Sky's the limit on credit card interest
Credit card debt is one of the worst kinds of debt to have. Interest rates can be astronomical. It used to be that the “thumb breakers” on the street corner were the only ones loaning money and charging outrageous interest rates. The U.S. had laws against usury. No more. The laws were repealed in 1978.
Have you ever noticed that all your credit card bills seem to get mailed to South Dakota, Nevada or Delaware? Why do many national credit card issuers run their businesses out of South Dakota? These states have no cap on interest rates. How about Idaho? The Idaho usury laws were repealed by the Legislature in 1983, so there is no cap on the interest you can be charged. Now the legal rate is whatever both parties, the credit card company and you, agree upon.
“It seems that all of the credit card companies are located in states with either no usury law or the highest interest rates in the country,” wrote Margaret C. Jasper, author of “Credit Cards and the Law.” “Personally, I have been complaining about this and wish Congress would enact some type of federal usury law to stop this predatory lending. This would truly help consumers who are in debt.”
In other words, BE CAREFUL. You have no protection from rates that a short time ago were illegal.
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ONLINE PHARMACIES: There’s a world of difference between online pharmacies. You can potentially save a lot of money by using the right online pharmacy, or you can open yourself up to massive credit card AND identity theft if you don’t choose wisely.
Here’s the key: If you carefully check out online pharmacies, online or in a well-known publication like AARP or the Wall Street Journal, or with the BBB, call up and find out what they charge for your favorite prescription. Alternatively, if you get an incoming call, offering you big savings on a prescription — HANG UP!
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MISSING CHECK: First, if you find you’re missing a check in your checkbook, look around thoroughly. Sunday I couldn’t find my cellphone and it was right in front of me on my desk (full disclosure: my desk is usually a mess!), and my wife actually baked her reading glasses on the cookie sheet when she was making a batch of cookies for our granddaughter! In other words, look around BEFORE putting yourself in a panicked state of mind, and throwing your bank into a state of crisis.
Check in and around and behind the check register, on the floor and in your purse and pockets. THEN — call the bank and stop payment on the missing check — immediately. Now you will be able to calm down and sleep at night. It will cost you a couple of bucks but what’s a good night’s sleep worth? The bank will notify you if someone tries to use the check. The bank will block the check from being cashed. Problem solved!
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LIBRARY COMPUTERS AND IDENTITY THEFT: In a recent article, I cautioned consumers about using the public library computer when entering their personal, private and financial information. Libraries are wonderful places, staffed by dedicated employees and volunteers. A person involved in protecting the computers at the libraries wrote me and pointed out that he was in charge of making sure the computers in our libraries were safe to use. Great!
On the other hand, no one person or staff at the library can guarantee that these computers are threat-free. Anybody who comes into a public library is permitted to use these machines. Library computers are great for research or just surfing the ’net. However, I firmly maintain my recommendation for not doing online shopping or other activities where you are required to enter personal or financial information.
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SPRING HVAC — GET IT IN WRITING: Before you let any “technician” from any heating and air conditioning company “service” your furnace or air conditioner, you should check their license and ID, Be clear what they’re going to do and a firm price for what a service call will cost you — IN WRITING!
Each year your should ask your gas or electric provider for a “Utility Use Profile.” The customer service reps at the utilities punch a button and out pops a chart, detailing your use of either gas or electric over the requested period. Never allow work do be done, regardless of how inexpensive the price, without a firm contract — signed by YOU and the company representative. The contract must include what is being done, the price, a start and stop date and a provision that no other work will be done without your WRITTEN permission.
Remember, a “bid” or email is NOT a contract.
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WHAT’S AN ANODE ROD?: Some years ago I read an article about replacing the anode rod in my water heater. An anode rod is a long rod that is screwed into the top of your water heater to protect your appliance from rusting. When the tank is filled with water, the anode rod sacrifices itself and rusts, to protect the exposed steel of the water heater, through a method called electrolysis. Any licensed, qualified plumber can help you determine if you should check on replacing the anode rod in your hot water heater. Doing so may very well double the life of your water heater.
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QUICK TIP: Keep all your exterior doors locked — ALL THE TIME. Always use the peep hole in your from door — always. Never open the door to strangers — NEVER. If you don’t have a peephole in your door — get one. And NEVER post your name at your door or on your home. Doing so is an invitation to scammers and fraudsters.
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PICIDES ARE BACK: A consumer contacted me relating an interesting rat-a-tatat loudly coming from her fireplace chimney. I told her that was one of the sure signs of spring, even though we’d just had another dump of snow on Saturday.
A member of the picides family (no, not the new neighbors), the local woodpecker, had returned to North Idaho looking for a mate. It seems the “mating call” of many species of the woodpecker family (picides) is the loud racket — an advertisement for a mate. This particular woodpecker found that by pecking on the metal cap of the chimney, he could amplify his call so it could be heard throughout the neighborhood.
My advice was this: No need to call animal control or an exterminator. As soon as nest building starts, the pecking on her metal chimney cap will stop!
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REMEMBER BILL BROOKS: “He’s On Your Side”
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I have many more tips and interesting cases that I’m working on. Call me at 208-699-0506, or email me at BillBrooksAdvocate@gmail.com or fax me at 866-362-9266. (#GoGetEmBillBrooks) You can follow me at www.billbrooksconsumer advocate.com. I am available to speak about consumerism to schools, and local and civic groups. Bill Brooks is a consumer advocate and the broker and owner of Bill Brooks Real Estate in Coeur d’Alene.