Dear Consumer Ed:

I ordered an iPad from a store in Columbus.  I was told it was in stock and that I would receive it within 14 days, but I never did.  I requested a refund.  I have been waiting more than 3 weeks for the refund.  The company can’t even tell me if the check has been processed.  Can they charge my debit card prior to shipping an item?

Consumer Ed says:

It is not illegal for merchants to charge for a product before it has shipped. In general, debit card transactions are governed by the Electronic Funds Transfer Act (EFTA), which does not require debit card issuers to wait until a product has shipped prior to authorizing a transaction from your account.  That being said, your debit card provider may have a policy prohibiting the merchant from charging your account before shipment.  For example, Visa requires that merchants ship a product prior to charging any Visa debit card.  Since you used a debit card to pay for the merchandise, contact the card-issuer to find out about company policies. 

However, if your order is not delivered, you are guaranteed a refund under the Federal Trade Commission’s Mail or Telephone Order Merchandise Rule, which requires that your order be shipped within the time stated in company advertising or by phone.  If no specific time is promised, your order must be shipped within 30 days from the merchant’s receiving a "properly completed order" with your name, address and payment by check, money order or authorization to charge an existing credit account.  If the order is not shipped within the promised time, the merchant must notify you of the revised shipping date and give you the option to cancel for a full refund or accept the new shipping date.  Since you paid by debit card (this would also apply to cash, check or money order), your refund must be mailed within seven business days.  For future reference, had you made the purchase with a credit card, the merchant would be required to credit your account within one billing cycle. 

If you are unable to resolve this issue, please contact the Governor’s Office of Consumer Protection or the Federal Trade Commission (FTC).

If you enjoyed this post, make sure you subscribe to my RSS feed!

Dear Consumer Ed:

My bank and credit cards are charging me all kinds of fees that I think are too high and unfair to consumers.  Is there an agency that can get the interest rate lowered on my credit cards or help get rid of all those fees?   

Consumer Ed says: 

Credit card issuers have wide latitude in what they can charge for interest, but they must inform the customer of the interest rate. Therefore, it is important to “read the fine print” in both the original credit card agreement and in any supplemental notices. The Federal Credit CARD Act of 2009 only allows interest rate increases on existing balances under certain conditions, such as when a promotional rate ends, there is a variable rate, or if the cardholder makes a late payment. Interest rates on new transactions can increase only after the first year. You also must be given 45 days’ advance written notice of significant changes to your account, such as an interest rate hike. Once notified, you may choose to decline the rate increase, close your account, and pay off the balance at the old interest rate. Late fees cannot be more than $25 for occasional late payments, although the fees can be higher if you are late more than once in a six month period. Customers must now “opt-in” to over-the-limit fees, and those fees cannot be higher than the amount by which you exceeded your credit limit, i.e. if you go over by $15, the fee cannot be more than $15.

If you believe your credit card issuer has violated the law, you should contact the agency that regulates that bank or institution.  The Federal Financial Institutions Examination Council’s Consumer Help Center website can help you identify the correct regulatory agency.  Go to www.ffiec.gov/consumercenter and enter the name of your bank.  You might want to keep these regulatory agency numbers for reference:

• Office of the Comptroller of the Currency: 800-613-6743
• Federal Reserve Board: 888-851-1920
• Federal Deposit Insurance Corporation: 877-275-3342

If your complaint or inquiry is in reference to a credit union, contact the National Credit Union Administration at http://mycreditunion.gov

If you need help managing credit card debt, fees and high interest rates, you may want to contact a credit counseling service or debt management company. They can provide practical and legal financial advice regarding the use of credit. They can also attempt to renegotiate the terms of your credit agreements and arrange to pay off your debts. But be careful when choosing a debt management company, as not all of them are legitimate. Some may charge excessive fees, misrepresent what they will be able to accomplish, or not pay your creditors in a timely manner, which can end up making your debt problems even worse. The National Foundation for Credit Counseling can help you locate a reputable credit counseling service in your area. You can contact them at 800-388-2227 or www.nfcc.org.

Also, under Georgia's Debt Adjustment Act, a debt adjuster may not charge you a fee of more than 7.5% of the amount you pay monthly for distribution to your creditors. In addition, all funds received from a debtor, minus authorized fees, must be disbursed to creditors within 30 days. If a debt adjustment company violates these provisions, contact the Governor's Office of Consumer Protection at www.consumer.ga.gov.

If you enjoyed this post, make sure you subscribe to my RSS feed!

Dear Consumer Ed:   
 
A financing company is harassing me about an old loan on a car I voluntarily surrendered.  I've been paying them $75 a month to stay off my back, but they are relentless.  How do I make them leave me alone?  

Consumer Ed says: 

First, it is important to understand the repercussions of voluntarily surrendering your car to the dealer or financial institution that carries your loan. The owner of your loan will sell your car at auction for what is often much less than what it would bring at a retail sale. You may be faced with large fees as well.  After your car is surrendered and sold, you become responsible for the difference between the amount you owed on your loan at the time the car was surrendered, plus fees, minus the amount for which the car sold at auction.  What happens is that you are now paying for a car that you can no longer drive and will never own.
 
Because you have had a prior business relationship with this financing company, calls are still permitted by the company even if you have your telephone number added to the "do not call" database.  If it is a debt collector who is calling on behalf of your financing company, the Fair Debt Collection Practices Act ("FDCPA") may apply.  The FDCPA does not apply to a creditor collecting its own past-due accounts; so, if the company calling you is the company that lent the money to you, the FDCPA does not apply.  However, if the company is using a third-party debt collector to contact you, you have the right to request that they not contact you again.  This request must be in writing.  Make sure to include a statement that your letter is not meant in any way to acknowledge that you owe this or any other sum of money.  Mail your letter certified, requesting a return receipt so that you have proof of its delivery.  Once the agency receives your letter, its employees can only contact you one more time to explain what action they plan to take.  After that, they must not contact you.
 
You can also request that a collection agency not call you at your place of work.  Send the same type of letter discussed above and instruct the debt collector to refrain from contacting you at work.  By law, the debt collector must comply.  Remember, though, stopping the contact does not stop the debt-collection activities.  The debt collector can still send negative information to the credit-reporting agencies, sue you in court, and garnish your wages or file a lien against your property once a judgment is issued by the court.

If you enjoyed this post, make sure you subscribe to my RSS feed!