Let’s say you have a credit card with Capital One and there is an existing balance on it. Now, suppose you make a 0% balance transfer to your account. Well, you can never pay off the initial balance until the account is completely paid!

They charge you interest unless the account balance is down to $0.00 and for 1 month after that, until the account is payed off.

Be aware of this if you do a balance transfer with a Capitol One credit card. They will find a way to charge you interest. They do not care if you never do business with them again. For them, they can always find another customer.

Handling Finance Charges.

Capital one takes more days than allowed by law to post online payments. Then they charge late fees.

Don’t bother calling them since they use overseas people with a script. You just get the same canned answers over and over. They don’t say anything else. They say…

• no to everything,
• they can’t do that,
• they can’t help you, or
• that’s the policy.

They just repeat this repeatedly.

I did a 0 balance transfer for some large charges regarding hotel stays for a government move. The manager credited each of my charges to that card reducing the balance to zero, EXCEPT there is NO WAY to pay it off each month.

The balance is always more. It doesn’t matter if you pay it the day the statement is printed or you pay when on the phone with them.

Another Experience.

I completed a 0 balance transfer form. It promised 0 percent interest for the life of the transfer. On April 14th, 2009, I received a letter. It stated…

“due to a system error, the balance transfer form should have stated 5.99%. However, no attempt will be made to collect any additional finance charges that should have been assessed from past balances.”

Great move Capital one. Thanks a bunch! It’s as if I signed-up for a fixed rate mortgage at 5%. Then, months later, receive a letter stating sorry, it’s really 11.99%.

I tried to resolve this over the phone. My advice, don’t bother. They were given a chance to correct the situation. So, now it’s time to write a letter to Capital One. If that doesn’t work, my next call will be to my state’s attorney general.

0% for life.

I did a 0% balance transfer for 0%, for the life of the card.

3 months later, they tell me it was an error. Really, it should have been 5.99%. They said the only way they would honor the 0% percent is if I had the original application with the 0% for life offer on it.

Can you believe they sent me a letter with the original conditions, 0% Special Transfer for life. For 3 billing cycles, they have sent me a letter with the Transfer Special 0% offer. Let me repeat, the letter Capital One just sent me has the conditions they said were a computer error. It would seem that itself is proof of my original terms.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Debts can be secured or unsecured. Secured debts are tied to an asset, like a car for a car loan, or a house for a mortgage. If you stop payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. They include credit card debt, medical care bills, signature loans, and debts for services.

Cars.

Most auto financing contracts let a creditor repossess the car when a default occurs. No notice is required. If a car is repossessed, the balance due on the loan is owed, with towing and storage costs. If these aren’t paid, the creditor may sell the car. If a default seems likely, it may be better to sell the car and pay the debt. You avoid the costs of repossession and a negative credit report entry.

Homes.

If your mortgage is falling behind, immediately contact your lender to avoid foreclosure. Typically, lenders are willing to work with you when in good faith and they feel the situation is temporary.

Some lenders will reduce or suspend payments for a short time. Once regular payments resume, you may pay additional costs toward the past due balance. Some lenders agree to change the mortgage terms by extending repayment periods to reduce monthly debt. Find out if additional fees are assessed for these changes, and determine how much they total in the long term.

If an acceptable plan is not available, contact a housing counseling agency. Some agencies restrict counseling services to those with FHA mortgages. However, others offer free help to any homeowner with trouble making mortgage payments. Call your local office of the Department of Housing and Urban Development. Or, contact the housing authority for your state, city, or county to get help finding a reputable housing counseling agency near you.

Debt Consolidation.

Sometimes, to lower your cost of credit, you can consolidate debt with a second mortgage or home equity line of credit. Remember, these loans require your home as collateral. If you miss payments — or they are late — you could lose your home.

Consolidation loan costs can add up. Besides interest on the loans, you may have to pay “points” on the loan. Each point is one percent of the amount you borrow. Yet, these loans offer certain tax advantages unavailable with other kinds of credit.

Bankruptcy.

Generally, personal bankruptcy is considered the debt management option of last resort. The results are far-reaching and long-lasting. A bankruptcy remains on your credit report for 10 years. This can make it hard to get credit, get life insurance, buy a home, or even get a job.

It is a legal procedure offering a fresh start for those who can’t meet their debt obligations. People who follow bankruptcy rules get a discharge. This is a court order saying you don’t have to repay certain debts.

Related posts:

1. Being Responsible With Credit & Debt Be Responsible With Debt. Are paying bills getting harder? Getting...

Related posts brought to you by Yet Another Related Posts Plugin.

Are paying bills getting harder? Getting notices from creditors? Are accounts going to debt collectors? Is losing your home or car a constant worry?

Don’t feel alone. Many face financial crises at some point in their lives. Whether it is caused by personal or family illness, job loss, or simple overspending, it can seem overwhelming. Often, it can be overcome. Your financial situation doesn’t have to go from bad to worse.

If you are in financial hot water, consider…

• realistic budgeting,
• credit counseling from a reputable organization,
• debt consolidation, or
• bankruptcy.

Which works best for you? It depends on your debt level, your discipline, and your future prospects.

Do-It-Yourself.

You need to take control of your finances. First, do a realistic assessment of your income and your expenses. List income from all your sources. Next, list your “fixed” expenses. Fixed expenses are the same each month, like your mortgage payment or rent, car payment, and child care. List expenses that vary. Entertainment, recreation, and clothing are expenses that vary month to month.

Write down all your expenses. Include those that seem insignificant. This helps track your spending patterns, identify your necessary expenses, and prioritize the rest. Your goal is to have enough for the basics: housing, food, health care, education, and insurance.

The public library, bookstores, and of course, the web have information about budget and money management techniques. Software programs can help you develop and maintain a budget, balance your checkbook, create saving plans, and pay down your debt.

Contacting Creditors.

Immediately contact creditors when you have trouble making ends meet. Explain your situation and try to work out a payment plan to reduce your payments to a manageable level. Don’t wait for accounts to reach a debt collector. At that point, creditors have given up on you.

Dealing with Debt Collectors.

The Fair Debt Collection Practices Act dictates how and when debt collectors contact you. Debt collectors cannot call before 8 a.m. or after 9 p.m. They cannot call you at work if the collector knows your employer doesn’t allow calls. Collectors may not harass, lie, or use unfair practices to collect a debt. They must honor a written request from you to stop further contact.

Credit Counselors.

If you cannot create a working budget and stick to it, cannot get a repayment plan with creditors, or cannot track mounting bills, consider a credit counseling organization. Many credit counseling organizations are nonprofit. They help you solve your financial problems.

Just because an organization says “nonprofit” is no guarantee services are free, affordable, or even legitimate. For some credit counseling organizations, they charge high and/or hidden fees, or pressure you for large “voluntary” contributions which cause more debt.

Most credit counselors use local offices, the web, or telephone to offer services. If possible, get in-person counseling. Many universities, housing authorities, credit unions, military bases, and branches of the U.S. Cooperative Extension Service offer non-profit credit counseling programs. Your friends and family, financial institution, or local consumer protection agency may provide information and referrals.

Credit counseling organizations, that are reputable, can…

• advise you on money and debt management,
• help you develop a budget, and
• offer free educational materials and workshops.

They have certified and trained counselors in consumer credit, money and debt management, and budgeting. Counselors cover your entire financial situation with you. They help develop a personal plan to solve your financial problems. The first counseling session lasts about an hour, with an offer for additional sessions.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

• the credit reporting agency, and
• the information provider (person, company, or organization providing information about you to a credit reporting agency)

must correct inaccurate or incomplete information on your report. What if you see inaccurate or incomplete information on your credit report? Under the FCRA, you have the right to contact the credit reporting agency and the information provider and tell them. They have the obligation to fix any errors you identify.

Correct Your Credit Report.

Send a letter to the credit reporting agency. In it, describe what information you believe is inaccurate. Send copies (NOT originals) of documents to support your claims. Provide your complete name and address.

Write your letter to clearly identify each disputed item on your credit report. State your facts. Explain why you are disputing the information. Request that they delete or correct the information.

You can enclose a copy of your credit report with the disputed items circled. Send your letter as certified mail with return receipt requested. This lets you document what the credit reporting agency received. Keep copies of all dispute letters and enclosures.

Credit Report Investigation.

Credit reporting agencies must investigate disputed items. It usually takes 30 days, unless the dispute is considered frivolous. They must forward your relevant data, about the inaccuracy, to the organization which provided the information.

The information provider is notified of a dispute from the credit reporting agency. The information provider then investigates, does a review, and reports results to the credit reporting agency. For disputed information the information provider agrees is inaccurate, it notifies all 3 national credit reporting agencies (CRAs). This lets the CRAs correct the information in your credit file.

Investigation Completion.

After the investigation, the credit reporting agency provides the written results. You get a free copy of your credit report if the dispute causes a change. (This free report is not counted as a free report under the FACT Act.)

For changed or deleted items, the credit reporting agency cannot put the disputed information back in your credit file. Only if the information provider verifies the information is accurate and complete, can this occur. The credit reporting agency must send you written notice which has the name, address, and phone number of the information provider.

Updated Notices.

If you submit a request, the credit reporting agency must send notices of corrections to all who received your report in the past 6 months. A correct copy of your report can be sent to anyone that received a copy the past 2 years for employment purposes.

Unresolved Disputes.

Sometimes, the investigation leaves your dispute unresolved with the credit reporting agency. You can ask that a dispute statement be included in your credit file and future reports. You can ask the credit reporting agency to provide your statement to any who received a copy of your credit report in the recent past. You should expect to pay for this service.

Disputes to Creditors.

Write the creditor or information provider that you dispute an item. Include copies (NOT the originals) of documents to support your position. Many providers have an address for disputes.

A provider may have reported a disputed item to a credit reporting agency. It must include your dispute as a notice. If you are correct because the information is inaccurate, the information provider cannot report it again.

Sample Dispute Letter.

Date
Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:
I am writing to dispute the information in my credit file. These disputed items are circled on the attached copy of the credit report I received.

This item (identify item(s) disputed by source name, such as creditors or tax court, and identify the type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe the inaccuracy or incompletion and why). I request the item be deleted (or request another specific change) to correct the information.

Attached are copies of (if applicable, use this sentence and describe any documentation, like payment records, court documents) supporting my position. I hope you investigate this (these) matter(s) and (delete or correct) the disputed item(s).

Sincerely,
Your name

Enclosures: (List what you are enclosing)

Accurate AND Negative Information.

What happens if you have negative information on your credit report that is accurate? Only time assures its removal. A credit reporting agency can report most accurate negative information for 7 years. For bankruptcy information, it is 10 years.

An unpaid judgment against you can be reported for 7 years or until the statute of limitations ends, whichever is longer. For criminal convictions, there is no time limit. The method for calculating the 7-year reporting period runs from the date the event occured.

Adding Accounts to A Credit File.

Your credit file may only show SOME of your credit accounts. Most national chain stores and bank credit cards are included in your credit file, but not all. For travel, entertainment, gasoline cards, local retailers, and credit unions, they usually aren’t included.

Denied Credit.

An “insufficient credit file” or “no credit file” has caused some to be denied credit. Yet, they have accounts with creditors. This is because they don’t appear in your credit file. Ask the credit reporting agencies to add this information to future reports.

Credit reporting agencies are not required to add creditors to your credit report. However, many will add verifiable accounts for a fee. If these creditors do not generally make reports to the credit reporting agency, the added items will not be updated in your credit file.

Related posts:

1. Dealing With Collection Agencies When you are fixing your credit report and removing wrong...

Related posts brought to you by Yet Another Related Posts Plugin.

While your first round of dispute letters are processing at the credit reporting agencies you’ll want to do the following. This includes if you receive notice from a collection agency that money is due, once you’ve sent the dispute letters.

The advice that follows is ONLY for dealing with collection agencies!

Collection Agency Warning.

DO NOT accept anything the collection agency tells you over the phone! Do NOT call them to find out if they are legal/bonded/licensed! In fact, DO NOT CALL A COLLECTION AGENCY FOR ANY REASON! You need to learn yourself whether they are able to operate legally in your state or the state they are located.

State Law.

When dealing with collection agencies, you may be dealing with the laws of two states, if they are not located in your home state. Find out if your state AND the state of the collection agency require a license, a bond, none, or both.

Licenses.

Check to see if the collection agency has a valid license. Most states have online license search. Search for the state’s attorney general website and look for licensing. To find an attorney general’s website, search with the keywords “state” and attorney general. For example, for Ohio you would do a Ohio attorney general search.

If no license is found, the collection agency probably cannot legally pursue you for collection. PRINT THE PAGE SHOWING NO LICENSE!

Bonds.

Find out who bonds for your state. Contact them (it’s the Secretary of State for Texas) and find out if the bond was properly filed by the collection agency. Often, you can email them to get an answer.

If no bond has been filed, get a cerification of NO RECORD. For a small fee, they send you a certified letter that the collection agency has no bond on file. This likely makes it illegal for them to pursue collections against you.

Both.

If both a bond and a license are required, then do everything for a license and a bond. Send a letter if necessary, with ALL violations!

None.

If the state requires no licensing nor a bond, search for the attorney general for your state and the state where the collection agency is. Learn how to file a consumer complaint. File it with the state.

Remember to do these steps for your state and the state where the collection agency is located.

Getting Results.

For a collection agency that is licensed properly, find out if a regulatory or supervisory board exists for your state and the state of the collection agency. Go to the Attorney General’s website and file a complaint. List all the violations of that collection agency.

The regulatory or supervisory board investigates collection agency complaints. They have the power to punish the collection agency. Often, you get a deletion from your credit report. That will end their collection activities against you.

Be aware it takes up to 45 days for a response!

If all goes well, you will see the collection agency item removed from your credit report.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Using Your Credit History Against You.

Fee-gouging credit cards look like credit cards. They are designed for those with poor or zero credit history. They have little to do with issuing credit or building a credit history.

Poor credit credit cards are “subprime” cards. Their only purpose is to hit you with fees, excessive interest rates, and hard-to-determine balances. They look like an amazing deal or just what you needed. But, these poor credit credit cards will eat up most of your monthly payments in charges and fees. It effectively wipes out what little credit limit you have, making them virtually useless.

Some Examples.

A typical poor credit credit card advertises a credit limit of $250. However, that is reduced by a…

• $45 membership fee,
• $109 acceptance fee, and
• $6 monthly participation fee

This leaves only $90 of actual credit! If that $90 of credit is exceeded, then a $29 overlimit fee is charged!

One sailor on leave charged $80 on one of these poor credit credit cards. Supposedly, there was a $250 credit limit. Since her net available credit was only $79 after all the upfront fees, she incurred huge extra charges. Now, she is paying more than $300 for $80 in charges.

How It Usually Works.

Typically, with average credit, a credit card company earns a profit from interest income on its credit card account. Generally, poor credit credit cards do not. Instead, they make a profit from front-end fees you pay just to get the card. This is because many cardholders can’t make their payment on time or at all. Now, when the credit card company writes off the balance, it is mostly unpaid fees to itself!

One company, CompuCredit charged off over $700 million. Yet, it was able to collect enough fees and interest for $107 million in profit.

Be Careful With Poor Credit Credit Cards.

These companies exist because they can avoid state interest rate ceilings and consumer protection laws.

Basically, if you have no or poor credit, avoid these credit cards. If you need credit, get a debit card or a secured or unsecured loan from a bank. Check for a reasonable interest rate and low or no fees. Avoid telemarketers and bulk mailings with too-good-to-be-true credit cards.

Be patient. Poor credit takes time to repair and a new credit history takes time to build.

Related posts:

1. The Credit CARD ACT, Balance Transfers & Your Credit Highlights A rate increase can ONLY be applied to an...
2. Credit Cards With Poor Credit Before applying for a credit card, you should know your...
3. Poor Credit Abuses If you have poor credit or no credit history at...

Related posts brought to you by Yet Another Related Posts Plugin.

Desperate for Credit.

For many, a credit card is seen as their opportunity to enter the middle class. While, it does allow you to buy many things, it comes with obligations. You have to pay back everything you borrow with it.

Very often, repayment is the last thing on the minds of many borrowers. They just want to spend, go on shopping sprees, or indulge themselves. If you are desperate for credit, you have to ask yourself, “What do I plan to do with the credit once I get it?”

Without really understanding what you “NEED” and not what you “WANT” with credit, it is very easy to find yourself over your head. For the young and the desperate, this can lead to financial disaster. It also makes you vulnerable to very unfavorable credit terms.

Poor Credit Credit Cards.

The no credit or poor credit credit cards business is a cutthroat one. It is the equivalent of going to a pawn shop for a loan rather than a bank. Why?

Both the pawn shop and the poor credit credit card company require collateral. Both charge you exceedingly high interest rates. Both offer relatively little credit for the collateral you give them. Both cater to the desperate and to those rejected by the larger banks. Both offer you little opportunity to build a credit history.

Understand, when you use a poor credit credit card, you are not really building a credit history. Whether you are a good customer or not, there is a real chance you will hurt your ability to get credit in the future.

What Is A Poor Credit Credit Card?

Simply, there is no such thing as a no credit or poor credit credit card. By definition, a credit card is based on the lender’s reasonable expectation of the borrower’s ability to pay. If you have no credit or poor credit, there is no reasonable expectation of payment.

A no credit or poor credit credit card is a secured credit card. But, a secured credit card doesn’t really exist. If it’s secured, it’s not credit. Rather, a no credit or poor credit credit card is a DEBIT CARD!

Paying High Interest On A Checking Account.

Think about what it means when you are offered a credit card, that is really a debit card. You are being charged higher interest rates than a credit card. You get higher fees than a credit card. In exchange, they use your security and lend it back to you.

While there is a convenience to having a debit card, it is not worth paying the higher interest rates you see on “secured credit cards” in most cases. Too often, people don’t realize they are being charged interest for essentially having a checking account.

Sometimes, the poor credit credit card gives you a balance somewhat above your security. For instance, you may deposit $300. You are “given” an additional $200 in credit for a total of $500 available. While, that $200 may seem like a good deal if times are tight, you are getting a worse deal than if you got a debit card with overdraft protection.

Preying on the Consumer.

Unless you really read and understand the terms for most “secured” credit cards, it is best to just avoid them. They may have sweeteners, such as no interest for 6 months, 0 balance transfers, cash back, gifts or prizes, but understand these do not change a bad deal.

Related posts:

1. Credit Cards With Poor Credit Before applying for a credit card, you should know your...

Related posts brought to you by Yet Another Related Posts Plugin.

• A rate increase can ONLY be applied to an existing balance IF the cardholder is delinquent.

So, expect credit card companies to find new ways to declare you delinquent.

• If your credit card gets a rate increase on NEW balances, you must be notified 45 days in advance.

This puts no limit on the amount of the increase, does not require the credit card company to get your agreement to the increase, and places no restriction on the reason for the increase.

• Those under 21 can’t apply for a credit card unless they have a co-signer, income, or pass a course.

This effectively removes one of the most profitable segments from the credit card companies. To make up for these lost customers, expect higher interest rates, higher up-front fees, and more restrictive terms.

Credit CARD Act.

On May 22, 2010, the Credit Card Accountability, Responsibility and Disclosure, or Credit CARD, Act of 2009 was signed into law by President Barack Obama. This act changes how credit card companies make disclosures to their customers and ends a few of the more egregious practices prevalent in the credit card industry.

Major Changes.

Recent years have seen very arbitary, punitive, and deceptive practices engaged by many credit card issuers. Whether it was interest rates, fees, balance transfers, low introductory rates, changing payment dates and balances, or aggressive collection practices, people who were being exposed to many activities that made having a credit card quite an adventure!

To combat this, Congress decided to reign in some of these business practices. While customer complaints were mounting, that was not the motivation behind this new legislation. Rather, it was the financial distress of 2008 that motivated these restrictions on credit card activities.

Quite simply, the very groups that offered the greatest profit potential for credit card companies (the young and the working poor) could no longer afford to keep their credit cards. Those who had ample credit and means other than borrowing, were using credit offers to cut credit card companies profits to almost nothing. With this squeeze, Congress had to do something.

Protecting the Public.

To give the credit card companies and other lenders, a chance to regain their footing with borrowers, new regulations were created to provide for a more stable and sustainable credit environment. A few changes had to be made.

Retroactive rate increases are STOPPED! (not really)

Generally, under this new act, lenders can no longer raise interest rates on existing balances. However, this is not true in every case. If your contract specifically spells out that the rate can be changed, on an existing balance, you still are liable to pay the higher rate.

3 specific instances can occur to raise your rate on an existing balance, despite the Credit CARD Act.

• You have a promotional rate offer that expires, such as a balance transfer.
• You have a variable rate card that is indexed to the prime rate and it has increased.
• You are delinquent on payments for 60 days or more.

Higher Interest Due To Other Cards.

In theory, credit cards are prevented from raising interest rates for late payments on unrelated accounts under the pretense of universal default or “anytime, any reason” clauses. Then again, there is nothing preventing a credit card company from changing its contract terms to reflect their opinion of new credit realities (just an excuse to raise your rate while circumventing the Credit CARD Act).

Delinquent Payments.

If a credit card company classifies as a card holder as 60-day delinquent, the bank must restore the lower rate after six months of consecutive on-time payments. Of course, the challenge here is that the lender decides when payments are due. There is nothing to prevent them from making it very difficult to meet this standard, when it is possible to change due dates, send monthly bills late, or put holds on certain payment types (e.g. 5-10 day holds on check payments). The Credit Card ACT doesn’t addres any of these possibilities.

Generally, in the first year after issuance, interest rates cannot go higher. Promotional rates must last a minimum of six months. This does not include…

• promotional rates,
• the ending or completion of a workout plan,
• a change in the index rate used to establish an interest rate, or
• a 60-day delinquency.

In other words, the only interest rate increase the Credit CARD Act covers are those not covered in the contract. It does not prevent a credit card company from raising rates if it is covered in the contract or agreement.

In fact, as long as they claim you were given 45 days notice, lenders can raise your interest rate at any time and for any reason on any NEW balance.

Credit Limit Changes.

There are no provisions in the Credit CARD Act that limits any action by a credit card company from changing your credit lines. If your credit card company slashes your credit limit, cancels your card, or reduces your limit JUST ABOVE your existing balance, they have not obligation to notify you.

The only time a credit card company must tell you when a credit limit has changed, is if it triggers a penalty. For example, if a credit card reduces your credit line below your existing balance AND that triggers and overlimit fee, you must be notified first.

Always remember, no credit act, credit right, or credit protection places any limit on the maximum amoung you can be charged in interest. For instance, an increased rate could triple your existing APR. You have no recourse under the law.

Fee restrictions.

While this is the Credit CARD Act, this particular change applies to debit cards as well. Cardholders, whether debit or credit, are no longer subject to overlimit fees without their approval. Card issuers are allowed 1 overlimit fee per billing cycle.

Paying to Pay?

Banks can no longer charge you when paying a credit card debt. This practice occured with telephone or Internet payments. The only fee that can be charged is to expedite a payment. So, expect to see telephone and internet payments recategorized as express payment options, while regular payments experience constant busy signals or wait times and very confusing or burdensome website payment systems.

Due Date.

Payments received on the due date (or the next business day) if the bank doesn’t process a mailed payment on the due date do not trigger a late fee. If paying at a local branch, the payment must be credited the same day.

This does not end the practice of changing billing cycles or sending billing statements late. You are still liable for fees in both cases. You have no protection if your billing cycle was 23 days this month, rather than the usual 30. It is entirely your responsibility.

Low and No Credit Cards.

The Credit CARD Act does not eliminate “fee-harvester” subprime cards. It does change the way the fees are charged. After issuance, in the first year , nonpenalty fees cannot be more than 25 percent of the initial credit limit. Of course, this does not address the limit on fees if the credit limit is reduced. In that case, you still have to pay the fees, despite exceeding 25 percent in that circumstance.

Restricting Credit Access to the Young.

For those under 21, without an independent source of income or a co-signer 21 or older, won’t get a credit card.

Ultimately, this may only push them to payday lenders and pawnshops.

Double-cycle billing.

The outrageous practice of double-cycle billing is basing finance charges on the current and previous balance. Essentially, an issuer could charge double on the same borrowed amount.

This was ended because it gave an incredible advantage to lenders who depended on the poor, young, and desperate for loans. More established creditors with higher standards could not compete for these customers, leaving them out of this profitable market.

The Credit CARD Act is inteneded to end this practice and restore more balance among the credit card issuers.

Fairer payment allocation.

A close look at your card agreement will likely reveal a clause that explains that payments will be applied to lower-rate balances first. Not so anymore. The Credit CARD Act requires above-the-minimum payments to be applied first to the credit card balance with the highest interest rate.
7. More time to pay
Card companies must send statements 21 days before a payment is due. Current law requires a mere 14 days’ notice. This provision goes into effect Aug. 20, 2009.
8. Gift card protections
The legislation includes protections for gift cardholders. The new law prohibits gift cards from expiring for at least five years. Issuer cannot assess inactivity fees unless the card has gone unused for 12 months.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Late last year, I told First Premier Bank to cancel my credit card with their company. There was an outstanding balance, so paid half at that time. They told me they had set up payments, for three months, to retire the remaining balance.

Later, I was informed by several representatives that, by no fault of mine, there was a typographical error on the company’s part. The number for my cheking account (which had been used many times to pay my bill) was missing a number. Either that, or a number was added which my bank did not recognize as being mine or my wife’s. On that basis, they refused the payment.

A month later, we checked our online banking. We noticed no payment from that account for the payment plan we had previously set-up.

The Computer Did It.

That week, we called the company. They informed me that due to a computer error, the account was not paid. But, it was their error! The account number used was missing a digit ( 8, not 9 numbers). Again, I set up three months of payments (that is the most the company can do at one time). 2 weeks later, a payment came out of my account.

It appears one payment, originally scheduled for 2 months before, had put in the wrong account number, again! Another Premier Bank representative said that due to the “automatic system” they use, it canceled the remaining payments. These are payments set up after WE discovered no payment was taken out of our account. The computer did not see nor recognize we had called and re-setup the payment since the initial payments had not come out of our account!

Again, we set up 3 scheduled payments. Now, I have 3 different “out” confirmation numbers and 3 different “in” confirmation numbers! Of course, this did absolutely nothing to correct the problem. They continued to add finance charges to an account closed in December!

Playing Games.

After all this, we recieved a statement in the mail This is on a supposedly closed account! To add insult to injury, the balance had doubled!

I immediately called the company. They repeated their line about a computer error. They said the computer automatically used the erroneous bank account number. Therefore, it cancelled the scheduled payments that had been setup… not ONCE BUT THREE CONSECUTIVE TIMES!

A Slap in the Face.

With all this done, I was very surprised to get a settlement statement form First Premier Bank. They were offering me a settlement for more than my original debt!

Another phone call and the representative looks over the account. He could not explain what had happened. He said the reason our account had more than doubled was due to “over the limit fees” and “bank overdraft fees.”

Premier Bank was reporting me to the credit reporting bureaus as 30 and 60 days late for months. They apologized. Yet, they said there was nothing they could do. And, they would give nothing in writing stating it was their error!

What Can You Do?

None of this was my fault. I have been contacting them for months and months. They have never contacted me to offer help nor assistance. They have left me a victim of their automatic system errors and then charged me for them!

At this point, I would gladly pay the account in full if they could give me an accurate figure, without penalties. It only needs to show the payments they did process.

No one should ever do business with this operation.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Suppose you are reported to chexsystems. You apply for a bank account which uses telecheck or credit reports to verify your application information. If you are deemed a credit risk, they may deny you a bank account!

Some banks use a credit report ONLY for identification purposes. Others use it to look at your credit score and credit lines.

Chexsystems does not decide whether you get a bank account. That is 100% the decision of the bank.

The Appeal of ChexSystems.

The vast majority of banks use chexsystems. Many banks offer 2nd-chance checking (under various names) for those reported to chexsystems. For those banks that do not offer 2nd-chance checking, they may make an exception and allow you to open an account, anyway. Many banks make exceptions today.

The problem with 2nd-chence checking and the exceptions they make is no formal guidelines exist to determine if a person gets a bank account.

Let’s say…

BANK A
———-

CUSTOMER 1

• CHEXSYSTEMS REPORT IS PAID AND NO DEBT
• CHEXSYSTEMS REPORT INDICATES NO SUFFICIENT FUNDS (NSF)
• CHEXSYSTEMS REPORT SHOWS 2 BANKS REPORTED

*** CUSTOMER IS DENIED***

CUSTOMER 2

• CHEXSYSTEMS REPORT IS PAID AND SHOWS NO DEBT
• CHEXSYSTEMS REPORT INDICATES ACCOUNT ABUSE
• CHEXSYSTEMS REPORT SHOWS 1 REPORTING BANK

*** CUSTOMER IS DENIED***

CUMSTOMER 3

• CHEXSYSTEMS REPORT SHOWS CUSTOMER HAS NO DEBT INFO AVAILABLE
• CHEXSYSTEMS REPORT SHOWS NO SUFFICIENT FUNDS (NSF)
• CHEXSYSTEMS REPORT SHOWS 1 BANK REPORTING

*** CUSTOMER IS APPROVED ***

CUSTOMER4

• CHEXSYSTEMS REPORT SHOWS SMALL BALANCE OF 50.00 OWED
• CHEXSYSTEMS REPORT SHOWS NOT SUFFICIENT FUNDS (NSF)
• CHEXSYSTEMS REPORT SHOWS 1 BANK REPORTING

**CUSTOMER IS APPROVED ***

—————————————-

BANK B

CUMSTOMER1

• CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES 1200.00
• CHEXSYSTEMS REPORT SHOWS NSF
• CHEXSYSTEMS REPORT SHOWS 1 REPORTING BANK

***CUMSTOMER IS APPROVED***

CUSTOMER2

• CHEXSYSTEMS REPORT SHOWS CUSTOMER HAS NO DEBT INFO AVAILABLE
• CHEXSYSTEMS REPORT SHOWS SUSPECTED FRAUD
• CHEXSYSTEMS REPORT SHOWS 1 REPORTING BANK

*** CUSTOMER IS DENIED***

CUMSTOMER3

• CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES 20.00
• CHEXSYSTEMS REPORT SHOWS FRAUD
• CHEXSYSTEMS REPORT SHOWS 1 REPORTING BANK

***CUMSTOMER IS DENIED***

————————————————–

BANK C

CUMSTOMER1

• CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES 400.00
• CHEXSYSTEMS REPORT SHOWS NSF
• CHEXSYSTEMS REPORT SHOWS ONE REPORTING BANK
• CHEXSYSTEMS REPORT IS 3 YEARS OLD

*** CUSMTOMER IS APPROVED ***

CUSTOMER2

• CHEXSYSTEMS REPORT SHOWS CUSTOMER OWES NO DEBT
• CHEXSYSTEMS REPORT SHOWS NSF
• CHEXSYSTEMS REPORT SHOWS ONE REPORTING BANK
• CHEXSYSTEMS REPORT IS ONLY 1 YEAR OLD

*** CUSTOMER IS DENIED****

Basically, it really depends on each bank. Most will not have a set guideline, if you contact them about making exceptions. As I said earlier, chexsystems does not determine if a cumstomer is denied or approved. It is only a tool the bank uses for account decisions.

Exceptions.

Some have told me they were denied at one bank branch but approved at another. Each manager and each bank makes exceptions on their own terms and will make them differently when you have been reported to chexsystems.

Know what is in your chexsystems report. It is very important because it could affect your ability to open a bank account. Just because a bank may make an exception for you may not work if your chexsystems reports is considered a “toxic” one.

Items Used In 2nd Chance Banking.

How old is the report?
How many banks have reported you?
Does your report show debt owed, no debt owed, or no debt information reported?
Does your report indicate insufficient funds (NSF), account abuse, suspected fraud, or fraud?

These factors affect whether you get approved for a bank account.

Cautions.

Be careful when applying for an account at banks that you are certain will not open an account. Your chexsystems account could be flagged. This would ruin your chances to get an account at a bank that may have given you one, otherwise.

Recommendation.

Personally, never use banks that rely on chexsystems. If policy changes regarding the bank’s use of chexsystems, your account may be closed. A bank is sold and new policies are made, the account is closed. Managers come and go, and accounts is closed. Over the years, there have been horror stories of people being hurt when their bank account, in good standing, was frozen and closed.

This is not to say chexsystems is all bad. Some prefer it for convenience and others just prefer the big banks. This is why I suggest having a backup account. Never have all your deposits in one place.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.