Debt Balance Transfer Complaints

• Debt balance transfers involve transferring a credit card balance to a credit card with a lower interest rate. Although some consumers often use debt balance transfers to their advantage, under certain circumstances, balance transfers can work against you. If you're a credit card holder, learning about debt balance transfer complaints can help you guard against fraudulent debt balance transfers.

Unauthorized Balance Transfers

• Consumer complaints often involve unauthorized balance transfers, according to Consumer Affairs. An unauthorized balance transfer might occur when a telemarketer calls you to promote their company's service and attempts to get your business. Despite your refusal of the offer, the telemarketer transfers the balance anyway and then bills you for the debt. Consumers who dispute the validity of the debt find that refusing to pay the debt generally results in late payment fees.

Telemarketers Offer to Negotiate Lower Interest Rates

• According to Bankrate.com, another balance transfer complaint involves calls from telemarketers who call credit card holders and offer to negotiate lower interest rates in exchange for a hefty upfront fee of about $1,000 or more. The telemarketer sets up a conference call with your credit card company to request a lower interest rate. Even when the telemarketer fails to obtain a lower interest rate, he transfers the balance to another credit card. Such telemarketers misrepresent themselves. They lead consumers to believe that they are paying for a debt management plan. The consumer is never informed of the telemarketer's intent to transfer the card balance to another credit card.

Undisclosed Fees

• Promotional credit card offers generally offer a 0 percent APR. Once you activate the card, you might receive a checkbook to conveniently help you pay off your debts. If you decide to use the checks to pay off other debts, you will likely receive a statement showing a one-time transfer fee. In addition, your new credit card company will likely charge you a cash-advance fee on each transaction, whether you obtain the cash through an ATM, over the counter or by check. Such fees are never disclosed. You will only find out about them when you receive your monthly statement or read the small print on the credit card agreement.