Fight Back E-Book

Ellen Roseman

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 390

Veröffentlichungsjahr: 2012

Beschreibung

Money-saving advice from Canada's leading consumer advocate In this book Ellen Roseman distills the financial advice she gives in her columns and blogs into 81 quick tips that all Canadians can use to help them spend sensibly, save money, and avoid costly consumer traps. This book of "personal finance greatest hits" is filled with illustrative examples and cautionary advice from Roseman and stories from her faithful readers. Filled with a wealth of information, the book includes the low-down on dealing with banks and car dealers, cutting costs of communication services, improving your credit, buying and renovating a home, fighting online fraud, ensuring you have the right insurance, and more. * Offers an easy-to-use guide for being smart with your money * Includes how to advice on handling the most common financial pitfalls * Contains the best advice from Ellen Roseman's columns and blogs * Written by Canada's most popular and savvy consumer advocate Don't spend another dollar until you read Ellen Roseman's best-ever tips for saving money and making wise financial decisions.

Leseprobe

Contents

Cover

Title Page

Copyright

Dedication

Foreword By Dave Chilton

Introduction

Part 1: Outsmarting the Banks

Chapter 1: Get a Higher Interest Rate on Your Savings

Chapter 2: How to Fight Back when a Bank Cuts the Interest on Your Savings

Chapter 3: Look Beyond the Big Banks for Higher Savings Rates

Chapter 4: How to Get Higher Savings Rates without Getting Burned

Chapter 5: How to Trim the Bank's Service Charges

Chapter 6: How to Fight Back when You Miss a Discount You Deserve

Chapter 7: Challenge Bank Fees for RRSPs and Other Registered Plans

Chapter 8: Watch Out for Foreign Exchange Conversion Fees

Chapter 9: Find the Best Credit Cards for Rewards and Benefits

Chapter 10: Find the Best Credit Card if You Carry a Balance

Chapter 11: Watch Out for Credit Card Balance Transfers

Chapter 12: Watch Out for Expensive Credit Card Insurance

Chapter 13: Beware of Penalties when You Break a Closed Mortgage

Chapter 14: How a Customer Fought Back Against a Bank's Mortgage Penalty

Chapter 15: How to Avoid Interest Penalties when Paying Off Your Mortage Early

Chapter 16: Why It Pays to Know Your Rights

You have the Right to some Free Services

You have the Right to Dispute Errors on your Credit Report

You have the Right to Refuse some Services

You have the Right to Faster Access to Cash from Most Cheques

You have the Right to Open a Basic Bank Account

You have Rights when Dealing with Banks

You have the Right to Dispute Preauthorized Debit Withdrawals

You have the Right to know How much you would be Charged to Break Your Mortgage

Chapter 17: How to Outsmart the Banks at Their Own Game

Use your Bank's ABMs

Get Mobile Banking

Maximize your Bank Account

Budget Accordingly

Get your Credit Card Fee Waived

Ask for a Lower Credit Card Rate

Tell the Bank to Remove the Hold

Negotiate a Good Mortgage Rate

Chapter 18: How to Get the Best Service from a Bank

Shop the Banks, the Bank Alternatives and the Person you want to Bank with

Take the Time to Choose the Right Account(s) and Product(s) for you

Carefully Manage your Account

Don't make it Easy for the Bad Guys

Don't be Afraid to Ask for Help

Know you have the Right to Complain

Chapter 19: How to Get the Best Service from a Bank if You Own a Business

Have a Great Business Plan

Have your Banker Visit your Place of Business

Share your Plans and Ideas

Have a Backup Plan

Don't put All your Eggs in One Basket

Know you have the Right to Complain

Part 2: Keeping your Finances on Track

Chapter 20: How to Check on Your Credit Report and Credit Score

Chapter 21: How to Correct Errors on Your Credit Report

Chapter 22: How to Fight Back when Your Credit History Is a Mess

Chapter 23: How to Make Sure Your Credit History Stays Healthy

Chapter 24: How to Fight Back Against Bad Financial Advice

Chapter 25: How to Make Sure You Have the Right Investments

Find a Good Financial Adviser and Meet with him or her Periodically

Know your own Financial Objectives and Risk Tolerance

Know what you are Investing in

Review your Statements for Transaction Errors and the Performance of your Investments

Know you have the Right to Complain

Chapter 26: How to Fight for Your Rights as an Investor

Always be Professional

Document Everything

Be Factual with your Claim

Be Realistic with your Demands for Compensation

Get Professional Advice

Chapter 27: How to Recover Losses on Unsuitable Investments

Chapter 28: How to Fight Back Against the Canada Revenue Agency

Chapter 29: How to Avoid Getting Penalized on Your Tax-Free Savings Account

Chapter 30: How to Fight Back by Using the Taxpayer Bill of Rights

Know your Rights

Be Prepared

Be Calm and Respectful

Ask Phone Agents for their Identification

Keep a Record of your Communications

Attempt to Resolve the Issue

Contact the OTO for Assistance

Submit a Complaint

Consult the Digest of Taxpayer Service Rights

Part 3: Taming your Telecom Costs

Chapter 31: How to Negotiate for Better Rates with a Telecom Supplier

Chapter 32: How to Cut the Cost of Your Home Phone Service

Chapter 33: How to Save Money on Your Internet Service

Chapter 34: How to Cut the Cost of Your Cable TV Service

Chapter 35: How to Save Money on Your Telecom Bills and Get Better Service

If you want to Pay Less, Call and ask to Pay Less

Review your Needs for the Home Phone Features and Options

Know your Actual Needs for Long-Distance Minutes and Then you will Know your Cost

Stay Flexible and Ready to Jump to a Less Expensive Provider

Learn How to find out about Hidden Promotions

Learn the art of Threatening to Cancel (The Equivalent of a Master's Degree in Creative Whining)

Chapter 36: How to Buy a Wireless Phone without a Contract

Chapter 37: How a Customer Fought Back Against Cancellation Fees

Chapter 38: How to Save Money with a Prepaid Wireless Plan

Chapter 39: Avoid Data Roaming Charges when You Travel

Chapter 40: How a Bell Customer Fought a $10,000 Bill for Data Roaming

Chapter 41: Watch Out for Premium Text Messages on Your Wireless Phone

Chapter 42: How to Get the Best Value for Your Telecom Dollars

Do some Research Before you Buy

Get “Special” Deals in Writing

Look for Insurance or Equipment Protection Plans

Read the Company Websites

Understand How Data is Consumed on your Phone/Tablet

Take Advantage of Usage Trackers

Use Plan Estimator Tools

Go to Online Tech Forums

Protect your Privacy

Bundle your Services, If Possible

Chapter 43: How to Cut Your Telecom Costs

Research, Research, Research

Find a Solid Base

Understand the Competitive Landscape

Know your Plan

Avoid Roaming Fees

Take the Time to Get Things Right and Don't be Afraid to ask for Help

Chapter 44: How We Helped a Household Slash Its Telecom Costs

Chapter 45: How to Make Effective Telecommunications Complaints

Do:

Don't:

Chapter 46: How to Fight Back Against Big Telecom

Part 4: Stretching your Travel Dollars

Chapter 47: How to Fight Back when an Airline Damages Your Luggage

Tips on how to be Successful using Social Media

Chapter 48: How to Fight Airline Rules That Do Not Make Sense

Chapter 49: How to Fight Back when a Cruise Line Loses Your Luggage

Chapter 50: How to Complain to the Canadian Transportation Agency

Chapter 51: How to Enforce Your Airline Flight Rights

Chapter 52: How to Cross the Border with Your Travel Documents in Order

Chapter 53: What to Do with Your Prescription Drugs when You Travel

Chapter 54: How to Avoid Getting in Trouble when Booking Hotels Online

Chapter 55: How to Avoid Being Denied a Refund on Unused Hotel Rooms

Chapter 56: How to Avoid Paying Medical Bills when Crossing the Border

Chapter 57: How to Choose Trip Cancellation and Trip Interruption Insurance

Chapter 58: How to Fight Back when Your Trip Cancellation Claim is Denied

Chapter 59: How to Avoid Losing the Travel Reward Points You Collected

Chapter 60: How to Fight Back Against a Car Rental Company's Damage Claim

Part 5: Fighting Back Against Poor Retail Service

Chapter 61: How to Fight Back when a Store Refuses to Give a Refund

Chapter 62: How to Get Your Money Back when You Pay with Your Credit Card

Chapter 63: How to Return a Purchase That You Make Online

Chapter 64: How to Avoid Getting into Trouble with Online Purchases

Chapter 65: How to Fight Back Against Online Fraud

Chapter 66: How to Fight Back when You Find a Pricing Error

Chapter 67: How to Fight Back Against Automatic Renewals

Chapter 68: How to Avoid Losing Money on a Gym Membership

Chapter 69: How to Decide on Getting an Extended Warranty

Part 6: Protecting your Big-Dollar Purchases of Cars and Houses

Chapter 70: How to Fight Back when Your Car Does Not Work Properly

Chapter 71: How to Fight Back Against Car Leasing Charges

Call and Try to Negotiate

Don't Let a small Concession Suffice

Explore Third-Party Options

Call the Media If you are Getting Nowhere

Stand Strong in the Face of Adversity

Stand Strong and Reiterate the Options—A Settlement or more Bad Press

Give a Bit, take a Bit

Emphasize your Importance as a Future Customer

Think Twice about Buying End-of-Lease Insurance

Check the Leasing Company's Reputation Online

Realize that not All Leasing Companies are the Same

Chapter 72: How Not to Get Stung when Buying a Newly Built Home

Stage 1—Before Deciding to Purchase a Newly Built Home

Stage 2—Before Taking Possession of your Newly Built Home

Stage 3—Resolving Construction Defects after Taking Possession

Chapter 73: How to Fight Back in a Phony Real Estate Bidding War

Chapter 74: How to Resolve Issues with Your Energy Utility

Chapter 75: How to Fight Back Against Rogue Movers

Part 7: Using your Communication Skills and the Courts

Chapter 76: How to Write the Perfect Complaint Letter

Chapter 77: How to Create a Circle of Eyes on a Company You Want to Fight

1. Get as many Eyes Looking at your Problem as Possible

2. Prepare an Information Package

3. Raise the Stakes. Keep the Heat on

4. Use Blogs and Social Media

5. Hire an Objective Expert

6. Pick Other People's Brains

Chapter 78: How to Be Patient, Persistent and Prepared

Provide Evidence

Persistence Pays Off

Paperwork is Important

Do not Get Emotional

Preparation Helps in All Kinds of Situations

Chapter 79: How to Use Twitter to Put Pressure on a Business

Have a Presence

Be Nice

Be Patient and Persistent

Chapter 80: How to Deal with a Lawyer if You Have a Consumer Problem

Chapter 81: How to Fight Back in Small Claims Court

Index

Copyright © 2013 by Ellen Roseman

All rights reserved. No part of this work covered by the copyright herein may be reproduced or used in any form or by any means—graphic, electronic or mechanical—without the prior written permission of the publisher. Any request for photocopying, recording, taping or information storage and retrieval systems of any part of this book shall be directed in writing to The Canadian Copyright Licensing Agency (Access Copyright). For an Access Copyright license, visit www.accesscopyright.ca or call toll free 1-800-893-5777. For more information about Wiley products visit www.wiley.com.

Care has been taken to trace ownership of copyright material contained in this book. The publisher will gladly receive any information that will enable them to rectify any reference or credit line in subsequent editions.

The material in this publication is provided for information purposes only. Laws, regulations, and procedures are constantly changing, and the examples given are intended to be general guidelines only. This book is sold with the understanding that neither the author nor the publisher is engaged in rendering professional advice. It is strongly recommended that legal, accounting, tax, financial, insurance, and other advice or assistance be obtained before acting on any information contained in this book. If such advice or other assistance is required, the personal services of a competent professional should be sought.

Library and Archives Canada Cataloguing in Publication Data

Roseman, Ellen, 1947-

Fight back : 81 Ways to Help You Save Money and Protect Yourself from Corporate Trickery / Ellen Roseman.

Includes index.

Issued also in electronic formats.

ISBN 978-1-11830-088-6

1. Finance, Personal—Canada. I. Title.

HG179.R672 2012   332.02400971   C2012-906764-4

ISBN 978-1-118-30148-7 (eBk); 978-1-118-30149-4 (eBk); 978-1-118-30150-0 (eBk)

Production Credits

Cover design: Adrian So

Typesetter: Thomson Digital

John Wiley & Sons Canada, Ltd.

6045 Freemont Blvd.

Mississauga, Ontario

L5R 4J3

To my Toronto Star editors for giving me the freedom to advocate for consumers; to my readers for giving me their stories and support; and to my family (Edward, Charles and Richard) for giving me the strength to keep up the fight.

To my literary agent, Brian Wood, for encouraging me to write about fighting back; and to my guest contributors for adding their diverse voices and informed advice to the book.

Foreword

By Dave Chilton

I Love Ellen Roseman's Writing.

So much so, I actually pushed her to write the book you're holding. Then I had the nerve to ask to write the foreword (and I normally hate writing forewords!).

Why am I such a big fan of Ellen?

Quite simply because she helps people learn financial planning's most important skill: saving money. Personal-finance educators from Ben Franklin to the Wealthy Barber have preached, “Spend less than you make.” Fine advice, indeed. But Ellen takes it a key step further by adding “ . . . and here's how.”

This book, a truly amazing reference, will teach you how to negotiate better prices and contracts, know your rights (and companies' wrongs!) and make wise spending decisions.

Yes, I sound like an infomercial, but this book will truly pay for itself hundreds of times over. So, act now! Don't delay! Get reading!

And, keep it in a handy place—you'll refer back to it many times. I have already.

Dave Chiltonaka The Wealthy Barber

Introduction

My First Book, Consumer, Beware!, came out in 1974. And guess what? It was defective. The “perfect binding” (actually glue) separated from the pages, causing them to fall out in clumps.

This was embarrassing, as you can imagine. It was also funny to read the letters from unhappy buyers: “I have never written a complaint before, but following the template you gave on page X, I want to ask for my money back.”

The publisher, alas, was insolvent and had not paid the binder. But when it was bought by a bigger publisher, I asked the CEO for help. He recalled the books from the stores, rebound them and added a cover that said, “New and improved.”

That was my first taste of consumer activism. I succeeded in forcing an unsafe product off the shelves. Meanwhile, the readers who had the courage to complain received a replacement book. Those who did nothing lost out.

As a newspaper columnist, I am attracted to those who shake things up. Even when I veered into financial journalism, I found fertile ground for consumer activism in the mutual fund industry. Many companies treated investment advisers as their customers, while ignoring the needs of investors. That is no longer true.

I spend much of my time trying to help people with problems. There is a double standard in Canada. I call it two-tier service. Most businesses pay little attention to customers after the sale. They cut costs by outsourcing and making you wait on the phone. They send you boilerplate letters that say nothing.

In this book, I give you my best tricks for fighting back in areas where you spend lots of time and money (such as banking, telecommunications, travel and retail). I enlist advice from my best journalistic sources.

Here is my top tip: Your loyalty is valuable. Do not give it away. Tell your service suppliers how long you have been loyal to them. You helped build their brands. You recommended them to others. Without you, they cannot grow as quickly.

Be steadfast. Take nothing for granted. Keep up the fight. When a company says no, take it to the media. Use the courts.

Victory goes to those who are stubborn and persistent. You can get a better deal. You can fight back.

Part 1

Outsmarting the Banks

As Canadians, we love the convenience and personal service we get at the big banks. We know our banks did a solid job during the recession and stock market crash in 2008-2009. They withstood the stresses that sunk some financial institutions in the U.S. and overseas. We're proud of their strength and conservative lending practices.

But there are many things we don't like about the big banks. They can make us so annoyed that we head off to smaller financial institutions, hoping to find a more caring attitude and more respect for customers.

Why do banks keep increasing their service charges and adding new charges, despite making billion-dollar profits? Why do they impose fees on products and services we already own without asking for permission or even notifying us?

Suppose you're moving your registered retirement savings plan from one bank to another. You may not see the fees that your bank charges to transfer the investments elsewhere until after doing the paperwork. These fees may not even have existed when you opened your RRSP.

Why do banks play games with interest rates? They often post rates that apply only to customers who don't make an effort to negotiate a better deal. It would be nice if they gave us their best rates right away and didn't force us to grovel.

These fictitious posted rates can come back to haunt you if you make an early exit from a closed mortgage in order to sell or refinance. Banks often calculate the penalty using the higher rate you didn't have to pay, rather than the discounted rate you actually did pay.

Why do banks offer such a dizzying array of credit cards? You can easily get confused, trying to pick the best card for your needs and juggling the competing demands of interest rates, service charges, annual fees, warranties, cash back and travel or merchandise rewards.

Finally, why do banks try so hard to sell you insurance to protect your credit card balance if you get sick or lose your job? They used to do it in a sneaky way, adding it to your account and making you responsible to cancel it. Now the law has changed to outlaw such negative option billing. But some cardholders still say yes to telephone pitches for insurance, not knowing that it pays only the minimum balance each month and costs too much for the benefits that it offers.

It is clear that Canada's big banks can turn off loyal customers with their high-handed behaviour. But they do value your loyalty when you say you are ready to go to a competitor. They do not want to lose you.

You can get a better deal from your bank by playing on this desire to boost market share.

First, you describe what you want and what is available at other banks (after doing some research).

Second, you suggest that you will open new accounts or move accounts from other financial institutions if you get what you want.

Third, you will make an effort to encourage your friends and family to open or move accounts to the bank.

Fourth, you will use social media to talk about your good experience. You will not send negative comments to your Facebook friends and Twitter followers.

You get the picture. Banks want to get a greater share of your wallet. They negotiate with you and make concessions if you promise to send more business their way. They value the influence you have on people in your social and business networks.

If you sit tight and accept what you are offered, you will not get the best deals on products and services. You may only hear about them when you are on the way out the door.

Treat the bank as you would treat a telephone company or car dealer. Do not accept the posted price. Ask for what you want. Keep pushing for more. Explain your worth as a customer. Suggest that you will leave. Then, make the bank beg you to stay.

Chapter 1

Get a Higher Interest Rate on Your Savings

The Interest Rates that big banks pay on your savings are rather low. In some cases, they're downright pitiful. So why do many of us keep our extra cash there, instead of moving it to a low-cost competitor that pays a higher interest rate?

I'm talking about the five big banks that dominate the industry: Royal Bank of Canada (RBC), Toronto-Dominion (TD Canada Trust), Canadian Imperial Bank of Commerce (CIBC), Bank of Nova Scotia (Scotiabank) and Bank of Montreal (BMO).

The Big Five have thousands of branches across Canada, which provide personal service, financial advice—and, yes—sales pitches for mutual funds, RRSPs (registered retirement savings plans), TFSAs (tax-free savings accounts) and other lucrative investment products. The cost of keeping branches open and staffed during the week (and often on weekends) forces them to offer lower rates on savings accounts, term deposits and guaranteed investment certificates than virtual banks.

The Big Five just can't compete with smaller banks that do business with customers by phone or Internet. It's much cheaper for rivals to operate without the expense of bricks and mortar. When the Big Five do offer a higher-than-average savings rate, they usually require high minimum balances or punitive fees for transfers or withdrawals.

Look at the book publishing business and how it has changed. You save a few dollars when you buy a book online, even after paying the shipping cost. You save even more when you buy an electronic book online and download it to your reading device.

Banking has the same issues with higher costs in the real world and lower costs in the virtual world. The Big Five banks have a strategy of offering low posted rates to all their customers and then offering better rates for those who have more value to the bank. They keep their bottom line a secret, so you have to negotiate for the best deal that you can possibly get.

You don't have to settle for peanuts on your savings accounts, term deposits and guaranteed investment certificates. If you're a customer of the big banks, you can do better than the posted rate, as long as you're prepared to shop around and negotiate.

Here's how to get better rates:

Compare the rates paid at smaller banks compared to those paid by the big banks. You can find a comprehensive list of rates on savings products at the Toronto Star's website, www.thestar.com (go to “Business” and then to “Loans and Rates”).Try Cannex, another comparison shopping site (www.cannex.com). It's aimed at brokers, but does have some free information (such as the rates paid on Canadian deposit accounts).If you find a better deal at another big bank or a smaller rival, ask your own bank to match it. Suggest you will walk if you cannot get a matching offer.As bargaining chips, talk to the bank about your long-time loyalty as a customer and your family members' loyalty. Talk about the network of people you can influence.Argue that if you get what you want, you intend to open new accounts at the bank and transfer existing accounts from other financial institutions. Your network may do the same thing.If you suggest that you will take your money elsewhere if you cannot get a decent rate, be prepared to walk away. This cannot be an idle threat, nor can it be delivered in a hostile manner. Your aim is to be friendly, courteous and non-confrontational.Decide what to do if your bank refuses to match the savings rates offered by smaller institutions. Will you compromise? What is your bottom line? Will you settle for half a point more than the bank's posted rate? Or will you settle only for a full point?Work out your strategy in advance. If you are told that the bank has little room to negotiate on savings rates, ask for a deal on another product. The bank may be keen to sell mortgages and able to help you switch your mortgage from another institution with the appropriate inducements.