October 4, 2010
There must be a thousand rackets out there to fleece consumers out of their hard-earned dollars. Everybody gets ripped off. It’s nothing to boast about but I’ll admit to being a victim to half of these scams. We’ve tried to whittle it down to the dirty dozen - the ones that should be considered high crimes and misdemeanors - highway robbery by any other name. OK, a few of these might not rise to that level, but they'll still put a dent in your wallet.
Personal Finance
1. Pay Day Loans
When you annualize the rates and the fees, Pay Day Loans can accrue at rates as high as 700%. A few short decades ago, charging these astronomical rates was considered criminal activity. Now they're marketed as a "convenient service" for people struggling paycheck to paycheck. Right, the only thing these things help is to keep people in a cycle of debt.
2. Check Cashing
9 million American households don’t have checking or savings accounts and when they need to cash their paychecks - they can end up paying stiff fees. Of course, when you consider late charge and overdraft fees, even the Pay Day rackets make banks look like the Cosa Nostra.
3. Currency Exchanges
It's all about location, location, location. Avoid them at airports and anywhere in Paris. If you're ever in a mood to be swindled, change currency at an airport. Not only is the spread between the buy and sell price ridiculously wide, they’ll charge you outrageous transaction fees to boot. Many credit cards also tag on unreasonable fees when you use them to withdraw cash. Word to the wise, when you're travelling abroad, use your debit card for cash withdrawls and your credit card for everything else. And the Parisians? They have a real knack for ripping off tourists with those currency exchange kiosks - especially the ones near major attractions.
4. Extended Warranties
Just say no. If you’ve done your research, the regular warranties are sufficient. Whether you’re talking about electronics or a car, if there’s a major defect or something malfunctioning - you’ll usually find out about it while the standard warranty is still active.
5. Rent-To-Own
It’s hard for me to even discuss this business because it’s so shady. Rent last year’s model of TV and have the right to buy it for three times the current price after paying 24 months of outrageous fees. Yeah, that’s sounds like a good deal. Rent-A-Centers are the first refuge of a sucker.
Family:
6. Newborn Hospital Photos
The ripoffs start the moment your little one is born. Just when you are recovering from that 23 hour labor and delivery, you’ll hear a knock on the door. It’s not the doctor or nurse, it’s the photo lady that wants to snap a few pictures of your newborn just as you are getting your precious one to finally latch on. She’ll be persistent until she has fleeced you for $150 for a package that Sears would charge you 49 bucks for. And don’t think it will end there, they’ll offer you that free 8 x 10 to come to your home just so they can siphon off some more money.
7. Amusement Park Pictures
It makes me cringe every time I see those photo stands near the roller coaster or water slide. I can’t recall a single picture where I didn’t look like a dufus with an expression of terror only outclassed by how awful my hair looked. Did I mention the part about looking 40 pounds overweight and in serious need of a cooler pair of glasses. $20 for an 8 x 10 to memorialize how ugly I can get is not my idea of a good deal. And really, getting the second one for an extra $10 is just rubbing salt in the wound. Congress needs to act now and pass laws banning all photos from amusement park rides.
8. Funeral Caskets
Even after you are dead, the ripoffs will continue. Once you pass to the great beyond, your loved ones won’t exactly be in a negotiating mood. If they head down to the local funeral parlor without having picked out a casket, they’ll pay as much as 100% premium for your lack of planning. Expect the funeral home will try to sell them on the Cadillac model - like it’s going to make a difference when you’re six feet under.
Travel:
9. Airline Baggage Fees
Spirit Airlines is now charging for carry-on baggage fees. Enough said. That should be enough cause to ground these guys. Every airline except Southwest charges baggage fees now. The fees for two bags can often exceed the ticket price. Travel light and skip Spirit. Did anyone fly them anyways?
10. Hotel Long Distance Charges
It’s cheaper to buy a pre-paid cell phone than make a single long distance call from some hotels. It gets even more outrageous if you’re making a call abroad. For whatever reason, a lot of inexperienced travelers still use hotel phones and they're considered a lucrative source of revenue. It can be a major irritant and quite expensive. Some hotels are finally starting to get it and throwing in unlimited long distance calls for premier customers or for a flat fee. If you use your hotel phone, you'll have to check out at the desk to pay the phone charges which might cost you valuable time if you're standing behind a tour of Japanese tourists checking in.
11. Hotel Wi-Fi
Some hotels charge you as much as $15 a day for this service. Before you book a hotel, you might want to find out if they provide this service for free. Funny thing here is that the high end hotels seem to charge for Internet and the mid tier or lower offer it for free. Another reason not to stay at that 5-star hotel.
12. Miscellaneous Hotel Fees
You think you scored a great room rate only to find out that there is the $25 resort fee. But you’ll enjoy that daily 75 cent paper and access to the health club. Amenities that would normally be considered included in the price of your hotel room! Check these fees before you book a hotel room and check how much that valet parking will set you back.
We were going to stop right there, but decided to go for a baker's dozen because we can't resist one more.
13. Rental Car Insurance
If you have insurance, you should never need to buy it and the guy behind the counter knows that. It’s redundant coverage but they’ll try to push it. Bring your insurance card and resist the sales pitches. The car insurance add-on is enormously profitable for them and costly for you.
There must be a thousand rackets out there to fleece consumers out of their hard-earned dollars. Everybody gets ripped off. It’s nothing to boast about but I’ll admit to being a victim to half of these scams. We’ve tried to whittle it down to the dirty dozen - the ones that should be considered high crimes and misdemeanors - highway robbery by any other name. OK, a few of these might not rise to that level, but they'll still put a dent in your wallet.
Personal Finance
1. Pay Day Loans
When you annualize the rates and the fees, Pay Day Loans can accrue at rates as high as 700%. A few short decades ago, charging these astronomical rates was considered criminal activity. Now they're marketed as a "convenient service" for people struggling paycheck to paycheck. Right, the only thing these things help is to keep people in a cycle of debt.
2. Check Cashing
9 million American households don’t have checking or savings accounts and when they need to cash their paychecks - they can end up paying stiff fees. Of course, when you consider late charge and overdraft fees, even the Pay Day rackets make banks look like the Cosa Nostra.
3. Currency Exchanges
It's all about location, location, location. Avoid them at airports and anywhere in Paris. If you're ever in a mood to be swindled, change currency at an airport. Not only is the spread between the buy and sell price ridiculously wide, they’ll charge you outrageous transaction fees to boot. Many credit cards also tag on unreasonable fees when you use them to withdraw cash. Word to the wise, when you're travelling abroad, use your debit card for cash withdrawls and your credit card for everything else. And the Parisians? They have a real knack for ripping off tourists with those currency exchange kiosks - especially the ones near major attractions.
4. Extended Warranties
Just say no. If you’ve done your research, the regular warranties are sufficient. Whether you’re talking about electronics or a car, if there’s a major defect or something malfunctioning - you’ll usually find out about it while the standard warranty is still active.
5. Rent-To-Own
It’s hard for me to even discuss this business because it’s so shady. Rent last year’s model of TV and have the right to buy it for three times the current price after paying 24 months of outrageous fees. Yeah, that’s sounds like a good deal. Rent-A-Centers are the first refuge of a sucker.
Family:
6. Newborn Hospital Photos
The ripoffs start the moment your little one is born. Just when you are recovering from that 23 hour labor and delivery, you’ll hear a knock on the door. It’s not the doctor or nurse, it’s the photo lady that wants to snap a few pictures of your newborn just as you are getting your precious one to finally latch on. She’ll be persistent until she has fleeced you for $150 for a package that Sears would charge you 49 bucks for. And don’t think it will end there, they’ll offer you that free 8 x 10 to come to your home just so they can siphon off some more money.
7. Amusement Park Pictures
It makes me cringe every time I see those photo stands near the roller coaster or water slide. I can’t recall a single picture where I didn’t look like a dufus with an expression of terror only outclassed by how awful my hair looked. Did I mention the part about looking 40 pounds overweight and in serious need of a cooler pair of glasses. $20 for an 8 x 10 to memorialize how ugly I can get is not my idea of a good deal. And really, getting the second one for an extra $10 is just rubbing salt in the wound. Congress needs to act now and pass laws banning all photos from amusement park rides.
8. Funeral Caskets
Even after you are dead, the ripoffs will continue. Once you pass to the great beyond, your loved ones won’t exactly be in a negotiating mood. If they head down to the local funeral parlor without having picked out a casket, they’ll pay as much as 100% premium for your lack of planning. Expect the funeral home will try to sell them on the Cadillac model - like it’s going to make a difference when you’re six feet under.
Travel:
9. Airline Baggage Fees
Spirit Airlines is now charging for carry-on baggage fees. Enough said. That should be enough cause to ground these guys. Every airline except Southwest charges baggage fees now. The fees for two bags can often exceed the ticket price. Travel light and skip Spirit. Did anyone fly them anyways?
10. Hotel Long Distance Charges
It’s cheaper to buy a pre-paid cell phone than make a single long distance call from some hotels. It gets even more outrageous if you’re making a call abroad. For whatever reason, a lot of inexperienced travelers still use hotel phones and they're considered a lucrative source of revenue. It can be a major irritant and quite expensive. Some hotels are finally starting to get it and throwing in unlimited long distance calls for premier customers or for a flat fee. If you use your hotel phone, you'll have to check out at the desk to pay the phone charges which might cost you valuable time if you're standing behind a tour of Japanese tourists checking in.
11. Hotel Wi-Fi
Some hotels charge you as much as $15 a day for this service. Before you book a hotel, you might want to find out if they provide this service for free. Funny thing here is that the high end hotels seem to charge for Internet and the mid tier or lower offer it for free. Another reason not to stay at that 5-star hotel.
12. Miscellaneous Hotel Fees
You think you scored a great room rate only to find out that there is the $25 resort fee. But you’ll enjoy that daily 75 cent paper and access to the health club. Amenities that would normally be considered included in the price of your hotel room! Check these fees before you book a hotel room and check how much that valet parking will set you back.
We were going to stop right there, but decided to go for a baker's dozen because we can't resist one more.
13. Rental Car Insurance
If you have insurance, you should never need to buy it and the guy behind the counter knows that. It’s redundant coverage but they’ll try to push it. Bring your insurance card and resist the sales pitches. The car insurance add-on is enormously profitable for them and costly for you.
Closed November 2010
Trustee's report of no distribution Aug 20, 2010 
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