Pine Barrens Mafia Posted April 18, 2005 Share Posted April 18, 2005 9 times out of 10, they are. They did with me. 308038[/snapback] And guess what? For your trouble, they mark that on your credit score. And it's treated as a negative. So for working out that payment plan and avoiding bankruptcy, they screw you with more negatives on the credit score. Nice ones, those credit card companies. Link to comment Share on other sites More sharing options...
Campy Posted April 19, 2005 Share Posted April 19, 2005 And guess what? For your trouble, they mark that on your credit score. And it's treated as a negative. So for working out that payment plan and avoiding bankruptcy, they screw you with more negatives on the credit score. Nice ones, those credit card companies. 308074[/snapback] While it's the system to which they subscribe, it's not solely the credi card companies' fault - But I have seen that firsthand. I don't know what the scores are now, but back in the old days of cellular, my company required a beacon score of 625, which is pretty decent credit. I had a customer who wanted to buy a phone, but he kicked back a $1000 security deposit. I looked at his report for an old charged-off account from us or the other carrier (only two in each market in those days) and/or a recent bankruptcy as those were the only two circumstances we had run across that required a deposit that of that size. I didn't see either of those two situations, but I did see where he worked with a credit counseling service to avoid bankruptcy, satisfy his obligations, and protect his credit. Well, as it turns out, he would've been better off declaring bankruptcy and starting anew (6 months after bankruptcy is finalized he could've qualified for a phone with no deposit). He got caught in the middle and got screwed for doing the right thing, and that's simply unfair. IMO, the credit industry is one of the largest rackets around and is in need of serious reform. Link to comment Share on other sites More sharing options...
Terry Tate Posted April 19, 2005 Share Posted April 19, 2005 He got caught in the middle and got screwed for doing the right thing, and that's simply unfair. IMO, the credit industry is one of the largest rackets around and is in need of serious reform. To be fair, I wonder if he did the right thing after years of doing the wrong thing. Not always the case, but it's really, really common. Maxing out your available credit is risky business. It shouldn't be an acceptable practice as a routine, but most people have bought into the "Madison Avenue" marketing that tells you it is. Of course credit is a racket. They're in it to make money. Why wait? You can have whatever you want now, and no payments until (sometime in the future)! In just ten easy payments, you can get instant gratification, instead of settling for something less, or waiting to buy until you have cash. Often times people who get into credit problems have dug their own hole. If you are making one or more car payments, and carrying a large credit card balance, stop digging! There's nothing wrong with driving a old car that's paid for. It'll get you there. There's no shame in buying a smaller TV for cash vice a huge entertainment system on credit - you'll still get all the same shows. You don't have to buy a complete room furniture set on payments, you can buy a whatever pieces you can afford as you have the cash. Do you really need a camera cell phone with a two-year contract, or would an emergency phone with set minutes get the job done? Or do you really need a cell phone at all? People who make these decisions based upon future earnings live well, and precariously. Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted April 19, 2005 Share Posted April 19, 2005 While it's the system to which they subscribe, it's not solely the credi card companies' fault - But I have seen that firsthand. I don't know what the scores are now, but back in the old days of cellular, my company required a beacon score of 625, which is pretty decent credit. I had a customer who wanted to buy a phone, but he kicked back a $1000 security deposit. I looked at his report for an old charged-off account from us or the other carrier (only two in each market in those days) and/or a recent bankruptcy as those were the only two circumstances we had run across that required a deposit that of that size. I didn't see either of those two situations, but I did see where he worked with a credit counseling service to avoid bankruptcy, satisfy his obligations, and protect his credit. Well, as it turns out, he would've been better off declaring bankruptcy and starting anew (6 months after bankruptcy is finalized he could've qualified for a phone with no deposit). He got caught in the middle and got screwed for doing the right thing, and that's simply unfair. IMO, the credit industry is one of the largest rackets around and is in need of serious reform. 308784[/snapback] Exactly. That's what the credit card companies and their "credit counselors" don't tell you. They still ding you for trying to pay. And that's just wrong. Now they've REALLY got consumers over a barrel. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted April 19, 2005 Share Posted April 19, 2005 Exactly. That's what the credit card companies and their "credit counselors" don't tell you. They still ding you for trying to pay. And that's just wrong. Now they've REALLY got consumers over a barrel. 308989[/snapback] One of the issues being, though, that a lot (though by no means all) of credit counselors are fronts for scams that often as not drive people into bankruptcy. Ameridebt, in particular, was (and I presume still is) an egregious example, where they funnelled a large portion of people's payments into "service fees" for back-office processing by another for-profit company...which was wholly owned by the "non-profit" Ameridebt. Many people who did business with them ended up in bankruptcy because their money never got to their creditors like it was supposed to. Then there's the practical point of view that signing up with a credit counseling company is a tacit admission that one can not manage one's own finances...which does have a direct bearing on one's credit worthiness. None of which is meant to defend the credit industry, however, which I personally think (like insurance) is a slimy industry designed to screw the consumer as often and as hard as they can. Link to comment Share on other sites More sharing options...
Chilly Posted April 19, 2005 Share Posted April 19, 2005 Whether they wrote it or not, it was on their website. That means they chose to run it, despite the fact that it was contrary to the conservative bent they are so well known for. 307991[/snapback] That is true, but any major news agency would be stupid not to run an AP article because it doesn't have the slant that they are looking for. I can't think of a better way to completely confine your business to one market except be THAT selective about article choices. The AP and Reuters are both considered respected news syndication agencies that most Americans want to read, no matter which side of the line. The news syndication agencies' reporters inherently have bias in their reporting. Anyone that looks to ANY news outlet for unbiased news is just kidding themselves, news reporting has inherent bias. Where you CAN make the choice, however, is by the analysts and reporters of a specific news outlet. Reporters/Analysts that do proprietary work for one news outlet tend to be slanted one way, while reporters/analysts for a different news outlet can be slanted another way. This is proprietarily set by the owner and/or director of the news agency. Let me reiterate that this is a GOOD thing. Having multiple opinions on events is never, EVER bad. It is impossible to report news without bias, but the AP does overall a decent (not great) job of minimizing its effects. The news outlets then take information that they get and from other places, and analyze it. Its much better to have Fox News and say CNN then one totally unbiased source of news. The more opinions, the more informed you can be, and the better opinion you yourself can formulate on a subject. It's the opinions given by Fox News' analysts and shows that give them a reputation for being far to the right. Which is fine, its Fox News' view and they have every right to do that as a member of the media (and it actually benefits society imo that there is a news agency for both sides, now I just wish MSNBC would switch to being the "3rd party" news opinion ). Link to comment Share on other sites More sharing options...
Terry Tate Posted April 19, 2005 Share Posted April 19, 2005 The news syndication agencies' reporters inherently have bias in their reporting. Anyone that looks to ANY news outlet for unbiased news is just kidding themselves, news reporting has inherent bias... Let me reiterate that this is a GOOD thing. Having multiple opinions on events is never, EVER bad... The more opinions, the more informed you can be, and the better opinion you yourself can formulate on a subject. ...now I just wish MSNBC would switch to being the "3rd party" news opinion ). Very good summary. Reporters aren't robots; everyone has a point of view. Getting news from one source will not serve you as well as multiple sources. Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted April 19, 2005 Share Posted April 19, 2005 One of the issues being, though, that a lot (though by no means all) of credit counselors are fronts for scams that often as not drive people into bankruptcy. Ameridebt, in particular, was (and I presume still is) an egregious example, where they funnelled a large portion of people's payments into "service fees" for back-office processing by another for-profit company...which was wholly owned by the "non-profit" Ameridebt. Many people who did business with them ended up in bankruptcy because their money never got to their creditors like it was supposed to. Then there's the practical point of view that signing up with a credit counseling company is a tacit admission that one can not manage one's own finances...which does have a direct bearing on one's credit worthiness. None of which is meant to defend the credit industry, however, which I personally think (like insurance) is a slimy industry designed to screw the consumer as often and as hard as they can. 309089[/snapback] I know from personal experience, believe me. MBNA in particular is an EGREGIOUS squasher of consumer rights. I will never do business with that company again. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted April 19, 2005 Share Posted April 19, 2005 I know from personal experience, believe me. MBNA in particular is an EGREGIOUS squasher of consumer rights. I will never do business with that company again. 309350[/snapback] That's funny...I've been with MBNA for 20 years, with never a problem. Providian, on the other hand...when trying to pay off a credit card (before internet payments), they routinely held the check past the due date, then charged a $35 late fee, then charged you $100 to cancel the card. I dumped that card 7 years ago, and I still get checks from class-action lawsuits against them. Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted April 20, 2005 Share Posted April 20, 2005 That's funny...I've been with MBNA for 20 years, with never a problem. Providian, on the other hand...when trying to pay off a credit card (before internet payments), they routinely held the check past the due date, then charged a $35 late fee, then charged you $100 to cancel the card. I dumped that card 7 years ago, and I still get checks from class-action lawsuits against them. 309375[/snapback] Well, do yourself a favor and NEVER take out a personal loan with them. They are completely inflexible with them. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted April 20, 2005 Share Posted April 20, 2005 Well, do yourself a favor and NEVER take out a personal loan with them. They are completely inflexible with them. 310012[/snapback] Just got another offer for one in the mail yesterday. Went in the trash, as it always does. Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted April 20, 2005 Share Posted April 20, 2005 Just got another offer for one in the mail yesterday. Went in the trash, as it always does. 310122[/snapback] Smart man. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted April 20, 2005 Share Posted April 20, 2005 Smart man. 310131[/snapback] Doesn't take a whole lot of brains to throw out an offer for a loan you don't need with no option for paying it off early and a 7% adjustable percentage rate. Sure, I'm going to take money I'm required to pay back on a fixed schedule at a rate that can be arbitrarily raised at the whim of the lender. If I WANT to be mugged, it's easier to stand on a street corner and flash a couple grand in cash. Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted April 20, 2005 Share Posted April 20, 2005 Doesn't take a whole lot of brains to throw out an offer for a loan you don't need with no option for paying it off early and a 7% adjustable percentage rate. Sure, I'm going to take money I'm required to pay back on a fixed schedule at a rate that can be arbitrarily raised at the whim of the lender. If I WANT to be mugged, it's easier to stand on a street corner and flash a couple grand in cash. 310141[/snapback] Those thieves. When you're desperate, you'll take anything. Link to comment Share on other sites More sharing options...
Crap Throwing Monkey Posted April 20, 2005 Share Posted April 20, 2005 Those thieves. When you're desperate, you'll take anything. 310453[/snapback] Still better than Providian, who offered me $43,000 in cash advances on an $8k credit limit. Sure...no problem, I'll just go $35k over my credit limit, I'm sure you won't sock me with all sorts of charges for it. Although once MBNA raised my credit limit to a million dollars (no, that's not a typo) even though I told them not to. I kept it that high for one month, just to get the statement that showed the million dollar limit, then told them to lower it back down to $10k or so. The only credit card I like is Discover...and that's just because I pay it off in full every month, so I incur no charges but get the 0.5% cash back, and resist all their telemarketing efforts to screw me over. Rare that you can actually find a credit card that you (rather than the company) can manage in a way that makes you money. Link to comment Share on other sites More sharing options...
Campy Posted April 20, 2005 Share Posted April 20, 2005 To be fair, I wonder if he did the right thing after years of doing the wrong thing. 308814[/snapback] I agree with the overall gist of your post, but this guy was a laid off defense contractor and he contacted a consumer credit counselor for help so he wouldn't lose his house. He wanted a cell phone so he could take calls from prospective employers while he was beating the street looking for work. I don't know about all of you, but I damn sure don't know too many people who can buy a (decent) house without going into debt... Link to comment Share on other sites More sharing options...
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