Little Guy Can Fight Back Against `Killer' Credit Card Charges
Little Guy Can Fight Back Against `Killer'
Credit Card Charges
by Robert K. Heady
Bank Rate Monitor
Ready
to bring the hammer down on credit card issuers that clobber you with killer
late-payment fees, ruin your children's credit records, then won't give
you the time of day when you try to get those outfits on the phone?
You're
not alone. Hundreds of irate readers responded to our last column about
this mounting economic scandal, citing their own nasty situations with banks
and other cards issuers. They're not sure who or where to complain to, but
this column will tell you how.
"I
feel very frustrated being the `little guy' who is run over by the system,"
writes Betty J., from Colorado. "I would love for them (the card companies)
to face a collection of `little guys.' " Her 22-year-old son, vulnerable
because he was between jobs, saw a $172 charge on his Capital One card zoom
to $500 in six months because of interest and fees.
When
Gayle W., in the same state, noticed the fees and charges the card issuer
was taking onto her 26-year-old son's credit card, she "tried in vain
for several days to talk to someonebut got nothing but a run-around and
buck passing."
Kathy
T.'s son and daughter both had on-time payments posted as being "late"
when they weren't. Advanta, she said, originally solicited their business
with "a low interest rate to switch and consolidate." And, although
the kids carried small balances and paid substantially on time, whenever
the son paid off his balances in full, Advanta told him it was lowering
his credit limit, which is now down to $500. Yet, "nothing has changed
in his credit report in years," insists his mother.
"I
think these companies are shameless and really stick it to the consumer
who pays his bills to subsidize those who don't," she maintains.
So
how come the card companies are lobbying like mad to change the laws to
make it much harder for the average Joe to file bankruptcy? Hasn't their
argument to congressmen (to whom they donate millions of dollars in PAC
money) been that deadbeats should pay more to prevent the prompt
payers from being charged higher fees?
There's
something wrong when a reader tells me they were assessed a $29 late fee
on a balance of 22 cents because the card issuer didn't apply the payment
on time.
Also
getting out of hand is the practice of card issuers snooping into your credit
report every two or three months, to check your overall credit behavior.
Ron M., in South Florida, got a copy of his credit report from Experian.
The last page said his address was "perceived as a high risk since
it is a non-residential address." Experian claimed to Ron that it obtained
that info from the U.S. Post Office. No way, said a post office public relations
buy. "We don't provide anyone with this information, and besides, you
have a residential address."
The
fact, explained Ron, is that he had been working out of his home: "Does
this mean the thousands of homeowners who have a business out of their home
are also going to be perceived as high risk?" If so, that could cause
their credit card rates to go up.
Most
folks don't have the foggiest idea how to correct those ugly trends, but
you might begin this way:
Write
a quick letter, naming the card issuer and its address, and include your
name, address and daytime phone number. Explain briefly what happened and
tell what resolution you're seeking. Send copies by regular mail or e-mail
to each of the following:
Sen.
Robert Bennett, chairman, Financial Institutions Subcommittee, 431 Dirksen
Senate Office Building, Washington, DC 20510. E-mail to senator@bennett.senate.gov.
Rep.
Marge Roukema, chairman, Financial Institutions Subcommittee, 2469 Rayburn
House Office Building, Washington, DC 20515. E-mail to roukema@mail.house.gov.
For
all credit cards: Consumer Response Center, Federal Trade Commission, 6th
and Pennsylvania Ave., Washington, DC 20580. E-mail to consumerline@ftc.gov.
If
the bank has the word "national" in its name, or "NA"
after the name, write to: Customer Assistance Group, Office of the Comptroller
of the Currency, 1301 McKinney St., Suite 3710, Houston, Texas 77010. E-mail
to customer.assistance@occ.treas.gov.
If
yours is a state-chartered bank, write to: Division of Compliance and Consumer
Affairs, Federal Deposit Insurance Corp., 550 17th St., NW, Washington,
DC 20429. E-mail to consumer@fdic.gov.
Should
you complain if you're being skewered by credit card outfits? You decide.
They've been getting away with murder, but believe it or not, the little
guy has the power to stop them.
Remember,
an election year is coming up. I'm sure all those elected and appointed
officials would love to hear your story.
Editor's Note: Robert K. Heady is the founding publisher of Bank Rate
Monitor and is the co-author of the book, "The Complete Idiot's Guide
to Managing Your Money." You can write to him in care of The Bull &
Bear or send e-mail to jrnl888@aol.com.
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