Once a telemarketer has your checking account information,
it is put on a demand draft, which is processed
much like a check. The draft has your name, account number, and
states an amount. Unlike a check, however, the draft does not
require your signature. When your bank receives the draft, it
takes the amount on the draft from your checking account and
pays the telemarketers bank. You may not know that your
bank has paid the draft until you receive your bank
statement. consolidation debt mortgage
What You Can Do To Protect Yourself It can be difficult to
detect an automatic debit scam before you suffer financial
losses. If you do not know who you are talking to, follow these
suggestions to help you avoid becoming a victim: Don t give
out your checking account number over the phone unless you know
the company and understand why the information is necessary. If
someone says they are taping your call, ask why. Don t be
afraid to ask questions. consolidation debt help
Companies do not ask for your bank account information
unless you have expressly agreed to this payment method. ITS
THE LAW: Since December 31, 1995, a seller or telemarketer is
required by law to obtain your verifiable authorization to
obtain payment from your bank account. That means whoever takes
your bank account information over the phone must have your
express permission to debit your account, and must use one of
three ways to get it. The person must tell you that money will
be taken from your bank account. If you authorize payment of
money from your bank account, they must then get your written
authorization, tape record your authorization, or send you a
written confirmation before debiting your bank account. If they
tape record your authorization, they must disclose, and you
must receive, the following information: consolidation credit debt
The date of the demand draft; The amount of the draft(s);
The payors (who will receive your money) name; The number
of draft payments (if more than one); A telephone number that
you can call during normal business hours; and The date that
you are giving your oral authorization. If a seller or
telemarketer uses written confirmation to verify your
authorization, they must give you all the information required
for a tape recorded authorization and tell you in the
confirmation notice the refund procedure you can use to dispute
the accuracy of the confirmation and receive a refund. bill consolidation debt
What To Do If You Are A Victim If telemarketers cause money
to be taken from your bank account without your knowledge or
authorization, they have violated the law. If you receive a
written confirmation notice that does not accurately represent
your understanding of the sale, follow the refund procedures
that should have been provided and request a refund of your
money. If you do not receive a refund, it s against the
law. If you believe you have been a victim of fraud, contact
your bank immediately. Tell the bank that you did not okay the
debit and that you want to prevent further debiting. You also
should contact your state Attorney General. Depending on the
timing and the circumstances, you may be able to get your money
back. consolidation debt quote
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Balance Computation Method for the Finance Charge . If you
don have a free period, or if you expect to pay for
purchases over time, it important to know what method the
issuer uses to calculate your finance charge. This can make a
big difference in how much of a finance charge you l pay
even if the APR and your buying patterns remain relatively
constant. See page 10 for examples of how the methods can
affect your costs. consolidation debt lending
Examples of balance computation methods include the
following. Average Daily Balance. This is the most common
calculation method. It credits your account from the day
payment is received by the issuer. To figure the balance due,
the issuer totals the beginning balance for each day in the
billing period and subtracts any credits made to your account
that day. While new purchases may or may not be added to the
balance, depending on your plan, cash advances typically are
included. The resulting daily balances are added for the
billing cycle. The total is then divided by the number of days
in the billing period to get the average daily
balance. business consolidation debt
Adjusted Balance. This is usually the most advantageous
method for card holders. Your balance is determined by
subtracting payments or credits received during the current
billing period from the balance at the end of the previous
billing period. Purchases made during the billing period
aren included. advice consolidation debt
This method gives you until the end of the billing cycle to
pay a portion of your balance to avoid the interest charges on
that amount. Some creditors exclude prior, unpaid finance
charges from the previous balance. consolidation debt interest
Previous Balance . This is the amount you owed at the end of
the previous billing period. Payments, credits and new
purchases during the current billing period are not included.
Some creditors also exclude unpaid finance charges. consolidation debt refinance
Two-cycle Balances . Issuers sometimes use various methods
to calculate your balance that make use of your last two
month account activity. Read your agreement carefully to
find out if your issuer uses this approach and, if so, what
specific two-cycle method is used. consolidation debt finance
If you don understand how your balance is calculated,
ask your card issuer. An explanation must also appear on your
billing statements. Other Costs and Features Credit terms vary
among issuers. When shopping for a card, think about how you
plan to use it. If you expect to pay your bills in full each
month, the annual fee and other charges may be more important
than the periodic rate and the APR, if there is a grace period
for purchases. However, if you use the cash advance feature,
many cards do not permit a grace period for the amounts due
even if they have a grace period for purchases. So, it may
still be wise to consider the APR and balance computation
method. Also, if you plan to pay for purchases over time, the
APR and the balance computation method are definitely major
considerations. consolidation debt plan
You l probably also want to consider if the credit
limit is high enough, how widely the card is accepted, and the
plan services and features. For example, you may be
interested in affinity cards all-purpose credit
cards sponsored by professional organizations, college alumni
associations and some members of the travel industry. An
affinity card issuer often donates a portion of the annual fees
or charges to the sponsoring organization, or qualifies you for
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Special Delinquency Rates. Some cards with low rates for
on-time payments apply a very high APR if you are late a
certain number of times in any specified time period. These
rates sometimes exceed 20 percent. Information about
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applications or in solicitations that do not require an
application. consolidation debt management
Receiving a Credit Card Federal law prohibits issuers from
sending you a card you didn ask for. However, an issuer
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Issuers also may send you an application or a solicitation, or
ask you by phone if you want a card and, if you say yes, they
may send you one. Cardholder Protections Federal law protects
your use of credit cards. Prompt Credit for Payment. An issuer
must credit your account the day payment is received. The
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To help avoid finance charges, follow the issuer
mailing instructions. Payments sent to the wrong address could
delay crediting your account for up to five days. If you
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Refunds of Credit Balances . When you make a return or pay
more than the total balance at present, you can keep the credit
on your account or write your issuer for a refund if it
more than a dollar. A refund must be issued within seven
business days of receiving your request. If a credit stays on
your account for more than six months, the issuer must make a
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Errors on Your Bill. Issuers must follow rules for promptly
correcting billing errors. You l get a statement
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If you find a mistake on your bill, you can dispute the
charge and withhold payment on that amount while the charge is
being investigated. The error might be a charge for the wrong
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