A new bank "scam".... just saw it on the news.

[Papa Deuce]

You know those rebate cards you get sometimes, like when you buy a new cell phone, or maybe sign up for FIOS?

We signed up for FIOS and got a $150 rebate card.... We used it at WDW and then destroyed the card, and it turns out that this is what YOU NEED TO DO.

Why?

Because the story on the news was about a pastor who used all of his rebate, so he thought it was OK to leave the depleted card at the restaurant. But the real deal is that these cards can go into negative balances. Yep, in this case, the waitress "charged" another $300 on the card that the pastor thought was only good for $50.

Apparently this is happening to many Verizon customers, as they give these cards out as promotions all the time. The story cited Citibank, and one other bank I can't remember as the primary "offenders".

So, here is your "heads up".

 

[Sparx]

wow! i have one of those in the glovebox in my car. (i used it to get gas, emptied it and just left it in there). i guess i need to break it.

thanks for the info

 

[piglet too]

Really? As a cashier I have never been able to force a purchase through that is more than the amount on the card with those type.

 

[Papa Deuce]

Really? As a cashier I have never been able to force a purchase through that is more than the amount on the card with those type.

Maybe it isn't all banks. They only really mentioned 2 banks.

 

[Papa Deuce]

OK, my numbers may have been a little off.... but here is a video of the story. I was pretty close...

http://abclocal.go.com/wpvi/story?section=news/special_reports&id=7115961

 

[JR6ooo4]

I can't believe that. How can the banks justify turning a gift card into a credit line?

Mikeeee

 

[SandrA9810]

I would assume verizon to be responsible for the overdraft of the cards, since they're the ones that gave it away in the first place. Why would they allow there to be a negative balance?? They're already in the hole for over extending credit to consumers... why do something that drastically stupid.

 

[hrh_disney_queen]

Whoa, thanks for the heads up. I have two of these that I need to use, I usually throw used GCs away since there is nothing left on them. Nice little trick on the banks' part. Doesn't surprise me a bit.

 

[The Mystery Machine]

I can't believe that. How can the banks justify turning a gift card into a credit line?

Mikeeee

I think that is exactly where the problem is.

They are not "gift cards". A gift card is nameless. These are promotional cards with your name attached to it essentially making them credit cards.

 

[DrCavin]

Is your name on these cards? I've only had 1 & it did not have my name on it, so these cards must have your name on it im assuming.

 

[OceanAnnie]

I think that is exactly where the problem is.

They are not "gift cards". A gift card is nameless. These are promotional cards with your name attached to it essentially making them credit cards.

So these cards are more like the blank checks the banks send? There should be more clarification with those cards. Nice of you to pass it on, P.D.

 

[The Mystery Machine]

So these cards are more like the blank checks the banks send? There should be more clarification with those cards. Nice of you to pass it on, P.D.

I don't know about that, but I guess the real problem is that since it is a promotional card with your name registered to it and it is "abused" they can come after you.

 

[OceanAnnie]

Strange problem. It looks like there could've been a way to have the name attached and have the specified limited amount. "Somebody's got some 'splainin to do," as Desi would say. At least it appears that way.

 

[robinb]

I have one in my wallet from Citibank. It was a rebate from Sears for appliance delivery. I tried to use it and it was declined because I tried to charge more to the card than there was money left on it. I had to call and find out how much was left on the card to use it up.

 

[geffric]

thanks for the warning.. I just used 2 of these cards and left them for the store to destroy.. i'll see what happens next..

 

[bjgrazi]

Also as a cashier, they were only good for the amount and if you used it and had a balance you needed to know the exact amount left on it or it would be declined.

 

[The Mystery Machine]

Also as a cashier, they were only good for the amount and if you used it and had a balance you needed to know the exact amount left on it or it would be declined.

Well I think the issue is unsavory characters know how to rip it off and therein lies the problem.

 

[pixiewings71]

We had that happen to us!!!!! We had a gift card given to us by our timeshare company as a Thank You, it only had $25 on it so we used it for dinner at Mimi's in Anaheim on one of DL trips, well our total was well over the $25 but we left cash for the rest. The cashier KEPT all of our cash and ran the gift card for an extra $15!!!!! So we got a BILL from AmEx saying we owed them more money!!! We disputed it and we did win but man, what a hassle!!!! Next time we will just wait for the cashier to run it for the exact amount and then we will pay the rest and leave a tip.

 

[disney1990]

The last couple of these debit cards that we received, we took them to our bank and cashed them out. I would rather have the money in my pocket than the card anyway.

 

[JR6ooo4]

some charge monthly fees after a while, so a dollar or two a month slowly takes all your money.

Mikeeee