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Discover how hard it is to leave
Like many people in this lousy Bush economy, Teri and I had run up a pretty large credit card debt - not for luxuries, but for things like food and heating oil. That's a path that usually leads to bankruptcy and homelessness.
But our circumstances changed quite drastically for the better recently, and as a result we were able to make a long-awaited phone call on Sunday.
A little background: Teri used to have a credit card (I don't remember what brand). There was a moderately hefty amount on it; not enough to wipe us out, but more than we could pay from a single paycheck. About a year ago she transferred the balance to a new Discover card, since we'd received an offer in the mail for a 0% interest rate on the transferred balance. At the same time we put my name on the new card as well.
We should have checked the fine print. Somewhere along the way we were late on a payment, which was easy to do because it seemed as if the bills were sent out closer and closer to the due date; this is a big part of the credit card trap. By making it virtually impossible to pay on time they can really rack up those interest charges! And the second time we were late, we discovered the other half of the trap: the contract we'd signed allowed them to raise our interest rate to 28%, which we only discovered by noticing that more than 75% of our minimum payment was going to pay interest.
So basically we were paying more and more each month while getting deeper and deeper into debt. Likewise, we had to charge things like groceries and diapers, because with today's housing prices there simply wasn't enough money left over from my paycheck for those things. I got used to eating less (and I've lost weight as a result), but Sebastian has to be properly fed. Likewise, I had to have gas for my car in order to go to work.
Within a year our debt with Discover had quadrupled. It was a completely impossible sum, and I couldn't see any way out of the trap. It put a hell of a stress on us in all sorts of ways.
Jump to yesterday. We now have the money to pay off all our debts, and to be sure of not getting into debt again (as long as we're reasonably responsible, of course). So we write out the check to Discover, and Teri calls them to cancel the card.
They would not take no for an answer. Over and over Teri told the woman on the other end of the line that she wanted to cancel the card. The woman offered a lower rate. Then lower still. And then she started arguing with us!
Teri had told her that if we needed a credit card, we'd get one with a company we trusted: my credit union. She explained that they'd screwed us by raising the rates, and that we wouldn't do business with them again under any circumstances. I put in that having been in their trap and escaped, we were NOT going to go into it again. The woman insisted that since we were going to transfer our balance to a new card, we should just stay with Discover at a lower rate. Teri repeated that we were NOT transferring the balance, we were paying the card off in cash. The woman pretended not to understand her. Teri got fed up and handed the phone to me.
The woman immediately insisted that we were transferring the balance, and that we shouldn't. I explained that we were paying the balance off, not transferring it. And then repeated myself two more times, adding that it wasn't any of her business anyway.
But if we needed a credit card, she said, we should keep our Discover. Why would we continue to do business with a company that had already screwed us, I asked. We had money, we were going to pay off the balance that day, we wanted the card cancelled. Did we have to call our state attorney-general to have some action taken?
At this point the woman got nasty. "You can't cancel the card," she said, "because you're not the primary account holder. You just have your name on the account, that's all."
I handed the phone to Teri, who repeated that she was canceling the card. Over and over. At some point the woman apparently gave up, because she told Teri that if we used the card before final and complete payment was received it would be considered an application to keep the card, and then the Discover agent hung up on her! Quite rudely, too.
We went to Sears and paid the account off. I wonder if the card has been cancelled? Time will tell, I guess. I wouldn't be surprised if we have to go through all this again.
Man, those Discover card bastards are real leaches!
But our circumstances changed quite drastically for the better recently, and as a result we were able to make a long-awaited phone call on Sunday.
A little background: Teri used to have a credit card (I don't remember what brand). There was a moderately hefty amount on it; not enough to wipe us out, but more than we could pay from a single paycheck. About a year ago she transferred the balance to a new Discover card, since we'd received an offer in the mail for a 0% interest rate on the transferred balance. At the same time we put my name on the new card as well.
We should have checked the fine print. Somewhere along the way we were late on a payment, which was easy to do because it seemed as if the bills were sent out closer and closer to the due date; this is a big part of the credit card trap. By making it virtually impossible to pay on time they can really rack up those interest charges! And the second time we were late, we discovered the other half of the trap: the contract we'd signed allowed them to raise our interest rate to 28%, which we only discovered by noticing that more than 75% of our minimum payment was going to pay interest.
So basically we were paying more and more each month while getting deeper and deeper into debt. Likewise, we had to charge things like groceries and diapers, because with today's housing prices there simply wasn't enough money left over from my paycheck for those things. I got used to eating less (and I've lost weight as a result), but Sebastian has to be properly fed. Likewise, I had to have gas for my car in order to go to work.
Within a year our debt with Discover had quadrupled. It was a completely impossible sum, and I couldn't see any way out of the trap. It put a hell of a stress on us in all sorts of ways.
Jump to yesterday. We now have the money to pay off all our debts, and to be sure of not getting into debt again (as long as we're reasonably responsible, of course). So we write out the check to Discover, and Teri calls them to cancel the card.
They would not take no for an answer. Over and over Teri told the woman on the other end of the line that she wanted to cancel the card. The woman offered a lower rate. Then lower still. And then she started arguing with us!
Teri had told her that if we needed a credit card, we'd get one with a company we trusted: my credit union. She explained that they'd screwed us by raising the rates, and that we wouldn't do business with them again under any circumstances. I put in that having been in their trap and escaped, we were NOT going to go into it again. The woman insisted that since we were going to transfer our balance to a new card, we should just stay with Discover at a lower rate. Teri repeated that we were NOT transferring the balance, we were paying the card off in cash. The woman pretended not to understand her. Teri got fed up and handed the phone to me.
The woman immediately insisted that we were transferring the balance, and that we shouldn't. I explained that we were paying the balance off, not transferring it. And then repeated myself two more times, adding that it wasn't any of her business anyway.
But if we needed a credit card, she said, we should keep our Discover. Why would we continue to do business with a company that had already screwed us, I asked. We had money, we were going to pay off the balance that day, we wanted the card cancelled. Did we have to call our state attorney-general to have some action taken?
At this point the woman got nasty. "You can't cancel the card," she said, "because you're not the primary account holder. You just have your name on the account, that's all."
I handed the phone to Teri, who repeated that she was canceling the card. Over and over. At some point the woman apparently gave up, because she told Teri that if we used the card before final and complete payment was received it would be considered an application to keep the card, and then the Discover agent hung up on her! Quite rudely, too.
We went to Sears and paid the account off. I wonder if the card has been cancelled? Time will tell, I guess. I wouldn't be surprised if we have to go through all this again.
Man, those Discover card bastards are real leaches!
no subject
(Anonymous) 2003-10-06 06:27 pm (UTC)(link)That's kinda nuts, but on the other hand, I suppose that they essentially want
to own your soul.
I'm seeing the benefit of what happened to me; Fleet just up and decided to
switch my ATM card with a Visa check card. Works pretty much anywhere a
credit card does. Of course I can't actually do the credit thing with it,
but the last thing I need is more debt. :)
Live without credit
Even so, you have to be careful. There are a lot of nasty tricks that a credit card company can play on you. For example, one thing that even banks love to do is raise your credit limit every year.
That's really awful, because if you keep your credit limit to something you can cope with, you won't get in over your head. Once they've got you with the potential to run up thousands and thousands of dollars on your card, though, they can really screw you: the interest rate and late fees make the sum totally impossible to pay. And thanks to credit card lobbyists, of course, Congress has made it MUCH harder to declare bankruptcy to cope with a life-destroying load of debt. Once you're under, you're under for good - and they will take everything you have and can ever make for the rest of your life. Teri and I were really lucky.
Bankruptcy exists for big wealthy companies and individuals like Donald Trump, who don't need it, but no longer exists for poor people, who do. We really need a revolution in this country.
Oh god...
(Anonymous) 2003-10-14 08:43 am (UTC)(link)File a complaint against Discover with the state attorney general and the better business bureau for deceptive and fraudulent credit practices... fuck with them and make it UNPROFITABLE for "the man" to screw with you. Don't whine and say who is me. Also you should cancel in writing and inform them that you ARE filing a complaint with the authorities in your state.
I think abby hoffman wrote in "steal this book" of several ways to screw with the man...secret don't do anything illegal and make it EXPENSIVE for them. Bush send you a fund raising envelope with postage pre-paid envelope. Then properly wrap a large lead bar or concrete block in cardboard and securely tape the envelope to the package. 1000 people do this and his campaign is out $50,000 in overweight postage fees.
Money is only an idea, a measure of power. You can use it even when you don't have it...
The last thing we need is a revolution--we need an evolution--people have got to get smarter about how and why things work the way they do then use their intellect and talents to work them the way they ought to...I learned the hard way. Easier to beat the bastards at their own game than to go to war--and as Sun Tzu says-- much more effective. "Use the enemies resources against him..."
A revolution of know nothings isn't going to do anything but make it worse--sort of like Bush policy in Iraq.
Now, pick up your sword & your sheild, gird yourself with honor and fight like a man! Vive' Evolution! ;-)
Wayde, esq
no subject
Still, I have a hunch this isn't the last you've seen of this company. They may well choose not to cancel your credit card, despite having been told to do so. My advice is to pay off the balance, then contact them again politely. If the credit card still hasn't been cancelled, politely threaten legal action.