It’s a week into the new laws being passed against banks and credit agencies. It’s still too early to decide just how much the CARD Act will hinder banks’ sneaky ways. However, we’ll focus on the much needed improvements and how they’ll serve credit card and banking consumers. It’s one step forward for the moment, and Main Street needed to feel something added legally in their favor for once by Congress.

We’re most excited about the fees banks will occur if they breach the new act. They’ll have to pay anywhere between $500-5000 per illegal occurrence. Talk about returning the favor! So, if you notice any breaches from your credit or banking service, report it!

Outlining the Details of the CARD Act:

1. Rates & Fees: Those random excuses to raise credit fees in the name of “just because”…Yeah, bye-bye…for now. Now there are set rules in place that indicate the reasons for an increase in your interest rate, which are:
- Signing an agreement that states your interest rate is/was variable rate
- Signing an agreement that had or has a promo/teaser rate
- The minimum payment hasn’t been paid in 60 days.
- You cannot be charged an over-the-limit fee unless you opt-in.
2. Statements: They must be sent out at least 21 days before payment is due.
3. Payments: Three great things:
-  Have a consistent due date each month
-  Must count as paid on-time if paid before 5 PM.
- Allow payments to count within due date if sent the next business day after a holiday
4. Age Restrictions: All individuals under 21 will not be allowed to sign up for a credit card unless:
-  They have a co-signer
-  They can verify that they receive enough income to maintain credit
5. Prepaid & Gift Cards: Gift cards, gift certificates, prepaid cards, or store gift cards cannot be charged additional fees, with the exception of a initial issuance fee.

Check out this chart from Bill Shrink.com for a visual:

Find the best credit cards at BillShrink.com

It’s important to stay in tune with the needs of your customers. Otherwise, you may end up with a situation like Essence Magazine. Apparently, the magazine targeted towards African American women has gotten so out of touch with its consumers that they’re canceling their subscriptions at record levels. So what has happened? There’s a post on the Essence website (page link no longer working) from an employee that gives the details:

Dear sisters,

Low level Essence staff members and interns are being forced to go on this website and post supportive comments about this issue and Essence Inc. in general. Since this issue came out Essence has been getting hundreds of calls from irate subscribers. There have been more canceled subscriptions in the last week or so than in last quarter put together. Senior management believes if they can have it look as if support for the cover is evenly split than they can stop the bleeding so to speak. They believe changing the perception is critical.

At a meeting last week focus on damage control was paramount, it was determined that Essence would release a statement acknowledging the controversy, no apology, just an acknowledgment via the website. This decision was soon nixed by a very senior person who is offended by all the negative reaction the cover is receiving and will not “placate a bunch of angry black women who don’t know what century this is” (exact words)

What this senior person has agreed to, is to allow Angela, Jeannine or Michelle to do interviews with other black media outlets. Ms. Taylor has also been asked to participate in damage control due to the high regard long time subscribers have for her. I don’t know the status of Ms. Taylor’s decision.

Beyond the vile, racist words spoken by this particular senior person, many readers have been in agreement that the magazine no longer meets their needs. The quality sucks. It’s out of touch with its reader base, so now they are faced with the repercussions of their actions.

Money talks. We applaud the action of these unsatisfied customers. It’s great to hear of black women making a statement through the most effective method. It isn’t often, but African Americans can mobilize and rail against brands that don’t represent their interests. It’s happened before with the brands Tommy Hilfiger and Cristal. Now Essence seems to be heading down this path and alienating its loyal and targeted audience. They’ll have to learn the hard way: never bite the hand that feeds you.

We encourage our readers to “rage against the machine” when they aren’t being treated respectfully by businesses or services. Withdraw your patronization and let your story be heard. Feel free at any point to share your experiences with Minority Fortune. We’re more than happy to give you a voice.

It’s no secret that advertising revenues are falling for most print media. So, what’s their natural reaction? It’s screwing over their readers of course!

We recently got a story in from one of our readers detailing a slap-in-the-face experience with one magazine company. Not too long ago, we also were harassed for payment for a non-existent agreement for subscriptions with O Magazine and US Weekly. So, it’s clear to us that magazine companies are getting desperate. Anyway, back to the anonymous report:

I thought this would be a good story to share with your audience because I figured if it could happen to me, it could happen to anyone. In July of 2008, I decided to purchase a 4-year subscription with Black Enterprise. Two years went by just fine. Suddenly at the end of last year, Black Enterprise began harassing me about a one-year subscription payment being due. I just knew it must have been a company glitch, so I ignored it. Next thing, I’m getting a letter in the mail from a collections agency asking me for my delinquent payment.

At that point I was pissed. How could they treat me like this? I was starting to doubt myself. As a result, I dug up my old bank statement to confirm I had paid for four years in advance. Then I called up the company and spoke to a rep. When I explained the situation, he confirmed that I did have two years left and that I had paid for my 4-year subscription already. He also confirmed that the company assumed that I’d want to be billed on a recurring basis. For what? I still don’t know. That makes no sense to me at all.

That left a bitter taste in my mouth. Why did this company want more money from me when I had paid already? Why did they send a paid customer’s information over to a collection’s company? Insanity! I almost cancelled my existing subscription. Mistakes do happen. I can understand that, but why would you bill a current account? If it happens again, I’m done.

Anon, thanks for sharing your story! After experiencing this ourselves, we know that magazine companies are capable of such half-hearted attempts of blackmail. The kicker is that we weren’t even subscribers, nor had we ever asked to be such. This is the first we’ve heard of a paid account being charged out of the blue. Congrats, magazine companies, you’ve sunk to a new low.

Have you been a victim?

If you have ever been a victim of subscription harassment, know that you’re not alone. If you find yourself in this situation, know that it can be fixed. Call up the company immediately. Be firm but polite. Explain that you’ve signed no agreements or contracts to tie you up in a subscription. Furthermore, state that you wish to cancel it. If it’s already been sent to collections, call the agency and dispute it stating the same arguments. After that, call the magazine company and tell them where to shove the faux subscription. It’s unfortunate, but you do have to make the effort to get yourself out of their invoice database. So, if you get a notice, act on it immediately.

*Interested in sharing a story? Feel free to submit one via our Contact Form. While you must provide us with a name, you can opt to have the story published anonymously with no problem.