Many credit card customers are getting notices that their accounts are being closed as of a certain date.

Millions of other credit cardholders have gotten notices of changing terms, and are calling in to close their accounts.

Be aware that the software interface that is used by the credit card call center reps to answer your questions and  process requests to close accounts is not programmed to make sure that you do not lose your rewards.

So, should you receive notice that your account is being closed, or should you decide to close a credit card account, then redeem your rewards BEFORE your account actually closes, or your rewards will, automatically, be forfeited. [Read more →]

A customer called to claim that there was a major discrepancy between the rewards program that she had agreed to, and the rewards program she was getting.

She was supposed to be getting a 5% cash back reward on certain purchases, but she was only receiving the rewards on a limited amount of these purchases. Her credit card company was putting a cap on the reward so that she was only getting this deal on the first $2500 of the purchases.

CUSTOMER CONTENDS OFFER HAD NO CAP

It was her adamant contention that she had a paper copy of the promotion in her hand, and it made no mention of a cap on this reward. [Read more →]

It’s already old news – on Tuesday, May 19, the U.S. House of Representatives overwhelmingly passed the Credit Card Reform Act of 2009. The bill now goes to the U.S. Senate where it is expected to pass in short order so that President Obama can sign it into law before Memorial Day.

Washington Wire has succinctly summarized the bill passed by the House:

 
Quite frankly, these changes don’t strike me as having as far-reaching consequences as consumers may expect them to have. My analysis follows. [Read more →]

This is the third of three posts on how to avoid balance transfer disasters. Balance transfer disasters occur because of  miscommunications, between customers and credit card agents, in regard to terms. The reasons why these communication mistakes occur were discussed in post number two. 

So, how can you avoid the kind of calamitous miscommunication that makes a balance transfer pointless or, worse, damaging to your finances? [Read more →]

Part 2 of a 3-part post. Most credit card balance transfer disasters can be traced to a problem with terms. The customer thinks he has agreed to one set of terms when he has actually agreed to a different set.

Such miscommunication occurs, primarily, when customers are speaking with overseas credit card agents. Yet, why exactly does this  miscommunication occur? [Read more →]

In our current economic climate credit card customers are seeking out low-interest promotional balance transfers as a way to help them manage their debt and, in some cases, escape bankruptcy.

However, before looking to transact a balance transfer on a new card, be aware that unpleasant consequences can impact your finances should a miscommunication occur between you and the credit card agent who is facilitating your transaction.

In my article Credit Card Balance Transfers – 6 Disasters To Avoid, I detail six financial disasters that can and do occur. This 3-part article discusses how to avoid such balance transfer mishaps.

The Cause of Balance Transfer Disasters

The problems discussed in Credit Card Balance Transfers – 6 Disasters To Avoid all revolve around a customer believing he is getting one set of terms when, in reality, he is agreeing to a different set of terms which can render the balance transfer pointless or, worse, financially damaging.

Unfortunately, once funds are transferred, there is no “going back.” The terms in place on the account cannot be changed. So it’s important for every credit cardholder to try and understand the causes behind these communication mishaps in order to avoid them.

Some of the errors can be caused by technological glitches, or caused by the errors of English-speaking North American agents who should know better.

Yet, in the great majority of cases, these problems are caused by overseas agents who simply make “communication errors” and/or omit some information that the customer should have been told.

Next Post – Part 2: Why These Communication Errors Happen 

If you are juggling funds and it would help you to skip a credit card cycle, you might see if you can take advantage of a glitch that sometimes happens with some credit card company software.

This glitch can occur when you update your personal information on a credit card account.  When it does occur, the update messes  up your credit card billing cycle and creates a credit card billing problem.

If you update your address on your credit card, including changing your zip code, the agent will probably warn you that this may cause a small change to your statement and due date (less than three days difference earlier or later.)

What he doesn’t tell you is that the software being used can  cause an account to completely lose a billing cycle. This can mean, for example, that in the month following the “update” there will be no billing. Whatever you owe for that month will just get added on to the next cycle. Everyone in the business knows that this happens, but I’ve never heard an explanation as to what causes it. [Read more →]

My original intent in the post below was to write about my visit to a credit card debt reduction site in the U.K. and, specifically, about a post I read on that site’s forum.

The author is a 29-year old man who ran up debt going to school. His life is further complicated by being in relationship with a Canadian woman who is returning to Canada.

He wrote to ask for advice on how he could handle his debts from Canada if he followed her and emigrated. The U.K. credit counselor basically told him he should find a debt counselor in Canada.

But the guy was grappling with whether he should follow his partner to Canada or not.  

An idea occurred to me then that I felt spoke to his needs. I felt compelled to post it. [Read more →]

Someone I know  – who I call “Agent 0016″ to protect his identity – works inside the credit card industry.

He started telling me some of what goes on in the industry and how it works. The more he told me, the angrier I got. And then I said: ”If only people knew what you know! They could save a lot of money, couldn’t they?”

“Oh, yes,” he said.

That’s when a lightbulb went on in my head.

“How about we try to tell them?”

“Oh, I don’t know,” he said, then added:

“I couldn’t say any of this stuff in public. I’d lose my job.”

“What if we published it all under my name?” I asked. [Read more →]