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Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 12:32 PM   #1
 
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Pentagon Federal C.U. CD problem - Credit Card

For all of you (including me) that believed that your credit card company would treat the purchase of a CD as a regular purchase and not charge a finance charge for 30 days - We're all wrong.

Checked with my credit card company and they said when they see a financial institution, they start charging a high rate of interest immediately. - I am in the process of canceling all of these. I will send Pentagon Federal a Check and I'm really steamed at them for lying
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 12:44 PM   #2
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Re: Pentagon Federal C.U. CD problem - Credit Card

I am looking at opening one of those PenFed accounts so I can buy CDs if I want. I suppose that I could save the interest charge on the credit card if I put the charge on the card and then went immediately online to payoff the credit card balance from my bank account. Any other ideas on how not to get stuck?

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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 12:52 PM   #3
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Re: Pentagon Federal C.U. CD problem - Credit Card

Err, Cut-Throat, did you consider the possibility that the low-level credit card company CSR might be full of crap?

I've bought penfed CDs on my credit card over the years many times. I'm talking big numbers. I received my cc reward each time except for once (and I stopped using that card when they refused to credit me). And *never* had a finance charge.

The transaction is coded by the merchant. It's not something the credit card company can arbitrarily decide is a cash advance. But their marketing department does have some say on whether you get perq's for your purchase.
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 01:16 PM   #4
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

This was not a low level Rep, but someone in their fraud department. These CC Companies are figuring out ways to make money all the time. My card happened to be from U.S. Bank - When U.S. Bank received the transaction from another financial institution (special Code) they converted the charge to 'Instant Cash' - No miles and a high interest rate immediately.

I just spent an hour on the phone with the Visa Fraud Dept and Pen Fed, they were having the debate themselves and Visa Won! It got technical within the finance industry. Pen Fed conceeded that I would have to pay the interest charge.

PenFed was as surprised as you are, but I expect this door to be closing for other card companies as well.

Just a heads up, because I'm sure others may find out the hard way also. I killed about 2 hours and basically have to start over. I'm pissed at both of them
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 01:21 PM   #5
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Re: Pentagon Federal C.U. CD problem - Credit Card

Hmm, note to self: avoid US Bank.

I'd still bet that the bank weenies are wrong on this one. They collect fees on the transaction already -- you just don't see them because PenFed eats them. I've never heard of an issuing bank double-dipping as you're suggesting.

If you want to experiement, buy a $100 CD and see what happens. In any case, switch credit card companies. I like Chase.
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 01:29 PM   #6
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

Quote:
I am looking at opening one of those PenFed accounts so I can buy CDs if I want. *I suppose that I could save the interest charge on the credit card if I put the charge on the card and then went immediately online to payoff the credit card balance from my bank account. *Any other ideas on how not to get stuck?

Martha
Well, you could try a small CD on your card first and contact your credit card company to see if it indeed it went through as a "purchase".

Or, Like I probably will do (after I sleep on it for a couple days) is do a transfer on-line from your bank.
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 04:51 PM   #7
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

Hi Wab, Martha, and Cut-Throat! I like Chase also.
I have yet to meet the credit card company that I could not bully into doing it my way. However, I normally
do a lot of research first (consider the worst case).
I'll bet I spent 2 hours today on the phone with banks and CC companies on similar issues. If all else fails,
and I owe money, I just tell them "I'm not paying.
Sue me!" That will at least get their attention.

JG
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 05:14 PM   #8
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Re: Pentagon Federal C.U. CD problem - Credit Card

Quote:
If all else fails,
and I owe money, I just tell them "I'm not paying.
Sue me!" That will at least get their attention.
JG
It will definitely get their attention. However, if an agreement cannot be reached. Refusal to pay may ruin one's credit rating.

Spankyl
:-/
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-10-2005, 05:15 PM   #9
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Re: Pentagon Federal C.U. CD problem - Credit Card

Quote:
.. I probably will do (after I sleep on it for a couple days) is do a transfer on-line from your bank.
That's probably what I would do -- e-transfer. from checking account.
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-11-2005, 05:31 AM   #10
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Re: Pentagon Federal C.U. CD problem - Credit Card

Hey, if anyone has success buying Pen Fed CDs with a card from another bank, please let us know (and tell us which bank/CC Co treated you right).
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-11-2005, 07:06 AM   #11
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

I second Brewer's request. Pleae do let us all know.

For Spanky, yes you are taking a chance on damage to your credit rating (by getting crossways with a lender).
However, as attached as I am to my credit cards, I am
really not a borrower any more but a lender. Anyway,
I'm not too worried about my credit score (which I do not
know). People keep throwing money at me, so it must be okay

JG
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-11-2005, 08:18 AM   #12
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Re: Pentagon Federal C.U. CD problem - Credit Card

Quote:
Hey, if anyone has success buying Pen Fed CDs with a card from another bank, please let us know (and tell us which bank/CC Co treated you right).
The wife and I bought a huge bunch of PenFed CDs last year when they were at 5.25% - nearly all on credit cards. We ran out of credit eventually and had to do bank transfers. I had no problems with MBNA, Citi, Chase or Farm Bureau cards. One of my wife's cards came through as a cash advance but PenFed sorted that out when we complained. Sorry, can't remember which card that was.

We got some serious cashback from buying them on credit cards
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-11-2005, 11:07 AM   #13
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Re: Pentagon Federal C.U. CD problem - Credit Card

Last March, I also put some serious money into PFCU's 5.25% CDs. I didn't know about the CC option.
Coulda had a couple of round trip tickets around the world.

Oh well... :-/

MJ
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-12-2005, 04:26 PM   #14
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

As a side note, a guest of this board just e-mailed me and explained that he had the same problem with U.S. Bank as I did.

They were treating his purchase as 'Instant Cash' also. Expect other credit card companies to follow suit. Why? - Because it is profitable for them.

I'm all done with CD's for now!
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-12-2005, 04:35 PM   #15
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

Hey Cut-Throat, just to clarify........................

You don't have a problem with the banks and CC companies trying to maximize their profits do you?
I mean, you do believe in free enterprise, right?

JG
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-12-2005, 04:55 PM   #16
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

Quote:
I mean, you do believe in free enterprise, right?
Yes, as long as the government (i.e. - Me) is in charge of them.
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-12-2005, 05:06 PM   #17
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

And there is the key to this discussion. I would keep the
government out of as much as possible and let the
market forces, self interest and free enterprise sort
it all out. I would rather take my chances with thieves
and greedy bankers than rely on the government to
protect me. At least I understand the motives of crooks
and felons. Much of what comes out of government
(all levels) defies any search for sanity.

JG
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-12-2005, 08:15 PM   #18
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Re: Pentagon Federal C.U. CD problem - Credit Card

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At least I understand the motives of crooks and felons. *Much of what comes out of government (all levels) defies any search for sanity.
I don't get it. How can you understand crooks and not understand politicians? That's like saying you understand cheese, but don't get cheddar.
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Re: Pentagon Federal C.U. CD problem - Credit Card
Old 01-13-2005, 02:11 AM   #19
 
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Re: Pentagon Federal C.U. CD problem - Credit Card

I see your point wab! But, I still can understand the motives
of most criminals. Politicians I find frequently inscrutable. I guess it matters little in the big scheme of
things as the results of being robbed are the same,
whether by your neighbor or your rep. in the halls of
Congress.

JG
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Re:  A short political primer.
Old 01-14-2005, 09:48 AM   #20
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Re:  A short political primer.

Quote:
I still can understand the motives of most criminals. *Politicians I find frequently inscrutable.
Criminals are trying to get rich WITHOUT being re-elected...
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