Unnecessary Credit Card Protection Sold By Phone

Scam artists are trying a new way of separating Spokane-area residents from their credit card numbers, according to the Better Business Bureau of the Inland Northwest.

President Lisa Stephens said the bureau has received several inquiries regarding credit card purchase protection.

Consumers say they are being contacted by companies offering insurance against any charges made on lost or stolen cards.

The cost ranges from $49.95 to $200.

In at least one case, Stephens said, a consumer told the company he had never had such protection. The company responded by saying the consumer may not have been aware of the contract, and would have to pay $49.95 to terminate the arrangement.

Stephens said the companies peddling the insurance are really after the consumer’s credit card number, which they can use to rip off the consumer.

She said one consumer gave all but the last four numbers on his card before realizing the danger.

Consumers should ask companies offering credit card protection who they are, where they are, and their phone number, Stephens said.

“If they won’t provide written information, we would suggest not getting involved,” she said.

Also, she noted, card issuers generally cover charges made if the holder reports a theft or loss promptly. If charges are made before the loss is discovered, the holder is usually responsible for no more than $50.

Consider the liability protection that goes with a card when selecting the type and issuer, she said.

Books explain debt repair

Bad credit got you down?

Don’t fret, there’s plenty of information and advice available out there to help you deal with debt and credit problems. Here’s a selection of how-to books designed to help people start the climb back into good credit standing:

“Insiders Guide to Managing Your Credit”

By Deborah McNaughton

Dearborn Financial Pub., $15.95 (1998)

Covers how to establish credit, deal with various credit problems and how to recover from financial ruin.

“Credit Repair”

By Robin Leonard Nolo Press, $15.95 (1996/97)

Addresses, among other topics, how to get out of debt, understanding a financial credit report and how to negotiate with creditors. Leonard is an attorney who deals with personal finance and credit.

“The Fix Your Credit Workbook”

By Todd Bierman and David Master

St. Martin’s Press, $11.95 (1998)

Step-by-step guide to prioritizing debts and dealing with credit bureaus.

“The Guerrilla Guide to Credit Repair”

By Todd Bierman and Nathaniel Wice

St. Martin’s Press, $9.95 (1994)

Offers advice on how to correct a bad credit rating and take action before credit turns sour.

“Life After Debt”

By Bob Hammond

Career Press, $14.99 (1996)

This book contains a chapter devoted to do-it-yourself credit repair.

, DataTimes