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5 Killer Steps to avoid Credit Card SCAMS!
In August, 2004, the Federal Trade Commission issued their
findings of a recent study, which showed that nearly 25 million
adults were victims of fraud.
Now, most importantly, If you are a victim of fraud, please do
not feel like you did anything wrong. It happens to all of us at
one point or another, as the FTC's study clearly shows. Everyone
likes a magic trick, and none of us are fully capable of noticing
the con-artists' slight of hand. So, if you're a victim, take a
deep breath. You're normal.
But, there's an old saying that goes something like this: Fool
me once, shame on you?Fool me twice, shame on me!"
Here are 5 KILLER STEPS to protect yourself from Credit Card
SCAMS!
- NATIONAL NO-CALL REGISTRY.
- ANNUAL FEES, INTEREST RATES, ETC.
- THE UNITED STATES FEDERAL TRADE COMMISSION
1. NATIONAL NO-CALL REGISTRY:
There's nothing more annoying then those credit card offers
that you get over the phone. I don't know about you, but the last
thing I want to be doing, while having dinner with my 1 year old
daughter and my beautiful wife, is to be annoyed by phone calls
from solicitors that just want to make money off me. Legitimate
or not, these calls are a nuisance. If you're like me, and you
would rather live without dealing with these calls, then go do
this:
- The FTC has created the National Do-NOT-CALL registry. Go
find out more information about it. The website is: http://www.donotcall.gov
- If it makes sense, complete the online form.
- Take a deep breath, and relax. Within 30 days, the list
will start working for you. I can personally attest that, while
the solicitations have not stopped completely, they have
significantly, significantly decreased.
Join the FTC No-CALL-Registry, and enjoy a reduction in
telephone solicitation phone calls.
2. TELEPHONE SOLICITATION:
Believe it or not, the vast majority of lenders out there are
legitimate. Also, believe it or not, a lot of these lenders
utilize telemarketing as a method of reaching out to potential
customers.
- But beware of a wolf in sheep's clothing. Legitimate
Lenders never ask for a processing fee in order to complete
your application (this does not include appraisals during a
real estate transaction in Escrow?We are discussing credit
cards here).
- Keep your personal information to yourself! Don't give out
bank information, credit card numbers, social security numbers,
etc., to someone you don't know, on a telephone call. Use your
common sense.
- If you don't have the offer in hand, or confirmed in
writing, then don't pay. This is fraud. Who is this person on
the phone anyway? Get their phone number, their address, their
federal tax ID number, and then tell them you'll call back. If
they're legitimate, they'll give it to you. If you question
them, then I say trust your instincts. You're probably right on
target.
Who is this on the phone? Don't trust people you haven't had a
chance to get to know. Don't let one enticing offer on a phone
call, be your guide...
3. 1-900 NUMBERS:
A 1-900 number is, of course, a phone number that charges the
caller per minute for making the call. Whether it's a 1-900
number, or a future manifestation of the same type of telephone
service, be wary of doing business this way.
- The most common Credit Card SCAM, in all of its different
forms, is called an "ADVANCE FEE LOAD SCAM". Typically, you
will find these in the classified section of your local
newspapers and trade magazines, and unfortunately, you'll also
see them floating around the internet.
- In a nutshell, the perpetrator will guarantee you a loan,
but you have to pay them an upfront fee first. The fee can
range from $100 to several hundred dollars. The charges can be
extracted using telephone services like 1-900 numbers. Beware
of courier services, and transactions that avoid the US Postal
service, often conducted so as to avoid detection. The scam is
that once the fake company has your money, they disappear from
the planet, leaving you a victim of their con. You are out
money, and no credit card.
- Now lets' not confuse Advance Fee Load Scam artists with
legitimate lenders and institutions. I can attest that there
are real companies out there, trying to help you to get the
credit, loans, and consumer debt services that you need. I
believe in many of these services, and I believe in the
convenience and power of the internet. However, use your common
sense in all your business transactions in life, and that
includes credit. Never give someone money without getting
anything back in return. Never trust someone that you don't
know. Never get enticed into a deal that's too good to be
true.
Use your common sense, and don't fall prey to the con artists
slight of hand, such as the Advance Fee Load Scam...
4. ANNUAL FEES, INTEREST RATES, ETC.:
Credit Card Scams come in all different shapes and sizes. Many
of them are, arguably, not scams at all, but let's just call them
credit card offers involving consumer unfriendly terms.
- Read the fine-line. Every Credit Card Offer must provide
the Consumer with written documentation on the terms of the
offer.
- Check the Annual Fee, the Interest Rates, the Cash Advance
Fees, the Late Fees, and all other terms of the offer.
c) Make sure you know what you are getting. Some offers are
for secured cards, some are for unsecured cards, and some offers
are for shopping portals online and offline (Like a department
store card). So, while none of these are scams, by definition, it
is important that you fully understand the terms of the credit
card offer that you are agreeing to.
Be a responsible consumer, and read the terms and conditions
of your credit card offer...
5. THE UNITED STATES FEDERAL TRADE COMMISSION::
The best place to go for direct consumer information,
protection, and remedy, is the United States Federal Trade
Commission...
- The FTC can provide you with TONS of free information about
Credit Cards, and other consumer related concerns. They can
help you learn more about what to avoid, how to be a smarter
consumer, and what to do if you believe that you are a victim
of fraud, and what your remedies may be.
The FTC is there to help...
SUMMARY:
Use the No-Call Registry to cut down telephone solicitations
in your home and places of business. While many legitimate
lenders utilize telemarketing, be careful. Don't give out
personal information to people you don't know, don't pay up-front
processing fees over the phone, and get everything in writing.
Consider yourself an advised consumer on "Advanced Fee Load"
Scams, and look out for the signs, when these scams regrettably
make their way to you. Read the terms of the offers that you are
considering, and utilize the FTC website for trusted information,
resources, and all related materials on consumer credit card
issues.
We've enjoyed providing this information to you, and we wish
you the best of luck in your pursuits. Remember to always seek
out good advice from those you trust, and never turn your back on
your own common sense.
Publisher's Directions: This article may be freely distributed
so long as the copyright, author's information, disclaimer, and
an active link (where possible) are included.
Disclaimer: Statements and opinions expressed in the articles,
reviews and other materials herein are those of the authors.
While every care has been taken in the compilation of this
information and every attempt made to present up-to-date and
accurate information, we cannot guarantee that inaccuracies will
not occur. The author will not be held responsible for any claim,
loss, damage or inconvenience caused as a result of any
information within these pages or any information accessed
through this site.
About The Author
Tom Levine provides a solid, common sense approach to solving
problems and answering questions relating to consumer loan
products. His website seeks to provide free online resources for
the consumer, including rate-watch, tips and articles, financial
communication, news, and links to products and services. You can
check out Tom's website here: http://loan-resources.org, or you can email Tom
at info@loan-resources.org.
Copyright 2004, by Loan-Resources.Org
MORE RESOURCES:
Credit - Google News
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