Supervalu falls prey to $10 million wire fraud scam
10/20/2007 12:50:19 AM
Associated Press
BOISE, Idaho -- Supervalu, one of the nation's largest grocers, has fallen prey to an e-mail scam, losing about $10 million after wiring money to fraudulent bank accounts, according to federal court filings.
The scam is detailed in a pair of forfeiture cases filed under seal earlier this year in U.S. District Court for the District of Idaho.
The fraud began after the Eden Prairie, Minn.-based supermarket received two e-mails -- one from someone purporting to be an American Greetings Corp. employee and another claiming to be with Frito-Lay, according to court documents. Both e-mails claimed the companies wanted payments sent to new bank account numbers.
Supervalu sent more than $6.5 million to the phony American Greetings account and nearly $3.6 million to the phony Frito-Lay account before realizing it was all a scam. The FBI was able to capture the money before it was whisked away by the scammers, but now American Greetings, Frito-Lay and Supervalu have all laid claim to the money and U.S. District Judge B. Lynn Winmill will decide where it should go.
"Supervalu was the target of attempted financial fraud," company spokeswoman Haley Meyer wrote in a prepared statement. "We were able to quickly discover and report this to the FBI. As a result of the quick work of the Boise FBI Office and the U.S. Attorney, any funds lost are minimal."
I know Supervalu and I have worked there. Believe me, they take financial security and testing seriously. I have no knowledge of how this all came to pass and I can guess but that isn't fair. The bottom line on all this is that if a multi-billion dollar company can fall prey to an e-mail scam, so can you! I have jokingly been called "anal" in my accounting of money, finances and credit but this is a good case where that is exactly what one has to be. Supervalu caught on early to the scam and saved themselves a few million dollars of cash loss probably due to the diligence of people labeled such as myself but the days of taking anyone's word is sadly lost in this world. You have to be accountable for your funds or someone else may be.
Recently, a friend of mine who has been struggling with finances, job situation and everything else that goes with it brought an e-mail to me telling me that she was "probably going to do it".
The e-mail asked this person to apply for accounts on their behalf at Bank of America to accept funds from a company's customers with Bank of America accounts. They found her e-mail on Career builder.com. It was supposedly from a high level financial manager of a Russian Company wishing to do business in the US but found it difficult with our trade policies. Therefore this company was looking for "Contractors" who would act as their financial managers and run the US or Russian or other country's funds through Bank of America Accounts that the "Contractor" would set up. To alay any concerns or fears they assured her they were registered with the IRS AND their own financial department. A phone number and e-mail was provided as well as a company called Europay.com.
Ok, first red flag. No high level manager in any reputable company is simply going to e-mail you no matter who you are and divulge financial needs and information in such a public way.
Second red flag. Foreign country looking for domestic surrogates to set up bank accounts on their behalf. As a controller of a company, I can guarantee you that NO COMPANY would ever entrust their funds outside of their own control much less in the hands of strangers.
Third red flag. Funneling money deposted by unknown companies. In these days of homeland security and tight credit there is no way anyone should ever even think this is legitimate. Banks are pretty secure conscious when it comes to their accounts and who have set them up. Bank accounts are also periodically spot checked and the bank is notified when unusual activity starts occuring.
Fourth red flag. Commenting that a foreign government is registered with the IRS doesn't say much. The IRS will register domestic companies with an EIN (Employer Identification Number) which is used for payroll and income taxes. The IRS typically does not govern foreign companies doing business outside of the US unless it involves a US Company whereby that information is registered with the domestic company and their income from foreign sources. In this case that domestic company would actually be you and the tax liability within the US would rest with you. Bet you weren't prepared for that!
Bottom line, and I hate to sound cliche' but what seems too good to be true IS too good to be true. These letters come fast and furious posing needs anywhere from India, to the Mid East, to Asia and Europe. I haven't personally seen any within the US but I am sure they exist.
Don't fall for these scams no matter how legit and professional they may seem. They are not and you will be caught holding the proverbial empty bag.
Manage your credit before it manages you!
Order Free Credit Report(s) Online
To
receive your free credit reports online, visit the official website: www.annualcreditreport.com
Sunday, October 21, 2007
Monday, October 8, 2007
Saving for a Sunnier Day
I preach to the choir about saving until the choir finds out I'm right when they need a sudden infusion of cash but no resources. That would be my boys and anyone else who has failed to save anything in their lives. I'm not getting into the quantitative analysis of what to save, how to save and where to save now but I am going to promote saving in some form.
To save your money is important to your financial well-being either for use now or somewhere down the road. Most importantly it is the first step toward realizing your financial dreams. It's been said and even I have said it, "I can't afford to save anything" but I'm here to tell you that you can't afford not to. And you don't just save for the sake of savings but you save to make your money grow.
I'm speaking of generalities and well known facts here. The baby boomers, we are told, are the largest segment of our society and getting older. Hello! Me included. What do we have to show for it? Some not so much. We got busy with families and all the things that come with raising a family and doing what we wanted when we wanted without thought given to retirement.
That's not passing on a very healthy attitude to our youngsters. We started the material marketplace and its going strong today. All the tangible things we've got to have right now devour anything left over that we could use to make more money for us when we really need it later on.
If you could just find a way to squirrel away about 10% of each paycheck you would be surprised at how fast that adds up. Where to start a savings account? Look for the highest yeild. Nowdays that yield is pretty low. Banks typically are not the most ideal places to save your money. Their interest rates are very low and they often require a minumum to start a savings account or they don't want to be bothered. Credit Unions are a little better but there are individual companies that have some of the highest rates. One very secure online bank that carries the highest savings rate is ING Direct at 4.2% It fluctuates but has been one of the highest interest rates around and is FDIC insured. Banks are as low at 1.5% AND to get a better rate banks want a minimum balance in your account. For those just starting an account ING Direct lets you start with what you want , no minimums.
After you have saved around $1000.00 in your savings account you might take that money and put it in other items that are even better at making your money grow. Things like money market funds, stocks and CD's (Certificates of Deposit) which all yield higher paybacks yet. But the bottom line is that you have to start somewhere and accumulate what you need to move to the next step. As you grow your money, someone will always want to take it and help you spend it. Stay strong and think very hard how you want to save on your own terms in your own way in your own time but SAVE!
To save your money is important to your financial well-being either for use now or somewhere down the road. Most importantly it is the first step toward realizing your financial dreams. It's been said and even I have said it, "I can't afford to save anything" but I'm here to tell you that you can't afford not to. And you don't just save for the sake of savings but you save to make your money grow.
I'm speaking of generalities and well known facts here. The baby boomers, we are told, are the largest segment of our society and getting older. Hello! Me included. What do we have to show for it? Some not so much. We got busy with families and all the things that come with raising a family and doing what we wanted when we wanted without thought given to retirement.
That's not passing on a very healthy attitude to our youngsters. We started the material marketplace and its going strong today. All the tangible things we've got to have right now devour anything left over that we could use to make more money for us when we really need it later on.
If you could just find a way to squirrel away about 10% of each paycheck you would be surprised at how fast that adds up. Where to start a savings account? Look for the highest yeild. Nowdays that yield is pretty low. Banks typically are not the most ideal places to save your money. Their interest rates are very low and they often require a minumum to start a savings account or they don't want to be bothered. Credit Unions are a little better but there are individual companies that have some of the highest rates. One very secure online bank that carries the highest savings rate is ING Direct at 4.2% It fluctuates but has been one of the highest interest rates around and is FDIC insured. Banks are as low at 1.5% AND to get a better rate banks want a minimum balance in your account. For those just starting an account ING Direct lets you start with what you want , no minimums.
After you have saved around $1000.00 in your savings account you might take that money and put it in other items that are even better at making your money grow. Things like money market funds, stocks and CD's (Certificates of Deposit) which all yield higher paybacks yet. But the bottom line is that you have to start somewhere and accumulate what you need to move to the next step. As you grow your money, someone will always want to take it and help you spend it. Stay strong and think very hard how you want to save on your own terms in your own way in your own time but SAVE!
Wednesday, October 3, 2007
Credit Cards for that "fresh or new start"
You've seen them in the mail, several a week, credit card offers that tell you that you are pre-approved. What does "pre-approved" really mean? Does it mean you passed all the credit requirements and have a score good enough for approval? Does it mean that you are going to automatically be awarded that credit card? No it does not. "Pre-approved" in their (Credit Card Companies) sense of the word actually means that they bought a list of people, mostly from the credit bureaus, that met the requirements that were sought. It says this in their disclosure brochure. In these cases, the people who have a range of scores that are on the low side, people who have less than perfect credit or just starting out with no credit history but who seem to have enough money to spend are the ones they are looking for. In some offers they are using the word "pre-qualified" which is basically the same thing. You're in a target class.
I took a minute to tear into some of these offers for the credit builder and/or new credit consumer and the following is what I found. In general, those who need to hang on to their money the most are the ones being targeted for these offers. Let's look at one of the most popular and well advertised "beginner/rebuilder" credit cards called First Premier Platinum Mastercard from Sioux Falls, SD. The offer I see actually says you are pre-approved for the First Premier Platinum MasterCard. This offer is showing a 9.9% rate on all purchases made with this card. That's a great interest rate for this type of credit card but buyer beware.
First Premier says that you will be granted AT LEAST a $250 credit limit. I've yet to see many applications approved for more than that. Now from that $250 credit limit, they (First Premier) are going to add charges immediately. You don't even have to worry about charging anything because most of your limit will be eaten up by the following fees upon opening your account. You will have an annual fee of $48.00. Then there's a one time program fee of $95.00. So far that's $143.00 in fees. Add to that an account set up fee of $29.00 and a monthly service fee (not finance charge) of $7.00. This is a grand total of $179.00 in fees on which you must start paying. With a $250 credit limit that leaves you with a $71.00 available credit line. You could single handedly eat that available credit by asking for another card on the same account for which you would be charged an annual $20.00 and a one-time $3.95 Internet access fee should you want to watch your balance often online. This leaves you with $47.05 left to use. God forbid you ever ask for a credit increase as this will cost you another $25.00 each time you request one. Now, if you should ever go over your limit of $250 anytime during the 25 day billing cycle, charging more so that the balance is above your credit line, you will be hit with an over limit fee of $29.00 at the moment you are over your assigned credit limit. The program doesn't wait to see where you are in your balance at the end of the cycle. Pay attention because the payment cycle is every 25 days and with that, if you should be as much as one day late on your payment you will be assessed a $29.00 late fee. You can choose to pay online or send a check. The convenience of "pay by auto draft service by phone" will set you back another $11.00 a payment in addition to the amount you want to pay. You could opt to use an "Internet auto draft" payment and this will cost $7.00 a payment. So you have to pay to make a payment. Hmmmm, interesting concept. Well, this is a "bank" is it not? You basically could become fee'd to your financial death.
While you start with a 9.9% annual interest rate, if you are late paying your payments two times in a 6 month period or you are late two months in a row, you will automatically go to a penalty interest rate of 19.9% on your balance. You do, however have a chance to redeem the 9.9% if you pay "on time" for three consecutive months. Finally, there is the option of opting in for their Premier Credit Protection Plan which makes you think that you need protection if you lose your job or get sick and are unable to pay your bill. Let me tell you now that is about as worthless as throwing your money into the wind. In the time it takes to fill out all the insurance paperwork and dance through all the hoops you have gotten yourself a mountain of mess with no guarantee you will find relief. If you get your account closed with more than a $20 balance you will be charged $3.00/month until paid off.
Bottom line, First Premier wants you to charge to help you build or rebuild your credit so they help you along in the process guaranteeing you use the card by charging all these fees in the beginning. As if we need help charging things on credit in this society. I'm kind of kidding here. Make no mistake though, all these fees are income makers to First Premier Bank, however, the bank really is taking some risks in extending small amounts of credit to those who can't find it elsewhere. By charging you all these fees up front, First Premier is making sure that they are the beneficiaries of at least some of your credit card activity. Is your head spinning yet? Do you have the time to stay on top of this one more complication in your life? I wonder how many accounts get closed in relation to the number they open due to inability to manage this card? All this for a mere $250 in credit. You'd do better to pay yourself these fees right into an ING Direct savings account for use when you need it until you can qualify for the better cards.
At this point, if this is your last resort (in some cases the only resort) for a credit card you need to think about the following things. If a creditor sees you have a First Premier Credit Card there is a red flag that you have had trouble in the past or are a first time borrower with no credit history and First Premier is taking a chance to allow you to rebuild or establish your credit. It's not exactly a stellar card to boost your reputation with credit and yet it does serve a purpose for those who can't get credit anywhere else or those just starting out. I am not sure if FICO, the company who is responsible for calculating credit scores looks at who you have credit with as much as the history that is reported. For that reason the "type" of credit card it is MAY not be as harmful to further credit with others. It is a definite option and when managed correctly over time can move you on to the "big boys" of the credit card industry. Finally be aware that with this card you may be fee'd into a downward financial spiral if you don't manage and manage well.
If this is your best option try to live by the following advice. Use caution and pay attention to the fees and the rules. Pay on or ahead of time. Try to pay the card off every month or just leave a balance of a suggested 5-10% of the credit limit for the next month. Don't ask for an increase in your credit limit unless they tell you they will do that for free. Don't use it for cash withdrawals as those fees are even at a higher percent payback. And when you make a payment, don't wait till the last day, send your check 5 or more days ahead of the due date. Internet access for those who do most things via the Internet might be worth the one-time $3.95 fee for managing purposes.
One other note: If you are tired of receiving these notices you can call 1-888-675-8688 to stop receiving "pre-screened" offers of credit from this and other companies.
First Premier Platinum Mastercard is not the only card of this type. Many have followed this model and below I have reviewed a few of them for comparison purposes. In fact this has become a popular offer as the personal credit crisis increases. Sub-prime Credit Cards, as they are called, have become a new industry. Below I have reviewed 4 programs, 2 Mastercard and 2 Visa. You need to read the fine print to make sure you understand the terms of each.
Click this link to see the table comparing the cards discussed above.
I took a minute to tear into some of these offers for the credit builder and/or new credit consumer and the following is what I found. In general, those who need to hang on to their money the most are the ones being targeted for these offers. Let's look at one of the most popular and well advertised "beginner/rebuilder" credit cards called First Premier Platinum Mastercard from Sioux Falls, SD. The offer I see actually says you are pre-approved for the First Premier Platinum MasterCard. This offer is showing a 9.9% rate on all purchases made with this card. That's a great interest rate for this type of credit card but buyer beware.
First Premier says that you will be granted AT LEAST a $250 credit limit. I've yet to see many applications approved for more than that. Now from that $250 credit limit, they (First Premier) are going to add charges immediately. You don't even have to worry about charging anything because most of your limit will be eaten up by the following fees upon opening your account. You will have an annual fee of $48.00. Then there's a one time program fee of $95.00. So far that's $143.00 in fees. Add to that an account set up fee of $29.00 and a monthly service fee (not finance charge) of $7.00. This is a grand total of $179.00 in fees on which you must start paying. With a $250 credit limit that leaves you with a $71.00 available credit line. You could single handedly eat that available credit by asking for another card on the same account for which you would be charged an annual $20.00 and a one-time $3.95 Internet access fee should you want to watch your balance often online. This leaves you with $47.05 left to use. God forbid you ever ask for a credit increase as this will cost you another $25.00 each time you request one. Now, if you should ever go over your limit of $250 anytime during the 25 day billing cycle, charging more so that the balance is above your credit line, you will be hit with an over limit fee of $29.00 at the moment you are over your assigned credit limit. The program doesn't wait to see where you are in your balance at the end of the cycle. Pay attention because the payment cycle is every 25 days and with that, if you should be as much as one day late on your payment you will be assessed a $29.00 late fee. You can choose to pay online or send a check. The convenience of "pay by auto draft service by phone" will set you back another $11.00 a payment in addition to the amount you want to pay. You could opt to use an "Internet auto draft" payment and this will cost $7.00 a payment. So you have to pay to make a payment. Hmmmm, interesting concept. Well, this is a "bank" is it not? You basically could become fee'd to your financial death.
While you start with a 9.9% annual interest rate, if you are late paying your payments two times in a 6 month period or you are late two months in a row, you will automatically go to a penalty interest rate of 19.9% on your balance. You do, however have a chance to redeem the 9.9% if you pay "on time" for three consecutive months. Finally, there is the option of opting in for their Premier Credit Protection Plan which makes you think that you need protection if you lose your job or get sick and are unable to pay your bill. Let me tell you now that is about as worthless as throwing your money into the wind. In the time it takes to fill out all the insurance paperwork and dance through all the hoops you have gotten yourself a mountain of mess with no guarantee you will find relief. If you get your account closed with more than a $20 balance you will be charged $3.00/month until paid off.
Bottom line, First Premier wants you to charge to help you build or rebuild your credit so they help you along in the process guaranteeing you use the card by charging all these fees in the beginning. As if we need help charging things on credit in this society. I'm kind of kidding here. Make no mistake though, all these fees are income makers to First Premier Bank, however, the bank really is taking some risks in extending small amounts of credit to those who can't find it elsewhere. By charging you all these fees up front, First Premier is making sure that they are the beneficiaries of at least some of your credit card activity. Is your head spinning yet? Do you have the time to stay on top of this one more complication in your life? I wonder how many accounts get closed in relation to the number they open due to inability to manage this card? All this for a mere $250 in credit. You'd do better to pay yourself these fees right into an ING Direct savings account for use when you need it until you can qualify for the better cards.
At this point, if this is your last resort (in some cases the only resort) for a credit card you need to think about the following things. If a creditor sees you have a First Premier Credit Card there is a red flag that you have had trouble in the past or are a first time borrower with no credit history and First Premier is taking a chance to allow you to rebuild or establish your credit. It's not exactly a stellar card to boost your reputation with credit and yet it does serve a purpose for those who can't get credit anywhere else or those just starting out. I am not sure if FICO, the company who is responsible for calculating credit scores looks at who you have credit with as much as the history that is reported. For that reason the "type" of credit card it is MAY not be as harmful to further credit with others. It is a definite option and when managed correctly over time can move you on to the "big boys" of the credit card industry. Finally be aware that with this card you may be fee'd into a downward financial spiral if you don't manage and manage well.
If this is your best option try to live by the following advice. Use caution and pay attention to the fees and the rules. Pay on or ahead of time. Try to pay the card off every month or just leave a balance of a suggested 5-10% of the credit limit for the next month. Don't ask for an increase in your credit limit unless they tell you they will do that for free. Don't use it for cash withdrawals as those fees are even at a higher percent payback. And when you make a payment, don't wait till the last day, send your check 5 or more days ahead of the due date. Internet access for those who do most things via the Internet might be worth the one-time $3.95 fee for managing purposes.
One other note: If you are tired of receiving these notices you can call 1-888-675-8688 to stop receiving "pre-screened" offers of credit from this and other companies.
First Premier Platinum Mastercard is not the only card of this type. Many have followed this model and below I have reviewed a few of them for comparison purposes. In fact this has become a popular offer as the personal credit crisis increases. Sub-prime Credit Cards, as they are called, have become a new industry. Below I have reviewed 4 programs, 2 Mastercard and 2 Visa. You need to read the fine print to make sure you understand the terms of each.
Click this link to see the table comparing the cards discussed above.
Monday, October 1, 2007
Newsletter Time
Well October 1st is almost here and we've been working hard on our first of many newsletters. What we are hoping for is lots of great information through personal experience and documentation about managing all kinds of consumer credit issues hopefully BEFORE its really needed. There are so many ways a consumer can mess with his/her own credit without realizing it and without sounding mercenary on the free enterprise system, we are going to attempt to make everyone aware of many financial options open to them. Granted some people let other professionals watch these things for them and still others don't really care (until they are affected by it) but the majority of consumers like you and I need to be aware of all that is around us regarding our options as consumers.
Just like people are told as they walk alone, be aware of your surroundings to prevent becoming a victim of crime, so too, the consumer needs to be aware of their finances so they don't become victims, either of their own lack of information or of others preying on that attitude and deficiency. Having young boys on their own I get feedback from them on the things they need to know as they become independent. For that reason we also have created a Young Adult/Student Corner in the newsletter which addresses many issues for those just getting started as full fledged consumers.
I think it is extremely important that we manipulate our consumer options BEFORE they manipulate us! We can only do that if we have information from which to make our own decisions. We're hoping to show you how to get what you want out of life from those who make you offers through advertising. In other words, empower yourself to be a consumer on your own terms!
With that, I hope if you are reading you will respond with information, situations, questions and experiences as a consumer. I want to know what the burning questions out there are.
For October we have highlighted a few articles that may be of interest. We are looking for more topics for November. October's topics are:
Are free credit reports actually free?
There are 4 ways to obtain a credit report. Be informed and understand them BEFORE you find yourself signing up for something you didn't know you signed up for!
How are your loan balances really being reported to the credit bureaus?
Do you think that just your principal balance is being reported on your loans? Think again! This is an important question to ask a potential lender because it can affect your credit score negatively. Your scores normally go down faster than they go up, so be aware of this practice by some financial institutions before it harms your score and your ability to be accepted for future credit terms.
The Looming Mortgage Crisis.
Congress has asked that mortgage companies assist those high risk borrowers manage their loans in trouble by working with the borrowers. Will mortgage companies bend over backwards for the mortgage holders ?
Student/Young Adult Corner: Banks or Credit Unions?
Just like people are told as they walk alone, be aware of your surroundings to prevent becoming a victim of crime, so too, the consumer needs to be aware of their finances so they don't become victims, either of their own lack of information or of others preying on that attitude and deficiency. Having young boys on their own I get feedback from them on the things they need to know as they become independent. For that reason we also have created a Young Adult/Student Corner in the newsletter which addresses many issues for those just getting started as full fledged consumers.
I think it is extremely important that we manipulate our consumer options BEFORE they manipulate us! We can only do that if we have information from which to make our own decisions. We're hoping to show you how to get what you want out of life from those who make you offers through advertising. In other words, empower yourself to be a consumer on your own terms!
With that, I hope if you are reading you will respond with information, situations, questions and experiences as a consumer. I want to know what the burning questions out there are.
For October we have highlighted a few articles that may be of interest. We are looking for more topics for November. October's topics are:
Are free credit reports actually free?
There are 4 ways to obtain a credit report. Be informed and understand them BEFORE you find yourself signing up for something you didn't know you signed up for!
How are your loan balances really being reported to the credit bureaus?
Do you think that just your principal balance is being reported on your loans? Think again! This is an important question to ask a potential lender because it can affect your credit score negatively. Your scores normally go down faster than they go up, so be aware of this practice by some financial institutions before it harms your score and your ability to be accepted for future credit terms.
The Looming Mortgage Crisis.
Congress has asked that mortgage companies assist those high risk borrowers manage their loans in trouble by working with the borrowers. Will mortgage companies bend over backwards for the mortgage holders ?
Student/Young Adult Corner: Banks or Credit Unions?
When you look for your first checking or savings account what should you look for and what questions should you ask? Are you aware of how banks and credit unions make their money? What you really should know to open your first account.
If these topics are interesting (and one reveals a practice that very few have seen yet) feel free to sign up for the newsletter. We promise there will be lots of information you can use and since we hate having spam and people selling our information we will never sell your e-mail address. We don't want it done to us and we won't do it to anyone else.
Monday, September 24, 2007
Credit Consolidators
Well in lots of terms isn't this a catastrophe about to happen? Not always I guess but as I drove to the office this morning I heard a commercial for those in financial trouble (which we're told is a lot of people nowadays) to use the services of a debt consolidating company. Would I do it? Not unless I was dragged kicking and screaming and put in a dark hole. Why not? Because I believe I can negotiate my own situation should I need to. But not everyone is me.
In one of my companies (small business landscaper) I arrived on the scene too late. Mark (not is real name) had been in financial trouble from the year before trying to keep his dream company alive. What he did was apply for and use lots of credit cards. On top of that he had office rent and two daughters in private high school. He was a stubborn sort and as I like to say, "knew enough to be dangerous". That he was. He allowed a credit consolidation company talk him into peace of mind. Well he might have gotten the peace of mind but I didn't when I was doing his books. What I found what that he was paying a large amount of cash to a credit consolidation company. Some of it went to pay all his creditors the company had supposedly negotiated with and a fair amount went to the consolidation company to pay for the division of monthly cash Mark sent them to make all the payments needed. Not only did I see the amount of cash the consolidation company was taking from the one payment Mark made per month but in reconciling all his credit accounts every month I found late payments because the payments from the consolidation company weren't made on time costing Mark more money. I saw a very small reduction in interest rate and an immediate close of the cards, not a restructuring. Credit Card companies encourage you to either get a consolidation company if you have too much debt or buy the infamous credit protection plan. (More on that another time.) What they don't tell you is whether or not they will cancel your card the minute you employ a credit consolidation company for them to talk to. Most of them automatically close your account with little hope of reopening it again. What you have to be careful doing is checking the amount the consolidation company asks you to pay them and what is left over to reduce your debt on a monthly basis.
You can actually do what they do yourself. Call your creditors and plead your case with sincerity and truthfulness. Many times you will find a customer service agent who will be more than willing to help you. Once in a while they will go that extra mile with you if you are pleasant, cordial and at least acknowledge that they do the best they can.
Would I use a debt consolidation company? Nope not on your life. I don't believe the investment is close to being worth the outcome.
The credit
In one of my companies (small business landscaper) I arrived on the scene too late. Mark (not is real name) had been in financial trouble from the year before trying to keep his dream company alive. What he did was apply for and use lots of credit cards. On top of that he had office rent and two daughters in private high school. He was a stubborn sort and as I like to say, "knew enough to be dangerous". That he was. He allowed a credit consolidation company talk him into peace of mind. Well he might have gotten the peace of mind but I didn't when I was doing his books. What I found what that he was paying a large amount of cash to a credit consolidation company. Some of it went to pay all his creditors the company had supposedly negotiated with and a fair amount went to the consolidation company to pay for the division of monthly cash Mark sent them to make all the payments needed. Not only did I see the amount of cash the consolidation company was taking from the one payment Mark made per month but in reconciling all his credit accounts every month I found late payments because the payments from the consolidation company weren't made on time costing Mark more money. I saw a very small reduction in interest rate and an immediate close of the cards, not a restructuring. Credit Card companies encourage you to either get a consolidation company if you have too much debt or buy the infamous credit protection plan. (More on that another time.) What they don't tell you is whether or not they will cancel your card the minute you employ a credit consolidation company for them to talk to. Most of them automatically close your account with little hope of reopening it again. What you have to be careful doing is checking the amount the consolidation company asks you to pay them and what is left over to reduce your debt on a monthly basis.
You can actually do what they do yourself. Call your creditors and plead your case with sincerity and truthfulness. Many times you will find a customer service agent who will be more than willing to help you. Once in a while they will go that extra mile with you if you are pleasant, cordial and at least acknowledge that they do the best they can.
Would I use a debt consolidation company? Nope not on your life. I don't believe the investment is close to being worth the outcome.
The credit
Sunday, September 23, 2007
Why Consumer Warfare?
I've so wanted to be able to put something "out there" to help the average consumer help him/herself as life whirls around all the opportunities and occasions that come about in one's life. All the simple things it takes to maintain a calm in our lives while trying to stay up with the mainstay and cope with an ever changing world of consumerism can also become complex. At times it seems to be the consumer against the "free enterprise" system but I have now come to realize that it doesn't have to be that way. I think of it as waging consumer warfare against the complacency and just plain lack of knowing where to ask the right questions to make our own situations better.
Ta da da! Here I am, thanks to the freedom of the Internet. OK OK I am NOT Alan Greenspan, a member of the Brookings Institute, a Wharton School of Business grad, just a consumer who's made some dumb choices and some good choices. I'm sharing both in an effort that someone might avoid a catastrophe in their lives. Like Iran and Vietnam before that.....consumer warfare might be a no-win situation but in-roads may be made and the intention is good. And I'm just not apathetic enough to sit on my dream. So if I've made a difference in just one good decision a consumer has made for him/herself, I've reached my personal goal. I really don't believe I can stop at one helpful situation though. Hence the website Consumerwarfare.com. It's my vehicle to explore options for good choices made by informed consumers with information for those who want to know more. It's up to everyone to make their own decisions. I provide the information as neatly organized as possible.
Make no mistake, I will NOT debate Iran/Iraq/Vietnam/WWI OR II or anything other than consumer choices and information to make those choices good for one's own consumer situation. I do not blame George W. and the GOP for everything from The Great Housing Fiasco nor responsibility for the little Hollywood brats exhibiting their outrageous needs for attention. Choices people...they are ours to make! I really don't think we have to look too far to see that all our choices have consequences good or bad so its time to "man-up" or in other cases "woman-up" and take our own responsibility for how we all get into these messes in the first place. Your author here is high on that list! We can gripe/post/flame throw/blaspheme but the choices have ALWAYS been ours no matter what the situation so let's just see if we can make better consumer choices. In fact, we can convey and get results by what we don't do. If we don't shop at a certain store we don't have to make the bad purchases. If enough decision makers (consumers) make the obvious choices, the stores will change. And in the cases where stores won't change, we have the option of finding another alternative for ourselves. Think hard. There is an answer to everything.
My sis has been trying to convince me of our own choices and ways of thinking: That how we view things are usually how they are going to be for us. It's up to us whether we are going to open up our minds to positive outcomes and change, or simply sit back to apathy and complacency thinking that life is what it is and never try to improve our own situations as a first step. She's morphed already and I'm slowly getting there. What I hope to provide to anyone viewing this blog is a place to read, disagree, agree, support or show example regarding the consumer's journey through what free-enterprise has given us to choose. From time to time I find something that hits me hard with the need to share. I don't always have the right idea but I will present the facts. As an old debater who learned to defend both sides of a burning question (sometimes it was bitter and sweet all at once) I will ask most of the questions and try to back them with authority better versed than I. Sometimes I will just plain blog on passion; not passion passion but passion about a consumer issue. I encourage you to do the same in your replies should you choose to do so. That will make my blogging so much more meaningful.
I will let you know that I will not tolerate bad language on this blog as I believe that EVERYONE can blog and speak without the casual and easy expletives of life. I'm no angel but there is a time and place for everything (I think). ;-) Happy blogging to me and anyone else who has something to say.
Ta da da! Here I am, thanks to the freedom of the Internet. OK OK I am NOT Alan Greenspan, a member of the Brookings Institute, a Wharton School of Business grad, just a consumer who's made some dumb choices and some good choices. I'm sharing both in an effort that someone might avoid a catastrophe in their lives. Like Iran and Vietnam before that.....consumer warfare might be a no-win situation but in-roads may be made and the intention is good. And I'm just not apathetic enough to sit on my dream. So if I've made a difference in just one good decision a consumer has made for him/herself, I've reached my personal goal. I really don't believe I can stop at one helpful situation though. Hence the website Consumerwarfare.com. It's my vehicle to explore options for good choices made by informed consumers with information for those who want to know more. It's up to everyone to make their own decisions. I provide the information as neatly organized as possible.
Make no mistake, I will NOT debate Iran/Iraq/Vietnam/WWI OR II or anything other than consumer choices and information to make those choices good for one's own consumer situation. I do not blame George W. and the GOP for everything from The Great Housing Fiasco nor responsibility for the little Hollywood brats exhibiting their outrageous needs for attention. Choices people...they are ours to make! I really don't think we have to look too far to see that all our choices have consequences good or bad so its time to "man-up" or in other cases "woman-up" and take our own responsibility for how we all get into these messes in the first place. Your author here is high on that list! We can gripe/post/flame throw/blaspheme but the choices have ALWAYS been ours no matter what the situation so let's just see if we can make better consumer choices. In fact, we can convey and get results by what we don't do. If we don't shop at a certain store we don't have to make the bad purchases. If enough decision makers (consumers) make the obvious choices, the stores will change. And in the cases where stores won't change, we have the option of finding another alternative for ourselves. Think hard. There is an answer to everything.
My sis has been trying to convince me of our own choices and ways of thinking: That how we view things are usually how they are going to be for us. It's up to us whether we are going to open up our minds to positive outcomes and change, or simply sit back to apathy and complacency thinking that life is what it is and never try to improve our own situations as a first step. She's morphed already and I'm slowly getting there. What I hope to provide to anyone viewing this blog is a place to read, disagree, agree, support or show example regarding the consumer's journey through what free-enterprise has given us to choose. From time to time I find something that hits me hard with the need to share. I don't always have the right idea but I will present the facts. As an old debater who learned to defend both sides of a burning question (sometimes it was bitter and sweet all at once) I will ask most of the questions and try to back them with authority better versed than I. Sometimes I will just plain blog on passion; not passion passion but passion about a consumer issue. I encourage you to do the same in your replies should you choose to do so. That will make my blogging so much more meaningful.
I will let you know that I will not tolerate bad language on this blog as I believe that EVERYONE can blog and speak without the casual and easy expletives of life. I'm no angel but there is a time and place for everything (I think). ;-) Happy blogging to me and anyone else who has something to say.
Subscribe to:
Posts (Atom)