MSNBC just did an hour about credit card debt and the people trying to collect.  Just so you know, the “debt collectors” represented in this hour program are NOT….LET ME REPEAT…ARE NOT anyone that I work with, not does it represent what I do.  I work in client resolutions and my job is to help you (the card member) come to a solution about your debt.  It is not, and has not been our practice to intimidate, threaten or scare anyone into paying their debt.  And yes, at my bank…WE FOLLOW THE RULES!   We have to, if not we get fired, remember every call is recorded.  We are held accountable for every one of our calls. 

Another thing I have been hearing about Bank of America…if you are past due on your card, debt, whatever…they are telling you to call a debt solution company.  The problem with this is that the “debt solution” company wants you to include all of your debts regardless of status.  Meaning if you have a different card in perfectly good standing with an excellent APR, they want you to turn over that debt so that they can “settle”.  Unfortunately, the APR the debt solution company barters for, is more than what you had to begin with…so be careful.

Notice, MSNBC calls the “collector’s” in this hour a “second level debt company”, meaning it is out of the credit card industry itself.  Honestly, the people described in this one hour program deserve to be prosecuted, really it’s horrible and I have heard from people who are begging me to get these collections agencies to stop…but there is nothing I can do about it.  It’s just horrible, I can’t imagine doing or saying what these people say or do. 

I know, believe me, about debt.  Here is the thing I have a problem with.  One of the people MSNBC  portrayed on the show had a big Santa blow up in their front yard.  Now really?  Honestly?  There are so many ways to stop debt by not buying ridiculous things just to keep up with the “Jone’s”.  Another thing I noticed:  Purchases at “Target”.  The person said it was a grocery bill.  Really?  I mean really? What Target store do you know has groceries?  Yet another couple with three kids; putting them in their car seats in a newer vehicle…really do you need that payment?  Or could you sell it and get it a junker?

BTW, after you leave the sanctuary of your credit card company…meaning that we have tried to contact you for at least six months and longer, you are on your own.  For example…in my department, client resolutions, we try to contact you by phone, letter and e-mail letting making you aware that we can work out several different options to resolve your debt.  Even going so far as to settle the debt, sometimes for less than 50% of what you owe on the card.  We attempt to give you 0% for 60 months to pay off your card…but if you don’t respond there is nothing we can do but send it to an outside debt collection agency.  We want to help you, but so often, people don’t respond.  MSNBC is not going to tell you that though, they want to spin the “poor family” who hasn’t had any other chance.

Also, somehow the media thinks it is innocent.  With the cute family in the upstairs room with the fire fighter hat on top of the quilted blanket, with toys surrounding the family (oh and don’t forget about the coffee pot and espresso machine in the back ground).  Where do you think all those things came from?  Money earned and saved?  Or a credit card charged up to the max?  But you know, we have to show the “picture perfect” family in dire straits because of the big bad credit card company.

Tips for Credit Card Owners

Recently I’ve been taken advantage by own bank, so in celebration of that I thought I would post some tips for those who have credit cards. 

Tip #1:  You’ve been vacationing and you realize while you were gone that you forgot to pay your bill.  You call your credit card company because of the messages left on your answering machine, or you’ve notice an odd 1-800 # showing up on your cell phone.  So you speak with an associate, or most likely an automated system and you make your payment thinking that everything is okay.  WRONG.  Here is what happens when you miss a payment.  1)  you receive a 39.00 late fee on your account 2) your interest shoots up to 29.99 without you knowing.  So here is what you need to do:  Talk to a live person, don’t make a payment online, or by any other means.  If you don’t, no adjustments can be made to your account.  Once you speak with a person, request that the late fee be removed and that your interest rate be repriced back to what it was previous to your mistake.  Here is what is important to know.  If you have received a late fee adjustment, or an APR reprice within that last 6 months a normal associate will not be able to remove the late fee or adjust your interest rate.  In that case ASK TO SPEAK TO A SUPERVISOR!  Because a supervisor can make those adjustments.

Tip #2:  CIT-in other words CHANGE IN TERMS.  You know the irritating mail you receive from your credit card company?  You thoughtlessly throw it away thinking it is another “offer” and it’s not important.  Well, IT IS!  Read everything you get in the mail from your bank.  Why?  Because banks have taken on an interesting trend to reduce their losses.  They INCREASE your interest rate based upon the economy.  It doesn’t matter that you’re a perfect credit card owner and you pay your bills every time, each time, on time consecutively each month.  Banks are trying to increase their revenue; in order to do that they increase ALL account holders interest rates.  The way they get away with this is they send you a notice within your statement informing you that your APR will increase to 14.99 if you don’t “opt” out within a certain time frame.  They give you the option, but if you “opt” out when your card expires your account will be closed.  So you do have a choice, but not if you don’t read your mail.  So read your mail from your bank.

That’s all I have for now.  Tune in for more informative tips on how to manage your credit cards….if I have any…

P.S.  You can ask for a late fee adjustment for other purposes also.  Say you forgot one month and never have, or there has been a medical issue in your family, or a death, or a reduction in income…several reasons are available for late fee adjustments….just remember!  TALK TO A LIVE PERSON!  An easy way to accomplish that goal?  Hit 0#  when you get an automated system asking for your information.  Just keep hitting 0#, you’ll get someone.

P.P.S.  If you have excellent payment history and you notice that your interest rate has gone up…call in.  If the associate says they can’t lower your APR ask to speak with a supervisor.  Here is the hint, if you don’t ask for a manager the associate won’t transfer you to one.  Customer Service protocal is that if a client doesn’t ask they won’t transfer. SO ASK!

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Credit Card Owners #2

I work at an inbound call site.  I say that for the purposes of this post.  Just so you all know; our site does not call outbound.  So when I get a call, the card member is calling me.  When an account goes past due the computer system automatically puts that account in queue, so that the number associated with the account is called from our auto-dialer.  A computer generated message is then left with the card member telling them to call us back about a personal business matter.

Another thing I want to mention is before you read further, I am going to be quoting a call that was extremely vulgar.  So for the faint-hearted or easily offended readers, be warned.  For the rest, read on.  One more thing-in training we were taught that the #1 most important aspect of collecting is respect to the card member.  We were trained to be understanding, attentive and problem solving associates who relate to the issues facing people who can’t pay their bills.  So I might write things down here that I would NEVER say to a card member while on a call.  If we are rude to our card members we get fired.  That however, doesn’t excuse people who just don’t want to find a solution to their problem.  BUT I could be wrong.  Without further ado, here are the two calls I would like to mention. 

Call #1  “I want you to stop calling me.  If I get one more phone call, I’m going to call a lawyer and file a harassment suit against your company.  I read that your bank is in a lot of trouble right now and I can understand why having morons like you working for them.”  My response:  (Laughing) “Did you just call me a moron?” Caller: “Yes, I did”  Me: “Well, I hope that makes you feel better, however I do need to inform you that if you continue in any way to be abusive I will have to terminate this call.” Caller: “MORON!“  I hung up.  Now what’s amusing about this call (aside from the put down) is that the money he is going to use hiring a lawyer could be sent to pay his bill which would stop the phone calls.  But hey, what do I know? I’m a moron.  Oh and by the way…he signed a contract (when opening the credit card account) that gives us permission to call his home if his account become past due.  But again, what do I know…I’m just a moron.    I actually did laugh by the way.  I didn’t mean to but it just came out.  I couldn’t help finding it funny that here is a person who charged on a credit card and then didn’t pay the bill and his solution is to call me a moron.  Someone he doesn’t even know and a person who could actually help him.  But again…I’m a moron.

WARNING!!!! BELOW WRITING IS GRAPHIC AND SEXUALLY VULGAR DO NOT READ IF YOU MIGHT GET OFFENDED.

Caller:  “You guys keep calling, calling, calling, calling.  You wake me up in the middle of the night.  Now I’m just wondering are you going to stop calling me or am I going to have to call your husband and tell him how his penis fits into your vagina?”  And then he hangs up.  Yes, this was an actual call that I received today 5 minutes before my shift ended.  I noted his account permanently with a warning to future associates that he is extremely vulgar.  First thing that tipped me off this guy wasn’t right in the head?  “You wake me up in the middle of the night”.  No we don’t, Federal Law prohibits any credit agency to call after 8:00 p.m. or before.  Maybe he thinks that if he calls us being rude and disgusting we’ll stop calling him.  BUT..alas, it’s a computer calling him not a person.  And we don’t stop calls just because a person is abusive to our associates.  Sorry, but a good solution to his problem: Pay the bill. 

And yet another day goes down in collector history.

Credit Card Owners…

Now that I am officially a “collector” I’ve seen the worst of debt.  I must say not a day goes by that I am not utterly astounded at the amount of money people charge on credit cards.  The largest I’ve seen so far: 150,000.00  Yes that much.  I don’t think this would be that big of a deal, but the owner of said credit card called in needing a payment arrangement because they could no longer afford the monthly payment.  The interest rate on that account: 5.4. 

I don’t know if you all are privy to credit card interest rates, but 5.4 is exceptional, especially on that high of a balance.  What made the situation worse was the owner didn’t have a job loss, had no emergency medical issue, he/she was just over-extended and realized with a mortgage, car payments and other credit card debt they could pay no longer.  Unfortunately, we don’t have payment arrangements available for those people who are irresponsible with their credit.  They have to pay because they charged the debt. 

Esseentially what happens to an account like this is the debtor will stop making the monthly payments and the exceptional interest rate of 5.4 immediately turns into 28.99 due to non payment.  No matter how high the balance rises, the owner is still responsible.  But I guess they didn’t think about that as they were charging thousands of dollars to their credit card.

Yet my favorite conversation by far has been the one today.  It went like this:

“So your company helps LOSERS who don’t pay their bill, and your company helps TRASHY people on welfare make their mortgage payments, but you won’t help me.  I’m the middle class guy who makes his payments every month on time.  But I guess I have to be the SLUDGE of society in order to get help!  What the hell is wrong with your company?  And you wonder why America is in the situation it is in now!  I mean seriously, you people are just THIEVES!”

This is just part of the yelling and screaming from the card member.  Here is my problem with his statements.

1.  We don’t want to help people, we are forced to.  If you honestly think that our company enjoys losing millions of dollars a day because people don’t pay their debt you are wrong.

2.  Hey, if you don’t want to pay your bill and go delinquent that’s your choice BUT  you’re going to get a 39.00 late fee every month along with additional finance charges at 28.99% on the $10,000.00   balance you have on your card.  Believe me, I’ve seen it-that’s not a good thing!

3.  The problem with our economy is not that banks help people in trouble, the problem with our economy is that debtors borrow more than they can afford and don’t pay their bills.  Irresponsibility on the part of the borrow is not the banks fault.  (Think of it like this:  A married man cheats on his wife and his excuse is that the woman was dressed in skimpy clothing and offered herself up)  We’re a bank!  We are not a non-profit organization.  The very essence of our organization is to MAKE MONEY OFF OF YOU.  Just like the prostitute who walks the street, she’s not there for love.  So the whole excuse of “I can’t believe your company would do this to me” just doesn’t get you anywhere when you’re calling in to get help.

4.  Having good credit and making your payments on time is a GOOD THING.  Taking responsibility for your debt is honorable, knowing how much you can afford to pay each month is responsible.  So why would you want to be thought of as a loser, trash, and sludge?  Obviously you’re complaining about “those” people, so why are you upset that you’re making it?  You should be thankful you haven’t lost your job, or your wife isn’t dying of terminal cancer, or you haven’t been permanently disabled due to a recent automobile accident.

Anyway, enough of my ranting.  My point in this whole thing is this:  Banks want to take advantage of you, don’t be willfully ignorant

It’s not uncommon

The most difficult…the hardest  to understand….the most painful…the emotions most close…are those that we don’t want to respond….