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BEN'S MAILBAG: GETTING YOUR MONEY BANCK FROM A BANKRUPT COMPANY ON YOUR CREDIT CARD -- PLUS -- IS TRAVEL INSURANCE WORTH IT?-- PLUS -- WHAT DO YOU THINK ABOUT AUTO-DRAFT/PAYMENT PLANS? -- PLUS -- HOW DO I GET A FREE EARPIECE FOR MY CELLPHONE?
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Question #1:
Dear Ben: I ordered a custom sofa and chair from a company in July 4, 2001, paying a $600 down payment on my credit card. On July 20th, the company filed for Chapter 11 [bankruptcy] protection. I didn't find out about it until recently; I found out that the store is now completely out of business and they're liquidating their inventory/all remaining assets. Can I have my credit card company reverse the $600 charge? I've already paid them in full!
– Jacque T., via e-mail
Dear Jacque: Relax! You’re covered on several fronts. You’re insulated by your credit card company...and this is a great example of the positive side of consumers utilizing credit cards (properly). Contact your credit card company via phone, but to make sure your request is well-documented, follow-up with a letter detailing the chain of events that unraveled last summer. Shoot a copy of your bills that contain these charges, and clearly highlight all charge dates; your letter should detail why the credit card company needs to credit your account all charges connected with this transaction, as well as any interest charges levied. Clearly state how you want the money credited back to you: If you don’t use the card very often, request a refund check to be issued immediately. Otherwise, be prepared to do your holiday shopping with a big carry-forward credit on your account!
Question #2:
Dear Ben: Like everyone else, I'm financially paranoid about traveling. I feel the skies are safer, but am more concerned about the economic risks involved with planning a trip right now. Do you have any advice?
– Karen in Los Angeles
Dear Ben: My wife and I want to travel over the holidays but are afraid of our trip being negatively impacted by the current state of world affairs. I already canceled two business trips in mid-September; although the airlines were pretty forgiving then, recreational travel a few months later might not carry that same level of understanding. What do you think about insuring the trips?
– Jerome in Dallas
Dear Karen & Jerome: You're smart to want to reduce your travel-induced exposure, but don't let it paralyze you from getting on with your life. Thankfully, the airline industry has woken up and decided to dramatically reduce airfares to entice consumers back into the friendlier (and safer) skies. There's lots of great on-line resources to help you find a great airfare deal; my picks include www.bestfares.com, www.travelocity.com and www.orbitz.com. The hotel and travel car industries are also helping make you "a deal-you-can't-refuse" on rooms and rental car rates that represent some really incredible bargains. My favorite one-stop resource for this area is www.hotels.com. And if you're determined to reduce your travel anxiety (and minimize potential financial losses) even further, consider spreading the risk by purchasing travel insurance. I've never been a fan of this type of insurance in the past, but today's travel landscape dictates a new attitude. Consider buying travel insurance that not only pays (traditional) accidental death benefits, but also covers trip cancellation costs or "stranded away from home" costs that are almost impossible to predict. Travel Cancellation and Travel Interruption coverage is increasingly popular and covers a range of non-refundable expenses. Before you spend a bunch of dough on travel insurance, check your homeowners/renters, automobile and medical insurance policies first, as well as any additional coverage you may have through one of your precious metal [gold or platinum] credit cards if you pay for the trip using one of these. Bottom line? Make sure you're not duplicating coverages you already have but aren't aware of. Want more information? www.bendover.com/safetravel.asp
Question #3
Dear Ben: I keep getting propaganda in my monthly statements from companies (the latest arrived this morning in my electric bill) wanting to "make my life easier" by setting up a free, Automatic Bank Draft payment plan. What do you think?
– Wally in Fort Worth
Dear Wally: I'm receiving the same offers, but I'm not jumping through any hoops to sign up. First off, I'm not a fan of bank drafts, period. I've seen too many instances of bank draft-induced headaches over the years: From double-drafting (oops!) that can cause overdrafts and additional service charges–to financial brain-damage caused by banks failing to discontinue "standing drafting orders" on demand. With growing levels of uncertainty in our national and local economies, it's important for you to maintain as much control over your money and the timing of all disbursements from your accounts as possible. While I recognize that certain services require bank drafts (health insurance premiums come to mind), I recommend you stay away from these types of payment mechanisms. If you want to allow certain creditors to draft your bank account for payment at your discretion (like for a credit card account), I'm okay with this. It's pretty simple to set-up on-line and most importantly, keeps you in control of the timing of the release of funds from your bank account.
#4: Closer Question From Debbie For Ben:
Hey Ben...A few months ago we were talking about the debate of having the right to talk on your cell phone while driving, and you said back then to expect the national cell phone companies to make some moves that would put driver's attention on the road instead of on the cell phone in their hands. Do you have some news on this?
Answer: A few months ago when the flurry of "let's ban talking on cell phones while we drive" movement was in full force, I told you to prepare for the cell phone industry to begin making a variety of hands-free devices available to insure the ongoing legality of talking-and-driving. I was almost right: AT&T Wireless, the third-largest cell phone company in the nation takes the customer service lead by announcing last month that they're providing hands-free earpieces at no cost to its subscribers. They began sending coupons for free earpieces to customers with their monthly bills last month; if you didn't get yours, call the toll-free customer service number on your bill. (And keep your eyes on the road!)
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