31 legal rip-offs!

We round up the legal rip-offs you have to face every day!

Here at lovemoney.com, we're constantly highlighting illegal scams (like this tax refund scam) that you should avoid.

Unfortunately, however, not all rip-off practices are illegal. Plenty are perpetrated right under our noses, by big name brands who want us to trust them.

Ha - not in a month of Sundays! Here is my bumper rip-off round-up, highlighting 31 ways 'reputable' companies will try to nab your cash.

Card catastrophes

There are enough credit card rip-offs to fill a small book. Some of the worst include...

1. Negative order of payment

A sneaky system of prioritising your repayments so you pay more in interest charges.

2. Unsolicited credit limit increases:

Many card providers 'reward' you with higher credit limits, even if you don't want them!

3. Excessive penalty charges

Put a foot wrong and your card provider is likely to come down on you like a tonne of bricks, charging enormous penalty fees.

4. 'Typical' APRs

For an APR to be 'typical', it actually only needs to apply to two-thirds of customers. Don't get caught out!

5. Tiny minimum monthly repayments (MMRs)

Card providers tend to set miniscule MMRs, encouraging you to pay them even more in interest.

6. Extortionate cash withdrawal charges

Use your credit card to withdraw cash and you'll probably be hit with three different sets of charges - don't do it!

7. Store cards

These are often badly sold and tempt you into paying huge amounts of interest. Steer clear!

Read The worst kind of Christmas cards and Beware these credit cards tricks to find out more nasty tricks your credit card provider may play on you!

Slippery savings accounts

When it comes to finding a good savings account, the headline rate isn't the only thing to worry about. You should also keep your eyes peeled for...

8. Variable bonuses

Variable bonus rates are barely worth the paper they're printed on, because they could drop to nothing tomorrow.

9. Hidden tiered rates

Some savings accounts offer juicy headline rates, but disguise the fact that these rates are only available if you're saving enormous amounts of money.

10. 'Easy access' withdrawal restrictions

Many 'easy access' savings accounts are anything but, imposing all sorts of withdrawal restrictions and financial penalties.

11. Compulsory linked products

Another common savings scam, this involves only offering the best savings deals in conjunction with other, mediocre products.

Read Dodge these three savings pitfalls and beware these five terrible savings traps to find out more about how to avoid being ripped off by your savings provider.

Idiotic insurance

Certain types of insurance can be worth their weight in gold - but others are money down the drain. Watch out for...

12. ID theft protection

This sort of cover preys on your fears and you usually don't need it. Read Avoid this expensive rip-off! to find out why.

13. Interest on monthly instalments

Pay for cover by monthly instalment (rather than in one go) and many insurers will charge you up to 30% APR in interest.

14. Payment Protection Insurance (PPI)

Most PPI is hugely overpriced and riddled with exclusions. Read Rip-off insurance: get your share of £200m compensation to find out more.

15. Warranty wheezes

Buy an extended warranty and you could be paying for cover you've already got. To find out more, read Watch out for this Christmas shopping rip-off!

16. Policies that don't pay out

Certain types of insurance have chequered histories when it comes to actually paying out. To find out whether your insurance is worth it, read about which insurances actually pay out.

17. Whopping renewal quotes

Most insurers treat existing customers like second class citizens; so always shop around when the time comes to renew your cover.

18. Mobile phone insurance

In short, this is usually an enormous rip-off. Read Don't buy this rip-off insurance to find out why.

Current account cons

Millions of Britons stick with the same current account their entire adult lives. In fact, many would be much better off if they switched to a new one. Here are two big rip-offs to watch out for.

19. Packaged accounts

Current accounts that demand a monthly fee rarely turn out to be good value for money. Read The classic current account con to find out more.

20. Huge overdraft fees

This rip-off - with huge fees being charged for small mistakes - has been rumbling on forever. Read Unfair overdraft fees must go! to see what the situation is at the moment.

Loopy loans

All loans are certainly not created equal. If you really need to borrow money, try to avoid these sharp practices...

21. Secured loans

Take out a secured loan and there is a significant risk that you could lose your home. Read Beware these high risk homeowner loans to find out more.

22. Payday loans

These loans charged enormous APRs, and encourage you to pay over the odds in interest payments. Find out more in Why payday loans suck

23. Early repayment charges

If you opt for a personal loan, and then you decide to pay if off early, early repayment charges could end up costing you an arm and a leg.

24. Payment holidays

These aren't nearly as nice as they sound - because throughout that 'holiday' your interest charges continue to rack up. To find out more about points 23 and 24, read Seven simple steps to shopping for a personal loan.

Extortionate energy

You could save hundreds of pounds a year by switching gas and electricity providers. Just make sure you avoid...

25. Enormous exit fees

Try to get out of an energy contract early and you might end up losing any cashback and being hit with a big exit fee. Read Avoid these massive hidden energy charges to find out more.

26. Estimated bills

Don't rely on the estimated bills you're sent - you could end up paying way over the odds. For more on this, read Don't get ripped off by your energy provider.

Property panic

Buying a home is likely to be one of the biggest financial commitments of your life. So it's worth making sure you get it right! Keep your eyes peeled for the following property rip-offs...

27. Sale-and-rent-back

Evidence suggests this dubious practice is misleading, and exploits people at their most vulnerable Watch this lovemoney.com video to find out more.

28. Excessive mortgage exit fees

These 'administration' fees can run to hundreds and hundreds of pounds. Find out how to avoid them.

29. Estate agency fees

These are typically 1.5%-3% of price of the property. Do they always do the work to warrant that?

30. Valuation fees

You'll usually be charged an amount reflecting the fact that a surveyor has actually visited the property - even if a cheap, automatic evaluation has been conducted instead!

31. Letting agent fees

Tenants often have to pay £100+ in 'administration' fees, even if they're staying on in a property from one year to the next. Humph! To find out more about points 29-31, read The worst property rip-offs ever!

Length restrictions mean that I haven't even scratched the surface when it comes to travel rip-offs or postal gold merchants.

Which legal rip-offs really get your goat?

Get help from lovemoney.com

Do you need a bit of help finding the best deal?

First, compare financial products at lovemoney.com.

Then, why not have a wander over to Q&A and ask other lovemoney.com members for hints and tips about what worked best for them?

And finally, read Watch out for these cold-calling rip-offs and Three scams to avoid!