing you had a back up credit card with you and some cash to make sure you were covered.
In the back of your mind you must be wondering, why didn't the charge go through. The card is paid up to date and I have plenty of available credit. There is no basic credit card reason of this account to be declined. You make a mental note to yourself to call the credit card issuer when you get home.
Before you call, there are basic credit card reasons for your purchase to be declined. Some may be for security reasons, if you don't make that many purchases on that particular card. That has happened to me recently, but I usually get a call from my credit card company asking to confirm if I just made a few purchases at so and so places. The credit card companies have security features that flag your account when there is unusual activity or excessive activity on your credit cards. They do this for your protection, but most importantly their protection. The credit card company would prefer to decline your purchase and restrict your account, than to take a loss from fraudulent credit card purchases. That makes sense. Of course, this will also get you to call them if you are the legitimate person authorized to charge on the credit card.
Another basic credit card reason to get declined is if your payment is late or was just late in the last billing cycle. Credit card companies have programs that will flag your accounts if you miss making a payment in the billing cycle before your due date. You will know you are late if you check your statements because there will be a monster late charge and possibly over the limit charge added on. Ouch!
There is also the dreaded decrease in credit limit reason which will cause your account to decline because the credit card company has reduced your credit to the balance you owe on it. Like I said I am blogging about my personal experiences and this one bites. Especially if you haven't been late on any of your payments. Here is my personal blog about that. I hate when that happens. There are many reasons why the credit card company may have lowered your limit recently, but that is a blog post in itself.
Now the worst reason to have your credit card declined is because the credit card company has canceled your account. You should have been notified by mail or email, but may have overlooked it. Again, the reasons of why they would have canceled your accounts is another post in itself, too.
There are many basic reasons why your credit card company would decline your purchase like the reasons listed above. It could be as simple as you taking an expired credit card with you or a newly issued credit card that you have forgot to activate. Of course, the best way to find out the reason your credit card was declined specifically is to call the credit card company's customer service (unfortunately you will have to wait awhile because their call volume this time of the year is through the roof).
In the back of your mind you must be wondering, why didn't the charge go through. The card is paid up to date and I have plenty of available credit. There is no basic credit card reason of this account to be declined. You make a mental note to yourself to call the credit card issuer when you get home.
Before you call, there are basic credit card reasons for your purchase to be declined. Some may be for security reasons, if you don't make that many purchases on that particular card. That has happened to me recently, but I usually get a call from my credit card company asking to confirm if I just made a few purchases at so and so places. The credit card companies have security features that flag your account when there is unusual activity or excessive activity on your credit cards. They do this for your protection, but most importantly their protection. The credit card company would prefer to decline your purchase and restrict your account, than to take a loss from fraudulent credit card purchases. That makes sense. Of course, this will also get you to call them if you are the legitimate person authorized to charge on the credit card.
Another basic credit card reason to get declined is if your payment is late or was just late in the last billing cycle. Credit card companies have programs that will flag your accounts if you miss making a payment in the billing cycle before your due date. You will know you are late if you check your statements because there will be a monster late charge and possibly over the limit charge added on. Ouch!
There is also the dreaded decrease in credit limit reason which will cause your account to decline because the credit card company has reduced your credit to the balance you owe on it. Like I said I am blogging about my personal experiences and this one bites. Especially if you haven't been late on any of your payments. Here is my personal blog about that. I hate when that happens. There are many reasons why the credit card company may have lowered your limit recently, but that is a blog post in itself.
Now the worst reason to have your credit card declined is because the credit card company has canceled your account. You should have been notified by mail or email, but may have overlooked it. Again, the reasons of why they would have canceled your accounts is another post in itself, too.
There are many basic reasons why your credit card company would decline your purchase like the reasons listed above. It could be as simple as you taking an expired credit card with you or a newly issued credit card that you have forgot to activate. Of course, the best way to find out the reason your credit card was declined specifically is to call the credit card company's customer service (unfortunately you will have to wait awhile because their call volume this time of the year is through the roof).
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