Reader Aaron writes in to complain about a “scam” that he can’t believe is legal. Many of you know about this little marketing tactic, and we’ve written about it before, but some of you probably do not.
Here’s how it works. Someone sends you a check. You think, “Hot Damn, I have a check.” You cash the check. You do not notice that the check says, “by cashing this check you agree to enroll in some sort of program that costs hundreds of dollars a year.”
You lose hundreds of dollars a year.
It’s a fairly common, but misleading bit of marketing. We hate it. Here’s Aaron’s letter:
I don’t know if you guys have already reported on this but I couldn’t find anything searching the archives and this just infuriated me.
So I have a chase credit card I use as my backup card. I got a standard looking rebate check mail from them the other day. (The one where you rip off the sides and there is a check inside) Inside was a check for $9.25. I found this weird because I hadn’t had any transactions with them for some time. I went looking for the catch and had to find it in very very small print under the amount. Apparently, by cashing this check I was signing up for some program called Just for Me. After mining deep into the writing on the back I found out that by “signing up for Just For Me” I was agreeing to a 59.99 semiannual charge for account membership. Also on the back the largest writing says 2% Back on Your Credit Card Purchases … almost implying that this is the reason the check was cut. There’s lots of other junk in this offer as well but the thing that struck me was how authentic this check looked and how easy it would be for someone to cash this thinking it was a rebate check.
I’m canceling my account today, but I wanted to let you guys know about this scam. It baffles my mind that this is legal.
Anyway, enjoy!
Thanks,
Aaron
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@ClayS: A contract requires the consent of both parties. They would not have the opportunity to review and accept your changes.
“Didn’t you wonder why you were getting checks for doing absolutely nothing?”
“I figured because the democrats were in power again.”
I shred these things as soon as I get them. I never cash them and I never care to.
I think this is the same offer I received and what makes it even worse is the terms of the “Membership” that is supposed to give you 2% cash back on purchases. If you read the fine print, you have to SEND them your receipts in order to get the cash back. How many people are going to do that? Can you imagine mailing all of your credit card receipts to a shady outfit such as this? It’s pretty bad when a huge institution such as Chase has to sink to such a low all in the name of making a few more bucks.
@t-r0y: It needs to be very small and in a typeface which at least seems to match the check typeface at a quick glance. If you hand write it, they’re sure to notice. I would do something more repetitive, what they are.
“By accepting this check, you are enrolling in the Payback Program. The Payback Program has a monthly fee of [twice the amount on the check]. To cancel this program, please contact me at the home phone listed on my account.”
I would suggest only doing this with banks which have tried the same on you, because then you can show their check in court and at least get some sort of settlement from them.
And don’t forget to make a photocopy of the check before you send it.
@Belch: Wouldn’t it be the Republicans? =)
And with these checks, I never open them, because they always look the same with the tear off sides.
You can call Chase and opt-out from any third-party marketing and even convenience checks, over-the-phone solicitations (such as when you call them about your account), etc. It will only take a minute or two and it would save your shredder some work.
@smitty1123: I’ve also done these before and cancel. But I only bother if it’s $20+ dollars. I see no problem with these. You should always know why you’re getting a check.