June 3, 2008
Yesterday I wrote about the recent TransUnion class action settlement. In short, if you had a credit card, loan, or credit account in the last 21 years, you qualify and can get free credit monitoring, credit scores, or money. Well, guess what? There’s another settlement out there kicking around. As a result of Townes v. TransUnion, LLC and TrueLink, Inc., you can get 3 months of free credit monitoring if you used either of these services between December 1, 1999 and April 16, 2007. To qualify, you just have to submit an “Authentication Form” by July 22, 2008. This can be done either electronically or via mail.
In case you’re curious, the suit alleges that TransUnion violated the Credit Repair Organizations Act (“CROA”) in the course of the marketing and sales of their credit score and credit repair products. Once again, TransUnion denies any wrongdoing, but has agreed to this settlement to bring an end to the litigation.
[Via: Blueprint for Financial Prosperity]
Posted in Credit Card News, Credit Reports, Credit Scores 
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June 2, 2008
If you, like most everyone else, had a credit card, loan, or credit account anytime between January 1987 and this past Wednesday (May 28th, 2008), then you’re eligible to file a claim in a preliminary settlement of a class-action lawsuit against TransUnion.
This lawsuit, which dates back eight years, stems from allegations that TransUnion violated federal law by selling consumer profiles. TransUnion denies any wrongdoing, but has agreed to settle the lawsuit to avoid “protracted” litigation expenses.
(1) Basic relief. Free credit monitoring for six months, which gives you daily access to your credit report and credit score and 24-hour credit-monitoring service. This normally costs $59.75. Those who elect this option may get a cash payment if there’s money left from the $75 million settlement fund.
(2) Enhanced relief. An alternative enhanced set of services in exchange for a full release of claims. This options includes nine months credit monitoring, a suite of insurance scores and TransUnion’s mortgage simulator service. This option normally would cost $115.50. You won’t be entitled to any cash payment under this option.
From where I’m sitting, option #1 looks the best. While credit monitoring isn’t that big of a deal, especially with the advent of free annual credit reports you’ll get free access to your credit score and there’s a chance you might also snag some cash.
If you qualify, you’ll need to register on or after June 16th, 2008. You can either register online at www.listclassaction.com or via phone by calling 1-866-416-3470. Unfortunately, as of this writing, the website doesn’t actually work.
[Source: Seattle PI via Blueprint for Financial Prosperity]
Posted in Credit Card News, Credit Reports, Credit Scores 1 Comment »
May 29, 2008
Not long ago, I wrote about a $10 bonus from the Chase Freedom card in return for making three “blink” transactions before June 6th, 2008. I’m just updating now to let you guys know that I’ve now made my three transactions, and am just waiting for the bonus to show up.
I ended up doing my “contactless” transactions at Rite-Aid, CVS, and a BP gas station. I was actually able to work these transactions into my normal routine such that I didn’t have to go out of my way to make it happen, or spend more than I otherwise would have.
Having now used this feature a few times, I have to say that it’s pretty slick — no more worry about whether or not your credit card will swipe. Beyond being convenient, it also turned out to be quite the conversation starter, as the gas station clerk hadn’t ever seen any one
There are, of course, some security concerns (though some have suggested that these fears are overblown). If you’re among those that are worried about having an RFID chip in your credit card, stay tuned… I have an upcoming article about a brute force method for disabling the chip.
Anyway, if you have a Chase Freedom card and you still haven’t done this yet, you still have just over a week to go.
Posted in Credit Card Offers, Reward Cards 1 Comment »
May 27, 2008
I wrote the other day about the safety of RFID-based, “contactless” credit cards. In that piece, I cited another article that made a variety of claims about the security of these cards, including the fact that your data is encrypted prior to transmission.
As a followup, I just wanted to point out a NY Times article on the same subject that claims that credit cards often transmit your data unencrypted. The test described in this article was based on a sample of 20 credit cards from Visa, MasterCard, and American Express.
Unfortunately, the article didn’t actually provide details on how many of the cards that tested failed to encrypt the data, so it’s hard to determine how widespread this problem is. Moreover, that article is over two years old, and it’s unclear (at least to me) how much things have changed with regard to the RFID technology that card issuers are using. It’s also worth noting that this study was carried out by a company that specializes in data encryption techniques (RSA), so it’s not exactly unbiased.
Nonetheless, a recent article over at BoingBoing.net talked about how to steal unencrypted data from an RFID-enable credit card using just $8 worth of gear. While others have claimed that the risks associated with unencrypted data are incredibly slim, it amazes me that credit card issuers wouldn’t implement at least rudimentary security features when designing these cards.
Posted in Credit Card Facts, Identity Theft No Comments »
May 23, 2008
Hmmm… This is interesting. Remember that guy from LifeLock that was running around daring people to steal his identity? Guess what? apparently someone did.
For those of you that are unaware, LifeLock is a service that promises to protect you from identity theft — in return for a monthly subscription fee. For the past two years, Todd Davis (CEO of Lifelock) has been promoting the service by advertising his social security number and inviting would-be identity thieves to give it their best shot.
Well, after 87 attempts, someone appears to have succeeded. They got an online payday loan operation to give them a $500 loan in Davis’ name. Unfortunately for Davis and LifeLock, this revelation has spawned a series of lawsuits from unhappy customers for whom LifeLock didn’t work.
Customers in New Jersey, West Virginia, and Maryland are now suing Davis, claiming that his service didn’t work as promised, and that he knew it wouldn’t since the service had failed even him. Beyond the payday loan revelation, attorney David Paris claims to have found records of at least 20 other people applying for, and sometimes receiving, a driver’s license using Davis’ Social Security number.
Interestingly, LifeLock’s primary strategy is to set up fraud alerts with the various credit bureaus — in return for a $10 monthly subscription fee. But guess what? You can place a fraud alert on your credit record for free, and it only takes a few minutes.
Posted in Credit Reports, Identity Theft No Comments »
May 21, 2008
The following is the text of an e-mail that I recently received from a reader:
I like playing the 0% balance transfer game and investing the proceeds in an interest-bearing account. However, I’m finding it harder and harder to find any cards with no balance transfer fees or at least caps on their fees… I just haven’t been able to find any new offers with caps on the fees. Is this game essentially dead?
This is a great question, and the sad truth is that it’s getting harder and hard to find no-fee 0% balance transfer offers. In fact, as far as I’m aware, there aren’t any fee-free, 12+ month 0% balance transfer offers out there. Sure, there are lots of cards with no annual fee, and there are even some without a balance transfer fee, but those offers only run 6-9 months.
As far as the issue of capping the balance transfer fee goes, the news is somewhat better. While the industry standard seems to be a 3% fee, and many issuers have removed their caps, others have continued to cap this fee. Probably the best card issuer in this regard is Discover, who offers 0% on balance transfers for twelve months, and their 3% balance transfer fee is capped at $75.
Is the 0% balance transfer game dead? Hardly. While the increase in fees combined with the decreased yields being paid by the best online banks makes it more difficult to turn a profit, it’s certainly still possible to make some easy money.
Here’s the deal… Apply for a 0% credit card offer like the Discover More or Discover Business card. Next, get your hands on the cash from the balance transfer. Finally, plug it into a high-yield, online savings account. Assuming that you’re earning a 3% yield, the transfer fee (capped at $75) will consume your profits on the first $2500. But anything beyond that is yours, free and clear. Just be sure to stay current on your minimum payments and pay off the balance before the 0% promo period ends.
Posted in Credit Card Tips 3 Comments »
May 19, 2008
Jim over at the Journal of Healthy Living tagged me for a meme about six word memoirs. Given that I’m an overachiever, I decided to participate not once, but twice… I answered over on FiveCentNickel and then tagged myself (among others). Click here to see my original answer.
And now, without further ado…
“There’s more to life than money.”
I’m now going to tag Jeremy, Lazy Man, Madison, and Ron, and Flexo.
The rules for this meme are:
» Write your own six word memoir.
» Post it on your blog and include a visual illustration if you wish.
» Link to the person who tagged you in your post.
» Tag at least five more blogs.
» Leave a comment on the tagged blogs with an invitation to play.
Posted in Miscellany No Comments »
May 19, 2008
A few weeks back I ran across an article on The Consumerist suggesting that if you’re having trouble getting your credit card to swipe, you should lick it. As crazy as this sounds, I had an opportunity to try it out this morning, and guess what? It worked!
On my way to work, I stopped off to fill my gas tank. As usual, I whipped out my Amex Blue Cash rewards card so I could get a tasty 5% discount. Unfortunately, I couldn’t get it to swipe properly. Instead, I got a “CARD READ ERROR” message every time I tried. Rather than giving up and swiping my Chase Freedom rewards card, which tops out at 3% rewards, I decided to press on.
While rubbing the magnetic strip with a plastic grocery bag sometimes does the trick, there weren’t have any bags laying. Thus, I licked my finger, ran it down the magnetic strip, and then tried swiping my card. Bingo! It worked perfectly.
So… Next time you can’t get your card to swipe, try lubing it up with a bit’o’saliva.
Posted in Credit Card Tips 1 Comment »