Search
 

Connecticut Banking Commissioner Warns that Free Check in the Mail May Come with Costs

HARTFORD, Conn. - State Banking Commissioner John Burke is cautioning consumers not to be in such a hurry to cash unsolicited checks sent to them by their credit card company. The checks are real, he advised, and if cashed, the money belongs to the consumers, but the price consumers may...

By Staff Writer | Updated on March 23, 2004

HARTFORD, Conn. – State Banking Commissioner John Burke is cautioning consumers not to be in such a hurry to cash unsolicited checks sent to them by their credit card company. The checks are real, he advised, and if cashed, the money belongs to the consumers, but the price consumers may wind up paying could be much higher than the amount of the check. Burke used the example of one major credit card company that recently mailed actual $4 checks to their customers . Cashing the checks enrolled a consumer in a program that claimed to offer money-saving benefits on purchases at major retailers. If the consumer fails to cancel this membership within a 30-day trial period, a first year’s membership fee of $139.95 is automatically charged to the consumer’s credit card account. “I am concerned that consumers will simply cash checks they receive in the mail without full knowledge of the consequences. The act of cashing one of these checks establishes an agreement between a consumer and their credit card company, and I want to be sure that the consumer knows exactly what that agreement means,” said the Commissioner. He added that these types of solicitations usually focus on the benefits of the program “and not on the exorbitant member fee charged to those who cash the checks. Even solicitations from your own credit card companies should be studies carefully.” He advised consumers to read the details of any solicitation they receive and be aware of the benefits and the costs involved before accepting the solicitation.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.