Author Archives: BetCrooks

What Do You Have to Do When Your Credit Card is Used Fraudulently? (Credit Card Misery: Part Two)

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For some reason, I had thought that our credit card worries were over once we signed a letter disputing the fraudulent charges to our account and replaced the card with a new one. So it was with shock I opened two large envelopes from our bank to discover still more paperwork. Were we going to be on the hook for thousands of dollars we didn’t spend?

Reviewing the Vendor Authorizations and Bills for the Fraudulent Purchases

What was in each bulky envelope was individual packets for each transaction made illegally against our card. Apparently when we refused to pay,  the credit card company asked each company involved to provide proof that we had made a purchase.

Not Every Disputed Charge Turns Out to Be Fraud

I realized as I looked through the billing reports that this is actually a necessary step. It reminded me of a billing mystery we’d faced a few months before. On that bill, there was a charge for about $1.57 payable to an online book seller. It seemed a very unlikely amount. We almost always order enough for “free shipping” so the bill should have been over $25. The listing on our monthly statement just listed the name of the vendor and a toll free number. It didn’t state what item or items had been purchased.

Luckily, saving probable embarrassment, before I took it any further the light bulb went off in my head. We had placed an order for one of our children. Most of the order had been paid for with a gift card they received from a birthday. The balance, $1.57, had to be paid for directly by credit card.

That’s an example of why the credit card company wants us to review the transaction details. What if we denied a charge by accident due to faulty memories or some mix-up about the name of a company? By reading the detailed transaction history we would have known what books were ordered for “$1.57.” Similarly, we might look through these bills and realize the name a company bills under differs from the name of the company’s website.

Causes Minor Panic

The forms requested us to review the transaction details and if we still denied making the purchases we needed to sign them and send them back. If we didn’t return the signed forms by a deadline, we were deemed to have accepted the charges as valid and they would appear on our next bill.

The panic came from the deadline. The forms were printed by the bank on June 19 but we didn’t receive them until Thursday June 27. And we had to return them by July 3. Yes, that’s right, Canada Day weekend stood between the day we got them and when they had to be back.

A phone call to the bank was somewhat calming. They said they could be faxed back from any bank branch. They also said that they usually give a bit of grace period despite what the letter said. In fact, judging by the tone of the person I spoke with, I think these types of disputes must be very common and these types of mail delays must not be unusual.

Faxed Back and Now We Wait Again

So we have faxed back our forms. Now we wait again. We’re waiting for the vendor forms for the other 1/3 of our disputed charges. They are likely still in the mail.

Will it all end well? I certainly hope so. It’s almost enough to make me stop using a credit card entirely.

Who Really Pays for Credit Card Fraud

I felt rather sick realizing how many small businesses were going to lose because of this fraud. They mailed their merchandise off to the customer in good faith. Now they have no way to get back those Apple TVs and iPod kits. Yet they have no way to get paid for them either. That’s got to hurt.

And, of course, eventually it is all of us who will be paying for this fraud. Those businesses will have to raise their prices to real customers to cover their losses. Or they will go bankrupt which will reduce price competition and again lead to higher prices.

I hope they catch the perpetrators of this crime and jail them. They have robbed from all of us and they should be the ones who have to pay for it.

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Verizon on the Horizon: Time to Dump Bell?!

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I find the stock market fascinating to watch. It’s like a giant psychology experiment being broadcast simultaneously on radio, TV, websites and podcasts. Take this week. Verizon has made some clear steps towards trying to enter the Canadian mobile phone cartel, er, business. Immediately, the share price of Bell stock plunged off a cliff. What are the Sellers thinking? Is it really time to dump Bell?

CRTC Face Slap to Mobile Telephone Companies

Admittedly, Canadian mobile phone companies haven’t had a great spring. The CRTC is starting to get just how angry consumers are with the high cost of cell phone usage, especially data and roaming usage, in Canada as compared to other countries. They brought in some rather wishy-washy rules that will be implemented over the next year or so. These rules could reduce profits for the teleco’s.

The rules say things like “cell phone carriers must unlock a phone if asked.” The rules don’t actually say they must unlock the phone for free.

Service Providers must stop locking in customers to three-year contracts. But they don’t actually say the price can’t go up on the new maximum two-year contracts.

The rules say customers can’t be charged more than a certain amount for roaming. But they don’t say the customer can get to keep making roaming calls for free. It appears the service provider can simply cut off coverage once the maximum spending level is reached.

You can see I’m a bit skeptical that the new rules will greatly reduce the profits made by cell phone and mobile data providers.

However, it sure looks like many investors are nervous about the changes. The price for BCE shares has been dropping steadily since part way through May. It’s down over $6 a share or more than 10%; $2 of that hit was caused by the Verizon announcement.

Verizon Is Coming! Consumers Rejoice! Telco’s Tremble!

When Verizon announced it had made a tentative offer for Wind Mobile panic hit the stock market. This must signal the end of the obscene profits to be made off wireless communication. Telus, Bell, and other telecom’s stock dropped sharply.

Does this make sense to you?

Verizon didn’t announce they had bought Wind Mobile. They didn’t announce they had Canadian federal government approval for the purchase. They didn’t announce they were opening business tomorrow and that they were planning to drop mobile rates by 50%. In fact, so far absolutely nothing has happened.

Will a New Player Drop Prices and Profits for Mobile Usage in Canada?

I’m old enough to remember when Walmart came to Canada. It was said that they would drive down prices all across the country.

Did they?

Maybe. I can usually find the same price or better at Canadian Tire or, previously, at Zellers.

Then Target came to town. I read through their first few flyers. Their “sale” prices were higher than the regular prices at many stores I shop at. Price comparisons done between the same items in the US and in Canada showed the Canadian prices are higher. Krystal Yee at Give Me Back My Five Bucks has some great examples.

It’s quite possible that if another cell phone company opens up in Canada that they may drop the prices by increasing competition. It’s also possible they may just join the party and enjoy the same over-inflated prices from which all the existing companies profit.

Should I Sell my Bell and Telus Stock Immediately?!

You can. It’s a free market. And you have a 50% chance of making the correct decision.

Me, I bought some Bell this week. At $2.33/share in annual dividends (which means a yield of over 5%) I’m prepared to take a risk that the Bell empire is not yet declining much less fallen.

DISCLAIMER: I’m not trained in financial matters nor am I in any way qualified to give financial advice. The BNS stock I bought is currently down almost 10% meaning I have lost about $1000 so far. Please get advice from someone who makes a profit before making your own investment decisions!

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Do you think that Ma Bell is in for a rough ride? Did you purge Telus from your portfolio this week? Please share your opinions with a comment.