A couple of years ago, my sister in law gave me a $100 Visa Gift Card as a present. She purchased the card at Fred Meyers. The nice thing (in theory) about Visa gift cards is that you can use them anywhere and are not stuck using them at just one store.
While cleaning my desk tonight, I found the Visa Gift Card, issued by Green Dot Online. I was pretty sure there was a few dollars left on the card. I’d hate to leave money on the table so I called Green Dot Online to check and see if there was a remaining balance. After all, even $1 is a nice chunk downpayment on a warm and luxurious latte.
The automated attendant told me it was $.75 to check my balance. I hung up. But, then got to thinking, “Nah, that has to be a mistake. Who charges to let you access their automated phone system?”
So, I called back. Yep. They do charge $.75 to access your remaining balance. Okaaaaay … I went ahead and pressed 1 to hear my balance. Shocker of shocker when I found out my gift card was overdrawn by $9.70! What? How is that possible? It’s a gift card. How could I have overdrawn a gift card? And, I’m pretty sure I didn’t spend more than $84 on it. My careful notes on the front of the card in sharpie pen said I hadn’t.
I pressed “0” to speak to an attendant. It turns out that this “Gift Card” charges $4.95 PER MONTH as a maintenance fee on my account and has been charging that for about 7 months now.
7 months (or so) ago, I had $16.05 left on the card. Now, I apparently owe them $9.70 just for the privilege of being given this gift card. To add insult to injury, my sister in law had to “activate” the gift card for $9.95 to start with. So, her $100 gift to me actually got me $84 in product but cost an additional $35.70 ($25.75 from me in bogus “servicing fees” plus $9.95 from her to “activate” the card). So, the net-net of this $100 gift card ended up being $64.30
What a racket. And, sadly, it’s a racket that preys on people that don’t have good credit or bank balances (since it pretends to be a credit or debit card). In this case, the gift was still very appreciated and the original sentiment is still valid but what a disappointing rip-off. I wonder if Fred Meyer’s knows how unethical Green Dot Online gift card is? I think I’ll tell them. Their “Customer Feedback Page” is right here.
as you have never signed a credit agreement with them, how can they charge you ???
They would have no legal leg to stand on to get the charges back ?
I use phone cards a lot and learnt to read the small print. Some monthly maintenance charges are just stupid
That goes right up there with some of the craziest things I’ve ever heard. Unbelievable! Thanks for letting us know. I’ve gotten into reading the fine print on everything because a credit card company once enrolled me in something just because I told them not too and I didn’t realize that they were charging me every month. Then when I found out they were charging me, they credited me the money so I spent it and then after I spent it they took it back and said they didn’t mean to give me all of it back so I owed them!
Disgusting. Disgusting and despicable.
Certain states (like California) have laws preventing this type of scam. Sometimes you’ll even see “Not applicable in CA” on the back of the card, after the fine print that specifies all the charges.
Maybe a letter to one’s representatives is in order?
I think there may be some confusion on the card. She didn’t give you a VISA gift card. She gave you a VISA pre-paid debit card, which is a re-loadable card. It is personalized with your name (that’s the giveawy, along with the word ‘debit’). These are sold in the same places as the gift cards, so that causes a lot of problems. It’s unfortunate that you got the wrong kind, and that she had to pay those fees.
You have heard of the gift that keeps on giving, well this was the gift that kept on taking !!!
wow. another case for learning
CP. what does debbie do? is there any way to wrap it so it doesn’t melt? thanks.
Kat,
Yes, melt and pour can melt in transit. It does get very hot and shipping to warmer climates can be problematic.
The most recent Saponifier had a special on making CP swirls. I’d spend the $12-$14 to get their special publication on it. It was a good helpful tutorial.
Coconut Lemongrass blends – duly noted! =))
Leslie,
Just to clarify – the gift card isn’t a Fred Meyer’s gift card – it’s one of those pre-paid Visas from Green Dot that Fred Meyer’s sells. I doubt they even know about the unfortunate business practices that Green Dot utilizes.
The cost of doing business, (the question is who is profiting at whose expense) is crossing the fine lines of ethical. After 25+ year in banking it still doesn’t surprise me.
This ranks right up there with advancing your payment period on a credit card when you make a monthly payment over the minimum or before the payment date, and then they change your payment due date. When you go to pay next month’s payment, not looking that the payment date has been advanced, you’re charged an absurb fee. This is how they make their money. It’s the same way for gift cards. And credit cards, well that’s another subject!!!!
CASH, CASH, CASH, no strings attached.
Anne Marie,
I would like to ask 3 important questions. Do you have a second or two?
1) Has anyone ever had products melt in transport? when my IT man was here helping me put out the fire, he saw my order and said, doesn't that stuff melt? how hot do UPS trucks get? he started me worrying because we live in the almost deep south, and our summers get into the 90's. I know it gets hot in those UPS trucks, but have you ever had this problem of melting M&P either 1) at a weekend market or 2) inside shipping boxes when shipped ground ups? i thought the melting point was 120F so it should not be a problem…after all we are pretty far from the equator π
2) as much as I want to i don't think I can make it either to alabama or bellingham for training this summer…still hoping but it doesn't look promising. Does your DVD training series on how to make CP soap go over those wonderful swirls that i see in other people stores? i would so like to make beautiful swirled CP soap. do the same principles apply to traced soap as well as the Soap Queen layers? or, is there a source you can point me to?
3) recently ordered the Thai Coconut Lemongrass fragrance from BB. I am looking to add some fruity or jasminy, or other things to it to add some pizazz or spark.
Can or did you ever offer any other combinations like you did on the Cranberry Fig or Pomegranate Black Currant? I am chasing a smell that captured my heart in a Bangkok Marriott Hotel guest soap years ago, and since i have no perfumery experience i thought you might have some imput π π π
it was sensational…
ok, enough time consuming questions for the Queen! thanks for all you do!
Seriously. I can’t believe they can do that!!! I’m guessing they won’t be doing it for long once the word gets out. Thanks for spreading it!
There are also problems at check out with these stupid cards. Some stores cannot process the card unless you are spending exactly or less than the amount left on the card. These cards have been a big fat scam since they came out.
I give cash anymore. It’s accepted everywhere and with no hidden fees. π
That’s terrible!
I gave a $300 Fred Meyer gift card to the neighbor (she a friend, as well) that found my Dad after he died (it had been less than 48 hours). I mean, I wanted to do more than give her a nice Hallmark card, know what I mean?
I thought, the holidays were coming up (he died on his 88th birthday, Nov. 7) and I know she shops at FM, so the gift card seemed like a nice idea. I wrote her a note, along with the gift card, saying Dad would have wanted her to have a wonderful holiday and splurge on something they might not usually buy. She was really touched.
I’m going to see her later today and ask if she got scammed with charges on the card.
I’ll not buy any gift cards from FM ever again, based on what happened to you! And, I’ll make sure to inquire as to policy on any gift cards before I consider purchasing one.
Sorry for the rip-off. π
Leslie
That’s terrible. I don’t know how some people can sleep at night.
Thank you for the head’s up on this!
That is particularly horrible. I hope they dont expect you to pay that overdrawn balance!
That’s awful! I don’t see how they can get away with this and still call it a “gift card”…
More people ought to be aware of this… you should forward this post to Consumerist.com
here you go: looks like 2006 this came up and I’m not sure if the FTC had ever come to any conclusion.
http://www.consumeraffairs.com/news04/2006/02/gift_cards_congress.html
HTH!
Total rip off – and if I remember right a bit back didn’t they pass a law saying that they couldn’t do that anymore? Not to send you on a wild goose chase but it does seem a little bait and switchy… I’ll go look myself…
Thanks for the heads up on this, I’ve actually thought about getting one just to use online, what a rip-off:(
some mall gift cards do that now too, so sad….
That’s awful!! π
That is insane! I’ve never given a ‘credit’ gift card, I prefer cold hard cash, but now I know I never will!
All I can say Ann Marie is: Sickening. Glad you exposed them.
I hate thieves! What I hate even more than thieves are sneaky, dishonest thieving thieves.
Yeah. They can suck it.
Oh my gosh, that is crazy!! Thanks so much for posting this though, we are taking over the finances for my mother-in-law and I thought that would be a perfect way for her to have a few hundred spending cash to carry on her, without having to carry bills. Yeah, we are not gonna do that now. Thanks so much!