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How To Stop Credit Card Company Abuse
By: Frank Liz
Consumer complaints about credit card abuse continues to increase despite
clearly defined federal regulations meant to stop abuse. By knowing and
understanding your rights, you can stop abuse. Let’s examine four common methods
of credit card company abuse and what you can do to stop the victimizing.
1. My creditor is charging me for items I did not purchase. Examine your bill
every month to make sure that what you are being charged is what you ordered. If
there is something listed that does not belong to you, notify the credit card
company in writing about the disputed item. Federal law requires you do this
within sixty days of receiving your bill. You must do this in writing as your
rights will not be protected if you call in your complaint. Credit card
companies have two billing cycles or 90 days to correct the problem.
2. My creditor regularly charges me late fees. You know that you always mail
your credit payments in on time, but you just got hit with a late fee. If you
are a customer in good standing, write a complaint to the credit card company
and tell them you want the charge reversed. If this was a one time occurrence,
your creditor will likely reverse the charge promptly. If you regularly get hit
with late fees, make sure your payment is always mailed in well in advance of
the date that it is due. Shady credit card companies will move up the day that
your payment is due without your being aware of it. Always open your bill
immediately and plan on making payments as soon as possible.
3. I was late with a mortgage payment and now my credit card company is raising
their rates. Yes, as unbelievable as it sounds, some credit card companies have
a provision in their contract that lists a Universal default charge. What this
means is this: if you are late paying back a separate creditor, your credit card
company can raise their rates. In other words, you have now become less
creditworthy in their eyes and your rate has doubled or tripled! The only way to
combat this problem is to pay off your credit cards in full every month.
4. I am paying for credit insurance. What is that for? Supposedly, credit
insurance helps out in the event you are disabled or lose your job. If you
signed up for this plan a fee equivalent to your outstanding balance is charged
every month. At 1% the amount of insurance you can be charged for $5000 debt is
$50 for one month. Oh, by the way, read the fine print to learn how difficult it
is to actually collect this insurance!
To overcome abuse, you must take charge of the situation and respond in the
proper manner. Good credit card companies correct their errors while abusers
continue this practice. In the end, it may be time for you to sever your
relationship with them.
About the Author:
Frank Liz; (c)2005; All Rights Reserved. Frank Liz is the founder and president
of
http://www.AmericanNoDebt.com. His goal is to help people preserve and
control what they have and what they make in the future, but of course it is his
nature since he was born in poverty to teach people to make money.
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