Sleazy Credit Card Come On

ehcks said:
My college ID is used to buy from the college store from my Pell grant, and my refund is on a Mastercard debit card with the college logo.

That card is on a HigherOne account.

And this is all from St. Charles Community College.

Is this wrong?
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It wasn't the card option per se that was the issue, though I'd like to see where the card company's profits all come from. The issue was sending this letter to students who had no refund due, implying they had a refund they weren't aware of and if they completed the card application they would get money. If it were an honest ad, they would have given the students information on how to check if they had refund due BEFORE applying for the card and then offering the card in a clear statement it was a credit card application even if no refund was due.


Separate false advertising (pet peeve again) came today from AAA who carries my auto insurance. In very large font on the envelope it said POLICY ENCLOSED, and in very tiny print above it said "use this envelope to story your policy". It was an ad for life insurance. The wording on the envelope was intended to trick the recipient into thinking the envelope contained policy documents when it really was no more than junk mail.

It's easy to see, one just needs to look at the postage. Policies don't come as bulk mail rate. But why do they do it if not to deceive the recipient? I don't like to do business with people who think nothing of using purposeful deception.
 
Skeptic Ginger said:
It wasn't the card option per se that was the issue, though I'd like to see where the card company's profits all come from. The issue was sending this letter to students who had no refund due, implying they had a refund they weren't aware of and if they completed the card application they would get money. If it were an honest ad, they would have given the students information on how to check if they had refund due BEFORE applying for the card and then offering the card in a clear statement it was a credit card application even if no refund was due.
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These card companies make their profits from transaction fees that vendors pay (just like with any normal visa transaction), and from selling marketing trend information (generally with identifying information redacted). And then there's the fact that they can earn "interest" (I'm oversimplifying here, for the sake of brevity) on any money they hold on behalf of other payees (just like a normal bank does). Most of these cards have ways to opt out of sharing information about your spending trends, if it's a concern, or at least limit who gets access to that data.

The other thing is that these cards do charge fees for certain things. A fee schedule should have come with the application (or at least be referred to in the documentation somewhere, if it's online or elsewhere).

Separate false advertising (pet peeve again) came today from AAA who carries my auto insurance. In very large font on the envelope it said POLICY ENCLOSED, and in very tiny print above it said "use this envelope to story your policy". It was an ad for life insurance. The wording on the envelope was intended to trick the recipient into thinking the envelope contained policy documents when it really was no more than junk mail.

It's easy to see, one just needs to look at the postage. Policies don't come as bulk mail rate. But why do they do it if not to deceive the recipient? I don't like to do business with people who think nothing of using purposeful deception.
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I agree that skeezy advertising isn't cool. It's something that I take a dim view of in my own business dealings, personal and professional alike. Unfortunately, these tactics work on the general public, so companies keep doing them.
 
tesscaline said:
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I agree that skeezy advertising isn't cool. It's something that I take a dim view of in my own business dealings, personal and professional alike. Unfortunately, these tactics work on the general public, so companies keep doing them.
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I refuse. And I've been successful in my business for over 20 years. People either want my services or they don't but I always give them straightforward information even it it includes telling them they have other options than my services.
 
Skeptic Ginger said:
I refuse. And I've been successful in my business for over 20 years. People either want my services or they don't but I always give them straightforward information even it it includes telling them they have other options than my services.
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Oh, I don't use them. I couldn't look myself in the mirror if I did. But I encounter them in my vendors (and even in my clients). And, of course, in the businesses that try to get MY money, as a private person. I've become extremely adept at reading between the lines in these sorts of advertisements, and finding all the "catches" in the deals.

Honestly, I think educating the public about how to spot shady advertisements, and how to get beneath the surface of them, is going to be the best way to combat these sorts of marketing techniques. That's why critical thinking and skepticism skills are so important. Knowing how to think about a situation in an objective and logical manner is the best way to make sure you (generic) don't get hoodwinked.
 
Skeptic Ginger said:
The email does answer one question, the university was in on it.
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Of course they were. The university sold them the list of student names and addresses. That's how this business works.

If you're really concerned about this, which it appears you are, I'd raise hell.

I mean, this isn't as bad as what Wachovia did -- it knowingly sold names, addies, and account numbers of elderly depositors to scam artists and got kickbacks as well as "fines" from the scammers for the few customers who noticed the bogus fees -- but it's still deceptive. (And I'm continually amazed at how few people know about that little episode.)

Contact news outlets in the college town... they all love exposing scandal.

Contact the student newspaper... they'll love it even more!

Contact any large associations the college gets money from.

Hit 'em hard. If you don't, they'll simply consider you part of the cost of doing business.
 
Piggy said:
Of course they were. The university sold them the list of student names and addresses. That's how this business works.
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Good point, but they sell the names/addresses of students (or else there is some other list marketers can get) and it doesn't necessarily mean the product is directly marketed by or related to the university. My son is on marketing mailing lists for credit cards that are specifically marketed to students.

Piggy said:
If you're really concerned about this, which it appears you are, I'd raise hell.
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We'll see what happens with my email. But I suspect this is a lost cause. Yes, I'm disgusted but one only has so much energy to invest in battling the wrongs in the Universe. :)

Piggy said:
I mean, this isn't as bad as what Wachovia did -- it knowingly sold names, addies, and account numbers of elderly depositors to scam artists and got kickbacks as well as "fines" from the scammers for the few customers who noticed the bogus fees -- but it's still deceptive. (And I'm continually amazed at how few people know about that little episode.)
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I did not know about this. But I'm not surprised by it.

Piggy said:
Contact news outlets in the college town... they all love exposing scandal.

Contact the student newspaper... they'll love it even more!

Contact any large associations the college gets money from.

Hit 'em hard. If you don't, they'll simply consider you part of the cost of doing business.
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I might try the student paper. Thanks for the ideas.
 
Skeptic Ginger said:
While my debit card is also a 'credit card' I was surprised when I actually used it that way once that it was no different. Instead of a bill, the money was taken out of my bank account just like when the debit card was used. Perhaps the bank just got an additional fee from the merchant that would not have been charged if I said it was a debit card when I used it.
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I had a debit card that worked this way. It had no "credit" account, just my checking, but if I told the vender to run it as a credit card as opposed to as a debit card, I got % cash back. That's because by running it as credit Chase charges the vender a transaction fee.
The worst experience I ever had was with national city (now PNC). If I ran my debit card as credit there was no charge (or kickback), but if I ran my debit card as a debit card, they charged me a fee ($2.50).
 
Ferguson said:
I had a debit card that worked this way. It had no "credit" account, just my checking, but if I told the vender to run it as a credit card as opposed to as a debit card, I got % cash back. That's because by running it as credit Chase charges the vender a transaction fee.
The worst experience I ever had was with national city (now PNC). If I ran my debit card as credit there was no charge (or kickback), but if I ran my debit card as a debit card, they charged me a fee ($2.50).
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Interesting.
 
Skeptic Ginger said:
Good point, but they sell the names/addresses of students (or else there is some other list marketers can get) and it doesn't necessarily mean the product is directly marketed by or related to the university. My son is on marketing mailing lists for credit cards that are specifically marketed to students.
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The offer you describe was mailed to a list rented to the credit card company by the university. The logo and letterhead tell you that.

Lists aren't actually sold, btw. They're rented for specific mailings. As part of the agreement, the renter receives copies of the mailing. The university knew exactly what was being sent out.

Not only that, but the details you've given indicate beyond doubt that the university was actively involved in crafting the offer.

They've got their fingers in this... up to the elbow.
 
I think it's sad that they target kids in college knowing full well their parents will wind up paying it off. My ex has set up credit cards for my two boys to help them establish credit. He uses them to buy gas so that he'll have regular payments on it for them. I think this is a good idea for younger kids.
 
Piggy said:
The offer you describe was mailed to a list rented to the credit card company by the university. The logo and letterhead tell you that.

Lists aren't actually sold, btw. They're rented for specific mailings. As part of the agreement, the renter receives copies of the mailing. The university knew exactly what was being sent out.

Not only that, but the details you've given indicate beyond doubt that the university was actively involved in crafting the offer.

They've got their fingers in this... up to the elbow.
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I bought a mailing list of medical providers when I first went into business. It was bought, not "rented". I was not supposed to use the addresses more than once, but I didn't have to return anything as one would if the addresses were rented.

I'm not saying the U did not have their fingers in this. They clearly did. I'm saying that until I got their email I had no proof. Using the logo was highly suggestive, but for all I knew they expected to use it once, and desist if challenged. That is not an unheard of tactic.
 
Skeptic Ginger said:
I bought a mailing list of medical providers when I first went into business. <snip> I was not supposed to use the addresses more than once
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That's what "renting" means in this business.

ETA: Lists can be sold, but that only happens when a company is going out of business and liquidates its house list.
 
Skeptic Ginger said:
Since when do college ID cards have purchasing power?
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I had a college ID at one Uni that had purchasing power. It had a barcode that linked to my student meal plan, and could be used in any of the cafeterias or stores on campus to buy food. It also had a chip on it that served as a debit account for other miscellaneous expenses such as copies. It could be stuck into a terminal and money 'loaded' into it. (very tempting to hack. Shame I was honest.)

Actually, come to think of it, my ID at work has purchasing power, in much the same fashion. By scanning the barcode I can borrow against my next paycheck.
 
The card companies get income from every transaction. Pretty much it's the merchant who pays. Also since the money is held by the debit card company until used, they get an interest free loan.


The University probably gets a small kickback (just like all the credit cards you can get with the imprint of various non-profits). But the biggest advantage to the university is that a lot of non-education related bookkeeping cost (and associated security and liablit problems) is offloaded onto the card company
 
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