Dear Ben: Please don't hammer me too hard, because I do know better. I recently wasted an afternoon fighting traffic at the local mall because I was gullible and believed a recent advertisement from a national jewelry store chain that promoted what appeared to be a beautiful five carat (total weight) tennis bracelet for $500 (normally priced at $1,200). When I got to the store I was stunned to see the actual piece of jewelry, because it didn't look like the one pictured in the ad. I could never give that piece of junk to my girlfriend as originally intended. How can this company get away with this obvious and blatantly deceptive advertising?
Steamed in Cowtown
Dear Steamed: They're "getting away with it" because law enforcement officials around the country haven't received enough complaints about them...yet. The only way state (attorneys general) or federal (Federal Trade Commission) agencies know "who's doing what and to whom" is usually a result of the number of complaints showing up on their respective radars. I've been screaming about the blatant misuse of the term "non-profit" by the credit counseling industry for years, and finally authorities (in Austin and Washington D.C.) have been awakened to this fact, recently launching investigations against the biggest abusers.
How many times have you noticed the hamburger you picked up at the drive-thru window didn't look nearly as appetizing as the ones promoted in print ads on TV? Is it deceptive advertising...or just great photography? According to Bill Oyster, president of Dallas-based Dallas Gold and Silver Exchange: "There's a definitely a difference in sales strategies between the big national jewelry store chains and the rest of us. They can't stay in business selling the junk they're promoting. They use these ad campaigns to get people in the door, then start the "up-selling" process to try to move buyers to a much higher-priced piece of merchandise. Consumers responding to an ad for a $199 piece of jewelry figure out pretty fast that they're going to have to spend more money than they'd intended. Their sales staff are trained to convert that $199 (originally-planned) sales into a down payment, followed by three years' worth of $50 a month payments-at 20% (or higher) interest rates."
Hmmmmm...you think they might be in the business of selling financing over jewelry? Check out my tips on buying jewelry or higher-end watches (either in person or on-line): www.bendover.com/jewelry.asp. By the way-these tips will not only come in handy over the next three weeks of this year's holiday-buying season, but for the biggest jewelry gifting-day of the year: Valentine's Day is only 72 days away!
Dear Ben: I purchased a used car in August, 2001. My credit is "less than par," and I never knew to ask about interest rate on the loan. After making a couple of payments, I was curious how much I was being charged. It turns out they were sticking me with a whopping 21 percent interest rate. I questioned them about this rate-they said it would be on my contract...at which point I advised them that I never received a copy. The told me they'd send it, but never did. I've been involved in an ongoing dispute over the car (due to an electrical issue) that they lied about from the very beginning, but recently paid the car off (last month) and I finally received my copy of the contract. Guess what? I never signed it! Am I just out of luck (and should I consider this a very expensive lesson) or do I have any recourse?
Broke and Miserable in Richardson
Dear B&M: It sounds like you earned a valuable lesson from this debacle. You deserved the 21 percent rate because you blindly signed the contract...(or at least thought you did). You may have a case-there are plenty of attorneys that read this column and will advise me if you've got a legal leg to stand on. In the mean time, thanks for making my readers much smarter...at your expense.
Dose of Dover For The Week: Don't end up like our pal B&M (above). Use your head before you drive off the car lot! Here's some free advice that'll make you smarter-and keep you off the victim's list: www.bendover.com/cartips.asp.
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