| Consumer complaints about credit card abuse | | | | without your being aware of it. Always open your bill |
| continues to increase despite clearly defined federal | | | | immediately and plan on making payments as soon as |
| regulations meant to stop abuse. By knowing and | | | | possible. |
| understanding your rights, you can stop abuse. Let's | | | | 3. I was late with a mortgage payment and now my |
| examine four common methods of credit card | | | | credit card company is raising their rates. Yes, as |
| company abuse and what you can do to stop the | | | | unbelievable as it sounds, some credit card companies |
| victimizing. | | | | have a provision in their contract that lists a Universal |
| 1. My creditor is charging me for items I did not | | | | default charge. What this means is this: if you are late |
| purchase. Examine your bill every month to make | | | | paying back a separate creditor, your credit card |
| sure that what you are being charged is what you | | | | company can raise their rates. In other words, you |
| ordered. If there is something listed that does not | | | | have now become less creditworthy in their eyes |
| belong to you, notify the credit card company in | | | | and your rate has doubled or tripled! The only way to |
| writing about the disputed item. Federal law requires | | | | combat this problem is to pay off your credit cards in |
| you do this within sixty days of receiving your bill. | | | | full every month. |
| You must do this in writing as your rights will not be | | | | 4. I am paying for credit insurance. What is that for? |
| protected if you call in your complaint. Credit card | | | | Supposedly, credit insurance helps out in the event |
| companies have two billing cycles or 90 days to | | | | you are disabled or lose your job. If you signed up |
| correct the problem. | | | | for this plan a fee equivalent to your outstanding |
| 2. My creditor regularly charges me late fees. You | | | | balance is charged every month. At 1% the amount |
| know that you always mail your credit payments in | | | | of insurance you can be charged for $5000 debt is |
| on time, but you just got hit with a late fee. If you | | | | $50 for one month. Oh, by the way, read the fine |
| are a customer in good standing, write a complaint to | | | | print to learn how difficult it is to actually collect this |
| the credit card company and tell them you want the | | | | insurance! |
| charge reversed. If this was a one time occurrence, | | | | To overcome abuse, you must take charge of the |
| your creditor will likely reverse the charge promptly. | | | | situation and respond in the proper manner. Good |
| If you regularly get hit with late fees, make sure | | | | credit card companies correct their errors while |
| your payment is always mailed in well in advance of | | | | abusers continue this practice. In the end, it may be |
| the date that it is due. Shady credit card companies | | | | time for you to sever your relationship with them. |
| will move up the day that your payment is due | | | | |