Mike and his wife are backpacking their way around the world, and like a smart consumer, before they left he looked around for a credit card without a currency conversion charge. Capital One is fee free, which in theory makes it ideal for travel. In reality, there are hidden costs, and they’re called human stupidity and random interpretation of the rules. As a consequence, he’s “pre-paid” $6,000 onto a Capital One card that has been red-flagged and frozen, and Capital One refuses to budge—even though they acknowledge there are notes on the account that indicated he would do this before he did it, and even though they’re the ones who told him to pre-pay.
fees
"Courtesy Overdraft Fees" Are Bad For Consumers
By 12.21.07
Bankrate has an extensive article on “courtesy overdraft” services tied to debit cards. These services prevent your debit card transactions from being denied, but have the unpleasant effect of charging you anywhere from $20-$35 for this “courtesy.”
You Really, Really, Hate Blockbuster For Raising Prices
By 12.20.07
I responded by immediately canceling my account – I gave them the benefit of a doubt the first time, but this is too much.
Blockbuster Total Access Is Raising Your Rates
By 12.20.07
Looks like in addition to bad service Blockbuster wants another 2 bucks per customer who were grandfathered in by the old pricing system.
Illinois' New Gift Card Law
By 12.18.07
Consumers in Illinois have a new gift card law coming into effect next month, says the Springfield State Journal-Register. The new law will prohibit gift cards from expiring within 5 years of being issued.
Under the new law, the recipient of a $50 gift card — for example — will be able to spend the entire $50, said the measure’s House sponsor, Democratic Rep. Jack Franks of Woodstock.
By 12.13.07
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US Airways is charging a $5 extra fee if you book on its own site. Yes, on the USairways.com site. [Upgrade Travel Better]
Citibank Charges Student Loans Late Fee From 2005
By 11.30.07
Sean writes:
When I went to check the statement on my wife’s student loan through CitiBank for November, I noticed a late fee listed. As we signed up to pay via direct debit for the interest rate deduction, we get no paper statements. I checked my records, and our last payment had been processed for the full amount, on the due date. I asked my wife to call and find out why we were being charged a late fee. The representative told her that it was to correct an error from 2005. There is no explanation on the site, and when my wife asked to speak to a supervisor, the supervisor told her that there were no plans to notify people being charged these fees. My wife had to specifically request that a letter be sent detailing these fees.
Budget Settles With FTC Over Bogus Fuel Fees
By 11.27.07
Budget Rent-A-Car settled with the FTC over its illegal charge of fuel fees even for customers who returned the car with a full tank of gas. Budget claimed in its advertising and in-store signage that customers would not be charge for fuel if the car came back with its tank full. In reality, Budget would charge customers a $5, $6, or $9.50 fuel fee if they drove fewer than 75 miles and returned with the tank full. The only way to get the fee reversed was to present a gas receipt, a procedure Budget didn’t disclose in advance. Under the terms of the settlement, Budget will have to stop doing this crap.
Guide To US Bank Service Fees
By 11.26.07
If you’re a customer of US Bank and would like to know if any fun fees apply to your region, like 25 cents every time you buy something with a debit card and punch in your PIN code, here’s a handy guide. 23 states and smaller zones, like “California Metro” and “Council Bluffs, IA” have unique fees, all other fall under the rubric of “Minnesota and All Other States Not Within U.S. Bank Footprint.” It certainly is expensive to run a bank, and everything being electronic has only increased fees. Hey, the electrons have to travel on, like, gold conductors, don’t you know.
10 Annoying Hidden Hotel Fees
By 11.20.07
Forbes Traveler has compiled a list of the top 10 most annoying hidden hotel fees. We’re not exactly jetsetters or anything so a few of them were news to us.
By 11.16.07
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Always scrutinize your bills: US Bank charges customer 25 cents every time she buys stuff with a debit card and punches in her PIN. The fee applies to US Bank customers in Colorado, Indiana, Kentucky, and Ohio. [Red Tape Chronicles]
Credit Card Grace Periods Keep Shrinking
By 11.15.07
The Kansas City Star reports the amount of time people have to pay their credit card bills keeps getting smaller, increasing the likelihood of incurring late fees, late fees which have been rising in cost over the years. Consumers used to have 30 days. Then it was 25. Now companies are moving towards 20. Furthermore, the date starts when they issue the bill, and it can then take 2-4 days to reach you. Cattle prods towards customers using online bill pay, death by a thousand fees. Keep an eye on those due dates, you never know when they’ll magically shrink again.
Update: Dubious Fees For Homeowners Facing Foreclosure
By 11.12.07
Last week we talked about a NYT article about a bankruptcy professor who has been looking at fees loan services are charging and how she found many of them to be dubious and/or inexplicable. For example, by looking at all the defaulted loans being paid off under chapter 13 bankruptcy, she found millions of dollars of difference between what the debtor thought they owed and what the loan service said was owed. Some of that was due to the insertion of questionable fees, like “fax fees” and “demand fees.” There was a front-page NYT article on it, and now you can download the paper that started it all, Misbehavior and Mistake in Bankruptcy Mortgage Claims (PDF).
T-Mobile Loses Cancellation Letter Twice, Sends Account To Collection Agency
By 11.11.07
T-Mobile sent reader Ivan’s account to collections after he twice cancelled his service. He first cancelled in August, but T-Mobile mysteriously lost the cancellation letter. Ivan faxed over a second cancellation letter while a CSR waited on the phone to confirm receipt. Having switched to Verizon, Ivan didn’t care when in September, someone stepped on the T-Mobile phone lying in his car, breaking the screen. T-Mobile is now demanding that Ivan pay a bill that lists only a reinstatement fee. Ivan writes:
Dubious Fees For Homeowners Facing Foreclosure
By 11.7.07
The New York Times today took a look at the work of Katherine M. Porter, associate professor of law at the University of Iowa, and bankruptcy specialist. She’s been taking a closer look at the fees that some loan servicers are charging homeowners who are in foreclosure. She’s determined that some of the fees are “questionable.”
Chase Changes Due Date Without Warning, Changes APR From 3.9% To 29.99%
By 11.1.07
Dan writes: “I was scammed big by JP Morgan Chase Credit Cards. They apparently have “floating due dates” that we had not encountered in our 10+ years as customers but somehow February of 2007 was the magic month. They moved our due date up by 3 days, our payment was two days late. They raised our interest rate from 3.99% to 29.99%…Amazingly enough, on our March bill the due date is exactly the same as January. They claim they sent us a notification letter, but I never received one. I spoke to the worst customer service person ever, Dennis Broyles, who claimed that no one in the company had the power to change my interest rate back and that he had no supervisor I could speak with. It was outrageous.”
Chase Changes Due Date Without Warning, Charges Late Fees
By 10.29.07
David went online last night to pay his Chase VISA bill and was shocked to see a late fee. For 18 months, the bill has been due on the 31st. This month, Chase arbitrarily decided to change it to the 26th.
