Credit Card Companies- Falcons Searching for Prey
Lisa | Mar 21, 2008 | Comments 10
They got me. And there’s nothing I can do about it. I read the fine print, but not the implied fine print. It started out innocently enough. Last September I had the ability to borrow $10,000 on a credit card for a flat fee of $199, and no interest for six months. I was putting an addition on my home, and the added cash in the bank would help me sleep until the project was over.
The loan needed to be paid off by February 2008. I paid off the loan in full on January 29th (the due date was February 1st).
However, my next statement had an additional $40 charge for interest! What was the catch? I was told that because my billing cycle ran from January 15th to February 15th, I had to also pay interest for January 15th- January 31st.
I know it shouldn’t, yet the ambiguity of it all amazes me. I feel deceived, but for $40, it isn’t worth challenging the “rules”. Perhaps I should have caught it. I’m sure it must have been written somewhere in the twenty-five page lilliputian print describing the terms, mixed in with numerous other flashy pamphlets promising free trips to the Bahamas and Waikiki.
But the hard fact is, that even if I had, I probably would have gotten caught in some other way. Credit Card ads and policies run rampant with misleading marketing claims. One card promises me a 5% rebate on gasoline. but really it’s only for the month of August, and that month only. Until then, I get 0.5% points for the first $1500 per month, and 1% after that. One card promises a $50 cash rebate for signing up, but really it is for gift certificates to stores, not cash.
Not all credit cards are like this. I have one that pays 2% of whatever I spend on the card towards my mortgage every month, as promised.
But the modus operandi is User Beware. American Business Culture’s “what can I get away with” attitude is not looking out for you. The falcons are circling for unsuspecting prey. Stay low.
Have you ever been caught by one of these schemes? Would you get a credit card from this bird?
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Filed Under: Credit Cards
Linda
The Passive Dad
J. Money
Matt
Mr. GoTo
Good Blog. I will continue reading it in the future. Nice layout too.
Aaron Wakling
I posted about this very thing twice. Double check next month as well. Somehow they come up with another ambiquitous charge too.
@Sharon: I’ll check those out on your blog.
@Aaron: Thanks for the compliment- it’s been a lot of trial and error getting this new site going, but I’m starting to get the knack.
Lisa
Lisa, I agree with you, and watching for the fine lilliputian print. (I like that word). On the other hand, I had two good experiences with credit card companies this week. I use online banking. I thought I paid one of my store credit cards and my Visa card within the due date. But, I found out a couple weeks later (on my on-line banking statement) that those transactions never occured (probably a glitch in the final stage of submitting them on-line). I had a tremendous amount of late and finance fees (over $100 for late and finance fees for being 5 days late from Visa!). I called both companies and they waived all the late fees and interest because it was a first time occurence. I have to say, though, that I was amazed at how high the late fees were! Sorry to hear that you ended up with the charge for your short term loan. It’s frustrating to have missed the interest free loan by just a few days!
@Marie- I guess they do have a few redeeming qualities.
Thanks for the comments. It’s a good balance to my very angry post!
Lisa
Sorry to hear about the extra charge. As someone who it’s also happened to (a cancellation charge for a credit card?), I can relate. If you let it go another month or try to fight it, the $40 quickly turns into $87, $134, and so on, until you just break down and pay the enormous fee. A credit card that was designed to help your credit rating a little can quickly turn into a monster.
So I’ve been caught by one of the schemes. My response was to stop relying on credit for anything, and just make sure I have enough cash reserves for emergencies. Took a few months of frugal living to save up that much, but there is a much better feeling of security in a savings plan than in a credit card.
@marie- I agree, what a waste of trees.
@Paul- yes, it does seem like some debt is a good thing. It’s nice to be able to own your own home. I think strong regulation is required to keep the lenders honest, though.
@foreclosurefish- thanks for sharing your similar experience. Probably everyone has at least one story to tell.
Thanks to all for your thoughtful comments- Lisa