Hi everyone, I have a question involving my DD who is almost 19. She is trying to establish a good credit rating with just the very basics but it seems she already has problems before even getting started.

She has had a savings account for many years that we had opened for her. Recently she attempted to open a checking account and was told the information she provided didn’t match what was on file and couldn’t open an account at this time. We both just kind of sat there looking stupid for a minute going ……..”huh”. What exactly does that mean?

Also she applied for a small credit card from Capital One and was approved it seemed like but 3 days after she received her card she got a phone call from them(on a Saturday to boot) asking her about several different addresses (2 which we lived at in the past 20 years, 1 where her grandparents lived- raising her dad, and uncles- for 30 years before retiring and 2 we have never heard of). Now they tell her her account has been suspended pending verification because AGAIN her information doesn’t match what is shown on file ! She has to contact the SSA Monday AND go to any bank and submit her ID for verification for Capital One !!!

What in the world is going on?! She hasn’t even started and she is running into so many problems she is really upset and so am I !!!! What can she do? Thanks for any input and helpful advice.

My sister had this happen to her at 16 when she got her driver’s license.

1) Is your daughter’s name similar to any of your relatives?
2) As in my sister’s case, the driver’s office here recycles driver’s license numbers. So the person who previously had her number wrote hot checks so my sister couldn’t write a check. She had to go to all the credit bureaus to get it straigtened out.

It’s worth checking into… Read your note. That’s the credit reporting bureaus for you. Their word is Law. I have the same problem, them having two additional address for me, that I have never lived at, one state I have never even been to. I phoned them and there was not a thing I could do to get it changed, even after writing a letter to the bureau.

Hope you find an answer for your daughter.

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Earlier we were having a discussion about using debit cards for things like hotels and rented cars. As luck (bad) would have it I had to rent a car from Enterprise and stay in a hotel. Enterprise pulled out $300 “deposit” for a $26 rental and the hotel took out $100 in addition to the price of the hotel room.

This is ridiculous and I wish the government would look into this one. I’m using a card that they can determine immediately whether I can pay it or not whereas someone with a credit card (especially American Express) may never be able to pay the bill.

I just read an article about this very thing today in a Reader’s Digest issue. It is probably at your local library (recent issue) if you want to read it. Article is entitled Debit Card Dirty Tricks or something close to that.

Look what Dave Ramsey says:

It mentions that the HOLD companies, gas stations, car rental places, hotels, etc. put on your debit card can cause you to bounce checks, incur very expensive fees and the way that Debit cards are set up vs. Credit cards, you are SOL re: fees and charges unles the bank / credit unions wants to reverse the fees charged.

You are correct on this matter. I went To Chicago for training and my company put me up in a hotel. My boss used his corporate card to pay for my hotel room and for my train ride but when I checked into the hotel they needed my personal credit card/debit card to put a hold on it for any incidentals. They did make me aware of what they were doing but I was not aware they would do this until I checked in. Luckily they released the hold the day I check out.

I was told it may take 5-7 days for the money to go back into my account. I blame the hotel on this and will be writing a letter soon.

Hotels, gas stations, etc. are well known for placing a block or HOLD on your amount debited. They are notorious for doing it. You get shafted when they do it and you have other things that you need to buy.

I am working on figuring out how much cash I need from one pay to the next, so I can visit our local bank/credit union and get it out on payday and eliminate the need for using the DEBIT card. We got socked with several fees and it really ate up a lot of money really, really fast.

I was reading in the same publication that you should use a credit card (not a debit) when you are traveling, renting a car, booking a hotel because of this HOLD thing going on. Then, use CASH for your meals and gas, to avoid dings to your account.

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Paying the lower interest rate and paying the card off sooner sounds great. What’s the catch though? CC companies do not do such things out of kindness. What’s in it for them? If you are late what happens? Do you go back to the 32% or penalty rates/fees/etc.?

I ask because life happens. You could lose hours or something else could come up and you not make the payments.

Also, in order for it to work, you should keep making the larger payments that you are currently making, even with a new lower interst rate, so your debt goes away faster.

Look with eyes wide open before jumping on this.

you may also want to be sure there is no annual fee, or introductory fee? etc…

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I did a google search on the terms you used in your post, “Debit Card Dirty Tricks”. And found some interesting reading. The first post comes from the UK and give free information to become aware of credit card company tricks. The next post comes from the US and offers to give the same information, in exchange for purchasing a book that gives you information you can get free from the internet. The third post writes about things to watch out for when using cards at the gas pump.

debit cardsIt is amazing that debit cards do these things. It does not surprise me. Banks are constantly AGAINST the consumer, but all the while encourage us to use the DEBIT cards, use CREDIT cards, get paid via DIRECT DEPOSIT, then don’t let you have your money right away. They set up loans so they get paid first, no matter what else is happening in your life. Make it a paperwork hassle to stop a direct deposit if something comes up. And it goes on and on and on.

We are going back to CASH. No DEBIT cards (banks made over $1 Billion “With a B”) in fees from “courtesy” overdraft fees last year alone encouraging people to use these things. We don’t use CREDIT cards either. Doing our best to rid them from our lives.

Thanks for the info. Everyone should be aware.

Another thing – the way that banks do withdrawls before deposits, causing your account to run up additional fees. Or clearing checks in the highest amounts first, then the lowest, so you incur additional fees. Even if you are $0.01 over, it can cost you a fee of $20-40 depending on your bank/credit union. More credit unions operate like banks these days anyhow. Much less “consumer oriented” if you ask me.

My response to this is to fight back! I am in a very tight financial situation right now and expect to have some NSF fees. I am going to ask my banks to WAIVE them! It costs NOTHING to try. And go to the banks executive offices or file complaints with bbb’s too. I find this strategy quite effective.

Нou know, it actually costs me more to extract cash out of my bank than to use debit cards- they charge nothing for debit card use, not sure what these “tricks” are people are talking about, but to get cash you either have to pay an ATM fee or a “teller” fee.

Good luck everyone! Not all banks charge a fee to get your money out. Mine does not as long as I use their atms or their tellers.

This is really a matter of knowing what you are doing and knowing how much you have in your account, and not going over that.

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