I am a Bill Collector, ask me anything.

Extracts:

Question:

I’ve had my share of ER bills and more than a few of them have gone unpaid. When the collection agency starts calling, I tried to politely explain that I just couldn’t pay because I didn’t have any money. I have lost my temper on a few occasions, particularly when a debt collector suggested I take out a loan to pay my unpaid medical bills. So my question is this: how much influence do you have over an individual’s credit rating? At what point does the uncollected bill start to effect my credit rating? If I start ranting and raving at you, do you just press a button that says I defaulted or didn’t pay or something like that?

Reply:

Every time i contact a person i make a note of it on my system. Everytime you tell me something that is worthwhile i note it. If you say you are expecting a tax return or getting an inheritance or mention an available balance. .. Sometimes my company does the credit reporting and sometimes the company does the credit reporting. Every client is different; some request credit reporting at 30 days some request at 110 days and some don’t credit report at all.

Question:

Any crazy stories you wanna share?

Reply:

I did have a gentleman threaten to come to my office and kill me. He then went into great detail as to how he was going to accomplish this. I was just trying to help him prevent litigation; he wasn’t having it.

Response to the reply:

Having worked in collections for a few years, I can safely say that after the first few months, hardly anything gets to you. There was a time when the local economy was really bad and I was getting death threats on a weekly basis and it just made my day. Like covering the phone while laughing my ass off. Same goes for my coworkers. Those that last awhile anyway. I don’t think this makes us bad people, but when subjected to this kind of shit you just become numb. (Some) things got to me though;

First, mothers crying over the phone telling you they can’t afford to feed their children (Seriously how are we supposed to deal with that?)

(Also), people that actually are or do a really good over-the-phone impression of someone possessed. Going all Book of revelations on me is only going to piss me off and sign you up for some extra costly legal letters.

Question:

Is there anything I can do to get out of a bill collecting? Just not answer for so long? Make up a sob story? Anything?

Reply:

You could send a letter to the collection agency stating that you wish them to cease and desist all contact with you. I have heard EVERY sob story and i am pretty much heartless. i don’t care about your personal problem i am just focused on the money. Sounds heartless but its how i pay my bills too!

Question:

I’ve had the same cell phone number for close to 2 years, but the jerk who previously owned the number STILL GIVES IT OUT. I keep getting calls from his creditors, and they won’t believe me when I say I am not him. Is there any way I can actually convince these bill collectors or is there a good way I can burn the jerk who gives out a phone number he lost more than 2 years ago?

Reply:

I would try telling the creditors that they are calling you at work. Once they know its a work number the have to LEGALLY stop calling.

Question:

What does bill collecting entail, besides the obvious?

Reply:

I do searching for new numbers to people who we cannot contact. I advise people who are in debt how to resolve them and give consequences doe non payment.

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These ratings will in large part determine the rate of interest countries pay to investors who loan them money via purchase of bonds. The lower the rating, the higher the risk the rating agency has determined the country is, and the higher the interest rate that nation will have to pay to attract investors to buy its bonds.

On the other hand, considering the role that the ratings agencies played in the sub-prime real estate implosion, someone may want to rate the raters…

Some selected countries and their ratings. What is striking is the number of “negative” outlooks…

Wake the President

Most days we can coast along, confident that tomorrow will be much like yesterday. On a very few days we need to look hard at the news headlines, click through to read the whole story, and then completely change a large chunk of how we thought the world worked. Today is such a day.

Everything you knew or thought you believed about the European economy – and the eurozone, which lies at its heart – was just ripped up by financial markets and thrown out of the proverbial window.

While you slept, there was a fundamental repricing of risk in financial markets around Europe – we’ll see shortly about the rest of the world. You may see this called a “panic” and the term conveys the emotions involved, but do not be misled – this is not a flash in a pan; financial markets have taken a long hard view at the fiscal and banking realities in Europe. They have also looked long and hard into the eyes – and, they think, the souls – of politicians and policymakers, including in Washington this weekend.

The conclusion: large parts of Europe are no longer “investment grade” – they are more like “emerging markets”, meaning higher yield, more risky, and in the descriptive if overly evocative term: “junk”.

This is not now about Greece (with 2 year yields reported around 20 percent today) or Portugal (up 7 basis points) or even Spain (2 year yields up 27 basis points; wake up please) or even Italy (up 6 basis points). This is no longer about an IMF package for Greece or even ring fencing other weaker eurozone economies.

This is about the fundamental structure of the eurozone, about the ability and willingness of the international community to restructure government debt in an orderly manner, about the need for currency depreciation within (or across) the eurozone. It is presumably also about shared fiscal authority within the eurozone – i.e., who will support whom and on what basis?

It is also, crucially, about stabilizing the macroeconomic situation without resorting to more unconditional bailouts. Bankers are pounding tables all across Europe, demanding that governments buy out their position – or bring in the IMF to do the same. We again find ourselves approaching the point when the financial sector will scream: rescue us all or face global economic collapse.

The White House did not see this coming – and the Treasury’s attention was elsewhere. The idea that we can leave this to the Europeans to sort out is an idea of yesterday. Today is very different and much more scary.

President Obama is wide awake and working hard. Someone please tell him what is really going on.

Here’s a very poignant description of being in dire financial straits later in life, written by Susan Kemp on her short-lived blog How To Be Poor In America. Kemp had “gone from being a teenage welfare mother to being appointed Assistant Welfare Commissioner for my state.” Due to her health and ‘bad business decisions,” she fell back on hard times.

The Newly Poor

The single hardest part of having more debt than money to pay those debts is negotiating with the people you owe money to. I believe it is an art, a skill that you will have to learn as you’re forced to do it more and more. We’ve all heard that you should call a creditor as soon as you realize you won’t be able to pay a debt on time but that action is considerably easier said than done. When you cannot pay a bill you owe you have no leverage, no tools with which you can negotiate. This leaves you open to anything from having someone speak to you condescendingly or speak to you with open rudeness. Since I started out my adult life poor I thought I knew the rules of the game. On my way “up” I accepted how I was being treated because I believed it would end one day. Never in my worst nightmares did I think I would find myself struggling in the same way financially, at 55 that I did at 25. These struggles have led to what I call the “begging and pleading” phone calls.

These painful phone calls involve my trying to explain why I cannot pay a bill on time or in full or both. The person on the other end of the phone falls into one of two categories Either they’ve been in my shoes or they cannot possibly imagine being in my shoes. Some were kind and willing to help me find a way to keep my lights on or my phone working. There was a wonderful woman who explained the “supervisor” system of approval and that she couldn’t make adjustments to my bill but I should call back and ask for her supervisor. She also explained that this was true for practically any organization that I might call. Her advice has helped me tremendously over these difficult months. Then there are the others-professional bill collectors, in particular. It feels as if they could not even imagine being where I am financially and are fairly sure I’m probably lying to get out of sending them the money I owe. I have been verbally abused and brought to tears. I’ve received over 15 “robocalls” starting at 7:30AM on a Sunday and not ending until well after 8PM that night. I’ve come to feel that I’m being held hostage by my telephone.

I recently found myself in my cellar with a flashlight checking on how much heating oil I had left. Although my oil delivery company had done their best they just couldn’t extend themselves any further. I owed them $1000. It went down to 5 degrees here and we took turns monitoring the fuel oil level throughout the night while keeping the thermostat at 60 degrees. My daughter often says that we’re all just one relative away from being homeless and I’ve marveled at how right she is. We borrowed the $1000 from a relative of my husband and was able to get the fuel oil we needed.

There is something frightening about people who lose the very things that the rest are fighting to achieve – particularly if it’s a career or wealth or a home. If it can happen to me it can happen to you. If it can happen to you it can happen to your families or friends. I can’t tell you how often, in the face of failing health, I was asked “how I’d gotten sick.” As if there was some secret I’m withholding that would help others avoid having a stroke. I have gone from being a teenage welfare mother to being appointed assistant welfare commissioner of my State, from going with my children to a soup kitchen to a six figure salary and back to getting food from the local food bank. My most recent mantra has been “oh how the mighty have fallen.”

He’s also a bit of a downer, as can be seen in his video blog from last week, in which he says the U.S. is in much worse shape than financially struggling Greece, that our sovereign debt should be downgraded, and that the dollar is due for an inevitable plunge.

Schiff often gets credit for being one of the prognosticators who called the 2008 financial collapse. However, the financial writer Eric Tyson blogged that many of Schiff’s predictions have been wrong, and that his clients have lost money. Schiff has responded to his critics–and there are more than one–in kind.

For some perspective, however, look at the following chart,from ZFacts.com. It shows the debt as a percentage of GDP, from about a year ago. Still not good, but only about 2/3 of what it was immediately after WW II.

On the other hand, a lot of the money from those years went toward defeating the Nazis and Imperial Japan. This time, the enemy — who and what it was is still being debated — seemed to come from within.

Maybe when the crisis is officially over, we’ll have a V-G Day. Victory Over Greed.

To the Debt Collector Harassing Me at Work (Pittsburgh)

Your voice is quite charming in a sleazy, condescending, I-Get-Paid-To-Harrass-People kind of way. You must be so good with the ladies – I can picture you on a date, with that deep “I am full of self-importance” voice, asking her “So am I to file you under deadbeat mistress because you won’t sleep with me after knowing me for an hour?”

I am assuming you are either 1. Just out of college and eager to prove yourself by threatening a faceless person on the telephone, 2. A wannabe lawyer who is not smart enough to ever pass the BAR exam and therefore miserable in life, or 3. Someone who was picked on a lot in high school and believes this job is his calling to get revenge on all those bullies who made life a living hell.

Ours is definitely a missed connection, because after the first threatening phone call, I instructed our receptionist to screen all calls from you. Sad, but where I work, as I informed you several times, I cannot continue to speak to you without raising my voice, and unfortunately I cannot tell you everything I really want to say, as I am in public and do not want my coworkers to hear the trash language I would use.

You see, debt collector, my bills have always been paid on time. I am not a deadbeat, nor do I avoid paying my credit cards. But when you have a bank like Bank of America, who gets $20 billion dollars of US tax payers money, then turns around and changes credit card interest rates from 10% to 29.99% with no explanation, increases the monthly minimum amount due from $150 to $675 and turns your account over to a bottom feeder collection agency after two months because their customer could only pay $300 each of those months, there is a problem.

And the problem does not lie with me. Like millions of other Americans who work hard every single day and are struggling, I am not rolling around on a pile of bailout money. I am not buying up other banks and then changing the credit card rules because I can. I am not an executive of Bank of America who lives in a $4 million mansion and flies to exotic places on a private jet while millions of people lose their homes and their lives.

I am, in fact, a college-educated professional who is completely dumbfounded by the state of this country. In fact, I bet the money you say I owe that I am more educated, smarter and make more money than you. I simply don’t make enough to pay you the thousands of dollars you claim I owe you today “or else”. By the way – those fees and surcharges totalling more than $2000 that you tacked on to my Bank of America account balance is not going to fly.

So here’s what I shall do to ensure that we are not just another missed connection.

The next time you call me at work, I will take your call. I will also record the call, since it is illegal for you to continue calling at my place of employment once I have requested that you stop.

I will submit the tape to my attorney, along with my intent to sue you for harrassment, threats and stalking, along with emotional distress (I had to have two glasses of wine to calm my nerves after your call!)

And then I will sit back with my family, relax and know that eventually, this matter will be settled and behind me, and I will continue my life of love and laughter.

You, on the other hand, will still be at your dirty little desk, dressed in your dingy suit and tie, calling other “deadbeats” and lashing out at them because it makes your own pitiful little life seem less empty.

I did something dumb, dumb, dumb. I went to an expensive undergraduate school, then I went to an even more expensive law school. A year and a half out of law school and one year into my first attorney job, a public interest job that is my calling but doesn’t pay much, I am up to my ears in debt. So six months ago I decided I wanted to get rid of it. All of it…This blog is intended to chronicle my journey.

That was in February, and our heroine has since managed to trim 10k off her tab, which now stands at $156,754.33. So this blog may outlast the Internet. But still, tha’s an impressive 6% reduction. How did she do it? Well, first and foremost, as she acknowledges herself, by being really, really thrifty.

Only throw out your clothes when you have a hole in the butt

I’ve done a couple posts about my rather extreme thriftiness. Some people may call it cheap, but I laugh last when I’m able to put that extra several dollars a month on my debt.

Anyway, a favorite pair of boxer shorts of mine that I’ve had since middle school and wear to bed when it’s hot bit the dust yesterday. Tore a whole right down the butt when I sat down! That is when it’s time to wave the white flag and throw that piece of clothing out. I got over 10 years out of those shorts, not too bad.

Don’t waste your money at Starbucks

Today at McDonald’s they are giving away free iced or hot Mochas (definitely go with iced). No purchase necessary, you just have to drive through and ask for it! I’m going this morning on my way to work. It’s until 7 p.m., and they’re doing it next Monday too.

Starbucks eats your money. It’s a sweet treat that sucks you dry. Give it up for financial reasons like you should give up smoking for financial reasons. I gave it up, and as you can see I still find ways to get gourmet coffee without purchasing it myself, although I can’t get it nearly as often.

Free coupons

For whatever reason, for the past several weeks my neighbor has been throwing out his edition of the Sunday paper into the recycle bin every Monday morning, unread, still wrapped up in its tie. So I’ve been helping myself to his paper, and the coupons!

My economical doggie

Don’t buy (dog) toys. People will give you toys just like they give you toys when you have a new baby. G. has a huge basket full of toys I never bought.

Saving money in little ways

• I squeeze every last drop out of toothpaste, shampoos, and hair products. You can cut open a toothpaste tube and scrape out the paste. I’ve gotten several more days out of a tube when I do this. Shampoo bottles should always be turned upside down and then filled with water to get the last out.

• You don’t need to string off a huge piece of floss. Just cut off enough to roll up on your fingers, maybe about seven inches.

• I keep my eye on the dumpster. I’ve gotten beautiful bookshelves, a coffee table, a TV table, a wine rack, and several crates there. I always wash and disinfect everything thoroughly and it’s as good as new.

Open letter to Wal-Mart

Dear WalMart,

Until today, I have not been through your doors in the past four years…I prefer smaller businesses and supporting mom and pop places…I don’t like things I’ve heard about you over the years, like the low wages you pay your employees…I don’t like walking around for fifteen minutes just trying to find nail polish remover. I hate your oversized carts which barely fit two across in an aisle and I hate that you don’t provide a smaller cart option or even a basket… Your store is often dirty, you are sometimes out of products I want (although I’m sure there are some in your storeroom if I could only find someone to help me), and the shelves are often messy and disorganized. The lines at checkout are the longest I’ve ever seen in any store. I find going into your store to be a very stressful experience.

But this economy has me really scraping the bottom of the barrel. Despite all your drawbacks, I still cannot beat your prices. Today I spent only $25 dollars in your store on the following: floss, anti-cavity rinse, pack of razors–high quality, nail polish remover, kitchen cleaner, feminine products, name brand conditioner, and a large bottle of refill hand soap. I just don’t think I could get all that for under $25 anywhere else.

When my financial situation gets better, I’m not going back to your store unless my experience there changes. But until then, you’ve reeled me in as a customer. I suspect the reason your profits continue to go up in this economy is largely because of people like me. Congratulations.

$1 back from the local politician

The other day I was surprised to get a text message from a local politician I’ve never heard of to my personal cell phone number… (w)hat irritated me more was that the text message came to my personal cell, on which I don’t have a text message plan…(A) text on my personal cell, either incoming or outgoing, costs 30 cents a pop. That might not sound like a lot, but a simple back and forth conversation for a few minutes generating half a dozen texts quickly adds up to several dollars.

Annoyed, I Googled this politican and found an email address, and I asked him to reimburse me. I was probably a little more enraged than I should have been over 30 cents, but I get enough spam via snail mail and email… (He) emailed me back immediately, apologized, and said he would pay me back.

True to his word, today in the mail arrived a handwritten note along with a dollar bill. I’m happy to know I have at least one local politican who is worth representing me.

This woman’s actually a defense lawyer, and if attention to detail matters at all in that profession, she’s probably a good one…

Take, for example, the False Alarm post:

Yesterday we received a call I thought we’d never get. A call from…

A COLLECTIONS AGENCY!

‘This message is for XXX, we have an urgent matter to discuss with you. We’re calling from Blankety Blank Collections, please call us immediately!’

I called my husband in a panic. ‘Honey, you’ve got something in COLLECTIONS! Can you call them the second you get home!!??’

I dialed again.

*ring*

‘Hon, don’t give them your Social Security Number!’

*ring*

‘Hon, don’t give them your credit card number!’

*ring*

‘Tell them we want something in writing or an office address!’

To which he finally said, ‘Sweetheart, I can’t call them unless you stop calling me.’

Oh. Oops.

A few minutes later, he called me back and said…

‘Same name, wrong person.’

Hey Collections folks, thanks for making not only people with who can’t pay their bills miserable but also everyone else who shares their name.

I can only hope they won’t be calling back.

And the Keeping Up With the Jones’s (High School Edition) post:

Yesterday, my husband notified me we would have guests…Then, he casually mentioned (they) were old high school buddies and this was really important to him.

On the inside, our home is nice. On the outside… well, let’s just say we usually wait until the sun has set and our guests have had a glass or two (preferably three) of Chardonnay. We can’t afford landscaping so our yard is a grouping of well-mowed weeds and raked dirt piles.

Before we went on this recovery from debt diet, we had planned to landscape our backyard and remodel our 50-year-old kitchen. Take out another loan – it would have been so easy. But now, we’re living within our means and paying off debt. It will likely be another 5 years before we can pay cash.

It’s hard to deal with the pressures of keeping up with our peers. It’s hard to not feel a little embarrassed at our less than presentable yard…

Then there’s the Sarcastic Venting post

Dear State of California College,

First off, I’d like to thank you for cashing my husband’s tuition check within 12 hours of receiving it. Who knew that was even possible? Though to be honest, I’m not quite sure why we pay two months in advance and are later reimbursed. It kinda sounds like a man I heard about… what’s his name? Ponzi?

Second, I recently received your request for an additional $150 per semester – as if the two thousand I just paid you was completely insufficient for a whopping six units… and let’s not discuss your $200 parking pass shall we? I was amused at the complete ambiguity as for the reasons why the additional funds were needed from all 30,000 or so students but I was NOT amused when I actually had to pay it. But hey, thanks for allowing me to defer this unexpected payment for three weeks. I guess that’s supposed to help me be happy about paying more and getting less? I have approximately $26 in my checking account. Clearly, I cannot spend $150 when I only have $26. Who do you think I am? The state of California?

Also, I want to thank you for delaying the receipt of my husband’s tuition funds for two months. Perhaps you are trying to help the business students perfect the art of living off ramen noodles and tuna and hone their negotiating skills with creditors?

When we called to check the status on the cash flow, you said the check was ‘in the mail’. 3 weeks have passed. Are the checks being personally delivered by a three legged dog on a skateboard? In short, in response to your request for additional funds…

The check is in the mail.

Sincerely,

The broke wife of a California college student

And the Humane Concerns Trumping Financial Concerns post:

One of my dogs passed away…He actually passed away about a month ago, I just couldn’t talk about it before now.

Financially, the smart thing would have been to keep my family a one-dog family but every time I came home and saw my remaining dog mope around the house, I knew I couldn’t leave things the way they were. When he stopped eating and whined constantly, I was reduced to tears on a daily basis.

I spent a week searching shelters but couldn’t seem to find a dog that fit our dynamic. I don’t believe in buying dogs for short term commitments and knew bringing home anything but a perfect fit would be a bad idea. I decided to stop at one more, knowing if I didn’t find the right dog, I’d simply give up.

Then I met Hutch.

I was still in the habit at crying at the sight of dogs and sat on the floor thinking I’d never find another I could love at much as my last. Hutch took one look at me, crawled into my lap, and promptly fell asleep.

Needless to say, he came home with me.

Financially, I made a mistake. A dog is a financial responsibility – even if he is replacing another. Physically and emotionally, I did what my heart (any my other dog) needed.

If you see a redhead jogging down the street with two wagging tailed dogs and a grin the size of Texas… that’s probably me.

Finally, there are the moments when all the hard work pays off:

Shhh. If I say this too loudly, I may jinx it.

OUR CREDIT CARD IS PAID OFF!!!!

And of course, sometimes a little home-team rooting in the comments section can help:

Way to go girl. Watching this transformation take place, (budgeting, biking, running, etc.) has been rather exciting. Maybe dad and I should try something like that? or maybe not.

Love you, mom

As a bonus, Beks’ predecessor on the blog, Tricia, who has already blogged her way out of debt, periodically returns with updates, reminding us that life after red ink is not all roses:

… (we received) a wonderful surprise from our health insurance company. They decided to raise our rates 28%. Oh, and the first payment with the new rate was due today. That’s an extra $115/month we have to pay – and we didn’t even get a 30 day notice. If we didn’t need (it), I would have cancelled right then and there. I understand that rates sometimes need to be increased. We’ve dealt with many companies that have raised rates recently. But giving less than 30 day’s notice is dirty in my book. We are fortunate – we had a little bit of wiggle room to be able to cover it this month. I know that there are many families that didn’t.

With everything going on, I am still very grateful. We are still credit card debt free and we are still holding our head above water. We’ll keep plugging away with increasing our emergency savings and paying off the rest of our debt, even if sometimes it feels like we are spinning our wheels. Eventually we’ll get some traction.

So if you’re in search of a model for reducing your debt or would just enjoy observing the slow-but-sure getting-out-from-under of another, you’ll find this blog of interest.

And for the next step up in under water financial blogging, check out Drowning in $166,356.75 in debt. That’s hardcore, and merits its own entry, which we’ll write up soon.