Frontline on credit cards

I was in the middle of watching it until some guy called me up and interrupted my viewing experience... :rofl

Thanks for the link, Dave. I enjoyed watching it. Frontline is a great program.

Cheers,

-Andrew
 
Good program, Dave, thanks for posting. Just watched it. It will be interesting to see what new, creative ways banks and credit card companies come up with to, as one interviewee said, 'show how much smarter they are than the regulators' by technically complying with the new laws, but skirting around them with new programs that consumers still fall for.
 
Well, I would think the three of you knew most of this. Glad you enjoyed it.

Hopefully, some folks that didn't know how all of this words will also benefit.

Best,

Dave
 
Dave Siciliano said:
Well, I would think the three of you knew most of this. Glad you enjoyed it.

Hopefully, some folks that didn't know how all of this words will also benefit.

Best,

Dave
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Yeah, did know most of this. What was new to me was the new laws provide no caps on interest rates that can be charged, nor any protection on debit card fees, so banks are shifting their fee structures to debit cards. Oh, and credit card companies using the 8-month period between when the Law was signed and when it goes into effect to retroactively raise people's rates--while they still can--on preexisting balances, with no reason/provocation on the consumer's part.

Consumers need to be careful about those new debit card tricks. One I heard about is a rewards program... that in the small print has a $50 annual maintenance fee. On that program, you'd have to spend $300,000 annually on your card to break even. Gotcha.
 
Dave Siciliano said:
Well, I would think the three of you knew most of this. Glad you enjoyed it.

Hopefully, some folks that didn't know how all of this words will also benefit.

Best,

Dave
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I was most interested by the various people interviewed -- the magic of Frontline, and its ilk, are giving context to knowledge. Most interesting were the two lobbyists and the payday lender CEO.

Cheers,

-Andrew
 
astanley said:
I was most interested by the various people interviewed -- the magic of Frontline, and its ilk, are giving context to knowledge. Most interesting were the two lobbyists and the payday lender CEO.

Cheers,

-Andrew
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I was appreciative of the fact that Frontline posted the full transcript of the extended interviews with these folks--I read two or three of them, and it was VERY cool to see the stuff that didn't make it into the final cut, and to see that the comments weren't taken out of context. Kudos to Frontline, for that.
 
astanley said:
I was most interested by the various people interviewed -- the magic of Frontline, and its ilk, are giving context to knowledge. Most interesting were the two lobbyists and the payday lender CEO.

Cheers,

-Andrew
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Yea, weren't the lobbyists real straight talkers :eek:. I don't know how they said what they did without choking. Course, when you lay on your back for fees all day, I guess that's how it goes.

Best,

Dave
 
Dave Siciliano said:
Yea, weren't the lobbyists real straight talkers :eek:. I don't know how they said what they did without choking. Course, when you lay on your back for fees all day, I guess that's how it goes.

Best,

Dave
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The outright hostility of the credit card association lobbyist was the most enlightening. The banking industry guy came across in the way I expect a "typical" lobbyist to come across.

Cheers,

-Andrew
 
I consider myself fairly well educated about the "tricks" that credit card companies play. But today, I learned, through personal experience, of yet another one.

You all probably know, as do I, that if you take a cash advance on a credit card, it is subjected to a higher interest rate. You probably also know, as do I, that payments you send in are applied to your purchases balance (at a lower interest rate, usually); none of the payment you send in reduces your cash advance principal balance until the purchases balance is paid down in full.

Here's what I didn't know, but discovered today while giving a closed account we're paying off a good eyeball.

The portion of the bill subject to cash advance charges was $1300 or so. This surprised me--we NEVER take cash advances on our cards, based on the knowledge from the points mentioned above.

I called the bank to find out when we ever took a $1300 cash advance.

Turns out, we never did. However, in July 2004 we did open the card, at a zero-percent rate for 12 months on all balance transfers, and we transferred a $420 balance to this card and closed the other. Using the card for a business we were running, and not paying off the balance in full each month, we didn't pay off the balance transfer during the promo period. "It" became classified as a "cash advance" subject to the higher interest rate.

Here's the part that surprised me... no, shocked me! The INTEREST on that amount doesn't get paid off with my monthly payments, either, but has ACCRUED DAILY and been ADDED ONTO the "cash advance" balance, changing the original $420 transfer into a $1300 cash advance balance, still subject to the higher rate (every day).

I've just reprioritized which of my debts get paid off out of next month's bonus.

Posting this here as a consumer education tip. I was caught off guard by the growth of the cash advance amount (I never took "cash" from an ATM with this card) via the accrual of the higher-rate interest on that amount... it happened slowly, month by month, and though an avid watcher of statements and tracker of balances / rates, I missed it on this card.
 
That's disgusting, Troy. I simply don't understand why we continue to get sucked into these games.

I got hit with the moving due date stunt recently. My payments were always due on the 20thish and they started moving them up a day or two a month until they got me. I wasn't paying attention one month and logged in on the 17th to pay off my balance when I noticed that they had tagged me with a $39 late fee and had instantly jacked my interest rate to 29.99%. I called and they lowered my rate back down. I paid the $39 as a stupid tax.

I don't carry debt, but I do keep a card around for internet purchases on sites that I don't fully trust (I don't like tying those to my debit account) and for restaurants (I don't like sending my debit card off to the back room with the waiter/waitress). I know all of their tricks and I hate them with a passion and they still got me. If they can get me with this stuff, I feel so sorry for the average American.

I simply don't understand how the average person (that gets WAY more abused that I do) continues to put up with this stuff. It's criminal.
 
FlyNE said:
That's disgusting, Troy. I simply don't understand why we continue to get sucked into these games.

I got hit with the moving due date stunt recently. My payments were always due on the 20thish and they started moving them up a day or two a month until they got me. I wasn't paying attention one month and logged in on the 17th to pay off my balance when I noticed that they had tagged me with a $39 late fee and had instantly jacked my interest rate to 29.99%. I called and they lowered my rate back down. I paid the $39 as a stupid tax.

I don't carry debt, but I do keep a card around for internet purchases on sites that I don't fully trust (I don't like tying those to my debit account) and for restaurants (I don't like sending my debit card off to the back room with the waiter/waitress). I know all of their tricks and I hate them with a passion and they still got me. If they can get me with this stuff, I feel so sorry for the average American.

I simply don't understand how the average person (that gets WAY more abused that I do) continues to put up with this stuff. It's criminal.
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I set up autopay to pay the card off when due each month.

Credit is a wonderful thing, but it is indeed a dangerous tool for the unwary or unwise.
 
flyersfan31 said:
I set up autopay to pay the card off when due each month.

Credit is a wonderful thing, but it is indeed a dangerous tool for the unwary or unwise.
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Agreed. Presently, it is extremely unwise to revolve any debt on credit cards.
 
Greebo said:
Do you think that's wise?
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I've seen numbers from the big banks showing card charge off rates of 10-13+%. I wouldn't put it past them to "accidently" zap someone's checking or savings account...


Trapper John
 
Trapper John said:
I've seen numbers from the big banks showing card charge off rates of 10-13+%. I wouldn't put it past them to "accidently" zap someone's checking or savings account...


Trapper John
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It happens frequently. Not necessarily with people who are current - but a lot of people who are in collections will agree to let the collectors withdraw from their bank directly, and the collectors will promise to pull X, and then pull much much more than that.

Then there's my friend who had his bank set to autopay the credit card company - then got hit with late fees cause the CC company changed the due date on him, so his automatic payment was always late.
 
Greebo said:
It happens frequently. Not necessarily with people who are current - but a lot of people who are in collections will agree to let the collectors withdraw from their bank directly, and the collectors will promise to pull X, and then pull much much more than that.

Then there's my friend who had his bank set to autopay the credit card company - then got hit with late fees cause the CC company changed the due date on him, so his automatic payment was always late.
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Best to swing the bow of the boat around, if you're going to use automatic payments. That is, let the company pull the amount on the due date, versus you pushing it from your bank, or your bank automatically sending it. At least then, if the amount or due date changes, it will still get pulled on the correct date, and the vendor can't point fingers at the bank (or you) as the source of the payment error.

If you're worried about them pulling too much, that's easy: a second checking account for bill pay. Have your payroll deposited in your primary account, with a secondary split deposit (or bank auto transfer) to your bill pay account. Never have more in your bill pay checking account than you want vendors to be able to touch.
 
Greebo said:
It happens frequently. Not necessarily with people who are current - but a lot of people who are in collections will agree to let the collectors withdraw from their bank directly, and the collectors will promise to pull X, and then pull much much more than that.

Then there's my friend who had his bank set to autopay the credit card company - then got hit with late fees cause the CC company changed the due date on him, so his automatic payment was always late.
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I use a billpay system where the CC company notifies billpay of the amount and due date, and then billpay initiates a transfer to the cc company. I can specify a maximum amount and whether I want to be notified or approve the transaction before it takes place.
 
gprellwitz said:
I use a billpay system where the CC company notifies billpay of the amount and due date, and then billpay initiates a transfer to the cc company. I can specify a maximum amount and whether I want to be notified or approve the transaction before it takes place.
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That works! :yesnod:
 
I just check my online statement regularly and when the due date hits, pay it off each month.
 
I pay bills the day I get them - no worries about due dates - and no worries about bills piling up. You could say that I could collect interest while waiting for the due date, but that basic spending/bill money is in a no interest account anyway.
 
flyersfan31 said:
I don't worry about it.
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We have a series of bank accounts, one of which is used for "pulling" and other exposed transactions.

One takes supply in, one sends payments out, the other is for things that require a higher form of sanitation (like PayPal).

Cheers,

-Andrew
 
There just have to be better cards folks. USAA doesn't do that. I know those cards aren't available to all, but try a credit union of more competitive issuer.
Who do you believe is paying for all the national advertising most of these folks are doing?

Best,

Dave
 
Dave's right; my two best cards (and the two I'll be keeping) are both with credit unions; one BECU, the other USAA.
 
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