Baubles, I agree with your post completely. I think some may really believe they have psychic gifts but most are just charlatans preying on grieving people. If you google 'Doris Stokes exposed' you will see how this, the most famous at the time, was a complete fraud. Odd that she has not 'come back' to tell people how genuine she was!
I was accosted by a 'gypsy' in Chatham High Street, offering to read my palm. I told her I would read hers instead. I looked closely at her palm and then said 'You work very hard for your children, you are a wonderful mother and you are not appreciated for all that you do'. She said 'Oh, you really have the gift.' 'No, I just have common sense and some understanding of what most people want to hear', I told her.
I am amazed that some Christians believe this stuff - it appears to be diametrically opposed to the teaching of the Church.