Companies say you can't. We know you can. Read 'em and reap.

By WILLIAM J. LYNOTT

From FAMILY CIRCLE

I've come to relish one part of my hard-won fiscal education over all others, it's the discovery that some rules are made to be broken. I don't mean the rules most of us try to live by: the golden rule, not breaking in line at the supermarket, coming to a full stop at stop signs. I'm talking about arbitrary rules that survive only because so many of us are intimidated when we're told, "You can't do that. It's against our rules. " Questioning this admonition on occasion has helped me keep more of my money. Once you get the hang of it, I bet you'll profit too.

1 You Break It, You Bought It

A few years ago while browsing in a gift shop, I was startled by the sound of glass crashing. A frisky youngster had accidentally knocked a glass vase to the floor, where it shattered like, well, glass. The store owner sternly pointed to a sign that read "You Break It, You Bought It, " then told the distraught mother, "You owe me fifty dollars. " She dutifully pawed through her purse and came up with the cash.

She should have held on to her money. Accidents in a retail store are a part of the cost of doing business, and breakage not covered by insurance is tax-deductible.

If you feel responsible for your bumbling, say to the retailer, "I'd be happy to reimburse you for your cost. Can you tell me the wholesale price, please?" To allow the store to profit from your accident would disqualify you from membership in the Rule Breakers' Hall of Fame.

2 You Have to Switch Credit Cards to Get a Deal

Credit card issuers have placed more than a billion cards in circulation—four for every man, woman and child in the United States. But they're still not satisfied. Bet your

mailbox is under assault by a continuous barrage of invitations to sign up for one more card.

One of the most popular lures is a low interest rate. The objective, of course, is to get you to transfer your balances from your existing card to theirs. But promotional rates are always temporary, and you might wind up with a rate as high—or higher— as the one you started with.

A better plan: Renegotiate the interest rate on your existing card(s). Rosemarie Colombraro of Tucson, Ariz., saved a friend hundreds of dollars in interest with one phone call. The woman was being charged 20. 5 percent. That was nonnegotiable, said a customer service rep.

"I said I'd help my friend transfer her balance to a card that was offering 6. 9 percent. I was switched to a supervisor, and we negotiated a zero percent rate for the next two years. " During that time, her friend was able to pay off her debt.

3 If You Miss a CD Grace Period, Tough Luck

Banks are especially skilled at intimidating the acquiescent. Recently, I allowed a bank to automatically roll over a CD. As a good customer, I assumed I would be given the best available interest rate—the rate anyone walking in off the street would get. By the time I discovered the horrendously poor rate the bank had applied, the grace period for making changes had expired.

When I called the bank, a customer service representative said nothing could be done. The renewal had taken effect and the money couldn't be withdrawn without penalty.

As a confirmed rule breaker, I asked to speak with a manager. He never even mentioned this "rule. " Within minutes, he'd granted me a "promotional" rate almost 50 percent higher than the one I had been given.

4 Want Full Protection? Buy the Service Contract

If you've bought a major appliance lately, chances are the salesperson tried hard to sell you a service contract, or extended warranty. Next time, before you cough up the extra cash, consider this: With most appliances, particularly electronics, defects are almost sure to show up before the original warranty expires. After that, the service contract may cost more than any needed repairs.

So why do salespeople push contracts so aggressively? Because they're very profitable. Retailers have extensive data to help them predict the average failure rate of appliances. They use that information to price service contracts to yield a handsome profit above the projected repair cost. Next time, don't fall for the pitch.

5 Your Insurance Agent Knows Best

Insurance companies are among the most imaginative creators of rules. Take, for example, the "dwelling coverage" on your homeowner's insurance. That's the amount that the insurance company will pay you if, for instance, your house were to burn down or be destroyed in a hurricane or by a tornado. You won't be able to find much information in your policy about how this figure, and the premium you pay for coverage, is computed. An inquiry may bring you the answer that my agent offered me: "It's all done automatically. It works the same for everyone. "

When my next premium notice arrived, there was another substantial increase in my coverage—and in my premium. I called my agent again and explained that the new coverage was considerably more than my home would likely bring if I were to sell it. He told me that if my house burned down, the company would pay me this amount to cover the cost of rebuilding—which might well be more expensive than buying another house.

The bottom line is that I was still insuring my home for more than it's worth, and paying higher premiums than necessary to replace it. My agent agreed to lower my coverage. On the spot, my premium was reduced by $90 a year.

6 Return This Warranty Card or Else

Remember the card that came with your last major purchase? Did you think you would lose your warranty coverage if you failed to fill out and return it? That's what manufacturers hope you'll think. In fact, you're covered whether you return the card or not.

The real reason manufacturers use these forms is to gather marketing data: your age, income bracket, how you heard about the product, where you shop. Keep in mind, though, that manufacturers need your name and address to contact you in the event of a recall. That's why I usually return these cards, but with only my name, address and the model and serial number of the product.

7 Contractors Get Paid Up-Front

Contractors such as house painters, carpenters and re-modelers have a rule of their own: Customers must pay one-third of the cost of the project upon signing the contract.

Not me. I've learned that once a contractor has your money, it's too easy for him to get sidetracked by a bigger, more profitable job, and put yours on hold. So now I have my own rule: I'll pay the one-third, but only after the materials are delivered and the job is started.

I've never had a contractor refuse to do business with me once I politely explained the reason for my rule. He can still delay the start date, but at least he isn't enjoying my money while he does.

FAMILY CIRCLE (MAY 21, '02), 375 LEXINGTON AVE., NEW YORK, N. Y. 10017. ADAPTED FROM "MONEY: HOW TO MAKE THE MOST OF WHAT YOU'VE GOT, " © 2000 BY WILLIAM J. LYNOTT. (AUTHOR'S CHOICE PRESS/I.UNIVERSE. COM)

You Can Get Satisfaction

How consumer advocates get their money's worth

Dash for cash. Many cash-back rebates expire within days of a purchase. If you miss the deadline, call the 800 number and politely ask if it can still be honored. Companies often comply.

Call and collect. Long distance providers introduce new plans all the time, but don't always let existing customers know, says Mark Cooper of the Consumer Federation of America. Switching plans isn't much of a hassle, so every six months, call your provider to be sure you're getting the best deal.

Nail the sale. Many gold and platinum cards will refund the difference if an item you buy goes on sale up to 60 days later, says Edgar Dworsky of Consumer-World. org. And they'll often extend warranties for up to a year. Customer service can give you the how's.

Climb the ladder. On hold with customer service for ten minutes? Hang up, call the company's headquarters, and ask for the head of customer relations. You'll likely get the honcho's assistant, who still can solve your problem faster than a service rep, says Shirley Rooker of Call For Action in Bethesda, Md. Speak calmly, explaining what you want and why.

— MARK STUART GILL

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