Credit Card Opt Out Options
Credit card companies often bombard their current account holders with additional offers or new accounts terms. They also send out tempting solicitations to potential customers. Sometimes the offers are valuable, but often they end up in the garbage can. People can stop them from arriving by opting out so the paper is not wasted.
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Definition
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Credit card opt-outs involve electing not to participate in something related to a current credit card of an account holder. For example, a customer might not wish to receive promotions, or refuses to agree to certain terms. People can also opt out of solicitations from banks seeking new credit card business, according to the Federal Trade Commission (FTC).
Global
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A global opt-out from credit card solicitations is done through the optoutprescreen.com website, which is run by the Innovis, TransUnion, Equifax and Experian reporting agencies. The FTC explains that these companies sell consumer information to banks and insurance companies that wish to send offers to people who meet certain financial requirements. The website lets consumers stop this process by opting out of all offers, either permanently or for five years. Customers can temporarily opt back in when they are looking for new cards with good terms.
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Personal
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Consumers must opt out of solicitations directly with their current credit card companies. Banks send offers to people with whom they have a business relationship, even if the customers have globally opted out of receiving prescreening. However, the banks will stop if the customer specifically request it.
The Credit Card Accountability Responsibility and Disclosure Act (CCARD) of 2009 automatically protects consumers from being able to spend more than their limit unless they specifically give the bank permission to allow it. The bank can charge a fee to account holders who opt in and subsequently exceed their limits. CCARD also lets consumers opt out of certain changes in account terms, according to the Consumer Action advocacy website.
Effects
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Opting out of credit card solicitations prevents identity theft, according to the Privacy Rights Clearinghouse. Criminals often steal bank correspondence or preapproved offers from mailboxes, and take over existing accounts or open new ones in the victim's name. Stopping solicitations cuts down on the amount of mail that is valuable to thieves.
Warning
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Banks can close credit card accounts if customers opt out of certain changes as allowed by CCARD, Consumer Action warns. For example, a customer can say no to fee increases and continue to pay off the balance under the original terms. However, the bank can close the account to future charges, and it is completely closed once the balance reaches zero.
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