Money talks, we (must learn to) listen with interest! (Part-1)
Private Label Credit Cards: Prevent your credit card from becoming a threat to your financial well-being.
It has long been my desire to share with you a few tips and tricks that I have gained over the last 9+ years in the Commercial Financial Services sector, specifically Credit Card Collections, with the intention of assisting those looking for newer and more workable means of paying off credit card bills. The contents herein are the result of my own personal observations and bears no reference to any one person or organization. The information contained is a means of understanding the system and using it to help yourself. So please take time to read and understand it in its entirety.
Given the economic situation we all are in, I’ve put together some useful information that will help you save yourself close to $500 on credit card bills annually, if used wisely.
· There is a minimum amount due to be paid each month on Credit Card Bills (if you don’t pay off your purchases within thirty days from the date of the purchase). This is calculated based on the total balance+interest+latefee+insurance, if any, and the terms and conditions of the credit card issuer. As far as possible, make your payment on or before the due date.
· The payment due date is the date by which your payment must reach the creditor to avoid any extra charges. There is also a grace period of a week, (They don’t tell you this but it appears on your statement in the form of: Due date and Billing Date) before the late fee is applied. But the account will have the late fees posted the day immediately after the due date, by default, and you don’t get to see that until the next billing cycle. (The system is programmed to do that).! Collectors make it appear as though they are removing the late fee to assist you (and they do), but it shouldn’t have been there in the first place.!
· Assuming you have a minimum amount due of $40 each month. When debt collectors call (the account is delinquent) to collect a payment, they usually will mention something like this: ‘I am calling to collect a total amount due of $90 which is behind by a payment.’ You are aware that your payment was due on the 19th and you’d missed the payment for July, but $90?. They will not normally give you the breakup unless you ask. The total amount due will constitute, the past due ie. $40 and the current due $50. – *Taking care of the past due will bring the account current, It is not obligatory to pay the total amount due as mentioned by the debt collector. *The phrase “missed a payment” or “behind by a payment” while opening the call, is to unsettle you.
· Your regular due date being the 19th of each month,the collection call comes in on the 23rd. By this time the account is delinquent and has already been debited with the late fees (which for the 1st time is $25 and thereon $35), interest and the amount due for the next month, $50 (which really is’nt due until the 19thof Aug) that comprises the total amount due $90. - * *Private Label Credit Card issuers/banks usually do this – Big picture: if the bank has 100 accounts, and collects the $50 = $5000 x interest x 3weeks.(I leave it to your imagination to figure out the amount of money literally 'contributed' to these companies!)
· If your payment due date is the 1ST or 2ND and your paycheck comes in on the same date it will be wise to post date a check for the 1st or 2nd and mail it out at least 10 days before the due date. Even if the check arrives early it cannot be cashed until the date it is made out for. Alternatively you can post date a pay-by-phone for the due date which will coincide with your pay check. *There is NO service charge for payments by phone.
· Oftentimes the CC Statement comes in with little or no time to make the payment, or not at all. It occurs more with new accounts where the 1st statement usually comes in after the due date. * You can, in this case request for a waiver/credit of the late-fees which should be complied with and will reflect in the next statement. Keep CC information ie; Billing Address, email ID, Telephone #’s, current to avoid unnecessary charges. If you have opted for electronic bills, check the ‘spam’ folder if you do not find a statement in your inbox.
· Check your statement regularly! If your minimum amount due is $40 and you send, in all good faith, $30, it is credited but with the late fees and your minimum amount due will now move up to more than $40, and you will not be aware if you do not check your statement. (On line if you opted for electronic bills). This happens when you have set up an on line payment ,automatic, through your bank.
· Another area that you need to pay attention to is that when you make a payment, let’s say a pay-by-phone, the account is to be credited and the account is deemed ‘current’. But usually debt collectors would mention that the account will be current as soon as the funds clear the bank, which is incorrect. In other words all recurring charges must stop, but do they?
10(a) General Rule. (Frank-Dodd Act)
1. Crediting date. Section 1026.10(a) does not require the creditor to
post the payment to the consumer's account on a particular date; the
creditor is only required to credit the payment as of the date of
receipt.
2. Date of receipt. The “date of receipt” is the date that the payment
instrument or other means of completing the payment reaches the
creditor. For example:
i. Payment by check is received when the creditor gets it, not when
the funds are collected. (Ref: Consumer Financial Protection Bureau)
1. Crediting date. Section 1026.10(a) does not require the creditor to
post the payment to the consumer's account on a particular date; the
creditor is only required to credit the payment as of the date of
receipt.
2. Date of receipt. The “date of receipt” is the date that the payment
instrument or other means of completing the payment reaches the
creditor. For example:
i. Payment by check is received when the creditor gets it, not when
the funds are collected. (Ref: Consumer Financial Protection Bureau)
“A system of periodic Quality Assurance reviews, the scope of which
includes, but is not limited to, reviews of training materials and scripts, as
well as real-time monitoring and recording of telemarketing and customer
service calls in their entirety, consistent with applicable laws;
Review policies and procedures for products with features that may
inhibit consumer understanding or otherwise pose heightened risks of
unfair, deceptive, or abusive practices..” (Ref: Consumer Financial Protection Bureau)
includes, but is not limited to, reviews of training materials and scripts, as
well as real-time monitoring and recording of telemarketing and customer
service calls in their entirety, consistent with applicable laws;
Review policies and procedures for products with features that may
inhibit consumer understanding or otherwise pose heightened risks of
unfair, deceptive, or abusive practices..” (Ref: Consumer Financial Protection Bureau)
· When making automatic payments on line or using your bank info. on the automatic telephone payment machine make sure you counter check after the entry is made to see if the system has updated the payment info. correctly. Alternatively check with the bank to ensure the payment is scheduled to come out correctly. This way you can avoid the extra charges.
· When making on line payments always schedule the date for the payment to clear your bank. In the event you do not put a payment date, the system will take the next due date by default and you will end up paying the interest which is calculated on a daily basis.
· Few merchants issue PLCC cards by default (merchants/stores that do not accept payments) Amazon, Gap, Banana Republic, Old Navy etc., While filling out applications, store attendants/cashiers request some form of identity. Most give the drivers license or another debit/credit card which is then used to swipe the address/information . Consumers sometimes misunderstand this for a payment being made and do not pay attention to the follow-up calls or statements from the merchant. Now according to the FDCPA/FTC the merchant (CC issuer/bank) is not authorized to call until a certain period of time or the bill is for a stipulated minimum, So if you make a purchase of $20 then you will probably be called 2 months later and your bill will then be: $20+$20LF+$35LF+Interest as applicable. This leads to a gross inflation of the bill with all the extra charges added. Even if disputed, you will still end up paying a lot more than you normally would, because the maximum that a bill collector can do is to waive a late fee, and that’s not much when compared to the bill! (Waiver/s will always be the least amount on the bill)
· Make the minimum payment required each month as mentioned in your statement. (Even a dollar less will attract a late fee as it will reflect as a partial payment) with all extra charges applicable.
We will look at other Payment Options and Debt Consolidation in the next PR.
To raise Financial impropriety issues (PLCC, Mortgage, Personal, Student Loans etc.) you may contact/refer:
http://www.consumerfinance.gov/ (Consumer Financial Protection Bureau)
· JUL 19
· JUL 18
· JUL 17
You can reach me
Mercutio.peters@gmail.com
Need some quick cash? http://www.anrdoezrs.net/click-7083480-10952407
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