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YenAmazing – Trip To The Land of The Rising Sun

03/12/2012

We have a new travel writer on board with us. Her name is Ruth and today, she is going to tell us about her recent trip to Japan. We’ll give credit cards a break today. But since part of getting credit cards is getting sign up bonuses to be able to take trips like that, we thought an occasional post like this will “inspire” you to look for ways to get free airline tickets!

Rice, bikes, Samurai Jack… These were my husband’s thoughts as we boarded the plane which was to take us to one of our dream destinations, Tokyo.

“A great experience for sure. Which will be costing us a bundle…,” I remember grumbling to hubby before we fastened our seat belts.

Japan has always been described by many as both a charming place and an incredibly costly country. So who could blame me for being concerned that our holiday was going to be our financial ruin?!

But, of course I was just being my normal ridiculous self. Because (surprise… happy surprise!) Japan turned out to be a much, much less expensive holiday that I would have anticipated. And even more exotic than I could have ever imagined!

geisha girl Okay. So booking a flight from my country, the Mediterranean island of Malta, to fly all the way over to Tokyo was not cheap. Not at all.

But having said that, my husband and I managed to find accommodation in some of the main attractions of the Asian city at a decent price. A quick look at the internet will portray a wide variety of hotels which offer small, but clean and decent rooms on a B&B basis at reasonable prices. You don’t believe me? Try browsing!

It is becoming popular for tourists to stay in hostels which pretty much act as very unfussy hotels, whilst still offering a reception area service and free internet connection. Then there is also a particular style of hotel which has been developed in Japan, referred to as the “capsule hotel”. The tiny ‘rooms’ consist of ‘capsules’, which basically look like wide drawers. Individuals can rent out these ‘spaces’ for overnight accommodation at very economical rates. Individuals can sleep in these rectangular ‘areas’ and store away their belongings in lockers. I found that most sites advertise these ‘hotels’ as offering entertainment facilities including a television and wireless internet connection.

streets of Japan The mentioned capsules are stacked on top of one another and side by side. One can still maintain privacy thanks to a special door, or curtain, at the open end of the ‘drawer’. As a result some might say that these capsules resemble a gigantic beehive straight out of a futuristic movie. Personally they remind me of some murder series in which the detective visits the morgue so as to take a look at the corpses (or in this case, the sleeping travelers).

But enough with the macabre and onto a nicer and more appetizing subject; food.

I am a firm believer that any serious voyager has to consume the local typical gastronomy in order to fully ‘savor’ the country visited. The flavors, the aromas, the colors… These all form part of the joys of the daily distinctive life. Much to our amazement, my husband and I found out that the top restaurants in Japan offer good-value meals during the lunch hours. This offer is taken up by millions of office workers who frequent their favorite restaurants with their colleagues during their lunch breaks. It is interesting to add that such meals are served on minimalist, small plates together with chopsticks, which needless to say, act as a replacement of forks. It is also a kind of custom for Japanese restaurants to serve a bowl of rice and glasses of water complimentary with all meals.

food stalls in Japan The good news is that most foodstuff and beverages are reasonably priced. One can buy the most extraordinary, lip smacking provisions at supermarkets and food stalls, which are scattered all over the country. Furthermore refreshing drinks such as coconut milk, and healthy beverages including fresh orange, lemon, grape, carrot and beetroot juices, are sold in small plastic bottles for affordable prices. I soon learnt that some locals drink these juices with a straw from plastic bags since this is a cheaper option.

It is a fact that Japanese people are among the healthiest individuals in the world, and few of them are overweight. This is thanks to the healthy diet they consume on a day-to-day basis consisting mostly of rice, vegetables and fish. However, to my bewilderment I found that many popular American fast food chains and take-outs are growing popular with the locals. In contrast, fruit is considered as a luxurious food item. Moreover, in supermarkets, fruit such as apples and oranges are packed individually and sold separately at steep prices.

Chocolates also seem to be a rare and luxurious commodity. After an extensive search, I managed to find some ridiculously-priced bars in a store which ultimately turned out to be tasteless. So my advice to all the sweet-tooth travelers planning to visit Japan is to either stuff your luggage with your favorite nibbles, or else try iced cherries, one of the locals’ favorite desserts, which again are pretty cheap.

temple in Japan

Temple In Japan

Entertainment can also be grandly enjoyed without having to break the bank. A number of attractive events such as firework festivals are organized all throughout the year. These often offer a spectacular atmosphere consisting of professional shows and decorated ornaments and floats that make up a magical ambience. During these occasions, stands with typical games including “fish-catching” from a tiny pond, are put up. Again, it is possible to have a memorable time whilst spending very little money. Sightseeing of heritages and cultural sites such as Miyajima, the Osaka Castle, Hiroshima, the Imperial Palace, Buddhist temples and shrines, parks and Sumo Museums is possible since tickets are usually at bargain prices. However I highly discourage shopping in Japan if one is on a tight budget. Having said that, yet it is still worth visiting manga shops and flea markets even if only for the sake of simply taking a look.

Scaling Mount Fuji

Scaling Mount Fuji


A word of warning to the funds-restricted tourists! Transport is an expensive affair in all of Japan. Metros, trains and internal flights are very, very, very dear. Yet I would still recommend using the Shinkansen (which literary means “fast train”) since it is not only interesting, but also extremely efficient and comfortable.

I could go on and on about the joy of visiting this Asian country. Being constrained by time and space, I would add that it is possible to travel without having to spend a fortune and yet be able to explore one of the most remarkable and special countries I have ever visited. And here I rest my case.

At the time of writing, 1 Japanese Yen, which is the local currency, equals $0.012264.

It's Back! The British Airways Visa From Chase With A 100,000 Mile Bonus

Alright folks, the British Airways 100,000 sign up bonus is back. When the 100,000 deal came out last year, Mrs Credit Card and myself got into the act and we both got the card. The criteria to get the 100,000 miles is a little more strict than last year.

For the 2012 100,000 bonus miles deal, you will get 50,000 bonus Avios miles after you use the card for the first time. Then after you spend $10,000 within the first 12 months, you get 25,000 bonus miles. If you then spend another $10,000 (making it a total of $20,000) also within the first 12 months, you get another 25,000 miles. So in total, you have to spend $20,000 within the first year to get the 100,000 miles.

In contrast, we only had to spend $2,500 last year! So the criteria is definitely tougher. But it’s still 100,000 bonus miles. At present, this is the best sign up bonus deal in the market today (the Capital One Venture 100,000 points match just closed).

Recap: How It Worked In 2011
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Capital One Venture 100,000 Match My Miles Promotion

03/08/2012

capital one venture 100000 bonus miles application page

Last year, Capital One Venture had a 100,000 match my miles promotion and they just announced that they are having another go at it this year. The rules are slightly different from last year. But here is how it works (this applies to new applicants and cardholders of the Capital One Venture Rewards Card).

There are two criteria that you need meet to get their bonus miles.

The first criteria is that after getting your card, you need to spend $1,000 within three months. If you had participated in last year’s 100,000 bonus miles promotion, you are not eligible to participate this year.

The second criteria is that you have to send Capital One your annual statement on a travel rewards credit card you have used last year (ie 2011). Capital One will match one dollar that you spend with two “Venture Miles”. They will match up to $50,000 in annual spend. That means that if you did spend $50,000 on one of your reward cards, you will get 100,000 “Miles” in your account. It has to be $50,000 of spending on one card and not multiple cards. And you have to be the main account holder.

But even after you apply and get approved of the card, there is a little hoop you have to jump to ensure you “participate in this promotion”. After you get approved for your card, you will receive an email that will have the registration link within 7 to 10 business days. You must register within 7 business days of receiving the email.

This promotion is good until 1st May 2012 or when they have given out one billion miles, whichever occurs first.

You can apply for the Venture Card and see the promotion details here.

What Are The “Miles” Worth? – The “miles” that you earn (or rather the bonus miles you get) can be used to redeem product on Capital One’s reward program catalog. If you decide to redeem for travel, 100,000 miles gets you $1,000 in value. You can book your travel expense through Capital One’s online portal.

Details of the 2011 100k Bonus Miles Promotion

Capital One also had a 110,000 bonus miles promotion last year. After getting the new Venture Rewards Card, you had to submit a statement from an airline showing that you have 100,000 miles in your account.  Their web sites list the airlines that they are accepting statements from, basically the major US carriers or discount airline, including Southwest, Frontier, Jetblue, Alaska, Spirit, Airtran, Hawaiian, and Virgin America. You also had to spend $1,000 within 90 days

They also had the same expiration policy. They ended the offer once they have given out 1 billion miles or by May 13th 2011, whichever came first. 

How Is This Deal Different From Last Year’s? – This year, Capital One has made it slightly more difficult to get the 100,000 bonus miles. If you had spent $50,000 last year on the card that is not a problem.

Last year’s criteria did not require any spending. All you have to do was to show you had 100,000 miles in your frequent flier account. And you could have earned those miles from years ago. Or you could have earned them through signing up for one of the mega bonus miles card!

If they had used the same criteria as last year, then folks who have signed up for the Chase Saphhire Preferred 50,000 bonus miles offer and the Chase Ink Bold 50,000 bonus miles offer (both are still going on BTW) would have 100,000 Ultimate Reward points which they could have transferred to say their United Mileage Plus account. Or I could have easily met last ear’s criteria because I got 100,000 British Airways Avios miles from their 100,000 sign up bonus!

But Capital One has gotten a little smarter about this because many frequent flier card churners would have gotten their bonuses without being big spenders. But since they want proof of spending, by giving away a billion miles, it means they would have gotten new cardholders on their Venture Card who collective have spent $500 million! So they will be getting new cardholders who have a track record of spending at least $50,000 on one card and hoping that a decent enough percentage will switch to using their new Venture Card.

BP's New Pump Rewards – Devaluation Disguised As An Upgrade!

03/06/2012

If you’re familiar with the BP card and the rewards system, you’re likely aware that BP offered one of the best gasoline rewards programs available (earn 5% rebates on their gasoline). As part of a 500 million dollar marketing plan, BP has decided to give its rewards program a million dollar overhaul. This overhaul was initially supposed to have taken place two years ago but instead will become effective March 1, 2012.

As noted in BP’s press release1, this million dollar marketing plan is supposed to include “a distinctive fuel offer, improved customer experience, and a more compelling loyalty rewards program…” BP also plans on including the energy sponsorship of the U.S. Olympic Committee and Team USA as part of this marketing plan. Besides all of these other changes that BP has planned, the one new change that cardholders seem to be the most interested in is the “upgraded” rewards program.

BP’s newly launched Pump Rewards payment technology is supposed to be groundbreaking technology which allows customers to redeem cents per gallon rebates immediately by essentially rolling back the price at the pump. Not only this great benefit, but other forms of technology such as the ability to distribute rebate codes that can be used once at the pump, but also the ability to produce third party promotional cards that customers can personalize for other offers are included in the new Pump Rewards technology.

How is the New Pump Rewards Different From the Old Pump Rewards?

According to the press release, you may wonder how the new multimillion dollar marketing plan is different than the old Pump Rewards system. Better yet, you’re probably wondering if the new plan is actually an upgrade, how you will earn the rewards in the new system, and whether the BP card is still the greatest gasoline credit card on the market. Here is a quick comparison of both of the formulas and an explanation of how they work.

The Old Rebate Formula vs the New Rebate Formula

As mentioned in the introduction as well as the review on this site, the old Chase BP Visa card was one of the better if not best gas credit cards available because of the rewards program. Not only could you earn significant rewards and discounts on gasoline purchases but you could earn extra rebates on travel and dining purchases and other purchase s as well.

With the old system, within the first 60 days of card ownership, you earned 10% rebates on up to $500 worth of gasoline purchases, 4% on dining and travel, and 2% on all other purchases. After 60 days, you were able to earn 5% rebates at BP Amoco stations and 2% rebate on every $1.00 of net purchases made at retail establishments classified as Dining Airline, Auto Rental, or Lodging and also a 1% rebate on all other net purchases.

With the new BP Reward Formula, within the first 60 days, cardholders earn 25 cents per gallon for each $100 in eligible purchases. You can use this rebate on a one time purchase of up to 20 gallons. Purchases of non BP gasoline such as at other gas stations means you don’t receive a rebate. These special rewards are also not available for the standard BP card, but rather the Visa Signature or BP Visa for the first 60 days. In order to get the most from the new Pump Rewards program, you would need to drive a vehicle that could handle purchasing 20 gallons of fuel at one time. If you receive your rebates with the new Pump Rewards program in the form of an immediate price reduction, you will also receive the maximum rewards on 20 gallons of fuel. However, even if you max out what is available (which is actually unlikely) you will still be receiving approximately half of what you would have with the old Pump Rewards Program (within the first 60 days of card ownership).

After 60 days with the new BP Rewards Program, instead of the previous 5% rebate that most consumers would have received, cardholders receive a 15 cent rebate per gallon up to 20 gallons for each $100 spent. For everything else, you earn 5 cents off on up to 20 gallons. The standard BP card only offers 5 cents per gallon and not the 15 cent per gallon rebate which is available for BP Visa Signature and BP Visa cards. If you add the numbers, you’ll find that the old rewards program is better than the new after 60 days of membership as well as for the first 60 days.

And the reason because of where gas prices are today. For you to earn an equivalent of 5% rebates using the Visa signature card, gasoline prices need to be $3.00 a gallon. As you all know, we are quite a long way from that!

Other Not So Great Changes

As if earning less in rebates weren’t enough, there are also additional restrictions with the new program that make it more difficult to earn the already limited rebates. For example, rebates expire 12 months after they are earned, you have to purchase 20 gallons of gas to maximize your rebates (sorry you may have to purchase a larger vehicle for this to work out for you), and you cannot use these rebates at the pump in Alabama or New Jersey.

Although the BP Rewards Program was once the best in its league, it has now followed what other gas cards have been doing by paying rebates based off an amount per gallon rather than a percentage of the money you spend on gasoline. It is a bit admirable maybe for BP to launch a 500 million dollar marketing campaign, but consumers are already seeing how the change in the Pump Rewards system is not actually an upgrade, but a rewards program that is now barely able to stand up next to better cash back gasoline cards. The convenience that the new, immediate rebate at the pump provides to cardholders with the new BP Pump Rewards system is clearly not worth earning less in rebates and rewards.

Thomas Keller American Express Commercial During The Oscars

03/01/2012

If you were one of the millions of people who watched the 84th annual Academy Awards this year, you may have caught the American Express commercial featuring Thomas Keller. Maybe you saw the ad but had no idea it was even for American Express. In fact, if not for the Amex logo at the end of the ad you would have likely not noticed a connection. Or would you have?

Who is Thomas Keller?

In order to understand the connection we may have to figure out who Thomas Keller is, and how the small town of Yountville is significant.  Thomas Keller is most widely known as a multi-award winning chef. His restaurant, The French Laundry, in Yountville, California, has won numerous awards from the James Beard Foundation. After the success of The French Laundry, Thomas Keller and his brother Joseph Keller opened another wildly successful restaurant down the street from The French Laundry called Bouchon. Along with the award winning restaurants in the small town of Yountville and across the country, Thomas Keller has published cookbooks and assisted with his foodie knowledge in a number of movies including Ratatouille.

The Thomas Keller and the Amex Connection

Award winning dining usually means award winning waits to regular people like you and me. It is rumored that it can be quite difficult getting into any of Thomas Keller’s restaurants. The waiting list can extend for days, meaning you must call in advance. Dropping in for a bite just because you happen to be in town, is highly unlikely and it is recommended that you make your reservation 2 or 3 months in advance. Or, if you are an American Express cardholder, you are able to not only take part in special invitation only events that include restaurants such as The French Laundry, but you can also contact concierge services for assistance in getting into the restaurants easier.

However, the commercial appealed to everyone in some way. Why wouldn’t you want to visit a small cozy town like Yountville? The soothing music, the coziness of the town, the mention of farming and community and the fact that bay leaves for all of Thomas Keller’s restaurants are picked from one bay laurel tree that he planted himself are quite convincing. American Express is mentioned as a partner who shares in the same goals of community building that Thomas Keller shares. The significance of airing during the Academy Awards is still unclear to me. Are more likeminded people watching during the Oscars? Do more Academy Award watchers care about community building or are more viewers concerned with fine dining?

The connection then, is simple. As mentioned in the ad, American Express is a partner that has helped “branch out business” and is considered part of his support system. If you are familiar with fine dining, you are likely familiar with Thomas Keller’s restaurants in Yountville, The French Laundry and Bouchon. You may also be familiar with American Express and if you are not, the assistance in getting into exclusive events and restaurants such as these, along with the partnership, may be reason enough to familiarize yourself with the charge card. If you are not familiar with any of these things it’s possible this just came across as a nice, feel-good commercial.

What do you think? Were you interested in Thomas Keller or American Express after the commercial?

75,000 Bonus MR Points For Amex Business Gold – Good Only Today 2/29/2012

02/29/2012

I’ve been busy today. More so since my kids have half day school today! But I just logged into my Yahoo email account to check my mail and lo and behold, there was a 75,000 Bonus Membership Reward Points offer for the Amex Business Gold Card just for today! To get the 75,000 bonus points, you do need to spend $10,000 within four months. (see screen shot)

amex business gold 75000 one day bonus offer

Wow! Then, I went immediately to the American Express website to check if they offer was on their site. And I actually could not find it.

amex business gold page no 75000 bonus

Even after clicking on the application page, there does not seem to have any sign up bonus of any sort. So it seems that Amex is selectively advertising in different media outlets about this deal. I started surfing around and found out that Darius from Millions Miles Secrets has also written a post on this today with a link to the offer on Amex site. Here is the link

Should You Get This Deal? – Well, the simple answer is if the card suits you. The real key feature of this card is that you get triple points when you book airline tickets with the card. You also get double points on gasoline and advertising expenses.

Because of the high spend requirement, I would suggest that you get this card only if you have wanted this and can meet the $10,000 spend requirements. Any business owner that flies a lot, and has lots of advertising or gasoline expense will find this card really useful.

A prelude to Capital One’s Venture 100k Bonus Match – Last year, Capital One offered to match up to a 100,000 points (their points) if you meet certain miles threshold in your existing frequent flier account. There are rumors swirling around that perhaps this offer is coming back during March (very soon). This might be a way for your to meet those requirements to get another 100,000 points from Capital One. If you do get your 75,000 points, they can be transferred to MR’s airline partners like Delta or British Airways for example.

And if the Capital One Venture 100k match offer does happen again, then you might be in luck for another 100,000 points! (though because the exchange ratio is just 1%, it will not be worth as much as the 75,000 MR points you have gotten assuming you know how to get the best bang for the buck).

You might want to get this card if you have the Amex Business Platinum – One of the little tricks with the Business Gold Card is that you should get this card for an additional cardholder if you are Amex Plat Business holder. Why? The Amex Business Platinum Card will cost you $175 in annual fee for an additional card. But we all know that the Amex Plat (both consumer and business version), does not allow you to earn triple points on airline tickets, or double points on gasoline for example. What you could do if you have the Business Platinum is to get the Business Gold Card for yourself, and then get an additional card on the Business Gold. It will cost you $50 in annual fee. That means you are out of pocket for an additional $50 a year. But when you need to book airline tickets or charge your advertisement cost to a card, then you should use the Business Gold Card instead of the Platinum. You should link your MR accounts so everything you earn on those two cards will be linked together.

Enough Reasons – So there are your couple of reasons why this deal may make sense for you. But you have to hurry since you have a few hours left for this deal. My apologies for not spotting this deal earlier! It only appeared when I went to check my Yahoo email! Use the link in the post. And good luck.

How First Premier Bank Exploited a Loophole in the CARD Act

02/28/2012

The CARD Act of 2009 was supposed to be a bill that reigned in on unacceptable credit card practices and help protect consumers against unreasonable practices. One of the provisions of the law was that sub prime issuers cannot collect an upfront fee of more than 25% of the credit line given. Sub prime issuers (for some unknown reason) tend to give a starting credit line of $300. Prior to the CARD Act, it was not uncommon for issuers to charge fees in excess of over a hundred dollars. Now, issuers can only charge up to $75 in fees if they give a $300 credit limit. But First Premier has skirted around the CARD Act (with the aid of a court ruling) and their cards are now able to require consumers to pay more than 25% of the initial credit.

A Look Back In Past Practices – But before we examine the First Premier case, let’s look back at precisely how a typical sub prime card was marketed in the past. If you’ve had bad credit or ever knew anyone with bad credit, you may be familiar with the schemes and practices of the past that were once offered to people hoping to build or repair their credit histories. If you are not familiar, it once looked a bit like this:

Creditor guarantees a credit card, by a bank- not a merchandise card, to a person with bad or no credit. Everyone needs some form of credit card for rentals and such, and if you are in the position of repairing your credit, this is another reason you would have been happy to receive a pre-approved/guaranteed credit card offer like this.

Even better, there are fees for the card but luckily with this particular offer, you don’t have to pay anything because the fees are billed directly to your new credit card. The offer may also include a credit limit of up to $5,000 and the fees which include annual fees, monthly fees, membership fees, administration fees, etc etc, total around $200. Your optimism makes the offer seem maybe not so bad, and even quite good for someone with bad credit because:

And then you would get the card, and realize, because of your credit you were only approved for a $300 credit limit. The fees you remembered calculating (along with some you may not, because there is also a processing fee now) leave you with a limit of $50.00. If you were like a number of other people that received this offer, you also didn’t realize you only had $50.00 to charge with. Upon first using your new credit card, you likely went over the limit with your first purchase and incurred late fees and over the limit fees and are now paying for a card you will potentially never catch up on enough to use.

The CARD Act Will Set You Free

Fast forward to 2009 and the Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit CARD Act of 2009 is enacted. For creditors and providers of cards like the aforementioned, this meant a few things regarding the extravagant fees. One of the provisions of the CARD act specifically prohibits over-limit fees and “if fees in the first year exceed 25% of credit limit, fees cannot be paid from available credit”

(n) Standards applicable to initial issuance of subprime or “fee harvester” cards

(1) In general
If the terms of a credit card account under an open-end consumer credit plan require the payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened in an aggregate amount in excess of 25 percent of the total amount of credit authorized under the account when the account is opened, no payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) may be made from the credit made available under the terms of the account.

This means, if your credit limit is only $300, your fees cannot exceed 25% or in this case $75.00.

First Premier Bank vs CFPB

The key language in the provision “during which the account is opened in an aggregate amount…’’ became the verbiage that allowed certain credit card providers to find a way around the provision. In order to make up for the loss in fees, they simply created new fees such as a processing fee that is paid before the account is opened. Sneaky, but not really. As Miles Beacom, president of First Premier Bank said, “the $95 processing fee doesn’t violate the Card Act because it is assessed before the account is opened” and that the fee offsets the risk involved in giving credit to consumers considered high risk.

As an answer to such creditors new practices of charging fees before the account is actually opened, the Consumer Financial Protection Bureau (CFPB) then issued rules prohibiting credit card providers from charging fees that were more than 25% of the total limit in fees before an account was opened and in the first year of the account being issued.

Because of the new rules, July 20, 2011 First Premier Bank, incidentally one of the largest providers of the sub-prime credit card, sued the Consumer Financial Protection Bureau. The claim was that the new rules changed and expanded the CARD Act, and luckily for First Premier Bank, the Judge in the lawsuit pretty much agreed. In short, First Premier Bank (and others) are permitted to charge fees of more than 25% of the card limit, before the account is even opened.

What This Means to Consumers

Well, basically this means that First Premier Bank can charge any amount of fees to cardholders before they actually even open the account. There is no provision in the CARD Act regulating fees pre-opening of the account. And believe it or not, consumers in that specific situation are more than happy to pay them in order to get a credit card.

According to First Premier Bank, the CARD Act had already cost them $1.2 million a month in lost revenue, which also resulted in laying off 1/6 of employees (or 1800 people). Besides the effect that it had on the bank personally, or as a business, we have to admit that these types of credit cards are necessary and serve a purpose. It goes without saying that banks that issue credit to consumers with bad or no credit are taking a significant risk which many times results in a loss.

Also, as the court in First Premier Bank v. CFPB noted “First Premier does serve a unique market – customers with poor credit who rely on First Premier to acquire and improve credit” and “Credit cards like First Premier’s are also important for consumers who are trying to rebuild credit and want to obtain savings on insurance, housing, and employment.” We may not agree on the exorbitant fees that First Premier Bank (or similar) charge people all for the sake of building, acquiring or repairing a credit history, but the fact remains that there is a need for these types of cards.

As far as practices, it is up to us as consumers to read the fine print and become educated enough to know when something is potentially a bad deal for us. Many sub prime issuers stopped offering credit cards because they felt the interpretations of the CARD Act made it unprofitable to serve this market. With this court ruling, we cannot rule out the return of more sub prime issuers. Having said all that, consumers can always start off with much cheaper secured credit cards to rebuild their credit.

Beware of RoboCall Credit Card Debt Reduction Scam – AFL Financial Services Settles With FTC

02/27/2012

Telemarketers call all the time.  They call you when you’re at dinner, watching your favorite TV show, or when you’re trying to have an important conversation with someone.  Annoying? Sure, but for the most part we realize they are just trying to do their jobs. However, not all telemarketers are well-intentioned folks.  The FTC recently settled with a group of telemarketers who were swindling customers through robocalling efforts centered around debt relief.  

The claims for these types of scams are always quite substantial.  The scam in question in this federal case was run by a company that often used the name AFL Financial Services, or AFL. For $995, the consumer could get assistance from the company that could drastically reduce their credit card interest rates and thus save them “lots of money”.  However, it wasn’t long before consumers learned that the company did not actually provide any money-saving services.

The program also falsely claimed that customers should see a drastic reduction in their debt, but if they did not, they would receive a refund.  During the investigation, authorities concluded that the scam took in about $13 million from their customers, but no refunds were ever issued.

Though it is good news that this robocalling operation was shut down, there are many other robocalling scams that are operating in America and throughout the world.  Each of these scams could take in tens of thousands of customers and millions of dollars in revenue from unsuspecting customers.

How the Robocalling Scam Worked

From a customer’s perspective, the calls start out innocently enough.  As the recorded message tells you that you can lower your interest rates, most debtors begin to imagine and prepare for all of the money they will save and the changes they would be able to make to their monthly budgets, with the help of the service. One of the warning signs of the offer was that the callers usually did not know the names of the banks where the cards were, and they have little to no interest in what the rates on those cards were, but yet could still guarantee that they would lower them significantly.  In this and many similar scams, the caller is more concerned with trying to get you to pay money to get your debt diminished.

Because the plan sounds so intriguing, it is no surprise that people are drawn to it, however, you should consider what a scam sounds like and how to discern what programs are worth doing and which will likely just result in a waste of time and money. 

How to Avoid Scams When Choosing Debt Management Services

First, you want to use a program that guides you through the debt-management process.  This means that a credit counselor will show you how to negotiate with your creditors, or they will negotiate on your behalf.  If there is anything that causes a problem for consumers, it is the idea that some systems could be legitimate.  You won’t know until you try, but, when you find a program that makes sense for you, you will likely not be robocalled constantly.  This is because they are gunning for your confidence and your money as hard as possible. When you are contacted, you will also be contacted by a real person and not an answering service.

The next step is to make sure that you have done everything you can do to make the robocalling stop. Yes, you can keep them at bay by not answering the phone, but you should also find a way to get your number on the “Do Not Call” list so you will be able to ensure that unwanted companies are not calling you.

If you fear that you might get pulled in by a good-sounding scam, you should always ask a few things of the person who calls you:

When you are paying to get your debt erased, you are buying into something that is not real.  Paying for the services of a debt counselor who can show you how to eliminate and repair debt is a good investment in your financial well-being.

If you are being called when you are on the “Do Not Call” list, you can report that company to the FTC. Also, if you feel as though someone is attempting to scam you, you can report them to the FTC as well. Globally, these scams are a problem because the tough economic circumstances make it very easy for people to be susceptible to such schemes. Part of stopping these types of scams is dependent on people that report them. Many times, they go unreported because consumers are embarrassed that they were taken in. This only allows the scamming to continue.

Finally, if at any moment you feel that you are working with a company that may not be above-board, you can call on your local chapter of the Better Business Bureau to find out if there have been complaints against the company in question.  If there are not and you feel that you are in the middle of a scam, you need to ensure that you are the first to file a complaint against said company.

The only way to stop robocalling and keep yourself protected from their schemes, like the $13 million scheme that was recently settled, is to be on your guard and research companies you are not familiar with thoroughly before agreeing to doing business with them.  You should be vigilant in keeping your debt under control, but you should also be vigilant in knowing that the services are paying for are legitimate as well.

Transfer Ultimate Rewards Points – How To Benefit From It?

02/20/2012

Here’s a tip for those who have Chase rewards card. Their Ultimate Rewards program points from different cards can be combined (or rather have points transferred from one account to another). And points can be transferred to another person’s frequent flier or guest account. Here are the main features:

  • You can transfer UR points to within your different credit cards
  • You can transfer UR points to another person’s account (spouse and family members)
  • You can transfer UR points to another person’s frequent flier or guest account
  • The reason why this is important is because of the different tiers within the program for different cards. And different Chase cards have different formulas for earning rewards. The ability to combine Ultimate Rewards into one account means you can use different Chase rewards cards to boost your ability to earn more points. But first, let’s examine how the Ultimate Reward Points differ.

    How Ultimate Reward Points Differ? – There are two tiers in the Ultimate Rewards program. The lower tier version is used for the Chase Freedom&#174 Visa, Chase Sapphire and Ink Classic business cards (ie the Chase Rewards Card without annual fee). The higher tier version is present in the Chase Sapphire Preferred(SM) and Chase Ink Bold(SM) with Ultimate Rewards (which all have annual fees).

    The difference between the two versions is that with the higher tier version, you can transfer points to airline and hotel partners. Their airline partners include Continental United, SouthWest, British Airways and Korean Air Skypass. Hotel partners include Marriott, Hyatt, Priority Club and also Amtrak.

    Different Ways To Earn Extra Points – The real benefit of being able to combine Ultimate Rewards account arises because the different cards have different ways to earn extra points. Let’s look at how this works.

    The Chase Freedom&#174 Visa is a typical cash back card. You can earn 5% rebates (or rather 5 points). You can also earn extra points by shopping at the Ultimate Rewards shopping mall.

    The Chase Sapphire Preferred(SM) Card, on the other hand, allows you to earn double points on restaurant and travel expense and you get a 7% annual “dividend” for the points to earn.

    The Chase Ink Bold&#174 Charge Card allows you to earn double points on travel.

    Example of how to combine cards to max out your UR points – The best way to earn more reward points is to actually combine the Chase Freedom with the Chase Sapphire Preferred(SM) Card. Why? The reason is because you can earn more points with these two cards than with just either cards. The first way you can earn more points with Chase Freedom is their 5% rotating categories. Below is a list for the 2012 categories.

    chase freedom 2012 rotating categories

    These categories are not available on the Chase Sapphire Preferred(SM) Card. Hence, for everyday spending, the Chase Freedom&#174 Visa is the card to use. On the other hand, the Sapphire Preferred allows you to earn double points on travel and restaurants. If you travel abroad, there is no foreign transaction fees. The best perks is that you can transfer points to airline and hotel partners that we have mentioned earlier.

    Below is a screen shot of the page where you transfer points.

    transfer ulimate reward points

    Points Can Be Transferred To Spouse and Family Members As Well – There are a few ways you can transfer UR points. Firstly, you can obviously transfer points if you have different Chase reward cards. But you can also choose to transfer UR points to someone else like your spouse and family members. This is a great perk to have because you can help your family member top up points.

    Points Can Be Transferred To Other Members Frequent Flier or Guest Program – Here is probably the best perk of all. You can transfer UR points to not just your own frequent flier or guest program, but also your spouse or family members program directly from your UR account.

    Implications: You Can Allocate Points To The Right Program To Get Your Perks – Because you can transfer points to your spouse account and Ultimate Rewards has various airline and hotel partners, you can allocate your points to the right account. Let’s use an example to explain. Let’s say you have 50,000 in your United Mileage Plus account and you need 60,000 points for a flight award that you want to redeem for. But you do not have 10,000 UR points, but your spouse has. Then you can get your spouse to transfer 10,000 UR points directly into your United Mileage Plus account.

    Here’s another example. You and your spouse each have 35,000 United Mileage miles in your individual accounts. You need 60,000 miles to get your award flights. One of you have 60,000 UR points in your account. You could transfer 25,000 UR points each to both the accounts and be able to book your award flights.

    Transferring Points To Accounts With Elite Status – Another way you can make use of the UR transfer policy is to transfer points to frequent flier or guest accounts with Elite Status. An example would be that both you and your spouse have either a Hyatt or Marriott frequent guest membership. You are thinking of booking a a hotel with points, but one of you is an elite member while the other is not. The most sensible thing to do is to transfer your UR points (does not matter which account it is transferred from) to the account with Elite status so that you will get whatever perks Elite Status members get on your booking and stay with the hotel.

    Summary of Benefits – We’ve covered quite a bit of ground today, so let’s do a quick recap. Ultimate Reward points can be transferred from one card account to another. It can also be transferred from one person’s person’s account to another. You can also transfer UR points from one person’s account to their airline or hotel partners account of another person directly. This flexibility offers tremendous advantage in the way you can manage your credit card and frequent flier or guest reward program.

    Firstly, you can combine two chase cards to earn even more points. So far, the best combination appears to be the Chase Freedom and Sapphire Preferred combo. The Freedom and Ink Bold is also a good combination. The combination works because of Freedom’s rotating category and Sapphires double points payout on travel and dining. Points earned from using your Chase Freedom cannot be transferred to airline or hotel partners. But when you transfer them to your Sapphire Preferred UR account, you can transfer those points.

    Secondly, you can help your spouse, partner or family member top up their frequent flier or guest miles or points directly from your Chase accounts. You can also transfer points to an account with Elite status to do your bookings so you get the status benefits.

    This flexibility to transfer points is more of the great feature of the Ultimate Rewards program. And not every reward program allows you to do that. For example, Membership Rewards has tiers just like UR. The Membership Rewards Express is the lower tier version for their no annual fee cards like the Blue (and also the Zync). The Express version does not allow you to transfer points to the “regular MR” points for their green, gold and platinum charge cards. The regular MR version allows you to transfer points to their airline and hotel partners whereas the “Express” version does not. So, in this aspect, the Ultimate Rewards is better than Membership Rewards because it gives you so much more flexibility to earn and manage your points.

    Are Background Screening Mobile Apps Violating the FCRA?

    02/16/2012

    According to the Federal Trade Commission, a handful of mobile apps that provide background checks are being investigated for possible violations of the Fair Credit Reporting Act. (See this report: http://ftc.gov/opa/2012/02/mobileapps.shtm

    While most consumers may find these apps to be useful, the FTC maintains that if a company is going to pull consumer information for the purposes of employment screening or credit purposes for example, they must comply with the FCRA. The FCRA is designed to not only protect consumer privacy but also makes sure the information that is provided is accurate.

    However, it isn’t so much a question of whether the information provided by these mobile apps is a privacy violation, but what the companies that receive the information are using it for. How exactly is a mobile app provider able to monitor who uses the app and for what purposes? If the information is used for credit decisions or employment purposes, the FCRA requires that the consumer is notified when an adverse action is taken because of the report, such as a notification of denial of credit when based on a credit report, and the company that provided the report must be identified so the consumer has an opportunity to verify accuracy of the report (and contest if need be).

    The companies that received letters from the FTC include Everify, Inc., InfoPay, Inc., and Intelligator, Inc. which all provide some form of background check service. Here is a quick look at a few of the apps in question.

    A Look At the Apps In Question

    Some of the apps in question are made by companies that include Everify, Inc., InfoPay, Inc., and Intelligator, Inc. The specific apps include the Police Records app, Criminal Pages app, Background Checks, Criminal Records Search, Investigate and Locate Anyone, and People Search and Investigator apps. I was able to download and try out the Criminal Pages App by InfoPay, Inc.

    InfoPay, Inc. Criminal Pages App
    This app is free which compared to most background check services online seems quite miraculous and should warn us of its reliability. Immediately upon downloading the app you have to verify that you are at least 17 years of age. You also have to immediately agree to the disclosure statement which specifies examples of lawful purposes and unlawful purposes in which to use this app. In case you wondered, lawful purposes include fraud prevention, asset verification, location of criminalsm witnesses, beneficiaries or heirs, research for debt collection activities, child support enforcement and compliance with federal, state or local laws or regulations. Basically, a bunch of baloney. It’s hard to fathom that a free mobile app could assist a person in child support enforcement.

    criminal pages menu

    Included in the disclosure (which you must agree to in order to use the app) are specific terms regarding the FCRA.
    “NOTE: Criminalpages.com is not a consumer reporting agency as defined under the Fair Credit Reporting Act and the information in our database has not been collected in whole or part for the purpose of furnishing consumer reports, as defined in the FCRA. You may not use the Website or Data to establish an individual’s legibility for personal credit or insurance, assess risks associated with existing consumer credit obligations; or evaluate an individual for employment, promotion, reassignment or retention (including employment of household workers such as nannies, housekeepers, or contractors …”

    After reading through the terms, I’ll be surprised if anyone would ever use this at all? It is perhaps hardly not a surprise that we could not find the other apps that was mentioned in the FTC report.

    criminal pages terms and conditions 1

    criminal pages terms and conditions 2

    criminal pages terms and condition 3

    In fact, I’m not sure if it’s a new feature, but you have to agree to this disclosure statement before each and every search, just in case you were thinking of using the information for an authorized purpose.

    Which is all well and good, but how do the app’s creators keep this information from being used for unauthorized purposes? Simple. It doesn’t really work. Upon experimenting with the search features and repeatedly having nothing come up, it’s evident that the app doesn’t really do anything. Even including information for an inmate directly from the Department of Corrections resulted in no match. This app it appears is not violating the FCRA because it doesn’t really work. So you’re safe at least with this particular app.

    Otherwise, there does seem to be a legitimate concern here. It is possible that these apps can be used to pull background information on people in order to make decisions based on employment and credit. However, I don’t see many legitimate businesses using a free or 99 cent mobile app for this purpose. Most will stick with services that are reliable and legitimate, where there is no reason to question if the information is accurate or violates the Fair Credit Reporting Act.

    There is also no real privacy fear with these apps because for the most part, it appears that they provide information that is already public anyway. If you have access to the internet, you can already find someone and find out through public court records and the Department of Corrections, whether they have a criminal background. It seems that for now, these apps are available for entertainment purposes and may keep you busy looking up your friends and family. Otherwise, the letters sent out by the FTC are most likely serve as a warning or preventative measure in case other, more advance apps are developed in the future.

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