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3 Common Credit Card Balance Transfer Complaints

By Edited May 21, 2016 0 0

Complaints About Credit Card Transfers(52327)

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For many cardholders, a credit card balance transfer is a practical way to manage debt. Credit card balance transfers involves transferring the balance on your account to a lower interest card. This type of credit card offer is often promotional and is typically good for about six months. However, if you're in the market for low interest balance transfer credit card offers, there are some common complaints associated with balance transfers that you need to consider.

Unauthorized Credit Card Balance Transfers

According to complaints posted on Consumer Affairs.com, unauthorized transfers are not uncommon. Telemarketers often call you, the cardholder, with low interest balance transfer credit card offers. Despite your refusal of the offer, unethical telemarketers initiate the balance transfer to their credit card and then bill you for the balance on your new account. According to consumer reports, disputing the debt and refusing to pay only gets them deeper into debt, as companies often apply late fees.

Offers to Negotiate Lower Interest Rates

Anther type of credit card balance transfer complaint involves an offer to negotiate a lower interest rate on your card balance. The telemarketer often emphasizes how much you could save with a lower interest rate. In exchange for the service, the telemarketer generally asks for an upfront fee, often of approximately $900.

Moreover, the telemarketer often sets up a three-way call to request a lower interest on your behalf, which is something that you can do yourself. The telemarketer transfers your credit card balance to another credit card without your consent, regardless of whether your creditor grants the lower interest or not. Such telemarketers misrepresent themselves. They lead you, the consumer, to believe that they are a debt management company and don't inform you of their intention to transfer your account balance to a different credit card.

Undisclosed Fees

Low interest balance transfer credit card offers attract cardholders because they often offer a 0 percent annual percent rate (APR). To make it more appealing and convenient, you might receive a checkbook after activating your card. However, if you choose to use the checks to pay off debts, your statement will likely reflect a one-time balance transfer fee per transaction. Additionally, some companies also charge a cash-advance transaction fee. The fee typically applies regardless of whether you obtain the cash over the counter, at an ATM or by check. Often, the consumer only learns about such fees after reading the fine print on the credit card agreement or reviewing the monthly statement.

In summary, never pay for a service without researching it first. Never give your credit card or checking account number to anyone over the phone unless you initiate the contact. If you're a victim of credit card fraud, attempt to get a refund. If your attempt fails, dispute the charge with your credit card company, according to Banrate.com. The Fair Credit Billing Act protects your right to dispute any charges for services not received or authorized transactions. If the telemarketer succeeded in getting you a lower interest rate, you'll have a tougher time proving your case, says Bankrate.

Copyright © 2011 Ana Jackson. All Rights Reserved. Reproduction in whole or in part constitutes plagiarism, is illegal and strictly prohibited.

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