Dealing with credit cards

There are many benefits to having a credit card. It may offer an extra layer of security when faced with unexpected expenses, and some offer rebates, gas, air miles, and other perks. Most consumers know they should spend wisely, but credit cards often lead to financial hardship and the difficulties that come with a bad credit history. Whether or not you are in the market for a credit card, our tips can help you protect your financial future.

  1. Comparison shop for a better deal. Comparing cards can be can be difficult, given the many, many fees, introductory offers, varying APRs, and credit limits available to you. NerdWallet has a useful tool that will compare over 1,000 credit offers, based on your individual circumstance.1  You can also print out a checklist to do a side-by-side comparison of credit card offers. 
  2. When shopping around, beware of secured credit cards. They may be the only option for those with bad credit, but the arrangement is like lending money to yourself. The opportunity to lend money to yourself comes with an APR and fees for membership, late payments, and/or over-limit charges.2
  3. Challenge fees. The CARD Act of 2009 prohibits companies from charging more than 25% of the credit limit during the first year. For example: if your credit limit is $300, the company many not charge more than $75 in fees. You may also be able to negotiate the reduction or forgiveness of exorbitant fees, e.g. a $25 late payment fee on a $20 balance, by calling customer service and asking to speak with a supervisor.
  4. Watch for changes to your existing accounts. The CARD Act of 2009 also requires credit companies to send notice of changes to accounts 45 days in advance. If you don't like the changes, call customer service to find out about your options.
  5. Avoid fraud. You may read more on the identity theft tip sheet, but there are a few basic ways to protect yourself from identity thieves. Keep your credit card in sight when you use it, and try avoid situations in which the seller might walk off with it, e.g. restaurant servers. Immediately call the toll-free, 24-hour service line for your credit company when you realize that your card has been lost or stolen. After you report it, you will have no liability for charges that you did not make.3
  6. Consider opting out of pre-screened credit offers. Pre-screened credit card offers can easily be stolen from your mail or your trash, giving identity thieves the opportunity to ruin your financial life. Opting out is a smart way for you to protect yourself without spending time sorting and shredding your mail. To opt out for five years, call 1-888-5-OPT-OUT (1-888-567-8688) or go to www.optoutprescreen.com.4  To opt out permanently, you must do so by mail. The optoutprescreen.com website has a form that you may print and mail to the address indicated. You may also send requests to each of the credit reporting bureaus, making sure to include your home telephone number, name, Social Security number, and date of birth. Mail requests to opt out permanently must be sent to each of the address below:

Experian
Opt Out
P.O. Box 919
Allen, TX 75013

TransUnion
Name Removal Option 
P.O. Box 505 
Woodlyn, PA 19094 

Equifax, Inc.
Options
P.O. Box 740123
Atlanta, GA 30374-0123

Innovis Consumer Assistance
P.O. Box 495
Pittsburgh, PA 15230-0495

Sources:

  1. http://www.nerdwallet.com/credit-cards/
  2. Counsumerist: http://consumerist.com/2010/05/12/rent-to-own-is-loansharking/ 
  3. http://www.consumer.ftc.gov/articles/0216-protecting-against-credit-card-fraud 
  4. FTC information on opt out: http://www.consumer.ftc.gov/articles/0148-prescreened-credit-and-insurance-offers 

Issue updates

News Release | Illinois PIRG Education Fund | Consumer Protection

Court Blocks Release of Controversial Illinois Electric Market Study

The Circuit Court of Cook County granted a preliminary injunction on Monday preventing the Illinois Commerce Commission (ICC) and its chairman Brien Sheahan from releasing the controversial NextGrid study on the future of electric utility regulations in Illinois. The court blocked the report until the conclusion of an ongoing lawsuit that alleges the study process violated Illinois law.

> Keep Reading
News Release | U.S. PIRG Education Fund | Consumer Protection

Fiat Chrysler Settlement Fails to Protect Consumers

While we are glad that Fiat Chrysler is paying something for damaging the health of Americans and deceiving customers, this settlement does not go far enough. It neither ensures these violations of the public trust won’t happen again nor makes consumers whole.

> Keep Reading
News Release | Illinois PIRG | Consumer Protection

New Guide Helps Consumers Get Great Deals on Refurbished Electronics

Illinois PIRG releases holiday guide to buying repaired or refurbished electronics with confidence they will last

> Keep Reading
News Release | Illinois PIRG Education Fund | Consumer Protection

Popular toys contain toxics and other hazards

This holiday season, watch out for dangerous and toxic toys. Illinois PIRG Education Fund’s 33rd annual Trouble in Toyland report found toxic amounts of boron in slime products and a failure by Amazon to appropriately label choking hazards. Boron can cause nausea, vomiting and other health issues.

> Keep Reading
Report | Illinois PIRG Education Fund | Consumer Protection

Trouble in Toyland

For over 30 years, U.S. PIRG Education Fund has conducted an annual survey of toys to look for safety problems. This research has led to more than 150 toy recalls and other regulatory actions over the years. Our work has also helped educate the public and policymakers on the need for continued action to protect the health and well-being of children. This year, we celebrate the 10th anniversary of the Consumer Product Safety Improvement Act (CPSIA) passing, which strengthened protections against dangerous consumer products. 

> Keep Reading

Pages

News Release | Illinois PIRG Education Fund | Consumer Protection

Court Blocks Release of Controversial Illinois Electric Market Study

The Circuit Court of Cook County granted a preliminary injunction on Monday preventing the Illinois Commerce Commission (ICC) and its chairman Brien Sheahan from releasing the controversial NextGrid study on the future of electric utility regulations in Illinois. The court blocked the report until the conclusion of an ongoing lawsuit that alleges the study process violated Illinois law.

> Keep Reading
News Release | U.S. PIRG Education Fund | Consumer Protection

Fiat Chrysler Settlement Fails to Protect Consumers

While we are glad that Fiat Chrysler is paying something for damaging the health of Americans and deceiving customers, this settlement does not go far enough. It neither ensures these violations of the public trust won’t happen again nor makes consumers whole.

> Keep Reading
News Release | Illinois PIRG | Consumer Protection

New Guide Helps Consumers Get Great Deals on Refurbished Electronics

Illinois PIRG releases holiday guide to buying repaired or refurbished electronics with confidence they will last

> Keep Reading
News Release | Illinois PIRG Education Fund | Consumer Protection

Popular toys contain toxics and other hazards

This holiday season, watch out for dangerous and toxic toys. Illinois PIRG Education Fund’s 33rd annual Trouble in Toyland report found toxic amounts of boron in slime products and a failure by Amazon to appropriately label choking hazards. Boron can cause nausea, vomiting and other health issues.

> Keep Reading
News Release | U.S. PIRG Education Fund | Consumer Protection

Popular toys contain toxics and other hazards

This holiday season, watch out for dangerous and toxic toys. U.S. PIRG’s 33rd annual Trouble in Toyland report found toxic amounts of boron, which can cause nausea, vomiting and other health issues, in slime products as well as fining that Amazon failed to appropriately label choking hazards.

> Keep Reading

Pages

Report | Illinois PIRG Education Fund | Consumer Protection

Trouble in Toyland

For over 30 years, U.S. PIRG Education Fund has conducted an annual survey of toys to look for safety problems. This research has led to more than 150 toy recalls and other regulatory actions over the years. Our work has also helped educate the public and policymakers on the need for continued action to protect the health and well-being of children. This year, we celebrate the 10th anniversary of the Consumer Product Safety Improvement Act (CPSIA) passing, which strengthened protections against dangerous consumer products. 

> Keep Reading
Report | Illinois PIRG Education Fund | Consumer Protection

Trouble in Toyland 2017

For over 30 years, U.S. PIRG Education Fund has conducted an annual survey of toy safety, which has led to over 150 recalls and other regulatory actions over the years, and has helped educate the public and policymakers on the need for continued action to protect the health and wellbeing of children.

> Keep Reading
Report | U.S. PIRG Education Fund | Consumer Protection

Lead In Fidget Spinners

While lead in toys has become less prevalent in recent years, U.S. PIRG Education Fund tested several models of one of today’s hottest toys, fidget spinners, for the toxic heavy metal. Laboratory results indicated that two fidget spinners purchased at Target and distributed by Bulls i Toy, L.L.C. contained extremely high levels of lead. U.S. PIRG Education Fund calls on Target and Bulls i Toy to immediately recall these two fidget spinners and investigate how such high levels of lead were found in these toys. Also, we call on the U.S.

> Keep Reading
Report | Illinois PIRG Education Fund | Consumer Protection

Older Consumers in the Financial Marketplace

Older Americans are at risk of harm from predatory financial behavior. An analysis of more than 72,000 financial complaints submitted by older Americans (those 62 years of age and older) to the Consumer Financial Protection Bureau (CFPB) and contained in its Consumer Complaint Database suggests that mistreatment of older Americans by financial companies is widespread.

> Keep Reading
Report | Illinois PIRG Education Fund | Consumer Protection

Protecting Those Who Serve

An analysis of more than 44,000 complaints submitted by active duty servicemembers and military veterans to the Consumer Financial Protection Bureau (CFPB) and contained in its Consumer Complaint Database finds that mistreatment of servicemembers by financial companies is widespread.

> Keep Reading

Pages

Blog Post | Consumer Protection

ID Theft & Privacy Checklists | Mike Litt

Today, we're releasing our revamped Identity Theft and Online Privacy resources.

> Keep Reading
Blog Post | Consumer Protection

Protecting Consumer Privacy in the Courts | Abe Scarr

 

Along with other consumer and privacy advocacy organizations, we filed an amicus brief defending Illinois' unique-in-the-nation biometric privacy law.

> Keep Reading
Blog Post | Consumer Protection

The most efficient policeman | Abe Scarr

This morning, Illinois PIRG Education Fund and Glidepath Development, a renewable energy and energy storage developer, filed a complaint in Cook County Circuit Court against the Illinois Commerce Commission. The complaint alleges that the Commission has violated the Illinois Open Meetings Act in its management of the Next Grid study.

> Keep Reading
Blog Post | Consumer Protection

Update on Troubled Peoples Gas Pipe Replacement Program | Abe Scarr

This morning, the Illinois Commerce Commission (ICC) approved a settlement regarding 2014 spending on its troubled pipe replacement program. The settlement itself is a good outcome for ratepayers, but a far cry from the necessary reforms to the pipe replacement program itself.

> Keep Reading
Blog Post | Consumer Protection

Public Comment on the Peoples Gas Accelerated Main Replacement Program | Abe Scarr

I prepared a public comment before the Illinois Commerce Commission, opposing their plan to approve an increase in spending on the troubled Peoples Gas pipe replacement program. The Commission denied my request to make an oral comment. They did not give me a reason why.

> Keep Reading

Pages

View AllRSS Feed

Support us

Your tax-deductible donation supports Illinois PIRG Education Fund’s work to educate consumers on the issues that matter, and the powerful interests that are blocking progress.

Learn More

You can also support Illinois PIRG Education Fund’s work through bequests, contributions from life insurance or retirement plans, securities contributions and vehicle donations.