I want my money back: How to complain effectively

We work hard for our money, so it’s especially upsetting when we carefully budget for our purchases only to find that we’re not getting what we paid for.

Often, we complain at the lowest level but then give up when the problem isn’t resolved.

There are many ways to complain and to get your money back, however, so don’t give up until you’ve tried them all.

Start at the source

First, return to the store or website and talk to a store employee (or live chat a customer service representative on the website). This will resolve most problems. Describe the problem calmly and accurately, and present all documentation. If the employee cannot help you, ask for a supervisor. Document to whom you spoke, the date, and the outcome.

Escalate

Once it becomes clear that your problem won’t be solved at the source, stop wasting your time there. Call the company’s customer service number or access it through the company’s website. Again, if the first person cannot help, ask for a supervisor. Document all conversations here, too. If phone conversations don’t help, write a letter and include copies of your documentation.

Try social media

When direct contact fails, post your complaint on the company’s social media outlets. Often, a company’s social media manger is authorized to help when other employees aren’t, because the company wants to avoid negative comments on its social media accounts.

Get outside help

First, file a complaint with the Attorney General’s office and with Commerce and Insurance. In Tennessee, the websites are: https://www.tn.gov/attorneygeneral/working-for-tennessee/file-a-consumer-complaint.html and https://www.tn.gov/commerce/consumer/file-a-complaint.html . While you’re at it, complain at the federal level as well: https://www.ftccomplaintassistant.gov/#crnt&panel1-1

Second, consider going to local media. Most local TV stations of any size have a consumer “action line,” and these can be very effective when everything else has failed.

Be careful with online purchases

When buying online, stick to established companies such as Amazon, which has a process for settling disputes. Many online sellers are based in foreign countries, and it can be hard to get your money back or to get them to answer you at all.

Put important purchases on a credit card

While it’s important to be careful with credit card spending, put expensive items on your credit card if that option is available to you. If you’re not satisfied with the purchase, you can quickly and easily dispute the charge online with your credit card company. Then, the credit card company will go to bat for you to resolve the dispute, withholding the funds from the seller until the seller proves that they treated you fairly.

You have the right to be treated fairly and to get what you paid for. Be persistent, and you’ll be successful most of the time.

Get serious about paying off credit card debt

Our taxes are done, and winter is over, so it’s time to check in with a New Year’s Resolution that many of us have made: Get out of debt.

Credit card debt is one of the most difficult types of debt to eliminate, and it’s also the most common: The average American household now carries nearly $7,000 in credit card debt, and nearly one-third of those Americans pay just the minimum payment each month.

This is a debt emergency, and it’s time to bring in the big guns. Here are some strategies to pay off credit card debt sooner:

Pay more than the minimum payment

Many personal finance sites suggest paying the minimum monthly payment plus $10 per month. I disagree. You should instead pay as much as you can, even if it means selling some personal belongings, getting a second job, or renting out a spare bedroom. Do whatever it takes.

Bankrate.com has a series of helpful calculators that will help you pay down your debt, including this one that gives a sobering look at the true cost of paying the minimum payment: https://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx

Take out a different type of loan

If possible, take out a lower-interest loan and use the funds to pay off credit card debt.

Warning: This is a dangerous strategy and should be used only when you are certain that you will not charge anything else on the credit card.

Remember that credit card debt is bad debt, but at least it’s unsecured debt. In other words, you didn’t put up collateral when you took on this debt; therefore, the lender can’t foreclose on anything you own if you don’t pay the debt.

That’s not true with certain other loans. For example, if you take out a home equity loan and use the money to pay off credit card debt, you could lose your home if you don’t pay.

Negotiate a lower interest rate

Your credit card company values you as a customer and knows that you are getting low-interest offers in the mail from competing credit card companies. This gives you negotiating power, and your credit card company will often give you a lower interest rate in order to keep your business.

Call the customer service number on the back of your credit card and simply ask. Most credit card companies field these requests all day every day, so they are ready to offer you a lower interest rate.

If they say no, politely ask to speak to a supervisor, who has more power to grant your request.

A sample script: “I’ve been your customer since ____, and I’m interested in getting a lower interest rate. I’ve recently been offered a new credit card with ________ for an interest rate of ____%. Would you be willing to match that offer?”

Switch to a credit card with a lower interest rate

If your existing credit card company won’t lower your interest rate, considering transferring your balance to a new card, but be careful.

This is a risky move for two reasons: 1) Too many credit inquiries and too many open credit accounts can negatively affect your credit score, and 2) Consumers often switch to a card with a lower interest rate, only to find that the interest rate increases to 20 percent or more after six months or a year.

Read the fine print, and be sure you understand the new offer.

Negotiate a settlement

If you’re really in trouble, you can negotiate lower payments and even a lower balance with your credit card company. This will affect your credit score and may even have tax consequences, so this tip should be considered as a last resort.

For information on the various types of settlement options, this article gives a helpful overview: https://www.creditkarma.com/advice/i/negotiate-debt-credit-card-company/

No matter your level of credit card debt, make a commitment to pay it off and set yourself free.

From bad to worse: avoid these debt traps

By now, everyone has heard me say “all debt is bad debt!” Still, some types of debt are worse than other types. We tend to incur this debt when we’re desperate, and it’s very hard to pay it off.

Do whatever you can to avoid these debt traps:

Payday loans

Payday lenders offer small loans ($100 to $1,000, say, with an average term of two weeks) to get you through till payday. While the loans are small, the interest rates and fees are not! Payday lenders charge 400 percent interest and up, and they’re aggressive about collecting if you can’t pay back the loan on time. It’s better to be late on a utility bill than to fall prey to a payday loan. For more information about payday loans, visit the non-profit Payday Loan Consumer Information Center at https://paydayloaninfo.org/facts.

Rent-to-own

When your budget doesn’t allow for new furniture, electronics, or appliances, it’s tempting to succumb to those glossy rent-to-own sales papers that we get in the mail. It’s a bad deal, though. If you rent-to-own a $450 TV, you’ll make 52 weekly payments of $20 each, which means that you’ll end up paying $1,040 for the TV—that’s more than double the cash price! The truth is, most rent-to-own merchandise is a “want” and not a “need.” Instead, try buying gently used furniture and appliances on craigslist or at a second-hand store.

“Tote the Note” used car lots

These car lots sell older, cheaper used cars. That sounds great, but here’s the catch. The cars aren’t worth much, so the down payment you pay is what the car dealer paid for the entire car. That’s right: You could have bought the car yourself from the original seller if you had shopped around! These car dealers break even with your down payment, and the monthly payments you make—often at 18 to 38 percent interest—are pure profit. Here’s a better way to buy a cheap used car: https://www.mrmoneymustache.com/2011/04/19/how-to-come-out-way-ahead-when-buying-a-used-car/

Title loans

If you already own a car, you may be tempted to take out a short term loan using your car as collateral. Try to resist the temptation, however, because these loans are expensive and can easily result in your car being repossessed. Title loan companies charge hefty “loan origination” fees that they add onto your balance, and they charge high interest rates (often 25 percent PER MONTH!). Due to the high interest and fees, it’s very hard to pay off these loans, and again, the risk of repossession is high. Get more information here: https://www.consumer.ftc.gov/articles/0514-car-title-loans

It seems like everyone is trying to get us to borrow money or to buy expensive goods, but most of these offers are too good to be true. At times like this, it pays to remember our long-term goals.

Windfall: the joy of unclaimed property

You’ve probably seen the ads that encourage you to search for unclaimed money. It sounds like a scam, but there’s some truth to this one. State governments are holding more than $40 billion nationwide for people like us. Tennessee alone holds $994 million.

I searched for unclaimed money in my own name and found none (naturally), but I did locate $450 for my mother, and $350 for one friend and a whopping $864 for another. (I’m a good friend.)

It’s free and easy to search, so why not give it a try? Here’s how:

Why would I have unclaimed money?

Each state has an agency that holds unclaimed property. When a business owes you money, it must try to return the money to you. If it cannot find you, the business must surrender the money to the state agency in charge of unclaimed property.

The most common scenario: You move but forget to close out a small bank account or fail to ask the power company to return your deposit. That money just sits there until you return to claim it.

If you’ve moved even a few times—especially if you’ve got family in the military—I urge you to check.

How to claim the money

Every state’s website has a free unclaimed property search, so search this website in every state in which you have ever lived. You can search for yourself or anyone else, but you will only be able to claim money in your own name.

In Tennessee, it’s https://treasury.tn.gov/Unclaimed-Property/Claim-Unclaimed-Property/Find-Your-Missing-Money

Once you navigate to that state’s website, you’ll do a quick name search. The results are returned immediately—usually a list of names and cities. If you’re listed there, the website gives you simple instructions to claim the money. Typically, you fill out a form and sign it (an affidavit) and mail it to the agency with documentation such as a copy of your driver’s license to verify your identity. (A few states allow you to submit the affidavit and documentation online and receive your funds by direct deposit.)

All states participate in a nationwide database, but there is a lag time for reporting to this database, so it’s best to search the nationwide website and then follow up with each state’s website to be sure. To search nationwide, go to http://www.unclaimed.org/

Once your claim is processed, the check comes in about four weeks.

Avoid scams

It’s free and simple to claim your money, so there’s no need to pay a third party to help you with this task.

Some legitimate websites, such as creditkarma.com, will help you search, but only a few states have partnered with them. It’s best to go directly to the state’s website, and of course make sure the website ends in .gov.