:: Extra cash can come in handy — especially if it's yours
Smart consumers know better than to fall for promises of "free money." Especially when the "transaction" requires you to first mail a sizable personal check to a bank in Belize.
But occasionally, consumers overlook money that's rightfully theirs. As the year moves toward a close, we offer several possible sources of no-strings-attached cash. Don't quit your day job; we're not talking about big bucks. But as those holiday bills start to arrive, every little bit helps. Some examples:
•Currency conversion refund. If you traveled overseas in the past 10 years and used a credit card, you're eligible for a rebate of at least $25.
The rebate stems from the $336 million settlement of a class-action lawsuit against the major credit card issuers, which were accused of failing to disclose currency conversion fees. These fees can add up to 3% of the cost of foreign purchases. The settlement affects consumers who used a credit or debit card with a Visa, MasterCard or Diner's Club logo, for foreign purchases and transactions between Feb. 1, 1996, and Nov. 8, 2006.
You may have already received a notice in the mail offering a "$25 Easy Refund." The "easy refund" option is recommended for consumers who traveled outside the USA for less than a week or made foreign transactions of less than $2,500. The $25 rebate covers fees for all eligible credit cards used during the period covered by the settlement.
FIND MORE STORIES IN: Internal Revenue Service
If you spent more than $2,500 outside the USA and can estimate how many days you spent abroad, you can apply for a rebate of up to 1% of your transactions, based on a formula tied to typical spending patterns.
Frequent travelers who can estimate the amount they spent each year can apply for a rebate of up to 3% of their transactions. That doesn't mean you'll receive the entire amount. If the amount of claims filed exceeds the settlement, the payouts will be reduced. The deadline for filing is May 30, 2008.
To file a claim, you'll have to provide personal information, including an account number for at least one of your credit cards. For that reason, consumers should be alert for lookalike scams designed to steal personal information, says Edward Johnson, president of the Better Business Bureau for Washington, D.C., and eastern Pennsylvania.
"While this particular class action is legitimate, we fully anticipate copycat offers to emerge," Johnson says. "Scammers will attempt to confuse and deceive consumers over this issue."
If you respond by mail, send your information to the authorized mailing address: U.S. District Court Settlement Administrator, P.O. Box 290, Philadelphia, PA 19105-0290. To file an online claim, go to ccfsettlement.com and make sure that "https" appears in your browser window. That means your information will be encrypted before it's transmitted.
•Claim your tax refund. Every year, thousands of Americans leave their tax refunds on the table. For tax year 2006, the IRS says it has about $110 million in refund checks for about 115,000 taxpayers. Average unclaimed refund: $953.
In most cases, these are checks that were returned to the government because the taxpayers moved and failed to inform the IRS of their new address. If you might be eligible, go to irs.gov and click the link marked "Where's My Refund?" To use the tool, you'll need to provide your Social Security number, your filing status and the amount of the refund on your 2006 return.
The National Taxpayers Union also offers a search tool for unclaimed refunds at www.ntu.org.
Again, be alert for fraud. The IRS doesn't send e-mails to taxpayers who haven't claimed their refunds. If you receive an e-mail claiming that you're eligible for a refund, delete it. These e-mails are "phishing" scams that are designed to obtain personal information coveted by identity thieves.
•Claim your property. About $32.8 billion in unclaimed property is sitting in state treasuries. This property includes stocks, uncashed dividend checks, forgotten bank accounts, lawsuit settlements and undelivered refunds.
Some companies offer to help consumers find unclaimed property, for a fee. But you don't need to pay someone to find out if any of the money belongs to you, says Noreen Perrotta, deputy editor of Consumer Reports Money Adviser. You can search for free at missingmoney.com, a website operated by the National Association of Unclaimed Property Administrators. The site also provides an online form you can use to file a claim with the state that's holding your property.
Occasionally, people discover they've inherited money from long-lost relatives, Perrotta says, but the average value of lost property claims is about $100.
