Credit Card Department Psychosis

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POST #19
Debt settlement is a very interesting process.

  • On the one hand it is simple: you negotiate a lump sum payment with your bank at a fraction of the amount owed and you both go your separate ways.
  • On the other hand, you are dealing with a corporation and as you may know from the movie The Corporation.

“If the dominant institution of our time [the corporation] has been created in the image of the psychopath, who bears the moral responsibility for it’s actions?”

This is the crux of the problem with debt settlement. It isn’t that the bank doesn’t want to settle, it’s that they behave like psychopaths.  Let’s remember:

  • In October, the credit department told me the never for less than 85%
  • In November the collection department told me the never settle for less than 60%
  • In December the recovery department told me they never settle for less than 40%

So how did I get a settlement for 35%?
Simple answer: Corporations are psychotic!

The Interior of Bedlam (Bethlem Royal Hospital...
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But really, it came down to this. I discovered that when dealing with a corporation like a bank, I have to understand that different departments have different standards and quotas. The collections department is supposed to stonewall you at 60% because they know most consumers will be intimidated and settle. The bank also knows that once your account is in the recovery department, they have to make a better offer or will likely get nothing. Your credit will suffer once your account is in recovery, and they will use this as a bargaining chip. I already knew that credit repair was in my future, so I couldn’t let a few more points get in the way of a good deal.  Playing chicken with the bank!
Additionally, the deal can be contingent on the personality and mood of the rep with whom you are speaking.  Does this sound arbitrary and unfair? Yes. And it is.
With this information, I was able to navigate through the psychosis of the bank.

Top 5 points that helped me get good deal

  1. I didn’t get riled up by the reps who tried to incite me.

  2. I waited until the account went to the recovery department.

  3. I timed my negotiation at the end of the month, when reps were trying to meet quotas.

  4. I timed my negotiation at the end of the year, even bigger quotas on the line.

  5. I understood that the bank is a psychotic being and can (and will!) change it’s mind at the drop of dime…..or a few thousand bucks! 🙂

In the coming posts, I’ll discuss how I settled my 2 biggest accounts on December 31st, 2009. Last day of the last month of the year.  Let’s just say, that helped.
Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

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