There is a new consumer alert from the FTC about a kind of fraud called cramming.
Small charges $10, $20, $30 secretly inserted onto your credit card bill.
Small charges that add up to millimeters of dollars.
It hits consumers straight in the wallet–a $30 charge here, $40 there, buried so deep in your credit card bills, you might never even notice it.
Tens of thousands of Americans were hit with what the FTC calls fake fees, charge it by vague financial services, like Debt 2 Wealth, draining more than $24 million in all.
They steal little amounts at a time hoping consumers just don’t notice. Many of the consumers had recently applied for a payday loan or cash advance when they spotted the charge on the bill and called the toll free number next to it to complain. They entered an infuriating maze of call centers around the globe. The FTC says 20 million people a year fall victim to it. And until now, most of the charges were buried in phone bills.
Story by Cecelia Vega for ABC News
- Massive Credit Card Scam Hits One Million Consumers, Totaling $10 million
- Avoid Cash Advances on Your Credit Card
- Paying Taxes with a Credit Card
- Beware of “Grey” Charges on Your Credit Card Statement
- CitiBank Not Much Help In Understanding Credit Card Statements
- Paying Taxes with a Credit Card Is Usually A Bad Idea