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diff --git a/content/blog/2022-08-31-privacy-com-changes.md b/content/blog/2022-08-31-privacy-com-changes.md new file mode 100644 index 0000000..1ba6746 --- /dev/null +++ b/content/blog/2022-08-31-privacy-com-changes.md @@ -0,0 +1,99 @@ ++++ +date = 2022-08-31 +title = "Concerning Changes on Privacy.com" +description = "" +draft = false ++++ + +# Privacy.com Changes Their Terms + +Recently, Privacy.com reached out to their customers regarding a change +in their terms of use. Further, all customers are required to agree to +the changes in order to continue using their accounts. + +[You can view the new cardholder agreement +here](https://privacy.com/commercial-cardholder-agreement). + +When you log in, you\'ll be greeted with a pop-up window asking you to +review and agree to the new terms of use. You will also not be able to +open any new cards until the terms are agreed to. + +## Changing from a \"Prepaid Debit\" Model to a \"Charge Card\" Model + +The actual content of the changes is interesting. While the historical +model of using Privacy.com was akin to prepaid debit cards, the new +model is very similar to a credit card (they use the term \"charge +card\"). + +I have used Privacy.com for 1-2 years, and the process was always that +you would create a single-use or merchant-locked card. This card could +be used for any dollar limit you set and would immediately draw the +funds from whatever funding source you connected, e.g. PayPal account or +a bank account. + +The benefit this service provides with a premium account is masking the +merchant names from your funding source. If you have a concern that your +bank account uses merchant data from your account, you could direct all +charges through Privacy.com and set the merchant as one of their pre-set +options, such as \"Smiley\'s Corner Store\" or \"NSA Gift Shop.\" + +The new model still works with a bank account as a funding source, but +the model is changed so that you get a \"line of credit\" set according +to a 14-day billing cycle. It seems that Privacy.com will now allow +charges to be incurred without being immediately paid. + +## Daily Payments and Available Credit + +Instead of paying as charges are incurred, you must make a \"Daily +Payment\" and your \"Available Credit\" will be locked until you make +that payment. There are also \"End of Billing Cycle Payments\" that are +assigned a due date. + +Further, Privacy.com will decline charges that would cause you to exceed +your Available Credit or Credit Limit. + +One particular interesting section states the following: + +> YOUR OBLIGATION TO PAY US BACK FOR ALL CARD TRANSACTIONS AND OTHER +> OBLIGATIONS YOU INCUR IS SECURED BY THE SECURED ACCOUNT. IF YOU DO NOT +> PAY US BACK FOR ANY AMOUNT YOU OWE US WHEN YOUR PAYMENTS ARE DUE, WE +> WILL EXERCISE OUR INTEREST AND DEBIT THE SECURED ACCOUNT, AND YOU WILL +> LOSE THE MONEY IN THE SECURED ACCOUNT. SEE SECTION 8: SECURITY +> AGREEMENT FOR MORE INFORMATION. + +## Personal Information + +Now that Privacy.com is more of a financial institution, they are +obligated to comply with the [know your +customer](https://en.wikipedia.org/wiki/Know_your_customer) +guidelines/laws. + +I did not proceed with the change to my Privacy.com account, but I have +heard from some peers that the changes require more personal information +to be submitted, such as SSN. I am not aware of all new personal +information required or if the funding source is now required to only be +a bank account. + +## Fees + +Luckily, the fees section did not change much. The subscription fees for +a premium account are still the only fees. + +# My Thoughts + +Personally, I wiped my personal information from my account and then +permanently deleted it when I heard about these changes. I have no +interest in yet another method of credit lending offered by private +companies. While I accepted that they would have access to my bank +account information for the purposes of paying off my prepaid debit +payments, I have no interest in incurring charges that will need to be +paid back at a later date. I also have no interest in submitting +personal information to Privacy.com. + +This type of change toward a \"buy it now, pay us later\" model is +concerning, and I will be watching Privacy.com to see if they further +their interests in the credit model as time goes on. + +Could we see them start charging interest, fees, etc.? I\'m not sure, +but this change does not inspire confidence in their mission as a +privacy-focused company. |