Check from Credit Company Enrolls you in Program

Author: rain
Joined: 05 Dec 2004
Posts: 16
Posted: Sat Jan 08, 2005 2:02 pm
Post subject: new marketing ploy: cheques from banks for cc ?

I got this cheque from I don't know which bank, it says its an affiliate of first state bank. Apparently there are no penalties if I cash it, and if I cash it I'm either applying for a cc, or enrolling my cc in some program to get savings. 1st month free. Has anyone heard of this before? What's this about? R

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Author: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 29 Jul 2004
Posts: 137
Posted: Sat Jan 08, 2005 5:51 pm
Post subject: Re: new marketing ploy: cheques from banks for cc ?

rain wrote:
I got this cheque from I don't know which bank, it says its an affiliate of first state bank. Apparently there are no penalties if I cash it, and if I cash it I'm either applying for a cc, or enrolling my cc in some program to get savings. 1st month free. Has anyone heard of this before? What's this about? R

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Author: NightStar
Forum Moderator
Joined: 07 Nov 2003
Posts: 2393
Location: Illinois
Posted: Sat Jan 08, 2005 6:39 pm

Usually that kind of deal is coming from a personal finance company, that you cash the check and then are committed to a loan from them, and usually at a very high interest rate, I know cause I did this twice with AVCO and Beneficial - better believe I paid them puppies off right quick too.

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Author: sage
Joined: 13 Nov 2004
Posts: 17
Posted: Sat Jan 08, 2005 7:32 pm

I get $5 - $15 checks all the time, usually to sign-up for a some sort of credit card "life/disability" insurance or "credit protector" program. Typically the first 30-60 days is free after which the fee is a % of any balance you carry. If you read the fine print and are careful to cancel within the time frame given, you can pocket the money. They're counting on most people forgetting about it and letting it become a standard part of your monthly bill. If you do cash the check, keep all documentation and be sure to write down the confirmation code they give you when you cancel. Don't risk it if you are riding a 0% balance transfer offer: 1) the balance you carry at 0% is likely pretty large and if you somehow miss the cancel date, the fee could be large too and, 2) even if it's a flat monthly fee (e.g. credit protector) it will be behind your 0% and will accrue interest. You won't be able to pay it off until the 0% balance is fully paid.

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