Credit Card Caution

[Yampa Bob]

Go to bed online. 

[WGL]

 I don't think it is safe to bank online.  I never wanted a debit card, because I thought it was a direct line to empty my bank account.  A credit card protects my bank account because they pay the seller & I pay the credit card company.  If I have a dispute with a seller, my credit card company helps.  I think of PayPal as a protection from giving my credit card number to every Tom, Dick & Harry on eBay, & I have PayPal-credit card company-me between my bank account & sellers who are not well-known, reputable companies.
  So far, during a 1 1/2 years of use, I've had no problem with PayPal.  I once had a late payment on the credit card, resulting in interest & a late payment fee.  The bill was either didn't reach us, or we misplaced it.  After what I've read here, I'll be checking the date due on our credit card statements from now on. 

[Atlantic Central]

My wife and I have a number of credit cards, all used like cash and paid in full each month. And, they all have different closing dates and due dates. Never heard of them all being the same time each month?  Some have longer grace periods, some shorter, but they are all well known large providers and we have seldom if ever had any problems.

I use paypal for ebay and have a seperate checking account just for that and have a paypal credit card.

I use my credit cards on line but only with known companies. I do no "banking" online. With many compaines I prefer to place my orders by phone if they offer that service.

No problems yet, no interest or late fees paid, no lost or stollen credit info,

Sheldon

[Jim Banner]

Anyone considering PayPal should read this entire document.

http://en.wikipedia.org/wiki/PayPal

Good advice but hardly reason for not using PayPal.  PayPal is obviously still having some problems laying a new path through the mine fields of finance.  The laws to guide their way are still being written, as so often happens with new businesses that don't quite fit the moulds  of existing businesses.  The fact that PayPal was taken over by eBay is actually to the consumers' advantage.  The owners of eBay don't want to lose their golden egg by having PayPal turn into a rotten egg.  If their being overly cautious leads to too many frozen bank accounts then the eBay business will start to suffer.

Personally, I have no problem with a relatively new financial business being cautious, even overly cautious.  Look where the lack of caution got the old, experienced financial institutions.  A problem with PayPal could, at most, set me back a couple of hundred dollars.  But this sub-prime debacle looks to cost every man, woman and child in the US more than a couple of thousand dollars each. 

[Yampa Bob]

Here is another scam that is being widely circulated by mail.

You will probably receive a letter that states:

"Computer tapes containing your personal information were lost while being transferred to an off-site storage facility by our archive services vendor."

It's bunk.  The letter goes on to say that the only way to find out what records were lost is to visit a web site and enter a "unique single-use activation code" which is listed in the letter.  You are actually enrolling in another "Free Credit Report" plan.

The firm is legitimate, listing the Federal Trade Commission and the 3 national credit reporting companies.  I called the FTC to complain about the scare tactics used, they said they were aware of these letters but could do nothing about them. In fact, the representative was no help and was rather rude on the phone.

There are companies, advertising their "identity protection" plans on TV and in letters, that are getting rich off of identity theft.  It's pretty sad when firms make money off criminal actions,  and the misfortunes of others.

I have filed an official complaint regarding these letters, and have also contacted my Congressman.  Please do the same if you get the letter, but DO NOT visit the given site or enter the activation code. Keep the letter for evidence.

[Yampa Bob]

As a follow up on this, I received a letter from the Comptroller of the Currency in Texas, who investigates complaints.  They contacted the billing bank in California, the bank later wrote me stating they would not consider any of my suggestions, including adding a postmark on the envelope.  They claimed all statements are sent on the 25th, but didn't reach us until the following 9th and the due date is the 10th or they add a $40 late charge. Give me a break. 

The final straw was when they told me that if the balance is paid in full each month, they only allow a 15 day grace period.  If you make a partial payment they allow a 20 day grace period.

I destroyed the one card I had, and now have a debit card from our local bank.  No monthly statements, no delays or late charges, a pin number known only to us, and if the card is lost or stolen, we are not responsible for one cent of illegal use of the card.  The bank assumes any and all losses.

Credit cards have been the financial ruination of many families. My advice is, cut them all up and get a bank debit card. I call it "a bank in my wallet".