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Tag: Fees

  • Rental Cars Overcharging: How To Counter Toll Trolls

    Are rental cars going to play a part in your cross country meanderings this summer?

    Indeed, having your own transportation beats building a holiday itinerary around bus schedules and taxi cabs. However, because of e-toll fees, many renters are coming to realize that they end up building more of their budget around their four-wheeled freedom than they recall reading in the fine print.

    While e-tolls conveniently decrease the sea of stop-and-go brake lights, an issue has arisen for rental drivers finding themselves in a “No Cash Lane” conundrum. As e-tolls operate based on scanning license plates to charge a credit card directly, car owners use transponders to carry out the exchange. This works out well for car owners, but many rental cars don’t have an individual owner or the capacity for e-toll scanning – a fact renters learn too late. A conceivable solution might be to just bite the bullet and wait it out in the cash lane.

    And that would be great advice – if cash toll lanes weren’t rapidly decreasing everywhere in the world.

    Averil Rothrock, a Seattle attorney found this out the hard way in 2011 with her Fox Rent A Car rental. During a Denver trip, she incurred a $106 charge on her credit card for the two $3 tolls she was meant to pay and the two $50 “service fees” for not being able to pay them in an ill equipped rental car. She filed a lawsuit against Fox and Violation Management Services (the latter of which earned an “F” by the Better Business Bureau).

    As Violation Management Services is an example of a third party rental agencies use to outsource fee collection (translation: “not have to deal with customer service transaction themselves”), Rothrock argued that Fox and Violation Services “conspired to turn Fox customers’ tolls into an illegal profit center for themselves.” They simply provided no way for customers to cross tolls without receiving exorbitant fees.

    Averil’s in good company, too.


    *The tweet intended for this space was omitted last minute due to an array of excessive (albeit very creative) expletives against Hertz*

    Ah, yes. Chatting with the company before traveling is part of a good six point prevention plan.

    In fact, numerous drivers who’ve come up with surprise service charges, seem to agree that these precautions are fantastic for avoiding fees:

    1. Review rental agreement beforehand – including the fine print!

    If you don’t get what something means, make an agent explain it you. It’s his job and your money. Ask how the e-toll collection is activated if you’ve rented a car that has e-toll collection.

    2. Check online maps for e-toll roads – will your journey include cashless toll lanes? You might be able to circumvent those routes or extra fees via brief online searches, the tolling authority’s website, or the rental car’s toll-free number. Just ask how they tolls are collected where you’re headed.

    3. Do it yourself – If you prepay for the services yourself, you can avoid paying fees later.

    Some systems like SunPass sell e-toll passes at retail outlets, while others have one-time payment options. Senior Vice President Ken Philmus of Affiliated Computer Service says, “an EZ Pass account holder in New York can use his transponder in 13 other northeast states, from Maine to Illinois to Virginia—but the device won’t work on California’s FasTrak or Florida’s SunPass systems.”

    But there are workarounds. In San Francisco, you can register your rental car’s plate online or by phone and pay a single one-way toll for $7 using your credit card.

    4. Beat ‘em to the punch – pay before you’re charged!

    If you forgot fee precautions, there’s no point in compounding unwarranted shame with wasted cash. In California, Transportation Corridor Agencies spokesperson Lisa Telles tells that “paying within the 48-hour time frame halts the violation process.” Lisa is referring to a one time toll payment option at TheTollRoads.com, and adds, “All customers need to do is identify the location and toll, provide the license plate number and a credit card number to pay the toll.”

    Just act quickly – before your info gets passed along to the rental agency.

    5. Keep receipts – Any form of documentation that shows how, when, and where you made cash transactions will be relevant later.

    If there’s a charge dispute, it’s always nice to have proof in black and white for later – in case you need something to shove in their faces and say, “See?!”

    6. Keep your eyes peeled – for the first couple of months following your trip, look out for any charges trying to sneak their way in.

    If you know you paid the price, get that documentation from tip 5 ready, along with two boxing gloves – one for the credit card company, and one for the rental company.

    But it’s always a good idea to try approaching disputes kindly first. We’re more likely to be heard and helped if we don’t sound psychotic. Plus, the customer service reps aren’t the bad guy. They just work for the bad guy – who’s probably outsourcing to a worse guy.

    Hope this compilation helps. Happy and safe travels!

    Image via Youtube

  • Bank of America Considers Charging Fees For Checking Account, The 99% Flips Out

    On the tails of the Bank of America/Fannie Mae feud, news comes out that Bank of America BAC (NYSE) is working on sweeping changes that would require many users of basic checking accounts to pay a monthly fee unless they agree to online banking, buy more products, or maintain certain balances. Most major banks lose money on free checking accounts, but they offer them at the hopes that the young person, who is their main demographic, would continue to use their services such as credit cards and mortgages as they become more affluent. While banks have generally backed off of free checking accounts, they do so hesitantly because they risk alienating their customer base.

    In 2011 BofA had planned to issue a $5 fee to use their debit card. The reaction by the masses was so overwhelming that they had to back down from it. This new fee and the debit card one stream from Bank of America having revenue problems and they seem to be desperately searching for new revenue streams. 2011 revenue dropped by $26.2 billion, or 22%, from its 2009 level, mostly due to the mortgage crisis that embroils the nation to this day.

    This news of more fees from a bank the received a massive Tarp bailout of billions of dollars has infuriated the masses. To a lot of people, Bank of America represents all that is wrong with capitalism. Check out the Twitter reactions below to see people’s reactions.

    bank of america solely exists to steal my money 8 minutes ago via Twitter for iPhone ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Why do people get bank accounts at bank of America smh I hate this fuxking bank 1 minute ago via Twitter for iPhone ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Bank of America better get off the bullcrap. If they dont stop trying to implement sneaky fees, Im gonna flip out. http://t.co/njzFMaek 3 minutes ago via Twitter for BlackBerry® ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Bank of America planning to charge fees again. Did you think Twitter would just cool off and forget? 14 minutes ago via Twitter for iPhone ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Bank of America considering monthly fee for basic accounts http://t.co/vTcY31aU – Apparently, they aren’t unpopular enough already. 1 hour ago via Pulse News ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Bank Of America always try & find way to take money from my savings.. That really makes me angry 1 minute ago via Twitter for iPhone ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    Wow, looks like Bank of America has a new plot to rob its customers with a slew of new fees. “Essentials” indeed. #Roundtwo 8 minutes ago via Twitter for Android ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

    RT @jstreaks: Another Bank of America charge. When will they learn?…// The only thing they learn is how to cheat the laws. 10 minutes ago via TweetDeck ·  Reply ·  Retweet ·  Favorite · powered by @socialditto

  • FCC Writes Letter To Google Over Early Mobile Termination Fees

    FCC Writes Letter To Google Over Early Mobile Termination Fees

    The Federal Communications Commission recently began an inquiry into exorbitant early termination fees in mobile phone carriers’ contracts. The investigation began when Verizon raised its early termination fee to $350 (from $175) for smartphones. Now the FCC is making the inquiry formal and full-blown—they’re asking the four major mobile carriers and Google about their early termination policies.

    Yeah, that’s right. Google. I know they’re selling a mobile phone now, but Google isn’t a service provider. Well, we can all rest assured—a little—the FCC’s letter to Google acknowledges that T-Mobile is the service provider. However, T-Mobile received a letter of its own. So why single out Google of all the hardware providers? (Just wait.)

    After all, Apple makes the iPhone, and you can buy directly from its website. Google’s webstore offers you the choice of an unlocked phone without a plan or a (cheaper) phone with a T-Mobile plan (Verizon and Vodaphone are still slated for spring). Apple’s iPhone store doesn’t offer any choice but to buy the phone with an AT&T data plan (that I can see, without giving my info).

    But there’s something that Google does that Apple doesn’t. The unlocked Nexus One is $529, but when you buy it with a T-Mobile plan, the price drops to $179. However, if you cancel your contract in the first 120 days of service, the Terms of Sale state that in addition to T-Mobile’s early termination fee, you’ll also be subject to an “equipment recovery fee”—the $350 subsidy on the phone price.

    To my knowledge, when you buy a discounted phone from other mobile carriers, they don’t charge that subsidy on top of their ETF. In fact, that was part of Verizon’s initial justification of its high early termination fee to the FCC. (A justification the FCC found “unsatisfying, and in some cases, troubling.”)

    The FCC’s look at Google may be prompted by consumer complaints (they aren’t saying), but it still shows an impressive level of sophistication in the modern marketplace. (Let’s face it—after looking at the way federal commissions handle the Internet, it doesn’t take much to impress me.)

    Google, Verizon, Sprint, T-Mobile and AT&T have until February 23 to respond.

    What do you think? Will the FCC knock down early termination fees—and if they do, will phone subsidies from mobile carriers be a thing of the past?

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