Screwing the customers, once again.

[Tracer]

Two items:

1. I’ve been doubling up on my car and home insurance, just to pay off the premiums 4 or 5 months early. Some months the balance I owe is zero, and there are no interest charges on zero.

Got a letter yesterday from Liberty Mutual saying - in effect - “Geez, by paying us too much money, you’ve avoided paying us your pound of flesh. That must stop! So, no matter how much money you fork over, we are STILL going to charge you interest - even if your freakin’ balance is ZERO.

Thanks a lot Liberty Mutual.

2. For being a “deadbeat” (someone who pays off their credit cards each month), Capital One has decided to raise my annual interest rate from 9.9% to 15.9%. Not that I care, since I don’t charge much, and pay it all off - but this is really going to hurt their customers who carry a balance.

Thanks a lot Capital One.

[meegbear]

1. But isn't interest on zero, still zero?

:shrug:

[Tracer]

7. You'd think.

Their actual wording: "...we will recalculate the remaining installments and send you a monthly bill untill your balance is paid in full. Under this plan, you would pay a monthly billing fee as long as you have a balance on your policy."

Stinkers.

[meegbear]

8. Thats Bullshit!

I have Commerce Insurance and pay in 12 easy installments, cycle starting each June, but I will be getting some extra cash later in the year. I want to pay it off then, but I will check to see what their policy is.

[momzno1]

2. WHAT???

How can they do that??
I am furious at the insurance companies because they put finance charges on the unpaid balance of a policy that is supposed to last for the entire year. They have not actually provided the entire service so how are they entitled to interest on money owed for upcoming service.
what a scam!!

[RebelOne]

3. I don't understand how you pay interest on car insurance.

I have Hartford and I do not pay any interest. Maybe it's time to switch insurance companies.

[On the Road]

9. A Lot of Companies Like GEICO

issue auto insurance in six month segments which they technically require to be paid up front. They charge interest and/or apply a monthly billing charge for customers who want to pay monthly.

Momzno1's point about not having provided the service yet is a good one, but I think they're technically covered because the policy is due upfront for six months. If they did this intentionally just to get interest and billing charges, it might still be legal, but is something of a scam.

[indepat]

4. When my bank sold their credit card business to Capital One, I canceled by

bank credit card and told the branch manager the reason why.

[Donnachaidh]

5. Liberty Mutual is horrible, always has been

Have you considered changing insurance companies? That's one IN YOUR FACE message to them. And they'd have to reimburse the money you prepaid, wouldn't they?

[yy4me]

6. When it comes to insurance, there is no good way to describe

how many ways there are to put the screws to all of us. When my current major flap with a certain company is over, I will cover it in our new Consumers Affairs Forum. Meanwhile, my advice to all. Please read your policies. Sometimes things get included in your renewals that you never knew were there. Never assume a renewal is the same as the policy you had prior to the one that will be expiring.

[onethatcares]

10. in other words,

we (the credit/insurance issuers)can change your rates or premiums for being late paying, for paying ahead of time for making more than the minimum payment at any time for not paying the minimum payment at any time, or for any reason we want to and you're screwn cause we're gonna do it anyway.

Sounds about right to me.

[Sherman A1]

11. That is pretty much their policy

but they use a whole lot more words to describe it.

[JacquesMolay]

12. We need a new Consumer Bill of Rights...

... If the Dems had any courage, this is one of the things they'd be pushing - a suite of protections from this type of bullshit, along with scrutiny of fees and late charges.