Travelers can now receive up to $400 if they are involuntarily bumped and rebooked on another flight within two hours after their original domestic flight time and within four hours for international. They are eligible for up to $800 in cash if they are not rerouted by then. The final amount depends on the length of the flight and the price paid for the ticket.

Even stricter rules apply in Europe, where compensation ranges from 125 euros (about $185) to 600 euros (about $888), depending on the length of the flight and the amount of time the passenger will be delayed.

Compensation must be paid immediately in cash, or with a voucher if the passenger accepts it, and the airline must offer a choice of a refund, a return flight to their departure city or an alternative flight. Volunteers also receive compensation, which they negotiate with the airline.

Passengers are learning, however, that if an airline does not get enough volunteers at a lower figure, they might be able to bid up the offer, and also obtain sweeteners that include vouchers for meals, hotels, transportation and even plane tickets.

Baiting the bump is a proud tradition for many thrifty travelers. If negotiating provides a cathartic prelude to vacation, read our guide for getting bumped.

If your trip can't wait for vouchers and cash, we also have a handy guide for holding onto your seat.

As Overbooked Flights Rise, So Do Payoffs for Those Who Are Bumped [The New York Times]
(Photo: Getty)

"If they thought I was a cranky old biddy, they should just have given me my money and let me go," Christina told the Star-Tribune. "I paid in good faith, and I wanted my money back. That's all. It's the principle."

"They can put you in jail for this," she says a cop told her. "Well, I've got nothing else to do today," she replied. "Besides, I may meet a better class of people in jail."

The store wouldn't budge. Christina wouldn't bend. A stretcher was brought in.

Christina was strapped to it, and taken by ambulance to North Memorial Medical Center. Her physical and mental health was supposed to be evaluated.

Attention shoppers: You won't take a gift certificate? You must be nuts.

"They thought I was loony or something," Christina says, her voice still incredulous. "That's the real crazy thing. I just wanted my money."

In the emergency room, they looked her over and sent her home that day. She seemed to be an elderly lady who was upset. From Christina's account, she also seemed to have a good reason.

Target's Fransen says store employees were concerned for her health.

"It's not anything she did," he said. "Team members were concerned about her well-being and her safety, and wanted to make sure she wasn't endangering herself."

Perhaps, so. But this could be one case where three $10 bills would have done a lot more — and done it more cheaply — than an ambulance ride to a hospital.

Christina Brown wants an apology, she wants her money (including getting her medical bills from the unexpected hospital trip paid), and she wants this: "I want the staff trained in how to treat customers."

Christina won't get to help train them. Target signed a trespassing order against her, meaning she will be arrested if she returns to the Plymouth SuperTarget.

That, friends, won't be a problem.

"I wouldn't go back to that store if everything in it was free," she says. "If they're waiting to see me again, they're waiting for a cold day in hell."

'Cranky' lady tangled with 'Mr. Nasty’ [Star-Tribune]
(Photo: spinadelic )

From WAVY:

"It started going [hiss] everywhere and it started smelling."

Red dye sprayed everywhere.

"In the car and in my eyes and on my nose and I was coughing like crazy."
...
"They didn't say sorry or anything."

The customer was taken to a local hospital to have her eyes treated and she's doing fine now. As for Bank of America, they told WAVY:

"Our personnel were very accommodating and very apologetic when Mrs. Cheikh came back into the bank. We will make sure her costs will be covered with respect to getting her car cleaned."

Mrs. Cheikh says she'll be switching banks.

Dye pack explodes on Bank of America customer [WAVY](Thanks, David!)

The credit unions' products vary, but generally they are loans of $300 to $1,000 with an annual percentage rate of up to 18 percent. Unlike payday loans, in which borrowers sign over part of their next paycheck for the cash advance, the credit unions' new products have longer terms, from thirty days to a year.

Vann, 43 and a former clerical worker who is pursuing a career in TV production, got a $500 six-month loan from the Treasury's credit union in January, at a 16 percent annual percentage rate. The money cleared her payday debt and put her on her feet. Now she has a checking account with the credit union.

"Credit unions were created to offer credit to people with modest means," said Leslie Parrish, a senior researcher at the Center for Responsible Lending. "So, historically, it's very much in keeping with their mission."

It's like stamping out weeds and watching adorable kittens grow in their place.

Credit Unions Slowly Fill Void As Payday Lenders Leave D.C. [The Washington Post]
PREVIOUSLY: Payday Loans Die In DC
RELATED: How To Find And Join A Credit Union
(Photo: Dr. Hemmert)

In two comments to the original post, reader Varro reports that a normal CSR confirmed that Bank of America treats parking meter payments as a cash advance, but when a city employee contacted Bank of America's government relations rep, the rep dismissed the cash advance charge as an "error." Below are the two comments:

A response to my e-mail to B of A:
Thank you for your inquiry dated 6/29/08 regarding (your card). We are happy to assist you. You may access cash with your credit card up to the credit line; however please keep in mind of your transaction fee associated along with each cash transaction.

Bank of America will now convert charges from parking meters, court fines, and parking tickets into a cash charge. The transaction fee for each cash transaction is three percent with a minimum of $10.00 and no maximum cap.

We appreciate the opportunity to assist you online. Should you have any further inquiries, please e-mail us again. Thank you for choosing Bank of America. We value your business and look forward to serving your banking needs.

Varro asked a reporter friend to check it out further:

But here's what happened when Ms. Ruiz talked to a City of Portland employee who then contacted B of A...:

(B of A Rep) said that there was an issue early this year whereby some municipalities were encoding parking meter transactions incorrectly. The issue was identified and corrected by May 5.

Bank of America does not charge a cash advance transaction fee to use parking meters. Parking meter payments are treated as purchases. There is no associated fee for this transaction.

Below is the actual statement she said that their Government Banking Merchant Group sent her regarding the payment of parking tickets:

"Bank of America does not consider payments of parking tickets as cash advance fees. There was a coding error for a brief period in April and we worked with the District of Columbia to correct it and credited any fees back to our customers."

As far as we know, there was no such problem in Portland.

What's the real story here, Bank of America? Was this a snafu or was it intentional?

(Photo: mbeldyk and dM.nyc™)

For the unfamiliar, multispace meters, also called "Pay and Display" machines, are a central machine where drivers can purchase time on a particular space or print out a ticket to display on their dashboards; most machines accept bills and credit/debit cards, allowing drivers without quarters to purchase parking. Obviously, a $10 service charge negates this convenience.
Gary writes:

I recently used my bank of America credit card to pay for a multi-space parking meter in Washington DC. The type electronic meter common in urban areas for parking on the street and which accepts credit card payments. The charge for parking was $2. Bank of America treats this charge as a cash advance. They charged me a $10 cash advance fee on top. So now I will be thinking twice before using any bank of America cards. A transaction that should cost $2 can come out costing $12. Also, my card currently has a 0% promotional APR on purchases, but they put the $2 parking purchase in a separate category subject to a much higher interest rate.

Gary sent us a follow-up the next day:

I spoke to their CSR twice and I never really got an adequate explanation. I am attaching a copy of the email explanation they sent me. From what I understood, they now treat payments to government entities as quasi-cash transactions. During my last conversation the CSR explained that parking meters and payments of fines would now be treated as quasi-cash transactions subject to a minimum fee of $10. I think this is something new that they recently introduced and I have requested an updated version of my terms of service to get a better understanding of these fees.

(Photo: dM.nyc™)

1. Daily Latte
A fancy coffee shop cup of coffee could cost 100 times a home brewed cup.
Brew your own and you could save $25 a week, or $1,300 a year.

2. Cable TV
If you can live without premium channels you could save about $25-$30 a month, or $300-$360 a year. If you are hard-core you can drop cable altogether and save $55-$65 a month, or $660-$780 a year.

3. Manicure/Pedicure
We don't have much experience here but apparently if you skip a manicure and a pedicure once a month, you would save $50-$110 a month or $600-$1,200 a year.

4. Botox
Treatments usually run $300-$1,200 per visit. Try going "au natural" and save $1,200-$4,800 a year.

5. Bottled Water
If you feel ok about drinking tap water you can save $25-$40 a month, the average monthly delivery fee based on online averages.

6. Second Car
According to the article, this is the highest-ticket "new necessity" today. Getting rid of an old gas guzzler could save you thousands on insurance, registration, maintenance and of course, gas.

7. Cell Phone
Does EVERY child in the family need a cellphone? You could save $480 to $720 per year for every phone you eliminate.

8. Lawn Service
If you have the time, mow your own lawn. You could spend $65-$90 on average for weekly mowing, hedge cutting, and leaf blowing which equals $260-$360 a month.

9. Clothes
Unless you have an urgent need to keep up with the latest fashions, famous frugal-master Jeff Yeager has an idea that will probably seem radical to most, "I think most Americans could easily go for one year without buying any new clothes," he says. The savings here could be monumental depending on your clothes-shopping habits.

10. Private School
Since you're already paying for public school, why not use it? You could save $8,000-$35,000 per year according to the Boarding School Review website.

11. Childhood Parties
Nobody's suggesting you take away a child's day of celebration but you don't always have to overdo it. Do you really need the inflatable moon-walk, magician, clown, and pony-rides every year?

12. Pet Grooming
Spend $25 on a set of clippers and learn how to groom your pet from a book or online. Professional grooming could cost $30-$90 depending on the size and breed of your pet.

Most people become complacent inside their comfort zone and are reluctant to go without those things to which they are accustomed, it's only natural. But try taking a few steps back and look at your necessities objectively, and you may discover that some of those things aren't necessary after all.

12 new 'necessities' that drain your cash [Bankrate.com]
(Photo: Getty)

Now Yechial wants to know, are BP stations simply charging more to negate the 5% rebate on the Chase BP card, or are they really dealing with higher fees on their end? This L.A. Times article published last week says it's the second reason—which means any rebate your credit card promises you on gas purchases is going to be inherently less valuable so long as expenses keep rising for station owners.

From the L.A. Times article:

Gas retailers are being hurt by several forces, including lower sales, higher credit card fees and fuel expenses, that are directly tied to this year's dramatic rise in the price of oil.

In Van der Valk's case, fuel sales have fallen as much as 10% as customers cut back on driving. The lost volume means fewer customers flow through the convenience store to buy coffee, sodas and other money-making items.

With each price increase, more people use credit cards to buy gas, taking a bigger bite out of station profits. A dealer typically pays a 10-cent transaction fee plus 2% to 2.5% of the total fuel sale for each customer.

Yechial writes, "I have told my wife to no longer use BP gas stations, and we are canceling the BP credit card." It's probably not the station owner's fault he's having to charge more, but we agree that if the only reason you got the BP card was for the gas purchase rebate, you got a bum deal. (But so did the station owner.)

"Soaring costs are squeezing gas station owners too" [Los Angeles Times]
(Photo: Yogi)

Josh writes:

Just a few days ago, I took my bill to the Verizon wireless store in my hometown of Millington, TN. I had just cashed my paycheck and my bill was due, so I decided to pay it.
My bill looks somewhat like this:

Monthly Access Charges:	$55.31
Usage Charges
Voice
Data:	$3.39
Verizon Wireless' Surcharges's and Other Charges & Credits	$1.80
Taxes, Government Surcharges & Fees	$5.44
Total Current Charges	$66.54

So, I assumed that I would need to pay $66.54, as stated on my bill. I entered the store and waited nicely for about 15 minutes while the salesman discussed the merits of a newer bluetooth headset with a gentleman.

When I made it to the counter, I explained that I was just here to pay my bill. He brought up my information, told me how much my bill was, and I began to count out four twenties from my wallet. Before I handed the money over, he explained that there is a $3.99 charge for using cash. I held onto the money and pointed out that my bill was for $66.54. I also pointed out that I was paying in CASH and it is legal tender that Verizon is obligated to honor. The young man explained to me that the store had new money software. The fee to use cash was to pay for that software.

If I had exact change, I would have given only the amount to cover the bill, but I only had twenties at the time. So I left with an unpaid bill. I absolutely refuse to be nickeled and dimed like that.

So how do I pay Verizon in legal tender without paying for the privilege?

New money software? For what, the cash register?

Our guess is that a misguided Tennessee youth was trying to pocket $4. Verizon always places high in our personal bracket for Worst Company in America, but charging for the privilege of accepting cash is cartoonishly evil, and slightly beyond Verizon's capable and experienced reach.

(Photo: cut paste)

Here's the gist of her argument:

I'm reasonably sure that many people do not make the same purchases when they pay with plastic. This isn't just a feeling or anecdotal evidence. Researchers have found that people's willingness to purchase more products or services increases with the use of plastic.

In their groundbreaking research, Drazen Prelec and Duncan Simester of the Sloan School of Management at MIT found that study subjects paid more when instructed to use a credit card rather than cash. In fact, they found people were willing to pay up to 100 percent more with plastic.

Credit cards empower us to spend more on the same junk we would normally buy with cash. According to science, this has many causes:

• The delayed payment makes us treat credit differently from cash.
• Charging several items to a card doesn't help you identify overspending on any single item.
• Forking out cash provides a strong visual clue that your wallet is getting lighter.

Singletary ultimately argues that credit may be fine, so long as you realize that it may exacerbate spending. She challenges all non-believers to put down their cards for a month and pay only with cash, and then compare their spending to previous months.

What do you think?

Gawker Media polls require Javascript; if you're viewing this in an RSS reader, click through to view in your Javascript-enabled web browser.

Like it or not, it's unwise to use credit [Seattle PI]
(Photo: Getty)

From The Buffalo News:

“She looked at my money and said, ‘We don’t accept cash as a form of payment for the iPhone.’ When I asked why, she would only say it was the store’s policy that I use a credit card,” Palen said.

Since he doesn’t have one, Palen asked another customer if he could give him the $499 plus tax to charge it for him. Store staffers said that was against the rules, and then escorted him — and his pocket full of bills — from the store.

“I was so outraged. I was so humiliated. I just sat in the mall and couldn’t even talk for half an hour. I was so surprised this could happen in America,” Palen said. “I’ve never been told that U. S. currency isn’t enough to buy a product.”

Legally, neither Apple nor any other private company in New York State is required to accept cash.

Apple responded to the news story with the following: "“We require a credit, debit or gift card as payment to discourage unauthorized resellers,” said Teresa Brewer, Apple spokeswoman." We wonder if they couldn't have asked him to buy a gift card rather than resorting to tossing him out of the store? Oddly, Alex says the experience hasn't dampened his enthusiasm for Apple... "I still want to buy the iPhone,” he said. “Unfortunately, it’s the best phone on the market. Nothing else compares.”

What can cash buy? Not an iPhone [Buffalo News](Thanks, Craig!)
(Photo: hanapbuhay )

The clerk told Pete it was for loss prevention. Wait, what? Pete had the parts in his hand, and the receipt that showed he'd paid cash for the parts the day before. You mean there's no way RadioShack can track its purchases more precisely than matching up mailing addresses of anyone who walks into the store?
 
Here's Pete's email:

Dear Consumerist,
 
I have been avoiding RadioShack for ages ever since they started asking you for your street address and phone number just to sell you something. Once they stopped that practice, I reluctantly began returning to buy the odd piece for my electronics projects when I ran out of something and didn't want to wait for an order to be shipped from on-line retailers. At any rate, I was out running errands the other weekend and saw a RadioShack, remembering that I needed a couple of potentiometers for an amplifier I was working on, I stopped to make my purchase. Wading through the overly "helpful" employees I found the electronic components area. But, I couldn't remember the exact values of the potentiometers I needed so I grabbed all they had, paid with cash and was on my way.
 
I went back the following day to return the un-opened potentiometers that I did not need - receipt in hand. The process went smoothly until the clerk asked for my street address. I told him that I prefer not to give that information out. They claimed that it was for "loss prevention purposes". I say "they" because another cashier came over, presumably for moral support to his co-worker. I told them to make an address up - no dice, claiming the "system" "will kick you out". I tried to explain that I have the receipt and the un-opened parts and that I paid with cash so they would have no way of knowing that I was the person who originally purchased them anyway, no luck. I tried for store credit, same result.
 
I suppose, I could have made up an address, or even given them my real one but i didn't feel like it. I shouldn't have to be put through a personal information wringer to complete a legitimate transaction that happens every day at normal stores. I felt like I was being accused of theft or had to in some way, justify my actions.
 
I will say that the employees weren't rude and they were just carrying out what they were trained to do. In the end, I took the ~$10 worth of potentiometers home with me, where they sit waiting for a new project.
 
Is this normal business practice, or is it time for RadioShack to get with the times for its data mining?

(Photo: Brave New Films)

Consumer Reports says:

According to the posted policy, you’re simply out of luck if you don’t have a receipt and Target can’t verify the purchase through its electronic “receipt look-up” system, as might be the case if you paid cash or received the item as a gift.

But for items costing up to $20, there’s another “hidden” option that you won’t see on the store’s posted return policy. Customers can get store credit, provided they show a driver’s license or other government-issued identification and haven’t already used this option twice during the year. This option actually has been around awhile, although it initially allowed no-receipt returns for items valued up to $100, an amount subsequently reduced to $40, and reduced again last year to $20.

“It is something we look at as an accommodation above and beyond the policy," says Target spokesman David Fransen. "It’s not publicized or advertised.”

Target’s 'hidden' return policy [Consumer Reports]

I had an interesting time last night at my local Washington Mutual.

I am getting ready to leave on a trip to Las Vegas for a friends wedding so last night I decided that I would actually go into a Washington Mutual branch and withdraw my 'bankroll'. It was about 10 minutes to close but there thankfully no line. I filled out the withdrawal slip for the cash that I wanted, approached the teller, scanned my ATM card, entered my PIN and handed her the slip. She immediately asked if I wanted a check for the amount ($4.2k) and I said no, that I wanted cash. She then yelled to the manager across the bank about the transaction. He asked; how much? She said "$4200". Keep in mind that this was not done in private but across the room at the bank, therefore letting everyone in the room know that I wanted a (fairly) large sum of cash.

It was at this time that the faux hawk sporting manager said 'nope'. He told me (still across the room BTW) that they operated on some automatic withdrawal machines and that he couldn't authorize that much of a withdrawal because other people needed to use it and that the amount of capital wouldn't cover it.

In shock I asked when they (the bank!) would be getting more capital, he said that they got more nightly. So I asked if I could come get the amount I wanted tomorrow. He said 'no' again. Apparently these machines had enough money for me but they didn't want to give it to me because someone else might need it (the bank is open for 10 more minutes).

The manager let me know that I could try a 'traditional' WaMu branch as they have 'more leniencies' with the withdrawal amount. Keep in mind that those are at least 3 miles (over 30 minutes in San Francisco) away.

I then asked the teller very plainly... "Are you saying that I can't have MY money?"

She said "yes".

Beyond mad I ripped up my withdrawal slip and left the bank. I have two out standing checks (IRS and State) with WaMu, when they clear I am OUT. I can't think of anything more ridiculous than not being able to get my money. Aren't there some rules about that?

I guess that the good thing to come of all this is that there can't be a run on the banks because even if everyone tried to get their money... the banks will not give it to you!

Thought this was something that you might find interesting!
Thaddius

Any bankers want to explain how this works?

(Photo:Stirwise)

That's the sign I saw at the Bath & Body Works store in a Tanger Outlet Mall in Pigeon Forge, Tennessee. I didn't go inside to find out if my legal tender was no good there or what, but I'm a fan of the site and thought y'all would get a kick out of the pics.

He wasn't. Within about an hour Tim was writing us to say he had $20 in gift certificates from Radio Shack.

Here's Tim's first letter:

Just left Radio Shack store in Jackson Mississippi located on Hwy 18.

Sales Associate took my name and telephone number prior to ringing up about sixty dollars worth of small parts. Refused to finalize cash transaction without my home address! I left the store as he was returning the stock to the shelves.

I have attempted to make Radio Shack aware of this incident as well as my contacting your site. Perhaps their sales are so good in these trying times that they are not interested in doing business with folks who aren't
interested in giving them such information?

Seems highly unlikely, but the whole incident was witnessed by a fellow I assume to be the manager, but I've no way to confirm that. In any event, I will report to you any communications I receive from Radio Shack in regards to this incident. At this time I am limited to going through a form on their website. Why do I feel that will be ignored?

Thanks,

Tim

Wow. I emailed Radio Shack (thru an online form) and then I called their 800 number to report the treatment I had been given earlier in the day. I got thru directly to the Area Coordinator and he apologized profusely and offered me $20 in Radio Shack gift certificates. Turned out their local corporate office is right down the street from my house, so I went right over and picked up the gift certificates. That's a pretty fast response to a complaint wouldn't you say?

Turns out the guy who was abusing me is the freaking store manager! I don't think he's in for a pleasant evening.

Thanks,

Tim

• MissingMoney.com: Search for lost money, jewelry, and property held by 40 states.
• Tax Refunds: That tax refund you expected but never received? The government still has it locked in a box sealed with a pretty bow. Call and (800) 829-4477 and claim it as your own.
• Treasury Hunt: $14 million worth of matured savings bonds gifted by grandparents lie waiting to be collected.
• Pensions: Did you slave for years in a factory and forget to collect your pension? Probably not, but if you did and the Pension Benefit Guarantee Corporation hasn't already knocked at your door, search through their database to see if you can finally retire.

Completely Foreseeable Riot as Cash Thrown at Public in Union Square [Gothamist]
(Photo: M. Roberts/Daily News)

He writes:

My wife and I went on our honeymoon in March of 2006. We both had saved about $2,500 to spend on our ten day trip. Rather than paying currency exchange fees and carrying a huge amount of cash with us, we opted to carry our Bank of America Visa debit cards with us and withdraw smaller amounts of cash at Citibank ATMs (which only have very minimal cash withdrawal fees).

Both of us called Bank of America's customer service about two weeks prior to our trip and went through the whole ridiculous ID verification nonsense you talked about. We spoke to their fraud protection department and let them know on each of our individual cards that we would be in Japan during that time and that we would be making frequent large purchases and cash withdrawals on our cards. They assured us that everything was taken care of and we'd have no problems using our cards while we were in Japan.

On the third day of the trip, we went to Akihabara to make some video game purchases. I found the only Wii system we saw the entire time we were on the trip and tried to buy it. My card was declined, which was incredibly embarrassing and difficult to deal with because of the language barrier. My wife tried her card and it went through, thankfully. The next shop we came to had something she wanted to purchase, at which point her card was declined. She paid with the cash she had left over, leaving both of us with about the equivalent of $15 total in cash.

We assumed we'd hit some sort of daily limit and thought we'd just get more cash out the following day and it'd be fine. When our cards were both declined at the ATM the next morning, we got worried. We spent the last of our cash on the cheapest phone card we could find so we could call the bank and get this mess taken care of. We scoured their website looking for a 24-hour customer service number but couldn't find one (with the time difference between here and Japan, they had just closed their main customer service department and it would've been 10 or so hours till it opened again). We tried calling the other 24-hour numbers to see if there was a way to get to someone that could help us.

We ended up having to spend an entire day sitting in our hotel room doing absolutely nothing waiting for their customer service department to open. We didn't have any money for food and all we were able to eat was a few candy bars we had picked up a few days prior. When we finally got to talk to someone that night, they said we should've tried the 24-hour number and that the other people we spoke to should've given it to us. Both cards had been frozen due to unusual activity and they basically said it doesn't matter that we told them exactly what we were going to be doing. They assured us we wouldn't have any more problems this time, but when we went to get money out (about a mile away from the hotel) my wife's card was declined again. After walking back to the hotel and getting it fixed again, we were able to use our cards for the rest of the trip without a problem.

Still, we wasted an entire day on our honeymoon in Japan, wondering if we would even be able to fix the problem at all. When I called customer service when we got home, I was told that the problem was our fault because we were relying on those two cards. Their reaction to what happened was that I should've had other credit cards or cash available in case there was a problem with our Bank of America cards. It took me more than six months and countless phone calls with threats to move my accounts (two checking, two savings, a money market savings, and a mortgage loan) over to another bank for them to take any responsibility and offer me a $300 credit for the time lost and the poor experience.

Sorry for the lengthy email, but I couldn't resist when I read your article. Bank of America has absolutely horrible customer service and more people need to be aware of it. I'm glad someone with access to a widely read forum was able to post this sort of information and get the word out.

PREVIOUSLY: Bank Of America Won't Let You Access Your Money
(Photo: mrhayata)

"It took Linda Medlock four years and $8,000 to pay off the $500 she borrowed from a payday lender to make her mortgage payment," says the Denver Post.

Boo, payday lending. Boooo.[Denver Post] (Photo:taberandrew)

From The Street:

"Personal finance is not something that people talk about often. People have financial blunders, and the idea behind the contest is that you can learn from other people's mistakes," said Mint founder and CEO Aaron Patzer.

"Holiday Spending Hangover Contest" [Mint via The Street]

Citibank's card is open to anyone, and offers prescription discounts through PrescriptionDiscountBenefit.com. "For a fee of $8.95 a month, you can add on a vision and dental discount program, with discounts of up to 60% on services and eyewear."

For all three cards, the interest rates are in the 10-11% variable range.

"Credit Cards Offer Discounts on Medical Expenses" [SmartMoney]
(Photo: Getty)

I start counting out hundred dollar bills and the clerk goes nuts! "Sir, we don't accept cash for this kind of purchase! You must use a credit card!" she says at the top of her lungs. (I see her also hit a button on the phone at the same time.)

Instantly a man shows up, clearly the manager from his nametag and the rent-a-cop security guy. Both tell me the same thing, "NO CASH! You have to pay with a credit card!"

The manager's actions are legal. 31 U.S.C. 5103 says that cash is legal tender for all debts, public and private. Creditors can't refuse cash. CompUSA can.

Of course, that doesn't mean they should.

I got a call back from a guy at CompUSA corporate, apologizing for what happened. He said that he would make sure that I was taken care of properly and that cash would be no problem. I told him I would think about it and call him back.

So I called the store to see if the items I wanted were in stock, after I asked the guy about them he said, "I know who you are, your the guy that wanted to pay cash. My district manager & corporate called me and read me the riot act over this. Thanks for getting me in trouble!"

He then hung up on me!

No Cash At Compusa????? [Sprint Users]
Legal Tender Status [Department of the Treasury]
(Photo: Tyler Durden's Imaginary Friend)

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

I witnessed a distressing situation at my local Apple Store this morning: a customer who wanted to buy 2 iPhones (for her and her husband) was denied the sale, because she wanted to pay with cash. One employee claimed it was due to "the registration system", stating "it requires a credit card" which is totally bogus. Another employee said it was part of an attempt to prevent people from buying several and unlocking or exporting them. They also said that checks and gift cards are no longer accepted for iPhone purchases, and that he credit card has to have the customer's name on it.

Apple Limits Sale of iPhones: Two Per Person and No Cash [AP]
(Photo: Boris Veldhuijzen van Zanten)

Life without plastic requires a few components:

• Budget: Every month, NCN writes out a comprehensive budget: "I divide my salary into three major categories - Give, Save, Spend - and then I break those categories into smaller sub-categories. For example: Give - Tithes, Offering, Charity. I then allocate, on paper, all of the funds that I receive for the month into those sub-categories. I spend every dollar, every month, on paper, before the month begins."
• Payments and Spending: NCN makes payments either through his online account or with plain checks. For internet purchases, he uses a debit card.
• Transfers: NCN dips into his high-interest savings account once per month. We do the same, and enjoy the financial discipline imposed by limited trips to the cookie jar.

How I Live Without Using Credit Cards - My Simple System For Living On A Budget [No Credit Needed]
(Photo: danesparza)

Vukson promptly mailed in all the rebate materials and, after two months, had not heard from OnRebate. He sent an e-mail Jan. 24 inquiring about the rebate. In a Feb. 28 response, OnRebate said it had not received all the necessary materials to process his form. In March, the company refused to send the rebate, saying Vukson had missed the cutoff date, according to the suit, which lists several other alleged instances of consumers being denied rebates.

Rebates require you give up your money as an interest-free loan, while placing trust in a faceless company and postal system that you won't be screwed over. They're not worth it. We think the best thing to do is ignore sales that use rebates to drive down the total cost. Either the retailer can give you an instant discount and deal with the rebate himself, or you can pass on the offer. We're shoppers, not business micro-lenders.

"Consumer sues Systemax over rebates" [Newsday]
(Photo: Getty)

The goal is to balance the need for precious liquidity with a need for steady growth. Consider using the following:

• High Interest Saving Accounts: Our personal favorite, these accounts allow you to keep your money completely liquid while providing a risk-free APY that usually exceeds 4%. The accounts usually limit you to no more than 6 transactions per month.
• CDs: Higher rates can be found with long-term CDs, but penalty fees can undermine liquidity, which makes them less than ideal for rainy day funds. To get around the limits, you can ladder your CDs so the funds become available at regular, staggered intervals.
• Money-Market Accounts: Traditional money-market accounts are usually constrained by fees and minimums, but money-market mutual funds can provide a slightly high rate of return for the more adventurous - just watch out for fees.

Where to Stash Your Emergency Cash [Washington Post]
(Photo: 4ever30something)

The strategy actually evolved after FMF got in a discussion with a reader over which card was better. After side-by-side spreadsheet comparisons under different spending scenarios, they tell you how you can adjust your spending habits and earn up to 2.6% cash back — an amount well above the 1% "industry standard" for cash back credit cards.

For bonus points, here's how to de-RFID your Chase Freedom card.

How You Can Earn Over 2.6% Cash Back by Using a Combination of the American Express Blue Cash and Chase Freedom Cash Visa Credit Cards [Free Money Finance]

"Banks usually are really fast to cut rates and slow to raise," he said.

Some experts are advising people to lock in longer-term certificates of deposit soon, at least with a portion of their savings, in case rates begin to slide.

"Locking in a CD is particularly attractive now," said Greg McBride, senior analyst at Bankrate.com in North Palm Beach, Fla. "The yields haven't yet reflected the idea of a Fed rate cut."

Savers would be wise to lock in high CD rates [Chicago Tribune]
(Photo: corrieb)

"Many customers are running out of money at the end of the month," said H. Lee Scott Jr., the chief executive of Wal-Mart.

"The housing market remains difficult, and our performance reflects that," said Mr. Blake,

Living without a credit card isn't as difficult as you may think—in many cases a debit card will work just fine. (One must be aware, however, that debit cards do not offer the same level of protection as credit cards.)

If you've got a serious impulse control problem with credit cards you may want to consider giving them up.

Here are a few tips we liked and thought were useful whether or not you're going to give up your credit cards:

Save an emergency fund. Many people use their credit cards as a sort of emergency fund — if there's an unexpected expense, the card comes out to the rescue.

Save for goals. Once you've got the emergency fund adequately covered, you can start saving for other things.

Get a debit card. If you need to use a credit card in certain situations, such as buying something online, often you can use a debit or check card instead, if it has the name of a major credit company such as Visa or Mastercard.

Earn interest instead of paying it. The problem with debt or credit is that you waste money paying interest.

Buy a car on cash. For those who have been buying vehicles with auto loans all their lives, it may seem impossible to buy a car on cash. But it's very possible, and many people do it.

10 Ideas for Living a Life Without Credit or Debt [Zen Habits]
(Photo:lorenzhausleitner)

1) Make Shopping Your Hobby.

Nothing to do on a Tuesday night? Go to the store. Doesn't matter which one. Just go and bring your credit card. Better yet, open a store credit card and buy a bunch of stuff. Hey! You saved 10%! Sure, you didn't actually know you "needed" this stuff until you saw it at the store, but its just so cute.

2) Don't Have a Budget.

Look, you know about how much money you make and about how much you spend on basic costs. Then you need your "play money." After that, if there's anything left, it can sit in your non-interest bearing checking account until next month. As long as there is something in there, you're doing well.

Sure, you overdraft now and then, but big deal. It doesn't happen every day.

3) Impress Your Friends By Buying Them Expensive Stuff You Can't Afford.

If Betty registers a $10,000 silver platter for her wedding... you should get it for her. Yeah, so you went in to debt? Betty is your best friend . She'd do the same for you. What? You don't want to look cheap !

4) Go Grocery Shopping When You're Hungry, With No List.

Don't plan you meals. Always eat "whatever you feel like." Go shopping when you're really hungry and make sure to buy everything that looks yummy!Mmmm! Lobster! Another good tip is to go shopping on "sample day" and buy everything you try. Smoked Gouda! Caviar! Little pigs in a blanket! Pizza rolls! Yay!

5) Go To The Little ATM At The Gas Station. A Lot.

It's only 1.50, get over it. The bank is sooooo far away. Just get money wherever it's convenient. Who cares about the fees? Same goes for overdraft fees and other banking fees. It's not that big of a deal.

6) Buy Lots and Lots of "Comfort Items" Without Considering The Cost.

You need your latte. You need your new shoes. You need Madden 08. You need a blu-ray player. You need cable. You need an iPhone. You need more DVDs. You need to buy a book instead of going to the library. You need to play a MMORPG . You need 150 shades of lipstick. You need to see every movie that comes out, then buy the poster and an action figure. You need to go to every concert. You need to buy the T-shirt. You need lots of brand new clothes every month.

You need these things to be happy. If you don't have each and every single one of them you will be so depressed that you may actually die. Don't take the risk.

7) Don't Open A High Interest Savings Account

High-interest savings accounts are for old people. You don't need to save yet. Or at all. You have that, you know, plan thing at work where they save money for you. And you can use your credit cards for any emergencies that might come up. So you'll be OK.

8) Run Up Lots Of Credit Card Debt

Don't worry, you'll pay it off at some point. When? Um. When you make more money than you do now. Duh. Besides, if the credit card company says you can afford to take out $17,000 at 18% they must know what they're talking about, right? They don't want to lose their money!

9) Let Yourself Go.

Don't work out or change the oil in your car. If you get sick, take half the medicine, that way you'll get sick again really quickly and get to spend more on medical bills. Take crappy care of your car and your house so that when something breaks it costs a ton of money to fix. Also, buy a gas guzzling car and leave your windows open with the air conditioning on. Don't brush your teeth or eat healthful foods. Make sure to buy lots of things that are very expensive to maintain, then neglect them. Who cares?

10) Buy Your Children Whatever They Want

Your kid can't go to school unless he/she is dressed in all the latest fashions. Also, he/she must have better toys than other children or you are a bad parent. Disappointment is bad for children. If children don't get everything they want, it makes them bad at math. True story. Also, if you don't sign your kid up for tons and tons of expensive classes and activities, he/she will fail at life and live under a bridge. And it will be your fault.

What are your tips for staying as broke as possible? Share them in the comments!

(Photo:Sam Wilkinson)

1) Wells Fargo funds Cash Advance, a large chain of payday loan centers.
2) Credit reporting agencies make sure to keep the reports of high-profile people, like politicians, actors, and celebrities, extra-squeaky clean, so as to avoid potential trouble.

Number one is perhaps the most astonishing allegation, suggesting that some of the biggest household names in banking are bankrolling shady sub-prime and predatory lending.

WellsFargoProblems.com says Wells Fargo has extended various million-dollar lines of credit to several different payday loan outlets, Dollar Financial, Advance America, Cash America , ACE Cash Express

Who could resist getting into a business where you can charge 651.79% interest? — BEN POPKEN

PREVIOUSLY: Maxed Out: Take It For What It's Worth
(Photo: Orin Optiglot)