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SmartCredit.com Consumer Education President John Ulzheimer on Capital One’s settlement and what it means for credit card customers.
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-- in your wallet and that the Capital One card he might be entitled to part of a 210 million dollar settlement.
Due to the banks' deceptive marketing tactics we've talked about it are -- here.
Here to break it down though is John Alzheimer the president consumer education for Smart credit dot com John great to see you.
What do we know yet what is yet to break on the story.
While we don't know yet is exactly went -- get a get my money back -- understanding I did not call for the hard cross sell up any about these services Jerry is that I'd -- -- hold.
A thousand consumers they would not noted this is in the category were -- -- and hit and an enhancements -- -- And enhancement service does two things it enhances the balance on your statement and it also enhances the bottom line of the credit card -- Credit -- assures there there are very very aggressive pushing these types of products -- we now and most of the time.
They're not even home grown products missiles at a capitol lawn service they are out it was being outsourced.
Sales agents from another company were pushing it it was being fulfilled that another company and it he had to date -- -- gets a red share or -- Based on the number of sales -- to be complete -- the folks who actually pushed the sales of these products.
Are partially commission basis that you all of a sudden start seeing this conflict of interest start to appear.
Where I don't wanna -- the lead off the telephone when I'm trying to convince them to sign up for this because I will gain financially.
If I can get and it back to -- and.
Yeah why he had really -- and -- apparently I was going now with Capital One and some these.
Outsourced.
Services -- -- -- describing them is that they were pushing.
Some of these products people who are unemployed who weren't eligible for them.
So that was a big problem but the reality is that all these credit card companies do that's.
Yet that's exactly right this is not anything new it's on cap when it's taking it on the chin for a couple of days this week.
We talked about discover last year that's -- -- And it bit the reality is that is that when you sign up for credit card and you call to activate it.
It's very likely be a pretty hot solicitous sales pitch which is why I always suggest they -- -- Activate their new cars on the Internet because it's very easy to click others trying to ignore sat -- actually very Smart.
-- -- -- -- They make you listen to this big long sales -- you may say yes just that you -- -- get off the phone.
But doesn't let's drill down in this couple these services because I've actually been talking about how bad an idea some of these services are for a long time because it cost you pay for it.
It certainly more than it's worth and of course with credit card you have big protections built in from the law.
If somebody tries to steal your credit card number you don't have to today.
That's right that that's -- that's right that's fair debt I've prepared knowing act is very very aggressive.
And protects consumers ally I guarantee consumers don't know how much protection Japanese their credit card that's why I suggest credit -- -- On but.
-- did when you're paying to insurer the balance from going into default autocratic harder.
All you're doing is essentially increasing your balance more hello Vermont and what's what the consumer should be doing a man I would love -- if a credit -- assured educate people about vast.
Is that they should be taking that amount of money at their pain to ensure the balance.
And apply -- towards the balance and airport get out of the ballots so they don't have to ensure a balance.
I realize that doesn't help -- bottom line to do something silly like fact.
But what it does -- it helps keep your reputation sterling clean and it does not lead to access from the chp like what happened this week this proves what.
We can -- on the CAT -- all we want and and I'm for and it's more -- -- in some situations.
But they took a bad upside -- had a Capital One -- this week and it and it if you listen to what they're saying kind of Reading between the lines if -- -- not.
Done yet which means they're probably won't need some of the other credit card issuers were pushing these I think you'll see more -- our right to my -- John thanks for coming on.
Our.
