May 03, 14 comments I posted this as a comment on someone else's complaint, but thought this really does deserve it's own. Several communiques via email and telephone were made to both godaddy and my bank during both the initial process and the cancellation of service. That's another sneaky thing they do, they automatically pre-select auto renew and the onus is on us to log in periodically and make sure the box remains unchecked. Customer service is well-trained in making it very, very difficult to cancel their services.
Kristy Welsh Last Updated: July 27, After the economic meltdown ofthe government has stepped in to try to regulate and oversee the business tactics of banksmortgage companies, credit card companiesand debt collectors. The CFPB was formed to Unethical credit card practices consumer protection with regard to financial products and services offered in the United States.
Prior to these regulations, card companies were "loading their credit cards with tricks and traps so they can maximize income from interest rates and fees," according to Elizabeth Warren, a Harvard University law professor who was responsible for the formation of the CFPB.
The Federal Unethical credit card practices Board has taken notice and requires issuers to disclose clearer information about rates and fees and 45 days as opposed to 15 days notice before they can lawfully raise rates.
Congress has also held hearings to investigate credit card business practices, and many large credit card companies, such as American Express, have been fined for illegal tactics. There are so many different credit cards to choose from, but only a bare minimum of the terms are likely to be reviewed by the average consumer.
And, most disclosure forms are typically written in a language only a lawyer can interpret. These card issuers may monitor credit reports for notices of late payments, and at any sign of delinquency they boost cardholder rates to the highest penalty rates. Issuers may also raise your rate if your overall debt has increased.
Nearly 45 percent of banks used universal default inaccording to the Consumer Action advocacy group. Compounding matters, many card issuers who practice universal default also charge rates based on the "first in, last out" method, meaning cardholders must pay their outstanding balances in full before card issuers will drop rates back to normal levels.
Double-cycle, Two-cycle or Double Billing. Credit-card companies are required to notify you by mail if they change your credit-card terms, including reducing your credit limit, but there is no guarantee that you will receive and read that notification in time.
Creditors are most likely to reduce your limit if they notice activities that suggest you may be in debt trouble, such as high credit charges, late payments, or applying for too much credit. In general, anything that could result in a credit-score decrease may also put you at risk for facing a credit-limit decrease.
If you are a customer with a good payment history there is a good chance they will agree to disregard the fee.
Be sure to review your card terms and conditions thoroughly; if they contain many of the questionable features, switch to a more consumer friendly card.
If you need to submit a complaint to the CFPB, here is more information on how to go about it. No Interest on Debt Paid on Time. Prohibit interest charges on any portion of a credit card debt which the card holder paid on time during a grace period.
Prohibit added interest charges on credit card debt which the card holder paid on time and in full. Limits on Penalty Interest. Prohibit interest rate hikes on a credit card account unless the card holder agrees to them at the time, and, in any event, limit penalty interest rate hikes to no more than a 7 percent increase.
Require increased interest rates to apply only to future credit card debt, and not to debt incurred prior to the increase. No Interest on Fees.
Prohibit the charging of interest on credit card transaction fees, such as late fees and over-the-limit fees. Restrictions on Over-Limit Fees. Require that card issuers must offer consumers the option of operating under a fixed credit limit that cannot be exceeded.
Prohibit charging a fee to allow a credit card holder to make a payment on a credit card debt, whether payment is by mail, telephone, electronic transfer, or otherwise. Reasonable Currency Exchange Fees. Require payments to be applied first to the credit card balance with the highest rate of interest, and to minimize finance charges.
Require interest rates linked to a "prime rate" to use the prime rate published by the Federal Reserve Board. Improve existing data collection efforts related to credit card interest rates, fees, and profits. Several major credit-card companies announced some policy changes.
Citi Card said it would no longer raise interest rates for customers who pay their bills on time, but make a late payment to another creditor i. They also announced that they would not increase interest rates or fees on a customers credit card until the card expires and a new card is issued - unless the customer pays late, exceeds his credit limit, or pays with a bad check.
Free access to your TransUnion report summary Free credit report audit on all your accounts Free score evaluation and recommended solution."Advanta Credit Card - UNETHICAL" Advanta Life-of-Balance Platinum Card Review.
Card Reviews. Comments. Add Your Own. Unfair lending practices, unethical (and I have to believe illegal) dealings and simply OBSCENE rate hikes. Where's the justice? Credit card reviews and comments are posted by user submission and do not warrant the.
The rep told me that Citibank had placed a negative mark on my credit because of Their shady, unethical, thieving business practices. They wanted me to pay off the balance. I received a letter from a G.
Goldberg Vice President of Citibank kaja-net.comg that the above referenced account is now $0. The Federal Trade Commission staff prepared this business booklet to help finance companies, retailers, and other creditors comply with the Credit Practices Rule, which went into effect March 1, This booklet tells you what the Credit Practices Rule requires, .
The practice of marketing credit cards on college campuses is becoming increasingly controversial. Critics have charged that credit card companies use unethical practices to encourage students to become overloaded with debt.
In response, many colleges now ban credit card solicitors from campus. Perhaps the best way credit card companies can improve their image is to provide specific. The NY Times has a regular column called “The Ethicist”, and it recently talked about credit card rewards.
A reader writes in and asks: When shopping at big retailers, take up the offer for a new credit card to take advantage of the, say, 10 percent discount. Unethical behavior below the organizational surface As stories of corporate malpractice, such as the endless numbers of scandals at Deutsche Bank, continue to make headlines across the world, it is clear that the issue of unethical behavior in organizations persists, bringing with it significant costs for businesses, customers and society.