"My name is Xyz, and I'm a senior Finanacial Advisor at Bank of America"
So, recently, my bank charged me overdraft fee, even though there was plenty of money in the account. Here is how it happened:
1.) I write a check, and give it to somebody
2.) I negotiated, and got a different price, person agrees to refund, but says already deposited.
3.) I put in a check stop, (for $30, but worth it)
4.) Bank charges me for the check stop (listed before #5)
5.) Check comes through, and exceeds what was in the account (since I expected it to be less)
6.) Several other checks and charges come to the account due to regularly scheduled payments ON THE SAME DAY, just after the overdraft of the large check.
7.) Even though there is enough amount of money in the account to cover all but the stopped check, all payments were charged overdraft fee!!
8.) I spend an hour on the phone with their Senior something: "But sir!!! this is how the bank industry works! We give money away, even though there is not enough, and it'll take us a day to notice. In the mean time, we'll actually make your ballance negative, and sit here and charge you for each payment that comes through. This is right! and this is how everybody does it, and more importantly, I think it's right"
9.) me: "But wait! You didn't look at my check? I gave you enough information to stop it! why didn't stop? And if there wasn't enough money in the account to pay, why not charge me over draft for that one charge, and not charge me for the other charges to this account?"
10.) "That's just how it works. And I've tried to explain to you...., and the thick book that you got when you opened the account also explains it, and we expect that you looked at it. that's just how the industry works."
evil? unethical? greedy? Or just a great business practice?
Sunday, July 29, 2007
Sunday, June 17, 2007
How many times has it been?
Missed a payment to BoA, credit card suddenly began to accumulate interest at 9.9% APR.
Sad, this must be like the hundredth time I missed a payment on a large debt and lost 0% APR special rates. Why do I even fall for it in the first place? The bank made something like $100 on the balance transfer fee for what? A call from service representative,... sigh,... add this to the hundred million things on "I'll never do that again" again.
Sad, this must be like the hundredth time I missed a payment on a large debt and lost 0% APR special rates. Why do I even fall for it in the first place? The bank made something like $100 on the balance transfer fee for what? A call from service representative,... sigh,... add this to the hundred million things on "I'll never do that again" again.
Sunday, March 18, 2007
Buying bulk is cheap
It is well known in the business world that buying bulk is cheap.
About half a year ago, I purchased about 30 ink cartridge for my ink-jet printer. I felt fairly happy that I took this bold step, and congratulating myself on making a good business decision. Fast forward 6 months, yesterday, while printing, I needed a new cartridge, and when I retrieved a box, I discover that the cartridge in this box was empty (in fact an entirely empty cartridge packaged in a brand new box.) Since it's been 6 months, I've long lost the receipts, and who sold me these cartridge..... What a smart business to do this?? Even if I found it at time of purchase, it would still be a bit of fuss before I can get them to replace this defective cartridge.
To do for future purchase:
sample: open some fraction of the packages(maybe 5 of 30) uniformly sampled from the box, or preferring the bottom, since this would decrease the likelihood of timely discovery. Make sure that these cartridge don't look obviously broken or used as was the case.
About half a year ago, I purchased about 30 ink cartridge for my ink-jet printer. I felt fairly happy that I took this bold step, and congratulating myself on making a good business decision. Fast forward 6 months, yesterday, while printing, I needed a new cartridge, and when I retrieved a box, I discover that the cartridge in this box was empty (in fact an entirely empty cartridge packaged in a brand new box.) Since it's been 6 months, I've long lost the receipts, and who sold me these cartridge..... What a smart business to do this?? Even if I found it at time of purchase, it would still be a bit of fuss before I can get them to replace this defective cartridge.
To do for future purchase:
sample: open some fraction of the packages(maybe 5 of 30) uniformly sampled from the box, or preferring the bottom, since this would decrease the likelihood of timely discovery. Make sure that these cartridge don't look obviously broken or used as was the case.
Monday, March 05, 2007
more Credit Card issues
Note, that 0% APR ballance transfer has:
- Finance charges (a percentage, but often with an upper limit)
- Very high interest rates after the offer period expires.
- And that you cannot write a check for the entire credit line: leave room to pay for finance charges.
Thursday, February 22, 2007
Talk to the boss
So, the saga continues with the car insurance company.
This time, a month later, the cheque for damage to the car still hasn't arrived. Call back, and the insurance agent does not respond. Finally, I reach his boss (extension in his answering machine). The boss checks and tells me that it hasn't been mailed yet. I demand that he send it to me, and he politely agrees.
So, apparently the message "... if this is an emergency, you can reach my manager..." was a "... if you ever want your check, call this number...", and I can't sue them for the delay because, well, they left a message with instructions.
sheesh!
This time, a month later, the cheque for damage to the car still hasn't arrived. Call back, and the insurance agent does not respond. Finally, I reach his boss (extension in his answering machine). The boss checks and tells me that it hasn't been mailed yet. I demand that he send it to me, and he politely agrees.
So, apparently the message "... if this is an emergency, you can reach my manager..." was a "... if you ever want your check, call this number...", and I can't sue them for the delay because, well, they left a message with instructions.
sheesh!
Sunday, February 04, 2007
Symantec rebate
In 2006, Symantec sold free internet security software at outpost.com
The $70 rebate came in the mail in the form of two charge cards (50+20). It's a debit card without pin. One has to specify at the cash register (twice) that it's should be charged as a credit card.
The problem with this is that the charge, if exceeds the amount remaining on the card, will be refused. And since you don't have the pin, you won't know how much is left.
The card, then expires December 2007, conveniently keeping what ever change you couldn't get out of it. Note that the rebate is two cards, not one worth $70. Definitely, another sales trick to make back the change.
The $70 rebate came in the mail in the form of two charge cards (50+20). It's a debit card without pin. One has to specify at the cash register (twice) that it's should be charged as a credit card.
The problem with this is that the charge, if exceeds the amount remaining on the card, will be refused. And since you don't have the pin, you won't know how much is left.
The card, then expires December 2007, conveniently keeping what ever change you couldn't get out of it. Note that the rebate is two cards, not one worth $70. Definitely, another sales trick to make back the change.
Tuesday, January 30, 2007
Auction trick
I heard of this one from a talk by a proud startup owner, but I'm sure it's one of the oldest tricks in the book.
In an auction of non-unique items, keep track of the losing bidders, and offer to them, in private, lower price for the same good they bid for, at the price they offered to buy at during the auction. This increases the volume of sales but optimizes the price.
Without knowledge of it, all participants in the auctions are at loss.
Ohh... BTW, the startup, making millions, actually does this automatically while the owner sits there and watch his eBay store earn money.
In an auction of non-unique items, keep track of the losing bidders, and offer to them, in private, lower price for the same good they bid for, at the price they offered to buy at during the auction. This increases the volume of sales but optimizes the price.
Without knowledge of it, all participants in the auctions are at loss.
Ohh... BTW, the startup, making millions, actually does this automatically while the owner sits there and watch his eBay store earn money.
Monday, January 29, 2007
Sprint
The quality of your connection (number of calls dropped, the sound quality) changes over the time of your contract with the company. Also If you request them to honor a promise of free phone, rebates, or other savings, that they decided to conveniently forget, then you will notice, very immediate drop in quality of the sound and increase in number of calls dropped. The change is so instantaneous that one almost suspect that there is a routine that computes the amount of money your account is paying, and will be paying, and changes the quality of your call based on that.
Landlord
Lease: "This lease last a year, from October 30 XXXX to Nov 31 XXXX+1"... 13 month year.
Lease: Say, very politely, that the tenant has to put up with occasional remodeling/construction. Then do major remodeling, using cheap contractor that works from 8am to 11:30pm...
Favorite saying: "Again, that clause about XXXX carcinogenic chemical/material in the building is required by law. I personally really don't think there's any in the unit." (here "I" is an agent, who spends maybe an hour a day at the apartment once a year).
Credit Check: Landlord are not allowed to ask possible tenant to bring credit information. There appears to be a law against it to prevent rental discrimination. But of course, they still do ask if she thinks you don't know about the law.
Eviction
Well, there are many ways:
A.) Claim that a 30 year old washing machine was vandalized. Lock the laundry room to make it in convenient for the residents.
B.) Turn water off for repairs repeatedly for several weeks.
C.) Tow cars away immediately whenever reported.
Lease: Say, very politely, that the tenant has to put up with occasional remodeling/construction. Then do major remodeling, using cheap contractor that works from 8am to 11:30pm...
Favorite saying: "Again, that clause about XXXX carcinogenic chemical/material in the building is required by law. I personally really don't think there's any in the unit." (here "I" is an agent, who spends maybe an hour a day at the apartment once a year).
Credit Check: Landlord are not allowed to ask possible tenant to bring credit information. There appears to be a law against it to prevent rental discrimination. But of course, they still do ask if she thinks you don't know about the law.
Eviction
Well, there are many ways:
A.) Claim that a 30 year old washing machine was vandalized. Lock the laundry room to make it in convenient for the residents.
B.) Turn water off for repairs repeatedly for several weeks.
C.) Tow cars away immediately whenever reported.
Car Insurance
Insurance company: Admit fault, give a large estimate on the damaged on the car. (hopefully, that was on paper)
Insurance company, another agent: calls you up, asks for the medical bill, mumbles something about a separate check for the car damage (Car damage, thankfully is far more than the medical bill). Sends you the check for it, and a release that disconnects them from any and all legal responsibilities.
You: Deposit the check, and signs the release..., not realizing that you don't have the check for the car, and up a river with out ..., a car.
Insurance company, another agent: calls you up, asks for the medical bill, mumbles something about a separate check for the car damage (Car damage, thankfully is far more than the medical bill). Sends you the check for it, and a release that disconnects them from any and all legal responsibilities.
You: Deposit the check, and signs the release..., not realizing that you don't have the check for the car, and up a river with out ..., a car.
Sunday, January 28, 2007
Zero-percent-apr
Well, this story is often retold.
When you receive a special promotion on a credit card. Often, you may not notice until some time later, that the newest deal applies to only newest spending.
This means, all these months, that you sat there enjoying your zero percent APR, the balance in the account is still accruing finance charges.
Now, the trick here is that you can't pay off the debt that is collecting interest, until you've paid off the zero-percent-apr balance. Which, results in you paying the entire balance anyways.
When you receive a special promotion on a credit card. Often, you may not notice until some time later, that the newest deal applies to only newest spending.
This means, all these months, that you sat there enjoying your zero percent APR, the balance in the account is still accruing finance charges.
Now, the trick here is that you can't pay off the debt that is collecting interest, until you've paid off the zero-percent-apr balance. Which, results in you paying the entire balance anyways.
How to cancel a business deal
Problem:
Financial instution Q had a promotional offer on their card. But this promotional offer was not needed. But the original agreement did not allow for the termination of the benefits.
Solution:
When the users in the program has to apply for a new card, either due to loss of card (because the address change for the card is separate from the rest of the account). Simply force them to reapply under new terms and conditions.
Problem solved.
The user will not know what hit him until he reports that he didn't see the card in the mail (reporting it stolen). Then "You must reapply" appears on the screen.
Financial instution Q had a promotional offer on their card. But this promotional offer was not needed. But the original agreement did not allow for the termination of the benefits.
Solution:
When the users in the program has to apply for a new card, either due to loss of card (because the address change for the card is separate from the rest of the account). Simply force them to reapply under new terms and conditions.
Problem solved.
The user will not know what hit him until he reports that he didn't see the card in the mail (reporting it stolen). Then "You must reapply" appears on the screen.
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