warning credit card company tactics (rant)

[sleddogg]

I consider myself fairly careful when it comes to paying credit card companies interest. I have a card for 4 years now with my bank and haven't paid interest on it yet. I knew I was going to be spending some money preparing my shop so I got a credit card through Woodcraft so I would get points to spend as cash in their store. 0% until Sept 07'. Later they convinced me to enroll in a secure credit program which protects my balance in events such as layoff, disability etc. They bill each month at around 80 cents per 100 dollars balance. That amount goes on to the balance. Here's the kicker... they categorize that charge as a purchase instead of under 0% deal and charge interest on that amount. Furthermore that amount goes to the bottom of the stack and stays there until all other balance amounts are paid. Just like balance transfers do. Most people don't know enough about how credit card companies work. I thought I did. They stuck their hand in my pocket and they got the shaft baby. I cancelled the secure credit protection and will pay off the balance and never use the card again. They can do recordkeeping on me until the end of time but I'll never use that card again.

[Ed62]

It's about time someone "stuck it to the man". Cool!!

Ed

[crokett]

Cold call a few other CC companies. One of them will give you a 0% balance transfer on your entire balance with your Woodcraft card. Then call your Woodcraft CC company and tell them unless they stop charging interest you are transferring the balance.

[radhak]

some rules
(a) never take credit protection. it's for those who don't need it, and too costly for the rest
(b) any card you use for balance transfer, should be sealed, locked up and forgotten (ie, don't use it for anything at all) for precisely the reason you found out. that is the main way they make money.

as for the interest they are charging you : call them first and demand that they stop charging the interest, 'or would you like me to transfer to another card/bank?' (ask to speak to a manager, of course). nobody would like to lose a customer on their watch if they can help it. but be ready to not get back whatever they already have charged you last month.

i have had penalty fees, even finance charges, reversed by being assertive like that. of course, my trump card was that i was really ready to cancel - no bluff.

(btw, i work for a charge card company now, but don't hold it myself. i see many new initiatives ('offerings') internally that have a main tenet : make more money by charging more penalty fee, or more innovative way of calculating finance charges. somewhat similar to the speed traps laid by cops )

[scorrpio]

Frankly, it is strange you got into this situation. If this is a 0% on transfers only card, not on purchases, it hould be 100% frozen. Any service charged to this card will constitute a purchase, that is a common thing. And all interest balance is always at the bottom of the payout stack. Personally, I only go for 0% on transfers AND purchases offers. Gotta be real careful with these, though - the interest they WOULD charge is kept on record, anf if you have a balance of even $0.01 when the '0%' period is over, you get charged all that interest.

Award for the most 'sheesh' offer goes to Discover's "lifetime 0% on balance transfers." In order to keep NOT paying interest on balance transfers, you need to make a minimum of purchases per month, and of course those have interest, and of course are at the bottom of payout stack. Of course, "lifetime 0%" is in big bold letters on the envelope. The rest is in the VERY fine print.

[LinuxRandal]

I never subscribed to those things, as most of the ones I have seen don't kick in till AFTER they would have been calling you wanting to know why you have/are missing payments. By then the damage is done. Better idea would be to use their charges for it, to pay on the card, if you don't pay it off every month.

I went without a CC for years due to seeing all the stupid things people did. Probably saved me a bundle.

[sleddogg]

Scorrpio,
it is a 0% on balance transfers and purchases, they just categorize the charges from the credit protection company as a regular purchase instead of under the 0% offer until Sept. 07'. Anyway I called my states consumer protection agency and they told me I have a ligitimate complaint and refered me to comptroller of currency since card is through a national bank. I was also commended and told that more people need to do what I am doing which is filing a formal complaint. As far as my balance when the 0% deal is over....it will have been at $0.00 for several months by then which is where it will stay until the end of time. I'll also be letting Woodcraft know about my disgust in their business partners tactics.

[scorrpio]

Hmm - subject-to-interest *service* charge on a 0% purchase card IS something new, and does smack of a contract breach.