RIP-OFF ALERT: Are you among the 70% of Americans who runs a balance on your credit cards? Your credit card issuer may be sneaking a rate change via a legalese statement that could show up with your next statement.

Here's the story: When interest rates started going up 3 years ago, issuers realized they could make more money by converting fixed-rate cards to variable-rate ones. So sure enough Clark started getting calls about that phenomenon.

Now they're doing the opposite thing as interest rates are declining. Dow Jones reports that Capital One has been doing this on new accounts only.

In theory, Clark has no problems with banks raising the rates on their credit cards to 1,000% on future purchases. Of course, it wouldn't be right to raise them retroactively on purchases you've already charged up.

If your issuer tries the latter tactic, you'll be hurting if you carry a balance. That's why you need to be in the 30% who don't carry revolving debt on their credit cards. Remember, the banks can't hurt you unless you give them permission to do so through your debt.

RIP-OFF ALERT: Zombie debt is a lucrative and illegal part of the debt-collection world that Clark wants to warn you about. Scavenger collectors buy up expired debts that can be up to 30 years old for as little as 1 penny on the dollar. Then they unleash vicious collectors to try to collect, and frequently violate the Fair Debt Collection Practices Act in the process. They may be going after debts set aside in bankruptcy; stemming from ID theft; or that have passed the statute of limitations, which is typically 4 years on credit card debt. There is no legal way they can collect these debts, but that doesn't stop the scavengers from trying to intimidate you.

This is not a discussion about whether or not you should pay your bills; this is about what your rights are on old debts. The scavengers are so good that they typically collect about 13 cents on every dollar. Many of them also engage in illegal activities by wrongfully putting old debts back on your credit report; harassing you over the phone; or secretly taking money out of your account. If you're being harassed by a zombie debt collector, send them a certified letter stating the debt is invalid and instructing them to stop contacting you. But beware that scavengers don't care if the debt is valid. They've declared war on your wallet and will use any tactics. Be tough and know your rights.

This was a year of embarrassment for colleges who were in cahoots with unethical banks and other lenders. First there was the whole student loan scandal. Now The Milwaukee Journal Sentinel reports that there are some dubious practices taking place on campuses related to student credit cards. Many schools get kickbacks for allowing there to be an "official bank" on campus. Such financial institutions offer outrageous terms and conditions on their credit and debit cards for students. The universities do this to get money under the table money from the banks. These arrangements are technically "partnerships," according to the schools. But the fees on the cards are almost double those available in the general marketplace. Clark believes a full investigation is necessary. As he says, if university officials have been getting bribes, they should go to prison. This is yet another thing for parents to worry about when packing their kids up for college at the end of the summer. Clark says to shop around on campus for a bank or credit union that's available to faculty, staff and students -- instead of just going to the preferred campus lender where the university sells out its students. What is going on in the banking world that offering bribes and kickbacks are becoming so routine??

Did you know that if a criminal gets your credit card number, they can show their "generosity" by donating money to charity using your credit card? Why are criminals doing this? This is happening because the charities will let the criminal know if the card is verified and still active. More importantly, it's a great way for criminals to test if the card will be reported stolen, according to a story Clark read in Newsday. Criminals can then sell your verified card number for three times the value of an unverified card! If someone steals an unverified number, it's worth $6; if it is verified, it sells for $18. The Red Cross has reported 700 fraudulent donations using stolen cards last month alone! Therefore, if you see a small unauthorized charity donation on your bill, be alert. Clark says the solution to this problem is so easy. The credit card companies should do what is done in Europe by inserting a smart chip in the card which requires a secret code. So even if someone steals your card, if they don’t know your code the card can’t be used. The result in Europe is that credit card fraud is nowhere near the problem it is in the United States. So why are we still using '60s technology to print out credit cards here? It seems like the banks would rather deal with the fraud that occurs and then clean up the mess after the fact, rather than spend the money proactively to get things done right in the first place.

A criminal ring based out of California has been moving around the country, stealing people’s debit and credit cards by taking over the card swiping machines incheck-out lines at retailers. Oftentimes, the cardholder never knows they've been a victim. What happens is the criminals either pretend to be technicians or they work in groups to distract cashiers, allowing time to install a small device on the card-swiping machine at the counter. Then, every time a customer swipes a card, the criminals capture the number and secret code entered. Within minutes, they have pulled hundreds of thousands of dollars out of accounts. It’s a very big, very efficient ring. So what can you do? Well, the greatest risk comes to those using debit cards because that money may not be replaceable. At least if you’re using a credit card you can file a dispute and get your money back. Other than that, make sure you check your statements religiously every month. If the criminals have created an exact duplicate of your card, it’s going to be hard to prove it wasn’t you making those charges. So, keep an eye on your accounts – always. And, if you can, use cash!

Have you heard of “Buyer’s Advantage?” Supposedly, it's a marketing program sponsored by certain banks and credit card companies that allows you to get discounts on merchandise. But that is a bunch of hooey. It’s really an excuse for companies to remove money from their customer’s accounts. Chase and Bank of America are soliciting for Buyer’s Advantage and it’s one of the worst schemes out there. The banks will send you a $10 check or “account credit” that signs you up for Buyer’s Advantage. The problem is that when you sign and cash the check or take the credit, you are agreeing to pay an annual fee of $150 for nothing. The money is usually a small monthly deduction from checking accounts, and people just don’t notice it. So, check your statements and if you see something questionable, dispute it right away!

Have you shopped at T.J. Maxx, Marshalls, Bob’s Stores, Homegoods, Home Sense or A.J. Wright in the last year? You may have heard about the data breach at the parent company for those stores – TJX. And you may have just moved on to the next story. But you may want to pay closer attention to this one. Why? Banks, credit unions and issuers of debit cards have discovered that the cards have been used quite heavily. These are very smart criminals who will basically use up one card as much as possible before moving on to the other. The ring knows how to play the game, and they’re using the limits wisely. Then, if you try to use your card, the checks are bouncing left and right. The worst part is that Visa and MasterCard doesn’t require its member banks to cover your losses if your account has been looted. It’s up to the individual bank. Yet, Visa in particular claims it offers such good protection for cardholders. That is baloney. If you’ve used your credit or debit card at one of these stores, you need to heed Clark’s advice. You need to call your bank or credit union and get your debit card replaced. Even if nothing has happened to your account, you should do this as a preventative measure. If someone runs up charges on your credit card, you’re fine as long as you check your statement for unauthorized charges and dispute them.

Have you heard about “Operation French Fry?” Sounds a bit hokey, we know. But the sting was actually very effective in catching criminals who were stealing your money. Operation French Fry was a multi-agency sting targeting high-end restaurants, where servers were skimming money off customers' credit cards. The servers were swiping the cards through an attachment they plugged into the regular swiper and sending your information to criminal rings. The rings then used the information to buy goods all over the world. The servers were paid for each person’s information and they made millions very quickly. It’s a good idea not to let your card out of your sight these days, especially at restaurants. Skim your own card if you can. But if that’s not possible – and it’s probably not in most places - just be sure that you never pay for a meal with your debit card. If you charge a meal on your debit card, you may not get it back. In addition, you may wrack up numerous bounced check charges if the account has been compromised. With credit cards, you can get the money back through a chargeback. These skimming scams are getting bigger, especially in restaurants. So, be careful!

As you probably know, Clark despises fake Visa and MasterCard debit cards. But there is one customer who should use this product. If you cannot control yourself with a credit card, you should get a debit card and only a debit card. The risk is that anyone can use your card and empty your bank account as long as they know your PIN. It’s not that hard, believe it or not. It happened to 3 million people last year. The average person had $900 debited from his or her checking account. Most of us can’t afford to have that much taken out at one time, yet there is no requirement that Visa or MasterCard cover you when a criminal steals your money. So, essentially you’re fighting to get your own money back. Fraud related to debit cards now accounts for 88 percent of their chargebacks, according to credit unions. Credit cards account for only 12 percent these days. If you don’t need to use a debit card and the only reason you use it is to withdraw money, just get a simple ATM care. Some banks refuse to issue just an ATM card because they make so much off the debit cards. If that’s the case, give that bank the boot!

When you attempt to buy something online are you concerned about crooks getting a hold of your information? Online sales are dropping because of it. But you can make it a much safer transaction by using randomly assigned numbers for purchases. Several companies used to do this, but the demand for online purchases was low so the companies did away with them. Now, according to the Washington Post, these “virtual credit cards” are back. Basically, your credit card sets up a unique one-time use credit card number when you buy the item. The next time you buy something, another number is used. So no matter what happens your number can’t be figured out. Some of the bigs in the credit card business offer these virtual numbers, including MBNA, Citigroup and Discover. American Express used to offer it, but it was discontinued possibly because of lack of use. So what are the chances that someone will commit credit card fraud against you? Just under 4 million people have their credit cards stolen each year. About 80 percent of the time, the theft is not Web-related. That means people are getting the number off paperwork or from your mail. You have to examine your statement every month to make sure there are no bogus charges on it. Numbers are not supposed to appear on your receipts, but there are occasions when it still happens. So, it’s up to you to protect yourself.

The Attorney General in California is suing Chase Bank for sending people reward checks that eventually tied those people into paying a $70 to $120 annual membership fee. Chase was specifically looking for foreigners and older people, according to the AG's office. And, an estimated $28 million was taken from victims, according to the L.A. Times. Chase has yet to comment about the lawsuit. But Clark wants to warn you! When you get a check for a couple dollars in the mail, DO NOT CASH IT! More often than not, cashing the check will rope you into some kind of contract. Companies are not going to send you free money for no reason. There is always a catch.

The Federal Reserve is trying to figure out what to do about credit card disclosures because the print is so small and hard to read. Even lawyers get confused when they try to explain the disclosures. The Federal Reserve is trying to figure out if the disclosures should be written in layman’s terms, and, of course, banks are furious about it. A reporter at bankrate.com wrote a story on balance transfers from credit card offers and the small print explaining them. He analyzed the process step-by-step and found twelve ‘gotchas’ in the explanation. Obviously, the Federal Reserve is on the right track. Clark believes the banking industry has a major problem with greed, especially when dealing with credit card portfolios. You should not have to go through a twelve-step test in order to figure out your balance transfer. Clark wants you to go through any disclosures for credit cards you have and find the gotchas that may get you!

Clark wants to give you extra incentive for looking through your credit card bills over the next few months. He doesn’t want to help crooks succeed by going into detail, but basically thieves have figured out a way to steal your money and it involves the “ship to” and billing addresses on online forms. It allows them to get the merchandise and you get the bill. MSNBC reports that it’s spreading like wildfire, so you need to check your statements carefully. Verify the amount you were supposed to be charged. If something shows up on your bill that you didn’t buy or receive, you need to dispute it right away. You have 60 days to file a chargeback complaint and get YOUR money back. Online retailers also need to be careful because they can get taken, if they don’t manually check the addressed they’re sending to.

Clark wants to warn you about an ATM scam that could wipe out your bank accounts without you ever knowing. About a year ago, Clark issued a warning about an ATM scam that involves your card getting stuck in the machine. What happens is people put their card into the slot, enter their secret code and nothing happens. When they try to cancel the transaction, the card doesn’t come back out and people think it’s just stuck. In truth, there is a criminal across the street who has put a “sleeve” in the machine and has been watching as you enter you code. When you leave, that person retrieves your card and empties your account. If you used a Visa or MasterCard debit card, it could mean an even more expensive shopping spree. Banks don’t want to help because they assume that you gave someone your secret code and are trying to scam them. But the truth is that it is the bank’s problem. Many people don’t know that they have to report this as a crime right away. If it’s the weekend, you can’t report it until Monday, and that can be very detrimental. This crime is rapidly spreading, so you need to know what to do. If you suspect your card has been swiped, call the bank immediately on the hotline number. Don’t give the criminals a chance to wipe your bank account. Also, watch to see if someone stops at the ATM right after you and get his or her tag number. Just don’t attempt to confront him or her; it’s too dangerous. Try to only use ATM’s at your own financial institution because that will lessen the chaos of trying to deal with another institution if this happens to you.

Clark often reports on ripoffs going on in the consumer world. Today, he has a Top 10 list of scams, schemes and scandals, provided by the state regulators who watch over financial analysts and brokers. Drum roll please…. The No. 10 scam is variable annuities. If you don’t know what these are and you don’t have any, good. If you do, you don’t want to put any more money into these plans. They have massive commissions and are absolutely horrible for your wallet. No. 9 are scandalous mutual fund companies. No. 8 is Internet fraud. No. 7 are “high yield investment” scams. Some that Clark has received calls on involve exotic overseas investments that are a complete scam. Insurance agents who sell people bogus investments come in at No. 6. Most insurance agents are honest, but a number of them have been involved in very scandalous affairs. No. 5 are church ripoffs. Just because someone seems religious does not mean that person is on the up and up. At No. 4, phony brokers. Just because someone says something is going to be a great investment doesn’t mean it will. Promissory notes – or fake CDs – are No. 3. These are promises that someone will pay you later if you give them money. But there is no guarantee, and it’s not safe. No. 2 is any kind of scam against seniors. If you’re not involved in your parents’ finances, be nosy! And, the No. 1 scam in the U.S. involving your wallet are Ponzi schemes. These are schemes where criminals recruit people to pay back other people who have invested, and then you have to recruit someone once you’re in. Eventually, these collapse because there are no more people willing to “invest.” There a lots of people who will sell you sizzle, but that’s all it is.

Clark wants to make sure you know about some scams taking place right now that could hurt your pocketbook. With the first one, you get a phone call from someone claiming to be from the security or fraud department of your credit card company. They even know your card number and what bank issued your card. How that information is being obtained is unknown. But they will claim that there has been an unusual purchase on your account, and they’ll tell you what the supposed charge is. When you say you didn’t make that charge, they will then offer you a credit and give you a number to call to get it. Then the scam takes place. After all of that, they will verify that you are in possession of your card so they ask for your three- or four-digit secret code. This is the only information they don’t have, so once you say it you’ve given them full access. Unless you’re initiating the order, you never give that number over the phone. And no one should ask for it.

---

Clark read about another scam in the Orlando Sentinel involving “skimmers” that steal the information from your credit card or ATM card. It started out at ATM machines, and now the criminals have tapped into pay-at-the-pump gas stations. They put hardware into the credit card scanners that captures your information in a second. It’s especially dangerous if you’re using a debit card to buy gas because you basically have no chargeback rights if a fraudulent claim is placed on your car. Gas station owners don’t even know this is going on, but it’s been reported in Florida and California. Clark tells you things so you are careful out there. It doesn’t mean everyone is a criminal. But you need to check your statements and be cautious.