SavvySugar

Can not pay your credit cards?

Monique Marie — Mon, 04 Jan 2010 13:54:18 -0800

Collection Calls

This is most scary part of Credit Card Game. Credit Card Companies will constantly call you and demand their money back. Collectors may call you 5 – 7 times a day. They will call you at home, They will call you at work and they will call you on your mobile phone too. There have been some reports that collection agents have been calling bosses, co-workers, and family members (which amounts to harassment and is not legal). They go to any length to get you on phone and when they get you on phone they use a lot of psychological techniques to lure you into giving them checking account numbers and other banking information. They will use every trick to make you pay. One of the well known methods is that they intimidate and threaten you by telling you that they will take your house, car etc. Or they will bring police to your home. all this can be very stressful on some people. You will also start getting letters in the mail from them that may eventually turn more demanding.
Don’t get intimidated by them, Know your rights and report any violations to police and seek help. Most of the credit cards are unsecured so no one can take your car, house, furniture, etc. according to some websites while others say that you can get a lien on your house or your wages garnished. The best thing to do in a case like this to to talk to a lawyer and find out exactly what can happen. I have been searching different websites to find out exactly what can happen but it seems that every website is different, so if anyone knows exactly what can happen please feel free to coment. Your credit score on the other hand will be affected by you not paying your credit cards and/or being late on them. Sometimes you can find a good debt management or credit card services to help pay down your credit card bills but your credit score will still be in trouble and at times you can get scammed.

Bad Credit Score
If you go 30 days past the due date on any of your credit cards, these credit card companies normally report this to Central Credit Bureaus so these missed payments are likely show up in your credit report and this has a terrible impact on the credit score. Companies, almost all of them will increase their interest rate and future loans may either be refused or available to you at very high costs.
A Bad Credit Score is not good. Anytime you apply for a job, home loan, school loan, car loan, car insurance, They do take a look at your credit score. If you are really in very bad crunch. consider bankruptcy as an option. After some time, usually 7 years, it’s all clean and neat again but should be used as a last resort. Another bad thing about having a poor credit score is unable to rent from different apartments or trailer parks, etc. Also, if you want to get certain bills in your name such as the electric bill, most of them require a deposit which can be extremely high. When dealing with the gas company, some companies run a credit check to see if you have to pay COD or if you can get on a budget. Overall, you can be spending a lot more money then you have to if you have a bad credit score.

Excessive Interest Rate / Late Fees

Once you start missing your credit card payments, most of the credit card companies start charging “Default Rate”. That is normally highest possible interest rate, about 30%(Check the fine print on your credit card Application form or Disclosure on your Credit Card company’s web site). They also start charging late fee penalties ranging between $20-60. if your balance exceeds the credit limit, which normally does, there will also be an over-limit fee which would be charged on daily basis.
I would recommend that you contact each of your credit card companies and ask to have your credit card account closed but for the most part they will say they cannot close the account because you still owe on it. If you can get your account close this action will stop interest from accruing i.e multiplying. They will tell you that they can decrease your interest rate or they can allow you to make a very minimal monthly payment. some even offer a $3 per month payment plans but this is rarely more than a trap. You will only end up throwing money away as you will only be paying the interest payments and a debt will continue to grow. So it is in your best interest that you do it yourself as it will save you some(depending on your balance $100 to $10,000) money at the end. Ask for a final bill from your credit card company and when you receive that then just try to pay a certain amount on each bill if possible but I recommend that you put them aside and concentrate on your mortgage and other liabilities like car payments, children education.
Once you start earning more income, you can either try to pay off the balances of the closed accounts little by little. If you can arrange some extra cash at the end you can also contact each credit card company directly and make them an offer to pay a certain percentage of the balance owed i.e 20% to 50% (think about your offer before you call them). If you choose to do this, stay firm on your offer and document everything. Do not send any payment to them until they send you something in writing that they will mark the account paid in full (keep all documentation and proof of payment).
Some Credit Card companies will accept this because they feel that something is better than nothing. They might also make a counter offer but stay firm and tell them that it’s all you can afford. If they say “No” than don’t worry and say “thank you very much” and move on to the next credit card company.

Legal Action
Eventually, if a credit card debt becomes very delinquent, Credit Card companies might take legal action course which can result in liens, garnished wages or any other legal judgements requiring you to pay your debt. However, credit card companies would normally try to avoid this situation because this is a very long, complicated and expensive process. But nevertheless, legal action does happen.
Just to debunk a myth, credit card companies generally do not freeze bank accounts. They would first need to have a court judgement against you. This whole process costs them money and it is rarely done by credit card companies but they can do this to you.

With all the credit card debt out there, the best thing you can do it to get help. The best way to get help is to talk to a lawyer and find out what the law is in your state or country and do something about it. The problem is not going to go away, so you might as well realize that you are debt and be pro-active instead of ignoring it. Always remember that you are a human being and the people that are calling you from the credit card companies are just doing their job and that they do not have a personal vendetta against you even if they are being difficult and threatening you.

Do you think something should be done about credit card companies?

Monique Marie — Mon, 04 Jan 2010 13:25:48 -0800

In the news recently in my area, the topic of credit cards have been coming up quite frenquently. People are getting their houses foreclosed on and getting denied loans all in the name of credit cards. Some claim that they were just plain stupid and overused them while others said they needed them just in order to survive since they lost their jobs and can not find another one. So, the news have been asking different people around the local cities whether the government should start cracking down on credit card companies stating that there is no way people can pay these off if they get into a bind. Do you think something needs to be done about credit card compaines or do you think it is all the consumers fault?

Credit Card Fraud - 3 Scenarios

Beachwalker — Fri, 09 Jan 2009 02:53:46 -0800

SCENE 1. This is a new one.

People sure stay busy trying to cheat us, don't they?

A friend went to the local gym and placed his belongings in the locker..
After the workout and a shower, he came out, saw the locker open, and thought to himself, 'Funny, I thought I locked the locker.

Hmm, 'He dressed and just flipped the wallet to make sure all was in order.

Everything looked okay - all cards were in place.

A few weeks later his credit card bill came - a whooping bill of $14,000!

He called the credit card company and started yelling at them, saying that he did not make the transactions.

Customer care personnel verified that there was no Mistake in the system
and asked if his card had been stolen.
'No,'he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made.

An expired similar credit card from the same bank was in the wallet.

The thief broke into his locker at the gym and switched cards.

Verdict:

The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them.

How much did he have to pay for items he did not buy?

$9,000! Why were there no calls made to verify the amount swiped?

Small amounts rarely trigger a 'warning bell' with some credit card companies.

It just so happens that all the small amounts added up to big one!

SCENE 2.

A man at a local restaurant paid for his meal with his credit card.

The bill for the meal came, he signed it,and the waitress folded the receipt
and passed the credit card along.
Usually, he would just take it and place it in his wallet or pocket. Funny enough, though, he actually took a look at the card and, lo and behold, it was the expired card of another person.

He called the waitress and she looked perplexed.

She took it back, apologized, and hurried back to the counter under the watchful eye of the man.

All the waitress did while walking to the counter was wave the wrong expired card to the counter cashier, and the counter cashier immediately looked down and took out the real card.
No exchange of words --- nothing! She took it and came back to the man with an apology.

Verdict:

Make sure the credit cards in your wallet are yours.
Check the name on the card every time you sign for
something and/or the card is taken away for even a short period of time.
Many people just take back the credit card without even looking at it, 'assuming' that it has to be theirs.

FOR YOUR OWN SAKE, DEVELOP THE HABIT OF CHECKING YOUR CREDIT CARD EACH TIME IT IS RETURNED TO YOU AFTER A TRANSACTION!

SCENE 3:

Yesterday I went into a pizza restaurant to pick up an order that I had called in.

I paid by using my Visa Check Card which, of course, is linked directly to my checking account.

The young man behind the counter took my card, swiped it, then laid it on the counter as he waited for the approval, which is pretty standard procedure.
While he waited, he picked up his cell phone and started dialing.
I noticed the phone because it is the same model I have, but nothing seemed out of the ordinary. Then I heard a click that sounded like my phone sounds when I take a
picture.
He then gave me back my card but kept the phone in his hand as if he was still pressing buttons.

Meanwhile, I'm thinking: I wonder what he is taking a picture of, oblivious to what was really going on.
It then dawned on me: the only thing there was my credit card, so now I'm paying close attention to what he is doing.
He set his phone on the counter, leaving it open.

About five seconds later, I heard the chime that tells you that the picture has been saved.

Now I'm standing there struggling with the fact that this boy just took a picture of my credit card.
Yes, he played it off well, because had we not had the same kind of phone, I probably would never have known what happened.

Needless to say, I immediately canceled that card as I was
walking out of the pizza parlor.
All I am saying is, be aware of your surroundings at all times.
Whenever you are using your credit card take caution and don't be careless.

Notice who is standing near you and what they are doing when you use your card.

Be aware of phones, because many have a camera phone these days.

When you are in a restaurant and the waiter/waitress brings your card and receipt for you to sign, make sure you scratch the number off.

Some restaurants are using only the last four digits, but a lot of them are still putting the whole thing on there.

I have already been a victim of credit card fraud and,believe me, it is not fun. The truth is that they can get you even when you are careful, but don't make it easy for them.

FORWARD THIS TO AS MANY PEOPLE AS YOU CAN THINK OF. LET'S GET THE WORD OUT! JUST BE AWARE

Credit Card Company lowered my limit

lilv — Mon, 20 Apr 2009 17:05:50 -0700

So i got in the mail today a letter from my credit card company telling me that they were lowering my credit limit. I don't use this card much, don't carry a balance on it and definitely don't need a $14,000 limit but am just wondering does it affect my credit score or anything?

Just In - Credit Card Scam

Beachwalker — Sun, 23 Nov 2008 14:14:02 -0800

Something to be aware of during this busy Christmas period.

Subject: Fwd: VISA FRAUD ALERT

--------------------------------------------------------------------------------

Just a heads up for everyone regarding the latest in Visa fraud. Royal

Bank of Canada received this communication about the newest scam.

This is happening in southern Alberta right now and moving. This one is

pretty slick since they provide YOU with all the information, except the

one piece they want.. Note, the callers do not ask for your card number;

they already have it.

This information is worth reading. By understanding how the VISA &

MasterCard telephone Credit Card Scam works, you'll be better prepared

to protect yourself. One of our employees was called on Wednesday from

'VISA', and I was called on Thursday from'MasterCard'.

The scam works like this:

Person calling says, 'This is (name), and I'm calling from the Security

and Fraud Department at VISA. My Badge number is 12460 , Your card has

been flagged for an unusual purchase pattern, and I'm calling to verify.

This would be on your VISA card which was issued by (name of bank). Did

you purchase an Anti-Telemarketing Device for $497.99 from a marketing

company based in Arizona ?' When you say 'No', the caller continues

with, 'Then we will be issuing a credit to your account. This is a

company we have been watching and the charges range from $297 to $497,

just under the $500 purchase pattern that flags most cards. Before your

next statement, the credit will be sent to (gives you your address), is

that correct?'

You say 'yes'.

The caller continues - 'I will be starting a Fraud Investigation. If you

have any questions, you should call the 1- 800 number listed on

the back of your card (1-800-VISA) and ask for Security. You will need

to refer to this Control Number. The caller then gives you a 6 digit

number. 'Do you need me to read it again?'

Here's the IMPORTANT part on how the scam works:

The caller then says, 'I need to verify you are in possession of your

card'. He'll ask you to 'turn your card over and look for some

numbers'. There are 7 numbers; the first 4 are part of your card number,

the last 3 are the Security Numbers that verify you are the possessor of

the card.

These are the numbers you sometimes use to make Internet purchases to

prove you have the card. The caller will ask you to read the last 3

numbers to him. After you tell the caller the 3 numbers, he'll say,

'That is correct, I just needed to verify that the card has not been

lost or stolen, and that you still have your card. Do you have any other

questions?'

After you say no, the caller then thanks you and states, 'Don't hesitate

to call back if you do', and hangs up. You actually say very little, and

they never ask for or tell you the card number.

But after we were called on Wednesday, we called back. Within 20 minutes

to ask a question. Are we were glad we did! The REAL VISA Security

Department told us it was a scam and in the last 15 minutes a new

purchase of $497.99 was charged to our card.

We made a real fraud report and closed the VISA account. VISA is

reissuing us a new number. What the scammers want is the 3-digit PIN

number on the back of the card. Don't give it to them. Instead, tell

them you'll call VISA or Master Card directly for verification of their

conversation.

The real VISA told us that they will never ask for anything on the card

as they already know the information since they issued the card! If you

give the scammers your 3 Digit PIN Number, you think you're receiving a

credit.. However, by the time you get your statement you'll see charges

for purchases you didn't make, and by then it's almost too late and/or

more difficult to actually file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a

'Jason Richardson of MasterCard' with a Word-for-word repeat of the VISA

Scam. This time I didn't let him finish. I hung up! We filed a police

report, as instructed by VISA. The police said they are taking several

of these reports daily! They also urged us to tell everybody we know

that this scam is happening. I dealt with a similar situation this

morning, with the caller telling me that $3,097 had been charged to my

account for plane tickets to Spain , and so on through the above

routine.

It appears that this Is a very active scam, and evidently quite

successful.

Pass this on to all your family and friends

Credit-card industry may cut $2 trillion lines: analyst

Woop — Tue, 02 Dec 2008 12:41:50 -0800

Mon Dec 1, 2008 4:06pm EST

(Reuters) - The U.S. credit-card industry may pull back well over $2 trillion of lines over the next 18 months due to risk aversion and regulatory changes, leading to sharp declines in consumer spending, prominent banking analyst Meredith Whitney said.

The credit card is the second key source of consumer liquidity, the first being jobs, the Oppenheimer & Co analyst noted.

"In other words, we expect available consumer liquidity in the form of credit-card lines to decline by 45 percent."

Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz) and JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) represent over half of the estimated U.S. card outstandings as of September 30, and each company has discussed reducing card exposure or slowing growth, Whitney said.

Closing millions of accounts, cutting credit lines and raising interest rates are just some of the moves credit card issuers are using to try to inoculate themselves from a tsunami of expected consumer defaults.

A consolidated U.S. lending market that is pulling back on credit is also posing a risk to the overall consumer liquidity, Whitney said.

Mortgages and credit cards are now dominated by five players who are all pulling back liquidity, making reductions in consumer liquidity seem unavoidable, she said.

"We are now beginning to see evidence of broad-based declines in overall consumer liquidity."

"Already, we have witnessed the entire mortgage market hit a wall, and we believe it will, for the first time ever, show actual shrinkage over the next few months," she wrote.

The credit card market will be 18 months behind the mortgage market and will begin to shrink by mid-2010, Whitney said.

Whitney also expects home prices to continue falling another 20 percent hurt by lower liquidity. They are down 23 percent from their peak, she said.

"In a country that offers hundreds of cereal and soda pop choices, the banking industry has become one that offers very few choices," Whitney wrote in a note dated November 30.

She also said credit lines to consumers through home equity and credit cards had been cut back from the second-quarter levels.

"Pulling credit when job losses are increasing by over 50 percent year-over-year in most key states is a dangerous and unprecedented combination, in our view," the analyst said.

Most of the solutions to the situation involve government intervention, and all of them require more dilutive capital to existing lenders, she said.

"Accordingly, we continue to be cautious on our outlook on US banks."

(read rest of article here: http://www.reuters.com/article/topNews/idUSTRE4B01HI20081201?pageNumber=...)

Downward spiral? Scarey times.

Credit Card Question - to Cancel Cards or not

lilv — Thu, 03 Jan 2008 17:16:26 -0800

Hi Savy,
quick question. i recently bought a condo and to buy my furniture did one of those no payments no finance for furniture. Obviously am paying off quickly. I'm wondering if i then immediate should cancel the credit card? I'm not planning to use it again. I also have a store card that i never ever use. My question is I've heard conflicting advice that if you cancel the cards it lowers your credit score. Obviously at the moment am not purchasing a home but want to maintain to credit score I have.

thanks

Attention all Capital One Credit Card Holders (Past and Present!)

yiddidea — Thu, 05 Jun 2008 10:47:12 -0700

I got a surprising email yesterday which sent me into quite the fury. When I was younger and dumber I fell into the Capital One credit card trap. They will give anyone a card and then rack up charges and raise your interest rate until the card is maxed out. Eventually I was able to pay the card off and CLOSE it. I have it in writing that my account was closed a year ago. SO, I was a bit surprised to get an email from Capital One stating "Your Statement is Ready for Account # ending in ___". The account number was the same card I had cancelled a year ago. I went online and low and behold, Capital One RE-OPENED the card last month, charged me an annual membership fee, then charged me a late fee for June and added Finance Charges. So, a credit card that was closed miraculously re-opened itself and now has a balance of almost $60. WTF?!??! Needless to say, I called the "customer service" number to speak to someone, (aka...a woman in India who was just reading from her script) and was not given any reason as to why the account was re-opened. I demanded that I receive in writing and explanation from Capital One as to why the card was re-opened and proof that they have contacted the 3 credit bureaus to remove the late fee from my record. I was told that she can cancel the card (which will take 30 days and more charges may accrue during that time) and she can send me proof of cancellation. She said that there was no one else there that I could speak to and even had the gaul to tell me that she looks forward to "continuing my business with Capital One" to which I replied, "That won't be happening"!

I now have to report this to the better business bureau, the VA Attorney General and I have already started a dispute with Equifax. I found out that the EXACT same thing happened to my sister 2 weeks ago.

So, if you have closed a Capital One credit card in the past few years you may want to run a credit report to see if the account has been re-opened. Apparently, they are doing this to A LOT of people to get themselves out of a financial crisis. If this has happened to you, please report it. Unless they are investigated for this illegal activity they will keep doing it to other people.

UGH, I am so mad!!!

Brandy’s mom sues Kim Kardashian over $120,000 credit card theft

justingirl1989 — Tue, 05 Feb 2008 08:05:56 -0800

Kim Kardashian has never really done anything that’s made me say, “Wow, that girl’s good with money.” She’s done a lot of things that have made me say, “Wow, that girl’s got an ass that should be on her chest,” but that’s about it. And apparently Kim’s ass cleavage is the biggest thing she’s got going for her, because not only is the girl bad with money, but she’s criminally bad. And when you combine bad fiduciary judgment with a ridiculous love of shopping and access to someone else’s credit card, things can get out of hand. Not for a regular person, but apparently for a Kardashian. In 2004, Kim was singer Brandy’s stylist. Brandy’s mother Sonja Norwood, who is also her daughter’s manager, gave Kim her American Express card to make one purchase for Brandy. Although it remains unclear, somehow Kim kept the card and continued to make personal purchases on it - totaling over $120,000. Not only that, but she lent the card to her two sisters and brothers. They even wracked up purchases at the Kardashian family’s own stores!

R&B singer Brandy Norwood’s mother filed a lawsuit Monday against Kim Kardashian accusing her of running up more than $120,000 in credit card charges without permission.

The suit, which also names Kardashian’s siblings Khloe, Kourtney and Robert Jr., alleges they ran up the charges on the mother’s card in 2006 and 2007. It seeks the return of the money plus 10 percent interest.

Kim Kardashian denied the allegations, telling PEOPLE she and her siblings had Norwood’s permission to make the purchases.

“We have her signature on all items,” Kardashian says.

[From People]

I’m sure she does have signatures for all items. Pretty much all credit card companies require you to sign a receipt. But I’m also pretty sure those signatures aren’t really Sonja Norwood’s, or she wouldn’t be suing the Kardashians I’m assuming that Sonja Norwood didn’t keep close tabs on her credit card statements - and if the debt accrued slowly enough, I suppose it’s possible a wealthy enough person might not notice. Considering Kim hasn’t worked as Brandy’s stylist in several years, I can’t imagine any excuse she could give for using the Norwood’s credit card. It’s a little surprising that no one noticed, but I would imagine they probably figured it out a while ago and made other attempts to get their money back before going for a lawsuit.

Kim wasn’t just Brandy’s stylist - she was also Brandy’s brother Ray-J’s girlfriend. You’ll remember that the two had a very infamous sex tape that Ray-J sold (some say Kim was in on the deal too, though she denies it). Maybe Kim thought she was due an extended shopping spree on the Norwood’s dime. The Kardashians are famous due to their deceased father, O.J. Simpson lawyer Robert Kardashian. Considering their legal linerage, I’m surprised they haven’t paid up. I doubt they have a leg to stand on - and if nothing else, it makes an already tacky family look that much worse.

source: celeb*tchy.com

Credit Card Rewards for Holiday Spending

refinedharmony — Fri, 31 Oct 2008 05:44:52 -0700

When I had to choose which card I wanted for my first credit card 3 years ago, each bank was telling me all the different rewards I could get. Frequent flier miles, discounts on merchandise, etc. I went with plain and simple- cash back. On my credit card I get:

5% on company purchases
2.5% on travel and dining
1% on everything else

It doesn't seem like a lot, but it was really nice to get a free $25 check every month or so.

My ex (boyfriend at the time) had the most wonderful idea... since this money is free and you don't really need it... SAVE IT! Since January I have not redeemed one dime from my Credit Card rewards and now I have a great lump of money that I can use on Holiday shopping! This way I'm not taking any money away from my regular month budget OR my savings. Best money tip I've ever learned!