For Immediate Release: 12/12/2008 Contact: Pedro Morillas (916) 448-4516 x112
CALPIRG’s Ten Tips for Consumers This Holiday Shopping Season
How to Avoid ID Theft:
In an increasingly high-tech marketplace, we trust businesses with more of our personal information than ever before. Yet many companies aren’t as careful as we think—concealing security breaches or questionable sales of information that make consumers vulnerable to identity theft. Fortunately there are some simple steps consumers can take this holiday shopping season to protect themselves.
1) CREDIT CARD ACCOUNT NUMBERS
Do not write account numbers on checks, outside of envelopes (California and many other states prohibit merchants from requiring you to write a credit card number on your check); avoid giving account numbers over the phone to companies you are unfamiliar with, especially when you did not initiate the call.
2) SOCIAL SECURITY NUMBERS
Ask to have an alternative number where social security numbers are used for identification purposes; resist writing your social security number on checks where possible (there is no law in CA prohibiting merchants from requesting it).
3) ADDRESS AND PHONE NUMBER
Do not give out or write your name and address down in conjunction with a credit card sale. You may want to have your name, address, and phone number deleted from marketers' lists by writing to Direct Marketing Association's Mail Preference Service (P.O. Box 9008, Farmingdale, NY 11735) and Telephone Preference Service (P.O. Box 9015, Farmingdale, NY 11735).
4) START READING PRIVACY POLICIES
Get in the habit of reading a Web site’s privacy policy. A link to the privacy policy is usually found at the bottom of the home page. This policy should alert you to how your information is shared and sold. Additionally, the policy outlines what rights you have.1
5) LEARN HOW TO TELL IF A WEBSITE IS SECURE
When you provide your credit card account number to a shopping site, you want to be sure that the transmission is secure. Look for the unbroken padlock at the bottom right of the screen. You can right click on the padlock to make sure the security certificate is up-to-date. If it is not, you should not order from that Web site. Also make sure the Web address has the letter 's' after http in the address bar at the top of the page. The ‘s’ indicates that your financial information will be encrypted during transmission.2
Don’t Fall Into The Credit Card Traps:
Credit card companies use a variety of unfair practices to trap consumers in a cycle of over-priced debt. Avoid paying the credit card company in January for the gifts you buy in December.
6) USE CREDIT CARDS SPARINGLY
Companies will try to lure you with "rewards programs" and incentives so you will use your credit card more than you have to. The debt you'll incur outpaces any additional value of what you gain in rewards. A 1% reward doesn't reduce a 25% APR very much!
7) PAY OFF BALANCES IN FULL EACH MONTH
Companies keep the minimum monthly payment low so that you’ll extend your payment over time and rack up additional debt in interest. If you can’t pay off the card in full, then make the largest payment possible each month. Always pay more than the minimum required.
8) MAKE PAYMENTS AS EARLY AS POSSIBLE EACH MONTH
Pay off those gifts early (at least 7-10 days before it is due) to avoid late charges. Also, watch for the trick of the “changing due date” (e.g., all of a sudden, your bill is due on the 25th, not the 30th). Companies routinely charge late fees which can be over $30. Worse, when you pay late, nearly half of all companies also jack up your interest rate to 25-30% APR or more!
9) TAKE ACTION YOURSELF
If you believe you are the victim of unfair interest rate charges, late fees or other penalties, or deceptive marketing, and the credit card company fails to address your complaint, file complaints with your state Attorney General’s office (www.naag.org) and the national Office of the Comptroller of the Currency (which regulates most of the biggest credit card companies and will forward your complaint to a different regulator if needed).
The Office of the Comptroller of the Currency
Website: www.occ.treas.gov/customer.htm
Email: Customer.Assistance@occ.treas.gov
Phone: 1-800-613-6743
Address: Customer Assistance Group
1301 McKinney Street, Suite 3710
Houston, TX 77010
10) DEBIT OR CREDIT?
Debit cards provide many of the same protections as credit cards, but under federal law, if your credit card is lost or stolen, you're only liable for up to $50. If your debit card is lost or stolen, the $50 limit is only applicable if you report it within two days of realizing the loss. If you don't report until between two and 60 days later, you could be liable for up to $500. If you wait even longer, you might be liable for the whole amount lost. If you have a choice go with the credit card, and follow the tips above.
1. Privacy Rights Clearing House: Privacy and the Internet: Traveling Cyberspace Safely. Copyright © 1995-2008. Privacy Rights Clearinghouse / UCAN Posted June 1995. Revised September 2008.
2. Privacy Rights Clearing House: Privacy and the Internet: Traveling Cyberspace Safely. Copyright © 1995-2008. Privacy Rights Clearinghouse / UCAN Posted June 1995. Revised September 2008.
