Beware of paying off a large credit card debt

Island_Lauri

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"What got him so upset might seem trivial to some people who have learned to accept small infringements on their freedom as just part of the way things are in this age of terror-fed paranoia. It's that "everything changed after 9/11" thing.

But not Walter.

"We're a product of the '60s," he said. "We believe government should be way away from us in that regard."

He was referring to the recent decision by him and his wife to be responsible, to do the kind of thing that just about anyone would say makes good, solid financial sense.

They paid down some debt. The balance on their JCPenney Platinum MasterCard had gotten to an unhealthy level. So they sent in a large payment, a check for $6,522.

And an alarm went off. A red flag went up. The Soehnges' behavior was found questionable.

And all they did was pay down their debt. They didn't call a suspected terrorist on their cell phone. They didn't try to sneak a machine gun through customs.

They just paid a hefty chunk of their credit card balance. And they learned how frighteningly wide the net of suspicion has been cast.

After sending in the check, they checked online to see if their account had been duly credited. They learned that the check had arrived, but the amount available for credit on their account hadn't changed.

So Deana Soehnge called the credit-card company. Then Walter called.

"When you mess with my money, I want to know why," he said.

They both learned the same astounding piece of information about the little things that can set the threat sensors to beeping and blinking.

They were told, as they moved up the managerial ladder at the call center, that the amount they had sent in was much larger than their normal monthly payment. And if the increase hits a certain percentage higher than that normal payment, Homeland Security has to be notified. And the money doesn't move until the threat alert is lifted.

Walter called television stations, the American Civil Liberties Union and me. And he went on the Internet to see what he could learn. He learned about changes in something called the Bank Privacy Act.

"The more I'm on, the scarier it gets," he said. "It's scary how easily someone in Homeland Security can get permission to spy."

Eventually, his and his wife's money was freed up. The Soehnges were apparently found not to be promoting global terrorism under the guise of paying a credit-card bill. They never did learn how a large credit card payment can pose a security threat.

But the experience has been a reminder that a small piece of privacy has been surrendered. Walter Soehnge, who says he holds solid, middle-of-the-road American beliefs, worries about rights being lost.

"If it can happen to me, it can happen to others," he said."

http://www.shns.com/shns/g_index2.cfm?action=detail&pk=RAISEALARM-02-28-06
 
Wow! I guess it's a good thing I don't have $6000 laying around to make credit card payments with! Actually, I don't have any credit cards with balances over $6000, so maybe I am safe! ;)
 
So much about 'Land of the Free' :rolleyes:
Seems to me like the terrorists are winning :sad2:
 
:scared1: Oh no :scared1: next the secret police will drag him out and beat him with a wet noodle :rotfl2: :rotfl2: Good thing you don't live in China or some other commie country. at least you are free to bash our country/government with out threat of arrest or worse.
 

Holy crap, I just received an insurance settlement. The first thing I did was to pay off credit card debt. :sad2: Holy crap on a cracker. :guilty:

Will someone bail me out if they pick me up for paying my bills? :wave:
 
They must have had a real blast last summer when we paid off $30,000 in debt. To make it worse, my DH is a DoD employee. Funny, we never had a problem with any amounts being credited to our accounts, nor with the balances being updated right away.

Surely, if things are that bad, my DH would have been called in by Homeland Security to answer a few questions, wouldn't you think?
 
Bwahahahahahaha......in addition to paying of credit card debt, I also wrote my Representitive (Barbara Lee - the only one to vote against the war)for a tour of the White House. Damn, my shackles are waiting! :rotfl:
 
I have sent large amounts to a credit card company and the money was just applied. I guess it is not considered unusual for us since we pay it off every month.
 
inaminute said:
They must have had a real blast last summer when we paid off $30,000 in debt. To make it worse, my DH is a DoD employee. Funny, we never had a problem with any amounts being credited to our accounts, nor with the balances being updated right away.

Surely, if things are that bad, my DH would have been called in by Homeland Security to answer a few questions, wouldn't you think?
ITA....
 
We've done this several times to a couple of credit cards, and never had a problem with money or balances being tied up. Sounds like typical paranoid propaganda if you ask me.
 
inaminute said:
They must have had a real blast last summer when we paid off $30,000 in debt. To make it worse, my DH is a DoD employee. Funny, we never had a problem with any amounts being credited to our accounts, nor with the balances being updated right away.

Surely, if things are that bad, my DH would have been called in by Homeland Security to answer a few questions, wouldn't you think?

I paid off some big amounts too..one was Penneys, my money was credited immediately (within a week) No Homeland Security personal have shown up on my doorstep yet!
 
Having worked for PNC Bank, Capitol One, and First Premier, I can tell you that story is very likely true - with one VERY major chunk left out. Any time you pay down your debt that quick or make an unusual transaction of that size there IS a check. It takes a total of 3 seconds, and they check for any other things that would set off red flags. If there's no other unusual activity or warning signs on your credit, it passes right through. If there are other warning signs, they do a deeper check. That one takes about an hour. Again, the consumer never knows. If it doesn't pass that second check that's when the account gets frozen. That account there sounds like his name appeared on the watch list for terrorism and money laundering, and they were checking to see if it was actually him. he says he's a child of the sixties . . . maybe toss a possession charge or two on there as well and they might wonder if it was drug sales :rotfl:
 
ChrisnSteph said:
We've done this several times to a couple of credit cards, and never had a problem with money or balances being tied up. Sounds like typical paranoid propaganda if you ask me.

::yes:: ITA

I did it on October (finally received money that had ascheited (sp) and used it to pay off some CC debt). Since I've never written checks out totaling $21,000 before or after that you would think I'd have been "red flagged" according to the article. That was several months ago, and they never "came after" me.
 
Make sure that you don't deposit anything over $10,000 or move that kind of money around either - banks are required to report that too - amount may be lower now, I don't know.

You know, occasionally law abiding people actually use saved cash to buy something like a car, or pay for college or some other normal American God given right. :rolleyes:
 
I did it on October (finally received money that had ascheited (sp) and used it to pay off some CC debt). Since I've never written checks out totaling $21,000 before or after that you would think I'd have been "red flagged" according to the article. That was several months ago, and they never "came after" me.

They don't "come after you", they just use it as an excuse to ...oh, I don't know, tap your phone lines? Access all your public records, insurance records, etc....

In most cases it doesn't matter a hill of beans, but what if that kind of freedom of search (and possibly seizure) allows politicans and corporate giants to spy on their preceived political/corporate enemies? Isn't this what the SS did?
 
Puffy2 said:
Make sure that you don't deposit anything over $10,000 or move that kind of money around either - banks are required to report that too - amount may be lower now, I don't know.

You know, occasionally law abiding people actually use saved cash to buy something like a car, or pay for college or some other normal American God given right. :rolleyes:
Yes, banks are required to report CASH deposits of over $10,000 or stuctured transactions totalling over $10,000.
I don't know too many law abiding citizens who save $10,000 under a matress. This law has been in effect for years - it is a means to detect money laundrying.
 
Puffy2 said:
Make sure that you don't deposit anything over $10,000 or move that kind of money around either - banks are required to report that too - amount may be lower now, I don't know.

It's $10,000.01 in cash that banks are required to report. I shudder to think of all the CTR's I would have had to fill out if it were just any deposit over $10,000. Those things are a royal pain [CTR's].

ETA: That includes deposits and withdrawals in cash.
 
Puffy2 said:
They don't "come after you", they just use it as an excuse to ...oh, I don't know, tap your phone lines? Access all your public records, insurance records, etc....

Well, since I have nothing to hide, I don't have anything to worry about, do I?

Anyone can access public records, so that's a moot point as far as I'm concerned.
 












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