I have several credit cards... And have had no problems with them whatsoever. I am one of those individuals, who makes it a point to pay on time, and to make sure that I read all of the fine print on everything before I sign. Today, I checked the mail, and sat down to browse through various junkmail and bills. Noticing I had something from Household Bank, and remembering that I had just paid my bill (2 weeks early), I curiously opened it... Especially noticing that it had the words "CHECK ENCLOSED" on the front.
Enclosed was a letter that said:
You're eligible for Moneyback Checks: A dollar for every dollar charged to your household bank credit card, up to $200.00 each year.
Cash the enclosed $5.00 check issued in your name.
Uncashed checks will expire on December 2, so please cash it today.
This check is live and can be cashed by you immediately.
Inside, there were two live checks. One in the amount of $5.00 and one for $6.75. I thought to myself... About enough for 2 or 3 gallons of gas, but what the heck; with the way the economy is shaping up, every little bit helps!
I set the checks aside and went about my day.
Later in the afternoon, my boyfriend happened to pick one of them up, flipped it over (on the back where the endorsement line is located) and began reading what was there, outloud:
"By cashing this check I agree to a 30-day trial offer in AutoVantage Enhanced. I understand that the $74.99 semi-annual membership fee will be automatically charged to my Household Bank credit card account, unless I call to cancel my membership by calling 1-866-584-2456 before the end of the trial period. I understand that I will also be charged the membership fee, in effect every six months thereafter unless I call to cancel for a refund of the unused portion of the then current semi-annual fee."
He then said to me "Um, I think this is a bit of a scam... Are you going to deposit these?"
Scam... That's putting it lightly.
You may have read near the beginning of my post where I stated that I am the type of individual who does tend to read the fine print on anything that I sign, agree to, etc. I would have, more than likely, looked at them a bit closer before running over to my bank.
Here's my complaint about this type of practice: It seems, more and more, that credit card companies (among others) are completely taking advantage of the fact, that a large number of people would have done what I did, and probably have run to depost the 2 checks, not thinking anything about it. A lot of credit card companies and banks issue rewards for using their card or account. My own bank does this when I use my debit card so many times.
The terms of the agreement, were printed underneath the endorsement signature line. When you deposit a check into your bank account, unless you plan on receiving cash back (most people probably wouldnt for such a small amount), you don't have to physically sign the check. The bank teller simply stamps "for deposit only" on the signature line for you. That being said, anyone who went to deposit these checks, would not even think to flip it over to double check that there wasn't some type of membership they would be agreeing to if they cashed the 2 checks.
So, in conclusion, I ripped them both up, and trashed them. My gripe is with the reality that there are companies that we trust, who are taking advantage of hard working Americans during a time that a lot of us are working hard to get by.
Household Bank, was a credit card that I signed up for, before I established any type of credit, and I have kept it open for 5 years now (never with a late payment). My balance stands now at about $75.00. I will be paying off my account and promptly closing my account. It is hard for me to trust a company who is "in cahoots" with other companies for this type of scam. I'm sure Household Bank reaps the benefits of this type of setup, since the costs of these memberships are charged to the associated Household Bank credit card (i. E more interest paid to them).
Thanks to all, who read my grievance, and remember... ALWAYS READ THE FINE PRINT:)
Sylver8248
murfreesboro, Tennessee
U.S.A.
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