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| 5/4/2007 8:31:00 AM | Email this article • Print this article | Credit card hassle 'aggravating'
Jim Brazda
Reporter
Washington Countian Norma Foshee did it exactly like she was supposed to. To protect herself from excessive credit card fees, she made charges on her credit card, and at the end of the month she attempted to pay off the entire balance on her Juniper credit card.
But problems ensued when her check was a little late getting to the company, even though she mailed it the same day she received the bill.
She was notified by phone the company had not received her payment, so she told the customer service representative she would stop payment on the check she had mailed and make the payment over the phone. She even talked her way out of the "fee" for paying over the phone and faxed proof that she had mailed the original check on time. The company representative told her with the proof, she would not have a $39 late fee charged to her account.
That should have been the end of the matter, Foshee thought. But little did she know at the time, miscommunications within the company were to cause her a month full of headaches.
First, she checked back a few days later to make sure the card was paid off, only to find she was still being charged a late payment fee, which she said she was told would be removed.
After talking with another customer service representative, she was told the late fee would be dropped.
Later, she tried to use the card to make purchases for Easter, but found it had been declined due to a company policy that rendered the card unusable for 15 days after a late payment had been received.
"I've never heard of such a thing," Foshee said.
About a week after this, she called the company back only to find she was being charged a $29 return check fee because Juniper had finally received and cashed the check she had sent - and stopped payment on -before making the payment over the phone. On top of this, even though the late fee was taken off her statement, the company was charging her $4.40 interest for the late fee.
Angry, she wanted to be done with the company, pay off the card in full and cancel it. Even though she disputed the fees levied against her, she made the $33.40 payment and asked for her account to be closed.
But instead of receiving a letter confirming her account had been closed, as she had requested, she received another statement, asserting another $29 fee.
"It's just real aggravating," Foshee said.
No doubt all who read this will sympathize with Foshee's woes.
"Common sense tells you this is crazy," said Lisa Cameron, director of education at Credit Advisors Foundation in Omaha. "But it's not uncommon. Actually, it's pretty common."
The most important thing to do when thinking about taking on a credit card is to read the small print in the agreement, Cameron said. The reason it is printed so small is because there is information in there the company does not want debtors to know, she said.
Keywords such as "universal default" and "default triggers" should be red flags to consumers. These practices allow the card company to raise the interest rate on a credit card if the debtor makes a late payment on one of their obligations, such as to a utility company, she said.
"It's actually frightening how much is in the small print that we don't read," she said.
In March, the Senate's Permanent Subcommittee on Investigations held a hearing to examine credit card company practices.
"The credit card industry thrives on the confusion and powerlessness of consumers to both nickel-and-dime the average card-holder and to commit highway robbery of anyone who slips up even in the slightest," said Sen. Carl Levin, D-Mich., chairman of the committee.
Ohio resident Wesley Wannemacher testified at the hearing. Wannemacher had charged $3,200 in wedding expenses to his credit card in 2001. Over the next six years, he made payments averaging $1,000 per year toward the debt. As of February 2007, he had paid $6,300 toward the $3,200 debt; however, his statement showed he still owed $4,400.
Before the hearing, Wannemacher's creditor, Chase Bank, contacted him to forgive the debt. However, how many thousands of people will not have congressional pressure to help them deal with questionable lending practices, Cameron asked.
No new legislation has been proposed and there is not much stopping companies for imposing new fees as they see fit, Cameron said.
One company Cameron knew of had a practice of allowing customers to ask only two questions per month before charging for asking questions. The kicker: "How are you today?" could count as one of those questions, she said.
As of press time, a spokesman for Juniper Bank had not returned a message seeking comment.
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Reader Comments
Posted: Tuesday, March 10, 2009
Article comment by:
August
Rhonda, I'm sure that you are right about karma, unfortunately some people are oblivious to the lives that they impact.
Posted: Tuesday, August 26, 2008
Article comment by:
Annie Rhonda
Sounds like karma to me...I'm sure that Norma understands that.
Posted: Saturday, May 05, 2007
Article comment by:
Connie L. Nelsen
Thanks for the article Jim ... I found it informative and helpful. The director of education at Credit Advisors, Lisa Cameron, happens to be my next door neighbor (and friend) here in Omaha. She has given me advise "many" times on credit cards and dealing with credit card companies. There are so many things to watch out for , ... and this articles "should" help people to realize that.
Thanks for the info .
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