Does anyone know what the issue with this is?

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MemberSince99
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Does anyone know what the issue with this is?

Postby MemberSince99 » Sun Nov 24, 2013 10:13 am

I have read stories of lenders not liking people buying coins from the US Mint.


I'm trying to think of why that is such a terrible thing and not coming up with any reasons (or any reasons why your lenders should care as long as they get paid).


Does anyone know?


Midori
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Postby Midori » Sun Nov 24, 2013 10:46 am

I'd read stories about the US Mint not liking people buying coins with credit cards. The theory behind those articles was that the whole purpose of "face value + free shipping" was to encourage people to get the coins into circulation through their everyday spending, not immediately deposit them into the bank and hope they get circulated by someone else.

But the bulk purchase of quarters now involves a 3% processing fee plus shipping costs/personal pickup and a bank wire transfer. They advertise their presidential dollar rolls as $25 for $32.95, $100 for $111.95, and $250 for $275.95, without specifying how much the shipping is, so I haven't paid much attention.

I haven't read anything about lenders objecting to purchases from the Mint... do you have an article I could peek at?

MemberSince99
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Postby MemberSince99 » Sun Nov 24, 2013 11:43 am

No I've seen the posts from people on FICO and other boards saying this. They also say lenders don't like people using it at the horse race track and so on which I find plenty believable.


Actually the other thing that relates to this is, I've seen in the paperwork they send you with a card that one of the things their perks give you might be if something is stolen in the first X days you can file a claim for replacement but one of the things excluded is US Mint cons. I've seen that on more than one of those legal papers you get with the card.

Midori
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Postby Midori » Sun Nov 24, 2013 1:27 pm

Ahh, I was thinking about it from the wrong perspective-- I was thinking "lenders" as in banks, like, paying your mortgage with cash coins that you'd bought to get cc rewards points, or something.
Do you think it has something to do with the same reason why it's so hard to buy a prepaid card with a credit card? Or if I return merchandise that had been bought with a credit card, I get my refund in the form of a store giftcard? Trying to lock down on fraud/money laundering/turn-credit-into-cash?

rockyrock
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Postby rockyrock » Sun Nov 24, 2013 2:23 pm

Seems like a pretty easy way to get a "Cash Advance" without pay the associated APR...

I also know a few years ago with free shipping some guy racked up like 300k miles by buying $1 coins with free shipping and depositing them to pay off his balance...
American Express (2005): Green & Blue Cash Everyday
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC

MemberSince99
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Postby MemberSince99 » Sun Nov 24, 2013 3:42 pm

Good point rockyrock. I hadn't even thought of that.


It seems like a lot of trouble to mess with and you gotta carry around those coins which would be a pain, but I guess some people will do anything to get around the system.



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