Q: I recently signed up for one of those "zero percent interest" credit cards. Later, I discovered that I had been paying $47 a month for credit insurance that I don't remember agreeing to. The credit-card company says I agreed to it over the phone. How can I fight this?
— Jana Hill, Camano Island
A: This is a good example of why it's important to scan your monthly credit-card statements. Credit-card issuers are increasingly cramming extra services and fees onto credit cards that consumers may not notice.
Ed Mierzwinski with U.S. PIRG, the national office of the Washington State Public Interest Research Group, calls it "a despicable practice."
The companies hire telemarketing firms that get commissions for selling additional services or products. Many of these services are "outrageously overpriced and unnecessary," he said.
For example, consumers think credit insurance will pay off their credit card if they become sick or unemployed, or if they die. Yet in many cases it may pay nothing at all, or only the minimum monthly payment for a limited amount of time, he said.
Why pay $47 a month to protect yourself from the possibility of a minimum payment that may even be less than that?
You should insist that the company revoke all charges billed for the insurance since you signed up for the card, Mierzwinski recommends.
If the company refuses, file a complaint with the state attorney general's office (800-551-4636) and the U.S. Office of the Comptroller of the Currency (800-613-6743), which regulates national banks and their subsidiaries.
Send copies of the complaints to the credit-card company. You can also ask the company to send you the tape in which you allegedly agreed to the insurance offer, he said.
Jolayne Houtz, Seattle Times consumer affairs reporter. Have a question? Send it to heretohelp@seattletimes.com or call 206-464-2525.
